Secretary of Commerce and Trade (192)

Authority: Title 2.2, Chapter 2, Article 3; §2.2-201, Code of Virginia.

A. It is the intent of the General Assembly that state programs providing financial, technical, or training assistance to local governments for economic development projects or directly to businesses seeking to relocate or expand operations in Virginia should not be used to help a company relocate or expand its operations in one or more Virginia communities when the same company is simultaneously closing facilities in other Virginia communities. It is the responsibility of the Secretary of Commerce and Trade to enforce this policy and to inform the Chairmen of the Senate Finance and House Appropriations Committees in writing of the justification to override this policy for any exception.

B. The Secretary shall report to the Chairmen of the Senate Finance and the House Appropriations and Finance Committees by October 30 of each year, on the use and efficacy of state incentives in creating investments and jobs in Virginia in the prior fiscal year. The two-part report shall identify, by planning districts, the following items using the most recent data available: (1) the number of companies receiving business incentives; (2) the dollar amounts received by each company for each incentive; (3) the number of jobs to be created; (4) the average salary; and (5) the amount of investment agreed upon by the state and the company as a condition for receiving the incentives. For the purposes of this report, the incentives to be reviewed in the study are those state incentives included in the Virginia Economic Development Partnership publication, “Virginia Guide to Business Incentives” as well as business incentive programs authorized and funded by the General Assembly. The first part of the study shall not identify by name the companies participating in the state’s incentive programs. In the second part of the report, organized by planning district, the Secretary shall include the actual number of jobs created, average salary, and level of investments made by each company awarded incentives in the prior fiscal year; if not prohibited by state law or by memorandum of agreement or understanding between the Commonwealth and the company, the names of the companies awarded incentives shall be included. In addition, the report shall also identify the specific actions taken by the state as part of its business incentive program to create private investments and jobs in rural areas of the state and the success of these actions.