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1 PROPOSED
2 CHAPTER 26.3 13.
3 REGIONAL COMPETITIVENESS ACT JOINT ACTIONS BY LOCALITIES.
4
5 Chapter drafting note: This chapter brings together various sections related to
6 joint actions by localities.
7
8 Article 1.
9 Joint Exercise of Powers.
10
11 § 15.1-21 15.2-1300. Joint exercise of powers by counties, cities or towns political
12 subdivisions.
13 A. Any power, privilege or authority exercised or capable of exercise by any political
14 subdivision of this Commonwealth may be exercised and enjoyed jointly with any other political
15 subdivision of this Commonwealth having a similar power, privilege or authority except where
16 an express statutory procedure is otherwise provided for the joint exercise.
17 B. Any two or more political subdivisions may enter into agreements with one another
18 for joint action pursuant to the provisions of this section. Action by ordinance of the governing
19 bodies of the The participating political subdivisions shall approve such agreement before the
20 agreement may enter into force. Localities shall approve such agreements by ordinance. Other
21 political subdivisions shall approve such agreements by resolution.
22 C. The agreement shall specify the following:
23 1. Its duration.
24 2. Its purpose or purposes.
25 3. The manner of financing the joint undertaking and of establishing and maintaining a
26 budget therefor.
27 4. The permissible method or methods to be employed in accomplishing the partial or
28 complete termination of the agreement and for disposing of property upon such partial or
29 complete termination.
30 5. All other necessary and proper matters.
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1 D. The agreement, in addition to the items enumerated in subsection C hereof, shall may
2 contain the following:
3 1. Provision for an administrator or a joint board responsible for administering the
4 undertaking. The precise organization, composition, term, powers and duties of any
5 administrator or joint board shall be specified.
6 2. The manner of acquiring, holding (including how title to such property shall be held)
7 and disposing of real and personal property used in the undertaking.
8 3. How issues of liability will be dealt with and the types, amounts and coverages of
9 insurance.
10 E. No agreement made pursuant to this section shall relieve any political subdivision of
11 any obligation or responsibility imposed upon it by law except that to the extent of actual and
12 timely performance thereof by an administrator or joint board created by an agreement made
13 hereunder, such performance may be offered in satisfaction of the obligation or responsibility.
14 F. Any political subdivision entering into an agreement pursuant to this section may
15 appropriate funds and may sell, lease, give, or otherwise supply the administrator or joint board
16 created to operate the undertaking with such property, personnel or services therefor as may be
17 within its legal power to furnish.
18 G. Any power, privilege or authority exercised or capable of exercise by any political
19 subdivision of this Commonwealth may be exercised and enjoyed jointly with any political
20 subdivision of any other state or the District of Columbia subject to the provisions of subsections
21 A, B, C, D, E and F above, which shall apply mutatis mutandis.
22 Drafting note: SUBSTANTIVE CHANGE; “shall” is changed to “may” in
23 subsection D so as to avoid imposing burdensome and unnecessary requirements on
24 political subdivisions wishing to exercise powers jointly. The catchline is amended to
25 reflect the substance of the section.
26
27 § 15.1-21.2 15.2-1301. Voluntary economic growth-sharing agreements.
28 A. Any county, city or town, or combination thereof, may enter voluntarily into an
29 agreement with any other county, city or town, or combination thereof, whereby the locality may
30 agree for any purpose otherwise permitted, including the provision on a multi-jurisdictional basis
31 of one or more public services or facilities or any type of economic development project, to enter
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1 into binding fiscal arrangements for fixed time periods, to exceed one year, to share in the
2 benefits of the economic growth of their localities. However, if any such agreement contains any
3 provision addressing any issue provided for in Chapter 20.2 § 15.1-965.9 et seq.), 21 (§ 15.1-966
4 et seq.), 21.1 (§ 15.1-977.1 et seq.), 21.2 (§ 15.1-977.19:1 et seq.), 22 (§ 15.1-982.1 et seq.) or 25
5 (§ 15.1-1032 et seq.) Chapters 32, 33, 36, 38, 39 or 41 of this title, the agreement shall be subject
6 to the review and implementation process established by Chapter 26.1:1 34 (§ 15.1-1167.1 et
7 seq.) of this title.
8 B. The terms and conditions of the revenue, tax base or economic growth-sharing
9 agreement as provided in subsection A shall be determined by the affected localities and shall be
10 approved by the governing body of each locality participating in the agreement, provided the
11 governing body of each such locality first holds a public hearing which shall be advertised once a
12 week for two successive weeks in a newspaper of general circulation in the locality. However,
13 the public hearing shall not take place until the Commission on Local Government has issued its
14 findings in accordance with subsection D. For purposes of this section, "revenue, tax base, and
15 economic growth-sharing agreements" means any agreement authorized by subsection A which
16 obligates any county, city or town locality to pay another county, city or town locality all or any
17 portion of designated taxes or other revenues received by that political subdivision, but shall not
18 include any interlocal service agreement.
