
H. B. 4603



(By Mr. Speaker, Mr. Kiss, and Delegate Trump)


[By Request of the Executive]



[Introduced February 22, 2000; referred to the



Committee on Government Organization then Finance.]
A BILL to amend and reenact section three, article one, chapter
five-f of the code of West Virginia, one thousand nine hundred
thirty-one, as amended relating to compensation of cabinet
secretaries and certain state officials; establishing an
executive compensation commission and setting forth the duties
and responsibilities of the commission; establishing executive
compensation tiers and range of compensation levels within
such tiers; providing that the governor may establish the
compensation level of cabinet secretaries and certain state
officials within such tiers; and limiting the number of times
the governor may set the compensation level for a cabinet
secretary or a state official.
Be it enacted by the Legislature of West Virginia:

That section three, article one, chapter five-f of the code of
West Virginia, one thousand nine hundred thirty-one, as amended, be
amended and reenacted to read as follows:
ARTICLE 1. GENERAL PROVISIONS.
§5F-1-3. Oath, bond; compensation of persons appointed as
secretary; executive compensation commission;
executive compensation tiers; governor's authority to
set compensation within legislative tier.
(a) Each person appointed to serve as a secretary shall take
the oath or affirmation prescribed by section five, article four of
the constitution, and such oath shall be certified by the person
who administers the same and filed in the office of the secretary
of state.
(b) Each person so appointed as secretary shall give bond in
the penalty of twenty-five thousand dollars conditioned for the
faithful performance of the duties of the office, which bond shall
be approved by the attorney general as to form and by the governor
as to sufficiency. The surety of such bond may be a bonding or
surety company, in which case the premium shall be paid out of the
appropriation made for the administration of the department.
(c) Each secretary shall receive a salary of seventy thousand
dollars per year. Beginning the first day of July, one thousand
nine hundred ninety-nine, the secretary of the department of health
and human resources shall receive an annual salary of eighty-five thousand dollars.

There is hereby created an executive compensation commission
composed of three members, one of whom shall be the secretary of
administration, one of whom shall be appointed by the governor from
the names of two or more nominees submitted by the president of
the Senate, and one of whom shall be appointed by the governor from
the names of two or more nominees submitted by the speaker of the
House of Delegates. The names of such nominees shall be submitted
to the governor by not later than the first day of June in the year
two thousand, and the appointment of such members shall be made by
the governor by not later than the first day of July in the year
two thousand. The members appointed by the governor shall have had
significant business management experience at the time of their
appointment and shall serve without compensation other than
reimbursement for their reasonable expenses necessarily incurred in
the performance of their commission duties. Beginning with the
regular session of the Legislature, two thousand four, and every
four years thereafter, the commission shall review the compensation
tiers established in this section for cabinet secretaries and
listed appointed officers. Following this review, but not later
than the twenty-first day of such regular session, the commission
shall submit an executive compensation report to the Legislature to
include specific recommendations for adjusting the compensation set
out in such tiers. The recommendation may be in the form of a bill
to be introduced in each house to amend this section to incorporate
the recommended adjustments.
(d) The salary and expenses necessary for each secretary and
all expenditures for personal services for the office of secretary
shall be paid from and within existing appropriations made to the
agencies and boards transferred to the department headed by the
secretary, and revised expenditure schedules shall be submitted to
the commissioner of finance and administration and the legislative
auditor stating the amount and source of funds to be expended:
Provided, That for fiscal years beginning the first day of July,
one thousand nine hundred eighty-nine, such amounts shall follow
the procedures described in chapter five-a of this code.

The governor may establish the salary within the range of the
compensation levels within each tier for each secretary and
appointed officer. The governor may not establish a salary for a
secretary or an appointed officer above or below the applicable
tier.
(e) Effective the first day of July, two thousand, the
governor may establish the salary of each cabinet secretary and
listed appointed officer within the range of the compensation
levels within each tier as follows:
(1)
TIER 1
CABINET SECRETARY
Each secretary shall continue to be appointed in the manner
prescribed in this code. Effective the first day of July, two
thousand, notwithstanding any other provision of this code, each
secretary shall be paid an annual salary within the range of the
compensation levels set out below as designated by the governor.
COMMISSIONER, DIVISION OF HIGHWAYS
The commissioner of the division of highways shall continue to
be appointed in the manner prescribed in this code. Effective the
first day of July, two thousand, notwithstanding any other
provision of this code, the administrator of the division of
highways shall be paid an annual salary within the range of the
compensation levels set out below as designated by the governor.
CABINET OFFICERS



