West Virginia 2025 Regular Session Status: Enacted 3 R cosponsors

HB 3517 — Relating generally to fiscal emergencies of local governments

Last action — Chapter 189, Acts, Regular Session, 2025

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House of Delegates
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 31, 2025. Enacted.

Signed by Governor Patrick Morrisey (Republican) on July 31, 2025.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

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A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 76% · moderate confidence
  • Enacted

    Current position in the legislative process.

  • 3 sponsors

    1 primary, 2 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (3 R).

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

408 added · 371 removed

Plain-language change summary

The latest version of Bill HB 3517 includes additional sections that outline a more detailed process for handling fiscal emergencies in local governments. Notably, it adds criteria for when a fiscal watch or emergency can be declared and establishes a financial recovery plan. These changes are significant because they aim to provide clearer guidelines and support for local governments facing financial difficulties, ultimately ensuring they remain viable and can continue serving their communities effectively.

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WEST VIRGINIA LEGISLATURE REGULAR SESSION ENGROSSED House Bill 3517 By Delegates Akers, Hanshaw (Mr.
WEST VIRGINIA LEGISLATURE REGULAR SESSION ENROLLED House Bill 3517 BY DELEGATESAKERS, ANSHAW (MR.
Speaker), and Rohrbach [Originating in the Committee on the Judiciary;
PEAKER),AND ROHRBACH [Passed April 12, 2025;
Reported on March 28, 2025] Eng HB 3517 A BILL 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-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 and §6-9D-12;
in effect 90 days from passage (July 11, 2025)] Enr HB 3517 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 4 new sections, designated §8-35-3, §8-35-4, §8-35-5 and §8-35-6, all relating generally to fiscal emergencies of local governments;
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;
establishing a system to remediate those emergencies;
setting out findings;
requiring certain action be taken by the State Auditor or a designee;
defining terms;
and modernizing the process for the dissolution of municipalities.
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 ofmunicipal corporations;
establishing the processforthe 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.
CHAPTER 6.
Enr HB 3517 CHAPTER 6.
GENERAL PROVISIONS RESPECTING OFFICERS.
GENERALPROVISIONSRESPECTING OFFICERS.
Eng HB 3517 (2) Require reports and examinations of their financial condition, transactions, operations and undertakings;
(2) Require reports and examinations of their financial condition, transactions, operations and undertakings;
(c) The Legislature further finds that the fiscal emergency conditions described in this article result from and constitute abuses of the powers of a local government to borrow money, contract debts and levy taxes, and that those conditions impair and threaten the health, safety and welfare of the people of the state within and beyond the local government.
Enr HB 3517 (c) The Legislature further finds that the fiscal emergency conditions described in this article result from and constitute abuses of the powers of a local government to borrow money, contract debts and levy taxes, and that those conditions impair and threaten the health, safety and welfare of the people of the state within and beyond the local government.
“Committee” means a financial planning and supervision group officially created under this article.
“Committee” means a financial planning and supervision group created pursuant to this article.
Eng HB 3517 “Deficit fund” means the general fund or any other fund that, as at the time indicated, has a deficit balance or a balance that is less than the amount required to be in such fund pursuant to law or pursuant to contractual requirements, demonstrating that over a period of time expenditures charged or chargeable to the fund have exceeded moneys credited to the fund, or that moneys credited to the fund have not been in the amounts required by law or contractual requirements.
“Deficit fund” means the general fund or any other fund of a local government that, as at the time indicated, has a deficit balance or a balance that is less than the amount required to be in such fund pursuant to law or pursuant to contractual requirements, demonstrating that over a period of time expenditures charged or chargeable to the fund have exceeded moneys credited to the fund, or that moneys credited to the fund have not been in the amounts required by law or contractual requirements.
“Employee benefits” means expenditures for goods and services furnished to local government officers or employees by the local government, including, but not limited to, such benefits as food, temporary housing and clothing, and the provision of pension, retirement, disability, hospitalization, health care, insurance or other benefits to employees requiring the advance payment of money other than directly to employees or other beneficiaries, or the deposit or reservation of money for such purpose.
Enr HB 3517 “Employee benefits” means expenditures for goods and services furnished to local government officers or employees by the local government, including, but not limited to, such benefits as food, temporary housing and clothing, and the provision of pension, retirement, disability, hospitalization, health care, insurance or other benefits to employees requiring the advance payment of money other than directly to employees or other beneficiaries, or the deposit or reservation of money for such purpose.
“Estimated revenues” means the aggregate estimates of revenue receipts in the budget of the general fund and other funds as estimated and supplemented, modified, or amended by the local government, as approved by the West Virginia State Auditor’s Office or other regulatory agency.
“Estimated revenues” means the aggregate estimates of revenue receipts in the budget of the general fund of a local government and other funds as estimated and supplemented, modified, or amended by the local government, as approved by the West Virginia State Auditor’s Office or other regulatory agency.
“Fiscal emergency” means the existence of fiscal emergency conditions.
“Fiscal emergency” means the existence of fiscal emergency conditions as set forth in this article.
Eng HB 3517 “General fund” means the fund used to account for and report the primary operating activities of the local government.
“General fund” means the fund used to account for and report the primary operating activities of the local government.
“General fund budget” means the estimates of revenue and expenditure as a plan of financial operation of the general fund during the applicable fiscal year as approved by the West Virginia State Auditor’s Office or other regulatory agency.
“General fund budget” means the estimates of revenue and expenditure as a plan of financial operation of the general fund during the applicable fiscal year as approved by the West Virginia State Auditor’s Office.
“Local government” means any unit of local government within the state, including a county, municipality, and any other authority, board, commission, district, office, public authority, public corporation, or other instrumentality of a county, municipality, or any combination of two or more local governments.
“Local government” means any unit of local government within the state, including a county, municipality, and any other authority, board, commission, district, office, public authority, Enr HB 3517 public corporation, or other instrumentality of a county, municipality, or any combination of two or more local governments.
