                                 CODE OF VIRGINIA

AEROSPACE ENGINE MANUFACTURING SUPPLIER CLUSTER BONUS PERFORMANCE GRANT PROGRAM;
ELIGIBLE COUNTY (§ 59.1-284.21)

A. As used in this section:
			&#8220;Affiliate&#8221; means the same as such term is defined in &#xA7;
59.1-284.20.
			&#8220;Capital investment&#8221; means the same as such term is defined in
&#xA7; 59.1-284.20.
			&#8220;Eligible county&#8221; means Prince George County.
			&#8220;Grant&#8221; means the aerospace engine manufacturing supplier cluster
bonus performance grant as described in this section.
			&#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 by qualified suppliers 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
the Commonwealth, 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 the applicable locality and for which the standard fringe benefits are
paid by the qualified supplier, requiring a minimum of either (i) 35 hours of an
employee&#8217;s time per week for the entire normal year of such
supplier&#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.
			&#8220;Qualified manufacturer&#8221; means the same as such term is defined
in &#xA7; 59.1-284.20.
			&#8220;Qualified supplier&#8221; means a manufacturer, assembler,
distributor, or service provider on a qualified supplier list that (i) first
begins doing business at a location within the Commonwealth or (ii) expands its
business at a location within the Commonwealth subsequent to a qualified
manufacturer commencing construction of a manufacturing, assembly, and testing
facility in an eligible county. A &#8220;qualified supplier&#8221; shall deliver
or provide ancillary parts, tools, or other components used by the qualified
manufacturer within the Commonwealth or provide ancillary services within the
Commonwealth for such qualified manufacturer. A qualified supplier shall not be
an affiliate of a qualified manufacturer.
			&#8220;Qualified supplier cluster&#8221; means the aggregate of qualified
suppliers.
			&#8220;Qualified supplier list&#8221; means a list of prospective qualified
suppliers submitted by a qualified manufacturer to the Secretary no less
frequently than annually.
			&#8220;Secretary&#8221; means the Secretary of Commerce and Trade or his
designee.

B. 1. Any qualified manufacturer who attracted a qualified supplier on its
qualified supplier list (i) first beginning to do business at a location within
the Commonwealth subsequent to the qualified manufacturer commencing
construction in an eligible county or (ii) expanding its business at a location
within the Commonwealth subsequent to the qualified manufacturer commencing
construction in an eligible county shall be eligible for a grant under this
section. However, no grant shall be paid to the qualified manufacturer unless
the qualified supplier cluster (all of which qualified suppliers are on the
qualified supplier list) subsequent to the qualified manufacturer commencing
construction in an eligible county makes the aggregate capital investment and
meets the new full-time job requirements as set forth in this section. The
grants under this section (a) shall be paid, subject to appropriation by the
General Assembly, from a fund entitled the Aerospace Engine Manufacturing
Supplier Cluster Grant Fund, which Fund is hereby established on the books of
the Comptroller, (b) shall not exceed $5 million in the aggregate, and (c) shall
be paid, as provided in this section, to the qualified manufacturer subject to
the conditions of this section being met.

   2. If the qualified supplier cluster has, subsequent to the qualified
   manufacturer commencing construction in an eligible county, (i) created and
   substantially retained at least 150 new full-time jobs within the
   Commonwealth, (ii) made and substantially retained at least $25 million worth
   of capital investment within the Commonwealth, and (iii) made a written
   certification to the Secretary that its decision to create such new full-time
   jobs and make such capital investment was based in part by the location of the
   qualified manufacturer and was in part for a purpose of providing ancillary
   parts, tools, or other components used by the qualified manufacturer within
   the Commonwealth or for providing ancillary services within the Commonwealth
   for such qualified manufacturer, then a grant payment in the amount of $2.5
   million shall be paid to the qualified manufacturer as provided in subsection
   E. If the qualified supplier cluster has, subsequent to the qualified
   manufacturer commencing construction in an eligible county, (a) created and
   substantially retained at least 300 new full-time jobs within the
   Commonwealth, (b) made and substantially retained at least $50 million worth
   of capital investment within the Commonwealth, and (c) made a written
   certification to the Secretary that its decision to create such new full-time
   jobs and make such capital investment was based in part by the location of the
   qualified manufacturer and was in part for a purpose of providing ancillary
   parts, tools, or other components used by the qualified manufacturer within
   the Commonwealth or for providing ancillary services within the Commonwealth
   for such qualified manufacturer, then an aggregate amount of $5 million in
   grants shall be paid to the qualified manufacturer as provided in subsection
   E. In no case, however, shall the aggregate amount of grants payable to all
   qualified manufacturers pursuant to this section exceed $5 million and in no
   case shall more than $2.5 million in grants pursuant to this section be paid
   in a fiscal year. Upon receipt of such written certification by the qualified
   supplier cluster, the Secretary shall promptly notify the qualified
   manufacturer of the same for purposes of applying for a grant under this
   section.
   				The memorandum of understanding may provide that a qualified manufacturer
   shall be eligible for a reduced grant payment if at least 100 new full-time
   jobs have been created and substantially retained and at least one-third of
   the full $50 million capital investment has been made and substantially
   retained by the qualified supplier cluster. As described in the memorandum of
   understanding, in such case the reduction in the grant payments shall be
   proportional to the reduction in the new full-time jobs created and
   substantially retained and the reduction in the capital investment. Further,
   the memorandum of understanding may provide for deferred grant payments if the
   capital investment and the new full-time jobs have been met, but a substantial
   reduction occurs in the capital investment or new full-time job requirements
   between the date such requirements were met and the date the grant payment is
   to be made.

C. If grants to be paid to qualified manufacturers under this section exceed the
aggregate amount of grants payable in a fiscal year, each eligible qualified
manufacturer&#8217;s grant for the year shall equal the amount of the grant to
which the qualified manufacturer would otherwise be entitled multiplied by a
fraction. The numerator of the fraction shall equal the amount of the grant
payable in the fiscal year, and the denominator shall equal the aggregate dollar
amount of requests for grants to which all qualified manufacturers otherwise
would be eligible for such fiscal year.

D. Any qualified manufacturer applying for a grant under this section shall
provide evidence, satisfactory to the Secretary, of (i) the number of new
full-time jobs created and substantially retained by a qualified supplier on a
qualified supplier list as described in subdivision B 2, and (ii) the aggregate
capital investment made and substantially retained by a qualified supplier on a
qualified supplier list as described in subdivision B 2. The application and
evidence shall be filed with the Secretary in person or by mail by between July
1 and August 31.

E. Within 30 days after filing of the application described 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. Payment of such grant shall be made by check issued
by the Treasurer of Virginia on warrant of the Comptroller, and such payment
shall be made in the fiscal year that immediately follows the fiscal year in
which the qualified manufacturer had applied for the grant.

F. 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 the aggregate number of new
full-time jobs created by the qualified supplier cluster as described in
subdivision B 2, the average wages paid for such jobs, the prevailing average
wage in the localities in which such jobs are located, and the aggregate amount
of capital investment made by the qualified supplier cluster as described in
subdivision B 2.
			The Comptroller shall not draw any warrants to issue checks for any grant
under this section without a specific legislative appropriation. All such
documents appropriately identified by the qualified manufacturer shall be
considered confidential and proprietary.

HISTORY: 2008, cc. 256, 630.