Authority: Title 15.2, Chapter 13, Article 3 and Chapter 42; Title 36, Chapters 8, 10 and 11; and Title 59.1, Chapter 22, Code of Virginia.

A. Out of the amounts in this Item, $351,930 the first year and $351,930 the second year from the general fund is provided for annual membership dues to the Appalachian Regional Commission. These dues are payable from the amounts for Community Development and Revitalization.

B. The department and local program administrators shall make every reasonable effort to provide participants basic financial counseling to enhance their ability to benefit from the Indoor Plumbing Program and to foster their movement to economic self-sufficiency.

C. Out of the amounts in this Item shall be paid from the general fund in four equal quarterly installments each year:

1. To the Lenowisco Planning District Commission, $75,971 the first year and $75,971 the second year, which includes $38,610 the first year and $38,610 the second year for responsibilities originally undertaken and continued pursuant to § 15.2-4207, Code of Virginia, and the Virginia Coalfield Economic Development Authority.

2. To the Cumberland Plateau Planning District Commission, $75,971 the first year and $75,971 the second year, which includes $42,390 the first year and $42,390 the second year for responsibilities originally undertaken and continued pursuant to § 15.2-4207, Code of Virginia, and the Virginia Coalfield Economic Development Authority.

3. To the Mount Rogers Planning District Commission, $75,971 the first year and $75,971 the second year.

4. To the New River Valley Planning District Commission, $75,971 the first year and $75,971 the second year.

5. To the Roanoke Valley-Alleghany Regional Commission, $75,971 the first year and $75,971 the second year.

6. To the Central Shenandoah Planning District Commission, $75,971 the first year and $75,971 the second year.

7. To the Northern Shenandoah Valley Regional Commission, $75,971 the first year and $75,971 the second year.

8. To the Northern Virginia Regional Commission, $151,943 the first year and $151,943 the second year.

9. To the Rappahannock-Rapidan Regional Commission, $75,971 the first year and $75,971 the second year.

10. To the Thomas Jefferson Planning District Commission, $75,971 the first year and $75,971 the second year.

11. To the Region 2000 Local Government Council, $75,971 the first year and $75,971 the second year.

12. To the West Piedmont Planning District Commission, $75,971 the first year and $75,971 the second year.

13. To the Southside Planning District Commission, $75,971 the first year and $75,971 the second year.

14. To the Commonwealth Regional Council, $75,971 the first year and $75,971 the second year.

15. To the Richmond Regional Planning District Commission, $113,957 the first year and $113,957 the second year.

16. To the George Washington Regional Commission, $75,971 the first year and $75,971 the second year.

17. To the Northern Neck Planning District Commission, $75,971 the first year and $75,971 the second year.

18. To the Middle Peninsula Planning District Commission, $75,971 the first year and $75,971 the second year.

19. To the Crater Planning District Commission, $75,971 the first year and $75,971 the second year.

20. To the Accomack-Northampton Planning District Commission, $75,971 the first year and $75,971 the second year.

21. To the Hampton Roads Planning District Commission $151,943 the first year, and $151,943 the second year.

D. Out of the amounts in this Item, $968,442 the first year and $968,442 the second year from the general fund shall be provided for the Southeast Rural Community Assistance Project (formerly known as the Virginia Water Project) operating costs and water and wastewater grants. The department shall disburse the total payment each year in twelve equal monthly installments.

E. The department shall leverage any appropriation provided for the capital costs for safe drinking water and wastewater treatment in the Lenowisco, Cumberland Plateau, or Mount Rogers planning districts with other state moneys, federal grants or loans, local contributions, and private or nonprofit resources.

F.1. Out of the amounts in this Item, $95,000 the first year and $95,000 the second year from the general fund shall be provided for the Center for Rural Virginia. The department shall report periodically to the Chairmen of the Senate Finance and House Appropriations Committees on the status, needs and accomplishments of the center.

2. As part of its mission, the Center for Rural Virginia shall monitor the implementation of the budget initiatives approved by the 2005 Session of the General Assembly for rural Virginia and shall report periodically to the Chairmen of the Senate Finance and House Appropriations Committees on the effectiveness of these various programs in addressing rural economic development problems.

