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_ 652 Item Details($) Appropriations($) First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 earnings derived from the investment of bond proceeds in addition to the amount designated in the 9(C) Revenue Bonds and 9(D) Revenue Bonds sections in part 2 of this act for such capital project. 5. The interest on bonds to be issued for these projects may be subject to inclusion in gross income for federal income tax purposes. 6. Inclusion of a project in this act does not imply a commitment of state funds for temporary construction financing. In the absence of such commitment, the institution may be responsible for securing short-term financing and covering the costs from other sources of funds. 7. In the event that the Treasury Board determines not to finance all or any portion of any project listed in the 9(C) Revenue Bonds section in Part 2 of this act with the issuance of bonds pursuant to Article X, Section 9 (c), Constitution of Virginia, and notwithstanding any provision of law to the contrary, this act shall constitute the approval of the General Assembly to finance all or such portion of such project under the authorization of the 9(D) Revenue Bonds section in Part 2 of this act. 8. The General Assembly further declares and directs that, notwithstanding any other provision of law to the contrary, 50 percent of the proceeds from the sale of surplus real property pursuant to § 2.2-1147 et seq., Code of Virginia, which pertain to the general fund, and which were under the control of an institution of higher education prior to the sale, shall be deposited in a special fund set up on the books of the State Comptroller, which shall be known as the Higher Education Capital Projects Fund. Such sums shall be held in reserve, and may be used, upon appropriation, to pay debt service on bonds for the 21st Century College Program as authorized in Item C-7.10 of Chapter 924 of the Acts of Assembly of 1997. 9. Notwithstanding any other provision of law, a public institution of higher education may participate in the United States Department of Education Historically Black College and University Capital Financing Program (HBCU Program), and use federal grant and contract funds as permitted by the Program. G. Upon certification by the Director, Department of Planning and Budget, there is hereby reappropriated the appropriations unexpended at the close of the previous biennium for all authorized capital projects which meet any of the following conditions: 1. Construction is in progress. 2. Equipment purchases have been authorized by the Governor but not received. 3. Plans and specifications have been authorized by the Governor but not completed. 4. Obligations were outstanding at the end of the previous biennium. H. Alternative Financing 1. Any agency or institution of the Commonwealth that would construct, purchase, lease, or exchange a capital asset by means of an alternative financing mechanism, such as the Public Private Education Infrastructure Act, or similar statutory authority, shall provide a report to the Governor and the Chairs of the Senate Finance and Appropriations Committee and the and House Appropriations Committees no less than 30 days prior to entering into such alternative financing agreement. This report shall provide: a. a description of the purpose to be achieved by the proposal; b. a description of the financing options available, including the alternative financing, which will delineate the revenue streams or client populations pledged or encumbered by the alternative financing; c. an analysis of the alternatives clearly setting out the advantages and disadvantages of each for the Commonwealth; d. an analysis of the alternatives clearly setting out the advantages and disadvantages of each for the clients of the agency or institution; and e. a recommendation and planned course of action based on this analysis. I. Conditions Applicable to Alternative Financing The following authorizations to construct, purchase, lease or exchange a capital asset by means of an alternative financing mechanism, such as the Public Private Education Infrastructure Act, or similar statutory authority, are continued until revoked. Projects in this section shall be consistent with the guidelines of the Department of General Services and comply with Treasury Board Guidelines issued pursuant to § 23.1-1106 C.1.d, Code of Virginia. Furthermore, projects in this section shall be submitted for comment to the Six- Year Capital Outlay Plan Advisory Committee, established under § 2.2-1516, Code of Virginia: 1. James Madison University a. Subject to the provisions of this act, the General Assembly authorizes James Madison University, with the approval of the Governor, to explore and evaluate an alternative financing scenario to provide additional parking, student housing, and/or operational related