Introduced Version
House Bill 2837 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 2837
(By Delegates Boggs, White, Reynolds, Hunt, Guthrie,
Perdue, Pethtel, Williams, Manypenny,
R. Phillips and Skaff)
(By Request of ths State Treasurer)
[Introduced
March 6, 2013
; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to repeal §12-1-12c of the Code of West Virginia, 1931, as
amended; to repeal §12-6B-1, §12-6B-2, §12-6B-3 and §12-6B-4
of said code; to repeal §48-2-604 of said code; to amend and
reenact §5-10B-3 of said code; to amend said code by adding
thereto a new section, designated §5-10B-14; to amend and
reenact §12-1-3, §12-1-8, §12-1-11 and §12-1-12b of said code;
to amend and reenact §12-2-2 and §12-2-3 of said code; to
amend and reenact §12-3-1 of said code; to amend and reenact
§12-3A-3 of said code; to amend and reenact §12-5-4 of said
code; to amend and reenact §12-6A-1, §12-6A-2, §12-6A-3,
§12-6A-4 and §12-6A-5, §12-6A-6 and §12-6A-7 of said code; to
amend and reenact §12-6C-7 and §12-6C-9 of said code; to amend
and reenact §18-30-8 and §18-30-11 of said code; to amend and
reenact §33-3-14d; and to amend and reenact §36-8-13 of said
code, all relating to the State Treasurer's office; authorizing organizations exempt from taxation within West
Virginia to participate in the deferred compensation plan in
accordance with the Internal Revenue Code; authorizing Roth
accounts within the deferred compensation plan in accordance
with the Internal Revenue Code; authorizing financial
institutions to offer products in addition to certificates of
deposit; updating references to investing authorities to
include the Board of Treasury Investments; raising the amount
of eligible deposits from $100,000 to the amount insured by a
federal agency; deleting archaic language pertaining to
eligible depositories; amending language pertaining to what
constitutes a conflict of interest for applicants and
employees of the Treasurer's office in connection with
financial institutions by prohibiting those persons with a
defined conflict from participating in the selection of or in
contract negotiations with a depository; authorizing
depositories to submit reports in an electronic format;
repealing duplicate §12-1-12c; clarifying that payments under
the CMIA are interest payments; changing the CMIA report from
a quarterly report to an annual report since the calculation
is only prepared annually; changing the requirement that
deposits are required within twenty-four hours to one business
day; establishing standards for receipting of moneys, including reviewing of internal controls by auditors and the
Treasurer and ensuring copies of audits are submitted to the
Legislative Auditor; ensuring confidential information in
internal control procedures is redacted before release;
clarifying the definitions of federal, special and general
revenue funds; eliminating reference to the chief inspector of
public offices, which position has not existed for many years;
changing the report to the Legislative Auditor for accounts
outside the treasury from quarterly to an annual report;
clarifying that investments are managed by the Board of
Treasury Investments in addition to the Investment Management
Board; conforming language pertaining to determining the
amount of federal funds in stale state checks to the
capabilities of the Enterprise Resource Planning System;
clarifying that the Treasurer determines the competitive
bidding of banking, investment and related goods and services
required for treasury operations; authorizing the Treasurer to
develop procedures for storing, retaining and disposing of
records for his or her office; ensuring the Director of the
Division of Archives and History receives records with
historical value; clarifying that the Treasurer is responsible
for earnings received on securities, not just interest;
repealing §12-6B-1 et seq.; consolidating the debt capacity division into the debt management division; amending
legislative findings to acknowledge the importance of
monitoring the debt of the state and its spending units;
continuing division of debt management as the central
information source for debt issued by the state and its
spending units; expanding the definition of debt to include
debentures, lease purchases, mortgages, securitizations and
other types of obligations with specific amounts owed and
payable on demand or on determinable dates; defining debt
impact report, moral obligation bond, net tax supported debt
and tax supported debt; amending definition of spending unit;
eliminating requirement for developing a long-term debt plan;
clarifying the division is responsible for continuously
evaluating debt and debt service requirements and reviewing
all proposed debt offerings of the state and its spending
units; clarifying the division is to issue a debt impact
report if requested by the Governor, Senate President or House
of Delegates Speaker and that the report shall not restrict
the Governor, Legislature or spending unit; requiring the
division to monitor continuing disclosure requirements and
post-issuance compliance issues; eliminating requirement that
the debt management division provide staff for the debt
capacity division; clarifying the reporting requirements of the division and the spending units; requiring the division to
prepare and issue the debt capacity report; clarifying the
Treasurer promulgates the rules; altering the bond required
for the Board of Treasury Investments from $50 million to at
least $10 million, as set by the board; updating language
pertaining to rating agencies to nationally recognized
statistical rating organizations; permitting investment in
corporate debt in investment grade securities and in money
market and other fixed income funds; authorizing the board to
make loans specified by the Legislature and to offer an
equipment and software financing program for state government
entities; removing requirement that direct or guaranteed
obligations of the United States constitute at least fifteen
percent of the consolidated fund; providing that securities
falling out of compliance with the Code do not have to be sold
if the investment manager and investment consultant recommend
retention; authorizing moneys in the College Prepaid Tuition
and Savings Program Administrative Account be used to provide
matching grants and scholarships for the program; clarifying
the value of a prepaid tuition or savings plan account is not
considered for purposes of determining eligibility for
income-based governmental financial assistance unless required
by federal law; satisfying amounts due to and from policemen's and firemen's pension and relief funds and the Teachers
Retirement System; authorizing expenses related to operations
and programs of the office of the Treasurer from the Unclaimed
Property Fund; authorizing transfer of moneys from the
Unclaimed Property Trust Fund for payment to policemen's and
firemen's pension and relief funds; repealing §48-2-604 which
duplicates the fee for marriage licenses; and making various
technical clean up revisions.
Be it enacted by the Legislature of West Virginia:
That §12-1-12c of the Code of West Virginia, 1931, as amended,
be repealed; that §12-6B-1, §12-6B-2, §12-6B-3 and §12-6B-4 of said
code be repealed; that §48-2-604 of said code be repealed; that
§5-10B-3 of said code be amended and reenacted; that said code be
amended by adding thereto a new section, designated §5-10B-14; that
§12-1-3, §12-1-8, §12-1-11 and §12-1-12b of said code be amended
and reenacted; that §12-2-2 and §12-2-3 of said code be amended and
reenacted; that §12-3-1 of said code be amended and reenacted; that
§12-3A-3 of said code be amended and reenacted; that §12-5-4 of
said code be amended and reenacted; that §12-6A-1, §12-6A-2,
§12-6A-3, §12-6A-4, §12-6A-5, §12-6A-6 and §12-6A-7 of said code be
amended and reenacted; that §12-6C-7 and §12-6C-9 of said code be
amended and reenacted; that §18-30-8 and §18-30-11 of said code be
amended and reenacted; that §33-3-14d of said code be amended and reenacted; and that §36-8-13 of said code be amended and reenacted,
all to read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR,
SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD OF PUBLIC WORKS,
MISCELLANEOUS AGENCIES, COMMISSIONS, OFFICES, PROGRAMS, ETC.
ARTICLE 10B. GOVERNMENT EMPLOYEES DEFERRED COMPENSATION PLANS.
§5-10B-3. Powers; contracts; meetings.
(a) Notwithstanding any provision of this code to the
contrary, including, without limitation, this chapter and chapter
five-a of this code, the state employer and a public employer have
the power necessary or appropriate to carry out the provisions and
objectives of this article and to operate the trust, including,
without limitation, entering into contracts and executing and
delivering instruments; engaging consultants, auditors, counsel,
managers, advisors, trustees or any other contractors or
professionals; and charging and collecting administrative fees.
(b) The state employer or any public employer may, by
contract, agree with any of its employees to defer and hold in
trust any portion of that employee's compensation and may
subsequently purchase or acquire from vendors licensed to do
business in the State of West Virginia investment products for the
purpose of carrying out the objectives of the deferred compensation plan as described in this article.
(c) Employees are authorized to attend meetings called by the
state employer or public employer for the purpose of explaining a
plan during regular working hours.
