CHARLESTON – The Justice Administration’s legislation to increase the Office of Economic Development and Tourism Division to cabinet-level departments passed the West Virginia House of Representatives 86-13 on Wednesday amid concerns that the two new departments could become new bureaucracies.

The chairman of the government organization, Brandon Steele, R-Raleigh assured delegates from West Virginia that House Bill 2019 will not make any material changes to the two agencies, but will instead appoint the agency’s current heads as departmental secretaries, directly to the governor rather than the trade secretary Would report. as they are currently doing.

Del. Matthew Rohrbach, R-Cabell, said the survey of the two agencies as independent divisions sends a message that the mountain state is serious about promoting economic development and tourism.

“We’re just emphasizing the areas where our state should grow as a legislator,” he said.

Del. Marty Gearheart, R-Mercer, however, said the creation of two new divisions is likely to trigger bureaucratic growth.

He noted that Governor Jim Justice’s proposed 2021-22 state budget provides an additional $ 5 million to convert the existing Economic Development Fund into a new Economic Development Promotion and Completion Fund that the Governor is in had advocated his state address.

“I think these two departments are important, but I believe they are rightfully part of the Department of Commerce,” Gearheart said.

Del. Larry Rowe, D-Kanawha, shared the concern, noting that several bills to expand the government are being considered, including reviving a proposal to create an intermediate appeals court at that session.

“I think we’re building the West Virginia bureaucracy monumentally,” he said.

Rowe urged further studies to determine whether the creation of two new cabinet secretaries has unintended consequences.

Del. John Doyle, D-Jefferson said he would like the two agencies to be included separately. He said he supported the Cabinet-level tourism survey but added, “I don’t think the development bureau should be a separate department.”

In the meantime, Del said. Mike Pushkin, D-Kanawha, that the appointment of newly appointed Head of Development, Mitch Carmichael, to a cabinet position would reward him for bidding for governor last year.

Pushkin said the Senate leadership, led by then Senate President Carmichael, R-Jackson, blocked the House’s bipartisan efforts to invite the legislature to a special session to raise $ 1.2 billion in pandemic aid under the CARES Overseeing the law – a session that the judiciary strongly opposed.

“There’s one person who got in the way, and we’re rewarding that person with a cabinet position and a six-figure retirement,” Pushkin said of Carmichael.

The judiciary hired Carmichael to manage the development office with effect from February 3rd.

“Some might say that the former Senate President and former lieutenant governor has been the biggest obstacle to economic development in recent months,” said Pushkin, referring to the judiciary’s decision to invest about $ 660 million in the CARES Act funds to pay future Unemployment Compensation Fund shortfalls instead of using the money to help small businesses and people who are unemployed or underemployed from the pandemic.

“If you’ve ever told one of your constituents, one of your constituents, that you are going to Charleston to drain the swamp, this is your chance,” Pushkin told the House.

The judiciary returned an email on Wednesday afternoon.

“The allegations made by delegate Pushkin are completely unfounded and utterly ridiculous,” said the governor. “I named Mitch because he has a great sense of economic development and because he is best suited for the job. It is evident that Delegate Pushkin’s political statement is just the latest topic of conversation by the Supremacy Committee to find the names of its members in the headlines of liberal newspapers. “

Steele said rejecting the law would not affect Carmichael’s status as executive director, nor would it change the state employee pension rules, which would allow Carmichael to increase his state pension significantly if he stayed on for three years.

Under the Public Employee Retirement System, state pensions are calculated based on a formula that includes all years of service plus the highest three consecutive years of pay in the employee’s last 15 years.

It’s not uncommon for longtime lawmakers to get high-paying executive jobs to increase their state pensions. After 20 years in office, Carmichael will increase his pension from about $ 18,000 per year to over $ 48,000 per year.

The bill also requires the new Secretary of the Economic Development Agency to designate a list of departmental positions exempt from civil service protection so that they are “will and pleasure” employees – an issue that was not raised during Wednesday’s floor discussion .

The bill is now going to the Senate.

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