Economic development incentives; procedures for certain acts, economic development authorities.

Plain English Breakdown

The official source material does not provide specific details on penalties for non-compliance or a comprehensive list of all possible incentives covered under this legislation.

Rules for Economic Development Incentives

This bill sets rules that local governments must follow when offering certain economic development incentives, such as tax breaks or property deals with private companies.

What This Bill Does

• Requires local governments to give public notice and hold hearings before approving specific types of economic development incentives.
• Specifies the types of incentives covered by these requirements, including money transfers, real estate transactions over $500,000, long-term leases, and tax breaks.
• Outlines how notices must be published in local newspapers twice with specific timing rules.

Who It Names or Affects

• Local governments
• Economic development authorities
• Private companies receiving incentives

Terms To Know

economic development incentives

Benefits given by local governments to attract or retain businesses, such as tax breaks or property deals.

governing body

The group of elected officials who make decisions for a city or county.

Limits and Unknowns

• Does not specify the exact penalties if local governments do not follow these rules.
• Does not cover all types of economic development incentives, only those listed in the bill.

Official Summary Text

Procedures for certain acts; economic development incentives; economic development authorities.
Requires that a proposed ordinance or resolution related to certain economic development incentives comply with the notice and public hearing requirements specified in the bill prior to approval by the governing body. The bill provides that the notice and public hearing requirements also apply to any such economic development incentives to be offered pursuant to an agreement between a locality and an economic development authority or industrial development authority.

Current Bill Text

A BILL to amend the Code of Virginia by adding a section numbered
15.2-1428.1
, relating to local economic development incentives; economic development authorities.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered
15.2-1428.1
as follows:

§
15.2-1428.1
.
Procedures for certain acts;
economic development incentives; economic development authorities
.

A.
Notwithstanding any other provision of law,
general or special,
a proposed
ordinance or resolution
related to
economic development incentives

(i)
appropriating money
or directing the transfer of money to a private entity
;

(ii)
authorizing the
s
ale
or purch
ase of
rea
l property
to or from
a private entity;

(iii)
authorizing the sale or
purchas
e
of any asse
t greater than $500,000;
(iv)
authorizing a
lease agreement greater than 10
years
in
length;
or
(v)

authorizing
local tax incentives
, including refun
ding

of
taxes
paid
, lower
ing a
tax rate, or locking in
a
n existing
tax rate
beyond the current fiscal year,
shall
comply with the notice and public hearing requirements of
subsection B
prior to
approval by the governing body
.

B.
Any
proposed
ordinance or resolution

listed in subsection A
shall
be published twice in a newspaper having general circulatio
n in the locality, with the first notice appearing no more than 28 days before and the second notice appearing no
less
than five days before

the
date of the meeting referenced in the notice. The notice shall specify the time and place of
a public hearing at which persons may appear and present their views
to the governing body
.

C.
The provisions of this section shall
also apply to any
such
economic development incentives to be offered
pursuant to an agreement between a locality and
an economic development authority or industr
ial development authority
created by a locality pursuant to
§
15.2-4903
.