§6-9D-2a.
§6-9D-3.
The State Auditor or designee may determine that a local government’s accounts, records, files, or reports have not been maintained in accordance with §6-9-2 of this code.
Notwithstanding the powers and duties granted to the State Auditor in §6-6-1 et seq.
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the State Auditor or designee may determine that a local government’s accounts, records, files, or reports have not been maintained in accordance with §6-9-2 of this code.
§6-9D-3.
§6-9D-4.
A local government may undergo a fiscal watch review to determine whether it is approaching a state of fiscal emergency.
(a) A local government may undergo a fiscal watch review by the State Auditor to determine whether it is approaching a state of fiscal emergency.
A fiscal watch review shall be initiated by a written Eng HB 3517 request to the State Auditor or a designee from the governing body when duly authorized by a majority of the legislative authority;
A fiscal watch review shall be initiated by a written request to the State Auditor or a designee from the governing body when duly authorized by a majority of the members of such body;
Fiscal watch conditions include but are not limited to (a) the inability of a local government to meet financial obligations (b) the lack of adequate financial records necessary to conduct an examination pursuant to §6-9-1 et seq.
Fiscal watch conditions include but are not limited to:
of this code (c) an examination pursuant to §6-9-1 et seq.
(1) The inability of a local government to meet financial obligations;
(2) the lack of adequate financial records necessary to conduct an examination Enr HB 3517 pursuant to §6-9-1 et seq.
of this code;
or (3) an examination pursuant to §6-9-1 et seq.
The State Auditor or a designee will notify the local government when a fiscal watch review will or will not be conducted.
(b) The State Auditor or a designee will notify the local government when a fiscal watch review will or will not be conducted.
Furthermore, all working papers acquired or created to produce the fiscal watch review shall be considered confidential pursuant to §6-9-9b of this code.
(c) All working papers acquired or created to produce the fiscal watch review shall be considered confidential pursuant to §6-9-9b of this code.
§6-9D-4.
§6-9D-5.
(b) If the State Auditor or a designee determines that a local government is engaging in any of those practices or that any of those conditions exist, the State Auditor or a designee may declare the local government to be under a fiscal watch.
(b) If the State Auditor or a designee determines that a local government is engaging in any of the practices set forth in the legislative rule promulgated pursuant to the provisions of this section or that any of those conditions exist, the State Auditor or a designee may declare the local government to be under a fiscal watch.
Eng HB 3517 (d) If the State Auditor or a designee finds that a local government declared to be under a fiscal watch has not made reasonable proposals or otherwise taken action to discontinue or correct the fiscal practices or budgetary conditions that prompted the declaration of fiscal watch, and if the State Auditor or a designee considers it necessary to prevent further fiscal decline, the State Auditor or a designee may determine that the local government should be in a state of fiscal emergency.
§6-9D-6.
§6-9D-5.
(a) The conditions constituting grounds for a fiscal watch may include, but are not limited to:
In addition to the conditions set out in the legislative rule promulgated pursuant to the provisions of §6-9D-11 of this code the following also constitute grounds for a fiscal watch may include, but are not limited to:
(1) Accounts have been due and payable for more than 30 days or for which a penalty was added for failure to pay.
Enr HB 3517 (1) Accounts have been due and payable for more than 30 days or for which a penalty was added for failure to pay.
(4) Any such rule, as proposed by the State Auditor or a designee for legislative approval in accordance with the provisions of §29A-3-1 et seq.
§6-9D-7.
of this code, identified as indicators of financial watch condition.
§6-9D-6.
(a) Upon determining that one or more of the conditions constituting grounds for a fiscal watch are present, the State Auditor or a designee shall issue a written declaration of the existence of a fiscal watch to the governing body of the local government.
(a) Upon determining that one or more of the conditions constituting grounds for a fiscal watch are present, the State Auditor or a designee shall issue a written declaration of the existence of a fiscal watch and provide the same to the governing body of the local government.
The fiscal watch shall be Eng HB 3517 in effect until the State Auditor or a designee determines that the conditions have been satisfactorily addressed, cancels the watch, or until the State Auditor or a designee determines that a state of fiscal emergency exists.
(b) The fiscal watch shall be in effect until the State Auditor or a designee determines that the conditions have been satisfactorily addressed, cancels the watch, or until the State Auditor or a designee determines that a state of fiscal emergency exists.
The State Auditor or a designee, shall provide such technical and support services to the municipal corporation, county or political subdivision after a fiscal watch has been declared to exist as the State Auditor or a designee considers necessary and provide mandatory recommendations to address the fiscal watch conditions.
The State Auditor or a designee, shall provide such technical and support services to the municipal corporation, county or political subdivision after a fiscal watch has been declared to exist as the State Auditor or a designee considers necessary and provide recommendations to address the fiscal watch conditions.
(b) Within 90 days after the day a written declaration of the existence of a fiscal watch is issued under this section, the governing body of the local government for which a fiscal watch was declared shall submit to the State Auditor or a designee a financial recovery plan that shall identify actions to be taken to eliminate all of the conditions described in §6-9D-5 of this code, and shall include a schedule detailing the approximate dates for beginning and completing the actions and a five-year forecast reflecting the effects of the actions.
(c) Within 90 days after the day a written declaration of the existence of a fiscal watch is issued under this section, the governing body of the local government for which a fiscal watch was declared shall submit to the State Auditor or a designee a financial recovery plan that shall identify actions to be taken to eliminate all of the conditions described in §6-9D-6 of this article, and shall include a schedule detailing the approximate dates for beginning and completing the actions and a five-year forecast reflecting the potential effects of the actions.
The financial recovery plan also shall evaluate the feasibility of entering into shared services agreements with other political subdivisions for the joint exercise of any power, performance of any function, or rendering of any service, if so authorized by statute.
The financial Enr HB 3517 recovery plan also shall evaluate the feasibility of entering into shared services agreements with other political subdivisions for the joint exercise of any power, performance of any function, or rendering of any service, if not precluded by statute.
The financial recovery plan is subject to review and approval by the State Auditor or a designee.
