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Engrossed Version Senate Bill 716 History

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Key: Green = existing Code. Red = new code to be enacted



ENGROSSED

Senate Bill No. 716

(By Senators Unger, Craigo, Bowman, Fanning, Sprouse, McCabe, Jackson, Kessler, Helmick and Plymale)

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[Originating in the Select Committee on Economic Development;

reported March 30, 2001.]

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A BILL to amend and reenact section three, article two, chapter five-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to further amend said chapter by adding thereto two new articles, designated articles three and seven; and to amend chapter twenty-nine-a of said code by adding thereto a new article, designated article three-c, all relating to allowing county economic development authorities to enter into joint projects; setting forth economic development vision and goals for the state; performance measures and indicators; economic development report; accountability for new and existing programs; elements of an effective incentive evaluation system; unified development budget; joint commission on economic development; and rule- making review for rules relating to economic development.

Be it enacted by the Legislature of West Virginia:
That section three, article two, chapter five-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by amended and reenacted; that said chapter be further amended by adding thereto two new articles, designated articles three and seven; and to amend chapter twenty-nine-a of said code by adding thereto a new article, designated article three-c, all to read as follows:
CHAPTER 5B. ECONOMIC COMPETITIVENESS ACT.

ARTICLE 2. WEST VIRGINIA DEVELOPMENT OFFICE.

§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) 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.
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 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.
(d) The Legislature hereby finds and declares that the citizens of the state would benefit from coordinated economic development efforts and that to encourage cooperation and coordination, county economic development authorities should share in the tax revenues derived from joint programs regardless of the county in which they are located.
(e) Any three or more county development authorities may contract to share expenses for and revenues derived from joint economic development projects within their respective geographic territories. Notwithstanding any other section of the code to the contrary, county development authorities may contract to distribute on a pro rata basis proceeds derived from joint economic development projects.
ARTICLE 3. WEST VIRGINIA ECONOMIC DEVELOPMENT STRATEGY: A VISION SHARED.

§5B-3-1. Legislative findings.

(a) Per Capita Income is Low and Growing Slowly. -- West Virginia's per capita income, one of the most direct indicators of wealth creation and overall economic strength, is below the national level. In addition, per capita income in West Virginia is increasing at a slower pace than the rest of the nation, causing West Virginians to fall even further behind. Poverty is high throughout West Virginia and pockets of extreme poverty exist in the central and southern parts of the state. Every county in the state has a per capita income below the national average. Many counties still have double-digit unemployment rates. Developing strategies to deal with these persistent problems will be fundamental to improving wealth creation and strengthening the economic base.
(b) The Population is Aging Rapidly. -- West Virginia has the highest median age in the nation at thirty-eight and one tenth years. The national average is thirty-four and nine tenths years.
(c) Educational Attainment is Poor, But Improving. -- Educational attainment is a key indicator of workforce quality and largely dictates the kinds of jobs an area can support. West Virginia continues to lag behind its neighboring states and the nation in educational attainment. However, educational attainment in West Virginia is improving, and high school dropout rates are very low.
(d) The Economic Structure is Not Improving. -- The national shift away from a manufacturing-based economy has had profound impacts on West Virginia. Declines in the manufacturing and mining sectors have resulted in the loss of tens of thousands of jobs in the state. While these lost jobs have been largely replaced by the expanding services, sector jobs that do pay well generally require specific skills and a higher level of education. The relatively poor educational attainment in West Virginia means that many workers are not adequately prepared for these jobs. Therefore, well-paying jobs may go unfilled despite relatively high unemployment rates.
(e) Wages in West Virginia are below national averages for all sectors except mining. Average annual earnings in West Virginia were approximately eighty-two of the national average.
(f) Market restrictions between borders are being reduced or eliminated and modern communication and transportation networks are enabling jobs to flow anywhere in the world. Knowledge-based firms in the new economy locate where educated and skilled workers live, where opportunities for lifelong learning exist and where the quality of life is valued.
(g) Most West Virginians have an idea about what has to happen to make a change in West Virginia and are ready to make the change. The state needs a clear, shared vision and a strategy that people can get behind.

