The Joint Judiciary Committee met this morning to hear a presentation on the enforcement of SB 679 and the regulation of hemp, kratom, and THC products (HKT). To sell these products, businesses must have certifications on their business license for hemp, kratom, and THC products. Businesses must also have certifications to sell drug paraphernalia, and tobacco/vape products. 

The Tax Department provides education and information first. If education does not work, enforcement will take place, such as formally written warnings. Excise tax issues are handled through the seizure of contraband products. Business license issues are handled through misdemeanor citations or criminal complaints. Drug paraphernalia cannot be sold at fairs and festivals. Localities could have additional regulations. 

In the past three months, 105 stores selling vapes/HKT products have been inspected. Two of the stores received 5-day notices and 133 received warning notices. Six stores had 289 packs of illegal cigarettes, 137 boxes of vape products, and 439,383 milliliters seized. Three stores were illegally selling drug paraphernalia. Fourteen stores were caught selling to underage individuals. 

Work is still being done to perfect and tweak the rules for the sale of products. Several agencies are working together to do this. Hemp is an industrial crop, as stated in the 2018 Federal Farm Bill.

Lawmakers received an update Sunday afternoon regarding West Virginia’s plans to secure federal disaster relief funding in response to this month’s tornadoes and flooding that have significantly impacted much of the state.

State Emergency Division Deputy Director Matthew Blackwood gave the update to members of the Joint Legislative Committee on Flooding to kickoff April’s interim legislative meetings.

Blackwood informed committee members that 741 completed damage assessment surveys indicated 24 destroyed homes, with 58 reports of major impacts and 268 reports of minor impacts from what he referred to as a “wind event” for April 2 through April 5.

Blackwood noted that the wind event caused more personal property damage than the flooding that hit the state the following week, with floodwaters inflicting more damage on infrastructure.

According to Blackwood, state officials and federal partners will look at properties categorized as “destroyed” or majorly impacted by the wind event to determine whether federal officials agree with those assessments with an eye toward a presidential disaster declaration later that would unlock individual assistance.

The Federal Emergency Management Agency’s Individual Assistance program offers benefits to survivors that can include home repair and replacement for for primary residences, as well as financial support for uninsured or under insured personal property losses.

Blackwood noted that FEMA Individual Assistance was approved five months after August 2023 storms caused flooding and landslides for residents of Boone, Calhoun, Clay, Harrison and Kanawha counties following a presidential disaster declaration.

FEMA distributed just over $2.25 million to individual homeowners according to Blackwood, noting that a declaration allowing Public Assistance support came a little over a month later.

Blackwood reported West Virginia was awarded $10 million to support hazard mitigation, but he cautioned that the funding will only be available to residential property owners with current FEMA National Flood Insurance Program policies. According to Blackwood, as of last year in West Virginia, only 12 percent of residential properties in Special Flood Hazard Areas had such a policy.

The Joint Committee on Insurance and PEIA met this afternoon.

The Committee heard a presentation on The Health Plan as a PEIA coverage option. It is a nonprofit option located in Wheeling. Currently, the Health Plan is one of three managed care partners for Medicaid. The Health Plan has been a partner with the state for over 30 years and provides insurance for 14,300 PEIA members. It has members in the Northern Panhandle, Kanawha County, and Eastern Ohio. The Health Plan is open to all 55 counties, but is most recognized in the Northern Panhandle area. If all PEIA members were on the Health Plan, it would save the state $122 million, but the expense could fall to the employees as coinsurance. The Health Plan works with the community to give back.

The Committee on Health met this evening.

The Committee first year an update on childcare in the state. Child care in WV has many partners; it is not just Human Services. The Department of Human Services and the Bureau for Family Assistance are responsible for the childcare development block grant. This grant provides funding for referrals, licensing, quality improvement support, and childcare subsidies. The block grant was created in 1990. The six childcare resource and referral regions were created in 1998. In 2014, the Child Care and Development Block Grant (CCDBG) was reauthorized, and improvements were made to the health and safety requirements. The grant moved from a 6-month to a 12-month eligibility.

In Grant Year 2023, WV served 25,115 children and received $8,812,194 in state general revenue and $68,542,476 from the CCDBG. After the pandemic, payment became enrollment-based. Supplemental rates were provided based on 85 percent SMI. The TANF program has helped maintain payment based on enrollment through August 2024.

The 2024 rule change to the Student Success Completion Grant (SSCG) mandates payment by enrollment, which the state is already doing. It prohibits family copayments above 7 percent of family income, WV is at 3 percent. The rule eliminates copay for more families and expands sustainable payment practices: payment by enrollment and payment in advance. The rule encourages the state to pay their established subsidy rate even if private pay rates are less. The rule ensures providers are not negatively impacted by affordable family copayments and encourages faster eligibility. The rule clarifies eligibility for additional siblings and encourages simplification of verification. Finally, the rule made more health and safety clarifications.

