Commonwealth Savers Plan; State Council of Higher Education for Virginia; Virginia College Access and Affordability Scholarship Fund established; work group; report. Directs the transfer of actuarial surplus defined benefit prepaid tuition contract funds from the fund of the Commonwealth Savers Plan (the Plan) into a DB529 subfund established in the bill to be used for (i) a surplus rebate program and (ii) establishing the Virginia College Access and Affordability Scholarship Fund (the Access Fund). The surplus rebate program returns actuarial surplus funds, in $2,500 checks, to owners of a prepaid tuition contract who entered into such contract before July 1, 2019, and claim such rebate before July 1, 2026. The amount of rebates available shall not exceed $350 million. When claiming the rebate, the application allows such rebate amount to be applied to a new prepaid tuition contract or a Roth individual retirement account in lieu of the check. The bill establishes an Investment Board with investment and actuarial expertise to review and make recommendations to the General Assembly on each deposit from the DB529 Fund to the Access Fund. After an initial $500 million deposit from the DB529 subfund, dedicated assets of the Access Fund shall be invested and managed by the Plan. Funds in the Access Fund shall be used to establish a scholarship program to be managed and administered by the State Council of Higher Education for Virginia (the Council). The scholarship program provides scholarship awards to students enrolled in an eligible education program, defined in the bill, and a portion of the funds are to be devoted to college access resources or programs to assist low-income students, first generation college students, students from underrepresented communities, or other at-risk students with their introduction to the higher education system in Virginia, college applications, financial aid applications, and resources assisting with a successful transition from high school to college. The Council is required to report on the Access Fund and scholarship program no later than December 31 each year. Finally, the bill (a) directs the Council to establish a work group of higher education stakeholders to make recommendations on allocations of funds available through the Access Fund and scholarship program and directs the work group to report to the House Committees on Education and Appropriations and Senate Committees on Education and Health and Finance and Appropriations no later than November 1, 2025, and (b) prohibits the Plan from implementing or taking part in any initiatives relating to the accessibility or the aforementioned college access programs on or after July 1, 2025.

Statutes affected:
Introduced: 23.1-700, 23.1-701, 23.1-704, 23.1-706
Education Subcommittee Substitute : 2.2-3705.7, 2.2-3711, 23.1-700, 23.1-701, 23.1-704, 23.1-706