H. B. 2725
(By Delegate Vest and Manuel)
[Introduced March 25, 1993; referred to the
Committee on Political Subdivisions.]
A BILL to amend and reenact sections one, three, three-a, seven,
seven-a, twelve, thirteen and sixteen, article twelve,
chapter seven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; and to further amend
said article twelve by adding thereto a new section,
designated section three-b, all relating to community and
industrial development authorities; establishing regional
authorities; authorizing county and regional authorities to
employ an industrial development director; and prescribing
qualifications and responsibilities of the director;
requiring reports and eliminating publication requirements;
expanding scope of audits; and providing for confidentiality
of information for development authorities.
Be it enacted by the Legislature of West Virginia:
That sections one, three, three-a, seven, seven-a, twelve,
thirteen and sixteen, article twelve, chapter seven of the code
of West Virginia, one thousand nine hundred thirty-one, asamended, be amended and reenacted; and that said article twelve
be further amended by adding thereto a new section, designated
section three-b, all to read as follows:
ARTICLE 12. REGIONAL, COUNTY AND MUNICIPAL DEVELOPMENT
AUTHORITIES.
§7-12-1. Establishment of authorities authorized; name;
exceptions.
Except as hereinafter provided, the governing body of every
municipality and the county commission of every county is hereby
authorized to create and establish a public agency to be known as
a development authority. A county commission may also join the
county commissions of other counties to create and establish a
public agency to be known as a regional development authority.
The name of the authority shall contain the words "development
authority," together with the designation of the municipality, or
the county, or region within which such authority is intended to
operate. Nothing in this article contained, however, shall be
construed as permitting the governing body of any municipality or
county commission of any county or region in which there exists
on the date on which this article becomes effective one or more
public development authorities, corporations or commissions,
organized and existing pursuant to an act or acts of the
Legislature, either local or general, and performing
substantially the same or similar functions as the development
authorities herein authorized, to create and establish such a
development authority until such time as all such other publicdevelopment authorities, corporations and commissions cease
operations in such municipality or county: Provided, That
nothing herein shall be construed to prohibit the creation and
establishment of a municipal development authority when a county
or regional development authority exists, and any municipal
development authority shall have the exclusive right to exercise
its powers granted pursuant to this article within the boundaries
of the municipality.
§7-12-3. Management and control of county authority vested in
board; appointment and terms of members; vacancies;
removal of members.
The management and control of a county authority, its
property, operations, business and affairs shall be lodged in a
board of not fewer than twelve nor more than twenty-one persons
who shall be appointed by the county commission and be known as
members of the authority. One member shall be appointed by the
county commission to represent it on the board. The city and
town council of each municipality located within the county shall
submit to the county commission the name of one representative to
be appointed to the board. Other Members shall be appointed by
the county commission and shall be representative of the county
and include representatives of business, industry and labor. The
members of the authority first appointed shall serve respectively
for terms of one year, two years and three years, divided equally
or as nearly equal as possible between these terms. Thereafter,
members shall be appointed for terms of three years each. Amember may be reappointed for such additional term or terms as
the appointing agency may deem proper. If a member resigns, is
removed or for any other reason his membership terminates during
his term of office, a successor shall be appointed by the
appointing agency to fill out the remainder of his term. Members
in office at the expiration of their respective terms shall
continue to serve until their successors have been appointed and
have qualified. The appointing agency may at any time remove its
appointed member of the commission by an order duly entered of
record or by other action appropriate for such appointing agency
and may appoint a successor member for any member so removed.
The board may provide in its bylaws for the removal of any board
member for cause and request a replacement from the appointing
authority.
In addition to the appointing agencies hereinbefore named,
such other persons, firms, unincorporated associations, and
corporations, who reside, maintain offices, or have economic
interests, as the case may be, in the county, shall be eligible
to participate in and request the county commission to appoint
members to the development authority as the said authority shall
by its bylaws provide.
§7-12-3a. Management and control of municipal authority vested
in board; appointment and terms of members;
vacancies; removal of members.
The management and control of a municipal authority, its
property, operations, business and affairs shall be lodged in aboard of not fewer than twelve nor more than twenty-one persons
who shall be appointed by the governing body and be known as
members of the authority. One member of the authority shall also
be a member of the governing body appointed to represent it on
the board. Other members shall be appointed by the governing
body and shall be representative of the municipality and include
representatives of business, industry and labor. The members of
the authority first appointed shall serve respectively for terms
of one year, two years and three years, divided equally or as
nearly equal as possible between these terms. Thereafter,
members shall be appointed for terms of three years each. A
member may be reappointed for such additional term or terms as
the appointing agency may deem proper. If a member resigns, is
removed or for any other reason his membership terminates during
his term of office, a successor shall be appointed by the
appointing agency to fill out the remainder of his term. Members
in office at the expiration of their respective terms shall
continue to serve until their successors have been appointed and
have qualified. The appointing agency may at any time remove its
appointed member of the authority by an order duly entered of
record or by other action appropriate for such appointing agency
and may appoint a successor member for any member so removed.
