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Legislative Auditor report examines Rise program contracts

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The state Development Office entered into several illegal contracts under the Rise program and the legislative auditor’s office questioned whether homes have been completed under the program, a report from the Legislative Auditor’s Office found.

 

Adam Fridley, interim director of the Legislative Auditor’s Office presented the audit to lawmakers in Sunday’s Post Audits Subcommittee meeting.

 

The audit looked into contracts entered by the West Virginia Development Office and whether they complied with state and federal laws for using Community Development Block Grant—Disaster Recovery Funds.

 

The audit found two main issues. The first is that the Development Office entered into six illegal contracts with Horne LLP, a Mississippi-based accounting and advisory firm, at a cost of about $18 million, the audit said.

 

The second issue the audit found is that the Development Office entered into seven construction contracts, totaling more than $71 million, for home rehabilitation, reconstruction, and replacement services under Rise, which violated state and federal laws.

 

Fridley said Horne was in charge of developing a state action plan and assess unmet needs. The company was under contract at a total of $900,000 to provide these project management services. However, between May 2017 and February 2018, the Development Office entered into six additional task order agreements, costing about $18 million.

 

Fridley said these contracts should have been subject to competitive bidding requirements because they differed substantially from the original contract. He cited an opinion from Legislative Services that these contracts are void under state code.

 

Fridley told the committee the governor’s office ceased payments to Horne under the additional task orders and a new contract with Horne will be finalized at a cost of $9.4 million.

 

Fridley said the Development Office violated federal law with seven construction contracts entered with four different construction companies. These contracts were effective before the Development Office received authority from HUD to use grant funds.

 

The Development Office issued more than $700,000 in payments under these contracts and $400,000 in payments were issued before the office received authorization to use the money, according to the report.

 

The audit also found the Development Office did not comply with purchasing division requirement when it entered into these seven construction contracts.

 

The audit issued five recommendations:

 

  • The Development Office should seek repayment or credit against the new contract for money paid for the task order agreements

  • The Development Office should not issue payments for any work done under the invalid task order agreements

  • The Development Office should cease future payments under current construction contracts for the Rise program

  • The Development Office should terminate existing construction contracts and enter into new contracts that comply with federal and state law

  • The Development Office should work with HUD to resolve issues regarding funds that were spent before the office was authorized to do so.

 

House Speaker Tim Armstead, R-Kanawha, asked Fridley about the status of construction performed under contracts.

 

“Nothing suggests reconstruction or rehabilitation under the program,” Fridley told legislators. “It appears all services rendered thus far were for mobile home replacement units.”

 

Armstead also asked for the status of applicants who either were approved and still do not have homes or applied and don’t know the status of those applications.

 

“For those who have applied and don’t know their status, my understanding in reading the policies and procedures is that this shouldn’t have been the case to begin with,” Fridley said. “Those who have had their applications approved and are waiting on reconstruction, rehabilitation of damaged homes, this could be a multitude of things—environmental reviews, other internal processes. The answer would be on a case-by-case basis.”

 

Senate Minority Leader Roman Prezioso, D-Marion, expressed his concern about the state potentially entering into a new contract with Horne LLP.

 

 

“We are continuing to do business with Horne even though they didn’t complete the requirements under their contract?”

 

House Minority Leader Tim Miley, D-Harrison, asked about the intention of the Development Office entering the six illegal contracts with Horne. Fridley said it appeared to be a lack of awareness of the requirements of state and federal law.

 

Senate President Mitch Carmichael, R-Jackson, asked to hear from a Department of Commerce representative. However, no one was there to speak.

 

“I am disappointed there is not someone here,” Carmichael said. “There will be someone here at the next meeting.”

 

A Commerce representative is scheduled to speak at Tuesday’s Joint Legislative Committee on Flooding meeting, Sen. Ed Gaunch, R-Kanawha, said.

 

Carmichael said he hopes the office will continue looking into the Rise program.

 

“I’m hoping this is a continuing audit under the Rise program and there is more to come,” Carmichael said. “This has been a horribly mismanaged program, in my view. It’s been two years post-flood and we still have all of these issues.”

PEIA Director updates lawmakers on town halls

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Public Employees Insurance Agency Director Ted Cheatham updated lawmakers on feedback received from 21 town halls held across the state.

 

Cheatham presented these updates during Sunday’s Joint Committee on PEIA meeting. He said two wellness plans will be launched soon — a weight loss program and a diabetes program.

