LB 2007 - 6
February 19, 2007

The House Friday debated for four hours the pros and cons of expanding gambling at the state’s four race tracks before approving the measure in a 50 - 43 vote. The Senate has passed the bill in previous years and is expected to again pass the measure. There were over 30 amendments offered in an attempt to weaken or gut the bill, most of which were defeated. The current version allows for local county option elections on table games in the counties that house the four race tracks – Jefferson, Hancock, Ohio and Kanawha. Certain concessions were made to obtain additional votes in the House, including revenue sharing for municipalities even if they don’t have a race track in their town. Proponents of the bill note that the revenue collected from table games will help offset the expected reduction from slot machines because Pennsylvania has approved slot machines that will siphon patrons from the Northern Panhandle tracks.

Delegate Ron Thompson, D-Raleigh, has been reinstated to the House after a phone call from a Beckley psychiatrist said the absent legislator is under medical care and will return to the House of Delegates when he is able. The full House voted to remove Thompson after he did not respond to numerous calls to attend the session or get sworn in to his seat. Thompson has not attended a legislative meeting in almost a year.

Friday, February 23, is the 45th day of the legislative session. All bills must be reported out of committee in order for them to be read three separate days before passage. Bills can still be originated in committee and bills can be advanced by suspending the rule that bills must be read on three separate days. Committee chairs will be working overtime this week to get bills out of their committee and reported to the floor for passage.

CONTRACTORS TO BE REQUIRED TO PROVIDE LAVATORY FACILITIES

H. B. 3015, introduced by Dels. D. Poling, Ellem, Williams, Kessler and Reynolds, requires contractors erecting or constructing a state building over $5 million to provide flush lavatory facilities and washing facilities with wash basins, warm water and soap. This bill does not apply to highway construction or to electricity, water, sewer or gas transmission facility construction or maintenance projects. The bill is referred to the Committee on Government Organization.

BILL CREATES CONTRACTOR RECOVERY FUND

H. B. 3051, sponsored by Dels. Spencer, Fleischauer, Marshall, DeLong, Perdue, Caputo and Manchin, creates a “Contractor Recovery Fund” within the WV Division of Labor to compensate people who have been harmed by a contractor who has engaged in “unsafe defective or unscrupulous conduct.” The bill would set up a Board to oversee the fund and it can employ staff to operate the program. Licensed contractors would pay $150 per year until the fund accumulates $3 million. The CAWV notes that there are current options for consumers to seek remedy if they feel they have been harmed by a contractor, including the WV Contractors Licensing Board, the state’s Attorney General and the court system. Homebuilders also must abide by “right to cure” rules that address complaints before home owners have to seek legal redress. Since most CAWV members must provide performance and payment bonds, this legislation is added tax. The bill is referred to the Committee on Industry and Labor, Economic Development and Small Business, then Finance.

S.B. 569 TRANSFERS $5 MILLION ANNUALLY FROM HIGHWAY PROGRAM

S. B. 569, introduced by Sens. Plymale, Jenkins and Kessler, transfers gas tax revenues paid to the WVDOH by railroads and barges to two new funds, a Special Railroad and Intermodal Enhancement Fund and Special Maritime Enhancement Fund. Railroads currently pay about $4.2 million annually in a “fuel burn-off” tax to the State Road Fund. Barges pay about $1 million annually. Transferring the money would help fund rail projects, including the new facility at Pritchard (see CAWV, February 9, Heavy Highway Bulletin for full details) and port projects. The bill was referred to the Committee on Transportation and Infrastructure, then Finance. The bill now has a single reference to the Finance Committee. The CAWV does not question that the rail and port projects would have benefit, but the timing of the bill couldn’t be worse. All efforts to this point have been to add revenues to the highway program. This bill would eliminate about $5 million annually from the road fund. This proposal has been introduced over the years but it has never advanced to this stage.

S.B. 631 EXTENDS SALES TAX EXEMPTION

During the November special legislative session, a bill was passed to allow contractors to be exempt from the state consumer sales tax (CST) when the materials are used or consumed in the construction, alteration, repair or improvement of a new or existing building or structure to be used primarily by persons or entities exempt form the sales tax on purchases. Prior to passage of this legislation, if a company built a project that was used in the manufacturing process, the company could purchase the materials tax exempt but if a contractor purchased the material, the CST would have to be paid. S.B. 631, introduced by Sen. Brooks McCabe, D-Kanawha, extends the exemption to other businesses who would normally be exempt from the CST. The bill is referred the Committee on Finance.

PUBLIC-PRIVATE HIGHWAY BILL INTRODUCED

H. B. 3044, sponsored by Dels. Hrutkay, Manchin, Martin and Wysong, creates the Public-Private Transportation Facilities Act of 2007 within the Division of Highways. The bill authorizes private entities to acquire, construct or improve transportation facilities in West Virginia. The bill is referred to the Committee on Roads and Transportation then Finance. The CAWV has supported the concept of a public-private venture provided the private entity brings new money to a highway or bridge project. This bill appears to allow the private developer to administer the design and construction of the project. Previous bills introduced have contained provisions to require the contracts to be bid competitively and for prevailing wages to apply. The association will be meeting with the WVDOH and bill sponsors to determine how this version of public-private would be administered.

