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Charleston, Thursday, November 9, 2006
Pursuant to the Proclamation of His Excellency, the Governor, issued on the ninth day of
November, 2006, and hereinafter set forth, convening the Legislature in Extraordinary Session on
the ninth day of November, 2006, the House of Delegates assembled in its Chamber in the Capitol
Building in the City of Charleston, and at 6:00 p.m., was called to order by the Speaker, the
Honorable Robert S. Kiss.
Prayer was offered and the House was led in recitation of the Pledge of Allegiance.
The roll being called (Roll No. 755), and 94 members having answered to their names, the
Speaker declared the presence of a quorum.
Messages from the Executive
The Speaker laid before the House of Delegates the Proclamation of His Excellency, the
Governor, convening the Legislation in extraordinary session, which was read by the Clerk as
follows:
State of West Virginia
EXECUTIVE DEPARTMENT
Charleston
A P R O C L A M A T I O N
By the Governor
I, JOE MANCHIN III, GOVERNOR of the State of West Virginia, by virtue of the authority
vested in me by Section 7, Article VII of the Constitution of West Virginia, do hereby call the
Legislature of West Virginia to convene in Extraordinary Session at six o'clock p.m. on the ninth day
of November, two thousand six, in its chambers in the State Capitol, City of Charleston, for the sole
purpose of considering and acting upon the following matters:
FIRST: Legislation to increase the refundable credit applicable against the personal income
tax for low-income senior citizens and low-income disabled persons who qualify for the homestead
exemption pursuant to section three, article six-b, chapter eleven of the Code of West Virginia, to
an amount equal to the ad valorem property taxes paid on up to the first twenty thousand dollars of
taxable assessed value of the homestead.
SECOND: Legislation to abolish the corporation net income tax adjustment on gains realized
from the sale or other disposition of property having a higher fair market value on the first day of
July, one thousand nine hundred sixty-seven, than the adjusted basis at said date for federal income
tax purposes.
THIRD: Legislation to reduce the rate of consumers sales and service tax and use tax on the
sale, purchase and use of food and food ingredients intended for human conduction by an amount
not to exceed one percent of the "sales price" as defined in section two, article fifteen-b, chapter
eleven of the Code of West Virginia, effective the first day of July, two thousand seven; to further
reduce the rate of consumers sales and service tax and use tax on the sale, purchase and use of food and food ingredients intended for human consumption by an amount not to exceed one percent of
the "sales price" as defined in section two, article fifteen-b, chapter eleven of the Code of West
Virginia, effective the first day of July, two thousand eight; and to set the rate of tax on the sale,
purchase and use of consumers of "prepared food", "candy", "food sold through vending machines",
and "soft drinks" as defined in section two, article fifteen-b, chapter eleven of the Code of West
Virginia, at six percent of the "sales price" as defined in section two, article fifteen-b, chapter eleven
of the Code of West Virginia.
FOURTH: Legislation to reduce the rate of the business franchise tax by an amount not to
exceed fifteen one hundredths of one percent of the value of the taxpayer's "tax base" as determined
pursuant to article twenty-three, chapter eleven of the Code of West Virginia.
FIFTH: Legislation to reduce the rate of the corporation net income tax by an amount not to
exceed twenty-five one hundredths of one percent of the West Virginia taxable income of every
domestic or foreign corporation engaging in business in the State or deriving income from property,
activity or other sources in this State.
SIXTH: Legislation to eliminate the tax credits for investment in a qualified West Virginia
capitol company pursuant to article one, chapter five-e of the Code of West Virginia and to eliminate
the tax credits for investment in venture capital companies pursuant to article two, chapter five-e of
the Code of West Virginia.
SEVENTH: Legislation to extend the deadline for receipt of tourism development project
applications and to increase the total amount of tourism development project tax credits for all
approved companies during each calendar year to five million dollars.
EIGHTH: Legislation to increase the nonresident withholding tax payable by a partnership, S corporation, estate or trust, under section seventy-one-a, article twenty-one, chapter eleven of the
Code of West Virginia, to an amount equal to six and on-half percent of the effectively connected
taxable income which may lawfully be taxed by this State and which is allocable to a nonresident
partner, nonresident shareholder, or nonresident beneficiary of a trust or estate.
NINTH: Legislation imposing a withholding tax equal to six and one-half percent of the
estimated capital gain derived from the sale of any land, building or other real estate by a nonresident
individual or part-year resident individual.
TENTH: Legislation to create a family tax credit for low income taxpayers, applicable against
up to one hundred percent of the personal income tax, that decreases in inverse proportion to
taxpayers' modified federal adjusted gross income indexed against the federal poverty guidelines,
as adjusted for family size.
ELEVENTH: Legislation authorizing an exemption from the consumers sales and service
tax for purchases, by a person performing "contracting", of services, machinery, supplies, or
materials, except gasoline or special fuel, to be directly used or consumed in the construction,
alteration, repair or improvement of a new or existing building or structure to be primarily used for
manufacturing.