(h) West Virginia is steering a new course to succeed in the new economy. The state needs to adopt forward looking visions to guide the state in responding to these forces of change and help ensure a brighter future for all of our citizens and businesses.
§5B-3-2. Legislative intent.
(a) West Virginia: A shared vision statement. -- West Virginia's strong commitment to future generations has created a vibrant and diverse economy balancing quality jobs and the state's irreplaceable natural beauty. West Virginia has a highly skilled and educated workforce, is a leader in innovation and offers an excellent quality of life for all residents.
(b) "West Virginia: A vision shared" vision statement is meant to be used as a touchstone to ensure that actions being undertaken are in-line and on-course.
(c) It is the intent of the Legislature to set economic development goals for the state and that the joint commission on economic development, created in article three-c, chapter twenty- nine-a of this code, and all agencies under the commission use the goals in bringing all agencies performing economic development and workforce investment activities together in improving the economic situation in this state.
(d) Furthermore, it is the intent of the Legislature that the state work toward accomplishing three overall goals which include:
(1) The development of a comprehensive statewide economic development strategy. This article is intended to serve this purpose;
(2) The effective statewide coordination of economic development programs. Article three-c, chapter twenty-nine-a is intended to serve this purpose; and
(3) The development of meaningful agency and program benchmarks and performance-based evaluations
. Article seven of this chapter is intended to serve this purpose.
§5B-3-3. Economic issue areas and goals.
(a) The West Virginia council for community and economic development commissioned an assessment of the economic competitiveness of the state, solicited input from various stakeholders and citizens throughout the state and developed an economic development strategy.
(b) The "West Virginia economic development strategy: A vision shared!" articulates the fundamental values and goals for the state to rally around to become economically competitive in the twenty- first century. The strategy serves to identify the major issues that must be addressed in West Virginia and the goals to be achieved to move this state forward and create a positive future.
(c) The key issue areas that West Virginia must address were narrowed to the following:
(1) Intellectual infrastructure in the twenty-first century;
(2) New economy: New challenges and new solutions;
(3) Results-based government: Planning for the future; and
(4) Building bridges and empowering citizens.
§5B-3-4. Intellectual infrastructure in the twenty-first century.
(a) Economic prosperity in today's "information age" requires a highly skilled and productive workforce and worker skills have been identified as one of the greatest competitive challenges facing the nation today. Significant shifts that have created this challenge include changes in the workplace environment due to information technology, the opening of global competition, the aging of a great proportion of the workforce and welfare reform.
(b) Each day, businesses move across regional, state and national borders, companies restructure to improve their competitiveness and workers are told they must acquire and demonstrate different skills and competencies. The nation has seen the rapid spread of a new work order in a post-industrial, information-based economy. What has become unmistakably clear is the tie between educational attainment and wealth creation. Therefore, new skills must be learned in order to fill the new jobs being created every day. As this continues to build, workers' knowledge and skill sets will be even more important as we move into the twenty-first century economy.
(c) West Virginia needs to invest in our citizens to attract New Economy workers and businesses. The wage premium on skills and education is growing. To survive and even thrive in this new job environment, workers will need to acquire new skills and be prepared to constantly reinvent themselves. Those who enhance their skills will experience wage growth. Those who do not will experience wage stagnation or even real wage decline.
(d) The following goals are established relating to this issue area that addresses such critical goals as educational attainment, technical education, worker investment, research and development, and lifelong learning:
(1) Educational Attainment. -- The level of educational attainment and income level of people have been inextricably linked through extensive studies. The more education and training a person has completed, the higher the income potential that person possesses. West Virginia needs to focus on reducing high-school dropouts, increasing the proportion of high school graduates going on to college, and improving test scores of primary and secondary students.
Raising standards, assessing progress and ensuring accountability are effective strategies our state uses to improve student performance. Reforms in teacher preparation and collaboration with the higher education community also are crucial for ensuring that secondary school graduates are prepared for post- secondary education and that teachers are well prepared to help students meet higher standards. The state should continue striving to accomplish the following:
(A) To establish high academic standards for student achievement. Input from higher education institutions is critical to ensure that K-12 standards match the expectations of higher education admissions staff and faculty;
(B) To create assessments aligned with state standards. Well- crafted assessments aligned with state standards provide important information about student progress toward state standards and can help teachers target instruction to student weaknesses;
(C) To establish policies to hold schools, educators and students accountable for student learning. Accountability systems include clear standards, assessments to measure progress on the standards, indicators of performance public reports about performance, rewards for meeting standards, consequences for persistent failure and assistance for struggling or low-performing schools, teachers or students. Instead of simply reporting test scores, accountability systems also measure student performance, analyze results and suggest strategies for change;
(D) To invest in early childhood development to ensure that children are ready to learn at an early age;
(E) To make progress in elementary and secondary (K-12) education reform, including improvements in teacher quality to ensure that students are ready for post-secondary education and the workplace;
(F) To invest in higher education and encourage it to be more market-driven and responsive to the needs of the new economy workers and businesses; and
(G) To establish partnerships between public agencies and the private sector which help integrate workforce systems with secondary and post-secondary education and employer-based training systems to promote skill acquisition and lifelong learning for all workers.
(2) Community and Technical Education. -- A specific focus on community and technical education needs to be adopted and implemented in West Virginia. In particular, the state needs to move away from the traditionally isolated and limited vocational programming towards a systematic approach to teaching technical skills that employers need today. Therefore, a strong community and technical education system needs to be established that is responsive to business' needs throughout the state.
(3) Workforce Investment. -- Training, whether it be on-the- job, skills upgrades or basic employability, is a priority for employers and training providers alike in the new economy. Many times, people with jobs are overlooked as needing training, since education and training are seen as separate items. All residents of West Virginia need to be trained and retrained for them to remain competitive. The state should support workforce investment to raise the skills of New Economy workers and help them with the transition to higher paying jobs. Therefore, the workforce investment system needs to:
(A) Be more closely aligned with the standards and practices that are part of a businesses internal human resources systems;
(B) Move beyond initial job preparation and placement to include ongoing skill development and career progression for employed worker and for the most disadvantaged in the labor market;
(C) More effectively exploit work-based learning opportunities by structuring work experience and entry-level jobs for learning;
(D) Develop closer ties with the economic development system and incorporate market-based strategies into the operations of organizations so they are more responsive to changing economic requirements;
(E) Provide post-employment training closely linked to employers' needs;
(F) Create career pathways to further education and upward mobility for all workers; and
(G) Be aligned with the advanced technologies, adaptable workplace structures and higher skill demands of the new economy workplace.
(4) Research and Development. -- Research and development are the cornerstones of the new economy. Increased funding needs to be dedicated to research and development, particularly in the area of emerging technologies that would benefit the state. The assets already in place in West Virginia, due largely to federal facilities, need to be built upon to strategically position the state as a leader in research and development in targeted technologies. However, it is equally important that higher education institutions and the private sector become more actively engaged in collaborative efforts in research and development. Additionally, technology transfer efforts need to be stepped up considerably to ensure maximum benefit from current and future research and development conducted in West Virginia.
(5) Lifelong Learning.-- The role of lifelong learning is becoming a more critical piece of the overall educational and training system in the nation. The transition to the new economy requires all residents and workers to continuing education, distance learning and other non-traditional approaches to delivering education services is key to success. The intention of lifelong learning is to disseminate valuable information to as many people as possible to maximize the benefit realized by all residents and workers in the state. Partnerships between public agencies and the private sector help integrate workforce systems with secondary and post-secondary education and employer-based training systems to promote skill acquisition and lifelong learning for all workers.
§5B-3-5. New economy: New challenges and new solutions.
(a) The economy is changing rapidly. New and different kinds of jobs are being created every day. The progressive policy institute defines the new economy as "a knowledge and idea-based economy where the keys to wealth and job creation are the extent to which ideas, innovation and technology are embedded in all sectors of the economy". The characteristics of the new economy range from an increase in knowledge-based jobs and constant technological innovation to higher levels of entrepreneurial dynamism and continuous economic churning.
(b) Since much of the focus of the new economy is on people and their abilities, the future, in many respects, is still rooted in the past that produced our people. Larger structural trends are emerging in the structure of production, trade patterns, and the way organizations deliver value to consumers. The impact of the new economy permeates the everyday life of all workers and residents. New challenges have presented themselves in conjunction with the transformation and thus, new solutions must be instituted. The new economy is not about passing economic trends or fads; instead, this profound structural transformation is how the economy now works.
(c) Now that knowledge is the most important factor of production, West Virginia must reevaluate the public sector's role in facilitating the start-up of new businesses, attracting the workers who power these new businesses and workers to flourish.
(d) The following goals are established relating to this issue area that addresses such critical goals as diversifying West Virginia's economy, the formation of capital, increasing entrepreneurship, integrating technology and restructuring the state's incentives:
(1) Diversify Economy. -- West Virginia has little choice but to actively pursue diversification of the state's economy. Still dependent on its industrial heritage, the state has seen job loss and income loss of extreme proportions over the last two decades. For example, a concerted effort has to be undertaken on building the tourism industry--using the competitive advantage of the natural beauty of the state as the foundation. The services sector, particularly higher-wage jobs, needs to be the benefactor of concentrated efforts on upgrading the mix of jobs within West Virginia. Additionally, the traditional industries already in place in the state need to become more competitive and continue to add value to West Virginia's economy, with a key component being increasing international trade.
(2) Capital Formation. -- Capital formation is an important commodity in the new economy, since implementing ideas takes not only time and talent, but money as well. While many types of business ventures in the New Economy have greater risks, there is also a greater potential return. Capital formation should be accomplished through a multiprong approach including seed capital, venture capital, gap financing and loan guarantees, among others.
(3) Increase Entrepreneurship. -- The majority of new job creation has been from small-sized and medium-sized businesses in recent years. This trend is expected to hold strong as the transition to the new economy continues. Increasing entrepreneurship needs to be a specific focus, given the rural nature of the state and the lack of Fortune 500 corporations headquartered in West Virginia. A new, targeted focus should be given to small businesses, including such efforts as educational outreach, micro-enterprise lending, technical assistance, tax credits, minority-owned business development and gap financing. The value of promoting entrepreneurs is that it keeps decision- makers in the state who build companies that create both quality jobs and new wealth for their community.
Additionally, support for entrepreneurism needs to be encouraged in the commercialization of emerging technologies which are located around the universities' research centers, the chemical alliance zone and the polymer alliance zone, as well as other areas where new technologies are emerging.
(4) Integrate Technology. -- A specific focus on technology, both as a business sector and as a component of all other business sectors, should be adopted and implemented. The integration of technology into West Virginia's economy will have positive effects on existing businesses, new businesses and business start-ups. Additionally, all levels of government and education would be beneficiaries. Technology is a definite linchpin for successful diversification of the state's economy in the long-term.
(5) Restructure Incentives. -- West Virginia's current incentive program has been an effective tool for the recruitment of desired businesses to the state. However, given West Virginia's dependence on the old economy, state incentives are still aimed at assisting specific industry groups rather than new economy businesses. The overall package--both tax and nontax incentives-- needs to be restructured. A more progressive mix of nontax incentives, such as brownfield redevelopment funding, loan guarantees and regional infrastructure grants should exist. The existing tax incentives should be reexamined to ensure competitiveness and new incentives should be added, such as those aimed at research and development, technology start-ups, small businesses and business expansions.
§5B-3-6. Results-based government: Planning for the future.
(a) In today's economy, it is especially important that government becomes more responsive, flexible, innovative, decentralized and accountable. Ultimately, government has to make the same transition that business has been making in recent years toward performance-based management and budgeting, which is oriented and governed by results. Bureaucracies might have worked in the past, but the new economy demands collaboration, partnerships and networks. Government alone cannot solve the problems of today, or implement actions to correct the problems of yesterday.
(b) Reform efforts are underway all over the nation as governments realize that institutional obstacles are hindering economic and community development efforts. Whatever the issue may be, it has become clear that a combination of citizen involvement and empowerment has to be merged with government reform efforts to ensure the most effective results. Methods for sustaining or directing long-term change have been absent in West Virginia. Therefore, planning efforts--both comprehensive and strategic--must be embraced within the state to successfully implement change.
(c) In a recent report by the progressive policy institute entitled "New Economy Task Force Report: Making the New Economy Grow", it stated: Old economy government is organized around agencies and bureaucracies that operate like 'stove pipes' with little information flowing between them and with operations developed to meet the requirements of agencies, not the needs of the citizens. New economy government will be organized around functions and needs of citizens, with information and communications technologies a key enabler of this reinvented government. A key next step in reinventing government involves the widespread application of information technologies to the delivery of government services--in short, fostering digital government. Digital government efforts, however, should complement, not compete, with private sector commercial efforts.
(d) The following goals are established relating to this issue that addresses such critical goals as continuing government reform and modernization efforts, developing infrastructure, implementing a new tax structure, strengthening land-use planning, and improving the health of the state's residents, decentralizing and regionalizing decisionmaking, employing public-private partnerships, modernizing by using technology; simplifying regulations and removing potential market distortions:
(1) Government Reform. -- West Virginia has been going through a process of government reform on a myriad of issues in recent years. However, there are still processes and legislation that should be improved for the state to be competitive in the future. Many states around the nation and even some of West Virginia's neighbor states have successfully transitioned from bureaucratic institutions to results-based government. State government should focus on achieving the outcomes that citizens expect of government and directs resources to policies and programs that are effective in achieving those outcomes. This requires setting goals, measuring performance and continuously improving. West Virginia must continue to pursue reform in workers' compensation and the judicial system. However, government alone cannot bring about all the changes needed in the state. It must be accomplished through continuing partnerships.
(2) Infrastructure Development. -- Given the rural nature of West Virginia, infrastructure development continues to be a problem. The new economy requires new types of infrastructure, such as telecommunications, and elevates in importance more traditional infrastructure, such as commercial air service. West Virginia must strengthen air service capacity throughout the state, continue to develop water, sewer and road basic services, along with affordable housing, and bring the state's telecommunications infrastructure into a more competitive position.
(3) New Tax Structure. -- Based on the structural transformation of the economy, the tax structure of West Virginia needs to be altered. Heavily dependent on extraction and mature industries, the state's tax system does not lend itself to being self-supporting in the future. Changes need to take place that are "friendly" to new economy businesses, with a focus on technology and small businesses. Key issues include finding ways to achieve a stable and broad revenue base for basic government services such as education as well as avoiding taxes that discriminate against new and fast-growing businesses. The challenge facing our state is to create a tax system that spreads the burden across a wide array of activities, raises sufficient revenues to support critical public services and does not discourage or discriminate against valuable business activities. Additionally, the tax system should serve to encourage business expansion and entrepreneurship.
(4) Land-Use Planning. -- Land-use planning should not be confined only to zoning or regulating land usage. Communities, regions and the state should carefully plan for the future, so as not to be overwhelmed or unprepared when change arrives. Land-use planning serves to facilitate discussion about what a place wants to be and look like in the future. Choices made in a noncritical situation are usually better thought out and weighed more carefully than those that must be made when a crisis arises. Carefully managing development towards what a community, region, or state wants to be in the future is a must in the new economy, as business are looking for stable, progressive and well-planned locations.
(5) Healthy Citizens. -- Clearly, one of the most important determinants of a state's economic health is the health of its residents as it directly impacts the state's economic future, tax revenues, infrastructure needs and quality of life. Unfortunately, West Virginia ranks very poorly in categories concerning health issue, including death rates and chronic disease. Additionally, West Virginia has a rapidly aging population which can potentially contribute to increased health issues in the future. It is important that educational and out-reach efforts are undertaken by the public, private and nonprofit sectors to improve the health standards of the resident population which includes the critical component of safe, decent housing.
(6) Decentralization. -- The state should work toward decentralizing and regionalizing decisionmaking to allow communities to address their own challenges and problems. West Virginia is diverse and complex both in terms of economic generators and geography one size does not fit all and cannot fit all in terms of economic development strategy. Local problems are best solved locally, enabling interventions to be tailored to meet communities' needs.
(7) Public-Private partnerships. -- Public-private partnerships between government and other institutions can be effective means for solving problems and delivering services. Such partnerships can involve state government working with nonprofit organizations, the faith community, employers, labor unions and other nongovernment institutions.
(8) Technology. -- The state government should continue to modernize with technology to improve and transform service delivery. Technology can help make state government more transparent to its citizens and responsive to their needs. This new policy framework must empower people with information to give them control over their own lives. It must reinvent and "digitize" government to create a decentralized, nonbureaucratic, catalytic and results-oriented government. New digital government, where there is logic in the way tax, revenue and other systems are implemented, must work so that government reporting requirements are fully automated citizens' questions can be answered with response times comparable to what is considered standard of businesses and citizens can voice their concerns. It is critical that technology be used to enable citizens to attain a sense of participation or feeling of investment and ownership in the governance process.
The internet enables information to be disseminated to the public immediately, individuals and small businesses can monitor legislative developments without making a substantial lobbying investment and citizens are better able to voice their opinions to, and require greater accountability from those elected to represent their interests. It is essential that the state use technological tools to streamline performance and accountability systems for the next century.
(9) Regulations and market distortions. -- The state needs to create a regulatory environment that is customer-focused, responsive and flexible. Such regulatory environments are not achieved by weakening standards. They are achieved by making the compliance process simple for businesses to understand and meet. State government can relieve this burden considerably by offering businesses a one-stop shop to obtain business licenses apply for environmental and operational permits and file taxes. Also, the state should ensure that regulations are performance-based rather than command and control, facilitate cost-effective compliance.
§5B-3-7. Building bridges and empowering citizens.
(a) The economic prosperity experienced throughout much of the nation has not been as evident in West Virginia. Many other states have successfully transitioned economically and moved forward to create new ways of doing things. For West Virginia to move forward, a new way of thinking and acting must be adopted and implemented. Across the nation, collaboration at the local and regional levels is becoming more important as nonprofits take the lead to fill the gap between what the public and private sectors are not able to do alone. The regional level make the most sense for implementation given the critical level of assets that must be present to create long-term change.
(b) The term "civic entrepreneurs" has been coined in recent years to mean local leaders that forge new linkages at the intersection of business, government, education and community. Leaders today must bring people together in the broadest and most inclusive way possible. Decisions can no longer be made by a handful of people. Instead, hands-on implementation and the prioritization of community becomes the norm. Successful regions and states have active leadership from small businesses, big businesses and the media, while including public officials, nonprofits, labor unions and education. The broad cross-section helps to build bridges for change in the future.
(c) In the new economy, critical subjective factors, such as climate, standard of living and physical attractiveness of a community, have supplanted many of the traditional drivers of economic development. Knowledge and capitol are mobile, digital communications enable work to occur where individuals choose to live and the reduced reliance on natural resources as product inputs lessens the need to locate businesses near these resources.
(d) The following goals are established relating to this issue area that addresses such critical goals as enhancing quality of life, fostering regional cooperation, enabling leadership development, promoting public-private collaboration, improving the state's image (internal and external) and increasing nonprofit capacity:
(1) Enhancing quality of life. -- Quality of life considerations include:
(A) Whether the physical environment is in good condition;
(B) Whether recreational opportunities are available;
(C) Whether cultural amenities are present;
(D) Whether policies to steer development and check unrestrained growth exist; and
(E) Whether efforts to revitalize languishing cities and neighborhoods are under way.
Quality of life can also be measured by the value of certain community services, such as public education, public health and safety and support systems for working families. All of these quality-of-life issues must be addressed to attract new businesses and workers and to create a sense of place in the new economy.
(2) Regional Cooperation. -- Regional cooperation is sweeping the country in states that are successfully transitioning to the new economy and have undertaken progressive and thriving community and economic development efforts. The regional level has been found to strike the right balance between state and local assets. Working together, communities are able to facilitate capacity building, marketing, and problem solving. The resources within a region surpass any individual jurisdiction, and help to create a brand recognizable outside of the region itself. In the global economy, businesses are not concerned with city and county lines rather, they focus on the resources and civic infrastructure in place in a region. The state should undertake efforts to reward and incentivize regional cooperation.
(3) Leadership Development. -- As new collaborative relationships are formed and new ways of doing things are established, a simultaneous effort should be underway to develop quality leaders at the local, regional and state levels. In today's economy, leadership development must include people from "all walks of life". In particular, educational efforts should be undertaken to educate people about the responsibilities and duties of leadership, as well as the critical role of community and economic development. It is essential that leadership development also includes youth, as they are the leaders of tomorrow.
(4) Public-private collaboration. -- As hierarchies and bureaucracies collapse into networks and linkages, public-private collaboration is coming to the forefront. Collaboration between the public and private sectors, starting with the joint commission on economic development, West Virginia workforce investment commission and West Virginia council for community and economic development, needs to lead the way for change in West Virginia. Collaborative relationships that have not previously existed, or have historically been tension-filled, need to be formed or strengthened to create a positive future for the state.
(5) Image Improvement. -- The image of West Virginia--both internal and external--needs to be improved. The problems facing the state today should be acknowledged, but the natural assets and the "good news" about the state needs to be communicated both inside and outside of West Virginia. Many misconceptions and historic stereotypes can be replaced with positive images and perceptions through quality marketing and branding activities.
(6) Increase Nonprofit capacity. -- The important role nonprofits play is often overlooked. The nonprofit system in West Virginia is underdeveloped and needs a significant boost to assume its critical role as a bridge between private sector and public sector efforts. A considerable increase in funding, training, and support needs to be dedicated to helping nonprofits already in place around the state and forming more community-based organizations in areas that are currently underserved.
§5B-3-8. Reexamination of vision and goals.

