[8:14] Good morning. The committee will
[8:14] come to order
[8:18] clerk has taken a silent roll
[8:20] call. we do have a quorum there
[8:22] being a quorum established. I
[8:23] recognize the cochair for motion
[8:28] the previous meeting the
[8:30] question is on the approval of
[8:31] the minutes from the previous
[8:32] meeting all those in favor say
[8:32] aye
[8:33] oppose no
[8:36] in the opinion of chair the ays
[8:37] haven't and declare the motion
[8:38] adopted
[8:40] we're going to move the agenda
[8:42] slightly we have Senator Bart
[8:43] Hester joining us from
[8:48] Arkansas and for the sake of his
[8:49] schedule and time we're gonna
[8:50] have him go ahead and and
[8:51] present first this morning
[8:54] he is the president prote from
[8:57] the Arkankansas state senate and
[8:58] I'll let him introduce himself
[9:00] but we we're honored to have him
[9:02] here today because he's one
[9:05] of the chief architects of the
[9:06] economic turnaround in Arkansas
[9:07] that led to them getting a top
[9:08] ive ranking
[9:11] for economic outlook from AEC
[9:13] among others. so Senator Hester,
[9:13] can you hear me OK?
[9:14] I can
[9:16] good morning
[9:20] thanks for being with us please
[9:21] go ahead and introduce yourself
[9:24] and we look forward to your
[9:26] presentation. I I will just say
[9:27] we're very interested to hear
[9:28] what your work on the tax side
[9:31] of things but also if you could
[9:34] please cover the the regulatory
[9:35] reform side of things as well
[9:36] we're also very interested in
[9:37] that and so thank you for being
[9:38] with us.
[9:40] I know thank you for having me.
[9:42] I was just a little bit afraid
[9:43] y'all were having me on to poke
[9:43] at Arkansasoo.
[9:44] but we will
[9:48] talk to you guys really what I
[9:49] wanted to talk today I could get
[9:50] into a lot of the details and
[9:52] stuff but but I wanted to talk
[9:54] to you about
[9:54] a mindset
[9:55] so you know
[9:56] what
[10:00] west virginia and Arkansas
[10:03] have a lot in common. in fact
[10:04] you know just a you know a year
[10:06] or two ago I was traveling
[10:08] and I watched an ad trying to
[10:09] recruit people to West Virginia.
[10:11] and it was almost the exact
[10:12] same ad that Arkansas is using.
[10:15] it's saying hey if you like
[10:16] beautiful views, if you like to
[10:19] hike or bike or kayak or canoe,
[10:20] you know, West Virginia's for
[10:21] you it was like the same
[10:24] pictures almost same thing that
[10:25] Arkansas's doing and I think
[10:26] it's because you recognize what
[10:27] we recognize
[10:31] is that more so than ever
[10:32] people are choosing where they
[10:34] want to live and they can move
[10:36] and we're seeing them move from
[10:38] the coast in and how do we
[10:40] recruit those people to want to
[10:42] come to our communities the
[10:43] entrepreneurs the people that
[10:44] are starting businesses, the
[10:45] people that are retiring or
[10:46] people that have resources they
[10:48] can live anywhere in the world
[10:50] why pick our locations I think
[10:52] West Virginia and Arkansas have
[10:54] a very similar case to make
[10:55] it was very encouraging
[10:57] but it's you know
[11:00] I'd say I'm just gonna roughly
[11:02] say10 years ago Arkansas changed
[11:03] our mindset
[11:06] that we no longer want to be
[11:08] arguing about are we50th or48th
[11:09] and we moved to45th and we high
[11:10] five and aren't we doing
[11:11] something great
[11:13] we said we want to move
[11:14] from5ieth to1st.
[11:17] and how are we going to do that
[11:19] and that really got sped up you
[11:20] know four years ago we elected a
[11:22] new governor in Sarah Huckabee
[11:24] Sanders and you know her mindset
[11:26] determination has been really
[11:28] great in leading us these ways
[11:31] but how do we change an entire
[11:31] mindset knowing
[11:34] that we're recruiting people
[11:38] that have a choice to go
[11:38] anywhere they want to go in the
[11:40] world or anywhere in in in the
[11:42] United States. why would they
[11:44] pick Arkansas? how do we get
[11:46] them to pick Arkansas to even be
[11:48] on the list to consider for big
[11:50] companies looking for you know
[11:52] we're going to locate some
[11:54] manufacturer or start a new one
[11:56] and forever I was reading
[11:57] headlines and it was like these
[11:58] four states are in the running
[11:59] or these 6 states are in the
[12:00] running and you know why is
[12:03] Arkansas never on that and how
[12:05] can we how can we change that
[12:05] perspective
[12:08] and I think there's two things
[12:10] that matter a lot that we've
[12:12] really focused on over the last
[12:13] few years
[12:15] to a national perspective of
[12:15] your state
[12:19] what is the general person think
[12:20] you know from California or New
[12:24] York or Michigan when they think
[12:25] about your state. well I can
[12:26] assure you if you were a
[12:27] business owner in one of those
[12:29] areas looking to relocate you
[12:30] would think there's no way I'm
[12:32] interested in going to Arkansas.
[12:33] No way I'm interested in going
[12:34] to West Virginia. Maybe I'm you
[12:35] know, I'm just
[12:38] and so how do we change that
[12:40] mindset and a lot of that's
[12:41] headlines that people see
[12:44] and people don't change their
[12:46] mindset over six months or a
[12:48] year or2 years it has to be a
[12:52] prolonged consistent good
[12:52] headlines about your region
[12:56] and we've been changing and
[12:57] working on those. I mean just
[12:58] like some of the stuff y'all
[13:00] push on you know we titled
[13:01] ourselves mountain iking Capital
[13:02] of the world. I don't think
[13:03] anyone chooses that. We just
[13:06] said that that's who we are.
[13:07] and we've been we've been
[13:08] promoting that nationally and we
[13:10] have you know some real
[13:11] philanthropists you know the
[13:12] Walmart was founded in our area
[13:14] and the heirs of Walmart have
[13:15] put a huge amount of money in
[13:17] mountain bikes and and then
[13:18] and then the advertising for
[13:20] that across the country so
[13:20] that's been very very helpful
[13:21] for us
[13:25] but we work on the national
[13:27] view, these national headlines
[13:27] that you can consistently get
[13:30] and then just really your
[13:32] policies. even if you get it
[13:34] where somebody says I will
[13:36] consider Arkansas, how are our
[13:38] policies something that make
[13:40] them really consider Arkansas.
[13:42] you know we're no longer like
[13:44] not on the list anymore. maybe
[13:45] we would consider Arkansas I've
[13:46] been reading some good things
[13:47] about them over the past24 8
[13:48] years. but now we've got to
[13:51] implement the policies that
[13:51] actually will make them land
[13:53] here in Arkansas
[13:54] so we
[13:58] this is something very similar
[14:00] for West Virginia's Arkansas
[14:03] Texas surplus last year
[14:07] was5 times what your budget is.
[14:07] their surplus was
[14:12] in4 times what Arkansas's budget
[14:14] is. Like how do we compete with
[14:15] that? Like we can't go buy the
[14:16] jobs that they buy. We can put
[14:18] all these resources they're
[14:20] really put a huge strain on our
[14:22] state they don't even know that
[14:23] it happened in Texas.
[14:27] so how how do we compete with
[14:27] that
[14:30] and we've learned in Arkansas
[14:32] that if you cut the pie up too
[14:34] many times and this person
[14:36] gets500,000, this person gets2
[14:38] million, this person gets 8
[14:39] million like you end up not
[14:39] moving the needle
[14:43] So, so what we did in Arkansas
[14:45] was we said there are no more
[14:46] pet projects
[14:48] so we've been about 6 years on
[14:49] that meaning
[14:51] the lieutenant governor
[14:53] gets nothing that they want
[14:57] The president of the senate gets
[14:58] nothing that I want. The
[14:59] majority leader gets nothing
[15:00] that they want
[15:02] and you know what when the
[15:03] lowest ranking member
[15:05] cs that no one else is getting
[15:05] what they want
[15:06] they're actually
[15:09] can deal with not getting what
[15:10] they want as well.
[15:12] So when nobody gets the thing
[15:13] that they want
[15:15] we keep all the money
[15:17] in a bigger pot
[15:19] and we use that bigger pot
[15:21] to make big change
[15:26] and it's hard because all the
[15:27] things that I want my just I've
[15:28] been the senate president for
[15:30] four years now and to tell
[15:31] people back home I can't do
[15:32] that. I can't do that we've got
[15:34] a bigger focus and when you can
[15:36] communicate back home all35
[15:40] senators, all135 elected
[15:41] legislators in Arkansas can
[15:42] communicate we're on a bigger
[15:46] focus and that focus is we're
[15:48] keeping we're keeping all our
[15:49] money in a big pot and it's in
[15:50] savings
[15:52] OK and we're we're using that
[15:54] savings to say we're going to
[15:55] cut taxes
[15:57] and if we mess up everybody's
[15:58] probably familiar with the you
[16:00] know thekansas example from you
[16:02] know 8 or10 years ago where they
[16:04] cut too many taxes and they had
[16:05] to back up. I mean that's a
[16:05] total disaster.
[16:08] so we want to keep enough money
[16:09] in savings where we can
[16:14] consistently cut taxes, personal
[16:16] income taxes, corporate taxes so
[16:17] over the last you know10 years
[16:19] we've done it seven times.
[16:20] we'll do it again the first
[16:23] quarter of the upcoming27 will
[16:24] continue to cut but when we have
[16:27] a a huge number in savings so
[16:28] you know that's close to3
[16:29] billion dollars now
[16:30] we can cut
[16:33] the income tax and the
[16:34] personal you know the personal
[16:35] and corporate tax rate
[16:37] and that's just another good
[16:39] headline. So if I'm a business
[16:42] owner and I look up Arkansas
[16:44] it's just going to say cut, cut,
[16:46] cut, cut cut cut on on their
[16:47] taxes
[16:50] and which goes back to my
[16:51] first point consistent good
[16:52] headlines
[16:54] and with a huge amount of
[16:55] savings
[16:56] we can do really two things
[17:01] we can we can we can cut
[17:02] not too aggressively at any
[17:04] given time but we know that if
[17:05] we did too much there's money
[17:06] and savings to fill those holes.
[17:10] and really the way that you have
[17:11] these savings
[17:14] I drew you up a really
[17:16] fantastic drawing this morning
[17:17] with anXY axis
[17:20] let me see here how do I get on
[17:21] the screen
[17:24] right
[17:28] so this is just really simple.
[17:29] like and these are made up
[17:31] numbers, right? but we look at
[17:32] our state's budget
[17:33] and then what our revenues are
[17:36] and we're probably just like
[17:38] West Virginia it's impossible to
[17:39] cut something
[17:42] can't do it if if if we're being
[17:44] given money to something to cut
[17:46] it is a very difficult thing to
[17:48] do. So what we've said is if we
[17:50] can't cut the beast, how do we
[17:52] starve the beast or feed it a
[17:53] little bit less?
[17:55] so if we if we know that our
[17:56] revenue we expect it to go
[17:57] up3.5%
[18:01] we're only gonna but do a budget
[18:01] increase of2%.
[18:03] and that leaves a delta of1.5%
[18:08] and we're gonna do consistently
[18:10] every year, every year, every
[18:11] year. So we may not be able to
[18:12] cut government, but we can
[18:16] shrink it by percentage and we
[18:17] do it by a couple of percentage
[18:19] every year and and over time now
[18:20] Arkansas from a very small state
[18:23] has you know, like I say about3
[18:25] billion we had another $600
[18:28] million surplus last year but we
[18:29] have to keep spending in check
[18:32] and again how do you do that?
[18:34] You do that by telling the
[18:36] senate president this guy you
[18:37] get nothing. what I do get
[18:41] is great policy for the whole
[18:44] state of Arkansas. We recruit
[18:45] people in with that and and
[18:47] that's the win. we had to take a
[18:48] buyin from the whole legislature
[18:50] basically and now we do fight
[18:52] over it every session you
[18:54] know we really need this we
[18:55] really need that how are we
[18:56] going to fund that? what are we
[18:58] going to do and we continue to
[19:01] fall back to no members get
[19:02] anything. we're keeping the
[19:04] bucket a really full over here
[19:06] because we're going to do things
[19:07] that are great policy wins
[19:08] for the
[19:11] entire state of Arkansas or at
[19:13] least it had to be for a huge
[19:15] region of Arkansas not just a
[19:16] particular district
[19:20] you know we make choices I'm
[19:21] sure y'all get pitched this all
[19:23] the time and it's great. I'm
[19:24] just using this as one example
[19:26] because they're there are 1000
[19:28] worthy things to do with your
[19:29] tax dollars
[19:30] but we get told a lot let's
[19:32] let's give money the to the
[19:34] movie industry, right it's it's
[19:36] returned100 to1 if you give a
[19:37] million dollars
[19:39] What doesn't take me very long
[19:40] to realize I can give all of our
[19:42] money and it's nothing compared
[19:43] to what Georgia or Texas does.
[19:46] and they they just can dwarf us
[19:47] with the amount of credits that
[19:48] they do
[19:50] so we can put a lot of money
[19:51] into something that doesn't
[19:52] really move the needle
[19:55] or we can continue to keep our
[19:56] eye and stay focused on these
[19:58] corporate and income tax rates.
[20:03] and and I will tell you like the
[20:04] the the personal income tax
[20:06] has kind of been the sentence's
[20:08] thing. the house has always
[20:10] said we require that the
[20:12] corporate rates follow. if it
[20:13] was up to me I would just I
[20:14] would make sure personal
[20:16] income tax gets cut all the way
[20:18] back down to close to zero as we
[20:19] can
[20:20] and then and then go take on the
[20:24] corporate rates but it's been
[20:25] wise that the house has demanded
[20:27] that we follow if we cut in
[20:28] personal income tax we cut
[20:29] corporate, we track them all the
[20:33] time and if if one goes down the
[20:34] other goes down and that's been
[20:35] great. it's been a great
[20:36] messaging for our chambers of
[20:38] commerces continued good
[20:40] headlines to to to talk about
[20:41] what's going on
[20:46] in Arkansas. So I can talk more
[20:47] in detail if you have questions
[20:47] about the policies but what our
[20:50] what I really wanted to talk
[20:53] about was this overall mindset
[20:55] of what can we do to have
[20:57] consistent great headlines for
[20:59] Arkansas the selflessness of our
[21:00] members
[21:04] to get the vision of what we're
[21:06] trying to do and and see the
[21:08] results right our population's
[21:10] grown3.5% since the last census.
