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Tuskegee Airmen Honored During Senate Session

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The Senate unanimously voted yes on Senate Resolution 6 which honor Clifford E. Brooks, member of the Tuskegee Airmen in World War II, for his service during the war. Brooks was recently honored in Keyser, West Virginia.

The Senate introduced SB 151-251.

Senate Bill 155 Authorizing correctional officers to retire after 25 years.

Senate Bill 234 Requiring schools to provide elective courses on religion.

Senate Bill 237 Improving ability of law enforcement to locate and return missing persons.

The following committees will meet today:

The Senate Energy, Industry & Mining Committee will meet at 1 p.m. in 208W.

The Senate Education Committee will meetat 1 p.m. in 451M.

The Senate Health & Human Resources Committee will meet at2 p.m. 451M.

The Senate Government Organization Committee will meet at 2 p.m. in 208W.

The Senate Judiciary Committee will meet at3 p.m. 208W.

The Senate Finance Committee will meet at 3 p.m. in 451M.

TheSenate is adjourned until 11 a.m. tomorrow, Jan. 11.

Governor Justice’s Budget Proposal

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Revenue Secretary Presents Governor’s Proposed Budget to House Finance

Secretary of Revenue Dave Hardy and Mike Cook, director of the State Budget Office, presented legislators with Gov. Jim Justice’s proposed budget in Monday’s House Finance Committee meeting. 

The 2018 fiscal year ended with a General Revenue surplus of $36.1 million, with $18 million transferred to the Rainy Day fund. 

The Medicaid program ended 2018 with a healthy cash balance in the state’s matching share.  Fiscal year revenues for 2019 revenues are $185.9 million above estimate at the end of December 2018.  The 2019 fiscal year lottery revenues are running about 16 percent ahead of estimates.

General revenue cash flow for the 2019 fiscal year is strong because of punctually for paying bills, Cook told legislators.  The governor also recommended a 5 percent pay raise for all state employees. This amounts to $2,120 for teachers, $1,150 for service personnel, and $2,370 for other state employees. He also included the second year of increases for corrections employees. 

The budget includes new money dedicated to Social Services, deferred maintenance, tourism, and substance programs as well.

Rainy Day funds are strong, Hardy said, with more than $718.6 million as of December 2018. No Rainy Day funds were used to balance the 2020 fiscal year budget.

First Regular House Session Kicks Off with Officer Elections

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The House of Delegates convened Wednesday, Jan. 9 for the first regular session of the 84th West Virginia Legislature.

To start the session, delegates were sworn into office and then elected officers.  Delegate Bill Anderson, R-Wood, served as the presiding officer over the House of Delegates until the elected positions were filled.

West Virginia Chief Justice Beth Walker administered the Oath of Office to the House and swore new and returning Delegates into the legislative session.

The first item of business was the appointment of the Speaker of the House for the 84th Regular Session of the West Virginia Legislature. Delegate John Shott, R-Mercer, nominated Delegate Robert Hanshaw, R-Clay, to be elected Speaker of the House.

Delegate Amy Summers, R-Taylor, seconded the nomination, saying Hanshaw “has a vision to make West Virginia a better place to live, work, and raise a family.”

With 59 votes, Delegate Roger Hanshaw took his place as the Speaker of the House for the Regular Session of the 84th West Virginia Legislature.

In his acceptance speech, Hanshaw referred to ambitious plans for the legislative session. Goals for the House of Delegates include working on legislation to increase broadband access to parts of rural West Virginia, and working on legislation to reform the state’s foster care system.

Steve Harrison was re-elected as House Clerk.

Anne Lieberman was re-elected as House Sergeant-at-Arms.

Robert Stewart was re-elected as House Doorkeeper.

After electing members of the 2019 Regular Session and adopted a procedural resolution to invite Gov. Jim Justice give his State of the State Address at 7 p.m. 

The House of Delegates will reconvene at 6:45 p.m. to conduct further legislative business.

