HB582: Center for Rural Virginia; expansion and promotion of agricultural opportunities.
Be it enacted by the General Assembly of Virginia:
1. That ? 2.2-2723 of the Code of Virginia is amended and reenacted as follows:
? 2.2-2723. Powers and duties of the Board of Trustees and the Center.
A. The Board of Trustees shall have the following powers and duties:
1. Manage, control, maintain, and operate the Center;
2. Take all actions necessary to qualify the Center as exempt from taxation pursuant to ? 501 (c) (3) of the Internal Revenue Code and operate the Center in accordance with the provisions governing nonstock corporations as set out in Chapter 10 of Title 13.1, provided that, in the event of the dissolution of the Center, assets shall be distributed for one or more exempt purposes within the meaning of ? 501 (c) (3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the Commonwealth or a local government for a public purpose;
3. Establish bylaws as may be necessary for the governance and conduct of business of the Board;
4. Employ and establish the qualifications and duties, and fix salaries and compensation of staff of the Center from such funds as may be available to the Center;
5. Seek federal funds available to state rural development councils, pursuant to the Farm Security and Rural Investment Act of 2002, P.L. 107-171;
6. Seek, accept, administer, and expend gifts, grants, donations, bequests, and any other funds on behalf of the Center to support and facilitate its work;
7. Accept, administer, and expend donations, bequests, or devises of real and personal property for the endowment of the Center or for any special purpose designated by the donor that is consistent with the purposes of the Center set forth in this article;
8. Have, in addition to its other powers, all the corporate powers given to nonstock corporations by the provisions of Title 13.1. The Board shall also have the power to accept, execute, and administer any trust in which it may have an interest under the terms of the instrument creating the trust;
9. Enter into contracts with respect to the duties and responsibilities imposed upon the Center herein;
10. Report annually concerning the status, needs, and accomplishments of the Center to the Governor and the General Assembly; and
11. Perform any lawful acts necessary or appropriate to carry out the purposes of this article.
B. The Center shall have the following powers and duties:
1. Develop a broad-based constituency to advocate for the interests of rural Virginia in the formulation of the Commonwealth's public policies;
2. Coordinate and facilitate research on rural issues and analyze the effect of public policies and private sector interests on rural communities;
3. Prepare a detailed analysis of rural Virginia economies annually for submission to the Board, together with feasible and appropriate alternatives designed to sustain economic growth in rural areas of the Commonwealth;
4. Facilitate public-private investments in the infrastructure of rural Virginia;
5. Develop programs designed to train local elected officials and community leaders for effective leadership in rural communities;
6. Foster innovative strategies that promote the development and prosperity of rural communities in the Commonwealth;
7. Facilitate the development of incentives and provide a forum for competing interests to allow for job creation and expanded economic opportunities for farm businesses and rural enterprises while ensuring the rights of localities to develop reasonable regulations of such farm businesses and rural enterprises to protect the health, safety and welfare of residents;
8. Provide for the collection, organization, storage, and dissemination of documents, data, and other information concerning issues relevant to the needs and continuous development of Virginia's rural areas, including technical and research assistance to rural localities in the development and implementation of their strategic plans;
8.9. Identify potential public and private
resources for the Board's consideration and review that may be used to generate
additional funds to support and facilitate the Center's work and foster the
development of rural communities;
9.10. Submit to the Board of Trustees such
reports regarding the Center's work, including, but not limited to, programs,
activities, policy analyses, and financial statements, as may be requested by
the Board; and
10.11. Perform such other acts as may be
necessary to accomplish the objectives of this article.
2. That the Center for Rural Virginia shall facilitate the creation of a rural enterprise opportunity task force to develop strategies that expand and promote economic opportunities of the agriculture industry throughout the Commonwealth. The task force shall be comprised of at least one representative from the Virginia Farm Bureau, the Virginia Agribusiness Council, the Virginia Department of Agriculture and Consumer Services, the Virginia Association of Counties, and the Virginia Chapter of the American Planning Association, and shall include at least one owner of a farm business or rural enterprise interested in expanded economic opportunities. The task force shall examine and make recommendations on the following issues as such issues are related to the expansion and promotion of farm businesses or rural enterprises: (i) local ordinances that may be unreasonably restrictive and efforts by localities to lessen such restrictions; (ii) provisions in law or regulation that may be unreasonably restrictive; (iii) innovative approaches taken to expand economic opportunities while preserving the rural character of the surrounding area; (iv) best management practices and successful strategies adopted in other states; (v) model ordinances and regulations that allow the marketing and sale of products or services; (vi) tax, regulatory, and other incentives; (vii) the structure and organizational design of a program that could encourage expansion and opportunity on an ongoing basis; (viii) the definition and eligibility of a qualified rural enterprise; and (ix) any other issues the task force deems relevant to meet the objectives of the study. The task force shall complete its work and provide, by November 1, 2010, its written recommendations in a report to the chairmen of the House Committee on Agriculture, Chesapeake and Natural Resources and the Senate Committee on Agriculture, Conservation and Natural Resources.
