                                 CODE OF VIRGINIA

DISPOSITION OF PROPERTY RECEIVED BY SUBDIVISIONS AS RESULT OF CONVERSION OF
MUTUAL INSURANCE COMPANY TO STOCK CORPORATION (§ 15.2-1512.1)

The governing body of each locality that receives cash, shares of stock, or
both, as a result of the conversion of Blue Cross and Blue Shield of Virginia,
doing business as Trigon Blue Cross Blue Shield (hereafter referred to as
Trigon), from a mutual insurance company to a stock corporation known as Trigon
Healthcare, Inc., by reason of its school division&#8217;s status as a present
or former group policyholder of Trigon shall, by appropriate ordinance or
resolution, authorize the treasurer of such locality to create two separate
funds upon the books of the locality, as hereinafter described. Upon the
enactment or adoption of such ordinance or resolution, the treasurer of the
locality shall place all such stock, including any proceeds derived from the
sale or other conveyance of any such stock, and cash, into these separate funds.
The stock or proceeds and cash shall be divided equally between the two separate
funds set forth in subsections A and B of this section; however, (i) the local
governing body may place a greater proportion or all of the stock or proceeds
and cash in the fund described in subsection A, with the consent of the school
board and (ii) if on or before January 1, 1997, a school board has requested and
the local governing body has approved the allocation of the proceeds from the
sale of its stock for a school construction or renovation project, the remainder
of such proceeds shall be used to create a fund to offset health insurance
premium increases incurred by the present and future employees of the school
board and governing body.

A. The first fund shall be known as the &#8220;County/City of _________________
Schools Health Insurance Premium Fund.&#8221; All principal placed into this
fund, together with all income arising from or attributable to the fund, shall
be used solely to offset health insurance premium expenses incurred by or on
behalf of present and future employees of the school division of the locality;
however, the governing body of the locality may use a portion of the principal
placed into the fund, a portion of the income arising from or attributable to
the fund, or both, to compensate present or future retired employees of the
school division of the locality for (i) health insurance premium expenses
payable by the retired employees, (ii) health insurance premium expenses paid
for by such retired employees for periods prior to July 1, 1997, during which
the retired employees were insured under a health insurance policy through the
school division of the locality as a group policyholder of Trigon, or (iii) both
(i) and (ii), in such amounts, if any, as the governing body shall determine
appropriate. No disbursement from the fund may be made except upon specific
appropriation by the governing body in accordance with applicable law.

B. The second fund, if any, shall be known as the &#8220;County/City of
_________________ School Construction, Renovation, Maintenance, Capital Outlay,
and Debt Service Fund.&#8221; All principal placed into this fund, together with
all income arising from or attributable to the fund, shall be used solely for
the purposes of school construction, school renovation, major school
maintenance, capital outlay, and debt service in the public schools of the
locality. No disbursement from this fund may be made except upon specific
appropriation by the governing body in accordance with applicable law.

C. All stock or proceeds and cash placed into separate funds pursuant to the
provisions of this act, including all income arising from or attributable to
such funds, shall be deemed public funds of the locality and shall be subject to
all limitations upon deposit and investment provided by general law, including
without limitation the Virginia Security for Public Deposits Act (&#xA7;
2.2-4400 et seq.). Income, dividends, distributions and sale proceeds accruing
to the separate funds shall be retained in the funds and may be expended only in
accordance with the terms of this act.

HISTORY: 1997, cc. 803, 888, 891, § 15.1-52.1; 1998, c. 256; 2000, cc. 66, 657;
2013, c. 687.