TWELFTH: Certain ceremonial and memorial resolutions.
THIRTEENTH: Legislation to authorize and appropriate the expenditure of public moneys
to pay the expenses of the extraordinary session.
IN WITNESS WHEREOF, I have hereunto set my hand and caused the Great Seal of the
State of West Virginia to be affixed.
DONE at the Capitol in the City of Charleston, State
of West Virginia, this the ninth day of November, in
the year of our Lord, Two Thousand Six, and in the
One Hundred Forty-Fourth year of the State.
Joe Manchin, III
Governor.
BY THE GOVERNOR:
Betty Ireland
Secretary of State.
On motion of Delegate Staton, the Speaker was authorized to appoint a committee of three
to notify the Senate that the House of Delegates had assembled in extraordinary session and was
ready to enter upon the business stated in the Proclamation by which it had been called together.
Whereupon,
The Speaker appointed as members of such Committee:
Delegates Stemple, Moore and Roberts.
On motion of Delegate Staton, the Speaker was authorized to appoint a committee of three,
to join with a similar committee on the part of the Senate, to inform His Excellency, the Governor,
that the Legislature had assembled in extraordinary session and was ready to enter upon the business
stated in the Proclamation.
Whereupon,
The Speaker appointed as members of such committee:
Delegates Houston, Kominar and Leggett.
Subsequently,
Delegate Stemple, from the committee to notify the Senate that the House of Delegates had
assembled in extraordinary session and was ready to proceed to the business of the session,
announced that the committee had discharged its assignment.
Delegate Houston, from the committee to inform His Excellency, the Governor, that the
Legislature had assembled in extraordinary session pursuant to his Proclamation, announced the
performance of that duty.
Messages from the Senate
A message from the Senate, by
Senators Foster, Oliverio and Harrison, announced that the Senate had convened in
extraordinary session, pursuant to the Proclamation of the Governor, with a quorum present, and was
ready to enter upon the business for which the Legislature had been called together.
Resolutions Introduced
Delegate Staton offered the following resolution, which was read by its title and referred to
the Committee on Rules:
H. R. 201 - "Amending House Rule No. 82, relating to bypass of the Committee process."
Resolved by the House of Delegates:
That House Rule No. 82 be amended to read as follows:
Bypass of Committee Process
82. When a bill or resolution has been in the hands of a committee five legislative days after
having been referred to it, the committee may be discharged from process may be bypassed as to
further consideration of the bill or resolution by a majority vote of all the members present. The chairman of a committee may move that his committee be discharged from the committee process
be bypassed as to consideration of the matter at any time after commitment, and after the fiftieth day
of the session any member may move to discharge a committee from that the committee process be
bypassed as to consideration of any bill or resolution at any time after the same has been referred to
it.
Bills Introduced
On motions for leave, bills were introduced, read by their titles, and severally referred as
follows:
By Mr. Speaker, Mr. Kiss, and Delegate Trump
[By Request of the Executive]:
H. B. 201 - "A Bill to amend and reenact §11-24-4 of the Code of West Virginia, 1931, as
amended, relating to corporation net income tax, and reducing the rate of tax "; to the Committee
on Finance.
By Mr. Speaker, Mr. Kiss, and Delegate Trump
[By Request of the Executive]:
H. B. 202 - "A Bill to amend and reenact §11-23-6 of the Code of West Virginia, 1931, as
amended, relating to business franchise tax, and reducing the rate of tax"; to the Committee on
Finance.
By Mr. Speaker, Mr. Kiss, and Delegate Trump
[By Request of the Executive]:
H. B. 203 - "A Bill to amend the Code of West Virginia, 1931, as amended, by adding
thereto a new section, designated §5E-1-23; and to amend said code by adding thereto a new section, designated §5E-2-5, all relating to capital companies and venture capital companies; terminating
authorization for the tax credit for investment in capital companies made after the thirty-first day of
December, two thousand six; and terminating authorization for the tax credit for investment in a
venture capital company made after the thirty-first day of December, two thousand six"; to the
Committee on Finance.
By Mr. Speaker, Mr. Kiss, and Delegate Trump
[By Request of the Executive]:
H. B. 204 - "A Bill to amend and reenact §11-21-21 of the Code of West Virginia, 1931, as
amended, relating to personal income tax, and increasing the amount of the senior citizens' and
disabled persons' tax credit"; to the Committee on Finance.
By Mr. Speaker, Mr. Kiss, and Delegate Trump
[By Request of the Executive]:
H. B. 205 - "A Bill to amend the Code of West Virginia, 1931, as amended, by adding
thereto four new sections, designated §11-21-22, §11-21-22a, §11-21-22b and §11-21-22c, all
relating to personal income tax; enacting a low-income family tax credit, defining terms; providing
amount of credit; and providing for administration of credit"; to the Committee on Finance.