The financial recovery plan is subject to review and approval by the State Auditor or a designee pursuant to the provisions of the rules promulgated pursuant to this article.
(c) The State Auditor or a designee may declare that a fiscal emergency condition exists under this article in the municipal corporation, county or political subdivision if either of the following applies:
(d) The State Auditor or a designee may declare that a fiscal emergency condition exists under this article in the municipal corporation, county or political subdivision if either of the following applies:
(1) A feasible financial recovery plan for a local government or which a fiscal watch was declared is not submitted within the time period prescribed by subsection (b) of this section, or within any extension of time thereof;
(1) A feasible financial recovery plan for a local government filed pursuant to the provisions of this article and for which a fiscal watch was declared is not submitted within the time period prescribed by this section, or within any extension of time thereof;
or (2) The State Auditor or a designee finds that a local government for which a fiscal watch has been declared has not made reasonable proposals or otherwise taken action to discontinue or correct the fiscal practices or budgetary conditions that prompted the declaration of fiscal watch, Eng HB 3517 and the State Auditor or a designee determines a fiscal emergency declaration is necessary to prevent further decline.
or (2) The State Auditor or a designee finds that a local government for which a fiscal watch has been declared has not made reasonable proposals or otherwise taken action to discontinue or correct the fiscal practices or budgetary conditions that prompted the declaration of fiscal watch, and the State Auditor or a designee determines a fiscal emergency declaration is necessary to prevent further decline.
§6-9D-7.
(e) If the State Auditor or a designee finds that a local government declared to be under a fiscal watch has not made reasonable proposals or otherwise taken action to discontinue or correct the fiscal practices or budgetary conditions that prompted the declaration of fiscal watch, and if the State Auditor or a designee considers it necessary to prevent further fiscal decline, the State Auditor or a designee may determine that the local government should be in a state of fiscal emergency as set forth in this article §6-9D-8.
Determining existence of fiscal emergency conditions.
(a) The existence of fiscal emergency conditions as set forth in §6-9D-9 of this code shall be determined by the State Auditor or a designee as set forth in rules authorized pursuant to this Enr HB 3517 article.
Fiscal emergency condition determinations shall be set forth in written reports by the State Auditor or a designee, which shall be filed with the governing body, the State Treasurer, Secretary of State, Governor, and Legislative Auditor.
(b) In making such determination, the State Auditor or a designee may rely on reports or other information filed or otherwise made available by the local government, accountants’ reports, or other sources and data the State Auditor or a designee considers reliable for such purpose.
The determination of a fiscal emergency condition may be made without need of the specific amounts noted related to such conditions.
§6-9D-9.
(7) Any such rule, as proposed by the State Auditor or a designee for legislative approval in accordance with the provisions of §29A-3-1 et seq.
Enr HB 3517 (7) Any such rule, as proposed by the State Auditor or a designee for legislative approval in accordance with the provisions of §29A-3-1 et seq.
(8) The State Auditor or a designee declares a fiscal emergency pursuant to §6-9D-6 of this code.
(8) The State Auditor or a designee declares a fiscal emergency pursuant to §6-9D-8 of this code.
Eng HB 3517 (b) Any condition described in subdivisions (4), (5), (6) or (7) of subsection (a) of this section shall not constitute a fiscal emergency condition if the local government clearly demonstrates to the satisfaction of the State Auditor or a designee that such condition no longer exists prior to the time of the determination.
(b) Any condition described in subdivisions (4), (5), (6) or (7) of subsection (a) of this section shall not constitute a fiscal emergency condition if the local government clearly demonstrates to the satisfaction of the State Auditor or a designee that such condition no longer exists prior to the time of the determination.
§6-9D-8.
§6-9D-10.
Determining existence of fiscal emergency conditions.
Appeal of decision of State Auditor.
(a) The existence of fiscal emergency conditions shall be determined by the State Auditor or a designee.
(a) A determination by the State Auditor or a designee that a fiscal emergency condition does not exist is final, conclusive and not appealable.
Fiscal emergency condition determinations shall be set forth in written reports by the State Auditor or a designee, which shall be filed with the governing body, and with the State Treasurer, Secretary of State, Governor, and Legislative Auditor.
(b) In making such determination, the State Auditor or a designee may rely on reports or other information filed or otherwise made available by the local government, accountants’ reports, or other sources and data the State Auditor or a designee considers reliable for such purpose.
The determination of a fiscal emergency condition may be made without need of the specific amounts noted related to such conditions.
(c) A determination by the State Auditor or a designee under this section that a fiscal emergency condition does not exist is final and conclusive and not appealable.
The appeal shall be heard expeditiously by the circuit court for good cause shown shall take precedence over all other civil matters except earlier matters of the same character.
The appeal shall be heard expeditiously by the circuit court for good cause shown and, except as otherwise provided in this code, shall take precedence over all other civil matters except earlier matters of the same character.
Notice of such appeal must be filed with Eng HB 3517 the State Auditor or a designee and such court within 30 days after the notification of a fiscal emergency determination by the State Auditor or a designee to the governing body of the local government as provided for in subsection (a) of this section.
Notice of such appeal must be filed with the State Auditor or a designee and such court within 30 days after the notification of a fiscal emergency determination by the State Auditor or a designee to the governing body of the local government as provided for in subsection (a) of this section.
(d) Upon such appeal, determinations of the State Auditor or a designee shall be presumed to be valid and the local government shall have the burden of proving, by clear and convincing evidence, that each of the determinations made by the State Auditor or a designee as to the existence of a fiscal emergency condition under this Article was in error.
Enr HB 3517 (b) Upon such appeal, determinations of the State Auditor or a designee shall be presumed to be valid and the local government shall have the burden of proving, by clear and convincing evidence, that each of the determinations made by the State Auditor or a designee as to the existence of a fiscal emergency condition under this article was in error.
(e) The pendency of any such appeal shall not affect or impede the operations of this article;
(c) The pendency of any such appeal shall not affect or impede the operations of this article;
and all things may be done under this article that may be done regardless of the pendency of any such appeal.
and the actions of the State Auditor taken pursuant to this article may continue regardless of the pendency of any such appeal.
