                                 CODE OF VIRGINIA

SHIPPING AND LOGISTICS HEADQUARTERS GRANT PROGRAM (§ 59.1-284.39)

A. As used in this chapter, unless the context requires a different meaning:
			&#8220;Capital investment&#8221; means an expenditure within an eligible
locality, by or on behalf of a qualified company on or after January 1, 2021, in
real property, tangible personal property, or both, at one of the facilities
within an eligible locality that has been capitalized or is subject to being
capitalized. &#8220;Capital investment&#8221; may include (i) the purchase of
land and buildings and the cost of infrastructure development and land
improvements; (ii) a capital expenditure related to a leasehold interest in real
property; and (iii) the purchase or lease of furniture, fixtures, machinery, and
equipment, including under an operating lease.
			&#8220;Eligible locality&#8221; means the City of Norfolk or the County of
Arlington.
			&#8220;Facilities&#8221; means the buildings, group of buildings, or campus,
including any related furniture, fixtures, equipment, and business personal
property, in an eligible locality that is owned, leased, licensed, occupied, or
otherwise operated by or on behalf of a qualified company for use as a
headquarters facility, a customer care center, or a research and development
innovation center in the furtherance of its shipping and logistics business.
			&#8220;Fund&#8221; means the Shipping and Logistics Headquarters Grant Fund.
			&#8220;Grant&#8221; means a grant from the Fund awarded to a qualified
company in an aggregate amount of up to $9,042,875. Grant proceeds are intended
to be used by the qualified company to pay or reimburse costs associated with
constructing, renovating, acquiring, and staffing the facilities.
			&#8220;Memorandum of understanding&#8221; means a performance agreement or
related document entered into on or before August 1, 2022, between a qualified
company and the Commonwealth that sets forth the requirements for capital
investment and the creation of new jobs for the qualified company.
			&#8220;New job&#8221; means full-time employment at or associated with any of
the facilities measured at any time after January 1, 2021, for which the annual
average wage is at least $56,713 for a position in the City of Norfolk or at
least $99,385 for a position in the County of Arlington, that requires a minimum
of 38 hours of an employee&#8217;s time per week for the entire normal year,
consisting of at least 48 weeks, of the qualified company&#8217;s operations.
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
jobs. Any new job shall be in addition to the baseline number of existing
full-time positions at the qualified company&#8217;s facilities, to be set forth
in the memorandum of understanding.
			&#8220;Qualified company&#8221; means a shipping and logistics company, and
its affiliates, that between January 1, 2021, and September 30, 2030, is
expected to (i) retain its North American headquarters operations in the City of
Norfolk; (ii) make or cause to be made a capital investment at one or more of
the facilities of at least $36 million; (iii) create and maintain at least 415
new jobs at or associated with the facilities related to, or supportive of, its
shipping and logistics business functions; and (iv) establish and operate a
research and development innovation center.
			&#8220;Secretary&#8221; means the Secretary of Commerce and Trade or his
designee.

B. There is hereby created in the state treasury a nonreverting fund to be known
as the Shipping and Logistics Headquarters Grant Fund. The Fund shall be
established on the books of the Comptroller. All funds appropriated to the Fund
shall be paid into the state treasury and 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 solely for the purpose to pay grant installments pursuant to this
chapter. Payment of such grant installments shall be made by check issued by the
State Treasurer on warrant of the Comptroller. The Comptroller shall not draw
any warrants to issue checks for grant installments under this section without a
specific appropriation for the same.

C. Subject to appropriation by the General Assembly, the aggregate amount of
grants payable under this section to a qualified company shall not exceed
$9,042,875. Grants shall be paid in nine annual installments, calculated in
accordance with the memorandum of understanding, with grants that may be awarded
in a particular fiscal year not to exceed the following:

   1. $1,359,500 for the Commonwealth&#8217;s fiscal year beginning July 1, 2022;

   2. $2,514,000, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2023;

   3. $3,468,500, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2024;

   4. $4,423,000, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2025;

   5. $5,377,500, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2026;

   6. $6,332,000, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2027;

   7. $7,286,500, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2028;

   8. $8,241,000, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2029; and

   9. $9,042,875, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2030.

D. A qualified company receiving a grant installment pursuant to this section
shall provide evidence, satisfactory to the Secretary, annually of, for each
facility: (i) the aggregate number of new jobs created and maintained as of the
last day of the prior grant year as determined in the memorandum of
understanding, the payroll paid by the qualified company during the grant year,
and the average annual wage of the new jobs in the grant year and (ii) the
aggregate amount of the capital investment made during the grant year, including
the extent to which such capital investment was or was not subject to the
Virginia Retail Sales and Use Tax Act (&#xA7; 58.1-600 et seq.). The report and
evidence shall be filed with the Secretary in person, by mail, or as otherwise
agreed upon in the memorandum of understanding, by no later than 90 days
following the end of the prior grant year upon which the evidence is based.

E. The memorandum of understanding shall provide that if any annual report and
evidence provided pursuant to subsection D indicates that the qualified company
failed to meet certain targets for capital investment that is or is not subject
to the Virginia Retail Sales and Use Tax Act (&#xA7; 58.1-600 et seq.), the
average annual wage for new jobs, or the number of new jobs, the qualified
company may qualify for a reduced grant installment for the grant year in an
amount that reflects the value of the shortfall in the applicable target.

F. As a condition of receipt of the grant, a qualified company shall make
available to the Secretary for inspection all documents relevant and applicable
to determining whether the qualified company has met the requirements for the
receipt of the grant as set forth herein and subject to the memorandum of
understanding. All such documents appropriately identified by the qualified
company shall be considered confidential and proprietary and shall not be
subject to disclosure pursuant to the Virginia Freedom of Information Act
(&#xA7; 2.2-3700 et seq.).

HISTORY: 2021, Sp. Sess. I, c. 434; 2022, cc. 10, 76.