
Senate Bill No. 608
(By Senator Craigo)
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[Introduced March 26, 2001; referred to the Committee on
Finance.]
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A BILL to amend and reenact section twenty-three, article two,
chapter five-a of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to removing
requirement that agencies applying for, receiving and
expending federal funds send report to the Legislature.
Be it enacted by the Legislature of West Virginia:

That section twenty-three, article two, chapter five-a of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 2. FINANCE DIVISION.
§5A-2-23. Approval of secretary of requests for changes and
receipt and expenditure of federal funds by state
agencies; copies or sufficient summary information to be furnished to secretary; and consolidated
report of federal funds.

(a) Every agency of the state government when making requests
or preparing budgets to be submitted to the federal government for
funds, equipment, material or services, the grant or allocation of
which is conditioned upon the use of state matching funds, shall
have such the request or budget approved in writing by the
secretary before submitting it to the proper federal authority. At
the time such agency submits such a request or budget to the
secretary for approval, it shall send a copy thereof to the
legislative auditor. When such the
federal authority has approved
the request or budget, the agency of the state government shall
resubmit it to the secretary for recording before any allotment or
encumbrance of the federal funds can be made. and the secretary
shall send a copy of the federally approved request or budget to
the legislative auditor Whenever any agency of the state
government shall receive receives from any agency of the federal
government a grant or allocation of funds which do not require
state matching, the state agency shall report to the secretary and
the legislative auditor for their information the amount of the
federal funds so granted or allocated.

(b) Unless contrary to federal law, any agency of state government, when making requests or preparing budgets to be
submitted to the federal government for funds for personal
services, shall include in such the
request or budget the amount of
funds necessary to pay for the costs of any fringe benefits related
to such the
personal service. For the purposes of this section,
"fringe benefits" means any employment benefit granted by the state
which involves state funds, including, but not limited to,
contributions to insurance, retirement and social security, and
which does not affect the basic rate of pay of an employee.

(c) In addition to the other requirements of this section, the
secretary shall, as soon as possible after the end of each fiscal
year but no later than the first day of October of each year,
submit to the governor and the legislative auditor a consolidated
report which shall contain a detailed itemization of all federal
funds received by the state during the preceding and current fiscal
years, as well as those scheduled or anticipated to be received
during the next ensuing fiscal year. Such The itemization shall
show: (a) Each spending unit which has received or is scheduled or
expected to receive federal funds in either of such the
fiscal
years; (b) the amount of each separate grant or distribution
received or to be received; and (c) a brief description of the purpose of every such grant or other distribution, with the name of
the federal agency, bureau or department making such the
grant or
distribution: Provided, That it shall is not be necessary to
include in such the
report an itemization of federal revenue
sharing funds deposited in and appropriated from the revenue
sharing trust fund, or federal funds received for the benefit of
the division of highways of the department of transportation.

(d) The secretary is authorized and empowered to may obtain
from the spending units any and all information necessary to
prepare such a report.

(e) Notwithstanding the other provisions of this section and
in supplementation thereof of the provisions of this section, the
Legislature hereby determines that the department of administration
and its secretary need to be the single and central agency for
receipt of information and documents in respect of applications
for, and changes, receipt and expenditure of, federal funds by
state agencies. Every agency of state government, when making
application for federal funds in the nature of a grant, allocation
or otherwise; when amending such the
applications or requests; when
in receipt of
such
federal funds; or when undertaking any
expenditure of federal funds; in all such respective instances, shall provide to the secretary of administration document copies or
sufficient summary information in respect thereof as of the federal
funds to enable the secretary to provide approval in writing for
such any activity in respect to the federal funds. and such state
agencies shall, at the same time, provide such a document copy or
sufficient summary information report to the legislative auditor's
office in order to permit continuing meaningful cooperative
overview of federal funds and their use budgetarily and in
establishing state fiscal policies

NOTE:
The purpose of this bill is to
remove requirements that
agencies report to the Legislature when applying for, receiving and
expending federal funds.

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