(f) All expenses incurred by the State Auditor or a designee relating to a determination or termination of a fiscal emergency or a fiscal watch under this article, including providing technical and support services, or for conducting a financial review, shall be reimbursed from an appropriation for that purpose.
(d) All expenses incurred by the State Auditor or a designee relating to a determination or termination of a fiscal emergency or a fiscal watch under this article, including providing technical and support services, or for conducting a financial review, shall be reimbursed from an appropriation for that purpose.
If necessary, the governing body may provide sufficient funds for these purposes.
If necessary, the governing body of the local government may provide sufficient funds for these purposes.
Eng HB 3517 §6-9D-9.
§6-9D-11.
(a) Upon the occurrence of a fiscal emergency in any local government, there is established, with respect to that local government, a supervising body to perform essential governmental functions of the local government to be known as the “financial planning and supervision committee for (name of local government)”, which, in that name, may exercise all authority vested in such a committee by this article.
(a) Upon the occurrence of a fiscal emergency in any local government, there is established, with respect to that local government, a supervising committee to perform essential Enr HB 3517 governmental functions of the local government to be known as the “financial planning and supervision committee for (name of local government)”, which, in that name, may exercise all authority vested in such a committee provided by this article.
Eng HB 3517 §6-9D-10.
§6-9D-12.
(1) Take the necessary corrective action recommended by the State Auditor or designee pursuant to §6-9D-2A of this code to present financial records in an auditable condition.
Enr HB 3517 (1) Take the necessary corrective action recommended by the State Auditor or designee pursuant to §6-9D-3 of this code to present financial records in an auditable condition.
(2) Complete and mandatory recommendations imposed by the State Auditor or designee pursuant to §6-9D-6a of this code.
(2) Complete any recommendations imposed by the State Auditor or designee pursuant to §6-9D-7 of this code.
(3) Provide a financial recovery plan in accordance with §6-9D-6b of this code.
(3) Provide a financial recovery plan in accordance with §6-9D-7 of this code.
(5) Comply with the financial recovery plan instituted by a financial planning and supervision committee created pursuant to §6-9D-9 of this code.
(5) Comply with the financial recovery plan instituted by a financial planning and supervision committee created pursuant to §6-9D-11 of this code.
(b) If local government officials fail to adequately comply with the provision of this section, the State Auditor or designee may institute appropriate recourse measures pursuant to the rules authorized by §6-9D-9 of this code.
(b) If local government officials fail to adequately comply with the provision of this section, the State Auditor or designee may institute appropriate recourse measures pursuant to the rules authorized by §6-9D-11 of this code.
§6-9D-11.
§6-9D-13.
Prohibition against relief under federal bankruptcy laws.
Prohibition against relief under federal bankruptcy laws unless authorized.
(a) No county, municipality, school district, authority, division, instrumentality, political subdivision, or public body corporate created under the Constitution or laws of this state shall be authorized to file a petition for relief from payment of its debts as they mature or a petition for composition of its debts under any federal statute providing for such relief or composition or otherwise to take advantage of any federal statute providing for the adjustment of debts of political subdivisions and public agencies and instrumentalities without the express, written permission of the State Auditor and Governor.
(a) No county, municipality, school district, authority, division, instrumentality, political subdivision, or public body corporate created under the Constitution or laws of this state shall be authorized to file a petition for relief from payment of its debts as they mature or a petition for composition of its debts under any federal statute providing for such relief or composition or otherwise to take advantage of any federal statute providing for the adjustment of debts of political subdivisions and public agencies and instrumentalities without the express, written permission of the State Auditor.
(b) No chief executive, mayor, board of commissioners, city council, board of trustees, or other governmental officer, governing body, or organization shall be empowered to cause or authorize the filing by or on behalf of any county, municipality, school district, authority, division, Eng HB 3517 instrumentality, political subdivision, or public body corporate created under the Constitution or laws of this state of any petition for relief from payment of its debts as they mature or a petition for composition of its debts under any federal statute providing for such relief or composition or otherwise to take advantage of any federal statute providing for the adjustment of debts of political subdivisions and public agencies and instrumentalities without the express, written permission of the State Auditor and Governor.
(b) No chief executive, mayor, board of commissioners, city council, board of trustees, or other governmental officer, governing body, or organization shall be empowered to cause or authorize the filing by or on behalf of any county, municipality, school district, authority, division, instrumentality, political subdivision, or public body corporate created under the Constitution or laws of this state of any petition for relief from payment of its debts as they mature or a petition Enr HB 3517 for composition of its debts under any federal statute providing for such relief or composition or otherwise to take advantage of any federal statute providing for the adjustment of debts of political subdivisions and public agencies and instrumentalities without the express, written permission of the State Auditor.
§6-9D-12.
§6-9D-14.
MUNICIPAL CORPORATIONS.
MUNICIPALCORPORATIONS.
Part I.
PART I.
Forfeiture of Charter or Certificate of Incorporation.
ORFEITURE OFC HARTER OR CERTIFICATE OFNCORPORATION .
Eng HB 3517 §8-35-1.
Enr HB 3517 §8-35-1.
(a) Any municipality heretofore incorporated or which shall hereafter be incorporated and which has no substantial indebtedness, and which shall fail for one year to exercise its corporate powers and privileges, or which has not 20 qualified voters, or in which there were not 20 legal votes cast at its last election, or the population of which shall be reduced below 100 persons and so remain for six consecutive months, shall in either event have its charter or certificate of incorporation and all rights, powers and privileges so conferred upon such municipality forfeited and declared dissolved.
(a) Any municipality heretofore incorporated or which shall hereafter be incorporated which shall fail for one year to exercise its corporate powers and privileges, or which has not 20 qualified voters, or in which there were not 20 legal votes cast at its last election, or the population of which shall be reduced below 100 persons and so remain for six consecutive months, shall in either event have its charter or certificate of incorporation and all rights, powers and privileges so conferred upon such municipality forfeited and declared dissolved.
