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2024 SESSION

24108084D
SENATE BILL NO. 699
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the House Committee on Appropriations
on February 21, 2024)
(Patron Prior to Substitute--Senator Lucas)
A BILL to amend and reenact § 2.2-1831.3 of the Code of Virginia, relating to revenue reserves and budgetary amendments.

Be it enacted by the General Assembly of Virginia:

1. That § 2.2-1831.3 of the Code of Virginia is amended and reenacted as follows:

§ 2.2-1831.3. Commitment of funds for Revenue Reserve Fund.

A. On or before November 1 of each year, the Auditor of Public Accounts shall report to the General Assembly the total general fund revenues collected in the most recently ended fiscal year. The Auditor of Public Accounts shall, at the same time, provide his report on the amount that could be paid into the Fund and the amount by which the amount in the Fund is less than the maximum amount permitted.

B. Whenever there is a fiscal year in which general fund revenues do not result in a mandatory deposit to the Revenue Stabilization Fund required by Article X, Section 8 of the Constitution of Virginia, the Comptroller shall, at the end of the fiscal year, commit within his annual report pursuant to § 2.2-813 the amount of the general fund revenue in excess of the official forecast for that prior fiscal year, less any deposit to the Virginia Water Quality Improvement Fund pursuant to subsection A of § 10.1-2128, for deposit into the Fund. Such amount committed for deposit into the Fund shall not exceed one percent of the total general fund revenues for the prior fiscal year.

C. 1. The Governor shall include in "The Budget Bill" pursuant to § 2.2-1509 recommended appropriations from the general fund or recommended amendments to general fund appropriations in the general appropriation act in effect at that time an amount for deposit into the Fund at least equal to the amounts committed by the Comptroller and confirmed by the Auditor of Public Accounts for such purposes pursuant to the provisions of subsection B. A schedule of deposits may be provided in the appropriation act.

2. If the Governor includes in "The Budget Bill" pursuant to § 2.2-1509 a recommendation to transfer amounts in the Fund that are in excess of the limitation calculated by the Auditor of Public Accounts as provided in subsection F, he shall also identify in such recommendation the corresponding purpose and proposed use of any amounts so transferred within the corresponding items in such Budget Bill.

D. The State Comptroller shall draw such warrants as appropriated, and the State Treasurer shall deposit such warrants into the Fund. No withdrawal shall be made from the Fund except in accordance with § 2.2-1831.4.

E. For the purposes of the Comptroller's preliminary and final annual reports as required by § 2.2-813, all balances remaining in the Fund on June 30 of each fiscal year shall be considered to be a portion of the fund balance of the general fund of the state treasury. However, if any amounts accrue, such as through interest or dividends, to the credit of the Fund in excess of the limitation calculated by the Auditor of Public Accounts as provided in subsection F, any excess shall be paid into the general fund either from the Fund or from the Revenue Stabilization Fund created pursuant to § 2.2-1828.

F. At no time shall the combined amount in the Fund and the Revenue Stabilization Fund created pursuant to § 2.2-1828 exceed 15 percent of the Commonwealth's average annual tax revenues derived from taxes on income and retail sales as certified by the Auditor of Public Accounts for the three fiscal years immediately preceding.

G. 1. The State Comptroller shall transfer to the general fund from the Fund in the state treasury any amounts in excess of the limitations pursuant to provisions in subsection F and § 2.2-1829. The State Comptroller shall, pursuant to § 2.2-813, present such amount as "Amount Required for Nonrecurring Expenditures from Excess Revenue Reserve Fund" on the assigned fund balance.

2. If a transfer is required pursuant to subdivision 1 and the Revenue Stabilization Fund is not in excess of the limitation set by Article X, Section 8, of the Constitution of Virginia, the State Comptroller shall first transfer funds from the Fund until the requirements of subsection F and § 2.2-1829 are met.