Senate Bill No. 409

(By Senators Chafin, Redd and Fanning)

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[Introduced January 25, 2002; referred to the Committee on Finance.]

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A BILL to amend and reenact sections eight and twelve, article nine, chapter six of the code of West Virginia, one thousand nine hundred thirty-one, as amended, all relating to providing for the chief inspector, pursuant to his or her statutory supervision of local government offices in the state, to transfer an amount not to exceed four hundred thousand dollars to the special operating fund in the securities division of the auditor's office; establishing a date certain by which such amount or amounts must be transferred; and increasing the hours of credit for the intern program for students pursuing a graduate degree in business.

Be it enacted by the Legislature of West Virginia:
That sections eight and twelve, article nine, chapter six of the code of West Virginia, one thousand nine hundred thirty- one, as amended, be amended and reenacted, all to read as follows:
 ARTICLE 9. SUPERVISION OF LOCAL GOVERNMENT OFFICES.
§6-9-8. Payment of cost of services of chief inspector; revolving fund.

The cost of any service or act performed by the chief inspector under the provisions of this article as to any county or district office, officer or institution shall be paid by the county commission of the county; the cost thereof as to any board of education shall be paid by the board; the cost thereof as to any municipal corporation shall be paid by the authorities thereof: Provided, That in municipalities in which the total revenue from all taxes does not exceed the sum of two thousand dollars annually, the cost including the per diem and all actual costs and expenses of the services shall not exceed the sum of sixty dollars. The cost of this service shall be the actual cost and expense of the service performed, including transportation, hotel, meals, materials, per diem compensation of deputies, assistants, clerical help and the other costs as may be necessary to enable them to perform the services required, but the costs shall not exceed the sum of two thousand dollars for services rendered to a Class III or a Class IV municipality: Provided, however, That the chief inspector may charge up to an additional two thousand dollars for costs incurred for each service or act performed for a utility or park system owned by a Class III or Class IV municipality: Provided further, That if a municipality is required to undergo a single audit by the federal agency or agencies making a grant, the foregoing cost limitations do not apply: And provided further, That the chief inspector shall provide a written quote for all costs in advance for all services required by this article. The chief inspector shall render to the agency liable for the cost a statement thereof as soon after the same was incurred as practicable and it shall be the duty of the agency to allow the same and cause it to be paid promptly in the manner that other claims and accounts are allowed and paid and the total amount shall constitute a debt against the local agency due the state. Whenever there is in the state treasury a sum of money due any county commission, board of education or municipality from any source, upon the application of the chief inspector, the same shall be at once applied on the debt aforesaid against the county commission, board of education or municipality and the fact of the application of the fund shall be reported by the auditor to the county commission, board of education or municipality, which report shall be a receipt for the amount therein named. All money received by the chief inspector from this source shall be paid into the state treasury, shall be deposited to the credit of an account to be known as chief inspector's fund and shall be expended only for the purpose of covering the cost of the services, unless otherwise directed by the Legislature. The cost of any examination, service or act by the chief inspector made necessary, or the part thereof as was made necessary, by the willful fault of any officer or employee, may be recovered by the chief inspector from that person, on motion, on ten days' notice in any court having jurisdiction.
For the purpose of permitting payments to be made at definite periods to deputy inspectors and assistants for per diem compensation and expenses, there is hereby created a revolving fund for the chief inspector's office. The fund shall be accumulated and administered as follows:
(1) There shall be appropriated from the state fund general revenue the sum of twenty-five thousand dollars to be transferred to this fund to create a revolving fund which, together with other payments into this fund as provided in this article, shall constitute a fund to defray the cost of this service.
(2) Payments received for the cost of services of the chief inspector's office and interest earned on the invested balance of the chief inspector's revolving fund shall be deposited into this revolving fund, which shall be known as the chief inspector's fund.
(3) Any appropriations made to this fund may not be considered to have expired at the end of any fiscal period.
(4) The chief inspector may transfer an amount not to exceed four hundred thousand dollars from the chief inspector's fund to the special operating fund created in article four, chapter thirty-two of this code: Provided, That any such transfers be completed prior to the first day of July, two thousand three.
§6-9-12. Business intern program.
Beginning the first day of July, two thousand two, the chief inspector shall develop in conjunction with the graduate business programs at West Virginia university and Marshall university an intern program which utilizes students pursuing a graduate degree in business, economics or accounting to assist in the auditing function of the office of the chief inspector. This program shall provide that those students who satisfactorily complete the program shall receive up to two three hours credit toward their degree.

(NOTE: The purpose of this bill is to authorize the chief inspector, pursuant to his or her supervision and auditing of local government offices in the state, to transfer up to $400,000 into the special operating fund in the auditor's securities division until January 1, 2003. The bill also increases from two to three credit hours for the intern program for business graduates.)