(d) Notwithstanding any provision of this code to the contrary
and in accordance with the Internal Revenue Code, the Treasurer may
extend participation in the plan to organizations exempt from
taxation located within West Virginia.
§5-10B-14. Roth Accounts.
_____The Treasurer or any public employer may authorize Roth
accounts within the plan in accordance with the Internal Revenue
Code, including, without limitation, conversions, deferrals,
rollovers and transfers.
CHAPTER 12. PUBLIC MONEYS AND SECURITIES.
ARTICLE 1. STATE DEPOSITORIES.
§12-1-3. Depositories for interest earning deposits;
qualifications.
Any state or national bank or any state or federal savings and
loan association in this state shall, upon request made to the
State Treasurer, be designated as an eligible depository for
interest earning deposits of state funds if such bank or state or
federal savings and loan association meets the requirements set forth in this chapter. For purposes of this article, the term
"interest earning deposits" includes certificates of deposit or
other financial institution products. The State Treasurer shall
make and apportion such interest earning deposits and shall
prescribe the interest rates, terms and conditions of such
deposits, all in accordance with the provisions of article six
articles six and six-c of this chapter: Provided, That state or
federal savings and loan associations insured by an agency of the
federal government shall be eligible for such deposits not in
excess of one hundred thousand dollars the amount insured by any
agency of the federal government. Provided, however, That
notwithstanding any provision of this article to the contrary, no
such interest earning deposits may be deposited in any depository
which has been in existence over a period of five years which does
not have a loan to deposit ratio of fifty percent or more and which
does not have farm, single or multifamily residential unit loans in
an amount greater than twenty-five percent of the amount of loans
representing a loan-to-deposit ratio of fifty percent. For the
purpose of making the foregoing calculation, the balances due the
depository on the following loans shall be given effect: (1)
Qualifying residential loans held by the depository; (2) qualifying
loans made in participation with other financial institutions; (3)
qualifying loans made in participation with agencies of the state, federal or local governments; and (4) qualifying loans originated
and serviced by the depository but owned by an out-of-state
investor. The computation of the criteria for eligibility specified
above shall be based on the average daily balances of deposits, the
average daily balances of total loans and qualifying residential
loans for the period being reported.
§12-1-8. Conflict of interest.
No depository in this State may serve or be eligible for
designation as a State Depository if any employee of the
Treasurer's office, or a spouse or minor child of that employee, is
an officer, director or employee of the depository or owns greater
than two percent of the depository either in his or her own name or
beneficially or an interest in the depository. An employee of the
Treasurer's office shall disclose the circumstance, if any, in the
sworn statement required under the provisions of section one,
article one, chapter six-b of this code. An employee or a person
applying for a position with the office of the Treasurer shall
disclose to the Treasurer if he or she, or his or her spouse, is an
officer, director or employee of a depository or owns greater than
two percent of a depository. Any employee of the office of the
Treasurer who, or whose spouse, is an officer, director or employee
of a depository or owns greater than two percent of a depository
may not participate in any selection of or in any contract negotiations with any depository.
§12-1-11. Reports by depositories to Treasurer; discontinuance of
depositories.
(a) Each depository of state funds shall at the end of each
quarter cause its president or cashier designated officer to report
to the Treasurer the amount of state funds on deposit and the
report shall be verified by the affidavit of the officer making it.
The form and contents of the report shall be prescribed by the
Treasurer and may be in an electronic format.
_____(b) For the failure to file the report, or for other good
cause, the Treasurer may discontinue any depository as an eligible
depository and cause all state funds to be withdrawn from any
depository or depositories so discontinued.
(c) When a depository is discontinued, the Treasurer shall
immediately notify such depository of its discontinuance, and shall
immediately withdraw by current checks or by transfer to another
depository or depositories the full amount of the deposits held by
any depository so discontinued. After discontinuance, it shall be
unlawful for the Treasurer to deposit any state funds in any
depository so discontinued until such time as the depository may be
reinstated to eligibility.
§12-1-12b. Cash Management Improvement Act; administration;
reports.
(a) The Cash Management Improvement Act of 1990, Public Law
101-453, October 24, 1990, 31 U.S.C. Section 6501 et. seq. (CMIA)
and regulations, as amended, establishes requirements and
techniques, including calculations, for the receipt and
disbursement of federal funds by states. The authorized official
and representative of the State of West Virginia for the CMIA is
the State Treasurer.
(b) In administering the CMIA, the State Treasurer is
authorized to do all things reasonably necessary, including without
limitation, entering into agreements with, negotiating settlements
with, refunding paying any interest due and satisfying any
liability to the United States Treasury in accordance with the
CMIA.
(c) Periodically, the State Treasurer shall transfer to the
"Federal Cash Management Fund", which is hereby authorized and
continued, earnings on the State General Revenue Fund in an amount
the Treasurer estimates is needed to make refunds interest payments
in accordance with the CMIA. After each annual settlement with the
United States Treasury, the State Treasurer shall transfer to the
State General Revenue Fund any moneys remaining in the Federal Cash
Management Interest Fund for the period just settled.
(d) The State Treasurer shall also transfer periodically to
the "Federal Cash Management - Administration Fund," which is hereby authorized and continued, earnings on the State General
Revenue Fund in an amount the Treasurer determines is needed to pay
for the costs of administering the CMIA. The State Treasurer may
pay the costs he or she incurs in administering the CMIA from the
Federal Cash Management-Administration Fund.
(e) All state spending units shall cooperate fully with the
State Treasurer in accumulating all the necessary data elements to
fully comply with the CMIA.
(f) The State Treasurer shall send quarterly reports an annual
report on the activities involving the CMIA to the Governor,
Auditor, Secretary of Revenue and Joint Committee on Government and
Finance.
ARTICLE 2. PAYMENT AND DEPOSIT OF TAXES AND OTHER AMOUNTS DUE THE
STATE OR ANY POLITICAL SUBDIVISION.
§12-2-2. Itemized record of moneys received for deposit;
regulations governing deposits; credit to state
fund; exceptions.
(a) All officials and employees of the state authorized by
statute to accept moneys due the State of West Virginia shall keep
a daily itemized record of moneys received for deposit in the state
Treasury and shall deposit within twenty-four hours with the state
Treasurer all moneys received or collected by them for or on behalf of the state for any purpose whatsoever. The State Treasurer may
review the procedures and methods used by officials and employees
authorized to accept moneys due the state and change the procedures
and methods if he or she determines it is in the best interest of
the state: Provided, That the state Treasurer may not review or
amend the procedures by which the Department of Revenue accepts
moneys due the state. The State Treasurer shall propose rules for
legislative approval, in accordance with the provisions of article
three, chapter twenty-nine-a of this code governing the procedure
for deposits. The official or employee making deposits with the
state Treasurer shall prepare deposit lists in the manner and upon
report forms prescribed by the state Treasurer in the state
accounting system. The State Treasurer shall review the deposits
in the state accounting system and forward the information to the
State Auditor and to the Secretary of Revenue.
(b) All moneys received by the state from appropriations made
by the Congress of the United States shall be recorded in special
fund accounts, in the state Treasury apart from the general
revenues of the state, and shall be expended in accordance with the
provisions of article eleven, chapter four of this code. All
moneys, other than federal funds, defined in section two, article
eleven, chapter four of this code, shall be credited to the state
fund and treated by the State Auditor and State Treasurer as part of the general revenue of the state except the following funds
which shall be recorded in separate accounts:
(1) All funds excluded by the provisions of section six,
article eleven, chapter four of this code;
(2) All funds derived from the sale of farm and dairy products
from farms operated by any spending unit of the state;
(3) All endowment funds, bequests, donations, executive
emergency funds and death and disability funds;
(4) All fees and funds collected at state educational
institutions for student activities;
(5) All funds derived from collections from dormitories,
boardinghouses, cafeterias and road camps;
(6) All moneys received from counties by institutions for the
deaf and blind on account of clothing for indigent pupils;
(7) All insurance collected on account of losses by fire and
refunds;
(8) All funds derived from bookstores and sales of blank paper
and stationery, and collections by the chief inspector of public
offices;
(9) All moneys collected and belonging to the capitol building
fund, state road fund, state road sinking funds, general school
fund, school fund, state fund (moneys belonging to counties,
districts and municipalities), state interest and sinking funds, state compensation funds, the fund maintained by the Public Service
Commission for the investigation and supervision of applications
and all fees, money, interest or funds arising from the sales of
all permits and licenses to hunt, trap, fish or otherwise hold or
capture fish and wildlife resources and money reimbursed and
granted by the federal government for fish and wildlife
conservation; and
(10) All moneys collected or received under any act of the
Legislature providing that funds collected or received under the
act shall be used for specific purposes.
