                                 CODE OF VIRGINIA

AEROSPACE ENGINE MANUFACTURING PERFORMANCE GRANT PROGRAM; ELIGIBLE COUNTY (§
59.1-284.20)

A. As used in this section:
			&#8220;Affiliate&#8221; means with respect to any person, any other person
directly or indirectly controlling, controlled by, or under common control with
such person. For purposes of this definition, &#8220;control&#8221; (including
&#8220;controlled by&#8221; and &#8220;under common control with&#8221;) shall
mean the power, directly or indirectly, to direct or cause the direction of the
management and policies of such person whether through ownership or voting
securities or by contract or otherwise.
			&#8220;Capital investment&#8221; means an investment in real property,
tangible personal property, or both, within the Commonwealth that is
capitalized.
			&#8220;Eligible county&#8221; means Prince George County.
			&#8220;Grant&#8221; means the aerospace engine manufacturing performance
grant as described in this section.
			&#8220;Manufacture of aerospace engines&#8221; means (i) the manufacture or
assembly and test of aircraft engines and engine parts; (ii) the design or
development of aircraft engines and engine parts; or (iii) the manufacturing
activities of a private company described under 2007 index number 336412 of the
North American Industry Classification System.
			&#8220;Memorandum of understanding&#8221; means a performance agreement
entered into accordance with a memorandum of understanding entered into on
November 20, 2007, among a qualified manufacturer, the Commonwealth, and others
setting forth the requirements for capital investment and the creation of new
full-time jobs that will make the qualified manufacturer eligible for a grant
under this section.
			&#8220;New full-time job&#8221; means employment of an indefinite duration in
an eligible county, created as the direct result of new capital investment, for
which the average annual wage is at least equal to the prevailing average annual
wage in an eligible county and for which the standard fringe benefits are paid
by the qualified manufacturer, requiring a minimum of either (i) 35 hours of an
employee&#8217;s time per week for the entire normal year of such
manufacturer&#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,
and positions created when a job function is shifted from an existing location
in the Commonwealth shall not qualify as new full-time jobs under this section.
Other positions, which may or may not be of indefinite duration, including
supplemental employees of affiliates, subsidiaries, joint ventures, contractors,
or subcontractors may be considered new full-time jobs, if so designated in the
memorandum of understanding between such manufacturer, the Commonwealth, and
others as such memorandum of understanding was in effect on November 20, 2007.
			&#8220;Qualified manufacturer&#8221; means a manufacturer that (i) is
expected to make a capital investment of at least $500 million by June 30, 2023,
in an eligible county related to the manufacture of aerospace engines and (ii)
is expected to create at least 540 jobs in an eligible county for the
manufacture of aerospace engines or activities ancillary or supportive of such
manufacture.
			&#8220;Secretary&#8221; means the Secretary of Commerce and Trade or his
designee.

B. Any qualified manufacturer that, after July 1, 2008, first begins operations
in an eligible county shall be eligible to receive a grant each fiscal year
beginning with the Commonwealth&#8217;s fiscal year starting on July 1, 2013,
and ending with the Commonwealth&#8217;s fiscal year starting on July 1, 2022,
unless such time frame is extended in accordance with subsection E. The grants
under this section (i) shall be paid, subject to appropriation by the General
Assembly, from a fund entitled the Aerospace Engine Manufacturing Performance
Grant Fund, which Fund is hereby established on the books of the Comptroller,
(ii) shall not exceed $35 million in the aggregate, and (iii) shall be paid to
the qualified manufacturer during each fiscal year contingent upon the qualified
manufacturer meeting the requirements for the aggregate (a) number of new
full-time jobs created and the substantial retention of the same and (b) amount
of the capital investment made and substantially retained as set forth in the
memorandum of understanding.

