Building Our Future: 2019 Pre-legislative Conference

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2 The West Virginia Business & Industry Council presents Building Our Future: 2019 Pre-legislative Conference Charleston Coliseum and Convention Center #wvbic December 11, 2018

3 Thank you to our sponsors! Gold Sponsor Silver Sponsor Bronze Sponsors West Virginia Business & Industry Council

4 Welcome and Introductions Chris Hamilton Chairman, WVBIC West Virginia Business & Industry Council

5 Building Our Future: 2019 Pre-Legislative Conference Chief of Staff Mike Hall Gov. Jim Justice West Virginia Business & Industry Council

6 Building Our Future: 2019 Pre-Legislative Conference Senate President Mitch Carmichael West Virginia Business & Industry Council

7 Building Our Future: 2019 Pre-Legislative Conference House Speaker Roger Hanshaw West Virginia Business & Industry Council

8 Building Our Future: 2019 Pre-Legislative Conference Senate Finance Chairman Craig Blair West Virginia Business & Industry Council

9 Building Our Future: 2019 Pre-Legislative Conference House Judiciary Chairman John Shott West Virginia Business & Industry Council

10 Building Our Future: 2019 Pre-Legislative Conference Brian Dayton West Virginia Chamber of Commerce West Virginia Business & Industry Council

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12 1992

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14 2008

15 2016

16 The 2018 Midterms! The first midterms in West Virginia since 1930 featuring GOP control of the White House, U.S. Senate, U.S. House, Governor s Office, State Senate and House of Delegates

17 2018 U.S. Senate Election

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22 Congressional Elections

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29 2014 Red Wave vs Blue Wave

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34 Legislative Elections

35 2018 WV Senate Elections

36 WV Senate Democrats +2 2 GOP Incumbents Defeated Ryan Ferns - 1 st (-2,012 votes) Ed Gaunch - 8 th (-165 votes)

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39 WV House Changes +5 Dems Dems take 10 GOP Seats, 7 GOP Incumbents Defeated Mark Zatezalo (1 st ) Charlotte Lane (35 th ) Guy Ward (50 th ) Joe Statler (51 st ) Cindy Frich (51 st ) Jill Upson (65 th ) Riley Moore (67 th ) GOP takes 5 DEM Seats, 4 DEM Incumbents Defeated h Scott Brewer (13 th ) Ricky Moye (29 th ) Dana Lynch (44 th ) Richard Iaquinta (48 th )

40 Other Factors

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42 West Virginia Supreme Court

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45 Unions and IE Spending

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48 Amendment 1 Vs.

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51 Amendment 1 Voted Down in 11 Counties Monongalia 38% - 62% (-7,232) Jefferson 44% - 55% (-2,621) Kanawha 45% - 55% (-6,597) Pocahontas 47% - 53% (-187) Roane 47% - 53% (-224) Calhoun 48% - 52% (-97) Greenbrier 48% - 52% (-481) Cabell 48% - 52% (-1,077) Marion 49% - 51% (-435) Randolph 49% - 51% (-198) Wetzel 49% - 51% (-42) No Vote Advantage = -19,191

52 Amendment 1 11 Strongest Counties Grant 67% - 33% (1,194) Tyler 63% - 37% (714) Doddridge 62% - 38% (541) Ritchie 62% - 38% (725) Mingo 61% - 39% (1,417) Wyoming 61% - 39% (1,232) Raleigh 60% - 40% (4,768) Mineral 59% - 41% (1,578) Monroe 58% - 42% (796) Clay 58% - 42% (360) Logan 58% - 42% (1,441) Yes Vote Advantage = 14, % in only 7 Counties

53 How Did Amendment 1 Effect Legislative Races?

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56 Conclusions

57 Questions?

58 Building Our Future: 2019 Pre-Legislative Conference Danielle Waltz US Chamber of Commerce Institute for Legal Reform West Virginia Business & Industry Council

59 Building Our Future: 2019 Pre-Legislative Conference WV Business & Industry Council Policy Roundup West Virginia Business & Industry Council

60 West Virginia Business & Industry Council Mission: The West Virginia Business & Industry Council works to improve the state s business climate. Our members are foot soldiers for change the eyes, ears, minds and voices fighting as one for a bright West Virginia future. Policy Priorities: Job Development: We need effective, accessible education to produce graduates who are ready for the 21st Century workforce; Legal Fairness: We encourage state policy leaders to continue to make changes that will make West Virginia s legal system as competitive, or more so, than surrounding states; Infrastructure Improvement: State government should make every effort to continue to make short- and long-term infrastructure improvements through the Roads to Prosperity program and other financing plans. Fiscal Responsibility: West Virginia should continue its prudent management of the state s finances while at the same time keeping tax fairness in mind by making changes that make the state a more competitive jurisdiction for business growth and attraction. West Virginia Business & Industry Council

