Be it enacted by the General Assembly of Virginia:

1.  That the Code of Virginia is amended by adding in Title 15.2 a chapter numbered 24.4, consisting of sections numbered 15.2-2441, 15.2-2442, and 15.2-2443, as follows:

§15.2-2441. Definitions.

As used in this chapter, unless the context requires a different meaning:

"Department" means the Department of Housing and Community Development.

"Fund" means the Efficiency Evaluation Fund created by this chapter.

"Local government" or "locality" means any county, city, or town in the Commonwealth.

§15.2-2442. Efficiency Evaluation Fund established.

There is hereby established in the state treasury a permanent and perpetual fund to be known as the Efficiency Evaluation Fund (the Fund). The Fund shall consist of sums appropriated to the Fund by the General Assembly, sums that may be allocated to the Commonwealth for this purpose by the United States government, all interest earned on moneys in the Fund, and all other sums designated for deposit to the Fund from any source, public or private. All funds remaining in the Fund at the end of each fiscal year shall be carried forward on the books of the Fund for use in subsequent years.

The Fund is created to provide grants to localities to pay a portion of the cost of engaging private consultants to evaluate how the localities may become more efficient. The Fund shall be administered and managed by the Department as prescribed in this chapter.

§15.2-2443. Grants.

Money in the Fund shall be used to make grants to a locality to pay a portion of the cost of engaging private consultants to evaluate how the locality may become more efficient in carrying out its activities. In addition, grants may be made jointly to two or more localities to mitigate evaluation costs in engaging private consultants that would otherwise be conducting studies on individual localities; and/or to evaluate means by which multiple localities may improve efficiencies in performing joint, regional activities.

No grant to a single locality shall exceed $100,000. No joint grant to multiple localities shall exceed $100,000 multiplied by the number of localities involved. Each grant shall be conditioned upon at least a 100 percent match of funds by the locality or localities. The Department shall develop guidelines for the administration of the grant program established by this chapter.