(b) The county court commission of the county wherein any such municipality or the major portion of the territory thereof is located shall have jurisdiction to hear and determine all matters relating to the forfeiture of such charter or certificate of incorporation, upon the petition of one or more of its inhabitants qualified voters, or the State Auditor, and to dissolve such municipal corporation.
(b) The county commission of the county wherein any such municipality or the major portion of the territory thereof is located shall have jurisdiction to hear and determine all matters relating to the forfeiture and dissolution of such charter or certificate of incorporation, upon the petition of one or more of its qualified voters, or the State Auditor, and to dissolve such municipal corporation.
Ten days’ notice of the filing of such petition with the clerk of the county court commission of such county, served upon the mayor and recorder, or on the last mayor or recorder thereof, shall be sufficient notice upon which such county court commission shall so act, and upon the proper proof of the allegations of such petition, any such charter or certificate of incorporation shall be declared forfeited and the municipal corporation dissolved and all debts of such municipality shall be ordered paid and the forfeiture and dissolution shall not become effective until when such debts have been paid or when the State Auditor has fully exercised the actions authorized by §8-35-4 of said code.
Ten days’ notice of the filing of such petition with the clerk of the county commission of such county, served upon the mayor and recorder, or on the last mayor or recorder thereof, shall be sufficient notice upon which such county commission shall so act, and upon the proper proof of the allegations of such petition, any such charter or certificate of incorporation shall be declared forfeited and the municipal corporation dissolved and all debts of such municipality shall be ordered paid and the forfeiture and dissolution shall become effective when such debts have been paid or when the State Auditor has fully exercised the actions authorized by §8-35-4 of said code.
Upon such forfeiture and dissolution all interest of such municipality in corporate funds, if any, in excess of the amounts required to pay corporate debts shall be and the same is hereby transferred to and vested in the State of West Virginia, to be controlled by the State Auditor.
If the territory so incorporated, or a major part thereof, either in area or in population, shall, however, within one year next after such declaration of forfeiture and dissolution by the county court be reincorporated under this chapter, then the Auditor of the State Eng HB 3517 of West Virginia shall convey unto such new municipality all of the rights of the State of West Virginia in and to the corporate property, moneys, claims, demands and taxes collected or uncollected, of the former municipal corporation so dissolved.
Part II.
Enr HB 3517 PART II.
Voluntary Dissolution of Class III City or Class IV Town or Village Municipalities.
OLUNTARY DISSOLUTION OF M UNICIPALITI.S §8-35-2.
§8-35-2.
Voluntary dissolution of municipal corporation.
Voluntary dissolution of Class III city or Class IV town or village municipal corporation.
The petition shall be in writing, set forth the reasons for the request to dissolve the municipality, and be signed by not less than 25 percent of the legal voters of the municipality as shown by the last preceding general election.
The petition shall be in writing, set forth the reasons for the request to dissolve the municipality, and be signed by not less than 25 percent of the qualified voters of the municipality as shown by the last preceding statewide general election.
(b) Upon the filing of a qualified petition for dissolution of twenty-five or more percent of the legal voters of any Class III city or Class IV town or village municipal corporation, the governing body thereof shall submit to the qualified voters of such municipal corporation at the next regular municipal election, or at a special municipal election called for that purpose, the question of continuing or dissolving such municipal corporation.
(b) Upon the filing of a qualified petition for dissolution of any municipal corporation, the governing body thereof shall submit to the qualified voters of such municipal corporation at the next regular municipal election, or at a special municipal election called for that purpose, the question of continuing or dissolving such municipal corporation.
The governing body shall provide written notice of Eng HB 3517 the election to the State Auditor within five days of determining an election date.
The governing body shall provide written notice of the election to the State Auditor within five days of determining an election date.
/ For Continuance of Municipal Corporation / For Dissolution of Municipal Corporation Shall the municipality of ______ (name of municipality subject to dissolution) be dissolved? ( ) Yes.
Shall the municipality of ______ (name of municipality subject to dissolution) be dissolved? ( ) Yes.
(c) The dissolution election shall be conducted in accordance with applicable election laws.   (d) If a majority of the legal votes cast be for dissolution, then such municipal corporation shall by operation of law be dissolved upon termination of the term of the governing body then in office:
(c) The dissolution election shall be conducted in accordance with applicable election laws.
Provided, That all debts or other obligations outstanding against such municipal corporation shall be settled in full at the expiration of six (6) months from the date of the election on the question.
(d) If a majority of the legal votes cast be for dissolution, then such municipal corporation shall by operation of law be dissolved at the expiration of six (6) months from the date of the election on the question.
The State Auditor shall promptly conduct an examination under the authority granted under §6-9-1 et seq.
The State Auditor shall promptly conduct an examination under the Enr HB 3517 authority granted under §6-9-1 et seq.
If a majority of the legal votes cast be for continuance, then such municipal corporation shall continue in existence unless and until dissolved at some later date under the provisions of section one of this article or this section two.:
If a majority of the legal votes cast be for continuance, then such municipal corporation shall continue in existence unless and until dissolved at some later date under the provisions of this section or §8-35-1 of this code.
Provided, however, That another election under the provisions of this section two shall not be held within two years of the last such election.
PART IIINVOLUNTARY D ISSOLUTION OFMUNICIPALC ORPORATION .
Any election under the provisions of this section two shall be held, conducted and superintended and the result thereof ascertained, certified, returned and canvassed in the same manner and by the same persons as an election for municipal officers of such municipal corporation.
Part III.
Involuntary Dissolution of Municipal Corporation.
Eng HB 3517 (a) The Prosecuting Attorney for the county where such municipality or the major portion of the territory thereof is located, or the State Auditor, may petition for involuntary dissolution of a municipality when the government of a municipality ceases to function by reason of the following:
(a) The Prosecuting Attorney for the county where such municipality or the majority portion of the territory thereof is located, or the State Auditor, may petition for involuntary dissolution of a municipality when the government of a municipality ceases to function by reason of the following:
(2) A majority of all the members of the governing body fail to qualify for two successive general municipal elections.
and (2) A majority of all the members of the governing body fail to qualify for two successive general municipal elections.