In addition to the appointing agencies hereinbefore named,
such other persons, firms, unincorporated associations, and
corporations, who reside, maintain offices, or have economic
interests, as the case may be, in the municipality, are eligibleto participate in and request the governing body to appoint
members to the development authority as the said authority by its
bylaws provides.
§7-12-3b. Management and control of regional authority vested
in board; appointment and terms of members;
vacancies; removal of members.
The management and control of a regional authority, its
property, operations, business and affairs shall be lodged in a
board of not fewer than twelve nor more than twenty-one persons
an equal number of whom shall be appointed by each county
commission and be known as members of the authority. One member
shall be appointed by each county commission to represent it on
the board. Members shall be appointed by each county commission
and shall include representatives of business, industry and
labor. The members of the authority first appointed shall serve
respectively for terms of one year, two years and three years,
divided equally or as nearly equal as possible between these
terms. Thereafter, members shall be appointed for terms of three
years each. A member may be reappointed for such additional term
or terms as the appointing agency may deem proper. If a member
resigns, is removed or for any other reason his membership
terminates during his term of office, a successor shall be
appointed by the appointing agency to fill out the remainder of
his term. Members in office at the expiration of their
respective terms shall continue to serve until their successors
have been appointed and have qualified. The appointing agencymay at any time remove its appointed member of the authority by
an order duly entered of record or by other action appropriate
for such appointing agency and may appoint a successor member for
any member so removed.
In addition to the appointing agencies hereinbefore named,
such other persons, firms, unincorporated associations, and
corporations, who reside, maintain offices, or have economic
interests, as the case may be, in each county, shall be eligible
to participate in and request their county commission to appoint
members to the development authority as the said authority shall
by its bylaws provide.
§7-12-7. Powers generally.
The development authority is hereby given power and
authority as follows: (1) To make and adopt all necessary
bylaws, rules and regulations for its organization and operations
not inconsistent with laws; (2) to elect its own officers, to
appoint committees and to employ and fix compensation for
personnel necessary for its operation including appointing a
director who shall have at a minimum a bachelors degree in a
business, governmental or industry related field and who is
directly responsible to the authority for administering the
functions of the authority and supervising all other employees in
carrying out the purposes of the authority. The director shall
perform all necessary task related functions attendant to his or
her responsibilities and other tasks as the authority may assign;
(3) to enter into contracts with any person, agency, governmentaldepartment, firm or corporation, including both public and
private corporations, and generally to do any and all things
necessary or convenient for the purpose of promoting, developing
and advancing the business prosperity and economic welfare of the
county in which it is intended to operate, its citizens and
industrial complex, including, without limiting any of the
foregoing, the construction of any building or structure for
lease to the federal government or any of its agencies or
departments, and in connection therewith to prepare and submit
bids and negotiate with the federal government or such agencies
or departments in accordance with plans and specifications and in
the manner and on the terms and conditions and subject to any
requirements, regulations, rules and laws of the United States of
America for the construction of said buildings or structures and
the leasing thereof to the federal government or such agencies or
departments; (4) to amend or supplement any contracts or leases
or to enter into new, additional or further contracts or leases
upon such terms and conditions, for such consideration and for
such term of duration, with or without option of renewal, as may
be agreed upon by the authority and such person, agency,
governmental department, firm or corporation; (5) unless
otherwise provided for in, and subject to the provisions of, such
contracts, or leases, to operate, repair, manage, and maintain
such buildings and structures and provide adequate insurance of
all types, and in connection with the primary use thereof and
incidental thereto to provide such services, such as barbershops, newsstands, drugstores and restaurants, including, but not
limited to, wholesale, distribution and manufacturing activities
and to effectuate such incidental purposes, grant leases,
permits, concessions or other authorizations to any person or
persons, upon such terms and conditions, for such consideration
and for such term of duration as may be agreed upon by the
authority and such person, agency, governmental department, firm
or corporation; (6) to delegate any authority given to it by law
to any of its officers, committees, agents or employees; (7) to
apply for, receive and use grants-in-aid, donations and
contributions from any source or sources, and to accept and use
bequests, devises, gifts and donations from any person, firm or
corporation; (8) to acquire lands and other real property by
gift, purchase, or construction, or in any other lawful manner,
and hold title thereto in its own name; (9) to purchase or
otherwise acquire, own, hold, sell and dispose of personal
property and real estate, and to own, hold, sell, lease or
otherwise dispose of all or part of such personal property and
any real property which it may own; (10) pursuant to a
determination by the board that there exists a continuing need
for programs to alleviate and prevent unemployment within the
county in which the authority is intended to operate or aid in
the rehabilitation of areas in said county which are
underdeveloped, decaying or otherwise economically depressed, and
that moneys or funds of the authority are necessary therefor, to
borrow money and execute and deliver the authority's negotiablenotes, mortgage bonds, other bonds, debentures, and other
evidences of indebtedness therefor, on such terms as the
authority shall determine, and give such security therefor as
shall be requisite, including giving a mortgage or deed of trust
on its real or personal property and facilities in connection
with the issuance of mortgage bonds; (11) to raise funds by the
issuance and sale of revenue bonds in the manner provided by the
applicable provisions of article sixteen, chapter eight of this
code, it being hereby expressly provided that a development
authority created under this article is a "governing body" within
the definition of that term as used in said article sixteen,
chapter eight of this code; and (12) to expend its funds in the
execution of the powers and authority herein given, which
expenditures, by the means authorized herein, are hereby
determined and declared as a matter of legislative finding to be
for a public purpose and use, in the public interest, and for the
general welfare of the people of West Virginia, to alleviate and
prevent economic deterioration and to relieve the existing
critical condition of unemployment existing within the state.
