A. As used in this chapter, unless the context requires a different meaning:

Terms Used In Virginia Code 59.1-284.39

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Baseline: Projection of the receipts, outlays, and other budget amounts that would ensue in the future without any change in existing policy. Baseline projections are used to gauge the extent to which proposed legislation, if enacted into law, would alter current spending and revenue levels.
  • Capital investment: means an expenditure within an eligible locality, by or on behalf of a qualified company on or after January 1, 2021, in real property, tangible personal property, or both, at one of the facilities within an eligible locality that has been capitalized or is subject to being capitalized. See Virginia Code 59.1-284.39
  • City: means an independent incorporated community which became a city as provided by law before noon on July 1, 1971, or which has within defined boundaries a population of 5,000 or more and which has become a city as provided by law. See Virginia Code 1-208
  • Eligible locality: means the City of Norfolk or the County of Arlington. See Virginia Code 59.1-284.39
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Facilities: means the buildings, group of buildings, or campus, including any related furniture, fixtures, equipment, and business personal property, in an eligible locality that is owned, leased, licensed, occupied, or otherwise operated by or on behalf of a qualified company for use as a headquarters facility, a customer care center, or a research and development innovation center in the furtherance of its shipping and logistics business. See Virginia Code 59.1-284.39
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Freedom of Information Act: A federal law that mandates that all the records created and kept by federal agencies in the executive branch of government must be open for public inspection and copying. The only exceptions are those records that fall into one of nine exempted categories listed in the statute. Source: OCC
  • Fund: means the Shipping and Logistics Headquarters Grant Fund. See Virginia Code 59.1-284.39
  • Grant: means a grant from the Fund awarded to a qualified company in an aggregate amount of up to $9,042,875. See Virginia Code 59.1-284.39
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Locality: means a county, city, or town as the context may require. See Virginia Code 1-221
  • Memorandum of understanding: means a performance agreement or related document entered into on or before August 1, 2022, between a qualified company and the Commonwealth that sets forth the requirements for capital investment and the creation of new jobs for the qualified company. See Virginia Code 59.1-284.39
  • New job: means full-time employment at or associated with any of the facilities measured at any time after January 1, 2021, for which the annual average wage is at least $56,713 for a position in the City of Norfolk or at least $99,385 for a position in the County of Arlington, that requires a minimum of 38 hours of an employee's time per week for the entire normal year, consisting of at least 48 weeks, of the qualified company's operations. See Virginia Code 59.1-284.39
  • Person: includes any individual, corporation, partnership, association, cooperative, limited liability company, trust, joint venture, government, political subdivision, or any other legal or commercial entity and any successor, representative, agent, agency, or instrumentality thereof. See Virginia Code 1-230
  • Personal property: All property that is not real property.
  • Qualified company: means a shipping and logistics company, and its affiliates, that between January 1, 2021, and September 30, 2030, is expected to (i) retain its North American headquarters operations in the City of Norfolk; (ii) make or cause to be made a capital investment at one or more of the facilities of at least $36 million; (iii) create and maintain at least 415 new jobs at or associated with the facilities related to, or supportive of, its shipping and logistics business functions; and (iv) establish and operate a research and development innovation center. See Virginia Code 59.1-284.39
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Secretary: means the Secretary of Commerce and Trade or his designee. See Virginia Code 59.1-284.39
  • State: when applied to a part of the United States, includes any of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, and the United States Virgin Islands. See Virginia Code 1-245

“Capital investment” means an expenditure within an eligible locality, by or on behalf of a qualified company on or after January 1, 2021, in real property, tangible personal property, or both, at one of the facilities within an eligible locality that has been capitalized or is subject to being capitalized. “Capital investment” may include (i) the purchase of land and buildings and the cost of infrastructure development and land improvements; (ii) a capital expenditure related to a leasehold interest in real property; and (iii) the purchase or lease of furniture, fixtures, machinery, and equipment, including under an operating lease.

“Eligible locality” means the City of Norfolk or the County of Arlington.

“Facilities” means the buildings, group of buildings, or campus, including any related furniture, fixtures, equipment, and business personal property, in an eligible locality that is owned, leased, licensed, occupied, or otherwise operated by or on behalf of a qualified company for use as a headquarters facility, a customer care center, or a research and development innovation center in the furtherance of its shipping and logistics business.

“Fund” means the Shipping and Logistics Headquarters Grant Fund.

“Grant” means a grant from the Fund awarded to a qualified company in an aggregate amount of up to $9,042,875. Grant proceeds are intended to be used by the qualified company to pay or reimburse costs associated with constructing, renovating, acquiring, and staffing the facilities.

“Memorandum of understanding” means a performance agreement or related document entered into on or before August 1, 2022, between a qualified company and the Commonwealth that sets forth the requirements for capital investment and the creation of new jobs for the qualified company.