The House of Delegates will reconvene at 11 a.m. on Jan. 10, tomorrow,in the House Chamber.

 

The Following House Committees are meeting in the next 24 hours:

The House Education Committee will meet at 2 p.m. in 434M today, Jan. 9.

The House Finance Committee will meet at 2 p.m. in 460M today, Jan. 9.

The Government Organization Committee will meet at 2 p.m. in 215E today, Jan. 9.

The House Judiciary Committee will meet at 2 p.m. in 410M today, Jan. 9.

 

The House Committee on Banking and Insurance will meet at 10 a.m. in 215E tomorrow, Jan. 10.

The House Finance Committee will meet at 9 a.m. in 460M tomorrow, Jan. 10. 

Senate Convenes for the 84th Legislature, Introduces 150 Bills

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The West Virginia Senate convened the First Regular Session of the 84th Legislature today at noon. 

Newly elected members of the Senate were immediately sworn in by Evan Jenkins, State Supreme Court Justice. 

Mitch Carmichael was re-elected as President of the Senate. Lee Cassis was re-elected as Senate Clerk. Joseph Freedman was re-elected as Sgt. In Arms. Jeffery Brahman was re-elected as the Senate Door Keeper. 

After the elections, the Senate introduced bills 1-149.

The following committees will meet today:

Pensions at 2 p.m. in 451M

Judiciary at 3 p.m. in 208W

The following committees will meet tomorrow:

Finance at 9:30 a.m. in 451M

Update:

The Senate reconvened after the State of the State Address by Governor Jim Justice to introduce Senate Bill 150 which involves the state budget.

The Senate is adjourned until 11 a.m. tomorrow, Jan. 10. 

 

West Virginia’s First Spacecraft Highlight of Committee Meeting

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The Joint Committee on Technology convened at 2 p.m. on Tuesday, Jan. 8 in M-451. The focus of the meeting was an informational presentation by the engineers and coordinators behind STF-1, the first spacecraft completely manufactured in West Virginia.

STF-1, or “Simulation-to-Flight 1”, is a variation of satellite known as a “CubeSat”. These miniature satellites are designed to be low-cost and high-efficiency, which allowed the spacecraft to be completed in just a minimal four years.

 STF-1 was funded entirely by NASA and their Independent Verification and Validation Program. Work on the project was facilitated by Lead Engineer Matt D. Grubb of Reliable Systems, Inc. and Systems Engineer Scott A. Zemerick of TMC2. Justin D. Morris served as the Principal Investigator of STF-1. A unique trait of the spacecraft is that the three primary engineers are WVU alumni. Additionally, WVU’s science and engineering faculty and interns played a central role in integrating the hardware and software utilized in STF-1.

 Unique features of the CubeSat include a GPS receiver that gives details of the satellite’s location in orbit, a specialized array of LED lights that are immune to the effects of the space environment, and a radio on board that communicates at 460 megahertz. Additionally, the STF-1 is one of the first CubeSats that utilizes more than one IMU, or inertial measurement unit, which measures orbital movement. The STF-1 features 32 IMU’s, yet the entire spacecraft is no larger than a loaf of bread.

 “This is very innovative technology, and it was primarily built all here in this state,” said Grubb, lead engineer. “This is a milestone to get excited about.”

 Along with being built in the state of West Virginia, the STF-1 team was also adamant about promoting it within the state too. Promotional campaigns aimed towards students such as a logo design contest and a contest for building a Lego model of STF-1 helped to promote enthusiasm within the state of West Virginia. The West Virginia State Grant Consortium coordinated this state-wide communication outreach, which led up to the exciting launch of STF-1 on December 16, 2018 in New Zealand.

 The West Virginia-born spacecraft is still in orbit, and will continue to be there for observation and radio communication indefinitely.

 The engineers say they are “ready and willing” to build another, and are ready to work with more West Virginia-based organizations for funding and cooperation.

