Bill Summary – FastDemocracy

WEST VIRGINIA LEGISLATURE
REGULAR SESSION
                Introduced House Bill 5548
   By Delegate Criss, Espinosa, Fehrenbacher,
                Ridenour, and Hite [Introduced February 9, 2024; Referred to the Committee on Finance]
     Intr HB 5548
  A BILL to amend and reenact §5B-1-9 of the Code of West Virginia,1931, as amended, relating to
         modifying requirements imposed on any owner, operator, or manager, as applicable, and
         all concessions and licensees thereof, within a tourism development project or tourism
         development expansion project within a tourism development project; conforming
         provisions to existing law redesignating name of public office; and removing redundant
         provisions relating to severability.
     Be it enacted by the Legislature of West Virginia:
     ARTICLE                1.             DEPARTMENT                     OF              COMMERCE.
     §5B-1-9. Authority to assist qualifying tourism development projects and tourism development expansion projects; legislative findings.
         (a) The Department of Commerce Economic Development may assist qualifying tourism
  development projects and tourism development expansion projects by approved companies
  pursuant to §5B-2E-1 et seq. of this code which are located in, or partially in, municipalities with a
  population of 2,000 or less, effective as of the effective date of the most recent census, as
  specified in §8-1-4 of this code relating to the creation of tourism development districts.
         (b) The Legislature finds and declares that the general welfare and material well-being of
  the citizens of the state depend, in large measure, upon the development and expansion of
  tourism in the state, and that, beyond the creation and expansion of tourism development projects
  and tourism development expansion projects, it is in the best interest of the state to induce and
 assist in tourism development in small municipalities through the creation of tourism development
 districts, in order to advance the public purposes of relieving unemployment by preserving and
 creating jobs, and preserving and creating new and greater sources of revenues for the support of
 public services provided by the state and local government; and that tourism development districts
 are of paramount importance to the state and its economy and for the state's contribution to the
 national economy.
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     Intr HB 5548
        It is the intent of the Legislature to occupy the whole field of the creation and regulation of
 tourism development districts. The stated purpose of this section is to promote uniform and
 consistent application of the act within the state.
        (c) This section prohibits:
        (1) Certain municipalities, whether by ordinance, resolution, administrative act, or
 otherwise, from enacting, adopting, implementing, or enforcing ordinances, regulations, or rules
 which limit, in any way, the creation of, and acquisition, construction, equipping, development,
 expansion, and operation of any tourism development project or tourism development expansion
 project in a tourism development district; and
        (2) Certain municipalities from imposing or enforcing local laws and ordinances concerning
 the creation or regulation of any tourism development district and any tourism development project
 or tourism development expansion project therein.
        (d) Any developer or owner of a tourism development project or tourism development
 expansion project which has been determined by the West Virginia Development Office
 Department of Economic Development or its predecessor, pursuant to §5B-2E-1 et seq. of this
 code, to be an approved company and which has entered into an agreement with the development
 office Department of Economic Development or its predecessor pursuant to §5B-2E-6 of this code
 to provide the approved company with a credit against the West Virginia consumers sales and
 service tax imposed by §11-15-1 et seq. of this code may apply to the development office
 Department of Economic Development for designation of a tourism development district
 encompassing the area where the tourism development project or the tourism development
 expansion project is to be acquired, constructed, equipped, developed, expanded, and operated:
 Provided, That notwithstanding any provision of §5B-2E-5(c)(2) of this code to the contrary, only
 tourism development projects and tourism development expansion projects with aggregate
 projected costs of construction, reconstruction, restoration, rehabilitation, or upgrading of not less
 than $25 million shall be eligible for designation as a tourism development district.
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     Intr HB 5548
        (e) Applicants for the creation of a tourism development district shall demonstrate that the
 district, when designated, will create significant economic development activity:
        (1) Applicants shall submit a development plan that provides specific details on proposed
 financial investment, direct and indirect jobs to be created, and the viability of the proposed
 tourism development district; and
        (2) The applicant shall own, control, or have the right of use to all real property within the
 proposed tourism development district and shall provide evidence of such ownership, control, or
 right of use in the application to the development office Department of Economic Development.
        (f) The proposed district shall be entirely or partially within the corporate limits of a
 municipality which has a population of 2,000 or less as of the effective date of the most recent
 census, as specified in §8-1-4 of this code.
        (g) All costs for the application shall be borne by the applicant.
        (h) The application submitted by the applicant to the development office Department of
 Economic Development pursuant to §5B-2E-1 et seq. of this code may be considered by the
 development office Department of Economic Development to be sufficient to meet some of the
 requirements of this section.
        (i) The decision of the development office Department of Economic Development to
 designate a tourism development district shall be final.
        (j) The total number of approved tourism development districts may not exceed five. When
 the total number of designated tourism development districts equals five, no further designations
 may be approved by the development office Department of Economic Development.
        (k) Each tourism development district shall terminate by operation of law 99 years from the
 date approved by the development office Department of Economic Development, unless a shorter
 time period for termination is agreed to by the applicant and the development office Department of
 Economic Development. The development office Department of Economic Development may
 terminate a tourism development district if the development office Department of Economic
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     Intr HB 5548
 Development determines that the tourism development project or tourism development expansion
 project has been abandoned or ceased operations for five consecutive years.
