ENGROSSED

COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 435

(By Senators Snyder, Miller, Kessler (Mr. President), Jenkins, Yost, Stollings, Plymale, McCabe, Fitzsimmons, Palumbo and Beach)

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[Originating in the Committee on Government Organization;

reported March 6, 2013.]                              

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A BILL to amend and reenact §8-1-5a of the Code of West Virginia, 1931, as amended, relating to continuing the Municipal Home Rule Pilot Program; legislative findings; authorizing Class I, II, III and IV municipalities to participate in the program; clarifying the voting privileges of members of the Municipal Home Rule Board; clarifying the powers and duties of the board; written plan requirements for municipalities; ordinance requirements for municipalities; powers and duties of the participating municipalities; prohibiting certain acts by participating municipalities; amending the written plan; reporting requirements; termination date of the pilot program; and the effect of ordinances passed by the municipalities participating in the pilot program.
Be it enacted by the Legislature of West Virginia:
    That §8-1-5a of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 1. PURPOSE AND SHORT TITLE; DEFINITIONS; GENERAL PROVISIONS; CONSTRUCTION.
§8-1-5a. Municipal Home Rule Pilot Program
.
    (a) Legislative findings. -- The Legislature finds and declares that:
    (1) The initial Municipal Home Rule Pilot Program brought positive results, including novel municipal ideas that became municipal ordinances which later resulted in new statewide statutes;
    (2) The initial Municipal Home Rule Pilot Program also brought some negative results, including novel municipal ideas that resulted in court challenges against some of the participating municipalities;
    (3) The Municipal Home Rule Board was an essential part of the initial Municipal Home Rule Pilot Program but it lacked some needed powers and duties;
    (4) Municipalities still face challenges delivering services required by federal and state law, or demanded by their constituents;
    (5) Municipalities are sometimes restrained by state statutes, policies and rules that challenge their ability to carry out their duties and responsibilities in a cost-effective, efficient and timely manner;
    (6) Continuing the Municipal Home Rule Pilot Program is in the public interest; and
    (7) Increasing the powers and duties of the Municipal Home Rule Board will enhance the Municipal Home Rule Pilot Program.
    (b) Continuance of pilot program. -- The Municipal Home Rule Pilot Program is continued until July 1, 2019. The ordinances enacted by the four participating municipalities pursuant to the initial Municipal Home Rule Pilot Program are hereby authorized and may remain in effect until the ordinances are repealed, but are null and void if amended and such amendment is not approved by the Municipal Home Rule Board: Provided, That any ordinance enacting a municipal occupation tax is hereby null and void.
    (c) Authorizing participation. -- Commencing July 1, 2013, fourteen Class I, Class II, Class III and/or Class IV municipalities, that are current in payment of all state fees, may participate in the Municipal Home Rule Pilot Program pursuant to the provisions of this section: Provided, That the four municipalities
participating in the pilot program on July 1, 2012, are hereby authorized to continue in the pilot program and may amend current written plans and/or submit new written plans in accordance with the provisions of this section: Provided, however, That if any of the four municipalities participating in the pilot program on July 1, 2012, do not want to participate in the pilot program, then the municipalit y must submit a written letter to the board indicating the municipalit y 's desire not to participate.
    (d) Municipal Home Rule Board. -- The Municipal Home Rule Board is hereby continued. The board members serving on the board on July 1, 2012, may continue to serve, except that the Chair of the Senate Committee on Government Organization and the Chair of the House Committee on Government Organization shall be ex officio nonvoting members. Effective July 1, 2013, the Municipal Home Rule Board shall consist of the following five voting members:
    (1) The Governor, or a designee, who shall serve as chair;
    (2) The Executive Director of the West Virginia Development Office or a designee;
    (3) One member representing the Business and Industry Council, appointed by the Governor with the advice and consent of the Senate;
    (4) One member representing the largest labor organization in the state, appointed by the Governor with the advice and consent of the Senate; and
    (5) One member representing the West Virginia Chapter of American Institute of Certified Planners, appointed by the Governor with the advice and consent of the Senate.
    (e) Board's powers and duties. -- The Municipal Home Rule Board has the following powers and duties:
    (1) Review, evaluate, make recommendations and approve or reject, by a majority vote of the board, each aspect of the written plan submitted by a municipality;
    (2) By a majority vote of the board, select, based on the municipality's written plan, up to ten new Class I, Class II, Class III and/or Class IV municipalities to participate in the Municipal Home Rule Pilot Program;
    (3) Review, evaluate, make recommendations and approve or reject, by a majority vote of the board, the amendments to the written plans submitted by municipalities;
    (4) Approve or reject, by a majority vote of the board, each ordinance submitted by a participating municipality pursuant to its written plan or its amendments to the written plan;
