Bill Text: VA HB212 | 2024 | Regular Session | Comm Sub
Bill Title: MEI Project Approval Commission; board-level gender and diversity requirements.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Vetoed) 2024-04-17 - House sustained Governor's veto [HB212 Detail]
Download: Virginia-2024-HB212-Comm_Sub.html
Be it enacted by the General Assembly of Virginia:
1. That §30-310 of the Code of Virginia is amended and reenacted as follows:
§30-310. Review of incentive packages.
A. 1. The Commission shall review individual incentive
packages, including but not limited to packages offering tax incentives, for
economic development, film, and episodic television projects (including but not
limited to MEI projects) for which (i) one or more of the incentives in the
incentive package is not authorized under current law or an amendment by the
General Assembly is being sought to one or more currently existing incentives
included as part of the incentive package, (ii) one of the incentives being
sought includes a cash payment to a private sector business of more than $3.5
million from any fund prior to any performance metrics being met by the
proposed project, or (iii) the aggregate amount of incentives to be provided by
the Commonwealth in the incentive package including discretionary grants,
general or nongeneral funds, proceeds from bonds, rights to lease property at
below fair market value, or any other incentives from the Commonwealth is in
excess of $10 million in value. Except for the value of any sales tax exemption
available pursuant to subdivision 18 of §58.1-609.3 or tax credit available
pursuant to §58.1-439.12:03, the value of any existing nondiscretionary
incentives shall not be considered in calculating whether the incentives are in
excess of $10 million in value, and no review shall be required for a project
if the only incentives to be provided to a potential project are
nondiscretionary incentives. The Commission shall also review economic
development projects in which a business relocates or expands its operations in
one or more Virginia localities and simultaneously closes its operations or
substantially reduces the number of its employees in another Virginia locality
if the aggregate amount of incentives to be provided by the Commonwealth in the
incentive package including discretionary grants, general or nongeneral funds,
proceeds from bonds, rights to lease property at below fair market value, or
any other incentives from the Commonwealth is in excess of $2.5 million in value.
The Commission shall recommend approval or denial of such packages and projects
to the General Assembly. Factors that shall be considered by the Commission in
its review shall include but not be limited to (a) return on investment,;
(b) the time frame for repayment of incentives to the Commonwealth,;
(c) average wages of the jobs created by the prospective MEI project or other
economic development project,; (d) the amount of capital
investment that is required, and; (e) the need for enhanced
employment opportunities in the prospective location of the prospective MEI
project or other economic development project; (f) whether a board diversity
disclosure statement that was submitted by the business with the proposed
incentive package specifies the number and percentage of diverse directors on
the board of directors of such business who self-identify as female or
represent a national, racial, ethnic, indigenous, or cultural minority in the
country of the business's principal executive offices, such that at least 30
percent of such board of directors consists of women and historically
underrepresented groups; and (g) whether the business commits to, upon approval
by the Commission of the incentive package, annually update and submit such
diversity disclosure to the Commission and the Chairs of the House Committee on
Appropriations and Senate Committee on Finance and Appropriations.
2. a. Any time a proposed individual incentive package is to
be considered by the Commission, materials outlining (i) the value of the
proposed incentives; (ii) assumed return on investment; (iii) the time frame
for repayment of incentives to the Commonwealth; (iv) average wages of the jobs
created by the prospective economic development, film, or episodic television
project; (v) the amount of capital investment that is required; (vi) the need
for enhanced employment opportunities in the prospective location of the
prospective economic development, film, or episodic television project; (vii)
the total amount of state incentives received by the sponsor of the economic
development, film, or episodic television project in the past; and
(viii) a list of all other existing, nondiscretionary incentives for which the
sponsor of the economic development, film, or episodic television project may qualify;
and (ix) a board diversity disclosure shall be provided to the staff of the
House Committee on Appropriations and Senate Committee on Finance and
Appropriations not less than five business days prior to the scheduled
Commission meeting. Staff shall also be provided with an aggregate list of all
discretionary incentives currently committed by the Commonwealth for the next
10 years, including anticipated requests for appropriations to satisfy such
commitments during that time.
b. The timing of any request for an endorsement of a proposed individual incentive package should be scheduled so that the MEI Commission could, at its discretion, have up to seven days subsequent to the presentation of the incentive package prior to endorsing or rejecting such proposal.
c. State agencies, localities, authorities, or other political subdivisions of the Commonwealth that have significant involvement in a proposed individual incentive package in terms of providing facilities or regulatory support to a project or in developing the proposed individual incentive package shall review the materials required by subdivision 2 and certify the accuracy of such materials prior to consideration by the Commission.
B. An affirmative vote by four of the seven members of the Commission from the House of Delegates and three of the five members of the Commission from the Senate shall be required to endorse any incentive package, including but not limited to packages offering tax incentives, for economic development, film, and episodic television projects (including but not limited to MEI projects) for which (i) one or more of the incentives in the incentive package is not authorized under current law or an amendment by the General Assembly is being sought to one or more currently existing incentives included as part of the incentive package, (ii) one of the incentives being sought includes a cash payment to a private sector business of more than $3.5 million from any fund prior to any performance metrics being met by the proposed project, or (iii) the aggregate amount of incentives to be provided by the Commonwealth in the incentive package including discretionary grants, general or nongeneral funds, proceeds from bonds, rights to lease property at below fair market value, or any other incentives from the Commonwealth is in excess of $10 million in value. Except for the value of any sales tax exemption available pursuant to subdivision 18 of §58.1-609.3 or tax credit available pursuant to §58.1-439.12:03, the value of any existing nondiscretionary incentives shall not be considered in calculating whether the incentives are in excess of $10 million in value. Such vote shall also be required to endorse any economic development project in which a business relocates or expands its operations in one or more Virginia localities and simultaneously closes its operations or substantially reduces the number of its employees in another Virginia locality if the aggregate amount of incentives to be provided by the Commonwealth in the incentive package including discretionary grants, general or nongeneral funds, proceeds from bonds, rights to lease property at below fair market value, or any other incentives from the Commonwealth is in excess of $2.5 million in value. However, no vote shall be required for a project if the only incentives to be provided to a potential project are nondiscretionary incentives available to any qualified taxpayer under existing law.