Every fourth year after the first day of January, two thousand one, the joint commission on economic development, established pursuant to article three-c, chapter twenty-nine-a of this code, shall conduct a thorough examination of the vision and goals set forth in this article and may recommend statutory changes relating to the vision and goals to the Legislature.
ARTICLE 7. ECONOMIC DEVELOPMENT PERFORMANCE BASED ACCOUNTABILITY.
§5B-7-1. Performance measures and indicators.
(a) Each state agency that has a direct effect on the goals set forth in article three of this chapter or has information relating to the indicators listed in this section shall cooperate with the department of tax and revenue, established in section two, article one, chapter five-f, and the development office, established pursuant to section one, article two of this chapter, by providing any information necessary or beneficial in developing a statewide economic development report.
It is the ultimate responsibility of the department of tax and revenue and the development office to:
(1) Coordinate with the governmental entities in collecting the data;
(2) Consolidate the data into one report that sets forth in a clear and understandable format the status of the state with respect to the goals set forth in article three of this chapter. At a minimum, the indicators set forth in this section shall be used in reporting the progress toward achieving the goals;
(3) Report to the joint commission by the first day of October of each year the progress toward achieving the goals outlined in this article; and
(4) Make the report available to the public electronically, including through the internet, and by hard copy for no more than the cost of printing or copying the report
.
(b) With respect to intellectual infrastructure in the twenty- first century, the performance indicators shall include at least the following:
(1) High school graduation rate;
(2) Scholastic achievement test scores;
(3) College completion rate;
(4) Rate of graduates in subject matter shortage areas as determined by the research, information and analysis division of the bureau of employment programs;
(5) Attendance at two-year colleges;
(6) Drop-out rate;
(7) GED attainment rate;
(8) Primary and secondary education test scores; and
(9) Rate of college graduates staying in West Virginia.
(c) With respect to the new economy: new challenges and new solutions, the performance indicators shall include at least the following:
(1) Per capita income;
(2) Unemployment rate;
(3) Exports by state-based firms;
(4) Small business creation rate;
(5) Existing business investments;
(6) Tourism visitation and expenditures;
(7) Retail sales tax revenues; and
(8) Poverty rate.
(d) With respect to results-based government: planning for the future, the performance indicators shall include at least the following:
(1) Business tax reform;
(2) Changes in workers' compensation ratings;
(3) Medical costs;
(4) Teen pregnancy;
(5) Investment in local/regional infrastructure development;
(6) Reduction in infant mortality rate; and
(7) Per capita tax burden.
(e) With respect to building bridges and empowering citizens, the performance indicators shall include at least the following:
(1) Number of nonprofits statewide;
(2) Creation of regional economic development groups;
(3) Consolidation of area/region services;
(4) Number of public/private collaborations statewide;
(5) Changes in national livability ratings; and
(6) Improved external image of the state.
§5B-7-2. Policy and program evaluations.
(a) There is an on-going debate about whether economic development incentives are a necessary economic development tool or a wasteful use of scarce public funds. What is needed is a more comprehensive model of assessment that would evaluate not only the efficiency of program administration, but also incentive appropriateness and effectiveness:
(b) Appropriateness. -- This involves understanding the context in which the program was created and the goals it was designed to address. In other words, what were the development problems, opportunities and trends that led to the creation of the incentive? Questions to answer regarding any new or existing programs include:
(1) Are the incentives still a relevant strategy in helping to achieve the objectives of high quality jobs, high performance enterprises and widely shared prosperity;
(2) What specific objectives are incentives best equipped to address;
(3) How might incentive outcomes be best measured;
(4) How might they be complemented by other program initiatives;
(5) Are other economic development tools potentially more relevant as priority actions; and
(6) If the programs are no longer appropriate (because of changing circumstances), how might they be changed to better fit state priorities?
(c) Effectiveness. -- Any evaluation must include a thorough calculation of the relative costs and benefits of the program or policy in question. In addition, they must seek to take a tough look at whether those incentives really made a difference in company decisions. Questions may include:
(1) Did the actual number of jobs and capital investment match the anticipated;
(2) What were the public costs per job;
(3) Would the investments have happened outside the incentive;
(4) Using multipliers, what was the secondary job impact;
(5) What were the distributional effects (such as did local workers get the jobs and did minorities get the jobs);
(6) What was the quality of jobs created or retained; and
(7) What were the fiscal impacts (such as estimated revenue gains and losses)?
(d) Efficiency. -- A final component of the evaluation would be to measure the efficiency with which program outcomes have been achieved. In other words, how simple and costly has administration been, for both managers and customers? It looks at the costs of program inputs and the efficiency of administrative processes. This could also entail looking at the administrative and related design issues that affected the use of incentives by private firms. Likewise, what are the trade-offs between administrative targeting issues and administrative simplicity concerns? How might those goals be more effectively tackled? Another issue to address would be the degree of customer satisfaction with the program management.
§5B-7-3. Accountability for new programs.
Any economic development or workforce investment legislation, rules or programs established through any other method relating to economic development or workforce investment shall include provisions outlining outcome based and performance based accountability. Additionally, the legislation or rules shall include a description of the benchmark indicators that will be utilized to gauge the progression of productivity against the performance measurements. These indicators shall compare effectiveness to national and state data to provide a comparison of progress by which the state may measure the attainment of the goals listed above.
§5B-7-4. Accountability recommendations for existing programs.
(a) The department of tax and revenue, established in section two, article one, chapter five-f, and the development office, established pursuant to section one, article two of this chapter,
shall report to the joint commission on economic development by the first day of December, two thousand one, on recommendations on developing performance-based, accountability evaluation of all present economic development programs. This evaluation shall include a description of the benchmark indicators that will be utilized to gauge the progression of productivity against the performance measurements. These indicators shall compare effectiveness to national and state data to provide a comparison of progress by which the State may measure the attainment of the goals listed above.
(b) All agencies implementing economic development programs shall cooperate with the department of tax and revenue and the development office, by providing the information needed to accomplish the objective set forth in subsection (a) of this section.