(c) All moneys, except as provided in subdivisions (1) through
(9), inclusive, subsection (b) of this section, shall be paid into
the state Treasury in the same manner as collections not excepted
and recorded in separate accounts for receipt and expenditure for
the purposes for which the moneys are authorized to be collected by
law: Provided, That amounts collected pursuant to subdivision
(10), subsection (b) of this section, which are found, from time to
time, to exceed funds needed for the purposes set forth in general
law may be transferred to other accounts or funds and redesignated
for other purposes by appropriation of the Legislature. The gross
amount collected in all cases shall be paid into the state
Treasury. Commissions, costs and expenses, including, without
limitation, amounts charged for use of bank, charge, credit or debit cards, incurred in the collection process shall be paid from
the gross amount collected in the same manner as other payments are
made from the state Treasury.
(d) The State Treasurer may establish an imprest fund or funds
in the office of any state spending unit upon receipt of a proper
application. To implement this authority, the state Treasurer
shall propose rules for legislative approval in accordance with the
provisions of article three, chapter twenty-nine-a of this code.
The State Treasurer or his or her designee shall annually audit all
imprest funds and prepare a list of the funds showing the location
and amount as of fiscal year end, retaining the list as a permanent
record of the state Treasurer until the Legislative Auditor has
completed an audit of the imprest funds of all agencies and
institutions involved.
(e) The State Treasurer may develop and implement a
centralized receipts processing center. The State Treasurer may
request the transfer of equipment and personnel from appropriate
state agencies to the centralized receipts processing center in
order to implement the provisions of this section: Provided, That
the Governor or appropriate Constitutional officer has authority to
authorize the transfer of equipment or personnel to the centralized
receipts processing center from the respective agency.
_____(a) All officials and employees of the state authorized by statute to accept moneys on behalf of the State of West Virginia
shall keep a daily itemized record of moneys received for deposit
in the State Treasury and shall deposit within one business day
with the State Treasurer all moneys received or collected by them
for or on behalf of the state for any purpose whatsoever. The
State Treasurer may grant an exception to the one business day rule
when circumstances make compliance difficult or expensive.
_____(b) The State Treasurer shall establish standards for internal
controls for spending units receipting moneys, assist spending
units in developing and improving their internal control procedures
for receipting moneys and provide training. State spending units
accepting moneys shall establish and at least annually review
internal control procedures for receipting moneys that safeguard
assets, minimize fraud, waste and abuse, and comply with applicable
laws, rules and regulations. Upon request of the State Treasurer,
spending units, except the Department of Revenue, shall submit the
internal control procedures and any revisions to the internal
control procedures to the State Treasurer for review. The State
Treasurer may make revisions to or suggestions for the internal
control procedures if he or she believes the procedures do not
provide reasonable protection for moneys collected. A spending
unit shall adopt any revisions made by the Treasurer.
_____(c) Any confidential information in internal control procedures shall be redacted before release of the internal control
procedures in accordance with a request pursuant to §29B-1-1 et
seq. of this code.
_____(d) The Treasurer may also audit the receipting of moneys by
a spending unit, except spending units within the Department of
Revenue. A copy of any audit performed by the Treasurer shall be
submitted to the Legislative Auditor. Any audit of a spending unit
by an internal auditor or by an auditing firm shall include an
evaluation of and report on the adequacy of internal control
procedures for receipting moneys, with a copy of the audit being
sent to the Treasurer and to the Legislative Auditor within thirty
days of receipt of the audit by the spending unit.
_____(e)The State Treasurer shall propose rules for legislative
approval, in accordance with the provisions of article three,
chapter twenty-nine-a of this code governing the procedure for
deposits.
_____(f) The official or employee making deposits with the State
Treasurer shall prepare deposit lists in the manner and upon report
forms prescribed by the State Treasurer in the state accounting
system. The State Treasurer shall review the deposits in the state
accounting system and forward the information to the State Auditor
and to the Secretary of Revenue.
_____(g) All moneys received by the state shall be recorded in federal, general revenue and special fund accounts in the State
Treasury, as follows:
_____(1) All federal funds, defined in section two, article eleven,
chapter four of this code, received shall be recorded in federal
fund accounts in the state treasury apart from the general and
special revenues of the state, and shall be expended in accordance
with the provisions of article eleven, chapter four of this code.
_____(2) All moneys, other than federal and special revenue funds,
shall be credited to the state fund and treated by the State
Auditor and State Treasurer as part of the general revenue of the
state.
_____(3) All moneys from specific revenue sources which by
legislative enactments are not required to be accounted for as
general revenue funds or federal funds, are special revenue funds,
and include, but are not limited to the following funds which shall
be recorded in separate accounts:
_____(A) All funds excluded by the provisions of section six,
article eleven, chapter four of this code;
_____(B) All funds derived from the sale of farm and dairy products
from farms operated by any spending unit of the state;
_____(C) All endowment funds, bequests, donations, executive
emergency funds and death and disability funds;
_____(D) All fees and funds collected at state educational institutions for student activities;
_____(E) All funds derived from collections from dormitories,
boardinghouses, cafeterias and road camps;
_____(F) All moneys received from counties by institutions for the
deaf and blind on account of clothing for indigent pupils;
_____(G) All insurance collected on account of losses by fire and
refunds;
_____(H) All funds derived from bookstores;
_____(I) All moneys collected and belonging to the capitol building
fund, state road fund, general school fund, school fund, political
subdivisions,
state compensation funds, the fund maintained by the
Public Service Commission for the investigation and supervision of
applications and all fees, money, interest or funds arising from
the sales of all permits and licenses to hunt, trap, fish or
otherwise hold or capture fish and wildlife resources and money
reimbursed and granted by the federal government for fish and
wildlife conservation; and
_____(J) All moneys collected or received under any act of the
Legislature providing that funds collected or received under the
act shall be used for specific purposes.
_____(K) All moneys, except as provided in paragraphs (A) through (I), inclusive, subdivision (3), subsection (g) of this section,
shall be paid into the State Treasury in the same manner as
collections not excepted and recorded in separate accounts for
receipt and expenditure for the purposes for which the moneys are
authorized to be collected by law: Provided, That amounts collected
pursuant to, paragraph (J), subdivision (3), subsection (g) of this
section, which are found, from time to time, to exceed funds needed
for the purposes set forth in general law may be transferred to
other accounts or funds and redesignated for other purposes by
appropriation of the Legislature.
_____(L) The gross amount collected in all cases shall be paid into
the State Treasury. Commissions, costs and expenses, including,
without limitation, amounts charged for use of bank, charge, credit
or debit cards, incurred in the collection process shall be paid
from the gross amount collected in the same manner as other
payments are made from the State Treasury.
_____(M) The State Treasurer may establish an imprest fund or funds
in the office of any state spending unit upon receipt of a proper
application. To implement this authority, the State Treasurer shall
propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code.
The State Treasurer or his or her designee shall annually audit all
imprest funds and prepare a list of the funds showing the location
and amount as of fiscal year end, retaining the list as a permanent
record of the State Treasurer until the Legislative Auditor has
completed an audit of the imprest funds of all agencies and
institutions involved.
_____(N) The State Treasurer may develop and implement a
centralized receipts processing center. The State Treasurer may
request the transfer of equipment and personnel from appropriate
state agencies to the centralized receipts processing center in
order to implement the provisions of this section: Provided, That
the Governor or appropriate constitutional officer has authority to
authorize the transfer of equipment or personnel to the centralized
receipts processing center from the respective agency.
§12-2-3. Deposit of moneys not due the State.
