West Virginia Code of State Rules Agency 117 - Economic Development Authority
I. Overview of Agency 117 — Economic Development Authority
Agency 117 is the administrative rules governing the West Virginia Economic Development Authority (WVEDA). These rules provide procedures and standards for how the Authority carries out its powers under state law, especially under Chapter 31, Article 15 of the West Virginia Code (the Economic Development Act).
The Authority is a state-created public corporation tasked with promoting economic growth, financing business development, and supporting technology and high-growth ventures. The rules in Agency 117 are divided into different series, each focused on a specific area of the Authority’s operations:
117-01 — Capital Company Act Administration: Rules for certifying companies and approving investments under the Capital Company Act.
117-02 — Meetings and Notices: Rules to ensure public transparency in Authority meetings.
117-03 — Venture Capital Act Administration: Rules for venture capital financing and related investment programs.
117-04 — Economic Development and Technology Programs: Implementation rules for supporting technology-based businesses.
117-05 — High-Growth Business Investment Tax Credit: Rules for awarding and administrating investment tax credits.
117-06 — Purchasing Procedures: Rules governing procurement and contracting by the Authority.
Together, these rules structure the Authority’s operations and ensure compliance with state law.
II. Statutory Basis
The West Virginia Economic Development Authority is authorized by W. Va. Code § 31-15-1 et seq., which allows the Authority to:
Promote economic development and industry in West Virginia.
Provide loans, grants, and guarantees for businesses and projects.
Borrow money and issue bonds to finance development projects.
Implement programs like venture capital investments and high-growth business tax credits.
Agency 117 implements these statutory powers, providing the detailed procedures for the Authority to operate.
III. Key Concepts in Agency 117
Some important terms across the rules include:
“Authority” – The West Virginia Economic Development Authority.
“Certified Company” – A business certified under the Capital Company Act to receive investment or assistance.
“Act” – The specific law under which the rule is applied (e.g., Capital Company Act or Venture Capital Act).
“Tax Credit” – Refers to the incentives provided to qualifying businesses under high-growth or venture capital programs.
These definitions guide how applications, meetings, and approvals are handled.
IV. Procedural Rules
1. Meetings and Transparency (117-02)
The Authority must conduct public meetings in accordance with the state’s open meetings laws. This includes:
Proper public notice before meetings.
Maintaining transparency in decision-making.
Allowing the public to access certain records and proceedings.
2. Procurement (117-06)
The Authority’s purchasing rules govern how it acquires goods, services, and contracts. Requirements include:
Competitive bidding when required.
Fair and transparent evaluation of proposals.
Proper documentation of purchases.
3. Business Financing and Certification (117-01 & 117-03)
For programs like the Capital Company Act and Venture Capital Act:
Companies must apply and meet eligibility standards.
The Authority evaluates financial and business plans.
Tax credits and funding allocations are approved based on rule-defined criteria.
V. Case Law
1. Jefferson County Foundation, Inc. v. West Virginia Economic Development Authority
Facts: Local residents challenged WVEDA’s financing of a major industrial project, claiming it violated constitutional requirements for taxation and economic fairness.
Ruling: The court held that:
WVEDA acted within its statutory authority.
The financing arrangement was not an unconstitutional tax exemption.
Actions aligned with the powers granted under the Economic Development Act.
Significance: Confirms that Agency 117’s rules, when followed, allow WVEDA to act within its legal powers.
2. State ex rel. West Virginia Citizens Action Group v. Economic Development Grant Committee
Facts: The challenge involved a related development entity and whether it exceeded legislative authority in grant approvals.
Ruling: The court found that:
Delegation of discretion must be clearly defined by statute.
Rules or actions without sufficient legislative guidance may be invalid.
Significance: Shows the importance of Agency 117 providing clear procedural standards to prevent overreach.
VI. Administrative Principles
Rulemaking must follow statutory authority: Agency 117 cannot go beyond powers granted in the Economic Development Act.
Procedural fairness is required: Applications, meetings, and procurement must comply with the rules.
Discretion is guided: The rules provide standards to avoid arbitrary decisions, ensuring decisions are transparent and legally defensible.
VII. Practical Impact
Agency 117 affects:
Eligibility and certification of businesses seeking development assistance.
Administration of tax credits and venture capital programs.
Transparency in Authority meetings and funding decisions.
Procurement and operational compliance.
Essentially, the rules translate the statutory powers of WVEDA into actionable procedures, ensuring legal compliance, fairness, and transparency.
VIII. Summary Table
| Topic | Core Point |
|---|---|
| Scope | Procedural rules governing WVEDA operations. |
| Statutory Authority | W. Va. Code § 31-15-1 et seq. |
| Key Rules | Meetings, procurement, tax credits, venture capital programs. |
| Limits | Must conform to statutory authority and administrative law. |
| Case Law | Jefferson County Foundation: Authority upheld; Citizens Action Group: limits on discretionary delegation. |
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