                                 CODE OF VIRGINIA

LOTTERY PROCEEDS NONRECURRING COSTS ESCROW ACCOUNTS (§ 22.1-100.1)

A. Notwithstanding the provisions of subsection A of &#xA7; 22.1-100, the
governing body of any locality may authorize the local treasurer or fiscal
officer, by ordinance or resolution, to create a separate escrow account upon
the books of the locality for the deposit of that portion of the
locality&#8217;s appropriation from the lottery proceeds which are designated,
pursuant to Item 139 B 4 of Chapter 935 of the 1999 Acts of Assembly or any
other state law, for nonrecurring costs incurred by the relevant school
division.
			Such nonrecurring costs shall include school construction, additions,
infrastructure, site acquisition, renovations, technology, and other
expenditures related to modernizing classroom equipment, and debt service
payments on school projects completed during the last ten years. Upon adoption
of the proper ordinance or resolution, the treasurer or local fiscal officer of
the locality shall place such appropriation into a separate lottery proceeds
nonrecurring costs escrow account. Under no circumstances shall the escrow
account allowed for the school construction grants pursuant to &#xA7; 22.1-175.5
be used for these deposits.

B. The escrow account shall be known as the &#8220;County/City/Town of
_______________ Lottery Proceeds Nonrecurring Costs Fund.&#8221; All principal
deposited to such fund, together with all income from or attributable to the
fund, 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 school
buildings 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 appropriation
by the governing body in accordance with applicable law. If a locality
establishes such a fund and designates any portion of the funds deposited
therein to pay debt service for (i) any general obligation of the locality held
by the Virginia Public School Authority or (ii) any Literary Fund loan, the
locality shall obtain an opinion of bond counsel that designation of funds 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 or attributable
to such fund, shall be deemed public funds of the locality and shall be subject
to all limitations upon deposit and investment provided by general law,
including, but not limited to, the Virginia Security for Public Deposits Act
(&#xA7; 2.2-4400 et seq.). Income, dividends, distributions, and grants accruing
to the fund shall be retained in such fund and shall be expended only in
accordance with the terms of this section.

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

HISTORY: 2000, cc. 635, 693; 2024, c. 294.