Pharmaceutical Manufacturing Grant Program and Fund; created.
Creates the Pharmaceutical Manufacturing Grant Program to make grant payments to an eligible pharmaceutical manufacturer that makes a capital investment of at least $1 billion at a facility in Rockingham County and creates at least 152 new full-time jobs at the facility. The pharmaceutical manufacturer would be eligible for an aggregate of $7.5 million in grants paid out over a three-year period if it meets such performance parameters. The bill also makes available, subject to appropriation, $2.525 million to a comprehensive community college and baccalaureate public institutions of higher education in or near Rockingham County to support the workforce development needs of the manufacturer and other research and development companies in the area.
01/07/2020 Senate: Prefiled and ordered printed; offered 01/08/20 20102793D Open
Senate: Prefiled and ordered printed; offered 01/08/20 20102793D
SENATE BILL NO. 610
Offered January 8, 2020
Prefiled January 7, 2020
A BILL to amend the Code of Virginia by adding in Title 59.1 a
chapter numbered 22.14, consisting of sections numbered 59.1-284.33, 59.1-284.34, and 59.1-284.35, relating to pharmaceutical
manufacturing grant program.
Patron-- Hanger
Referred to Committee on Education and Health
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Title
59.1 a chapter numbered 22.14, consisting of sections numbered 59.1-284.33, 59.1-284.34, and 59.1-284.35, as follows:
� 59.1-284.33. Definitions.
A. As used in this section, unless
the context requires a different meaning:
"Capital
investment" means an expenditure by or on behalf of a qualified company on
or after March 1, 2019, in real property, tangible personal property, or both,
at a facility in an eligible county that is properly chargeable to a capital
account or would be so chargeable with a proper election. The purchase or lease
of furniture; fixtures; business personal property; machinery and tools,
including under an operating lease; and expected building expansion and up-fit
by or on behalf of a qualified company shall qualify as capital investment.
"Eligible
county" means Rockingham County.
"Facility" means
the building, group of buildings, or corporate campus, including any related
machinery and tools, furniture, fixtures, and business personal property, that is located
at or near a qualified companys existing operations in an eligible county and is
owned, leased, licensed, occupied, or otherwise operated by a qualified company
for use in the administration, management, and operation of its business.
"Fund" means the
Pharmaceutical Manufacturing Grant Fund.
"Grants" means
grants from the Fund awarded to a qualified company in an aggregate not to
exceed $7.5 million, intended
to be used to pay or reimburse a
qualified company for the costs of workforce recruitment, development, and
training, and for stormwater management. A qualified company may use the grant
payment for any lawful purpose.
"Memorandum of
understanding" means a performance agreement or
related document entered into on or before August 1, 2020, by a
qualified company, the Commonwealth, and VEDP, that sets forth the requirements
for capital investment and the creation of new full-time jobs by a
qualified company in order for a qualified company to
be eligible for grants from
the Fund.
"New full-time
job" means a job position, in which the employee of a qualified company
works at a facility, for
which the average annual wage is at least $100,000 and the qualified company
provides standard fringe benefits. Such position shall require
a minimum of either (i) 35 hours of an employees time per week for the entire
normal year of the qualified companys operations, which "normal
year" shall consist of at least 48 weeks, or (ii) 1,680
hours per year. 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 full-time jobs. "New full-time job" shall not
include any existing full-time positions at the facility as of March 1, 2019.
The Commonwealth may gauge compliance with the new full-time job requirements
for a qualified company by reference to the new payroll generated by a
qualified company, as indicated in the memorandum of understanding.
"Qualified
company" means a company, including its affiliates, that engages in
pharmaceutical manufacturing in an eligible county and that, between March 1,
2019, and February 28, 2025, is expected to make (i) a capital investment of at
least $1 billion and (ii) create at least 152 new full-time jobs related to, or
supportive of, its business.
"Secretary"
means the Secretary of Commerce and Trade or his designee.
"VEDP" means the
Virginia Economic Development Partnership Authority.
� 59.1-284.34.
Pharmaceutical Manufacturing Grant Fund created.
A. There
is hereby created in the state treasury a special nonreverting fund to be known
as the Pharmaceutical Manufacturing 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 the Fund.
Interest earned on moneys in the Fund shall remain in the Fund and be 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 to pay grants
pursuant to this section. Expenditures and
disbursements from the Fund shall be made by the State Treasurer on
warrants issued by the Comptroller pursuant to subsection E.
B. A
qualified company shall be eligible to receive grants each fiscal year
beginning with the Commonwealths fiscal year starting on July 1, 2020, and
ending with the Commonwealths fiscal year starting on July 1, 2022, unless
such timeframe is extended in accordance with a memorandum of understanding.
