Authority: Chapter 597, Acts of Assembly of 1986.

A.1. The purpose of this Item is to provide an ongoing program for the acquisition and replacement of instructional and research equipment at state-supported institutions of higher education in accordance with the intent and purpose of Chapter 597, Acts of Assembly of 1986.

2. The Governor shall annually present to the General Assembly through the Commonwealth's budget process, the estimated payments and the corresponding total value of equipment to be acquired.

B.1. The State Council of Higher Education for Virginia shall establish and maintain procedures through which institutions of higher education apply for allocations made available under the program, and shall develop guidelines and recommendations for the apportionment of such equipment to each state-supported institution of higher education.

2. The Authority shall finance equipment for educational institutions in accordance with § 23-30.28, Code of Virginia, and according to terms and conditions approved through the Commonwealth's budget and appropriation process. Bonds or notes issued by the Virginia College Building Authority to finance equipment may be sold and issued at the same time with other obligations of the Authority as separate issues or as a combined issue. Each institution shall make available such additional detail on specific equipment to be purchased as may be requested by the Governor or the General Assembly. If emergency acquisitions are necessary when the General Assembly is not in session, the Governor may approve such acquisitions. The Governor shall report his approval of such acquisitions to the Chairmen of the House Appropriations and Senate Finance Committees.

3. Amounts for debt service payments for allocations provided by this Item shall be provided pursuant to Item 276 of this act.

C.1. Transfer of the appropriation in Item 276 of this act to the Virginia College Building Authority shall be subject to the approval of the Secretary of Finance. An allocation of $126,436,310 made in the 2012-2014 biennium brings the total amount of equipment acquired through the program to approximately $1,169,883,146.

2. Allocations of $64,218,155 the first year and $64,218,155 $74,218,155 the second year will be made to support the purchase of additional equipment to enhance instructional and research activity at Virginia's public colleges and universities. Allocations are as follows:

D. 1. Out of the allocations for the Virginia Community College System, $2,000,000 the first year and $2,000,000 the second year is designated to support the equipment needs of Workforce Development activities.

2. a) From the allocation provided in paragraph D. 1., up to $500,000 the first year and $500,000 the second year shall be used to support the Machinery and Equipment Program (Chapter 566, 2013 Acts of Assembly) to acquire engines, machines, motors, mechanical devices, laboratory trainers, computers, printers, tools, parts, and similar machinery and equipment as set forth in guidelines developed by the State Council of Higher Education and the Virginia Community College System.

b) Equipment for this program may be acquired from a business that purchased the new machinery and equipment in good working condition within 12 months prior to acquisition by the community college. Payments to the business shall be in an amount equal to 20 percent of the purchase price of the machinery or equipment, not to exceed an aggregate amount of $5,000 to any one business during a calendar year.

c) The State Council of Higher Education for Virginia shall maintain and update as necessary on its website a list of machinery and equipment that qualifies for this program.

d) Pursuant to the second enactment clause of Chapter 566 (2013), this paragraph shall be an appropriation for purposes of effectuating the provisions of that act.

e) The Virginia Community College System shall report to the Chairmen of the House Appropriations and Senate Finance Committees by June 30 of each year on the equipment purchased through this program.