Authority: Discretionary Inclusion.

A. The Governor is hereby authorized to allocate sums from this appropriation, in addition to an amount not to exceed $1,000,000 from the unappropriated balance derived by subtracting the general fund appropriations from the projected general fund revenues in this act, to provide for supplemental funds pursuant to paragraph B hereof. Transfers from this Item shall be made only when (1) sufficient funds are not available within the agency's appropriation and (2) additional funds must be provided prior to the end of the next General Assembly Session.

B. The Governor is hereby authorized to allocate such sums from this appropriation as he may determine to be needed for the following purposes:

1. To address the six conditions listed in § 4-1.03 a 3 of this act.

2. To provide for unbudgeted and unavoidable increases in costs to state agencies for essential commodities and services which cannot be absorbed within agency appropriations.

3. To secure federal funds in the event that additional matching funds are needed for Virginia to participate in the federal Superfund program. In the event that the Environmental Protection Agency should declare the abandoned Kim-Stan solid waste site as a national priority site under the Superfund program, the Governor shall provide such matching funds as may be necessary to initiate the timely remediation of this site.

C. The Department of Planning and Budget shall submit a quarterly report of any disbursements made from, commitments made against, and requests made for such sums authorized for allocation pursuant to paragraph B to the Chairmen of the House Appropriations and Senate Finance Committees. This report shall identify each of the conditions specified in paragraph B for which the transfer is made.

D. Any unexpended balance remaining in this Item on June 30, 1999, shall be carried forward on the books of the Comptroller and shall be available for expenditure in the second year of the current biennium. Any unexpended balance remaining in this Item on June 30, 2000, shall be carried forward on the books of the Comptroller and shall be available for expenditures in the next biennium.

E.1. This appropriation includes $30,450,000 the first year to be used at the discretion of the Governor, subject to prior consultation with the Chairmen of the House Appropriations and Senate Finance Committees, to attract economic development prospects to locate or expand in Virginia. Funds appropriated for the purposes of this paragraph shall be deposited to the Governor's Development Opportunity Fund, as established in § 2.1-51.6:5, Code of Virginia, on July 1 of each fiscal year.

2. The Governor may allocate these funds as grants or loans to political subdivisions. Loans shall be approved by the Governor and made in accordance with procedures established by the Virginia Economic Development Partnership and approved by the State Comptroller. Loans shall be interest-free unless otherwise determined by the Governor and shall be repaid to the general fund of the state treasury. The Governor may establish the interest rate to be charged, otherwise, any interest charged shall be at market rates as determined by the State Treasurer and shall be indicative of the duration of the loan. The Virginia Economic Development Partnership shall be responsible for monitoring repayment of such loans and reporting the receivables to the State Comptroller as required.

3. Funds may be used for public and private utility extension or capacity development on and off site; road, rail, or other transportation access costs beyond the funding capability of existing programs; site acquisition; grading, drainage, paving, and other activity required to prepare a site for construction; construction or build-out of publicly-owned buildings; grants or loans to an Industrial Development Authority, Housing and Redevelopment Authority, or other political subdivision pursuant to their duties or powers; training; or anything else permitted by law.

4. In addition to any award provided pursuant to this paragraph E, the Governor is hereby authorized to increase the general fund appropriation in this Item by an amount not to exceed $3,000,000 from the unappropriated balance derived by subtracting the general fund appropriations from the projected general fund revenues in this act, to assist the City of Norfolk in attracting a major employer investing over $21,000,000 and creating some 330 jobs.

F. The Governor is authorized to transfer $112,500 $79,000 the first year and $2,662,500 $1,218,750 the second year to the Department of Mines, Minerals and Energy for solar photovoltaic manufacturing incentive grants in accordance with § 45.1-392, Code of Virginia.

G. This appropriation includes $2,608,200 the first year for matching funds as required by the Water Resources Development Act of 1986 (Public Law 99-662), as amended, for a 50-foot deep draft anchorage construction project proposed by the U.S. Army corps of Engineers. In the event the dredging project is not completed by June 30, 2001, the unexpended balances are hereby reappropriated for completion of the project. If the construction of the anchorage project occurs, future maintenance costs of $515,000 will be provided beginning six years after completion of the construction.

H. This appropriation includes $250,000 the first year and $250,000 the second year as matching funds as required by the Water Resources Development Act of 1986 (Public Law 99-662), as amended, for a study of the eastward expansion of the federally owned Craney Island Dredged Material Management Area. The study is the result of a resolution passed on September 24, 1997, by the U.S. House of Representatives, Committee on Transportation and Infrastructure. Matching funds for the study shall be provided through FY 2001 when the study is expected to be concluded.

I. Out of the amounts for this Item shall be provided $250,000 the first year and $250,000 the second year from the general fund to the Innovative Technology Authority for the Virginia Commercial Space Flight Authority. The appropriations shall be used for operating expenses, including managing the financing and development of the Spaceport and other necessary business development functions.