19 C. Any revenue, tax base or economic growth-sharing agreement entered into under the
20 provisions of this section that creates a debt pursuant to Article VII, Section 10 (b) of the
21 Constitution of Virginia, shall require the board of supervisors to hold a special election on the
22 question as provided in § 15.1-1167.2 15.2-3401.
23 D. Revenue, tax base and economic growth-sharing agreements drafted under the
24 provisions of this chapter shall be submitted to the Commission on Local Government for review
25 as provided in subdivision 4 of § 15.1-945.3 15.2-2903.
26 Drafting note: No substantive change in the law.
27
28 § 15.1-21.1 15.2-1302. Certain Commonwealth distributions to local governments
29 localities.
30 Any state funds that were distributed to a county, city, town locality, or a local school
31 board in support of a governmental program or function prior to a consolidation of such program
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1 or function or the governmental consolidation of the entities providing such programs or
2 functions, shall continue to be distributed to the entity or entities carrying out the program or
3 function after consolidation and shall not be reduced below the amounts that would have been
4 received by each entity from the Commonwealth for the governmental program or function
5 computed on the premise that no consolidation occurred for a period of five fiscal years
6 following the consolidation.
7 This section shall not prohibit the Commonwealth from terminating or modifying any
8 program or function under which distribution to a county, city, town locality, or local school
9 board has been made, and if so terminated or modified all obligations hereunder shall cease or be
10 reduced in proportion with such modifications, as the case may be.
11 If any such consolidations terminate prior to the end of the five-year period, the
12 Commonwealth's obligation under this section shall cease.
13 For the purposes of this statute section, "consolidation" includes the reversion transition
14 of a city to town status and further includes the consolidation of a city and a county into a
15 consolidated city containing a shire, borough, or such other political subdivision authorized by
16 subdivision 20 of § 15.1-1135, the initial boundaries of which are the same as the existing city
17 which is included in the consolidated city.
18 Drafting note: No substantive change in the law; deletes language enacted during
19 the 1995 Session which was intended to help facilitate the proposed consolidation of
20 Bedford County and Bedford City. The proposed consolidation was defeated by voters in
21 November 1995.
22
23 Article 2.
24 Local Government Associations.
25
26 § 15.1-20 15.2-1303. Associations to promote welfare of political subdivisions.
27 The governing bodies of two or more of the political subdivisions of the Commonwealth
28 may, in their discretion, and in addition to powers prescribed in § 15.1-10 15.2-940, form and
29 maintain associations for the purpose of promoting, through investigation, discussion and
30 cooperative effort, the interest and welfare of the several political subdivisions of the
31 Commonwealth of Virginia, and to promote a closer relation between the several political
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1 subdivisions of the Commonwealth. Any such association so formed shall be an instrumentality
2 of the political subdivisions which are members thereof.
3 The provisions of this section shall be applicable to any such associations created prior to
4 and in existence on June 29, 1956.
5 Drafting note: No substantive change in the law.
6
7 § 15.1-20.1 15.2-1304. Appropriating funds or supplying goods and services to certain
8 regional organizations.
9 (a) A. The governing body of any county, city or town locality which is a member, or
10 hereafter becomes a member, of any organization or association including an organization or
11 association having members outside of the Commonwealth of Virginia which has as its principal
12 objective one or more of the purposes set forth in subsection (b) B hereof, is authorized to
13 appropriate funds to such organization or to provide goods and services to such organization, all
14 for the purpose of advancing the welfare and economic interests of such county, city or town
15 locality and the citizens thereof.
16 (b) B. Funds may be appropriated or goods and services may be provided, only to an
17 organization which has as its objective one or more of the following purposes: identification of
18 problems hindering the growth, development and economic functioning of the region in which
19 such county, city or town locality is located; development of comprehensive plans for the growth
20 and development of the region as a whole and the promotion of interjurisdictional cooperation;
21 development of appropriate policies and cooperative mechanisms among the participating
22 political subdivisions localities for improving the administration of public services; development
23 of concerted action among participating political subdivisions localities for the benefit thereof
24 and for the benefit of the region as a whole; defense and strengthening of local government; and
25 taking of such other action in connection with the foregoing as will advance the best interests of
26 the entire region and of the participating political subdivisions localities; provided, however, that
27 all funds for the development of plans or planning in Virginia shall be expended through
28 commissions created under Article 1 2 (§ 15.1-427 15.2-2210 et seq.) of Chapter 11 22 of Title
29 15.1 15.2, and other related or existing agencies authorized by the Commonwealth of Virginia, to
30 the extent that such commissions or other agencies are authorized by law to develop such plans
31 or planning. Provided further, that no county, city or town locality shall appropriate funds, unless
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1 specifically authorized by the General Assembly, to any organization or association having
2 members outside of the Commonwealth of Virginia (1) (i) when such association or organization
3 possesses the power of taxation or the right of condemnation, and (2) (ii) unless the county, city
4 or town locality has the right to withdraw from such association or organization at any time.
