WEST VIRGINIA LEGISLATURE

SENATE JOURNAL

SEVENTY-SIXTH LEGISLATURE

REGULAR SESSION, 2004

FIFTY-NINTH DAY

____________

Charleston, W. Va., Friday, March 12, 2004

     The Senate met at 11 a.m.
(Senator Tomblin, Mr. President, in the Chair.)

     Prayer was offered by the Reverend Dr. Bill Ellis, Minister at Large, Teays Valley Church of God, Scott Depot, West Virginia.
     Pending the reading of the Journal of Thursday, March 11, 2004,
     On motion of Senator Bailey, the Journal was approved and the further reading thereof dispensed with.
     The Senate proceeded to the second order of business and the introduction of guests.
     The Senate then proceeded to the third order of business.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the passage of
     Eng. Senate Bill No. 160, Extending time to appropriate money from public employees insurance agency reserve fund to bureau of medical services.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the passage of
     Eng. Com. Sub. for Senate Bill No. 208, Allowing state police to engage in certain political activities while off duty and out of uniform.
     A message from The Clerk of the House of Delegates announced the amendment by that body, passage as amended with its House of Delegates amended title, and requested the concurrence of the Senate in the House of Delegates amendments, as to
     Eng. Com. Sub. for Com. Sub. for Senate Bill No. 431, Establishing Interstate Insurance Product Regulation Compact.
     On motion of Senator Chafin, the message on the bill was taken up for immediate consideration.
     The following House of Delegates amendments to the bill were reported by the Clerk:
     On page forty-five, after section sixteen, by adding a new section, designated section seventeen, to read as follows:
§33-47-17. Filing of rules by the insurance commissioner.
     The insurance commissioner shall, pursuant to the provisions of section four, article three, chapter twenty-nine-a of this code, file in the state register any rules or uniform standards which have been adopted by the commission and have become effective in this state.;
     On page two, by striking out the enacting section and inserting in lieu thereof a new enacting section, to read s follows:
     That the code of West Virginia, 1931, as amended, be amended by adding thereto a new article, designated §33-47-1, §33-47-2, §33-47-3, §33-47-4, §33-47-5, §33-47-6, §33-47-7, §33-47-8, §33-47-9, §33-47-10, §33-47-11, §33-47-12, §33-47-13, §33-47-14, §33-47-15, §33-47-16 and §33-47-17, all to read as follows:;
     And,
     On page one, by striking out the title and substituting therefor a new title, to read as follows:
     Eng. Com. Sub. for Com. Sub. for Senate Bill No. 431--A Bill to amend the code of West Virginia, 1931, as amended, by adding thereto a new article, designated §33-47-1, §33-47-2, §33-47-3, §33-47-4, §33-47-5, §33-47-6, §33-47-7, §33-47-8, §33-47-9, §33-47- 10, §33-47-11, §33-47-12, §33-47-13, §33-47-14, §33-47-15, §33-47- 16 and §33-47-17, all relating to the establishment and operation of an interstate compact for the review and approval of certain lines of insurance products; setting forth the purposes for establishing the compact; protecting the interests of consumers and promoting uniform standards for insurance products; setting forth definitions; establishing the interstate insurance product regulation commission which has the power to develop uniform standards for product lines, to receive and approve those product filings and to be an instrumentality of the compacting states; setting forth the powers of the interstate insurance product regulation commission to promulgate rules, establish reasonable uniform standards for product filings, review products filed with the commission, review advertisement relating to long-term care insurance, exercise its rule-making authority, bring legal actions, issue subpoenas, undertake activities relating to the administration of the commission and appoint committees; setting forth provisions relating to organization of the commission; memberships and voting rights of states and participation in the governance of the commission; creation and content of bylaws of the commission; setting forth provisions relating to meetings and acts of the commission; establishing rule-making authority of the commission; exempting rules promulgated by the commission from the provisions of chapter twenty-nine-a of this code; allowing states to opt out of rules promulgated by the commission; setting forth provisions relating to the maintenance and disclosure of commission records; commission's power to monitor states' compliance with the compact, but preserving to states the ability to regulate the market conduct of insurers; setting forth provisions relating to resolution of disputes between compacting states and noncompacting states; setting forth requirements for filing products with the commission; setting forth appeal rights of insurers following disapproval of filings; setting forth provisions relating to the mechanism for funding the operations of the commission, including the collection of filing fees; setting forth the circumstances under which the compact will become effective and requiring twenty- six states or states representing forty percent of premium volume for the effected insurance lines to adopt the compact before the commission may adopt uniform standards and approve filings; setting forth the procedures for states to withdraw from the compact and circumstances under which a state will be determined to be in default of the compact; provisions relating to severability; requiring the insurance commissioner to file in the state register rules or uniform standards adopted by the commission and which have become effective in this state; and provisions relating to the binding effect of the compact.
     On motion of Senator Chafin, the Senate concurred in the House of Delegates amendments to the bill.
     Engrossed Committee Substitute for Senate Bill No. 431, as amended by the House of Delegates, was then put upon its passage.
     On the passage of the bill, the yeas were: Bailey, Boley, Bowman, Caldwell, Chafin, Deem, Dempsey, Edgell, Facemyer, Fanning, Guills, Harrison, Helmick, Hunter, Jenkins, Kessler, Love, McCabe, McKenzie, Minard, Minear, Oliverio, Plymale, Prezioso, Ross, Rowe, Sharpe, Smith, Snyder, Sprouse, Unger, Weeks, White and Tomblin (Mr. President)--34.
     The nays were: None.
     Absent: None.
     So, a majority of all the members elected to the Senate having voted in the affirmative, the President declared the bill (Eng. Com. Sub. for S. B. No. 431) passed with its House of Delegates amended title.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate.
     A message from The Clerk of the House of Delegates announced the amendment by that body, passage as amended with its House of Delegates amended title, and requested the concurrence of the Senate in the House of Delegates amendments, as to
     Eng. Senate Bill No. 517, Relating to standard nonforfeiture law for individual deferred annuities.
     On motion of Senator Chafin, the message on the bill was taken up for immediate consideration.
     The following House of Delegates amendments to the bill were reported by the Clerk:
     On page one, by striking out everything after the enacting clause and inserting in lieu thereof the following:
     That §33-7-9 of the code of West Virginia, 1931, as amended, be amended and reenacted; and that §33-13-30a of said code be amended and reenacted, all to read as follows:
ARTICLE 7. ASSETS AND LIABILITIES
§33-7-9. Standard valuation law.

     (a) Title. -- This section shall be known as the standard valuation law.
     (b) Reserve valuation. -- The commissioner shall annually value, or cause to be valued, the reserve liabilities (hereinafter called reserves) for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurance company doing business in this state and may certify the amount of any such the reserves specifying the mortality table or tables, rate or rates of interest and methods (net level premium method or other) used in the calculation of such the reserves. In calculating such the reserves, he or she may use group methods and approximate averages for fractions of a year or otherwise. In lieu of the valuation of the reserves herein required of any foreign or alien company, he or she may accept any valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when such the valuation complies with the minimum standard herein provided and if the official of such the state or jurisdiction accepts as sufficient and for all valid legal purposes the certificate of valuation of the commissioner when such the certificate states the valuation to have been made in a specified manner according to which the aggregate reserves would be at least as large as if they had been computed in the manner prescribed by the law of that state or jurisdiction.
     (c) Actuarial opinion of reserves. -- This subsection shall become operative on the first day of January, one thousand nine hundred ninety-six.
     (1) General. -- Every life insurance company doing business in this state shall annually submit the opinion of a qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the commissioner by regulation are computed appropriately, are based on assumptions which satisfy contractual provisions, are consistent with prior reported amounts and comply with applicable laws of this state. The commissioner by regulation shall define the specifics of this opinion and add any other item considered to be necessary to its scope.
     (2) Actuarial analysis of reserves and assets supporting such the reserves. -
     (A) Every life insurance company, except as exempted by or pursuant to regulation, shall also annually include in the opinion required by subdivision (1) of this subsection an opinion of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the commissioner by regulation, when considered in light of the assets held by the company with respect to the reserves and related actuarial items, including, but not limited to, the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the company's obligations under the policies and contracts, including, but not limited to, the benefits under and expenses associated with the policies and
contracts.
     (B) The commissioner may provide by regulation for a transition period for establishing any higher reserves which the qualified actuary may consider necessary in order to render the opinion required by this subsection.
     (3) Requirement for opinion under subdivision (2). -- Each opinion required by subdivision (2) of this subsection shall be governed by the following provisions:
     (A) A memorandum in form and substance acceptable to the commissioner as specified by regulation shall be prepared to support each actuarial opinion.
     (B) If the insurance company fails to provide a supporting memorandum at the request of the commissioner within a period specified by regulation or the commissioner determines that the supporting memorandum provided by the insurance company fails to meet the standards prescribed by the regulations or is otherwise unacceptable to the commissioner, the commissioner may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare such supporting memorandum as is required by the commissioner.
     (4) Requirement for all opinions. -- Every opinion shall be governed by the following provisions:
     (A) The opinion shall be submitted with the annual statement reflecting the valuation of such reserve liabilities for each year ending on or after the thirty-first day of December, one thousand nine hundred ninety-five.
     (B) The opinion shall apply to all business in force, including individual and group health insurance plans, in form and substance acceptable to the commissioner as specified by regulation.
     (C) The opinion shall be based on standards adopted, from time to time, by the actuarial standards board and on such additional standards as the commissioner may by regulation prescribe.
     (D) In the case of an opinion required to be submitted by a foreign or alien company, the commissioner may accept the opinion filed by that company with the insurance supervisory official of another state if the commissioner determines that the opinion reasonably meets the requirements applicable to a company domiciled in this state.
     (E) For the purposes of this section, "qualified actuary" means a member in good standing of the American academy of actuaries who meets the requirements set forth in such regulations.
     (F) Except in cases of fraud or willful misconduct, the qualified actuary shall is not be liable for damages to any person (other than the insurance company and the commissioner) for any act, error, omission, decision or conduct with respect to the actuary's opinion.
     (G) Disciplinary action by the commissioner against the company or the qualified actuary shall be defined in regulations by the commissioner.
     (H) Any memorandum in support of the opinion and any other material provided by the company to the commissioner in connection therewith shall be kept confidential by the commissioner and shall not be made public and shall not be subject to subpoena, other than for the purpose of defending an action seeking damages from any person by reason of any action required by this section or by regulations promulgated hereunder: Provided, That the memorandum or other material may otherwise be released by the commissioner: (i) With the written consent of the company; (ii) to the American academy of actuaries upon request stating that the memorandum or other material is required for the purpose of professional disciplinary proceedings and setting forth procedures satisfactory to the commissioner for preserving the confidentiality of the memorandum or other material; or (iii) in accordance with section nineteen, article two of this chapter. Once any portion of the confidential memorandum is cited by the company in its marketing or is cited by the company before any governmental agency other than a state insurance department or is released by the company to the news media, all portions of the confidential memorandum shall be no longer confidential.
     (d) Computation of minimum standards. -- Except as otherwise provided in subsections (e), (f) and (m) of this section, the minimum standard for the valuation of all such policies and contracts issued prior to the effective date of this section shall be that provided by the laws in effect immediately prior to such the effective date. Except as otherwise provided in subsections (e), (f) and (m) of this section, the minimum standard for the valuation of all such policies and contracts issued on or after the effective date of this section shall be the commissioners reserve valuation methods defined in subsections (g), (h), (k) and (m) of this section, three and one-half percent interest or in the case of life insurance policies and contracts, other than annuity and pure endowment contracts, issued on or after the first day of June, one thousand nine hundred seventy-four, four percent interest for such policies issued prior to the sixth day of April, one thousand nine hundred seventy-seven, five and one-half percent interest for single premium life insurance policies and four and one-half percent interest for all other such policies issued on and after the sixth day of April, one thousand nine hundred seventy-seven, and the following tables:
     (1) For all ordinary policies of life insurance issued on the standard basis, excluding any disability and accidental death benefits in such policies:
     (A) The commissioner's 1941 standard ordinary mortality table for such policies issued prior to the operative date of subsection (4a), section thirty, article thirteen of this chapter;
     (B) The commissioners 1958 standard ordinary mortality table for such policies issued on or after the operative date of said subsection (4a), section thirty, article thirteen of this chapter, and prior to the operative date of subsection (4c) of said section: Provided, That for any category of such policies issued on female risks, all modified net premiums and present values referred to in this section may be calculated according to an age not more than six years younger than the actual age of the insured; and,
_____
(C) for such For policies issued on or after the operative date of subsection (4c), section thirty, article thirteen of this chapter:
     (i) The commissioner's 1980 standard ordinary mortality table; or
     (ii) At the election of the company for any one or more specified plans of life insurance, the commissioners 1980 standard ordinary mortality table with ten-year select mortality factors; or
     (iii) Any ordinary mortality table adopted after the year one thousand nine hundred eighty by the national association of insurance commissioners that is approved by regulation rule promulgated by the commissioner for use in determining the minimum standard of valuation for such the policies.
     (2) For all industrial life insurance policies issued on the standard basis, excluding any disability and accidental death benefits in such the policies: The 1941 standard industrial mortality table for such policies issued prior to the operative date of subdivision (4), subsection (b), section thirty, article thirteen of this chapter and for such policies issued on or after such the operative date, the commissioners 1961 standard industrial mortality table or any industrial mortality table adopted after the year one thousand nine hundred eighty by the national association of insurance commissioners that is approved by regulation rule promulgated by the commissioner for use in determining the minimum standard of valuation for such the policies.
     (3) For individual annuity and pure endowment contracts, excluding any disability and accidental death benefits in such policies: The 1937 standard annuity mortality table or, at the option of the company, the annuity mortality table for 1949, ultimate, or any modification of either of these tables approved by the commissioner.
     (4) For group annuity and pure endowment contracts, excluding any disability and accidental death benefits in such the policies: The group annuity mortality table for 1951, any modification of such the table approved by the commissioner, or at the option of the company, any of the tables or modifications of tables specified for individual annuity and pure endowment contracts.
     (5) For total and permanent disability benefits in or supplementary to ordinary policies or contracts: For policies or contracts issued on or after the first day of January, one thousand nine hundred sixty-six, the tables of period two disablement rates and the 1930 to 1950 termination rates of the 1952 disability study of the society of actuaries, with due regard to the type of benefit or any tables of disablement rates and termination rates adopted after the year one thousand nine hundred eighty by the national association of insurance commissioners that are approved by regulation rule promulgated by the commissioner for use in determining the minimum standard of valuation for such the policies; for policies or contracts issued on or after the first day of January, one thousand nine hundred sixty-one, and prior to the first day of January, one thousand nine hundred sixty-six, either such tables or, at the option of the company, the Class (3) disability table (1926); and for policies issued prior to the first day of January, one thousand nine hundred sixty-one, the Class (3) disability table (1926).
     Any such table shall, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance policies.
     (6) For accidental death benefits in or supplementary to policies issued on or after the first day of January, one thousand nine hundred sixty-six, the 1959 accidental death benefits table or any accidental death benefits table adopted after the year one thousand nine hundred eighty by the national association of insurance commissioners, that is approved by regulation rules promulgated by the commissioner for use in determining the minimum standard of valuation for such policies, for policies issued on or after the first day of January, one thousand nine hundred sixty- one, and prior to the first day of January, one thousand nine hundred sixty-six, either such table or, at the option of the company, the intercompany double indemnity mortality table; and for policies issued prior to the first day of January, one thousand nine hundred sixty-one, the intercompany double indemnity mortality table. Either table shall be combined with a mortality table for calculating the reserves for life insurance policies.
     (7) For group life insurance, life insurance issued on the substandard basis and other special benefits: Such tables Tables as may be approved by the commissioner.
     (e) Computation of minimum standard for annuities. -- Except
as provided in subsection (f) of this section, the minimum standard for the valuation of all individual annuity and pure endowment contracts issued on or after the operative date of this subsection, as defined herein, and for all annuities and pure endowments purchased on or after such the operative date under group annuity and pure endowment contracts shall be the commissioner's reserve valuation methods defined in subsections (g) and (h) of this section and the following tables and interest rates:
     (1) For individual annuity and pure endowment contracts issued prior to the sixth day of April, one thousand nine hundred seventy-seven, excluding any disability and accidental death benefits in such the contracts: The 1971 individual annuity mortality table or any modification of this table approved by the commissioner and six percent interest for single premium immediate annuity contracts and four percent interest for all other individual annuity and pure endowment contracts;
     (2) For individual single premium immediate annuity contracts issued on or after the sixth day of April, one thousand nine hundred seventy-seven, excluding any disability and accidental death benefits in such contracts: The 1971 individual annuity mortality table or any individual annuity mortality table adopted after the year one thousand nine hundred eighty by the national association of insurance commissioners that is approved by regulation rule promulgated by the commissioner for use in determining the minimum standard of valuation for such the contracts or any modification of these tables approved by the commissioner and seven and one-half percent interest;
     (3) For individual annuity and pure endowment contracts issued on or after the sixth day of April, one thousand nine hundred seventy-seven, other than single premium immediate annuity contracts, excluding any disability and accidental death benefits in such the contracts: The 1971 individual annuity mortality table or any individual annuity mortality table adopted after the year one thousand nine hundred eighty by the national association of insurance commissioners that is approved by regulation promulgated by the commissioner for use in determining the minimum standard of valuation for such the contracts or any modification of these tables approved by the commissioner and five and one-half percent interest for single premium deferred annuity and pure endowment contracts and four and one-half percent interest for all other such individual annuity and pure endowment contracts;
     (4) For all annuities and pure endowments purchased prior to the sixth day of April, one thousand nine hundred seventy-seven, under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under such the contracts: The 1971 group annuity mortality table or any modification of this table approved by the commissioner and six percent interest;
     (5) For all annuities and pure endowments purchased on or after the sixth day of April, one thousand nine hundred seventy-seven, under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under such the contracts: The 1971 group annuity mortality table or any group annuity mortality table adopted after the year one thousand nine hundred eighty by the national association of insurance commissioners that is approved by regulation promulgated by the commissioner for use in determining the minimum standard of valuation for such annuities and pure endowments or any modification of these tables approved by the commissioner and seven and one-half percent interest.
     After the third day of June, one thousand nine hundred seventy-four, any company may file with the commissioner a written notice of its election to comply with the provisions of this subsection after a specified date before the first day of January, one thousand nine hundred seventy-nine, which shall be the operative date of this subsection for such the company provided, if a company makes no such election, the operative date of this section for such the company shall be the first day of January, one thousand nine hundred seventy-nine.
     (f) Computation of minimum standard by calendar year of issue. -
     (1) Applicability of this section. -- The interest rates used in determining the minimum standard for the valuation of:
     (A) All life insurance policies issued in a particular calendar year, on or after the operative date of subdivision (4), subsection (c), section thirty, article thirteen of this chapter as amended;
     (B) All individual annuity and pure endowment contracts issued in a particular calendar year on or after the first day of January, one thousand nine hundred eighty-two;
     (C) All annuities and pure endowments purchased in a particular calendar year on or after the first day of January, one thousand nine hundred eighty-two, under group annuity and pure endowment contracts; and
     (D) The net increase, if any, in a particular calendar year
after the first day of January, one thousand nine hundred eighty-two, in amounts held under guaranteed interest contracts, shall be the calendar year statutory valuation interest rates as
defined in this subsection.
     (2) Calendar year statutory valuation interest rates. -
     (A) The calendar year statutory valuation interest rates, I, shall be determined as follows and the results rounded to the nearer one quarter of one percent:
     (i) For life insurance, I =.03 + W(R1 -.03) + W/2(R2 -.09);
     (ii) For single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and from guaranteed interest contracts with cash settlement options, I =.03 + W® -.03) where R1 is the lesser of R and .09, R2 is the greater of R and .09, R is the reference interest rate defined in this subsection and W is the weighting factor defined in this section;
     (iii) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on an issue year basis, except as stated in subparagraph (ii) of this paragraph, the formula for life insurance stated in subparagraph (i) of this paragraph shall apply to annuities and guaranteed interest contracts with guarantee durations in excess of ten years and the formula for single premium immediate annuities stated in subparagraph (ii) of this paragraph shall apply to annuities and guaranteed interest contracts with guarantee duration of ten years or less;
     (iv) For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the formula for single premium immediate annuities stated in subparagraph (ii) of this paragraph shall apply;
     (v) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a change in fund basis, the formula for single premium immediate annuities stated in subparagraph (ii) of this paragraph shall apply.
     (B) However, if the calendar year statutory valuation interest rate for any life insurance policies issued in any calendar year determined without reference to this sentence differs from the corresponding actual rate for similar policies issued in the immediately preceding calendar year by less than one half of one percent, the calendar year statutory valuation interest rate for such life insurance policies shall be equal to the corresponding actual rate for the immediately preceding calendar year. For purposes of applying the immediately preceding sentence, the calendar year statutory valuation interest rate for life insurance policies issued in a calendar year shall be determined for the year one thousand nine hundred eighty (using the reference interest rate defined for the year one thousand nine hundred seventy-nine) and shall be determined for each subsequent calendar year regardless of when subdivision (4), subsection (c), section thirty, article thirteen of this chapter, as amended, becomes operative.
     (3) Weighting factors. -
     (A) The weighting factors referred to in the formulas stated above are given in the following tables:
     (i) Weighting Factors for Life Insurance:
Guarantee
Duration        Weighting
(Years)________Factors
10 or less        .50
More than 10, but not more than 20         .45
More than 20         .35
  For life insurance, the guarantee duration is the maximum number of years the life insurance can remain in force on a basis
guaranteed in the policy or under options to convert to plans of life insurance with premium rates or nonforfeiture values or both which are guaranteed in the original policy;
  (ii) Weighting factor for single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and guaranteed interest contracts with cash settlement options: .80;
  (iii) Weighting factors for other annuities and for guaranteed interest contracts, except as stated in subparagraph (ii) of this paragraph, shall be as specified in clauses (I), (II) and (III) of this subparagraph, according to the rules and definitions in clauses (IV), (V) and (VI) of this subparagraph:
  (I) For annuities and guaranteed interest contracts valued on an issue year basis:
Guarantee                                                                Weighting Factor
Duration                                                           for Plan Type
(Years)_________________________________________________A________B________C
5 or less:                                            .80        .60  .50
More than 5, but not more than 10:                    .75        .60  .50
More than 10, but not more than 20:                   .65        .50  .45
More than 20:                                         .45        .35  .35
  (II) For annuities and guaranteed interest contracts valued
on a change in fund basis, the factors shown in subparagraph (i) of this paragraph increased by:
                                                                 Weighting Factor
                                                                 for Plan Type
  A___________________________________________________B________C1

     .15                                                 .25        .05
  (III) For annuities and guaranteed interest contracts valued on an issue year basis (other than those with no cash settlement options) which do not guarantee interest on considerations received more than one year after issue or purchase and for annuities and guaranteed interest contracts valued on a change in fund basis which do not guarantee interest rates on considerations received more than twelve months beyond the valuation date, the factors shown in clause (I) of this subparagraph or derived in clause (II) of this subparagraph increased by:
                                                                 Weighting Factor
                                                                 for Plan Type
  A___________________________________________________B________C1

     .05                                                 .05        .05
  (IV) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the guarantee duration is the number of years for which the contract guarantees interest rates in excess of the calendar year statutory valuation interest rate for life insurance policies with guarantee duration in excess of twenty years. For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the guaranteed duration is the number of years from the date of issue or date of purchase to the date annuity benefits are scheduled to commence.
  (V) Plan type as used in the above tables is defined as follows:
  Plan Type A:
  At any time policyholder may withdraw funds only: (1) With an adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurance company; or (2) without such adjustment but in installments over five years or more; or (3) as an immediate life annuity; or (4) no withdrawal permitted;
  Plan Type B:
  Before expiration of the interest rate guarantee, policyholder may withdraw funds only: (1) With an adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurance company; or (2) without such adjustment but in installments over five years or more; or (3) no withdrawal permitted. At the end of interest rate guarantee, funds may be withdrawn without such adjustment in a single sum or installments over less than five years;
  Plan Type C:
  Policyholder may withdraw funds before expiration of interest rate guarantee in a single sum or installments over less than five years either: (1) Without adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurance company; or (2) subject only to a fixed surrender charge stipulated in the contract as a percentage of the fund.
  (VI) A company may elect to value guaranteed interest contracts with cash settlement options and annuities with cash settlement options on either an issue year basis or on a change in fund basis. Guaranteed interest contracts with no cash settlement options and other annuities with no cash settlement options must be valued on an issue year basis. As used in this section, an issue year basis of valuation refers to a valuation basis under which the interest rate used to determine the minimum valuation standard for the entire duration of the annuity or guaranteed interest contract is the calendar year valuation interest rate for the year of issue or year of purchase of the annuity or guaranteed interest contract and the change in fund basis of valuation refers to a valuation basis under which the interest rate used to determine the minimum valuation standard applicable to each change in the fund held under the annuity or guaranteed interest contract is the calendar year valuation interest rate for the year of the change in the fund.
  (4) Reference interest rate. --
  (A) Reference interest rate referred to in subparagraph (ii), paragraph (A), subdivision (2) of this subsection shall be defined as follows:
  (i) For all life insurance, the lesser of the average over a period of thirty-six months and the average over a period of twelve months, ending on the thirtieth day of June of the calendar year next preceding the year of issue, of the monthly average of the composite yield on seasoned corporate bonds as published by Moody's investors service, inc.
  (ii) For single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the average over a period of twelve months, ending on the thirtieth day of June of the calendar year of issue or year of purchase, of the monthly average of the composite yield on seasoned corporate bonds as published by Moody's investors service, inc.
  (iii) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a year of issue basis, except as stated in subparagraph (ii) of this paragraph, with guarantee duration in excess of ten years, the lesser of the average over a period of thirty-six months and the average over a period of twelve months, ending on the thirtieth day of June of the calendar year of issue or purchase, of the monthly average of the composite yield on seasoned corporate bonds as published by Moody's investors service, inc.
  (iv) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a year of issue basis, except as stated in subparagraph (ii) of this paragraph, with guarantee duration of ten years or less, the average over a period of twelve months, ending on the thirtieth day of June of the calendar year of issue or purchase, of the monthly average of the composite yield on seasoned corporate bonds as published by Moody's investors service, inc.
  (v) For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the average over a period of twelve months, ending on the thirtieth day of June of the calendar year of issue or purchase, of the monthly average of the composite yield on seasoned corporate bonds as published by Moody's investors service, inc.
  (vi) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a change in fund basis, except as stated in subparagraph (ii) of this paragraph, the average over a period of twelve months, ending on the thirtieth day of June of the calendar year of the change in the fund, of the monthly average of the composite yield on seasoned corporate bonds as published by Moody's investors service, inc.
  (5) Alternative method for determining reference interest rates. -
  In the event that the monthly average of the composite yield on seasoned corporate bonds is no longer published by Moody's investors service, inc., or in the event that the national association of insurance commissioners determines that the monthly average of the composite yield on seasoned corporate bonds as published by Moody's investors service, inc., is no longer appropriate for the determination of the reference interest rate, then an alternative method for determination of the reference interest rate, which is adopted by the national association of insurance commissioners and approved by regulation promulgated by the commissioner, may be substituted.
  (g) Reserve valuation method. -- Life insurance and endowment benefits.
  Except as otherwise provided in subsections (h), (k) and (m) of this section, reserves according to the commissioners reserve valuation method for the life insurance and endowment benefits of policies providing for a uniform amount of insurance and requiring the payment of uniform premiums shall be the excess, if any, of the present value, at the date of valuation, of such the future guaranteed benefits provided for by such the policies, over the then present value of any future modified net premiums therefor. The modified net premiums for any such policy shall be such the uniform percentage of the respective contract premiums for such the benefits that the present value, at the date of issue of the policy, of all such the modified net premiums shall be equal to the sum of the then present value of such the benefits provided for by the policy and the excess of subdivision (1) of this subsection over subdivision (2) of this subsection, as follows:
  (1) A net level annual premium equal to the present value, at the date of issue, of such benefits provided for after the first policy year, divided by the present value, at the date of issue, of an annuity of one per annum payable on the first and each subsequent anniversary of such policy on which a premium falls due: Provided, That such net level annual premium shall not exceed the net level annual premium on the nineteen-year premium whole life plan for insurance of the same amount at an age one year higher than the age at issue of such policy.
  (2) A net one-year term premium for such benefits provided for in the first policy year: Provided, That for any life insurance policy issued on or after the first day of January, one thousand nine hundred eighty-five, for which the contract premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for such excess and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than such excess premium, the reserve according to the commissioners' reserve valuation method as of any policy anniversary occurring on or before the assumed ending date defined herein as the first policy anniversary on which the sum of any endowment benefit and any cash surrender value then available is greater than such excess premium shall, except as otherwise provided in subsection (k) of this section, be the greater of the reserve as of such policy anniversary calculated as described in the preceding paragraph and the reserve as of such the policy anniversary calculated as described in that paragraph, but with: (i) The value defined in subdivision (1) of that paragraph being reduced by fifteen percent of the amount of such excess first-year premium; (ii) all present values of benefits and premiums being determined without reference to premiums or benefits provided for by the policy after the assumed ending date; (iii) the policy being assumed to mature on such the date as an endowment; and (iv) the cash surrender value provided on such date being considered as an endowment benefit. In making the above comparison, the mortality and interest bases stated in subsections (d) and (f) of this section shall be used.
  Reserves according to the commissioners' reserve valuation method for: (i) Life insurance policies providing for a varying amount of insurance or requiring the payment of varying premiums; (ii) group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer (including a partnership or sole proprietorship) or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under section 408 of the Internal Revenue Code (26 U.S.C. §408) as now or hereafter amended; (iii) disability and accidental death benefits in all policies and contracts; and (iv) all other benefits, except life insurance and endowment benefits in life insurance policies and benefits provided by all other annuity and pure endowment contracts, shall be calculated by a method consistent with the principles of the preceding paragraphs of this section.
  (h) Reserve valuation method. -- Annuity and pure endowment benefits. This subsection shall apply to all annuity and pure endowment contracts other than group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation established or maintained by an employer (including a partnership or sole proprietorship) or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under section 408 of the Internal Revenue Code (26 U. S. C. §408) as now or hereafter amended.
  Reserves according to the commissioners' annuity reserve method for benefits under annuity or pure endowment contracts, excluding any disability and accidental death benefits in such contracts, shall be the greatest of the respective excesses of the present values, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by such contracts at the end of each respective contract year over the present value, at the date of valuation, of any future valuation considerations derived from future gross considerations, required by the terms of such contract, that become payable prior to the end of such respective contract year.
  The future guaranteed benefits shall be determined by using the mortality table, if any, and the interest rate, or rates, specified in such the contracts for determining guaranteed benefits. The valuation considerations are the portions of the respective gross considerations applied under the terms of such contracts to determine nonforfeiture values.
  (i) Minimum reserves. --
  (1) In no event shall a company's aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, issued on or after the effective date of this section be less than the aggregate reserves calculated in accordance with the methods set forth in subsections (g), (h), (k) and (l) of this section and the mortality table or tables and rate or rates of interest used in calculating nonforfeiture benefits for such policies.
  (2) In no event shall the aggregate reserves for all policies, contracts and benefits be less than the aggregate reserves determined by the qualified actuary to be necessary to render the opinion required by subsection (c) of this section.
  (j) Optional reserve calculation. --
  Reserves for all policies and contracts issued prior to the effective date of this section may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for all such policies and contracts than the minimum reserves required by the laws in effect immediately prior to such date.
  Reserves for any category of policies, contracts or benefits as established by the commissioner issued on or after the effective date of this section may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for such category than those calculated according to the minimum standard herein provided, but the rate or rates of interest used for policies and contracts, other than annuity and pure endowment contracts, shall not be higher than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided therein.
  Any such company which at any time shall have adopted any standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard herein provided may, with the approval of the commissioner, adopt any lower standard of valuation, but not lower than the minimum herein provided: Provided, That for the purposes of this section, the holding of additional reserves previously determined by a qualified actuary to be necessary to render the opinion required by subsection (c) of this section shall not be considered to be the adoption of a higher standard of valuation.
  (k) Reserve calculation. -- Valuation net premium exceeding the gross premium charged.
  If in any contract year the gross premium charged by any life insurance company on any policy or contract is less than the valuation net premium for the policy or contract calculated by the method used in calculating the reserve thereon but using the minimum valuation standards of mortality and rate of interest, the minimum reserve required for such policy or contract shall be the greater of either the reserve calculated according to the mortality table, rate of interest and method actually used for such policy or contract or the reserve calculated by the method actually used for such policy or contract but using the minimum valuation standards of mortality and rate of interest and replacing the valuation net premium by the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium. The minimum valuation standards of mortality and rate of interest referred to in this section are those standards stated in subsections (d) and (f) of this section: Provided, That for any life insurance policy issued on or after the first day of January, one thousand nine hundred eighty-five, for which the gross premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for such excess and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than such excess premium, the foregoing provisions of this subsection shall be applied as if the method actually used in calculating the reserve for such policy were the method described in subsection (g) of this section, ignoring the second paragraph of said subsection.
  The minimum reserve at each policy anniversary of such a policy shall be the greater of the minimum reserve calculated in accordance with said subsection, including the second paragraph of that section, and the minimum reserve calculated in accordance with this subsection.
  (l) Reserve calculation. -- Indeterminate premium plans.
  In the case of any plan of life insurance which provides for
future premium determination, the amounts of which are to be determined by the insurance company based on then estimates of future experience, or in the case of any plan of life insurance or annuity which is of such a nature that the minimum reserves cannot be determined by the methods described in subsections (g), (h) and (k) of this section, the reserves which are held under any such plan must:
  (1) Be appropriate in relation to the benefits and the pattern of premiums for that plan; and
  (2) Be computed by a method which is consistent with the principles of this standard valuation law as determined by regulations promulgated by the commissioner.
  (m) Minimum standards for health (disability, accident and sickness) plans. --
  The commissioner shall promulgate a regulation rule containing the minimum standards applicable to the valuation of health (disability, sickness and accident) plans.
  (n) The commissioner shall promulgate a rule on or before the first day of November, one thousand nine hundred ninety-five, prescribing the guidelines and standards for statements of actuarial opinion which are to be submitted in accordance with subsection (c) of this section and for memoranda in support thereof; guidelines and standards for statements of actuarial opinion which are to be submitted when a company is exempt from subdivision (2) of said subsection of the standard valuation law; and rules applicable to the appointment of an appointed actuary.
  (o) Effective date. -- All acts and parts of acts inconsistent with the provision of this section are hereby repealed as of the effective date of this section. This section shall take effect the first day of January, one thousand nine hundred ninety-six.
  (p) Modification of the standard valuation law for certain types of contracts. -
  (1) The commissioner may, by rule, establish alternative methods of calculating reserve liabilities, which methods shall be used to calculate reserve liabilities for the types of policies, annuities or other contracts identified in the rule: Provided, That the method specified in the rule shall be one which, in the opinion of the commissioner and in light of the methods applied to such the contracts by the insurance regulators of other states, is appropriate to such the contracts. This power shall be in addition to, and in no way diminish, rule-making power granted to the commissioner elsewhere in this code.
  (2) The legislative rule filed in the state register on the twentieth day of August, one thousand nine hundred ninety-six, (valuation of life insurance policies, 114 CSR 49) is hereby disapproved and is not authorized for promulgation: Provided, That for purposes of determining the legal effects of the aforementioned rule, this provision shall be considered to have taken effect on the thirty-first day of December, one thousand nine hundred ninety-seven. This disapproval shall in no way limit the commissioner's power to promulgate in the future a rule similar or identical to the rule here disapproved.
ARTICLE 13. LIFE INSURANCE.