NICKEL GAS TAX REAUTHORIZATION UPDATE

The House has delayed action on H.B. 2955, which would reauthorize the nickel gas tax through August 2013. The bill was up for final passage Thursday when it was moved from the House Special Calendar to the House Calendar. The House amended the bill on second reading to require that the $55 million generated by the nickel go into a segregated account within in the State Road Fund that will be controlled by the Legislature. The money can only be expended for “construction, reconstruction, rehabilitation, restoration, repair, maintenance and repair of the roads and highways throughout the various counties of the state for which federal monies are not available on as fair and equitable a basis as the Legislature may determine through the enactment of appropriation bills.” The amendment is aimed at giving legislators say on which projects in their districts will get funded. Legislators that don’t have projects on the WVDOH’s public priority list (Routes 9 and 35, Mon-Fayette Expressway, Corridor H, etc.) have complained that highway funds need to be distributed to other areas as well. WVDOH officials and administration officials are determining the impact of this amendment on the DOH’s ability to fund construction and maintenance projects. Legislators must also decide if they want to be responsible for determining which roads in their district get paved and which don’t. Until there is some agreement between the parties, the bill will likely to remain on the inactive House Calendar.

The Senate Transportation and Infrastructure Committee Friday passed out S.B. 462, the Senate companion bill. The original Senate bill removed the Nickel Gas tax’s sunset provision but it was reinstated in committee. The bill now goes to the Senate Finance Committee where it is hoped the sunset provision will be eliminated. The CAWV argues that the highway program needs the $55 million generated by the nickel and there is no reason to keep debating the issue every six years.

SENATE COMMITTEE MOVES TO ELIMINATE DOH DIVERSIONS

Gov. Joe Manchin introduced S.B. 471 and H.B. 2877 which will eliminate diversions in the State Road Fund. The bills discontinue funding from the State Road Fund of the Public Service Commission weight enforcement division ($4.5 million), the State Police patrol of roads ($5.5 million), and the Courtesy Patrol program ($4.5 million). The CAWV has long held that these programs, while worthwhile, are not functions of the DOH and should be funded by other agencies. Under the bills, the Courtesy Patrol would fall under the state’s Tourism Promotion Fund. The Senate Transportation and Infrastructure Committee passed out the bill at its Friday meeting. However, there was a technical problem that was discovered after the bill passed out. The bill will be recalled to the committee on Tuesday to be corrected and then it will be referred to the Finance Committee.

Below is a list of bills that have been introduced this week that have an impact on the construction industry or some CAWV members. Anyone needing further information can contact Mike Clowser at (304) 342-1166 or email mclowser@cawv.org.

HOUSE BILLS

HB 3015 Del. D. Poling, Ellem, Williams, Kessler and Reynolds-Requiring vendors to provide flush lavatory facilities and washing facilities at certain state-funded construction projects-To Government Organization

HB 3019 Del. Stephens and Marshall-Banning the use of non-organic herbicides within state roads rights-of-way-To Roads and Transportation then Judiciary

HB 3021 Del. Stephens, Reynolds and Marshall-Requiring rest periods for employees during each four hours of work-To industry and Labor, Economic Development and Small Business

HB 3028 Del. Overington, Schadler, Andes, Cowels and J. Miller-Exempting construction performed on behalf of any county or municipal governmental authority from prevailing wage laws-To Industry and Labor, Economic Development and Small Business then Judiciary

HB 3029 Del. Overington, Schadler, Cowels, J. Miller and Andes-Exempting construction performed on behalf of educational authorities from prevailing wage requirements-To Industry and Labor, Economic Development and Small Business then Judiciary

HB 3030 Del. Guthrie, Burdiss and Kessler-Relating to the imposition of a tax on corporations for the transfer of corporate real estate or equipment (FN)-To Finance

HB 3043 Del. Long, Mahan, Williams, Shaver, Tabb, Porter and Schadler-Exempting heating oil for residential use from the Motor Fuel Excise Tax (FN)-To Finance

HB 3044 Del. Hrutkay, Manchin, Martin and Wysong-Public-Private Transportation Facilities Act of 2007 (FN)-To Roads and Transportation then Finance

HB 3051 Del. Spencer, Fleischauer, Marshall, DeLong, Perdue, Caputo and Manchin-Creating a contractor recovery fund (FN)-To Industry and Labor, Economic Development and Small Business then Finance

HB 3119 Del. Moye, Kessler, Shook, Rodighiero and Sumner-Requiring a public hearing and county commission approval before state highways and other public lands can be annexed by a municipality-To Political Subdivisions then Judiciary

SENATE BILLS

SB 569 Sen. Plymale-Creating special fuel taxes for deposit in Special Railroad and Intermodal Enhancement Fund and Special Maritime Enhancement Fund- To Transportation and Infrastructure then Finance

SB 595 Sen. Minard-Revising workers’ compensation statutes-To Judiciary

SB 609 Sen. Plymale-Increasing amount allocated to Development Office Promotion Fund and Cultural Facilities and Capitol Resources Matching Grant Program Fund-To Economic Development then Finance

SB 631 Sen. McCabe-Providing refundable exemption for certain contractor purchases-To Finance

SB 636 Sen. Bailey-Establishing minimum density requirement for residential zoning purposes-To Judiciary

SB 640 Sen. Love, Foster, Boley and Oliverio-Authorizing local governments purchasing card program participation-To Government Organization then Finance

SB 641 Sen. Boley and Love-Defining term "PSC motor carrier inspectors and enforcement officers" for criminal provisions purpose-To Judiciary

SB 642 Sen. Boley and Love-Modifying definition of "law-enforcement officer" to include PSC motor carrier inspectors and enforcement officers-To Judiciary

SB 646 Sen. Love-Authorizing Public Service Commission to order acquisition of failed water or sewer utilities-To Transportation and Infrastructure then Judiciary