 

Senate Legislation Jan. 9 -18

As of 4 p.m. Friday, January 18, 2019, the 10th day of the first regular session of the 84th Legislature, 354 bills have been introduced to the senate. Of those bills, nine have passed and have been sent on to the House for further consideration.

Senate Bill 10 relates to Second Chance Driver’s License Program. The Program allows temporary reinstatement of an individual’s driver’s license that has been suspended or revoked to due failure to pay court fees as a result of a motor vehicle violation, or has failed to appear in court when charged with a criminal offense. Under the Second Chance Program, the DMV can temporarily stay a driver’s license suspension or revocation for individuals accepted into the programs if the individual remains current in the repayment of unpaid court costs as required by the established repayment plan.

The bill would modify the relevant code provisions in two ways:

  • By providing that when a person is accepted into the program, the DMV coordinates with the courts to get a full accounting of all unpaid courts costs assignable to the applicant.
  • By providing that 100% of payments received as repayments of affine, forfeiture, or penalty are sent back to the courts.

Senate Bill 24 relates to local boards health. The bill would require the Legislature to include funding in the appropriation of the DHHR that must be used for pay raises for employees of local board of health when an across the board pay increase is provided for state employees. The bill would also require the funding be ongoing.

Senate Bill 27 would remove current restrictions on where certain KENO themed lottery games may be played. Currently these games may only be played at locations that are authorized to sell alcohol. The bill would allow these games to be sold at all traditional lottery licensed retail locations.

Senate Bill 28 would remove the current $200,000 limitation on the amount collectable by a county via the hotel occupancy tax that may be used for medical care and emergency services.

Senate Bill 36 would provide protections for any person who retires under an employer-provided defined benefit pension plan. If that pension plan terminates prior to or after the retirement of that person and the pension plan is covered by a guarantor whose maximum benefit guarantee is less than the maximum benefit to which the retiree was entitled, the protection provided by the bill would be then put into place.

If the Tax Commissioner determines that this adjustment reduces the revenue of the state by 2 million or more in any one year, then the Tax Commissioner must reduce the percentage of the reduction to a level at which the Tax Commissioner believes will reduce the cost of the adjustment to 2 million for the following year.

Senate Bill 190 relates to a rule proposed by the State Personnel Board for a new pay plan for the division that allows salaried and hourly classified service employees to be compensated for hours worked after the accumulation of 40 hours for the work week, even if annual or sick leave was used during that time. The employee must occupy a position that is paid either premium or straight-time for overtime hours worked. The proposed rule has also been amended by adding the required sunset provision.

Senate Bill 177 contains a proposed rule which amends a current legislative rule by adding a required sunset provision and by updating an energy efficiency standard for commercial buildings from the 2007 edition to the 2010 edition of the International Property Maintenance Code.

Senate Bill 106 would provide for a tax credit for income taxes imposed by and paid to a foreign country.

Senate Bill 272 would update code relating to Commission on Special Investigations. It would provide the Commission more backing, and adds more regulation on how the Commission conducts investigations.

  • The bill specifies that the President and the Speaker are to be one of the members from each of their respective houses and that they are to serve as chairs of the Commission.
  • The bill states that the investigative staff is to consist of a director, a deputy director, senior investigators and investigators approved by the co-chairs.
  • The bill allows the commission to request rather than subpoena records for state, county, and local government entities.

Legislators Hear West Virginia Economic Outlook

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The director of West Virginia University’s Bureau of Business and Economic Research says West Virginia’s economy is moving in the right direction but still has a long way to go.

In Wednesday’s Joint Standing Committee on Finance, John Deskins, director of WVU’s Bureau of Business and Economic Research, presented the 2019-2023 West Virginia Economic outlook.

After the state lost more than 26,000 jobs between 2012 and 2016, West Virginia has added 7,000 jobs, according to the report.

“We are moving in the right direction but we still have a long way to go to get back to where we were in 2012,” Deskins said.

Although other counties have added jobs, primary growth has been concentrated in eight counties— Monongalia, Marshall, Harrison, Doddridge, Roane, Jackson, Berkeley and Jefferson. Growth has mainly been driven by energy industries.

