VEDA SPRING CONFERENCE

Harrisonburg, VA

Virginia Legislative UpdateMarch 27-29, 2019

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2019 Economic Development Accomplishments

2019 Budget Accomplishments

2019 General Assembly Elections

Presentation Overview

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2019 Session Accomplishments

• HB 2356 (C. Jones) and SB 1255 (Ruff) creates the Major HeadquartersWorkforce Grant Fund for the Amazon project

• HB 2021 (James) reauthorizes the Va. Investment Performance Grant/Va.Economic Development Incentive Grant Programs

• HB 2003 (Aird) reauthorizes the Major Business Facility Job Tax Creditprogram

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2019 Session Accomplishments

• HB2182 (Austin) and SB1681 (Mason), which deals with DGS and surplusproperty. Provides an opportunity for economic development entities topurchase surplus property for economic development purposes

• HB1840 (Marshall), which allows a pilot program to facilitate constructionof electric transmission facilities to Business parks

• SB 1695 (Wagner) and HB 2738 (Bagby) which allows acquisition ofrights-of-way for economic development sites for public utilities

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2019 Session Accomplishments

• HB 2180 (Rush) and SB 1370 (Norment) creates a SemiconductorManufacturing Grant Fund for the Micron project.

• SB 1463 (McPike) clarifies teleworking jobs meet the new jobsrequirement for grant programs in Virginia

• HB 2529 (Hugo) and SB 1372 (Norment) State Income tax; conformity oftaxation system with the Internal Revenue Code.

• HB 2718 (Landes/Austin) and SB1716 (Obenshain/Carrico) Interstate 81Corridor Improvement Fund created.

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2019 Budget Accomplishments

• VJIP funding, $2.7 million, which restores the funding close to the $3 million levelthat we requested in FY20

• Business Ready Sites Program, increases funds $2,000,000 in FY19. May includesites of at least 25 acres; also allows up to $2,000,000 may be utilized forcharacterization of publicly or privately-owned sites. No public funds associatedwith this program may be utilized to develop any sites owned exclusively by privateinterests unless such private interests contractually commit to refund theCommonwealth for its investment at the time the property is sold or leased for aneligible or ineligible use"

• Increase Enterprise Zone Grant Fund by $1.0 million in FY20 to reduce pro-ration ofthe Real Property Improvement Grant

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2019 Budget Accomplishments

• $16.6 million Tech Talent Investment Fund which is designed to increasethe number of computer science and related degrees that are needed forcompanies such as Amazon which invests in Virginia's workforce

• $50 million for the Semiconductor Manufacturing Grant for ourcommitment to Micron; which is the first year payment

• The first $40 million collected as a result of the online sales taxlegislation will go to reserves for the Amazon custom incentive grant

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2019 Budget Accomplishments

• Broadband funding included $19 million in FY20 for the Virginia TelecommunicationInitiative to accelerate broadband distribution in unserved areas of theCommonwealth; which is less than the Governor's $50 million request.

• Increase Funding for Derelict Structures Fund by $1million in FY20 and designatesthat the increase be used for removing, renovating or modernizing port-relatedbuildings and facilities in the cities of Portsmouth, Norfolk, Newport News,Richmond or Front Royal

• Commonwealth Center for Advanced Manufacturing (CCAM) increased funding of$1.0 million from the general fund in the second year for the Commonwealth Centerfor Advanced Manufacturing for rent, operations and maintenance. The Board ofDirectors of VEDP shall approve any and all disbursements of these funds (CCAM)must submit a detailed operating plan to the Board of Directors of VEDP by August1, 2019.

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2019 Governor’s Budget AmendmentsCCAM

• Governor amendment-- removes the appropriation and associated language establishing a grantprogram Governor would like to move CCAM to VEDP.

Department of Small Business and Supplier Diversity

• Amendment 7: Conduct Disparity Study provide $500,000 in FY20 from the general fund to hire afirm to conduct a disparity study as it relates to procurement in the Commonwealth.

• Amendment 8: Establish a SWaM provides additional funding ($267,000)to create a unit and newpositions (3) that would work with procurement officials and businesses in the Commonwealth tostrategically source small, woman-owned, and minority-owned (SWaM) participation on largedollar Commonwealth contracts.

• Amendment 9: Woman and Minority-Owned Business Programming provides funding ($65,000) tothe Department of Small Business and Supplier Diversity to create programming specific towoman and minority-owned businesses

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Important General Assembly Dates

• Reconvened/Veto Session April 3, 2019

• Prefiling of legislation begins Monday, November 18, 2019

• Governor introduces Bienium Budget, December, 2019

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2019 Elections

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2019 Elections

• All 140 members of the House of Delegates and VirginiaSenate will be up for election in November 5, 2019.

• Party nominating contests will be held on or before June11, 2019.

• The 2019 election will determine which party controls theVirginia Senate and the House of Delegates.

• Potential Leadership and Committee Changes

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2019 Elections

Currently

• Republicans maintain a 21-19 advantage in the Senate

• Republicans hold a 51-49 majority in the House

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2019 Elections

Redistricting

• January 2019 -- A panel of federal judges chose a redistricting mapfor Virginia’s House of Delegates

• The judges gave all sides until Feb. 1 to file objections.

• The U.S. Supreme Court heard the GOP’s appeal on March 18th

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2019 Elections

Retirements

• 11 members of the House of Delegates

• 3 members of the Senate of Virginia

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2019 Elections

Out right Retirements

The HonorableRichard P. Bell

The HonorableT. Scott Garrett

The HonorableGordon C. Helsel, Jr.

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2019 Elections

Out right Retirements

The HonorableRiley E. Ingram

The HonorableJohn J. Bell

The HonorableTodd E. Pillion

The HonorableDebra H. Rodman

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2019 Elections

Out right Retirements

The HonorableDavid J. Toscano

The HonorableR. Steven Landes

The HonorableBrenda L. Pogge

The HonorableCheryl B. Turpin

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2019 Elections

Out right Retirements

The HonorableRichard H. Black

The HonorableCharles W. Carrio, Sr.

The HonorableFrank W. Wagner

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2019 Elections

Moving On Up to the SenateDelegate John Bell running for Sen. Black’s seat

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2019 Elections

Moving to the Upper Chamber (Senate)Delegate Tood Pillion running for Sen. Carrico’s seat

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2019 Elections

Moving to the Upper Chamber (Senate)Delegate Debra Rodman to challenge Senator

Dunnavant for the 12th Senate district seat

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2019 Elections

Moving to the Upper Chamber (Senate)Delegate Cheryl Turpin running for Senator Wagner’s seat

Where We are Today

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QUESTIONS/COMMENTS