(a) All officials and employees of the State authorized to
accept moneys that the State Treasurer determines or that this code
specifies are not funds due the State pursuant to the provisions of
section two of this article shall deposit the moneys, as soon as practicable, in the manner and in the depository specified by the
State Treasurer. The State Treasurer shall prescribe the forms and
procedures for depositing the moneys.
(b) Notwithstanding any provision of this code to the
contrary, including provisions stating funds collected are not
state funds and provisions authorizing a spending unit to have one
or more accounts outside the Treasury, a spending unit shall comply
with the State Treasurer's procedures for the receipt and
disbursement of moneys not due the state and obtain written
authorization from the State Treasurer before depositing any moneys
in an account outside the Treasury. Upon the State Treasurer`s
written revocation of the authorization, the spending unit shall
deposit funds deposited in an account outside the Treasury into the
Treasury in the manner and in the depository specified by the State
Treasurer. The State Treasurer is the final determining authority
as to whether these funds are funds due or not due the state
pursuant to section two of this article.
(c) The State Treasurer shall on a quarterly basis provide the
Legislative Auditor with a an annual report of all accounts
authorized under this section.
ARTICLE 3. APPROPRIATIONS, EXPENDITURES AND DEDUCTIONS.
§12-3-1. Manner of payment from Treasury; form of checks.
(a) Every person claiming to receive money from the Treasury
of the state shall apply to the Auditor for a warrant for same. The
Auditor shall thereupon examine the claim, and the vouchers,
certificates and evidence, if any, offered in support thereof, and
for so much thereof as he or she finds to be justly due from the
state, if payment thereof is authorized by law, and if there is an
appropriation not exhausted or expired out of which it is properly
payable, the Auditor shall issue his or her warrant on the
Treasurer, specifying to whom and on what account the money
mentioned therein is to be paid, and to what appropriation it is to
be charged. The Auditor shall present to the Treasurer daily
reports on the number of warrants issued, the amounts of the
warrants and the dates on the warrants for the purpose of
effectuating the investment policies of the State Treasurer, and
the West Virginia Investment Management Board and the West Virginia
Board of Treasury Investments. On the presentation of the warrant
to the Treasurer, the Treasurer shall ascertain whether there are
sufficient funds in the Treasury to pay that warrant, and if he or she finds it to be so, he or she shall in that case, but not
otherwise, endorse his or her check upon the warrant, directed to
some depository, which check shall be payable to the order of the
person who is to receive the money therein specified.
(b) If a check is not presented for payment within six months
after it is drawn, it is the duty of the Treasurer to credit it to
the depository on which it was drawn, to credit the "Treasurer's
Stale Check Fund," which is hereby created in the State Treasury,
and immediately notify the Auditor to make corresponding entries on
the Auditor's books. If the State Treasurer determines any funds
deposited in the stale check account are federal funds, the State
Treasurer shall notify the spending unit authorizing the payment.
Within six months following issuance of the notice, the spending
unit shall inform the State Treasurer of the amount of federal
funds included in the check, the account from which the federal
funds were disbursed, and the current fiscal year account to which
the federal funds are to be transferred. After receiving the
information, the State Treasurer shall transfer the amount of
federal funds specified as a reimbursement to the current fiscal
year account specified to receive federal funds by the spending unit. For a period of up to six months, the State Treasurer shall
endeavor to pay the money in the stale check account to the payee.
The Treasurer shall credit the money that has been in the stale
check account for six months, or for a shorter period as determined
by the Treasurer, to the unclaimed property fund pursuant to the
provisions of article eight, chapter thirty-six of this code, and
shall immediately notify the Auditor to make corresponding entries
on the Auditor's books.
(c) No state depository may pay a check issued by the State
Treasurer unless it the check is presented within six months after
it is drawn. and every Every check shall bear upon its face the
words "Void, unless presented for payment within six months." If
a state check is not presented for payment within six months after
it is drawn, the state check is presumed to be a stale check and
shall be reported as unclaimed property, in accordance with §36-8-1
et seq. of this code.
_____All state spending units shall regularly monitor checks issued
on their behalf in accordance with procedures established by the
Treasurer. Factors to be reviewed and reported to the Treasurer
include, but are not limited to, whether any outstanding check contains federal funds, whether good-faith efforts have been made
to locate the payees, and whether the outstanding check still
constitutes a valid obligation owed to the payee. If an
outstanding state check contains any federal funds, the spending
unit shall advise the Treasurer of the amount of federal funds
included in the check, the account from which the federal funds
were disbursed and the current fiscal year account to which the
federal funds are to be transferred. If the check remains
outstanding and becomes a stale check, the Treasurer shall credit
the amount of the check to the state depository on which the check
was issued, notify the Auditor to make corresponding entries on his
or her books, and transfer the amount of federal funds reported as
a reimbursement to the current fiscal year account specified to
receive federal funds by the spending unit. The Treasurer shall
transfer any funds from stale checks that are not federal funds
into the Unclaimed Property Fund.
(d) Any information or records maintained by the Treasurer
concerning any check not presented for payment within six months of
the date of issuance is confidential and exempt from disclosure
under the provisions of article one, chapter twenty-nine-b §29B-1-1 et seq. of this code, and is disclosable only to the state spending
unit authorizing the check, or to the payee, his or her personal
representative, next of kin or attorney-at-law.
(e) All claims required by law to be allowed by any court, and
payable out of the State Treasury, shall have the seal of the court
allowing or authorizing the payment of the claim affixed by the
clerk of the court to his or her certificate of its allowance. No
claim may be audited and paid payment authorized by the Auditor
unless the seal of the court is thereto attached. as aforesaid. No
tax or fee may be charged by the clerk for affixing his or her seal
to the certificate, referred to in this section. The Treasurer
shall propose rules in accordance with the provisions of article
three, chapter twenty-nine-a of this code governing the procedure
for such payments from the treasury.
ARTICLE 3A. FINANCIAL ELECTRONIC COMMERCE.
§12-3A-3. Financial electronic commerce.
(a) The State Auditor and the State Treasurer shall implement
electronic commerce capabilities for each of their offices to
facilitate the performance of their duties under this code. The
State Treasurer shall competitively bid the selection of vendors needed to provide the necessary banking, investment and related
goods and services, and the provisions of article one-b, chapter
five, and articles three and seven, chapter five-a of this code
shall not apply, unless requested by the State Auditor or State
Treasurer.
(b) A document or a signature received, issued or used by the
Auditor or the Treasurer shall be considered an original and may
not be denied legal effect on the ground that it is in electronic
form.
(c) The Auditor or Treasurer may, in his or her discretion,
require documents filed with or submitted to his or her respective
office be filed or submitted in a prescribed electronic format.
(d) The Auditor or Treasurer, in his or her discretion, may
waive:
(1) Any requirements for a document filed or submitted in an
electronic format; or
(2) Any requirements for the certification, notarization or
verification of a document filed or submitted in an electronic
format.
(e) The head of each spending unit is responsible for adopting and implementing security procedures to ensure adequate integrity,
security, confidentiality, and auditability of the business
transactions of his or her spending unit when utilizing electronic
commerce.
(f) The Treasurer shall develop procedures for the storage,
retention and disposal of state records, as defined in section
three, article eight, chapter five-a of this code, filed with or
submitted to his or her office, and for the reproduction and
preservation of essential state records, as defined in section
four, article eight, chapter five-a of this code, filed with or
submitted to his or her office. Preservation duplicates, as
defined in section three, article eight, chapter five-a of this
code, shall be maintained in an unalterable readable electronic
media in accordance with industry standards, reviewed for accuracy
and indexed, and shall have the same force and effect as the
original records whether the original records are in existence or
not. The procedures shall provide for the maintenance of the
confidentiality of the records and ensure the Director of the
Division
of Archives and History receives the records the director
identifies as having historic value. The Treasurer shall purchase the equipment and supplies needed for record retention as part of
his or her electronic commerce activities.
ARTICLE 5. PUBLIC SECURITIES.
§12-5-4. Treasurer to keep accounts and make collections.
It shall be the duty of the Treasurer to The Treasurer shall
keep an accurate account of all securities received by him or her
and collect and account for the interest as it becomes due and
payable earnings received and the principal whenever it is due.
ARTICLE 6A. THE DEBT MANAGEMENT ACT OF 1991.
