Bill Text: VA HB1413 | 2023 | Regular Session | Prefiled
Bill Title: Industrial development authorities; safe and affordable housing, etc.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-02-07 - Left in Counties, Cities and Towns [HB1413 Detail]
Download: Virginia-2023-HB1413-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §§15.2-4901 and 15.2-4902 of the Code of Virginia are amended and reenacted as follows:
§15.2-4901. Purpose of chapter.
It is the intent of the legislature by the passage of this chapter to authorize the creation of industrial development authorities by the localities in the Commonwealth so that such authorities may acquire, own, lease, and dispose of properties and make loans to the end that such authorities may be able to promote industry and develop trade by inducing manufacturing, industrial, governmental, nonprofit, and commercial enterprises, and institutions of higher education to locate in or remain in the Commonwealth and further the use of its agricultural products and natural resources, and to vest such authorities with all powers that may be necessary to enable them to accomplish such purposes, which powers shall be exercised for the benefit of the inhabitants of the Commonwealth, either through the increase of their commerce, or through the promotion of their safety, health, welfare, convenience, or prosperity. Such authority shall not itself be authorized to operate any such manufacturing, industrial, nonprofit, or commercial enterprise, or any facility of an institution of higher education.
It is the further intent of the legislature and shall be the policy of the Commonwealth to grant to industrial development authorities the powers contained herein with respect to pollution control facilities to the end that such authorities may protect and promote the health of the inhabitants of the Commonwealth and the conservation, protection, and improvement of its natural resources by exercising such powers for the control or abatement of land, sewer, water, air, noise, and general environmental pollution derived from the operation of any industrial or medical facility and to vest such authorities with all powers that may be necessary to enable them to accomplish such purpose, which powers shall be exercised for the benefit of the inhabitants of the Commonwealth, either through the increase of their commerce, or through the promotion of their safety, health, welfare, convenience, or prosperity.
It is the further intent of the legislature and shall be the policy of the Commonwealth to grant to industrial development authorities the powers contained herein with respect to medical facilities and facilities for the residence or care of the aged to the end that such authorities may protect and promote the health and welfare of the inhabitants of the Commonwealth by assisting in the acquisition, construction, equipping, expansion, enlargement, and improvement of medical facilities and facilities for the residence or care of the aged in order to provide modern and efficient medical services to the inhabitants of the Commonwealth and care of the aged of the Commonwealth in accordance with their special needs and also by assisting in the refinancing of medical facilities and facilities for the residence or care of the aged owned and operated by organizations which are exempt from taxation pursuant to § 501(c)(3) of the Internal Revenue Code of 1954, as amended, in order to reduce the costs to residents of the Commonwealth of utilizing such facilities and to vest such authorities with all powers that may be necessary to enable them to accomplish such purposes, which powers shall be exercised for the benefit of the inhabitants of the Commonwealth and for the promotion of their health and welfare. It is not intended hereby that any such authority shall itself be authorized to operate any such medical facility or facility for the residence or care of the aged.
It is the further intent of the legislature and shall be the policy of the Commonwealth to grant to industrial development authorities the powers contained herein with respect to facilities for use by organizations (other than institutions organized and operated exclusively for religious purposes) which are described in §501(c)(3) of the Internal Revenue Code of 1954, as amended, and which are exempt from federal income taxation pursuant to §501(a) of the Internal Revenue Code of 1954, as amended, to the end that such authorities may protect or promote the safety, health, welfare, convenience, and prosperity of the inhabitants of the Commonwealth by assisting in the acquisition, construction, equipping, expansion, enlargement, improvement, financing, and refinancing of such facilities of the aforesaid entities and organizations in order to provide operations, recreational, activity centers, and other facilities for the use of the inhabitants of the Commonwealth and to vest such authorities with all powers that may be necessary to enable them to accomplish such purposes, which powers shall be exercised for the benefit of the inhabitants of the Commonwealth and for the promotion of their safety, health, welfare, convenience, or prosperity. It is not intended hereby that any such authority shall itself be authorized to operate any such facility.
