The bill amends the Code of West Virginia to create a structured approach for managing fiscal emergencies and fiscal watches for local governments. It introduces a new article, 6-9D, which empowers the State Auditor to declare fiscal watches and determine fiscal emergencies based on criteria such as defaults on debt obligations and inadequate financial records. Local governments placed under fiscal watch are required to develop a financial recovery plan, which must be approved by the State Auditor. The legislation also modernizes the dissolution processes for municipalities, designating the State Auditor as a special receiver and outlining the management of assets belonging to dissolved municipalities.

Additionally, the bill establishes a financial planning and supervision committee to assist local governments in fiscal emergencies, with the State Auditor holding rule-making authority over the committee's operations. It details the procedures for liquidating the assets of dissolved municipalities, prioritizing the use of deposits and investments to settle debts before initiating property liquidation. The State Auditor is authorized to conduct public auctions for the sale of municipal property, with certain exemptions for sales to government entities. The bill also includes provisions to prevent conflicts of interest by prohibiting specific individuals associated with the State Auditor from purchasing municipal assets.

Statutes affected:
Originating in Committee: 8-35-1, 8-35-2, 6-9D-1, 6-9D-2, 6-9D-2a, 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, 8-35-3, 8-35-4, 8-35-5, 8-35-6
Engrossed Version: 8-35-1, 8-35-2, 6-9D-1, 6-9D-2, 6-9D-2a, 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, 8-35-3, 8-35-4, 8-35-5, 8-35-6
Enrolled Version: 8-35-1, 8-35-2, 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, 6-9D-14, 8-35-3, 8-35-4, 8-35-5, 8-35-6