West Virginia’s Gross Domestic Product – which measures the total value of goods produced and services provided – grew in 2017 and outpaced 40 other states, according to the report. This growth was driven by energy-related industries.

The state’s unemployment rate has increased over the past year and currently stands in the low 5 percent range. The increase has been driven by more individuals returning to the labor market to look for work. However, Deskins said a big concern is West Virginia’s labor force participation, which measures people who are actively looking for work. Only 53 percent of West Virginia’s population is either working or looking for work, which is the lowest rate in all 50 states.

The national rate is 63 percent. He explained this number will never be 100 percent because it accounts for the population including those who are retired or attending school.

The economy also differs by region:

  • Deskins said the Southern Coal Fields are suffering the most with five counties that went through a Great Depression.
  • The New River Gorge region is categorized as a stagnant area but Deskins said there is a lot of potential, especially with tourism.
  • The Metro Valley is categorized as a stable region with potential in the petrochemical industry.
  •  North Central West Virginia is categorized as strong with a more diversified economy.
  • The Eastern Panhandle also has experienced growth. Deskins said some of this growth is from D.C. commuters but he said the region also has experienced homegrown growth.
  • The Shell Gas Boom Region in the Northern Panhandle has experienced good wage growth but low employment growth. He said there is potential with natural gas in keeping natural gas in the state to break into various products.

Legislators asked about how outmigration is affecting the state’s economy. Deskins said it has a “tremendous” effect. West Virginia’s population has decreased by nearly 40,000 since 2012, according to the report, and is estimated to continue to lose population in the next five years.

Deskins said the state needs to diversify its economy and focus on fostering a conducive environment for entrepreneurs.

“Entrepreneurship is essential,” he said. “Most people who start a business this year will not be running that business next year. But the ones who do find success—that’s how you find the right industrial mix.”

“The conclusion is there should never be an economic development discussion that doesn’t somehow include the question of what we can do to create, foster, and support an environment more conducive to entrepreneurship.”

Joint Committee Considers Draft Legislation Pertaining to Volunteer Fire Departments

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 The Joint Committee on Volunteer Fire Departments and Emergency Medical Services convened at 12 p.m. on Tuesday, Jan. 8 in Room 215-E to consider two pieces of draft legislation pertaining to the financial procedures of Volunteer Fire Departments in the state of West Virginia.

Doren Burrell, an Attorney representing the West Virginia’s Legislative Services Division, presented two pieces of draft legislation—respectfully referred to as VFD 1 and VFD 2 throughout the committee meeting.

  • VFD 1 is a piece of draft legislation that would require West Virginia’s Volunteer Fire Departments to document their use of allocated state funds. This legislation would require Volunteer Fire Departments to send financial statements and images of checks to Legislative Auditors in order to be held accountable for the use of funds. Failure to comply or suspicion of noncompliance could result in the Volunteer Fire Department being audited.

  • VFD 2 involves redefining the sanctions put on Volunteer Fire Departments for financial infractions. Whereas the current law does not specify a financial penalty for Volunteer Fire Departments spending money on unauthorized expenditures, this bill allows for future grant money to be deducted from in order to cover the cost of unauthorized expenditures and misapplication of state funds. Additionally, failure to meet written requests from state auditors could also result in the reduction or holding of grant money from the Volunteer Fire Department.

     

Nathan Hamilton, a West Virginia Auditor for Volunteer Fire Departments, cited that $22 million dollars total were given to 428 West Virginia Volunteer Fire Departments in the fiscal year of 2018. Of that, 21 Volunteer Fire Departments were found to be in noncompliance. $2.8 million dollars were audited.

Senator Ron Stollings (D-Boone) was critical of the proposed legislation, arguing that it made it more difficult to retain and recruit needed volunteer firefighters in the state.

“Hopefully, since this session is just beginning, this committee can move in a direction and draft some legislation that will help our volunteer firefighters—people who greatly need it.” Stollings said.