C. If grants to be paid to qualified manufacturers under this section in a
fiscal year exceed the aggregate amount available in the Aerospace Engine
Manufacturing Performance Grant Fund for that year, each qualified
manufacturer&#8217;s grants for the year shall equal the amount of grants to
which the qualified manufacturer would otherwise be eligible multiplied by a
fraction. The numerator of the fraction shall equal the aggregate amount
available for payment from the Aerospace Engine Manufacturing Performance Grant
Fund for that fiscal year, and the denominator shall equal the aggregate dollar
amount of grants to which all qualified manufacturers otherwise would be
eligible for such fiscal year.
			The aggregate amount of the grants payable under this section shall be
subject to the following requirements and limitations:

   1. Grants shall be awarded after July 1, 2013, and before July 1, 2023, unless
   such time frame is extended in accordance with subsection E.

   2. The amount of the grant to be paid in each fiscal year shall be conditional
   upon the qualified manufacturer meeting the requirements for the (i) aggregate
   number of new full-time jobs created and the substantial retention of the same
   throughout the calendar year that immediately precedes the end of such fiscal
   year, and (ii) aggregate amount of the capital investment made and
   substantially retained as of the last day of the calendar year that
   immediately precedes the end of such fiscal year as set forth in the
   memorandum of understanding entered into on November 20, 2007. Grants shall be
   paid based upon such requirements as agreed to on November 20, 2007,
   regardless if such memorandum of understanding is later modified, amended,
   superseded, or otherwise changed.

   3. The aggregate amount of grants that may be awarded in a particular fiscal
   year shall not exceed the following:
   				a. $5.5 million for the Commonwealth&#8217;s fiscal year beginning July 1,
   2013;
   				b. $11 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2014;
   				c. $14 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2015;
   				d. $17 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2016;
   				e. $20 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2017;
   				f. $23 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2018;
   				g. $26 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2019;
   				h. $29 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2020;
   				i. $32 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2021; and
   				j. $35 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2022.

   4. Grants provided by this section shall not exceed $35 million in the
   aggregate.

D. Any qualified manufacturer applying for a grant under this section shall
provide evidence, satisfactory to the Secretary, of (i) the aggregate number of
new full-time jobs created and the substantial retention of the same throughout
the calendar year that immediately precedes the end of the fiscal year in which
the grant is to be paid, and (ii) the aggregate amount of the capital investment
made and substantially retained as of the last day of the calendar year that
immediately precedes the end of the fiscal year in which the grant is to be
paid. The application and evidence shall be filed with the Secretary in person
or by mail no later than April 1 each year following the calendar year in which
the qualified manufacturer meets such aggregate new full-time job requirements
and aggregate capital investment. Failure to meet the filing deadline shall
result in a deferral of a scheduled grant payment set forth in subsection C. For
filings by mail, the postmark cancellation shall govern the date of the filing
determination.

E. The memorandum of understanding may provide that if a grant payment has been
deferred for any reason, including the initial failure to meet the aggregate
capital investment and the aggregate new full-time job requirements set forth in
the memorandum of understanding or the occurrence of any substantial reduction
in such new full-time job requirements or capital investment requirements after
such requirements have been met but before the grant payment has been made,
payment in a subsequent fiscal year for which such requirements have been met
for the immediately preceding calendar year shall include both the deferred
payment and the scheduled grant payment as provided in subsection C.

F. Within 30 days after the filing deadline in subsection D, the Secretary shall
certify to (i) the Comptroller and (ii) each qualified manufacturer the amount
of the grant to which such qualified manufacturer is entitled under this section
for payment in the current fiscal year. Payment of such grant shall be made by
check issued by the Treasurer of Virginia on warrant of the Comptroller by June
30 of such fiscal year.

G. As a condition of receipt of a grant, a qualified manufacturer shall make
available to the Secretary or his designee for inspection upon his request all
relevant and applicable documents to determine whether the qualified
manufacturer has met the requirements for the receipt of grants as set forth in
this section and subject to the memorandum of understanding. The Comptroller
shall not draw any warrants to issue checks for the grant program under this
section without a specific appropriation for the same. All such documents
appropriately identified by the qualified manufacturer shall be considered
confidential and proprietary.

HISTORY: 2008, cc. 256, 630.