“New job” means full-time employment at or associated with any of the facilities measured at any time after January 1, 2021, for which the annual average wage is at least $56,713 for a position in the City of Norfolk or at least $99,385 for a position in the County of Arlington, that requires a minimum of 38 hours of an employee’s time per week for the entire normal year, consisting of at least 48 weeks, of the qualified company’s operations. Seasonal or temporary positions and positions created when a job function is shifted from an existing location in the Commonwealth shall not qualify as new jobs. Any new job shall be in addition to the baseline number of existing full-time positions at the qualified company’s facilities, to be set forth in the memorandum of understanding.

“Qualified company” means a shipping and logistics company, and its affiliates, that between January 1, 2021, and September 30, 2030, is expected to (i) retain its North American headquarters operations in the City of Norfolk; (ii) make or cause to be made a capital investment at one or more of the facilities of at least $36 million; (iii) create and maintain at least 415 new jobs at or associated with the facilities related to, or supportive of, its shipping and logistics business functions; and (iv) establish and operate a research and development innovation center.

“Secretary” means the Secretary of Commerce and Trade or his designee.

B. There is hereby created in the state treasury a nonreverting fund to be known as the Shipping and Logistics Headquarters Grant Fund. The Fund shall be established on the books of the Comptroller. All funds appropriated to the Fund shall be paid into the state treasury and credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the purpose to pay grant installments pursuant to this chapter. Payment of such grant installments shall be made by check issued by the State Treasurer on warrant of the Comptroller. The Comptroller shall not draw any warrants to issue checks for grant installments under this section without a specific appropriation for the same.

C. Subject to appropriation by the General Assembly, the aggregate amount of grants payable under this section to a qualified company shall not exceed $9,042,875. Grants shall be paid in nine annual installments, calculated in accordance with the memorandum of understanding, with grants that may be awarded in a particular fiscal year not to exceed the following:

1. $1,359,500 for the Commonwealth’s fiscal year beginning July 1, 2022;

2. $2,514,000, less the total amount of grants previously awarded pursuant to this subsection, for the Commonwealth’s fiscal year beginning July 1, 2023;

3. $3,468,500, less the total amount of grants previously awarded pursuant to this subsection, for the Commonwealth’s fiscal year beginning July 1, 2024;

4. $4,423,000, less the total amount of grants previously awarded pursuant to this subsection, for the Commonwealth’s fiscal year beginning July 1, 2025;

5. $5,377,500, less the total amount of grants previously awarded pursuant to this subsection, for the Commonwealth’s fiscal year beginning July 1, 2026;

6. $6,332,000, less the total amount of grants previously awarded pursuant to this subsection, for the Commonwealth’s fiscal year beginning July 1, 2027;

7. $7,286,500, less the total amount of grants previously awarded pursuant to this subsection, for the Commonwealth’s fiscal year beginning July 1, 2028;

8. $8,241,000, less the total amount of grants previously awarded pursuant to this subsection, for the Commonwealth’s fiscal year beginning July 1, 2029; and

9. $9,042,875, less the total amount of grants previously awarded pursuant to this subsection, for the Commonwealth’s fiscal year beginning July 1, 2030.

D. A qualified company receiving a grant installment pursuant to this section shall provide evidence, satisfactory to the Secretary, annually of, for each facility: (i) the aggregate number of new jobs created and maintained as of the last day of the prior grant year as determined in the memorandum of understanding, the payroll paid by the qualified company during the grant year, and the average annual wage of the new jobs in the grant year and (ii) the aggregate amount of the capital investment made during the grant year, including the extent to which such capital investment was or was not subject to the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.). The report and evidence shall be filed with the Secretary in person, by mail, or as otherwise agreed upon in the memorandum of understanding, by no later than 90 days following the end of the prior grant year upon which the evidence is based.

E. The memorandum of understanding shall provide that if any annual report and evidence provided pursuant to subsection D indicates that the qualified company failed to meet certain targets for capital investment that is or is not subject to the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.), the average annual wage for new jobs, or the number of new jobs, the qualified company may qualify for a reduced grant installment for the grant year in an amount that reflects the value of the shortfall in the applicable target.

F. As a condition of receipt of the grant, a qualified company shall make available to the Secretary for inspection all documents relevant and applicable to determining whether the qualified company has met the requirements for the receipt of the grant as set forth herein and subject to the memorandum of understanding. All such documents appropriately identified by the qualified company shall be considered confidential and proprietary and shall not be subject to disclosure pursuant to the Virginia Freedom of Information Act (§ 2.2-3700 et seq.).

2021, Sp. Sess. I, c. 434; 2022, cc. 10, 76.

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