59.1-284.14:1 - Grants for capital investments made and jobs created by qualified semiconductor manufacturer...
§ 59.1-284.14:1. Grants for capital investments made and jobs created byqualified semiconductor manufacturers.
A. As used in this section:
"Eligible city" means the same as that term is defined in § 59.1-284.14.
"New capital investment" means a capital investment made on or afterOctober 1, 2004, in an eligible city, which denotes investment in buildingsand equipment by a qualified semiconductor manufacturer, its relatedcompanies, or other entities with which it has a contractual, licensing,leasing or other agreement. Such new capital investment shall not include anycapital investment made before October 1, 2004, and shall not include anyinvestment in buildings and equipment that also qualifies or has qualified ascumulative investment for purposes of the grant program established under §59.1-284.14.
"New full-time job" means employment of an indefinite duration in aneligible city, created as the direct result of new capital investment, forwhich the standard fringe benefits are paid by the qualified semiconductormanufacturer, requiring a minimum of either (i) 35 hours of an employee'stime per week for the entire normal year of such manufacturer's operations,which "normal year" must consist of at least 48 weeks or (ii) 1,680 hoursper year. Seasonal or temporary positions, and positions created when a jobfunction is shifted from an existing location in the Commonwealth shall notqualify as new full-time jobs under this section. Other positions includingcontractors, suppliers, and multiplier or spin-off jobs may be considered newfull-time jobs, if so designated in the Memorandum of Understanding betweensuch manufacturer and the Commonwealth.
"Qualified semiconductor manufacturer" means a qualified manufacturer, asdefined in § 59.1-284.14, and its related companies that manufacturesemiconductor-related products in an eligible city, either directly orthrough contractual, licensing, leasing, or other agreements with otherentities.
"Secretary" means the Secretary of Commerce and Trade or his designee.
B. Any qualified semiconductor manufacturer shall be eligible for annualgrant payments under this section if the following conditions are met:
1. If such manufacturer (i) makes new capital investments in equipment of atleast $400 million in an eligible city by January 1, 2006, but in no eventlater than January 1, 2008, and (ii) such investment results in the creationand substantial retention throughout the grant payment period of 320 newfull-time jobs in such city and results in an employment level that exceedsthe level as of August 1, 2004, by at least 320 full-time employees, suchmanufacturer shall be eligible for a grant of $8 million, to be paid in fiveequal annual payments of $1.6 million. Such annual payments shall commencebeginning five years after the date the manufacturer certifies to theCommonwealth that the $400 million in new capital investments has been made;however, if the manufacturer has failed to satisfy the condition regardingthe creation of new full-time jobs as set forth in clause (ii) by the end ofthe calendar year immediately following the year that the manufacturersatisfied the condition regarding the new capital investment as set forth inclause (i), then the annual payments shall not commence until five yearsafter the date the manufacturer satisfies the condition regarding thecreation of new full-time jobs.
2. If such manufacturer (i) makes new capital investments of at least $800million, including at least $50 million for real property, which $800 millionincludes the $400 million of new capital investments required to qualify fora grant under subdivision 1, in an eligible city by January 1, 2007, but inno event later than January 1, 2010, and (ii) such investment results in thecreation and substantial retention throughout the grant payment period of acumulative total of at least 640 new full-time jobs in such city, which 640new full-time jobs includes the 320 new full-time jobs required to qualifyfor a grant under subdivision 1 and results in an employment level thatexceeds the level as of August 1, 2004, by at least 640 full-time employees,such manufacturer shall be eligible for an additional grant of $11 million,to be paid in five equal annual payments of $2.2 million. Such annualpayments shall commence beginning five years after the date the manufacturercertifies to the Commonwealth that the additional increment of $400 millionin new capital investments has been made; however, if the manufacturer failsto satisfy the condition regarding the creation of new full-time jobs as setforth in clause (ii) by the end of the calendar year immediately followingthe year that the manufacturer satisfied the condition regarding the newcapital investment as set forth in clause (i), then the annual payments shallnot commence until five years after the date the manufacturer satisfies thecondition regarding the creation of new full-time jobs.
3. If such manufacturer (i) makes new capital investments of at least $1.2billion, including at least $100 million for real property, which $1.2billion includes the $800 million of new capital investments required toqualify for grants under subdivisions 1 and 2, in an eligible city by January1, 2008, but in no event later than January 1, 2012, and (ii) such investmentresults in the creation and substantial retention throughout the grantpayment period of a cumulative total of at least 860 new full-time jobs insuch city, which 860 new full-time jobs includes the 640 new full-time jobsrequired to qualify for grants under subdivisions 1 and 2 and results in anemployment level that exceeds the level as of August 1, 2004, by at least 860full-time employees, such manufacturer shall be eligible for an additionalgrant of $8 million, to be paid in five equal annual payments of $1.6million. Such annual payments shall commence beginning five years after thedate the manufacturer certifies to the Commonwealth that the additionalincrement of $400 million in new capital investments has been made; however,if the manufacturer fails to satisfy the condition regarding the creation ofnew full-time jobs as set forth in clause (ii) by the end of the calendaryear immediately following the year that the manufacturer satisfied thecondition regarding the new capital investment as set forth in clause (i),then the annual payments shall not commence until five years after the datethe manufacturer satisfies the condition regarding the creation of newfull-time jobs.
4. The total amount of grants to all such qualified semiconductormanufacturers under subdivisions 1 through 3 shall not exceed $27 million. Inaddition, no grant shall be paid to a qualified semiconductor manufactureruntil the Senate Committee on Finance and the House Committees onAppropriations and Finance review the unsigned written Memorandum ofUnderstanding between such manufacturer and the Commonwealth, with suchMemorandum of Understanding specifying the conditions of grant eligibility.
C. Any new capital investments made after December 31, 2011, shall not beeligible for grants under this section.
D. Any qualified semiconductor manufacturer entitled to apply for a grantunder this section shall provide evidence, satisfactory to the Secretary, ofnew capital investment and employment levels achieved in an eligible cityduring a particular calendar year. The application and evidence shall befiled by such manufacturer with the Secretary in person or by mail no laterthan March 31 (or such later date determined by the Secretary in his solediscretion) each year it is eligible for grants in the calendar year or yearsfollowing the calendar year in which the conditions of subsection B have beenmet. Failure to meet the filing deadline shall render the applicantineligible to receive a grant for such calendar year. For filings by mail,the postmark cancellation shall govern the date of the filing determination.
E. Within 90 days after the filing deadline in subsection D, the Secretaryshall certify to (i) the Comptroller and (ii) each applicant the amount ofthe grant to which such applicant is entitled under this section for thecalendar year. Payment of such grant shall be made by check issued by theState Treasurer on warrant of the Comptroller within 60 days of suchcertification.
F. As a condition of receipt of a grant, a qualified semiconductormanufacturer shall make available to the Secretary for inspection, upon hisrequest, all relevant and applicable documents to determine whether thequalified semiconductor manufacturer meets the requirements for the receiptof grants as set forth in this section and subject to a Memorandum ofAgreement between a qualified semiconductor manufacturer and theCommonwealth. All such documents appropriately identified by the qualifiedsemiconductor manufacturer shall be considered confidential and proprietary.The Comptroller shall not draw any warrants to issue checks for this programwithout a specific legislative appropriation as specified in conditions andrestrictions on expenditures in the appropriation act.
G. The grants that may be paid under this section shall be paid from theSemiconductor Memory or Logic Wafer Manufacturing Performance Grant Fundestablished under § 59.1-284.14, subject to appropriations to such fund bythe General Assembly.
(2001, c. 863; 2005, c. 392.)