 

One popular topic in the town halls concerned funding sources for the plan, which needs an additional $50 million a year to remain where it is now.

 

Cheatham said people who spoke at the town halls suggested several options including an additional severance tax, sugar tax, and re-instating the food tax. The cost and revenue subcommittee will address potential revenue sources, which the Legislature will ultimately need to pass to become law, Cheatham said. 

 

He said people also expressed concern about premium increases and getting treatment from bordering out-of-state hospitals.

 

Cheatham also updated lawmakers about the recent tier changes to prevent about 14,000 people who would be moved to an increased tier from the 5 percent pay raise. 

 

The Public outreach subcommittee will meet Tuesday at 9:30 a.m. in the Governor’s Cabinet Conference Room in Charleston to recap the statewide listening tour.

Legislature Completes 1st Special Session of 2018

The Legislature moved quickly to complete action on eight items put forth by the Governor during the first Special Session of 2018.

House Bill 101 reestablishes the Division of Culture and History as the Department of Arts, Culture and History. Under the legislation that passed Tuesday, the current commissioner of culture and history will become the curator of arts, culture and history. The curator will report directly to the governor.

The Legislature also completed action on House Bill 102, which deals with death benefits for families of firefighters killed in the line of duty. This bill makes a larger death benefit retroactively effective to Jan. 1, to aid the families of Pratt volunteer firefighters who passed away in a crash as they were responding to a fatal accident on the West Virginia Turnpike in March.

The other six items completed today were a combination of supplemental appropriations and bills to provide technical cleanup for recently-passed bills from the 2018 Regular Session.

Legislature Convenes 1st Special Session of 2018

Both the House and the Senate met briefly Sunday evening to convene the First Extraordinary Session of 2018.

Both bodies introduced and read eight bills a first time. Senate Bill 1002 would amend the West Virginia Fire, EMS, and Law-Enforcement Officer Survivor Benefit Act as modified by Enrolled Committee Substitute for Senate Bill 625 to allow for a retroactive effective date of January 1, 2018.

House Bill 104 would modify the type of businesses and establishments required to post human trafficking assistance notice.

The House has adjourned until tomorrow at 11 a.m.

The Senate has adjourned until tomorrow at Noon.

A Senate subcommittee on confirmations will meet at 11:30 a.m. in 208W.

 

Sharon Lewis Malcolm Sworn In to House of Delegates

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Surrounded by friends and family and standing with her son, Dr. John H. Lewis, D.O, his wife Tammy and their kids Matthew H., and Emily Grace, Sharon Lewis Malcolm took the oath of office as administered by Speaker of the House Tim Armstead. House Clerk Steve Harrison presided over the ceremony.

Delegate Malcolm represnts the 39th Delegate District and was appointed to the position this week by Governor Justice following the resignation of Ron Walters during the last week of the 2018 Regular Session.

SB 152 Passes House Unanimously, Adjourns Sine Die

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The House convened today at 10 a.m. during the final day of the Second Regular Session of the 8rd Legislature.

The House unanimously passed Senate Bill 152 – Budget Bill.

The House passed the following bills:

The House refused to concur with the Senate on the following bills:

The House concurred with the Senate and completed the following legislation:

Senate Bill 392 was sent to conference committee.

The House is in recess until 4 p.m.

Update 9:00 p.m.

Bills sent to conference committee: 

Concurred and passed:

Bills completed:

Bills passed:

Concurred and adopted:

The House is in recess until 9:30 p.m.

Concurred and completed:

Concurred and passed:

Rejected:

The House is adjourned sine die.

S. B. 152, The Budget Bill Passed, Senate Adjourned Sine Die

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The Senate convened today at 11 a.m.

The Senate concurred with the House’s amendments to S. B. 152, the Budget Bill. The bill was passed unanimously and is now awaiting action by the Governor. With the passage of the bill on day 60, the last day of the legislative session, the session will not need to extend to finish the budget, provided what action the governor takes.

This year the budget was able to pass without first needing to go through a conference committee which comes about from disagreements between the House and Senate.

The body amended the House amendments to the following bills and concured and passed as amended:

The Senate concured with the House and passed the following bills which are now awaiting action by the Governor:

The Senate adopted and passed the following Conference Committee Reports:

The Senate filed the Conference Committee reports for S. B. 282.