    (5) Consult with any agency affected by the written plans or the amendments to the written plans; and
    (6) Perform any other powers or duties necessary to effectuate the provisions of this section.
    (f) Written plan. -- On or before June 1, 2014, a Class I, Class II, Class III or Class IV municipality desiring to participate or continue to participate in the Municipal Home Rule Pilot Program shall submit a written plan to the board stating in detail the following:
    (1) The specific laws, acts, resolutions, policies, rules or regulations which prevent the municipality from carrying out its duties in the most cost-efficient, effective and timely manner;
    (2) The problems created by the laws, acts, resolutions, policies, rules or regulations;
    (3) The proposed solutions to the problems, including all proposed changes to ordinances, acts, resolutions, rules and regulations: Provided, That the specific municipal ordinance instituting the solution does not have to be included in the written plan; and
    (4) A written opinion, by an attorney licensed to practice in West Virginia, stating that the proposed written plan is constitutional and does not violate the provisions of this section.
    (g) Public hearing on written plan. -- Prior to submitting its written plan to the board, the municipality shall:
    (1) Hold a public hearing on the written plan;
    (2) Provide notice at least thirty days prior to the public hearing by a Class II legal advertisement;
    (3) Make a copy of the written plan available for public inspection at least thirty days prior to the public hearing; and
    (4) After the public hearing, adopt an ordinance authorizing the municipality to submit a written plan to the Municipal Home Rule Board after the proposed ordinance has been read two times.
    (h) Selection of municipalities. -- On or after June 1, 2014, by a majority vote, the Municipal Home Rule Board may select from the municipalities that submitted written plans and were approved by the board by majority vote up to ten new Class I, Class II, Class III and/or Class IV municipalities to participate in the Municipal Home Rule Pilot Program.
    (i) Ordinance, act, resolution, rule or regulation. -- After being selected to participate in the Municipal Home Rule Pilot Program and prior to enacting an ordinance, act, resolution, rule or regulation based on the written plan, the municipality shall:
    (1) Hold a public hearing on the proposed ordinance, act, resolution, rule or regulation;
    (2) Provide notice at least thirty days prior to the public hearing by a Class II legal advertisement;
    (3) Make a copy of the proposed ordinance, act, resolution, rule or regulation available for public inspection at least thirty days prior to the public hearing;
    (4) After the public hearing, submit the comments, either in audio or written form, to the Municipal Home Rule Board;
    (5) Obtain approval, from the Municipal Home Rule Board by a majority vote, for the proposed ordinance, act, resolution, rule or regulation; and
    (6) After obtaining approval from the Municipal Home Rule Board, read the proposed ordinance, act, resolution, rule or regulation at least two times.
    (j) Powers and duties of municipalities. -- The municipalities participating in the Municipal Home Rule Pilot Program have the authority to pass an ordinance, act, resolution, rule or regulation, under the provisions of this section, that is not contrary to:
    (1) The provisions of this section; and
    (2) The municipality's written plan.
    (k) Prohibited acts. -- The municipalities participating in the Municipal Home Rule Pilot Program do not have the authority to pass an ordinance, act, resolution, rule or regulation, under the provisions of this section, pertaining to:
    (1) The Constitutions of the United States or West Virginia;
    (2) Federal law or crimes and punishment;
    (3) Chapters sixty-a, sixty-one and sixty-two of this code or state crimes and punishment;
    (4) Pensions or retirement plans;
    (5) Annexation;
    (6) Taxation:
Provided, That a participating municipality may enact a municipal sales tax up to one percent if it reduces or eliminates its municipal business and occupation tax;
    (7) Tax increment financing;
    (8) Environmental laws;
    (9) Extraction of natural resources; and
    (10) Persons or property outside the boundaries of the municipality:
Provided, That this prohibition under the Municipal Home Rule Pilot Program does not affect a municipality's powers outside its boundary lines under this chapter, this code or court decisions.
    (l) Amendments to written plans. -- A municipality selected to participate in the Municipal Home Rule Pilot Program may amend its written plan at any time.
    (m) Reporting requirements. -- Commencing December 1, 2015, and each year thereafter, each participating municipality shall give a progress report to the Municipal Home Rule Board, and commencing January 1, 2016, and each year thereafter, the Municipal Home Rule Board shall give a summary report of all the participating municipalities to the Joint Committee on Government and Finance.
    (n) Termination of the pilot program. -- The Municipal Home Rule Pilot Program terminates on July 1, 2019. No ordinance, act, resolution, rule or regulation may be enacted by a participating municipality after July 1, 2019, pursuant to the provisions of this section. An ordinance, act, resolution, rule or regulation enacted by a participating municipality under the provisions of this section during the period of the Municipal Home Rule Pilot Program shall continue in full force and effect until repealed, but is null and void if it is amended and such amendment is not approved by the Municipal Home Rule Board.