Legislation affects port
Published 10:18 pm Tuesday, March 11, 2014
As container throughput continues growing, Virginia’s legislature this year has again tweaked state statutes related to the Port of Virginia — and Suffolk’s delegate again played a leading role.
Last year, controversy surrounding unsolicited bids to privatize port operations, which were subsequently dropped, led to reforms of the Public-Private Transportation Act, with Chris Jones a chief author.
In 2014, Jones was chief patron of three bills affecting the port, and economic activity tied to it, in other ways.
HB 871, making the Port of Virginia Economic and Infrastructure Development Zone Grant Program statewide, instead of operating only in certain localities, was rolled into a similar bill — HB 672 — now on its way to the governor’s desk.
The program uses grants to entice qualifying companies to locate maritime-related, job-creating and port-growing operations in specific localities — including Suffolk — but it will now become statewide.
HB 873 was another Jones bill dealing with port-related business incentives. Also signed by the speaker of the House and the president of the Senate, and destined for Terry McAuliffe’s desk, it will increase the annual amount of international trade facility tax credits that may be issued from $250,000 to $1.25 million.
The bill will also lower the annual amount of barge and rail usage tax credits that can be issued from $1.5 million to $500,000, and allow taxpayers to receive both the port volume increase tax credit and the barge and rail usage tax credit if they meet the criteria for both.
Furthermore, the bill reduces the required annual minimum increase in cargo transported through a maritime port, in order to qualify for the international trade facility tax credit, from 10 percent to 5 percent, as well as includes roll-on/roll-off cargo in the eligibility criteria for the international trade facility, port volume increase, and barge and rail usage tax credits.
Jones’ third port-related bill — also approved by both chambers — adds a member from “Greater Hampton Roads” to the Virginia Port Authority Board of Commissioners, plus requires one member have maritime shipping experience.
The board consists of the state treasurer, chief executive officer of the Virginia Economic Development Partnership and 11 members appointed by the governor and confirmed by the General Assembly.
The governor will select the one member with maritime shipping experience from a list of three nominees provided by the Virginia Maritime Association, who are not paid members of the association and do not have any conflict of interest with the authority.
Other bills approved in 2014 that have some bearing on the port include HB 1191 and SJ 69.
The first of those bills requires the secretary of commerce and trade to submit an annual report to the chairs of the Senate Finance and the House Appropriations and Finance committees on “the effectiveness of economic development incentive programs administered by the commonwealth,” including those administered by the port authority.
Finally, adopted by the House and Senate, SJ 69 request the Office of Intermodal Planning and Investment to develop a Master Rail Plan for the port’s main facilities.