A.1. The purpose of this item is to provide an ongoing program for the acquisition and replacement of instructional and research equipment at state-supported institutions of higher education in accordance with the intent and purpose of Chapter 597, Acts of Assembly of 1986.

2. Lease payments required to support equipment purchases made prior to FY1998 are listed for reference in the operating budget of each institution of higher education. Within the appropriations of the institutions are lease payments totaling $22,280,811 from the general fund and $2,422,604 from nongeneral funds the first year and $22,280,811 from the general fund and $2,422,604 from nongeneral funds the second year. Each fiscal year, the institutions of higher education participating in the equipment program shall submit necessary documentation to the Department of Planning and Budget to effect the transfers of amounts equal to the nongeneral fund portion of the required lease payments.

3. The Director of the Department of Planning and Budget shall transfer on July 1 of each fiscal year the required lease payment amounts from each of the institutions to the Virginia College Building Authority. Failure to transfer the required amounts will result in the Authority defaulting on its debt obligations.

4. The Governor shall annually present to the General Assembly through the Commonwealth's budget process, the estimated amount of lease payments and the corresponding total value of equipment to be acquired.

B.1. The State Council of Higher Education for Virginia shall establish and maintain procedures through which institutions of higher education apply for allocations made available under the program, and shall develop guidelines and recommendations for the apportionment of such equipment to each state-supported institution of higher education.

2. The Authority shall finance equipment for educational institutions in accordance with § 23-30.28, Code of Virginia, and according to terms and conditions approved through the Commonwealth's budget and appropriation process. Bonds or notes issued by the Virginia College Building Authority to finance equipment may be sold and issued at the same time with other obligations of the Authority as separate issues or as a combined issue. Each institution shall make available such additional detail on specific equipment to be purchased as may be requested by the Governor or the General Assembly. If emergency acquisitions are necessary when the General Assembly is not in session, the Governor may approve such acquisitions. The Governor shall report his approval of such acquisitions to the Chairmen of the House Appropriations and Senate Finance Committees.

3. Amounts for debt service payments for allocations provided by this item shall be provided pursuant to Item 301 of this act.

C.1. Transfer of the appropriation in Item 301 of this act to the Virginia College Building Authority shall be subject to the approval of the Secretary of Finance. An allocation of $79,299,998 made in 1996-98 biennium brings the total amount of equipment acquired through the program to approximately $295 million.

2. Allocations of $25,000,000 will be made the first year and $25,000,000 the second year of the 1998-00 biennium to support the Governor's Education Technology initiative. Allocations are as follows:

Authority: Chapter 597, Acts of Assembly of 1986.