§33-13-30a. Standard nonforfeiture law for individual deferred annuities.

     (a) This section shall be known as the "Standard Nonforfeiture Law for Individual Deferred Annuities".
     (b) This section may not apply to any reinsurance, group annuity purchased under a retirement plan or plan of deferred compensation established or maintained by an employer (including a partnership or sole proprietorship) or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under Section 408 of the Internal Revenue Code, as now or hereafter amended, premium deposit fund, variable annuity, investment annuity, immediate annuity, any deferred annuity contract after annuity payments have commenced or reversionary annuity, nor to any contract which shall be delivered outside this state through an agent or other representative of the company issuing the contract.
     (c) In the case of contracts issued on or after the operative date of this section as defined in subsection (l) of this section, no contract of annuity, except as stated in subsection (b) of this section, shall be delivered or issued for delivery in this state unless it contains in substance the following provisions or corresponding provisions which, in the opinion of the commissioner, are at least as favorable to the contract holder, upon cessation of payment of considerations under the contract:
     (1) That upon cessation of payment of considerations under a contract, the company will grant a paid-up annuity benefit on a plan stipulated in the contract of the value as is specified in subsections (e), (f), (g), (h) and (j) of this section;
     (2) If a contract provides for a lump sum settlement at maturity or at any other time, that, upon surrender of the contract at or prior to the commencement of any annuity payments, the company will pay in lieu of any paid-up annuity benefit a cash surrender benefit of the amount as is specified in subsections (e), (f), (h) and (j) of this section. The company shall reserve the right to defer the payment of the cash surrender benefit for a period of six months after demand therefor with surrender of the contract;
     (3) A statement of the mortality table, if any, and interest rates used in calculating any minimum paid-up annuity, cash surrender or death benefits that are guaranteed under the contract, together with sufficient information to determine the amounts of the benefits; and
     (4) A statement that any paid-up annuity, cash surrender or death benefits that may be available under the contract are not less than the minimum benefits required by any statute of the state in which the contract is delivered and an explanation of the manner in which the benefits are altered by the existence of any additional amounts credited by the company to the contract, any indebtedness to the company on the contract or any prior withdrawals from or partial surrenders of the contract.
     Notwithstanding the requirements of this subsection, any deferred annuity contract may provide that if no considerations have been received under a contract for a period of two full years and the portion of the paid-up annuity benefit at maturity on the plan stipulated in the contract arising from considerations paid prior to the period would be less than twenty dollars monthly, the company may at its option terminate the contract by payment in cash of the then present value of the portion of the paid-up annuity benefit, calculated on the basis of the mortality table, if any, and interest rate specified in the contract for determining the paid-up annuity benefit and by the payment shall be relieved of any further obligation under the contract.
     (d) (1) The minimum values as specified in subsections (e), (f), (g), (h) and (j) of this section of any paid-up annuity, cash surrender or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this section subdivision:
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(1) (A) With respect to contracts providing for flexible considerations, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to the time at a rate of interest of three percent per annum of percentages of the net considerations (as hereinafter defined) paid prior to the time, decreased by the sum of:
     (A) (i) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of three percent per annum; and
     (B) (ii) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract;
     The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount not less than zero and shall be equal to the corresponding gross considerations credited to the contract during that contract year less than an annual contract charge of thirty dollars and less a collection charge of one dollar and twenty-five cents per consideration credited to the contract during that contract year. The percentages of net considerations shall be sixty-five percent of the net consideration for the first contract year and eighty-seven and one-half percent of the net considerations for the second and later contract years. Notwithstanding the provisions of the preceding sentence, the percentage shall be sixty-five percent of the portion of the total net consideration for any renewal contract year which exceeds by not more than two times the sum of those portions of the net considerations in all prior contract years for which the percentage was sixty-five percent;
     Notwithstanding any other provision of this section, any contract issued on or after the first day of July, two thousand three, and before the first day of July, two thousand five six, the interest rate at which net considerations, prior withdrawals and partial surrenders shall be accumulated for the purpose of determining nonforfeiture amounts may not be less than one and one-half percent per annum;
     (2) (B) With respect to contracts providing for fixed scheduled considerations, minimum nonforfeiture amounts shall be calculated on the assumption that considerations are paid annually in advance and shall be defined as for contracts with flexible considerations which are paid annually with two exceptions:
     (A) (i) The portion of the net consideration for the first contract year to be accumulated shall be the sum of sixty-five percent of the net consideration for the first contract year plus twenty-two and one-half percent of the excess of the net consideration for the first contract year over the lesser of the net considerations for the second and third contract years;
     (B) (ii) The annual contract charge shall be the lesser of: (i) (1) Thirty dollars; or (ii) (2) ten percent of the gross annual consideration;
     (3) (C) With respect to contracts providing for a single consideration, minimum nonforfeiture amounts shall be defined as for contracts with flexible considerations except that the percentage of net consideration used to determine the minimum nonforfeiture amount shall be equal to ninety percent and the net consideration shall be the gross consideration less a contract charge of seventy-five dollars;
     (D) This subdivision applies to contracts issued before the first day of July, two thousand four, and may be applied by a company on a contract-by-contract basis to contracts issued on or after the first day of July, two thousand four, and before the first day of July, two thousand six;
_____(2) The minimum values as specified in subsections (e), (f), (g), (h) and (j) of any paid-up annuity, cash surrender or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this subdivision;
_____(A) (i) The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at rates of interest as indicated in paragraph (B) of this subdivision of the net considerations (as hereinafter defined) paid prior to such time, decreased by the sum of subparagraphs (I) through (IV) below:
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(I) Any prior withdrawals from or partial surrenders of the contract accumulated at rates of interest as indicated in paragraph (B);
_____(II) An annual contract charge of fifty dollars, accumulated at rates of interest as indicated in paragraph (B) of this subdivision;
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(III) Any premium tax paid by the company for the contract, accumulated at rates of interest as indicated in subparagraph (ii), paragraph (B) of this subdivision; and
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(IV) The amount of any indebtedness to the company on the contract, including interest due and accrued;
_____(ii) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to eighty-seven and one-half percent of the gross considerations credited to the contract during that contract year;
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(B) The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest determined as the lesser of three percent per annum and the following, which shall be specified in the contract if the interest rate will be reset:
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(i) The five-year constant maturity treasury rate reported by the federal reserve as of a date, or average over a period, rounded to the nearest 1/20th of one percent, specified in the contract no longer than fifteen months prior to the contract issue date or redetermination date under subparagraph (iv) of this paragraph;
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(ii) Reduced by one hundred twenty-five basis points;
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(iii) Where the resulting interest rate is not less than one percent; and
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(iv) The interest rate shall apply for an initial period and may be redetermined for additional periods. The redetermination date, basis and period, if any, shall be stated in the contract. The basis is the date or average over a specified period that produces the value of the five-year constant maturity treasury rate to be used at each redetermination date;
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(C) During the period or term that a contract provides substantive participation in an equity indexed benefit, it may increase the reduction described in subparagraph (ii), paragraph (B) of this subdivision by up to an additional one hundred basis points to reflect the value of the equity index benefit. The present value at the contract issue date, and at each redetermination date thereafter, of the additional reduction may not exceed the market value of the benefit. The commissioner may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. Lacking a determination that is acceptable to the commissioner, the commissioner may disallow or limit the additional reduction;
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(D) The commissioner may adopt rules to implement the provisions of this subsection and to provide for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit and for other contracts that the commissioner determines their adjustments are justified;
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(E) This subdivision shall apply to contracts outstanding on the first day of July, two thousand four, and may be applied by a company on a contract-by-contract basis to any contract issued after the first day of July, two thousand four, and before the first day of July, two thousand six.
     (e) Any paid-up annuity benefit available under a contract shall be such that its present value on the date annuity payments are to commence is at least equal to the minimum nonforfeiture amount on that date. The present value shall be computed using the mortality table, if any, and the interest rate specified in the contract for determining the minimum paid-up annuity benefits guaranteed in the contract.
     (f) For contracts which provide cash surrender benefits, the cash surrender benefits available prior to maturity shall may not be less than the present value as of the date of surrender of that portion of the maturity value of the paid-up annuity benefit which would be provided under the contract at maturity arising from consideration paid prior to the time of cash surrender reduced by the amount appropriate to reflect any prior withdrawals from or partial surrenders of the contract, the present value being calculated on the basis of an interest rate not more than one percent higher than the interest rate specified in the contract for accumulating the net considerations to determine the maturity value, decreased by the amount of any indebtedness to the company on the contract, including interest due and accrued, and increased by any existing additional amounts credited by the company to the contract. In no event shall any cash surrender benefit be less than the minimum nonforfeiture amount at that time. The death benefit under the contracts shall be at least equal to the cash surrender benefit.
     (g) For contracts which do not provide cash surrender benefits, the present value of any paid-up annuity benefit available as a nonforfeiture option at any time prior to maturity shall may not be less than the present value of that portion of the maturity value of the paid-up annuity benefit provided under the contract arising from considerations paid prior to the time the contract is surrendered in exchange for, or changed to, a deferred paid-up annuity, the present value being calculated for the period prior to the maturity date on the basis of the interest rate specified in the contract for accumulating the net considerations to determine the maturity value and increased by any existing additional amounts credited by the company to the contract. For contracts which do not provide any death benefits prior to the commencement of any annuity payments, the present values shall be calculated on a basis of the interest rate and the mortality table specified in the contract for determining the maturity value of the paid-up annuity benefit. However, in no event shall the present value of a paid-up annuity benefit be less than the minimum nonforfeiture amount at that time.
     (h) For the purpose of determining the benefits calculated under subsections (f) and (g) of this section, in the case of annuity contracts under which an election may be made to have annuity payments commence at optional maturity dates, the maturity date shall be deemed is considered to be the latest date for which election shall be is permitted by the contract, but shall is not be deemed considered to be later than the anniversary of the contract next following the annuitant's seventieth birthday or the tenth anniversary of the contract, whichever is later.
     (i) Any contract which does not provide cash surrender benefits or does not provide death benefits at least equal to the minimum nonforfeiture amount prior to the commencement of any annuity payments shall include a statement in a prominent place in the contract that the benefits are not provided.
     (j) Any paid-up annuity, cash surrender or death benefits available at any time, other than on the contract anniversary under any contract with fixed scheduled considerations, shall be calculated with allowance for the lapse of time and the payment of any scheduled considerations beyond the beginning of the contract year in which cessation of payment of considerations under the contract occurs.
     (k) For any contract which provides, within the same contract by rider or supplemental contract provision, both annuity benefits and life insurance benefits that are in excess of the greater of cash surrender benefits or a return of the gross considerations with interest, the minimum nonforfeiture benefits shall be equal to the sum of the minimum nonforfeiture benefits for the annuity portion and the minimum nonforfeiture benefits, if any, for the life insurance portion computed as if each portion were a separate contract. Notwithstanding the provisions of subsections (e), (f), (g), (h) and (j) of this section, additional benefits payable: (1) In the event of total and permanent disability; (2) as reversionary annuity or deferred reversionary annuity benefits; or (3) as other policy benefits additional to life insurance, endowment and annuity benefits and considerations for all the additional benefits shall be disregarded in ascertaining the minimum nonforfeiture amounts, paid-up annuity, cash surrender and death benefits that may be required by this section. The inclusion of the additional benefits shall may not be required in any paid-up benefits unless the additional benefits separately would require minimum nonforfeiture amounts, paid-up annuity, cash surrender and death benefits.
     (l) After the effective date of this section, any company may file with the commissioner a written notice of its election to comply with the provisions of this section after a specified date before the second anniversary of the effective date of this section. After the filing of the notice, then upon the specified date which shall be the operative date of this section for the company, this section shall become operative with respect to annuity contracts thereafter issued by the company. If a company makes no election, the operative date of this section for the company shall be is the second anniversary of the effective date of this section.
     (m) (1) During the period from the first day of July, two thousand four, through the first day of July, two thousand six, an insurer may elect on a contract-by-contract basis to apply the provisions of either subdivision (1) or (2), subsection (d) of this section to any annuity contract issued during that period of time;
     (2) The provisions of subdivision (1), subsection (d) of this section expires the first day of July, two thousand six.;
     And,
     On page one, by striking out the title and substituting therefor a new title, to read as follows:
     Eng. Senate Bill No. 517--A Bill to amend and reenact §33-7-9 of the code of West Virginia, 1931, as amended; and to amend and reenact §33-13-30a of said code, all relating to the valuation of annuities; establishing minimum standards for the valuation of life insurance policies; and modifying the standard nonforfeiture law for individual deferred annuities.
     On motion of Senator Chafin, the Senate concurred in the House of Delegates amendments to the bill.
     Engrossed Senate Bill No. 517, as amended by the House of Delegates, was then put upon its passage.
     On the passage of the bill, the yeas were: Bailey, Boley, Bowman, Caldwell, Chafin, Deem, Dempsey, Edgell, Facemyer, Fanning, Guills, Harrison, Helmick, Hunter, Jenkins, Kessler, Love, McCabe, McKenzie, Minard, Minear, Oliverio, Plymale, Prezioso, Ross, Rowe, Sharpe, Smith, Snyder, Sprouse, Unger, Weeks, White and Tomblin (Mr. President)--34.
     The nays were: None.
     Absent: None.
     So, a majority of all the members elected to the Senate having voted in the affirmative, the President declared the bill (Eng. S. B. No. 517) passed with its House of Delegates amended title.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the passage of
     Eng. Senate Bill No. 577, Continuing board of registration for foresters.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the passage of
     Eng. Senate Bill No. 631, Relating to state fertilizer law.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the passage of
     Eng. Senate Bill No. 671, Clarifying appeal bond procedures relating to master tobacco settlement.
     A message from The Clerk of the House of Delegates announced the amendment by that body to the title of the bill, passage as amended, and requested the concurrence of the Senate in the House of Delegates amendment, as to
     Eng. Senate Bill No. 697, Delegating motor carrier inspector duties to weight enforcement officers.
     On motion of Senator Chafin, the message on the bill was taken up for immediate consideration.
     The following House of Delegates amendment to the title of the bill was reported by the Clerk:
     On page one, by striking out the title and substituting therefor a new title, to read as follows:
     Eng. Senate Bill No. 697--A Bill to amend and reenact §24A-7-7 of the code of West Virginia, 1931, as amended, relating to authorizing the public service commission to delegate motor carrier inspector duties to weight enforcement officers and to delegate weight enforcement duties to motor carrier inspectors; and to remove the mandate that motor carrier inspectors perform a safety inspection of every commercial vehicle stopped for enforcement purposes.
     On motion of Senator Chafin, the Senate refused to concur in the foregoing House amendment to the title of the bill (Eng. S. B. No. 697) and requested the House of Delegates to recede therefrom.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate and request concurrence therein.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the adoption of
     Senate Concurrent Resolution No. 34, Designating Cass Scenic Railroad State Park's Shay No. 5 steam locomotive as official state steam locomotive and 2005 "Year of the Shay No. 5.
     A message from The Clerk of the House of Delegates announced that that body had refused to concur in the Senate amendments to, and requested the Senate to recede therefrom, as to
     Eng. Com. Sub. for House Bill No. 2088, Increasing the penalty for the manufacture, distribution or possession of certain controlled or counterfeit substances near a park.
     On motion of Senator Chafin, the Senate refused to recede from its amendments to the bill and requested the appointment of a committee of conference of three from each house on the disagreeing votes of the two houses.
     Whereupon, Senator Tomblin (Mr. President) appointed the following conferees on the part of the Senate:
     Senators White, Caldwell and Deem.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate and request concurrence therein.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the Senate amendment to, and the passage as amended, of
     Eng. Com. Sub. for House Bill No. 4027, Establishing a voluntary environmental excellence program.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the Senate amendments to, and the passage as amended, of
     Eng. Com. Sub. for House Bill No. 4104, Creating the felony crime of scanning device or reencoder fraud.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the Senate amendments to, and the passage as amended with its Senate amended title, to take effect from passage, of
     Eng. Com. Sub. for House Bill No. 4143, Creating a West Virginia center for nursing to establish a statewide strategic plan to address the nursing shortage in the state and to facilitate recruitment and retention of nurses.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the Senate amendment to, and the passage as amended, of
     Eng. House Bill No. 4157, Continuing the rural health advisory panel.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the Senate amendments, as amended by the House of Delegates, passage as amended, to take effect from passage, and requested the concurrence of the Senate in the House of Delegates amendment to the Senate amendments, as to
     Eng. Com. Sub. for House Bill No. 4193, Authorizing the Department of Environmental Protection to promulgate legislative rules.
     On motion of Senator Chafin, the message on the bill was taken up for immediate consideration.
     The following House of Delegates amendment to the Senate amendments to the bill was reported by the Clerk:
     On page one, by striking out everything after the article heading and inserting in lieu thereof the following:
§64-3-1. Department of environmental protection.
     (a) The legislative rule filed in the state register on the twenty-ninth day of July, two thousand three, authorized under the authority of section four, article five, chapter twenty-two of this code, relating to the department of environmental protection (Nox budget trading program as a means of control and reduction of nitrogen oxides from nonelectric generating units, 45 CSR 1), is authorized.
     (b) The legislative rule filed in the state register on the thirtieth day of July, two thousand three, authorized under the authority of section four, article five, chapter twenty-two of this code, relating to the department of environmental protection (emission standards for hazardous air pollutants pursuant to 40 CFR Part 61, 45 CSR 15), is authorized.
     (c) The legislative rule filed in the state register on the thirtieth day of July, two thousand three, authorized under the authority of section four, article five, chapter twenty-two of this code, relating to the department of environmental protection (standards of performance for new stationary sources pursuant to 40 CFR Part 60, 45 CSR 16), is authorized with the following amendment:
     Wherever the rule has been amended to insert the term "Division of Water and Waste Management", the existing language of the rule prior to the amendment denoting a change in the name of the agency of reference shall be retained.
     (d) The legislative rule filed in the state register on the twenty-ninth day of July, two thousand three, authorized under the authority of section four, article five, chapter twenty-two of this code, relating to the department of environmental protection (to prevent and control air pollution from hazardous waste treatment, storage or disposal facilities, 45 CSR 25), is authorized with the following amendment:
     Wherever the rule has been amended to insert the term "Division of Water and Waste Management", the existing language of the rule prior to the amendment denoting a change in the name of the agency of reference shall be retained.
     (e) The legislative rule filed in the state register on the thirty-first day of July, two thousand three, authorized under the authority of section four, article five, chapter twenty-two of this code, relating to the department of environmental protection (emission standards for hazardous air pollutants for source categories pursuant to 40 CFR Part 63, 45 CSR 34), is authorized with the following amendment:
     Wherever the rule has been amended to insert the term "Division of Water and Waste Management", the existing language of the rule prior to the amendment denoting a change in the name of the agency of reference shall be retained.
     (f) The legislative rule filed in the state register on the thirtieth day of July, two thousand three, authorized under the authority of section four, article five, chapter twenty-two of this code, relating to the department of environmental protection (requirements for determining conformity of transportation plans, programs and projects developed, funded or approved under Title 23 U. S. C. or the federal transit laws applicable to air quality implementation plans (transportation conformity), 45 CSR 36), is authorized with the following amendment:
     Wherever the rule has been amended to insert the term "Division of Water and Waste Management", the existing language of the rule prior to the amendment denoting a change in the name of the agency of reference shall be retained.
     (g) The legislative rule filed in the state register on the thirty-first day of July, two thousand three, authorized under the authority of section four, article three, chapter twenty-two of this code, modified by the department of environmental protection to meet the objections of the legislative rule-making review committee and refiled in the state register on the sixteenth day of January, two thousand four, relating to the department of environmental protection (surface mining reclamation, 38 CSR 2), is authorized.
     (h) The legislative rule filed in the state register on the first day of August, two thousand three, authorized under the authority of section five, article fifteen, chapter twenty-two of this code, modified by the department of environmental protection to meet the objections of the legislative rule-making review committee and refiled in the state register on the second day of December, two thousand three, relating to the department of environmental protection (solid waste management, 33 CSR 1), is authorized with the following amendment:
     Wherever the rule has been amended to insert the term "Division of Water and Waste Management", the existing language of the rule prior to the amendment denoting a change in the name of the agency of reference shall be retained.
     (i) The legislative rule filed in the state register on the thirty-first day of July, two thousand three, authorized under the authority of section one, article eighteen, chapter twenty-two of this code, modified by the department of environmental protection to meet the objections of the legislative rule-making review committee and refiled in the state register on the second day of December, two thousand three, relating to the department of environmental protection (hazardous waste management, 33 CSR 20), is authorized with the following amendment:
     Wherever the rule has been amended to insert the term "Division of Water and Waste Management", the existing language of the rule prior to the amendment denoting a change in the name of the agency of reference shall be retained.
     (j) The legislative rule filed in the state register on the thirty-first day of July, two thousand three, authorized under the authority of section four, article eleven, chapter twenty-two of this code, modified by the department of environmental protection to meet the objections of the legislative rule-making review committee and refiled in the state register on the twentieth day of November, two thousand three, relating to the department of environmental protection (West Virginia NPDES rule for coal mining facilities, 47 CSR 30), is authorized with the following amendment:
     Wherever the rule has been amended to insert the term "Division of Water and Waste Management", the existing language of the rule prior to the amendment denoting a change in the name of the agency of reference shall be retained.
§64-3-2. Environmental quality board.
     The legislative rule filed in the state register on the first day of August, two thousand three, under the authority of section four, article three, chapter twenty-two-b of this code, relating to the environmental quality board (requirements governing water quality standards, 46 CSR 1), is not authorized.
     (1) The legislative rule filed in the state register on the fourteenth day of April, two thousand three, and effective the twenty-fifth day of June, two thousand three, authorized under the authority of section four, article three, chapter twenty-two-b of this code, authorized by the Legislature during the regular session of the Legislature in two thousand three, relating to the environmental quality board (requirements governing water quality standards, 46 CSR 1), is reauthorized with the following amendments:
     On page seven, section 6.2.d., after the words "(requirements for Category A waters.)", by striking out the words "The manganese human health criteria shall not apply where the discharge point of the manganese is located more than five miles upstream from a known drinking water source. and inserting the following:
     "The manganese human health criterion shall only apply within the five-mile zone immediately upstream above a known public or private water supply used for human consumption.;
     On page ten, section 7.2.a.2., after the words "(to its headwaters.)" by striking out the words "Until September 1, 2004, the one-half mile zone described in this section shall not apply to the Ohio River main channel (between Brown's Island and the left descending bank) between river mile points 61.0 and 63.5. and inserting in lieu thereof the words "Until September 1, 2010, or until action by the Environmental Quality Board to revise this provision, whichever comes first, the one-half (½) mile zone described in this section shall not apply to the Ohio River main channel (between Brown's Island and the left descending bank) between river mile points 61.0 and 63.5 for the Category A criterion for iron as set forth in §8 herein. Weirton Steel Corporation shall conduct monthly monitoring of the treated water at its drinking water plant for iron and submit the results of such monitoring to the West Virginia Bureau for Public Health and the Office of Water Resources of the West Virginia Department of Environmental Protection. In addition, Weirton Steel Corporation shall submit a written report regarding the status of its drinking water plant and the issues pertaining thereto to the Environmental Quality Board on or before March 1, 2007.;
     On pages twelve and thirteen, section 7.2.d.16.2. after the words "the following instream criteria:" by striking the remainder of 7.2.d.16.2. and inserting in lieu thereof, the following:
     "Lead 14 ug/l, Daily Maximum, Temperature 100 degree F (monitored per Footnote 12 of the permit); Iron 4.0 mg/l, monthly average and 8.0 mg/l Daily Maximum (monitored per Footnote 12 of the permit). Weirton Steel Corporation shall continue to submit to the Office of Water Resources of the West Virginia Department of Environmental Protection, on an annual basis summary reports on the water quality of the discharge from Outlet 004 and the efforts made by Weirton Steel Corporation during the previous year to improve the quality of the discharge. These exceptions shall be in effect until action by the Environmental Quality Board to revise the exceptions or until July 1, 2007, whichever comes first.;
     On page thirteen, section 7.2.d.19. By adding a new paragraph designated 7.2.d.19.3 to read as follows:
     7.2.d.19.3. Except that in Ward Hollow of Davis Creek, the following site-specific numeric criterion for chloride shall apply for Category A and Category B1 (chronic aquatic life protection):310,000 ug/L.;
     On page 30, APPENDIX E, TABLE 1, column one, by striking out the words "The concentration of un-ionized ammonia (NH3) shall not exceed 50 ug/l.; and
     On page 30, APPENDIX E, TABLE 1, by striking the all the provisions of 8.2. and on page 31, by renumbering 8.2.1 as 8.2..
     (2) In addition to the forgoing amendments to the rule the environmental quality board shall, in cooperation with the regulated community and the department of environmental protection, propose for promulgation in accordance with the provisions of article three, chapter twenty-nine-a of this code, an emergency and legislative rule on or before the first day of October, two thousand four, to revise the aquatic life aluminum criteria.
     On motion of Senator Chafin, the Senate concurred in the foregoing House of Delegates amendment to the Senate amendments to the bill.
     Engrossed Committee Substitute for House Bill No. 4193, as amended, was then put upon its passage.
     On the passage of the bill, the yeas were: Bailey, Boley, Bowman, Caldwell, Chafin, Deem, Dempsey, Edgell, Facemyer, Fanning, Guills, Harrison, Helmick, Hunter, Jenkins, Kessler, Love, McCabe, McKenzie, Minard, Minear, Oliverio, Plymale, Prezioso, Ross, Rowe, Sharpe, Smith, Snyder, Sprouse, Unger, Weeks, White and Tomblin (Mr. President)--34.
     The nays were: None.
     Absent: None.
     So, a majority of all the members elected to the Senate having voted in the affirmative, the President declared the bill (Eng. Com. Sub. for H. B. No. 4193) passed with its Senate amended title.
     Senator Chafin moved that the bill take effect from passage.
     On this question, the yeas were: Bailey, Boley, Bowman, Caldwell, Chafin, Deem, Dempsey, Edgell, Facemyer, Fanning, Guills, Harrison, Helmick, Hunter, Jenkins, Kessler, Love, McCabe, McKenzie, Minard, Minear, Oliverio, Plymale, Prezioso, Ross, Rowe, Sharpe, Smith, Snyder, Sprouse, Unger, Weeks, White and Tomblin (Mr. President)--34.
     The nays were: None.
     Absent: None.
     So, two thirds of all the members elected to the Senate having voted in the affirmative, the President declared the bill (Eng. Com. Sub. for H. B. No. 4193) takes effect from passage.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the Senate amendment to, and the passage as amended, to take effect from passage, of
     Eng. Com. Sub. for House Bill No. 4200, Authorizing the department of military affairs and public safety to promulgate legislative rules.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the Senate amendment to, and the passage as amended, of
     Eng. Com. Sub. for House Bill No. 4299, Modifying the West Virginia contractor licensing act and updating certain terms.
     A message from The Clerk of the House of Delegates announced the concurrence by that body in the Senate amendments to, and the passage as amended, of
     Eng. Com. Sub. for House Bill No. 4649, Providing for greater efforts for instate placement of children in the custody of the Department of Health and Human Services.
     A message from The Clerk of the House of Delegates announced the passage by that body, to take effect from passage, and requested the concurrence of the Senate in the passage of
     Eng. House Bill No. 4752--A Bill making a supplementary appropriation from the balance of moneys remaining unappropriated for the fiscal year ending the thirtieth day of June, two thousand four, to the department of tax and revenue - division of banking, fund 3041, fiscal year 2004, organization 0303, all supplementing and amending the appropriation for the fiscal year ending the thirtieth day of June, two thousand four.
     Referred to the Committee on Finance.
     A message from The Clerk of the House of Delegates announced the passage by that body, to take effect from passage, and requested the concurrence of the Senate in the passage of
     Eng. House Bill No. 4754--A Bill making a supplementary appropriation of federal funds out of the treasury from the balance of moneys remaining unappropriated for the fiscal year ending the thirtieth day of June, two thousand four, to the department of transportation - division of motor vehicles, fund 8787, fiscal year 2004, organization 0802, all supplementing and amending the appropriation for the fiscal year ending the thirtieth day of June, two thousand four.
     Referred to the Committee on Finance.
     A message from The Clerk of the House of Delegates announced the passage by that body, to take effect from passage, and requested the concurrence of the Senate in the passage of
     Eng. House Bill No. 4755--A Bill making a supplementary appropriation of federal funds out of the treasury from the balance of federal moneys remaining unappropriated for the fiscal year ending the thirtieth day of June, two thousand four, to a new item of appropriation designated to the coal heritage highway authority, fund 8861, fiscal year 2004, organization 0942, supplementing and amending chapter twenty, acts of the Legislature, regular session, two thousand three, known as the budget bill.
     Referred to the Committee on Finance.
     A message from The Clerk of the House of Delegates announced the passage by that body, to take effect from passage, and requested the concurrence of the Senate in the passage of
     Eng. House Bill No. 4756--A Bill making a supplementary appropriation from the balance of moneys remaining unappropriated for the fiscal year ending the thirtieth day of June, two thousand four, to the West Virginia state board of examiners for licensed practical nurses, fund 8517, fiscal year 2004, organization 0906, all supplementing and amending the appropriation for the fiscal year ending the thirtieth day of June, two thousand four.
     Referred to the Committee on Finance.
     A message from The Clerk of the House of Delegates announced the passage by that body, to take effect from passage, and requested the concurrence of the Senate in the passage of
     Eng. House Bill No. 4757--A Bill making a supplementary appropriation of federal funds out of the treasury from the balance of federal moneys remaining unappropriated for the fiscal year ending the thirtieth day of June, two thousand four, to the department of military affairs and public safety - division of criminal justice services, fund 8803, fiscal year 2004, organization 0620, all supplementing and amending the appropriation for the fiscal year ending the thirtieth day of June, two thousand four.
     Referred to the Committee on Finance.
     A message from The Clerk of the House of Delegates announced the passage by that body, to take effect from passage, and requested the concurrence of the Senate in the passage of
     Eng. House Bill No. 4758--A Bill making a supplementary appropriation of federal funds out of the treasury from the balance of federal moneys remaining unappropriated for the fiscal year ending the thirtieth day of June, two thousand four, to the department of military affairs and public safety - division of criminal justice services - juvenile accountability incentive, fund 8829, fiscal year 2004, organization 0620, all supplementing and amending the appropriation for the fiscal year ending the thirtieth day of June, two thousand four.
     Referred to the Committee on Finance.
     A message from The Clerk of the House of Delegates announced the adoption by that body and requested the concurrence of the Senate in the adoption of
     House Concurrent Resolution No. 65--Urging the United States Corps of Engineers and the West Virginia Conservation Agency to address the issue of flooding in Wyoming County by dredging all flood-prone waterways.
     Whereas, Heavy rainfalls in Wyoming County have caused widespread flooding with consequent property damage and human tragedy; and
     Whereas, The waterways of Wyoming County are regularly reduced in capacity by natural processes such as stream bank sloughing and the accumulation of natural woody debris, as well as refuse dumping; and
     Whereas, Those waterways whose channels have been reduced in capacity are primary contributors to the frequency, extent and severity of flooding; and
     Whereas, Many citizens who live near or adjacent to these streams live in fear of floodwaters inundating their homes and businesses; and
     Whereas, During every heavy rain, elderly, frail and isolated Wyoming County residents fear that clogged waterways will leave them vulnerable to property damage which could have been prevented by dredging; and
     Whereas, Scientific hydrologic studies have established that the combination of extraordinary rainfall on saturated soil, combined with a reduction in stream channel capacity, determines the extent and magnitude of flooding in urban, suburban and rural landscapes; and
     Whereas, Individuals and businesses are no longer permitted to clean and clear impediments from natural watercourses; therefore be it
     Resolved by the Legislature of West Virginia:
     That the United States Corps of Engineers, whose primary mission is the prevention of flooding, and the West Virginia Conservation Agency, who has taken the initiative in charting a new course of flood damage reduction and floodplain management in West Virginia, are hereby requested to address the issue of flooding in Wyoming County by dredging all flood-prone waterways; and, be it
     Further Resolved, That the Clerk is hereby directed to forward a copy of this resolution to the United States Corps of Engineers,
the West Virginia Conservation Agency and the West Virginia congressional delegation.
     Referred to the Committee on Natural Resources.
     A message from The Clerk of the House of Delegates announced the adoption by that body and requested the concurrence of the Senate in the adoption of
     House Concurrent Resolution No. 72--Requesting the Joint Committee on Government and Finance to conduct a study to determine the ability and feasibility of the sheriff's department to supervise home incarceration of convicted offenders.
     Whereas, Currently, the county commission, with approval of the circuit court, employs a person, subject to supervision of the sheriff, as a home incarceration supervisor to administer the program and supervise offenders; and
     Whereas, Providing for the sheriff's department to employ a person as a home incarceration supervisor, with consent of the county commission and the approval of the circuit court, may have a closer nexus and be more beneficial by allowing the program to operate more efficiently, effectively and inexpensively; and
     Whereas, The supervisory authority of the sheriff's department would include the proper monitoring and supervision of offenders on home incarceration, the establishment of policies related to the daily operation, the evaluation of the work performance of all home incarceration supervisors and all other authority for the proper and orderly administration of the program within the county; therefore, be it
     Resolved by the Legislature of West Virginia:
     
