                                 CODE OF VIRGINIA

ADVANCED SHIPBUILDING TRAINING FACILITY GRANT PROGRAM; ELIGIBLE CITY (§
59.1-284.23)

A. As used in this section:
			&#8220;Advanced shipbuilding&#8221; means (i) the manufacture, construction,
assembly, overhaul, repair, and test of nuclear vessels and submarines for the
U.S. Navy; (ii) the design or development of nuclear vessels and submarines for
the U.S. Navy; or (iii) the manufacturing activities of a private company
described under 2007 index number 336611 of the North American Industry
Classification System.
			&#8220;Base training expense&#8221; means the total expenditures made by a
qualified shipbuilder in 2008 that directly and indirectly support training
activities.
			&#8220;Capital investment&#8221; means an investment in real property,
tangible personal property, or both, within the Commonwealth.
			&#8220;Eligible city&#8221; means the City of Newport News or its industrial
development authority.
			&#8220;Grant&#8221; means the advanced shipbuilding training facility grant
as described in this section.
			&#8220;Memorandum of understanding&#8221; means a performance agreement
entered into on or before August 31, 2011, among a qualified shipbuilder, the
Commonwealth, and others as appropriate, such as the eligible city, setting
forth the requirements for capital investment, training costs, and the creation
of new full-time jobs that will make the qualified shipbuilder eligible for a
grant under this section.
			&#8220;New full-time job&#8221; means employment of an indefinite duration in
an eligible city, created as the direct result of capital investment, for which
the average annual wage is at least equal to the prevailing average annual wage
in an eligible city and for which the standard fringe benefits are paid by the
qualified shipbuilder, requiring a minimum of either (i) 35 hours of an
employee&#8217;s time per week for the entire normal year of such qualified
shipbuilder&#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 of the qualified shipbuilder, may be considered new full-time
jobs, if so designated as such in the memorandum of understanding between such
qualified shipbuilder, the Commonwealth, and others.
			&#8220;New training facility&#8221; means a facility that, pursuant to a
Memorandum of Agreement with the Secretary, is to be operated by the qualified
shipbuilder for use by the shipbuilding industry, primarily to provide
education, training and retraining of workers in the shipbuilding industry. Such
training facility may be owned by the qualified shipbuilder, or may be operated
by the qualified shipbuilder through a lease agreement with the eligible city, a
local industrial development authority, or a private developer.
			&#8220;Qualified shipbuilder&#8221; means a shipbuilder located in an
eligible city that (i) makes a new capital investment of at least $300 million
from January 1, 2009 through December 31, 2011, related to advanced shipbuilding
in an eligible city; (ii) creates at least 1,000 new full-time jobs in an
eligible city for advanced shipbuilding or activities ancillary to or supportive
of advanced shipbuilding; (iii) maintains an apprenticeship program accredited
by the Council for Occupational Education with an average annual enrollment of
at least 750 and articulation agreements with local comprehensive community
colleges that allow its graduates to qualify for accredited associate degrees
from those institutions; and (iv) maintains a level of expenditures directly or
indirectly supporting training activities, which level is at least equal to the
base training expense.
			&#8220;Secretary&#8221; means the Secretary of Commerce and Trade or his
designee.

B. Any qualified shipbuilder located in an eligible city shall be eligible to
receive a grant each fiscal year beginning with the Commonwealth&#8217;s fiscal
year starting on July 1, 2012, and ending with the Commonwealth&#8217;s fiscal
year starting on July 1, 2016, unless such time frame is extended in accordance
with subsection C or D. The grants under this section (i) shall be paid, subject
to appropriation by the General Assembly, from a fund entitled the Advanced
Shipbuilding Training Facility Fund, which Fund is hereby established on the
books of the Comptroller; (ii) shall not exceed $25 million in the aggregate;
(iii) shall be paid to a qualified shipbuilder during each fiscal year
contingent upon the qualified shipbuilder meeting the requirements for the
aggregate of (a) number of new full-time jobs created and the substantial
retention of the same, (b) maintenance of base training expenses, and (c) amount
of the capital investment made and substantially retained, as set forth in the
memorandum of understanding; and (iv) shall be expended by the qualified
shipbuilder on training costs or to pay the capital or lease cost of any new
training facility to provide that training.

