GOVERNOR'S VETO

Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto House Bill 577.  This bill would allow abandoned funds held in escrow by real estate brokers in interpleader cases heard in general district courts to be directed to the Virginia Housing Trust Fund.  While I fully support the Virginia Housing Trust Fund, the mechanism established by this legislation is unconstitutional.

Article VIII, Section 8 of the Constitution of Virginia requires that all escheated funds be deposited in the Literary Fund.  Although House Bill 577 does not use the term “escheated funds,” the abandoned monies identified in the legislation nevertheless qualify as escheated funds.

In order to rectify this constitutional problem, I proposed amended language that replaced the Virginia Housing Trust Fund with the Literary Fund.  The General Assembly elected not to accept the proposed language, returning House Bill 577 to me in the original, unconstitutional form.

I was pleased that the General Assembly concurred with my investment in the Virginia Housing Trust Fund for the upcoming biennial budget.  I commend Delegate Robinson and supporters of this bill for attempting to further enhance that Fund.  While the mechanism outlined in HB 577 is unworkable, I look forward to working with interested parties to identify a better solution.

Accordingly, I veto this bill.

GOVERNOR'S RECOMMENDATION

1. Line 46, enrolled, after (ii) the

strike

the remainder of line 46, all of line 47, and through § 36-142 on line 48

insert

Literary Fund

2. Line 54, enrolled, after paid to the

strike

Virginia Housing Trust

insert

Literary