{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/53.1-82.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/53.1-82.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/53.1-82.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/53.1-82.2.html"}],"law_id":86311,"edition_id":1,"section_id":86311,"structure_id":13788,"section_number":"53.1-82.2","catch_line":"Method of reimbursement; involvement of the Treasury Board","history":"1993, cc. 387, 787; 1995, c. 305; 1996, c. 835.","full_text":"A\n\nReimbursements by the Commonwealth to localities or regional jail authorities for a portion of the capital costs of a jail project, made pursuant to \u00a7\u00a7 53.1-80, 53.1-81, 53.1-82, or \u00a7 53.1-95.19 may be effected by one of the following methods:1\n\nIn one lump sum payment to be made upon completion of the project, for minor renovation projects, or two equal lump sum payments, one such payment to be made upon certification that the construction, enlargement or renovation is fifty percent complete and the second such payment to be made upon completion of the project, such payments to be paid by the State Treasurer out of funds appropriated to the Department of Corrections;2\n\nOver a specified period of time through a contractual agreement entered into by the Treasury Board and approved by the Governor, on behalf of the Commonwealth, and the locality, localities or regional authority or other combination of localities undertaking a jail project, such payments to be paid by the State Treasurer out of funds appropriated to the Treasury Board; or3\n\nIn one lump sum payment to be made upon completion of the project by the Virginia Public Building Authority pursuant to § 2.2-2263, including the Commonwealth’s share of the interest costs expended by the locality or regional jail authority for financing such project during the period from fifty percent completion of construction to final completion of construction.B\n\nThe General Assembly shall have the sole authority to determine whether reimbursement will be made pursuant to subdivision A 1, A 2, or A 3. The Department of Planning and Budget, after consulting with the Treasury Board, shall evaluate all proposed jail projects and make recommendations to the Governor regarding the method of reimbursement for inclusion in his biennial budget.C\n\nAny contract for reimbursement over a specified period of time entered into pursuant to subdivision A 2 shall include the following:1\n\nThe Commonwealth shall reimburse a portion of financing costs as provided in subsection E below;2\n\nThe Commonwealth’s reimbursement payments shall be subject to appropriation;3\n\nIn the event that the jail project is financed through an issuance of securities, the Commonwealth’s reimbursement payments shall be calculated using the coupon interest rates received by the locality or jail authority at the time the securities for the project are sold and shall be made pursuant to a schedule to be set forth in the contract;4\n\nIn the event that a jail project is financed through an issuance of securities, and coupon interest rates are not available due to the structure of the securities, the Treasury Board is authorized to make such adjustments as are necessary and reasonable to calculate the Commonwealth’s payments;5\n\nIn the event that the jail project is financed through a method other than the issuance of securities, the Commonwealth’s payment shall include interest payments based on an interest rate assumption equal to the prevailing AA rate for tax-exempt bonds issued by the Commonwealth or agencies thereof, or the actual rate achieved, whichever is lower, and the schedule for the Commonwealth’s reimbursement payments shall be set forth in the contract; and6\n\nSuch other terms and conditions as are necessary to specify the structure of the Commonwealth’s participation in project financing and as may be required by guidelines established by the Treasury Board.\n\t\t\t\tReimbursement to localities pursuant to this section shall be available without regard to the security level of the facility constructed, enlarged or renovated, provided such facility satisfies applicable standards established by the Board pursuant to § 53.1-68.D\n\nFor purposes of this article, “capital costs” includes, but is not limited to, actual construction costs, costs of land acquisition, if the land purchased is used exclusively for siting a jail facility, architectural and engineering fees, and fixed equipment. “Capital costs” does not include administrative costs nor a financial advisor’s, an investment banker’s, or attorneys’ fees incurred by local governments or, except in the case of minimum security facilities, loose equipment or furnishings.E\n\nFor purposes of this article, “financing costs” means the total of all costs incurred by the locality, localities or regional authority or other