2016 Session

Budget Bill - HB29 (Introduced)

Department of Housing and Community Development

Item 105

Item 105 (Not set out)

First Year - FY2015Second Year - FY2016
Economic Development Services (53400)$12,423,354$12,423,354
Financial Assistance for Economic Development (53410)FY2015 $12,423,354FY2016 $12,423,354
Fund Sources:  
GeneralFY2015 $12,423,354FY2016 $12,423,354

Authority: Title 59.1, Chapters 22 and 49, Code of Virginia.

A. Out of the amounts in this Item, $12,150,000 the first year and $12,150,000 the second year from the general fund shall be provided to carry out the provisions of §§ 59.1-547 and 59.1-548, Code of Virginia, related to the Enterprise Zone Grant Act.  Notwithstanding the provisions of §§ 59.1-547 and 59.1-548, Code of Virginia, the department is authorized to prorate, with no payment of the unpaid portion of the grant necessary in the next fiscal year, the amount of awards each business receives to match the appropriation for this Item.  Should actual grants awarded in each fiscal year be less than the amounts provided in this Item, the excess shall not revert to the general fund but shall be deposited to the Virginia Removal or Rehabilitation of Derelict Structures Fund for revitalization purposes.

B. Out of the amounts in this item provided for real property improvement grants, up to $80,000 in the second year shall be used for a review of the state Enterprise Zone Program. The objective will be to determine how well the program works to encourage business development in zone areas above any increases that would occur in those areas, absent zone designation. In addition, the department should assess those characteristics most commonly associated with zone success. The evaluation should consider a variety of variables, including but not limited to: geographic location, proximity to markets, infrastructure, zone administration, other non-state incentives, and the effects of any proration of grant benefits. The Secretary of Commerce and Trade, in consultation with the Chairmen of the House Appropriations and Senate Finance Committees, shall approve the final design of the evaluation and the entity selected to conduct the review.