Senate Bill 591 History
Senate Bill No. 591
(By Senator Carmichael)
[Introduced March 21, 2013; referred to the Committee on the
Judiciary; and then to the Committee on Finance .]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §15-5-29, relating to
emergency management; creating the West Virginia
Infrastructure Emergency Response Act of 2013; definitions;
the presence of nonresident employees and businesses,
including affiliates of in-state businesses, that temporarily
provide resources and personnel in the state during a state of
emergency declared by either the Governor, the Legislature or
the President of the United States; providing that these
businesses are exempt from requirements for business and
employee taxes or other criteria for purposes of certain state
and local taxes, licensing and regulatory requirements on a
temporary basis during the period they provide help and
assistance in response to a declared state disaster or emergency; providing this exemption does not include certain
transaction taxes and fees during the emergency period, unless
otherwise exempted during an emergency period; providing for
legislative rules; and effective date.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §15-5-29, to read as
ARTICLE 5. DIVISION OF HOMELAND SECURITY AND EMERGENCY MANAGEMENT.
§15-5-29. Infrastructure company emergency response provisions.
(a) Many businesses bring in resources and personnel from
other states throughout the United States on a temporary basis to
expedite the often enormous and overwhelming task of cleaning up,
restoring and repairing damaged buildings, equipment and property
or even deploying or building new replacement facilities in the
state during times of storm, flood, fire, earthquake, hurricane or
other disaster or emergency.
(b) This may involve the need for nonresident businesses,
including out-of-state affiliates of businesses based in the state
to bring in resources, property or personnel that previously have
had no connection to the state to perform activity in the state,
including, but not limited to, repairing, renovating, installing,
building, rendering services or other business activities and for which personnel may be located in the state for extended periods of
time to perform such activities.
(c) These businesses and individual employees should not be
burdened by any requirements for business and employee taxes, as a
result of these activities in the state for a temporary period,
during the time of operating in the state on a temporary basis
solely for purposes of helping the state recover from the disaster
(d) The state's nexus and residency thresholds are intended
for businesses and individuals in the state as part of the conduct
of regular business operations or who intend to reside in the state
and should not be directed at businesses and individuals coming
into the state on a temporary basis to provide help and assistance
in response to a declared state emergency.
(e) To ensure that businesses may focus on quick response to
the needs of the state and its citizens during a declared state
emergency, it is appropriate for the Legislature to determine that
this activity, for a reasonable period of time before, during and
after the disaster or emergency for repairing and restoration of
the often devastating damage to property and infrastructure in the
state, does not establish presence, residency, doing business in
the state or any other criteria for purposes of state and local
taxes, licensing and regulatory requirements.
(f) For purposes of this section, the following terms have the
(1) "Registered business in the state" or "registered
business" means a business entity that is currently registered to
do business in the state prior to the declared state emergency.
(2) "Nonresident business" means for purposes of this
legislation a business entity that has no presence in the state and
conducts no business in the state whose services are requested by
a registered business or by the state or local government for
purposes of performing emergency related work in the state. This
also includes a business entity that is affiliated with the
registered business in the state solely through common ownership.
The "nonresident business" has no registrations or tax filings or
nexus in the state prior to the declared state emergency.
(3) "Nonresident employee" means for purposes of this
legislation an employee who does not work in the state.
(4) "Disaster or emergency related work" means repairing,
renovating, installing, building, rendering services or other
business activities that relate to infrastructure that has been
damaged impaired or destroyed by the declared state emergency,
including those activities defined in subsections (i) and (j),
section two of this article.
(5) "Infrastructure" means for purposes of this legislation property and equipment owned or used by communications networks,
electric generation, transmission and distribution systems, gas
distribution systems, water pipelines and public roads and bridges
and related support facilities that services multiple customers or
citizens including, but not limited to, real and personal property
such as buildings, offices, lines, poles, pipes, structures and
(6) "Declared state of emergency" means a disaster or
emergency event: (i) For which the Governor or the Legislature has
declared a State of Emergency Proclamation under the Emergency
Powers in section six of this article; (ii) for which a
presidential declaration of a federal major disaster or emergency
has been issued; or (iii) or other emergency event within the state
for which a good faith response effort is required and for which
another authorized official of the state including, but not limited
to, an official of the West Virginia Division of Homeland Security
and Emergency Management is given notification from the registered
business and the official designates the event as emergency thereby
invoking the provisions of this article.