combination of localities as are deemed reasonable and necessary by the Treasury Board to execute the financing of the Commonwealth’s payment of capital costs and to fund such funds and accounts as the Treasury Board determines to be reasonable and necessary.","order_by":null,"text":{"0":{"id":309113,"text":"Reimbursements by the Commonwealth to localities or regional jail authorities for a portion of the capital costs of a jail project, made pursuant to \u00a7\u00a7 53.1-80, 53.1-81, 53.1-82, or \u00a7 53.1-95.19 may be effected by one of the following methods:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":309114,"text":"In one lump sum payment to be made upon completion of the project, for minor renovation projects, or two equal lump sum payments, one such payment to be made upon certification that the construction, enlargement or renovation is fifty percent complete and the second such payment to be made upon completion of the project, such payments to be paid by the State Treasurer out of funds appropriated to the Department of Corrections;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":309115,"text":"Over a specified period of time through a contractual agreement entered into by the Treasury Board and approved by the Governor, on behalf of the Commonwealth, and the locality, localities or regional authority or other combination of localities undertaking a jail project, such payments to be paid by the State Treasurer out of funds appropriated to the Treasury Board; or","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":309116,"text":"In one lump sum payment to be made upon completion of the project by the Virginia Public Building Authority pursuant to § 2.2-2263, including the Commonwealth’s share of the interest costs expended by the locality or regional jail authority for financing such project during the period from fifty percent completion of construction to final completion of construction.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":309117,"text":"The General Assembly shall have the sole authority to determine whether reimbursement will be made pursuant to subdivision A 1, A 2, or A 3. The Department of Planning and Budget, after consulting with the Treasury Board, shall evaluate all proposed jail projects and make recommendations to the Governor regarding the method of reimbursement for inclusion in his biennial budget.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"C"},"5":{"id":309118,"text":"Any contract for reimbursement over a specified period of time entered into pursuant to subdivision A 2 shall include the following:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"6":{"id":309119,"text":"The Commonwealth shall reimburse a portion of financing costs as provided in subsection E below;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"7":{"id":309120,"text":"The Commonwealth’s reimbursement payments shall be subject to appropriation;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"8":{"id":309121,"text":"In the event that the jail project is financed through an issuance of securities, the Commonwealth’s reimbursement payments shall be calculated using the coupon interest rates received by the locality or jail authority at the time the securities for the project are sold and shall be made pursuant to a schedule to be set forth in the contract;","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"9":{"id":309122,"text":"In the event that a jail project is financed through an issuance of securities, and coupon interest rates are not available due to the structure of the securities, the Treasury Board is authorized to make such adjustments as are necessary and reasonable to calculate the Commonwealth’s payments;","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"10":{"id":309123,"text":"In the event that the jail project is financed through a method other than the issuance of securities, the Commonwealth’s payment shall include interest payments based on an interest rate assumption equal to the prevailing AA rate for tax-exempt bonds issued by the Commonwealth or agencies thereof, or the actual rate achieved, whichever is lower, and the schedule for the Commonwealth’s reimbursement payments shall be set forth in the contract; and","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"11":{"id":309124,"text":"Such other terms and conditions as are necessary to specify the structure of the Commonwealth’s participation in project financing and as may be required by guidelines established by the Treasury Board.