Be it enacted by the General Assembly of Virginia:
1. That § 58.1-3851 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding in Title 3.2 a chapter numbered 2.1, consisting of sections numbered 3.2-207 through 3.2-212, as follows:
§ 3.2-207. Definitions.
As used in this chapter, unless the context requires a different meaning:
"Agricultural production" means the production for commercial purposes of agricultural products, and includes the processing or retail sale of agricultural products produced by a qualified farm business.
"Agricultural products" means field crops, fruits, grapes, vegetables, horticultural specialties, and forestal products.
"Department" means the Department of Agriculture and Consumer Services.
"Equine operations" means (i) equine training or teaching activities or (ii) boarding equines.
"Farm business" means any sole proprietorship, corporation, partnership, electing small business (Subchapter S) corporation, or limited liability company engaged primarily in the business of agricultural production, forestal production, or equine operations in the Commonwealth.
"Forestal production" means the production for commercial purposes of forestal products and includes the processing or retail sales of forestal products produced by a qualified farm business.
"Forestal products" includes but is not limited to, saw timber, pulpwood, posts, firewood, Christmas trees, and other tree and wood products for sale or for farm use.
"Full service restaurant" means any establishment wherein meals with substantial entrees are regularly sold to the public and that has adequate facilities and sufficient employees for cooking, preparing, and serving such meals for consumption at tables in dining areas on the premises of the establishment.
"Limited service restaurant" means a restaurant serving only individually portioned prepackaged foods prepared offsite by a licensed food service provider.
"Local administrator" means the chief executive officer of the county, city, or town in which a qualified farm business is located, or his designee.
"Qualified farm business" means a farm business designated as a qualified farm business by the Department pursuant this chapter.
"Secretary" means the Secretary of Agriculture and Forestry.
§ 3.2-208. Administration.
The Department shall administer this chapter and shall have the power and duty to:
1. Establish eligibility requirements for farm businesses to be designated as qualified farm businesses in accordance with this chapter;
2. Monitor the implementation and operation of this chapter;
3. Conduct a continuing evaluation of the effect of this program on agricultural production, forestal production, and equine operations;
4. Assist counties, cities, and towns in reducing unnecessarily burdensome regulations within agricultural and forestry zoned areas; and
5. Establish conditions under which a designation as a qualified farm business may be suspended or revoked, and provide for the termination of the activities permitted under this chapter.
§ 3.2-209. Eligibility for designation as qualified farm business.
Any farm business may be designated a qualified farm business for purposes of this chapter if it:
1. Establishes or maintains within a rural or agricultural zoned area a farm business with a net investment of at least $100,000;
2. Increases the average number of employees employed at the farm business' establishment by at least 10 percent over the lower of the preceding two years' employment. Current employees of the farm business who are transferred directly to the qualified farm business facility from another site within the Commonwealth owned by the farm business resulting in a net loss of employment at that site shall not be included in calculating the increase in the average number of employees employed by the qualified farm business;
3. Has existing agricultural or forestal plantings meeting the minimum acres as set forth in § 3.2-212, or engages in equine operations, which operations regularly take place on a minimum of 13 contiguous acres; and
4. Has submitted an application for designation as a qualified farm business to the Department.
§ 3.2-210. Application required; notice to local administrator; redesignation.
A. The Department shall review each application upon receipt and shall secure any additional information that the Department deems necessary for the purpose of determining whether the farm business described in the application qualifies to be declared a qualified farm business.
B. The Department shall complete a review of the application within 60 days of its receipt. After review of the application, the Department shall forward those applications that meet the requirements for a qualified farm business to the Secretary with a copy to the local administrator in whose jurisdiction such qualified business is located. If an application is denied, the applicant shall be informed of that fact together with the reasons for the denial.