In Grant Year 2023, the state received $68,542,476 in federal funding. In Grant Year 2024, the state received $72,909,154 in federal funding, an increase of over $5 million. There will be an increase of $2.3 million per month for the enrollment-based payment. Other requirements of the 2024 rule could result in increased costs.

The Committee also heard a presentation on the Medicaid Budget. Members received a copy of the last 12 months of Medicaid expenditures and a discussion on waivers.

The Committee heard more about IDD Waiver Services in the State from the provider Stonebrook.

Mark Muchow, Deputy Secretary of the Department of Revenue, gave members of the Joint Standing Committee on Finance an overview of West Virginia’s current financial standing Monday morning during April interim meetings in the House Chamber.

Muchow started with the General Revenue Fund, calling March a “very good month.” He informed members that the state collected $487.4 million last month, nearly $95 million above the estimate.

According to Muchow, the state has collected $4.068 billion in general revenue thus far year-to-date, which is $522.9 million above the projected estimate of $3.054 billion. However, despite being more than half-a-billion-dollars above estimate, he informed members that general revenue is down 11.8 percent compared to last year.

He noted that the revenue figures for this year incorporate the 21.25 percent reduction in personal income tax. The tax cut combined with severance tax collections declining to normal levels this year have led to the nearly 12 percent decrease in revenue according to Muchow.

He informed the committee that the state collected $147.2 million in sales tax in March, bringing year-to-date sales tax collections to $1.315 billion. Personal income tax collected in March totaled $198.3 million, bringing the year-to-date total to $$1.635 billion. March’s severance tax collections totaled $48.2 million, bringing the year-to-date number to $247.5 million.

Muchow  focused on the year-over year comparison between this year and last year regarding the general road fund, explaining that revenue estimates have been updated on two different occasions this year.

He informed the committee that in March overall collections, including federal reimbursement, came in at $129.1 million. He explained that the estimate was $171 million,  so it’s technically $42 million below estimate, but that is only because of a huge revision upward by the Department of Transportation’s estimate of federal funds received.

Muchow stated that federal funds received by the state in March totaled only $45.5 million, which is down considerably from the $62.2 million received last year. However, year-to-date, the West Virginia DOT has received nearly $577 million, representing an increase of 19.4 percent over last year.

“We’re still on pace for a record year for federal reimbursement,” Muchow said.

Finally, Muchow told members that motor fuel tax collections totaled $28.8 million in March while registration fees totaled $11.9 million, and motor vehicle sales taxes came in at $23.6 million.

The Legislative Oversight Commission on Education Accountability met this afternoon.

The Commission first heard a report on the progress of assessors in each county. Assessors are assessing properties at the constitutionally required 60 percent of market value level and the effects of increasing the limit on the increase in total property tax revenues to 2 percent.

The following amendments to policies were presented during the meeting:

1.      WVBE Policy 2322 provides an accountability system for all WV public schools and counties to set expectations for outcome-focused and innovation preparation of students for college and careers. The policy requires county BoE members to receive training in WV public schools. The amendment to the policy clarifies language to identify the schools that need support. 

2. The WVBE Policy 7212 amendment makes changes to WV students who are enrolled or seeking to enroll in schools outside of their attendance zone or county school district. 

3.      WVBE Policy 2444.4 establishes protocols for the WV GED and the WVDE-approved High School Equivalency test, Option Pathway, and the Mountaineer Challenge Academy Graduation. The amendment adds Mountaineer Challenge Academy, Mountaineer Challenge Job, and CIRL. The amendment clarifies the procedures for acquiring a high school equivalency diploma, the implementation of an Option Pathway in high school, MCA, and MCJP, and the use of the high school equivalency assessment for credit recovery. 

4.      WVBE Policy 4373 sets the requirements for developing safe and supportive schools to provide optimal learning conditions. The amendment brings the behaviors back into the policy and assigns them a default level. 

5.      WVBE Policy 2520.4 revises the West Virginia College- and Career-Readiness Standards for Social Studies. The amendment clarifies content and aligns with the new Personal Finance course. 

6.      WVBE Policy 2520.15 defines the standards for WV Pre-K programs. The amendment aligns more with recent kindergarten standards and federal Head Start child outcomes. 

7.      WVBE Policy 8300 amendment creates the Safe Schools Fund. 

The policies are open for comments on the BoE website. 

The Commission also heard updates on the middle-of-the-year benchmark and screener results, reports on college-going rates, and the Free Application for Federal Student Aid (FAFSA) changes. The Commission also received a report on international education and student trends.