SB1316: MEI Project Approval Commission; changes to membership and operation of Commission.
Be it enacted by the General Assembly of Virginia:
1. That §§ 30-309, 30-310, 30-311, and 30-312 of the Code of Virginia are amended and reenacted as follows:
§ 30-309. MEI Project Approval Commission; membership; terms; compensation and expenses; definition.
A. The MEI Project Approval Commission (the Commission) is established as an advisory commission in the legislative branch of state government. The purpose of the Commission shall be to review financing for individual incentive packages, including but not limited to packages offering tax incentives, for economic development projects (including but not limited to MEI projects), tourism projects, and film projects for which (i) one or more of the incentives in the incentive package is not authorized under current law or an amendment by the General Assembly is being sought to one or more currently existing incentives included as part of the incentive package or (ii) the aggregate amount of incentives to be provided by the Commonwealth in the incentive package including grants, tax incentives such as credits and exemptions related to economic development, tourism, or the film industry, general or nongeneral funds, proceeds from bonds, rights to lease property at below fair market value, or any other incentives from the Commonwealth is in excess of $10 million in value. However, no review shall be required for a project if the only incentives to be provided to a potential project are nondiscretionary tax credits or exemptions available to any qualified taxpayer under existing law.
B. The Commission shall consist of 10 11 members
as follows: five members of the House Committee on Appropriations or the House
Committee on Finance appointed by the chair of the House Committee on
Appropriations and three four members of the Senate Committee on
Finance appointed by the chair of the Senate Committee on Finance. In addition,
the Secretaries of Finance and Commerce and Trade shall serve as ex officio,
nonvoting members of the Commission.
C. Members shall serve terms coincident with their terms of office. Vacancies for unexpired terms shall be filled in the same manner as the original appointments. Members may be reappointed for successive terms.
D. The members of the Commission shall elect a chairman and vice-chairman annually. A majority of the voting members of the Commission shall constitute a quorum. The meetings of the Commission shall be held at the call of the chairman or whenever the majority of the members so request.
E. Legislative members of the Commission shall receive such compensation as provided in § 30-19.12, and nonlegislative members shall receive such compensation as provided in § 2.2-2813.
F. As used in this chapter, "MEI project" means the same as that term is defined in § 2.2-2260.
§ 30-310. Review of incentive packages.
A. 1. The Commission shall review individual incentive
packages, including but not limited to packages offering tax incentives, for
economic development projects (including but not limited to MEI projects),
tourism projects, or film projects for which (i) one or more of the
incentives in the incentive package is not authorized under current law or an
amendment by the General Assembly is being sought to one or more currently
existing incentives included as part of the incentive package or (ii) the
aggregate amount of incentives to be provided by the Commonwealth in the
incentive package including grants, tax incentives such as credits and
exemptions, general or nongeneral funds, proceeds from bonds, rights to lease
property at below fair market value, or any other incentives from the
Commonwealth is in excess of $10 million in value. However, no review shall
be required for a project if the only incentives to be provided to a potential
project are nondiscretionary tax credits or exemptions available to any
qualified taxpayer under existing law. The Commission shall also review
economic development projects in which a business relocates or expands its
operations in one or more Virginia localities and simultaneously closes its
operations or substantially reduces the number of its employees in another
Virginia locality. The Commission shall recommend approval or denial of such
packages and projects to the General Assembly. Factors that shall be considered
by the Commission in its review shall include, but not be limited to
(i) (a) return on investment, (ii) (b) the time frame
for repayment of incentives to the Commonwealth, (iii) (c)
average wages of the jobs created by the prospective MEI project or other
economic development project, (iv) (d) the amount of capital
investment that is required, and (v) (e) the need for enhanced
employment opportunities in the prospective location of the prospective MEI
project or other economic development project.
2. a. Any time a proposed individual incentive package is to
be considered by the Commission, materials outlining (i) the value of the
proposed incentives, (ii) assumed return on investment, (iii) the time frame
for repayment of incentives to the Commonwealth, (iv) average wages of the jobs
created by the prospective MEI project or other economic development,
tourism, or film project, (v) the amount of capital investment that is
required, and (vi) the need for enhanced employment opportunities in the
prospective location of the prospective MEI project or other economic
development, tourism, or film project, (vii) the total amount of
state incentives received by the sponsor of the economic development, tourism,
or project in the past, and (viii) a list of all other existing,
nondiscretionary tax credits or exemptions for which the sponsor of the
economic development, tourism, or film project may qualify shall be
provided to the Commission members not less than 48 hours five business
days prior to the scheduled Commission meeting. The Commission shall
also be provided with an aggregate list of all discretionary incentives
currently committed by the Commonwealth for the next 10 years, including
anticipated requests for appropriations to satisfy such commitments during that
time.
b. The timing of any request for an endorsement of a proposed individual incentive package should be scheduled so that the MEI Commission could, at its discretion, have up to seven days subsequent to the presentation of the incentive package prior to endorsing or rejecting such proposal.