[21:13] things are going good. and
[21:14] we've got we've got the same
[21:16] thing as West Virginia
[21:18] there's some really rural tough
[21:20] spots. there's some more urban
[21:22] you know depending on what
[21:23] someone's looking for in life
[21:27] opportunities but we're we
[21:28] haven't done anything in
[21:29] Arkansas that West Virginia
[21:29] can't do and do really well.
[21:32] I'm happy to
[21:34] answer any questions or I can
[21:35] keep talking.
[21:38] that's great thank you Senator
[21:40] President Hester. I'll just
[21:41] follow up with the first
[21:42] question. that was a great
[21:44] presentation and I I I enjoyed
[21:46] what you what you said about
[21:48] about the mindset necessary to
[21:49] to create change
[21:52] you talked to a good bit about
[21:53] the tax reform
[21:56] were you also working on
[21:59] regulatory reform in parallel so
[22:00] cutting the red tape, cutting
[22:02] the permitting processes and can
[22:03] you talk a little bit about that
[22:04] please?
[22:06] that's great.
[22:08] We say there's nothing we do
[22:10] that's too small, right? people
[22:11] sometimes we come in and we want
[22:14] to do far too much at one given
[22:16] time and that's why I said these
[22:18] are consistent over time
[22:21] look we're we're looking at
[22:22] anything that can make Arkansas
[22:24] better. We are constantly
[22:26] putting pressure on our on our
[22:30] regulators. Look these you
[22:31] know we we like to call them
[22:32] bureaucrats and regulators that
[22:33] are haring they're doing the job
[22:36] with the rules that we as the
[22:36] legislature gave them
[22:38] right we have to change what
[22:40] those rules are and it's and
[22:42] it's scary and and every single
[22:44] regulation is for the safety of
[22:45] the people
[22:46] right
[22:49] and we get that but we believe
[22:51] that most Arkansans and we as we
[22:52] see across the country, most
[22:53] people would choose a little bit
[22:55] more liberty than they would
[22:56] protection from the government
[22:57] in most situations
[23:01] so even something down as you
[23:02] know we look at what's the
[23:04] biggest challenge is the biggest
[23:07] challenge electricians OK, if
[23:08] if we're having a hard time
[23:10] hiring electricians and heating
[23:11] air people and recruiting that
[23:12] industry. How do I make it a
[23:14] little bit easier to to do
[23:16] that in Arkansas we used to say
[23:19] a master electrician could only
[23:19] train on a 1 to 1 basis
[23:22] you know we've moved that to5
[23:24] to1 basis and of course what is
[23:26] Texas unlimited to one right
[23:28] like and and I don't see
[23:30] people burning down buildings in
[23:32] Texas. right but we're every
[23:34] single thing that we do in
[23:36] Arkansas we're trying to
[23:38] figure out how do we have less
[23:40] government interference. I
[23:42] want, I want the entrepreneurs,
[23:44] the business owners, the bosses
[23:46] to spend more of their time
[23:48] thinking about how do I
[23:49] create a next line? How do I
[23:49] have a more successful business
[23:52] I want them worried about that,
[23:54] not worried about I'm having to
[23:55] deal with the government today.
[23:57] I've got a regulator coming. I
[23:58] can't get this guy's license. no
[24:00] one's calling me back. My taxes
[24:02] are rough. How do I avoid those
[24:04] taxes? We do not want them
[24:06] spending any time or far less
[24:08] time they have to deal with us
[24:09] because there has to be
[24:09] regulation but like
[24:14] I want them spending less of
[24:15] their day dealing with
[24:17] something. whether that is a
[24:18] license, whether that's waiting
[24:19] on a callback, whether that's
[24:20] standing in line at the Dmv
[24:24] how do we remove any of those
[24:24] burdens and and and look
[24:28] we've had just huge groups of
[24:30] members that we get great ideas.
[24:31] same thing as you guys do in
[24:32] west Virginia and everyone's
[24:34] going to take
[24:37] one of those out of a you know
[24:38] we've got a plan of 20
[24:39] regulations that we're going to
[24:40] remove this year
[24:43] and we don't try to do too much.
[24:44] I guess maybe I've said a lot of
[24:45] words to say
[24:48] if you try to do too much we end
[24:49] up finding ourselves not
[24:50] successful but we just take a
[24:52] small piece of this regulation
[24:54] and we cut it and the next year
[24:55] cut it and the next year cut it
[24:57] and we continue to move the ball
[24:58] and you look up over 68 or10
[25:00] years and find yourself in in
[25:03] a much better place and again
[25:04] look it matters who your
[25:06] governor is who's overseeing
[25:08] those when when when the
[25:09] governor is totally lockstep
[25:10] pushing back on all those areas
[25:12] as well you know we tell our our
[25:14] regulators
[25:14] we want to be complaintd
[25:16] ri ve n we don't want to be
[25:18] going up in people's businesses
[25:20] and things looking under rocks
[25:21] trying to find a way to be
[25:22] difficult it's it's complaintdri
[25:28] thank you for that response
[25:29] senator. Are there questions for
[25:30] Senator Hester?
[25:36] delegate from the
[25:38] 16 th
[25:41] iethixtieth sorry
[25:45] thank you Mr chairman and
[25:46] thank you for joining us this
[25:48] morning from Arkansas.
[25:51] question this trajectory when
[25:52] you guys made this decision to
[25:53] make these
[25:57] calculated cuts versus your
[25:58] budget how long have you been on
[25:59] this pathway or guide path
[26:03] 10 years
[26:06] and and again it's it's
[26:08] consistent and I can tell you
[26:10] you know we went from the
[26:11] biggest most difficult thing we
[26:14] did was going from7% personal
[26:15] income tax to 6.9.
[26:17] because we hadn't cut taxes in
[26:19] forever and it was a huge deal
[26:20] when we did it but then the
[26:23] floodgates just opened and we I
[26:23] think maybe point
[26:28] you know 03 has been the be re0s
[26:30] has been the biggest cut we've
[26:32] ever done. We just continue to
[26:34] do it but for 10 years sometimes
[26:36] twice a year if revenues are
[26:38] really good we'll we you know
[26:39] we'll go into a special session
[26:39] we'll cut another 110
[26:42] and so that's been it it's a
[26:43] consistent for10 years.
[26:46] OK. right thank you Mr Chairman
[26:51] Thank you delegate are there
[26:52] further questions for Senator
[26:52] Hester?
[26:55] delegate from the
[26:58] 13th
[27:02] thank you Mr Chairman. thank you
[27:03] sir for being here
[27:05] If West Virginia was to only
[27:07] adopt three of Arkansas's
[27:07] roadmap policy
[27:11] what would you recommend be the
[27:12] three that we adapt to
[27:16] and what would be the three that
[27:17] you would stay away from
[27:22] Well I'll go right back to this
[27:24] I think the most important thing
[27:25] is everybody has to be on the
[27:26] same page and one is
[27:29] doing away with pet projects
[27:33] and that's really hard and the
[27:35] first time you do it is really
[27:36] hard and then it gets easier and
[27:40] easier and we tell people you
[27:42] better come make a huge regional
[27:44] case for something but doing
[27:47] in the mindset is so hard
[27:48] because we need this thing in my
[27:50] district or my area. but what
[27:52] your district or area really
[27:54] needs is overall tax reform so
[27:55] they can recruit jobs to your
[27:56] area. right that's what they
[27:59] really need. it's a longer term
[28:00] so number one doing away with
[28:03] pet projects from the top to the
[28:04] bottom and again everybody can
[28:06] be ok with not getting their
[28:07] thing as long as the
[28:09] the sentence
[28:13] this guy in Arkansas. So
[28:14] that's number one that's
[28:16] important.2 consistent
[28:18] cuts
[28:22] because it's consistent great
[28:24] headlines for the for state and
[28:26] for national. consistent don't
[28:28] do too much at one time you end
[28:29] up getting yourself in trouble
[28:30] maybe but this is just the
[28:32] Arkansas model. so that's I'd
[28:33] say that's two things
[28:37] things I would stay away from
[28:39] or all these other worthy
[28:41] tax things that people
[28:42] bring to you
[28:46] right we and we again we we've
[28:47] done a few something called
[28:48] the throwback rule but that
[28:49] really mattered because we have
[28:50] a lot of defense spending in our
[28:53] area we did that a few years
[28:54] ago but it was very specific
[28:56] because it was really great for
[28:58] an entire region of Arkansas
[28:59] that was struggling. so we made
[29:02] one choice there to adjust our
[29:03] throwb throwback rule.
[29:06] but but stay away from nibbling
[29:10] on the edges of you know this
[29:11] policy or that policy when it
[29:13] comes to tax cuts. stay with the
[29:15] bigger things that create better
[29:16] headlines that change people's
[29:18] mindset business owners about
[29:20] coming to West Virginia and that
[29:22] would be consistent personal
[29:26] income tax consistent
[29:28] corporate tax and look the
[29:29] concern is look we're not
[29:30] Florida we don't have all these
[29:32] people coming here and staying
[29:33] on the beach. We're not Texas,
[29:33] we don't
[29:35] have oil revenue so what do we
[29:37] do we we publicize exactly what
[29:39] you do. Hey come here ride your
[29:40] bike, kayak, look at the
[29:42] beautiful views, come spend the
[29:44] weekend in West Virginia or
[29:45] Arkansas and see how great this
[29:46] is
[29:46] right
[29:49] tourist dollars are real
[29:50] dollars. It matters. it starts
[29:52] businesses
[29:56] so Arkansas you know we may not
[29:57] have what some other states have
[29:58] to get their income tax down to
[29:59] almost zero or zero
[30:01] but we do have a lot going for
[30:01] us that they don't
[30:06] Thank youir. thank you Mr
[30:07] Chairman.
[30:09] thank you delegateur questions
[30:10] for the senator
[30:12] senator from the18th or delegate
[30:13] from the18th sorry
[30:17] thank you Mr Chairman. Have you
[30:20] noticed that your personal
[30:22] income tax reduction rates have
[30:24] helped improve your workforce
[30:26] participation in any way or even
[30:27] the corporate because that's one
[30:29] of the big issues we have in
[30:30] west Virginia are workforce
[30:31] participation is is pretty poor
[30:36] man that is a fantastic question
[30:37] and
[30:39] but I I will give you an
[30:41] example. we have a county called
[30:41] Mississippi County
[30:44] OK they were one of the
[30:48] biggest users of government
[30:50] you know reliance right so if
[30:52] that's medicaid, if that's Sap
[30:53] benefits
[30:56] where we we spent a lot of money
[31:00] 10 years ago on recruiting a
[31:01] steel mill to that area and I
[31:02] will tell you I voted against it
[31:04] because just general principles
[31:06] of mine, I don't think the
[31:07] government should be getting
[31:08] involved in buying business. I
[31:10] want to create an environment
[31:12] where they want to come here.
[31:14] Well guess what that's not the
[31:16] rules the United States plays
[31:17] by right and if we keep
[31:18] continuing to call ourselves
[31:20] purist, we just watch those jobs
[31:22] go other places but I voted
[31:23] against it 10 years ago. I'd
[31:24] vote against it now because of
[31:25] this
[31:28] we have watched through that
[31:30] steel mill that entire community
[31:33] go from the largest user of Snap
[31:35] in the state of Arkansas to
[31:37] almost the lowest user of Snap.
[31:40] so that's the only county in
[31:41] Arkansas that's becoming less
[31:41] dependent on the government
[31:44] so they were like the most
[31:45] dependent but guess what when
[31:48] you can walk out of school, high
[31:49] school and get a job
[31:52] making75,000 dollars a year all
[31:54] of a sudden it's not worth it to
[31:56] take your20 or30 $1000 worth of
[31:57] years for government benefits
[31:58] for housing and food and
[32:00] unemployment. So when you've got
[32:01] a good enough job
[32:04] we see it working in Arkansas
[32:06] when it's a good enough job,
[32:08] people will choose to get back
[32:10] into the workforce and go work a
[32:11] hard day and then guess what?
[32:12] they don't they don't need the
[32:15] government providing for them so
[32:16] now we have less of a burden in
[32:18] that area. they their life
[32:20] satisfaction is is better. The
[32:21] community's changing drastically
[32:24] but I'll go back to that when
[32:26] you have an environment that
[32:28] recruits businesses into town
[32:30] people will choose to go to work
[32:40] the junior senator from the
[32:41] fifth senior senator from the
[32:41] fifth
[32:48] good morning Mr. President I
[32:50] appreciate you being here and
[32:52] and you're speaking on a topic
[32:53] that I'm really
[32:54] interested in
[32:57] here in west Virginia and we're
[32:58] talking about the workforce and
[32:59] and you said some things that
[33:02] that really perked my interest
[33:05] here and I agree with you that
[33:06] if you if you have the
[33:10] opportunities to provide the
[33:11] workforce they will take it
[33:15] the problem in westvirginia we
[33:16] are a heavy Medicaid
[33:22] you know snap state. and
[33:24] there are no jobs that can
[33:26] replace right now that can
[33:27] replace the
[33:30] the pay that they get from the
[33:32] government assistance. In fact
[33:34] if we in one of the things I'm
[33:36] gonna work at and I'm gonna see
[33:37] if you all are doing the same
[33:37] thing
[33:38] is
[33:40] you know for so long they've
[33:42] been incentivized to not work
[33:44] you get a job and then they they
[33:45] take all your benefit
[33:49] behoovebun to go you know what
[33:52] I'm gonna go out and work a job
[33:55] which now a meal like that is
[33:57] great but if you're going out
[33:58] here like the small businesses
[34:00] here are having trouble filling
[34:01] their workforce with
[34:06] those jobs don't replace a
[34:07] government income
[34:12] So have you all looked and I'm
[34:14] looking at maybe incentivizing
[34:17] people to go to work with not
[34:19] taking all the benefits away
[34:22] but doing it prorated at at a
[34:24] way that they can still work
[34:28] and and really benefit from
[34:30] going to work to kind of help
[34:32] the the small businesses in
[34:33] our state what's your
[34:38] Well what we call that in
[34:40] Arkansas and you might too it's
[34:42] the cliff right like a I've got
[34:43] so much benefits and the moment
[34:45] I make too much I lose
[34:47] everything and at that point it
[34:49] I'm better off being at home. so
[34:50] how do we have a stepdown
[34:51] process
[34:54] rather than just a huge cliff
[34:55] from people and you know a lot
[34:56] of this is iseder reg
[35:00] federally regulated right but
[35:01] the things that we can control
[35:02] in Arkansas we have started to
[35:06] create ways for people to step
[35:08] down off these benefits and look
[35:09] for a long time I believe that
[35:10] they just don't want to work
[35:11] they're unwilling to work and
[35:11] and I've just seen it different
[35:14] when when you find a way to put
[35:16] something inad most people will
[35:18] choose we've just been seeing
[35:20] it we'll choose to go to work
[35:22] when there's a good enough job
[35:24] like you said where where the
[35:25] benefits just don't change if if
[35:26] all of a sudden I'm I'm working
[35:28] and bettering myself I'm going
[35:30] to school at night and the
[35:32] moment I'm I get a pay raise or
[35:34] promotion at work now I'll lose
[35:36] all the benefits for my children
[35:37] to go be able to go to daycare.
