Governor's Development Opportunity Fund; changes thereto. (SB109)

Introduced By

Sen. Walter Stosch (R-Glen Allen)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Governor's Development Opportunity Fund. Makes several changes to the Governor's Development Opportunity Fund including prohibiting awards from the Fund being used to pay or guarantee the payment for any rental, lease, license, or other contractual right to use property. For each five fiscal-year period, the bill would provide that one-third of the moneys in the Fund would be used for economic development projects in high unemployment areas. This distribution, however, would not be required if economic development prospects in such high unemployment areas are unable to fulfill applicable minimum private investment and new jobs requirements. The bill would require that, as a condition of an award from the Fund, the average wage of new jobs created must be no less than the prevailing average wage in the county or city of the economic development project. However, for economic development projects located in a county or city with an annual average unemployment rate greater than the statewide average unemployment rate, the average wage of the new jobs would be required to be at least 85% of the prevailing average wage. In addition, the Secretary of Commerce and Trade may award a grant or loan from the Fund for projects paying less than 85% of the prevailing average wage that will be located in counties and cities with such unemployment rate if the Secretary makes a written finding that the economic circumstances in the area are sufficiently distressed that assistance to the county or city to attract the project is nonetheless justified. As another condition of eligibility of an award from the Fund, the bill sets forth several elements that would have to be included in a contract between the political subdivision and the economic development prospect. These would include the fair market value of all funds that the Commonwealth commits to the project, the fair market value of all funds that the political subdivision agrees to provide to the project, and a negotiated formula for the repayment of moneys from the Fund if the economic development prospect does not create the contractually required number of new jobs or does not satisfy minimum investment requirements. The bill would require that all proposed contracts between political subdivisions and economic development prospects be reviewed by the Attorney General prior to execution. The Attorney General would be required to review the contract (i) for enforceability as to its provisions, and (ii) to ensure that it is in appropriate, legal form. The Attorney General would have seven days to provide any written suggestions, but the suggestions would be limited to enforceability of the contract or the appropriateness of the legal form of the contract. Read the Bill »

Status

04/19/2006: enacted

History

DateAction
01/09/2006Prefiled and ordered printed; offered 01/11/06 069101824
01/09/2006Referred to Committee on Finance
01/31/2006Reported from Finance with substitute (15-Y 0-N)
02/01/2006Committee substitute printed 069196824-S1
02/01/2006Constitutional reading dispensed (39-Y 0-N)
02/01/2006VOTE: (39-Y 0-N)
02/02/2006Read second time
02/02/2006Reading of substitute waived
02/02/2006Committee substitute agreed to 069196824-S1
02/02/2006Engrossed by Senate - committee substitute SB109S1
02/03/2006Read third time and passed Senate (39-Y 0-N)
02/03/2006VOTE: (39-Y 0-N)
02/03/2006Communicated to House
02/09/2006Fiscal impact statement from DPB (SB109S1)
02/14/2006Placed on Calendar
02/14/2006Read first time
02/14/2006Referred to Committee on General Laws
03/02/2006Reported from General Laws (22-Y 0-N)
03/06/2006Read second time
03/07/2006Read third time
03/07/2006Passed House BLOCK VOTE (98-Y 0-N)
03/07/2006VOTE: BLOCK VOTE PASSAGE (98-Y 0-N)
03/15/2006Enrolled
03/15/2006Signed by Speaker
03/15/2006Bill text as passed Senate and House (SB109ER)
03/16/2006Signed by President
03/23/2006Fiscal impact statement from DPB (SB109ER)
04/11/2006Governor's recommendation received by Senate
04/18/2006Placed on Calendar
04/19/2006Senate concurred in Governor's recommendation (38-Y 0-N)
04/19/2006VOTE: (38-Y 0-N)
04/19/2006House concurred in Governor's recommendation (95-Y 0-N)
04/19/2006VOTE: ADOPTION (95-Y 0-N)
04/19/2006G Governor's recommendation adopted
04/19/2006Reenrolled
04/19/2006Signed by President as reenrolled
04/19/2006Signed by Speaker as reenrolled
04/19/2006Enacted, Chapter 890 (effective 7/1/06)
04/19/2006Reenrolled bill text (SB109ER2)
04/19/2006G Acts of Assembly Chapter text (CHAP0890)