J. This appropriation includes $1,800,000 the first year and $2,600,000 the second year from the general fund for distribution by the State Council of Higher Education to the need-based resident undergraduate financial assistance programs of the public institutions of higher education. The General Assembly's objective for financial assistance is to meet 50 percent of remaining need of eligible students. The State Council in the first year and the second year shall distribute, consistent with this objective, the total of the financial aid appropriations of the public institutions according to latest available student information.

K. This appropriation includes a reduction of $844,788 the first year and a reduction of $1,713,851 the second year from the general fund for distribution by the Department of Planning and Budget among the public institutions of higher education to reflect more recent data on faculty participation in optional retirement programs. A lower than actual rate of participation was used in developing the base for calculating faculty salary increases.

L1. The President of the Center for Innovative Technology (CIT) shall assist the Virginia Economic Development Partnership in issuing a loan from the Governor's Development Opportunity Fund, not to exceed $2,800,000 in FY 1999 for the design, development, operation, and testing of a pressure-based, ballast water microorganism control system in Hampton Roads. Appropriate performance measures shall be developed by the Center for Innovative Technology with the assistance of Old Dominion University, through the Center for Advanced Ship Repair and Maintenance (CASRM).

2. These conditions shall be met before a loan can be made: (1) a local government, local industrial development authority, or political subdivision shall sponsor the project; (2) the applicant shall follow the protocols used in CIT's Technology Awards Program, specifically the provisions concerning technical feasibility and business plans; (3) the terms, repayment schedule, amount of interest, and use of the loan shall be articulated in a memorandum of agreement to be approved by the Governor between the loan applicant, the sponsoring political subdivision, and the Virginia Economic Development Partnership; and (4) preference shall be given to applicants with cash or in-kind match.

M. Out of the amounts in this Item, the Governor may transfer up to $100,000 to the Virginia Marine Products Board for the promotion of Virginia seafood.

N. This appropriation includes $8,000,000 the first year and $3,200,000 $12,980,000 the second year from the general fund to be used for the purposes as provided for in § 3 of Senate Bill 442, 1998 Session of the General Assembly Chapter 790, Acts of Assembly of 1998. In addition to the second year appropriation and upon certification to the Governor from the Secretary of Commerce and Trade that a qualified shipbuilder has met the conditions for reimbursement as set forth in § 3 of Senate Bill 442, 1998 Session of the General Assembly, the Governor shall submit to the 1999 Session of the General Assembly amendments to the 1998 Appropriation Act (House Bill 30) providing for an additional grant award payable to such qualified builder in an amount not to exceed $30,000,000, in the aggregate, for the period July 1, 1999, through June 30, 2000These funds shall be disbursed to the local industrial development authority, as specified in Chapter 790, only to the extent that they are necessary to meet payment obligations related to the design and construction of the Advanced Shipbuilding and Carrier Integration Center, and only to the extent that such payment obligations are consistent with the provisions of the Memorandum of Agreement required by the cited chapter.

O. The Governor is hereby authorized to expend in the second year an amount not to exceed $3,000,000 from this Item to assist the Commonwealth in attracting a major employer investing over $50,000,000 and creating more than 1,000 jobs.

P. The Governor is hereby authorized to expend in the second year an amount not to exceed $3,000,000 from this Item to assist the City of Norfolk in attracting a major employer investing over $21,000,000 and creating some 330 jobs.

Q.1. Out of this appropriation, $150,000 the first year shall be provided from the general fund for a study to be conducted by a Virginia institution of higher education on the state's workforce development needs, including but not limited to, high-technology labor needs and apprenticeship programs. The study shall include, but not be limited to, an inventory of workforce training services, a description of what the high-technology labor needs of the Commonwealth are likely to be during the next five years, and a recommendation on how the Commonwealth can best meet the needs related to workforce training.

2. The Secretary of Commerce and Trade, with assistance from the Secretaries of Finance, Technology, and Education, shall make recommendations to the Governor and to the Chairmen of the House Appropriations and Senate Finance Committees by November 1, 1999. The Department of Planning and Budget shall serve as project manager for this study.

R. This appropriation includes $500,000 the second year from the general fund to be used at the discretion of the Governor to attract film industry production activity in the Commonwealth. Funds appropriated for the purposes of this paragraph shall be deposited to the Governor's Motion Picture Opportunity Fund on July 1 of the fiscal year, contingent upon the enactment of legislation in the 1999 Session of the General Assembly to create the fund.

S. Out of the amounts in this Item shall be provided $500,000 the second year from the general fund to establish a statewide workforce training loan program. The monies shall be paid to the Student Loan Marketing Association (Sallie Mae) to establish a loan loss reserve fund, contingent upon the enactment of legislation for that purpose in the 1999 Session of the General Assembly. The Student Loan Marketing Association would provide loans for technology training courses based on the amounts in the fund.