(b) The petition requesting involuntary dissolution shall be filed in the circuit court in the county in which such municipality or the major portion of the territory thereof is located.
(b) The petition requesting involuntary dissolution shall be filed in the circuit court in the county in which such municipality or the majority portion of the territory thereof is located.
(c) Upon the filing of a petition for the involuntary dissolution of a municipality, the circuit court shall fix a date for a hearing on the request and written notice shall be provided to the State Auditor, and the Prosecuting Attorney for the county where such municipality or the major portion of the territory thereof is located, within five days.
(c) Upon the filing of a petition for the involuntary dissolution of a municipality, the circuit court shall fix a date for a hearing on the request and written notice shall be provided to the State Auditor, and the Prosecuting Attorney for the county where such municipality or the majority portion of the territory thereof is located, within five days.
The Prosecuting Attorney for the county in which such municipality or the major portion of the territory thereof is located shall give at least 20 days’ notice of the hearing by publication in a newspaper of general circulation in the municipality, and by posting copies of the notice in a manner consistent with court proceedings.
The petitioner shall give at least 20 days’ notice of the hearing by publication as a Class II legal advertisement in compliance with the provision of §59- 3-1 et seq.
of this code, and the publication area for such publication shall be in a newspaper of general circulation in the municipality, and by posting copies of the notice in a manner consistent Enr HB 3517 with court proceedings.
If the court finds that the government of the municipality has ceased to function because of the reasons listed in Eng HB 3517 subsection (a), it shall enter an order for dissolution of the municipality.
If the court finds that the government of the municipality has ceased to function because of the reasons listed in subsection (a), it shall enter an order for dissolution of the municipality.
Part IV.
PART IV.
Disposition of Property, Debts And Liabilities.
ISPOSITION OFPROPERTY , EBTS AND LIABILITI.S §8-35-4.
§8-35-4.
(a) Upon declaration of the forfeiture of the charter or certificate of incorporation by the county commission, or the certification of the election for voluntary dissolution, or upon an order by the circuit court for involuntary dissolution, as set forth in this article, the State Auditor shall by operation of law, act as special receiver for the dissolved municipality.
(a) 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, as set forth in this article, the State Auditor shall by operation of law, act as special receiver for the dissolved municipality.
(4) Initiate necessary and proper bankruptcy proceedings, including, but not limited to filing a petition in the name of the municipal corporation under Chapter 9 of Title 11 of the United States Code, and to act on the municipality’s behalf in such proceeding, to distribute assets to claimants or creditors, and;
(4) Initiate necessary and proper bankruptcy proceedings, including, but not limited to filing a petition in the name of the municipal corporation under Chapter 9 of Title 11 of the United States Enr HB 3517 Code, and to act on the municipality’s behalf in such proceeding, to distribute assets to claimants or creditors;
(5) Any such actions as the State Auditor may deem necessary and appropriate to wind up the affairs of the municipality.
(5) Any such actions as the State Auditor may deem necessary and appropriate to wind up the affairs of the municipality;
(6) Any excess of amounts required to pay corporate debts shall be maintained in a special fund titled “municipal dissolution account” to be controlled by the State Auditor to offset the costs Eng HB 3517 associated with conducting examinations and legal expenses pursuant to the provisions of this Article.
(6) Any excess of amounts required to pay corporate debts shall be maintained in a special fund titled “municipal dissolution account” to be controlled by the State Auditor to offset the costs associated with conducting examinations and legal expenses pursuant to the provisions of this article;
(7) Further powers and duties of the State Auditor acting as a special receiver shall be set out in rules authorized pursuant to the provisions of this article.
These shall include, but are not limited to:
(A) The manner in which the State Auditor acting as a special receiver may gain access to and control over bank account and public funds;
(B) The manner in which the State Auditor acting as a special commissioner signs or records deeds, releases, or contracts;
(C) The manner in which the State Auditor acting as a special commissioner transfers or receives title to real or personal property;
(D) The manner in which the State Auditor acting as a special commissioner executes legally binding documents on behalf of a dissolved local government.
(c) In the event that deposits and investments belonging to the municipality are not sufficient to satisfy its debts and liabilities, then the State Auditor may initiate the liquidation of the dissolved municipality’s property pursuant to §8-35-3 of this code.
Enr HB 3517 (c) In the event that deposits and investments belonging to the municipality are not sufficient to satisfy its debts and liabilities, then the State Auditor may initiate the liquidation of the dissolved municipality’s property pursuant to §8-35-3 of this code.
(b) The provisions of subsection (a) of this section concerning sale as public auction shall not apply to the State Auditor selling or disposing of the property for public use to:
(b) The provisions of subsection (a) of this section concerning sale at public auction shall not apply to the State Auditor selling or disposing of the property for public use to:
or Eng HB 3517 (3) Any authority, commission, instrumentality, or agency established by act of the State of West Virginia.
or (3) Any authority, commission, instrumentality, or agency established by act of the State of West Virginia.
(d) No officer or employee of the State Auditor or the Prosecuting Attorney for the county where such municipality or the major portion of the territory thereof is located, or his or her immediate family, may purchase or acquire any property municipal assets disposed of pursuant to this section.
(d) No officer or employee of the State Auditor or the Prosecuting Attorney for the county where such municipality or the majority portion of the territory thereof is located, or his or her immediate family, may purchase or acquire any property municipal assets disposed of pursuant to this section.
20
Enr HB 3517 The Clerk of the House of Delegates and the Clerk of the Senate hereby certify that the foregoing bill is correctly enrolled.
...............................................................
Clerk of the House of Delegates ...............................................................
Clerk of the Senate Originated in the House of Delegates.
In effect 90 days from passage.
...............................................................
Speaker of the House of Delegates ...............................................................
President of the Senate __________ The within is ................................................
this the...........................................
Day of ..........................................................................................................., 2025.
.............................................................
Governor 21
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Action History