The Senate appointed conferees to the following Conference Committees

S. B. 392

H. B. 4001

H. B. 4447

H. B. 4629

H. B 4626 was taken up for immediate consideration and read three times. It passed 33-0 with one member absent and is now awaiting action by the Governor.

The Senate is in recess until 5 p.m.

Committees meeting today:

Judiciary at 3:50 208W

Transportation and Infrastructure immediately following the floor session in the back of the chamber.

 

Update Sunday, March 11 at 12: 33 a.m.

The Senate reconvened at 5 p.m. and met peridocially throughout the night.

The body confirmed all nominations in Executive Message 5.

S. B. 288 was referred to the Rules Committee.

The Senate adopted S. J. R. 3

The Senate Passed:

H. B. 4607

H. B. 4345

H. B. 4465

S. B. 392

The Senate concured and passed:

S. B. 468

S. B. 633

H. B. 4009

H. B. 4156

H. B. 4338

H. B. 4392

H. B. 4603

H. B. 4001

 H. B. 4488

H. B. 4320

The Senate amended and passed:

S. B. 625

S. B. 92

The Senate receded its amendments and passed:

S. B. 282

H. B. 2869

Refused to concur with the House’s amendments:

H. B. 4428

H. B. 4431

The Senate is adjourned sine die.

Senate H. B. 4006

The Senate convened at 11 a.m.

The body agreed to a conference committee for the following bills:

S. B. 51

S. B. 282

S. B. 545

S. B. 582

The Senate recieved Conference Committee reports for S. B. 46, and H. B. 4186.

The Senate refused to concur to the House’s amendments for S. B. 392.

The Senate concured with the House’s amendments to S. B. 273, S. B. 506, S. B. 585 and H. B. 4522.

The Senate amended the House’s amendments to S. B. 261, S. B. 275, S. B. 463, S. B. 525 and S. B. 548 and concured with the amended version.

Bills on Third Reading:

S. B. 635 – Relating to 2019 salary adjustment for employees of DHHR – was passes unanimously and sent to the House for further consideration.

H. B. 2008 – Relating to the Dealer Recovery Program – was passed unanimously and is now awaiting action by the Governor.

H. B. 2655 – Defining and establishing the crime of cyberbullying – was passed unanimously and sent to the House to concur.

H. B. 2799 – Prohibiting the superintendent of schools from requiring a physical examination to be included to the application for a minor’s work permit – was passed unanimously and sent to the House to concur.

H. B. 2869 – Providing for paid leave for certain state officers and employees during a declared state of emergency – was passed unanimously and sent to the House to concur.

H. B. 2982 – Relating to allowing draw games winners to remain anonymous – was passed unanimously and sent to the House to concur.

H. B. 3089 – Relating to the adoption of instructional resources for use in the public schools – was passed 31-2 with one member absent and is now awaiting action by the Governor.

H. B. 4001 – Relating to eligibility and fraud requirements for public assistance – was passed 27-9 with one member absent and sent to the House to concur.

H. B. 4002 – Providing that all delegates shall be elected from one hundred single districts following the United States Census in 2020 was passes 30-3 with one member absent and sent to the House to concur.

H. B. 4006 – Revising the processes through which professional development is delivered for those who provide public education – was passed 18-15 and sent to the House to concur.

H. B. 4009 – State Settlement and Recovered Funds Accountability Act –  was passed 22-11 with one member absent and sent to the House to concur.

H. B. 4036 – Increasing the maximum salaries of family case coordinators and secretary-clerks –  was passed unanimously and is now awaiting action by the Governor.

H. B. 4150 – Prohibiting telecommunications and IP-enabled voice services from displaying the name or telephone number of the recipient – was passed unanimously and sent to the House to concur.

H. B. 4156 – Establishing the qualifications of full and part time nursing school faculty members – was passed unanimously and sent to the House to concur.

H. B. 4157 – Eliminating the refundable exemption for road construction contractors – was passed unanimously and is now awaiting action by the Governor.

H. B. 4166 – Establishing a special revenue fund to be known as the “Capital Improvements Fund – Department of Agriculture Facilities” – was passed unanimously and is now awaiting action by the Governor.

H. B. 4187 – Business Liability Protection Act – was passed 32-1 with one member absent and sent to the House to concur.

H. B. 4217 – Permitting an attending physician to obtain a patient’s autopsy report – was passed unanimously and sent to the House to concur.

