                                 CODE OF VIRGINIA

PROFFERED CASH PAYMENTS AND EXPENDITURES (§ 15.2-2303.2)

A. The governing body of any locality accepting cash payments voluntarily
proffered on or after July 1, 2005, pursuant to &#xA7; 15.2-2298, 15.2-2303, or
15.2-2303.1 shall, within 12 years of receiving full payment of all cash
proffered pursuant to an approved rezoning application, begin, or cause to begin
(i) construction, (ii) site work, (iii) engineering, (iv) right-of-way
acquisition, (v) surveying, or (vi) utility relocation on the improvements for
which the cash payments were proffered. A locality that does not comply with the
above requirement, or does not begin alternative improvements as provided for in
subsection C, shall forward the amount of the proffered cash payments to the
Commonwealth Transportation Board no later than December 31 following the fiscal
year in which such forfeiture occurred for direct allocation to the secondary
system construction program or the urban system construction program for the
locality in which the proffered cash payments were collected. The funds to which
any locality may be entitled under the provisions of Title 33.2 for
construction, improvement, or maintenance of primary, secondary, or urban roads
shall not be diminished by reason of any funds remitted pursuant to this
subsection by such locality, regardless of whether such contributions are
matched by state or federal funds.

B. The governing body of any locality eligible to accept any proffered cash
payments pursuant to &#xA7; 15.2-2298, 15.2-2303, or 15.2-2303.1 shall, for each
fiscal year beginning with the fiscal year 2007, (i) include in its capital
improvement program created pursuant to &#xA7; 15.2-2239, or as an appendix
thereto, the amount of all proffered cash payments received during the most
recent fiscal year for which a report has been filed pursuant to subsection E,
and (ii) include in its annual capital budget the amount of proffered cash
payments projected to be used for expenditures or appropriated for capital
improvements in the ensuing year.

C. Regardless of the date of rezoning approval, unless prohibited by the proffer
agreement accepted by the governing body of a locality pursuant to &#xA7;
15.2-2298, 15.2-2303, or 15.2-2303.1, a locality may utilize any cash payments
proffered for any road improvement or any transportation improvement that is
incorporated into the capital improvements program as its matching contribution
under &#xA7; 33.2-357. For purposes of this section, &#8220;road
improvement&#8221; includes construction of new roads or improvement or
expansion of existing roads as required by applicable construction standards of
the Virginia Department of Transportation to meet increased demand attributable
to new development. For purposes of this section, &#8220;transportation
improvement&#8221; means any real or personal property acquired, constructed,
improved, or used for constructing, improving, or operating any (i) public mass
transit system or (ii) highway, or portion or interchange thereof, including
parking facilities located within a district created pursuant to this title.
Such improvements shall include, without limitation, public mass transit
systems, public highways, and all buildings, structures, approaches, and
facilities thereof and appurtenances thereto, rights-of-way, bridges, tunnels,
stations, terminals, and all related equipment and fixtures.
			Regardless of the date of rezoning approval, unless prohibited by the proffer
agreement accepted by the governing body of a locality pursuant to &#xA7;
15.2-2298, 15.2-2303, or 15.2-2303.1, a locality may utilize any cash payments
proffered for capital improvements for alternative improvements of the same
category within the locality in the vicinity of the improvements for which the
cash payments were originally made. Prior to utilization of such cash payments
for the alternative improvements, the governing body of the locality shall give
at least 30 days&#8217; written notice of the proposed alternative improvements
to the entity who paid such cash payment mailed to the last known address of
such entity, or if proffer payment records no longer exist, then to the original
zoning applicant, and conduct a public hearing on such proposal advertised as
provided in subsection F of &#xA7; 15.2-1427. The governing body of the locality
prior to the use of such cash payments for alternative improvements shall,
following such public hearing, find: (a) the improvements for which the cash
payments were proffered cannot occur in a timely manner or the functional
purpose for which the cash payment was made no longer exists; (b) the
alternative improvements are within the vicinity of the proposed improvements
for which the cash payments were proffered; and (c) the alternative improvements
are in the public interest. Notwithstanding the provisions of the Virginia
Public Procurement Act, the governing body may negotiate and award a contract
without competition to an entity that is constructing road improvements pursuant
to a proffered zoning condition or special exception condition in order to
expand the scope of the road improvements by utilizing cash proffers of others
or other available locally generated funds. The local governing body shall adopt
a resolution stating the basis for awarding the construction contract to extend
the scope of the road improvements. All road improvements to be included in the
state primary or secondary system of highways must conform to the adopted
standards of the Virginia Department of Transportation.

D. Notwithstanding any provision of this section or any other provision of law,
general or special, no cash payment proffered pursuant to &#xA7; 15.2-2298,
15.2-2303, or 15.2-2303.1 shall be used for any capital improvement to an
existing facility, such as a renovation or technology upgrade, that does not
expand the capacity of such facility or for any operating expense of any
existing facility such as ordinary maintenance or repair.

E. The governing body of any locality with a population in excess of 3,500
persons accepting a cash payment voluntarily proffered pursuant to § 15.2-2298,
15.2-2303, or 15.2-2303.1 shall within three months of the close of each fiscal
year, beginning in fiscal year 2002 and for each fiscal year thereafter, report
to the Commission on Local Government the following information for the
preceding fiscal year:

   1. The aggregate dollar amount of proffered cash payments collected by the
   locality;

   2. The estimated aggregate dollar amount of proffered cash payments that have
   been pledged to the locality and which pledges are not conditioned on any
   event other than time; and

   3. The total dollar amount of proffered cash payments expended by the
   locality, and the aggregate dollar amount expended in each of the following
   categories:

F. The governing body of any locality with a population in excess of 3,500
persons eligible to accept any proffered cash payments pursuant to &#xA7;
15.2-2298, 15.2-2303, or 15.2-2303.1 but that did not accept any proffered cash
payments during the preceding fiscal year shall within three months of the close
of each fiscal year, beginning in 2001 and for each fiscal year thereafter, so
notify the Commission on Local Government.

G. The Commission on Local Government shall by November 30, 2001, and by
November 30 of each fiscal year thereafter, prepare and make available to the
public and the chairmen of the Senate Local Government Committee and the House
Counties, Cities and Towns Committee an annual report containing the information
made available to it pursuant to subsections E and F.

HISTORY: 2001, c. 282; 2003, c. 522; 2005, c. 855; 2006, cc. 583, 872, 882;
2007, c. 321; 2012, c. 521; 2013, cc. 510, 541.