That the Joint Committee on Government and Finance is hereby requested to conduct a study to determine the ability and feasibility of the sheriff's department to supervise home incarceration of convicted offenders; and, be it
     Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2005, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it
     Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.
     Referred to the Committee on Rules.
     A message from The Clerk of the House of Delegates announced the adoption by that body and requested the concurrence of the Senate in the adoption of
     House Concurrent Resolution No. 77--Directing the Joint Committee on Government and Finance to make a study on the instructional term.
     Whereas, A primary goal in establishing a calendar for the instructional term of schools is to provide sufficient time for delivery of the required curriculum at a pace at which the students should be able to master the material; and
     Whereas, Once a calendar is established for the instructional term, some of the scheduled instructional days may need to be canceled due to random events, such as severe weather conditions, natural disasters, infrastructure breakdowns and other emergencies, of which some number of these cancellations may be anticipated based on historical experience; and these cancellations are necessary to protect the health and safety of the students; and
     Whereas, The present parameters established for a calendar for the instructional term require no less than 180 separate instructional days, require 20 noninstructional days, restrict the dates for beginning and ending the instructional term as well as its duration, limit when certain of the required days may be scheduled in the calendar and require certain of the days to be rescheduled to make up for instructional days canceled; and
     Whereas, Variables other than the number of instructional days in school calendar also affect the time available throughout the instructional term for delivering the required curriculum, including variables such as the length of the school day; therefore, be it
     Resolved by the Legislature of West Virginia:
     That the Joint Committee on Government and Finance is hereby directed to make a study on the instructional term; and, be it
     Further Resolved, That the issues considered in the study should include, but should not be limited to:
     (1) Consideration of whether the amount of required instructional time within an instructional term may be a more equitable and creditable standard than the number of required instructional days and, if so, whether the standard should reflect the "time on task" or the length of the instructional day;
     (2) Consideration of whether and, if so, how instructional time in excess of the required minimums accruing during the course of an instructional term should be credited, in whole or in part, as time made up for scheduled instructional days that are canceled if the current standard for a required minimum number of instructional days is maintained; and
     (3) Consideration of how the required days or times required for instruction in the secondary schools may be allocated between the 1st and 2nd semesters to permit the conclusion of the 1st semester before the first day of January; and, be it
     Further Resolved, That the said Joint Committee on Government and Finance shall conduct the study and prepare a report of its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it
     Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2005, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it
     Further Resolved, That the expenses necessary to conduct this study, to prepare a report and draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.
     Referred to the Committee on Rules.
Executive Communications

     Senator Tomblin (Mr. President) laid before the Senate the following communication from His Excellency, the Governor, regarding annual reports, which communication was received:
STATE OF WEST VIRGINIA

OFFICE OF THE GOVERNOR

CHARLESTON

March 12, 2004

Senate Executive Message No. 5
The Honorable Earl Ray Tomblin
President, Senate of West Virginia
State Capitol
Charleston, West Virginia
Dear President Tomblin:
     Pursuant to the provisions of §5-1-20 of the Code of West Virginia, I hereby certify that the following 2002-2003 annual reports have been received in the Office of the Governor:
      1.  Accountancy, West Virginia Board of;
      2.  Aeronautics Commission, West Virginia Department of Transportation;
      3.  Affordable Housing Trust Fund, West Virginia;
      4.  Architects, West Virginia State Board of;
      5.  Association of Counties, West Virginia;
      6.  Attorney General, Office of the;
      7.  Banking, West Virginia Division of, West Virginia Department of Tax and Revenue;
      8.  Barbers and Cosmetologists, Board of, West Virginia Department of Health and Human Resources;
      9.  Blind and Severely Disabled, West Virginia Society for;
     10.  Cancer Registry, West Virginia Department of Health and Human Resources;
     11.  Children and Families, Governor's Cabinet on;
     12.  Children's Health Insurance Program, West Virginia Department of Administration;
     13.  Chiropractic, West Virginia Board of;
     14.  Coal Mine Health and Safety, Board of, and Coal Mine Safety Technical Review Committee, West Virginia Bureau of Commerce;
     15.  Commodities and Services from the Handicapped, Committee for the Purchase of
     16.  Community Corrections Act, Governor's Committee on Crime, Delinquency and Correction, Division of Criminal Justice Services, West Virginia Department of Military Affairs and Public Safety;
     17.  Consumer Advocate Division, West Virginia Public Service Commission;
     18.  Consumer Protection and Antitrust Divisions, West Virginia Attorney General's Office;
     19.  Corrections, Division of, West Virginia Department of Military Affairs and Public Safety;
     20.  Court of Claims, West Virginia;
     21.  Court of Claims, Crime Victims Compensation Fund, West Virginia;
     22.  Dental Examiners, West Virginia Board of;
     23.  Economic Development Authority, West Virginia;
     24.  Education and State Employees Grievance Board, West Virginia;
     25.  Education, Board of, and Education, Department of, West Virginia;
     26.  Examiners in Counseling, West Virginia Board of;
     27.  Employment Programs, West Virginia Bureau of;
     28.  Environmental Protection, West Virginia Department of;
     29.  Equal Employment Opportunity Office, West Virginia;
     30.  Family Support, Bureau for Behavioral Health and Health Facilities, West Virginia Department of Health and Human Resources;
     31.  Fire Marshal, West Virginia State;
     32.  Forestry, Division of, West Virginia Bureau of Commerce;
     33.  Funeral Service Examiners, West Virginia Board of;
     34.  General Administration Fund, West Virginia Division of Rehabilitation Services;
     35.  Governor's Youth Advisory Board, West Virginia Human Rights Commission;
     36.  Health Care Authority, West Virginia Department of Health and Human Resources;
     37.  Holocaust Education Commission, West Virginia Department of Education and the Arts;
     38.  Housing Development Fund, West Virginia;
     39.  Human Rights Commission, State of West Virginia;
     40.  Interstate Pest Control Compact, State of West Virginia Department of Agriculture;
     41.  Investment Management Board, West Virginia;
     42.  Juvenile Justice Subcommittee, Governor's Committee on Crime, Delinquency and Correction, Division of Criminal Justice Services, West Virginia Department of Military Affairs and Public Safety;
     43.  Juvenile Services, Division of, West Virginia Department of Military Affairs and Public Safety;
     44.  Labor, Division of, West Virginia Bureau of Commerce;
     45.  Land Surveyors, West Virginia State Board of Examiners of;
     46.  Law-Enforcement Training Subcommittee, Governor's Committee on Crime, Delinquency and Correction, Division of Criminal Justice Services, West Virginia Department of Military Affairs and Public Safety;
     47.  Library Commission, West Virginia;
     48.  Licensed Practical Nurses, West Virginia State Board of Examiners for;
     49.  Long-term Care, Office of Health Facility Licensure and Certification, Department of Health and Human Resources;
     50.  Massage Therapy, West Virginia Licensure Board of;
     51.  Medicine, West Virginia Board of (Volumes I and II);
     52.  Mine Inspectors Examining Board, West Virginia;
     53.  Motor Vehicles, Division of, West Virginia Department of Transportation;
     54.  Municipal Bond Commission, West Virginia;
     55.  Natural Resources, West Virginia Division of;
     56.  National and Community Service, West Virginia Commission for;
     57.  Neighborhood Investment Program, West Virginia Development Office;
     58.  Nursing Home Administrators Licensing Board, West Virginia;
     59.  Nursing Shortage Study Commission, Board of Examiners for Registered Professional Nurses, West Virginia;
     60.  Occupational Therapy, West Virginia Board of;
     61.  Oil and Gas Inspectors' Examining Board, West Virginia Department of Environmental Protection;
     62.  Optometry, West Virginia Board of;
     63.  Osteopathy, West Virginia Board of;
     64.  Parole Board, West Virginia Department of Military Affairs and Public Safety;
     65.  Personnel, Division of, West Virginia Department of Administration;
     66.  Physical Therapy, West Virginia Board of;
     67.  Planning and Development Council, Region VII, West Virginia;
     68.  Poison Center, Robert C. Byrd Health Sciences Center, Charleston;
     69.  Professional Engineers, West Virginia State Board of Registration for;
     70.  Psychologists, West Virginia Board of Examiners of;
     71.  Public Defender Services, West Virginia Department of Administration;
     72.  Public Service Commission;
     73.  Purchasing, Division of, West Virginia Department of Administration;
     74.  Radiologic Technology Board of Examiners;
     75.  Real Estate Commission, West Virginia;
     76.  Registered Professional Nurses, West Virginia Board of Examiners for;
     77.  Risk and Insurance Management, Board of, West Virginia Department of Administration;
     78.  Senior Services, West Virginia Bureau of;
     79.  Social Work Examiners, West Virginia Board of;
     80.  Speech-Language Pathology and Audiology, West Virginia Board of Examiners for;
     81.  State Police, West Virginia Department of Military Affairs and Public Safety;
     82.  Technology, Governor's Office of;
     83.  Veterans' Affairs, Division of, West Virginia Department of Military Affairs and Public Safety;
     84.  Veterinary Medicine, West Virginia Board of;
     85.  Water and Waste Managements' Groundwater Program, West Virginia Department of Environmental Protection;
     86.  Water Development Authority of West Virginia, Bureau of Commerce;
     87.  Workers' Compensation Office of Judges, West Virginia;
     88.  Workforce Investment Board, Inc., Northern Panhandle;
     89.  Workforce Investment Division, Development Office, West Virginia Bureau of Commerce;
                              Very truly yours,
                               Bob Wise,
                               Governor.
     Senator Tomblin (Mr. President) laid before the Senate, the following communication from His Excellency, the Governor, which was read by the Clerk:
STATE OF WEST VIRGINIA

OFFICE OF THE GOVERNOR

CHARLESTON

March 11, 2004

The Honorable Earl Ray Tomblin
President, Senate of West Virginia
State Capitol
Charleston, West Virginia
Dear President Tomblin:
     While I do not feel a compelling need for this legislation, after much consideration I have decided to sign Enrolled Committee Substitute for Senate Bill No. 209 into law. This bill is somewhat improved over similar legislation I vetoed last year.
     Indeed, because I vetoed similar legislation last year, I believe it appropriate to explain the modification in this year's version of the legislation which encouraged me to sign it. I interpret Enrolled Committee Substitute for Senate Bill No. 209 to allow the executive branch to enter into an agreement or contract for an interest in property without prior legislative approval. I further interpret its provisions to require notice of the terms of that agreement thirty days prior to consummation of the sale or lease. Thus, a review by the Legislature may occur after the executive branch enters into the agreement or contract, but before it actually commences the lease or acquires the property.
     In contrast, last year's bill required "prior review" by a legislative committee before an executive branch agency even entered an agreement or contract. Instead, this year's bill does not require prior review, nor authorization, of a contract or agreement that the executive branch agency has already executed, thus avoiding interference by the legislative branch with the prerogatives of the executive branch. For this reason, I do not believe this would clearly violate the constitutional Separation of Powers Doctrine.
     For the reasons stated above, I have signed Enrolled Committee Substitute for Senate Bill No. 209 into law.
                              Very truly yours,
                               Bob Wise,
                               Governor.
     On motion of Senator Chafin, the Senate recessed for five minutes to permit Dino Zaferatos to address the Senate on behalf of the Walter Rollins Scholars, Jeremy Farley on behalf of the Judith A. Herndon Fellowship Program and Laura Scott on behalf of the Legislative Information Journalism Internship Program.
     Upon expiration of the recess, the Senate reconvened and proceeded to the fifth order of business.
     Senator Plymale, from the committee of conference on matters of disagreement between the two houses, as to
     Eng. Senate Bill No. 448, Relating to higher education advisory boards generally.
     Submitted the following report, which was received:
     Your committee of conference on the disagreeing votes of the two houses as to the amendments to Engrossed Senate Bill No. 448 having met, after full and free conference, have agreed to recommend and do recommend to their respective houses, as follows:
     That both houses recede from their respective positions as to the amendments of the House and Senate, striking out everything after the enacting clause, and agree to the same as follows:
     That §18B-1A-8 of the code of West Virginia, 1931, as amended, be repealed; that §18B-1B-7 of said code be repealed; that §18B-3C-7 of said code be repealed; that §18B-6-2a, §18B-6-3a, §18B-6-4a and §18B-6-4b of said code be repealed; that §18-2-1 of said code be amended and reenacted; that §18B-1-1a, §18B-1-2, §18B-1-3 and §18B-1-6 of said code be amended and reenacted; that §18B-1A-2, §18B-1A-3, §18B-1A-4, §18B-1A-5 and §18B-1A-6 of said code be amended and reenacted; that §18B-1B-1, §18B-1B-2, §18B-1B-4, §18B-1B-5 and §18B-1B-6 of said code be amended and reenacted; that said code be amended by adding thereto a new section, designated §18B-1B-11; that §18B-2A-1 and §18B-2A-4 of said code be amended and reenacted; that said code be amended by adding thereto a new section, designated §18B-2A-6; that §18B-2B-1, §18B-2B-2, §18B-2B-3, §18B-2B-4, §18B-2B-5, §18B-2B-6, §18B-2B-7 and §18B-2B-8 of said code be amended and reenacted; that said code be amended by adding thereto a new section, designated §18B-2B-6a; that §18B-2C-3 and §18B-2C-4 of said code be amended and reenacted; that §18B-3C-2, §18B-3C-3, §18B-3C-4, §18B-3C-5, §18B-3C-6, §18B-3C-8, §18B-3C-9, §18B-3C-10 and §18B-3C-12 of said code be amended and reenacted; that §18B-4-1, §18B-4-2 and §18B-4-7 of said code be amended and reenacted; that §18B-5-4 of said code be amended and reenacted; that §18B-6-1 and §18B-6-1a of said code be amended and reenacted; that said code be amended by adding thereto five new sections, designated §18B-6-2, §18B-6-3, §18B-6-4, §18B-6-5 and §18B-6-6; that §18B-7-1 of said code be amended and reenacted; that said code be amended by adding thereto a new section, designated §18B-7-12; that §18B-9-1 and §18B-9-2 of said code be amended and reenacted; that §18B-10-2 of said code be amended and reenacted; and that said code be amended by adding thereto a new section, designated §18B-10-1b, all to read as follows:
CHAPTER 18. EDUCATION.

ARTICLE 2. STATE BOARD OF EDUCATION.

§18-2-1. Creation; composition; appointment, qualifications, terms and removal of members; offices.

     There shall be is a state board of education, to be known as the West Virginia board of education, which shall be is a corporation and as such may contract and be contracted with, plead and be impleaded, sue and be sued, and have and use a common seal. The state board shall consist consists of twelve members, of whom one shall be is the state superintendent of schools, ex officio; one of whom shall be is the chancellor of the board of trustees higher education policy commission, ex officio; and one of whom shall be is the chancellor of the board of directors West Virginia council for community and technical college education, ex officio, none of whom shall be is entitled to vote. The other nine members shall be are citizens of the state, appointed by the governor, by and with the advice and consent of the Senate, for overlapping terms of nine years. except that the original appointments shall be for terms of one, two, three, four, five, six, seven, eight and nine years, respectively. Terms of office shall begin on the fifth day of November of the appropriate year and end on the fourth day of November of the appropriate year. At least two, but not more than three, members shall be are appointed from each congressional district.
     No more than five of the appointive members shall may belong to the same political party, and no person shall be is eligible for appointment to membership on the state board who is a member of any political party executive committee or holds any other public office or public employment under the federal government or under the government of this state or any of its political subdivisions, or who is an appointee or employee of the board. Members shall be are eligible for reappointment. Any vacancy on the board shall be filled by the governor by appointment for the unexpired term.
     Notwithstanding the provisions of section four, article six, chapter six of this code, no a member of the state board may not be removed from office by the governor except for official misconduct, incompetence, neglect of duty or gross immorality and then only in the manner prescribed by law for the removal by the governor of state elective officers.
     Before exercising any authority or performing any duties as a member of the state board, each member shall qualify as such by taking and subscribing to the oath of office prescribed by section five, article IV of the constitution of West Virginia, the certificate whereof shall be filed with the secretary of state. A suitable office in the state department of education at the state capitol shall be provided for the use of use by the state board.
CHAPTER 18B. HIGHER EDUCATION.

ARTICLE 1. GOVERNANCE.

