23-38.78 - Board actions not a debt of Commonwealth. - Virginia Statutes

§ 23-38.78. Board actions not a debt of Commonwealth.

A. No act or undertaking of the Board shall be deemed to constitute a debt ofthe Commonwealth or any political subdivision thereof, or a pledge of thefull faith and credit of the Commonwealth or of any political subdivision,but shall be payable solely from the Plan.

B. Notwithstanding the provisions of subsection A, in order to ensure thatthe Plan is able to meet its current obligations, the Governor shall includein the budget bills submitted pursuant to § 2.2-1509 a sum sufficientappropriation for the purpose of ensuring that the Plan can meet the currentobligations of the Plan. Any sums appropriated by the General Assembly forsuch purpose shall be deposited into the Fund. All amounts paid into the Fundpursuant to this subsection shall constitute and be accounted for as advancesby the Commonwealth to the Plan and, subject to the rights of the Plan'scontract holders, shall be repaid to the Commonwealth without interest fromavailable operating revenue of the Plan in excess of amounts required for thepayment of current obligations of the Plan. As used in this section,"current obligations of the Plan" means amounts required for the payment ofcontract benefits or other obligations of the Plan, the maintenance of thePlan, and operating expenses for the current biennium.

(1994, c. 661; 1998, c. 373; 2000, cc. 382, 400.)