H. B. 4233 – Relating generally to fraudulent transfers – was passed unanimously and sent to the House to concur.

H. B. 4251 – Permitting employees of baccalaureate institutions and universities outside of this state to be appointed to board of governors – was passed unanimously and sent to the House to concur.

H. B. 4270 – Providing for the timely payment of moneys owed from oil and natural gas production – was passed unanimously and sent to the House to concur.

H. B. 4320 – Limiting the ability of an agent under a power of attorney to take self-benefiting actions – was passed unanimously and sent to the House to concur.

H. B. 4324 – Relating to the employment of individuals by municipal paid fire departments under civil service – was passed unanimously and sent to the House to concur.

H. B. 4338 – Relating to the powers and authority of the Divisions of Administrative Services, and Corrections and Rehabilitation of the Department of Military Affairs and Public Safety – was passed 32-1 with one member absent and sent to the House to concur.

H. B. 4345 – Relating to limitations on permits for growers, processors and dispensaries of medical cannabis – was laid over for one day.

H. B. 4350 – Eliminating the regulation of upholstery – was passed unanimously and sent to the House to concur.

H. B. 4389 – Expiring funds to the Enterprise Resource Planning System Fund – was passed unanimously and sent to the House to concur.

H. B. 4392 – Relating to Medicaid subrogation liens of the Department of Health and Human Resources – was passed unanimously and sent to the House to concur.

H. B. 4394 – Relating to forest fires – was passed unanimously and sent to the House to concur.

H. B. 4424 – Providing that the Ethics Act applies to certain persons providing services without pay to state elected officials – was passed unanimously and sent to the House to concur.

H. B. 4428 – Allowing training hours earned through public school education or apprenticeship to count towards an applicant’s occupational certification – was passed unanimously and sent to the House to concur.

H. B. 4431 – Establishing the Mountaineer Trail Network Recreation Authority – was passed unanimously and sent to the House to concur.

H. B. 4447 – Providing for a uniform and efficient system of broadband conduit installation – was passed unanimously and sent to the House to concur.

H. B. 4465 – Authorizing the acupuncture board to issue certificates to perform auricular acudetox therapy – was laid over for one day.

H. B. 4486 – Relating to persons required to obtain a license to engage in the business of currency exchange – was passed unanimously and is now awaiting action by the Governor.

H. B. 4488 – Relating to the Hatfield-McCoy Recreation Authority – was passed 31-1 with two members absnet and sent to the House to concur.

H. B. 4524 – Establishing guidelines for the substitution of certain biological pharmaceuticals – was passed unanimously and sent to the House to concur.

H. B. 4558 – Establishing the Entrepreneurship and Innovation Investment Fund in the West Virginia Development Office – was passed unanimously and is now awaiting action by the Governor.

H. B. 4603 – Providing immunity from civil liability to facilities and employees providing crisis stabilization – was passed unanimously and sent to the House to concur.

H. B. 4628 – Relating to authorizing the redirection of amounts collected from certain surcharges and assessments on workers’ compensation insurance policies for periods prior to January 1, 2019 – was passed unanimously and is now awaiting action by the Governor.

H. B. 4629 – Relating to broadband enhancement and expansion policies generally – was passed unanimously and sent to the House to concur.

Bills on Second Reading:

H. B. 4607 was amended on the floor.

The Senate is in recess until 7:30 p.m.

Committees meeting today:

Pensions directly following the floor session in the back of the Senate Chambers

The Conference Committee for S. B. 51 will meet at 6 pm. in 208W

The Conference Committee for S. B. 545 will meet at 7 p.m. in 208W

 

Update 8:24 p.m.

The Senate reconvened at 8 p.m.

The Senate concured with the amendments to H. B. 4401.

The Senate filed the conference committee reports for S. B. 51 and S. B. 545.

The Senate is adjourned until tomorrow at 11 a.m.

Committees meeting tomorrow:

Conference Committee S. B. 282 9 a.m. 410M

 

House Completes Bills

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The House convened today at 11 a.m. during the fifty-ninth day of session.

The House concurred with the Senate and completed the following legislation:

The following bills will be sent to conference committee:

The House passed the following Senate bills:

  • Com. Sub. for S. J. R. 3 – Judicial Budget Oversight Amendment.

  • Com. Sub. for S. B. 10 – Relating generally to PSC jurisdiction.

  • Com. Sub. for S. B. 82 – Including rebuttable presumptions in certain cases for firefighters with regard to workers’ compensation.

