Senate Bill No. 697
(By Senators Caruth, Foster and Guills)
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[Introduced February 19, 2007; referred to the Committee on
Interstate Cooperation; and then to the Committee on the
Judiciary.]
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A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §7-24-1, §7-24-2,
§7-24-3 and §7-24-4, all relating to the Interstate Economic
Growth-Sharing Compact; legislative purpose; definitions; and
authorizing revenue sharing agreements between county economic
opportunity development districts and other county economic
opportunity development districts or similar authorities
outside the state with respect to tax revenues and other
income generated by facilities owned by a county economic
opportunity development district.
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 article, designated §7-24-1, §7-24-2,
§7-24-3 and §7-24-4, all to read as follows:
ARTICLE 24. INTERSTATE ECONOMIC GROWTH-SHARING COMPACT.
§7-24-1.Short title.
This article may be cited as the "Interstate Economic
Growth-Sharing Compact."
§7-24-2. Legislative purpose.
(a) The economies of many localities within the region have
not kept pace with those of the rest of the state. Individual
localities often lack the financial resources to assist in the
development of economic development projects. Providing a
mechanism for localities in the region to cooperate in the
development of facilities will assist the region in overcoming this
barrier to economic growth. This will assist the areas of the
state in achieving a greater degree of economic stability.
(b) The purpose of the "Interstate Economic Growth-Sharing
Compact" is to enhance the economic base for the member localities
by developing, owning, operating one or more facilities on a
cooperative basis involving its member localities.
(c) The exercise of the powers granted by this chapter shall
be in all respects for the benefit of the inhabitants of the region
and other areas of the state, for the increase of their commerce,
and the promotion of their safety, health, welfare, convenience and
prosperity.
§7-24-3. Definitions.
As used in this article the following words have the meanings indicated:
"Authority" means the county economic opportunity development
district as provided in article twenty-two, chapter seven of this
code.
"Board" means the district board of the county economic
opportunity development district as provided in section eleven,
article twenty-two, chapter seven of this code.
"Facility" means any structure or park, including real estate
and improvement as applicable, for manufacturing, warehousing,
distribution, office, or other industrial, residential,
recreational or commercial purposes. A facility specifically
includes structures or parks that are not owned by an authority or
its member localities.
"Governing bodies" means the county commissions of counties
and the councils of municipalities which are members of an
authority.
"Member localities" means the counties, cities, and towns, or
combination thereof, which are members of an authority.
§7-24-4.
Revenue sharing agreements.
Notwithstanding any other provision of this code, the member
localities may agree to a revenue and economic growth-sharing
arrangement with respect to tax revenues and other income and
revenues generated by any facility owned by an authority or similar
authority outside this state, regardless whether inside or outside the boundaries of this state. The obligations of the parties to
any such agreement may not be construed to be debt within the
meaning of section eight, article X of the West Virginia
Constitution. Any such agreement shall be approved by a majority
vote of the governing bodies of the member localities reaching such
an agreement but does not require any other approval.
NOTE: The purpose of this bill is to create the "Interstate
Economic Growth-Sharing Compact" which allows revenue sharing
agreements between county economic opportunity development
districts and other county economic opportunity development
districts or similar authorities outside the state with respect to
tax revenues and other income generated by facilities owned by a
county economic opportunity development district.
This article is new; therefore, strike-throughs and
underscoring have been omitted.