Both pieces of draft legislation were approved of by the committee to be reviewed and introduced as bills during the 84th West Virginia Regular Legislative Session for passage. The bills would work to solve for the loss of state funds in the state due to misuse, and allow for more state discretion over how volunteer fire departments utilize state funds.

Subcommittee Updated on Post Audits

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The West Virginia Legislative Auditor’s office said no audit was performed on Wireless Enhanced 911 Funds during a Post Audits Subcommittee convened 9 a.m. Tuesday in Senate Finance.
 
Christian Baumgarner from the Post Audit Division said West Virginia is now ineligible to apply and receive certain federal funds following the diversion of E-911 funds.
 
The Legislative Auditor sought to see how fees were overlooked and was informed by the Public Service Commission that there was no statutory requirement or authority to conduct audits on all fees.
 
In the case of a dispute with these fees, the PSC may review expenditures but the Legislative Auditor was informed these disputes are rare.
 
After reviewing filings from the Federal Communications Commission on other state’s E-911 fee process, the Legislative Auditor found West Virginia has less control over fees than other states. Baumgarner suggested the subcommittee amend code to have the PSC or the State Auditor’s office to conduct audits on fees.
 
John Sylvia, legislative auditor, presented a performance review which showcased information from a random sample of 382 active regular accounts from a population of 322,332. The presentation discussed tax accounts found within this population and the issues they currently present.
 
Sylvia said an estimated 90,000-100,000 accounts are open with no business activity and should be revoked and 87,000 accounts for proprietors do not have a valid business registration.
 
Sylvia also discussed issues with enforcement issues because of businesses addressing delinquencies on their own terms. Sylvia said the agency is using multiple means to help address these delinquencies.
 
Allen Prunty, deputy secretary and general counsel with the West Virginia Department of Revenue, said the department is working on a solution to these delinquencies through personal visits and notices which state that an account is suspended and will be deleted within 30 days following no correspondence.
 
Prunty said his office is looking at legislative audit recommendations which would work with the Tax Department database to write new tax information.
 
Dr. Shred Baba Pokharel from the Division of Highways presented a special report focused on funding and allocation of Districts 4 which includes Doddridge, Harrison, Marion, Monongalia, Preston and Taylor counties and District 5 which includes Grant, Mineral, Morgan, Berkeley, Jefferson, Hampshire and Hardy counties– in the 2009-2017 fiscal years.
 
The subcommittee was presented with data that represented 11 of out 13 counties that spent less than the required 70 percent which is allocated to every county by being distributed into four different government agencies.

Natural Gas Committee Discusses Industry Updates, Pending Court Battle

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The Joint Committee on Natural Gas Development met with Bob Orndorff, state policy director, to discuss positive workforce data for gas-related construction in West Virginia.

Since 2016, employment has increased by 28 percent from 13,408 to 22,514 jobs in West Virginia.

Additionally, the total direct wages from the industry has increased from $1.1 billion in 2016 to $1.5 billion 2017, marking a 36.4 percent increase. Through the first two quarters of 2018, the direct wages are upwards of $935 million, and is expected to surpass last year’s quarter numbers.

 Orndorff also gave the committee updates on the current pipelines constructed in West Virginia, including: Atlantic Coast Pipeline, Mountain Valley Pipeline, and the TransCanada’s Mountaineer Express.

 Orndorff also asked the committee to consider new legislation for the 2019 session. Some of his proposals included creating opportunities to use natural gas in West Virginia through amending Senate Bill 390, enhancing the community college system to support the industry, promoting storage hubs, and supporting the pipeline development.

 The committee asked Orndorff specific questions about four permits currently suspended for a pending court case in the 4th Circuit of Appeals. The permits pertain to the Atlantic Coast Pipeline, crossing the Appalachian Trail, and the Monongahela National Forest.

 The 4th Circuit will hear the case in March of this year and if they win, then construction of the pipeline may continue. If the industry loses in March, Orndorff said they will appeal to the U.S. Supreme Court.