ENGROSSED

COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 145

(By Senators Wagner, Miller and Yoder)

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[Originating in the Committee on the Judiciary;

reported January 26, 1995.]

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A BILL to amend and reenact sections four and five, article twelve,
chapter seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, all relating to excepting certain board members of local development authorities from being in violation of the state ethics law solely by serving on an authority board.
Be it enacted by the Legislature of West Virginia:
That sections four and five, article twelve, chapter seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted, all to read as follows:
ARTICLE 12. COUNTY AND MUNICIPAL DEVELOPMENT AUTHORITIES.
§7-12-4. Qualifications of members.
 Any person employed by, owning an interest in, or otherwise associated with a public utility company as defined in section two article one, chapter twenty-four of this code, or bank as defined in section two, article one, chapter thirty-one-a of this code may serve as a board member and shall not be disqualified from serving as a board member because of conflict of interest as defined in section fifteen, article ten, chapter sixty-one of this code, and shall not be subject to prosecution under the provisions of said section, when the violation is created solely as a result of his or her relationship with the bank or public utility. This member must recuse himself or herself from board participation regarding the conflicting issue as provided for in section five of this article.
§7-12-5. Compensation of members; expenses; recusal of member from voting where conflict of interest involved.

(a) No member of the authority shall receive any compensation, whether in formal salary, per diem allowance or otherwise, in connection with his or her services as such member. Each member shall, however, be entitled to reimbursement by the authority for any necessary expenditures in connection with the performance of his or her general duties as such member.
(b) Whenever a person associated with a public utility or bank as set out in section four of this article has a conflict of interest between the board and that public utility or bank, then he or she must recuse himself or herself from any vote, discussion or other activity associated with the board or its members that creates the conflict of interest.