March 3, 2008

LEGISLATIVE SESSION ENTERS FINAL WEEK

Today marks the final week of this year's legislative session and the number of major bills still under consideration has narrowed significantly. Midnight, Saturday, March 8, is when this session ends. Last Wednesday was "cross-over" day, the day that each bill had to pass its house of origin in order to continue through the legislative process. In the Senate, 172 bills were passed and sent to the House. In the House, 174 bills received approval that will now go the Senate for further debate.

Bills that the CAWV will continue to pursue this week include the Public-Private Transportation Facilities Act (H.B. 4677), S.B. 297, giving the School Building Authority the ability to sell bonds for school projects, and S.B. 657, the West Virginia Alcohol and Drug-Free Workplace Act. Bills that did not advance their house of origin include a bill to require mandatory health insurance for contractors working on public works projects, bills to reform deliberate intent and asbestos litigation, and mandated sick leave requirements.

"Captive Audience" legislation, described as one of the most onerous bills to future economic development in the state, has caught the attention of every business group and many newspaper editors around the state. The bill, H.B. 4132, passed the House and was expected to be on a Senate committee agenda last week. Many in the business community called their senators voicing strong opposition to the bill. Many CAWV members contacted their senators as well. Action on the bill has slowed but it is expected the bill will be discussed this week.

MEMBERS URGED TO CONTINUE CALLS TO SENATE

The CAWV thanks all members who have called their senators with their opposition to H.B. 4132. The calls have caused the sponsors of the bill to consider amendments that could mitigate some of the onerous sections of the bill. The state's business community is united in its position that the only option is to defeat this bill. Please continue your calls to your senators urging defeat of H.B. 4132. Attached with this bulletin are editorials from The Register-Herald, The Intelligencer and The Herald-Dispatch. A copy of a February 28 Charleston Daily Mail article by Business Editor George Hohmann was included in Friday's CAWV Newsletter.

BUSINESS BILLS

A number of bills of importance to business will be debated this week. They include: Combined Report/Corporate Net Tax Relief (S. B. 680); elimination of the Business Franchise Tax (S.B. 465); workers' compensation (H.B. 4381 and H.B. 4636); expedited air permits (H.B. 4438); stream water standards (S.B. 456); and venue (H.B. 4019). A bill that has generated a lot of discussion this week is H.B. 4385, a bill to revise certain powers and duties of the Legislative Auditor. It authorizes audits of state funds, including funds derived from a state controlled function, provides legislative intent as to proposals for regulating professions and occupations, and allows reports to be conducted by the Legislative Auditor by request.

The bills intended purpose is to give the Legislative Auditor authority to audit organizations that receive state funding to make sure they are meeting their stated purpose. However, concern was raised last week as to whether companies that have contracts with the state – vendors who supply goods and services or contractors who bid with the WV Division of Highways and other state contracting agencies – would fall under the purview of this legislation. H.B. 4385 could give the auditor authority to review the records, books and accounts of a local or private entity or agency to make sure the entity fairly and accurately reflects its financial and fiscal operations relating to the obligation, receipt, expenditure and use of state funds. The CAWV and other business groups have met with legislators to include language in the bill that excludes entities that competitively bid on state contracts from a legislative audit.

PURCHASING BILL REVISED

The Department of Administration introduced H.B. 4664 which makes changes to the state's purchasing laws. The bill, as introduced, changed language in current statute which gives the Purchasing Division the ability to negotiate contracts when all bids exceeded available funds. The department wanted to allow negotiation on all contracts, regardless if the bids were over the maximum budgeted amount. The department also wanted to negotiate with all bidders rather than the current law, which requires the division to work with the low bidder first and then go to subsequent bidders, prohibiting the division from negotiating with any bidder after closing negotiations with that bidder and entering into negotiations with the next bidder. The bill also amended the state's preference law by adding a 2.5 percent preference for veterans and a 2.5 percent preference for small and minority business enterprises. The CAWV met with administration officials and the bill has been amended to restore current language to allow negotiation only when bids exceed the maximum budgeted amount and only in the manner provided in current law. The vendors preference language will not change either. The bill will give state agencies the ability to sell surplus property at the posted price in addition to the current auction procedure. The bill passed the House Wednesday and has been referred to the Senate Government Organization and Finance committees.

