                                 CODE OF VIRGINIA

ADVANCED SHIPBUILDING PRODUCTION FACILITY GRANT PROGRAM (§ 59.1-284.29)

A. As used in this section:
			&#8220;Advanced shipbuilding&#8221; means (i) the manufacture, construction,
assembly, overhaul, repair, and testing of nuclear vessels and submarines for
the United States Navy; (ii) the design or development of nuclear vessels and
submarines for the United States Navy; or (iii) the manufacturing activities of
a private company described under 2007 index number 336611 of the North American
Industry Classification System.
			&#8220;Capital investment&#8221; means an investment in real property,
tangible personal property, or both, within the eligible city.
			&#8220;Eligible city&#8221; means the City of Newport News or its industrial
development authority.
			&#8220;Foundry&#8221; means a facility and equipment used to cast metal
components used in advanced shipbuilding.
			&#8220;Grant&#8221; means the advanced shipbuilding production facility grant
as described in this section.
			&#8220;Memorandum of understanding&#8221; means a performance agreement
entered into on or before August 31, 2016, among a qualified shipbuilder, the
Commonwealth, and others as appropriate, such as the eligible city, setting
forth the requirements for capital investment 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, and engaged in the construction of a class of vessel or
submarine not being built in that eligible city prior to January 1, 2016, for
which the average annual wage is at least equal to the prevailing average annual
wage in that 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 designated as such in the memorandum of understanding between such
qualified shipbuilder, the Commonwealth, and others.
			&#8220;New production facility&#8221; means a facility or equipment that,
pursuant to a memorandum of understanding with the Secretary, is constructed or
purchased after January 1, 2016, and operated by the qualified shipbuilder for
use in the construction of or manufacture of components for a class of nuclear
vessels or submarines not being built in that eligible city as of January 1,
2016. Such new production facility may be owned by the qualified shipbuilder or
may be operated by the qualified shipbuilder through a lease agreement with the
eligible city or a local industrial development authority.
			&#8220;Qualified shipbuilder&#8221; means a shipbuilder located in an
eligible city that (i) makes a new capital investment of at least $750 million
from January 1, 2015, through December 31, 2020, 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; and (iii) builds a new production facility.
			&#8220;Secretary&#8221; means the Secretary of Commerce and Trade or his
designee.

B. Any qualified shipbuilder located in an eligible city or the eligible city
shall be eligible to receive a grant each fiscal year beginning with the
Commonwealth&#8217;s fiscal year starting on July 1, 2020, and ending with the
Commonwealth&#8217;s fiscal year starting on July 1, 2024, 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 the fund entitled the Advanced Shipbuilding Production Facility Grant Fund
established in subsection G; (ii) shall not exceed $40 million in the aggregate;
(iii) shall be paid to a qualified shipbuilder or eligible city during each
fiscal year contingent upon the qualified shipbuilder&#8217;s meeting the
requirements for the aggregate of (a) number of new full-time jobs created and
the substantial retention of the same and (b) amount of the capital investment
made, as set forth in the memorandum of understanding; and (iv) shall be
expended by the qualified shipbuilder or the eligible city on the capital or
lease cost of a new production facility or a new or existing foundry.

   1. The amount of the grant to be paid in each fiscal year shall be conditional
   upon the qualified shipbuilder&#8217;s 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 and (ii) the aggregate amount of the capital
   investment made as of the last day of the calendar year that immediately
   precedes the beginning of such fiscal year. If the qualified shipbuilder has
   not fully met the grant requirements by December 31, 2020, the period of
   eligibility may be extended for up to three years, provided that the grants in
   any given fiscal year shall not exceed $8 million, plus any amounts deferred
   in accordance with subsection C or D.

   2. The aggregate amount of grants that may be awarded in a particular fiscal
   year shall not exceed the following:
   				a. $8 million for the Commonwealth&#8217;s fiscal year beginning July 1,
   2020;
   				b. $16 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2021;
   				c. $24 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2022;
   				d. $32 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2023; and
   				e. $40 million, less the total amount of grants previously awarded
   pursuant to this subsection, for the Commonwealth&#8217;s fiscal year
   beginning July 1, 2024.

C. Any qualified shipbuilder or eligible city 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 and (ii) the aggregate amount
of the capital investment made 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 set forth in
the memorandum of understanding or the occurrence of any substantial reduction
in such new full-time job 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. The memorandum of understanding may also provide that a shipbuilder or
eligible city that has qualified for and received grants under &#xA7;
59.1-284.23 may qualify for up to a separate and additional $6 million in one or
more grants payable after July 1, 2016, but before July 1, 2022, to be used in
the construction, lease, expansion, or renovation of a foundry in the eligible
city. The memorandum of understanding shall require that the total amount of
grants received pursuant to this subsection shall not exceed 25 percent of the
total cost of improvements needed to meet standards for making castings for the
construction of a class of vessel or submarine not being built in that eligible
city prior to January 1, 2016, and that those standards are subsequently met.
The memorandum of understanding may also set forth requirements for certain
employment levels at the foundry. For clarification, such grants are not
included in and shall not be subject to the overall limitation of the aggregate
grant amount set forth in subsection B.

F. 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.

G. There is hereby created in the state treasury a special nonreverting fund to
be known as the Advanced Shipbuilding Production Facility Grant Fund (the Fund).
The Fund shall be established on the books of the Comptroller. Interest earned
on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys
remaining in the Fund, including interest thereon, at the end of each fiscal
year shall not revert to the general fund but shall remain in the Fund. Moneys
in the Fund shall be used for the purposes stated in this section.

HISTORY: 2016, c. 723; 2019, cc. 36, 114.