SB 396 — Creating WV Job training and Placement Act

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee FISCALSubstitute for Senate Bill 396 NOTE By SenatorSenators MorrisMorris, [IntroducedDeeds, and Queen [Reported January 15,28, 2026;2026, from the Committee on the Workforce] CS for SB 396 A BILL to amend the Code of West Virginia, 1931, as amended, by adding a new article, designated §11-13NN-1, §11-13NN-2, §11-13NN-3, and §11-13NN-4, relating to the West Virginia Job Training and Placement Act;

referred to the Committee on the Workforce;

and then to the Committee on Finance] Intr SB 396 2026R1788 A BILL to amend the Code of West Virginia, 1931, as amended, by adding a new article, designated §11-13NN-1, §11-13NN-2, §11-13NN-3, and §11-13NN-4, relating to the West Virginia Job Training and Placement Act;

settingproviding qualifications for certification of certain salesretailers taxas retention;qualified organizations;

andauthorizing permittingsales thetax promulgationrevenue ofretention rules.by qualified organizations;

setting limitations on tax revenue retention;

providing for use of tax revenue retention by qualified organizations to provide job training and placement services;

requiring reporting;

providing for revocation of qualified organization certification;

providing for renewal of qualified organization certification;

and providing for rulemaking.

(a) This article maybecitedas"Westmaybecitedasthe"West Virginia Job Training and Placement Act".

To provide greater access to job training and placement services, and thereby increase workforce participation, there is hereby provided to qualifying organizations certain tax credits against the taxestax imposed underby §11-1et§11-15-1 seq.ofet thisseq. code.

Qualifying organizations shall use the value of saidthis creditcode. for job training andplacement services.

Qualifying organizations shall use the value of said credits for jobtraining andplacement services as provided in this article.

DefinitionsDefinitions. (a) General.

(a) General.

-– 1 CS for SB 396 "Consumer Sales and Service Tax" means and is limited to the consumer sales and service tax as defined by §11-15-1 et seq.

Intr SB 396 2026R1788 "Workforce training community center" means a retailer that is exempt from the payment of federal income taxes under Section 501(a), Internal Revenue Code of 1986, by being listed as an exempt organization under Section 501(c)(3) of that code;

collects and remits to the Departmentdepartment sales taxes imposed on the sale of donated goods;

has significant experience in assisting persons with adisabilities disability or other barriers to employment with job training and placement services and uses a portion of its revenue to provide those services;

If the comptroller determines that the applicant meets the requirements to be a workforce training community center, as defined by §11- 13NN-2 of this codecode, , the department shall certify the applicant as a qualifying organization.

– There is allowed or allowable to qualifying organizationsorganizations, as defined under §11-13NN-2 of this code, a retention of the taxestax imposed by §11-15-1 et seq.

of this code.code as provided in this section.

– Notwithstanding any other provision of this code, a qualifying organization is not required to remit to the department and may retain 75 percent of theall salesConsumer taxesSales and Service Tax revenue collected after the first $1 million imposedof undersaid thisrevenue chapter and collected by the organization on sales made during the period in which the qualifying organization holds a certification under subsection (a) of this section.

The qualifying organization must show the 2 CS for SB 396 amount retained on a tax report required by this chapter in addition to any other information required by the department.

(e) Application of retained consumer sales and useservice tax.

– Except as provided by Intrsubsections SB(f) 396and 2026R1788 subsection (g) of this section, a qualifying organization shall use moneysales tax revenue retained as authorized by subsection (c) of this section only to:

(1) Provide a variety of job training and placement services to a person with a disability or other barriers to employment, includingwhich barriers may include but are not limited to low educational attainment, a criminal record, homelessness, andor veteran status;

– In its first year of certification, a qualifying organization may use moneysales tax revenue retained as authorized by subsection (c) of this section to improve its job training and placement infrastructure and otherwise prepare to provide services described by subsection (e) of this section.

– After the period described by subsection (f), for every $10,000 in sales tax collectionsrevenue retained under this section, a qualifying organization shall:

and 3 CS for SB 396 (2) Successfully place an average of at least 2.25 people in jobs.

– Subject to subsection (i) of this section, a retailer that is certified as a qualifying organization retainsshall retain that certification untilfor thethree thirdyears anniversaryfollowing of the date of certification.

At any time after the period described by subsection (f) of this section during the certification period, the department may, and at the conclusion of the certification period, the department shall, require the qualifying organization to demonstrate, in a manner prescribed by Intrthe SBdepartment 396in 2026R1788rules thepromulgated department,pursuant to §11-13NN-4 of this code, that the qualifying organization:

(1) Has not used any tax collectionsrevenue retained under this section for a purpose other than a purpose described by subsection (e) of this section after the first year of certification;

– The department, after written notice and a hearing, may revoke a certification issued to a retailer that fails to comply with this chapterarticle or a rule adopted under this chapter.article.

– The comptroller shall require an organization whose certification was revoked under subsection (i) of this section to remit an amount of tax collectionsrevenue retained under this section in the comptroller's discretion, but not to exceed $3,333 per person not successfully placed in a job in accordance with subsection (g)(2) of this section.

-– A retailer that is certified as a qualifying organization may apply to renew the 4 CS for SB 396 certification.

The comptroller may renew a retailer's certification only if the retailer has complied with all requirements imposed by this article during the applicant's certification period and with any other requirements for renewal as prescribed by rules adopted by the comptroller.department.

of this code explainingnecessary andto implementingimplement this article.