H. B. 4172

         (By Delegates Staggers, Perry, Pino,

         R. Phillips, Ferro, Moore, Tomblin,

         Andes, L. Phillips, Eldridge and Marcum)

         [Introduced January 14, 2014; referred to the

         Committee on the Judiciary then Finance.]

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-13A-3f, relating to reallocating and dedicating the coal severance tax revenues annually to the coal-producing counties of origin and their respective municipalities; establishing state and local coal county reallocated severance tax funds and providing for distribution of the moneys to the county commissions and governing bodies of the municipalities by the State Treasurer; establishing amounts each coal-producing county and its respective municipalities are to receive; requiring the creation of local funds into which moneys are to be deposited; requiring moneys be expended solely for renovation and improvement projects; providing definitions; providing restrictions on the expenditure of moneys; providing duties of State Tax Commissioner; requiring report of expenditures to Joint Committee on Government and Finance; providing audits of distributed funds when authorized by the Joint Committee on Government and Finance; providing an effective date; and authorizing legislative and emergency rules.

Be it enacted by the Legislature of West Virginia:

    That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §11-13A-3f, to read as follows:

ARTICLE 13A. SEVERANCE AND BUSINESS PRIVILEGE TAX ACT.

§11-13A-3f. Reallocation and dedication of the coal severance tax for benefit of coal producing counties and their municipalities; permissible uses of distributed revenues; duties of State Treasurer and State Tax Commissioner; audits; rulemaking.

    (a) The purpose of this section is to provide for the reallocation and dedication of the tax attributable to the severance of coal imposed by section three-a of this article for the use and benefit of the various counties and their respective municipalities in which the coal was located at the time it was severed from the ground.

    (b) Effective July 1, 2015, all of the tax attributable to the severance of coal imposed by section three-a of this article shall be transferred to the county commissions and the governing bodies of municipalities within the coal producing counties on a population pro rata basis as provided in this section.

    (c) The amounts of the tax dedicated in subsection (b) of this section shall be deposited, from time to time, into a special fund known as the Coal County and Municipality Reallocated Severance Tax Fund, which is hereby established in the State Treasury, as the proceeds are received by the State Tax Commissioner.

    (d) The net proceeds of the deposits made into the Coal County and Municipality Reallocated Severance Tax Fund shall be allocated among and distributed quarterly to the coal producing counties and their respective municipalities by the State Treasurer in the manner specified in this section. On or before each distribution date, the State Treasurer shall determine the total amount of moneys that will be available for distribution to the respective counties and municipalities entitled to the moneys on that distribution date. The amount to which a coal producing county or municipality is entitled from the Coal County and Municipality Reallocated Severance Tax Fund shall be determined in accordance with subsection (e) of this section. After determining the amount each coal producing county and municipality is entitled to receive from the fund, a warrant of the State Auditor for the sum due to each coal producing county and municipality shall be issued and a check drawn thereon making payment of that amount to the coal producing county and municipality by hand, mail commercial delivery or electronic transmission.

    (e) The amount to which a coal producing county or municipality is entitled from the Coal County and Municipality Reallocated Severance Tax Fund shall be determined by:

    (1) Dividing the total amount of moneys in the fund then available for distribution by the total tonnage of coal mined in this state during the preceding quarter; and

    (2) Multiplying the quotient thus obtained of each by the tonnage of coal mined in the county or municipality during the preceding quarter.

    (f) (1) No distribution made to a county or municipality under this section may be deposited into the county’s or municipality’s General Revenue Fund. The county commission of each county and the governing body of each municipality receiving a distribution under this section shall establish a special account to be known as the “(Name of County or Municipality) Coal County (or Municipality) Reallocated Severance Tax Fund” into which all distributions made to that county or municipality under this section shall be deposited.

    (2) Moneys in the county’s and municipality’s coal county reallocated severance tax fund shall be expended by the county commission and governing body of the municipality solely for renovation or improvement projects.

    (3) A county commission or governing body of a municipality may not expend any of the funds available in its coal county and municipality reallocated severance tax fund for personal services, for the costs of issuing bonds or for the payment of bond debt service. Total funds available shall be directed to project development which may include the costs of architectural and engineering plans, site assessments, site remediation, specifications and surveys and other expenses necessary or incidental to determining the feasibility or practicability of a renovation or improvement project.

    (g) On or before December 31, 2016, and December 1 of each year thereafter, the county commission of each county and the governing body of each municipality receiving a distribution of funds under this section shall deliver to the Joint Committee on Government and Finance a written report setting forth the specific projects for which those funds were expended during the preceding fiscal year, a detailed account of those expenditures and a showing that the expenditures were made for the purposes required by this section.

    (h) An audit of funds distributed under this section may be authorized at any time by the Joint Committee on Government and Finance to be conducted by the Legislative Auditor at no cost to the county commission audited.

    (i) The State Tax Commissioner shall propose for legislative approval legislative rules pursuant to article three, chapter twenty-nine-a of this code for the administration of this section, and is authorized to promulgate emergency rules for those purposes pursuant to that article.

    NOTE: The purpose of this bill is to reallocate and dedicate the coal severance tax revenues annually to the coal producing counties of origin and their respective municipalities. The bill establishes state and local coal county reallocated severance tax funds and provides for distribution of the moneys to the county commissions and governing bodies of the municipalities by the State Treasurer. The bill establishes a procedure for determining the amounts each coal producing county and their respective municipalities are to receive and requires the creation of local funds into which moneys are to be deposited. The bill requires the funds to be used solely for renovation and improvement projects. The bill also provides restrictions on fund expenditures. The bill sets forth duties of State Tax Commissioner. The bill requires a report of expenditures to Joint Committee on Government and Finance. The bill also provides for audits of distributed funds when authorized by the Joint Committee on Government and Finance. The bill establishes a July 1, 2015 effective date. The bill authorizes legislative and emergency rules.

    This section is new; therefore, it has been completely underscored.