ENGROSSED
H. B. 4702
(By Delegates Michael, Mezzatesta, Doyle, Clements, Leggett and
Frederick)
(Originating in the Committee on Finance)
[March 4, 1998]
A BILL to amend and reenact section three, article seventeen,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; to amend article six,
chapter twelve of said code by adding thereto a new section,
designated section twenty; and to amend and reenact sections
fourteen, fifteen and seventeen, article three, chapter
thirty-three of said code, all relating to requiring the
investment management board to invest certain funds
available for investment from the public employees
retirement system in the state's regional jail and
correctional facility system; providing for the disposition
of cigarette tax and certain designated insurance tax
revenues; and providing a reasonable return on the
investment by dedicating a portion of revenues generated
from the cigarette tax and certain designated insurance
taxes.
Be it enacted by the Legislature of West Virginia:
That section three, article seventeen, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; that article six, chapter
twelve of said code be amended by adding thereto a new section,
designated section twenty; and that sections fourteen, fifteen
and seventeen, article three, chapter thirty-three of said code
be amended and reenacted, all to read as follows:
CHAPTER 11. TAXATION.
ARTICLE 17. CIGARETTE TAX ACT.
§11-17-3. Levy of tax; ratio; proceeds.
For the purpose of providing revenue for the general revenue
fund of the state,
(a) An excise tax is hereby levied and imposed on sales of
cigarettes at the rate of seventeen cents on each twenty
cigarettes or in like ratio on any part thereof. Only one sale
of the same article shall be used in computing the amount of tax
due hereunder under this article.
(b) The taxes collected under the provisions of this article
shall be deposited
into the cigarette tax fund created in
subsection (c) of this section.
(c) There is created a special revenue fund in the state
treasury which is designated the "cigarette
tax fund." The fund
is not part of the general revenue fund of the state. It
consists of all amounts deposited in the fund pursuant to
subsection (b) of this section, any appropriations to the fund
and any gifts, grants or contributions received by the fund.
The treasurer shall administer the fund.
(d) The treasurer shall transfer from the cigarette
tax
fund
, on or before the tenth day of each month, in combination
with any tax funds transferred from the insurance tax fund as set
forth in section fourteen, article three, chapter
t
hirty-three of
this code, an amount equal to one twelfth of the projected annual
investment earnings to be paid and the capital invested to be
returned, as certified to the treasurer by the investment
management board,
into the regional jail and correctional
facility investment fund
created under the provisions of section
twenty, article six, chapter twelve of this code. In the event
there are insufficient funds available in any month to transfer
the amount required pursuant to this subsection to the regional
jail and correctional facility investment fund, the deficiency
shall be added to the amount transferred in the next succeeding
month in which revenues are available to transfer the deficiency.
Each month a lien on the revenues generated from the cigarette
tax, up to a maximum amount equal to one twelfth of the projected
annual principal and return is granted to the investment
management board to secure the investment made with the regional
jail and correctional facility authority pursuant to section
twenty, article six, chapter twelve of this code.
The treasurer
shall, no later than the last business day of each month,
transfer amounts the treasurer determines are not necessary for
making refunds under this article and to meet the requirements of
subsection (d), section twenty, article six, chapter twelve of
this code, to the credit of the general revenue fund.
(e) The amendments to this section made during the regular
session of the Legislature in the year one thousand nine hundred
ninety-eight, are effective on the first day of July, one
thousand nine hundred ninety-eight.
CHAPTER 12. PUBLIC MONEYS AND SECURITIES.
ARTICLE 6. WEST VIRGINIA INVESTMENT MANAGEMENT BOARD.
§12-6-20. Investment with regional jail and correctional
facility authority.
(a) The Legislature finds that orders of the supreme court
of appeals have created a liability on behalf of the state to
make significant improvements in the jail and correctional
facility system in the state. This has created a "previous
liability" as that term is used in section four, article X of the
constitution of West Virginia. Due to this liability and the
state's responsibility to individuals housed in jails and
correctional facilities throughout the state, the Legislature
finds it appropriate to invest funds that the state has an
ownership interest in to satisfy this liability. The Legislature
finds that since bonds are not being issued and since
improvements are required to be made to the jail and correctional
facility system to protect the rights of individuals previously
ordered confined to jail and correctional facilities, the
investment provided for under this section is not limited by
previous opinions of the supreme court of appeals relating to the
issuance of bonds by the school building authority. The
Legislature, in making this determination, finds it appropriate the funds should be assured of earning a return at a rate at
least as high as they would otherwise earn when invested by the
board. Consequently, the Legislature provides, in this section,
for the investment of certain funds in the regional jail and
correctional facilities of this state.