\n\t\t\t\tReimbursement to localities pursuant to this section shall be available without regard to the security level of the facility constructed, enlarged or renovated, provided such facility satisfies applicable standards established by the Board pursuant to § 53.1-68.","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5","next_prefix":"D"},"12":{"id":309125,"text":"For purposes of this article, “capital costs” includes, but is not limited to, actual construction costs, costs of land acquisition, if the land purchased is used exclusively for siting a jail facility, architectural and engineering fees, and fixed equipment. “Capital costs” does not include administrative costs nor a financial advisor’s, an investment banker’s, or attorneys’ fees incurred by local governments or, except in the case of minimum security facilities, loose equipment or furnishings.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C6","next_prefix":"E"},"13":{"id":309126,"text":"For purposes of this article, “financing costs” means the total of all costs incurred by the locality, localities or regional authority or other combination of localities as are deemed reasonable and necessary by the Treasury Board to execute the financing of the Commonwealth’s payment of capital costs and to fund such funds and accounts as the Treasury Board determines to be reasonable and necessary.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":13788,"edition_id":1,"name":"Funding Local Correctional Facilities and Programs","identifier":"3","label":"article","depth":3,"order_by":1,"parent_id":12847,"metadata":{},"date_created":"2026-06-26 03:45:52","date_modified":"2026-06-26 03:45:52","permalink":{"id":238377,"object_type":"structure","relational_id":13788,"identifier":"3","token":"53.1\/3\/3","url":"\/53.1\/3\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12847,"edition_id":1,"name":"Local Correctional Facilities","identifier":"3","label":"chapter","depth":2,"order_by":1,"parent_id":12717,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":238281,"object_type":"structure","relational_id":12847,"identifier":"3","token":"53.1\/3","url":"\/53.1\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12717,"edition_id":1,"name":"Prisons and Other Methods of Correction","identifier":"53.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":237591,"object_type":"structure","relational_id":12717,"identifier":"53.1","token":"53.1","url":"\/53.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":73366,"structure_id":13788,"section_number":"53.1-80","catch_line":"State reimbursement of localities for construction","url":"\/53.1-80\/","token":"53.1\/3\/3\/53.1-80","metadata":false},{"id":67872,"structure_id":13788,"section_number":"53.1-81","catch_line":"Construction and operation of regional jail facilities; state reimbursement; agreements with Department","url":"\/53.1-81\/","token":"53.1\/3\/3\/53.1-81","metadata":false},{"id":56283,"structure_id":13788,"section_number":"53.1-82","catch_line":"Regional contracts for cooperative jailing of offenders; state reimbursement","url":"\/53.1-82\/","token":"53.1\/3\/3\/53.1-82","metadata":false},{"id":59081,"structure_id":13788,"section_number":"53.1-82.1","catch_line":"Approval of jail projects by the Board; plan for community corrections","url":"\/53.1-82.1\/","token":"53.1\/3\/3\/53.1-82.1","metadata":false},{"id":86311,"structure_id":13788,"section_number":"53.1-82.2","catch_line":"Method of reimbursement; involvement of the Treasury Board","url":"\/53.1-82.2\/","token":"53.1\/3\/3\/53.1-82.2","metadata":false},{"id":80688,"structure_id":13788,"section_number":"53.1-82.3","catch_line":"Budgeting schedule for jail projects","url":"\/53.1-82.3\/","token":"53.1\/3\/3\/53.1-82.3","metadata":false},{"id":76204,"structure_id":13788,"section_number":"53.1-83","catch_line":"Repealed","url":"\/53.1-83\/","token":"53.1\/3\/3\/53.1-83","metadata":false},{"id":84541,"structure_id":13788,"section_number":"53.1-83.1","catch_line":"How state appropriations for operating costs of local correctional facilities determined","url":"\/53.1-83.1\/","token":"53.1\/3\/3\/53.1-83.1","metadata":false},{"id":60462,"structure_id":13788,"section_number":"53.1-84","catch_line":"State funds available to local correctional facilities for operating costs","url":"\/53.1-84\/","token":"53.1\/3\/3\/53.1-84","metadata":false},{"id":65680,"structure_id":13788,"section_number":"53.1-85","catch_line":"Time and manner of payment","url":"\/53.1-85\/","token":"53.1\/3\/3\/53.1-85","metadata":false},{"id":86228,"structure_id":13788,"section_number":"53.1-86","catch_line":"Limitation on use of state funds; records of receipts and disbursements","url":"\/53.1-86\/","token":"53.1\/3\/3\/53.1-86","metadata":false},{"id":58959,"structure_id":13788,"section_number":"53.1-87","catch_line":"Cost of maintenance of jails; payment by localities of respective shares of costs; judicial resolution of disagreements","url":"\/53.1-87\/","token":"53.1\/3\/3\/53.1-87","metadata":false},{"id":72584,"structure_id":13788,"section_number":"53.1-88","catch_line":"Governing body to examine statements, accounts and invoices and issue