C. After a business has initially been designated as a qualified farm business pursuant to this section, the Department shall periodically on a schedule it has established make a determination as to whether the business continues to meet the definition of a qualified farm business and continues to meet the requirements for eligibility as a qualified farm business in effect at the time of its designation. The Department shall as soon as practicable provide a copy of its written determination to the business, the Secretary, and the local administrator in whose jurisdiction such business is located.
D. Actions of the Department relating to (i) the approval or denial of applications for qualification under this chapter, and (ii) determinations pursuant to subsection C shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.).
§ 3.2-211. Confidentiality of information; penalty.
Except in accordance with proper judicial order or as otherwise provided by law, no employee or former employee of the Department shall divulge any information acquired by him in the performance of his duties with respect to the tax liability, employment, property, or income of any farm business making application to the Department pursuant to this chapter. Any person violating this section shall be guilty of a Class 2 misdemeanor. The provisions of this section shall not apply to:
1. Acts performed or words spoken or published in the line of duty under law;
2. Inquiries and investigations to obtain information as to the implementation of this chapter by a duly constituted committee of the General Assembly, or when such inquiry or investigation is relevant to its study, provided that any such information shall be privileged; and
3. The publication of statistics so classified as to prevent the identification of particular farms or agricultural businesses.
§ 3.2-212. Agri-business Incentives; permitted activities; local control.
A. A qualified farm business that grows agricultural products on or engages in equine operations regularly taking place on:
1. Fifty or more contiguous acres, but less than 100 contiguous acres, shall be entitled to operate either a limited service restaurant or a facility to provide overnight lodging of not more than five rooms, provided that a qualified farm business engaging in equine operations regularly taking place on 13 or more contiguous acres, but less than 100 contiguous acres, shall be entitled to operate either a limited service restaurant or a facility to provide overnight lodging of not more than five rooms;
2. One hundred or more contiguous acres, but less than 200 contiguous acres, shall be entitled to operate either a full service restaurant or a facility to provide overnight lodging of not more than 10 rooms; or
3. Two hundred or more contiguous acres shall be entitled to operate either a limited service or a full service restaurant and a facility to provide overnight lodging of not more than 10 rooms.
B. The operation of restaurants and overnight lodging facilities authorized by this chapter shall be permitted notwithstanding the provisions of any local zoning ordinance. However, a locality may establish requirements for:
1. The resolution of demonstrated conflicts with existing forestry or farming practices on adjacent lands to minimize the adverse impact of the operation of a qualified farm business to adjoining property owners:
2. The establishment of setback requirements for any restaurants and overnight lodging facilities authorized by this chapter; and
3. Direct road access, internal circulation, and parking.
C. Except as provided in subsection B, nothing in this chapter shall be construed or interpreted to exempt any qualified farm business from other state or local requirements necessary to protect the public health, safety or welfare, including but not limited to the Uniform Statewide Building Code, Statewide Fire Prevention Code, or any program administered by or regulations of the State Board of Health, the State Health Commissioner, the State Health Department, or any local health departments.
§ 58.1-3851. Creation of local tourism zones.
A. Any city, county, or town may establish, by ordinance, one or more tourism zones. Each locality may grant tax incentives and provide certain regulatory flexibility in a tourism zone.
B. The tax incentives may be provided for up to 20 years and may include, but not be limited to (i) reduction of permit fees, (ii) reduction of user fees, and (iii) reduction of any type of gross receipts tax. The extent and duration of such incentive proposals shall conform to the requirements of the Constitutions of Virginia and of the United States.
C. The governing body may also provide for regulatory flexibility in such zone that may include, but not be limited to (i) special zoning for the district, (ii) permit process reform, (iii) exemption from ordinances, excluding ordinances or provisions of ordinances adopted pursuant to the requirements of the Chesapeake Bay Preservation Act (§ 10.1-2100 et seq.), the Erosion and Sediment Control Law (§ 10.1-560 et seq.), or the Virginia Stormwater Management Act (§ 10.1-603.1 et seq.), and (iv) any other incentive adopted by ordinance, which shall be binding upon the locality for a period of up to 10 years.
D. Each county, city, or town may provide the tax incentives described under subsection B or the regulatory flexibility described under subsection C to each qualified farm business as defined in § 3.2-207 located in the county, city, or town.
D E. The establishment of a
tourism zone shall not preclude the area from also being designated as an
enterprise zone.