§5B-7-5. Elements of an effective incentive evaluation system.
(a) A well-constructed incentive evaluation system shall be integrated into the planning, operation, monitoring and improvement of a program. Economic development agencies, as defined by the joint commission, should develop an operational plan that defines how the incentive program will be organized, staffed and conducted on a daily operational basis. That plan should incorporate a well- defined scheme for monitoring and evaluation as a key component of the program's ongoing activities. The monitoring and evaluation component of the operating plan should:
(1) Identify programs or activities to be evaluated;
(2) Articulate reasons for conducting the evaluation;
(3) Develop goals to be achieved by the evaluation;
(4) Indentify actors and their respective roles in the evaluation;
(5) Identify planned uses of the evaluation results;
(6) Establish decision rules for judging program performance;
(7) Describe resource constraints;
(8) Identify data needs and sources;
(9) Determine analytic tools to be used; and
(10) Designate the performance time period to be assessed.
(b) Monitoring and evaluation tools may include:
(1) Collecting outcome data that are directly related to the policy goals that programs aim to achieve; and
(2) Developing data collection and analysis techniques that look beyond job creation to wages of jobs, the impacts of development on quality of life and the availability of jobs to unemployed or underemployed individuals in different ethnic groups or geographic areas. The data collection and analysis techniques may include the following:
(A) Define clearly the basic purpose and policy goals of incentives.
(B) Develop better program planning, designing and implementing effective performance monitoring and evaluation;
(C) Set realistic expectations and benchmarks against which program outcomes may be measured;
(D) Ensure that sufficient management attention and resources are allocated to monitoring and evaluation responsibilities;
(E) Design monitoring systems to allow for simultaneous assessment of individual project impacts, program evaluation and portfolio (or agencywide) reviews; and
(F) Invest in training for economic development practitioners to enhance their skills in the design of performance monitoring and evaluation.
§5B-7-6. Unified economic development budget.