It is the further intent of the legislature and shall be the policy of the Commonwealth to grant to industrial development authorities the powers contained herein with respect to facilities for accredited nonprofit private institutions of higher education in the Commonwealth whose primary purpose is to provide collegiate or graduate education and not to provide religious training or theological education to the end that such authorities may protect and promote the health and welfare of the inhabitants of the Commonwealth by assisting in the acquisition, construction, equipping, expansion, enlargement, and improvement of facilities of aforesaid institutions in order to provide improved educational facilities for the use of the inhabitants of the Commonwealth and to vest such authorities with all powers that may be necessary to enable them to accomplish such purposes, which powers shall be exercised for the benefit of the inhabitants of the Commonwealth and for the promotion of their health, welfare, convenience, or prosperity. It is not intended hereby that any such authority shall itself be authorized to operate any such educational facility.
It is the further intent of the legislature and shall be the policy of the Commonwealth to grant industrial development authorities the powers contained herein with respect to facilities for a locality, the Commonwealth and its agencies, and governmental and nonprofit organizations and to vest such authorities with all powers that may be necessary to enable them to accomplish such purposes, which powers shall be exercised for the benefit of the inhabitants of the Commonwealth and for the promotion of their health, welfare, convenience, or prosperity.
It is further the intent of the legislature and shall be the policy of the Commonwealth to grant to industrial development authorities the powers contained herein with respect to facilities for museums and historical education, demonstration, and interpretation, together with any and all buildings, structures, or other facilities necessary or desirable in connection with the foregoing, for use by nonprofit organizations in order to promote tourism and economic development in the Commonwealth, to promote the knowledge of and appreciation by the citizens of the Commonwealth of the historical and cultural development and heritage of the Commonwealth and the United States and to promote thereby their health, welfare, convenience, and prosperity. It is not intended hereby that any such authority shall itself be authorized to operate any such facility.
It is the further intent of the legislature and shall be the policy of the Commonwealth to grant to industrial development authorities the powers contained herein with respect to facilities devoted to the staging of equine events and activities (other than racing) for use by governmental or nonprofit, nonreligious organizations and operated by such governmental or nonprofit, nonreligious organizations in order to promote the equine industry and equine-related activities (other than racing) which are integral to the Commonwealth's economy and heritage and to promote thereby the safety, health, welfare, convenience, and prosperity of the inhabitants of the Commonwealth.
It is the further intent of the legislature and shall be the policy of the Commonwealth to grant to industrial development authorities the powers contained herein with respect to acquiring, developing, owning, and operating an industrial park and any utilities that are intended primarily to serve the park and to issue bonds for such purposes. The bonds may be secured by revenues generated by the industrial park or the utilities being financed or by any other funds of the authority.
It is the further intent of the legislature and shall be the
policy of the Commonwealth to grant to industrial development authorities created by one or more municipalities whose
housing authorities have not been activated as provided by §§36-4 and 36-4.1,
in addition to the powers previously or hereafter granted in
this chapter, the powers
contained herein with respect to facilities used primarily for single or multi-family multifamily residences in
order to promote safe and affordable housing in the Commonwealth and to benefit
thereby the safety, health, welfare, and prosperity of the inhabitants of the
Commonwealth. It is not intended hereby that any such authority shall itself be
authorized to operate any such facility or exercise any powers of eminent
domain set forth in §36-27.
It is the further intent of the legislature and shall be the policy of the Commonwealth to grant to industrial development authorities, in addition to the powers previously or hereafter granted herein, the power to make grants associated with the construction of affordable housing in order to promote safe and affordable housing in the Commonwealth and to benefit thereby the safety, health, welfare, and prosperity of the inhabitants of the Commonwealth.
