Legislative Update 10

2016

March 15,

The 2nd session of the 82nd Legislature came to a close on Saturday the 12th. The Republican-led Legislature
continued their work on legislation that would make our state friendlier to the business community by passing
bills that attract new industry and promote growth. The two most significant pieces being the legislation to
makeWest Virginia a Right-to-Workstate (SB 1) and a billrepealing the Prevailing
Wage (HB 4005). The Legislature also continued their work on improving the legal climate in our state
and, as promised in the months leading up to the session, addressed much needed regulatory reform.

Members of the Legislature knew the most significant challenge they would face during this session would be
dealing with the states growing budget deficit for the remainder of the 2016 fiscal year and passing a budget
that addressed those problems for 2017. The two chambers passed vastly different budget bills. The Senates
bill included revenue from the tobacco tax that they passed and the Houses budget bill dipped into the states
Rainy Day Fund, cut agency budgets by an additional 4.5 percent and swept large portions of the states
reserve accounts.

On Tuesday, the Governors office announced tax estimates for 2017 were lowered by about $240 million,
which will require more significant work on the budget than previously anticipated. With this new development,
it is likely legislators will not come to an agreement on the budget before the current extended budget session
ends on Tuesday. It appears legislators will be sent home until all parties are more willing to come together to
address the dire economic problems that face West Virginia. We would anticipate the Governor will reintroduce
a tobacco tax increase and possibly other increases in the special session Call when he brings legislators
back to town. You can view the Governors press release regarding the budget by clicking here.
One important piece of legislation that did not gain much attention this session was SB 558, a bill that
maintained the solvency of the States Unemployment Compensation Fund by allowing Workforce WV to
borrow $50 million from the States Rainy Day Fund when the Unemployment Compensation Fund fell below
the $50 million dollar mark. This was important legislation as it prevented the state from having to borrow funds
from the federal government to keep the Unemployment Fund solvent. If this occurred, it would have negatively
affected the States bond ratings. Jan Vineyard worked with legislative leadership to pass this bill at the request
of Governor Tomblin. Governor Tomblin did notify the Legislature toward the end of the session that the funds
were borrowed and he hoped to pay it back within a month or two. Typically mid-April is when the Fund begins
seeing an influx of cash.
Of the 1,894 bills introduced this session, 450 passed at least one chamber of the Legislature, while 276 of
those passed both chambers and completed the legislative process.

Highway Funding

We worked incredibly hard to pass substantive bills that would increase revenues for the State Road Fund.
Unfortunately, the session failed to deliver any lucrative legislation to improve the highways and infrastructure
in our state. Originally starting out as only a bill to increase the gasoline excise tax by five cents (which later
was decreased to three cents), SB 555, quickly became an omnibus highway bill that would have raised over

$300 million in new revenue for the State Road Fund through a one percent increase in the consumer sales
tax, DMV fee increases, changes to the vehicle privilege tax, as well as other initiatives. At one point in time, a
five-cent per gallon diesel tax was included in a draft. The amended bill had very strong bipartisan support in
the Senate where it passed on a 25-9 vote. The bill quickly died in the House, without significant consideration.
While there were numerous bills introduced to address our deteriorating infrastructure, our legislators didnt
have the appetite in an election year to allow any significant tax or fee increases that would have been required
to better fund our roadways.

SJR 6, or the WV Better Roads Amendment of 2016, was a Joint Resolution introduced by Senators
Trump (R-Morgan) and Plymale (D-Wayne) in an effort to raise greatly needed revenue for roadways and
bridges. If adopted, the resolution would have allowed for a question to be placed on the General Election
ballot in November of this year. If the voters approved the measure, it would have allowed the state to sell a
total of $2 billion in bonds, $400 million per year for the next five years, to fund the highway and infrastructure
projects. This resolution passed the Senate Judiciary Committee, but never reached the Senate Finance
Committee for consideration.

HB 4009, the Letting Our Counties Act Locally Act, passed and will allow counties to submit highway and
infrastructure project plans to the Division of Highways and, upon approval, provides the counties the
opportunity to raise funding for the approved projects by allowing for a one percent consumer sales tax
increase. The increase would have to be voted upon by the citizens of the county. Once a county referendum
is passed to allow for the future funding of the projects, the Division of Highways is authorized to issue special
revenue bonds to finance the construction of the projects.

Legislation Relating to the Department of Transportation Audit

Last year the Legislature passed a bill that called for a financial and performance audit of the Department of
Transportation. A number of bills were introduced this session in response to the audits findings. Those bills
called for a special hiring process to be put in place, a statewide communications plan, a formula to allocate
funding, establish performance metrics for the Division of Highways and create a legislative oversight group
that reviews and monitors the DOTs progress. Of the five bills that were introduced, two completed the
legislative process. SB 494, the bill that creates the Legislative Oversight Commission of the
Department of Transportation, and HB 4561*, which creates a special hiring process for the Division of
Highways. We believe these bills are a good start at implementing reforms that will increase productivity,
accountability and provide for the better use of the already limited State Road Fund dollars.

Third Party Towing

An amended version of HB 4186, the Towing Bill, completed the legislative process. Significant changes
were made to the bill in the Senate Government Organization Committee after members heard concerns from
the Public Service Commission. The PSC had numerous concerns with the bill, mainly on the grounds that
what the bill calls for is already in place. The PSC is now satisfied with the content of the final bill.