warrants","url":"\/53.1-88\/","token":"53.1\/3\/3\/53.1-88","metadata":false},{"id":82139,"structure_id":13788,"section_number":"53.1-89","catch_line":"Repealed","url":"\/53.1-89\/","token":"53.1\/3\/3\/53.1-89","metadata":false},{"id":84615,"structure_id":13788,"section_number":"53.1-90","catch_line":"Pay for United States prisoners","url":"\/53.1-90\/","token":"53.1\/3\/3\/53.1-90","metadata":false},{"id":56037,"structure_id":13788,"section_number":"53.1-91","catch_line":"Pay for prisoners from other counties, cities or towns","url":"\/53.1-91\/","token":"53.1\/3\/3\/53.1-91","metadata":false},{"id":59554,"structure_id":13788,"section_number":"53.1-92","catch_line":"Disposition of money collected from United States or other counties, cities or towns","url":"\/53.1-92\/","token":"53.1\/3\/3\/53.1-92","metadata":false},{"id":79020,"structure_id":13788,"section_number":"53.1-93","catch_line":"When sheriffs to summon or employ guards and other persons; allowances therefor; fees charged to prisoner","url":"\/53.1-93\/","token":"53.1\/3\/3\/53.1-93","metadata":false},{"id":58964,"structure_id":13788,"section_number":"53.1-94","catch_line":"Same when paid by county or city; same when by Compensation Board","url":"\/53.1-94\/","token":"53.1\/3\/3\/53.1-94","metadata":false},{"id":54797,"structure_id":13788,"section_number":"53.1-95","catch_line":"Provisions applicable to jail farms of counties and cities","url":"\/53.1-95\/","token":"53.1\/3\/3\/53.1-95","metadata":false},{"id":86494,"structure_id":13788,"section_number":"53.1-95.1","catch_line":"Limits on state expenditures","url":"\/53.1-95.1\/","token":"53.1\/3\/3\/53.1-95.1","metadata":false}],"previous_section":{"id":59081,"structure_id":13788,"section_number":"53.1-82.1","catch_line":"Approval of jail projects by the Board; plan for community corrections","url":"\/53.1-82.1\/","token":"53.1\/3\/3\/53.1-82.1","metadata":false},"next_section":{"id":80688,"structure_id":13788,"section_number":"53.1-82.3","catch_line":"Budgeting schedule for jail projects","url":"\/53.1-82.3\/","token":"53.1\/3\/3\/53.1-82.3","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/53.1-82.2\/","history_text":"

This law was first created in 1993. The record of its establishment is cataloged in chapters 387 and 787 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1993 \u201cActs\u201d aren\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1995, chapter 305<\/a>; in 1996, chapter 835<\/a>.<\/p>","references":[{"id":73366,"section_number":"53.1-80","catch_line":"State reimbursement of localities for construction","order_by":null,"url":"\/53.1-80\/"},{"id":67872,"section_number":"53.1-81","catch_line":"Construction and operation of regional jail facilities; state reimbursement; agreements with Department","order_by":null,"url":"\/53.1-81\/"},{"id":56283,"section_number":"53.1-82","catch_line":"Regional contracts for cooperative jailing of offenders; state reimbursement","order_by":null,"url":"\/53.1-82\/"},{"id":80688,"section_number":"53.1-82.3","catch_line":"Budgeting schedule for jail projects","order_by":null,"url":"\/53.1-82.3\/"}],"refers_to":[{"id":60152,"section_number":"2.2-2263","catch_line":"Powers and duties of Authority; limitations","order_by":null,"url":"\/2.2-2263\/"},{"id":73366,"section_number":"53.1-80","catch_line":"State reimbursement of localities for construction","order_by":null,"url":"\/53.1-80\/"},{"id":67872,"section_number":"53.1-81","catch_line":"Construction and operation of regional jail facilities; state reimbursement; agreements with Department","order_by":null,"url":"\/53.1-81\/"},{"id":56283,"section_number":"53.1-82","catch_line":"Regional contracts for cooperative jailing of offenders; state reimbursement","order_by":null,"url":"\/53.1-82\/"},{"id":58301,"section_number":"53.1-95.19","catch_line":"State reimbursement","order_by":null,"url":"\/53.1-95.19\/"}],"permalink":{"id":238395,"object_type":"law","relational_id":86311,"identifier":"53.1-82.2","token":"53.1\/3\/3\/53.1-82.2","url":"\/53.1-82.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/53.1-82.2\/","token":"53.1\/3\/3\/53.1-82.2","dublin_core":{"Title":"Method of reimbursement; involvement of the Treasury Board","Type":"Text","Format":"text\/html","Identifier":"\u00a7 53.1-82.