  • Com. Sub. for S. B. 141 – Expanding county assessment and collection of head tax on breeding cows.

  • Com. Sub. for S. B. 230 – Authorizing Department of Commerce promulgate legislative rules.

  • Com. Sub. for S. B. 244 – Specifying conditions for unlawful possession of firearm at school-sponsored activities.

  • Com. Sub. for S. B. 271 – Creating centralized Shared Services Section of Department of Administration.

  • Com. Sub. for S. B. 283 – Relating generally to procurement by state agencies.

  • Com. Sub. for S. B. 288 – Regulating cremation, embalming and directing of funeral service.

  • Com. Sub. for S. B. 313 – Waiving occupational fees and licensing requirements for certain low-income individuals, military families, and young workers.

The House is in recess until 1:30 p.m.

Committee on Rules will meet at 1:15 p.m. behind the chamber.

Update 3:54 p.m.

The House worked on and passed the following bills:

  • S. B. 339 – Relating to WV Retirement Health Benefit Trust Fund within PEIA.
  • Com. Sub. for S. B. 355 – Dissolving IS&C Division under Office of Technology.
  • Com. Sub. for S. B. 375 – Relating to farmers markets.
  • Com. Sub. for S. B. 401 – Requiring specified coverage in health benefit plans for treatment of substance abuse disorders.
  • S. B. 406 – Clarifying that ground emergency medical transportation is eligible for Medicare and Medicaid reimbursement.
  • S. B. 407 – Licensing and approval of child care programs.
  • Com. Sub. for S. B. 408 – Licensing of nursing homes and assisted living residences.
  • S. B. 425 – Removing sunset dates which members of policemen’s or firemen’s pension fund elect to participate in deferred retirement option plan.
  • Com. Sub. for S. B. 434 – Specifying documents not subject to discovery in certain proceedings.
  • Com. Sub. for S. B. 438 – Relating to debt service on bonds secured by State Excess Lottery Revenue Fund.
  • Com. Sub. for S. B. 442 – Establishing universal forms and deadlines when submitting prior authorization electronically.
  • Com. Sub. for S. B. 443 – Terminating parental rights when certain conditions are met.
  • Com. Sub. for S. B. 445 – Allowing DOH acquire real or personal property for utility accommodation.
  • Com. Sub. for S. B. 446 – Creating Agritourism Responsibility Act.
  • S. B. 468 – Changing date and recipients for submission of Auditor’s annual report.
  • Com. Sub. for S. B. 469 – Converting Addiction Treatment Pilot Program to permanent program.
  • Com. Sub. for S. B. 495 – Designating specific insurance coverages exempt from rate filing requirements
  • Com. Sub. for S. B. 501 – Relating to accrued benefit of retirees in Deputy Sheriff Retirement System.
  • Com. Sub. for S. B. 521 – Requiring chief executive of municipal law-enforcement agency be certified law-enforcement officer.
  • Com. Sub. for S. B. 528 – Providing additional circuit judge for nineteenth judicial circuit.
  • S. B. 551 – Relating to failure of employers to make contributions on behalf of employees to retirement plan administered by CPRB.
  • Com. Sub. for S. B. 556 – Creating small business and minority populations economic and workforce development taskforce to assist Economic Development Authority.
  • S. B. 592 – Adding examination of advanced care technician for firefighter paramedic.
  • S. B. 612 – Relating to sale of municipal property.
  • Com. Sub. for S. B. 625 – Creating WV Volunteer Fire and Rescue Act of 2018.

The House is in recess until 4:30 p.m.

Committee on Rules will meet at 4:15 p.m.

Update 7:27 p.m.

The House concurred with the Senate and completed the following legislation:

Bills passed:

Bills on second reading:

The House is adjourned until 10 a.m. tomorrow.

House Passes Budget Bill

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After several hours of debate, the House of Delegates unaimously passed its version of the Budget Bill.

House Bill 4019 was discussed and 13 amendments to the amendment offered during a debate that lasted until about 11 p.m. Thursday. All amendments were rejected except one, which was offered by Del. Eric Nelson and adopted.

The strike and insert amendment offered by Del. Eric Nelson was also adopted.

The House attempted to suspend rules for the Senate’s budget bill, Senate Bill 152, but voted the constitutional rule suspension down.

The House is adjourned until 9 a.m. tomorrow.