§18B-1-1a. Goals for post-secondary education.
     (a) Findings. -- The Legislature finds that post-secondary education is vital to the future of West Virginia. For the state to realize its considerable potential in the twenty-first century, it must have a system for the delivery of post-secondary education which is competitive in the changing national and global environment, is affordable within the fiscal constraints of the state and for the state's residents to participate and has the capacity to deliver the programs and services necessary to meet regional and statewide needs.
     (1) West Virginia leads a national trend toward an aging population wherein a declining percentage of working-age adults will be expected to support a growing percentage of retirees. Public school enrollments statewide have declined and will continue to do so for the foreseeable future with a few notable exceptions in growing areas of the state. As the state works to expand and diversify its economy, it is vitally important that young people entering the work force from our education systems have the knowledge and skills to succeed in the economy of the twenty-first century. It is equally important, however, that working-age adults who are the large majority of the current and potential work force also possess the requisite knowledge and skills and the ability to continue learning throughout their lifetimes. The reality for West Virginia is that its future rests not only on how well its youth are educated, but also on how well it educates its entire population of any age.
     (2) Post-secondary education is changing throughout the nation. Place-bound adults, employers and communities are demanding education and student services that are accessible at any time, at any place and at any pace. Institutions are seizing the opportunity to provide academic content and support services on a global scale by designing new courseware, increasing information technology-based delivery, increasing access to library and other information resources and developing new methods to assess student competency rather than "seat time" as the basis for recognizing learning, allocating resources and ensuring accountability. In this changing environment, the state must take into account the continuing decline in the public school-age population, the limits of its fiscal resources and the imperative need to serve the educational needs of working-age adults. West Virginia cannot afford to finance quality higher education systems that aspire to offer a full array of programs while competing among themselves for a dwindling pool of traditional applicants. The competitive position of the state and its institutions will depend fundamentally on its capacity to reinforce the quality and differentiation of its institutions through policies that encourage focus and collaboration.
     (3) The current accountability system is exceptionally complicated and largely defines accountability in terms of institutional procedures. It also is not The accountability system in West Virginia must be well equipped to address cross-cutting issues such as regional economic and work force development, community and technical college services, collaboration with the public schools to improve quality and student participation rates, access to graduate education and other broad issues of state interest. Severe fiscal constraints require West Virginia to make maximum use of existing assets to meet new demands. New investments must be targeted to those initiatives designed to enhance and reorient existing capacity, provide incentives for collaboration and focus on the new demands. It must have a single accountability point for developing, building consensus around and sustaining attention to the public policy agenda and for allocating resources consistent with this policy agenda.
     (4) The state should make the best use of the expertise that private institutions of higher education can offer and recognize the importance of their contributions to the economic, social and cultural well-being of their communities.
     (5) The system of public higher education should be open and accessible to all persons, including persons with disabilities and other persons with special needs.
     (b) Compact with higher education. -- In pursuance of these findings, it is the intent of the Legislature to engage higher education in a statewide compact for the future of West Virginia, as provided in article one-a of this chapter, that focuses on a public policy agenda that includes, but is not limited to, the following:
     (1) Diversifying and expanding the economy of the state;
     (2) Increasing the competitiveness of the state's work force and the availability of professional expertise by increasing the number of college degrees produced to the level of the national average and significantly improving the level of adult functional literacy; and
     (3) Creating a system of higher education that is equipped to succeed at producing these results.
     (c) Elements of the compact with higher education. -- It is the intent of the Legislature that the compact with higher education include the following elements:
     (1) A step-by-step process, as provided in articles one-b and three-c of this chapter, which will enable the state to achieve its public policy agenda through a system of higher education equipped to assist in producing the needed results. This process includes, but is not limited to, separate institutional compacts with state institutions of higher education that describe changes in institutional missions in the areas of research, graduate education, admission standards, community and technical college education and geographical areas of responsibility to accomplish the following:
     (A) A capacity within higher education to conduct research to enhance West Virginia in the eyes of the larger economic and educational community and to provide a basis for West Virginia's improved capacity to compete in the new economy through research oriented to state needs;
     (B) Access to stable and continuing graduate-level programs in every region of the state, particularly in teacher education related to teaching within a subject area to improve teacher quality;
     (C) Universities, and colleges and community and technical colleges that have focused missions, their own individual points of distinction and quality and strong links with the educational, economic and social revitalization of their regions and the state of West Virginia;
     (D) Greater access and capacity to deliver technical education, work force development and other higher education services to place-bound adults, thus improving the general levels of post-secondary educational attainment and literacy;
     (E) Independently accredited community and technical colleges in every region of the state to the extent possible that:
     (i) Assess regional needs;
     (ii) Ensure access to comprehensive community and technical college and work force development services within each of their respective regions;
     (iii) Convene and act serve as a catalyst for local action in collaboration with regional leaders, employers and other educational institutions;
     (iv) Provide and, as necessary, broker educational services;
     (v) Provide necessary student services;
     (vi) Fulfill such other aspects of the community and technical college mission and general provisions for community and technical colleges as provided for in article three-c of this chapter; and
     (vii) Make maximum Maximize use of existing infrastructure and resources within their regions to increase access, including, but not limited to, vocational technical centers, schools, libraries, industrial parks and work sites.
     (2) Providing additional resources, subject to availability and appropriation by the Legislature, as provided in article one-a of this chapter, to make the state institutions of higher education more competitive with their peers, to assist them in accomplishing the elements of the public policy agenda and to ensure the continuity of academic programs and services to students.
     (3) Establishing a process for the allocation of additional resources which focuses on achieving the elements of the public policy agenda and streamlines accountability for the step-by-step progress toward achieving these elements within a reasonable time frame as provided in article one-a of this chapter.
     (4) Providing additional flexibility to the state institutions of higher education by making permanent the exceptions granted to higher education relating to travel rules and vehicles pursuant to sections forty-eight through fifty-three, inclusive, article three, chapter five-a of this code and section eleven, article three, chapter twelve of this code.
     (5) Revising the higher education governance structure to make it more responsive to state and regional needs.
     (d) General goals for post-secondary education. -- In pursuance of the findings and the development of institutional compacts with higher education for the future of West Virginia pursuant to article one-a of this chapter, it is the intent of the Legislature to establish general goals for post-secondary education and to have the commission and council report the progress toward achieving these goals in the higher education report card required pursuant to section eight, article one-b of this chapter and, where applicable, have the goals made a part of the institutional compacts. The Legislature establishes the general goals as follows:
     (1) The overall focus of education is on a lifelong process which is to be as seamless as possible at all levels and is to encourage citizens of all ages to increase their knowledge and skills. Efforts in pursuit of this goal include, but are not limited to, the following:
     (A) Collaboration, coordination and interaction between public and post-secondary education to:
     (i) Improve the quality of public education, particularly with respect to ensuring that the needs of public schools for teachers and administrators is are met;
     (ii) Inform public school students, their parents and teachers of the academic preparation that students need to be prepared adequately to succeed in their selected fields of study and career plans, including academic career fairs; and
     (iii) Improve instructional programs in the public schools so that the students enrolling in post-secondary education are adequately prepared;
     (B) Collaboration, coordination and interaction between among public and post-secondary education, the governor's council on literacy and the governor's work force investment office to promote the effective and efficient utilization of work force investment and other funds to:
     (i) Provide to individuals and employers greatly improved access to information and services for individuals and employers on education and training programs, financial assistance, labor markets and job placement;
     (ii) Increase awareness among the state's citizens of the opportunities available to them to improve their basic literacy, work force and post-secondary skills and credentials; and
     (iii) Help improve their Improve citizens' motivation to take advantage of available opportunities by making the system more seamless and user friendly;
     (C) Collaboration, coordination and interaction between public and post-secondary education on the development of seamless curriculum in technical preparation programs of study between the secondary and post-secondary levels; and
     (D) Opportunities for advanced high school students to obtain college credit prior to high school graduation.
     (2) The number of degrees produced per capita by West Virginia institutions of higher education is at the national average. Efforts in pursuit of this goal include, but are not limited to, the following:
     (A) Collaboration, coordination and interaction between public and post-secondary education, the governor's council on literacy and the governor's work force investment office to promote to individuals of all ages the benefits of increased post-secondary educational attainment;
     (B) Assistance in overcoming the financial barriers to post-secondary education for both traditional and nontraditional students;
     (C) An environment within post-secondary education that is student-friendly and that encourages and assists students in the completion of degree requirements within a reasonable time frame. The environment also should expand participation for the increasingly diverse student population;
     (D) A spirit of entrepreneurship and flexibility within post-secondary education that is responsive to the needs of the current work force and other nontraditional students for upgrading and retraining college-level skills; and
     (E) The expanded use of technology for instructional delivery and distance learning.
     (3) All West Virginians, whether traditional or nontraditional students, displaced workers or those currently employed, have access to post-secondary educational opportunities through their community and technical colleges, colleges and universities which:
     (A) Are relevant and affordable;
     (B) Allow them to gain transferrable credits and associate or higher level degrees;
     (C) Provide quality technical education and skill training; and
     (D) Are responsive to business, industry, labor and community needs.
     (4) State institutions of higher education prepare students to practice good citizenship and to compete in a global economy in which good jobs require an advanced level of education and skill which far surpasses former requirements. Efforts in pursuit of this goal include, but are not limited to, the following:
     (A) The development of entrepreneurial skills through programs such as the rural entrepreneurship through action learning (REAL) program, which include practical experience in market analysis, business plan development and operations;
     (B) Elements of citizenship development are included across the curriculum in core areas, including practical applications such as community service, civic involvement and participation in charitable organizations and in the many opportunities for the responsible exercise of citizenship that higher education institutions provide;
     (C) Students are provided opportunities for internships, externships, work study and other methods to increase their knowledge and skills through practical application in a work environment;
     (D) College graduates meet or exceed national and international standards for skill levels in reading, oral and written communications, mathematics, critical thinking, science and technology, research and human relations;
     (E) College graduates meet or exceed national and international standards for performance in their fields through national accreditation of programs and through outcomes assessment of graduates; and
     (F) Admission and exit standards for students, professional staff development, program assessment and evaluation and other incentives are used to improve teaching and learning.
     (5) State institutions of higher education exceed peer institutions in other states in measures of institutional productivity and administrative efficiency. Efforts in pursuit of this goal include, but are not limited to:
     (A) The establishment of systematic ongoing mechanisms for each state institution of higher education to set goals, to measure the extent to which those goals are met and to use the results of quantitative evaluation processes to improve institutional effectiveness;
     (B) The combination and use of resources, technology and faculty to their maximum potential in a way that makes West Virginia higher education more productive than its peer institutions in other states while maintaining educational quality; and
     (C) The use of systemic program review to determine how much duplication is necessary to maintain geographic access and to eliminate unnecessary duplication.
     (6) Post-secondary education enhances state efforts to diversify and expand the economy of the state. Efforts in pursuit of this goal include, but are not limited to, the following:
     (A) The focus of resources on programs and courses which offer the greatest opportunities for students and the greatest opportunity for job creation and retention in the state;
     (B) The focus of resources on programs supportive of West Virginia employment opportunities and the emerging high-technology industries;
     (C) Closer linkages among higher education and business, labor, government and community and economic development organizations; and
     (D) Clarification of institutional missions and shifting of resources to programs which meet the current and future work force needs of the state.
     (7) Faculty and administrators are compensated on a competitive level at a level competitive with peer institutions to attract and keep quality personnel at state institutions of higher education.
     (8) The tuition and fee levels for in-state students are competitive with those of peer institutions and the tuition and fee levels for out-of-state students are set at a level which at the least covers the full cost of instruction.   
§18B-1-2. Definitions.
     The following words when used in this chapter and chapter eighteen-c of this code have the meaning hereinafter ascribed to them unless the context clearly indicates a different meaning:
     (a) Effective the first day of July, two thousand five, "regional campus" means West Virginia university at Parkersburg and West Virginia university institute of technology.
     (b)"Governing boards" or "boards" means the institutional boards of governors created pursuant to subsection (b), section one, article two-a of this chapter;
     (c) "Freestanding community and technical colleges" means southern West Virginia community and technical college, West Virginia northern community and technical college and eastern West Virginia community and technical college which shall may not be operated as branches or off-campus locations of any other state institution of higher education;
     (d) "Community college" or "community colleges" means community and technical college or colleges as those terms are defined in this section;
     (e) "Community and technical college", in the singular or plural, means the freestanding community and technical colleges and other state institutions of higher education which have defined community and technical college responsibility districts and programs in accordance with the provisions of sections four and six, article three-c of this chapter deliver community and technical college education. This definition includes southern West Virginia community and technical college, West Virginia northern community and technical college, eastern West Virginia community and technical college, New River community and technical college, West Virginia university at Parkersburg, the community and technical college at West Virginia university institute of technology, the community and technical college of Shepherd, Fairmont state community and technical college, Marshall community and technical college and West Virginia state community and technical college;
     (f) "Community and technical college education" means the programs, faculty, administration and funding associated with the mission of community and technical colleges as provided in article three-c of this chapter;
     (g) "Essential conditions" means those conditions which shall be met by community and technical colleges as provided in section three, article three-c of this chapter;
     (h) "Higher education institution" means any institution as defined by Sections 401(f), (g) and (h) of the federal Higher Education Facilities Act of 1963, as amended;
     (i) "Higher education policy commission", "policy commission" or "commission" means the commission created pursuant to section one, article one-b of this chapter;
     (j) "Chancellor for higher education" means the chief executive officer of the higher education policy commission employed pursuant to section five, article one-b of this chapter;
     (k) "Chancellor for community and technical college education" means the chief executive officer of the West Virginia council for community and technical college education employed pursuant to section three, article two-b of this chapter;
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(l) "Chancellor" means the chancellor for higher education where the context refers to a function of the higher education policy commission. "Chancellor" means chancellor for community and technical college education where the context refers to a function of the West Virginia council for community and technical college education;
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(k) (m) "Institutional operating budget" or "operating budget" means for any fiscal year means an institution's total unrestricted education and general funding from all sources in a the prior fiscal year, including, but not limited to, tuition and fees and legislative appropriation, and any adjustments to that funding as approved by the commission or council based on comparisons with peer institutions or to reflect consistent components of peer operating budgets;
     (l) (n) "Post-secondary vocational "Community and technical college education program" means any college-level course or program beyond the high school level provided through an a public institution of higher education under the jurisdiction of a governing board which results resulting in or which may result in the awarding of a two-year associate degree award including an associate of arts, an associate of science and an associate of applied science; certificate programs and skill sets; developmental education; continuing education; collegiate credit and noncredit work force development programs; and transfer and baccalaureate parallel programs. All such programs are under the jurisdiction of the council. Any reference to "post-secondary vocational education programs" means community and technical college education programs as defined in this subsection;
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(m) (o) "Rule" or "rules" means a regulation, standard, policy or interpretation of general application and future effect;
     (n) (p) For the purposes of this chapter and chapter eighteen-c of this code "senior administrator" means the vice chancellor for administration employed by the chancellor by the commission with the advice and consent of the council in accordance with section two, article four of this chapter. The vice chancellor for administration shall assume all the powers and duties that are assigned by law to the senior administrator;
     (o) (q) "State college" means Bluefield state college, Concord college, Fairmont state college, Glenville state college, Shepherd college, West Liberty state college or West Virginia state college;
     (p) (r) "State institution of higher education" means any university, college or community and technical college under the direct or indirect jurisdiction of a governing board as that term is defined in this section;
     (q) (s) "Regional Until the first day of July, two thousand five, "regional campus" means West Virginia university at Parkersburg, Potomac state college of West Virginia university and West Virginia university institute of technology;
     (r) (t) The advisory board previously appointed for the West Virginia graduate college shall be is known as the "board of visitors" and shall provide guidance to the Marshall university graduate college;
     (s) (u) "Institutional compact" means a the compact between the commission or council and a state institution of higher education and the commission under its jurisdiction, as described in section two, article one-a of this chapter;
     (t) (v) "Peer institutions", "peer group" or "peers" means public institutions of higher education used for comparison purposes and selected by the commission pursuant to section three, article one-a of this chapter;
     (u) (w) "Administratively linked community and technical college" means a community and technical college created pursuant to section eight, article three-c of this chapter;
     (v) (x) "Sponsoring institution" means the a state institution of higher education that maintains an administrative link to a community and technical college pursuant to section eight, article three-c of this chapter;
     (w) (y) "Collaboration" means entering into an agreement with one or more providers of education services in order to enhance the scope, quality or efficiency of education services;
     (x) (z) "Broker" or the act of "brokering" means serving as an agent on behalf of students, employers, communities or responsibility areas to obtain education services not offered by a sponsoring at that institution. These services include courses, degree programs or other services contracted through an agreement with a provider of education services either in-state or out-of-state; and
     (y) "Joint commission for vocational-technical-occupational education" or "joint commission" means the commission established pursuant to article three-a of this chapter.
     
(aa) "Council" means the West Virginia council for community and technical college education created pursuant to article two-b of this chapter.
§18B-1-3. Transfer of powers, duties, property, obligations, etc.

     (a) All powers, duties and authorities transferred to the board of regents pursuant to former provisions of chapter eighteen of this code and transferred to the board of trustees and board of directors which were created as the governing boards pursuant to the former provisions of this chapter and all powers, duties and authorities of the board of trustees and board of directors, to the extent they are in effect on the seventeenth day of June, two thousand, are hereby transferred to the interim governing board created in article one-c of this chapter and shall be exercised and performed by the interim governing board until the first day of July, two thousand one, as such powers, duties and authorities may apply to the institutions under its jurisdiction.
     (b) Title to all property previously transferred to or vested in the board of trustees and the board of directors and property vested in either of the boards separately, formerly existing under the provisions of this chapter, are hereby transferred to the interim governing board created in article one-c of this chapter until the first day of July, two thousand one. Property transferred to or vested in the board of trustees and board of directors shall include:
     (1) All property vested in the board of governors of West Virginia university and transferred to and vested in the West Virginia board of regents;
     (2) All property acquired in the name of the state board of control or the West Virginia board of education and used by or for the state colleges and universities and transferred to and vested in the West Virginia board of regents;
     (3) All property acquired in the name of the state commission on higher education and transferred to and vested in the West Virginia board of regents; and
     (4) All property acquired in the name of the board of regents and transferred to and vested in the respective board of trustees and board of directors.
     (c) Each valid agreement and obligation previously transferred to or vested in the board of trustees and board of directors formerly existing under the provisions of this chapter is hereby transferred to the interim governing board until the first day of July, two thousand one, as those agreements and obligations may apply to the institutions under its jurisdiction. Valid agreements and obligations transferred to the board of trustees and board of directors shall include:
     (1) Each valid agreement and obligation of the board of governors of West Virginia university transferred to and deemed the agreement and obligation of the West Virginia board of regents;
     (2) Each valid agreement and obligation of the state board of education with respect to the state colleges and universities transferred to and deemed the agreement and obligation of the West Virginia board of regents;
     (3) Each valid agreement and obligation of the state commission on higher education transferred to and deemed the agreement and obligation of the West Virginia board of regents; and
     (4) Each valid agreement and obligation of the board of regents transferred to and deemed the agreement and obligation of the respective board of trustees and board of directors.
     (d) All orders, resolutions and rules adopted or promulgated by the respective board of trustees and board of directors and in effect immediately prior to the first day of July, two thousand, are hereby transferred to the interim governing board until the first day of July, two thousand one, and shall continue in effect and shall be deemed the orders, resolutions and rules of the interim governing board until rescinded, revised, altered or amended by the commission or the governing boards in the manner and to the extent authorized and permitted by law. Such orders, resolutions and rules shall include:
     (1) Those adopted or promulgated by the board of governors of West Virginia university and in effect immediately prior to the first day of July, one thousand nine hundred sixty-nine, unless and until rescinded, revised, altered or amended by the board of regents in the manner and to the extent authorized and permitted by law;
     (2) Those respecting state colleges and universities adopted or promulgated by the West Virginia board of education and in effect immediately prior to the first day of July, one thousand nine hundred sixty-nine, unless and until rescinded, revised, altered or amended by the board of regents in the manner and to the extent authorized and permitted by law;
     (3) Those adopted or promulgated by the state commission on higher education and in effect immediately prior to the first day of July, one thousand nine hundred sixty-nine, unless and until rescinded, revised, altered or amended by the board of regents in the manner and to the extent authorized and permitted by law; and
     (4) Those adopted or promulgated by the board of regents prior to the first day of July, one thousand nine hundred eighty-nine, unless and until rescinded, revised, altered or amended by the respective board of trustees or board of directors in the manner and to the extent authorized and permitted by law.
     (e) Title to all real property transferred to or vested in the interim governing board pursuant to this section of the code is hereby transferred to the commission effective the first day of July, two thousand one. The board of governors for each institution may request that the commission transfer title to the board of governors of any real property specifically identifiable with that institution or the commission may initiate the transfer. Any such request must be made within two years of the effective date of this section and be accompanied by an adequate legal description of the property.
     The title to any real property that is jointly utilized by institutions or for statewide programs under the jurisdiction of the commission shall be retained by the commission.
     (f) Ownership of or title to any other property, materials, equipment or supplies obtained or purchased by the interim governing board or the previous governing boards on behalf of an institution is hereby transferred to the board of governors of that institution effective the first day of July, two thousand one.
     (g) Each valid agreement and obligation previously transferred or vested in the interim governing board and which was undertaken or agreed to on behalf of an institution or institutions is hereby transferred to the board of governors of the institution or institutions for whose benefit the agreement was entered into or the obligation undertaken effective the first day of July, two thousand one.
     (1) The obligations contained in revenue bonds issued by the previous governing boards under the provisions of section eight, article ten of this chapter and article twelve-b, chapter eighteen of this code are hereby transferred to the commission and each institution shall transfer to the commission those funds the commission determines are necessary to pay that institution's share of bonded indebtedness.
     (2) The obligations contained in revenue bonds issued on behalf of a state institution of higher education pursuant to any other section of this code is hereby transferred to the board of governors of the institution on whose behalf the bonds were issued.
     (h) All orders, resolutions, policies and rules:
     (1) Adopted or promulgated by the respective board of trustees, board of directors or interim governing board and in effect immediately prior to the first day of July, two thousand one, are hereby transferred to the commission effective the first day of July, two thousand one, and shall continue in effect until rescinded, revised, altered, or amended or transferred to the governing boards by the commission as set out provided in this section and in section six of this article.
_____(2) Adopted or promulgated by the commission relating solely to community and technical colleges or community and technical college education, or rules which the council finds necessary for the exercise of its lawful powers and duties pursuant to the provisions of this chapter, may be adopted by the council, and continue in effect until rescinded, revised, altered, amended or transferred to the governing boards under the jurisdiction of the council pursuant to section six of this article. Nothing in this section requires the initial rules of the commission that are adopted by the council to be promulgated again under the procedure set forth in article three-a, chapter twenty-nine-a of this code unless such rules are rescinded, revised, altered or amended.
_____(3) Adopted or promulgated by the commission relating to multiple types of public institutions of higher education or community and technical college education as well as baccalaureate and post-baccalaureate education are transferred to the council in part as follows:
_____(A) That portion of the rule relating solely to community and technical colleges or community and technical college education is transferred to the council and continues in effect until rescinded, revised, altered, amended or transferred to the governing boards by the council as provided in this section and in section six of this article;
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(B) That portion of the rule relating to institutions or education other than community and technical colleges is retained by the commission and continues in effect until rescinded, revised, altered, amended or transferred to the governing boards by the commission as provided in this section and in section six of this article.
     (i) The commission may, in its sole discretion, transfer any rule, other than a legislative rule, to the jurisdiction of the governing boards of the institutions under its jurisdiction who may rescind, revise, alter or amend any rule so transferred pursuant to rules adopted by the commission pursuant to section six of this article.
     The council may, in its sole discretion, transfer any rule, other than a legislative rule, to the jurisdiction of the governing boards of the institutions under its jurisdiction who may rescind, revise, alter or amend any rule so transferred pursuant to rules adopted by the council pursuant to section six of this article.
     (j) As to any title, agreement, obligation, order, resolution, rule or any other matter about which there is some uncertainty, misunderstanding or question, the matter shall be summarized in writing and sent to the commission which shall make a determination regarding such matter within thirty days of receipt thereof.
     (k) Rules or provisions of law which refer to other provisions of law which were repealed, rendered inoperative or superseded by the provisions of this section shall remain in full force and effect to such extent as may still be applicable to higher education and may be so interpreted. Such references include, but are not limited to, references to sections and prior enactments of article twenty-six, chapter eighteen of this code and code provisions relating to retirement, health insurance, grievance procedures, purchasing, student loans and savings plans. Any determination which needs to be made regarding applicability of any provision of law shall first be made by the commission.
§18B-1-6. Rulemaking.
     (a) Effective the first day of July, two thousand one The commission is hereby empowered to promulgate, adopt, amend or repeal rules, in accordance with the provisions of article three-a, chapter twenty-nine-a of this code, subject to the provisions of section three of this article.
     (b) The council is hereby empowered to promulgate, adopt, amend or repeal rules, in accordance with the provisions of article three-a, chapter twenty-nine-a of this code and subject to the provisions of section three of this article. This grant of rulemaking power extends only to those areas over which the council has been granted specific authority and jurisdiction by law.
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(b) (c) The commission and council each shall promulgate a rule to guide the development and approval of rules, guidelines and other policy statements made by the their respective governing boards. The rule rules promulgated by the commission and council shall include, but is are not limited to, the following provisions:
     (1) A procedure to ensure that public notice is given and that the right of interested parties to have a fair and adequate opportunity to respond is protected;
     (2) Designation of a single location where all proposed and approved rules, guidelines and other policy statements can be accessed by the public;
     (3) A procedure to maximize internet access to all proposed and approved rules, guidelines and other policy statements to the extent technically and financially feasible.
     (c) (d) On and after the effective date of this section, and notwithstanding any other provision of this code to the contrary, no any rule heretofore required by law to be promulgated as a legislative rule prior to the first day of July, two thousand one, may not be considered to be a legislative rule for the purposes of article three-a, chapter twenty-nine-a of this code, except for the following:
     (1) The legislative rule required by subsection (c), section eight of this article;
     (2) The legislative rule required by section eight-a of this article;
     (3) The legislative rule required by section two, article one-a of this chapter;
     (4) The legislative rule required by section four, article one-b of this chapter;
     (5) The legislative rule required by section one, article three, chapter eighteen-c of this code;
     (6) The legislative rule required by section one, article four, chapter eighteen-c of this code;
     (7) The legislative rule required by section seven, article five, chapter eighteen-c of this code; and
     (8) The legislative rule required by section one, article six, chapter eighteen-c of this code.
     (d) On or after the effective date of this section and before the first day of October, two thousand one, notwithstanding any other provision of this code to the contrary, any rule heretofore promulgated as a legislative rule which was not required specifically by law to be promulgated as a legislative rule, or any rule previously required to be a legislative rule by statute but reclassified by subsection (c) of this section, may be reclassified by the commission either as an interpretive rule or as a procedural rule. The commission shall notify in writing the legislative oversight commission on education accountability of such reclassification and shall file such notice with the office of the secretary of state to be published in the state register.
     (e) Nothing in this section may be construed to require requires that any rule reclassified or transferred under this section be promulgated again under the procedures set out in article three-a, chapter twenty-nine-a of this code unless the rule is amended or modified.
     (f) The commission shall cause a copy of and council each shall file with the legislative oversight commission on education accountability any rule it proposes to promulgate, adopt, amend or repeal under the authority of this article. to be filed with the legislative oversight commission on education accountability created in said article three-a, chapter twenty-nine-a of this code
ARTICLE 1A. COMPACT WITH HIGHER EDUCATION FOR THE FUTURE OF WEST VIRGINIA.

§18B-1A-2. Institutional compacts with state institutions of higher education; establishment and review process.

     (a) Each institution of higher education state college and university shall prepare an institutional compact for submission to the commission. Each community and technical college shall prepare an institutional compact for submission to the council. When the process herein provided is completed, the institutional compacts shall form the agreements between the institutions of higher education and the commission or council, respectively, and, ultimately, between the institutions of higher education and the people of West Virginia on how the institutions will use their resources to address the intent of the Legislature and the goals set forth in section one-a, article one of this chapter. The compacts shall contain the following:
     (1) A step-by-step process to accomplish the intent of the Legislature and the goals set forth in section one-a, article one of this chapter as organized by the commission and council. The step-by-step process shall be delineated by objectives and shall set forth a time line for achieving the objectives which shall, where applicable, include benchmarks to measure institutional progress as defined in subsection (e) of this section.
     (2) A determination of the mission of the institution which specifically addresses changes, as applicable, in the areas of research, graduate education, baccalaureate education, revised admission requirements, community and technical colleges and such other areas as the commission or council determines appropriate. In the determination of mission, the institutions and the commission or council shall consider the report completed by the national center for higher education management systems pursuant to the legislative study as provided in section seven, article three of this chapter;
     (3) A plan which is calculated to make any changes in institutional mission and structure within a six-year period;
     (4) A statement of the geographic areas of responsibility, where applicable, for each goal to be accomplished as provided in subsection (d) of this section;
     (5) A detailed statement of how the compact is aligned with and will be implemented in conjunction with the master plan of the institution;
     (6) Such other items, requirements or initiatives, required by the commission or council, designed to accomplish the intent of the Legislature and the goals set forth in section one-a, article one of this chapter or other public policy goals established by the commission or council.
     (b) Each institutional compact shall be updated annually and shall follow the same general guidelines contained in subsection (a) of this section.
     (c) Development and updating of the institutional compacts shall be is subject to the following:
     (1) The ultimate responsibility for developing and updating the institutional compacts at the institutional level resides with the institutional board of advisors or the board of governors, as appropriate;
     (2) The ultimate responsibility for developing and adopting the final version of the state college and university institutional compacts resides with the commission. The ultimate responsibility for developing and adopting the final version of the community and technical college institutional compacts resides with the council;
     (3) The initial institutional compacts shall be submitted to the commission by the institutions on or before the first day of February, two thousand one. The first annual updates shall be submitted on or before the fifteenth day of November, two thousand one, and succeeding updates shall be submitted on the fifteenth day of November of each year thereafter
     
(3) Each institution shall submit its compact to the commission or council annually by the fifteenth day of November;
     (4) The commission and council shall review the initial institutional compacts and the annual updates and either shall adopt the institutional each compact of the institutions under their respective jurisdictions and either adopt the compact or return it with specific comments for change or improvement. The commission and council shall continue this process as long as it each considers advisable;
     (5) By the first day of May of each year annually, if the institutional compact of any institution as presented by that institution is not adopted by the commission or council, then the commission or council is empowered and directed to develop and adopt the institutional compact for the institution and the institution shall be is bound by the compact so adopted; and
     (6) As far as practicable, the commission and council each shall as far as practicable, establish uniform processes and forms for the development and submission of the institutional compacts by the institutions under their respective jurisdictions. As a part of this function, the commission and council shall organize the statements of legislative intent and goals contained in section one-a, article one of this chapter in a manner that facilitates the purposes of this subdivision and the purposes of this section.
     (d) The commission and council shall assign geographic areas of responsibility to the state institutions of higher education under their respective jurisdictions as a part of their institutional compacts to ensure that all areas of the state are provided necessary programs and services to achieve the public policy agenda. The benchmarks established in the institutional compacts shall include measures of programs and services by geographic area throughout the assigned geographic area of responsibility.
     (e) The compacts shall contain benchmarks used to determine progress toward meeting the goals established in the compacts. The benchmarks shall meet the following criteria:
     (1) They shall be as objective as possible;
     (2) They shall be directly linked to the goals in the compacts;
     (3) They shall be measured by the indicators described in subsection (f) of this section; and
     (4) Where applicable, they shall be used to measure progress in geographic areas of responsibility.
     (f) The commission and council each shall establish by legislative rule indicators which measure the degree to which the goals and objectives set forth in section one-a, article one of this chapter are being addressed and met by the institutions under their respective jurisdictions. The benchmarks established in subsection (e) of this section shall be measured by the indicators.
     (1) The Legislature finds that an emergency exists; and therefore, the commission shall file as an emergency rule the rule pertaining to benchmarks and indicators that was filed with the office of the secretary of state on the twenty-sixth day of December, two thousand. The commission shall file a legislative rule in accordance with the provisions of article three-a, chapter twenty-nine-a of this code to replace the emergency rule no later than the first day of November, two thousand one. not later than the first day of October, two thousand four, the council shall file as an emergency rule a legislative rule pertaining to benchmarks and indicators in accordance with the provisions of article three-a, chapter twenty-nine-a of this code. The rule pertaining to benchmarks and indicators in effect for the commission at the time of the effective date of this section remains in effect for the institutions under its jurisdiction.
     (2) The legislative rule rules shall set forth at the least the following as pertains to all state institutions of higher education:
     (A) The indicators to be used to measure the degree to which the goals and objectives are being met;
     (B) Uniform definitions for the various data elements to be used in establishing the indicators;
     (C) Guidelines for the collection and reporting of data; and
     (D) Sufficient detail within the benchmarks and indicators to:
     (i) Provide measurable evidence that the pursuits of the institution are targeting the educational needs of the citizens of the state and the components of the compacts and master plans;
     (ii) Delineate the goals and benchmarks for an institution so that the commission or council can precisely measure the degree to which progress is being made toward achieving the goals for post-secondary education provided in section one-a, article one of this chapter; and
     (iii) Distinctly identify specific goals within the master plan or compact of an institution that are not being met or toward which sufficient progress is not being made.
     (3) In addition to any other requirement, the legislative rule established by the council shall set forth at the least the following as pertains to community and technical college education:
     (A) Benchmarks and indicators which are targeted to identify:
     (i) The degree to which progress is being made by institutions toward meeting the goals for post-secondary education and the essential conditions provided in section three, article three-c of this chapter;
     (ii) Information and data necessary to be considered by the policy commission council in making the determination required by section three, article two-c of this chapter;
     (iii) The degree to which progress is being made in the areas considered by the commission council for the purpose of making the determination required by section three, article two-c of this chapter; and
     (B) Sufficient detail within the benchmarks and indicators to provide clear evidence to support an objective determination by the commission council that an institution's progress toward achieving the goals for post-secondary education and the essential conditions is so deficient that implementation of the provisions of section four, article two-c of this chapter is warranted and necessary.
     (g) The commission or the council, as appropriate, shall approve the master plans developed by the boards of governors and the institutional boards of advisors pursuant to section four, article two-a of this chapter and or section one, article six of this chapter, as appropriate.
§18B-1A-3. Peer institutions.
     (a) The commission shall select not fewer than ten peer institutions for each state institution of higher education in West Virginia, including, but not limited to, independently accredited community and technical colleges.
     (b) When selecting peers, the commission shall abide by the following conditions:
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(1) The peer institutions shall be selected from among institutions throughout the United States and not solely from the states that are members of the southern regional education board.
     (2) The peer institutions for community and technical colleges shall be selected in collaboration with the council.
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(c) (3) The peer institutions, as selected by the commission, shall be used as benchmarks for comparison purposes only and are not intended to reflect funding goals for West Virginia institutions of higher education. Such a use is inappropriate since institutions selected as peers for a state institution may be located in an area of high per capita income or have their funding subject to other factors that make its use unrealistic for setting funding goals in West Virginia. The peer institutions shall be used for comparison in the following areas:
     (1) (A) To determine adjustments to base operating budgets as described in section five of this article;
     (2) (B) To determine comparable levels of tuition;
     (3) (C) To determine comparable faculty and staff teaching requirements and other workloads; and
     (4) (D) For such other purposes as the law may require or the commission may find useful or necessary.
     (d) (4) The commission shall contract with a national, independent education consulting firm to assist in the unbiased selection of peer institutions for each West Virginia institution.      (5) The commission shall select peer institutions for each institution through an open, deliberative, objective process and in consultation with the institutional boards of governors or boards of advisors, as appropriate, intended to achieve broad understanding of the basis for this selection in the higher education community and the Legislature.
     (6) Final peer selection is subject to the approval of the legislative oversight commission on education accountability.
     (7) In selecting peer institutions, the commission shall use criteria such as, but not limited to:
     (1) (A) Institutional mission;
     (2) (B) Institutional size related to full-time equivalent students;
     (3) (C) The proportions of full-time and part-time students;
     (4) (D) The level of academic programs, including, but not limited to, number of degrees granted at the associate, baccalaureate, masters, doctoral and first-professional level;
     (5) (E) The characteristics of academic programs such as health sciences, professional, technical or liberal arts and sciences; and
     (6) (F) The level of research funding from federal competitive funding sources.
     (e) (8) Subject to the approval of the legislative oversight commission on education accountability, the commission shall review and make necessary adjustments to peer institutions at least every six years or as necessary based on changes in institutional missions as approved in institutional compacts or in changes at peer institutions. The commission shall review and make adjustments to peer institutions for community and technical colleges in collaboration with the council.
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(f) (9) Nothing herein may be construed to prevent prevents the commission from using the same peers or peer groups for more than one institution of higher education.
§18B-1A-4. Legislative financing goals.
     (a) The Legislature recognizes that the higher education goals set forth in section one-a, article one of this chapter are of utmost importance. The Legislature further recognizes that meeting the goals may require the appropriation of funds above the current operating budgets of the institutions.
     (b) It is, therefore, the desire of the Legislature to increase funding annually for higher education at a rate not less than the annual percentage increase in the overall general revenue budget.
     (c) If the commission or council, or both, determines that appropriations are insufficient to fund the requirements of the institutional compacts under its jurisdiction, the commission or council first shall consider extending the length of the compacts or otherwise modifying the compacts to allow the institutions to achieve the benchmarks in the compacts. If modifications to the institutional compacts are not sufficient to allow the institutions to meet their benchmarks, the commission or council, or both, shall recommend to the Legislature methods of making the higher education system more efficient. The methods may include, but are not limited to, the following:
     (1) Administrative efficiencies;
     (2) Consolidation of services;
     (3) Elimination of programs;
     (4) Consolidating institutions; and
     (5) Closing institutions.
§18B-1A-5. Financing; institutional operating budgets, additional funding.

