H. B.4694
(By Delegates Michael, Doyle, Campbell, Border, Leach, Kelley
and Laird)
(Originating in the House Committee on
Finance)
[March 2, 1998]
A BILL to amend and reenact section eighteen, article sixteen,
chapter five of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to public employees
insurance program funds and authorizing receipt and
retainment of interest on those funds.
Be it enacted by the Legislature of West Virginia:
That section eighteen, article sixteen, chapter five of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 16. WEST VIRGINIA PUBLIC EMPLOYEES INSURANCE ACT.
§5-16-18. Payment of costs by employer; schedule of insurance;
special funds created; duties of treasurer with respect thereto.
All employers operating from state general revenue or
special revenue funds or federal funds or any combination thereof
shall budget the cost of insurance coverage provided by the
public employees insurance agency to current and retired
employees of the employer as a separate line item, titled "PEIA",
in its respective annual budget and are responsible for the transfer of funds to the director for the cost of insurance for
employees covered by the plan. Each spending unit shall pay to
the director its proportionate share from each source of funds.
Any agency wishing to charge general revenue funds for insurance
benefits for retirees under section thirteen of this article must
provide documentation to the director that the benefits cannot be
paid for by any special revenue account or that the retiring
employee has been paid solely with general revenue funds for
twelve months prior to retirement.
If the general revenue appropriation for any employer,
excluding county boards of education beginning the first day of
July, one thousand nine hundred ninety-five, and thereafter, is
insufficient to cover the cost of insurance coverage for the
employer's participating employees, retired employees and
surviving dependents, the employer shall pay the remainder of the
cost from its "personal services" or "unclassified" line items.
Beginning the first day of July, one thousand nine hundred
ninety-five, and thereafter, the amount of such payments for
county boards of education shall be determined by the method set
forth in section twenty-four, article nine-a, chapter eighteen of
this code: Provided, That local excess levy funds shall be used
only for the purposes for which they were raised: Provided,
however, That after approval of its annual financial plan, but in
no event later than the thirty-first day of December of each
year, the finance board shall notify the Legislature and county
boards of education of the maximum amount of employer premiums
that the county boards of education will be required to pay for covered employees during the following fiscal year: Provided
further, That the amount shall not exceed five million five
hundred thousand dollars during fiscal year one thousand nine
hundred ninety-four: And provided further, That the amount shall
not exceed four million dollars during fiscal year one thousand
nine hundred ninety-five.
All other employers not operating from the state general
revenue fund shall pay to the director their share of premium
costs from their respective budgets. The finance board shall
establish the employers' share of premium costs to reflect and
pay the actual costs of the coverage including incurred but not
reported claims.
The contribution of the other employers (namely: A county,
city or town) in the state; any separate corporation or
instrumentality established by one or more counties, cities or
towns, as permitted by law; any corporation or instrumentality
supported in most part by counties, cities or towns; any public
corporation charged by law with the performance of a governmental
function and whose jurisdiction is coextensive with one or more
counties, cities or towns; any comprehensive community mental
health center or comprehensive mental retardation facility
established, operated or licensed by the secretary of health and
human resources pursuant to section one, article two-a, chapter
twenty-seven of this code, and which is supported in part by
state, county or municipal funds; and a combined city-county
health department created pursuant to article two, chapter
sixteen of this code for their employees shall be such percentage of the cost of the employees' insurance package as the employers
deem reasonable and proper under their own particular
circumstances.
The employee's proportionate share of the premium or cost
shall be withheld or deducted by the employer from the employee's
salary or wages as and when paid and the sums shall be forwarded
to the director with such supporting data as the director may
require.
All moneys received by the public employees insurance agency
shall be deposited in a special fund or funds as are necessary in
the state treasury and the treasurer of the state shall be
custodian of the fund or funds and shall administer the fund or
funds in accordance with the provisions of this article or as the
director may from time to time direct. The treasurer shall pay
all warrants issued by the state auditor against the fund or
funds as the director may direct in accordance with the
provisions of this article. All funds received by the agency,
including, but not limited to, basic insurance premiums,
administrative expenses and optional life insurance premiums,
shall be deposited in the West Virginia consolidated investment
pool with the West Virginia investment management board, with the
interest income a proper credit to all such funds.