                                 CODE OF VIRGINIA

COMMONWEALTH&#8217;S DEVELOPMENT OPPORTUNITY FUND (§ 2.2-115)

A. As used in this section, unless the context requires otherwise:
			&#8220;New job&#8221; means employment of an indefinite duration, created as
the direct result of the private investment, for which the firm pays the wages
and standard fringe benefits for its employee, requiring a minimum of either (i)
35 hours of the employee&#8217;s time a week for the entire normal year of the
firm&#8217;s operations, which &#8220;normal year&#8221; must consist of at
least 48 weeks or (ii) 1,680 hours per year.
			Seasonal or temporary positions, positions created when a job function is
shifted from an existing location in the Commonwealth to the location of the
economic development project, positions with suppliers, and multiplier or
spin-off jobs shall not qualify as new jobs. The term &#8220;new job&#8221;
shall include positions with contractors provided that all requirements included
within the definition of the term are met.
			&#8220;New teleworking job&#8221; means a new job that is held by a Virginia
resident, for which the majority of the work is performed remotely, and that
pays at least 1.2 times the Virginia minimum wage, as provided by the Virginia
Minimum Wage Act (&#xA7; 40.1-28.8 et seq.).
			&#8220;Prevailing average wage&#8221; means that amount determined by the
Virginia Employment Commission to be the average wage paid workers in the city
or county of the Commonwealth where the economic development project is located.
The prevailing average wage shall be determined without regard to any fringe
benefits.
			&#8220;Private investment&#8221; means the private investment required under
this section.

B. There is created the Commonwealth&#8217;s Development Opportunity Fund (the
Fund) to be used by the Governor to attract economic development prospects and
secure the expansion of existing industry in the Commonwealth. The Fund shall
consist of any funds appropriated to it by the general appropriation act and
revenue from any other source, public or private. The Fund shall be established
on the books of the Comptroller, and any funds remaining in the Fund at the end
of a biennium shall not revert to the general fund but shall remain in the Fund.
Interest earned on the Fund shall be credited to the Fund. The Governor shall
report to the Chairmen of the House Committees on Appropriations and Finance and
the Senate Committee on Finance and Appropriations as funds are awarded in
accordance with this section.

C. Funds shall be awarded from the Fund by the Governor as grants or loans to
political subdivisions. The criteria for making such grants or loans shall
include (i) job creation, (ii) private capital investment, and (iii) anticipated
additional state tax revenue expected to accrue to the state and affected
localities as a result of the capital investment and jobs created. Loans shall
be approved by the Governor and made in accordance with guidelines established
by the Virginia Economic Development Partnership and approved by the
Comptroller. Loans shall be interest-free unless otherwise determined by the
Governor and shall be repaid to the Fund. The Governor may establish the
interest rate to be charged; otherwise, any interest charged shall be at market
rates as determined by the State Treasurer and shall be indicative of the
duration of the loan. The Virginia Economic Development Partnership shall be
responsible for monitoring repayment of such loans and reporting the receivables
to the Comptroller as required.
			Beginning with the five fiscal years from fiscal year 2006-2007 through
fiscal year 2010-2011, and for every five fiscal years&#8217; period thereafter,
in general, no less than one-third of the moneys appropriated to the Fund in
every such five-year period shall be awarded to counties and cities having an
annual average unemployment rate that is greater than the final statewide
average unemployment rate for the calendar year that immediately precedes the
calendar year of the award. However, if such one-third requirement will not be
met because economic development prospects in such counties and cities are
unable to fulfill the applicable minimum private investment and new jobs
requirements set forth in this section, then any funds remaining in the Fund at
the end of the five-year period that would have otherwise been awarded to such
counties and cities shall be made available for awards in the next five fiscal
years&#8217; period.

D. Funds may be used for public and private utility extension or capacity
development on and off site; public and private installation, extension, or
capacity development of high-speed or broadband Internet access, whether on or
off site; road, rail, or other transportation access costs beyond the funding
capability of existing programs; site acquisition; grading, drainage, paving,
and any other activity required to prepare a site for construction; construction
or build-out of publicly or privately owned buildings; training; or grants or
loans to an industrial development authority, housing and redevelopment
authority, or other political subdivision for purposes directly relating to any
of the foregoing. However, in no case shall funds from the Fund be used,
directly or indirectly, to pay or guarantee the payment for any rental, lease,
license, or other contractual right to the use of any property.
			It shall be the policy of the Commonwealth that moneys in the Fund shall not
be used for 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, unless the procedures set forth in &#xA7; 30-310 are
followed. The Secretary of Commerce and Trade shall enforce this policy and for
any exception thereto shall, pursuant to &#xA7; 30-310, submit such projects to
the MEI Project Approval Commission established pursuant to &#xA7; 30-309.

