In 1977, the General Assembly requested the Virginia Advisory Legislative Council to study the Industrial Development and Revenue Bond Act and other revenue bond acts in the Commonwealth to determine whether such acts are fulfilling the purposes for which they were created, the need to combine such acts, the desirability of closer monitoring by the Commonwealth, of the issuance of securities under such acts, and the demand, if any, for new revenue bond acts.

The Council appointed Senator Peter K. Babalas of Norfolk, chairman, and Delegate Robert E. Washington of Norfolk was elected vice chairman of the committee that was to conduct the study. The following persons were appointed as members of the committee: John Bisessi of Norfolk; P. H. Cox, Jr. of Chesapeake (Chesapeake Industrial Development Authority); Senator James T. Edmunds of Kenbridge; Fred Glaize, III of Winchester (Industrial Development Authority of Frederick County); Delegate Jerry H. Geisler of Hillsville; Cecilia H. Herbert of Richmond (Assistant Vice President, Bank of Virginia); Robert L. Huffines, III of Richmond (Scott & Stringfellow, Inc.); Delegate Johnny S. Joannou of Portsmouth; Montgomery Knight, Jr. of Norfolk; Vincent J. Mastracco, Jr. of Norfolk (Canoles, Mastracco, Martone, Barr and Russell); C. Arthur Middleton, Jr. of Lynchburg (Executive Director, Greater Lynchburg Chamber of Commerce); Delegate Theodore V. Morrison, Jr. of Newport News; Delegate James B. Murray of Earlysville; John N. Parker of Virginia Beach (Attorney at Law); Charles W. Rector of Manassas (President, Rector Construction); Charles R. Saul of Roanoke (Area Development Consultant, Appalachian Power Company); William F. Seymour of Richmond (Staff Supervisor, C & P Telephone Company); Hubert S. Taylor, Jr. of Richmond (Davenport & Co. of Virginia, Inc.); Frederick J. Wimble of Richmond (Financial Consultant). Alfred L. Shilling, Attorney at Law of McGuire, Woods and Battle, served as bond counsel to the committee.

At the first meeting, due to the size of the committee, it was decided that a subcommittee would conduct a preliminary study to facilitate the task of the full committee. Delegate Johnny S. Joannou was appointed chairman of this subcommittee with Mr. Cox, Ms. Herbert, Mr. Huffines, Mr. Mastracco and Mr. Parker appointed as members.