(b) The investment management board shall upon request of
the regional jail and correctional facility authority transfer
moneys as an investment, from funds available for investment from
the public employees retirement system, to the regional jail and
correctional facility authority. The amount transferred may not
exceed in the aggregate, one hundred fifty million dollars for
the purposes of financing construction of regional jails,
correctional facilities or building extensions or improvements to
regional jails and correctional facilities. Prior to the
expenditure of any of the funds, the regional jail and
correctional facility authority shall certify a list of projects
to the joint committee on government and finance that are to be
funded from the invested funds. This certified list may not
thereafter be altered or amended other than by legislative
enactment. Funds shall be invested with the regional jail and
correctional facility authority as requested by the regional jail
and correctional facility authority. The money invested shall
earn a return at a rate equal to the average monthly rate of
return earned by investments made by the board, plus one tenth of
one percent. The monthly rate of return shall be calculated
every month. The manner and timing of the investment shall be determined by the board. The total of the amounts invested may
not exceed a total of one hundred fifty million dollars during
fiscal year one thousand nine hundred ninety-eight, and fiscal
year one thousand nine hundred ninety-nine, cumulatively. The
authority to make the investment authorized by this section
expires on the thirtieth day of June, one thousand nine hundred
ninety-nine.
(c) There is created in the state treasury a regional jail
and correctional facility investment fund dedicated to the
payment of investment earnings and the return of capital invested
under this section. The treasurer shall administer the fund.
The fund is an interest-bearing account with interest earned
credited to and deposited back into the fund. The fund consists
of amounts required to be deposited by subsection (d), section
three, article seventeen, chapter eleven of this code and section
fourteen, article three, chapter thirty-three of this code.
(d) The treasurer shall, monthly, transfer amounts from the
regional jail and correctional facility investment fund to the
board that are sufficient to allow investment earnings to be paid
and the capital invested returned in substantially equal amounts
by the thirty-first day of August, two thousand twenty-three:
Provided, That the amount of investment earnings paid and the
capital invested returned during the fiscal year beginning the
first day of July, one thousand nine hundred ninety-eight, may
not exceed ten million dollars. Payment representing investment
earnings and the return of capital invested shall begin six months from the date the initial funds are invested, or by the
tenth day of January, one thousand nine hundred ninety-nine,
whichever is later.
(e) The board shall calculate the amount of the projected
annual investment earnings to be paid and the capital invested to
be returned and certify the amount to the treasurer on the first
day of December of each year, until all investment earnings are
paid and the total capital invested is returned.
(f) As soon as practical, but at least within thirty days of
the effective date of the amendments to this section made during
the regular session of the Legislature in the year one thousand
nine hundred ninety-eight, the executive director of the regional
jail and correctional facility authority shall initiate an action
in mandamus against the executive director of the board to
determine the constitutionality of the investment to be made
under the provisions of this subsection. The action shall be
brought pursuant to the original jurisdiction in mandamus in the
supreme court of appeals.
(g) The Legislature recognizes the fiduciary liability and
responsibility imposed on the board by this article and by
article six, chapter forty-four of this code. The board, its
trustees and employees, have no liability, either personally or
corporately with respect to the investment provided for in this
section and the loans made under section nineteen of this
article, if the investment and loans are made in accordance with
the respective provisions of this section and section nineteen of this article.
(h) The regional jail and correctional facility authority
shall expend the funds invested under the provisions of this
section to proceed with the projects identified pursuant to
subsection (b) of this section.
CHAPTER 33. INSURANCE.
ARTICLE 3. LICENSING, FEES AND TAXATION OF INSURERS.
§33-3-14. Annual financial statement and premium tax return;
remittance by insurer of premium tax, less
certain deductions.
(a) Every insurer transacting insurance in West Virginia
shall file with the commissioner, on or before the first day of
March, each year, a financial statement made under oath of its
president or secretary and on a form prescribed by the
commissioner. Such The insurer shall also, on or before the
first day of March of each year subject to the provisions of
section fourteen-c of this article, under the oath of its
president or secretary, make a premium tax return for the
previous calendar year, on a form prescribed by the commissioner
showing the gross amount of direct premiums, whether designated
as a premium or by some other name, collected and received by it
during the previous calendar year on policies covering risks
resident, located or to be performed in this state and compute
the amount of premium tax chargeable to it in accordance with the
provisions of this article, deducting the amount of quarterly
payments as required to be made pursuant to the provisions of section fourteen-c of this article, if any, less any adjustments
to the gross amount of such the direct premiums made during such
calendar year, if any, and transmit with such the return to the
commissioner a remittance in full for the tax due. The tax shall
be a is the sum equal to two percent of the gross direct
premiums, including dividends, by whatever name called, on
participating policies applied in reduction of premiums, less
premiums returned to policyholders because of cancellation of
policies, and shall also include includes any additional tax due
under section fourteen-a of this section. All taxes received by
the commissioner shall be paid by him into the state treasury for
the benefit of the state fund into the insurance tax fund created
in subsection (b) of this section.
