2006 Code of Virginia § 22.1-100.1 - Lottery proceeds nonrecurring costs escrow accounts

22.1-100.1. Lottery proceeds nonrecurring costs escrow accounts.

A. Notwithstanding the provisions of 22.1-100, the governing body of anylocality may authorize the local treasurer or fiscal officer, by ordinance orresolution, to create a separate escrow account upon the books of thelocality for the deposit of that portion of the locality's appropriation fromthe lottery proceeds which are designated, pursuant to Item 139 B 4 ofChapter 935 of the 1999 Acts of Assembly or any other state law, fornonrecurring costs incurred by the relevant school division.

Such nonrecurring costs shall include school construction, additions,infrastructure, site acquisition, renovations, technology, and otherexpenditures related to modernizing classroom equipment, and debt servicepayments on school projects completed during the last ten years. Uponadoption of the proper ordinance or resolution, the treasurer or local fiscalofficer of the locality shall place such appropriation into a separatelottery proceeds nonrecurring costs escrow account. Under no circumstancesshall the escrow account allowed for the school construction grants pursuantto 22.1-175.5 be used for these deposits.

B. The escrow account shall be known as the "County/City/Town of_____________ Lottery Proceeds Nonrecurring Costs Fund." All principaldeposited to such fund, together with all income from or attributable to thefund, shall be used solely for (i) construction, additions, renovations,including retrofitting and enlarging public school buildings, infrastructure,including technology infrastructure, and site acquisition for public schoolbuildings and facilities or (ii) debt service payments, or a portion thereof,for any such projects completed in the previous ten years if so designated.

No disbursement from the fund may be made except upon specific appropriationby the governing body in accordance with applicable law. If a localityestablishes such a fund and designates any portion of the funds depositedtherein to pay debt service for (i) any general obligation of the localityheld by the Virginia Public School Authority or (ii) any Literary Fund loan,the locality shall obtain an opinion of bond counsel that designation offunds to pay debt service on obligations described in clauses (i) and (ii)hereof does not adversely impact the tax-exempt status of such obligations.

C. All moneys deposited in the fund, including all income from orattributable to such fund, shall be deemed public funds of the locality andshall be subject to all limitations upon deposit and investment provided bygeneral law, including, but not limited to, the Virginia Security for PublicDeposits Act ( 2.2-4400 et seq.). Income, dividends, distributions, andgrants accruing to the fund shall be retained in such fund and shall beexpended only in accordance with the terms of this section.

D. Nothing in this section shall be deemed or construed to authorize a schoolboard or school division to receive, hold or invest funds in its own name, orto expend funds in the absence of a specific appropriation by the governingbody of the locality in accordance with applicable law.

(2000, cc. 635, 693.)