(a) In West Virginia, there is not a comprehensive understanding of how much is spent on economic development. The reason for this is that investments in economic development include both line-item expenditures and off-budget tax incentives, as well as a range of interest subsidies, public agency commitments, financings by quasi-public corporations and other activities. One strategy for addressing this knowledge gap is the creation of a unified (or integrated) economic development budget. Such a budget allows the governor, Legislature, state agencies and citizenry to better see what is presently being spent on economic development. The unified economic development budget offers answers to some initial questions around economic development such as: What do we spend on economic development? What are our spending priorities? What types of firms, industries and communities are assisted by these tax preferences?
(b) The department of tax and revenue, established in section two, article one, chapter five-f, and the development office, established pursuant to section one, article two of this chapter, in cooperation with all other agencies involved in economic development programs, shall establish an unified economic development budget for inclusion in a separate section, entitled "economic development", of the executive budget operating detail.
The unified economic development budget shall include both line item expenditures and off-budget tax incentives. All other state agencies shall cooperate with the department of tax and revenue and the development office by providing all information requested for the purpose of completing the unified economic development budget.
(c) The unified economic development budget should include:
(1) Only those expenditures whose primary purpose is economic development. This means we count only conscious public policy and state expenditure decisions directed toward improving the economic well-being of the state as a whole, and it regions, towns and neighborhoods. Programs that seek to accomplish this end can be structured to focus principally on a number of different goals including increasing employment and per capita incomes, expanding the tax base, spreading growth to poorer areas, modernizing existing industry, training workers with specific job skills, developing and commercializing new technologies, attracting and retaining business or promoting minority enterprise;
(2) Economic development programs that may be based in any number of agencies or organizations including public agencies, quasi-public corporations, private enterprise or nonprofits;
(3) Both on-budget and off-budget economic development spending. Direct on-budget programs might provide grants, loans, customized training and infrastructure improvements. Off-budget activities typically take place in the form of tax expenditures, including, but not limited to, tax relief, credits and incentives;
(4) Other changes in the tax code that further the state's tax competitiveness and economic development goals; and
(5) Any other items requested by the joint commission on
economic development.
§5B-7-7. Study of decreasing required number of reports.
The department of tax and revenue, established in section two, article one, chapter five-f, and the development office, established pursuant to section one, article two of this chapter, shall perform a study of any economic development reports that are required of any state governmental agency by any law or rule. Prior to the first day of December, two thousand one, the department shall report back to the commission on the findings of the study and recommendations for the elimination of any required reports due to duplication, obsolescence or for any other reason.
CHAPTER 29A. STATE ADMINISTRATIVE PROCEDURES ACT.

ARTICLE 3C. JOINT COMMISSION ON ECONOMIC DEVELOPMENT AND ECONOMIC DEVELOPMENT RULE MAKING.

§29A-3C-1. Definitions.
As used in this article:
(a) "Commission" means the joint commission on economic development; and
(b) "Board" means the council for community and economic development, the development office and the tourism commission, all established pursuant to article two, chapter five-b of this code, the economic development authority established pursuant to article fifteen, chapter thirty-one of this code, the bureau of employment programs established pursuant to article four, chapter twenty-one-a of this code or the workforce investment commission established pursuant to article two-c, chapter five-b, West Virginia jobs investment trust, regional planning and development councils, West Virginia rural development council, governor's office of technology, West Virginia clearinghouse for workforce education. "Board" also shall mean any other agency that promulgates rules relating to economic development or workforce development, except that this definition shall apply only with respect to the promulgation of a rule relating to economic development or workforce development if the agency is not specifically listed under this definition. Whether or not the rules relate to economic development or workforce development shall be determined solely by the commission. Nothing in this article shall be construed to give any agency authority to promulgate rules if the agency is not otherwise given authority to promulgate rules by this code.
§29A-3C-2. Economic development and workforce investment rules to be promulgated only in accordance with this article and other applicable provisions.

(a) In addition to other rule-making requirements imposed by articles three, three-a and three-b of this chapter or any other provision of
law and except to the extent specifically exempted by the provisions of this chapter or other applicable law, every economic development or workforce investment rule, as determined by the commission (including any amendment of or rule to repeal any other rule), shall be promulgated by the board in accordance with this article and shall be and remain effective only to the extent that it has been or is promulgated in accordance with this article and other applicable provisions of code.
(b) Nothing in the article shall be construed to eliminate the requirement that economic development and workforce investment rules be promulgated in accordance with article three, three-a or three-b of this chapter. Legislative rules related to economic development and workforce investment, as determined by the commission, shall be filed with the commission prior to being filed with the legislative rule-making review committee created in article three of this chapter or the legislative oversight commission on education accountability created in article three-a of this chapter.
§29A-3C-3. Limitations on authority to exercise rule-making power.