E. 1. a. Except as provided in this subdivision, no grant or loan shall be
awarded from the Fund unless the project involves a minimum private investment
of $5 million and creates at least 50 new jobs for which the average wage,
excluding fringe benefits, is no less than the prevailing average wage. For
projects, including but not limited to projects involving emerging technologies,
for which the average wage of the new jobs created, excluding fringe benefits,
is at least twice the prevailing average wage for that locality or region, the
Governor shall have the discretion to require no less than one-half the number
of new jobs as set forth for that locality in this subdivision.
			b. Notwithstanding the provisions of subdivision a, a grant or loan may be
awarded from the Fund if the project involves a minimum private investment of
$100 million and creates at least 25 new jobs for which the average wage,
excluding fringe benefits, is no less than the prevailing average wage.

   2. Notwithstanding the provisions of subdivision 1 a, in localities (i) with
   an annual unemployment rate for the most recent calendar year for which such
   data is available that is greater than the final statewide average
   unemployment rate for that calendar year or (ii) with a poverty rate for the
   most recent calendar year for which such data is available that exceeds the
   statewide average poverty rate for that year, a grant or loan may be awarded
   from the Fund pursuant to subdivision 1 a if the project involves a minimum
   private investment of $2.5 million and creates at least 25 new jobs for which
   the average wage, excluding fringe benefits, is no less than 85 percent of the
   prevailing average wage.

   3. Notwithstanding the provisions of subdivisions 1 a and 2, in localities (i)
   with an annual unemployment rate for the most recent calendar year for which
   such data is available that is greater than the final statewide average
   unemployment rate for that calendar year and (ii) with a poverty rate for the
   most recent calendar year for which such data is available that exceeds the
   statewide average poverty rate for that year, a grant or loan may be awarded
   from the Fund pursuant to such subdivisions if the project involves a minimum
   private investment of $1.5 million and creates at least 15 new jobs for which
   the average wage, excluding fringe benefits, is no less than 85 percent of the
   prevailing average wage.

   4. For projects that are eligible under subdivision 2 or 3, the average wage
   of the new jobs, excluding fringe benefits, shall be no less than 85 percent
   of the prevailing average wage. In addition, for projects in such localities,
   the Governor may award a grant or loan for a project paying less than 85
   percent of the prevailing average wage but still providing customary employee
   benefits, only after the Secretary of Commerce and Trade has made a written
   finding that the economic circumstances in the area are sufficiently
   distressed (i.e., high unemployment or underemployment and negative economic
   forecasts) that assistance to the locality to attract the project is
   nonetheless justified. However, the minimum private investment and number of
   new jobs required to be created as set forth in this subsection shall still be
   a condition of eligibility for an award from the Fund. Such written finding
   shall promptly be provided to the chairs of the Senate Committee on Finance
   and Appropriations and the House Committee on Appropriations.

   5. A business beneficiary may count new teleworking jobs toward the minimum
   number of new jobs required under subdivision 1, 2, or 3, if so permitted in
   the contract required by subdivision F 2.

   6. The minimum private investment required under subdivision 1, 2, or 3 may be
   reduced or waived if at least 75 percent, measured against the minimum number
   of new jobs required, of jobs created by the business beneficiary are new
   teleworking jobs, if so permitted in the contract required by subdivision F 2.

