                                 CODE OF VIRGINIA

REVENUE-SHARING FUNDS FOR SYSTEMS IN CERTAIN LOCALITIES (§ 33.2-357)

A. From revenues made available by the General Assembly and appropriated for the
improvement, construction, reconstruction, or maintenance of the systems of
state highways, the Board may make an equivalent matching allocation to any
locality for designations by the governing body of up to $5 million for use by
the locality to improve, construct, maintain, or reconstruct the highway systems
within such locality with up to $2.5 million for use by the locality to maintain
the highway systems within such locality. After adopting a resolution supporting
the action, the governing body of the locality may request revenue-sharing funds
to improve, construct, reconstruct, or maintain a highway system located in
another locality or between two or more localities or to bring subdivision
streets, used as such prior to the date specified in &#xA7; 33.2-335, up to
standards sufficient to qualify them for inclusion in the primary or secondary
state highway system. All requests for funding shall be accompanied by a
prioritized listing of specified projects.

B. In allocating funds under this section, the Board shall give priority to
projects as follows: first, to projects that have previously received an
allocation of funds pursuant to this section; second, to projects that (i) meet
a transportation need identified in the Statewide Transportation Plan pursuant
to &#xA7; 33.2-353 or (ii) accelerate a project in a locality&#8217;s capital
plan; and third, to projects that address pavement resurfacing and bridge
rehabilitation projects where the maintenance needs analysis determines that the
infrastructure does not meet the Department&#8217;s maintenance performance
targets.

C. The Department shall contract with the locality for the implementation of the
project. Such contract may cover either a single project or may provide for the
locality&#8217;s implementation of several projects. The locality shall
undertake implementation of the particular project by obtaining the necessary
permits from the Department in order to ensure that the improvement is
consistent with the Department&#8217;s standards for such improvements. At the
request of the locality, the Department may provide the locality with
engineering, right-of-way acquisition, construction, or maintenance services for
a project with its own forces. The locality shall provide payment to the
Department for any such services. If administered by the Department, such
contract shall also require that the governing body of the locality pay to the
Department within 30 days the local revenue-sharing funds upon written notice by
the Department of its intent to proceed. Any project having funds allocated
under this program shall be initiated in such a fashion that at least a portion
of such funds have been expended within one year of allocation. Any
revenue-sharing funds for projects not initiated after two subsequent fiscal
years of allocation may be reallocated at the discretion of the Board.

D. Total Commonwealth funds allocated by the Board under this section shall not
exceed the greater of $100 million or seven percent of funds available for
distribution pursuant to subsection B of &#xA7; 33.2-358 prior to the
distribution of funds pursuant to this section, whichever is greater, in each
fiscal year, subject to appropriation for such purpose. For any fiscal year in
which less than the full program allocation has been allocated by the Board to
specific governing bodies, those localities requesting the maximum allocation
under subsection A may be allowed an additional allocation at the discretion of
the Board.

E. The funds allocated by the Board under this section shall be distributed and
administered in accordance with the revenue-sharing program guidelines
established by the Board.

HISTORY: 2006, c. 827, § 33.1-23.05; 2008, c. 608; 2011, cc. 830, 868; 2012,
cc. 729,  733; 2014, c. 805; 2015, c. 684; 2018, c. 828; 2020, cc. 1230, 1275.