House Economic Development Initiative

Item 112.10 #1h

Language
Page 99, line 2, strike "$235,000" and insert "$435,000".
Page 99, line 2, strike "$18,623,000" and insert "$28,283,767".
Page 99, strike lines 5 through 55, and insert:
"A.  This item includes funding for components of an economic and community development initiative totaling $200,000 in the first year and $9,657,767 in the second year from the general fund.
B.  Out of the amounts for Economic and Community Development Services shall be provided $50,000 the first year from the general fund to the Office of the Secretary of Agriculture and Forestry which shall be used to fund programs to develop early detection and monitoring tools and/or research for fungicide efficacy for Asian soybean rust.
C.  Out of the amounts for Economic and Community Development Services shall be provided an additional $50,000 the first year and $50,000 the second year from the general fund to the Department of Agriculture and Consumer Services to match federal funding for the coyote damage control program.  These amounts will ensure that all available federal funding is fully utilized.
D.  Out of the amounts for Economic and Community Development Services shall be provided $500,000 the second year from the general fund to the Department of Agriculture and Consumer Services to support the weights and measures program activities.  
E.  Out of the amounts for Economic and Community Development Services shall be provided an additional $600,000 the second year from the general fund to the Department of Forestry to match the tax paid by the forest industry for reforestation efforts, pursuant to the provisions of §10.1-1176 and §58.1-1605, Code of Virginia.  In combination with funding provided in Item 108, total funding for this program in the second year is $850,000 from the general fund.
F. Out of the amounts for Economic and Community Development Services shall be provided $709,418 the second year from the general fund to the Department of Housing and Community Development to supplement funding made available to the Planning District Commissions in conformance with the Regional Cooperation Act.  The Department shall distribute these additional funds in such a manner as to bring each planning district commission's appropriation to a minimum level of $100,000 in the second year.
G.  Out of the amounts for Economic and Community Development Services shall be provided $358,000 the second year from the general fund to the Department of Conservation and Recreation for the operations and maintenance of 104 flood control dams owned by soil and water conservation districts.
H. Out of the amounts for Economic and Community Development Services shall be provided $350,000 the second year from the general fund to the Innovative Technology Authority which shall be used to create a Broadband Expansion Program to facilitate the development and delivery of demand generation and infrastructure deployment activities throughout the rural and underserved areas of the Commonwealth.
I. Out of the amounts for Economic and Community Development Services shall be provided $720,349 from the general fund in the second year to supplement funding provided in Item 506 H. to support the Commonwealth's continued commitment to paying the original debt service issued to establish the Virginia Horse Center.  All debt service above that amount is the sole responsibility of the Virginia Horse Center Foundation.  It is the intent of the General Assembly that the remaining debt service costs for the initial debt issuance shall be provided through local resources.  All debt service requirements in fiscal years 2011 and beyond shall be the sole responsibility of the Virginia Horse Center Foundation.  Each year the Auditor of Public Accounts shall conduct a financial audit of the Virginia Horse Center Foundation and certify that the accounts of the Foundation are maintained in a satisfactory fashion prior to receiving a general fund appropriation in the following fiscal year.
J.  Out of the amounts for Economic and Community Development Services shall be provided $2,000,000 from the general fund in the second year to the Virginia Tourism Authority to supplement funding provided in Item 134 to promote the Virginia tourism industries.  These funds shall be used, among other purposes, to initiate strategies to expand growth tourism industries such as Virginia history tours, wine and epicurean tours and other packaged travel itineraries.
K.  Out of the amounts for Economic and Community Development Services shall be provided $150,000 from the general fund in the second year to the Virginia Tourism Authority to supplement funding provided in Item 134 for the "See Virginia First" cooperative advertising program operated by the Virginia Association of Broadcasters to leverage advertising dollars to promote Virginia tourism sites.
L.  Out of the amounts for Economic and Community Development Services shall be provided $100,000 from the general fund in the second year for the "See Virginia Parks" cooperative advertising program operated by the Virginia Association of -Broadcasters to leverage advertising dollars to promote Virginia's park system.
M.  Out of the amounts for Economic and Community Development Services shall be provided $100,000 from the general fund in the second year to the Virginia Tourism Authority to fund the costs of updating the Virginia Travel Guide for Persons with Disabilities.
N.  Out of the amounts for Economic and Community Development Services shall be provided $1,000,000 from the general fund in the second year to the Virginia Tourism Authority for film promotion activities.  These funds shall be used for history-themed theatrical or television productions with distribution contracts that are intended to increase awareness about Virginia's significant role in the country's history. These productions will bring increased awareness to history and other topics and serve as a way to increase visitation to related tourism sites.   To be eligible for funding, a production company shall film the majority of the project in Virginia and utilize Virginia labor, goods and services.
O.   Out of the amounts for Economic and Community Development Services shall be provided $500,000 from the general fund in the second year to the Virginia Tourism Authority which shall be used to make grants to regional and local tourism authorities and other tourism entities to support their efforts.  Of this amount, $75,000 shall be directed to support the activities of the Coalfield Regional Tourism Authority.