Legal Reform

While last years session saw more sweeping and significant legal reform bills, this years session continued to
address the issue with small but needed changes, including SB 7, which prohibits a person from profiting off
their own illegal activities, and SB 15, the Learned Intermediary Doctrine bill that provides protections for a
pharmaceutical manufacturer when it provides warnings and instructions on a particular drug to a provider.
Other legal reform bills include SB 29, regarding tolling statute of limitations, and HB 4007, which codifies a
transparent bidding process for the Attorney General for hiring outside counsel. These pieces of legislation will
continue to improve the legal climate in our state.

Two important legal reform bills related to our industry that did not complete the legislative process wereSB
508 and SB 542. SB 508, known as the Nuisance Bill, clearly stipulated that actual physical property or
bodily damage or injury must occur when filing a nuisance lawsuit. This bill would have dramatically cut down
on the number of these types of suits in the state. SB 542, related to whether or not an adult motor vehicle
occupant was using or not using a seat belt in regard to a plaintiffs mitigation of damages. This was very

important to our industry from a safety and legal standpoint. Well work hard on passing this legislation next
year.

Regulatory Reform

The main legislation that addresses reforming the States regulatory practices, SB 619, also known as
the 2016 Regulatory Reform Act, narrowly passed the Senate along party lines and passed the House rather
handily on a 82-14-4 vote. The bill changes the current rule-making statute, including mandating both an
economic and a health impact statement on each proposed rule, and requiring all proposed rules include data
on whether the rule will be overly burdensome to business and industry. The bill was sent to the Governor for
approval or veto. Several other regulatory reform bills, including SB 588* and HB 2101, were passed this
session that will erase obsolete regulations from State Code and reviews state agencies, boards and other
entities to determine their necessity going forward.

Above Ground Storage Tank (AST) Rules

Last session we worked extremely hard to protect our industry in regards to AST regulations. As part of that
work, there was a need to develop AST rules. A major win for our industry was getting rid of the carrier
delivery provision from the AST rules. That provision would have tasked the carrier to make sure that an AST
was registered prior to delivery. This provision included fines on the carrier, but not on the AST owner. We
fought hard for our industry on getting this removed from the rules. As a reminder, this provision is in the UST
regulations. During the interim process we worked hard to draft rules that protect our industry. The following
are the updated Aboveground Storage Tank Rules (Promulgated in SB 157):
47 CSR 63 Aboveground Storage Tank Rules (SB 183)
47 CSR 64 AST Fee Assessments (SB 184)
47 CSR 65 AST Administrative Proceedings and Civil Penalty Assessment (SB 185)

Other Industry Related Legislation That Passed:

SB 13 Increasing Penalties for Overtaking and Passing Stopped School Buses*

SB 505 Exempting Certain Uses of Field Gas from Motor Fuel Excise Taxes

SB 582 Providing Refundable Tax Credit for Motor Fuel Sold for Use or Consumed in Railroad Diesel
Locomotives

SB 648 Allowing Local Authorities to Permit Flashing Traffic Signals During Low Traffic Times

HB 2826 Requiring the Commissioner of Division of Highways to Approve Points of Access to and
from State Highways to Real Property Used or to be Used for Commercial, Industrial or Mercantile
Purposes *

HB 4323 Relating to Reporting of Emergency Incidents by Well Operators and Pipeline Operators

HB 4554 Allowing an Increase of Gross Weight Limitations on Certain Roads in Greenbrier County *

HB 4662 Permitting the Superintendent of the State Police to Collect $3 from the Sale of Motor
Vehicle Inspection Stickers *

HB 4674 Relating to Motor Vehicle Back-up Lamps

Other Industry Legislation that Did Not Pass:

SB 397 Maintaining Status Quo in Event Bond Indebtedness to Parkways Authority is Eliminated

SB 597 Eliminating WV Port Authority

HB 4188 Relating to the Development and Implementation of a Program to Facilitate Commercial

Sponsorship of Rest Areas

HB 4200 Eliminating Courtesy Patrol Programs

HB 4239 Relating to Construction of a Modern Highway from Pikeville, KY to Beckley, WV

HB 4392 Making Individuals Responsible for the Costs Relating to the Filing of Excessive False
Complaints

HB 4489 Relating Generally to Human Trafficking

HB 4560 Requiring Commissioner of Highways to Develop a Formula for Allocating Road Funds
Among Districts

HB 4732 Relating to Performance Metrics of the West Virginia Division of Highways

HB 4733 Requiring Commissioner of Highways to Develop a Statewide Communications Plan Known

as the Comprehensive Public Involvement Plan

General Business and Other Legislation That Passed:

HB 2444 Providing for the Assignment of Economic Development Office Representatives to Serve as
Small Business Allies as Facilitators to Assist Small Business Entities and Individuals

HB 2615 West Virginia Small Business Capital Act (Crowdsourcing Bill)

HB 2897 Young Entrepreneur Reinvestment Act*

HB 2904 Requiring the Clerk of the County Commission to Maintain a County Ordinance Book*

HB 4228 Relating to Transport Network Companies (Uber Bill)

HB 4322 Expanding the Learn and Earn Program

HB 4364 Internet Privacy Protection Act *

HB 4502 Allowing Reciprocity Agreements with Contiguous States to Establish Regulations,

Licensing Requirements and Taxes for Small Businesses

*Denotes the final enrolled or engrossed version of the bill has not yet been posted to the
legislative website
Wed like to thank the WVTA Legislative Committee, along with all of our members, who made
calls or reached out to their legislators in some way to advocate for our industry and against
bad legislation. A comprehensive list of all legislation that passed this session can be found
b y c l i c k i n g h e r e . I f y o u h a v e a n y q u e s t i o n s , p l e a s e c o n t a c t J a n Vi n e y a r d
at jan@wvtrucking.com or Ryan Thorn at ryan@wvtrucking.com or by calling the WVTA office
at (304)345-2800.