[35:38] Well now I can't afford to work
[35:40] anymore. So I don't take the
[35:41] promotion. I don't take the
[35:41] uppermobility in my life
[35:45] but we we we we see it we've
[35:48] consistently worked on areas and
[35:50] ways that we can do a stepdown
[35:51] process rather than a cliff.
[35:53] thank you very much appreciate
[35:54] it.
[35:57] are there further questions for
[35:57] the senator
[36:00] delegate from the
[36:03] eightyfourth
[36:07] thank you and thank you for
[36:10] being here. The one question I
[36:12] have is if you're consistently
[36:13] cutting consistently down
[36:18] do your schools and do your
[36:19] roadways and your waterways
[36:24] costs consistently go up and all
[36:27] these sections how do you
[36:28] accommodate
[36:28] those
[36:30] Yeah
[36:33] I'm going to guess we're
[36:35] different in in westvirginia
[36:36] then then than here in
[36:39] Arkansas and how we do that our
[36:40] schools are primarily funded by
[36:42] property taxes that are done
[36:44] solely at the county level. so
[36:46] the state's removed from that
[36:48] process. Now they tax them on a
[36:50] county level and then every
[36:52] student in Arkansas gets a gets
[36:56] a consistent amount and then
[36:57] each county if they choose to
[36:58] tax themselves more they can
[36:59] give more to their school
[37:00] districts so by cutting our
[37:04] income taxes it doesn't
[37:06] affect our schools well
[37:08] really at all because they're
[37:10] funded basically by property
[37:12] taxes in Arkansas. so that is a
[37:14] benefit for us. I can cut
[37:15] corporate rates, I can cut
[37:17] personal income taxes and it and
[37:20] it should not be a negative
[37:22] reflection on our schools. What
[37:23] we hope that it does and what
[37:24] we've been seeing it does is
[37:26] more people move to town.
[37:27] there's more houses, more houses
[37:28] being built which increases
[37:30] property taxes meaning more
[37:31] money going to our local school
[37:32] district
[37:32] t s
[37:35] the roads is a big deal.
[37:36] we do fund a lot of that from
[37:38] from the state level we just
[37:40] prioritized that like we look at
[37:41] what what is the what is the
[37:42] role of government right to keep
[37:44] people safe to provide you know
[37:46] the utilities and I believe you
[37:48] know the highway systems
[37:50] utilities so we prioritize
[37:54] that in fact when we have a
[37:56] surplusXcent of that surplus
[37:57] every year the first thing that
[37:59] happens to it is send it to
[37:59] our highway system
[38:04] and our road system. So it
[38:05] is a priority for us
[38:05] but again
[38:10] all these things are worthy.
[38:11] we just know that it will take
[38:12] time. we've got to create an
[38:13] entire culture change
[38:15] then we can go back and start
[38:16] fixing some of those you know I
[38:17] did an AI search this morning
[38:19] Why would I move to West
[38:19] Virginia
[38:22] and then I did one why would I
[38:24] move to Arkansas? and I did
[38:26] that because I met somebody a
[38:27] few weeks ago
[38:29] and they moved to Arkansas said
[38:31] why and they said I just I got
[38:32] into AI and I said I want all
[38:33] these things in life where
[38:34] should I move and it said
[38:35] Arkansas. I was like really?
[38:37] He's like yeah. he goes so I ran
[38:38] the search a few different times
[38:39] and it kept saying I should go
[38:40] visit Arkansas.
[38:42] but when I a out it this morning
[38:43] and said why should I move to
[38:45] Arkansas? It said you have
[38:47] serious systematic
[38:47] infrastructure concerns
[38:50] that is true.
[38:53] we take care of it we're working
[38:56] on it. we're not there yet.
[38:58] we're we're trying to heal
[38:59] ourselves on taxs basis get
[39:00] people coming here and we'll
[39:02] continue to start putting money
[39:03] into the infrastructure to fix
[39:03] it
[39:09] Any further questions
[39:16] ing an and senator President
[39:18] Hester, thank you so much for
[39:19] being here with us this morning
[39:20] truly appreciate your testimony
[39:22] and your perspective, your
[39:24] wisdom next time you're in
[39:25] west Virginia please let me
[39:26] know. we'll make sure we show
[39:27] you around and show you all the
[39:28] good things here
[39:31] thank you. I'll do it. thank you
[39:31] so much have a great day
[39:33] you too
[39:37] right moving on next on our next
[39:39] on our item on our agenda is a
[39:42] presentation from Christine
[39:43] Davies who is the deputy
[39:44] secretary for economic
[39:46] development and workforce
[39:47] participation deputy secret
[39:48] Secretary Davies
[39:51] thank you for being here. Can
[39:51] you raise your right hand
[39:52] please?
[39:54] Do you swear to tell the truth
[39:56] the whole truth, nothing but the
[39:57] truth under penalty of false
[39:58] swearing so help you go.
[39:59] Thank you please proceed
[40:33] Well thank you so much chairman
[40:34] and good morning to all of you
[40:36] thank you for the invitation to
[40:38] be here to address quite a
[40:40] number of key topics that I know
[40:42] are very important to all of you
[40:43] and certainly to our state
[40:45] in terms of the first topic you
[40:46] asked me to address site
[40:48] selection and infrastructure
[40:51] availability really evaluating
[40:52] how the states localized site
[40:54] readiness grants and our
[40:56] broader50 by fi0 framework help
[40:58] prepare locations to attract
[41:00] megaros. Um, I really want to
[41:03] start by just calling out that
[41:04] economic development is
[41:06] successful to really what I
[41:08] consider a core triad approach
[41:10] of effort and that of course
[41:12] includes site readiness,
[41:13] business fundamentals and
[41:15] incentives and workforce
[41:15] development.
[41:18] site readiness investment by
[41:20] states is absolutely critical
[41:22] for us to attract economic
[41:24] development projects whether
[41:26] they're megaros or otherwise. no
[41:27] site
[41:30] equals no project no matter
[41:32] what the incentives the tax
[41:34] structures etc. might be and
[41:36] speed to build is frequently
[41:38] ranked as the number one issue
[41:40] for project selection above the
[41:41] other elements of the triad.
[41:45] West Virginia is aggressively
[41:46] catching up to our neighbors on
[41:48] site readiness investments,
[41:50] neighborighbos who have poured
[41:52] hundreds of millions of dollars
[41:53] into this effort over the last
[41:53] several years.
[41:56] but since its kickoff in
[41:58] November of2023 the yes west
[42:00] Virginia siteready grants
[42:02] program has invested5 million
[42:04] dollars to evaluate over100
[42:06] sites nominated by local
[42:07] economic development
[42:08] organizations across the state
[42:11] or Lidos for industrial
[42:11] development statewide.
[42:16] 7500 $0 micro grants were
[42:18] awarded to38 of those sites that
[42:20] met the qualifications that were
[42:22] that were set out to fund due
[42:25] diligence and site work to
[42:28] advance those sites readiness
[42:29] and we are finalizing
[42:30] assessments of which of the
[42:32] remaining nominated sites as
[42:34] well as newly introduced sites
[42:36] that our team receives on
[42:38] literally a daily basis maybe be
[42:39] good investments for future site
[42:40] readiness funding.
[42:43] Our current inventory of sites
[42:46] ranges from5 to5,000 acres and
[42:48] we're working to grow that list
[42:50] of qualified inventory really
[42:53] around three tiers of readiness
[42:55] in order to better inform our
[42:56] sense of funding needed to make
[42:58] as much of West Virginia
[43:00] investment readyad as possible.
[43:02] So for example, a tier one site
[43:04] might be considered as close to
[43:06] turnkey ready as possible a tier
[43:08] two site has some site readiness
[43:10] elements in place like
[43:10] infrastructure but still
[43:13] needs advancement to be ready
[43:16] for turnkey investment ier
[43:18] three might require significant
[43:20] work to be ready for investment
[43:22] but it's still worthy of
[43:24] consideration. And this
[43:25] preliminary work to improve site
[43:26] readiness is critical. It
[43:28] improves things like completing
[43:30] environmental site assessments,
[43:32] geotechnical investigations
[43:34] utility studies and other due
[43:36] diligence that provides
[43:38] visibility into a site's risk
[43:40] profile. These are issues that
[43:41] could impact
[43:43] development and they become
[43:44] known variables that can be
[43:47] planned for rather than unknown
[43:49] risks that could frustrate an
[43:50] investor if it's discovered
[43:52] during their time sensitive due
[43:54] diligence. So essentially we're
[43:56] improving our readiness for
[43:57] investment, which makes the
[43:58] choice of West Virginia that
[44:01] much easier for companies and
[44:01] investors to make
[44:04] sites with completed due
[44:05] diligence through a site
[44:07] readiness program, have that
[44:08] competitive advantage over those
[44:11] lacking investigative work and
[44:12] increasingly I have to tell you
[44:15] that site consultants um, which
[44:17] probably constitute about50% of
[44:20] the project inquiries that we
[44:23] get insist that RFI request
[44:26] for information responses
[44:28] include only sites with some
[44:29] level of completed due
[44:30] diligence. it's not enough to
[44:31] send them a picture of a
[44:31] beautiful plot of land
[44:34] and ask them to imagine the art
[44:36] of the possible. We have to show
[44:38] that we've committed to to
[44:40] developing those sites
[44:41] towards being ready for for
[44:41] investors on day one.
[44:46] Now megaprojects which I know
[44:47] are of particular importance to
[44:49] this group typically require a
[44:51] minimum of1,000 acres of
[44:52] contiguous acres of developable
[44:56] land and while West Virginia we
[44:57] are blessed with beautiful
[44:58] mountains and the bounty that
[45:00] those mountains have provided to
[45:02] us our severe slopes and our
[45:04] flat land often occurring
[45:06] along rivers which of course
[45:08] introduces flood plain risk is
[45:10] our greatest challenge in terms
[45:11] of finding large sites across
[45:12] the state
[45:14] for industrial development
[45:15] including megaros.
[45:18] and so my suggestion to you is
[45:20] that we continue to keep working
[45:22] to fund site readiness for
[45:24] industrial projects of all sizes
[45:26] whether they be those 1000 acre
[45:27] parcels that we're able to find
[45:27] or less
[45:30] recognizing that as a state a
[45:34] messiah if you will of slightly
[45:35] smaller projects can produce
[45:38] similar value to landing one
[45:40] really huge but often elusive
[45:41] fish for any of you that
[45:43] struggle with fishing as I do
[45:45] and I wanted to point out the
[45:47] danger unfortunately of putting
[45:49] too many eggs in the megaroject
[45:52] basket. a recent study out of
[45:53] the Mackinac Center of Public
[45:56] Policy in Michigan found that
[45:57] only 9%
[46:00] of the promised jobs from
[46:02] megaros that were announced in
[46:04] that state between2000 and2020
[46:05] were actually realized
[46:10] megaros are wonderful headlines
[46:11] and they can have wonderful
[46:12] impact on our communities but
[46:15] they'res also often difficult
[46:17] projects to see come to fruition
[46:19] versus smaller projects in the50
[46:20] to250 job range.
[46:24] in terms of the fi0 by50 energy
[46:26] policy. this is really a
[46:28] distinctive advantage in the
[46:30] pursuit of industrial project
[46:32] investment access to affordable
[46:35] ample electricity is top of mind
[46:36] for every industrial investor,
[46:38] especially those whose
[46:40] businesses of course require
[46:40] massive amounts of electricity
[46:44] we consistently hear from site
[46:46] consultants as well as companies
[46:48] that West Virginia is in a class
[46:50] of your own in terms of our
[46:52] 5050 initiative and our
[46:54] commitment to developing that
[46:55] electricity. I would tell you
[46:57] that Texas and their Texasnergy
[46:59] fund to spur new base load
[47:01] generation is probably the only
[47:03] comparable state policy targeted
[47:04] for across the board
[47:06] electricity growth but of course
[47:08] Texas is very different given
[47:09] their regulatory position when
[47:10] it comes to energy.
[47:16] in terms of topic two the idea
[47:19] of deemed approved shot clocks.
[47:21] structuring rapid review
[47:23] mandates and automatic approval
[47:25] mechanisms including
[47:26] completeness certification
[47:28] windows to ensure predictability
[47:29] for businesses.
[47:32] I would offer I think this is a
[47:34] really strong idea when the
[47:36] issue truly slowing projects
[47:38] down as bureaucracy but I would
[47:40] also offer that mandatory shot
[47:42] clocks can also be dangerous
[47:45] when a slower process is the
[47:46] result of complexity from new
[47:48] technologies systems that a
[47:50] state is working to understand
[47:52] with greater certainty or the
[47:54] delays are caused by a company
[47:56] or investors occasional
[47:58] slower process that contributes
[47:59] to the delay.
[48:01] I certainly agree that we all
[48:03] have to act with speed but I'm
[48:05] personally not in favor of
[48:07] deeming anything approved when a
[48:07] time period runs out.
[48:10] ho t clocks can encourage bad
[48:12] behavior as well. I've heard of
[48:14] some states where these measures
[48:16] have been tested and what you
[48:18] end up seeing is risk averse
[48:20] agency staff simply denying
[48:22] permits right before the clock
[48:24] runs out forcing developers to
[48:26] restart the process and actually
[48:28] making the approval timelines
[48:30] longer than what was hoped for
[48:32] with the shot clock process. So
[48:34] how could a state make a shot
[48:36] clock process work and improve
[48:37] time to project
[48:40] First, I would offer to you that
[48:41] a shot clock should only tick
[48:44] when the state agency has a
[48:45] complete application in hand,
[48:47] which often doesn't happen on
[48:50] day one. The moment an agency
[48:52] identifies a missing technical
[48:54] study, a safety gap and
[48:56] environmental impact statement
[48:58] the clock officially pauses and
[49:00] then it doesn't restart until
[49:01] the developer provides the
[49:04] required data. So this type of
[49:05] an approach would ensure that
[49:07] agencies are never rushed on
[49:07] incomplete information.
