A. A total of $65,000,000 $68,459,718 the first year and $50,000,000 $55,129,207 the second year is hereby authorized for issuance by the Virginia Public Building Authority pursuant to Section 2.2-2263 Code of Virginia, and/or the Virginia College Building Authority pursuant to Section 23-30.24 et seq., Code of Virginia, for capital costs of maintenance reserve projects.

B. The proceeds of such bonds are hereby appropriated for the capital costs of the following maintenance reserve projects:

C. The appropriations for bond proceeds contained in this Item shall be subject to the conditions specified in paragraph D, Item C-85 and no bonds shall be issued for the maintenance reserve projects contained in this Item until the conditions of that paragraph, are satisfied.

D. The Director, Department of Planning and Budget, in consultation with staff of the House Appropriations and Senate Finance Committees shall develop recommendations for the fiscal year 2012 allocation of maintenance reserve funding.  The Director shall report the recommendations to the Governor and the Chairman of the House Appropriations and Senate Finance Committees by October 1, 2010.

E. Expenditures for amounts appropriated in this Item are subject to conditions defined in §2-0 E of this act.

F. Agencies and institutions of higher education may use maintenance reserve funds in the first year to plan subprojects to be funded from allocations in the second year. Any agency or institution of higher education which has not expended or contractually obligated itself in a legally binding manner to expend 85 percent or more of its biennial general fund and tax-supported debt appropriation for maintenance reserve by June 30, 2012, will have its share of maintenance reserve funding reduced in the next biennium.

G. Agencies and institutions of higher education may use maintenance reserve funds to finance the following capital costs: to repair or replace damaged or inoperable equipment, components of plant, and utility systems; to correct deficiencies in property and plant required to conform with building and safety codes or those associated with hazardous condition corrections, including asbestos abatement; to correct deficiencies in fire protection, energy conservation and handicapped access; and to address such other physical plant deficiencies as the Director, Department of Planning and Budget may approve.  Agencies and institutions of higher education may also use maintenance reserve funds to make other necessary improvements that do not meet the criteria for maintenance reserve funding with the prior approval of the Director, Department of Planning and Budget.

H. Agencies may transfer amounts from maintenance reserve funds to the operating budget subject to the provisions of 4-4.01c of this act.

I.1. Any balances remaining from the maintenance reserve allocation identified in this Item for the Virginia Museum of Fine Arts shall not revert to the general fund on June 30, 2010, but shall be brought forward and made available for the purposes of this Item in FY 2011.

2. The Virginia Museum of Fine Arts may use an amount not to exceed 20 percent of its annual maintenance reserve allocation from this Item for the conservation of art works owned by the Museum.

J.1. The Department of General Services is authorized to use these funds from its maintenance reserve allocation for necessary repairs and improvements in and around Capitol Square for items such as repair and conservation of the historic fence, repair and improvements to the grounds, upkeep and ongoing repairs to the exterior of the Capitol and Bell Tower, and conservation and maintenance of monuments and statues.  The use of and allocation of these funds shall be as deemed appropriate by the Director, Department of General Services.

2. Out of the amount allocated for the Department of General Services the second year, $2,000,000 is designated for building and utility repairs at Fort Monroe.  It is expected that buildings and utilities will be in need of repair on Fort Monroe after the Fort Monroe property reverts to the Commonwealth in 2011.  When determining those buildings and utilities to be repaired, and the priority in which repairs will be undertaken within the available allocation in this item, the Fort Monroe Authority shall consult with, and give consideration to repair recommendations from the Department of General Services.   The Department of General Services shall undertake such repairs, as identified by the Fort Monroe Authority, and within the authorized allocation.  

K.1. Any balances remaining from the maintenance reserve allocation identified in this item for the Jamestown-Yorktown Foundation shall not revert to the general fund on June 30, 2010, but shall be brought forward and made available for the purposes of this item in fiscal year 2011.

2. The Jamestown-Yorktown Foundation may use an amount not to exceed 20 percent of its annual maintenance reserve allocation from this item for the conservation of artifacts.

L. The Director, Department of Planning and Budget is authorized to transfer up to $2,000,000 in the second year from this Item to agencies and institutions of higher education to address unplanned emergency maintenance needs that require immediate attention to address a threat to life or property.  To qualify for funding, such projects must meet the criteria in paragraph G above and no alternative funding is available including existing agency or institution maintenance reserve funding.