It is the further intent of the legislature and shall be the policy of the Commonwealth to grant industrial development authorities the powers contained herein with respect to public school buildings and facilities to promote the safety, health, welfare, convenience, and prosperity of the school children of the Commonwealth by assisting in the acquisition, construction, equipping, expansion, enlargement, improvement, financing, and refinancing of such facilities of school boards in order to provide for the modernization of public school buildings or facilities pursuant to Article 3 (§ 22.1-141.1 et seq.) of Chapter 9 of Title 22.1.
It is the further intent of the legislature and shall be the policy of the Commonwealth to grant to industrial development authorities the powers contained herein with respect to facilitating and supporting landowner access to carbon markets through aggregation of landowners to reach a size that attracts the investment of private capital. Such aggregation provides landowners of various size tracts of land enhanced opportunities to access capital and benefits that support and enhance the agriculture and forest industries for the health, welfare, convenience and prosperity of the inhabitants of the Commonwealth.
In any instance in this chapter where an industrial development authority may issue bonds through its authority to finance, the authority may also refinance such bonds.
This chapter shall be liberally construed in conformity with these intentions.
§15.2-4902. Definitions.
Wherever used in this chapter, unless a different meaning clearly appears in the context:
"Authority" means any political subdivision, a body politic and corporate, created, organized and operated pursuant to the provisions of this chapter, or if the authority is abolished, the board, body, commission, department or officer succeeding to the principal functions thereof or to whom the powers given by this chapter are given by law.
"Authority facilities" or "facilities"
means any or all (i) medical (including, but not limited to, office and
treatment facilities), pollution control or industrial facilities; (ii)
facilities for the residence or care of the aged; (iii) multi-state regional or
national headquarters offices or operations centers; (iv) facilities for
private, accredited and nonprofit institutions of collegiate, elementary, or
secondary education in the Commonwealth whose primary purpose is to provide
collegiate, elementary, secondary, or graduate education and not to provide
religious training or theological education, such facilities being for use as
academic or administration buildings or any other structure or application
usual and customary to a college, elementary or secondary school campus other
than chapels and their like; (v) parking facilities, including parking
structures; (vi) facilities for use as office space by nonprofit, nonreligious
organizations; (vii) facilities for museums and historical education,
demonstration and interpretation, together with buildings, structures or other
facilities necessary or desirable in connection with the foregoing, for use by
nonprofit organizations; (viii) facilities for use by an organization (other
than an organization organized and operated exclusively for religious purposes)
which is described in §501(c) (3) of the Internal Revenue Code of 1986, as
amended, and which is exempt from federal income taxation pursuant to §501 (a)
of such Internal Revenue Code; (ix) facilities for use by a locality, the
Commonwealth and its agencies, or other governmental organizations, provided
that any such facilities owned by a locality, the Commonwealth or its agencies
or other public bodies subject to the Virginia Public Procurement Act (§
2.2-4300 et seq.) shall not be exempt from competitive procurement
requirements, under the exception granted in subsection B of §2.2-4344; (x)
facilities devoted to the staging of equine events and activities (other than
racing events); however, such facilities must be owned by a governmental or
nonprofit, nonreligious organization and operated by any such governmental or
nonprofit, nonreligious organization; (xi) facilities for commercial
enterprises that are not enterprise zone facilities (as defined in §1394 (b)
of the Internal Revenue Code of 1986, as amended) now existing or hereafter
acquired, constructed or installed by or for the authority pursuant to the
terms of this chapter; however, facilities for commercial enterprise that are
not enterprise zone facilities but which are taxable authority facilities shall
constitute authority facilities only if the interest on any bonds issued to
finance such facilities is not exempt from federal income taxation; (xii)
enterprise zone facilities; and (xiii) facilities used primarily for single or multi-family multifamily residences. Clause (xiii) applies only to industrial
development authorities created by one or more localities whose housing
authorities have not been activated as provided by §§36-4 and 36-4.1. Any facility may be located within or outside or partly
within or outside the locality creating the authority. Any facility may consist
of or include any or all buildings, improvements, additions, extensions,
replacements, machinery or equipment, and may also include appurtenances,
lands, rights in land, water rights, franchises, furnishings, landscaping,
utilities, approaches, roadways and other facilities necessary or desirable in
connection therewith or incidental thereto, acquired, constructed, or installed
by or on behalf of the authority. A pollution control facility shall include
any facility acquired, constructed or installed or any expenditure made,
including the reconstruction, modernization or modification of any existing
building, improvement, addition, extension, replacement, machinery or
equipment, and which is designed to further the control or abatement of land,
sewer, water, air, noise or general environmental pollution derived from the
operation of any industrial or medical facility. Any facility may be constructed
on or installed in or upon lands, structures, rights-of-way, easements, air
rights, franchises or other property rights or interests whether owned by the
authority or others.