[49:12] Second, a targeted a range of
[49:14] targeted shot clock or approval
[49:16] durations should be agreed to
[49:18] and then assigned early in the
[49:19] process based on the project's
[49:22] technical complexity. so you can
[49:24] imagine a tier one project might
[49:26] have a six0day period of review
[49:29] tier two180 days tier3365, etc.
[49:32] agencies I think should also
[49:36] retain a regulatory or statutory
[49:38] excuse me escape escape hatch if
[49:40] a project delay is due to issues
[49:42] like unexpected geological
[49:44] features novel technology
[49:47] challenges or significant public
[49:48] health questions, we would want
[49:50] the agency head to formally
[49:52] issue a public extension order
[49:54] adding say 60 to 90 days to the
[49:56] review period. but and I think
[49:58] this is key and this is key for
[49:59] all of our efforts when it comes
[50:00] to project approvals
[50:02] The agency needs to be
[50:04] transparent about why more time
[50:06] is needed, preventing
[50:08] applications from sitting on a
[50:09] desk due to understaffing or
[50:12] administrative neglect and I
[50:13] don't know enough about whether
[50:14] legally that means we should be
[50:16] public about these approvals or
[50:18] based on nondisclosure
[50:18] agreements. it could be more of
[50:20] an internal dashboard let's say
[50:23] on showing the status of project
[50:25] approvals but something to
[50:27] that effect may be helpful to
[50:28] us in terms of addressing this
[50:29] issue effectively.
[50:32] in terms of the third issue that
[50:34] was raised operational certainty
[50:38] and regulatory reform. Listen,
[50:40] we all know that companies are
[50:41] certainly turned off by delays
[50:44] and opaqueness. So the question
[50:45] I think we have to grapple with
[50:47] is really how to make sure this
[50:49] is not happening for
[50:50] understandable due diligence
[50:52] reasons or due to a developer or
[50:54] company's delay with providing
[50:55] information.
[50:57] first of all to share with you
[50:59] the number one permitting issue
[51:00] that we in the division of
[51:02] Economicvelopment here the most
[51:04] about tend to be from the
[51:06] federaler side. the US Army
[51:08] Corps of Engineers is particular
[51:10] not to pick on them but they
[51:12] often are cited as having some
[51:14] of the most extensive
[51:16] permitting delays uh, whether
[51:17] it's things for bat muscle
[51:20] habitat issues etc. I'm not
[51:21] an expert on federaler
[51:23] permitting but I have no doubt
[51:24] that West Virginia's federaler
[51:25] delegation would be
[51:28] open to any ideas to improve
[51:30] this and has likely moved the
[51:32] needle on federal permitting
[51:32] over the years and could
[51:33] continue to do so
[51:36] from my experience over this
[51:38] last year our West Virginia
[51:39] Department of Environmental
[51:42] Protection is regularly seen by
[51:44] companies as being a proactive
[51:45] partner with an enabling
[51:47] mentality towards industrial
[51:48] development in West Virginia
[51:50] while ensuring that clear
[51:52] guardrails are maintained and
[51:54] respected by these projects and
[51:55] just as a really sterling
[51:58] example. it only took120 days to
[52:00] award neworp's major source air
[52:03] permit compared to the near year
[52:03] that it usually takes for
[52:04] such activities
[52:08] Other key rule improvements that
[52:10] have been cited to us as being
[52:11] signals of strong business
[52:14] enablement of West Virginia and
[52:15] continue to demonstrate why
[52:16] we're such an attractive place
[52:18] to do business, include things
[52:20] like your privatization of
[52:21] workers' compensation, the
[52:22] elimination of the business
[52:25] franchise tax and of course
[52:25] right to work legislation
[52:28] and in addition to red tape
[52:30] reduction, the signals that West
[52:32] Virginia continues to send
[52:33] through prudent fiscal
[52:35] management, um, are also really
[52:37] highly valued by prospective
[52:39] investors paying down longterm
[52:41] liabilities like pension debt
[52:43] and unfunded employee benefits
[52:44] and maintaining budget
[52:45] surpluses are really widely
[52:45] applauded.
[52:49] so in terms of improvement ideas
[52:52] in this area. the forthcoming
[52:54] onestop permitting portal I
[52:55] think it's going to be a huge
[52:56] step forward for the state for
[52:59] business transparency and for
[53:01] the execution of the review
[53:02] process needed to move a project
[53:04] forward but maybe a process
[53:06] where agencies review
[53:09] applications in parallel rather
[53:12] than sequentially and can then
[53:13] report their approval status
[53:14] through a digital dashboard
[53:16] whether that be internal or
[53:17] public could help
[53:19] with both moving approvals
[53:20] forward more more quickly as
[53:22] well as helping all of us
[53:23] identify where those approval
[53:25] bottlenecks are really happening
[53:27] and that approval process, that
[53:29] dashboard could also take into
[53:30] effect approvals that have to
[53:32] happen at the local level which
[53:34] are of course the state has
[53:35] the opportunity to influence
[53:35] but not control
[53:39] there may also be ideas to
[53:40] consider although I didn't put
[53:42] them on the slide, um, about how
[53:44] changes to how legal
[53:46] challenges to major permits are
[53:48] handled by the courts, uh, could
[53:51] be an effort to improve
[53:52] processes where that type of
[53:54] challenge slows a permitting
[53:56] review down, uh, or even
[53:57] something that I think other
[53:59] states have employed where cash
[54:00] bonds are required from third
[54:02] parties seeking temporary
[54:05] injunctions that then can be
[54:06] used to cover project delay
[54:07] costs
[54:09] if that challenge is found to be
[54:10] without merit. Those are all the
[54:11] types of things that we might be
[54:11] able to consider.
[54:15] and finally
[54:19] the topic of that you
[54:20] asked me to discuss workforce
[54:22] participation alignment looking
[54:24] at how we structure state level
[54:25] educational and workforce
[54:28] pipelines to ensure that when a
[54:29] business expands in West
[54:30] Virginia there's a supply of
[54:32] skilled labor to meet those
[54:34] specialized needs particularly
[54:36] for data centers advanced
[54:38] manufacturing facilities and
[54:40] energy producers. Um, this issue
[54:42] is absolutely critical and I
[54:44] think in my mind it's probably
[54:45] the one I've spent even I
[54:45] definitely spread
[54:48] my time around that triad that I
[54:50] introduced earlier but but
[54:52] workforce is absolutely critical
[54:53] to in terms of west
[54:54] Virginia's economic health and
[54:56] attractiveness as a state to
[54:58] invest in. This is why Governor
[55:00] Morrissey has insisted that we
[55:01] do more as a state to integrate
[55:02] workforce and economic
[55:04] development coordination over
[55:05] the year the last year and a
[55:05] half
[55:08] and I'm pleased to tell you that
[55:11] K1w2 higher ed and workforce
[55:12] west Virginia which often
[55:14] operate you know in stovepipes
[55:16] have really been engaged in
[55:18] frequent discussions for the
[55:19] last several months on what we
[55:20] can do to ensure that our
[55:22] workforce pipelines which start
[55:24] in K12 and go all the way
[55:26] through of course to adult
[55:28] employment are strong, not just
[55:29] for West Virginia's employers
[55:30] and our perspective employers
[55:32] but certainly for our workers as
[55:33] well
[55:34] and while there's a lot of work
[55:36] going on in this regard, I
[55:38] wanted to call out four programs
[55:40] that I think are really helping
[55:42] us define how to ensure strong
[55:43] workforce pipelines for our
[55:44] employers.
[55:46] The West Virginia Investgrant
[55:48] that offers last dollar in
[55:51] financial aid covering up to100%
[55:53] of tuition for highdeman
[55:55] certificate and associate
[55:57] programs is really critical. so
[56:00] is the west Virginiavance grant
[56:01] which is administered by
[56:02] doctorctor Sarah Tucker in the
[56:05] Ctc system. This is a program
[56:06] that can create customized
[56:08] workforce training for companies
[56:10] that invest in West Virginia in
[56:12] partnership with the closest
[56:13] community or technical college
[56:14] to their
[56:15] location.
[56:18] and then there's our connecting
[56:20] talent to opportunity challenge.
[56:21] I'm really proud that West
[56:23] Virginia was chosen by the US
[56:24] Department of Education earlier
[56:27] this year as one of only10
[56:30] states to receive funding for an
[56:32] online talent marketplace where
[56:33] we are going to develop
[56:36] essentially a one stop platform
[56:37] that will include an online
[56:39] credential registry which will
[56:41] enable us to map courses
[56:43] statewide that are that are
[56:45] tied to high demand industries
[56:45] and occupations
[56:48] and make that visible to every
[56:49] West Virginia learner worker and
[56:49] employer
[56:52] a learning and employment record
[56:55] that will help our workers track
[56:56] and share credentials with
[56:59] employers and vice versa, making
[57:00] those employment decisions more
[57:02] reliable as well as efficient
[57:04] and the third piece of the CTO
[57:07] challenge is a skillsbased job
[57:10] description generator that will
[57:11] really, I think this is really
[57:12] important because this will help
[57:15] to decode the experience of our
[57:16] workers or our employees in
[57:18] terms of the skills that they
[57:19] possess and then it will also on
[57:20] the
[57:22] other side translate employer
[57:25] job descriptions into the skills
[57:26] that they really need for
[57:28] success and then help to match
[57:30] supply and demand more
[57:32] effectively and efficiently. Any
[57:33] of you who are involved in
[57:35] business or run a business know
[57:36] that we're often biased when
[57:38] we're looking at resumes at
[57:40] people who've had experience in
[57:42] our industry and show kind of
[57:44] just that clear progression and
[57:45] the reality is when it comes to
[57:46] West Virginia's workforce and
[57:48] the challenges that we have you
[57:49] know we have people that may be
[57:50] pivoting
[57:52] from one industry to another and
[57:54] the reality is they don't have
[57:55] to start from scratch they're
[57:56] able to pivot based on a skills
[57:58] set that they have earned in a
[58:00] certain industry and that
[58:01] they can use to to pivot
[58:03] effectively into the new
[58:05] industry or industries that they
[58:06] may not even know that they are
[58:07] actually qualified to do
[58:10] and then last but not least, I'm
[58:12] really excited about the career
[58:14] continuums being developed by
[58:16] the CTE team within our K-1w2
[58:18] system. These are formalizing
[58:20] frameworks for career
[58:22] development pathways, the start
[58:24] in elementary school with career
[58:27] awareness and exploration. They
[58:28] progress into the middle and
[58:29] high school stage where deeper
[58:32] work experiences can be had and
[58:33] credentials can start being
[58:35] earned. This sets our students
[58:37] and our future workers up for
[58:38] success with their postsecond
[58:40] ary training where they can
[58:42] build on what they've already
[58:43] been exposed to and have been
[58:44] fired up about, what they've
[58:46] earned in their earlier academic
[58:48] careers we're really working now
[58:50] to ensure that there's strong
[58:52] connective tissue for this
[58:54] continuum concept betweenk1w2
[58:56] higher education and the
[58:58] workforce stages so that as many
[59:00] West Virginia high schoolers as
[59:02] possible graduate with a strong
[59:04] sense of career direction. Just
[59:06] three examples of the continuums
[59:07] that have been developed and are
[59:08] available to West Virginia
[59:12] schools aviation utilities
[59:14] and energy and digital science
[59:16] which I might try to persuade
[59:17] Superintendent Blatt we could
[59:19] rename datataconomy but that's
[59:20] something that we'll that we'll
[59:22] work on going forward and these
[59:24] are all really exciting programs
[59:25] and while it didn't make it
[59:27] to the slide, I want to also
[59:28] share with you that we are
[59:30] actively investigating corporate
[59:32] partnerships for these
[59:34] continuums, uh, and for the post
[59:35] high school stages of work which
[59:37] will enable workers and our
[59:37] students who are our emerging
[59:38] workers
[59:41] to obtain work experience and
[59:42] credentials that really
[59:44] strengthen their paths in target
[59:46] industries it's one thing to
[59:48] train somebody for the
[59:50] conceptual, you know, roles that
[59:51] they may have or for an industry
[59:53] track it's another thing to have
[59:54] them trained immediately and
[59:56] directly by someone who most
[59:58] likely will hire them if they
[1:00:00] progress in a positive manner
[1:00:02] uh, because they've already made
[1:00:04] that investment in them starting
[1:00:06] earlier in their work study
[1:00:07] careers. we've had some
[1:00:08] conversations
[1:00:10] with data center and energy
[1:00:12] investors in this regard. some
[1:00:14] of you may be familiar with
[1:00:15] Hopeases Hopeaththways programme
[1:00:16] that's active in several West
[1:00:18] Virginia high schools. we're
[1:00:20] also talking with companies like
[1:00:22] Home Depot Justin you may be
[1:00:24] particularly interested in this
[1:00:25] that they've developed a path to
[1:00:27] propilot program to generate
[1:00:28] more skilled trade workers for
[1:00:30] example. So I hope that we'll
[1:00:32] continue to have more to share
[1:00:33] on this front soon too.
[1:00:36] and then lastly I just wanted to
[1:00:37] share with you that driven
[1:00:38] largely by that connecting
[1:00:40] talent to opportunity challenge
[1:00:42] that I mentioned earlier. We are
[1:00:44] really working to develop
[1:00:46] transparent career tracking and
[1:00:48] mapping capabilities for key
[1:00:49] industrial sectors but like the
[1:00:50] ones the three that you called
[1:00:52] out, modern data centers,
[1:00:54] advanced manufacturing and
[1:00:56] energy. and as per these
[1:00:58] charts we actually think we're
[1:01:00] going to be able to have access
[1:01:01] to the data and we'll be able to
[1:01:03] aggregate it to determine West
[1:01:03] Virginia's labor fore
[1:01:06] cast needs based in part on
[1:01:07] national Bureau of Labor
[1:01:09] statistics data as well as the
[1:01:10] data that we collect from West
[1:01:13] Virginia employers. We can map
[1:01:14] those roles then to credentials
[1:01:15] needed
[1:01:18] and then what we can do is map
[1:01:20] target roles and occupations to
[1:01:22] specific West Virginia training
[1:01:24] programs which helps us both
[1:01:26] identify gaps or maybe where we
[1:01:28] have abundance in terms of
[1:01:29] certain training programs and
[1:01:31] then this of course informs both
[1:01:33] our higher education and CTc
[1:01:35] system for their planning and
[1:01:36] programmatic investment purposes
[1:01:38] so we can ensure that we're
[1:01:40] building strong pipelines that
[1:01:42] will lead to employment not just
[1:01:44] to academic study but it also
[1:01:45] allows us to really crisply
[1:01:49] share career pathways from idea
[1:01:51] to available training program
[1:01:52] with our workers and employers.
