H. B. 2467


(By Delegates Walters, Kiss, Petersen, Gallagher,
Rutledge, Michael and Facemyer)

[Introduced March 4, 1993; referred to the
Committee on Finance.]



A BILL to amend chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article twenty- five-b, relating to authorizing nonprofit corporations to provide federal insurance subsidy for children's health funds; providing definitions; composition and powers of corporation; administration; civil penalties; voucher applications; duties and responsibilities of corporation; training sessions; annual reports and audits; tax exempt status; conflict of interest of members; and limiting personal liability of members of corporation.

 Be it enacted by the Legislature of West Virginia:
That chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article twenty-five-b, to read as follows:
ARTICLE 25B. FEDERAL INSURANCE SUBSIDY FOR CHILDREN'S HEALTH.

§33-25B-1. Definitions.

The following words, as used in this article, have the meanings set forth below, unless the context clearly requires otherwise:
(a) "Applicant aide" means an individual licensed by the state to care for the physical or emotional needs of children or an employee authorized by his employer where the employer is an institution licensed by the state to care for the physical or emotional needs of children and who has received an applicant aide certificate. Individuals include, but are not limited to, licensed teachers, child care workers, social workers, guidance counselors, psychologists, nurses and physicians. Licensed institutions include, but are not limited to, hospitals, schools, local human services offices, child care centers and medical clinics;
(b) "Approved providers" means any accident and health insurer licensed by the state or any health services organization licensed by the state or any other entity approved by the insurance commissioner for provision of health care coverage for children;
(c) "Corporation" means "The West Virginia Federal Insurance Subsidy for Children's Health Corporation" created by this article;
(d) "Board" means the board of directors of the corporation; and
(e) "Director" means a member of the board.
§33-25B-2. Purpose.

The purpose of this article is to:
(a) Assist, promote, encourage, develop and advance the knowledge of lower to moderate income families with dependent children of the earned income credit available for money spent on health insurance;
(b) Cooperate and act in conjunction with other organizations, public and private, the objects of which are the promotion and education of lower to moderate income families with dependent children of the earned income credit available for money spent on health insurance;
(c) Establish a system of qualified applicant aides who shall be trained by the department of health and human services and, who, for a modest dollar incentive, will on a volunteer basis make knowledge of this program available to the targeted families; and
(d) Provide counseling and assistance to families and aid them in filing for the insurance voucher, selecting an appropriate health insurance policy and completing the required federal income tax return.
§33-25B-4. General powers.

A nonprofit corporation organized for the purposes set out in this article possesses all the powers necessary and convenient to accomplish the purposes of this article, including, without any intended limitation upon the other powers hereby conferred, the following:
(a) To provide counseling services to West Virginia families on the purchase of federally subsidized health insurance;
(b) To accept gifts, grants, or loans from and enter into contracts or other transactions with any federal or state agency, any municipality, any private organization or any other source;
(c) To adopt, and from time to time, amend or rescind such bylaws, rules and regulations as may be necessary or convenient for the performance of its functions, powers and duties under this article;
(d) To sue and be sued;
(e) To purchase, receive, take by grant, gift, devise, bequest or otherwise, lease, or otherwise acquire, own, hold, improve, employ, use and otherwise deal in and with, real or personal property, or any interest therein, wherever situated;
(f) To sell, convey, lease, exchange, transfer or otherwise dispose of, all or any of its property or any interest therein, wherever situated;
(g) To adopt and use a seal; and
(h) To exercise all other powers and functions necessary or appropriate to carry out the duties and purposes set forth in this article.
§33-25B-5. Nonprofit corporation organized for insurance subsidy for children's health fund.

Any nonprofit corporation organized to further the purposes of this article may create a special fund, to be known as the "Federal Insurance Subsidy for Children's Health Fund." The fundis to be administered by the nonprofit corporation and may use revenue appropriated by the Legislature and received from other sources. The corporation shall report all income and disbursements to the tax commissioner, who is authorized to promulgate rules prescribing the manner in which a nonprofit corporation is to report under the provisions of this article and shall prescribe all necessary forms.
§33-25B-6. Voucher applications; contents.

A guardian or applicant aide may file with a nonprofit corporation, organized for the purposes of this article, a sworn voucher application signed by the guardian asserting:
(a) That the guardian meets the requirements for the federal earned income credit for child health insurance for the current or next calendar year;
(b) The good-faith estimate value of the health insurance earned income credit for the year in question;
(c) That the guardian will use the voucher to purchase health insurance covering dependent children;
(d) That the guardian will prepare a federal tax return for the year in question; and
(e) That the guardian agrees to assign the value of any federal tax refund, in the amount of the voucher issued by the corporation to the corporation when filing the guardian's federal tax return.
§33-25B-7. Duties and responsibilities of corporation; training sessions.