Grants paid pursuant to this section
shall be subject to appropriation by the
General Assembly during each such fiscal
year and are contingent
on a qualified company meeting
the requirements set forth in this chapter and the memorandum of understanding for the
number of new full-time jobs created and maintained and the amount of capital
investment made. The first grant payment of $2.5 million shall not be awarded
until a qualified company has made a capital investment of at least $420
million and has created at least 85 new full-time jobs.
C. The
aggregate amount of grants payable under this section shall
not exceed $7.5 million and such grants are
expected to be paid in three annual installments of $2.5 million each,
calculated in accordance with a memorandum of understanding as follows:
1. $2.5 million for the
Commonwealths fiscal year beginning July 1, 2020;
Commonwealths fiscal year beginning July 1, 2021; and
Commonwealths fiscal year beginning July 1, 2022.
qualified company applying for a grant installment under this
section shall provide evidence, satisfactory to the Secretary, of (i) the
aggregate number of new full-time jobs created and maintained as of the last
day of February in the fiscal year that immediately precedes the fiscal year in
which the grant installment is to be paid and (ii) the aggregate amount of
capital investment made as of the last day of February in the fiscal year that
immediately precedes the fiscal year in which the grant installment is to be
paid. The application and evidence shall be filed with the Secretary in person,
by mail, or as otherwise agreed upon in a memorandum of understanding no later
than June 1 each year reflecting performance through the last day
of the prior February. Failure to meet the filing
deadline shall result in a deferral of a scheduled grant installment payment
set forth in subsection C. For
filings by mail, the postmark cancellation shall govern the date of the filing
determination.
E. Within 60 days of
receiving an application and evidence pursuant to subsection D, the Secretary
shall certify to the Comptroller
and the qualified company the amount of grants to
which such qualified company is entitled for
payment. Payment of such grants shall
be made by check issued by the State Treasurer on warrant of the
Comptroller in the Commonwealths fiscal year following the submission of an
application. The Comptroller shall not draw any warrant to issue checks for
grants without a specific appropriation for the same.
F. As a condition of
receipt of grants under this section, a qualified company shall make available
to the Secretary for inspection, upon request, all documents relevant and
applicable to determining whether the qualified company has met the
requirements for receipt of a grant as set forth in this section and subject to
a memorandum of understanding. All such documents appropriately identified by a
qualified company shall be considered confidential and proprietary.
� 59.1-284.35. Resources
for public institutions of higher education.
A. To support the needs of
a qualified company, and other manufacturers and companies engaged in
research and development in and near a qualified county, up to
$2,525,000 shall be made available to a
comprehensive community college and a baccalaureate public institution of
higher education in or near an eligible county.
Subject to appropriation, such funds are expected to be available in the
Commonwealths fiscal years beginning July 1, 2020, through
July 1, 2024, as follows:
1. $730,000 for the
Commonwealths fiscal year beginning July 1,
2023; and
5. $313,750 for the Commonwealths
fiscal year beginning July 1, 2024.
B. Funds awarded pursuant
to this section shall be used for (i) enhanced
soft-skilled training; (ii) collaboration to ensure an
effective workforce development program; (iii)
equipment, maintenance, and personnel needs for bioscience training and
education; and (iv) increased
educational opportunities in science, technology, engineering, and math.
C. Decisions regarding the
application and awarding of funds shall be
determined annually by the Secretary of Commerce and Trade, upon the
recommendation of the President and Chief Executive Officer of VEDP, the
Chancellor of the Virginia Community College System or his designee, and the
Director of the State Council of Higher Education for Virginia or his designee.
Such officials may request from applicant institutions, and
base decisions upon, annual reports from such
institutions setting forth proposals regarding how such funds would be spent
and reviewing how awarded funds have been spent.
Emmett W. Hanger R-Richmond Sponsor
01/24/2020 Senate Senate: Read third time and passed Senate (37-Y 0-N 1-A)
01/22/2020 Senate Senate: Constitutional reading dispensed (40-Y 0-N)
01/21/2020 Senate Senate: Reported from Finance and Appropriations (16-Y 0-N)
01/16/2020 Senate Senate: Reported from Education and Health (14-Y 0-N 1-A)
01/16/2020 Senate Senate: Rereferred to Finance and Appropriations
01/07/2020 Senate Senate: Prefiled and ordered printed; offered 01/08/20 20102793D
01/07/2020 Senate Senate: Referred to Committee on Education and Health
Start Description.
Creates the Pharmaceutical Manufacturing Grant Program to make grant payments to an eligible pharmaceutical manufacturer that makes a capital investment of at least $1 billion at a facility in Rockingham County and creates at least 152 new full-time jobs at the facility. The pharmaceutical manufacturer would be eligible for an aggregate of $7.5 million in grants paid out over a three-year period if it meets such performance parameters. The bill also makes available, subject to appro
End Description.
Bill TEXT Points.
This Bill has been listed with the following Subjects from Texts:
"Fund" means the Pharmaceutical Manufacturing Grant Fund
End Bill TEXT Points.