(a) Except when, and to the extent, that this chapter or any other provision of law now or hereafter made expressly exempts the board, or a particular grant of the rule-making power, from the provisions of this article, every grant of rule-making authority to the board heretofore provided shall be construed and applied to be effective only:
(1) If heretofore lawfully exercised in accordance with the prior provisions of this chapter and the resulting rule has not been revoked or invalidated by the provisions hereof or by the board; or
(2) If exercised in accordance with the provisions hereof.
(b) The board shall not be considered to have the power and authority to promulgate a legislative rule without compliance with this article unless: (1) The provision of this code, heretofore or hereafter enacted, granting such power and authority, expressly exempts its exercise from legislative rule-making review prior to promulgation; or (2) the grant of such power and authority is exempted from the application of this chapter by the express provisions of this chapter. To the extent any such grant of power and authority, not so exempt, shall be considered to exceed the limits and provisions of this article, such power and authority to promulgate legislative rules is revoked.
§29A-3C-4. Rules of procedure required.

In addition to other rule-making requirements imposed by law:
(a) The board shall adopt procedural rules governing the formal and informal procedures prescribed or authorized by this chapter. Procedural rules shall include rules of practice before the board, together with forms and instructions.
(b) To assist interested persons dealing with it, the board, shall so far as considered practicable, supplement its rules with descriptive statements of its procedures.
§29A-3C-5. Filing of proposed procedural rules and interpretive rules.

(a) When the board proposes a procedural rule or an interpretive rule, the agency shall file in the state register a notice of its action, including the text of the rule as proposed.
(b) All proposed rules filed under subsection (a) of this section shall have a fiscal note attached itemizing the cost of implementing the rules as they relate to this state and to persons affected by the rules. Such fiscal note shall include all information included in a fiscal note for either house of the Legislature and a statement of the economic impact of the rule on the state or its residents. The objectives of the rules shall be clearly and separately stated in the fiscal note by the agency issuing the proposed rules. No procedural or interpretive rule shall be void or voidable by virtue of noncompliance with this subsection.
§29A-3C-6. Notice of proposed rulemaking.

When the board proposes to promulgate a rule other than an emergency rule, it shall file with the secretary of state, for publication in the state register, a notice of its action, including therein any request for the submission of evidence to be presented on any factual determinations or inquiries required by law to promulgate such rule. At the time of filing the notice of its action, the board shall also file with the secretary of state a copy of the full text of the rule proposed and a fiscal note as defined in subsection (b), section five of this article. If the board is considering alternative draft proposals, it may also file with the secretary of state the full text of such draft proposals.
The notice shall fix a date, time and place for the receipt of public comment in the form of oral statements, written statements, and documents bearing upon any findings and determinations which are a condition precedent to the final approval by the board of the proposed rule and shall contain a general description of the issues to be decided. If no specific findings and determinations are required as a condition precedent to the final approval by the board of the approved rule, the notice shall fix a date, time and place for the receipt of general public comment on the proposed rule.
If findings and determinations are a condition precedent to the promulgation of such rule, then an opportunity for general public comment on the merits of the rule shall be afforded after such findings and determinations are made. In such event, notice of the hearing, or of the period for receiving public comment on the proposed rule shall be attached to and filed as a part of the findings and determinations of the board when filed in the state register.
In any hearing for public comment on the merits of the rule, the board may limit presentations to written material. The time, date and place fixed in the notice shall constitute the last opportunity to submit any written material relevant to any hearing, all of which may be earlier submitted by filing with the board. After the public hearing or the close of the public comment period, whichever is later, the board shall not permit the filing or receipt of, nor shall it consider, any attempted ex parte communications directed to it in the form of additional comment, prior to the submission of its final board-approved rule to the joint commission on economic development.
The board may also, at its expense, cause to be published as a Class I legal publication in every county of the state any notice required by this section.
Any citizen or other interested party may appear and be heard at such hearings as are required by this section.
§29A-3C-7. Filing findings and determinations for rules in state register; evidence considered public record.

(a) Incident to fixing a date for public comment on a proposed rule, the board shall promulgate the findings and determinations required as a condition precedent thereto and state fully and succinctly the reasons therefor and file such findings and determinations in the state register. If the board amends the proposed rule as a result of the evidence or comment presented pursuant to section six, such amendment shall be filed with a description of any changes and statement listed for the amendment.
(b) The statement of reasons and a transcript of all evidence and public comment received pursuant to notice are public records and shall be carefully preserved by the board and be open for public inspection and copying for a period of not less than five years from the date of the hearing.
§29A-3C-8. Notice of hearings.

Notices of hearings required by sections six and seven of this article shall be filed in the state register not less than thirty nor more than sixty days before the date of such hearing or the last day specified therein for receiving written material. Any hearing may be continued from time to time and place to place by the board which shall have the effect of extending the last day for receipt of evidence or public comment. Notice of such continuance shall be promptly filed thereafter in the state register.
§29A-3C-9. Adoption of procedural and interpretive rules.

A procedural and interpretive rule, shall be considered by the board for adoption not later than six months after the close of public comment and a notice of withdrawal or adoption shall be filed in the state register within that period. Failure to file such notice shall constitute withdrawal and the secretary of state shall note such failure in the state register immediately upon the expiration of the six-month period.
A procedural or interpretive rule may be amended by the board prior to final adoption without further hearing or public comment. No such amendment may change the main purpose of the rule. If the fiscal implications have changed since the rule was proposed, a new fiscal note shall be attached to the notice of filing. Upon adoption of the rule (including any such amendment), the board shall file the text of the adopted procedural or interpretive rule with its notice of adoption in the state register and the same shall be effective on the date specified in the rule or thirty days after such filing, whichever is later.
§29A-3C-10. Proposal of legislative rules.

When the board proposes a legislative rule, other than an emergency rule, it shall be considered to be applying to the Legislature for permission, to be granted by law, to promulgate such rule as approved by the board for submission to the Legislature or as amended and authorized by the Legislature by law.
When proposing a legislative rule, other than an emergency rule, and after filing the notice of proposed rulemaking required by the provisions of section six of this article, the board shall then proceed as in the case of a procedural and interpretive rule to the point of, but not including, final adoption. In lieu of final adoption, the board shall finally approve the proposed rule, including any amendments, for submission to the Legislature and file such notice of approval in the state register and with the joint commission on economic development, as well as with the legislative rule-making review committee or the oversight commission on education accountability, whichever is appropriate.
Such final approval of the rule under this section is considered to be approval for submission to the Legislature only and does not give any force and effect to the proposed rule. The rule shall have full force and effect only when authority for promulgation of the rule is granted by an act of the Legislature and the rule is promulgated pursuant to the provisions of section fifteen of this article.
§29A-3C-11. Creation of a joint commission on economic development.

