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Committee Discusses Bill Targeting Contracts

IHLENFELD

WHEELING — A bill to prevent West Virginia lawmakers from financially benefiting from contracts with state agencies had its day in committee this week.

Senate Bill 370, introduced by state Sen. William Ihlenfeld, D-Ohio, would add West Virginia legislators to existing state law that prohibits public employees, elected officials and their families from having an interest in public contracts. It also would require the West Virginia Ethics Commission to conduct oversight and make a public statement in certain circumstances.

The bill was discussed in the Senate Government Organization Committee after being placed on the committee’s agenda on Tuesday, but it was later tabled.

“They tell me other bills had to be addressed,” Ihlenfeld said. “I’m hopeful this bill will be on the agenda again for next week.”

During Tuesday’s meeting, a committee substitute bill was presented that would allow both legislators and part-time state officials to enter into contracts with state agencies after they have disclosed their interest to the state agency and told them they have not participated in the review of the contract or the vote.

The agency also would have to attest to the State Ethics Committee that it was informed of the legislator’s or part-time official’s interest.

Ihlenfeld said he supports the committee substitute and was involved in crafting it.

“We wanted to make it more clear, and I think it is easier to understand now than it was originally,” he said.

Sen. Corey Palumbo, D-Kanawha, an attorney, questioned how the legislation would affect him if his law firm as a whole were involved with a state contract. He said it was quite possible he “might not know anything about it” if the contract didn’t directly involve him. He asked counsel if all in his office would need to be aware of the ethics requirement.

Palumbo was told by counsel that if he were a member of a firm that could financially benefit from the contract, the requirements would be pertinent.

Sen. Eric Tarr, R-Putnam, said he is a physical therapist who works as part of a group of providers. He wondered if the requirements would apply to him and his office with regard to Public Employees Insurance Agency contracts. Counsel told him they would.

Sen. Mike Maroney, R-Marshall, a physician, also considered the ramifications of the legislation.

“Does that mean that with every bill in Legislature having to do with Medicaid and PEIA I would have some kind of responsibility? Explain to me my role,” he requested.

Counsel told him the measure would not apply to legislative bills, but only to contracts with the state.

Tarr said the proposed substitute legislation has “serious implications for health care providers” and made a motion to table the bill. The motion failed, but the meeting was adjourned as another was scheduled to start in the meeting room.

SB 370 was not on the agenda for the committee’s next meeting Thursday and was not discussed.

Ihlenfeld has explained that legislators previously were included in the state law excluding state employees from having an interest in state contracts, but at some point they “were carved out” of the law. The omission was brought to his attention during the last election.