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Reimbursements by the Commonwealth to localities or regional jail authorities for a portion of the capital costs of a jail project, made pursuant to \u00a7\u00a7 53.1-80<\/a>, 53.1-81<\/a>, 53.1-82<\/a>, or \u00a7 53.1-95.19<\/a> may be effected by one of the following methods: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> In one lump sum payment to be made upon completion of the project, for minor<\/span> renovation projects, or two equal lump sum payments, one such payment to be made upon certification that the construction, enlargement or renovation is fifty percent complete and the second such payment to be made upon completion of the project, such payments to be paid by the State Treasurer out of funds appropriated to the Department<\/span> of Corrections; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Over a specified period of time through a contractual agreement entered into by the Treasury Board<\/span> and approved by the Governor, on behalf of the Commonwealth, and the locality, localities or regional authority or other combination of localities undertaking a jail project, such payments to be paid by the State Treasurer out of funds appropriated to the Treasury Board<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> In one lump sum payment to be made upon completion of the project by the Virginia Public Building Authority pursuant to § 2.2-2263<\/a>, including the Commonwealth’s share of the interest costs expended by the locality or regional jail authority for financing such project during the period from fifty percent completion of construction to final completion of construction. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The General Assembly shall have the sole authority to determine whether reimbursement will be made pursuant to subdivision A 1, A 2, or A 3. The Department<\/span> of Planning and Budget, after consulting with the Treasury Board<\/span>, shall evaluate all proposed jail projects and make recommendations to the Governor regarding the method of reimbursement for inclusion in his biennial budget. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any contract<\/span> for reimbursement over a specified period of time entered into pursuant to subdivision A 2 shall include the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The Commonwealth shall reimburse a portion of financing costs<\/span> as provided in subsection E below; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Commonwealth’s reimbursement payments shall be subject to appropriation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> In the event that the jail project is financed through an issuance of securities, the Commonwealth’s reimbursement payments shall be calculated using the coupon interest rates received by the locality or jail authority at the time the securities for the project are sold and shall be made pursuant to a schedule to be set forth in the contract<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> In the event that a jail project is financed through an issuance of securities, and coupon interest rates are not available due to the structure of the securities, the Treasury Board<\/span> is authorized to make such adjustments as are necessary and reasonable to calculate the Commonwealth’s payments; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> In the event that the jail project is financed through a method other than the issuance of securities, the Commonwealth’s payment shall include interest payments based on an interest rate assumption equal to the prevailing AA rate for tax-exempt bonds<\/span> issued by the Commonwealth or agencies thereof, or the actual rate achieved, whichever is lower, and the schedule for the Commonwealth’s reimbursement payments shall be set forth in the contract<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Such other terms and conditions as are necessary to specify the structure of the Commonwealth’s participation in project financing and as may be required by guidelines established by the Treasury Board<\/span>.\n\t\t\t\tReimbursement to localities pursuant to this section shall be available without regard to the security level of the facility constructed, enlarged or renovated, provided such facility satisfies applicable standards established by the Board<\/span> pursuant to § 53.1-68<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> For purposes of this article, “capital costs” includes, but is not limited to, actual construction costs, costs of land acquisition, if the land purchased is used exclusively for siting a jail facility, architectural and engineering fees, and fixed equipment. “Capital costs” does not include administrative costs nor a financial advisor’s, an investment banker’s, or attorneys’ fees incurred by local governments or, except in the case of minimum security facilities, loose equipment or furnishings. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> For purposes of this article, “financing costs<\/span>” means the total of all costs incurred by the locality, localities or regional authority or other combination of localities as are deemed reasonable and necessary by the Treasury Board<\/span> to execute the financing of the Commonwealth’s payment of capital costs and to fund such funds and accounts as the Treasury Board<\/span> determines to be reasonable and necessary. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nMETHOD OF REIMBURSEMENT; INVOLVEMENT OF THE TREASURY BOARD (\u00a7 53.1-82.2)\n\nA. Reimbursements by the Commonwealth to localities or regional jail authorities\nfor a portion of the capital costs of a jail project, made pursuant to \u00a7\u00a7\n53.1-80, 53.1-81, 53.1-82, or \u00a7 53.1-95.19 may be effected by one of the\nfollowing methods:\n\n 1. In one lump sum payment to be made upon completion of the project, for\n minor renovation projects, or two equal lump sum payments, one such payment to\n be made upon certification that the construction, enlargement or renovation is\n fifty percent complete and the second such payment to be made upon completion\n of the project, such payments to be paid by the State Treasurer out of funds\n appropriated to the Department of Corrections;\n\n 2. Over a specified period of time through a contractual agreement entered\n into by the Treasury Board and approved by the Governor, on behalf of the\n Commonwealth, and the locality, localities or regional authority or other\n combination of localities undertaking a jail project, such payments to be paid\n by the State Treasurer out of funds appropriated to the Treasury Board; or\n\n 3. In one lump sum payment to be made upon completion of the project by the\n Virginia Public Building Authority pursuant to § 2.2-2263, including the\n Commonwealth’s share of the interest costs expended by the locality or\n regional jail authority for financing such project during the period from\n fifty percent completion of construction to final completion of construction.\n\nB. The General Assembly shall have the sole authority to determine whether\nreimbursement will be made pursuant to subdivision A 1, A 2, or A 3. The\nDepartment of Planning and Budget, after consulting with the Treasury Board,\nshall evaluate all proposed jail projects and make recommendations to the\nGovernor regarding the method of reimbursement for inclusion in his biennial\nbudget.\n\nC. Any contract for reimbursement over a specified period of time entered into\npursuant to subdivision A 2 shall include the following:\n\n 1. The Commonwealth shall reimburse a portion of financing costs as provided\n in subsection E below;\n\n 2. The Commonwealth’s reimbursement payments shall be subject to\n appropriation;\n\n 3. In the event that the jail project is financed through an issuance of\n securities, the Commonwealth’s reimbursement payments shall be\n calculated using the coupon interest rates received by the locality or jail\n authority at the time the securities for the project are sold and shall be\n made pursuant to a schedule to be set forth in the contract;\n\n 4. In the event that a jail project is financed through an issuance of\n securities, and coupon interest rates are not available due to the structure\n of the securities, the Treasury Board is authorized to make such adjustments\n as are necessary and reasonable to calculate the Commonwealth’s\n payments;\n\n 5. In the event that the jail project is financed through a method other than\n the issuance of securities, the Commonwealth’s payment shall include\n interest payments based on an interest rate assumption equal to the prevailing\n AA rate for tax-exempt bonds issued by the Commonwealth or agencies thereof,\n or the actual rate achieved, whichever is lower, and the schedule for the\n Commonwealth’s reimbursement payments shall be set forth in the\n contract; and\n\n 6. Such other terms and conditions as are necessary to specify the structure\n of the Commonwealth’s participation in project financing and as may be\n required by guidelines established by the Treasury Board.\n \t\t\t\tReimbursement to localities pursuant to this section shall be available\n without regard to the security level of the facility constructed, enlarged or\n renovated, provided such facility satisfies applicable standards established\n by the Board pursuant to § 53.1-68.\n\nD. For purposes of this article, “capital costs” includes, but is\nnot limited to, actual construction costs, costs of land acquisition, if the\nland purchased is used exclusively for siting a jail facility, architectural and\nengineering fees, and fixed equipment. “Capital costs” does not\ninclude administrative costs nor a financial advisor’s, an investment\nbanker’s, or attorneys’ fees incurred by local governments or,\nexcept in the case of minimum security facilities, loose equipment or\nfurnishings.\n\nE. For purposes of this article, “financing costs” means the total\nof all costs incurred by the locality, localities or regional authority or other\ncombination of localities as are deemed reasonable and necessary by the Treasury\nBoard to execute the financing of the Commonwealth’s payment of capital\ncosts and to fund such funds and accounts as the Treasury Board determines to be\nreasonable and necessary.\n\nHISTORY: 1993, cc. 387, 787; 1995, c. 305; 1996, c. 835.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}