§12-6A-1. Short title.
This article shall be known and may be cited as "The Debt
Management Act of 1991".
§12-6A-2. Legislative findings and declaration of public
necessity.
(a) The Legislature hereby finds and declares that efficient
and effective state government requires the procuring, maintaining
and reporting of pertinent information relating to the debt of the
state and its agencies, boards, commissions and authorities. The
State Treasurer shall perform the functions and duties necessary to
serve as a central information source concerning the incurrence,
recording and reporting of debt issued by the state, its agencies,
boards, commissions and authorities.
(b) The Legislature hereby finds:
(1) The credit rating and acceptance of bonds, notes,
certificates of participation and other securities and indebtedness
of the State and its spending units have been unstable as a result
of the instability in traditional national and international
markets of goods and services produced by the citizens of the
State.
(2) In order to finance essential capital projects for the
benefit of the citizens of the State at the lowest possible cost,
the State must maintain high levels of acceptance of the
indebtedness of the State and its spending units in the financial
markets.
(3) In order to attain these goals, authorization of State
debt must be based on the ability of the State to meet its total
debt service requirements, in light of other uses of its fiscal
resources. in order to maintain the strong financial management of
the state, to meet the fiscal needs of state government and to
facilitate financing essential capital projects at the lowest
possible cost to the citizens of the state, the state must
regularly monitor the amount of debt issued by the state and its
spending units, ensure the state and its spending units meet all
debt service requirements, monitor the credit rating of the state
and analyze the acceptance of debt issued by the state and its spending units. The Legislature further finds that in order to
meet these important goals, the Division of Debt Management needs
to be continued.
§12-6A-3. Division of Debt Management created continued; director.
There is hereby created within the office of the State
Treasurer, the (a) The Division of Debt Management is continued in
the office of the State Treasurer.
_____(b) The Division shall serve as a central information source
concerning the incurrence, recording and reporting of debt issued
by the state and its spending units, and shall prepare reports
pertaining to the capacity of the state and its spending units to
issue debt.
_____(c) The division shall be under the control of a Director to
be appointed by the Treasurer and who shall be shall appoint a
director, qualified by reason of exceptional training and
experience in the field of activities of his or her respective
division, and who shall serve at the will and pleasure of the
Treasurer.
§12-6A-4. Definitions.
For the purpose of this article:
"Debt" means bonds, notes, certificates of participation,
certificate transactions, capital leases, debentures, lease
purchases, mortgages, securitizations and all other forms of securities and indebtedness obligations evidencing specific amounts
owed and payable on demand or on determinable dates.
_____"Debt impact report" means a report prepared by the division
which includes information pertaining to a proposed issuance of
debt by the state or its spending units.
"Division" means the Division of Debt Management.
"Moral obligation bond" means a debt obligation for which the
state or a spending unit has made a nonbinding covenant to make up
any deficiency in debt service.
_____"Net tax supported debt" means the amount of tax supported
debt less any applicable refundings, defeasances, escrow accounts,
reserve requirements and sinking funds.
"State" means the State of West Virginia.
"Spending unit" means any of the state's agencies, boards,
commissions, committees, authorities or other of its entities with
the power to issue debt and secure such debt, and not including
local political subdivisions of the State a state department,
agency, board, commission, committee, authority or other entity of
the state with the power to issue and secure debt. Spending unit
does not include local political subdivisions.
_____"Tax supported debt" means: (1) General obligation bonds of
the state; (2) moral obligation bonds of the state or a spending
unit; (3) capital leases, installment purchases, lease purchases, mortgages, certificates of participation and any other similar debt
financing transaction extending beyond one year issued by the state
or its spending units; and (4) any other debt issued by the state
or a spending unit which is not self-supporting. Tax supported
debt does not include any debt issued by the West Virginia housing
development fund, economic development authority, hospital finance
authority, parkway authority, public energy authority, solid waste
management board and water development authority, with the
exception of debt issued by the entities listed in this definition
secured by lottery revenues or secured by a lease with the
Secretary of Administration.
§12-6A-5. Powers and duties.
The Division of Debt Management shall perform the following
functions and duties:
(1) Develop a long-term debt plan including criteria for the
issuance of debt by the State and its spending units and the
continuous evaluation of Continuously evaluate the current and
projected debt and debt service requirements of the state and its
spending units.
(2) Evaluate cash flow projections relative to proposed and
existing revenue bond issues.
(3) Review all proposed offerings of debt of the state and its
spending units, requesting any additional information needed to issue a debt impact report if requested by the Governor, the
President of the Senate or the Speaker of the House of Delegates.
A debt impact report shall in no way restrict the Governor, the
Legislature or the spending unit.
_____(3) (4) Act as liaison with the Legislature on all debt
matters, including, but not limited to, new debt issues and the
status of debt issued by the state and its spending units.
(4) (5) Assist the state and its spending units regarding the
issuance of debt if requested.
(5) (6) Establish reporting requirements for the issuance of
debt by the state and its spending units pursuant to the provisions
of this article.
(7) Monitor continuing disclosure requirements and
post-issuance compliance issues with federal and state tax and
securities law, including, without limitation, arbitrage, rebate
and remedial measures.
_____(6) (8) Make and execute contracts and other instruments and
pay the reasonable value of services or commodities rendered to the
division pursuant to those contracts.
(7) (9) Contract, cooperate or join with any one or more other
governments or public agencies, or with any political subdivision
of the state, or with the United States, to perform any
administrative service, activity or undertaking which any such the contracting party is authorized by law to perform, and to charge
for providing such services and expend any fees collected.
(8) (10) Do all things necessary or convenient to effectuate
the intent of this article and to carry out its powers and
functions.
(9) Provide staff services to the debt capacity advisory
division established in article six-b of this chapter.
§12-6A-6. Debt information reporting Reporting.
(a) Within fifteen days following the end of each calendar
quarter, each state spending unit shall provide the division and
the Legislative Auditor, in the manner provided by this article and
in such form and detail as the State Treasurer may by regulation
require, a statement of the total debt of each such state spending
unit incurred during the calendar quarter and owing at the end of
such calendar quarter, which statement shall include report
including, but not be limited to, the name of the state spending
unit, the amounts and types of debt incurred during the calendar
quarter and outstanding at the end of the calendar quarter, the
cost and expenses of incurring the debt, the maturity date of each
debt, the terms and conditions of the debt, the current debt
service on the debt, the current interest rate on the debt, the
source of the proceeds utilized for repayment of the debt, the
amounts of repayment during the calendar quarter, the repayment schedule and the security for the debt. A state spending unit
having no outstanding debt shall not be required to provide the
quarterly report but shall file an annual report, on forms
established by the Division of Debt Management: Provided, That the
state spending unit shall immediately notify the Division of Debt
Management of any change in the spending unit's outstanding debt or
financial condition.
(b) Not less than thirty days prior to a proposed offering of
debt to be issued by the state or a state spending unit, written
notice of such the proposed offering and the terms thereof shall be
given to the division by such the state spending unit in the form
as the division may by regulation require.
(c)__Within thirty days after closing on an offering, the
terms shall be reported to the responsible spending unit shall
report to the division the information pertaining to the offering
required by the division in the form as the division may by
regulation require.
(c) (d) On or before the thirty-first day of January 31 and
the thirty-first day of July 31 of each year, the Treasurer
division shall prepare and issue a report of all debt of the state
and its spending units and of all proposed debt issuances of which
the Treasurer division has received notice and shall furnish a copy
of such the report to the Governor, the President of the Senate, the Speaker of the House of Delegates, the members of the Joint
Committee on Government and Finance, the Legislative Auditor and
upon request to any other legislative committee and any member of
the Legislature. The report shall be kept available for inspection
by any citizen of the state. The Treasurer division shall also
prepare updated reports of all debt of the state and its spending
units as of March 31 and September 30 each year, which shall be
available for inspection at the office of the State Treasurer on or
before the thirty-first day of March and the thirtieth day of
September of each year within thirty days of the end of the
respective calendar quarter.
