                                 CODE OF VIRGINIA

DIVISION OF INCENTIVES (§ 2.2-2237.3)

A. Within the Authority shall be created a Division of Incentives that shall be
responsible for reviewing, vetting, tracking, and coordinating economic
development incentives administered by or through the Authority and for aligning
those incentives with economic development incentives offered by other entities
in the Commonwealth.

B. No project that includes an offer of economic development incentives by the
Commonwealth, including grants or loans from the Commonwealth&#8217;s
Development Opportunity Fund, shall be approved by the Governor until (i) the
Division of Incentives has undertaken appropriate due diligence regarding the
proposed project and the Secretary of Commerce and Trade has certified that the
proposed incentives to be offered are appropriate based on the investment and
job creation anticipated to be generated by the project and (ii) when required
by &#xA7; 30-310, the MEI Project Approval Commission has reviewed the proposed
incentives.

C. Any contract or memorandum of understanding for the award of economic
development incentives by the Commonwealth shall set forth the investment and
job creation requirements for the payment of the incentive and shall include a
stipulation that the business beneficiary of the incentives shall be liable for
the repayment of all or a portion of the incentives to the Commonwealth if the
business beneficiary fails to make the required investments or create the
required number of jobs. For purposes of this section, an incentive awarded by
the Commonwealth shall include an incentive awarded from a fund operated by the
Commonwealth, including the Commonwealth&#8217;s Development Opportunity Fund.
If it is determined that a business beneficiary is liable for the repayment of
all or a portion of an economic development incentive awarded by the
Commonwealth, the Board may refer the matter to the Office of the Attorney
General pursuant to &#xA7; 2.2-518. Prior to the referral to the Office of the
Attorney General, the Board shall direct any political subdivision that is a
party to the relevant contract or memorandum of understanding to assign its
rights to the Commonwealth arising under such contract or memorandum of
understanding in which the business beneficiary is liable to repay all or a
portion of an economic development incentive awarded by the Commonwealth. In any
such matter referred to the Office of the Attorney General, a business
beneficiary liable to repay all or a portion of an economic development
incentive awarded by the Commonwealth shall also be liable to pay interest,
administrative charges, attorney fees, and other applicable fees.

D. Notwithstanding any other provision of law, approval of the Board shall be
required to grant an extension for an approved project to meet the investment
and job creation requirements set forth in the contract or memorandum of
understanding. Notwithstanding any other provision of law, approval of both the
Board and the MEI Project Approval Commission shall be required to grant any
additional extensions.

E. The Division of Incentives shall provide semiannual updates to the Board of
the status and progress of investment and job creation requirements for all
projects for which economic development incentives have been awarded, until such
time as the investment and job creation requirements are met or the incentives
are repaid to the Commonwealth. Updates shall be provided more frequently upon
the request of the Board, or if deemed necessary by the Division of Incentives.

F. The Board shall establish a subcommittee, consisting of ex officio members of
the Board authorized pursuant to &#xA7;&#xA7; 2.2-2040 and 60.2-114 and federal
law to receive and review employment information received from the Virginia
Employment Commission and the Department of Workforce Development and
Advancement, in order to assist the Division of Incentives with the verification
of employment and wage claims of those businesses that have received incentive
awards. Such information shall be confidential and shall not be (i) redisclosed
to other members of the Board or to the public in accordance with the provisions
of subsection B of &#xA7; 2.2-2040 and subdivision C 2 of &#xA7; 60.2-114 or
(ii) subject to disclosure under the Virginia Freedom of Information Act (&#xA7;
2.2-3700 et seq.).

G. For purposes of this section, the award of economic development incentives by
the Commonwealth shall include an award of funds from the Commonwealth&#8217;s
Development Opportunity Fund, regardless of whether the contract or memorandum
of understanding for the disbursement of funds is with the Commonwealth or a
political subdivision thereof and the business beneficiary.

HISTORY: 2017, cc. 804, 824; 2018, c. 829; 2020, c. 591; 2023, cc. 624, 625.