January 13, 2020
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In This Issue LB 2020–01 January 13, 2020 West Virginia's 2020 legislative session has officially begun. The Senate and Governor Gives Fourth State of the House of Delegates gaveled in Wednesday, starting the first day of the session State Address with the chambers formally introducing bills and fulfilling ceremonial duties as lawmakers awaited Gov. Jim Justice's annual State of the State speech. New Committee Chairs Announced Lawmakers have been in Charleston since last week for committee meetings, floating several proposals, including measures to create a state investment fund, change the state's bail system, proposing changes to many state licensing CAWV Members Can Watch boards and cut some taxes on manufacturing businesses. Legislative Proceedings Live Starting today and running through the 60-day legislative session, members will receive, via e-mail, the CAWV Legislative Bulletin every Monday morning. The List of Introduced bulletin contains up-to-the-minute information on issues affecting the contracting Bills Starts Today industry and association members. In addition to the Monday morning Legislative Bulletins, the CAWV will be sending out Legislative Alerts throughout the coming weeks to members via email. The Legislature includes some new faces and new committee leadership. Senator John Pitsenbarger, R-Nicholas, replaces Sen. Greg Boso who resigned when he became president of a forensic engineering company. Del. Kevan Bartlett, R-Kanawha, was appointed to replace Del. Sharon Malcolm who died unexpectedly. Sen. Mark Maynard, R-Wayne, replaces Sen. Boso as chair of the Senate Government Organization Committee. Sen. Chandler Swope, R-Mercer, takes over as chair of Economic Development. Sen. Rollan Roberts, R-Raleigh, assumed the chair of Senate Workforce Committee. Sen. Eric Tarr, R-Putnam, is the new vice chair of Senate Finance. CAWV LEGISLATIVE ACTION CENTER - WATCH LEGISLATURE LIVE The CAWV Legislative Action Center, powered by VoterVoice, is up and running as the 2020 Legislative Session has begun. Throughout the session, members will be asked to Take Action by contacting their legislators on issues affecting the industry. When necessary, the CAWV will provide members with a letter template, and with just a few clicks, a personalized letter or email can be sent. VoterVoice also provides a “Find Your Legislator” feature, as well as association advocacy news. Members will be encouraged to contact their senators and delegates on key legislative issues and asked to Take Action through future CAWV Legislative Alerts. The CAWV Legislative Action Center is an effective tool that will allow members to efficiently communicate with legislators. To see the Action Center, visit www.cawv.org/legislative. Members can find valuable resources on the CAWV legislative page at www.cawv.org/legislative. Here members can visit the West Virginia Legislature’s website to see agendas, listen to committee meetings and get legislator’s addresses and phone numbers. Our members are hard at work and can’t visit to the Capitol each day to follow the discussion on issues they care about, but they can view committees and floor action live by visiting the CAWV legislative page at www.cawv.org/legislative. GOVERNOR PRESENTS CONSERVATIVE BUDGET IN STATE OF THE STATE ADDRESS Governor Jim Justice presented his fourth state of the state address Wednesday. He noted that state revenues are declining, mostly due to a reduction in severance tax revenue from coal, oil and gas. The governor noted that severance tax revenue was at its lowest level in 25 years and told lawmakers that his proposed budget for Fiscal Year 2021 is “very, very conservative.” Gov. Justice talked about a number of economic development projects, planned and underway, and spoke of an announcement within 30 days regarding a lighting company from Wales. He also announced an agreement with Wyoming- based carbon technology company Ramaco Carbon to open a new research facility in West Virginia that will be focused on turning coal to carbon fiber. A Ramaco spokesperson says the research facility will likely be located at the WV Regional Technology Park in South Charleston. The governor touted his Roads to Prosperity program and the number of road projects completed. Donning a highway safety vest, he told highway department officials to be ready to start work to “instantaneously finish Corridor H and instantaneously finish the Coalfields Expressway.” He also mentioned he wanted West Virginia to capitalize on President Trump’s proposed $2 trillion federal infrastructure plan. Governor Justice said the plan was on its way although there is no indication from AGC of America or ARTBA that Congress is any closer to an agreement with the Trump administration on an infrastructure plan. The governor talked about programs to put more young people into the state’s workforce. He noted Senate Bill 1 passed last year to provide “last dollar” funding for a two-year college or technical school program. He also said the West Virginia National Guard will open a new