Bill
Bill > HB3517
summary
Introduced
03/31/2025
03/31/2025
In Committee
04/09/2025
04/09/2025
Crossed Over
04/02/2025
04/02/2025
Passed
04/12/2025
04/12/2025
Dead
Signed/Enacted/Adopted
04/30/2025
04/30/2025
Introduced Session
2025 Regular Session
Bill Summary
AN ACT to amend and reenact §8-35-1 and §8-35-2 of the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §6-9D-1, §6-9D-2, §6-9D-3, §6-9D-4, §6-9D-5, §6-9D-6, §6-9D-7, §6-9D-8, §6-9D-9, §6-9D-10, §6-9D-11, §6-9D-12, §6-9D-13, and §6-9D-14; and to amend said code by adding thereto by adding four new sections, designated §8-35-3, §8-35-4, §8-35-5 and §8-35-6, all relating generally to fiscal watch or fiscal emergencies of local governments; setting out findings; defining terms; setting out auditable conditions of local governments; providing details of initiation of a fiscal watch review; providing guidelines for identifying potential for declarations of a fiscal watch or fiscal emergency; providing for rulemaking; providing conditions constituting grounds for a fiscal watch; relating to the declaration of the existence of a fiscal watch; providing for a financial recovery plan; relating to determining the existence of a fiscal emergency; providing conditions constituting grounds for a fiscal emergency; establishing a process for appeal of a decision of the State Auditor that a fiscal emergency exists; relating to the establishment of a financial planning and supervision committee and further rulemaking authority of the State Auditor; relating to what constitutes compliance of this article by a local government; relating to a prohibition against relief under federal bankruptcy laws unless otherwise authorized; providing a severability clause; modernizing the process for the dissolution and forfeiture of certain municipalities; modernizing the process for the voluntary dissolution of municipal corporations; establishing the process for the involuntary dissolution of municipal corporations; establishing that the State Auditor shall serve as a special receiver upon declaration of the forfeiture of the charter or certificate of incorporation, or the certification of the election for voluntary dissolution, or upon an order by the Circuit Court for involuntary dissolution of a municipality; establishing and relating to the disposition of property belonging to a dissolved municipal corporation; establishing the process for sale and liquidation of a dissolved municipality’s assets.
AI Summary
This bill establishes a comprehensive framework for addressing fiscal challenges in local governments in West Virginia, focusing on preventing and managing financial emergencies. The legislation creates a multi-step process where the State Auditor can place a local government under a "fiscal watch" if it shows signs of financial distress, such as overdue accounts, budget deficits, or failure to meet debt obligations. If the local government fails to address these issues, the State Auditor can declare a "fiscal emergency" and establish a financial planning and supervision committee to take control of the government's finances. The bill requires local governments to develop financial recovery plans, submit to financial reviews, and comply with recommendations from the State Auditor. Additionally, the legislation modernizes the process for dissolving municipalities, giving the State Auditor the power to act as a special receiver for dissolved municipalities, manage their assets, pay off debts, and liquidate remaining property. The bill aims to protect public health, safety, and welfare by providing a structured approach to addressing local government financial crises, with provisions for technical assistance, financial oversight, and potential intervention when a local government's financial condition becomes unsustainable.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
Approved by Governor 4/30/2025 (on 04/30/2025)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
Loading...