
H. B. 4057



(By Delegate Michael)



[Introduced January 16, 2002
; referred to the



Committee on Finance.]
A BILL to repeal section eighteen, article two, chapter five-a of
the code of West Virginia, one thousand nine hundred
thirty-one, as amended; and to amend and reenact section
twenty-three of said article, relating to legislative
oversight of the expenditure of funds subject to legislative
appropriation.
Be it enacted by the Legislature of West Virginia:

That section eighteen, article two, chapter five-a of the code
of West Virginia, one thousand nine hundred thirty-one, as amended,
be repealed; and that section twenty-three of said article be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 the
agency submits such a request or budget to the
secretary for approval, it shall send a copy thereof to the
legislative auditor and to the chairs of the committees on finance
of the Senate and the House of Delegates. 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 and to the chairs of
the committees on finance of the Senate and the House of Delegates.
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 and the chairs
of the committees on finance of the Senate and the House of
Delegates 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 services. 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 and the chairs
of the committees on finance of the Senate and the House of
Delegates 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) (1) Each spending unit which
has received or is scheduled or expected to receive federal funds
in either of such the fiscal years; (b) (2) the amount of each
separate grant or distribution received or to be received; and (c)
(3) 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 to
the contrary, and in supplementation thereof 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 to enable the secretary to provide approval in
writing for such any activity in respect to the federal funds and
such the
state agencies shall, at the same time, provide such a
document copy or sufficient summary information report to the
legislative auditor's office and to the chairs of the committees on
finance of the Senate and the House of Delegates 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.