B. An affirmative vote by three of the five members of the
Commission from the House of Delegates and two three of the
three four members of the Commission from the Senate shall be
required to endorse any incentive package, including but not limited to
packages offering tax incentives, for economic development projects (including
but not limited to MEI projects), tourism projects, and film projects
for which (i) one or more of the incentives in the incentive package is not
authorized under current law or an amendment by the General Assembly is being
sought to one or more currently existing incentives included as part of the
incentive package or (ii) the aggregate amount of incentives to be provided by
the Commonwealth in the incentive package including grants, tax incentives such
as credits and exemptions, general or nongeneral funds, proceeds from bonds,
rights to lease property at below fair market value, or any other incentives
from the Commonwealth is in excess of $10 million in value. Such vote shall
also be required to endorse any economic development project in which a
business relocates or expands its operations in one or more Virginia localities
and simultaneously closes its operations or substantially reduces the number of
its employees in another Virginia locality. However, no vote shall be
required for a project if the only incentives to be provided to a potential
project are nondiscretionary tax credits or exemptions available to any
qualified taxpayer under existing law.
§ 30-311. Staff; cooperation from other state agencies.
Administrative staff support shall be provided by the staffs of the House Committee on Appropriations and the Senate Finance Committee. Additional assistance as needed shall be provided by the Auditor of Public Accounts, the Division of Legislative Services, the Virginia Economic Development Authority, or the Virginia Public Building Authority.
§ 30-312. Commission report to General Assembly.
The chairman of the Commission shall report annually by the first day of each General Assembly Regular Session on all endorsed incentive packages for which an offer has been made and publicly announced. Staff identified in § 30-311 shall assist the commission in preparing such report, which shall contain the following information: (i) the industrial sector of the MEI project or other economic development project, (ii) known competitor states, (iii) employment creation and capital investment expectations, (iv) anticipated average annual wage of the new jobs, (v) local and state returns on investment as prepared by the Virginia Economic Development Partnership Authority, (vi) expected time frame for repayment of the incentives to the Commonwealth in the form of direct and indirect general tax revenues, (vii) details of the proposed incentive package, including the breakdown of the components into various uses and an expected timeline for payments, and (viii) draft legislation or amendments to the Appropriation Act that propose financing for the endorsed incentive package through the Virginia Public Building Authority or any other proposed funding or financing mechanisms.
SENATE BILL NO. 1316
Be it enacted by the General Assembly of Virginia:
1. That §§ 30-309, 30-310, 30-311, and 30-312 of the Code of Virginia are amended and reenacted as follows:
§ 30-309. MEI Project Approval Commission; membership; terms; compensation and expenses; definition.
A. The MEI Project Approval Commission (the Commission) is established as an advisory commission in the legislative branch of state government. The purpose of the Commission shall be to review financing for individual incentive packages, including but not limited to packages offering tax incentives, for economic development projects (including but not limited to MEI projects), tourism projects, and film projects for which (i) one or more of the incentives in the incentive package is not authorized under current law or an amendment by the General Assembly is being sought to one or more currently existing incentives included as part of the incentive package or (ii) the aggregate amount of incentives to be provided by the Commonwealth in the incentive package including grants, tax incentives such as credits and exemptions related to economic development, tourism, or the film industry, general or nongeneral funds, proceeds from bonds, rights to lease property at below fair market value, or any other incentives from the Commonwealth is in excess of $10 million in value. However, no review shall be required for a project if the only incentives to be provided to a potential project are nondiscretionary tax credits or exemptions available to any qualified taxpayer under existing law.
B. The Commission shall consist of 10 11 members as follows: five
members of the House Committee on Appropriations or the House Committee on
Finance appointed by the chair of the House Committee on Appropriations and three four
members of the Senate Committee on Finance appointed by the chair of the Senate
Committee on Finance. In addition, the Secretaries of Finance and Commerce and
Trade shall serve as ex officio, nonvoting members of the Commission.
C. Members shall serve terms coincident with their terms of office. Vacancies for unexpired terms shall be filled in the same manner as the original appointments. Members may be reappointed for successive terms.
D. The members of the Commission shall elect a chairman and vice-chairman annually. A majority of the voting members of the Commission shall constitute a quorum. The meetings of the Commission shall be held at the call of the chairman or whenever the majority of the members so request.
E. Legislative members of the Commission shall receive such compensation as provided in § 30-19.12, and nonlegislative members shall receive such compensation as provided in § 2.2-2813.
F. As used in this chapter, "MEI project" means the same as that term is defined in § 2.2-2260.
§ 30-310. Review of incentive packages.
