April 10, 2021 - The W.Va. 2021 Annual Legislative Session officially concludes at midnight (April 10) and with the exception of HB 2493 which purported to update and revise the manner reserve coal property taxes are calculated, the top coal priority issues and a host of positive business issues have either been passed by both the Senate and House or are advancing to final, passage stage.

Yesterday, the House of Delegates defeated a Senate amendment to HB 3300 http://www.wvlegislature.gov/legisdocs/chamber/2021/RS/floor_amends/HB3300%20SFA%20TARR%204-7%20_3%20adopted.htmon a 100 – 0 vote http://www.wvlegislature.gov/legisdocs/2021/RS/votes/house/00563.pdfwhich which encompassed the Governor’s personal income tax elimination plan and revised ‘tiered coal severance tax” schedule, that the Senate passed on Thursday https://governor.wv.gov/Documents/Justice-4-All-Income-Tax-Plan-040521.pdf.  This action further divides the Governor/Senate and House over personal income tax elimination and all but guarantees the matter will be deferred to a special session of the Legislature later this year.  HB 3300, as originally passed the House, would have eliminated the personal income tax over a twelve (12) year period and included myriad cuts to state government and did not include increased taxes on natural resources.

Other Legislative actions included SB 542 http://www.wvlegislature.gov/Bill_Status/bills_history.cfm?INPUT=542&year=2021&sessiontype=RSaddressing coal-fired plants being amended and passing the House, SB 718 http://www.wvlegislature.gov/Bill_Text_HTML/2021_SESSIONS/RS/bills/SB718%20ORG.pdf revitalizing the “Investment Tax Rebate Program” and SB 677 http://www.wvlegislature.gov/Bill_Text_HTML/2021_SESSIONS/RS/bills/SB677%20SUB1.pdf updating and revising various mine safety laws were advanced to third reading and passage stage by the House.

An amendment was added to SB 542 http://www.wvlegislature.gov/legisdocs/chamber/2021/RS/floor_amends/SB542%20HFA%20EVANS%204-8%20adopted.htmrequiring the Public Service Commission to head up an advisory panel of workers and economic development experts to consider ways to create jobs and development of former coalfield towns. The legislation will be returned to the Senate tomorrow and will be asked to concur with the House amendment. If ejected, the House will be asked to remove its amendment or the legislation will be assigned to a Conference Committee to work out the disagreement between Houses.

Below is a synopsis of the major coal and general business legislation. 

SB 542 -- Encourages coal-fired utilities to operate through their design life cycle, requires a 30-day fuel supply to be kept on site and additionally requires the Public Service Commission to consider the overall economic impact on communities and jobs when they deliberate on rate recovery and other proceedings involving coal-fired plants. http://www.wvlegislature.gov/Bill_Text_HTML/2021_SESSIONS/RS/bills/SB542%20SUB2.pdf

SB 718 -- Restores and amends the Investment Tax Rebate Program which passed in 2019 so met coal operators can qualify for a rebate on paid severance taxes based on “qualifying investments” in existing mines or by developing new mining operations. http://www.wvlegislature.gov/Bill_Text_HTML/2021_SESSIONS/RS/bills/SB718%20ORG.pdf

SB 677 -- This legislation was presented by the WV Board of Coal Mine Health and Safety and Office of Miners’ Health, Safety & Training as part of the ongoing reform of the State’s mining laws.  SB 677 addresses the following sections of West Virginia’s mining law: §22A-2-33, §22A-2-40, §22A-2-46, §22A-2-70, and §22A-9-1 relating to miners’ safety, health and training standards regarding capacitors used for power correction, electrical work performed on low, medium, or high voltage circuits or equipment, and the use of gas detecting devices; making technical corrections; authorizing the director to terminate tenured inspectors; and providing for a hearing process related to an inspector’s termination. http://www.wvlegislature.gov/Bill_Text_HTML/2021_SESSIONS/RS/bills/SB677%20SUB1.pdf

HB 2493 revising the methods for evaluating and appraising property taxes on coal was passed by the House but was met with headwinds this week and stalled in the Senate following the release of $12 million fiscal note prepared by the State Tax Department. HB 2493 embodies the work of an interim Legislative Study Committee and is designed to generally update and improve the state’s program for appraising and assessing property taxes on unmined coal reserves.