(b) There is created a special revenue fund in the state
treasury which is designated the "insurance
tax fund." The fund
is not part of the general revenue fund of the state. It
consists of all amounts deposited in the fund pursuant to
subsection (a) of this section, sections fifteen and seventeen of
this article, any appropriations to the fund, all interest earned
from investment of the fund and any gifts, grants or
contributions received by the fund. The treasurer shall
administer the fund.
(c) The treasurer shall transfer from the insurance
tax fund
to the investment management board
, on or before the tenth day of
each month, in combination with any tax funds transferred from
the cigarette tax fund as set forth in section three, article seventeen, chapter eleven of this code,
an amount equal to one
twelfth of the projected annual investment earnings to be paid
and the capital invested to be returned, as certified to the
treasurer by the investment management board,
into the regional
jail and correctional facility investment fund
created under the
provisions of section twenty, article six, chapter twelve of this
code. In the event there are insufficient funds available in any
month to transfer the amount required pursuant to this subsection
to the regional jail and correctional facility investment fund,
the deficiency shall be added to the amount transferred in the
next succeeding month in which revenues are available to transfer
the deficiency. Each month a lien on the revenues generated from
the insurance
premium tax, the annuity tax and the minimum tax,
provided in this section and sections fifteen and seventeen of
this article, up to a maximum amount equal to one twelfth of the
projected annual principal and return is granted to the
investment management board to secure the investment made with
the regional jail and correctional facility authority pursuant to
section twenty, article six, chapter twelve of this code.
The
treasurer shall, no later than the last business day of each
month, transfer amounts the treasurer determines are not
necessary for making refunds under this article and to meet the
requirements of subsection (d), section twenty, article six,
chapter twelve of this code, to the credit of the general revenue
fund.
(d) The amendments to this section made during the regular
session of the Legislature in the year one thousand nine hundred ninety-eight, are effective on the first day of July, one
thousand nine hundred ninety-eight.
§33-3-15. Annuity tax.
(a) Every life insurer transacting insurance in West
Virginia shall make a return to the commissioner annually on a
form prescribed by the commissioner, on or before the first day
of March, under the oath of its president or secretary, of the
gross amount of annuity considerations collected and received by
it during the previous calendar year on business transacted in
this state and stating the amount of tax due hereunder, together
with payment in full for such the tax due. Such The tax shall be
a is the sum equal to one per centum of the gross amount of such
annuity considerations, less annuity considerations returned and
less termination allowances on group annuity contracts. All
such the taxes received by the commissioner shall be paid by him
into the state treasury for the benefit of the state fund into
the insurance tax fund created in subsection (b), section
fourteen of this article.
(b) The amendments to this section made during the regular
session of the Legislature in the year one thousand nine hundred
ninety-eight, are effective on the first day of July, one
thousand nine hundred ninety-eight.
§33-3-17. Minimum tax payable.
(a) The minimum amount of tax payable by any insurer
licensed in the state of West Virginia when considering the
aggregate payments due from all of the taxes imposed by this article shall be is two hundred dollars ($200.00) for any
calendar year. This minimum tax shall be payable annually on or
before the first day of March and shall be calculated on a form
prescribed by the commissioner. Except as otherwise provided in
this section, all provisions of this article relating to the
levy, imposition and collection of the regular premium tax shall
be are applicable to the levy, imposition and collection of this
minimum tax. All moneys received by the commissioner from this
minimum tax shall be paid into the state treasury for the benefit
of the state fund insurance tax fund created in subsection (b),
section fourteen of this article.
(b) The amendments to this section made during the regular
session of the Legislature in the year one thousand nine hundred
ninety-eight, are effective on the first day of July, one
thousand nine hundred ninety-eight.
NOTE: The purpose of this bill is to provide for investing
$150,000,000.00 from the Public Employees Retirement System in
the state's regional jail and correctional facility system. The
bill dedicates proceeds from the
cigarette
tax and certain
designated insurance taxes to ensure a return on the investment.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
§12-6-20 is new; therefore, strike-throughs and underscoring
have been omitted.