[1:01:55] I know I've shared a lot of
[1:01:56] information with you. I hope it
[1:01:58] was helpful and I'd be happy
[1:01:59] to take questions.
[1:02:02] think you deputy Secretary
[1:02:03] Davies
[1:02:05] are there questions
[1:02:11] delegate from the18th
[1:02:13] thank you Mr Chairman. I guess
[1:02:15] I'll get us started off here
[1:02:16] over here OKok
[1:02:18] thank you thank you for the
[1:02:20] presentation. I think there are
[1:02:22] lots of great incentives that we
[1:02:23] will all been working on for
[1:02:23] years and
[1:02:25] it seemed like some of it is
[1:02:27] starting to pay off. I'm in
[1:02:27] Mason County
[1:02:31] so as you know I'm sure we have
[1:02:32] a lot of development going on
[1:02:34] there and we're we're most of us
[1:02:35] are grateful for that I
[1:02:36] certainly am
[1:02:40] one issue that we have run into
[1:02:42] that maybe we didn't anticipate
[1:02:43] was a lack of housing
[1:02:46] for I mean we're gonna have
[1:02:50] you know to havepe employees
[1:02:52] kids graduating high school or
[1:02:53] whatever the job training
[1:02:54] programs you're talking about.
[1:02:56] So that certainly is a big part
[1:02:58] of it but what we're finding is
[1:03:00] and we're a border county and
[1:03:01] obviously we know we have a lot
[1:03:01] of communities along the borders
[1:03:05] and I was just speaking with
[1:03:06] someone who's a higher level
[1:03:10] manager of one of these
[1:03:12] facilities the living50 miles
[1:03:14] away because they couldn't find
[1:03:17] housing close by and in some
[1:03:18] cases they're going
[1:03:21] across the river in my case in
[1:03:24] Ohio to live because we don't
[1:03:25] have the housing available in
[1:03:26] Mason County
[1:03:30] So I don't know what the answer
[1:03:32] to this is. I don't know if this
[1:03:33] is something that is on your
[1:03:37] radar so if if you have
[1:03:38] things available that I'm not
[1:03:40] aware of maybe I need to catch
[1:03:41] up with you or maybe you can let
[1:03:44] us know or if you're not already
[1:03:45] working on it this is something
[1:03:46] we need to consider I think so
[1:03:48] thank you sir let me just
[1:03:49] emphasize it definitely is on
[1:03:50] our radar. thank you so much for
[1:03:52] raising it. I will tell you the
[1:03:54] reason my deputy Todd Hooker who
[1:03:55] many of you know is not here
[1:03:56] today he's actually with the
[1:03:57] advantage Valley Organ
[1:03:57] organization at a hous
[1:04:00] ing kind of brainstorming
[1:04:02] session thinking about what we
[1:04:04] can do just a couple of other
[1:04:05] quick thoughts I will actually
[1:04:06] be spending a day in Washington
[1:04:08] Dc next week learning how much
[1:04:10] federal funding we might be able
[1:04:12] to pull for housing development,
[1:04:14] uh, not just for low income
[1:04:15] but certainly
[1:04:18] y pe s of housing that we would
[1:04:20] want to develop workforce
[1:04:21] housing as I believe it's often
[1:04:23] called across the state and the
[1:04:24] last thing I'll say is that
[1:04:26] there's typically two stages
[1:04:28] that we have to figure out you
[1:04:29] know where we let the markets
[1:04:30] dictate or where we potentially
[1:04:32] help to agitate and that's of
[1:04:34] course the development again of
[1:04:36] sites that need to be ready
[1:04:38] then for the second stage which
[1:04:39] are for developers to step in
[1:04:40] and actually start building the
[1:04:42] units and my understanding from
[1:04:43] the housing community although I
[1:04:44] keep encouraging them to get me
[1:04:46] more data, not just opinions
[1:04:49] um, is that we tend to invest a
[1:04:51] lot more in that second stage of
[1:04:52] really trying to incentivize the
[1:04:54] unit production when the reality
[1:04:56] is if we're missing that first
[1:04:57] step and we don't have sites
[1:04:58] that are ready for housing
[1:04:59] development for develop
[1:05:04] So definitely something we're
[1:05:06] working on I'd love to keep in
[1:05:08] touch with you I know it's huge
[1:05:09] for Mason County but it's huge
[1:05:09] for the
[1:05:16] thank you delegate senior
[1:05:17] senator from the fourth. thank
[1:05:19] you Mr Chairman. On page for
[1:05:20] you're talking about a few
[1:05:22] things that have been positive
[1:05:23] in the conversations you've had
[1:05:24] with employers coming to west
[1:05:26] Virginia when you mentioned
[1:05:27] privatization of workers' comp,
[1:05:28] elimination of the business
[1:05:30] franchise tax and their right to
[1:05:31] work legislation.
[1:05:33] in those discussions
[1:05:36] do you ever also have
[1:05:38] discussions on personal property
[1:05:39] tax here versus if they land
[1:05:39] somewhere else
[1:05:44] infrastructure or the PT the
[1:05:45] personal income tax side of it.
[1:05:48] is there a consistency amongst
[1:05:49] your conversations with regards
[1:05:51] to those or are they mentioned
[1:05:51] at all
[1:05:52] have been
[1:06:02] that if west Virginia if we
[1:06:03] continue to make a case of our
[1:06:04] competitiveness and our
[1:06:06] difference you know, especially
[1:06:07] among our neighbors in those
[1:06:09] areas they will be noticed by
[1:06:11] business. they will be they
[1:06:12] will add to the plus side of why
[1:06:14] West Virginia is a great place
[1:06:16] to invest to bring employees
[1:06:18] to have those employees build a
[1:06:19] life etc. and have that ripple
[1:06:19] effect.
[1:06:22] when you follow up with
[1:06:23] employers as they've located
[1:06:27] to see what they experience
[1:06:30] has been in West Virginia is
[1:06:32] there a is there a common theme
[1:06:33] amongst what they feel like they
[1:06:34] need that they didn't get
[1:06:38] Question I mean we certainly are
[1:06:41] in touch with employers long
[1:06:42] after you know the announcements
[1:06:44] are made and there's any sort of
[1:06:46] a ribbon cutting. Listen, I mean
[1:06:47] I think they continue to grapple
[1:06:48] with the same challenges that
[1:06:50] any business does trying to
[1:06:52] continue to find that workforce,
[1:06:54] um, is probably top among the
[1:06:59] why we're introducing workforce
[1:07:00] even earlier into the
[1:07:02] conversations with prospects
[1:07:04] for West Virginia so that's an
[1:07:05] area again
[1:07:22] ear 2 year3, etc.
[1:07:28] Thank you senator further
[1:07:29] questions
[1:07:31] delegate from the
[1:07:32] eth
[1:07:38] thank you thank you Mr Chairman.
[1:07:39] thank you madam Secretary.
[1:07:40] appreciate you being here was
[1:07:44] looking at some of the appendix
[1:07:45] materials that you provided here
[1:07:47] admittedly it's tiny so I'm
[1:07:50] hoping re reading this correctly
[1:07:52] but I noticed a couple soft
[1:07:55] sectors in there and I'll
[1:07:56] mention one or two particularly
[1:07:58] and was curious if you could
[1:08:00] comment on it because I'm
[1:08:01] looking at it from a long term
[1:08:02] perspective particularly what
[1:08:04] stood out to me was let's see if
[1:08:06] I can read this here really tiny
[1:08:07] gosh
[1:08:11] plant and system operators and
[1:08:14] similar type trades under energy
[1:08:16] I think it's the first one and I
[1:08:17] think I see a decline of
[1:08:20] 286 % if I'm reading that
[1:08:21] properly
[1:08:24] does that look right it looks
[1:08:26] right I will tell you I mean to
[1:08:27] some degree this is
[1:08:28] demonstrative but that is what
[1:08:30] the data is telling us right now
[1:08:31] for that particular role. I was
[1:08:32] just curious if you had any
[1:08:34] thoughts with regards to that
[1:08:35] because that sounds
[1:08:37] counterintuitive to where we're
[1:08:38] trying to go with especially hey
[1:08:40] we want to go50 to50 and all the
[1:08:42] rest of that we're gonna need
[1:08:44] people to operate those plants
[1:08:45] and and things like that
[1:08:48] try to rely on the data and
[1:08:50] statistics to show us sometimes
[1:08:52] I will say BLS data is a bit
[1:08:54] more backwardlook in terms of
[1:08:55] you know
[1:08:57] what we've seen over the last
[1:08:59] couple of years so we have to
[1:09:00] keep that in mind but it may be
[1:09:02] that that particular role may be
[1:09:03] seeing a bit of a decline but
[1:09:06] there are certainly others roles
[1:09:07] within the energy industry that
[1:09:10] based on you know the profile of
[1:09:12] power plants coming back online
[1:09:14] and data center development etc.
[1:09:16] we'll see certain roles grow
[1:09:18] much more highly than we would
[1:09:19] other roles.
[1:09:21] I think it'll be a bit of a
[1:09:21] mixed basket
[1:09:24] think what I'm taking away from
[1:09:26] that is you know maybe we ought
[1:09:27] to look at that a little further
[1:09:29] or at least personally rather
[1:09:32] than take this as you know a a
[1:09:33] hard and fast number and
[1:09:35] make plans accordingly I think
[1:09:36] that's fair we should always
[1:09:38] question data that we're getting
[1:09:40] before we're making pure
[1:09:41] decisions but I do think it's a
[1:09:43] signal often of where you know
[1:09:45] the the potentially the best
[1:09:46] areas are for us to invest in
[1:09:48] terms of amplifying roles
[1:09:50] that we're trying to move our
[1:09:51] workers into so
[1:09:52] thank you appreciate it thank
[1:09:53] you Mr Chair
[1:09:57] think you'd get the chair
[1:09:57] recognizes the delegate from the
[1:09:58] seventyninth.
[1:10:02] Thank thank you Mr chair
[1:10:05] I'm over here in the corner
[1:10:07] thank you for being here and for
[1:10:10] your testimony the the mega
[1:10:12] projects that you refer to do
[1:10:13] those include data center
[1:10:16] a great question. I don't
[1:10:19] believe it does in terms of the
[1:10:20] research out of Michigan for
[1:10:22] example. because they're so
[1:10:24] new to the development scene.
[1:10:26] mostst of the research that's
[1:10:27] been done has been over megaros
[1:10:28] in the industrial development
[1:10:29] manufacturing space.
[1:10:32] you're talking about the
[1:10:34] Michigan research it sounds like
[1:10:35] would say both the Michigan
[1:10:36] research as well as what we know
[1:10:38] about defining a megaproject
[1:10:39] traditionally has been more in
[1:10:41] the manufacturing space. I
[1:10:42] wouldn't be comfortable
[1:10:43] inferring a lot about
[1:10:48] So in your slide I'm looking at
[1:10:50] the second slide, the first one
[1:10:52] after the cover page and it
[1:10:53] refers to speed to build
[1:10:55] as the number one issue
[1:10:59] is that relevant to data
[1:10:59] centers?
[1:11:10] and part of the speed to build
[1:11:14] for data centers the removal of
[1:11:17] local control in House Bill2014
[1:11:18] my
[1:11:30] so you do you have any
[1:11:32] indication from data center
[1:11:33] developers whether
[1:11:37] the lack of local control is is
[1:11:38] having an impact on their
[1:11:39] sighting decisions
[1:11:46] that west Virginia's
[1:11:50] positive appetite for economic
[1:11:51] development certainly resonates
[1:11:54] with developers of manufacturing
[1:11:55] facilities, data centers and
[1:11:56] across the board which I think
[1:11:57] is a really welcome thing for
[1:11:57] our state
[1:12:01] and then the the first bullet
[1:12:02] point talks about incentives
[1:12:06] are you are you familiar with
[1:12:08] the incentive for data centers
[1:12:09] to
[1:12:11] tax them at their salvage value
[1:12:13] for certain taxes rather than
[1:12:16] the full value that'm not as
[1:12:18] knowledgeable about again the
[1:12:20] data's economy piece is a bit
[1:12:21] out of my purview. I will tell
[1:12:22] you that salvage value taxation
[1:12:24] I know in our5 for10 program
[1:12:25] that's something that we have
[1:12:28] traditionally offered, uh, for
[1:12:30] manufacturers and so I'm sure
[1:12:31] that that would be a
[1:12:35] notable to investors is that
[1:12:35] because
[1:12:39] taxing the data center servers
[1:12:41] that salvage value is a better
[1:12:42] deal for data center developers
[1:12:44] than surrounding states don't
[1:12:58] OK. and then your last bullet
[1:13:02] about the50 by50 plan and the
[1:13:03] grid upgrades
[1:13:07] if west Virginia were to expand
[1:13:07] to50 gigawatts
[1:13:12] that would be roughly3 times the
[1:13:13] generation capacity that we have
[1:13:20] Would that mean that West
[1:13:22] Virginia would be exporting more
[1:13:23] of its electricity
[1:13:25] and therefore need more
[1:13:26] transmission lines to get that
[1:13:28] electricity to where it's needed
[1:13:29] think that's
[1:13:48] it but to some degree it's
[1:13:49] always a
[1:13:51] where that goes
[1:13:54] do you know how much of the16
[1:13:55] gigawatts that we're generating
[1:13:56] now is consumed in state
[1:14:03] Because I I think if West
[1:14:04] Virginia were to consume the fi0
[1:14:05] gigawatts that'd be a
[1:14:09] an extremely remarkable increase
[1:14:12] in consumption of electricity
[1:14:13] within the state exciting things
[1:14:18] these transmission lines that
[1:14:19] are going to be needed to
[1:14:20] transport the electricity from
[1:14:23] the power plants to the end
[1:14:24] users who should pay for those
[1:14:41] the ratepayers
[1:14:44] So they they should be borne by
[1:14:46] the the businesses that caused
[1:14:48] the need for those great
[1:14:49] expansions not on everyday
[1:14:50] ratepayers would say that
[1:15:04] be spurring the need for
[1:15:11] Thank you thank you Mr chair
[1:15:16] thank you chair recognizes the
[1:15:17] delegate from the fortyfirst.