  1. Chapter 189, Acts, Regular Session, 2025

  2. Approved by Governor 4/30/2025

  3. To Governor 4/22/2025

  4. Approved by Governor 4/30/2025 - House Journal

  5. Approved by Governor 4/30/2025 - Senate Journal

  6. To Governor 4/22/2025 - Senate Journal

  7. To Governor 4/22/2025 - House Journal

  8. Completed legislative action

  9. Communicated to House

  10. Senate concurred in House amendments and passed bill (Roll No. 593)

  11. House Message received

  12. Communicated to Senate

  13. House concurred in Senate amend with amend, passed bill (Roll No. 613)

  14. House received Senate message

  15. Senate requests House to concur

  16. Passed Senate with amended title (Roll No. 513)

  17. Read 3rd time

  18. On 3rd reading

  19. Committee amendment adopted (Voice vote)

  20. Read 2nd time

  21. On 2nd reading

  22. Read 1st time

  23. Immediate consideration

  24. Reported do pass, with amendment and title amendment

  25. To Finance

  26. To Finance

  27. Introduced in Senate

  28. Communicated to Senate

  29. Passed House (Roll No. 365)

  30. Read 3rd time

  31. On 3rd reading, Special Calendar

  32. Read 2nd time

  33. On 2nd reading, Special Calendar

  34. On 1st reading, Special Calendar

  35. Read 1st time

  36. Do pass

  37. Originating in House Judiciary

  38. Introduced in House

  39. Filed for introduction

Sponsors

Sponsorship breakdown

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1 sponsors · 2 co-sponsors · 149 not signed on

Sponsors (1)

Co-sponsors (2)

Not signed on (149)

149 members have not signed on to this bill.

Show all 149 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

PASSAGE-SENATE AMENDED HB

Passed 94 Yea · 1 Nay · 5 Other
Party YeaNayPresentNot Voting
Republican 81004
Unaffiliated 5100
Democrat 8001
Total 94105
% of votes cast 94%1%0%5%
How each member voted (100)
Member Party Vote
Devault — Yea
Flanigan — Yea
Linville — Yea
Steele — Yea
Kump — Nay
Clark, T — Yea
Anitra Hamilton Democrat Yea
Evan Hansen Democrat Yea
Hollis Lewis Democrat Yea
John Williams Democrat Yea
Kayla Young Democrat Yea
Mike Pushkin Democrat Yea
Rick Garcia Democrat Not Voting
Sean Hornbuckle Democrat Yea
Shawn Fluharty Democrat Yea
Adam Burkhammer Republican Yea
Adam Vance Republican Yea
Andy Shamblin Republican Yea
Betsy Kelly Republican Yea
Bill Ridenour Republican Yea
Bob Fehrenbacher Republican Yea
Bryan Smith Republican Yea
Bryan Ward Republican Yea
Carl "Bill" Roop Republican Yea
Carl Martin Republican Not Voting
Charles Sheedy Republican Yea
Chris Phillips Republican Yea
Christopher W. Toney Republican Yea
Chuck Horst Republican Yea
Clay Riley Republican Yea
D. Rolland Jennings Republican Yea
Dana Ferrell Republican Yea
Dave Foggin Republican Yea
David Cannon Republican Yea
David Green Republican Yea
David McCormick Republican Yea
Dean Jeffries Republican Yea
Doug Smith Republican Not Voting
Elias Coop-Gonzalez Republican Yea
Eric Brooks Republican Yea
Erica Moore Republican Yea
Evan Worrell Republican Yea
Gary G. Howell Republican Yea
Geno Chiarelli Republican Yea
George Miller Republican Yea
George Street Republican Yea
Henry Dillon Republican Yea
Ian T. Masters Republican Yea
James Robert "JB" Akers II Republican Yea
Jarred Cannon Republican Yea
Jeff Campbell Republican Yea
Jeff Eldridge Republican Yea
Jeffrey Stephens Republican Yea
Jim Butler Republican Yea
Jimmy Willis Republican Yea
Joe Ellington Republican Yea
Joe Funkhouser Republican Yea
Joe Parsons Republican Yea
Joe Statler Republican Yea
John Paul Hott Republican Yea
Jonathan Kyle Republican Yea
Jonathan Pinson Republican Yea
Jordan Bridges Republican Yea
Jordan Maynor Republican Yea
Josh Holstein Republican Yea
Kathie Hess Crouse Republican Yea
Keith Marple Republican Yea
Laura Kimble Republican Yea
Lisa White Republican Yea
Lori Dittman Republican Yea
Margitta Mazzocchi Republican Yea
Mark Dean Republican Yea
Mark Zatezalo Republican Yea
Marshall W. Clay Republican Yea
Marty Gearheart Republican Yea
Matthew Rohrbach Republican Yea
Michael Amos Republican Yea
Michael Hite Republican Yea
Michael Hornby Republican Not Voting
Mickey Petitto Republican Yea
Pat McGeehan Republican Not Voting
Patrick Lucas Republican Yea
Phil Mallow Republican Yea
Ray Canterbury Republican Yea
Rick Hillenbrand Republican Yea
Roger Hanshaw Republican Yea
Roy Cooper Republican Yea
Ryan Browning Republican Yea
S. Chris Anders Republican Yea
Sarah Drennan Republican Yea
Scot C. Heckert Republican Yea
Stanley Adkins Republican Yea
Trenton Barnhart Republican Yea
Tresa Howell Republican Yea
Tristan Leavitt Republican Yea
Vacant1 Republican Yea
Vernon Criss Republican Yea
Walter Hall Republican Yea
Wayne Clark Republican Yea
William Anderson Republican Yea

