Bill Text: VA SB587 | 2020 | Regular Session | Chaptered
Bill Title: MEI Project Approval Commission; changes to membership and operation.
Spectrum: Bipartisan Bill
Status: (Passed) 2020-04-07 - Governor: Acts of Assembly Chapter text (CHAP0830) [SB587 Detail]
Download: Virginia-2020-SB587-Chaptered.html
Be it enacted by the General Assembly of Virginia:
1. That §§30-309 through 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, film, and episodic television projects (including but not limited to MEI 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 or the film or television 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 14 members
as follows: five seven 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 five 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, film, and episodic television projects (including
but not limited to MEI 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, film, or episodic television 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, film, or
episodic television project,; (vii) the total amount of state
incentives received by the sponsor of the economic development, film, or
episodic television 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, film, or episodic television project may qualify
shall be provided to the Commission members staff of the House
Committee on Appropriations and Senate Committee on Finance not less than
48 hours five business days prior to the scheduled Commission
meeting. Staff 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 four of the five
seven members of the Commission from the House of Delegates and two
three of the three five 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, film,
and episodic television projects (including but not limited to MEI 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.