MANDATORY HEALTH INSURANCE BILL DEAD THIS SESSION

The House did not pass H.B. 4520, a bill requiring contractors bidding on public works projects to provide mandatory health insurance for its employees. The CAWV has opposed this bill for a number of reasons, including the fact that every state that has attempted to dictate benefit programs have had their laws overturned by federal courts. States cannot preempt ERISA, the Employment Retirement Income Security Act. More importantly, the bill would have hurt small contractors who would have not been able to bid as prime or subcontractors on local, county or municipal government construction contracts. It is anticipated this bill will be on the agenda for next year's legislative session. There is always the remote possibility the bill could be amended into another bill before the end of session.

Below is a partial list of bills the CAWV has been tracking that passed their house of origin. The Senate will be debating House bills this week and the House, Senate bills. Anyone having a specific questions can call the CAWV at 304-342-1166 or email Mike Clowser at mclowser@cawv.org

HOUSE BILLS

H. B. 3188 Creating a means by which effectiveness of economic development incentives can be measured.- To Economic Development

H. B. 3204 Authorizing a county to hire a blasting enforcement officer-To Finance

H. B. 4030 Requiring that workplace fatalities be reported to the Division of Labor-To Labor and Industry then Judiciary

H. B. 4038 Allowing the Division of Labor to promulgate Rules to license elevator workers-To Government Organization.

H. B. 4072 Clarifying that the Board of Registration for Professional Engineers is subject to a regulatory board review-To Government Organization

H. B. 4121 Authorizing the participation of local governments in a purchasing card program to be administered by the Auditor-To Finance

H. B. 4132 Prohibiting employers from mandating captive meetings with their employees relating to political matters-To Judiciary then Finance

H. B. 4209 Authorizing the Department of Administration to promulgate legislative rules-To Judiciary

H. B. 4244 Authorizing the Department of Transportation to promulgate legislative rules-To Judiciary

H. B. 4290 Relating to electronic commerce-To Finance

H. B. 4449 Allowing the Higher Education Policy Commission and WV Council for Community and Technical College Education to enter into lease-purchase agreements-To Education then Finance

H. B. 4476 Public-Private Transportation Facilities Act-To Transportation and Infrastructure then Finance

H. B. 4527 Allowing county commissions to regulate subdivisions and land development without adopting a plan-To Government Organization then Judiciary

H. B. 4567 Attracting private investment for the financing, construction and operation of additional lodging units at Stonewall Jackson Lake State Park-To Natural Resources then Finance

H. B. 4636 Making Changes to workers' compensation income-To Judiciary

H. B. 4664 Clarifying the purpose of the Purchasing Division-To Government Organization then Finance

SENATE BILLS

S. B. 72 Expanding Route 2 and Interstate 68 Authority territory-To Government Organization

S. B. 88 Creating brownfield economic development districts-To Finance

S. B. 251 Relating to land surveyor's licensing-To Government Organization then Finance

S. B. 280 Modifying Downtown Redevelopment Act-To Finance

S. B. 297 Authorizing School Building Authority to issue revenue bonds from State Excess Lottery Fund-To Finance

S. B. 309 Increasing Secretary of Transportation and Commissioner of Highways salary when one person serves as both-Government Organization then Finance

S. B. 323 Relating to stormwater systems generally-To Judiciary

S. B. 373 Authorizing Miscellaneous Boards and Agencies promulgate legislative rules-To Judiciary

S. B. 465 Eliminating Business Franchise Tax-To Finance

S. B. 466 Authorizing Water Development Authority to administer Dam Safety Rehabilitation Revolving Fund Loan Program-To Judiciary then Finance

S. B. 467 Reauthorizing Dam Safety Rehabilitation Revolving Fund-To Judiciary then Finance

S. B. 657 Creating Alcohol and Drug-Free Workplace Act-To Judiciary

S. B. 680 Relating to corporate net income tax and business franchise tax-To Finance

S. B. 681 Creating Beckley-Raleigh County Building Code Authority-To Government Organization then Finance

S. B. 686 Relating to Infrastructure and Jobs Development Council-To Finance

S. B. 770 Reducing certain landfill solid waste assessment fees-To Finance