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Did Not Advance

West Virginia Bill HB 5064 Authorizes State Auditor to Dissolve Chronically Noncompliant Municipalities

Original title: Relating to municipalities that have failed to complete required financial audits for multiple years

Last action · February 6, 2026: To House Local GovernmentsSponsors: David Green and 9 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

House Bill 5064 establishes as of a fiscal emergency and authorizes the West Virginia State Auditor to evaluate a municipality's financial recovery likelihood, initiate mandatory dissolution proceedings if recovery is unlikely, and act as a to wind up affairs.

Why it matters

Local governments that fail to submit required financial audits for three consecutive years face state intervention, potential charter forfeiture, and state-managed receivership, affecting local operational control and asset distribution.

Background
  • The West Virginia State Auditor's Office oversees local government accounting systems and fiscal emergency procedures across the state's municipalities. context
  • State law governs local fiscal emergencies under Chapter 6, Article 9D and municipal dissolutions under Chapter 8, Article 35 of the Code of West Virginia. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Municipalities

Municipalities are subject to mandatory state evaluation, fiscal emergency declarations for chronic audit noncompliance, potential dissolution proceedings, and asset receivership.

Directly affected

West Virginia State Auditor's Office

The State Auditor is granted new powers to evaluate municipal financial recovery, provide written delinquency notices, initiate dissolution, and act as a special receiver.

Directly affected

West Virginia Public Service Commission

The Commission retains its regulatory authority over municipal water and sewer systems during dissolution proceedings.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What triggers a fiscal emergency under House Bill 5064?
—defined as failing to complete and submit required annual financial statements or audits for three consecutive years—constitutes of a fiscal emergency.
What happens to a municipality if it cannot achieve financial recovery?
The State Auditor may initiate municipal dissolution proceedings, and such initiation becomes mandatory upon the completion of the supervision period if fiscal recovery is not achieved.
Who manages the assets and affairs of a dissolved municipality?
The State Auditor acts by operation of law as a with the authority to take legal control of assets, protect property, distribute assets to creditors, and initiate bankruptcy proceedings.
How are local water and sewer systems handled during a municipal dissolution?
Dissolution does not impair the authority of the West Virginia Public Service Commission, which must approve, regulate, or assign utility systems through its own proceedings rather than subjecting them to immediate liquidation.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

5 actions
  1. Feb 6, 2026HouseCommittee
    To House Local Governments
  2. Feb 3, 2026HouseCommittee
    To House Government Organization
  3. Feb 3, 2026HouseIntroduced
    Introduced in House
  4. Feb 3, 2026HouseCommittee
    To Government Organization
  5. Feb 3, 2026HouseIntroduced
    Filed for introduction

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Expansion of State Auditor Enforcement Powers

The legislation shifts oversight authority by explicitly linking multi-year audit failures to mandatory fiscal emergency declarations and the ultimate dissolution of municipal entities.

Connected Entities

David Green, Public Service Commission, Mike Hornby and 9 more
PersonDavid Green“Lead sponsor of House Bill 5064.”Map →
OrganizationPublic Service Commission“Maintains authority to regulate, assign, or approve transfer of water or sewer s”Map →
PersonMike Hornby“Cosponsor of House Bill 5064.”Map →
PersonMarty Gearheart“Cosponsor of House_gearheart”Map →
PersonDean Jeffries“Cosponsor of House Bill 5064.”Map →
PersonJohn Paul Hott“Cosponsor of House Bill 5064.”Map →
PersonLinville“Cosponsor of House Bill 5064.”Map →
PersonRyan Browning“Cosponsor of House Bill 5064.”Map →
PersonMike Hite“Cosponsor of House Bill 5064.”Map →
PersonChris Phillips“Cosponsor of House Bill 5064.”Map →
OrganizationState Auditor“Authorized to evaluate financial recovery, initiate dissolution, and act as spec”Map →
PersonRoger Hanshaw“Cosponsor (Mr. Speaker).”Map →

Sources

Open source document

www.wvlegislature.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 80)
  • Controversy60
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz45
    Current news / social attention level

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