[1:15:20] Hey Mr Chairman. thank you Miss
[1:15:21] Davies for being here and your
[1:15:23] presentation. Well done.
[1:15:24] quick question for you as we're
[1:15:27] talking about shot clocks and
[1:15:28] you know, speed to permitting
[1:15:31] speed tomark, OK? I think all
[1:15:32] of us recognize you know the
[1:15:34] better we get in that area, the
[1:15:36] more attractive we are and the
[1:15:37] the better environment that we
[1:15:40] have in that as we move the ball
[1:15:43] forward on that do we have
[1:15:43] currently the personnel
[1:15:48] that does the reviewing of the
[1:15:50] applications and the digging in
[1:15:53] if you will do we have the the
[1:15:55] adequate amount of personnel and
[1:15:56] budget for those purposes
[1:15:57] currently?
[1:16:03] nalysis of I would say certainly
[1:16:04] from my experience over the last
[1:16:05] year and a half
[1:16:08] lastst year, there are
[1:16:10] periods where it would be nice
[1:16:12] to be able to add capacity I
[1:16:13] would say to our permitting
[1:16:14] review but it's also somewhat
[1:16:16] unpredictable. um, so I would
[1:16:18] say that I think our teams
[1:16:19] across the board in West
[1:16:20] Virginia state government are
[1:16:22] doing a heck of a job. and I
[1:16:23] think the best thing that we
[1:16:24] could do in addition to looking
[1:16:25] at
[1:16:37] the right balls forward
[1:16:40] yes I appreciate that and and
[1:16:42] I'd like to continue this
[1:16:43] conversation as we go into
[1:16:44] session because this is a
[1:16:46] critical issue that we have to
[1:16:47] address and we have to get
[1:16:49] better at and so we all need to
[1:16:50] work comprehensively together to
[1:16:53] figure out what are the
[1:16:54] applications that we can do
[1:16:56] simultaneously as you said what
[1:16:57] are the necessary shot clocks
[1:17:00] what makes sense but I I don't
[1:17:01] want West Virginia government
[1:17:04] to be the hindrance to projects
[1:17:06] getting done and so as we go
[1:17:08] forward if we need to talk about
[1:17:10] added personnel in various
[1:17:11] departments etc. I think that's
[1:17:12] that's something that's gonna
[1:17:13] be very important going forward
[1:17:15] happy to work with you on that
[1:17:15] you Mr Chairman.
[1:17:18] thank you delegate I I'll just
[1:17:19] follow up on that personally
[1:17:21] I know that you don't have an
[1:17:22] idea of quantitatively whether
[1:17:24] we have a shortage or not but
[1:17:25] I've I've heard stories
[1:17:27] anecdotal anecdotally at least
[1:17:28] in the eastern panhandle where I
[1:17:29] represent
[1:17:32] that there's competition in
[1:17:33] the private sector for instance
[1:17:34] for your experts like your
[1:17:36] engineers, your your technical
[1:17:38] experts cause you know the the
[1:17:40] municipalities, the counties
[1:17:42] need them and their technical
[1:17:43] expertise and their degrees and
[1:17:46] qualifications to to analyze and
[1:17:48] improve these complex permits
[1:17:49] but then there's also the
[1:17:51] private sector that is
[1:17:52] drawing them you know at at
[1:17:54] higher salaries and so I've
[1:17:58] certainly seen that where you
[1:17:59] know we've we've lost
[1:18:03] a key permitter working for the
[1:18:06] local government which delayed
[1:18:08] permits and just anecdotally
[1:18:10] have you are you aware of
[1:18:10] instances like that around the
[1:18:12] state is that a pervasive
[1:18:12] problem or have you not heard
[1:18:14] much about that? I haven't heard
[1:18:15] much about as much
[1:18:48] I appreciate that let's keep
[1:18:50] this conversation going because
[1:18:54] if if a shortage of experts or
[1:18:58] or or you know engineers etc. if
[1:19:00] that is the problem you know
[1:19:02] that maybe it's a funding
[1:19:03] problem where we as the
[1:19:06] legislature can can help to
[1:19:08] boost the ranks or perhaps the
[1:19:10] compensation of the permitters
[1:19:12] to shield them from competition
[1:19:14] to some degree from the private
[1:19:15] sector so that we're not losing
[1:19:16] personnel with expertise and
[1:19:16] then that
[1:19:18] ' s causing the projects to be
[1:19:20] delayed so let's let's I
[1:19:22] appreciate that any any feedback
[1:19:23] you've got as we move into
[1:19:24] session on that
[1:19:27] the delegate from the 13th did
[1:19:27] you have a question?
[1:19:31] J recognizes you. Thank you.
[1:19:31] thank you ma'am for being here.
[1:19:36] for every major incentive
[1:19:36] will the state disclose the
[1:19:38] recipient the value the promised
[1:19:41] jobs the wages performance to
[1:19:44] date and any subject clawback
[1:19:46] that would come with it and if
[1:19:47] not why
[1:19:51] delegate believe we disclose
[1:19:52] everything that we are legally
[1:19:53] allowed to. So I need to go back
[1:19:54] and review if there's anything
[1:19:56] that you just mentioned that we
[1:19:57] truly are not allowed to
[1:19:58] disclose that would be an answer
[1:20:01] of no, but absolutely I think we
[1:20:02] should be as transparent as
[1:20:03] possible both with the
[1:20:05] legislature as well as with the
[1:20:08] the the residents of of west
[1:20:09] Virginia about where their tax
[1:20:10] dollars are going and intended
[1:20:12] to spur economic development and
[1:20:13] what the results of those
[1:20:14] investments are.
[1:20:16] thank you one other question is
[1:20:18] how will the administration
[1:20:22] prevent a fast track process
[1:20:23] from favoring politically
[1:20:26] connected or large companies
[1:20:27] over existing small businesses
[1:20:27] or local
[1:20:30] businesses from competing
[1:20:35] that's a trust in the in the
[1:20:40] the goodwill of our economic
[1:20:40] development and our state
[1:20:42] government resources I think
[1:20:44] that there is pressure, you
[1:20:46] know, certainly exerted on both
[1:20:47] sides of the equation that you
[1:20:48] just mentioned sometimes for the
[1:20:50] larger projects, sometimes we
[1:20:52] get a lot of pressure on the
[1:20:53] smaller projects as well which
[1:20:54] we welcome awareness being
[1:20:56] raised of of what is
[1:20:58] important but I do think that
[1:21:00] it's really important that we
[1:21:02] don't treat them as two separate
[1:21:04] entities that we recognize
[1:21:06] there's value especially from
[1:21:07] the smaller projects and we
[1:21:07] can't let the pur
[1:21:10] su it of fast tracking big
[1:21:12] projects overtake really what
[1:21:12] has been the backbone of West
[1:21:13] Virginia's economy.
[1:21:16] thank you thank you very much
[1:21:17] ma'am for answering the
[1:21:18] questions and thank you for
[1:21:19] being here and thank you Mr.
[1:21:19] Chairman.
[1:21:22] thank you delegate. Are there
[1:21:23] further questions?
[1:21:24] senior senator from the fourth
[1:21:28] thank you Mr chairman for
[1:21:30] recognizing me a second time
[1:21:31] I had a question about the
[1:21:32] housing development as well we
[1:21:33] several years ago
[1:21:36] the senate had legislation in
[1:21:38] front of us Mountain Homes
[1:21:40] actct it's been in in front of
[1:21:40] us a few times. Are you familiar
[1:21:42] with that legislation it was
[1:21:44] House Bill5509 this past
[1:21:45] session.
[1:21:46] and
[1:21:48] you mentioned about part of
[1:21:50] the problem that we have with
[1:21:52] getting housing here is the
[1:21:53] upfront site development having
[1:21:53] a spot that's ready
[1:21:58] that legislation is very
[1:21:59] specific to that issue.
[1:22:01] so that it's
[1:22:06] the what was explained to to to
[1:22:07] me when we were developing that
[1:22:07] legislation and some others
[1:22:11] is that theerry the capitalit
[1:22:12] carry cost that you're going
[1:22:13] through when you're doing the
[1:22:16] horizontal development getting
[1:22:16] ready for housing so you got you
[1:22:18] got dirt to sell but in houses
[1:22:19] aren't going up yet.
[1:22:23] that carry cost in West Virginia
[1:22:24] is extraordinary relative to
[1:22:26] some of our bordering areas
[1:22:27] where people are developing
[1:22:28] across the river somewhere from
[1:22:32] us. and so cap rates or the
[1:22:34] risk rate goes up and which even
[1:22:35] increases the capital carery
[1:22:36] even more
[1:22:38] That legislation is designed to
[1:22:39] help make that more competitive.
[1:22:44] I I would appreciate you guys
[1:22:45] taking a look at that relative
[1:22:46] to conversations you've had for
[1:22:48] housing attracting developers
[1:22:49] to West Virginia
[1:22:52] and see where the changes would
[1:22:53] be need needed in that
[1:22:53] legislationta Bill5509.
[1:22:57] it's and essentially what it
[1:22:58] does is it goes in and and
[1:23:02] helps banks loan to these
[1:23:03] developers at a cheaper rate
[1:23:06] to get the horizontal done so
[1:23:07] then we can start getting
[1:23:07] foundations
[1:23:10] ra is ing that it has not been
[1:23:12] raised in conversations with
[1:23:13] housing developers but it's
[1:23:14] great to know there may be a
[1:23:15] vehicle to start with that we
[1:23:16] could look at thank you thank
[1:23:17] you
[1:23:21] thank you Senator. Are there any
[1:23:21] further questions?
[1:23:26] seeing none deputy Secretary
[1:23:27] Davies thank you so much for
[1:23:28] your testimony thank you for
[1:23:29] being here today we really
[1:23:29] appreciate it.
[1:23:33] Next up we'll have testimony
[1:23:34] from the secretary of state's
[1:23:35] office
[1:23:38] we have Mr Donaldersey with us I
[1:23:39] believe and also
[1:23:43] Miss is it Leslie Taylor as well
[1:23:49] would you please both approach
[1:23:49] and raise your right hand.
[1:23:55] Do you swear to tell the truth,
[1:23:56] the whole truth and nothing but
[1:23:57] the truth under penalty of false
[1:23:58] swearing
[1:24:00] Please introduce yourselves
[1:24:02] and and proceed with your
[1:24:03] testimony thank you for being
[1:24:03] here.
[1:24:09] good morning thank you Chairman
[1:24:10] Willis, Chairman Akers, mi
[1:24:12] members of the committees
[1:24:13] appreciate you being here
[1:24:17] I want to introduce Leslie
[1:24:18] Taylor she's our coordinator for
[1:24:20] the office of entrepreneurship
[1:24:21] first I want to thank you for
[1:24:21] your support in the last
[1:24:22] legislative session
[1:24:24] and kind of tell you how we
[1:24:25] got here
[1:24:26] or remind you perhaps
[1:24:28] when
[1:24:33] I came to this office in2017,
[1:24:34] I was primarily focused on
[1:24:36] elections and I've only been
[1:24:38] chief of staff for the last
[1:24:40] couple of years and one of
[1:24:42] the most common questions I got
[1:24:43] that was not elections related
[1:24:47] was how do I start a business?
[1:24:49] Where do I go next? They always
[1:24:50] came to us if you pull out your
[1:24:52] phone right now you can google
[1:24:53] how do I start a business in
[1:24:53] west Virginia
[1:24:56] we're gonna be the first4 or5
[1:24:58] results among some other
[1:25:00] LegalZoom and other third party
[1:25:01] assistants organizations that
[1:25:01] pop up
[1:25:06] that was important for me to
[1:25:08] learn when we were trying to
[1:25:09] figure out how to answer that
[1:25:10] question because how many
[1:25:12] agencies do we have in the state
[1:25:14] that help businesses we just
[1:25:16] heard from commerce we heard
[1:25:17] from EDA we have West Virginia
[1:25:18] hive we have small business
[1:25:20] development centers we have
[1:25:22] innovation innovations we have
[1:25:24] universities we have all
[1:25:26] sorts of organizations from
[1:25:28] state and local regionally
[1:25:30] even that do this kind of work
[1:25:32] but if you don't know where to
[1:25:33] go
[1:25:33] you go to google
[1:25:36] and when you google it you get
[1:25:37] us.
[1:25:40] so we researched the country
[1:25:42] to see what other states are
[1:25:43] doing to help small businesses
[1:25:45] get their foot in the door and
[1:25:46] then continue down their path to
[1:25:48] success and it's these offices
[1:25:49] of entrepreneurship.
[1:25:51] so thank you for your support in
[1:25:53] that. Leslie is our coordinator
[1:25:54] she's been with us for a full
[1:25:55] two months now
[1:25:58] and I'm excited for you to
[1:25:58] hear what she's been doing
[1:26:04] but before she begins I I do
[1:26:05] want to say that it's still
[1:26:07] early yet she's done a lot
[1:26:08] and we're very proud and we're
[1:26:10] very excited with what's to come
[1:26:12] I think she's got the number
[1:26:13] of days quite literally down to
[1:26:14] the day to tell you how long
[1:26:16] she's been working with us so I
[1:26:17] encourage you in her first
[1:26:19] opportunity to be before the
[1:26:22] legislature in her career
[1:26:23] to ask her questions about not
[1:26:24] just what she's working on
[1:26:26] but what we're seeing around the
[1:26:27] country what we're seeing around
[1:26:28] West Virginia and where we see
[1:26:29] some opportunities for growth
[1:26:29] to really benefit our small
[1:26:32] businesses. Thank you chairman
[1:26:33] and Leslie.
[1:26:50] Good morning. thank you
[1:26:52] chairman for having me and thank
[1:26:54] you members for hearing me this
[1:26:55] morning.
[1:26:58] I'm excited to share the work
[1:26:59] that I've been doing in the west
[1:27:00] Virginia Office of
[1:27:00] ntrepreneurship.
[1:27:04] Before I was anything else I was
[1:27:05] my papa's favorite grandchild.
[1:27:08] there are almost 20 of us so
[1:27:10] that becomes very important when
[1:27:12] you think about the amount of
[1:27:13] seats in his tiny Ford Ranger.