A link to HB 2493 is provided below. 

http://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=HB2493%20INTR.htm&yr=2021&sesstype=RS&i=2493

HB 3084. Another WVCA legislative priority addressing “Environmental Social Governance” “ESG” did not make it out of Committee but was rolled into House Concurrent Resolution 90. http://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=hcr90%20intr.htm&yr=2021&sesstype=RS&i=90&houseorig=h&billtype=cr  To study the commercial discrimination of producers of coal, gas, oil, carbon-based energy and other products in West Virginia. The legislation was designed to deter financial institutions and insurance firms from discriminating against West Virginia companies that engage in withholding financing or penalizing, through higher costs or surcharges based on a company’s fossil energy holdings or assets. HB 3084 prohibits investment of West Virginia Public Employees’ Retirement funds into “restricted businesses” which divest from natural gas, oil, coal, petrochemicals, forestry products, or agricultural commodities. A copy of HB 3084 is provided below.  

http://www.wvlegislature.gov/Bill_Status/Bills_history.cfm?input=3084&year=2021&sessiontype=RS&btype=bill

SB 216/HB 2394 authorizes the Department of Commerce to promulgate administrative rules relating to the Office of Miners’ Health, Safety & Training and agency amendments to rules governing “Comprehensive Mine Safety Programs”. Legislation is necessary to codify “administrative “regulatory reform actions of the Board of Coal Mine Health and Safety. (Legislation is completed and signed into law) https://www.wvlegislature.gov/Bill_Text_HTML/2021_SESSIONS/RS/bills/SB216%20SUB1%20ENR.pdf

HB 2382 - Authorizing the Department of Environmental Protection to promulgate a (bundled) legislative rule comprised of multiple DEP Rules relating to various industrial application (Legislation has been completed). There were two rules we followed closely including:

Water Quality Standards (47 CSR 02) -- authorizing WVDEP to revise 24 standards related to human health/drinking water.  WVCA participated in a working group to develop new drinking water criteria for the state and supports the revisions contained in this legislation. 

Greenhouse Gas Emissions (45 CSR 44 ) -- authorizes WVDEP to implement state rules to accommodate EPA’s Affordable Clean Energy Rule and - DEP rule relating to control of greenhouse gas emissions from existing coal-fired electric utility generating units and compliance applications filed by state utilities.  https://www.wvlegislature.gov/Bill_Text_HTML/2021_SESSIONS/RS/bills/HB2382%20SUB.pdf

Below is an overview and status of important business legislation supported by the WV Business and Industry Council and the WV Chamber of Commerce.

SB 277, Creating COVID-19 Jobs Protection Act (Legislation Completed and signed into Law).  SB 277 is the Governor’s bill for COVID-19 liability reform. This legislation provides a liability shield for employers in West Virginia for claims that may arise due to the COVID-19 pandemic.  https://www.wvlegislature.gov/Bill_Text_HTML/2021_SESSIONS/RS/bills/SB277%20SUB1%20ENR.pdf  

SB 275, Intermediate Appellate Court – (Legislation Completed and signed into Law).  SB 275 creates an intermediate appellate court in West Virginia. https://www.wvlegislature.gov/Bill_Status/bills_history.cfm?INPUT=275&year=2021&sessiontype=RS

HJR 3 “Property Tax Modernization Amendment” previously passed by the House, HJR 3 is a Constitutional Amendment, that if approved by the voters, would give the Legislature the authority to set or repeal personal property taxes including property taxes on equipment and inventory. HJR 1 is on third reading in the Senate. https://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=HJR3%20SUB%20ENG.htm&yr=2021&sesstype=RS&i=3&houseorig=h&billtype=jr

SB 11, Declaring work stoppage or strike by public employees to be unlawful (Legislation Completed). SB 11 clarifies that strikes or work stoppages by public employees in West Virginia are illegal.  SB 11 passed the Senate and House and went into effect without the Governor’s signature. https://www.wvlegislature.gov/Bill_Text_HTML/2021_SESSIONS/RS/bills/SB11%20SUB1%20ENR.pdf

HB 2009, Paycheck Protection – HB 2009 (Legislation Completed and signed into Law) prohibits employers from withholding or diverting any wages or salaries for use as contributions to candidates, political committees or funds for any other political activities without the annual authorization by the employee. https://www.wvlegislature.gov/Bill_Text_HTML/2021_SESSIONS/RS/bills/HB2009%20SUB%20ENR.pdf

HB 2019, Elevating Economic Development and Tourism Departments (Approved by Governor).  HB 2019 is a Governor’s bill to create two new cabinet level positions in state government by elevating Economic Development and Tourism. The bill is designed to give the Economic Development Director, currently held by Mitch Carmichael, and the Tourism Commissioner, currently Chelsea Ruby, the high status of a cabinet secretary when marketing West Virginia to the world. https://www.wvlegislature.gov/Bill_Text_HTML/2021_SESSIONS/RS/bills/HB2019%20INTR.pdf

HB 2012, Public Charter Schools (Approved by Governor).  HB 2012 increases the number of public charter schools that may be created every three years from 3 to 10 and establishes a new West Virginia Professional Charter School Board that can act as an additional authorizing body.   https://www.wvlegislature.gov/Bill_Text_HTML/2021_SESSIONS/RS/bills/HB2012%20SUB.pdf