G. Out of the amounts in this Item, $71,250 the first year and $71,250 the second year from the general fund shall be provided to support The Crooked Road: Virginia's Heritage Music Trail.

H. Out of the amounts in this Item, $1,500,000 the first year and $1,500,000 the second year from the general fund shall be deposited to the Virginia Removal or Rehabilitation of Derelict Structures Fund to support industrial site revitalization.

I. Out of the amounts in this Item, $500,000 the first year and $500,000 the second year from the general fund shall be provided for the Virginia Main Street Program. This amount shall be in addition to other appropriations for this activity.

J. Of the general fund amounts provided for the Virginia Main Street Program, the Indoor Plumbing Rehabilitation Program, and the water and wastewater planning and construction projects in Southwest Virginia, the department is authorized to use up to two percent of the appropriation in each year for program administration.

K.1. Out of the amounts in this Item, $875,000 the first year and $875,000 the second year from the general fund shall be provided for the Southwest Virginia Cultural Heritage Foundation.

2. The foundation shall report by September 1 of each year to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees on the expenditures of the foundation and its ongoing efforts to generate revenues sufficient to sustain operations.

L.1. Out of the amounts in this Item, $2,000,000 the first year and $2,000,000 the second year from the general fund is provided for the Virginia Telecommunication Initiative. The funds shall be used for providing financial assistance to supplement construction costs by private sector broadband service providers to extend service to areas that presently are unserved by any broadband provider.

2. The department shall develop appropriate criteria and guidelines for the use of the funding provided to the Virginia Telecommunication Initiative. Such criteria and guidelines shall facilitate the extension of broadband networks by the private sector and shall focus solely on unserved areas. Areas designated to receive funds for construction through the federal Connect America program are not eligible to receive funds through the Virginia Telecommunication Initiative. The department shall encourage additional assistance from the local governments in areas designated to receive funds to lower the overall cost and further assist in the timely completion of construction, including assistance with permits, rights of way, easement and other issues that may hinder or delay timely construction.

3. The department shall consult with the Broadband Advisory Council to designate the unserved areas to receive funds. The department shall report annually to the Governor's Broadband Advisory Council on the progress by the private sector on the designated projects.

M.1. Out of the amounts in this Item, $24,450,000 the first year and $24,450,000 the second year from the general fund shall be deposited to the Virginia Growth and Opportunity Fund to encourage regional cooperation among business, education, and government on strategic economic and workforce development efforts in accordance with § 2.2-2487, Code of Virginia. In addition, $1,595,000 the first year and $1,595,000 the second year from the Virginia Growth and Opportunity Fund is hereby appropriated. Notwithstanding § 2.2-2487, Code of Virginia, there is no limitation on the percentage of moneys in the Fund that shall be awarded or allocated in any fiscal year.

2. Of the amounts provided in this paragraph, the appropriation shall be distributed as follows: (i) $2,250,000 the first year and $2,250,000 the second year from the general fund shall be allocated to qualifying regions to support organizational and capacity building activities; (ii) $10,900,000 the first year and $10,900,000 the second year from the general fund and $1,595,000 the first year and $1,595,000 the second year from the Virginia Growth and Opportunity Fund shall be allocated to qualifying regions based on each region's share of the state population; and (iii) $11,300,000 the first year and $11,300,000 the second year from the general fund shall be awarded to regional councils on a competitive basis. In distributing the amounts included for per capita allocations, the department shall provide a minimum amount for each region of $750,000. Those regions receiving the minimum amount of $750,000 shall only be required to provide a match of the original per capita allocation based on the $10,900,000 appropriation.

N. The department is hereby prohibited from administering the Building Collaborative Communities and the Building Entrepreneurial Economies grant programs.

O. Out of the amounts in this Item, $3,750,000 the first year and $3,750,000 the second year from the general fund is provided to establish a statewide Virginia Grocery Investment Fund for the purpose of expanding access to healthy foods in underserved communities. The department shall select a statewide Community Development Financial Institution (CDFI) to manage the fund and engage in public-private partnerships to administer the program and to leverage additional resources. An advisory committee shall be created and will include representatives from the department, the Department of Agriculture and Consumer Services, the selected CDFI, and other stakeholders to advise the development of guidelines. Up to $25,000 may be used for an evaluation of the impact of the Fund.