61 American Council of Engineering Companies of WV Mission: The American Council of Engineering Companies of West Virginia (ACECWV) is devoted to the advancement of the practice of consulting engineering, to the promotion of private enterprise, protection of public welfare, and to the improvement of the economic status of the professional engineers engaged in the practice of consulting engineering. Policy Priorities: Infrastructure Water and sewer development and enhancement Transportation West Virginia Business & Industry Council

62 Associated Builders & Contractors of WV Mission: ABC West Virginia promotes free enterprise and open competition within the construction industry and creating opportunities for employees, employers, and investors based solely on merit. Policy Priorities: Education Reform & Workforce Development: Quality public and private education from kindergarten through college plus robust vocational/technical training programs; Streamline Occupational Licensure Requirements Regulatory Reform: Promote a more prosperous, fair economic environment for all industries including commercial and industrial construction; Tax Reform: Overhaul tax system, particularly equipment and inventory tax; Paycheck Protection West Virginia Business & Industry Council

63 Contractors Association of West Virginia Mission: The Contractors Association of West Virginia represents more than 450 businesses and 20,000 employees who are "Hard at Work" building safe roads and bridges, modern schools and hospitals, and water and sewer treatment systems. Policy Priorities: Infrastructure Investment: A modern infrastructure is critical when attracting new business and development to West Virginia and to allow existing businesses to expand and grow. Workforce Development: A survey of CAWV members shows that 80 percent of contractors believe it will continue or become harder to find construction professionals and nearly 60 percent say it will be harder to find skilled craft workers. West Virginia Business & Industry Council

64 Independent Insurance Agents of West Virginia Mission: It is the mission of the IIAWV to be an unrelenting advocate for independent insurance agents and to fulfill member s needs while serving the public s best interest. Policy Priorities: Legal Reform: We would support legislation that bases damage awards on the amount actually paid with consideration given to other sources of payments received. Insurance Choice: The IIAWV believe its mission, operational strategies and legislative priorities are ultimately good for the consumer by stimulating a competitive insurance marketplace providing consumers with many insurance choices. West Virginia Business & Industry Council

65 Independent Oil & Gas Association of West Virginia Mission: The mission of the Independent Oil and Gas Association of West Virginia (IOGAWV) is to promote and protect the WV oil and natural gas producing industry. Policy Priorities: Tax Relief: Seek tax relief and reform on marginal oil and natural gas wells; Industry Growth: Ally with others to promote the increased production of oil and natural gas and to find new or enhanced downstream markets including chemical, manufacturing and power generation. West Virginia Business & Industry Council

66 West Virginia Association of Health Plans Mission: The WVAHP was formed in 2016 with the goal to assist the state of West Virginia in its transition to managed care Medicaid delivery, reduce costs of administering West Virginia s Medicaid system and improve the health of West Virginia s Medicaid recipients. Policy Priorities: A full transition of West Virginia s Medicaid program into managed care; Improved quality and oversight of West Virginia s Medicaid program; Continued development of the commercial marketplace and a level playing field for commercial and Medicaid companies; Assist with the transition of the state s foster care system into a managed care model; Grant MCOs access to West Virginia Pharmacy Board data to help combat the state s opioid epidemic. West Virginia Business & Industry Council

67 WV Association of Realtors Mission: Our goal is the promotion of regulatory and legislative action favorable to member s business successes. We do this by working closely with the West Virginia Real Estate Commission on the law and rules that impact the real estate industry. Policy Priorities: To serve and represent its members in regulatory and legislative matters; To keep the REALTOR. central to the real estate transaction; To promote member integrity, competency and responsible citizenship; And to advocate and protect private property rights and equal housing opportunity. West Virginia Business & Industry Council

68 WV Automobile & Truck Dealers Association Mission: The mission of the West Virginia Automobile & Truck Dealers Association is to encourage sound business policies, facilitate the exchange of ideas among our members, foster progressive legislation, discourage destructive, retrogressive legislation, cooperate with other motor vehicle trade associations and promote confidence, respect and good fellowship among all of those directly or indirectly engaged in the motor vehicle industry. Policy Priorities: Reduce burdens on small businesses by streamlining regulatory requirements and bringing predictability to government oversight; Address frivolous litigation trends such as green letter threats; Alleviate unfair and anti-competitive tax burdens. West Virginia Business & Industry Council

69 West Virginia Beverage Association Mission: The primary objective of the West Virginia Beverage Association is repealing the West Virginia soft drinks tax. While the industry is willing to pay its fair share in taxes to support the state's revenue base, we believe that the total tax liability must be fairly distributed among all corporate taxpayers. Policy Priorities: Soft Drink Tax: The soft drink tax is a discriminatory tax that no other state besides Arkansas imposes. It should be repealed. Bottle Bill: Bottle deposits are a costly and outmoded approach that hinders better, more efficient environmental solutions, like curbside recycling. West Virginia Business & Industry Council

