                                 CODE OF VIRGINIA

BOARD ACTIONS NOT A DEBT OF COMMONWEALTH (§ 23.1-705)

A. As used in this section, &#8220;current obligations of the Plan&#8221; means
amounts required for the payment of contract benefits or other obligations of
the Plan, the maintenance of the Plan, and operating expenses for the current
biennium.

B. No act or undertaking of the board is a debt or a pledge of the full faith
and credit of the Commonwealth or any political subdivision of the Commonwealth,
and all such acts and undertakings are payable solely from the Plan.

C. Notwithstanding the provisions of subsection B, in order to ensure that the
Plan is able to meet its current obligations, the Governor shall include in the
budget bills submitted pursuant to &#xA7; 2.2-1509 a sum sufficient
appropriation for the purpose of ensuring that the Plan can meet the current
obligations of the Plan. Any sums appropriated by the General Assembly for such
purpose shall be deposited into the Fund. All amounts paid into the Fund
pursuant to this subsection shall constitute and be accounted for as advances by
the Commonwealth to the Plan and, subject to the rights of the Plan&#8217;s
contract holders, shall be repaid to the Commonwealth without interest from
available operating revenue of the Plan in excess of amounts required for the
payment of current obligations of the Plan.

HISTORY: 1994, c. 661, § 23-38.78; 1998, c. 373; 2000, cc. 382, 400; 2016, c.
588.