Authority: Title 2.2, Chapter 2, Article 3; § 2.2-201, Code of Virginia.

A. It is the intent of the General Assembly that state programs providing financial, technical, or training assistance to local governments for economic development projects or directly to businesses seeking to relocate or expand operations in Virginia should not be used to help a company relocate or expand its operations in one or more Virginia communities when the same company is simultaneously closing facilities in other Virginia communities. It is the responsibility of the Secretary of Commerce and Trade to enforce this policy and to inform the Chairmen of the Senate Finance and House Appropriations Committees in writing of the justification to override this policy for any exception.

B. The Secretary shall report to the Chairmen of the Senate Finance and the House Appropriations and Finance Committees by October 30 of each year, on the use and efficacy of state incentives in creating investments and jobs in Virginia. The two-part report shall identify, by planning districts, the following items using the most recent data available: (1) the number of companies receiving business incentives; (2) the dollar amounts received by each company for each incentive; (3) the number of jobs to be created; (4) the average salary; and (5) the amount of investment agreed upon by the state and the company as a condition for receiving the incentives. For the purposes of this report, the incentives to be reviewed in the study are those incentives included in the Virginia Economic Development Partnership publication, “Virginia Business Incentives 1997-98” as well as business incentive programs authorized and funded by the General Assembly since the 1999 Session. The first part of the study shall not identify by name the companies participating in the state's incentive programs. In the second part of the report, organized by planning district, the Secretary shall include the actual number of jobs created, average salary, and level of investments made by each company awarded incentives in fiscal year 2002; if not prohibited by state law or by memorandum of agreement or understanding between the Commonwealth and the company, the names of the companies awarded incentives in fiscal year 2002 shall be included. In addition, the report shall also identify the specific actions taken by the state as part of its business incentive program to create private investments and jobs in rural areas of the state and the success of these actions.

C. The Secretary of Commerce and Trade shall report to the Chairmen of the House Appropriations and Senate Finance Committees by November 1, 2006, on activities related to the management, operation, and administration of the Department of Minority Enterprise. The report shall address, but is not limited to, the following items: (1) the status of the Department's efforts to implement the findings and recommendations from the Auditor of Public Accounts' most recent report on the audit of the Department of Minority Business Enterprise, including its agreement with the Department of Housing and Community Development to manage its administrative and financial functions; (2) the status of hiring, training, and retaining Department employees to ensure consistent delivery of high quality services; (3) for fiscal year 2006, an inventory of efforts undertaken to establish, preserve, and strengthen minority-owned businesses in the Commonwealth as well as report on the effectiveness of those activities; (4) an inventory of specific actions or activities implemented by the Department to improve minority-owned businesses' access to the Department's resources; (5) the number and type of customers served in fiscal year 2006; (6) the number of jobs created or retained in fiscal year 2006 attributable to the Department's efforts; and (7) an analysis of the Department's success in meeting the four agency goals articulated in the Governor's Biennial Executive Budget Document released in December 2005. The Secretary of Commerce and Trade shall provide a workplan for the report by August 1, 2006, to the House Appropriations and Senate Finance Committees.