By Mr. Speaker, Mr. Kiss, and Delegate Trump
[By Request of the Executive]:
H. B. 206 - "A Bill to amend and reenact §11-15-3a of the Code of West Virginia, 1931, as
amended, relating to consumers sales and service tax on sales, purchases and uses of food and food
ingredients intended for human consumption; reducing rate of tax on sales, purchases and uses of
food and food ingredients intended for human consumption to four percent of the sales price after the thirtieth day of June, 2007; reducing the rate of tax on sales, purchases and uses of food and food
ingredients intended for human consumption to three percent of the sales price after the thirtieth day
of June, 2008; and providing that the rate of tax on sales, purchases and uses of candy, prepared
food, soft drinks and on sales of food through vending machines be six percent of the sales price
after the thirtieth day of June, 2007"; to the Committee on Finance.
By Mr. Speaker, Mr. Kiss, and Delegate Trump
[By Request of the Executive]:
H. B. 207 - "A Bill to amend and reenact §11-21-71a of the Code of West Virginia, 1931,
as amended, relating to personal income tax, and increasing the rate of withholding for certain
nonresidents of West Virginia"; to the Committee on Finance.
By Mr. Speaker, Mr. Kiss, and Delegate Trump
[By Request of the Executive]:
H. B. 208 - "A Bill to amend and reenact §11-24-6 of the Code of West Virginia, 1931, as
amended, relating to the elimination of the corporation net income tax adjustment for pre-1967 gains
on the sale of property"; to the Committee on Finance.
By Mr. Speaker, Mr. Kiss, and Delegate Trump
[By Request of the Executive]:
H. B. 209 - "A Bill to amend the Code of West Virginia, 1931, as amended, by adding
thereto a new section, designated §11-21-71b, relating to personal income tax; imposing a
withholding tax on estimated capital gains derived from the sale of West Virginia land, buildings or
other real estate by a nonresident individual or part-year resident individual; declaring the amount
of tax withheld; providing for payment of the tax withheld; providing optional provisions for filing a tax return; establishing liability for withholding tax; establishing authority to promulgate legislative
rules; and establishing effective date of section"; to the Committee on Finance.
By Mr. Speaker, Mr. Kiss, and Delegate Trump
[By Request of the Executive]:
H. B. 210 - "A Bill to amend and reenact §11-15-8d of the Code of West Virginia, 1931, as
amended, relating to an exemption from consumers sales and service tax for purchases by a
contractor when the purchased materials will be used or consumed in the construction, alteration,
repair or improvement of a new or existing building or structure to be primarily used for
manufacturing"; to the Committee on Finance.
By Mr. Speaker, Mr. Kiss, and Delegate Trump
[By Request of the Executive]:
H. B. 211 - "A Bill to amend and reenact §5B-2E-5 and §5B-2E-11 of the Code of West
Virginia, 1931, as amended, all relating to tourism development projects; modifying total amount
of tourism development project tax credit available during calendar years; and establishing a
termination date for action on applications for tourism development projects and validity of such
projects not previously approved"; to the Committee on Finance.
Leaves of Absence
At the request of Delegate Staton, and by unanimous consent, leaves of absence for the day
were granted Delegates Ferrell, Leach, Martin, Ron Thompson, Trump and Walters.
Messages from the Executive
Mr. Speaker, Mr. Kiss, then laid before the House of Delegates a Proclamation of His
Excellency, the Governor, amending his original Proclamation issued on the 9th day of November, which supplemental Proclamation was read by the Clerk as follows:
State of West Virginia
EXECUTIVE DEPARTMENT
Charleston
A P R O C L A M A T I O N
By the Governor
I, JOE MANCHIN III, GOVERNOR of the State of West Virginia, by virtue of the authority
vested in me by Section 7, Article VII of the Constitution of West Virginia, do hereby AMEND my
Proclamation dated the ninth day of November, two thousand six, calling the Legislature of West
Virginia to convene in Extraordinary Session at six o'clock p.m. on the ninth day of November, two
thousand six, in its chambers in the State Capitol, City of Charleston, as follows:
FOURTEENTH: A supplemental appropriation bill to the West Virginia Teachers
Retirement System Employers and Accumulation Fund, fund 2601, fiscal year 2007.
IN WITNESS WHEREOF, I have hereunto set my hand and caused the Great Seal of the
State of West Virginia to be affixed.
DONE at the Capitol in the City of Charleston, State
of West Virginia, this the ninth day of November, in
the year of our Lord, Two Thousand Six, and in the
One Hundred Forty-Fourth year of the State.
Joe Manchin, III
Governor.
BY THE GOVERNOR:
Betty Ireland
Secretary of State.
At 6:44 p.m., the House of Delegates adjourned until 6:00 p.m., Friday, November 10, 2006.