                                 CODE OF VIRGINIA

PROPOSALS TO THE STATE BOARD OF SOCIAL SERVICES; REGULATIONS; TAX CREDITS
AUTHORIZED (§ 58.1-439.20)

A. Any neighborhood organization may submit a proposal, other than education
proposals which shall be applied for and allocated pursuant to the provisions of
&#xA7; 58.1-439.20:1, to the Commissioner of Social Services requesting an
allocation of tax credits for use by business firms making donations to the
neighborhood organization.
			The proposal shall set forth the program to be conducted by the neighborhood
organization, the low-income persons to be assisted, the estimated amount to be
donated to the program, and the plans for implementing the program.

B. 1. The State Board of Social Services is hereby authorized to adopt
regulations for the approval or disapproval of such proposals by neighborhood
organizations and for determining the value of the donations.

   2. In order to be eligible to receive an allocation of tax credits pursuant to
   this article, a neighborhood organization shall have been in existence for at
   least one year. As a prerequisite for approval, neighborhood organizations
   with total revenues of (i) more than $100,000 shall provide to the
   Commissioner of Social Services an audit or review for the most recent year or
   (ii) $100,000 or less shall provide to the Commissioner of Social Services a
   compilation for the most recent year. Such audit, review, or compilation shall
   be performed by an independent certified public accountant. For purposes of
   this subdivision, &#8220;total revenues&#8221; means all revenues, including
   the value of all donations, for the organization&#8217;s most recent year. No
   proposal for an allocation of tax credits shall be untimely filed solely
   because such audit, review, or compilation was not submitted by the
   neighborhood organization by the proposal filing deadline, provided that the
   audit, review, or compilation is submitted to the Commissioner of Social
   Services within the 30-day period immediately following such deadline.

   3. In order to be eligible to receive an allocation of credits pursuant to
   this article, at least 50 percent of the persons served by the neighborhood
   organization shall be low-income persons, and at least 50 percent of the
   neighborhood organization&#8217;s revenues shall be used to provide services
   to low-income persons.

   4. In order for a proposal to be approved, an applicant neighborhood
   organization and any of its affiliates shall meet the requirements of this
   section and the application regulations.
   				However, beginning with tax credit allocations for fiscal year 2016-2017
   and thereafter, such requirement for a proposal submitted by a neighborhood
   organization to the Commissioner of Social Services shall not apply in
   determining the eligibility of the neighborhood organization submitting a
   proposal, provided that (i) the neighborhood organization otherwise meets all
   statutory requirements and regulations, (ii) the neighborhood organization
   received a fiscal year 2013-2014 allocation of neighborhood assistance tax
   credits, and (iii) no affiliate of the neighborhood organization submits a
   proposal for or receives an allocation of tax credits pursuant to this article
   for the program year for which the neighborhood organization has submitted its
   proposal.

   5. The regulations shall provide for the equitable allocation of the available
   amount of tax credits among the approved proposals submitted by neighborhood
   organizations. In allocating credits, the Commissioner of Social Services or
   the Superintendent of Public Instruction shall consider the past performance
   of neighborhood organizations that have received allocations of credits,
   including review of performance metrics, success in reaching targeted goals,
   or other measures of accountability that may be established by regulations or
   guidelines.

   6. The regulations or guidelines shall provide that in any year in which the
   available amount of tax credits exceeds the previous year&#8217;s available
   amount, at least 10 percent of the excess amount shall be allocated to
   qualified programs proposed by neighborhood organizations that did not receive
   any allocations in the preceding year. If the amount of tax credits requested
   by such neighborhood organizations is less than 10 percent of the excess
   amount, the unallocated portion of such 10 percent shall be allocated to
   qualified programs proposed by other neighborhood organizations.

C. 1. If the Commissioner of Social Services approves a proposal submitted by a
neighborhood organization, the organization shall make the allocated tax credit
amounts available to business firms making donations to the approved program. A
neighborhood organization shall not assign or transfer an allocation of tax
credits to another neighborhood organization without the approval of the
Commissioner of Social Services.

   2. Notwithstanding any other provision of law, no more than an aggregate of
   $0.5 million in tax credits shall be approved in a fiscal year to a
   neighborhood organization or to a grouping of neighborhood organization
   affiliates for all other proposals combined.

   3. If, after the initial allocation of credits to approved proposals, the
   State Department of Social Services has a balance of tax credits remaining for
   the fiscal year that can be used or allocated by a neighborhood organization
   for a proposal that had been approved for tax credits during the initial
   allocation, then the Commissioner of Social Services shall reallocate the
   remaining balance of tax credits to such previously approved proposals to the
   extent that a neighborhood organization can use or allocate additional tax
   credits for the previously approved proposal. The $0.5 million annual
   limitations for tax credits approved to a grouping of neighborhood
   organization affiliates shall be inapplicable for such reallocation of any
   balance of tax credits. The balance of tax credits remaining for reallocation
   shall include the amount of any tax credits that have been granted for a
   proposal approved during the initial allocation but for which the Commissioner
   of Social Services received notice from the neighborhood organization that it
   will not be able to use or allocate such amount for the approved proposal.

D. The total amount of tax credits granted for programs approved by the
Commissioner of Social Services under this article for each fiscal year shall
not exceed $8 million for fiscal year 2015-2016 and each fiscal year thereafter.
			The Commissioner of Social Services shall work cooperatively with the
Superintendent of Public Instruction for purposes of ensuring that neighborhood
organization proposals are submitted to the proper state agency pursuant to this
section and &#xA7; 58.1-439.20:1. The Commissioner of Social Services may
request the assistance of the Department of Taxation for purposes of determining
whether or not anticipated donations for which tax credits are requested by a
neighborhood organization likely qualify as a charitable donation under federal
tax laws and regulations.

E. Actions of the State Department of Social Services, or the Commissioner of
the same, relating to the review of neighborhood organization proposals and the
allocation of tax credits to proposals shall be exempt from the provisions of
the Administrative Process Act (&#xA7; 2.2-4000 et seq.). Decisions of the State
Department of Social Services, or the Commissioner of the same, shall be final
and not subject to review or appeal.

HISTORY: 2008, c. 585; 2009, cc. 10, 502, 851; 2011, c. 317; 2012, cc. 731, 837,
842; 2013, cc. 713, 716, 802; 2014, cc. 47, 189, 416, 712; 2016, c. 426; 2017,
cc. 147, 723, 724.