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2016 Session

Budget Amendments - HB30 (Conference Report)

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JLARC Unit for Economic Development Oversight

Item 33 #4c

Item 33 #4c

First Year - FY2017 Second Year - FY2018
Legislative Department
Joint Legislative Audit and Review Commission FY2017 $250,000 FY2018 $300,000 GF
FY2017 2.00 FY2018 2.00 FTE

Language
Page 19, line 10, strike "$3,840,287" and insert "$4,090,287".
Page 19, line 10, strike "$3,840,445" and insert "$4,140,445".

Page 21, after line 20, insert:

"J.1.  The General Assembly hereby designates the Joint Legislative Audit and Review Commission (JLARC) to oversee and evaluate economic development initiatives and policies on a continuing basis and to make such special studies and reports as may be requested by the General Assembly, the House Appropriations Committee, or the Senate Finance Committee.

2. The areas of review and evaluation to be conducted by the Commission shall include, but are not limited to, the following: (i) spending on and performance of individual economic development incentives, including grants, tax preferences, and other assistance; (ii) economic benefits to Virginia of total spending on economic development initiatives at least biennially; (iii) effectiveness, value to taxpayers, and economic benefits to Virginia of individual economic development initiatives on a cycle approved by the Commission; and (iv) design, oversight, and accountability of economic development entities, initiatives, and policies as needed.

3. For the purpose of carrying out its duties under this authority and notwithstanding any contrary provision of law, JLARC shall have the following powers, including but not limited to: (i) access to the information, records, facilities and employees of all public bodies involved in economic development initiatives and policies for the purpose of carrying out such duties; (ii) access to the public and executive session meetings and records of the boards of all public bodies involved in economic development initiatives and policies. Access shall include the right to attend such meetings for the purpose of carrying out such duties; (iii) access to the information and records of private entities, where private entities are obligated to provide such information and records to other public bodies pursuant to law or contract for the purpose of carrying out such duties.

4. Notwithstanding the provisions of subsection A or B of § 58.1-3 or any other provision of law, unless prohibited by federal law, an agreement with a federal entity, or a court decree, the Tax Commissioner is authorized to provide to JLARC such tax information as may be necessary to conduct oversight of economic development initiatives and policies.

5.  The following records shall be excluded from the provisions of the Virginia Freedom of Information Act (§ 2.2-3700 et seq.):

(a)  records provided by a public body as defined in § 2.2-3701, Code of Virginia, to JLARC in connection with its oversight of economic development initiatives and policies, where the records would not be subject to disclosure by the public body providing the records. The public body providing the records to JLARC shall identify the specific portion of the records to be protected and the applicable provision of the Freedom of Information Act or other provision of law that excludes the record or portions thereof from mandatory disclosure.

(b)  confidential proprietary records provided by private entities pursuant to a promise of confidentiality from JLARC, used by JLARC in connection with its oversight of economic development initiatives and policies where, if such records are made public, the financial interest of the private entity would be adversely affected.

6. By August 15 of each year, the Secretary of Commerce and Trade shall provide to JLARC all information collected pursuant to § 2.2-206.1, Code of Virginia, in a format and manner specified by JLARC to ensure that the final report to be submitted by the Secretary fulfills the intent of the General Assembly and provides the data and evaluation in a meaningful manner for decision-makers.

7.  JLARC  shall assist the agencies submitting information to the Secretary of Commerce and Trade pursuant to the provisions of § 2.2-206.1, Code of Virginia, to ensure that the agencies work together to effectively develop standard definitions and measures for the data required to be reported and facilitate the development of appropriate unique project identifiers to be used by the impacted agencies.

8. The Chairman of JLARC may appoint a permanent subcommittee to provide guidance and direction for oversight activities, subject to the full Commission's supervision and such guidelines as the Commission itself may provide.

9. JLARC may employ on a consulting basis such professional or technical experts as may be reasonably necessary for the Commission to fulfill its responsibilities under this authority.

10.  All agencies of the Commonwealth shall cooperate as requested by JLARC in the performance of its duties under this authority."



Explanation

(This amendment establishes a new unit at the Joint Legislative Audit and Review Commission (JLARC) to provide ongoing oversight of economic development incentives, including tax incentives focused on the area of economic development and business expansion. The unit will report economic benefits to Virginia of total spending on economic development initiatives at least biennially, and evaluate the effectiveness, value to taxpayers, and economic benefits to Virginia of individual economic development initiatives on a cycle approved by the Commission. In addition, the unit will assist in the development of the annual report required pursuant to the provisions of House Bill 1191 of the 2014 Session of the General Assembly.)