WV HB3517

Establishes a framework for the State Auditor to declare "fiscal watch" or "fiscal emergency" for local governments experiencing financial distress, including conditions such as accounts unpaid for more than 30 days, failure to meet payroll, or default on debt obligations for more than 30 days

Requires local governments under fiscal watch to submit a financial recovery plan within 90 days, including a five-year forecast and evaluation of shared services agreements with other jurisdictions

Creates "financial planning and supervision committees" to oversee local governments in fiscal emergency, with authority to develop recovery plans if the local government fails to do so

Prohibits local governments from filing for federal bankruptcy protection without express written permission from the State Auditor

Modernizes municipal dissolution procedures, including voluntary dissolution by voter petition, involuntary dissolution when governments cease functioning, and forfeiture of charters, with the State Auditor serving as special receiver to liquidate assets and pay debts