70 WV Cable Telecommunications Association Mission: The West Virginia Cable Telecommunications Association represents the state s major cable broadband providers in serving West Virginia residents and businesses with advanced video, telecommunications and broadband data services through its investment of over $3 billion since 2000 to bring gigabit-level services to approximately 75 percent of the state s population. Policy Priorities: Eliminating impediments to broadband deployment and network upgrades in state regulation under consideration by the Division of Highways and the Public Service Commission. Supporting the use of state government funds to assist companies in delivering Broadband or other telecommunications services to unserved areas where governmental funds will not be used to overbuild and compete with private companies investments. Creating a business climate more conducive to technology and high-speed Broadband investments in terms of tax policy. West Virginia Business & Industry Council

71 West Virginia Chamber of Commerce Mission: West Virginia Chamber members are located in each of our 55 counties and employ more than half of the state s workforce. Most are small businesses whose vision for a healthier, more prosperous Mountain State. The West Virginia Chamber is the state s largest business advocacy organization in the state and strives to create an environment where businesses can grow and create jobs. Policy Priorities: Competitive Business Climate: We support competitive, sustainable tax system, market-driven solutions to rising healthcare costs, streamlined regulatory policies and a modernized, fair legal system; Education & the Talent Pipeline: Education and workforce development systems must be effective, agile, accountable and responsive to produce a competitive, drug-free and healthy world-class workforce; Infrastructure & Economic Development: Air service, access to high-speed broadband internet, maintenance and construction of roadways and the continuance of the state s water and sewer enhancement program are key; Good Government, Good Health and Quality of Life: Every West Virginian should have the opportunity for a life that includes a healthy environment, a quality education, a good-paying job and an efficient government. West Virginia Business & Industry Council

72 West Virginia Coal Association Mission: Our mission is to provide a unified voice representing the state s coal industry as well as increase the emphasis on coal as a reliable energy source to help America achieve energy independence. Policy Priorities: Legislation to reduce costs, improve mine efficiencies and reduce unnecessary regulatory and tax burdens. Take steps to protect our state's coal-powered electric generation fleet, enhance grid reliability and expand investment in new technologies and new markets for our coal. Continue to identify and remove or revise laws that increase the cost of doing business in West Virginia without adding to human protections, safety or environmental quality. Incentives to assist the industry in producing greater volumes of coal and enhance the marketing of West Virginia coal to domestic and foreign markets. West Virginia Business & Industry Council

73 West Virginia Farm Bureau Mission: It is our organization s goal to provide leadership, education, information, training and economic services to enhance the quality of life of our members. Policy Priorities: Promote strategies/activities to confront the ongoing regulatory challenges posed by an ever-aggressive EPA to ensure strength and continued growth in West Virginia s agricultural economy. Promote reasonable and responsible legislation regulating oil and gas exploration that will protect private property/surface owners rights and the environment, while encouraging the development of our resources. Farm Bureau supports the rights of land and mineral owners to negotiate with other parties to achieve the desired use of resources. Support updated farm nuisance lawsuit protection legislation. West Virginia Business & Industry Council

74 West Virginia Forestry Association Mission: The West Virginia Forestry Association shall encourage and promote the full development of the forest resources of the state of West Virginia by better forest land management, improved fire protection and suppression, true conservation and better utilization of woodland resources in the state. Policy Priorities: Public education to increase awareness on the multiple use of forests, the forest industry, land management and to encourage the wise and economical use of these valuable renewable resources. Encourage and solicit participation by interested landowners, land managers, and persons having a direct interest in the growth and utilization of this resource. Actively promote and assist in forest fire prevention and other forest production programs. Promote the use and principles of forest management set forth in the West Virginia Forest Practice Standards. West Virginia Business & Industry Council

75 West Virginia Health Care Association Mission: The West Virginia Health Care Association s mission is to advance the quality and professionalism of extended-care providers for the benefit of their residents and communities. We achieve our mission through education, advocacy, and leadership. Policy Priorities: Nurse shortage: West Virginia is experiencing a severe shortage of nurses. Specially trained and tested CNAs are needed to assist nurses in the distribution of certain medications to stable residents; Curb lawsuit abuse: Despite recent reforms, the number of lawsuits filed against West Virginia s nursing homes continues to grow; Fund Medicaid: Adequate funding for West Virginia s frail and elderly population is essential. On average, 75 percent of the people residing in nursing homes are Medicaid recipients. Without proper funding, these individuals cannot receive the care and services they desperately need. West Virginia Business & Industry Council