5 Drafting note: No substantive change in the law.
6
7 § 15.1-20.2 15.2-1305. Review of appropriations to certain agencies; providing goods
8 and services to such agencies in lieu of funds.
9 The governing body of any county, city or town locality may from time to time require of
10 any board, commission or authority, hereinafter referred to as recipient agency, to which it has
11 power to appropriate public funds and has appropriated such funds in the past or has received a
12 request for appropriations, such information books and records of the recipient agency as the
13 governing body deems necessary in order that it may be assured that an appropriation or
14 proposed appropriation will not result in the dissipation of public funds and in order that it may
15 determine the use of past and the proposed use of future appropriations, the method of
16 management, control and organization of the recipient agency and its present and proposed
17 programs. If the governing body determines that a particular administrative function or activity
18 of the recipient organization duplicates the services provided by the governing body and that
19 public funds may be conserved by combining, consolidating or coordinating the activities of the
20 recipient agency with those of the county locality, it may, in lieu of an appropriation of funds for
21 that function or activity, provide the recipient agency with the necessary goods and services; and
22 the. The governing body may assign officers and employees to coordinate the functions and
23 activities of the governing body and those of the various recipient agencies.
24 Drafting note: No substantive change in the law.
25
26 Article 3.
27 Regional Competitiveness Act.
28
29 § 15.1-1227.1 15.2-1306. Policy of General Assembly.
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1 It shall be the policy of the General Assembly to encourage Virginia's counties, cities and
2 towns to exercise the options provided by law to work together for their mutual benefit and the
3 benefit of the Commonwealth.
4 Drafting note: No change.
5
6 § 15.1-1227.2 15.2-1307. Definitions.
7 As used in this chapter article, unless a different meaning clearly appears from the
8 context:
9 "Joint activity" means a governmental function which is carried out by, performed on
10 behalf of, or contracted for two or more localities within a region and includes present and future
11 activities.
12 "Locality" means all counties, cities and towns within a regional partnership.
13 "Region" means a planning district; however, by agreement of the localities of the
14 planning district, localities which are not part of a planning district may be added to the region if
15 the locality's governing body by vote agrees to become part of the region. In addition, localities
16 may establish, with the approval of the Department of Housing and Community Development, a
17 different regional configuration, provided that at least one of the localities is a city, if a city
18 exists within the planning district, unless the city voluntarily agrees not to participate.
19 "Regional partnership" means an organization composed of government, business,
20 education and civic leaders approved by the local governing bodies of the region to carry out the
21 provisions of this chapter. The organization may be an existing or newly established regional
22 planning or economic development organization serving the region.
23 Drafting note: No substantive change in the law.
24
25 § 15.1-1227.3 15.2-1308. Incentives for certain joint activities by local governments.
26 A. The General Assembly may establish a fund to be used to encourage regional
27 strategic planning and cooperation. Specifically, the incentive fund shall be used to encourage
28 and reward regional strategic economic development planning and joint activities as described in
29 § 15.1-1227.4 15.2-1309.
30 B. The fund shall be administered by the Department of Housing and Community
31 Development and distributed to the qualifying counties, cities and towns localities in installments
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1 under the terms and conditions of applicable statutes and by procedures adopted by the
2 Department. The Department shall establish a state-wide advisory committee to develop
3 recommendations for the distribution of funds to localities pursuant to §§ 15.1-1227.4 15.2-1309
4 and 15.1-1227.5 15.2-1310. The advisory committee shall have at least twelve members
5 appointed by the Governor and shall have equal representation from local government and the
6 business community. The advisory committee shall be representative of each region of the
7 Commonwealth.
8 C. All departments, agencies, institutions, and local governments of the Commonwealth
9 shall make available such information and assistance as the Department may request in the
10 performance of its responsibilities set forth in this section.
11 Drafting note: No substantive change in the law.
12
13 § 15.1-1227.4 15.2-1309. Eligibility criteria for incentive payments.
