                                 CODE OF VIRGINIA

VOLUNTARY ECONOMIC GROWTH-SHARING AGREEMENTS (§ 15.2-1301)

A. Any county, city or town, or combination thereof, may enter voluntarily into
an agreement with any other county, city or town, or combination thereof,
whereby the locality may agree for any purpose otherwise permitted, including
the provision on a multi-jurisdictional basis of one or more public services or
facilities or any type of economic development project, to enter into binding
fiscal arrangements for fixed time periods, to exceed one year, to share in the
benefits of the economic growth of their localities. However, if any such
agreement contains any provision addressing any issue provided for in Chapter 32
(&#xA7; 15.2-3200 et seq.), 33 (&#xA7; 15.2-3300 et seq.), 36 (&#xA7; 15.2-3600
et seq.), 38 (&#xA7; 15.2-3800 et seq.), 39 (&#xA7; 15.2-3900 et seq.), or 41
(&#xA7; 15.2-4100 et seq.), the agreement shall be subject to the review and
implementation process established by Chapter 34 (&#xA7; 15.2-3400 et seq.). All
such agreements, including those that address any issue provided for in Chapter
32, 33, 36, 38, 39, or 41, shall require, at least annually, a report from each
locality that is a recipient of funds pursuant to the agreement to each of the
other governing bodies of the participating localities that includes (i) the
amount of money transferred among the localities pursuant to the agreement and
(ii) the uses of such funds by the localities. The parties to any such agreement
that has been in effect for at least 10 years as of July 1, 2018, and pursuant
to which annual payments exceed $5 million, shall (a) comply with the reporting
requirements of this subsection, notwithstanding whether such requirements are
contained in the existing agreement and (b) convene an annual meeting to discuss
anticipated future plans for economic growth in the localities.

B. The terms and conditions of the revenue, tax base or economic growth-sharing
agreement as provided in subsection A shall be determined by the affected
localities and shall be approved by the governing body of each locality
participating in the agreement, provided the governing body of each such
locality first holds a public hearing, which shall be advertised twice, with the
first notice appearing no more than 28 days before and the second notice
appearing no less than seven days before the hearing, in a newspaper of general
circulation in the locality. However, the public hearing shall not take place
until the Commission on Local Government has issued its findings in accordance
with subsection D. For purposes of this section, &#8220;revenue, tax base, and
economic growth-sharing agreements&#8221; means any agreement authorized by
subsection A which obligates any locality to pay another locality all or any
portion of designated taxes or other revenues received by that political
subdivision, but shall not include any interlocal service agreement.

C. Any revenue, tax base or economic growth-sharing agreement entered into under
the provisions of this section that creates a debt pursuant to Article VII,
&#xA7; 10 (b) of the Constitution of Virginia, shall require the board of
supervisors to hold a special election on the question as provided in &#xA7;
15.2-3401.

D. Revenue, tax base, and economic growth-sharing agreements drafted under the
provisions of this chapter shall be submitted to the Commission on Local
Government for review as provided in subdivision 4 of &#xA7; 15.2-2903. However,
no such review shall be required for two or more localities entering into an
economic growth-sharing agreement pursuant to this section in order to
facilitate the reception of grants for qualified companies in such locality
pursuant to the Port of Virginia Economic and Infrastructure Development Grant
Fund and Program established pursuant to &#xA7; 62.1-132.3:2.

HISTORY: 1996, cc. 713, 725, 743, § 15.1-21.2; 1997, c. 587; 2013, cc. 578,
612; 2014, c. 470; 2018, c. 728; 2023, cc. 506, 507; 2024, cc. 225, 242.