Upon presentation of a valid voucher application, the corporation shall issue from the fund a voucher to the guardian or applicant aide, made out in behalf of the guardian and redeemable for the face amount by any approved provider. The corporation shall retain in the fund all moneys received from refundable tax credits of guardians. These moneys shall be used to extend additional vouchers. The corporation may solicit and receive donations of moneys for the fund. Any donation shall be considered tax deductible charitable contributions for state tax purposes.
The department of health and human resources shall design and provide the vouchers to the corporation.
No later than sixty days after the effective date of this article, the corporation shall have prepared appropriate documents for use by guardians, applicant aides and for vouchers.
No later than ninety days after the effective date of this article, the corporation shall begin regional training and information sessions in all regions of the state to be conducted by the department of health and human resources. The purpose of these sessions is to train guardians and potential applicant aides in the the necessary rules to qualify under the federal guidelines for earned income credits and the requirements of this section. These sessions shall be open to the public and potential applicant aides, at a charge not to exceed five dollars. Sessions shall be available in at least the first and fourth quarter of the calendar year in all regions of the state. The corporation may waive the fee for guardians.
Potential applicant aides shall be tested by the corporation under the supervision of the department of health and human resources. Potential applicant aides who successfully complete the test shall be awarded a certificate entitling them to work as an applicant aide.
Applicant aides may receive a commission not to exceed five percent of the voucher, from an approved provider. Any commission shall not be payable until the fund is fully reimbursed for the voucher. Applicant aides may not solicit or accept any compensation from guardians or potential guardians.
Assisting individuals in the preparation of applications to the fund and selection of the providers does not constitute the sale of insurance and shall not be subject to regulation by the insurance commissioner.
Insurance coverage bought by the guardian for these children will be exempt from mandatory state benefits and not subject to state premium taxes.
Applicant aides who engage in deceptive practices or who aid or encourage deception or fraud may, upon hearing by the corporation, have their certificate as an applicant aide revoked for a period of not less than five years. This action shall be in addition to any other penalties available at law.
The corporation may pursue triple damages in civil court for any losses to the fund attributable to actions or the conduct of applicant aides or guardians.
§33-25B-8. Annual report and audits.

On the first day of January of each year the corporation shall report on its operations for the preceding fiscal year to the governor and the state Legislature. The report shall include a summary of the activities of the corporation and a complete operating and financial statement. A West Virginia federal insurance subsidy for children's health corporation shall cause an annual audit to be made by a resident certified public accountant or a registered public accountant of its books, accounts and records, with respect to its receipts, disbursements and all other matters related to its financial operations. The person performing such audit shall also furnish copies of the audit report to the speaker of the House of Delegates, the president of the Senate and the majority and minority leaders of both houses, and the legislative auditor.
§33-25B-9. Powers to be interpreted broadly.

The powers enumerated in this article shall be interpreted broadly to effectuate the purposes thereof and shall not be construed as a limitation of powers.
§33-25B-10. Tax exemption.

The corporation organized for the purposes of this article is exempt from all franchise, corporate, business and taxes of every nature levied by the state.
§33-25B-11. Conflict of interests.

(a) No member of the corporation or officer, agent or employee thereof may, in his or her own name or in the name of anominee, hold an ownership interest of more than seven and one- half percent in any association, trust, corporation, partnership or other entity which is, in its own name or in the name of a nominee, a party to a contract or agreement upon which the member or officer, agent or employee may be called upon to act or vote.
(b) With respect to any direct or any indirect interest, other than an interest prohibited in subsection (a) of this section, in a contract or agreement upon which the member or officer, agent or employee may be called upon to act or vote, a member of the corporation or officer, agent or employee thereof shall disclose the same to the secretary of the corporation prior to the taking of final action by the corporation concerning such contract or agreement and shall so disclose the nature and extent of such interest and his or her acquisition thereof, which disclosure shall be publicly acknowledged by the corporation and entered upon the minutes of the corporation. If a member of the corporation or officer, agent or employee thereof holds such an interest, he or she shall refrain from any further official involvement in regard to such contract of agreement, from voting on any matter pertaining to such contract or agreement, and from communicating with other members of the corporation or its officers, agents and employees concerning said contract or agreement. Notwithstanding any other provision of law, any contract or agreement entered into in conformity with this subsection shall not be void or invalid by reason of the interest described in this subsection, nor shall any person so disclosingthe interest and refraining from further official involvement as provided in this subsection be guilty of an offense, be removed from office or be subject to any other penalty on account of such interest.
(c) Any contract or agreement made in violation of subsection (a) or (b) of this section is void and does not give rise to an action against the corporation.
§33-25B-12. Personal liability of members or persons acting on behalf of the corporation.

(a) No director or any person acting on behalf of the corporation executing any contracts, commitments or agreements issued pursuant to this article may be liable personally upon the contracts, commitments or agreements or be subject to any personal liability or accountability by reason thereof.
(b) No director or any person acting on behalf of the corporation may be personally liable for damage or injury resulting from the performance of his duties hereunder.



NOTE: The purpose of this bill is to authorize the creation of nonprofit corporations to provide a Federal Insurance Subsidy for Children's Health to help low income families buy federally subsidized health insurance. The bill will seek out qualified applicant aides, who will be trained by the Department of Health and Human Resources, to advise the targeted families of the insurance available, assist in filing for the insurance voucher and completing required federal income tax forms or returns.

Article 25 is new; therefore, strike-throughs and underscoring have been omitted.