Capital Repairs and Improvements Revolving Fund (language only)

Item C-194.1 #2s

Language
Page 421, following line 36, Insert
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A. All tax-supported debt issued by the Treasury Board, the Virginia Public Building Board and the Virginia College Building Board under the provisions of Virginia’s Constitution, Article 10 Sections 9(b) and 9(d) after July, 2004 shall require the creation of a Capital Repairs and Improvements Revolving Fund, and require payment into the Fund in accordance with the following provisions.
B.1.  Except as provided in subparagraph B.3. of this item, the Commonwealth shall annually pay into the Capital Repairs and Improvements Revolving Fund an amount equal to two percent of the accumulated balance of all new outstanding debt issued after July 1, 2004.  This deposit shall not exceed $30 million annually.  For purposes of this computation, the Commonwealth shall include all tax-supported debt issued by the Treasury Board, the Virginia Public Building Board and the Virginia College Building Board under the provisions of Virginia’s Constitution, Article 10 Sections 9(b), and 9(d).
2.  Funds for this deposit shall not be derived either directly or indirectly from debt, but shall be made from revenues available for appropriation.
3.  No deposits to the Capital Repairs and Improvements Revolving Fund shall be required in any fiscal year in which the General Assembly of Virginia appropriates funds from the Revenue Stabilization Fund authorized by Article 10 Sections 8 of the Constitution of Virginia.
C. By November 1 each year, the Auditor of Public Accounts shall compute the maximum balance of the fund, and the Governor shall adjust the payment into the fund in the budget prepared in accordance with Section 2.2-1508 of the
Code of Virginia
.  The maximum balance of the fund shall not exceed 2.25 percent of value of the Commonwealth’s capital assets excluding land and infrastructure before accumulated depreciation and the total capital assets of state supported institutions of higher education excluding land and assets not funded by the debt described above before accumulated depreciation as reported by the State Comptroller in his annual Comprehensive Financial Report.  The maximum balance of the fund shall include both the cash and investment balances in the fund and the net realizable value of any other assets.
D. The Auditor of Public Accounts shall, as part of his computation in C. above, certify that:
1. None of the projects financed by the Capital Repairs and Improvements Revolving Fund represented new construction or expansion of any existing capital asset, and
2. All complied with the Authority’s policies and regulations for such projects.
E. The Authority shall maintain the Capital Repairs and Improvements Revolving Fund and receive payments into the Fund as previously described.  The Authority shall adopt policies and regulations for the Capital Repairs and Improvements Revolving Fund for purposes of setting the following:
1. Definition and criteria for projects qualifying for loans and
2. Procedures for making and repaying fund loans.
These policies and regulations shall be based on recommendations from a committee comprised of the Secretary of Finance, State Treasurer, Director of the Department of General Services, the Auditor of Public Accounts, a staff representative of the State Council of Higher Education, a representative of the State Council of Higher Education’s Finance Advisory Committee and staff representatives of the Senate Finance and House Appropriation Committees as designated by their respective Chairmen.  The Capital Repairs and Improvements Revolving Fund may receive other appropriations made directly to it by the General Assembly.
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