_____(e) On or before the fifteenth day of January 15 each year,
the division shall report to the Governor and to the Legislature on
the capacity of the state to issue additional debt. In preparing
its annual review and estimate, the division shall, at a minimum,
consider:
_____(1) The amount of net tax supported debt outstanding and debt
authorized but not issued during the current and next fiscal year
and annually for the following ten fiscal years;
_____(2) Debt service requirements during the current and next
fiscal year and annually for the following ten fiscal years based
upon existing outstanding debt, previously authorized but unissued
debt and projected bond authorizations;
_____(3) Any information available from the budget office of the
Department of Revenue in connection with projected revenues and
anticipated capital expenditures projected for at least the next
five fiscal years;
_____(4) The amount of debt the state and its spending units may
prudently issue;
_____(5) What is needed to keep West Virginia within an average to
low range of nationally recognized debt limits;
_____(6) The debt ratios rating agencies and analysts use; and
_____(7) The effect of authorizations of new tax supported debt on
each of the considerations in this subsection.
§12-6A-7. Promulgation of rules.
The Division of Debt Management Treasurer shall promulgate
propose rules for legislative approval relating to reporting
requirements and its the duties under this article and the rules
shall be promulgated in accordance with the provisions of article
three, chapter twenty-nine-a of this Code.
ARTICLE 6C. WEST VIRGINIA BOARD OF TREASURY INVESTMENTS.
§12-6C-7. Management and control of fund; officers; staff;
fiduciary or surety bonds for directors; liability
of directors.
(a) The management and control of the Consolidated Fund is vested solely in the board in accordance with the provisions of
this article.
(b) The State Treasurer is the chairperson of the board. The
board shall elect a vice chairperson. Annually, the directors shall
elect a secretary to keep a record of the proceedings of the Board
and provide any other duties required by the board. The board may
elect a person who is not a member of the board as secretary.
(c) The board may use the staff of the State Treasurer, employ
personnel and contract with any person or entity needed to perform
the tasks related to operating the Consolidated Fund.
(d) The board shall retain an internal auditor to report
directly to the board and shall fix his or her compensation. As a
minimum qualification, the internal auditor shall be a certified
public accountant with at least three years' experience as an
auditor. The internal auditor shall develop an internal audit plan,
with board approval, for the testing of procedures, internal
controls and the security of transactions.
(e) The board may retain one employee with a chartered
financial analyst designation or an employee who is a certified
treasury manager.
(f) Each director shall give a separate fiduciary or surety
bond from a surety company qualified to do business within this
state in a penalty amount of one $1 million dollars for the faithful performance of his or her duties as a director. The Board
shall purchase a blanket bond for the faithful performance of its
duties in the amount of fifty set by the board of at least ten $10
million dollars. or in an amount equivalent to one percent of the
assets under management, whichever is greater. The amount of the
blanket bond is in addition to the $1 one million dollar individual
bond required of each director by the provisions of this section.
The board may require a fiduciary or surety bond from a surety
company qualified to do business in this state for any person who
has charge of, or access to, any securities, funds or other moneys
held by the board and the amount of the fiduciary or surety bond
are fixed by the board. The premiums payable on all fiduciary or
surety bonds are expenses of the board.
(g) The directors, employees of the board and employees of the
State Treasurer performing work for or on behalf of the board are
not liable personally, either jointly or severally, for any debt or
obligation created by the board: Provided, That the directors and
employees of the board are liable for acts of misfeasance or gross
negligence.
(h) The board is exempt from the provisions of article three,
chapter five-a, and sections seven and eleven, article three,
chapter twelve of this code. However, the board is subject to the
purchasing policies and procedures of the State Treasurer's Office.
§12-6C-9. Asset allocation; investment policies, authorized
investments; restrictions.
(a) The board shall develop, adopt, review or modify an asset
allocation plan for the Consolidated Fund at each annual board
meeting.
(b) The board shall adopt, review, modify or cancel the
investment policy of each fund or pool created at each annual board
meeting. For each participant directed account authorized by the
State Treasurer, staff of the board shall develop an investment
policy for the account and create the requested account. The board
shall review all existing participant directed accounts and
investment policies at its annual meeting for modification.
(c) The board shall consider the following when adopting,
reviewing, modifying or canceling investment policies:
(1) Preservation of capital;
(2) Risk tolerance;
(3) Credit standards;
(4) Diversification;
(5) Rate of return;
(6) Stability and turnover;
(7) Liquidity;
(8) Reasonable costs and fees;
(9) Permissible investments;
(10) Maturity ranges;
(11) Internal controls;
(12) Safekeeping and custody;
(13) Valuation methodologies;
(14) Calculation of earnings and yields;
(15) Performance benchmarks and evaluation; and
(16) Reporting.
(d) No security may be purchased by the board unless the type
of security is on a list approved at a board meeting. The board
shall review the list at its annual meeting.
(e) Notwithstanding the restrictions which are otherwise
provided by law with respect to the investment of funds, the board
and all participants, now and in the future, may invest funds in
these securities:
(1) Obligations of, or obligations that are insured as to
principal and interest by, the United States of America or any
agency or corporation thereof and obligations and securities of the
United States sponsored enterprises, including, without limitation:
(i) United States Treasury;
(ii) Export-Import Bank of the United States;
(iii) Farmers Home Administration;
(iv) Federal Farm Credit Banks;
(v) Federal Home Loan Banks;
(vi) Federal Home Loan Mortgage Corporation;
(vii) Federal Land Banks;
(viii) Government National Mortgage Association;
(ix) Merchant Marine bonds; and
(x) Tennessee Valley Authority Obligations;
(2) Obligations of the Federal National Mortgage Association;
(3) Commercial paper with one of the two highest commercial
paper credit ratings by a nationally recognized investment rating
firm statistical rating organization;
(4) Corporate debt rated in one of the six highest rating
categories by a nationally recognized rating agency investment
grade by a nationally recognized statistical rating organization;
(5) State and local government, or any instrumentality or
agency thereof, securities with one of the three highest ratings by
a nationally recognized rating agency statistical rating
organization;
(6) Repurchase agreements involving the purchase of United
States Treasury securities and repurchase agreements fully
collateralized by obligations of the United States Government or
its agencies or instrumentalities;
(7) Reverse repurchase agreements involving the purchase of
United States Treasury securities and reverse repurchase agreements
fully collateralized by obligations of the United States Government or its agencies or instrumentalities;
(8) Asset-backed securities rated in the highest category by
a nationally recognized rating agency statistical rating
organization;
(9) Certificates of deposit; and
(10) Money market and other fixed income funds; and
(10) (11) Investments in accordance with the Linked Deposit
Program, a program loans authorized under this article, programs
using financial institutions in West Virginia to obtain
certificates of deposit, loans approved by the Legislature invest
moneys, equipment and software financing program for West Virginia
State Government entities that authorize the board to capture
revenues in the event of default
and any other programs authorized
by the Legislature.
(f) In addition to the restrictions and conditions contained
in this section:
(1) At no time shall more than seventy-five percent of the
Consolidated Fund be invested in any bond, note, debenture,
commercial paper or other evidence of indebtedness of any private
corporation or association; and
(2) At no time shall more than five percent of the
Consolidated Fund be invested in securities issued by a single
private corporation or association. and
(3) At no time shall less than fifteen percent of the
Consolidated Fund be invested in any direct obligation of or
obligation guaranteed as to the payment of both principal and
interest by the United States of America.
(g) Securities purchased in compliance with this article that
become noncompliant may be retained upon recommendation of the
investment manager of the security and the board investment
consultant.
CHAPTER 18. EDUCATION.
ARTICLE 30. WEST VIRGINIA COLLEGE PREPAID TUITION AND SAVINGS
PROGRAM ACT.
§18-30-8. College Prepaid Tuition and Savings Program
Administrative Account.
(a) There is hereby created a separate account within the
State Treasurer's office titled the "College Prepaid Tuition and
Savings Program Administrative Account" for the purposes of
implementing, operating and maintaining the trust funds and program
created by this article, and providing matching grant contributions
and scholarships for the program. On the effective date of this
section, all moneys in the Prepaid Tuition Trust Fund
Administrative Account are hereby transferred to the College
Prepaid Tuition and Savings Program Administrative Account.
