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Introduced Version House Bill 2557 History

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hb2557 intr
H. B. 2557


(By Delegates Walters and Armstead)
[Introduced February 21, 2005; referred to the
Committee on Government Organization then Finance.]




A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §4-13-1, §4-13-2, §4-13-3, §4-13-4, §4-13-5, §4-13-6, §4-13-7 and §4-13-8, all relating to the state payment for state mandates act; legislative findings; definitions; requirement for funding of state mandates; establishing office of local mandates; mandate review requirements; notification of local impact statement; and appropriations requirement.

Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new article, designated §4-13-1, §4-13-2, §4-13-3, §4-13-4, §4-13-5, §4-13-6, §4-13-7 and §4-13-8, all
to read as follows:
ARTICLE 13. STATE PAYMENT FOR STATE MANDATES ACT.

§4-13-1. Legislative findings.

The Legislature finds:
(a) Actions of the state government, that directly or indirectly prescribe the manner, standards, level and conditions of public service to be provided by the state's counties, municipalities and county boards of education are often taken with little regard for the fiscal consequences of the actions upon the affected local jurisdictions.
(b) Many of the state's counties, municipalities and county boards of education are experiencing varying degrees of fiscal stress resulting from the need to provide adequate public services to their citizens but without the local tax resources to do so.
(c) The state government, prior to imposing new or expanded service requirements upon its political subdivisions and county boards of education, should be aware of and confront the issue of where the burden of paying for those requirements will fall.
(d) It is appropriate, therefore, that full funding be provided for any net additional costs to counties, municipalities or county boards of education that are incurred by those jurisdictions in complying with the required performance of a new or expanded program or service under the provisions of any state law, rule or order.
§4-13-2. Definitions.

As used in this article:
(a) "County" means the governing body and the officers and employees of a county.
(b) "Expanded program or service" means a program or service the scope or level of which would be increased, extended or enhanced by a county's, municipality's or county board of education's compliance with the provisions of a state law, rule or order.
(c) "Municipality" means the governing body and the officers and employees of a municipality.
(d) "Net additional cost" means the cost or costs incurred or anticipated to be incurred within a one-year period by a county, municipality or county board of education in performing or administering a new or expanded program or service required by a state law, rule or order after subtracting therefrom any revenues received or receivable by the county, municipality or county board of education on account of the program or service, including, but not limited to:
(1) Fees charged to the recipients of the program or service;
(2) State or federal aid paid specifically or categorically in connection with the program or service; and
(3) Any offsetting savings resulting from the reduction or elimination of any other program or service directly attributable to the performance or administration of the required program or service.
(e) "New program or service" means a program or service different in kind or purpose from those in existence at the time of the enactment of a law or promulgation of a rule or order requiring the performance or administration of the program by one or more counties, municipalities or county boards of education.
(f) "Office" means the office of local mandates established pursuant to section four of this article.
(g) "Program or service" means a specific and identifiable activity of a county, municipality or county board of education which is available to the general public or which is conducted, administered or provided for or on behalf of the citizens of a county, municipality or county board of education.
§4-13-3. Requirement for funding of state mandates; minimum fiscal impact amounts established; exceptions.
(a) Notwithstanding any law, rule or order to the contrary, a law, rule or order passed, promulgated or issued on or after the effective date of this article which has the effect of requiring a county, municipality or county board of education to perform or administer a new or expanded program or service having a net additional cost in excess of one thousand dollars for any county, municipality or county board of education or one hundred thousand dollars for all affected counties, municipalities or county boards of education, shall be inoperative in the county, municipality or county board of education until a state appropriation is made and sufficient funds are provided to each affected county, municipality or county board of education as are necessary to pay in full any net additional cost of compliance with the requirement.
(b) The provisions of subsection (a) of this section do not apply to any new or expanded program or service that:
(1) Is required for the public's safety or arises from a court order or judgment;
(2) Is provided at the option of the county, municipality or county board of education under a law, rule or order that is permissive rather than mandatory;
(3) Is required by private, special or local laws; or
(4) Is required by or arises from an executive order of the Governor exercising his emergency powers.
§4-13-4. Office of local mandates established; duties; personnel to be employed.

(a) There is established within the Finance Division of the Department of Administration an office of local mandates, which shall have the duty to review proposed and adopted laws, rules and orders for the purpose of completing a local impact statement. A local impact statement shall contain a fiscal analysis of the net additional costs to a county, municipality or county board of education that will result from any new or expanded program or service that the county, municipality or county board of education would be required to perform or administer as a result of the proposed or adopted law, rule or order.
(b) The Finance Division shall appoint and employ all personnel necessary to perform the duties of the office.
(c) Funding for the office shall be made by appropriation from the Legislature under a separate account to be established by rule, to be proposed by the Director of the Finance Division in accordance with the provisions of article three, chapter twenty-nine-a of this code.
§4-13-5. Mandate review requirements for proposed rules or orders; referral to office of local mandates.
(a) Upon promulgation of an administrative or executive rule or order, the department head or officer issuing the rule or order, shall forward a copy of the rule or order to the office of local mandates.
(b) Within five days of notification, the office of local mandates shall complete a local impact statement containing an estimate, in actual dollars, of the net additional costs that will be required of a county, municipality or county board of education to perform or administer a new or expanded program or service. Completed local impact statements, together with a copy of the rule or order, shall be delivered to the Governor and the presiding officer of each House of the Legislature.
§4-13-6. Annual review of local impact statements required.

The office of local mandates shall conduct an annual review of all legislative bills and laws, rules and orders enacted or adopted after the effective date of this article, for which the office has previously completed a local impact statement. Any annual change in the dollar estimate of the net additional costs from that provided in the original local impact statement shall be updated as a result of the review to disclose that change. Updated local impact statements shall be delivered to the recipients of the original local impact statements.
§4-13-7. Local government mandates appeal board; duties.

There is established the local government mandates appeal board. The board shall hear and rule upon appeals brought by one or more counties, municipalities or county boards of education, alleging that a state law, rule or order, which has the effect of requiring the performance or administration of a new or expanded program or service:
(1) Has been enacted or promulgated in a manner contrary to the provisions of this article; or
(2) Has been lawfully enacted or promulgated, but has been based on a demonstrably inaccurate cost estimate contained in a local impact statement prepared by the office of local mandates resulting in the failure by the state to provide sufficient funding to pay the net additional cost of compliance with the law, rule or order.
§4-13-8. Board may adopt necessary rules.

The board shall propose rules for legislative approval in accordance with the provision of article three, chapter twenty-nine-a of this code designed as to carry out its functions and responsibilities under this article.


NOTE: The purpose of this bill is to create the State Payment for State Mandates Act. It applies in those situations when state government mandates certain actions by counties, municipalities or county boards of education which require expenditures. When a county, municipality or county board of education is required to incur expenditures without the tax resources to do so, the state is required to provide full funding for additional costs to the local governments before the county, municipality or county board of education must perform such state mandates.

This article is new; therefore, strike-throughs and underscoring have been omitted.
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