COMMITTEE SUBSTITUTE

FOR


Senate Bill No. 515

(By Senators Harrison, Sprouse Rowe, McCabe, Guills, Hunter, Unger, Smith and Facemyer)

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[Originating in the Committee on Government Organization; reported February 24, 2003.]

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A BILL to amend chapter four of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article thirteen, relating to the state payment for state mandates act; legislative findings; definitions; requiring funding of state mandates; establishing a local government mandates appeal board; and mandate review requirements.

Be it enacted by the Legislature of West Virginia:
That chapter four of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article thirteen, to read as follows:
ARTICLE 13. STATE PAYMENT FOR STATE MANDATES ACT.

§4-13-1. Legislative findings.

The Legislature finds that the actions of state government directly or indirectly prescribe the manner, standards, level and conditions of public service to be provided by the state's political subdivisions and can have major fiscal consequences for the political subdivisions
. Prior to imposing new or expanded service requirements with financial implications on its political subdivisions , the state should be aware of and confront the issues of where the burden of paying for those requirements will fall and how will the requirements be funded.
Therefore, the Legislature declares that full funding be provided for any net additional costs to political subdivisions
that are incurred in complying with the required performance of a new or expanded program or service under the provisions of any state law, rule or order. If funding is not provided by the state, the state law, rule or order shall be inoperative in the political subdivision until a state appropriation necessary to pay in full any net additional cost of compliance with the requirement is made and sufficient funds are provided to each affected political subdivision .
The Legislature further finds that
political subdivisions need a way to ensure that this article is adhered to by the state. Therefore, the Legislature further declares that a local government mandates appeal board is needed to ensure the provisions of this article are followed.
§4-13-2. Definitions.

As used in this article:
(a) "Expanded program or service" means a program or service, the scope or level of which would be increased, extended or enhanced by a political subdivision's
compliance with the provisions of a state law, rule or order.
(b) "Net additional cost" means the cost incurred or anticipated to be incurred within a one-year period by a political subdivision
in performing or administering a new or expanded program or service required by a state law, rule or order, after subtracting therefrom any revenues received or receivable by the political subdivision on account of the program or service, including, but not limited to:
(1) Fees charged to the recipients of the program or service;
(2) State or federal aid paid specifically or categorically in connection with the program or service; and
(3) Any offsetting savings resulting from the reduction or elimination of any other program or service directly attributable to the performance or administration of the required program or service.

(c) "New program or service" means a program or service different in kind or purpose from those in existence at the time of the enactment of a law, promulgation of a rule, or order requiring the performance or administration of the program by a political subdivision
.
(d) "Political subdivision" means any county commission; municipality; county board of education; any instrumentality established by a county or municipality; any separate corporation or instrumentality established by one or more counties or municipalities, as permitted by law; or any public body charged by law with the performance of a government function and whose jurisdiction is coextensive with one or more counties or municipalities.
(e) "Program or service" means a specific and identifiable activity of a political subdivision which is available to the general public or which is conducted, administered or provided for or on behalf of the citizens of a political subdivisions
.
§4-13-3. Requirement for funding of state mandates; minimum fiscal impact amounts established; exceptions.
(a) Notwithstanding any law, rule or order to the contrary, a law, rule or order passed, promulgated or issued on or after the effective date of this article, which has the effect of requiring a
political subdivision to perform or administer a new or expanded program or service having a net additional cost in excess of one thousand dollars for any political subdivision or one hundred thousand dollars for all affected political subdivision s, shall be inoperative in the political subdivision until a state appropriation necessary to pay in full any net additional cost of compliance with the requirement is made and sufficient funds are provided to each affected political subdivision .
(b) The provisions of subsection (a) of this section do not apply to any new or expanded program or service that:
(1) Is required for the public's safety or arises from a court order or judgment;
(2) Is permissive rather than mandatory
;
(3) Is required by private, special or local laws; or
(4) Is required by or arises from an executive order of the governor exercising emergency powers.
§4-13-4. Local government mandates appeal board.

(a) The local government mandates appeal board is hereby established
. The board shall hear and rule upon appeals brought by political subdivision s, alleging that a state law, rule or order, which has the effect of requiring the performance or administration of a new or expanded program or service was:
(1) Enacted or promulgated in a manner contrary to the provisions of this article; or
(2) Was based on a demonstrably inaccurate cost estimate resulting in the failure by the state to provide sufficient funding to pay the net additional cost of compliance with the law, rule or order.
(b) The local government mandates appeal board
shall have the following three members:
(1) The legislative auditor, who shall be the chair;
(2) One
political subdivision representative; and
(3) One citizen member.
(c) When needed, the governor shall appoint, by and with the consent of the senate, the
political subdivision representative and the citizen member. The term of office will be determined by the governor at the time of the appointment.
(c) The board shall only meet as needed. The members shall receive compensation for attending official meetings or engaging in official duties not to exceed the amount paid to members of the Legislature for their interim duties as recommended by the citizens legislative compensation commission and authorized by law. The members shall
be reimbursed for actual and necessary expenses incurred for each day or portion thereof engaged in the discharge of official duties in a manner consistent with guidelines of the travel management office of the department of administration. The compensation and expenses of the members shall be paid by the legislative joint committee on government and finance.
(d) The board may adopt rules as are necessary to carry out its functions and responsibilities under this article.



NOTE: The purpose of this bill is to create the State Payment for State Mandates Act. It requires the state to appropriate money for unfunded mandates to political subdivisions. Establishes a local government mandates appeal board to require compliance with this article.

This article is new; therefore, strike-throughs and underscoring have been omitted.