14 The Department of Housing and Community Development, in setting the criteria for
15 eligibility for incentive payments under § 15.1-1227.3 15.2-1308, shall require that:
16 1. A regional partnership shall exist and effectively function in the applicant region, and
17 membership shall include as broad a representation as is practical of local government,
18 elementary and secondary education, higher education, the business community, and civic
19 groups. The partnership should include as many of the following as is practical: the mayor or
20 chair and the chief administrative officer of each member locality, president of each institution of
21 higher education, corporate leaders of the region, and leaders of local civic associations. The
22 Department shall issue guidelines on the structure and organization of the regional partnership.
23 2. Each regional partnership shall develop a regional strategic economic development
24 plan which identifies critical issues of economic competitiveness for the region. The plan shall
25 contain, at a minimum, a comparison of the following criteria for the region, and the primary
26 competitor regions in the southeast United States:
27 a. Median family income;
28 b. Job creation; and
29 c. Differences in median family income levels among the localities in the region.
30 3. Each regional partnership shall issue an annual report, including, at a minimum, the
31 region's progress towards improvement according to the criteria identified in subdivision 2 and
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1 its progress in addressing the critical issues of economic competitiveness identified in the
2 regional strategic economic development plan.
3 4. Each regional partnership shall identify the existing and proposed joint activities
4 within the region, and the joint activities shall have a combined point total of at least twenty
5 points, based on the values established in § 15.1-1227.5 15.2-1310, in order for the region to
6 qualify for any incentive payments.
7 5. Subject to the provisions of § 15.1-1227.3 A 15.2-1308, once a region becomes
8 eligible for the annual incentive payments, it shall receive such payments for at least five years,
9 so long as regional partnerships continue to exist and effectively function. The region may
10 reapply before or at the end of the five-year period for requalification to continue to receive
11 annual incentive payments.
12 6. Joint activities existing prior to the enactment of this section or prior to requalification
13 may be considered by the Department of Housing and Community Development for an award up
14 to the full value established in § 15.1-1227.5 15.2-1310. Existing joint activities which are
15 expanded in scope or number of localities may be considered a new joint activity but shall not
16 receive the full value of points as established in § 15.1-1227.5 15.2-1310. Points for existing
17 activities (prior to July 1, 1996, or prior to requalification) may not constitute more than fifty
18 percent of the total points assigned.
19 7. The year for incentive payments shall be the Commonwealth's fiscal year following the
20 calendar year in which the region qualifies, with payments made annually by the Comptroller
21 upon certification by the Department of Housing and Community Development. Eligible regions
22 shall receive incentive funds in an amount equal to the percentage of the funds appropriated for
23 incentive payments for such fiscal year that represents the region's percentage of the total
24 population of all eligible regions. Within eligible regions, the incentive funds shall be distributed
25 to the localities on the basis of a formula mutually agreed to by all of the localities of the region.
26 Drafting note: No change.
27
28 § 15.1-1227.5 15.2-1310. Assignment of weights for functional activities.
29 In determining the eligibility of the region, the Department of Housing and Community
30 Development may assign weights for each joint activity up to the number in parentheses below:
31 1. Job Creation or Economic Development (10)
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1 2. Regional Revenue Sharing or Growth Sharing Agreements (10)
2 3. Education (10)
3 4. Human Services (8)
4 5. Local Land Use (8)
5 6. Housing (8)
6 7. Transportation (5)
7 8. Law Enforcement (5)
8 9. Solid Waste (4)
9 10. Water and Sewer Services (4)
10 11. Corrections (3)
11 12. Fire Services and Emergency Medical Services (3)
12 13. Libraries (2)
13 14. Parks and Recreation (2)
14 The assignment of values by the Department to any joint activity may be based upon the
15 significance of the joint activity as measured by the fiscal resources committed to it, the number
16 of regional localities participating, the significance of the activity as measured by the regional
17 effort involved in developing joint activities, the complexity of the activity, the general impact
18 on relations between the affected jurisdictions, or other factors deemed to be appropriate by the
19 Department. A region may petition the Department to adjust the weights of the above criteria to
20 reflect the relative importance of that criteria on the economic competitiveness of the region.
21 Upon receipt of such petition, the Department may adjust the weight of any criteria; however, the
22 weight of any one criteria shall not exceed ten. In addition to the weights listed in § 15.1-1227.5
23 15.2-1310, the Department of Housing and Community Development may add up to a total of
24 five points for regions that have taken successful actions to make governmental services or
25 functions more efficient or successful actions in reducing the local property tax burden
26 throughout the region.
27 Drafting note: No change.
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