     (a) Budget request and appropriations. -- The commission and council each has the responsibility to develop a budget for the state system of higher education under its respective jurisdiction. and submit The commission submits a the budget request for higher education, including the budget request as developed by the council, to the governor before the first day of September beginning in two thousand, and for each fiscal year thereafter annually. The The budget request requests of the commission and the council specifically shall include the amount of the institutional operating budgets, as defined in section two, article one of this chapter, required for all state institutions of higher education under their respective jurisdictions. The budget appropriation for the state system systems of higher education under this chapter and other provisions of the law shall consist of separate control accounts or institutional control accounts, or some combination of such accounts, for appropriation of institutional operating budgets and other funds. The commission and council each is responsible for allocating state appropriations to supplement institutional operating budgets in accordance with this section. In addition to the institutional operating budget and incentive funding, however, the commission and council each is responsible for allocating funds that are appropriated to it for other purposes. Provided, That in In order to determine institutional allocations, it is the responsibility of the institutions and their respective institutional boards of governors or advisors, as appropriate to provide to the commission or council documentation on institutional progress toward mission enhancement, preliminary peer comparison calculations, performance of increased productivity and academic quality and measurable attainment in fulfilling state priorities as set forth in this article. The documentation shall be provided to the commission or council no later than the first day of October annually. each year for commission review and verification.
     (b) Legislative funding priorities. --
     (1) The Legislature recognizes the current resource allocation funding model has not moved all state institutions equitably towards comparable peer funding levels. This formula The model has left West Virginia institutions at a competitive disadvantage to their national peers.
     (2) The Legislature acknowledges that the resource allocation model used to comply with Enrolled Committee Substitute for Senate Bill No. 547, passed during the legislative session of one thousand nine hundred ninety-five, alleviated some of the disparity that exists among state institutions' operating budgets, but left significant differences between the institutions and their national peers.
     (3) The Legislature recognizes that a system of independently-accredited community and technical colleges is essential to the economic vitality of the state.
     (4) The Legislature places great importance on achieving the priority goals outlined in the public policy agenda and believes the state institutions of higher education should play a vital role in facilitating the attainment of these goals.
     (5) The Legislature also believes it is imperative that the state make progress on narrowing the peer inequity while balancing the need for sustaining the quality of our institutions.
     (6) It is the charge of the commission and council to allocate all funds appropriated in excess of the fiscal year two thousand one general revenue appropriations in alignment with the legislative funding priorities listed below. The commission and council shall consider the priorities and assign a percentage of the total appropriation of new funds to each priority.
     (A) Peer equity. -- Funds appropriated for this purpose increase the level of the institutional operating budget for state institutions of higher education comparable to their peer institutions. The allocation shall provide, subject to the availability of funds and legislative appropriations, for a systematic adjustment of the institutional operating budgets to move all institutions' funding in the direction of levels comparable with their peers. Institutional allocations shall be calculated as follows:
     (i) A calculation shall be made of the deficiency in per student funding of each institution in comparison with the mean per student funding of the peer institutions as defined by the commission pursuant to section three of this article;
     (ii) For all institutions that are deficient in comparison with peer institutions, the amounts of the deficiencies shall be totaled;
     (iii) A ratio of the amount of the deficiency for an institution divided by the total amounts of deficiency for all West Virginia institutions shall be established for each institution; and
     (iv) The allocation to each institution shall be calculated by multiplying the ratio by the total amount of money in the account;
     (B) Independently accredited community and technical colleges development. -- Funds appropriated for this purpose will ensure a smooth transition, where required, from "component" community and technical colleges to independently accredited community and technical colleges as defined in section two, article one of this chapter. Appropriations for this purpose are only to be allocated only to those institutions having approved compacts with the commission council that expressly include the transition of their component community colleges to independently accredited status and have demonstrated measurable progress towards this goal. By the first day of July, two thousand seven five, or when all required community and technical colleges are independently accredited, whichever first occurs, funds for this purpose shall be allocated to the incentives for institutional contributions to state priorities; Provided, That if the commission determines that payments from the account to the institutions should continue beyond the first day of July, two thousand seven, it shall request an extension from the Legislature;
     (C) Research challenge. -- Funds appropriated for this purpose shall assist public colleges and universities in West Virginia to compete on a national and international basis by providing incentives to increase their capacity to compete successfully for research funding. The Legislature intends for institutions to collaborate in the development and execution of research projects to the extent practicable and to target research to the needs of the state as established in the public policy agenda and linked to the future competitiveness of this state.
     (i) The commission shall develop criteria for awarding grants to institutions under this account, which may include, but are not limited to, the following:
     (I) Grants to be used to match externally funded, peer-reviewed research;
     (II) Grants to be used to match funds for strategic institutional investments in faculty and other resources to increase research capacity;
     (III) Grants to support funding for new research centers and projects that will foster economic development and work force investment within the state. These grants shall be limited to seven five years and each research center or project funded shall receive a decreasing award each year and shall be required to be supported solely by external funding within seven five years;
     (ii) The commission may establish an advisory council consisting of nationally prominent researchers and scientists, including representatives from outside the state, to assist in developing the criteria for awarding grants under this account.
     (iii) For the purposes of making the distributions from this account, the commission shall establish the definition for research, research funds and any other terms as may be necessary to implement this subdivision; and
     (D) Incentives for institutional contributions to state priorities. -- Funds appropriated for this purpose provide incentives to institutions which demonstrate success toward advancing the goals of the public policy agenda as set forth in section one-a, article one of this chapter and to provide incentives for mission enhancement as set forth in section two of this article.
     (E) Sustained quality support. -- The commission and council shall provide additional operating funds to institutions under their respective jurisdictions with approved compacts. The commission and council shall allocate these funds on an equal percentage basis to all institutions. Provided, That the The commission or council may delay distribution of these funds to any institution which does not demonstrate measurable progress towards the goals provided in its compact with the commission or council.
     (c) Allocations to institutional operating budgets. -- For the purposes of this subsection, the commission and council each shall establish by rule pursuant to subsection (f), section two of this article the method for measuring the progress of each institution towards meeting the benchmarks of its institutional compact.
     (d) Allocation of appropriations to the institutions. -- Appropriations in this section shall be allocated to the state institutions of higher education in the following manner:
     (1) For the fiscal year two thousand two, appropriations above the fiscal year two thousand two institutional operating budget shall be allocated only to institutions with approved compacts, pursuant to this article;
     
(2) For the fiscal year two thousand three, and each fiscal year thereafter
     
(1) Each fiscal year appropriations from the funds shall be allocated only to institutions with which have:
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(A) Approved compacts, pursuant to section two of this article; and which also have achieved
     
(B) Achieved their annual benchmarks for accomplishing the goals of their compacts, as approved by the commission or council. Provided, That if
     
(2) If an institution has not achieved all of its annual benchmarks, the commission or council may distribute a portion of the funds to the institution based on its progress as the commission or council determines appropriate. Provided, however, That the The commission and council each shall establish by rule, pursuant to subsection (f), section two of this article, the method for measuring the progress of each institution toward meeting the benchmarks of its institutional compact.
     (e) Nothing in this section shall be construed in a manner that limits the appropriation or collection of fees necessary to effectuate the operation and purpose of the commission or council.
§18B-1A-6. Graduate education.
     (a) Intent. -- It is the intent of the Legislature to address the need for high quality graduate education programs to be available throughout the state.
     (b) Findings. -- The Legislature makes the following findings:
     (1) Since West Virginia ranks below its competitor states in graduate degree production, particularly in the areas that are important to the state's competitive position in the new economy of the twenty-first century, there is a considerable need for greater access to graduate education, especially at the master's degree level;
     (2) There is a significant disparity in access to part-time graduate degree programs among the different regions of the state and part-time graduate enrollments are heavily concentrated in the counties immediately surrounding Marshall university and West Virginia university;
     (3) There is a particular need for increased access to graduate programs linked directly to the revitalization of the regional economies of the state; and
     (4) There is a particular need for improved quality and accessibility of pre-service and in-service programs for teachers in subject matter fields.
     (c) In order to meet the need for graduate education, the commission shall be responsible for accomplishing the following:
     (1) Ensuring that West Virginia university and Marshall university expand access to master's degree programs throughout West Virginia, with a strong emphasis on collaboration with the baccalaureate colleges and community and technical colleges in each region;
     (2) Ensuring that any institution providing a master's degree program under the provisions of this section provides a meaningful, coherent program by offering courses in such a way that students, including place-bound adults, have ample opportunity to complete a degree in a reasonable period of time;
     (3) Focusing on providing courses that enhance the professional skills of teachers in their subject areas; and
     (4) Ensuring that programs are offered in the most cost-effective manner to expand access throughout the region and the state.
     (d) Concord college, Fairmont state college, Glenville state college, Shepherd college, West Liberty state college and West Virginia state college shall meet the need for graduate education in their regions by following the procedures outlined below.
     (1) The institutions shall develop as graduate centers for their regions to broker access to graduate programs by contracting with accredited colleges and universities in and out of the state. These programs shall be related directly to each region's education and economic needs.
     (2) The institutions may begin collaborative programs with other institutions leading to the granting of master's degrees in selected areas that are demonstrated to be related directly to the needs of their regions and that draw on faculty strengths. An institution may continue to offer collaborative programs aimed at meeting the documented needs with the approval of the commission or, if a sustained need still exists, the institution may move to the next level.
     (3) If the graduate education needs of the region have not been met through brokering and collaborative programs, the institution may explore the option of beginning its own graduate-level program leading to the granting of a master's degree. The institution may begin its own master's degree program if it can meet the following conditions as determined by the commission:
     (A) Demonstrate that the institution has successfully completed each of the steps required before exploring development of its own master's degree program;
     (B) Provide evidence based on experience gained in the brokering and collaborative arrangements that a sustained demand exists for the program;
     (C) Demonstrate that the baccalaureate institution has the capacity to provide the program;
     (D) Demonstrate that the core mission of the baccalaureate institution will not be impaired by offering the graduate program;
     (E) Provide evidence that the graduate program has a reasonable expectation of being accredited;
     (F) Demonstrate that the need documented in subdivision (B) of this subsection is not currently being met by any other state institution of higher education; and
     (G) The commission may designate one of the institutions listed in subsection (d) of this section to develop and implement no more than four of its own masters level programs as a pilot project: Provided, That the selected institution shall move toward and achieve regional accreditation of the masters program within a reasonable time as determined by the commission. The institution shall be selected based on the following:
     (i) Sufficient credentialed faculty to offer quality programs in the areas selected;
     (ii) Sufficient unmet demand for the programs; and
     (iii) Sustainable unmet demand based on generally accepted projections for population growth in the region served by the institution.
     The programs authorized by this clause may not be restricted by the provisions of subdivisions (1), (2) and (3) of this subsection nor by the provisions of subsection (e) of this section.
     (e) There is an urgent need for master's degree programs for teachers in disciplines or subject areas, such as mathematics, science, history, literature, foreign languages and the arts. Currently, master's-level courses in education that are offered in the regions served by the state universities are primarily in areas such as guidance and counseling, administration, special education and other disciplines unrelated to teaching in subject areas. If this need is not being met in a region through the procedure established in subsection (d) of this section, then the graduate center in that region may plan a master's degree program in education focused on teaching in subject area fields in which the demand is not being met. No institution may begin a graduate program under the provisions of this section until the program has been reviewed and approved by the commission. The commission shall approve only those programs, as authorized by this subsection, that emphasize serving the needs of teachers and schools in the colleges' immediate regions. In determining whether a program should be approved, the commission also shall rely upon the recommendations of the statewide task force on teacher quality provided for in section eight, article fourteen of this chapter.
     (f) The commission shall review all graduate programs being offered under the provisions of this section and, using the criteria established for program startup in subsection (d) of this section, determine which programs should be discontinued.
     (g) At least annually, the governing boards shall evaluate graduate programs developed pursuant to the provisions of this section and report to the commission on the following:
     (1) The number of programs being offered and the courses offered within each program;
     (2) The disciplines in which programs are being offered;
     (3) The locations and times at which courses are offered;
     (4) The number of students enrolled in the program; and
     (5) The number of students who have obtained master's degrees through each program.
     The governing boards shall provide the commission with any additional information the commission requests in order to make a determination on the viability of a program.
     (h) In developing any graduate program under the provisions of this section, institutions shall consider delivering courses at times and places convenient to adult students who are employed full time. Institutions shall place an emphasis on extended degree programs, distance learning and off-campus centers which utilize the cost-effective nature of extending existing university capacity to serve the state rather than duplicating the core university capacity and incurring the increased cost of developing master's degree programs at other institutions throughout the state.
     (i) Brokering institutions shall invite proposals from other public institutions of higher education for service provision prior to contracting with other institutions: Provided, That if institutions propose providing graduate programs in service areas other than in their responsibility district, the institution seeking to establish a program shall work through the district's lead institution in providing those services.
     (j) In addition to the approval required by the commission, authorization for any institution to offer a master's degree program under the provisions of this section is subject to the formal approval processes established by the governing boards.
ARTICLE 1B. HIGHER EDUCATION POLICY COMMISSION.
§18B-1B-1. Higher education policy commission established; development of public policy agenda.

     There is hereby created the "higher education policy commission", hereinafter referred to as the "commission". which is responsible for developing, gaining consensus around and overseeing the implementation of a public policy agenda It is the intent of the Legislature that the commission be responsible to develop, gain consensus around and oversee the public policy agenda for higher education and other statewide issues pursuant to section one-a, article one of this chapter under the following conditions:
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(a) It is the responsibility of the commission to work collaboratively with the council to develop and gain consensus around the public policy agenda for community and technical colleges;
_____(b) It is the responsibility of the council to oversee the implementation of the public policy agenda for the institutions under its jurisdiction.
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It is the intent of the Legislature that the commission be and council jointly are responsible for development and articulation of the public policy agenda for higher education and other statewide issues pursuant to section one-a, article one of this chapter.
     
(c) All matters of governance not specifically assigned to the commission or council by law are the duty and responsibility of the governing board or boards.
§18B-1B-2. Composition of commission; terms and qualifications of members; vacancies; eligibility for reappointment; oath of office; removal from office.

     (a) The commission is comprised of nine ten members, all of whom are entitled to vote. One is the secretary of education and the arts, ex officio. One is the state superintendent of schools, ex officio. One is the chair of the West Virginia council for community and technical college education who is an ex officio, nonvoting member. Provided, That if the state superintendent of schools desires not to serve, the state board of education shall submit to the governor the names of three nominees, which may include members of the state board of education. The governor shall select from the nominees a member to serve on the commission. The three nominees shall be persons who are knowledgeable in the area of public education policy, are able to represent the state board of education and who understand and are committed to achieving the goals and objectives as set forth in the institutional compacts and in section one-a, article one of this chapter.
     (b) The other seven members of the commission shall be are citizens of the state, appointed by the governor, by and with the advice and consent of the Senate. Provided, That prior Prior to appointment, the governor shall interview each candidate to assure that the person selected understands and is committed to achieving the goals and objectives as set forth in the institutional compacts and in section one-a, article one of this chapter. The governor shall invite the president of the Senate, the speaker of the House of Delegates, the chairs of the Senate and House of Delegates committees on finance and education and such other legislative leaders as the governor may determine to participate in interviewing potential candidates. Each member appointed to the commission by the governor shall represent the public interest and shall be committed to the legislative intent and goals set forth in said section.
     (c) The governor may not appoint any person to be a member of the commission who is an officer, employee or member of the council or an advisory board of any state college or university; an officer or member of any political party executive committee; the holder of any other public office or public employment under the government of this state or any of its political subdivisions; or an appointee or employee of any governing board; or an immediate family member of any employee under the jurisdiction of the commission, the council or any governing board. Of the members appointed by the governor from the public at large, no more than four thereof shall may belong to the same political party and at least two shall be appointed from each congressional district.
     (d) The governor shall appoint seven members to the commission on the first day of July, two thousand, or as soon thereafter as is practicable and the original terms of all members shall commence on the first day of July, two thousand.
     
(e) (d) The terms of the members appointed by the governor shall be are for overlapping terms of four years. except, of the original appointments, one shall be appointed to a term of one year, two shall be appointed to a term of two years, two shall be appointed to a term of three years and two shall be appointed to a term of four years. Each subsequent appointment which is not for the purpose of filling a vacancy in an unexpired term shall be for a term of four years.
     
(f) (e) The governor shall appoint a member to fill any vacancy among the seven members of the commission appointed by the governor, by and with the advice and consent of the Senate. which member appointed to fill such vacancy shall serve Any member appointed to fill a vacancy serves for the unexpired term of the vacating member. The governor shall fill the vacancy within thirty days of the occurrence of the vacancy.
     (g) (f) No A member appointed by the governor shall be eligible to may not serve more than two consecutive terms.
     (h) (g) Before exercising any authority or performing any duties as a member of the commission, each member shall qualify as such by taking and subscribing to the oath of office prescribed by section five, article IV of the constitution of West Virginia and the certificate thereof shall be filed with the secretary of state.
     (i) (h) No A member of the commission appointed by the governor may not be removed from office by the governor except for official misconduct, incompetence, neglect of duty or gross immorality, and then only in the manner prescribed by law for the removal of the state elective officers by the governor.
§18B-1B-4. Powers and duties of higher education policy commission.

     (a) The primary responsibility of the commission is to develop, establish and implement policy that will achieve the goals and objectives found in section one-a, article one of this chapter. The commission shall exercise its authority and carry out its responsibilities in a manner that is consistent and not in conflict with the powers and duties assigned by law to the West Virginia council for community and technical college education. To that end, the commission has the following powers and duties relating to the institutions under its jurisdiction:
     (1) Develop, oversee and advance the public policy agenda pursuant to section one, article one-a of this chapter to address major challenges facing the state, including, but not limited to, the goals and objectives found in section one-a, article one of this chapter and including specifically those goals and objectives pertaining to the compacts created pursuant to section two, article one-a of this chapter and to develop and implement the master plan described in section ten nine of this article for the purpose of accomplishing the mandates of this section;
     (2) Develop, oversee and advance the implementation jointly with the council of a financing policy for higher education in West Virginia. The policy shall meet the following criteria:
     (A) Provide an adequate level of education and general funding for institutions pursuant to section five, article one-a of this chapter;
     (B) Serve to maintain institutional assets, including, but not limited to, human and physical resources and deferred maintenance; and
     (C) Invest and provide incentives for achieving the priority goals in the public policy agenda, including, but not limited to, those found in section one-a, article one of this chapter; and
_____(D) Incorporate the plan for strategic funding to strengthen capacity for support of community and technical college education established by the West Virginia council for community and technical college education pursuant to the provisions of section six, article two-b of this chapter;

     (3) Create In collaboration with the council, create a policy leadership structure capable of the following actions:
     (A) Developing, building public consensus around and sustaining attention to a long-range public policy agenda. In developing the agenda, the commission and council shall seek input from the Legislature and the governor and specifically from the state board of education and local school districts in order to create the necessary linkages to assure smooth, effective and seamless movement of students through the public education and post-secondary education systems and to ensure that the needs of public school courses and programs can be fulfilled by the graduates produced and the programs offered;
     (B) Ensuring that the governing boards carry out their duty effectively to govern the individual institutions of higher education; and
     (C) Holding the higher education institutions and the higher education system systems as a whole accountable for accomplishing their missions and implementing the provisions of the compacts;
     (4) Develop and adopt each institutional compact;
     (5) Review and adopt the annual updates of the institutional compacts;
     (6) Review the progress of community and technical colleges in every region of West Virginia; such review includes, but is not limited to, evaluating and reporting annually to the legislative oversight commission on education accountability on the step-by-step implementation required in article three-c of this chapter;
     
(7) (6) Serve as the accountability point for to:
     (A) The governor for implementation of the public policy agenda; and for
     
(B) The Legislature by maintaining a close working relationship with the legislative leadership and the legislative oversight commission on education accountability;
     (8) (7) Promulgate Jointly with the council, promulgate legislative rules pursuant to article three-a, chapter twenty-nine-a of this code to fulfill the purposes of section five, article one-a of this chapter;
     (9) (8) Establish and implement a peer group for each public institution of higher education in the state as described in section three, article one-a of this chapter;
     (10) (9) Establish and implement the benchmarks and performance indicators necessary to measure institutional achievement towards state policy priorities and institutional missions pursuant to section two, article one-a of this chapter;
     (11) In January, two thousand one, and annually thereafter
     
(10) Annually report to the Legislature and to the legislative oversight commission on education accountability during the January interim meetings on a date and at a time and location to be determined by the president of the Senate and the speaker of the House of Delegates. The report shall address at least the following:
     (A) The performance of the its system of higher education during the previous fiscal year, including, but not limited to, progress in meeting goals stated in the compacts and progress of the institutions and the higher education system as a whole in meeting the goals and objectives set forth in section one-a, article one of this chapter;
     (B) An analysis of enrollment data collected pursuant to subsection (i) section one, article ten of this chapter and recommendations for any changes necessary to assure access to high-quality, high-demand education programs for West Virginia residents;
     (C) The priorities established for capital investment needs pursuant to subdivision (12) (11) of this subsection and the justification for such priority;
     (E) (D) Recommendations of the commission for statutory changes needed to further the goals and objectives set forth in section one-a, article one of this chapter;
     (12) (11) Establish a formal process for identifying needs for capital investments and for determining priorities for these investments. It is the responsibility of the commission to assure a fair distribution of funds for capital projects between the commission and the council. To that end the commission shall take the following steps:
_____(A) Receive the list of priorities developed by the council for capital investment for the institutions under the council's jurisdiction pursuant to subsection (b), section six, article two-b of this chapter;
_____(B) Place the ranked list of projects on the agenda for action within sixty days of the date on which the list was received;
_____(C) Select a minimum of three projects from the list submitted by the council to be included on the ranked list established by the commission. At least one of the three projects selected must come from the top two priorities established by the council.
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(13) On or before the first day of October, two thousand, develop, establish and implement
     
(12) Maintain guidelines for institutions to follow concerning extensive capital projects. The guidelines shall provide a process for developing capital projects, including, but not limited to, the notification by an institution to the commission of any proposed capital project which has the potential to exceed one million dollars in cost. No such project may Such a project may not be pursued by an institution without the approval of the commission. An institution may not nor may an institution participate directly or indirectly with any public or private entity in any capital project which has the potential to exceed one million dollars in cost;
     (14) Draw upon the expertise available within the governor's work force investment office and the West Virginia development office as a resource in the area of work force development and training;
     
(15) (13) Acquire legal services as are considered necessary, including representation of the commission, its institutions, employees and officers before any court or administrative body, notwithstanding any other provision of this code to the contrary. The counsel may be employed either on a salaried basis or on a reasonable fee basis. In addition, the commission may, but is not required to, call upon the attorney general for legal assistance and representation as provided by law;
     (16) (14) Employ a chancellor for higher education pursuant to section five of this article;
     (17) (15) Employ other staff as necessary and appropriate to carry out the duties and responsibilities of the commission and the council, in accordance with the provisions of article four of this chapter;
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(18) (16) Provide suitable offices in Charleston for the chancellor, vice chancellors and other staff;
     (19) Conduct a study of the faculty tenure system as administered by the governing boards with specific attention to the role of community service and other criteria for achieving tenured status. The commission shall make a report of its findings and recommendations to the legislative oversight commission on education accountability by the first day of July, two thousand one;
     (20) (17) Advise and consent in the appointment of the presidents of the institutions of higher education under its jurisdiction pursuant to section six of this article. The role of the commission in approving an institutional president is to assure through personal interview that the person selected understands and is committed to achieving the goals and objectives as set forth in the institutional compact and in section one-a, article one of this chapter;
     (21) (18) Approve the total compensation package from all sources for institutional presidents of institutions under its jurisdiction, as proposed by the governing boards. The governing boards must obtain approval from the commission of the total compensation package both when institutional presidents are employed initially and afterward when any change is made in the amount of the total compensation package;
     (22) (19) Establish and implement the policy of the state to assure that parents and students have sufficient information at the earliest possible age on which to base academic decisions about what is required for students to be successful in college, other post-secondary education and careers related, as far as possible, to results from current assessment tools in use in West Virginia;
     (23) (20) Approve and implement a uniform standard, as developed by the chancellor, jointly with the council to determine which students shall be placed in remedial or developmental courses. The standard shall be aligned with college admission tests and assessment tools used in West Virginia and shall be applied uniformly by the governing boards throughout the public higher education system. The chancellor chancellors shall develop a clear, concise explanation of the standard which the governing boards they shall communicate to the state board of education and the state superintendent of schools;
     (24) (21) Review and approve or disapprove capital projects as described in subdivision (12) (11) of this subsection;
     (25) (22) Develop Jointly with the council, develop and implement an oversight plan to manage system-wide technology such as the following:
     (A) Expanding distance learning and technology networks to enhance teaching and learning, promote access to quality educational offerings with minimum duplication of effort; and
     (B) increase Increasing the delivery of instruction to nontraditional students, to provide services to business and industry and increase the management capabilities of the higher education system; and
     
(B) Reviewing courses and programs offered electronically within the state by nonstate public or private institutions of higher education,
     
(26) (23) Establish and implement policies and procedures to ensure that students may transfer and apply toward the requirements for a bachelor's degree the maximum number of credits earned at any regionally accredited in-state or out-of-state community and technical college with as few requirements to repeat courses or to incur additional costs as is consistent with sound academic policy;
     (27) (24) Establish and implement policies and procedures to ensure that students may transfer and apply toward the requirements for a degree the maximum number of credits earned at any regionally accredited in-state or out-of-state higher education institution with as few requirements to repeat courses or to incur additional costs as is consistent with sound academic policy;
     (28) (25) Establish and implement policies and procedures to ensure that students may transfer and apply toward the requirements for a master's degree the maximum number of credits earned at any regionally accredited in-state or out-of-state higher education institution with as few requirements to repeat courses or to incur additional costs as is consistent with sound academic policy;
     (29) (26) Establish and implement policies and programs, in cooperation with the council and the institutions of higher education, through which students who have gained knowledge and skills through employment, participation in education and training at vocational schools or other education institutions, or internet-based education programs, may demonstrate by competency-based assessment that they have the necessary knowledge and skills to be granted academic credit or advanced placement standing toward the requirements of an associate degree or a bachelor's degree at a state institution of higher education;
     (30) (27) Seek out and attend regional, national and international meetings and forums on education and work force development-related topics, as in the commission's discretion is critical for the performance of their duties as members, for the purpose of keeping abreast of education trends and policies to aid it in developing the policies for this state to meet the established education goals and objectives pursuant to section one-a, article one of this chapter;
     (31) (28) Develop, establish and implement guidelines for higher education governing boards and institutions to follow when considering capital projects. The guidelines shall include, but not be limited to, the following:
     (A) That the governing boards and institutions not approve or promote projects that give competitive advantage to new private sector projects over existing West Virginia businesses, unless the commission determines such private sector projects are in the best interest of the students, the institution and the community to be served; and
     (B) That the governing boards and institutions not approve or promote projects involving private sector businesses which would have the effect of reducing property taxes on existing properties or avoiding, in whole or in part, the full amount of taxes which would be due on newly developed or future properties;
     The commission shall determine whether the guidelines developed pursuant to this subdivision should apply to any project which a governing board and institution allege to have been planned on or before the seventeenth day of June, two thousand. In making the determination, the commission shall be guided by the best interests of the students, the institution and the community to be served
     
(32) Certify to the Legislature, on or before the first day of February, two thousand one, the priority funding percentages and other information needed to complete the allocation of funds in section five, article one-a of this chapter;
     
(33) (29) Consider and submit to the appropriate agencies of the executive and legislative branches of state government a single budget for higher education that reflects recommended appropriations Provided, That on the first day of January, two thousand one, and annually thereafter the from the commission and the institutions under its jurisdiction. The commission shall submit as part of its budget proposal the separate recommended appropriations it received from the council both for the council and the institutions under the council's jurisdiction. The commission annually shall submit the proposed institutional allocations based on each institution's progress toward meeting the goals of its institutional compact;
     (34) Initiate a full review and analysis of all student fees charged by state institutions of higher education and make recommendations to the legislative oversight commission on education accountability no later than the second day of January, two thousand two. The final report shall contain findings of fact and recommendations for proposed legislation to condense, simplify and streamline the fee schedule and the use of fees or other money collected by state institutions of higher education;
     
(35) (30) The commission has the authority to assess institutions under its jurisdiction for the payment of expenses of the commission or for the funding of statewide higher education services, obligations or initiatives related to the goals set forth for the provision of public higher education in the state;
     (36) (31) Promulgate rules allocating reimbursement of appropriations, if made available by the Legislature, to institutions of higher education for qualifying noncapital expenditures incurred in the provision of services to students with physical, learning or severe sensory disabilities;
     (37) (32) Make appointments to boards and commissions where this code requires appointments from the state college system board of directors or the university of West Virginia system board of trustees which were abolished effective the thirtieth day of June, two thousand, except in those cases where the required appointment has a specific and direct connection to the provision of community and technical college education, the appointment shall be made by the council. Notwithstanding any provisions of this code to the contrary, the commission or the council may appoint one of its own members or any other citizen of the state as its designee. The commission and council shall appoint the total number of persons in the aggregate required to be appointed by these previous governing boards;
     (38) Assume the powers set out in section five, article three of this chapter. The rules previously promulgated by the state college system board of directors pursuant to that section are hereby transferred to the commission and shall continue in effect until rescinded, revised, altered or amended by the commission;
     
(39) Examine and determine the feasibility of recommendations contained in the Implementation Board Report presented to the commission in January, two thousand one, and, at the discretion of the commission, create the advantage valley community college network to enhance provision of community and technical college education in the responsibility areas of Marshall university, West Virginia state college and West Virginia university institute of technology;
     
(40) (33) Pursuant to the provisions of article three-a, chapter twenty-nine-a of this code and section six, article one of this chapter, promulgate rules as necessary or expedient to fulfill the purposes of this chapter. The commission may and the council shall promulgate a new uniform joint legislative rule for the purpose of standardizing, as much as possible, the administration of personnel matters among the institutions of higher education;
     (41) (34) Determine when a joint rule among the governing boards of the institutions under its jurisdiction is necessary or required by law and, in those instances and in consultation with the governing boards, promulgate the joint rule;
     (35) Implement a policy jointly with the council whereby course credit earned at a community and technical college transfers for program credit at any other state institution of higher education and is not limited to fulfilling a general education requirement; and
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(42) (36) Promulgate a joint rule with the council establishing tuition and fee policy for all institutions of higher education. The rule shall include, but is not limited to, the following:
     (A) Comparisons with peer institutions;
     (B) Differences among institutional missions;
     (C) Strategies for promoting student access;
     (D) Consideration of charges to out-of-state students; and
     (E) Such other policies as the commission considers and council consider appropriate. and
     
(43) Develop a method for the council, or members thereof, to participate in the selection of administrative heads of the community and technical colleges.
     (b) In addition to the powers and duties listed in subsection (a) of this section, the commission has the following general powers and duties related to its role in developing, articulating and overseeing the implementation of the public policy agenda:
     (1) Planning and policy leadership including a distinct and visible role in setting the state's policy agenda and in serving as an agent of change;
     (2) Policy analysis and research focused on issues affecting the system as a whole or a geographical region thereof;
     (3) Development and implementation of institutional mission definitions including use of incentive money funds to influence institutional behavior in ways that are consistent with public priorities;
     (4) Academic program review and approval for institutions under its jurisdiction including the use of institutional missions as a template to judge the appropriateness of both new and existing programs and the authority to implement needed changes;
     (5) Development of budget and allocation of resources, including reviewing and approving institutional operating and capital budgets and distributing incentive and performance-based funding;
     (6) Administration of state and federal student aid programs under the supervision of the vice chancellor for administration, including promulgation of any rules formerly vested in the previous governing boards in relation to necessary to administer those programs;
     (7) Acting Serving as the agent to receive and disburse public funds when a governmental entity requires designation of a statewide higher education agency for this purpose;
     (8) Development, establishment and implementation of information, assessment and accountability systems, including maintenance of statewide data systems that facilitate long-term planning and accurate measurement of strategic outcomes and performance indicators;
     (9) Jointly with the council, developing, establishing and implementing policies for licensing and oversight for both public and private degree-granting and nondegree-granting institutions that provide post-secondary education courses or programs in the state pursuant to the findings and policy recommendations to be determined as set forth in section eleven of this article;
     (10) Development, implementation and oversight of statewide and regionwide projects and initiatives related to providing post-secondary education at the baccalaureate level and above such as those using funds from federal categorical programs or those using incentive and performance-based funding from any source; and
     (11) Quality assurance that intersects with all other duties of the commission particularly in the areas of planning, policy analysis, program review and approval, budgeting and information and accountability systems.
     (c) In addition to the powers and duties provided for in subsections (a) and (b) of this section and any other powers and duties as may be assigned to it by law, the commission has such other powers and duties as may be necessary or expedient to accomplish the purposes of this article.
     (d) The commission is authorized to withdraw specific powers of any governing board of an institution under its jurisdiction for a period not to exceed two years if the commission makes a determination that:
     (1) The governing board has failed for two consecutive years to develop an institutional compact as required in article one of this chapter;
     (2) The commission has received information, substantiated by independent audit, of significant mismanagement or failure to carry out the powers and duties of the board of governors according to state law; or
     (3) Other circumstances which, in the view of the commission, severely limit the capacity of the board of governors to carry out its duties and responsibilities.
     (4) The period of withdrawal of specific powers may not exceed two years during which time the commission is authorized to take steps necessary to reestablish the conditions for restoration of sound, stable and responsible institutional governance.
     (e) Notwithstanding the provisions of section six, article one-a of this chapter, the commission shall undertake a study of the most effective and efficient strategies and policies to address the findings and intent of that section.
     