         (l) In accordance with subsections (b) and (c) of this section, and notwithstanding any
 provision of this code to the contrary, or any municipality's home rule powers with respect to
 ordinances and ordinance procedures, including any authority pursuant to the Municipal Home
 Rule Program under §8-1-5a of this code, designated tourism development districts, and the
 tourism development projects or tourism development expansion projects therein, may not be
 subject to the following:
         (1) Municipal zoning, historic preservation, horticultural, noise, viewshed, lighting,
 development, or land use ordinances, restrictions, limitations, or approvals;
         (2) Municipal regulation of the sale of alcoholic liquor, nonintoxicating beer, or wine for
 consumption within the tourism development district;
         (3) Municipal building permitting, inspection, or code enforcement;
         (4) Municipal license requirements;
         (5) The legal jurisdiction of the municipality in which the tourism development district is
 entirely or partially located, except as specifically provided in this article;
         (6) The implementation of any tax, fee, or charge by the municipality, except as specifically
 provided in this section; or
         (7) Any requirement under state law for the consent or approval of the municipality in which
 the tourism development district is entirely or partially located of any state or county action
 pursuant to this code, specifically including, but not limited to, §7-11B-1 et seq. of this code, for
 formal consent of the governing body of a municipality for county or state action regarding the
 establishment of tax increment financing development or redevelopment districts or the approval
 of tax increment financing development or redevelopment plans.
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      Intr HB 5548
          (m) Notwithstanding the creation of the tourism development district, the owner, operator,
  or manager, as applicable, and all concessions and licensees thereof, of the tourism development
  project or tourism development expansion project located therein shall:
          (1) Pay business and occupation tax, if applicable, pursuant to §8-13-5 of this code, to the
  municipality in the same manner as any other business or commercial venture located within the
  municipality;
          (2) Collect and remit municipal sales and service tax and municipal use tax, if applicable,
  pursuant to §8-1-5a, §8-13C-4, and §8-13C-5 of this code, to the municipality in the same manner
 as any other business or commercial venture located within the municipality;
         (3) Pay ad valorem real and personal property tax pursuant to the same millage rates as
 any other business or commercial venture located within the municipality;
         (4) Collect and remit hotel occupancy tax, if applicable, to the municipality or county in
 accordance with §7-18-1 of this code;
         (5) Pay all municipal service fees enacted pursuant to §8-13-13 of this code, including, but
 not limited to, fire, police, sanitation, or city service fees;
         (6) Pay all municipal utility rates, fees, and charges for utilities used or consumed during
 construction and operation of premises within the tourism development district, including, but not
 limited to, water, sewer, stormwater, and garbage and recycling collection: Provided, That (i) The
 rates, fees, and charges for such services shall be based on the cost of providing such service and
 the municipality shall enter into a contract for each such service with the developer and any
 contracts for water service or sewer service with the municipality shall be subject to review and
 approval by the Public Service Commission of West Virginia; and (ii) the developer shall only be
 required to pay any capacity improvement fee or impact fee to the extent that capital additions,
 betterments, and improvements must be designed, acquired, constructed, and equipped by the
 municipality to provide such service to the project and any such capacity improvement fee or
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      Intr HB 5548
 impact fee for water or sewer service shall be subject to review and approval by the Public Service
 Commission of West Virginia;
        (7) Comply with state laws, regulations, and licensure requirements concerning state
 control of alcoholic liquors pursuant to Chapter 60 of this code and control of nonintoxicating beer
 pursuant to §11-16-1 et seq. of this code;
        (8) Be entitled to municipal police protection and municipal fire protection, if available, in
 the same manner as any other business or commercial venture located within the municipality;
        (9) Design, acquire, construct, and equip the tourism development project or the tourism
 development expansion project pursuant to the State Building Code in accordance with §8-12-13
 of this code and corresponding State Rule 87 CSR 4; and
        (10) Provide for inspection of the design, acquisition, construction, and equipping, and any
 subsequent expansion of the tourism development project or the tourism development expansion
 project pursuant to standards approved by the West Virginia Development Office Department of
 Economic Development, which shall be the standards utilized by any agency of the state when
 inspecting or permitting any portion of the tourism development project or the tourism
 development expansion project.
        (n) The West Virginia Department of Transportation may take actions necessary in support
 of the development of any tourism development project or tourism development expansion project
 in a tourism development district specifically, including, but not limited to, the development or
 improvement of such highways, roads, thoroughfares, and sidewalks within the municipality in
 which the tourism development district is partially or entirely located.
        (o) Failure of the Legislature to renew the Tourism Development Act, §5B-2E-1 et seq. of
 this code, may not, in any way, modify or alter the designation and vested rights of any tourism
 development district created prior to the failure of the Legislature to renew the Tourism
 Development Act and any such tourism development district shall continue to exist beyond the
 termination of the Tourism Development Act.
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      Intr HB 5548
         (p) The development office Department of Economic Development shall propose rules for
 legislative approval in accordance with §29A-3-1 et seq. of this code to implement this section, and
 the rules shall include, but not be limited to:
         (1) The application and timeline process;
         (2) A nonbinding review of the existing planning and zoning ordinances of any municipality
 in which the tourism development district is located;
         (3) Notice provisions;
         (4) The method and timeline for receiving statements of support or opposition from any
 municipality within or partially within the tourism development district;
         (5) Additional application consideration criteria; and
         (6) Application fees sufficient to cover the costs of consideration of an application.
         (q) The development office Department of Economic Development shall promulgate
 emergency rules pursuant to §29A-3-15 of this code by July 1, 2020, to facilitate the
 implementation of this section.
         (r) Pursuant to §2-2-10 of this code, if any provision of this section or the application thereof
 to any person or circumstance is held unconstitutional or invalid, the unconstitutionality or
 invalidity shall not affect other provisions or applications of this section, and to this end the
 provisions of this section are declared to be severable.
              NOTE: The purpose of this bill is to clarify that tourism development projects and tourism development expansion projects are only required to satisfy the standards approved by the West Virginia Department of Economic Development for the design, acquisition,
              construction, and equipping thereof.
              Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
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Statutes affected: 
Introduced Version: 5B-1-9