76 West Virginia Hospital Association Mission: The WVHA supports its members in achieving a strong, healthy West Virginia by providing leadership in healthcare advocacy, education, information and technical assistance, and by being a catalyst for effective change through collaboration, consensus building and a focus on desired outcomes. Policy Priorities: Hospital Payment / Medicaid Funding / Access to Care Healthcare Regulation Prior Authorization and Managed Care Healthcare Workforce Public Health / Substance Abuse/Behavioral Health West Virginia Business & Industry Council

77 West Virginia Insurance Federation Mission: To be the recognized voice of the property & casualty insurance industry by advocating for a vibrant and competitive insurance climate in West Virginia. Policy Priorities: Prohibit Third Party Litigation Lending Eliminate Need for Cancellation and Reissuance of Policies at Renewal Collateral Source / Phantom Damages West Virginia Business & Industry Council

78 West Virginia Manufacturers Association Mission: The mission of the West Virginia Manufacturers Association is to promote the health and well-being of manufacturing in West Virginia. Policy Priorities: Regulatory Balance: Regulatory over-reach places West Virginia at a disadvantage for economic growth and job creation; Human Capital Development and Retention: The WVMA supports breaking down traditional barriers to allow for new and individualized educational approaches, development of educational efficiencies in West Virginia s system, and better integration of technology in classrooms. Energy Diversity: West Virginia consumers should benefit from our natural resources. We support strategies to lower consumer energy costs for both residential and industrial rate payers and an allof-the-above energy policy. Tax Reform: Reform that eliminates the property tax on manufacturing equipment and machinery would position West Virginia more competitively with states experiencing industry growth. West Virginia Business & Industry Council

79 West Virginia Oil & Natural Gas Association Mission: Our mission is to promote and advocate for the continued growth of the industry through policy development, education and outreach services. WVONGA strives to help maximize the development of the valuable and abundant oil and natural gas in our state for the betterment of West Virginia and our country. Policy Priorities: Updating laws regarding drilling wells in deep formations to allow for common-sense and practical ways to develop oil and natural gas in the Utica Shale and allow us to take advantage of the abundant resources below us; Approval and construction of pipeline infrastructure; Promoting policies that will encourage the growth of infrastructure and downstream sectors will provide thousands of jobs and economic growth to our state and local communities. West Virginia Business & Industry Council

80 WV Oil Marketers & Grocers Association Mission: OMEGA is a West Virginia-based membership organization that advocates and promotes the business interests of the petroleum, grocery and convenience industries to better serve our customers, employees and communities. Policy Priorities: Fair Competition & Border Stability: Differences in excise tax rates across jurisdictions create incentives for consumers to cross the border and purchase in lower tax jurisdictions. We continue to seek an even playing field to conduct business. Economic and Jobs Development: We need to improve West Virginia s public education system to provide accessible education, either in a college, business or trade format, so that we may produce graduates who are prepared for today s workforce. Responsible Government: Our state government needs to maintain prudent budgeting, integrity and transparency. We also want lawmakers to examine state laws and regulations that are more stringent than their corresponding federal rules to ensure federal parity where appropriate. Fiscal Responsibility: State government must maintain prudent budgeting practices and we must operate within our means. Legal Reform: While major steps were taken in the previous legislative session, we must continue to reform West Virginia s legal system. West Virginia Business & Industry Council

81 West Virginia Gaming & Racing Association Mission: Our mission is also to continue to provide jobs and generate revenue for the 4,000 employees at the four racetracks and the financial benefit to the state of West Virginia and the other entities that receive dollars from our effort. Policy Priorities: We want to provide a genuine customer service atmosphere whether it be in gaming, racing, sports betting, food and beverage or hotel services and make our customers feel like they are being treated on an individual basis. West Virginia Business & Industry Council

82 West Virginia Retailers Association Mission: The West Virginia Retailers Association supports the collective goals of the retail industry, promoting the highest level of standards and best practices though education and advocacy before the general public, opinion leaders, and policy makers. Policy Priorities: Economic Development: job creation, tax reform, and improvements to our state s infrastructure; Pharmaceutical Industry Regulation Food & Fuel Industry Regulations Collections and Debt The Spirits Council - a division of WVRA dedicated to address spirits industry standards for the licensed retail liquor stores while working with distillers and brokers; Vapor Industry/E-Cigarette Regulations Direct Selling Protections updating current law to further protect legitimate direct sellers. Adopting right of return for inventory purchased by individual direct sellers. West Virginia Business & Industry Council

83 Building Our Future: 2019 Pre-Legislative Conference Questions? West Virginia Business & Industry Council

84 Thank you to our sponsors! Gold Sponsor Silver Sponsor Bronze Sponsors West Virginia Business & Industry Council

85 Building Our Future: 2019 Pre-Legislative Conference Thank you! Follow us online: West Virginia Business & Industry Council