Senate
House
Joint
Bill Status
WV Code
Audits/ Reports
Educational
Contact
home
home

Introduced Version Senate Bill 591 History

DOWNLOAD  wpd  |  Email


sb591 intr
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 follows:
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 or emergency.
    (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 following meanings:
    (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 equipment.
    (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 ensue.
    (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.
This Web site is maintained by the West Virginia Legislature's Office of Reference & Information.  |  Terms of Use  |   Web Administrator   |   © 2014 West Virginia Legislature ***