[1:27:16] being the favorite came with
[1:27:18] many different opportunities but
[1:27:20] maybe none more enduring than
[1:27:22] the opportunity to spend time
[1:27:24] growing up in Sharp's hardware
[1:27:25] and supplies a little way up
[1:27:26] route 60 in Cedar Grove.
[1:27:30] my time spent in the hardware
[1:27:33] I've now learned that it was not
[1:27:34] the fact that mama needed help
[1:27:37] while papa was at work. It was
[1:27:38] him teaching me really important
[1:27:39] life
[1:27:44] I learned how to run the cash
[1:27:45] register, count change
[1:27:47] I learned the importance of not
[1:27:48] mixing the bolts together if you
[1:27:49] would like to eat warm dinner.
[1:27:53] and what has become more
[1:27:55] apparent to me now than it ever
[1:27:57] has been the importance of small
[1:27:58] business in our communities.
[1:28:01] more than a place where people
[1:28:02] brought bought their hardware
[1:28:03] supplies
[1:28:06] This hardware became a place
[1:28:08] where my mama sewed prom dresses
[1:28:10] for the tradespeople. She made
[1:28:11] their wedding cakes
[1:28:14] it was a warm cup of coffee
[1:28:16] offered to somebody who didn't
[1:28:17] have anybody else at home to
[1:28:18] talk to and a conversation.
[1:28:21] it's that you're never too busy
[1:28:22] to take a moment
[1:28:26] to close down the shop and drive
[1:28:27] to someone's house because you
[1:28:28] haven't seen them this week.
[1:28:32] These businesses are more than
[1:28:33] just the goods and services that
[1:28:33] they sell.
[1:28:35] they are cornerstones of our
[1:28:36] community.
[1:28:39] I'm sure many of you have fond
[1:28:41] memories of very similar places
[1:28:42] that have become these
[1:28:43] cornerstones of your childhood.
[1:28:46] I have just been fortunate
[1:28:47] enough to have a front
[1:28:51] The folks who take a chance on
[1:28:52] starting a business
[1:28:54] make their dreams come true,
[1:28:56] employ our neighbors are what
[1:28:58] makes West Virginia a great
[1:28:59] place to live work and raise a
[1:29:00] family.
[1:29:01] it is my upbringing
[1:29:04] my own small business ownership
[1:29:08] and my nearly decade of
[1:29:10] identifying problems and
[1:29:12] implementing solutions that have
[1:29:14] guided my work in the53 working
[1:29:16] days since this office opened
[1:29:17] its doors to the public.
[1:29:20] Since July 1st, I've spoken with
[1:29:21] entrepreneurs who are
[1:29:21] experiencing issues
[1:29:24] who just needed a place to
[1:29:25] start.
[1:29:27] like Dike said, how do I start a
[1:29:28] business?
[1:29:31] I've been able to work out
[1:29:33] resolutions connect them with
[1:29:34] our resource partners and ensure
[1:29:36] that if a process is burdensome
[1:29:37] that they do not walk it alone.
[1:29:40] What used to start with somebody
[1:29:44] going through a phone tree or
[1:29:45] being on hold now starts with me
[1:29:48] they call my phone number and
[1:29:49] they get my answer.
[1:29:50] the only reason I don't answer
[1:29:52] the phone is if I am somewhere
[1:29:53] like here
[1:29:54] or on the other line with an
[1:29:55] entrepreneur.
[1:29:58] in addition to these meetings
[1:30:00] with our entrepreneurs I have
[1:30:01] met with our entrepreneur
[1:30:02] support organizations.
[1:30:05] I want to make sure that we
[1:30:06] coordinate efforts
[1:30:08] make sure my servicess are not
[1:30:09] duplicative
[1:30:12] and ensure that we all put our
[1:30:14] best foot forward and make doing
[1:30:15] business in West Virginia as
[1:30:15] frictionless as possible.
[1:30:20] in my conversations with several
[1:30:22] people it wasn't even as simple
[1:30:24] as getting someone on the phone.
[1:30:25] Oftentimes you sit on hold
[1:30:28] you finally get someone and they
[1:30:29] say well you can just read the
[1:30:30] code
[1:30:34] because I'm here that answer is
[1:30:35] no longer going to be
[1:30:36] acceptable.
[1:30:40] By allowing access to a real
[1:30:41] person through this office
[1:30:44] I get a phone call an email and
[1:30:45] I get to work
[1:30:46] it is no longer the burden of
[1:30:48] the entrepreneur to sit and try
[1:30:50] to sort out who they need to
[1:30:51] talk to or where they need to go
[1:30:52] I can take control of the
[1:30:53] problem
[1:30:58] My most recent example is out of
[1:30:59] the southern part of our state.
[1:31:00] I have a family who wants to
[1:31:01] develop a natural spring
[1:31:04] into a business where people
[1:31:06] come they drive their trucks up
[1:31:07] they fill their trucks with
[1:31:07] water and they leave.
[1:31:09] I thought that this sounded
[1:31:10] relatively simple
[1:31:13] you know, I know that health
[1:31:14] departments do water well
[1:31:15] testing
[1:31:16] so I called the health
[1:31:17] department
[1:31:20] and and through no fault of what
[1:31:21] I believe their own. I don't get
[1:31:21] an answer.
[1:31:25] but I'm trying. I'm on this48
[1:31:26] hour deadline and I take it
[1:31:27] seriously
[1:31:29] so I called the department of
[1:31:29] Environmental Protection
[1:31:32] He says ma'am that's a health
[1:31:33] department problem
[1:31:36] ok I called the health
[1:31:38] department back and thanks to
[1:31:39] their elected official I finally
[1:31:39] get somebody
[1:31:42] and they tell me no ma'am that's
[1:31:43] a public utility
[1:31:46] all right so now I'm calling the
[1:31:47] Psc
[1:31:49] no ma'am that's a health
[1:31:50] department problem.
[1:31:54] and you can see where I have
[1:31:55] some time dedicated to this. I
[1:31:56] have an office and
[1:31:59] I'm happy to to sort these
[1:32:00] issues out. where that becomes
[1:32:03] very burdensome, especially when
[1:32:04] you talk about somebody whose
[1:32:05] other income is also small
[1:32:06] business.
[1:32:09] they have a duty to serve their
[1:32:09] own customers
[1:32:12] they need to make the dollar to
[1:32:13] pay their bills to feed their
[1:32:14] family
[1:32:17] it's not fair to have to sit and
[1:32:17] wonder
[1:32:26] Where that currently stands as
[1:32:28] I'm outsourced I've been put
[1:32:29] pushed up a level in the Bureau
[1:32:30] of Public Health to a gentleman
[1:32:32] I finally got on the phone and
[1:32:33] he said, I'll get to the bottom
[1:32:33] of it.
[1:32:37] I think that shows the spirit of
[1:32:38] when people are working in these
[1:32:39] agencies they do want the best
[1:32:39] for folks
[1:32:44] I think just sometimes it's
[1:32:45] been a little more acceptable to
[1:32:46] say I don't know instead of I
[1:32:47] don't know but
[1:32:49] the gentleman I have now said I
[1:32:49] don't know but
[1:32:52] and I want that to be more
[1:32:54] apparent in my conversations
[1:32:56] with folks as I've forged these
[1:32:58] relationships I want the answer
[1:32:59] to be if you don't know that's
[1:32:59] fine.
[1:33:01] but who do I go to
[1:33:03] because don't hang up the phone
[1:33:03] on me
[1:33:04] because I'm call back
[1:33:12] For what will likely be as
[1:33:13] simple as the healthth
[1:33:14] department going out and running
[1:33:15] the same tests that they would
[1:33:16] do for a water well.
[1:33:18] this has been in the
[1:33:18] neighborhood of10 phone calls.
[1:33:21] just to get someone to do
[1:33:21] something.
[1:33:24] the alternative is this person
[1:33:25] files a business license
[1:33:25] and
[1:33:28] waits goes about their day,
[1:33:29] makes their money until someone
[1:33:30] tells them they're wrong.
[1:33:34] when we wait this long to find
[1:33:36] someone operating incorrectly.
[1:33:37] they often face fines
[1:33:39] or at a minimum they're going to
[1:33:39] be told stop
[1:33:42] don't do any more business until
[1:33:43] we can come out there and do
[1:33:44] what we needed to do.
[1:33:45] several months ago when you
[1:33:45] started this.
[1:33:48] this leads me to what I've
[1:33:52] made as the central question
[1:33:54] that I'm asking other agencies.
[1:33:55] Does West Virginia government
[1:33:55] want to be a partner for
[1:33:56] businesses
[1:33:59] or does it want to continue to
[1:33:59] be a litmus test for grit
[1:34:01] and for business success.
[1:34:04] iss it the job of the government
[1:34:06] to stand in the way of our
[1:34:08] people by way of gotcha moments
[1:34:09] and nonanwers
[1:34:11] or is it one of understanding
[1:34:13] your agency's code well enough
[1:34:13] to say yes.
[1:34:15] no or I don't know but
[1:34:19] there are exciting things
[1:34:20] happening across our network
[1:34:23] I am intentional in my
[1:34:24] partnerships choosing to meet
[1:34:25] with the west
[1:34:26] Virginiamallusinessvelopment
[1:34:28] Center and the West Virginia
[1:34:29] ntrepreneurship ecosystem twice
[1:34:29] a month.
[1:34:32] I chose these two
[1:34:35] because they are knowledgeable
[1:34:36] they have a long standing
[1:34:37] history of being
[1:34:39] in contact not only with our
[1:34:40] entrepreneurs but the support
[1:34:41] organizations.
[1:34:44] as I navigate these first hund0
[1:34:45] days in office I wanted to
[1:34:47] surround myself with people who
[1:34:48] were on the ground doing the
[1:34:49] work.
[1:34:52] Most recently the west virginia
[1:34:53] entrepreneurship ecosystem and I
[1:34:56] have partnered together to talk
[1:34:58] to local university about
[1:34:59] service learning opportunities
[1:35:00] and what those are these are
[1:35:02] opportunities where students,
[1:35:05] this casecPA hopefuls get the
[1:35:06] opportunity to work with real
[1:35:07] business owners
[1:35:08] on real world problems
[1:35:11] they get the opportunity to
[1:35:12] learn what it's like to handle
[1:35:14] these issues out in the field
[1:35:15] and these business owners get
[1:35:15] some guidance.
[1:35:18] things that would have typically
[1:35:19] been behind a pretty hefty
[1:35:20] paywall if you've ever paid a
[1:35:22] CPA for any work. it is not
[1:35:23] cheap.
[1:35:26] it's our hope that by building
[1:35:28] this framework with one
[1:35:28] university we can spread it
[1:35:29] throughout the rest of the state
[1:35:30] and provide
[1:35:34] this idea that we can support
[1:35:35] entrepreneurs not just at the
[1:35:35] college level
[1:35:38] but connect our students with
[1:35:39] real world work
[1:35:41] and encourage them to say hey
[1:35:41] there's work here for you.
[1:35:44] you've already built a
[1:35:46] relationship because of the work
[1:35:47] that you've done in university
[1:35:48] and now that these businesses
[1:35:50] are paid they're more successful
[1:35:51] they can pay you for your
[1:35:56] we are also working together on
[1:35:57] a project through the Federal
[1:35:57] Reserve Smallusinessredit
[1:35:58] survey.
[1:36:02] if completed by enough employer
[1:36:03] franchises which are people who
[1:36:03] employ
[1:36:04] more than2 people
[1:36:08] we need50 responses to get a
[1:36:09] dataook
[1:36:10] from the Federal Reserve
[1:36:14] This data book informs us not
[1:36:15] only of the credit readiness of
[1:36:17] our small businesses but brings
[1:36:18] to the forefront the challenges
[1:36:19] that they face.
[1:36:24] The SPDc has become a trusted
[1:36:26] resource as I ensure the clients
[1:36:27] who need coaching are sent to
[1:36:28] them
[1:36:30] they send their governmental
[1:36:31] process issues to me.
[1:36:33] ron g partnerships like this one
[1:36:36] are what the office needs to
[1:36:37] support as I have time to
[1:36:39] analyze the issues they take
[1:36:39] over the coaching
[1:36:42] When I refer them a client, I
[1:36:43] know that they're
[1:36:47] My intention in this office is
[1:36:48] not based to make decisions
[1:36:49] based on feeling but on facts.
[1:36:52] Given the short time the office
[1:36:53] has been open, I'm still
[1:36:55] gathering data and analyzing
[1:36:55] where the issues are
[1:36:56] concentrated.
[1:36:59] it's important to me when I make
[1:37:00] a recommendation that it's
[1:37:02] founded in repeated evidence and
[1:37:03] I propose a solution that works
[1:37:06] Currently I've had some
[1:37:08] discussions with entrepreneurs,
[1:37:09] state agencies and other support
[1:37:12] organizations that business code
[1:37:13] and chapter30 board expectations
[1:37:13] don't always align.
[1:37:16] Our department of laborbor does
[1:37:17] a great job. They pick up the
[1:37:18] phone on a call they're
[1:37:19] responsive to my emails.
[1:37:22] but it is sometimes that agency
[1:37:23] expectations under chapter30
[1:37:25] and licensing requirements
[1:37:29] don't line up with chapter31 and
[1:37:30] the business laws that the
[1:37:31] secretary of state has to
[1:37:31] enforce.
[1:37:34] As the Secretary of State's
[1:37:36] office typically presents its
[1:37:38] legislative recommendation later
[1:37:39] in the year. I will plan to
[1:37:40] collaborate with the staff
[1:37:42] and offer my formal
[1:37:43] recommendations then.
[1:37:46] when I'm not fielding
[1:37:47] entrepreneur issues or working
[1:37:48] with our support organizations.
[1:37:50] I am working on resources aimed
[1:37:52] demystifying our government
[1:37:53] processes.
[1:37:55] and my conversations with
[1:37:56] entrepreneurs and I've
[1:37:57] experienced it myself
[1:37:58] they wonder what's next
[1:38:01] you get super excited you've got
[1:38:02] an idea
[1:38:05] before me you google how do
[1:38:05] you start a business
[1:38:08] hopefully you do some due
[1:38:09] diligence and you start at the
[1:38:09] Secretary of State's website.
[1:38:12] and you've registered and you
[1:38:14] get your little email that says
[1:38:15] congratulations you're
[1:38:15] registered.