(a) There is hereby created a joint commission of the Legislature known as the joint commission on economic development to review all economic development and workforce investment related legislative rules of the board prior to the submission of the rules to the legislative rule-making review committee or the legislative oversight commission on education accountability, whichever is appropriate. The commission shall be composed of sixteen members. These members shall include: The chairmen of the Senate and House of Delegates finance committees; the chairmen of the Senate and House of Delegates judiciary committees; the chairmen of the Senate and House of Delegates education committees; the chairmen of the Senate and House of Delegates health committees; four additional members of the Senate appointed by the president of the Senate; and four additional members of the House of Delegates appointed by the speaker of the House of Delegates. No more than three of the four members appointed by the president of the Senate and the speaker of the House of Delegates, respectively, may be members of the same political party. In addition, the president of the Senate and the speaker of the House of Delegates shall be ex officio nonvoting members of the commission and shall designate the cochairmen. The members shall serve until their successors shall have been appointed as heretofore provided. Members of the commission shall receive such compensation and expenses as provided in article two- a, chapter four of this code. Such expenses and all other expenses including those incurred in the employment of legal, technical, investigative, clerical, stenographic, advisory and other personnel shall be paid from an appropriation to be made expressly for the joint commission on economic development, but if no such appropriation be made, such expenses shall be paid from the appropriation under "Account No. 103 for Joint Expenses", but no expense of any kind whatever payable under said account for joint expenses shall be incurred unless first approved by the joint committee on government and finance. The commission shall meet at any time both during sessions of the Legislature and in the interim.
(b) The commission may adopt such rules of procedure as it considers necessary for the submission, presentation and consideration of rules.
(c) The commission may originate bills in either house of the Legislature or both the Senate and the House of Delegates as determined by the commission. However, the commission may only exercise this authority during a legislative session.
(d) The joint commission on economic development may explore how West Virginia can:
(1) Invest in systems that build workforce skills and promote lifelong learning to ensure a competitive workforce;
(2) Enhance the infrastructure, communications and transportation needed to support the knowledge-based industries and electronic commerce;
(3) Reengineer government to deliver services more efficiently, using technology, privatization and partnerships with the private sector;
(4) Align state tax systems to meet the demands of the twenty- first century economy;
(5)Develop more uniform regulatory and tax systems to reduce complexity, eliminate market distortions and better protect consumers;
(6) Support entrepreneurs by streamlining business regulations, providing timely decisions and assisting firm in their search for venture capital;
(7) Promote university policies that encourage research and development and build intellectual infrastructure;
(8) Address quality-of-life concerns to attract new businesses and workers; and
(9) Accomplish the goals set forth in article three, chapter five-b and any other goal related to economic development or workforce investment that the commission considers important.
§29A-3C-12. Additional powers and duties; subpoena powers.

(a) In addition to the powers and duties conferred upon the commission pursuant to the provisions of this article, the commission shall make a continuing investigation, study and review of the practices, policies and procedures of the board and of any and all matters related to economic development or workforce investment in the state and shall make annual reports to the Legislature of the results of such investigation, study and review.
(b) These reports shall describe and evaluate in a concise manner:
(1) The major activities of the board for the fiscal year immediately past, including important policy decisions reached on initiatives undertaken during that year.
(2) Other information considered by the commission to be important, including recommendations for statutory, fiscal or other reform and reasons for such recommendations.
Further, these reports may specify in what manner said practices, policies and procedures may or should be modified to satisfy said constitutional requirement and to improve the quality of education at all levels in this state.
The commission may meet as often as may be necessary and employ such professional, clerical and technical personnel as it considers necessary to perform effectively the duties herein prescribed.
(c) For purposes of carrying out its duties, the commission is hereby empowered and authorized to examine witnesses and to subpoena such persons and books, records, documents, papers or any other tangible things as it believes should be examined to make a complete investigation. All witnesses appearing before the commission shall testify under oath or affirmation and any member of the commission may administer oaths or affirmations to such witnesses. To compel the attendance of witnesses at such hearings or the production of any books, records, documents, papers or any other tangible thing, the commission is hereby empowered and authorized to issue subpoenas, signed by one of the cochairmen. Such subpoenas shall be served by any person authorized by law to serve and execute legal process and service shall be made without charge. Witnesses subpoenaed to attend hearings shall be allowed the same mileage and per diem as is allowed witnesses before any petit jury in this state.
If any person subpoenaed to appear at any hearing shall refuse to appear or to answer inquiries there propounded, or shall fail or refuse to produce books, records, documents, papers or any other tangible thing within his control when the same are demanded, the commission shall report the facts to the circuit court of Kanawha County or any other court of competent jurisdiction and such court may compel obedience to the subpoena as though such subpoena had been issued by such court in the first instance.
§29A-3C-13. Submission of legislative rules to the joint commission on economic development.

(a) When the board finally approves a proposed legislative rule relating to economic development or workforce investment, as determined by the commission, for submission to the Legislature prior to the submission of the rule to the legislative rule-making review committee or to the legislative oversight commission on education accountability, whichever is appropriate, the board shall submit to the joint commission on economic development at its offices or at a regular meeting of such commission twenty copies of: (1) The full text of the legislative rule as finally approved by the board, with new language underlined and with language to be deleted from any existing rule stricken-through but clearly legible; (2) a brief summary of the content of the legislative rule and a description and a copy of any existing rule which the agency proposes to amend or repeal; (3) a statement of the circumstances which require the rule; (4) a fiscal note containing all information included in a fiscal note for either house of the Legislature and a statement of the economic impact of the rule on the state or its residents; and (5) any other information which the commission may request or which may be required by law.
(b) The commission shall review each proposed legislative rule and, in its discretion, may hold public hearings thereon. Such review shall include, but not be limited to, a determination of:
(1) Whether the board has exceeded the scope of its statutory authority in approving the proposed legislative rule;
(2) Whether the proposed legislative rule is in conformity with the legislative intent of the statute which the rule is intended to implement, extend, apply, interpret or make specific;
(3) Whether the proposed legislative rule conflicts with any other provision of this code or with any other rule adopted by the same or a different agency;
(4) Whether the proposed legislative rule is necessary to fully accomplish the objectives of the statute under which the proposed rule was promulgated;
(5) Whether the proposed legislative rule is reasonable, especially as it affects the convenience of the general public or of persons particularly affected by it;
(6) Whether the proposed legislative rule could be made less complex or more readily understandable by the general public; and
(7) Whether the proposed legislative rule was promulgated in compliance with the requirements of this article and with any requirements imposed by any other provision of this code.
(c) After reviewing the legislative rule, the commission shall recommend that the Legislature:
(1) Authorize the board to promulgate the legislative rule; or
(2) Authorize the board to promulgate part of the legislative rule; or
(3) Authorize the board to promulgate the legislative rule with certain amendments; or
(4) Recommend that the rule be withdrawn.
The commission shall file notice of its action in the state register, with the board proposing the rule, with legislative rule- making review or with the legislative oversight commission on education accountability, whichever is appropriate: Provided,
That when the commission makes the recommendations of subdivision (2), (3) or (4) of this subsection, the notice shall contain a statement of the reasons for such recommendation.
§29A-3C-14. Submission of legislative rules to legislative rule- making review or to the legislative oversight commission on education accountability.

For each rule considered, the cochairmen of the joint commission on economic development shall submit to the legislative rule-making review committee or the legislative oversight commission on education accountability, whichever is appropriate, the recommendations of the joint commission relating to the economic development or workforce investment rule.
§29A-3C-15. Adoption of legislative rules; effective date.

(a) Except as the Legislature may by law otherwise provide, within sixty days after the effective date of an act authorizing promulgation of a legislative rule, the board shall promulgate the rule only in conformity with the provisions of law authorizing and directing the promulgation of such rule.
(b) A legislative rule authorized by the Legislature shall become effective thirty days after such filing in the state register or on the effective date fixed by the authorizing act or if none is fixed by law, such later date not to exceed ninety days, as is fixed by the board.
(c) The secretary of state shall note in the state register the effective date of an authorized and promulgated legislative rule, and shall file such legislative rule in the state register in lieu of the proposed legislative rule previously filed.
§29A-3C-16. Withdrawal or modification of proposed rules.

(a) Any legislative rule proposed by the board may be withdrawn any time before passage of a law authorizing or authorizing and directing its promulgation, but no such action shall be construed to affect the validity, force or effect of a law enacted authorizing or authorizing and directing the promulgation of an authorized legislative rule or exercising compliance with such law. The board shall file a notice of any such action in the state register.
(b) At any time before a proposed legislative rule has been submitted by the joint commission on economic development to the Legislature, the board may modify the proposed rule to meet the objections of the commission. The board shall file in the state register a notice of its modifying action including a copy of the modified rule, but shall not be required to comply with any provisions of this article requiring opportunity for public comment or taking of evidence with respect to such modification. If a legislative rule has been withdrawn, modified and then resubmitted to such commission, the rule shall be considered to have been submitted to such commission on the date of such resubmission.
§29A-3C-17. Emergency legislative rules; procedure for promulgation; definition.