"Bonds" or "revenue bonds" embraces notes, bonds and other obligations authorized to be issued by the authority pursuant to the provisions of this chapter.
"Cost" means, as applied to authority facilities, the cost of construction; the cost of acquisition of all lands, structures, rights-of-way, franchises, easements and other property rights and interests; the cost of demolishing, removing or relocating any buildings or structures on lands acquired, including the cost of acquiring any lands to which such buildings or structures may be moved or relocated; the cost of all labor, materials, machinery and equipment; financing charges and interest on all bonds prior to and during construction and, if deemed advisable by the authority, for a period not exceeding one year after completion of such construction; cost of engineering, financial and legal services, plans, specifications, studies, surveys, estimates of cost and of revenues, and other expenses necessary or incident to determining the feasibility or practicability of constructing the authority facilities; administrative expenses, provisions for working capital, reserves for interest and for extensions, enlargements, additions and improvements; and such other expenses as may be necessary or incident to the construction of the authority facilities, the financing of such construction and the placing of the authority facilities in operation. Any obligation or expense incurred by the Commonwealth or any agency thereof, with the approval of the authority, for studies, surveys, borings, preparation of plans and specifications or other work or materials in connection with the construction of the authority facilities may be regarded as a part of the cost of the authority facilities and may be reimbursed to the Commonwealth or any agency thereof out of the proceeds of the bonds issued for such authority facilities as hereinafter authorized.
"Enterprise" means any industry for manufacturing, processing, assembling, storing, warehousing, distributing, or selling any products of agriculture, mining, or industry and for research and development or scientific laboratories, including, but not limited to, the practice of medicine and all other activities related thereto or for such other businesses or activities as will be in the furtherance of the public purposes of this chapter.
"Loans" means any loans made by the authority in furtherance of the purposes of this chapter from the proceeds of the issuance and sale of the authority's bonds and from any of its revenues or other moneys available to it as provided herein.
"Revenues" means any or all fees, rates, rentals and receipts collected by, payable to or otherwise derived by the authority from, and all other moneys and income of whatsoever kind or character collected by, payable to or otherwise derived by the authority in connection with the ownership, leasing or sale of the authority facilities or in connection with any loans made by the authority under this chapter.
"Taxable authority facilities" means any private or commercial golf course, country club, massage parlor, tennis club, skating facility (including roller skating, skateboard and ice skating), racquet sports facility, suntan facility, race track, or facility the primary purpose of which is one of the following: (i) retail food and beverage services (excluding grocery stores), (ii) automobile sales and service, (iii) recreation or entertainment, or (iv) banks, savings and loan institutions or mortgage loan companies. The foregoing sentence notwithstanding, no facility financed as an enterprise zone facility using tax-exempt "enterprise zone facility bonds" (as such term is used in §1394 of the Internal Revenue Code ) shall constitute a taxable authority facility.
"Trust indenture" means any trust agreement or mortgage under which bonds authorized pursuant to this chapter may be secured.
