SB 835

Abstract

Commonwealth Savers Plan; Virginia College Opportunity Endowment and Fund established; report. Establishes (i) the Endowment Scholarship Program for the purpose of providing scholarships to students at eligible institutions, as defined in the bill; (ii) the Virginia College Opportunity Endowment as an agency of the Commonwealth for the purpose of establishing and administering the Endowment Scholarship Program; (iii) as a subfund of the Commonwealth Savers Plan's fund, the DB529 Fund for the purpose of holding in trust the assets of prepaid tuition contracts to meet contractual obligations; (iv) as a subfund of the Commonwealth Savers Plan's fund, the Virginia College Opportunity Fund (the Opportunity Fund), into which certain funds from the DB529 Fund shall be deposited for the purpose of funding, by income generated from investments of such deposits, the Endowment Scholarship Program and other programs established for the purpose of enhancing educational access and affordability for students with recognized financial need, as set forth in the bill; and (v) the College Opportunity Investment Advisory Committee for the purpose of making recommendations to and assisting the General Assembly in determining the prudence of directing deposits, and the amounts of any such deposits, of actuarial surpluses of the Commonwealth Savers Plan from the DB529 Fund into the Opportunity Fund. The bill requires the board of the Commonwealth Savers Plan to (a) after the fiscal year beginning on July 1, 2025, deposit $500 million into the Opportunity Fund from the DB529 Fund; (b) each fiscal year thereafter, in accordance with the timeline set forth in the bill, submit to the General Assembly a report on the funded status, as defined by applicable law, of the DB529 Fund and the recommendation of the College Opportunity Investment Advisory Committee as to the prudence of directing deposits of additional actuarial surpluses of the Plan from the DB529 Fund into the Opportunity Fund; and (c) each subsequent year, deposit additional actuarial surpluses into the Opportunity Fund in accordance with the provisions of the bill. Finally, the bill contains provisions (1) relating to voluntary contributions to the Opportunity Fund for the purpose of receiving tax fund contributions and income tax deductions; (2) exempting from mandatory disclosure requirements certain information contained in a public record relating to the Commonwealth Savers Plan or the Virginia College Opportunity Endowment and Fund, and (3) authorizing the College Opportunity Investment Advisory Committee to hold closed meetings for certain purposes.

A BILL to amend and reenact §§ 2.2-3705.7, 2.2-3711, 23.1-700, 23.1-701, 23.1-704, 23.1-706, 23.1-707, 23.1-711, 23.1-713, 58.1-322.03, 58.1-344.3, and 58.1-402 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 23.1-702.1 and by adding in Chapter 7 of Title 23.1 an article numbered 2, consisting of sections numbered 23.1-714, 23.1-715, and 23.1-716, relating to the Commonwealth Savers Plan; Virginia College Opportunity Endowment and Fund established; report.