§7-12-7a. Findings respecting necessity for exercise of right
of eminent domain; authorization to exercise right of
eminent domain.
(a) It is hereby found and determined by the Legislature
that in fulfilling their prescribed purposes and exercising their
powers, including the purpose of promoting, developing and
advancing the business prosperity and economic welfare of thecounty for which created by acquiring lands and other real
property to be furnished by lease, sale or other disposition as
industrial sites, regional and county development authorities are
performing essential public purposes; that the performance of
such essential public purposes are frequently impeded, unduly
delayed, or wholly frustrated by imperfections in the title to
essential land and other real properties, by lost heirs or widely
scattered owners of undivided interests in essential lands and
other real properties and by owners of relatively small but
essential parcels of a proposed land development site who refuse
to sell their land or other real property; to the county and,
that the exercise by regional or county development authorities
of the right of eminent domain within the limitations herein
provided is therefore necessary and appropriate to achieve the
said public purposes of county and regional development
authorities.
(b) Any A county and a regional development authority
heretofore or hereafter created by a county commission pursuant
to the authority of this article is are hereby authorized and
empowered to exercise the right of eminent domain if an order of
such a county commission in which the property subject to eminent
domain is located authorizing exercise of the right of eminent
domain as to any proposed acquisition is first made and entered
and at least three fourths of the entire tract has either been
purchased, optioned, or is under contract to be purchased:
Provided, That prior to the issuance of the order by the countycommission, it shall hold a public hearing on the public
necessity of the exercise of eminent domain and shall cause a
Class II legal advertisement to be published in accordance with
the provisions of section two, article three, chapter fifty-nine,
prior to the hearing: Provided, however, That a separate hearing
must be held and a separate order promulgated for each parcel
over which the authority wishes to exercise the power of eminent
domain: Provided further, That the right of eminent domain shall
not be exercised to acquire real property which exceeds one
fourth of any land development site proposed by the county or
regional development authority, and the aforesaid order of a
county commission shall specifically state the anticipated size
of the entire site with respect to which the exercise by a county
development authority of the right of eminent domain is
authorized.
§7-12-12. Contributions by county commissions, municipalities
and others; funds and accounts; reports; audit and
examination of books, records and accounts.
Contributions may be made to the authority from time to time
by the county commission of the county or any municipal
corporation therein, and by any persons, firms or corporations
which shall desire to do so. All such funds and all other funds
received by the authority shall be deposited in such bank or
banks as the authority may direct and shall be withdrawn
therefrom in such manner as the authority may direct. The
authority shall keep strict account of all its receipts andexpenditures. and shall each quarter make a quarterly report to
the county commission and municipalities containing an itemized
statement of its receipts and disbursements during the preceding
quarter Within sixty days after the end of each fiscal year, the
authority shall make an annual report containing an itemized
statement of its receipts and disbursements for the preceding
year, and such annual report shall be provided to the West
Virginia development office. published as a Class I legal
advertisement in compliance with the provisions of article three,
chapter fifty-nine of this code, and the publication area for
such publication shall be the county in which the development
authority is located The books, records and accounts of the
authority shall be subject to audit and examination by the office
of the state tax commissioner of West Virginia and by any other
proper public official or body in the manner provided by law
coincident with an examination of the books, records and accounts
of the local governing agency involved in the authority as
provided in section six, article nine, chapter six of this code.
§7-12-13. Sale or lease of property; reversion of assets upon
dissolution.
In the event the board of the authority shall so determine,
the authority may lease or sell all of its property and equipment
on such terms and conditions as the authority may fix and
determine. Upon the dissolution of the authority, all of its
assets and property shall revert to and become the property of
the county or municipality for which said authority was created. For regional development authorities, assets and property shall
revert to and become the property of each county on a pro rata
basis as determined by each counties contribution to the
property.
§7-12-16. Documentary materials concerning trade secrets;
confidentiality.
Any documentary material or data made or received by the
authority for the purpose of furnishing assistance to a business,
to the extent that such material or data consists of trade
secrets or commercial or financial information regarding the
financial position or business operation of such business, shall
not be considered public records and shall be exempt from
disclosure pursuant to the provisions of chapter twenty-nine-b of
this code. Any discussion or consideration of such trade secrets
or commercial or financial information may be held by the
authority in executive session closed to the public,
notwithstanding the provisions of article nine-a, chapter six of
this code.
NOTE: The purpose of this bill is to provide a mechanism to
establish regional development authorities and to provide for
their membership, powers and responsibilities.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
§7-12-3b is new and §7-12-16 has been completely rewritten;
therefore, strike-throughs and underscoring have been omitted.