(b) The administrative account shall receive all fees, charges
and penalties collected by the board. Expenditures from the fund
are authorized from collections subject to appropriations made by
the Legislature.
§18-30-11. Financial aid eligibility.
(a) The calculations of a beneficiary's eligibility for state
student financial aid for higher education may not include or
consider the value of distributions available in a prepaid tuition
account or the value of distributions available in a savings plan
account.
(b) The value of a prepaid tuition account or a savings plan
account shall not be considered for purposes of determining
eligibility for income-based governmental financial assistance,
unless otherwise required by federal law.
_____
CHAPTER 33. INSURANCE
ARTICLE 3. LICENSING, FEES, AND TAXATION OF INSURANCE.
§33-3-14d. Additional fire and casualty insurance premium tax;
allocation of proceeds; effective date.
(a) (1) For the purpose of providing additional revenue for
municipal policemen's and firemen's pension and relief funds and
the Teachers Retirement System Reserve Fund and for volunteer and
part-volunteer fire companies and departments, there is hereby levied and imposed an additional premium tax equal to one percent
of taxable premiums for fire insurance and casualty insurance
policies. For purposes of this section, casualty insurance does not
include insurance on the life of a debtor pursuant to or in
connection with a specific loan or other credit transaction or
insurance on a debtor to provide indemnity for payments becoming
due on a specific loan or other credit transaction while the debtor
is disabled as defined in the policy.
(2) All moneys collected from this additional tax shall be
received by the commissioner and paid by him or her into a special
account in the State Treasury, designated the Municipal Pensions
and Protection Fund: Provided, That on or after January 1, 2010,
the commissioner shall pay ten percent of the amount collected to
the Teachers Retirement System Reserve Fund created in section
eighteen, article seven-a, chapter eighteen of this code,
twenty-five percent of the amount collected to the Fire Protection
Fund created in section thirty-three of this article for allocation
by the Treasurer to volunteer and part-volunteer fire companies and
departments and sixty-five percent of the amount collected to the
Municipal Pensions and Protection Fund: Provided, however, That
upon notification by the Municipal Pensions Oversight Board
pursuant to the provisions of section eighteen-b, article
twenty-two, chapter eight of this code, on or after January 1, 2010, or as soon thereafter as the Municipal Pensions Oversight
Board is prepared to receive the funds, sixty-five percent of the
amount collected by the commissioner shall be deposited in the
Municipal Pensions Security Fund created in section eighteen-b,
article twenty-two, chapter eight of this code. The net proceeds of
this tax after appropriation thereof by the Legislature is
distributed in accordance with the provisions of this section,
except for distribution from proceeds pursuant to subsection (d),
section eighteen-a, article twenty-two, chapter eight of this code.
(b) (1) Before the first day of August 1 of each year, the
Treasurer of each municipality in which a municipal policemen's or
firemen's pension and relief fund is established shall report to
the State Treasurer the average monthly number of members who
worked at least one hundred hours per month and the average monthly
number of retired members of municipal policemen's or firemen's
pension and relief fund or the Municipal Police Officers and
Firefighters Retirement System during the preceding fiscal year:
Provided, That beginning in the year 2010 and continuing
thereafter, the report shall be made to the oversight board created
in section eighteen-a, article twenty-two, chapter eight of this
code. These reports received by the oversight board shall be
provided annually to the State Treasurer by September 1.
(2) Before the first day of September 1 of each calendar year, the State Treasurer, or the Municipal Pensions Oversight Board,
once in operation, shall allocate and authorize for distribution
the revenues in the Municipal Pensions and Protection Fund which
were collected during the preceding calendar year for the purposes
set forth in this section. Before the first day of September 1 of
each calendar year and after the Municipal Pensions Oversight Board
has notified the Treasurer and commissioner pursuant to section
eighteen-b, article twenty-two, chapter eight of this code, the
Municipal Pensions Oversight Board shall allocate and authorize for
distribution the revenues in the Municipal Pensions Security Fund
which were collected during the preceding calendar year for the
purposes set forth in this section. In any year the actuarial
report required by section twenty, article twenty-two, chapter
eight of this code indicates no actuarial deficiency in the
Municipal Policemen's or Firemen's Pension and Relief Fund, no
revenues may be allocated from the Municipal Pensions and
Protection Fund or the Municipal Pensions Security Fund to that
fund. The revenues from the Municipal Pensions and Protection Fund
shall then be allocated to all other pension and relief funds which
have an actuarial deficiency. (3) The moneys, and the interest
earned thereon, in the Municipal Pensions and Protection Fund
allocated to volunteer and part-volunteer fire companies and
departments shall be allocated and distributed quarterly to the volunteer fire companies and departments. Before each distribution
date, the State Fire Marshal shall report to the State Treasurer
the names and addresses of all volunteer and part-volunteer fire
companies and departments within the state which meet the
eligibility requirements established in section eight-a, article
fifteen, chapter eight of this code.
(c) (1) Each municipal pension and relief fund shall have
allocated and authorized for distribution a pro rata share of the
revenues allocated to municipal policemen's and firemen's pension
and relief Funds based on the corresponding municipality's average
monthly number of police officers and firefighters who worked at
least one hundred hours per month during the preceding fiscal year.
On and after July 1, 1997, from the growth in any moneys collected
pursuant to the tax imposed by this section and interest thereon
there shall be allocated and authorized for distribution to each
municipal pension and relief fund, a pro rata share of the revenues
allocated to municipal policemen's and firemen's pension and relief
funds based on the corresponding municipality's average number of
police officers and firefighters who worked at least one hundred
hours per month and average monthly number of retired police
officers and firefighters. For the purposes of this subsection, the
growth in moneys collected from the tax collected pursuant to this
section is determined by subtracting the amount of the tax collected during the fiscal year ending June 30, 1996, from the tax
collected during the fiscal year for which the allocation is being
made and interest thereon. All moneys received by municipal pension
and relief funds under this section may be expended only for those
purposes described in sections sixteen through twenty-eight,
inclusive, article twenty-two, chapter eight of this code.
(2) Each volunteer fire company or department shall receive an
equal share of the revenues allocated for volunteer and
part-volunteer fire companies and departments.
(3) In addition to the share allocated and distributed in
accordance with subdivision (1) of this subsection, each municipal
fire department composed of full-time paid members and volunteers
and part-volunteer fire companies and departments shall receive a
share equal to the share distributed to volunteer fire companies
under subdivision (2) of this subsection reduced by an amount equal
to the share multiplied by the ratio of the number of full-time
paid fire department members who are also members of a municipal
firemen's pension and relief fund or the Municipal Police Officers
and Firefighters Retirement System to the total number of members
of the fire department.
(d) The allocation and distribution of revenues provided for
in this section are subject to the provisions of section twenty,
article twenty-two, and sections eight-a and eight-b, article fifteen, chapter eight of this code.
(e) Based on the findings of an audit by the Treasurer, the
Legislature hereby finds and declares that during the period of
1982 through February 29, 2012 allocations from the Municipal
Pensions Protection Fund were miscalculated and errors were made in
amounts transferred, resulting in overpayments and underpayments to
the relief and pension funds and to the Teachers Retirement System,
and that the relief and pension funds and the Teachers Retirement
System were not at fault for any of the overpayments and
underpayments. The Legislature hereby further finds and declares
that any attempt by the Municipal Pension Oversight Board or other
entity to recover any of the overpayments would be unjust and
create economic hardship for the entities that received
overpayments. No entity, including, without limitation, the
Municipal Pension Oversight Board, may seek to recover from a
relief or pension fund, the Teachers Retirement System or the state
any overpayments received from the Municipal Pensions and
Protection Fund
and the overpayments are not subject to recovery,
offset or litigation. Pursuant to the audit by the Treasurer, the
amount of $3,571,546.55 is determined owed to specific relief and
pension funds through the period of February 29, 2012. The
Treasurer is hereby authorized to transfer the amount of $3,571,546.55 from the Unclaimed Property Trust Fund to the
Municipal Pensions and Protect Fund, which is hereby reopened for
the sole purpose of the transfer and remittances pursuant to this
subsection (e), and to use the amount transferred to remit the
amounts due to the pension and relief funds. The payment of the
$3,571,546.55 to the pension and relief funds is complete
satisfaction of any amounts due, and n
o entity, including, without
limitation, the Municipal Pension Oversight Board and any pension
or relief fund, may seek to recover any further amounts.