F. 1. The Virginia Economic Development Partnership shall assist the Governor in
developing objective guidelines and criteria that shall be used in awarding
grants or making loans from the Fund. The guidelines may require that as a
condition of receiving any grant or loan incentive that is based on employment
goals, a recipient company must provide copies of employer quarterly payroll
reports that have been provided to the Virginia Employment Commission to verify
the employment status of any position included in the employment goal. The
guidelines may include a requirement for the affected locality or localities to
provide matching funds which may be cash or in-kind, at the discretion of the
Governor; however, if the minimum private investment is reduced or waived
pursuant to subdivision E 6, the Governor may provide full or partial relief
from such matching requirement. The guidelines and criteria shall include
provisions for geographic diversity and a cap on the amount of funds to be
provided to any individual project. At the discretion of the Governor, this cap
may be waived for qualifying projects of regional or statewide interest. In
developing the guidelines and criteria, the Virginia Economic Development
Partnership shall use the measure for Fiscal Stress published by the Commission
on Local Government of the Department of Housing and Community Development for
the locality in which the project is located or will be located as one method of
determining the amount of assistance a locality shall receive from the Fund.

   2. a. Notwithstanding any provision in this section or in the guidelines, each
   political subdivision that receives a grant or loan from the Fund shall enter
   into a contract with the Commonwealth, through the Virginia Economic
   Development Partnership Authority as its agent, and each business beneficiary
   of funds from the Fund. A person or entity shall be a business beneficiary of
   funds from the Fund if grant or loan moneys awarded from the Fund by the
   Governor are paid to a political subdivision and (i) subsequently distributed
   by the political subdivision to the person or entity or (ii) used by the
   political subdivision for the benefit of the person or entity but never
   distributed to the person or entity.
   				b. The contract between the political subdivision, the Commonwealth, and
   the business beneficiary shall provide in detail (i) the fair market value of
   all funds that the Commonwealth has committed to provide, (ii) the fair market
   value of all matching funds (or in-kind match) that the political subdivision
   has agreed to provide, (iii) how funds committed by the Commonwealth
   (including but not limited to funds from the Fund committed by the Governor)
   and funds that the political subdivision has agreed to provide are to be
   spent, (iv) the minimum private investment to be made and the number of new
   jobs to be created agreed to by the business beneficiary, (v) the average wage
   (excluding fringe benefits) agreed to be paid in the new jobs, (vi) the
   prevailing average wage, and (vii) the formula, means, or processes agreed to
   be used for measuring compliance with the minimum private investment and new
   jobs requirements, including consideration of any layoffs instituted by the
   business beneficiary over the course of the period covered by the contract.
   				The contract shall state the date by which the agreed upon private
   investment and new job requirements shall be met by the business beneficiary
   of funds from the Fund and may provide for the political subdivision and the
   Commonwealth to grant up to a 15-month extension of such date if deemed
   appropriate by the political subdivision and the Commonwealth subsequent to
   the execution of the contract. Any extension of such date granted by the
   political subdivision shall be in writing and promptly delivered to the
   business beneficiary, and the political subdivision shall simultaneously
   provide a copy of the extension to the Virginia Economic Development
   Partnership.
   				The contract shall provide that if the private investment and new job
   contractual requirements are not met by the expiration of the date stipulated
   in the contract, including any extension granted by the political subdivision
   and the Commonwealth, the business beneficiary shall be liable to the
   political subdivision and the Commonwealth for repayment of a portion of the
   funds provided by the political subdivision under the contract and liable to
   the Commonwealth for repayment of a portion of the funds provided from the
   Commonwealth&#8217;s Development Opportunity Fund. The contract shall include
   a formula for purposes of determining the portion of such funds to be repaid.
   The formula shall, in part, be based upon the fair market value of all funds
   that have been provided by the Commonwealth and the political subdivision and
   the extent to which the business beneficiary has met the private investment
   and new job contractual requirements. All such funds repaid to the political
   subdivision or the Commonwealth that relate to the award from the
   Commonwealth&#8217;s Development Opportunity Fund shall promptly be remitted
   to the State Treasurer. Upon receipt by the State Treasurer of such payment,
   the Comptroller shall deposit such repaid funds into the Commonwealth&#8217;s
   Development Opportunity Fund.
   				c. The contract shall be amended to reflect changes in the funds committed
   by the Commonwealth or agreed to be provided by the political subdivision.
   				d. Notwithstanding any provision in this section or in the guidelines,
   whenever layoffs instituted by a business beneficiary over the course of the
   period covered by a contract cause the net total number of the new jobs
   created to be fewer than the number agreed to, then the business beneficiary
   shall return the portion of any funds received pursuant to the repayment
   formula established by the contract.