Official roll call →

Passage

Passed 34 Yea · 0 Nay
Party YeaNayPresentNot Voting
Republican 29000
Unaffiliated 3000
Democrat 2000
Total 34000
% of votes cast 100%0%0%0%
How each member voted (34)
Member Party Vote
STUART — Yea
BOLEY — Yea
MR PRESIDENT — Yea
Joey Garcia Democrat Yea
Mike Woelfel Democrat Yea
Amy Grady Republican Yea
Anne B. Charnock Republican Yea
Ben Queen Republican Yea
Bill Hamilton Republican Yea
Brian Helton Republican Yea
Charles H. Clements Republican Yea
Chris Rose Republican Yea
Craig A. Hart Republican Yea
Darren Thorne Republican Yea
Eric Tarr Republican Yea
Glenn Jeffries Republican Yea
Jack Woodrum Republican Yea
Jason Barrett Republican Yea
Jay Taylor Republican Yea
Laura Wakim Chapman Republican Yea
Mark R. Maynard Republican Yea
Mike Azinger Republican Yea
Mike Oliverio Republican Yea
Patricia Rucker Republican Yea
Patrick Martin Republican Yea
Robbie Morris Republican Yea
Rollan A. Roberts Republican Yea
Rupie Phillips Republican Yea
Ryan Weld Republican Yea
Scott Fuller Republican Yea
T. Kevan Bartlett Republican Yea
Tom Takubo Republican Yea
Tom Willis Republican Yea
Vince Deeds Republican Yea

Official roll call →

PASSAGE

Passed 97 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Republican 83002
Democrat 8001
Unaffiliated 6000
Total 97003
% of votes cast 97%0%0%3%
How each member voted (100)
Member Party Vote
Flanigan — Yea
Kump — Yea
Linville — Yea
Steele — Yea
Devault — Yea
Clark, T — Yea
Anitra Hamilton Democrat Yea
Evan Hansen Democrat Yea
Hollis Lewis Democrat Not Voting
John Williams Democrat Yea
Kayla Young Democrat Yea
Mike Pushkin Democrat Yea
Rick Garcia Democrat Yea
Sean Hornbuckle Democrat Yea
Shawn Fluharty Democrat Yea
Adam Burkhammer Republican Yea
Adam Vance Republican Yea
Andy Shamblin Republican Yea
Betsy Kelly Republican Yea
Bill Ridenour Republican Yea
Bob Fehrenbacher Republican Yea
Bryan Smith Republican Yea
Bryan Ward Republican Yea
Carl "Bill" Roop Republican Yea
Carl Martin Republican Yea
Charles Sheedy Republican Yea
Chris Phillips Republican Yea
Christopher W. Toney Republican Yea
Chuck Horst Republican Yea
Clay Riley Republican Yea
D. Rolland Jennings Republican Yea
Dana Ferrell Republican Yea
Dave Foggin Republican Yea
David Cannon Republican Yea
David Green Republican Yea
David McCormick Republican Yea
Dean Jeffries Republican Yea
Doug Smith Republican Yea
Elias Coop-Gonzalez Republican Yea
Eric Brooks Republican Yea
Erica Moore Republican Yea
Evan Worrell Republican Yea
Gary G. Howell Republican Yea
Geno Chiarelli Republican Yea
George Miller Republican Yea
George Street Republican Yea
Henry Dillon Republican Yea
Ian T. Masters Republican Yea
James Robert "JB" Akers II Republican Yea
Jarred Cannon Republican Yea
Jeff Campbell Republican Yea
Jeff Eldridge Republican Yea
Jeffrey Stephens Republican Yea
Jim Butler Republican Yea
Jimmy Willis Republican Yea
Joe Ellington Republican Yea
Joe Funkhouser Republican Yea
Joe Parsons Republican Yea
Joe Statler Republican Yea
John Paul Hott Republican Yea
Jonathan Kyle Republican Yea
Jonathan Pinson Republican Yea
Jordan Bridges Republican Yea
Jordan Maynor Republican Yea
Josh Holstein Republican Yea
Kathie Hess Crouse Republican Yea
Keith Marple Republican Yea
Laura Kimble Republican Yea
Lisa White Republican Yea
Lori Dittman Republican Yea
Margitta Mazzocchi Republican Yea
Mark Dean Republican Yea
Mark Zatezalo Republican Yea
Marshall W. Clay Republican Yea
Marty Gearheart Republican Yea
Matthew Rohrbach Republican Yea
Michael Amos Republican Yea
Michael Hite Republican Yea
Michael Hornby Republican Yea
Mickey Petitto Republican Yea
Pat McGeehan Republican Yea
Patrick Lucas Republican Yea
Phil Mallow Republican Not Voting
Ray Canterbury Republican Yea
Rick Hillenbrand Republican Yea
Roger Hanshaw Republican Yea
Roy Cooper Republican Yea
Ryan Browning Republican Yea
S. Chris Anders Republican Yea
Sarah Drennan Republican Yea
Scot C. Heckert Republican Yea
Stanley Adkins Republican Yea
Trenton Barnhart Republican Yea
Tresa Howell Republican Yea
Tristan Leavitt Republican Yea
Vacant1 Republican Not Voting
Vernon Criss Republican Yea
Walter Hall Republican Yea
Wayne Clark Republican Yea
William Anderson Republican Yea

Official roll call →

Subjects

Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 3517?
HB 3517 is sponsored by James Robert "JB" Akers II (Republican), Roger Hanshaw (Republican), and Matthew Rohrbach (Republican).
What is the current status of HB 3517?
This bill has been enacted into law. Introduced March 31, 2025. Enacted.
Where can I track HB 3517?
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