(a) The board may, without hearing, find that an emergency exists requiring that emergency rules be promulgated and promulgate the same in accordance with this section. Such emergency rules, together with a statement of the facts and circumstances constituting the emergency, shall be filed in the state register and shall become effective immediately upon such filing. Such emergency rules may adopt, amend or repeal any legislative rule, but the circumstances constituting the emergency requiring such adoption, amendment or repeal shall be stated with particularity and be subject to de novo review by any court having original jurisdiction of an action challenging their validity.
If the board files an economic development or workforce investment emergency rule, as determined by the commission, twenty copies of emergency rules and of the required statement of the facts and circumstances constituting the emergency shall be filed forthwith with the joint commission on economic development prior to filing with the legislative rule-making review committee or the legislative oversight commission on education accountability.
An emergency rule shall be effective for not more than fifteen months and shall expire earlier if any of the following occurs:
(1) The secretary of state, acting under the authority provided for in section eighteen of this article, disapproves the emergency rule because: (A) The emergency rule or an amendment to the emergency rule exceeds the scope of the law authorizing or directing the promulgation thereof; (B) an emergency does not exist justifying the promulgation of the emergency rule; or (C) the emergency rule was not promulgated in compliance with the provisions of this section. An emergency rule may not be disapproved pursuant to the authority granted by paragraphs (A) or (B) of this subdivision on the basis that the secretary of state disagrees with the underlying public policy established by the Legislature in enacting the supporting legislation. An emergency rule which would otherwise be approved as being necessary to comply with a time limitation established by this code or by a federal statute or regulation may not be disapproved pursuant to the authority granted by paragraphs (A) or (B) of this subdivision on the basis that the board has failed to file the emergency rule prior to the date fixed by such time limitation. When the supporting statute specifically directs the board to promulgate an emergency rule, or specifically finds that an emergency exists and directs the promulgation of an emergency rule, the emergency rule may not be disapproved pursuant to the authority granted by paragraph (B) of this subdivision. An emergency rule may not be disapproved on the basis that the Legislature has not specifically directed the board to promulgate the emergency rule, or has not specifically found that an emergency exists and directed the promulgation of an emergency rule.
(b) The joint commission on economic development may review any emergency rule to determine: (1) Whether the board has exceeded the scope of its statutory authority in promulgating the emergency rule; (2) whether there exists an emergency justifying the promulgation of such rule; and (3) whether the rule was promulgated in compliance with the requirements and prohibitions contained in this section. The commission may recommend to the board, the Legislature, or the secretary of state such action as it may consider proper.
(c) For the purposes of this section, an emergency exists when the promulgation of a rule is necessary for the immediate preservation of the public peace, health, safety or welfare or is necessary to comply with a time limitation established by this code or by a federal statute or regulation or to prevent substantial harm to the public interest.
§29A-3C-18. Disapproval of emergency rules by the secretary of state; judicial review.

(a) Upon the filing of an emergency rule by the board, under the provisions of section seventeen of this article, the secretary of state shall review such rule and, within forty-two days of such filing, shall issue a decision as to whether or not such emergency rule should be disapproved.
(b) The secretary of state shall disapprove an emergency rule if he determines:
(1) That the emergency rule or an amendment to the emergency rule exceeds the scope of the law authorizing or directing the promulgation thereof; or
(2) That an emergency does not exist justifying the promulgation of the emergency rule or the filing of an amendment to the emergency rule; or
(3) That the emergency rule or an amendment to the emergency rule was not promulgated in compliance with the provisions of section seventeen of this article.
(c) If the secretary of state determines, based upon the contents of the rule or the supporting information filed by the board, that the emergency rule should be disapproved, he may disapprove such rule without further investigation, notice or hearing. If, however, the secretary of state concludes that the information submitted by the board is insufficient to allow a proper determination to be made as to whether the emergency rule should be disapproved, he may make further investigation, including, but not limited to, requiring the board or other interested parties to submit additional information or comment or fixing a date, time and place for the taking of evidence on the issues involved in making a determination under the provisions of this section.
(d) The determination of the secretary of state shall be reviewable by the supreme court of appeals under its original jurisdiction, based upon a petition for a writ of mandamus, prohibition of certiorari, as appropriate. Such proceeding may be instituted by:
(1) The board;
(2) A member of the Legislature; or
(3) Any person whose personal property interests will be significantly affected by the approval or disapproval of the emergency rule by the secretary of state.
§29A-3C-19. Legislative review of procedural rules, interpretive rules and existing legislative rules.

The joint commission on economic development may review any procedural rules, interpretive rules or existing legislative rules and may make recommendations concerning such rules to the Legislature, or to the board, or to both the Legislature and the board.
§29A-3C-20. Prior rules.

Any rule lawfully promulgated prior to the effective date of this chapter shall remain in full force and effect until:
(1) Such rule is expressly made ineffective by the provisions of this chapter; or
(2) Such rule should expire by reason of failure to refile the same as provided in section five of article two or expires pursuant to its own terms and provisions lawfully made before the effective date of this section; or
(3) Such rule is repealed by the lawful act of the board, in conformity with this chapter; or
(4) Such rule is invalidated by an act of the Legislature or the force and effect of another law.
§29A-3C-21. Severability of legislative rules.
Unless there is a provision in a legislative rule specifying that the provisions thereof shall not be severable, the provisions of every legislative rule, whether enacted before or subsequent to the effective date of this section, shall be severable so that if any provision of any rule section or amendment thereto is held to be unconstitutional or void, the remaining provisions of the rule shall remain valid, unless the court finds the valid provisions are so essentially and inseparably connected with and so dependent upon the unconstitutional or void provision that the court cannot presume the Legislature would have enacted the remaining valid provisions without the unconstitutional or void one, or unless the court finds the remaining valid provisions, standing alone, are incomplete and are incapable of being executed in accordance with the legislative intent: Provided, That if any legislative rule has its own severability clause, then that severability clause shall govern and control with respect to that section, in lieu of the provisions of this section. The provisions of this section shall be fully applicable to all future amendments to legislative rules, with like effect as if the provisions of this section were set forth in extenso and every such amendment were reenacted as a part thereof, unless such amendment to the legislative rule contains its own severability clause.
§29A-3C-22. Joint commission on economic development studies.
(a) The joint commission on economic development shall undertake the following studies:
(1) The feasibility of establishing common regional configurations for such purposes as local workforce investment areas, regional educational service agencies and for all other purposes the commission considers feasible. The study should review the existing levels of cooperation between state and local economic developers; complete an analysis of possible regional configurations and outline example of other successful regional systems or networks found throughout the world. If the study determines that the common regional configurations are feasible, the commission shall recommend legislation establishing common regional designations for all purposes the commission considers feasible. In making the designation of regional areas, the study shall take into consideration, but not be limited to, the following:
(A) Geographic areas served by local educational agencies and intermediate educational agencies;
(B) Geographic areas served by post-secondary educational institutions and area vocational education schools;
(C) The extent to which such local areas are consistent with labor market areas;
(D) The distance that individuals will need to travel to receive services provided in such local areas; and
(E) The resources of such local areas that are available to effectively administer the activities or programs;
(2) The effectiveness and fiscal impact of incentives for attracting and growing businesses, especially technology-intensive companies; and
(3) A comprehensive review of West Virginia's existing economic and community development resources and the recommendation of an organizational structure, including but not limited to the reorganization of the bureau of commerce and the development office, that would allow the state to successfully compete in the new global economy.
(b) The joint commission shall complete the studies set forth in this section and any other studies it determines to undertake prior to the first day of December of each year and may make recommendations, including recommended legislation for introduction during the regular session of the Legislature.

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