Each cabinet officer shall continue to be appointed in the
manner prescribed in this code. Effective the first day of July,
two thousand, notwithstanding any other provision of this code, the
listed cabinet officers shall be paid an annual salary within the
range of the compensation levels set out below as designated by the
governor. These cabinet officers are: Commissioner, bureau of
employment programs; director, division of environmental;
protection; commissioner, bureau of senior services; director of
tourism; and commissioner, division of tax.



Compensation levels:



$85,000.00




$105,000.00



(2)
TIER 2
APPOINTED OFFICERS
Each of the following appointive state officers named in this
subdivision shall be appointed by the governor, by and with the
advice and consent of the Senate. Each officer shall serve at the
will and pleasure of the governor for the term for which the
governor was elected and until such officer's successor has been
appointed and qualified. Each appointive state officer shall be
subject to the existing qualifications for holding the respective
office and each shall have and is hereby granted all of the powers
and authority and shall perform all of the functions and services
heretofore vested in and performed by virtue of existing law
respecting each such office. Effective the first day of July, two
thousand, notwithstanding any other provision of this code, each
appointive state officer listed in this subdivision shall be paid
an annual salary within the range of the compensation levels set
out below as designated by the governor. The state appointive officers within this compensation tier are: Administrator,
division of health; commissioner, division of corrections;
director, division of natural resources; superintendent, state
police; administrator, lottery division; director, public employees
insurance agency; administrator, alcohol beverage control
commission; commissioner, division of motor vehicles; director,
division of personnel; adjutant general; chairman, health care
authority; and members, health care authority.





OTHER APPOINTED OFFICERS
Each of the following state officers shall continue to be
appointed in the manner prescribed in this code. Effective the
first day of July, two thousand, notwithstanding any other
provision of this code, each appointive state officer listed in
this subdivision shall be paid an annual salary within the range
of the compensation levels set out below as designated by the
governor. The state officers within this compensation tier are:
Director, division of rehabilitation services; executive director,
educational broadcasting authority; executive secretary, library
commission; executive director, regional jail and correctional
facility authority; chairman and members of the public service
commission; and director of emergency services.
Compensation levels:
$65,000.00









$85,000.00
(3)








TIER 3
APPOINTED OFFICERS
Each of the following state officers shall continue to be
appointed by the governor, by and with the advice and consent of
the Senate. Each officer shall serve at the will and pleasure of
the governor for the term for which the governor was elected and
until such officer's successor has been appointed and qualified.
Each appointive state officer shall be subject to the existing
qualifications for holding the respective office and each shall
have and is hereby granted all of the powers and authority and shall perform all of the functions and services heretofore vested
in and performed by virtue of existing law respecting each such
office. Effective the first day of July, two thousand,
notwithstanding any other provision of this code, each appointive
officer listed in this subdivision shall be paid an annual salary
within the range of the compensation levels set out below as
designated by the governor. The state appointive officers within
this compensation tier are: Administrator, division of human
services; executive director, human rights commission; director,
division of veterans affairs; director, office of miner's health
safety and training; commissioner, division of banking;
commissioner, division of insurance; commissioner, division of
culture and history; commissioner, division of labor; director,
prosecuting attorneys institute; and director, board of risk and
insurance management.





OTHER APPOINTED OFFICERS
Each of the following state officers shall continue to be
appointed in the manner prescribed in this code. Effective the
first day of July, two thousand, notwithstanding any other
provision of this code, each appointive state officer listed in
this subdivision shall be paid an annual salary within the range
of the compensation levels set out below as designated by the
governor. The state officers within this compensation tier are:
Commissioner, oil and gas conservation commission; director,
geological and economic survey; executive director, water
development authority; executive director, public defender
services; director, state rail authority; and chairman and members
of the parole board.
Compensation levels:
$45,000.00