   3. Notwithstanding any provision in this section or in the guidelines, prior
   to executing any such contract with a business beneficiary, the political
   subdivision shall provide a copy of the proposed contract to the Attorney
   General. The Attorney General shall review the proposed contract (i) for
   enforceability as to its provisions and (ii) to ensure that it is in
   appropriate legal form. The Attorney General shall provide any written
   suggestions to the political subdivision within seven days of his receipt of
   the copy of the contract. The Attorney General&#8217;s suggestions shall be
   limited to the enforceability of the contract&#8217;s provisions and the legal
   form of the contract.

   4. Notwithstanding any provision in this section or in the guidelines, a
   political subdivision shall not expend, distribute, pledge, use as security,
   or otherwise use any award from the Fund unless and until such contract as
   described herein is executed with the business beneficiary.

G. Within the 30 days immediately following each quarter, the Virginia Economic
Development Partnership shall provide a report to the Chairmen of the House
Committees on Appropriations and Finance and the Senate Committee on Finance and
Appropriations which shall include, but is not limited to, the following
information regarding grants and loans awarded from the Fund during the
immediately preceding six-month period for economic development projects: the
name of the company that is the business beneficiary of the grant or loan and
the type of business in which it engages; the location (county, city, or town)
of the project; the amount of the grant or loan committed from the Fund and the
amount of all other funds committed by the Commonwealth from other sources and
the purpose for which such grants, loans, or other funds will be used; the
amount of all moneys or funds agreed to be provided by political subdivisions
and the purposes for which they will be used; the number of new jobs agreed to
be created by the business beneficiary; the amount of investment in the project
agreed to be made by the business beneficiary; the timetable for the completion
of the project and new jobs created; the prevailing average wage; and the
average wage (excluding fringe benefits) agreed to be paid in the new jobs.

H. The Governor shall provide grants and commitments from the Fund in an amount
not to exceed the dollar amount contained in the Fund. If the Governor commits
funds for years beyond the fiscal years covered under the existing appropriation
act, the State Treasurer shall set aside and reserve the funds the Governor has
committed, and the funds shall remain in the Fund for those future fiscal years.
No grant or loan shall be payable in the years beyond the existing appropriation
act unless the funds are currently available in the Fund.

I. On a quarterly basis, the Virginia Economic Development Partnership shall
notify the Governor, his campaign committee, and his political action committee
of awards from the Fund made in the prior quarter. Within 18 months of the date
of each award from the Fund, the Governor, his campaign committee, and his
political action committee shall submit to the Virginia Conflict of Interest and
Ethics Advisory Council established in &#xA7; 30-355 a report listing any
contribution, gift, or other item with a value greater than $100 provided by the
business beneficiary of such award to the Governor, his campaign committee, or
his political action committee, respectively, during (i) the period in which the
business beneficiary&#8217;s application for such award was pending and (ii) the
one-year period immediately after any such award was made.

J. 1. Notwithstanding any provision of this section, the Governor may give
grants or loans to any eligible company, as defined in § 58.1-405.1, provided
that such company shall be required to distribute at least half of such grant or
loan to its employees in jobs located in a qualified locality, as defined in §
58.1-405.1. If the Governor gives a grant or loan pursuant to this subsection,
it shall not be required to meet other provisions in this section, including
provisions, restrictions, and procedural requirements related to job creation,
investment, local matching funds, or contracts with business beneficiaries.

   2. The grant or loan shall not exceed $2,000 per new job, as defined in &#xA7;
   58.1-405.1; however, the Governor may give a new grant or loan each year to
   the same eligible company.

   3. An eligible company&#8217;s eligibility for or receipt of a grant or loan
   pursuant to this subsection shall not prevent it from receiving any other
   grant or loan for which it may be qualified pursuant to this section.

HISTORY: 1996, cc. 590, 598, 859, § 2.1-51.6:5; 1999, cc. 787, 816; 2001, c.
844; 2006, cc. 251, 890; 2007, c. 654; 2010, cc. 78, 470, 580, 611, 735, 768;
2011, cc. 539, 574, 587; 2013, c. 547; 2015, cc. 763, 777; 2016, c. 641; 2017,
c. 663; 2018, cc. 801, 802, 829; 2020, c. 591; 2021, Sp. Sess. I, c. 386.