   1. The amount of the grant to be paid in each fiscal year shall be conditional
   upon the qualified shipbuilder meeting the requirements for (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 beginning of such
   fiscal year; (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 beginning of such fiscal year; and (iii) maintaining
   a level of expenditures directly or indirectly supporting training activities,
   which level is at least equal to the base training expense. If the qualified
   shipbuilder has not fully met the grant requirements by December 31, 2011, the
   period of eligibility may be extended for up to three years, provided that the
   grants in any given fiscal year shall not exceed $5 million, plus any amounts
   deferred in accordance with subsection C or D. Grants shall be paid based upon
   such requirements as agreed to on or before August 31, 2011, regardless if
   such memorandum of understanding is later modified, amended, superseded, or
   otherwise changed;

   2. The aggregate amount of grants that may be awarded in a particular fiscal
   year shall not exceed the following:
   				a. $5 million for the Commonwealth&#8217;s fiscal year beginning July 1,
   2012;
   				b. $10 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2013;
   				c. $15 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2014;
   				d. $20 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2015; and
   				e. $25 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2016; and

   3. Grants provided by this section shall not exceed $25 million in the
   aggregate or the aggregate total of training costs expended by a qualified
   shipbuilder during the period, whichever is less.

C. Any qualified shipbuilder 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 beginning of the fiscal year in
which the grant is to be paid; (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 beginning of the fiscal year in which the
grant is to be paid; and (iii) the aggregate amount of base training expenses as
of the last day of the calendar year that immediately precedes the beginning 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 shipbuilder meets
such aggregate new full-time job requirements and aggregate capital investments.
Failure to meet the filing deadline shall result in a deferral of a scheduled
grant payment set forth in subsection B. For filings by mail, the postmark
cancellation shall govern the date of the filing determination.

D. 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 or the aggregate new full-time job requirements or the
aggregate base training expenses 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 B or that a proportional
payment, based on the proportional share of the required additional full-time
jobs, be made.

E. As a condition of receipt of a grant, a qualified shipbuilder shall make
available to the Secretary or his designee for inspection upon his request
relevant and applicable documents to determine whether the qualified shipbuilder
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 shipbuilder shall be considered confidential and proprietary.

F. An eligible city shall be eligible to receive a grant from the Advanced
Shipbuilding Training Facility Fund established under subsection B each fiscal
year beginning with the Commonwealth&#8217;s fiscal year starting on July 1,
2012. The grants under this subsection may be paid to the eligible city subject
to a memorandum of understanding between the Secretary, the eligible city, and
the qualified shipbuilder that provides that (i) the eligible city or a private
developer will build a new training facility for use by the qualified
shipbuilder and the qualified shipbuilder will use the new training facility
during the grant period; (ii) the new training facility is part of a development
plan approved by the eligible city and the qualified shipbuilder that includes
additional private capital investment adjacent to the new training facility that
is equal to or greater than the cost of the facility; and (iii) the qualified
shipbuilder waives its right to apply for grants under subsection B. Grants to
an eligible city may be used only for the construction, lease, or lease-purchase
of the new training facility, including related debt service or repayment of any
loans whose proceeds are used for such costs. The memorandum of understanding
may provide for a total amount of grants under this subsection of not more than
$42 million, subject to appropriation by the General Assembly, and for a period
of eligibility of up to 10 years, unless such time frame is extended in
accordance with subsection C or D, and may provide for a contractual agreement
for payments by the Commonwealth. At the conclusion of the grant period, the
qualified shipbuilder shall have the right to assume ownership of the new
training facility.

HISTORY: 2009, cc. 798, 850; 2011, c. 749.