$65,000.00
(4)
TIER 4
Each of the following appointive state officers shall be
appointed by the governor, by and with the advice and consent of
the Senate. Each officer shall serve at the will and pleasure of
the governor for the term for which the governor was elected and
until such officer's successor has been appointed and qualified.
Each appointive state officer shall be subject to the existing qualifications for holding the respective office and each shall
have and is hereby granted all of the powers and authority and
shall perform all of the functions and services heretofore vested
in and performed by virtue of existing law respecting each such
office. Effective the first day of July, two thousand,
notwithstanding any other provision of this code, each appointive
state officer listed in this subdivision shall be paid an annual
salary within the range of the compensation levels set out below as
designated by the governor. The state appointive officers within
this compensation tier are: Members, employment security review
board; members, workers' compensation appeal board; chairman,
racing commission; executive secretary, women's commission; and
director, hospital finance authority.
Compensation levels:
$10,000.00












$45,000.00
(f) Except when filling a vacancy, the governor may not set
the compensation level of any one secretary or state official
listed in this section more than once in any fiscal year.



(g) Until the first day of July, two thousand, the salaries
of the state officers listed in section two-a, article seven,
chapter six of this code shall be governed by the provisions of
that section. After the first day of July, two thousand, the
salaries of all such officers shall be governed by the provisions
of this section.



Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
FINANCE COMMITTEE AMENDMENT





On page one, following the enacting clause, by striking out
the remainder of the bill and inserting in lieu thereof the
following:










That article one, chapter five-f of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
three-a, to read as follows:
ARTICLE 1. GENERAL PROVISIONS.
§5F-1-3a. Executive compensation commission.










There is hereby created an executive compensation commission
composed of three members, one of whom shall be the secretary of
administration, one of whom shall be appointed by the governor from the names of two or more nominees submitted by the president
of the Senate, and one of whom shall be appointed by the governor
from the names of two or more nominees submitted by the speaker
of the House of Delegates. The names of such nominees shall be
submitted to the governor by not later than the first day of June
in the year two thousand, and the appointment of such members
shall be made by the governor by not later than the first day of
July in the year two thousand. The members appointed by the
governor shall have had significant business management
experience at the time of their appointment and shall serve
without compensation other than reimbursement for their
reasonable expenses necessarily incurred in the performance of
their commission duties. For the regular session of the
Legislature, two thousand one, and every four years thereafter,
the commission shall review the compensation for cabinet
secretaries and other appointed officers of this state, including
but not limited to the following: commissioner, division of
highways; commissioner, bureau of employment programs; director,
division of environmental protection; commissioner, bureau of
senior services; director of tourism; commissioner, division of
tax; administrator, division of health; commissioner, division
of corrections; director, division of natural resources;
superintendent, state police; administrator, lottery division;
director, public employees insurance agency; administrator,
alcohol beverage control commission; commissioner, division of
motor vehicles; director, division of personnel; adjutant
general; chairman, health care authority; members, health care
authority; director, division of rehabilitation services;
executive director, educational broadcasting authority; executive
secretary, library commission; executive director, regional jail
and correctional facility authority; chairman and members of the
public service commission; director of emergency services;
administrator, division of human services; executive director,
human rights commission; director, division of veterans affairs;
director, office of miner's health safety and training;
commissioner, division of banking; commissioner, division of
insurance; commissioner, division of culture and history;
commissioner, division of labor; director, prosecuting attorneys
institute; director, board of risk and insurance management;
commissioner, oil and gas conservation commission; director,
geological and economic survey; executive director, water
development authority; executive director, public defender
services; director, state rail authority; and chairman and
members of the parole board; members, employment security review
board; members, workers' compensation appeal board; chairman,
racing commission; executive director, women's commission; and
director, hospital finance authority.





Following this review, but not later than the twenty-first
day of such regular session, the commission shall submit an
executive compensation report to the Legislature to include specific recommendations for adjusting the compensation for the
officers described in this section. The recommendation may be in
the form of a bill to be introduced in each house to amend this
section to incorporate the recommended adjustments.
FINANCE COMMITTEE TITLE AMENDMENT





H. B. 4603 -- "A BILL to amend article one, chapter five-f
of the code of West Virginia, one thousand nine hundred thirty-
one, as amended,
by adding thereto a new section, designated
section three-a,
relating to establishing an executive
compensation commission and setting forth the duties and
responsibilities of the commission."