[1:38:17] and then you wake up the next
[1:38:17] morning
[1:38:19] what's next
[1:38:24] Because I know that it's not as
[1:38:25] simple as getting some
[1:38:25] certificate
[1:38:27] I'm gonna owe somebody some
[1:38:27] money
[1:38:28] I'm
[1:38:31] in municipality limits.
[1:38:32] somebodydy's probably will be
[1:38:33] knocking on my door at some
[1:38:36] point they'll hear I'll hear
[1:38:38] from them but I don't I don't
[1:38:39] like that and other
[1:38:39] entrepreneurs don't like that
[1:38:40] either
[1:38:42] they want some transparency
[1:38:43] around the process. What do I do
[1:38:43] next?
[1:38:48] in response to this, I've
[1:38:49] drafted a West Virginiaus
[1:38:49] playbook
[1:38:51] a short form regulatory guide
[1:38:51] aimed
[1:38:52] at
[1:38:56] providing the contacts for
[1:38:58] specific agencies within state
[1:38:59] government the businesses are
[1:39:00] required to either apply to or
[1:39:02] be in compliance with their
[1:39:03] regulations.
[1:39:06] this guide introduces my office
[1:39:08] as their advocate within these
[1:39:10] processes letting them know that
[1:39:11] if they call me they get a real
[1:39:11] person.
[1:39:12] that can assist them
[1:39:16] I'm also naming our state
[1:39:18] agencies that support
[1:39:19] entrepreneurship.
[1:39:22] they provide entrepreneurs with
[1:39:23] technical assistance, tax
[1:39:24] credits and workforce resources.
[1:39:28] this guide will be extended into
[1:39:29] a series outlining specific
[1:39:31] licensure and requirements for
[1:39:32] operations in West Virginia such
[1:39:35] as fooder and contracting things
[1:39:36] that I typically hear are a
[1:39:37] little complicated
[1:39:41] I've also begun the creation of
[1:39:43] an interactive map outlining the
[1:39:45] regulatory agencies down to the
[1:39:47] municipality level through all
[1:39:47] of West Virginia.
[1:39:49] this isn't simply putting
[1:39:50] together a list
[1:39:52] it's calling to make sure
[1:39:53] numbers are answered
[1:39:56] If I have to leave a voicemail,
[1:39:57] do you call me back?
[1:40:00] It does nobody any good if I put
[1:40:01] together a list of numbers that
[1:40:02] don't reach someone
[1:40:04] it puts them right back where
[1:40:05] they started.
[1:40:08] it's getting in touch with our
[1:40:09] local health departments and
[1:40:11] navigating the phone tree so
[1:40:11] that when somebody calls me
[1:40:14] I can put it on this map but I
[1:40:16] can also tell them yes you're
[1:40:17] going to call that number you're
[1:40:18] going to press3. you're going to
[1:40:20] speak to Jennifer and you're
[1:40:21] going to ask nicely if she will
[1:40:21] come test your well water.
[1:40:26] So far I've made over200 phone
[1:40:27] calls in the name of this map.
[1:40:27] and I'm not done
[1:40:32] I want clear contacts for every
[1:40:33] agency.
[1:40:34] if you are going to enforce a
[1:40:35] fine
[1:40:38] if you have regulatory
[1:40:38] requirements that are required
[1:40:39] to be followed
[1:40:43] it's my opinion that you have a
[1:40:44] duty to answer phone calls.
[1:40:48] be transparent about what you
[1:40:49] expect of our business owners.
[1:40:52] These processes combined begin
[1:40:54] what I envisioned the first year
[1:40:55] of this office to be.
[1:40:56] map the process
[1:40:58] and learn what is and isn't
[1:40:59] working.
[1:41:02] in addition to these products
[1:41:03] yet to be released which you'll
[1:41:04] get a preview of in a moment.
[1:41:06] Um, I've created a portal for
[1:41:07] entrepreneurs to flag
[1:41:07] what's not working
[1:41:08] this
[1:41:12] portal exists on my webpage on
[1:41:13] the secretary of state's
[1:41:14] website.
[1:41:16] these red tape reports will be
[1:41:18] documented and presented in my
[1:41:19] yearly reports for the office.
[1:41:22] in addition to the red tape
[1:41:23] reports
[1:41:24] new net formation of business is
[1:41:25] a metric
[1:41:27] of vital importance to me
[1:41:30] by establishing how many
[1:41:32] businesses are opened monthly
[1:41:33] less ones that have closed
[1:41:35] this becomes an identifiable
[1:41:37] pattern of areas which need more
[1:41:37] support.
[1:41:41] I also intend to use our annual
[1:41:41] reports
[1:41:45] to capture businesses that are
[1:41:45] quietly going under.
[1:41:47] by flagging the vulnerable
[1:41:48] businesses for early
[1:41:49] intervention
[1:41:51] it's my hope we can capture
[1:41:51] these
[1:41:54] businesses before administrative
[1:41:55] dissolution.
[1:41:57] and hopefully provide them with
[1:41:57] resources to keep them afloat.
[1:42:02] if you'll give me a brief moment
[1:42:03] to connect my computer here. I
[1:42:04] have both the playbook
[1:42:08] Regulatory map
[1:42:25] So I want you to keep in mind
[1:42:27] this is a draft. this is just
[1:42:28] containing at this point numbers
[1:42:30] that I know for sure have a
[1:42:31] person on the other end of the
[1:42:32] line. This is not publicly
[1:42:34] available, but I wanted to bring
[1:42:36] it to you to show that in53 days
[1:42:38] this is where I've started
[1:42:38] because this is what I hear is
[1:42:39] important
[1:42:42] we have a lot of rural counties
[1:42:44] in West Virginia. um, not
[1:42:45] everything is digital first.
[1:42:47] so when I look at McDowll County
[1:42:52] and I don't have all their
[1:42:53] municipalities on here. I know
[1:42:54] but if you'll bear with me
[1:42:58] I've called these kind ladies at
[1:43:00] these town offices and I have an
[1:43:01] email for all of them
[1:43:04] you're gonna email this woman
[1:43:05] and she'll send you back your
[1:43:06] business license and you can
[1:43:07] drop it off
[1:43:10] at33834 Coal HeritageRoad. if
[1:43:11] you want to do business in North
[1:43:15] our albell County
[1:43:20] who have digital first solutions
[1:43:22] you can click through the map
[1:43:24] and immediately are routed to
[1:43:25] their resources.
[1:43:28] a lot of these municipalities
[1:43:30] have whole new business guides
[1:43:31] but some of them only have
[1:43:33] a digital business license
[1:43:36] I wanted this to be easy to
[1:43:38] find. I didn't want people to
[1:43:39] have to wait on a phone call for
[1:43:41] me or an email back for me to
[1:43:41] say hey here's where you go.
[1:43:47] This is the very draft version
[1:43:47] of the playbook
[1:43:50] I promise our communications
[1:43:51] team downstairs is working very
[1:43:52] hard to make this pretty
[1:43:54] I put the words together and
[1:43:56] said, please help me because I'm
[1:43:57] not a graphic designer.
[1:43:59] so it introduces me
[1:44:00] it gives you
[1:44:05] an illustration of the business
[1:44:05] certificate. This is just one
[1:44:06] that is
[1:44:12] a fake one if you will to
[1:44:13] show people this is actually
[1:44:14] what you need this is what gets
[1:44:16] hung up on your wall if you've
[1:44:17] walked into a business that's
[1:44:18] required to be on the wall. you
[1:44:19] see it, you know they're
[1:44:19] legitimate.
[1:44:24] As an employer, so I have an
[1:44:26] entire section dedicated to if
[1:44:27] you are going to employ people
[1:44:29] this is the bare minimum people
[1:44:30] you have to be in contact with.
[1:44:34] I also outline our support
[1:44:36] organizations including our
[1:44:37] community and technical college
[1:44:39] system as I've heard from
[1:44:40] several entrepreneurs workforce
[1:44:41] is hard to grab
[1:44:43] so let's start training them
[1:44:43] together.
[1:44:47] I have here all of the chapter30
[1:44:48] boards
[1:44:50] Sometimes people get a little
[1:44:51] ahead of themselves
[1:44:53] if you're not with your board
[1:44:53] yet
[1:44:54] you ought to be
[1:44:59] and then lastly I've got a small
[1:45:00] section here on restaurants and
[1:45:02] consumable vendor information
[1:45:05] this guide is designed to be
[1:45:05] very brief.
[1:45:07] it will be expanded out as we
[1:45:12] extend the guides that are very
[1:45:13] specific to industry
[1:45:15] but I wanted to give you a brief
[1:45:16] picture of what this might look
[1:45:17] like.
[1:45:18] I wanted to keep it under5 pages
[1:45:22] the idea is this will be in both
[1:45:24] printed form and go out with
[1:45:26] your registration. So after you
[1:45:28] finish the Secretary of State
[1:45:29] portion of the portal. you get
[1:45:30] an email with your
[1:45:31] congratulations you're
[1:45:31] registered with us
[1:45:34] and the West Virginia Business
[1:45:35] playbook.
[1:45:38] thank you for the opportunity to
[1:45:40] come and talk to you today and
[1:45:41] I'd love to answer some
[1:45:41] questions.
[1:45:44] Thank you so much Miss Taylor
[1:45:46] for that presentation.
[1:45:49] first of all applaud your spirit
[1:45:51] of advocacy and and cooperation
[1:45:52] with business
[1:45:54] you know I appreciated your
[1:45:56] story with your grandfather
[1:45:58] you know I'm a small business
[1:46:00] owner in west Virginia and it it
[1:46:03] is hard it is tough you know
[1:46:04] even sitting here things are
[1:46:05] always going on in the back of
[1:46:07] your mind. I've got to file this
[1:46:08] this is owed I've got to pay
[1:46:10] this and so I think having an
[1:46:12] advocate like you is a
[1:46:13] tremendous asset for the state
[1:46:13] so I
[1:46:14] applaud applaud the work you're
[1:46:16] doing. I've got one suggestion
[1:46:17] before I go to questions
[1:46:20] the business playbook is a
[1:46:22] wonderful idea I've been
[1:46:22] actually looking for something
[1:46:24] like that for a few years we
[1:46:25] send something similar for
[1:46:25] clients
[1:46:29] that we have in Virginia we
[1:46:30] have one prepared with my
[1:46:31] firm
[1:46:34] I have not created one for
[1:46:35] West Virginia so I'm very glad
[1:46:36] to hear you have but I agree
[1:46:39] that once you file with
[1:46:40] Secretary of state's office you
[1:46:41] get your certificate in the
[1:46:43] viaail and then for a lot of my
[1:46:44] clients and a lot of small
[1:46:45] business owners the questions
[1:46:48] are what's next I've heard
[1:46:50] about workers' comp I've heard
[1:46:52] about you know the state tax
[1:46:55] department you know labor
[1:46:56] laws licensing you know what do
[1:46:58] I do with all these things so my
[1:47:02] my recommendation for your
[1:47:04] consideration for the for the
[1:47:05] Secretary of state's office
[1:47:05] would be
[1:47:08] once you refine that product
[1:47:10] that might be a good that might
[1:47:12] be good to send that as an
[1:47:13] additional attachment so when
[1:47:15] you send you know the cert
[1:47:16] certificate from the secretary
[1:47:17] of state's office that you've
[1:47:18] successfully formed your
[1:47:20] business and by the way here's a
[1:47:22] business playbook that shows you
[1:47:23] the next steps. I I think that
[1:47:25] would be very helpful for West
[1:47:26] Virginia business owners so just
[1:47:27] something to take under
[1:47:28] consideration.
[1:47:32] put on my radar so thank you so
[1:47:33] much for bringing it to
[1:47:35] everybody's attention that is
[1:47:36] the intention. so it goes
[1:47:37] straight to your email. so
[1:47:38] there's never any question of do
[1:47:40] I have an advocate and what's
[1:47:44] next so thank you so much'm sure
[1:47:45] we'll have some questions we've
[1:47:45] got about15 minutes
[1:47:47] are there any questions for Miss
[1:47:47] Taylor?
[1:47:52] delegate from the 18th
[1:47:56] just a comment this I've been in
[1:47:58] the legislature for I think14
[1:47:59] years now
[1:48:02] this is I think the first time I
[1:48:04] really wanted to applaud when
[1:48:05] someone has done a presentation
[1:48:08] as a small business person I've
[1:48:09] been through all of this for35
[1:48:09] years and
[1:48:12] really I appreciate your heart
[1:48:14] for what you're what you're
[1:48:15] doing here and I think this
[1:48:15] could be
[1:48:16] probably
[1:48:20] one of the biggest developments
[1:48:21] for I mean we we look at all
[1:48:23] these mega data centers and all
[1:48:24] the big businesses were
[1:48:27] attracting in but I think you
[1:48:29] hit the nail on the head here to
[1:48:30] help people get started because
[1:48:31] that's what it takes so
[1:48:34] I look forward to hearing
[1:48:35] recommendations from you
[1:48:39] of things that you think are
[1:48:41] ridiculous that are required of
[1:48:42] people or things that maybe we
[1:48:43] could change
[1:48:46] because you're you're exactly
[1:48:48] right. Small business people
[1:48:50] need to be out doing the service
[1:48:52] that they want to provide for
[1:48:54] their customers not on the phone
[1:48:56] on hold or dealing with some
[1:48:58] crazy regulation so
[1:48:59] thank you sir
[1:49:01] thank you again are there
[1:49:02] further questions?
[1:49:06] I I would just second what
[1:49:10] delegate from the 18th said
[1:49:12] we look forward to your
[1:49:14] recommendations on how we can
[1:49:15] better partner as the
[1:49:16] legislature with your efforts
[1:49:19] and and and those of the
[1:49:20] secretary of state's office and
[1:49:22] I would appreciate it once
[1:49:23] the business planning playbook
[1:49:24] is completed if you could
[1:49:26] forward a copy to me or my staff
[1:49:28] that would be that would be
[1:49:30] great. So we look forward to
[1:49:32] continuing the conversation and
[1:49:33] thank you very much for your
[1:49:35] presentation today you all for
[1:49:35] your time.
[1:49:38] Is there any other business to
[1:49:39] come before the committee?
[1:49:42] seeing then the chair recognizes
[1:49:43] the vice the cochair
[1:49:46] Mr chairman I make a motion
[1:49:47] to
[1:49:51] motion is to adjourn all those
[1:49:51] in favor say aye
[1:49:52] all opposed no
[1:49:55] if you don't know the chair the
[1:49:55] ice have at the meeting is
[1:49:56] adjourned.