Authority: Title 2.2, Chapter 11, Articles 3 and 6, Code of Virginia.

A. The amounts for Surplus and Excess Property Management-Federal and for Surplus Transfer or Sale - State shall be paid solely from revenues derived from charges for services. The estimated subprogram cost for Surplus and Excess Property Management-Federal is $1,103,837 the first year and $1,103,837 the second year. The estimated cost for Surplus Transfer or Sale-State is $642,972 the first year and $642,972 the second year.

B. The Department of Accounts shall provide a treasury loan of up to $8,000,000 to the Department of General Services to pay for the costs of developing and implementing a statewide electronic procurement system that has been approved by the Secretary of Technology or his designee. Such loan shall bear interest at a rate equal to the general fund composite investment rate and shall be repaid in annual installments over a period of ten years beginning in fiscal year 2006. Repayments of this loan will be financed by fees assessed to state agencies and institutions of higher education using the electronic procurement system. Prior to accessing a treasury loan, the Department of General Services shall explore other financing strategies during development of this project and, in consultation with the Department of Planning and Budget, shall select the most viable option for developing and implementing the project. The General Assembly strongly encourages all state agencies and institutions of higher education to participate in the statewide electronic procurement system authorized in this item.

C. Out of the amounts for Purchase Management shall be provided $7,061,269 in the first year and $900,000 in the second year from nongeneral funds for further development and implementation of a statewide electronic procurement system.