A. 1. The Commission shall review individual incentive
packages, including but not limited to packages offering tax incentives, for
economic development projects (including but not limited to MEI projects), tourism projects, or film projects
for which (i) one or more of the incentives in the incentive package is not
authorized under current law or an amendment by the General Assembly is being
sought to one or more currently existing incentives included as part of the
incentive package or (ii) the aggregate amount of incentives to be provided by
the Commonwealth in the incentive package including grants, tax incentives such
as credits and exemptions, general or nongeneral funds, proceeds from bonds,
rights to lease property at below fair market value, or any other incentives
from the Commonwealth is in excess of $10 million in value.
However, no review shall be required for a project if the only incentives to be
provided to a potential project are nondiscretionary tax credits or exemptions
available to any qualified taxpayer under existing law. The
Commission shall also review economic development projects in which a business
relocates or expands its operations in one or more Virginia localities and
simultaneously closes its operations or substantially reduces the number of its
employees in another Virginia locality. The Commission shall recommend approval
or denial of such packages and projects to the General Assembly. Factors that
shall be considered by the Commission in its review shall include, but not be limited to (i) (a)
return on investment, (ii) (b) the time frame for
repayment of incentives to the Commonwealth, (iii) (c) average wages of the jobs
created by the prospective MEI project or other economic development project, (iv) (d)
the amount of capital investment that is required, and (v) (e) the need for enhanced
employment opportunities in the prospective location of the prospective MEI
project or other economic development project.
2. a. Any time a proposed individual incentive package is to
be considered by the Commission, materials outlining (i) the value of the
proposed incentives, (ii) assumed return on investment, (iii) the time frame
for repayment of incentives to the Commonwealth, (iv) average wages of the jobs
created by the prospective MEI project or other
economic development, tourism, or film
project, (v) the amount of capital investment that is required, and (vi) the need for enhanced
employment opportunities in the prospective location of the prospective MEI project or other economic
development, tourism, or film project, (vii) the total amount of state
incentives received by the sponsor of the economic
development, tourism, or project in the
past, and (viii) a list of all other existing,
nondiscretionary tax credits
or exemptions for which the sponsor of the economic development, tourism, or
film project may qualify
shall be provided to the Commission members not less than 48
hours 10
business days prior to the scheduled Commission meeting. The Commission shall also be provided with an
aggregate list of all discretionary incentives currently committed
by the Commonwealth for the next 10 years,
including anticipated requests for appropriations to satisfy such commitments
during that time.
b. The timing of any request for an endorsement of a proposed individual incentive package should be scheduled so that the MEI Commission could, at its discretion, have up to seven days subsequent to the presentation of the incentive package prior to endorsing or rejecting such proposal.
B. An affirmative vote by three of the five members of the
Commission from the House of Delegates and two three of the three four
members of the Commission from the Senate shall be required to endorse any
incentive package, including but not limited to packages offering tax
incentives, for economic development projects (including but not limited to MEI
projects), tourism projects, and film projects
for which (i) one or more of the incentives in the incentive package is not
authorized under current law or an amendment by the General Assembly is being sought
to one or more currently existing incentives included as part of the incentive
package or (ii) the aggregate amount of incentives to be provided by the
Commonwealth in the incentive package including grants, tax incentives such as
credits and exemptions, general or nongeneral funds, proceeds from bonds,
rights to lease property at below fair market value, or any other incentives
from the Commonwealth is in excess of $10 million in value. Such vote shall
also be required to endorse any economic development project in which a
business relocates or expands its operations in one or more Virginia localities
and simultaneously closes its operations or substantially reduces the number of
its employees in another Virginia locality.
However, no vote shall be required for a project if the only incentives to be
provided to a potential project are nondiscretionary tax credits or exemptions
available to any qualified taxpayer under existing law.
§ 30-311. Staff; cooperation from other state agencies.
Administrative staff support shall be provided by the staffs of the House Committee on Appropriations and the Senate Finance Committee. Additional assistance as needed shall be provided by the Auditor of Public Accounts, the Division of Legislative Services, the Virginia Economic Development Authority, or the Virginia Public Building Authority.
§ 30-312. Commission report to General Assembly.
The chairman of the Commission shall report annually by the first day of each General Assembly Regular Session on all endorsed incentive packages for which an offer has been made and publicly announced. Staff identified in § 30-311 shall assist the commission in preparing such report, which shall contain the following information: (i) the industrial sector of the MEI project or other economic development project, (ii) known competitor states, (iii) employment creation and capital investment expectations, (iv) anticipated average annual wage of the new jobs, (v) local and state returns on investment as prepared by the Virginia Economic Development Partnership Authority, (vi) expected time frame for repayment of the incentives to the Commonwealth in the form of direct and indirect general tax revenues, (vii) details of the proposed incentive package, including the breakdown of the components into various uses and an expected timeline for payments, and (viii) draft legislation or amendments to the Appropriation Act that propose financing for the endorsed incentive package through the Virginia Public Building Authority or any other proposed funding or financing mechanisms.