

COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 515
(By Senators Harrison, Sprouse Rowe, McCabe, Guills, Hunter,
Unger, Smith and Facemyer)
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[Originating in the Committee on Government Organization;
reported February 24, 2003.]
____________
A BILL to amend chapter four of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article thirteen, relating
to the state payment for state mandates act; legislative
findings; definitions; requiring funding of state mandates;
establishing a local government mandates appeal board; and
mandate review requirements.
Be it enacted by the Legislature of West Virginia:

That chapter four of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended by adding thereto
a new article, designated article thirteen, to read as follows:
ARTICLE 13. STATE PAYMENT FOR STATE MANDATES ACT.
§4-13-1. Legislative findings.

The Legislature finds that the actions of state government directly or indirectly prescribe the manner, standards, level and
conditions of public service to be provided by the state's
political subdivisions and can have major fiscal consequences for
the political subdivisions
. Prior to imposing new or expanded
service requirements with financial implications on its political
subdivisions
, the state should be aware of and confront the issues
of where the burden of paying for those requirements will fall and
how will the requirements be funded.

Therefore, the Legislature declares that full funding be
provided for any net additional costs to political subdivisions
that are incurred in complying with the required performance of a
new or expanded program or service under the provisions of any
state law, rule or order. If funding is not provided by the state,
the state law, rule or order shall be inoperative in the
political
subdivision
until a state appropriation necessary to pay in full
any net additional cost of compliance with the requirement
is made
and sufficient funds are provided to each affected
political
subdivision
.

The Legislature further finds that
political subdivisions
need
a way to ensure that this article is adhered to by the state.
Therefore, the Legislature further declares that a
local government
mandates appeal board is needed to ensure the provisions of this
article are followed.
§4-13-2. Definitions.

As used in this article:

(a) "Expanded program or service" means a program or service, the scope or level of which would be increased, extended or
enhanced by a political subdivision's
compliance with the
provisions of a state law, rule or order.

(b) "Net additional cost" means the cost incurred or
anticipated to be incurred within a one-year period by a political
subdivision
in performing or administering a new or expanded
program or service required by a state law, rule or order, after
subtracting therefrom any revenues received or receivable by the
political subdivision
on account of the program or service,
including, but not limited to:

(1) Fees charged to the recipients of the program or service;

(2) State or federal aid paid specifically or categorically in
connection with the program or service; and

(3) Any offsetting savings resulting from the reduction or
elimination of any other program or service directly attributable
to the performance or administration of the required program or
service.

(c) "New program or service" means a program or service
different in kind or purpose from those in existence at the time of
the enactment of a law, promulgation of a rule, or order requiring
the performance or administration of the program by a political
subdivision
.

(d) "Political subdivision" means any county commission;
municipality; county board of education; any instrumentality
established by a county or municipality; any separate corporation
or instrumentality established by one or more counties or municipalities, as permitted by law; or any public body charged by
law with the performance of a government function and whose
jurisdiction is coextensive with one or more counties or
municipalities.

(e) "Program or service" means a specific and identifiable
activity of a political subdivision which is available to the
general public or which is conducted, administered or provided for
or on behalf of the citizens of a political subdivisions
.
§4-13-3. Requirement for funding of state mandates; minimum
fiscal impact amounts established; exceptions.

(a) Notwithstanding any law, rule or order to the contrary, a
law, rule or order passed, promulgated or issued on or after the
effective date of this article, which has the effect of requiring
a
political subdivision
to perform or administer a new or expanded
program or service having a net additional cost in excess of one
thousand dollars for any
political subdivision
or one hundred
thousand dollars for all affected
political subdivision
s, shall be
inoperative in the
political subdivision
until a state
appropriation necessary to pay in full any net additional cost of
compliance with the requirement
is made and sufficient funds are
provided to each affected
political subdivision
.

(b) The provisions of subsection (a) of this section do not
apply to any new or expanded program or service that:

(1) Is required for the public's safety or arises from a court
order or judgment;

(2) Is permissive rather than mandatory
;

(3) Is required by private, special or local laws; or

(4) Is required by or arises from an executive order of the
governor exercising emergency powers.
§4-13-4. Local government mandates appeal board.

(a) The local government mandates appeal board is hereby
established
. The board shall hear and rule upon appeals brought by
political subdivision
s, alleging that a state law, rule or order,
which has the effect of requiring the performance or administration
of a new or expanded program or service was:

(1) Enacted or promulgated in a manner contrary to the
provisions of this article; or

(2) Was based on a demonstrably inaccurate cost estimate
resulting in the failure by the state to provide sufficient funding
to pay the net additional cost of compliance with the law, rule or
order.

(b) The local government mandates appeal board
shall have the
following three members:

(1) The legislative auditor, who shall be the chair;

(2) One
political subdivision
representative; and

(3) One citizen member.

(c) When needed, the governor shall appoint, by and with the
consent of the senate, the
political subdivision
representative and
the citizen member. The term of office will be determined by the
governor at the time of the appointment.

(c) The board shall only meet as needed. The members shall
receive compensation for attending official meetings or engaging in official duties not to exceed the amount paid to members of the
Legislature for their interim duties as recommended by the citizens
legislative compensation commission and authorized by law. The
members shall
be reimbursed for actual and necessary expenses
incurred for each day or portion thereof engaged in the discharge
of official duties in a manner consistent with guidelines of the
travel management office of the department of administration. The
compensation and expenses of the members shall be paid by the
legislative joint committee on government and finance.

(d) The board may adopt rules as are necessary to carry out
its functions and responsibilities under this article.

NOTE: The purpose of this bill is to create the State Payment
for State Mandates Act. It requires the state to appropriate money
for unfunded mandates to political subdivisions. Establishes a
local government mandates appeal board to require compliance with
this article.

This article is new; therefore, strike-throughs and
underscoring have been omitted.