59.1-284.20 - Aerospace Engine Manufacturing Performance Grant Program; eligible county.
§ 59.1-284.20. Aerospace Engine Manufacturing Performance Grant Program;eligible county.
A. As used in this section:
"Affiliate" means with respect to any person, any other person directly orindirectly controlling, controlled by, or under common control with suchperson. For purposes of this definition, "control" (including "controlledby" and "under common control with") shall mean the power, directly orindirectly, to direct or cause the direction of the management and policiesof such person whether through ownership or voting securities or by contractor otherwise.
"Capital investment" means an investment in real property, tangiblepersonal property, or both, within the Commonwealth that is capitalized.
"Eligible county" means Prince George County.
"Grant" means the aerospace engine manufacturing performance grant asdescribed in this section.
"Manufacture of aerospace engines" means (i) the manufacture or assemblyand test of aircraft engines and engine parts; (ii) the design or developmentof aircraft engines and engine parts; or (iii) the manufacturing activitiesof a private company described under 2007 index number 336412 of the NorthAmerican Industry Classification System.
"Memorandum of understanding" means a performance agreement entered intoaccordance with a memorandum of understanding entered into on November 20,2007, among a qualified manufacturer, the Commonwealth, and others settingforth the requirements for capital investment and the creation of newfull-time jobs that will make the qualified manufacturer eligible for a grantunder this section.
"New full-time job" means employment of an indefinite duration in aneligible county, created as the direct result of new capital investment, forwhich the average annual wage is at least equal to the prevailing averageannual wage in an eligible county and for which the standard fringe benefitsare paid by the qualified manufacturer, requiring a minimum of either (i) 35hours of an employee's time per week for the entire normal year of suchmanufacturer's operations, which "normal year" must consist of at least 48weeks or (ii) 1,680 hours per year. Seasonal or temporary positions, andpositions created when a job function is shifted from an existing location inthe Commonwealth shall not qualify as new full-time jobs under this section.Other positions, which may or may not be of indefinite duration, includingsupplemental employees of affiliates, subsidiaries, joint ventures,contractors, or subcontractors may be considered new full-time jobs, if sodesignated in the memorandum of understanding between such manufacturer, theCommonwealth, and others as such memorandum of understanding was in effect onNovember 20, 2007.
"Qualified manufacturer" means a manufacturer that (i) is expected to makea capital investment of at least $500 million by June 30, 2023, in aneligible county related to the manufacture of aerospace engines and (ii) isexpected to create at least 540 jobs in an eligible county for themanufacture of aerospace engines or activities ancillary or supportive ofsuch manufacture.
"Secretary" means the Secretary of Commerce and Trade or his designee.
B. Any qualified manufacturer that, after July 1, 2008, first beginsoperations in an eligible county shall be eligible to receive a grant eachfiscal year beginning with the Commonwealth's fiscal year starting on July 1,2013, and ending with the Commonwealth's fiscal year starting on July 1,2022, unless such time frame is extended in accordance with subsection E. Thegrants under this section (i) shall be paid, subject to appropriation by theGeneral Assembly, from a fund entitled the Aerospace Engine ManufacturingPerformance Grant Fund, which Fund is hereby established on the books of theComptroller, (ii) shall not exceed $35 million in the aggregate, and (iii)shall be paid to the qualified manufacturer during each fiscal yearcontingent upon the qualified manufacturer meeting the requirements for theaggregate (a) number of new full-time jobs created and the substantialretention of the same and (b) amount of the capital investment made andsubstantially retained as set forth in the memorandum of understanding.
C. If grants to be paid to qualified manufacturers under this section in afiscal year exceed the aggregate amount available in the Aerospace EngineManufacturing Performance Grant Fund for that year, each qualifiedmanufacturer's grants for the year shall equal the amount of grants to whichthe qualified manufacturer would otherwise be eligible multiplied by afraction. The numerator of the fraction shall equal the aggregate amountavailable for payment from the Aerospace Engine Manufacturing PerformanceGrant Fund for that fiscal year, and the denominator shall equal theaggregate dollar amount of grants to which all qualified manufacturersotherwise would be eligible for such fiscal year.
The aggregate amount of the grants payable under this section shall besubject to the following requirements and limitations:
1. Grants shall be awarded after July 1, 2013, and before July 1, 2023,unless such time frame is extended in accordance with subsection E.