Mountaineer Challenge Academy in Montgomery on the former campus of West Virginia Institute of Technology. The national guard currently operates construction classes at its Camp Dawson facility. LEGISLATURE GEARING UP TO TAKE ON STATE OCCUPATIONAL LICENSING REQUIREMENTS Everyone from plumbers to painters to barbers could have their licensing requirements affected under two draft bills approved by West Virginia lawmakers Monday. One bill (see H.B. 4012 below) would move licensing of building trades from the state Division of Labor to Chapter 30 boards, named for the chapter of state code where licensing boards are mentioned. The other bill would prohibit cities and counties from licensing, certifying or registering any occupations or professions. Meanwhile, a third draft bill advanced Monday, H.B. 4011, would divide the more than 30 Chapter 30 licensing boards into three broad categories: • Medical profession licensing boards. • Boards for professions requiring a four-year college degree or higher. • Boards for occupations that do not require a four-year degree. At last week’s West Virginia Press Association’s Legislative Lookahead, House Speaker Roger Hanshaw, R-Clay, said there’s “significant interest” in the House of Delegates regarding revising occupational licensing laws — including potentially eliminating licensing requirements for multiple occupations. “We’re actively engaged now in asking which, if any, of those regulated professions should go away,” Hanshaw said Friday. “For which of those professions should West Virginians simply be able to hold out a shingle and offer their services in the communities?” Eliminating occupational licensing requirements is a key agenda item for the corporate-backed American Legislative Exchange Council (ALEC), which contends that licensing is a serious obstacle preventing jobseekers from pursuing careers in those professions. Last year, West Virginia lawmakers introduced bills in the Senate and House of Delegates to let workers do jobs without state licenses, as long as they tell consumers that they are practicing without licenses. The text of both bills was taken verbatim from a model ALEC bill, the Occupational Licensing Consumer Choice Act (House Bill 2697, Senate Bill 492). Conversely, a 2015 study by the Obama administration found that licensed workers earn 10 percent to 15 percent more than their unlicensed counterparts. The study found that licensing raises prices for goods and services by 3 percent to 16 percent, but found that licensing improves quality, protects the public from incompetent practitioners and allows consumers to bring complaints before occupational licensing boards. BILL CREATES SEPARATE CONTRACTORS LICENSING BOARD The House Government Organization Committee will take up H.B. 4012 which transfers operation procedures of the West Virginia Contractors Licensing Board. The board currently utilizes the West Virginia Division of Labor (WVDOL) personnel to run their day-to-day duties. The bill requires the board to set up its own operations, administrative duties, licensing, inspection and record keeping without the involvement of the WVDOL. The bill would put the contractors licensing board under Chapter 30 in the State Code which is where all other licensing boards are listed. While there is merit to this, the question is what additional costs will there be to the Contractors Licensing Board if it must hire its own inspectors and provide benefits and vehicles, and will this additional cost require an increase in the annual licensing fee? The bill passed out of the committee last year but did not advance. There seems to be more interest in the bill this year. BILL REDUCES HOURS OF EXPERIENCE REQUIREMENTS FOR SPRINKLER FITTERS H.B. 4040 would amend and reenact §29-3D-2 of the Code of West Virginia, 1931, to reduce the number of hours of experience needed to qualify as a journeyman sprinkler fitter from 10,000 to 3,000. The bill, introduced by Del. Geoff Foster, R-Putnam, is referred to the House Government Organization Committee. BILLS ELIMINATE ALTERNATIVE FUEL VEHICLE FEES H.B. 4060 and S.B. 248 modify or eliminate the registration fees for alternative fuel vehicles. A fee was added in 2017 when the highway funding bills were being debated. The premise is that alternative fuel vehicles benefit from driving on good roads but they weren’t paying their fair share. These bills remove or modify the requirements passed in 2017. Currently, the annual registration fee for a vehicle fueled with hydrogen or natural gas is $200. The annual registration fee for a vehicle operating exclusively on electricity is $200. The annual registration fee for a vehicle operating on a combination of electricity and petrochemical fuels is $100. The fee generates $1.1 million to $1.3 million annually to the State Road Fund. S.B. 239 ADDS INSURANCE REQUIREMENT TO CONTRACTORS LICENSING REQUIREMENTS Senator William Ihlenfeld, D-Ohio, has introduced S.B. 239 which would require general contractors to have and maintain general liability insurance. The bill would add the following to the current contractors licensing statute.