2014 Virginia Code
Title 59.1 - Trade and Commerce
§ 59.1-284.14:1. Grants for capital investments made and jobs created by qualified 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 after October 1, 2004, in an eligible city, which denotes investment in buildings and equipment by a qualified semiconductor manufacturer, its related companies, or other entities with which it has a contractual, licensing, leasing or other agreement. Such new capital investment shall not include any capital investment made before October 1, 2004, and shall not include any investment in buildings and equipment that also qualifies or has qualified as cumulative investment for purposes of the grant program established under § 59.1-284.14.

"New full-time job" means employment of an indefinite duration in an eligible city, created as the direct result of new capital investment, for which the standard fringe benefits are paid by the qualified semiconductor manufacturer, requiring a minimum of either (i) 35 hours of an employee's time 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 hours per year. Seasonal or temporary positions, and positions created when a job function is shifted from an existing location in the Commonwealth shall not qualify as new full-time jobs under this section. Other positions including contractors, suppliers, and multiplier or spin-off jobs may be considered new full-time jobs, if so designated in the Memorandum of Understanding between such manufacturer and the Commonwealth.

"Qualified semiconductor manufacturer" means a qualified manufacturer, as defined in § 59.1-284.14, and its related companies that manufacture semiconductor-related products in an eligible city, either directly or through contractual, licensing, leasing, or other agreements with other entities.

"Secretary" means the Secretary of Commerce and Trade or his designee.

B. Any qualified semiconductor manufacturer shall be eligible for annual grant payments under this section if the following conditions are met:

1. If such manufacturer (i) makes new capital investments in equipment of at least $400 million in an eligible city by January 1, 2006, but in no event later than January 1, 2008, and (ii) such investment results in the creation and substantial retention throughout the grant payment period of 320 new full-time jobs in such city and results in an employment level that exceeds the level as of August 1, 2004, by at least 320 full-time employees, such manufacturer shall be eligible for a grant of $8 million, to be paid in five equal annual payments of $1.6 million. Such annual payments shall commence beginning five years after the date the manufacturer certifies to the Commonwealth that the $400 million in new capital investments has been made; however, if the manufacturer has failed to satisfy the condition regarding the creation of new full-time jobs as set forth in clause (ii) by the end of the calendar year immediately following the year that the manufacturer satisfied the condition regarding the new capital investment as set forth in clause (i), then the annual payments shall not commence until five years after the date the manufacturer satisfies the condition regarding the creation of new full-time jobs.

2. If such manufacturer (i) makes new capital investments of at least $800 million, including at least $50 million for real property, which $800 million includes the $400 million of new capital investments required to qualify for a grant under subdivision 1, in an eligible city by January 1, 2007, but in no event later than January 1, 2010, and (ii) such investment results in the creation and substantial retention throughout the grant payment period of a cumulative total of at least 640 new full-time jobs in such city, which 640 new full-time jobs includes the 320 new full-time jobs required to qualify for a grant under subdivision 1 and results in an employment level that exceeds 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 annual payments shall commence beginning five years after the date the manufacturer certifies to the Commonwealth that the additional increment of $400 million in new capital investments has been made; however, if the manufacturer fails to satisfy the condition regarding the creation of new full-time jobs as set forth in clause (ii) by the end of the calendar year immediately following the year that the manufacturer satisfied the condition regarding the new capital investment as set forth in clause (i), then the annual payments shall not commence until five years after the date the manufacturer satisfies the condition regarding the creation of new full-time jobs.

3. If such manufacturer (i) makes new capital investments of at least $1.2 billion, including at least $100 million for real property, which $1.2 billion includes the $800 million of new capital investments required to qualify for grants under subdivisions 1 and 2, in an eligible city by January 1, 2008, but in no event later than January 1, 2012, and (ii) such investment results in the creation and substantial retention throughout the grant payment period of a cumulative total of at least 860 new full-time jobs in such city, which 860 new full-time jobs includes the 640 new full-time jobs required to qualify for grants under subdivisions 1 and 2 and results in an employment level that exceeds the level as of August 1, 2004, by at least 860 full-time employees, such manufacturer shall be eligible for an additional grant of $8 million, to be paid in five equal annual payments of $1.6 million. Such annual payments shall commence beginning five years after the date the manufacturer certifies to the Commonwealth that the additional increment of $400 million in new capital investments has been made; however, if the manufacturer fails to satisfy the condition regarding the creation of new full-time jobs as set forth in clause (ii) by the end of the calendar year immediately following the year that the manufacturer satisfied the condition regarding the new capital investment as set forth in clause (i), then the annual payments shall not commence until five years after the date the manufacturer satisfies the condition regarding the creation of new full-time jobs.

4. The total amount of grants to all such qualified semiconductor manufacturers under subdivisions 1 through 3 shall not exceed $27 million. In addition, no grant shall be paid to a qualified semiconductor manufacturer until the Senate Committee on Finance and the House Committees on Appropriations and Finance review the unsigned written Memorandum of Understanding between such manufacturer and the Commonwealth, with such Memorandum of Understanding specifying the conditions of grant eligibility.

C. Any new capital investments made after December 31, 2011, shall not be eligible for grants under this section.

D. Any qualified semiconductor manufacturer entitled to apply for a grant under this section shall provide evidence, satisfactory to the Secretary, of new capital investment and employment levels achieved in an eligible city during a particular calendar year. The application and evidence shall be filed by such manufacturer with the Secretary in person or by mail no later than March 31 (or such later date determined by the Secretary in his sole discretion) each year it is eligible for grants in the calendar year or years following the calendar year in which the conditions of subsection B have been met. Failure to meet the filing deadline shall render the applicant ineligible 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 Secretary shall certify to (i) the Comptroller and (ii) each applicant the amount of the grant to which such applicant is entitled under this section for the calendar year. Payment of such grant shall be made by check issued by the State Treasurer on warrant of the Comptroller within 60 days of such certification.

F. As a condition of receipt of a grant, a qualified semiconductor manufacturer shall make available to the Secretary for inspection, upon his request, all relevant and applicable documents to determine whether the qualified semiconductor manufacturer meets the requirements for the receipt of grants as set forth in this section and subject to a Memorandum of Agreement between a qualified semiconductor manufacturer and the Commonwealth. All such documents appropriately identified by the qualified semiconductor manufacturer shall be considered confidential and proprietary. The Comptroller shall not draw any warrants to issue checks for this program without a specific legislative appropriation as specified in conditions and restrictions on expenditures in the appropriation act.

G. The grants that may be paid under this section shall be paid from the Semiconductor Memory or Logic Wafer Manufacturing Performance Grant Fund established under § 59.1-284.14, subject to appropriations to such fund by the General Assembly.

2001, c. 863; 2005, c. 392.