(1) The issues addressed by this study shall include, but not be limited to:
     
(A) Strategies to ensure access to graduate education;
     
(B) The development of state colleges as regional graduate centers with authority to broker access to graduate programs in their responsibility areas;
     
(C) The process by which state colleges obtain authorization to grant graduate degrees;
     
(D) The relationship of regional graduate centers at state colleges to graduate programs offered within those regions by state universities; and
     
(E) Other issues related to initiatives to meet each region's need and enhance the quality and competitiveness of graduate programs offered and/or brokered by West Virginia state colleges and universities.
     
(2) The commission shall report the findings of this study along with the recommendations for legislative actions, if any, to address these findings and the intent of this section, to the legislative oversight commission on education accountability by the first day of January, two thousand one.
§18B-1B-5. Employment of chancellor for higher education; office; powers and duties generally; employment of vice chancellors.

     (a) The commission, created pursuant to section one of this article, shall employ a chancellor for higher education who shall be is the chief executive officer of the commission and who shall serve serves at its will and pleasure. The vice chancellor for administration shall serve as the interim chancellor until a chancellor is employed.
     (b) The commission shall set the qualifications for the position of chancellor and shall conduct a thorough nationwide search for qualified candidates. A qualified candidate is one who meets at least the following criteria:
     (1) Possesses an excellent academic and administrative background;
     (2) Demonstrates strong communication skills;
     (3) Has significant experience and an established national reputation as a professional in the field of higher education;
     (4) Is free of institutional or regional biases; and
     (5) Holds or retains no other administrative position within the a system of higher education while employed as chancellor.
_____(c) The commission shall conduct written performance evaluations of the chancellor annually and may offer the chancellor a contract not to exceed three years. At the end of each contract period, the commission shall review the evaluations and make a determination by vote of its members on continuing employment and compensation level.
_____(d) When filling a vacancy in the position of chancellor, the commission shall enter into an initial employment contract for one year with the candidate selected. At the end of the initial contract period, and each contract period thereafter, the commission shall review the evaluations and make a determination by vote of its members on continuing employment and compensation level for the chancellor.
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(c) (e) The chancellor shall be compensated on a basis in excess of, but not to exceed twenty percent greater than, the base salary of any president of a state institution of higher education or the administrative head of a governing board.
     (d) (f) With the approval of the commission, The chancellor commission may employ a vice chancellor for health sciences who shall serve serves at the will and pleasure of the chancellor commission. The vice chancellor for health sciences shall coordinate the West Virginia university school of medicine, the Marshall university school of medicine and the West Virginia school of osteopathic medicine and also shall provide assistance to the governing boards on matters related to medical education and health sciences. The vice chancellor for health sciences shall perform all duties assigned by the chancellor, the commission and state law. In the case of a vacancy in the office of vice chancellor of health sciences, the duties assigned to this office by law are the responsibility of the chancellor or a designee.
     (e) With the approval of the commission, the chancellor shall employ a vice chancellor for community and technical college education and work force development who serves at the will and pleasure of the chancellor. The duties of this position include serving as the chief executive officer of the West Virginia council for community and technical college education created pursuant to article two-b of this chapter, and such other duties as assigned by law or by the commission. Any reference in this code to the vice chancellor for community and technical colleges means the vice chancellor for community and technical college education and work force development, which vice chancellor for community and technical colleges shall become the vice chancellor for community and technical college education and work force development. It is the duty and responsibility of the vice chancellor for community and technical college education and work force development to:
     
(1) Provide assistance to the commission, the chancellor and the governing boards on matters related to community and technical college education;
     
(2) Advise, assist and consult regularly with the institutional presidents; institutional boards of governors or boards of advisors, as appropriate; and district consortia committees of the state institutions of higher education involved in community and technical college education; and
     
(3) Perform all duties assigned by the chancellor, the commission and state law.
     
(f) With the approval of the commission, the chancellor
     
(g) With the approval of the The commission the chancellor shall employ a vice chancellor for administration pursuant to section two, article four of this chapter.
     (g) (h) With the approval of the The commission the chancellor may employ a vice chancellor for state colleges who shall serve serves at the will and pleasure of the chancellor commission. It is the duty and responsibility of the vice chancellor for state colleges to:
     (1) Provide assistance to the commission, the chancellor and the state colleges on matters related to or of interest and concern to these institutions;
     (2) Advise, assist and consult regularly with the institutional presidents and institutional boards of governors of each state college;
     (3) Serve as an advocate and spokesperson for the state colleges to represent them and to make their interests, views and issues known to the chancellor, the commission and governmental agencies;
     (4) Perform all duties assigned by the chancellor, the commission and state law.
     In addition, the vice chancellor for state colleges has the responsibility and the duty to provide staff assistance to the institutional presidents and governing boards to the extent practicable.
     (h) Apart from the offices of the vice chancellors as set forth in this section and section two, article four of this chapter, the chancellor shall determine the organization and staffing positions within the office that are necessary to carry out his or her powers and duties and may employ necessary staff.
     (i) On behalf of the commission, the chancellor may enter into agreements with any state agency or political subdivision of the state, any state higher education institution or any other person or entity to enlist staff assistance to implement the powers and duties assigned by the commission or by state law.
     (j) The chancellor shall be is responsible for the day-to-day daily operations of the commission and shall have has the following responsibilities relating to the commission and the institutions under its jurisdiction:
     (1) To carry out policy and program directives of the commission;
     (2) To develop and submit annual reports on the implementation plan to achieve the goals and objectives set forth in section one-a, article one of this chapter and in the institutional compacts;
     (3) To prepare and submit to the commission for its approval the proposed budget of the commission including the offices of the chancellor and the vice chancellors;
     (4) On and after the first day of July, two thousand one, to To assist the governing boards in developing rules, subject to the provisions of section six, article one of this chapter. Provided, That Nothing in this chapter requires the rules of the governing boards to be filed pursuant to the rule-making procedures provided in article three-a, chapter twenty-nine-a of this code. The chancellor shall be is responsible for ensuring that any policy which is required to be uniform across the institutions is applied in a uniform manner;
     (5) To perform all other duties and responsibilities assigned by the commission or by state law.
     (k) The chancellor shall be reimbursed for all actual and necessary expenses incurred in the performance of all assigned duties and responsibilities.
     (l) The chancellor, is the primary advocate for higher education and with the commission, advises the Legislature on matters of higher education in West Virginia. As the primary advocate for higher education the The chancellor shall work closely with the legislative oversight commission on education accountability and with the elected leadership of the state to ensure that they are fully informed about higher education issues and that the commission fully understands the goals for higher education that the Legislature has established by law.
     (m) The chancellor may design and develop for consideration by the commission new statewide or regional initiatives in accordance with the goals set forth in section one-a, article one of this chapter and the public policy agenda articulated by the commission. In those instances where the initiatives to be proposed have a direct and specific impact or connection to community and technical college education as well as to baccalaureate and graduate education, the chancellor for higher education and the chancellor for community and technical college education shall design and develop the initiatives jointly for consideration by the commission and the council.
     (n) The chancellor shall work closely with members of the state board of education and with the state superintendent of schools to assure that the following goals are met:
     (1) Development and implementation of a seamless kindergarten-through-college system of education; and
     (2) Appropriate coordination of missions and programs. To further the goals of cooperation and coordination between the commission and the state board of education, the chancellor shall serve serves as an ex officio, nonvoting member of the state board of education.
§18B-1B-6. Appointment of institutional presidents; evaluation.

     (a) Appointment of institutional presidents. -- Appointment of presidents of the public institutions of higher education shall be made as follows:
     (1) Subject to the approval of the commission, the appropriate governing board of the institution shall appoint appoints a president for Bluefield state college, Concord college, eastern West Virginia community and technical college Fairmont state college, Glenville state college, Marshall university, Shepherd college, southern West Virginia community and technical college West Liberty state college, West Virginia northern community and technical college West Virginia school of osteopathic medicine, West Virginia state college and West Virginia university.
     (2) Subject to the approval of the appropriate governing board council and to the provisions of article three-c of this chapter, the president governing board of the appropriate institution shall appoint West Virginia University appoints the president of the regional campuses campus known as West Virginia university and of the community and technical colleges which remain linked administratively to a sponsoring institution. The presidents of such regional campuses and community and technical colleges shall serve at the will and pleasure of the institutional president. The president of the sponsoring institution shall appoint a president for the administratively linked community and technical college at the appropriate time as outlined in the institutional compact and approved by the commission. at Parkersburg. When selecting candidates for consideration to fill the office of president, the governing board shall use the search and screening process provided for in section one, article six of this chapter.
_____Subject to the approval of the commission, the governing board of West Virginia University appoints the president of the regional campus known as West Virginia university institute of technology.
The president of each regional campus serves at the will and pleasure of the appointing governing board.
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(4) (3) Subject to the approval of the council, the governing board of the community and technical college shall appoint appoints a president for eastern West Virginia community and technical college, southern West Virginia community and technical college and West Virginia northern community and technical college.
     (4) Subject to the approval of the council, the governing board of the sponsoring institution appoints a president for each administratively linked community and technical colleges which shares a physical campus location with the sponsoring institution, including Fairmont state community and technical college, Marshall community and technical college, the community and technical college at West Virginia university institute of technology and West Virginia state community and technical college. The president of the sponsoring institution shall appoint a president for the administratively linked community and technical college at the appropriate time as outlined in the institutional compact and approved by the commission.
     
(3) Subject to the approval of the commission and to the provisions of article three-c of this chapter, the president of the appropriate institution shall appoint the provost in those cases where the community and technical college remains as a component of another institution. The provost shall serve at the will and pleasure of the president of the employing institution.
     
(5) Subject to the approval of the council, the governing board of the community and technical college appoints a president for each administratively linked community and technical college which does not share a physical campus location with the sponsoring institution, including New River community and technical college and the community and technical college of Shepherd.
_____Subject to the approval of the council, the governing board of the sponsoring institution appoints a president for each of these two community and technical colleges until the institution gains independent accreditation.

     (b) Other appointments. -- Appointments of administrative heads of state institutions of higher education shall be made in accordance with the provisions of subsection (a) of this section except in the following instances:
     
(1) Effective the first day of July, two thousand three, the institutional president shall appoint a provost to be the administrative head of New River community and technical college; and
     
(2) Effective the first day of July, two thousand five, the institutional president shall appoint a provost to be the administrative head of the Potomac campus of West Virginia university.
     (c) Evaluation of administrative heads presidents. -- The appointing governing boards board shall conduct written performance evaluations of each institution's president except the presidents of regional campuses shall be evaluated by the president of West Virginia university. The provosts including the presidents of administratively linked community and technical colleges. and other consolidated, merged or administratively linked units. shall be evaluated by the president of the employing institution. Evaluations shall be done in every fourth year of employment as administrative head president, recognizing unique characteristics of the institution and utilizing institutional personnel, institutional boards of advisors as appropriate, staff of the appropriate governing board and persons knowledgeable in higher education matters who are not otherwise employed by a governing board. A part of the evaluation shall be a determination of the success of the institution in meeting the requirements of its institutional compact.
§18B-1B-11. Study of licensing and oversight of certain institutions providing post-secondary education.

     (a) The commission and the council shall conduct a joint study of current policies relating to licensing and oversight of both public and private degree-granting and nondegree-granting entities providing post-secondary education programs or courses within the state or from locations outside this state through distance learning or any technology methods.
     (b) The study shall include, but is not limited to, the following:
     (1) The strengths and weaknesses of current state and higher education policies including a determination of how well the policies protect consumers and whether such protection should be expanded;
     (2) The appropriate entity within public higher education to assume licensing and oversight of each type of institution;
     (3) The standards to be used for program approval or a method to develop such standards; and
     (4) The requirements for fees and bonding.
     The commission and the council shall report their findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate the recommendations, to the legislative oversight commission on education accountability by the first day of December, two thousand four.
ARTICLE 2A. INSTITUTIONAL BOARDS OF GOVERNORS.

§18B-2A-1. Composition of boards; terms and qualifications of members; vacancies; eligibility for reappointment.

     
(a) Effective the thirtieth day of June, two thousand one, the institutional boards of advisors at Bluefield state college, Concord college, eastern West Virginia community and technical college, Fairmont state college, Glenville state college, Marshall university, Shepherd college, southern West Virginia community and technical college, West Liberty state college, West Virginia northern community and technical college, the West Virginia school of osteopathic medicine, West Virginia state college and West Virginia university are abolished.
     
(b) Effective the first day of July, two thousand one,
     
(a) A board of governors is established continued at each of the following institutions: Bluefield state college, Concord college, eastern West Virginia community and technical college, Fairmont state college, Glenville state college, Marshall university, Shepherd college, southern West Virginia community and technical college, West Liberty state college, West Virginia northern community and technical college, the West Virginia school of osteopathic medicine, West Virginia state college and West Virginia university. Each board of governors shall consist of twelve persons. Provided, That the institutional boards of governors for Marshall university and West Virginia university shall consist of fifteen persons.
     
(b) For the community and technical college of Shepherd and New River community and technical college the institutional board of advisors remains in place until the institution achieves independent accreditation as provided in section eight, article three-c of this chapter.
_____(1) As long as the institutional board of advisors remains in place, the chairperson of the board of advisors serves as an ex officio, voting member of the board of governors of the sponsoring institution;
_____(2) When the community and technical college achieves independent accreditation, the board of advisors is abolished and a board of governors is established with members appointed pursuant to this section;
_____(3) When a board of governors is established for the community and technical college:
_____(A) The chairperson of the governing board of the sponsoring institution serves as an ex officio, nonvoting member of the governing board of the community and technical college board of governors; and
_____(B) The chairperson of the governing board of the community and technical college serves as an ex officio, nonvoting member of the governing board of the sponsoring institution.
_____(4) In making the initial appointments to these boards of governors, the governor shall appoint those persons who are lay members of the institutional boards of advisors, except in the case of death, resignation or failure to be confirmed by the Senate.
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(c) The institutional board of governors for Marshall university consists of sixteen persons and the institutional board of governors for West Virginia university consists of seventeen persons. Each other board of governors consists of twelve persons.
     (d) Each board of governors shall include includes the following members:
     (1) A full-time member of the faculty with the rank of instructor or above duly elected by the faculty of the respective institution;
     (2) A member of the student body in good academic standing, enrolled for college credit work and duly elected by the student body of the respective institution;
     (3) A member from the institutional classified employees duly elected by the classified employees of the respective institution; and
     (4) Nine lay members appointed by the governor by and with the advice and consent of the Senate pursuant to section one-a, article six of this chapter. Provided, That For the institutional boards of governors at Marshall university and West Virginia university, twelve lay members shall be appointed by the governor by and with the advice and consent of the Senate pursuant to section one-a, article six of this chapter: Provided, however, That of the appointed lay members, the governor shall appoint one superintendent of a county board of education from the area served by the institution: Provided further, That in making the initial appointments to the institutional boards of governors, the governor shall appoint, except in the case of death, resignation or failure to be confirmed by the Senate, those persons who are lay members of the institutional boards of advisors for those institutions named in subsection (a) on the thirtieth day of June, two thousand one, and appointed pursuant to section one-a, article six of this chapter.
     
(4) For the institutional board of governors at Marshall university, twelve lay members appointed by the governor, by and with the advice and consent of the Senate, pursuant to this section and, additionally, the chairperson of the institutional board of advisors of Marshall community and technical college serving as an ex officio, voting member.
_____(5) For the institutional board of governors at West Virginia university, twelve lay members appointed by the governor by and with the advice and consent of the senate pursuant to this section and, additionally, the chairperson of the institutional board of advisors of the community and technical college at West Virginia university institute of technology and West Virginia university at Parkersburg.
_____(6) For each institutional board of governors of an institution that does not have an administratively linked community and technical college under its jurisdiction, nine lay members appointed by the governor, by and with the advice and consent of the Senate, pursuant to this section.
_____(7) For each institutional board of governors which has an administratively linked community and technical college under its jurisdiction:
_____(A) Eight lay members appointed by the governor, by and with the advice and consent of the Senate, pursuant to this section and, additionally, the chairperson of the institutional board of advisors of the administratively linked community and technical college; and
_____(B) Of the eight lay members appointed by the governor, one shall be the superintendent of a county board of education from the area served by the institution.
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(c) (e) Of the eight or nine members appointed by the governor, no more than five may be of the same political party. Provided, That of Of the twelve members appointed by the governor to the governing boards of Marshall university and West Virginia university, no more than seven may be of the same political party. Of the eight or nine members appointed by the governor, at least six of the members shall be residents of the state. Provided, however, That Of the twelve members appointed by the governor to the governing boards of Marshall university and West Virginia university, at least eight of the members shall be residents of the state.
     (d) (f) The student member shall serve serves for a term of one year. The term beginning in July, two thousand one, shall end on the thirtieth day of June, two thousand two. Thereafter, The term shall begin Each term begins on the first day of July.
     (e) (g) The faculty member shall serve serves for a term of two years. The term beginning in July, two thousand one, ends on the thirtieth day of June, two thousand three. Thereafter, the term shall begin Each term begins on the first day of July. Faculty members are eligible to succeed themselves for three additional terms, not to exceed a total of eight consecutive years.
     (f) (h) The member representing classified employees shall serve serves for a term of two years. The term beginning in July, two thousand one, shall end on the thirtieth day of June, two thousand three. Thereafter, the term shall begin Each term begins on the first day of July. Members representing classified employees are eligible to succeed themselves for three additional terms, not to exceed a total of eight consecutive years.
     (g) (i) The appointed lay citizen members shall serve terms of four years each and shall be are eligible to succeed themselves for no more than one additional term.
     (h) (j) A vacancy in an unexpired term of a member shall be filled for the unexpired term within thirty days of the occurrence of the vacancy in the same manner as the original appointment or election. Except in the case of a vacancy, all elections shall be held and all appointments shall be made no later than the thirtieth day of June preceding the commencement of the term. except the election of officers for the term beginning in July, two thousand one shall be made that July Each board of governors shall elect one of its appointed lay members to be chairperson in June of each year. No member may A member may not serve as chairperson for more than two consecutive years.
     (i) (k) The appointed members of the institutional boards of governors shall serve staggered terms of the initial appointments by the governor to each of the institutional boards of governors, two shall be appointed for terms of one year, two shall be appointed for terms of two years, two shall be appointed for terms of three years and three shall be appointed for terms of four years: Provided, That for the initial appointments to the governing boards of Marshall university and West Virginia university, three shall be appointed for terms of one year, three shall be appointed for terms of two years, three shall be appointed for terms of three years and three shall be appointed for terms of four years. After the initial appointments, all appointees shall serve for terms of four years.
     (j) No person shall be eligible
     
(l) A person is ineligible for appointment to membership on a board of governors of a state institution of higher education under the following conditions:
     (1) For a baccalaureate institution or university, a person is ineligible for appointment who is an officer, employee or member of any other board of governors, a member of an institutional board of advisors of any public institution of higher education, an employee of any institution of higher education, an officer or member of any political party executive committee, the holder of any other public office or public employment under the government of this state or any of its political subdivisions or a member of the council or commission. Provided, That this subsection shall not be construed to This subsection does not prevent the representative from the faculty, classified employees, or students or chairpersons of the boards of advisors or the superintendent of a county board of education from being members of the governing boards.
     (2) For a community and technical college, a person is ineligible for appointment who is an officer, employee or member of any other board of governors; a member of an institutional board of advisors of any public institution of higher education; an employee of any institution of higher education; an officer or member of any political party executive committee; the holder of any other public office, other than an elected county office, or public employment, other than employment by the county board of education, under the government of this state or any of its political subdivisions; or a member of the council or commission. This subsection does not prevent the representative from the faculty, classified employees, students or chairpersons of the boards of advisors from being members of the governing boards.
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(k) (m) Before exercising any authority or performing any duties as a member of a governing board, each member shall qualify as such by taking and subscribing to the oath of office prescribed by section five, article IV of the constitution of West Virginia and the certificate thereof shall be filed with the secretary of state.
     (l) (n) No A member of a governing board appointed by the governor may not be removed from office by the governor except for official misconduct, incompetence, neglect of duty or gross immorality and then only in the manner prescribed by law for the removal of the state elective officers by the governor.
     (m) (o) The president of the institution shall make available resources of the institution for conducting the business of its board of governors. The members of the board of governors shall serve without compensation, but shall be are reimbursed for all reasonable and necessary expenses actually incurred in the performance of their official duties under this article upon presentation of an itemized sworn statement of their expenses. All expenses incurred by the board of governors and the institution under this section shall be are paid from funds allocated to the institution for that purpose.
§18B-2A-4. Powers and duties of governing boards generally.
     
Each governing board separately has the following powers and duties:
     (a) Determine, control, supervise and manage the financial, business and education policies and affairs of the state institutions of higher education under its jurisdiction;
     (b) Develop a master plan for the institutions under its jurisdiction except the administratively linked community and technical colleges which retain an institutional board of advisors shall develop their master plans subject to the provisions of section one, article six of this chapter. The ultimate responsibility for developing and updating the master plans at the institutional level resides with the board of governors, or board of advisors, as applicable, but the ultimate responsibility for approving the final version of the institutional master plans, including periodic updates, resides with the commission or council, as appropriate. Each master plan shall include, but not be limited to, the following:
     (1) A detailed demonstration of how the master plan will be used to meet the goals and objectives of the institutional compact;
     (2) A well-developed set of goals outlining missions, degree offerings, resource requirements, physical plant needs, personnel needs, enrollment levels and other planning determinates and projections necessary in such a plan to assure that the needs of the institution's area of responsibility for a quality system of higher education are addressed;
     (3) Documentation of the involvement of the commission or council, as appropriate, institutional constituency groups, clientele of the institution and the general public in the development of all segments of the institutional master plan.
     The plan shall be established for periods of not less than three nor more than six years and shall be revised periodically as necessary, including the addition or deletion of degree programs as, in the discretion of the appropriate governing board, may be necessary;
     (c) Prescribe for the institutions under its jurisdiction, in accordance with its master plan and the compact for each institution, specific functions and responsibilities to meet the higher education needs of its area of responsibility and to avoid unnecessary duplication;
     (d) Direct the preparation of a budget request for the institutions under its jurisdiction, such request to relate directly to missions, goals and projections as found in the institutional master plans and the institutional compacts;
     (e) Consider, revise and submit to the commission or council, as appropriate, a budget request on behalf of the institutions under its jurisdiction;
     (f) Review, at least every five years, all academic programs offered at the institutions under its jurisdiction. The review shall address the viability, adequacy and necessity of the programs in relation to its institutional master plan, the institutional compact and the education and work force needs of its responsibility district. As a part of the review, each governing board shall require the institutions under its jurisdiction to conduct periodic studies of its graduates and their employers to determine placement patterns and the effectiveness of the education experience. Where appropriate, these studies should coincide with the studies required of many academic disciplines by their accrediting bodies;
     (g) The governing boards shall ensure that the sequence and availability of academic programs and courses offered by the institutions under their jurisdiction is such that students have the maximum opportunity to complete programs in the time frame normally associated with program completion. Each governing board is responsible to see that the needs of nontraditional college-age students are appropriately addressed and, to the extent it is possible for the individual governing board to control, to assure core course work completed at institutions under its jurisdiction is transferable to any other state institution of higher education for credit with the grade earned;
     (h) Subject to the provisions of article one-b of this chapter, the appropriate governing board has the exclusive authority to approve the teacher education programs offered in the institution under its control. In order to permit graduates of teacher education programs to receive a degree from a nationally accredited program and in order to prevent expensive duplication of program accreditation, the chancellor commission may select and utilize one nationally recognized teacher education program accreditation standard as the appropriate standard for program evaluation;
     (i) Utilize faculty, students and classified employees in institutional-level planning and decisionmaking when those groups are affected;
     (j) Subject to the provisions of federal law and pursuant to the provisions of article nine of this chapter and to rules adopted by the commission and the council, administer a system for the management of personnel matters, including, but not limited to, personnel classification, compensation and discipline for employees of at the institutions under their jurisdiction;
     (k) Administer a system for hearing employee grievances and appeals. Notwithstanding any other provision of this code to the contrary, the procedure established in article six-a, chapter twenty-nine of this code is the exclusive mechanism for hearing prospective employee grievances and appeals. In construing the application of said article to grievances of higher education employees, the following apply:
     (1) "Chief administrator" means the president of a state institution of higher education as to those employees employed by the institution and the appropriate chancellor as to those employees employed by the commission or council;
     (2) The state division of personnel may not be a party to nor have any authority regarding a grievance initiated by a higher education employee; and
     (3) The provisions of this section supersede and replace the grievance procedure set out in article twenty-nine, chapter eighteen of this code for any grievance initiated by a higher education employee after the first day of July, two thousand one;
     (l) Solicit and utilize or expend voluntary support, including financial contributions and support services, for the institutions under its jurisdiction;
     (m) Appoint a president or other administrative head for the institutions under its jurisdiction subject to the provisions of section six, article one-b of this chapter;
     (n) Conduct written performance evaluations of each institution's the president pursuant to section six, article one-b of this chapter;
_____(o) Employ all faculty and staff at the institution under its jurisdiction. Such employees operate under the supervision of the president, but are employees of the governing board;
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(o) (p) Submit to the commission or council, as appropriate, no later than the first day of November of each year an annual report of the performance of the institutions institution under its jurisdiction during the previous fiscal year as compared to stated goals in its master plan and institutional compact;
     (p) (q) Enter into contracts or consortium agreements with the public schools, private schools or private industry to provide technical, vocational, college preparatory, remedial and customized training courses at locations either on campuses of the public institution of higher education or at off-campus locations in the institution's responsibility district. To accomplish this goal, the boards are permitted to share resources among the various groups in the community;
     (q) (r) Provide and transfer funding and property to certain corporations pursuant to section ten, article twelve of this chapter;
     (r) (s) Delegate, with prescribed standards and limitations, the part of its power and control over the business affairs of a particular institution under its jurisdiction to the president or other administrative head of the institution to the president in any case where it considers the delegation necessary and prudent in order to enable the institution to function in a proper and expeditious manner and to meet the requirements of its institutional compact. If a governing board elects to delegate any of its power and control under the provisions of this subsection, it shall notify the appropriate chancellor. Any such delegation of power and control may be rescinded by the appropriate governing board or the chancellor at any time, in whole or in part;
     (s) (t) Unless changed by the chancellor commission or the council, as appropriate, the governing boards shall continue to abide by existing rules setting forth standards for acceptance of advanced placement credit for their respective institutions. Individual departments at institutions of higher education may, upon approval of the institutional faculty senate, require higher scores on the advanced placement test than scores designated by the appropriate governing board when the credit is to be used toward meeting a requirement of the core curriculum for a major in that department;
     (t) (u) Each governing board, or its designee, shall consult, cooperate and work with the state treasurer and the state auditor to update as necessary and maintain an efficient and cost-effective system for the financial management and expenditure of special revenue and appropriated state funds at the institutions under its jurisdiction that ensures that properly submitted requests for payment be paid on or before due date but, in any event, within fifteen days of receipt in the state auditor's office;
     (u) (v) The governing boards in consultation with the appropriate chancellor and the secretary of the department of administration shall develop, update as necessary and maintain a plan to administer a consistent method of conducting personnel transactions, including, but not limited to, hiring, dismissal, promotions and transfers at the institutions under their jurisdiction. Each such personnel transaction shall be accompanied by the appropriate standardized system or forms which will be submitted to the respective governing board and the department of finance and administration;
     (v) (w) Notwithstanding any other provision of this code to the contrary, the governing boards may transfer funds from any account specifically appropriated for their use to any corresponding line item in a general revenue account at any agency or institution under their jurisdiction as long as such transferred funds are used for the purposes appropriated. The governing boards may transfer funds from appropriated special revenue accounts for capital improvements under their jurisdiction to special revenue accounts at agencies or institutions under their jurisdiction as long as such transferred funds are used for the purposes appropriated; and
     
(w) (x) Notwithstanding any other provision of this code to the contrary, the governing boards may acquire legal services as are considered necessary, including representation of the governing boards, their institutions, employees and officers before any court or administrative body. The counsel may be employed either on a salaried basis or on a reasonable fee basis. In addition, the governing boards may, but are not required to, call upon the attorney general for legal assistance and representation as provided by law; and
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(y) Each governing board which has under its jurisdiction an administratively linked community and technical college or a regional campus offering community and technical college education programs shall create within the administrative structure of its governing board a subcommittee for community and technical college education. The subcommittee shall have at least four members, one of whom is the chairperson of the board of advisors of the community and technical college or, in the case of the governing board of West Virginia university, both the member representing the community and technical college and the member representing the regional campus;
§18B-2A-6. University status for public baccalaureate institutions of higher education.

