A. A total of $50,200,000 the first year and $50,000,000 $25,000,000 the second year from the general fund is provided to state agencies and institutions for maintenance reserve subprojects.

The Director of the Department of Planning and Budget is hereby directed to transfer to agencies and institutions the following sums:

B. 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 appropriation for maintenance reserve by June 30, 2002, shall revert to the general fund of the Commonwealth the amount related to the difference between its percentage actually expended or obligated and the 85 percent standard. For good cause the Director of the Department of Planning and Budget may grant exceptions to this requirement.

C. Institutions of higher education may use maintenance reserve funds: 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 Department of General Services may approve. Institutions of higher education may also use maintenance reserve funds to make other necessary improvements or address minor deficiencies that do not meet the criteria for maintenance reserve funding with the prior approval of the Director of the Department of Planning and Budget.

D. The Department of General Services may transfer up to $2,000,000 from the balances in its Facilities Management Internal Service Fund to supplement its maintenance reserve project code 14260 for necessary repairs at the seat of government. These funds can be used only for projects in buildings at the seat of government that are included in the Rent Plan. These projects can include any sitework and utility repairs adjacent to any such building and renovation projects costing less than $500,000.

E. Out of the amount appropriated for this project in the second year, $25,000,000 is withheld from expenditure pursuant to Executive Order 74 (01).

F. The source of funds for the Debt Service appropriation in this item includes $1,500,000 in interest earned on proceeds of general obligation bonds authorized by Chapters 781, 789, 849, 892, 894, and 896 of the 1992 Virginia Acts of Assembly.