P.   Out of the amounts for Economic and Community Development Services shall be provided $250,000 from the general fund in the second year to the Virginia Tourism Authority which shall be used to support reinstatement of the "On the Waterfront" tourism initiative in the Hampton Roads Region.  Such funds shall be used to match, on a $1.00 for $1.00 basis, any local contributions to promote visitation to the region as a whole.
Q. Out of the amounts for Economic and Community Development Services shall be provided $379,000 the second year from the general fund to the Virginia Community College System to complete development of a new advanced manufacturing/packing program at Dabney Lancaster Community College.
R.  Out of the amounts for Economic and Community Development Services shall be provided $100,000 the second year from the general fund to Virginia Tech to support the Sloan Foundation Forestry Industries Center.
S.  Out of the amounts for Economic and Community Development Services shall be provided $394,000 the second year from the general fund to the Virginia Community College System to be provided to Virginia's Philpott Manufacturing Extension Partnership (VPMEP) to support the creation of the Virginia Small Manufacturing Assistance Program (VSMAP).  VPMEP will be the lead fiscal agent for VSMAP, and the program will be a joint effort and jointly managed by VPMEP, the Center for High Performance Manufacturing at Virginia Tech, and the Business Technology Center at Virginia Tech, to provide targeted assistance to the startup of new, and the expansion of existing, small advanced manufacturing businesses in rural Virginia.
T.  Out of the amounts for Economic and Community Development Services shall be provided $200,000 the second year from the general fund to the Virginia Department of Agriculture and Consumer Services to develop and implement a program to facilitate the development and marketing of high-value specialty agricultural production.  The program will gather data on specialty crop production in Virginia, identify resources to help farmers enter into new production, provide marketing support for specialty and value-added agricultural products and, through existing funding sources, provide matching low-interest loans to farmers or cooperatives for pilot projects for new specialty crop ventures.
U.  Out of the amounts for Economic and Community Development Services shall be provided $100,000 the second year from the general fund to the Virginia Department of Agriculture and Consumer Services to be provided to Virginia Tech and Virginia State University for additional research and field tests of specialty crops to determine which crops are best suited to Virginia conditions.
V.  Out of the amounts for Economic and Community Development Services shall be provided $150,000 the second year from the general fund to the Virginia Community College System to fund educational costs
for shipyard workers enrolled in a three-year program of educational instruction at Tidewater Community College that incorporates instruction in industrial applied sciences.
W.  Out of the amounts for Economic and Community Development Services shall be provided $500,000 the second year from the general fund to the Department of Housing and Community Development to supplement funding made available for the performance job creation grant program in distressed localities established pursuant to the provisions of Item 112 C. of this act.  
X. Out of the amounts for Economic and Community Development Services shall be provided $50,000 the second year from the general fund to the Dickenson County
Internet Wireless Authority to promote economic development in this distressed area of the Commonwealth.
Y.1. Out of the amounts for Economic and Community Development Services shall be provided $100,000 the first year and $400,000 the second year from the general fund to establish a community development financial institution to provide business and housing loans in distressed communities and to distressed populations.
2.  Notwithstanding the provisions of Title 59.1, Chapter 22.1, Code of Virginia, the Director, Department of Business Assistance, shall transfer all assets of the Virginia Economic Development Revolving Fund to a community development financial institution at such time as the eligible community development financial institution is legally established to do business within the Commonwealth.  Such transferred funds shall be used for the purpose of providing a portion of the initial capitalization for a community development bank or credit union subject to oversight by the appropriate federal or state regulatory and insurance agencies and eligible for certification by the U. S. Department of the Treasury as a community development financial institution.
3.  The Director, Department of Housing and Community Development, shall transfer $7,500,000 in existing loans and funds from the Commonwealth Priority Housing Fund to a community development financial institution at such time as the eligible community development financial institution is legally established to do business within the Commonwealth.  Such transferred funds shall be used for the purpose of providing a portion of the initial capitalization for a community development bank or credit union subject to oversight by the appropriate federal or state regulatory and insurance agencies and eligible for certification by the U.S. Department of the Treasury as a community development financial institution.
4.  The purpose of the community development bank or credit union capitalized in part through the transfer of funds authorized in subparagraphs 2 and 3 shall be to leverage the Commonwealth's capital contribution and other capital that may be provided from other sources to provide a source of targeted lending and investment for economic development and housing activities within distressed communities and populations throughout the Commonwealth.
5.  The Director, Department of Housing and Community Development, and another appointee of the Governor shall serve as members of the board of directors of the community development bank or credit union capitalized in part through the transfer of funds authorized in subparagraphs 2 and 3."
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Page 101, strike lines 1 through 59.
Page 102, strike lines 1 through 59.
Page 103, strike lines 1 through 29.

Explanation
(This amendment replaces the proposed Virginia Works initiative with a package of economic, agricultural and community development items designed to target funding to effective, existing programs that have a proven track record of promoting economic growth and key economic sectors.)