CHAPTER 36. ESTATES AND PROPERTY.
ARTICLE 8. UNIFORM UNCLAIMED PROPERTY ACT.
§36-8-13. Deposit of funds.
(a) The administrator shall record the name and last known
address of each person appearing from the holders reports to be
entitled to the property and the name and last known address of
each insured person or annuitant and beneficiary and with respect
to each policy or annuity listed in the report of an insurance
company, its number, the name of the company and the amount due.
(b) The Unclaimed Property Fund is continued. The
administrator shall deposit all funds received pursuant to this
article in the Unclaimed Property Fund, including the proceeds from
the sale of abandoned property under section twelve of this article. In addition to paying claims of unclaimed property duly
allowed, the administrator may deduct the following expenses from
the Unclaimed Property Fund:
(1) Expenses of the sale of abandoned property;
(2) Expenses incurred in returning the property to owners,
including without limitation the costs of mailing and publication
to locate owners;
(3) Reasonable service charge; and
(4) Expenses incurred in examining records of holders of
property and in collecting the property from those holders; and
_____(5) Expenses related to the operations and programs of the
Treasurer's office.
(c) The Unclaimed Property Trust Fund is continued within the
State Treasury. The administrator may invest the Unclaimed Property
Trust Fund with the West Virginia Board of Treasury Investments and
all earnings shall accrue to the fund and are available for
expenditure in accordance with this article. After deducting the
expenses specified in subsection (b) of this section and
maintaining a sum of money from which to pay claims duly allowed,
the administrator shall transfer the remaining moneys in the
Unclaimed Property Fund to the Unclaimed Property Trust Fund.
(d) (1) On July 1, 2009, the unclaimed property administrator
shall transfer the amount of $8 million from the Unclaimed Property Trust Fund to the Prepaid Tuition Trust Escrow Fund.
(2) On or before December 15 of each year, notwithstanding any
provision of this code to the contrary, the administrator shall
transfer the sum of $1 million from the Unclaimed Property Trust
Fund to the Prepaid Tuition Trust Escrow Fund, until the actuary
certifies there are sufficient funds to pay out all contracts.
(e) On or before June 1, 2007, the unclaimed property
administrator shall transfer the amount of $2 million from the
Unclaimed Property Trust Fund to the Deferred Compensation Matching
Fund for operation of the deferred compensation matching program
for state employees. On or before June 1, 2008, the unclaimed
property administrator shall transfer the amount of $1 million from
the Unclaimed Property Trust Fund to the Deferred Compensation
Matching Fund for operation of the matching program.
(f) On or before June 1, 2013, the unclaimed property
administrator shall transfer the amount of $3,571,546.55 from the
Unclaimed Property Trust Fund to the Municipal Pensions Security
Fund for the purpose of satisfying any amounts due as of February
29, 2012 to policemen's and firemen's pension and relief funds in
accordance with §33-3-14d of this Code.
_____(f) (g) After transferring any money required by subsections
(d) and (e) through (f) of this section, the administrator shall
transfer moneys remaining in the Unclaimed Property Trust Fund to the General Revenue Fund.
NOTE: The purpose of this bill is to amend various provisions
of the Code affecting the Treasurer's Office. In addition to
various technical clean up revisions, the bill authorizes
organizations exempt from taxation within West Virginia to
participate in the deferred compensation plan Retirement Plus in
accordance with the Internal Revenue Code and authorizes Roth
accounts within the deferred compensation plan Retirement Plus in
accordance with the Internal Revenue Code. Financial institutions
would be permitted to offer products in addition to certificates of
deposit. The bill updates references to investing authorities to
include the Board of Treasury Investments, raises the amount of
eligible deposits from $100,000 to the amount insured by a federal
agency, deletes archaic language pertaining to eligible
depositories, amends language pertaining to what constitutes a
conflict of interest for applicants and employees of the
Treasurer's office in connection with financial institutions by
prohibiting those persons with a defined conflict from
participating in the selection of or in contract negotiations with
a depository, and authorizes depositories to submit reports in an
electronic format. In connection with the Cash Management
Improvement Act (CMIA), the bill repeals duplicate §12-1-12c,
clarifies that payments under the CMIA are interest payments, and
changes the CMIA report from a quarterly report to an annual report
since the calculation is only prepared annually. Revisions
pertaining to receipting of moneys include changing the requirement
that deposits are required within 24 hours to one business day
(since 24 hours is not feasible); establishing standards for
receipting of moneys; reviewing internal controls by auditors and
the Treasurer; ensuring copies of audits are submitted to the
Legislative Auditor; and requiring redaction of confidential
information in internal control procedures before release of the
procedures. The bill clarifies the definitions of federal, special
and general revenue funds, eliminates reference to the chief
inspector of public offices (position has not existed for many
years), and changes the report to the Legislative Auditor for
accounts outside the treasury from quarterly to an annual report.
Proposed revisions conform language pertaining to determining the
amount of federal funds in stale state checks to the capabilities
of the enterprise resource planning system; clarify that the Treasurer determines the competitive bidding of banking, investment
and related goods and services required for treasury operations;
authorize the Treasurer to develop procedures for storing,
retaining and disposing of records for his or her office; ensure
the February 28, 2013 Director of the Division of Archives and
History receives records with historical value; and clarify that
the Treasurer is responsible for earnings received on securities,
not just interest. The bill repeals the provision of article 6B of
chapter 12; consolidates the debt capacity division into the debt
management division; amends legislative findings to acknowledge the
importance of monitoring the debt of the state and its spending
units; continues the division of debt management as the central
information source for debt issued by the state and its spending
units; expands the definition of debt to include debentures, lease
purchases, mortgages, securitizations and other types of
obligations with specific amounts owed and payable on demand or on
determinable dates; defines debt impact report, moral obligation
bond, net tax supported debt and tax supported debt; amends
definition of spending unit; eliminates requirement for developing
a long-term debt plan; clarifies the division is responsible for
continuously evaluating debt and debt service requirements and
reviewing all proposed debt offerings of the state and its spending
units; clarifies the division is to issue a debt impact report if
requested by the Governor, Senate President or House of Delegates
Speaker and that the report shall not restrict the Governor,
Legislature or spending unit; requires the division to monitor
continuing disclosure requirements and post-issuance compliance
issues; eliminates requirement that the debt management division
provide staff for the debt capacity division; clarifies the
reporting requirements of the division and the spending units;
requires division to prepare and issue the debt capacity report;
and clarifies the Treasurer promulgates the rules. As to the Board
of Treasury Investments, the bill proposes to alter the bond
required for the board from $50 million to at least $10 million, as
set by the board; update language pertaining to rating agencies to
nationally recognized statistical rating organizations; authorize
investment in investment grade corporate debt, in money market and
in other fixed income funds; authorize the board to make loans
specified by the Legislature and to offer an equipment and software
financing program for state government entities; remove requirement that direct or guaranteed obligations of the United States
constitute at least fifteen percent of the consolidated fund; and
permit securities falling out of compliance with the Code to not
have to be sold if the investment manager and investment consultant
recommend retention. The bill authorizes moneys in the College
Prepaid Tuition and Savings Program Administrative Account be used
to provide matching grants and scholarships for the SMART529
program and clarifies the value of a prepaid tuition or savings
plan account is not considered for purposes of determining
eligibility for income-based governmental financial assistance
unless required by federal law. In accordance with the audit
conducted by the Treasurer, the bill satisfies amounts due to and
from policemen's and firemen's pension and relief funds and the
Teachers Retirement System.
In addition, the bill authorizes
expenses related to operations and programs of the office of the
Treasurer from the Unclaimed Property Fund, authorizes transfer of
moneys from the Unclaimed Property Trust Fund for payment to
policemen's and firemen's pension and relief funds, repeals
§48-2-604 which duplicates the fee for marriage licenses, and makes
various technical clean up revisions.
§5-10B-14 is new; therefore, it has been completely
underscored.
§12-2-2 has been completely rewritten; therefore it has been
completely underscored.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.