H. B. 2366
(By Delegates Mahan, Fleischauer,
Dempsey and Caputo)
[Introduced February 20, 2001
; referred to the
Committee on Government Organization then Finance.]
A BILL to amend and reenact sections one, three, four and five,
article two, chapter five-b of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, all relating to
the West Virginia development office; eliminating exemption
from freedom of information act for certain documentary
material, data and other writings concerning economic
development; making the council for community and economic
development's rule making regarding available programs and
eligibility of applications for assistance subject to
legislative review; authorizing use of technical support;
removing provision authorizing performance-based incentives to
be paid by private entities to economic development
representatives employed by the development office; and providing that certain contracts may not conflict with the
West Virginia governmental ethics act.
Be it enacted by the Legislature of West Virginia:
That sections one, three, four and five, article two, chapter
five-b of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted all to read as
follows:
ARTICLE 2. WEST VIRGINIA DEVELOPMENT OFFICE.
§5B-2-1. West Virginia development office; confidentiality.
The governor's office of community and industrial development
is hereby continued but is hereafter designated and shall be known
as the West Virginia development office. All references in this
code to the office of community and industrial development or the
governor's office of community and industrial development shall be
construed as references to the West Virginia development office.
Any documentary material, data or other writing made or
received by the West Virginia development office or other public
body, whose primary responsibility is economic development, for the
purpose of furnishing assistance to a new or existing business
shall be exempt from the provisions of article one, chapter
twenty-nine-b of this code: Provided, That any agreement entered
into or signed by the development office or public body which obligates public funds shall be subject to inspection and copying
pursuant to the provisions of said article as of the date the
agreement is entered into, signed or otherwise made public.
§5B-2-3. Powers and duties of council for community and economic
development.
(a) The council for community and economic development shall
enhance economic growth and development through the development of
a comprehensive economic development strategy for West Virginia.
"Comprehensive economic development strategy" means a plan that
outlines strategies and activities designed to continue, diversify
or expand the economic base of the state as a whole; create jobs;
develop a highly skilled work force; facilitate business access to
capital, including venture capital; advertise and market the
resources offered by the state with respect to the needs of
business and industry; facilitate cooperation among local, regional
and private economic development enterprises; improve
infrastructure on a state, regional and community level; improve
the business climate generally; and leverage funding from sources
other than the state, including federal and private sources.
(b)
(1) The council shall develop a certified development
community program and provide funding assistance to the
participating economic development corporations or authorities through a matching grant program. The council shall establish
criteria for awarding matching grants to the corporations or
authorities within the limits of funds appropriated by the
Legislature for the program. The matching grants to corporations
or authorities eligible under the criteria shall be in the amount
of thirty thousand dollars for each fiscal year, if sufficient
funds are appropriated by the Legislature. The West Virginia
development office shall recognize existing county, regional or
multicounty corporations or authorities where appropriate.
(2) In developing its plan, the West Virginia development
office shall consider resources and technical support available
through other agencies, both public and private, including but not
limited to, the state college and university systems; the West
Virginia housing development fund; the West Virginia economic
development authority; the West Virginia parkways, economic
development and tourism authority; the West Virginia round table;
the West Virginia chamber of commerce; regional planning and
development councils; regional partnership for progress councils;
and state appropriations.
(c) The council shall
promulgate rules propose legislative
rules for promulgation to carry out the purposes and programs of the West Virginia development office to include generally the
programs available, and the procedure and eligibility of
applications relating to assistance under the programs. These
rules are
not subject to the provisions of chapter twenty-nine-a of
this code.
but shall be filed with the secretary of state
§5B-2-4. Public-private partnerships.
(a) The West Virginia development office is authorized to
enter into contractual or joint venture agreements with a nonprofit
corporation organized pursuant to the corporate laws of the state,
organized to permit qualification pursuant to section 501(c) of the
Internal Revenue Code and for purposes of the economic development
of West Virginia, and funded from sources other than the state.
Members of the council are authorized to sit on the board of
directors of the private nonprofit corporation. The contract shall
include provisions relating to the employment of economic
development representatives assigned to the West Virginia
development office to be paid a base salary by the state.
and
performance-based economic incentives from private funds of the
nonprofit corporation Provisions relating to hiring practices
with respect to economic development representatives, job
descriptions, accountability, public-private liaison and performance standards may be the subject of contract negotiations.
The contract shall include provision for continuing education and
certification in the field of economic or industrial development
for persons employed as economic development representatives.
Agreements providing for the payment of performance-based
incentives to the director of the West Virginia development office
are authorized. Agreements providing for the payment of travel and
expenses to the director of the West Virginia development office or
to economic development representatives from private funds by the
nonprofit corporation are authorized. The prohibitions of
subdivisions (b) and (d), section five, article two, chapter six-b
of this code are not applicable to the receipt by economic
development representatives or by the director of performance-based
incentives and other payments made by the nonprofit corporation and
specifically authorized pursuant to this section.
(b) From time to time the council may enter into joint
ventures wherein the West Virginia development office and the
nonprofit corporation share in the development and funding of
economic development programs.
(c) All contracts and joint venture agreements must be
approved by vote of the council. Contracts entered into pursuant to this section for longer than one fiscal year shall contain, in
substance, a provision that the contract shall be considered
canceled without further obligation on the part of the state if the
state Legislature or, where appropriate, the federal government,
shall fail to appropriate sufficient funds therefor or shall act to
impair the contract or cause it to be canceled.
§5B-2-5. Economic development representatives.
(a) The director is expressly authorized to employ economic
development representatives to be paid a base salary within
legislative appropriations to the West Virginia development office,
subject to provisions set forth by the council in its
reorganization plan and applicable contract provisions pursuant to
section four of this article.
Economic development representatives
may receive performance-based incentives and expenses paid from
private funds from a nonprofit corporation contracting with the
West Virginia development office pursuant to the provisions of
section four of this article. The director shall establish job
descriptions and responsibilities of economic development
representatives, subject to the provisions of any contract with a
nonprofit corporation entered into pursuant to section four of this
article:
Provided, That no contract may conflict with, nor may any economic development representative be exempt from, the provisions
of chapter six-b of this code.
(b) Notwithstanding any provision of this code to the
contrary, economic development representatives employed within the
West Virginia development office are not subject to the procedures
and protections provided by articles six and six-a, chapter
twenty-nine of this code. Any employee of the West Virginia
development office on the effective date of this article who
applies for employment as an economic development representative is
not entitled to the protections of article six, chapter twenty-nine
with respect to hiring procedures and qualifications; and upon
accepting employment as an economic development representative, the
employee relinquishes the protections provided for in articles six
and six-a, chapter twenty-nine.
NOTE: The purpose of this bill is to eliminate the Freedom of
Information Act exemption for the West Virginia Development Office
and remove authorization for private entities to pay performance-
based incentives to economic development representatives employed
by the Development Office. It also provides that certain rule
making of the Council for Community and Economic Development are
subject to legislative review, requires certain compliance with the
Governmental Ethics Act.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would be added.
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