     
(a) The purpose of this section is to redesignate certain existing public baccalaureate institutions as universities and to provide a mechanism for other public baccalaureate institutions to become universities. The change in name is based on each institution's ability to meet minimum standards developed and adopted by the commission.
     (b) Each governing board of a public baccalaureate institution is authorized to make changes which would further its eligibility to attain university status:
     (1) If the college meets the eligibility requirements established by the commission to attain university status and if the commission grants university status, then the governing board shall determine the effective date on which the public baccalaureate institution becomes a university; and
     (2) On and after the effective date designated by the governing board, the baccalaureate institution shall be designated a university.
     (c) Concord college, Fairmont state college, Shepherd college and West Virginia state college, having met the eligibility requirements established by the commission to attain university status, are hereby designated as universities on the effective date of this section.
     (d) An institution may not request or seek additional state appropriations as a result of the redesignation provided for in this section. No consequences, including the need to meet future accreditation requirements in order to maintain university status, which arise as a result of designating an existing state college as a university, provide sufficient justification for an institution to request or in any way seek additional state funds.
     (e) Notwithstanding any provision of this code to the contrary, Marshall university and West Virginia university are, and remain, the only research and doctoral degree-granting public institutions of higher education in this state.
ARTICLE 2B. WEST VIRGINIA COUNCIL FOR COMMUNITY AND TECHNICAL COLLEGE EDUCATION.

§18B-2B-1. Legislative findings; intent; purpose.
     (a) The Legislature hereby finds that:
     (1) The goals, objectives and purposes contained in Enrolled Senate Bill No. 653, passed during the two thousand regular legislative session, in two thousand reflected the research findings available to the Legislature at the time; since then, however, additional research indicates that, while Enrolled Senate Bill No. 653 moves in the appropriate direction of independent accreditation and meeting essential conditions for public community and technical colleges, the legislation does not take the final steps that are considered to be necessary by independent researchers. This position is clearly demonstrated by the recent research findings and recommendations cited below:
     (A) "West Virginia: A Vision Shared! Economic Development: A Plan for West Virginia's Future", hereinafter cited in this article and article two-c of this chapter as the Market Street Report, is a research document commissioned by the West Virginia council for community and economic development to assess the economic competitiveness of the state. The report makes a number of findings and recommendations important to public community and technical college education:
     (i) The state needs to adopt and implement a specific focus on technical education; in particular, it needs to move away from the traditionally isolated and limited vocational programming towards a systematic approach of teaching technical skills that employers need today;
     (ii) The state needs to establish a strong technical education system that is separate from the university system and is responsive to the needs of business throughout the state;
     (iii) The state needs to establish as a high-level priority the training and retraining of its working-age adults to help them acquire and maintain the competitive skills they need to succeed in today's economy; and
     (iv) The state needs to emphasize the role of lifelong learning as a critical piece of its overall education and training system if the state is to make the transition to the new economy.
     (B) The Report to the Legislative Oversight Commission on Education Accountability, hereinafter cited in this article and article two-c as the McClenney Report, is a study required by provisions of Enrolled Senate Bill No. 653 and conducted by Dr. Kay McClenney. The research found that:
     (i) The participation rate in West Virginia community and technical college education is substantially lower than will be necessary if the state is to achieve its goals for economic development and prosperity for its citizens;
     (ii) The low visibility of the component community and technical colleges effectively restricts access for the West Virginians who most need encouragement to participate in post-secondary education and training;
     (iii) It is not clear that the parent institutions of the component community colleges actually embrace the community college mission;
     (iv) The community and technical college developmental education programs are under serving by far the evident needs of the population, especially as that service relates to nontraditional students;
     (v) Adults over age twenty-five are under represented in the community and technical college student populations;
     (vi) Technical education program development and enrollment are not at the levels necessary to serve the needs of the state;
     (vii) Independent accreditation and the essential conditions required by Enrolled Senate Bill No. 653 are necessary, but not sufficient alone to provide a strong enough tool to accomplish the state's goal to strengthen community and technical college education;
     (viii) The community and technical college will not be able to operate optimally until they move out of the shadow of their "parent" institutions, with the flexibility and autonomy to establish a uniquely community college identity, culture, program mix, outreach capacity and approach to teaching and learning;
_____(ix) The development of stronger support mechanisms for the community and technical colleges should be an extension of the ongoing step-by-step process for achieving the goals for post secondary education in the state;
_____(x) Building on the foundations laid in Enrolled Committee Substitute for Senate Bill No. 547 and Enrolled Senate Bill No. 653, the Legislature should now establish the further systemic and policy supports that are needed for the community and technical college to thrive, perform and meet state goals;
_____(xi) Implementation will necessarily be incremental;
_____(xii) The consistent focus at the state level should be on the statewide mission of raising educational attainment, increasing adult literacy, promoting workforce and economic development and ensuring access to advanced education for the citizens of West Virginia;
_____(xiii) The solution must ensure a high degree of flexibility and autonomy at the local level, preserving the ability of community and technical colleges to respond rapidly and effectively to local needs;
_____(xiv) At the same time, there is serious and recognized need for statewide leadership, coordination and support for the work of the community and technical colleges and the advocacy for the public priorities that these institutions are charged to address;

and therefore
     (viii) (xv) The state needs to create a community college support capacity at the state level that will bring leadership, coordination, technical support, advocacy and critical mass to a statewide network of local community and technical college campuses.
     (C) The Report and Recommendations of the Implementation Board to the West Virginia Higher Education Policy Commission, hereinafter cited in this article and article two-c of this chapter as the Implementation Board Report, is a study required by Enrolled Senate Bill No. 653 to determine the most effective and efficient method to deliver community and technical college services in the former responsibility areas of Marshall university, West Virginia state college and West Virginia university institute of technology. The Implementation Board Report states its goals and vision for community and technical college education in the advantage valley region as one of a dynamic, vital and vibrant community college network which offers:
     (i) Affordable, quality training and education to students;
     (ii) Represents a recognized path of choice to success in the knowledge economy for thousands of West Virginians; and
     (iii) Provides West Virginia businesses with the highly skilled work force necessary to meet their evolving needs in the global knowledge economy.
     (D) In furtherance of their goals, the Implementation Board Report recommended formation of the advantage valley community college network:
     (i) To enhance economic development through coordinated leadership and a delivery system for education and training initiatives;
     (ii) To provide accountability through a separate compact and through independent accreditation of each of the affected community and technical colleges; and
     (iii) To enhance education opportunities for the citizens of the area and assist in overcoming the barrier of accessibility in higher education.
     (b) Based on the recent research cited above, the Legislature further finds that:
     (1) The recommendations of the Market Street Report clearly point out the shortcomings of the state's current approach to providing post-secondary education and programs and show the consequences of failing to change appropriately;
     (2) The research, findings, vision and goals set forth in the McClenney Report and the Implementation Board Report are noteworthy and, although written, in part, to address specific institutions, have broad application statewide for community and technical colleges;
     (3) The research shows that:
     (A) A need exists to enhance community and technical college education in West Virginia through the delivery of services that meet the goals of this chapter and that are delivered pursuant to the process for meeting the essential conditions established in section three, article three-c of this chapter;
     (B) A need exists for statewide leadership, coordination and support for the work of the community and technical colleges and for advocacy for the public priorities these institutions are charged to address;
     (C) Community and technical colleges need to be efficient, avoiding duplication and the burden of bureaucracy while recognizing fiscal realities;
     (D) Community and technical colleges need a high degree of flexibility and local autonomy to preserve and expand their ability to respond rapidly and effectively to local or regional needs;
     (E) Community and technical colleges need state-level support and leadership that recognize differences among regions of the state and among institutions and accept the reality that institutions are at different stages in their development and have different challenges and capabilities;
     (F) Clear benchmarks and regular monitoring are required to assess the progress of community and technical colleges toward meeting the established goals and for meeting the essential conditions, including independent accreditation, established in this chapter;
     (G) Implementation will necessarily be incremental;
     (4) Certain acts to streamline accountability, to make maximum use of existing assets to meet new demands and target funding to initiatives designed to enhance and reorient existing capacity and to provide incentives for brokering and collaboration require that the role of the joint commission for vocational-technical- occupational education be reexamined.
     (c) Legislative intent. -- The intent of the Legislature in enacting this article is to address the research findings cited above by reconstituting the joint commission for vocational- technical-occupational education as the West Virginia council for community and technical college education in order to reorient the mission, role and responsibilities consistent with and supportive of the mission, role and responsibilities of the commission, the goals for post-secondary education and accountability for assisting the public community and technical colleges, branches, centers, regional centers and other delivery sites with a community and technical college mission in achieving the state's public policy agenda.
     (d) Purpose. -- The purpose of this article is to provide for the development of a leadership and support mechanism for the community and technical colleges, branches, centers, regional centers and other delivery sites with a community and technical college mission to assist them in meeting the essential conditions and in the step-by-step implementation process for achieving the goals for community and technical college education as provided for in article three-c of this chapter and to promote coordination and collaboration among secondary and post-secondary vocational- technical-occupational and adult basic education programs as provided for in this chapter and chapter eighteen of this code. The focus of this leadership and support mechanism is to encourage development of a statewide mission to raise education attainment, increase adult literacy, promote work force and economic development and ensure access to secondary and post-secondary education for the citizens of the state while maintaining the local autonomy and flexibility necessary to the success of community and technical education.
§18B-2B-2. Definitions.
     The following words when used in this article have the meaning hereinafter ascribed to them unless the context clearly indicates a different meaning:
     (a) "Adult basic education" means adult basic skills education designed to improve the basic literacy needs of adults, including information processing skills, communication skills and computational skills, leading to a high school equivalency diploma under the jurisdiction of the state board of education.
     (b) "Post-secondary vocational-technical-occupational education" means any course or program beyond the high school level that results in, or may result in, the awarding of a two-year associate degree, certificate or other credential from an institution under the jurisdiction of a governing board or other public or private education provider.
     (c) "Secondary vocational-technical-occupational education" means any course or program at the high school level that results in, or may result in, a high school diploma or its equivalent under the jurisdiction of the state board of education.
     (d) "Vice chancellor" means the vice chancellor for community and technical college education and work force development "Chancellor for community and technical college education" means the chief executive officer of the West Virginia council for community and technical college education employed pursuant to section five three, article one-b two-b of this chapter. Any reference in this code to the vice chancellor for community and technical college education and work force development means the chancellor for community and technical college education.
     (e) "West Virginia council for community and technical college education" or "council" means the council established pursuant to section three of this article. On and after the effective date of this article any Any reference in this code to the joint commission for vocational-technical-occupational education means the West Virginia council for community and technical college education.
§18B-2B-3. West Virginia council for community and technical college education; supervision of chancellor; chief executive officer.

     
(a) Effective the first day of July, two thousand one, the West Virginia joint commission for vocational-technical- occupational education is reconstituted as the West Virginia council for community and technical college education. Any reference in this code to the joint commission for vocational-technical-occupational education means the West Virginia council for community and technical college education.
_____(a) There is continued the West Virginia council for community and technical college education. The council has all the powers and duties assigned by law to the joint commission for vocational-technical-occupational education prior to the effective date of this section and such other powers and duties as may be assigned by law. or by the commission
     (b) The council is subject to the jurisdiction of the commission established in article one-b of this chapter. The vice chancellor shall employ a chancellor for community and technical college education. The chancellor serves as chief executive officer of the council at the will and pleasure of the council. The chancellor shall be compensated at a level set by the council not to exceed eighty percent of the annual salary of the chancellor for higher education.
_____(1) The vice chancellor for community and technical college education and work force development, as the current chief executive officer of the council, shall continue in such capacity upon the effective date of this section, and shall be the chancellor for community and technical college education.
_____(A) The council shall conduct a written performance evaluation of the chancellor one year after the effective date of this section. The council shall report the results of the evaluation to the legislative oversight commission on education accountability during the legislative interim meeting period following the evaluation.
_____(B) After reviewing the evaluation, the council shall make a determination by vote of its members on continuing employment and compensation level for the chancellor.
_____(C) After the initial contract period, the council shall conduct written performance evaluations of the chancellor annually and may offer the chancellor a contract of longer term, but not to exceed three years. At the end of each contract period, the council shall review the evaluations and make a determination by vote of its members on continuing employment and level of compensation.
_____(D) When a vacancy occurs in the position of chancellor, the council shall enter into an initial employment contract for one year with the candidate selected to fill the vacancy. At the end of the initial period, the council shall make a determination by vote of its members on continuing employment and compensation level for the chancellor and shall continue thereafter as set forth in paragraph (C) of this subdivision.
_____(2) The chancellor maintains all benefits of employment held, accrued and afforded as the vice chancellor for community and technical college education and workforce development. Such benefits include, but are not limited to, retirement benefits, continued membership in the same retirement system, any insurance coverage and sick and annual leave. For the purposes of leave conversion established in section thirteen, article sixteen, chapter five of this code, the chancellor is not a new employee, and the prohibition on conversion does not apply if the chancellor was eligible for leave conversion while serving as vice chancellor on the day preceding the effective date of this section. On the effective date of this section, for the purpose of section thirteen article sixteen, chapter five of this code, the chancellor:
_____(A) Maintains all sick and annual leave accrued, and all rights to convert the leave that had been accrued as vice chancellor; and
_____(B) Continues to maintain his or her status for eligibility under the provisions and application of said section as applied while serving as vice chancellor on the day preceding the effective date of this section.
§18B-2B-4. Appointment, composition and terms of council.
     
(a) On the effective date of this section, the joint commission for vocational-technical-occupational education is reconstituted as the West Virginia council for community and technical college education and all terms of members appointed by the governor prior to the effective date of this section expire upon the appointment by the governor of all the members required to be appointed by this section.
     
(b) (a) The council is comprised of eight thirteen members selected as follows:
     (1) Three Eight members appointed by the governor, with the advice and consent of the Senate:
     (A) One member shall be appointed from each community and technical college consortia district as established in this section.
_____(B) Prior to appointment, the governor shall interview each candidate to assure that the person selected understands and is committed to achieving the goals and objectives as set forth in the institutional compacts and in section one-a, article one of this chapter. The governor shall invite the president of the Senate, the speaker of the House of Delegates, the chairs of the Senate and House of Delegates committees on finance and education and such other legislative leaders as the governor may determine to participate in interviewing potential candidates. Each member appointed to the council by the governor shall represent the public interest and shall be committed to the legislative intent and goals set forth in section one-a, article one of this chapter.
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(2) Two members appointed by the governor from a list of six persons nominated by the president of the Senate: Provided, That no more than two nominees may be from the same congressional district and no more than three may be from the same political party;
     
(3) Two members appointed by the governor from a list of six persons nominated by the speaker of the House of Delegates: Provided, That no more than two nominees may be from the same congressional district and no more than three may be from the same political party; and (4)
     
(2) The chairperson of the West Virginia work force investment council;
_____(3) The executive director of the West Virginia development office, or designee;
_____(4) The president of the West Virginia AFL-CIO, or a designee;
_____
(5) The chair of the higher education policy commission who serves as an ex officio, nonvoting member of the council; and
_____
(6) The assistant superintendent for technical and adult education of the state department of education who serves as an ex officio, nonvoting member of the council;
     (c) The governor may, but is not required to reappoint any person who was a member of the joint commission immediately prior to the effective date of this section: Provided, That the individual selected is otherwise eligible to serve.
     
(d) (b) All appointed members shall be citizens Any appointed member shall be a citizen of the state, shall represent the public interest and shall be persons who understand and be committed to achieving the goals and objectives set forth in section one-a, article one of this chapter, the essential conditions for community and technical college education programs and services set forth in article three-c of this chapter, and the goals for secondary and post-secondary vocational-technical-occupational and adult basic education in the state. The appointed members Any appointed member shall represent the interests of the business, labor and employer communities and demonstrate knowledge of the education needs of the various regions, attainment levels and age groups within the state.
     (e) (c) The governor may not appoint any person to be a member of the council who is an officer, employee or member of an advisory board of any state college or university, the holder of any other public office or public employment under the government of this state or any of its political subdivisions, an appointee or employee of any governing board or an immediate family member of any employee under the jurisdiction of the commission or any governing board. No individual may An individual may not serve on the council who is engaged in providing, or employed by a person or company whose primary function is to provide, workforce development services and activities. of the members appointed by the governor, no more than four thereof may belong to the same political party and no more than three may be appointed from any congressional district.
     
(f) (d) Members of the council shall serve for staggered terms of four years. except that of the original appointments, one member shall be appointed for one year; two members shall be appointed for two years; two members shall be appointed for three years; and two members shall be appointed for four years. No member may serve more than two consecutive full terms nor may any member be appointed to a term which results in the member serving more than eight consecutive years. Notwithstanding the provisions of subdivision (1), subsection (a) of this section, on the effective date of this section any current member of the council maintains his or her appointment to the council and continues to serve for the remainder of the term for which originally appointed. Any additional appointment required by the provisions of said subdivision shall represent a consortia district not otherwise represented on the council.
§18B-2B-5. Meetings and compensation.
     (a) The vice chancellor shall call the initial meeting of the council and preside until a chairperson is selected. The members shall elect a chairperson from among the persons appointed by the governor. The council shall hold at least eight meetings annually and may meet more often at the call of the chairperson. One such meeting shall be a public forum for the discussion of the goals and standards for workforce development, economic development and vocational education in the state.
     (b) The council shall hold an annual meeting each June for the purpose of electing officers for the next fiscal year. At the annual meeting, the council shall elect from its appointed members a chairperson and other officers as it may consider necessary or desirable. Provided, That the initial meeting for the purpose of selecting the first chairperson and other officers shall be held during July, two thousand one, or as soon thereafter as practicable. The chairperson and other officers shall be are elected for a one-year term two-year terms commencing on the first day of July following the annual meeting. Provided, however, That the terms of officers elected in July, two thousand one, begin upon election and end on the thirtieth day of June, two thousand two. The chairperson of the board may serve no more than two consecutive two-year terms as chair, except that the member serving as chairperson of the council on the effective date of this section is eligible to serve a two-year term regardless of the number of consecutive terms already served.
     (c) Members of the council shall serve without compensation. but shall be Members shall be reimbursed for all reasonable and necessary expenses actually incurred in the performance of their official duties under this article upon presentation of an itemized sworn statement of their expenses. except that the An ex officio member of the council who is an employee of the state shall be is reimbursed by the employing agency.
     (d) A majority of the members appointed constitutes a quorum for conducting the business of the council. All action taken by the council shall be by majority vote of the members present.
§18B-2B-6. Powers and duties of the council.
     
(a) The council has all the powers and duties assigned to the joint commission prior to the effective date of this article as set forth in the provisions of section two, article two-b, chapter eighteen of this code and such other powers and duties as may be assigned by law or by the commission. Authority granted under that section to the joint commission as
     
(a) The council is the sole agency responsible for the administration of vocational-technical-occupational education and community and technical college education in the state. is hereby transferred to the council. (b) Under the supervision of the commission The council has jurisdiction and authority over the community and technical colleges and the system of community and technical college education as a whole, including community and technical college education programs as defined in section two, article one of this chapter.
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(b) As relates to the authority established in subsection (a) of this section, the council has the following powers and duties:
     (1) Develop, oversee and advance the public policy agenda as it relates to community and technical college education to address major challenges facing the state, including, but not limited to, the goals and objectives found in section one-a, article one of this chapter and including specifically those goals and objectives pertaining to the compacts created pursuant to section two, article one-a of this chapter and to develop and implement the master plan described in section nine of this article for the purpose of accomplishing the mandates of this section;
_____
(2) Jointly with the commission, develop, oversee and advance the implementation of a financing policy for higher education in West Virginia. The policy shall meet the following criteria:
_____(A) Provide an adequate level of education and general funding for institutions pursuant to section five, article one-a of this chapter;
_____(B) Serve to maintain institutional assets, including, but not limited to, human and physical resources and deferred maintenance;

_____(C) Invest and provide incentives for achieving the priority goals in the public policy agenda, including, but not limited to, those found in section one-a, article one of this chapter; and
_____(D) Establish for incorporation into the financing policy for higher education in West Virginia a plan for strategic funding to strengthen capacity for support of community and technical college education;
_____
(3) Create a policy leadership structure relating to community and technical college education capable of the following actions:
_____(A) Developing, building public consensus around and sustaining attention to a long-range public policy agenda. In developing the agenda, the council shall seek input from the Legislature and the governor and specifically from the state board of education and local school districts in order to create the necessary linkages to assure smooth, effective and seamless movement of students through the public education and post-secondary education systems and to ensure that the needs of public school courses and programs can be fulfilled by the graduates produced and the programs offered;
_____(B) Ensuring that the governing boards of the institutions under the council's jurisdiction carry out their duty effectively to govern the individual institutions of higher education; and
_____(C) Holding the community and technical college institutions and the community and technical college system as a whole accountable for accomplishing their missions and implementing the provisions of the compacts;
_____
(1) To develop and recommend to the commission
     
(4) To develop for inclusion in the statewide public agenda, a plan for raising education attainment, increasing adult literacy, promoting work force and economic development and ensuring access to advanced education for the citizens of West Virginia;
     (2) (5) To provide statewide leadership, coordination, support, and technical assistance to the community and technical colleges and to provide a focal point for visible and effective advocacy for their work and for the public policy agenda adopted approved by the commission and council. For the institutions under their jurisdiction, this responsibility includes, but is not limited to:
     (A) Ensuring that the governing boards carry out their duty effectively to govern the individual institutions of higher education; and
     (B) Holding the higher education institutions and the higher education system as a whole accountable for accomplishing their missions and implementing the provisions of the compacts;
     (3) To review and approve
     
(6) To review and adopt annually all institutional compacts for the community and technical colleges prior to their submission to the commission for final approval pursuant to the provisions of section two, article one-a of this chapter;
_____
(4) To consider and submit to the commission a budget
     
(7) Serve as the accountability point to:
_____(A) The governor for implementation by the community and technical colleges of their role in advancing the public policy agenda; and
_____(B) The Legislature by maintaining a close working relationship with the legislative leadership and the legislative oversight commission on education accountability;
_____(8) Jointly with the commission, promulgate a legislative rule pursuant to article three-a, chapter twenty-nine-a of this code to fulfill the purposes of section five, article one-a of this chapter;
_____(9) Establish and implement the benchmarks and performance indicators necessary to measure institutional achievement towards state policy priorities and institutional missions;
_____
(10) Review the progress of community and technical colleges in every region of West Virginia. The review includes, but is not limited to, evaluating and reporting annually to the legislative oversight commission on education accountability on the step-by-step implementation required in article three-c of this chapter;
_____
(11) Annually report to the Legislature and to the legislative oversight commission on education accountability during the January interim meetings on a date and at a time and location to be determined by the president of the Senate and the speaker of the House of Delegates. The report shall address at least the following:
_____(A) The performance of the community and technical college system during the previous fiscal year, including, but not limited to, progress in meeting goals stated in the compacts and progress of the institutions and the system as a whole in meeting the goals and objectives set forth in section one-a, article one of this chapter;
_____(B) The priorities established for capital investment needs pursuant to subdivision (12) of this subsection and the justification for such priority;
_____(C) Recommendations of the council for statutory changes necessary to further the goals and objectives set forth in section one-a, article one of this chapter;
_____(12) Establish a formal process for identifying needs for capital investments and for determining priorities for these investments. When the needs have been determined, the council shall take the following steps:
_____(A) Develop a ranked list of the top ten projects for capital investment for the institutions under its jurisdiction;
_____(B) Convey the ranked list to the commission for its consideration pursuant to section four, article one-b of this chapter;
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(13) Draw upon the expertise available within the governor's work force investment office and the West Virginia development office as a resource in the area of work force development and training;
_____(14) Acquire legal services as are considered necessary, including representation of the council, its institutions, employees and officers before any court or administrative body, notwithstanding any other provision of this code to the contrary. The counsel may be employed either on a salaried basis or on a reasonable fee basis. In addition, the council may, but is not required to, call upon the attorney general for legal assistance and representation as provided by law;
_____(15) Employ a chancellor for community and technical college education pursuant to section three of this article;
_____(16) Employ other staff as necessary and appropriate to carry out the duties and responsibilities of the council consistent with the provisions of section two, article four of this chapter;
_____(17) Employ other staff as necessary and appropriate to carry out the duties and responsibilities of the council who are employed solely by the council;
_____(18) Provide suitable offices in Charleston for the chancellor and other staff;
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(19) Approve the total compensation package from all sources for presidents of community and technical colleges, as proposed by the governing boards. The governing boards must obtain approval from the council of the total compensation package both when presidents are employed initially and subsequently when any change is made in the amount of the total compensation package;
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(20) Establish and implement policies and procedures to ensure that students may transfer and apply toward the requirements for a degree the maximum number of credits earned at any regionally accredited in-state or out-of-state higher education institution with as few requirements to repeat courses or to incur additional costs as is consistent with sound academic policy;
_____
(21) Establish and implement policies and programs, jointly with the community and technical colleges, through which students who have gained knowledge and skills through employment, participation in education and training at vocational schools or other education institutions, or internet-based education programs, may demonstrate by competency-based assessment that they have the necessary knowledge and skills to be granted academic credit or advanced placement standing toward the requirements of an associate degree or a bachelor's degree at a state institution of higher education;
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(22) Seek out and attend regional and national meetings and forums on education and work force development-related topics, as in the council's discretion is critical for the performance of their duties as members for the purpose of keeping abreast of community and technical college education trends and policies to aid it in developing the policies for this state to meet the established education goals and objectives pursuant to section one-a, article one of this chapter;
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(23) Assess community and technical colleges for the payment of expenses of the council or for the funding of statewide services, obligations or initiatives related specifically to the provision of community and technical college education;
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(24) Promulgate rules allocating reimbursement of appropriations, if made available by the Legislature, to community and technical colleges for qualifying noncapital expenditures incurred in the provision of services to students with physical, learning or severe sensory disabilities;
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(25) Assume the prior authority of the commission in examining and approving tuition and fee increase proposals submitted by community and technical college governing boards as provided in section one, article ten of this chapter.
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(26) Consider and submit to the commission, a single budget for community and technical college education that reflects recommended appropriations for community and technical colleges and that:
     (A) Includes recommended appropriations;
     
(B) Considers the progress of each institution toward meeting the essential conditions set forth in section three, article three-c of this chapter, including independent accreditation; and
     (C) (B) Considers the progress of each institution toward meeting the goals established in its institutional compact;
     (5) To make recommendations to the commission for approval of the administration and distribution of
     
(27) Administer and distribute the independently accredited community and technical college development account;
     (6) (28) To design and recommend to the commission Establish a plan of strategic funding to strengthen capacity for support of community and technical college education in all areas of the state;
     (7) (29) To Foster coordination among all state-level, regional and local entities providing post-secondary vocational education or work force development and to coordinate all public institutions and entities that have a community and technical college mission;
     (8) (30) To assume on behalf of the commission Assume the principal responsibility for overseeing the implementation of the step-by-step process for achieving independent accreditation and for meeting the essential conditions pursuant to article three-c of this chapter;
     (9) To participate in the selection of administrative heads of the community and technical colleges; as directed by the commission
     
(31) Advise and consent in the appointment of the presidents of the community and technical colleges pursuant to section six, article one-b of this chapter. The role of the council in approving a president is to assure through personal interview that the person selected understands and is committed to achieving the goals and objectives as set forth in the institutional compact and in section one-a, article one of this chapter;
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(10) (32) To provide Provide a single, statewide link for current and prospective employers whose needs extend beyond one locality;
     (11) (33) To provide Provide a mechanism that serves two or more institutions to facilitate joint problem-solving in areas including, but not limited to:
     (A) Defining faculty roles and personnel policies;
     (B) Delivering high-cost technical education programs across the state;
     (C) Providing one-stop service for workforce training to be delivered by multiple institutions; and
     (D) Providing opportunities for resource-sharing and collaborative ventures;
     (12) (34) To provide Provide support and technical assistance to develop, coordinate, and deliver effective and efficient community and technical college education programs and services in the state;
     (13) (35) To assist Assist the community and technical colleges in establishing and promoting links with business, industry and labor in the geographic areas for which each of the community and technical colleges is responsible;
     (14) (36) To develop Develop alliances among the community and technical colleges for resource sharing, joint development of courses and courseware, and sharing of expertise and staff development;
     (15) (37) To serve Serve aggressively as an advocate for development of a seamless curriculum;
     (16) (38) To cooperate Cooperate with the governor's P-20 council of West Virginia to remove barriers relating to transfer and articulation between and among community and technical colleges, state colleges and universities, and public education, preschool through grade twelve;
     (17) (39) To encourage Encourage the most efficient utilization of available resources; The council for community and technical college education is responsible for advising the commission on these issues and making appropriate recommendations
     
(16) (40) To assist Coordinate with the commission in informing public school students, their parents and teachers of the academic preparation that students need in order to be prepared adequately to succeed in their selected fields of study and career plans, including presentation of academic career fairs;
     (41) Jointly with the commission, approve and implement a uniform standard, as developed by the chancellors, to determine which students shall be placed in remedial or developmental courses. The standard shall be aligned with college admission tests and assessment tools used in West Virginia and shall be applied uniformly by the governing boards throughout the public higher education system. The chancellors shall develop a clear, concise explanation of the standard which the governing boards shall communicate to the state board of education and the state superintendent of schools;
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(40) (42) Develop and implement strategies and curriculum for providing developmental education which shall be applied by any state institution of higher education providing developmental education.
     (17) (43) To assist the commission in developing Develop a statewide system of community and technical college programs and services in every region of West Virginia for competency-based certification of knowledge and skills, including a statewide competency-based associate degree program;
     (18) (44) To review Review and approve all institutional master plans for the community and technical colleges; prior to their submission to the commission for final approval
     