2. The amount of the grant to be paid in each fiscal year shall beconditional upon the qualified manufacturer meeting the requirements for the(i) aggregate number of new full-time jobs created and the substantialretention of the same throughout the calendar year that immediately precedesthe end of such fiscal year, and (ii) aggregate amount of the capitalinvestment made and substantially retained as of the last day of the calendaryear that immediately precedes the end of such fiscal year as set forth inthe memorandum of understanding entered into on November 20, 2007. Grantsshall be paid based upon such requirements as agreed to on November 20, 2007,regardless if such memorandum of understanding is later modified, amended,superseded, or otherwise changed.
3. The aggregate amount of grants that may be awarded in a particular fiscalyear shall not exceed the following:
a. $5.5 million for the Commonwealth's fiscal year beginning July 1, 2013;
b. $11 million, less the total amount of grants previously awarded pursuantto this subsection, for the Commonwealth's fiscal year beginning July 1, 2014;
c. $14 million, less the total amount of grants previously awarded pursuantto this subsection, for the Commonwealth's fiscal year beginning July 1, 2015;
d. $17 million, less the total amount of grants previously awarded pursuantto this subsection, for the Commonwealth's fiscal year beginning July 1, 2016;
e. $20 million, less the total amount of grants previously awarded pursuantto this subsection, for the Commonwealth's fiscal year beginning July 1, 2017;
f. $23 million, less the total amount of grants previously awarded pursuantto this subsection, for the Commonwealth's fiscal year beginning July 1, 2018;
g. $26 million, less the total amount of grants previously awarded pursuantto this subsection, for the Commonwealth's fiscal year beginning July 1, 2019;
h. $29 million, less the total amount of grants previously awarded pursuantto this subsection, for the Commonwealth's fiscal year beginning July 1, 2020;
i. $32 million, less the total amount of grants previously awarded pursuantto this subsection, for the Commonwealth's fiscal year beginning July 1,2021; and
j. $35 million, less the total amount of grants previously awarded pursuantto this subsection, for the Commonwealth's fiscal year beginning July 1, 2022.
4. Grants provided by this section shall not exceed $35 million in theaggregate.
D. Any qualified manufacturer applying for a grant under this section shallprovide evidence, satisfactory to the Secretary, of (i) the aggregate numberof new full-time jobs created and the substantial retention of the samethroughout the calendar year that immediately precedes the end of the fiscalyear in which the grant is to be paid, and (ii) the aggregate amount of thecapital investment made and substantially retained as of the last day of thecalendar year that immediately precedes the end of the fiscal year in whichthe grant is to be paid. The application and evidence shall be filed with theSecretary in person or by mail no later than April 1 each year following thecalendar year in which the qualified manufacturer meets such aggregate newfull-time job requirements and aggregate capital investment. Failure to meetthe filing deadline shall result in a deferral of a scheduled grant paymentset forth in subsection C. For filings by mail, the postmark cancellationshall govern the date of the filing determination.
E. The memorandum of understanding may provide that if a grant payment hasbeen deferred for any reason, including the initial failure to meet theaggregate capital investment and the aggregate new full-time job requirementsset forth in the memorandum of understanding or the occurrence of anysubstantial reduction in such new full-time job requirements or capitalinvestment requirements after such requirements have been met but before thegrant payment has been made, payment in a subsequent fiscal year for whichsuch requirements have been met for the immediately preceding calendar yearshall include both the deferred payment and the scheduled grant payment asprovided in subsection C.
F. Within 30 days after the filing deadline in subsection D, the Secretaryshall certify to (i) the Comptroller and (ii) each qualified manufacturer theamount of the grant to which such qualified manufacturer is entitled underthis section for payment in the current fiscal year. Payment of such grantshall be made by check issued by the Treasurer of Virginia on warrant of theComptroller by June 30 of such fiscal year.
G. As a condition of receipt of a grant, a qualified manufacturer shall makeavailable to the Secretary or his designee for inspection upon his requestall relevant and applicable documents to determine whether the qualifiedmanufacturer has met the requirements for the receipt of grants as set forthin this section and subject to the memorandum of understanding. TheComptroller shall not draw any warrants to issue checks for the grant programunder this section without a specific appropriation for the same. All suchdocuments appropriately identified by the qualified manufacturer shall beconsidered confidential and proprietary.
(2008, cc. 256, 630.)