(7) "Emergency period" means a period that begins within ten
days of the first day of the Governor's or Legislatures' State of
Emergency Proclamation or the President's declaration or
designation by an other authorized official of the state as set forth in section four of this article (whichever occurs first) and
that extends for a period of sixty calendar days after the end of
the declared emergency period.
(g) A nonresident business that conducts operations within the
state for purposes of performing work or services related to a
declared state of emergency during the emergency period shall not
be considered to have established a level of presence that would
require that business to register, file and remit state or local
taxes or that would require that business or its out-of-state
employees to be subject to any state licensing or registration
requirements. This includes any and all state or local business
licensing or registration requirements or state and local taxes or
fees including, but not limited to, unemployment insurance, state
or local occupational licensing fees and sales and use tax or ad
valorem tax on equipment used or consumed during the emergency
period, Public Service Commission or Secretary of State licensing
and regulatory requirements. For purposes of any state or local
tax on or measured by, in whole or in part, net or gross income or
receipts, all activity of the nonresident business that is
conducted in this state pursuant to this section shall be
disregarded with respect to any filing requirements for such tax
including the filing required for a unitary or combined group of
which the out-of-state business may be a part.
(h) Any nonresident employee as defined herein may not be
considered to have established residency or a presence in the state
that would require that person or that person's employer to file
and pay income taxes or to be subjected to income tax withholdings
or to file and pay any other state or local tax or fee during the
emergency period. This includes any related state or local
employer withholding and remittance obligations.
(i) Nonresident businesses and nonresident employees shall pay
transaction taxes and fees including, but not limited to, fuel
taxes or sales or use taxes on materials or services subject to
sales or use tax, hotel taxes, car rental taxes or fees that the
non-resident business or non-resident employee purchases for use or
consumption in the state during the emergency period, unless such
taxes are otherwise exempted during an emergency period.
(j) Any nonresident business or nonresident employee that
remains in the state after the emergency period will become subject
to the state's normal standards for establishing presence,
residency or doing business in the state and will therefore become
responsible for any business or employee tax requirements that
(k) The nonresident business that enters the state shall, upon
request, provide to the West Virginia Division of Homeland Security
and Emergency Management a statement that it is in the state for purposes of responding to the disaster or emergency, which
statement shall include the business' name, state of domicile,
principal business address, federal tax identification number, date
of entry, and contact information.
(l) A registered business shall, upon request, provide the
information required in subsection (k) of this section for any
affiliate that enters the state that is a nonresident business. The
notification shall also include contact information for the
registered business in the state.
(m) A nonresident business or a nonresident employee that
remains in the state after the emergency period shall complete state
and local registration, licensing and filing requirements that ensue
as a result of establishing the requisite business presence or
residency in the state applicable under the existing rules.
(n) The West Virginia Division of Homeland Security and
Emergency Management shall propose rules for legislative approval
in accordance with the provisions of article three, chapter twenty-
nine-a of this code, including the development and issuance of forms
or online processes to maintain and make available an annual record
of any designations pursuant to the provisions of subsection (f)(4)
of this section, in order to implement the purpose of this section.
(o) This section may be referred to as the "West Virginia
Infrastructure Emergency Response Act of 2013".
NOTE: The purpose of this bill is to create the "West Virginia
Infrastructure Emergency Response Act of 2013". It provides
exemption from requirements for business and employee taxes or other
criteria for purposes of certain state and local taxes, licensing
and regulatory requirements on a temporary basis during nonresident
employees and businesses, including affiliates of in-state
businesses, that temporarily provide resources and personnel in the
state during a state of emergency declared by either the Governor,
the Legislature or the President of the United States.
This section is new; therefore, strike-throughs and
underscoring have been omitted.