ENGROSSED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 435
(By Senators Snyder, Miller, Kessler (Mr. President), Jenkins,
 Yost, Stollings, Plymale, McCabe, Fitzsimmons, Palumbo and Beach)
____________
[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.