H. B. 2366


(By Delegates Mahan, Fleischauer,

Dempsey and Caputo)

[Introduced February 20, 2001 ; referred to the

Committee on Government Organization then Finance.]




A BILL to amend and reenact sections one, three, four and five, article two, chapter five-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended, all relating to the West Virginia development office; eliminating exemption from freedom of information act for certain documentary material, data and other writings concerning economic development; making the council for community and economic development's rule making regarding available programs and eligibility of applications for assistance subject to legislative review; authorizing use of technical support; removing provision authorizing performance-based incentives to be paid by private entities to economic development representatives employed by the development office; and providing that certain contracts may not conflict with the West Virginia governmental ethics act.

Be it enacted by the Legislature of West Virginia:

That sections one, three, four and five, article two, chapter five-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted all to read as follows:

ARTICLE 2. WEST VIRGINIA DEVELOPMENT OFFICE.

§5B-2-1. West Virginia development office; confidentiality.

The governor's office of community and industrial development is hereby continued but is hereafter designated and shall be known as the West Virginia development office. All references in this code to the office of community and industrial development or the governor's office of community and industrial development shall be construed as references to the West Virginia development office.

Any documentary material, data or other writing made or received by the West Virginia development office or other public body, whose primary responsibility is economic development, for the purpose of furnishing assistance to a new or existing business shall be exempt from the provisions of article one, chapter twenty-nine-b of this code: Provided, That any agreement entered into or signed by the development office or public body which
obligates public funds shall be subject to inspection and copying pursuant to the provisions of said article as of the date the agreement is entered into, signed or otherwise made public.
§5B-2-3. Powers and duties of council for community and economic development.
(a) The council for community and economic development shall enhance economic growth and development through the development of a comprehensive economic development strategy for West Virginia. "Comprehensive economic development strategy" means a plan that outlines strategies and activities designed to continue, diversify or expand the economic base of the state as a whole; create jobs; develop a highly skilled work force; facilitate business access to capital, including venture capital; advertise and market the resources offered by the state with respect to the needs of business and industry; facilitate cooperation among local, regional and private economic development enterprises; improve infrastructure on a state, regional and community level; improve the business climate generally; and leverage funding from sources other than the state, including federal and private sources.
(b) (1) The council shall develop a certified development community program and provide funding assistance to the participating economic development corporations or authorities through a matching grant program. The council shall establish criteria for awarding matching grants to the corporations or authorities within the limits of funds appropriated by the Legislature for the program. The matching grants to corporations or authorities eligible under the criteria shall be in the amount of thirty thousand dollars for each fiscal year, if sufficient funds are appropriated by the Legislature. The West Virginia development office shall recognize existing county, regional or multicounty corporations or authorities where appropriate.
(2) In developing its plan, the West Virginia development office shall consider resources and technical support available through other agencies, both public and private, including but not limited to, the state college and university systems; the West Virginia housing development fund; the West Virginia economic development authority; the West Virginia parkways, economic development and tourism authority; the West Virginia round table; the West Virginia chamber of commerce; regional planning and development councils; regional partnership for progress councils; and state appropriations.
(c) The council shall promulgate rules propose legislative rules for promulgation to carry out the purposes and programs of the West Virginia development office to include generally the programs available, and the procedure and eligibility of applications relating to assistance under the programs. These rules are not subject to the provisions of chapter twenty-nine-a of this code. but shall be filed with the secretary of state
§5B-2-4. Public-private partnerships.
(a) The West Virginia development office is authorized to enter into contractual or joint venture agreements with a nonprofit corporation organized pursuant to the corporate laws of the state, organized to permit qualification pursuant to section 501(c) of the Internal Revenue Code and for purposes of the economic development of West Virginia, and funded from sources other than the state. Members of the council are authorized to sit on the board of directors of the private nonprofit corporation. The contract shall include provisions relating to the employment of economic development representatives assigned to the West Virginia development office to be paid a base salary by the state. and performance-based economic incentives from private funds of the nonprofit corporation Provisions relating to hiring practices with respect to economic development representatives, job descriptions, accountability, public-private liaison and performance standards may be the subject of contract negotiations. The contract shall include provision for continuing education and certification in the field of economic or industrial development for persons employed as economic development representatives. Agreements providing for the payment of performance-based incentives to the director of the West Virginia development office are authorized. Agreements providing for the payment of travel and expenses to the director of the West Virginia development office or to economic development representatives from private funds by the nonprofit corporation are authorized. The prohibitions of subdivisions (b) and (d), section five, article two, chapter six-b of this code are not applicable to the receipt by economic development representatives or by the director of performance-based incentives and other payments made by the nonprofit corporation and specifically authorized pursuant to this section.
(b) From time to time the council may enter into joint ventures wherein the West Virginia development office and the nonprofit corporation share in the development and funding of economic development programs.
(c) All contracts and joint venture agreements must be approved by vote of the council. Contracts entered into pursuant to this section for longer than one fiscal year shall contain, in substance, a provision that the contract shall be considered canceled without further obligation on the part of the state if the state Legislature or, where appropriate, the federal government, shall fail to appropriate sufficient funds therefor or shall act to impair the contract or cause it to be canceled.
§5B-2-5. Economic development representatives.

(a) The director is expressly authorized to employ economic development representatives to be paid a base salary within legislative appropriations to the West Virginia development office, subject to provisions set forth by the council in its reorganization plan and applicable contract provisions pursuant to section four of this article. Economic development representatives may receive performance-based incentives and expenses paid from private funds from a nonprofit corporation contracting with the West Virginia development office pursuant to the provisions of section four of this article. The director shall establish job descriptions and responsibilities of economic development representatives, subject to the provisions of any contract with a nonprofit corporation entered into pursuant to section four of this article: Provided, That no contract may conflict with, nor may any economic development representative be exempt from, the provisions of chapter six-b of this code.
(b) Notwithstanding any provision of this code to the contrary, economic development representatives employed within the West Virginia development office are not subject to the procedures and protections provided by articles six and six-a, chapter twenty-nine of this code. Any employee of the West Virginia development office on the effective date of this article who applies for employment as an economic development representative is not entitled to the protections of article six, chapter twenty-nine with respect to hiring procedures and qualifications; and upon accepting employment as an economic development representative, the employee relinquishes the protections provided for in articles six and six-a, chapter twenty-nine.



NOTE: The purpose of this bill is to eliminate the Freedom of Information Act exemption for the West Virginia Development Office and remove authorization for private entities to pay performance- based incentives to economic development representatives employed by the Development Office. It also provides that certain rule making of the Council for Community and Economic Development are subject to legislative review, requires certain compliance with the Governmental Ethics Act.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.