
H. B. 4136
(By Delegates Douglas, Kuhn, Butcher, Flanigan, Manchin, Border
and Walters)
[Originating in the Committee on Government Organization]
[January 23, 2002]
A BILL to amend and reenact sections three and twenty-seven,
article sixteen, chapter five of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, relating to
continuation of the public employees insurance agency;
deleting outdated language concerning advisory board; deleting
severability clause.
Be it enacted by the Legislature of West Virginia:

That sections three and twenty-seven, 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.
§5-16-3.
Composition of public employees insurance agency
continued; appointment, qualification, compensation and duties
of director of agency; employees; civil service coverage; director vested after specified date with powers of public
employees insurance board. expiration of agency.

(a) The public employees insurance agency is continued, and
consists of the director, the finance board, the advisory board and
any employees who may be authorized by law. The director shall be
appointed by the governor, with the advice and consent of the
Senate. He or she shall serve at the will and pleasure of the
governor, unless earlier removed from office for cause as provided
by law. The director shall have at least three years experience in
health insurance administration prior to appointment as director.
The director shall receive actual expenses incurred in the
performance of official business. The director shall employ such
administrative, technical and clerical employees that are required
for the proper administration of the insurance programs provided
for in this article. The director shall perform the duties that
are required of him or her under the provisions of this article and
is the chief administrative officer of the public employees
insurance agency. The director may employ a deputy director.

(b) All positions in the agency, except for the director, his
or her personal secretary, the deputy director and the chief
financial officer shall be included in the classified service of
the civil service system pursuant to article six, chapter
twenty-nine of this code. Any person required to be included in
the classified service by the provisions of this subsection who was employed in any of the positions included in this subsection on or
after the effective date of this article shall not be required to
take and pass qualifying or competitive examinations upon or as a
condition to being added to the classified service: Provided, That
no person required to be included in the classified service by the
provisions of this subsection who was employed in any of the
positions included in this subsection as of the effective date of
this section shall be thereafter severed, removed or terminated in
his or her employment prior to his or her entry into the classified
service except for cause as if the person had been in the
classified service when severed, removed or terminated.

(c) The director is responsible for the administration and
management of the public employees insurance agency as provided for
in this article and in connection with his or her responsibility
may make all rules necessary to effectuate the provisions of this
article. Nothing in section four or five of this article limits
the director's ability to manage on a day-to-day basis the group
insurance plans required or authorized by this article, including,
but not limited to, administrative contracting, studies, analyses
and audits, eligibility determinations, utilization management
provisions and incentives, provider negotiations, provider
contracting and payment, designation of covered and noncovered
services, offering of additional coverage options or cost
containment incentives, pursuit of coordination of benefits and subrogation, or any other actions which would serve to implement
the plan or plans designed by the finance board.


(d) The public employees insurance agency shall terminate in
the manner provided in article ten, chapter four of this code, on
the first day of July, two thousand one, unless extended by
legislation enacted before the termination date. Provided, That
the public employees insurance agency advisory board, created in
section six of this article, shall terminate in the manner provided
in article ten, chapter four of this code on the first day of July,
one thousand nine hundred ninety-six.
§5-16-27. Severability. Continuation.


If any provision of this article or the application thereof to
any person or circumstance is held unconstitutional or invalid,
such unconstitutionality or invalidity shall not affect other
provisions or applications of the article, and to this end the
provisions of this article are declared to be severable.
The public
employees insurance agency shall continue to exist, pursuant to
article ten, chapter four of this code, until the first day of
July, two thousand three, unless sooner terminated, continued or
reestablished pursuant to the provisions of that article.

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