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2002 SESSION


SENATE JOINT RESOLUTION NO. 91
Continuing the Joint Subcommittee Studying Economic Incentives to Promote the Growth and Competitiveness of Virginia's Shipbuilding Industry.

Agreed to by the Senate, January 25, 2002
Agreed to by the House of Delegates, March 5, 2002

WHEREAS, Senate Joint Resolution No. 171 (1998) established the Joint Subcommittee Studying Economic Incentives to Promote the Growth and Competitiveness of Virginia's Shipbuilding Industry; and

WHEREAS, the joint subcommittee was directed to examine, among other things, whether, and at what level, tax benefits or other economic incentives would be an effective tool in ensuring the continued health of Virginia's maritime industries; and

WHEREAS, the joint subcommittee in its first year examined information on a wide variety of topics including the economic condition of Virginia's shipbuilding and ship repair firms, and reasons for the declining levels of employment in the industry; and

WHEREAS, Senate Joint Resolution No. 436 (1999) continued the joint subcommittee for a second year; and

WHEREAS, the joint subcommittee in its second year recommended legislation providing for investment performance grants to certain eligible ship repair companies; and

WHEREAS, Senate Joint Resolution No. 177 (2000) continued the joint subcommittee for a third year; and

WHEREAS, the joint subcommittee in its third year recommended legislation providing for investment performance grants to certain eligible ship repair companies, funding for the implementation and administration of an apprenticeship program to enhance the skills of shipyard workers, and funding for the development of a coordinated and centralized marketing program to market the competitive advantages of Virginia's ports and shipyards; and

WHEREAS, Senate Joint Resolution No. 351 (2001) continued the joint subcommittee for a fourth year; and

WHEREAS, the joint subcommittee in 2002 will recommend legislation establishing a program providing grants to shipyards making capital investments and changing the date by which shipyards must comply with Virginia’s Water Quality Standard for tributyltin (TBT); and

WHEREAS, due to the continuing complexity of the issues, the joint subcommittee has not been able to complete its study of all issues it was authorized to study under Senate Joint Resolution No. 171 (1998), Senate Joint Resolution No. 436 (1999), Senate Joint Resolution No. 177 (2000), and Senate Joint Resolution No. 351 (2001) and all possible strategies to allow the industry to overcome the market conditions and governmental procurement policies that are responsible for much of the industry's problems; and

WHEREAS, the continuing study by the joint subcommittee is vital to gain a complete understanding of what must be accomplished to ensure that Virginia, and its shipbuilding and ship repair businesses, maintains its position as a leader in shipbuilding and related industries; and

WHEREAS, the continuing study by the joint subcommittee of issues having an adverse impact on the economic health of Virginia's shipbuilding industry is vital to the long-term economic health of the shipbuilding industry; and

WHEREAS, the members agree that the joint subcommittee should be continued for one more year; now, therefore, be it

RESOLVED by the Senate, the House of Delegates concurring, That the Joint Subcommittee Studying Economic Incentives to Promote the Growth and Competitiveness of Virginia's Shipbuilding Industry be continued. In its fifth year, the joint subcommittee shall continue to examine, in addition to such other issues as it deems advisable, (i) development of a water treatment process that consistently meets Virginia's 50 parts per trillion TBT discharge standard, (ii) additional methods for providing better training to and reducing turnover among shipyard workers, and (iii) promotion of Norfolk's piers as an original point of departure for cruise ships as a means of developing new business for Virginia's shipyard companies. The joint subcommittee shall be composed of 16 members, which shall include 10 legislative members, four nonlegislative members and two ex officio members as follows: four members of the Senate, to be appointed by the Senate Committee on Privileges and Elections; and six members of the House of Delegates, to be appointed by the Speaker of the House, in accordance with the principles of proportional representation contained in the Rules of the House of Delegates; one nonlegislative member representing the shipbuilding industry and one nonlegislative member familiar with the operations of the Norfolk Navy Shipyard, to be appointed by the Senate Committee on Privileges and Elections; one nonlegislative member representing the shipping industry and one nonlegislative member recommended by the Board of Commissioners of the Virginia Port Authority, to be appointed by the Speaker of the House; and the Secretary of Commerce and Trade or his designee and the Tax Commissioner or his designee to serve ex officio, with full voting privileges.

The direct costs of this study shall not exceed $5,800. The joint subcommittee shall not hold more than two meetings during the 2002 legislative interim.

The Division of Legislative Services shall continue to provide staff support for the study.

All agencies of the Commonwealth shall provide assistance to the joint subcommittee, upon request.

The joint subcommittee shall complete its work by November 30, 2002, and shall submit its written findings and recommendations to the Governor and the 2003 Session of the General Assembly as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents.

Implementation of this resolution is subject to subsequent approval and certification by the Joint Rules Committee. The Committee may withhold expenditures or delay the period for the conduct of the study.