(19) (45) To recommend to the commission Establish policies or rules for promulgation that are necessary or expedient for the effective and efficient performance of community and technical colleges in the state;
     (46) In its sole discretion, transfer any rule under its jurisdiction, other than a legislative rule, to the jurisdiction of the governing boards who may rescind, revise, alter or amend any rule so transferred pursuant to rules adopted by the council;
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(20) (47) To recommend to the commission a set of Establish benchmarks and performance indicators to apply to for community and technical colleges to measure institutional progress toward meeting the goals as outlined in section one-a, article one of this chapter and in meeting the essential conditions established in article three-c of this chapter;
     (21) (48) To assist the commission staff in developing a separate section on community and technical colleges Develop for inclusion in the higher education report card, as defined in section eight, article one-b of this chapter, a separate section on community and technical colleges. This section shall include, but is not limited to, evaluation of the institutions based upon the benchmarks and indicators developed in subdivision (20) (47) of this subsection;
     (22) (49) If approved by the commission to facilitate creation Facilitate continuation of the advantage valley community college network under the leadership and direction of Marshall community and technical college; recommended by the Implementation Board Report
     
(50) Initiate and facilitate creation of as well as any other regional networks of affiliated community and technical colleges that the council finds to be appropriate and in the best interests of the citizens to be served; if requested by all affected institutions in that region; as the commission finds to be appropriate and in the best interests of the citizens to be served
     
(23) (51) To advise and assist the state board of education and the commission on Develop with the state board of education state plans for secondary and post-secondary vocational-technical-occupational and adult basic education, including, but not limited to:
     (A) Policies to strengthen vocational-technical-occupational and adult basic education; and
     (B) Programs and methods to assist in the improvement, modernization and expanded delivery of vocational- technical-occupational and adult basic education programs;
     (24) (52) To distribute Distribute federal vocational education funding provided under the Carl D. Perkins Vocational and Technical Education Act of 1998, PL 105-332, with an emphasis on the distribution of distributing financial assistance among secondary and post-secondary vocational-technical-occupational and adult basic education programs to help meet the public policy agenda.
     In distributing funds the council shall use the following guidelines:
     (A) The board of education shall continue to be the fiscal agent for federal vocational education funding;
     (B) For the fiscal years beginning on the first day of July, two thousand one and two thousand two, the percentage split of the federal allocation for vocational education between the West Virginia board of education and the commission shall remain the same as the percentage split that was distributed to the board of education and the commission for the fiscal year that began on the first day of July, two thousand;
     
(C) For the fiscal year beginning on the first day of July, two thousand three and thereafter,
     
(B) The percentage split between the board of education and the commission council shall be determined by rule promulgated by the council under the provisions of article three-a, chapter twenty-nine-a of this code. Provided, That the The council shall first obtain the approval of the board of education before proposing a rule;
     (25) (53) To collaborate Collaborate, cooperate and interact with all secondary and post-secondary vocational-technical-occupational and adult basic education programs in the state, including the programs assisted under the federal Carl D. Perkins Vocational and Technical Education Act of 1998, PL 105-332, and the Workforce Investment Act of 1998, to promote the development of seamless curriculum and the elimination of duplicative programs;
     (26) (54) To coordinate Coordinate the delivery of vocational- technical-occupational and adult basic education in a manner designed to make the most effective use of available public funds to increase accessibility for students;
     (27) (55) To analyze Analyze and report to the commission and the West Virginia board of education on the distribution of spending for vocational-technical-occupational and adult basic education in the state and on the availability of vocational-technical-occupational and adult basic education activities and services within the state;
     (28) (56) To promote Promote the delivery of vocational-technical-occupational education, adult basic education and community and technical college education programs in the state which emphasize the involvement of business, industry and labor organizations;
     (29) (57) To promote Promote public participation in the provision of vocational-technical-occupational education, adult basic education and community and technical education at the local level, with an emphasis on emphasizing programs which involve the participation of local employers and labor organizations;
     (30) (58) To promote Promote equal access to quality vocational-technical-occupational education, adult basic education and community and technical college education programs to handicapped and disadvantaged individuals, adults who are in need of training and retraining, individuals who are single parents, or homemakers, individuals participating participants in programs designed to eliminate sexual bias and stereotyping and criminal offenders serving in correctional institutions;
     (31) (59) To meet Meet annually between the months of October and December with the advisory committee of community and technical college presidents and provosts created pursuant to section eight of this article to discuss those matters relating to community and technical college education in which advisory committee members or the council may have an interest; and
     
(32) (60) To accept Accept and expend any gift, grant, contribution, bequest, endowment or other money for the purposes of this article;
     (61) Assume the powers set out in section five, article three of this chapter. The rules previously promulgated by the state college system board of directors pursuant to that section and transferred to the commission are hereby transferred to the council and shall continue in effect until rescinded, revised, altered or amended by the council;
_____(62) Pursuant to the provisions of article three-a, chapter twenty-nine-a of this code and section six, article one of this chapter, promulgate rules as necessary or expedient to fulfill the purposes of this chapter. The council and commission shall promulgate a uniform joint legislative rule for the purpose of standardizing, as much as possible, the administration of personnel matters among the institutions of higher education;
_____
(63) Determine when a joint rule among the governing boards of the community and technical colleges is necessary or required by law and, in those instances and in consultation with the governing boards, promulgate the joint rule;
_____
(64) Promulgate a joint rule with the commission establishing tuition and fee policy for all institutions of higher education. The rule shall include, but is not limited to, the following:
_____(A) Comparisons with peer institutions;
_____(B) Differences among institutional missions;
_____(C) Strategies for promoting student access;
_____(D) Consideration of charges to out-of-state students; and
_____(E) Such other policies as the commission and council consider appropriate;
_____
(65) In cooperation with the West Virginia division of highways, study a method for increasing the signage signifying community and technical college locations along the state interstate highways, and report to the legislative oversight commission on education accountability regarding any recommendations and required costs; and
_____(66) Implement a policy jointly with the commission whereby any course credit earned at a community and technical college transfers for program credit at any other state institution of higher education and is not limited to fulfilling a general education requirement.
_____
(c) In addition to the powers and duties listed in subsections (a) and (b) of this section, the council has the following general powers and duties related to its role in developing, articulating and overseeing the implementation of the public policy agenda for community and technical colleges:
_____(1) Planning and policy leadership including a distinct and visible role in setting the state's policy agenda for the delivery of community and technical college education and in serving as an agent of change;
_____(2) Policy analysis and research focused on issues affecting the community and technical college system as a whole or a geographical region thereof;
_____(3) Development and implementation of each community and technical college mission definition including use of incentive funds to influence institutional behavior in ways that are consistent with public priorities;
_____(4) Academic program review and approval for the institutions under its jurisdiction, including the use of institutional missions as a template to judge the appropriateness of both new and existing programs and the authority to implement needed changes;
_____(5) Development of budget and allocation of resources for institutions delivering community and technical college education, including reviewing and approving institutional operating and capital budgets and distributing incentive and performance-based funding;
_____(6) Acting as the agent to receive and disburse public funds related to community and technical college education when a governmental entity requires designation of a statewide higher education agency for this purpose;
_____(7) Development, establishment and implementation of information, assessment and accountability systems including maintenance of statewide data systems that facilitate long-term planning and accurate measurement of strategic outcomes and performance indicators for community and technical colleges;
_____(8) Jointly with the commission, development, establishment and implementation of policies for licensing and oversight of both public and private degree-granting and nondegree-granting institutions that provide post-secondary education courses or programs pursuant to the findings and policy recommendations to be determined as set forth in section eleven, article one-b of this chapter;
_____
(9) Development, implementation and oversight of statewide and regionwide projects and initiatives related specifically to providing community and technical college education such as those using funds from federal categorical programs or those using incentive and performance-based funding from any source; and
_____(10) Quality assurance that intersects with all other duties of the council particularly in the areas of planning, policy analysis, program review and approval, budgeting and information and accountability systems.
_____(d) The council is authorized to withdraw specific powers of a governing board under its jurisdiction for a period not to exceed two years if the council makes a determination that:
_____(1) The governing board has failed for two consecutive years to develop an institutional compact as required in article one of this chapter;
_____(2) The council has received information, substantiated by independent audit, of significant mismanagement or failure to carry out the powers and duties of the board of governors according to state law; or
_____(3) Other circumstances which, in the view of the council, severely limit the capacity of the board of governors to carry out its duties and responsibilities.
_____The period of withdrawal of specific powers may not exceed two years during which time the council is authorized to take steps necessary to reestablish the conditions for restoration of sound, stable and responsible institutional governance.
_____(e)
In addition to the powers and duties provided for in subsections (a) and (b), (c) and (d) of this section and any other powers and duties as may be assigned to it by law, or by the commission the council has:
     (1) Such other powers and duties as may be necessary or expedient to accomplish the purposes of this article; and
_____(2) All powers, duties and responsibilities directly related to community and technical colleges and community and technical college education that were vested in the commission prior to the effective date of this section.
_____
(f) When the council and commission, each, is required to consent, cooperate, collaborate or provide input into the actions of the other:
_____(1) The body acting first shall convey its decision in the matter to the other body with a request for concurrence in the action;
_____(2) The commission or the council, as the receiving body, shall place the proposal on its agenda and shall take final action within sixty days of the date when the request for concurrence is received; and
_____(3) If the receiving body fails to take final action within sixty days, the original proposal stands and is binding on both the commission and the council.
§18B-2B-6a. Transfer of funds; council authority to expend funds.

     On the effective date of this section, the unexpended balance remaining in the appropriation for the West Virginia council for community and technical education is transferred from the commission to the authority of the council to be expended by the council to carry out the purposes of this article.
§18B-2B-7. Powers and duties of the chief executive officer.
     
(a) The vice chancellor for community and technical college education is the chief executive officer of the council and as such may exercise the powers and duties assigned pursuant to subsection (3), section five, article one-b of this chapter. The vice chancellor has all powers and duties assigned by law or by the commission and, in addition by the council. The chancellor has the following powers and duties:
     (1) To serve as the principal accountability point for the commission council for implementation of the public policy agenda as it relates to community and technical colleges;
     (2) To serve on behalf of the commission as the liaison to the council and to the community and technical colleges;
     
(3) (2) To assume on behalf of the commission the principal responsibility for directing and assisting the work of the council; and
     (4) (3) With the approval of the commission and the chancellor to employ To supervise and direct staff of the council as necessary and appropriate to carry out the duties and responsibilities of this article.
     (A) On the first day of July, two thousand one effective date of this section, all personnel employed on the thirtieth day of June, two thousand one, within the joint commission for vocational-technical-occupational education are hereby transferred to the jurisdiction of the commission and are under the direct supervision of the vice chancellor and the chancellor: Provided, That by the commission and under the supervision of the vice chancellor for community and technical college education and workforce development on the first day of January, two thousand four, are transferred to the jurisdiction of the council and are under the direct supervision of the chancellor for community and technical college education.
_____
(B) Prior to the first day of October, two thousand one, no employee shall four, any such employee, including the chief executive officer of the council, may not be terminated or have his or her salary or benefit level reduced as the sole result of the governance reorganization set forth in this article.
_____(4) On behalf of the council, the chancellor may enter into agreements with any state agency or political subdivision of the state, any state higher education institution or any other person or entity to enlist staff assistance to implement the powers and duties assigned to the council by state law.
_____(5) The chancellor is responsible for the day-to-day operations of the council and has the following responsibilities:
_____(A) To carry out policy and program directives of the council;
_____(B) To develop and submit annual reports on the implementation plan to achieve the goals and objectives set forth in section one-a, article one of this chapter and in the institutional compacts;
_____(C) To prepare and submit to the council for its approval the proposed budget of the council including the office of the chancellor and necessary staff;
_____(D) To assist the governing boards in developing rules, subject to the provisions of section six, article one of this chapter. Nothing in this chapter requires the rules of the governing boards to be filed pursuant to the rule-making procedures provided in article three-a, chapter twenty-nine-a of this code. The chancellor is responsible for ensuring that any policy which is required to be uniform across the institutions under the jurisdiction of the council is applied in a uniform manner; and
_____(E) To perform all other duties and responsibilities assigned by the council or by state law.
_____(6) The chancellor shall be reimbursed for all actual and necessary expenses incurred in the performance of all assigned duties and responsibilities.
_____(7) The council is the primary advocate for community and technical college education and, with the chancellor, advises the Legislature on matters of community and technical college education in West Virginia. The chancellor shall work closely with the legislative oversight commission on education accountability and with the elected leadership of the state to ensure that they are fully informed about community and technical college education issues and that the council fully understands the goals for higher education that the Legislature has established by law.
_____(8) The chancellor may design and develop for consideration by the council new statewide or regional initiatives directly related to community and technical college education and in accordance with the goals set forth in section one-a, article one of this chapter and the public policy agenda.
_____
(9) The chancellor shall work closely with members of the state board of education and with the state superintendent of schools to assure that the following goals are met:
_____(A) Development and implementation of a seamless kindergarten-through-college system of education; and
_____(B) Appropriate coordination of missions and programs. To further the goals of cooperation and coordination between the council and the state board of education, the chancellor serves as an ex officio, nonvoting member of the state board of education.
§18B-2B-8. State advisory committee of community and technical college presidents.

     (a) Effective the first day of July, two thousand one, there is hereby created There is continued the state advisory committee of community and technical college presidents. and provosts For the purposes of this section, the state advisory committee of community and technical college presidents and provosts shall be is referred to as the "advisory committee".
     (b) Each president or other administrative head of a public community and technical college, as defined in section four, article three-c one, article six of this chapter, shall be is a member of the advisory committee. An administrative head of a component, branch, center, regional center or other delivery site with a community and technical college mission may be a member if considered appropriate.
     (c) The vice chancellor serves as chair of the advisory committee. and shall convene the initial meeting during the month of July, two thousand one. Thereafter the The advisory committee shall meet at least once each quarter and may meet at such other times as called by the chair or by a majority of the members.
     (d) The advisory committee shall communicate to the council through the vice chancellor on matters of importance to the group. and It shall meet annually between the months of October and December with the council to discuss those matters relating to community and technical college education in which advisory committee members or the council may have an interest.
     (e) The vice chancellor shall prepare meeting minutes which shall be made available, upon request, to the public.
ARTICLE 2C. WEST VIRGINIA COMMUNITY AND TECHNICAL COLLEGE.
§18B-2C-3. Authority and duty of council to determine progress of community and technical colleges; conditions; authority to create West Virginia community and technical college.

     (a) Beginning on the first day of July, two thousand one, and at least annually thereafter, the commission The council annually shall review and analyze all the public community and technical colleges, and any branches, centers, regional centers and or other delivery sites with a community and technical college mission, to determine their progress toward meeting the goals and objectives set forth in section one-a, article one of this chapter and toward advancing the purposes, goals and objectives set forth in article three-c of this chapter.
     (b) The analysis required in subsection (a) of this section shall be based, in whole or in part, upon the findings made pursuant to the rule establishing benchmarks and indicators required to be promulgated by the commission in section two, article one-a of this chapter council in section six, article two-b of this chapter.
     (c) Based upon their analysis in subsections (a) and (b) of this section, the commission council shall make a determination whether any one or more of the following conditions exist exists:
     (1) One or more of the component community and technical colleges required to do so has not achieved or is not making sufficient, satisfactory progress toward achieving the essential conditions, including independent accreditation;
     (2) One or more of the public community and technical colleges, branches, centers, regional centers and other delivery sites with a community and technical college mission requires financial assistance or other support to meet the goals and essential conditions set forth in this chapter;
     (3) It is in the best interests of the people of the state or a region within the state to have a single, accredited institution which can provide an umbrella of statewide accreditation;
     (4) It is in the best interests of the people of the state or a region of the state to have one accredited institution able to extend accreditation to institutions and entities required to seek independent accreditation;
     (5) One or more of the public community and technical colleges, branches, centers, regional centers or other delivery sites with a community and technical college mission requests from the commission council the type of assistance which can best be delivered through implementation of the provisions of section four of this article. Institutional requests that may be considered by the commission council include, but are not limited to, assistance in seeking and/or attaining independent accreditation, in meeting the goals for post-secondary education established in section one-a, article one of this chapter, in meeting the essential conditions set forth in section three, article three-c of this chapter, or in establishing and implementing regional networks.
     (6) One or more public community and technical colleges, branches, centers, regional centers or other delivery sites with a community and technical college mission has not met, or is not making sufficient, satisfactory progress toward meeting, the goals set forth in section one-a, article one of this chapter; and
     (7) The council makes a recommendation to the commission determines that it is in the best interests of the people of the state or a region of the state to create a statewide, independently accredited community and technical college.
     (d) The commission council may not make a determination subject to the provisions of subsection (c) of this section that a condition does not exist based upon a finding that the higher education entity lacks sufficient funds to make sufficient, satisfactory progress.
     (e) The commission shall prepare By the first day of December annually, the council shall prepare and file with the legislative oversight commission on education accountability a written report on the findings and determinations required by this section, for the legislative oversight commission on education accountability by the first day of December, two thousand one, and each year thereafter together with a detailed history of any actions taken by the commission council under the authority of this article.
§18B-2C-4. Authority of council in creating West Virginia community and technical college.

     (a) Subject to the provisions of subsection (c), section three of this article, if the commission council makes a determination that one or more of the conditions exists, then the commission council is authorized to create the West Virginia community and technical college.
     (b) As soon as practicable after the commission council determines that the college should be created, the commission council shall notify the governor, the president of the Senate, the speaker of the House of Delegates and the legislative oversight commission on education accountability of the proposed actions. Provided, That the commission The council shall conduct a study regarding the procedures, findings and determinations considered necessary prior to any creation of the college and shall report its findings to the legislative oversight commission on education accountability. no later than the first day of December, two thousand one: Provided, however, That the commission The council may not create the college prior to the report being received by the legislative oversight commission on education accountability.
     (c) The commission On or before the first day of December of the year in which the college is created, the council shall certify to the legislative oversight commission on education accountability on or before the first day of December of the year in which the college is created proposed legislation to accomplish the purposes of this article for those matters requiring statutory change.
ARTICLE 3C. COMMUNITY AND TECHNICAL COLLEGE SYSTEM.
§18B-3C-2. Purposes of article.

     The general purposes of this article are the following:
     (a) To establish community and technical college education that is well articulated with the public schools and four-year colleges; that makes maximum use of shared facilities, faculty, staff, equipment and other resources; that encourages traditional and nontraditional students and adult learners to pursue a lifetime of learning; that serves as an instrument of economic development; and that has the independence and flexibility to respond quickly to changing needs;
     (b) To charge the respective governing boards with providing community and technical college education at state institutions of higher education under their jurisdiction that has the administrative, programmatic and budgetary control necessary to allow maximum flexibility and responsiveness to district and community needs. Education services shall be provided consistent with the goal of sharing facilities, faculty, staff, equipment and other resources within and among the districts, the other systems of public and higher education and other education and training programs;
     (c) To establish the essential conditions for community and technical college programs and services, as defined in section three of this article, necessary to ensure that each region of West Virginia is served by a community and technical college meeting the needs of the people of the region;
     (d) To establish a mechanism for assuring that, where applicable, a transition plan for meeting the essential conditions is developed by each relevant community and technical college;
     (e) To establish responsibility community and technical college consortia districts for each of the community and technical colleges to ensure accountability that the full range of community and technical college education programs and services is provided in all areas of the state, including the implementation of seamless curricula and the West Virginia EDGE, "Earn a Degree Graduate Early" program;
     (f) To define the full range of programs and services that every each community and technical college has the responsibility to provide; and
     (g) To establish such other policies and procedures necessary to ensure that the needs of West Virginia, its people and its businesses are met for the programs and services that can be provided through a comprehensive system of community and technical colleges.
§18B-3C-3. Essential conditions for community and technical college programs and services.

     The Legislature hereby establishes the following essential conditions for community and technical college programs and services:
     (a) Independent accreditation by the commission on institutions of higher education higher learning commission of the north central association of colleges and schools (NCA), by the first day of July, two thousand five, reflecting external validation that academic programs, services, faculty, governance, financing and other policies are aligned with the community and technical college mission of the institution. An institution meets this requirement if on such date the council determines that the institution is on target to meet independent accreditation status. A community and technical college continues to share the accreditation of the sponsoring institution until such time as independent accreditation is achieved;
     (b) A full range of community and technical college services offered as specified in section six of this article;
     (c) Programmatic approval consistent with the provisions of section nine of this article;
     (d) A fee structure competitive with its peer institutions;
     (e) Basic services, some of which may be obtained under contract with existing institutions in the region. These basic services shall include, but are not limited to, the following:
     (1) Student services, including, but not limited to, advising, academic counseling, financial aid and provision of the first line of academic mentoring and mediation;
     (2) Instructional support services;
     (3) Access to information and library services;
     (4) Physical space in which courses can be offered;
     (5) Access to necessary technology for students, faculty and mentors;
     (6) Monitoring and assessment; and
     (7) Administrative services, including, but not limited to, registration, fee collection and bookstore and other services for the distribution of learning materials;
     (f) A provost president who is the chief academic and administrative executive officer of the community and technical college appointed and serving pursuant to the terms of section six, article one-b of this chapter. The provost shall report president reports directly to the president of the institution and shall have appropriate direct contact with the institutional board of governors. It is the responsibility of the board of governors to provide sufficient time on its agenda for each provost of a component community and technical college at each meeting for the president to discuss issues relevant to the mission of the component community and technical college;
     (g) An institutional board of governors or an institutional board of advisors appointed and serving as required by law;
     (h) A full-time core faculty, complemented by persons engaged through contract or other arrangements, including:
     (1) College and university faculty, to teach community college courses; and
     (2) Qualified business, industry and labor persons engaged as adjunct faculty in technical areas;
     (i) A faculty personnel policy, formally established to be separate and distinct from that of other institutions, which includes, but is not limited to, appointment, promotion, workload and, if appropriate, tenure pursuant to section nine of this article. These policies shall be appropriate for the community and technical college mission and may not be linked to the policies of any other institution;
     (j) Community and technical colleges designed and operating as open-provider centers with the authority and flexibility to draw on the resources of the best and most appropriate provider to ensure that community and technical college services are available and delivered in the region in a highly responsive manner. A community and technical college may contract with other institutions and providers as necessary to obtain the academic programs and resources to complement those available through a sponsoring college, where applicable, in order to meet the region's needs;
     (k) Separately identified state funding allocations for each of the community and technical colleges. The provost of the community and technical college has full
     
(l) Full budgetary authority for the entity president of the institution, subject to accountability to its governing board, including authority to retain all tuition and fees generated by the community and technical college for use to carry out its mission.
§18B-3C-4. Community and technical college consortia planning districts.

     (a) Unless otherwise designated, the president of each community and technical college facilitates the formation of community and technical college consortia in the state, which includes representatives of community and technical colleges, public vocational-technical education centers, and public baccalaureate institutions offering associate degrees. The community and technical college consortium shall:
     (1) Complete a comprehensive assessment of the district to determine what education and training programs are necessary to meet the short and long-term work force development needs of the district;
     (2) Coordinate efforts with regional labor market information systems to identify the ongoing needs of business and industry, both current and projected, and to provide information to assist in an informed program of planning and decision making;
     (3) Plan and develop a unified effort between the community and technical colleges and public vocational-technical education to meet the documented work force development needs of the district through individual and cooperative programs, shared facilities, faculty, staff, equipment and other resources and the development and use of distance learning and other education technologies;
     (4) Regularly review and revise curricula to ensure that the work force needs are met, develop new programs and phase out or modify existing programs as appropriate to meet such needs, streamline procedures for designing and implementing customized training programs;
     (5) Increase the integration of secondary and post-secondary curriculum and programs that are targeted to meet regional labor market needs, including implementation of seamless curricula project in all major career pathways and the West Virginia EDGE, "Earn a Degree Graduate Early" program;
     (6) Plan and implement integrated professional development activities for secondary and post-secondary faculty, staff and administrators;
     (7) Ensure that program graduates have attained the competencies required for successful employment through the involvement of business, industry and labor in establishing student credentialing;
     (8) Performance assessment of student knowledge and skills which may be gained from multiple sources so that students gain credit toward program completion and advance more rapidly without repeating course work in which they already possess competency;
     (9) Cooperate with work force investment boards in establishing one-stop-shop career centers with integrated employment and training and labor market information systems that enable job seekers to assess their skills, identify and secure needed education training and secure employment and employers to locate available workers;
     (10) Increase the integration of adult literacy, adult basic education, federal Work Force Investment Act and community and technical college programs and services to expedite the transition of adults from welfare to gainful employment; and
     (11) Establish a single point of contact for employers and potential employers to access education and training programs throughout the district.
     (b) The community and technical college education consortium shall cooperate with the regional work force investment board in the district and shall participate in any development or amendment to the regional work force investment plan.
     (c) To carry out the provisions of this section, community and technical college consortia planning districts are established and defined as follows: 
     (1) Northern panhandle community and technical college district includes Hancock, Brooke, Ohio, Marshall and Wetzel counties.
     (A) The facilitating institution is West Virginia northern community and technical college.
     (B) Participating institutions include West Virginia northern community and technical college; John Marshall high school; Cameron high school; John D. Rockefeller center; and other public vocational technical schools offering post-secondary programs.
     (2) North central West Virginia community and technical college district includes Monongalia, Marion, Preston, Taylor, Barbour, Randolph, Doddridge, Harrison, Braxton, Lewis, Calhoun, Gilmer and Upshur counties.
     (A) The facilitating institution is Fairmont state community and technical college.
     (B) Participating institutions include Fairmont state community and technical college; Glenville state college; Randolph county vocational-technical center; Monongalia county technical education center; united technical center; Marion county technical center; Fred W. Eberly technical center; and other public vocational technical schools offering post-secondary programs.
     (3) Mid-Ohio valley community and technical college district includes Tyler, Pleasants, Ritchie, Wood, Wirt, Jackson and Roane counties.
     (A) The facilitating institution is West Virginia university at Parkersburg.
     (B) Participating institutions includes West Virginia university at Parkersburg; West Virginia northern community and technical college; Roane-Jackson technical center; Gaston Caperton center; Wood County technical center; and other public vocational technical schools offering post-secondary programs.
     (4) Potomac highlands community and technical college district includes Tucker, Pendleton, Grant, Hardy, Mineral and Hampshire counties.
     (A) The facilitating institution is eastern West Virginia community and technical college.
     (B) Participating institutions include eastern West Virginia community and technical college; South Branch career and technical center; Mineral County technical center; and other public vocational technical schools offering post-secondary programs.
     (5) Shenandoah valley community and technical college district includes Berkeley, Jefferson and Morgan counties.
     (A) The facilitating institution is Shepherd the community and technical college of Shepherd.
     (B) Participating institutions include Shepherd the community and technical college of Shepherd; James Rumsey technical institute; and other public vocational technical schools offering post-secondary programs.
     (6) Advantage valley community and technical college district includes Fayette, Kanawha, Clay, Putnam, Cabell, Mason and Wayne counties.
     (A) The facilitating institution is Marshall community and technical college.
     (B) Every five years the council shall:
     (i) Evaluate the progress of the advantage valley consortia toward achieving the goals and benchmarks of its compact;
     (ii) Evaluate the progress of each community and technical college in the district toward achieving the goals and benchmarks of its institutional compact;
     (iii) Determine which community and technical college in the district would best serve the needs of the district for the following five-year period if serving as the facilitating institution; and
     (iv) Designate the community and technical college selected pursuant to subparagraph (iii) of this paragraph to serve as the facilitating institution for the following five-year period.
     (C) Participating institutions include Marshall community and technical college; the community and technology college at West Virginia university institute of technology; West Virginia state community and technical college; Carver career center; Garnet career center; Ben Franklin career center; Putnam County vocational-technical-occupational center; Cabell County career-technical center; and other public vocational technical schools offering post-secondary programs.
     (7) Southern mountains community and technical college district includes Lincoln, Boone, Logan, Mingo, Wyoming and McDowell counties.
     (A) The facilitating institution is southern West Virginia community and technical college.
     (B) Participating institutions include southern West Virginia community and technical college; New River community and technical college; Boone County career and technical center; Wyoming County vocational-technical center; Ralph R. Willis Career and technical center; McDowell County career and technology center; Mingo County vocation-technical center; Charles Yeager technical center; and other public vocational technical schools offering post-secondary programs.
     (8) Southeastern community and technical college district includes Raleigh, Summers, Fayette, Nicholas, Webster, Pocahontas, Greenbrier, Monroe and Mercer counties.
     (A) The facilitating institution is New River community and technical college.
     (B) Participating institutions include New River community and technical college; southern West Virginia community and technical college; the community and technical college at West Virginia university institute of technology; Bluefield state college; academy of careers and technology; Fayette plateau vocation-technology center; Summers County high school; Monroe County technical center; Mercer County technical center; and other public vocational technical schools offering post-secondary programs.
     (d) In the role of the facilitating institution of the community and technical college district, the college:
     (1) Communicates to the council;
     (2) Facilitates the delivery of comprehensive community and technical college education in the region, which includes the seven areas of comprehensive community and technical college education delivery as required by section six of this article; and
     (3) Facilitates development of statement of commitment signed by all participating institutions in the region as to how community and technical college education will be delivered.
     (e) Participating institutions are not subordinate to the facilitating institution but will sign the statement of commitment to participate.
     (f) The council shall:
     (1) Establish guidelines for community and technical college consortia development;
     (2) Set goals for each consortium based upon legislative goals for the delivery of comprehensive community and technical college education; and
     (3) Establish a format for development of a consortium compact outlining plans for achieving stated goals to be submitted to the council for approval on or before the fifteenth day of November, two thousand four.
     (g) On or before the fifteenth day of November, two thousand four, each consortium shall submit to the council for approval a compact which outlines plans for obtaining the stated goals. Each compact shall include the implementation of seamless curricula and the West Virginia EDGE, "Earn a Degree Graduate Early" program, and be updated annually.
     (h) The council annually shall evaluate the progress made in meeting the compact goals for each community and technical college consortia through the development and collection of performance indicator data.
§18B-3C-5. Appointment of community and technical college presidents.

     The administrative head of a community and technical college shall be is the president or the provost, who shall be who is chosen pursuant to the terms of section six, article one-b of this chapter. Any individual employed as provost of an administratively linked community and technical college on the first day of January, two thousand four, continues as the administrative head of the institution and becomes the community and technical college president on the effective date of this section.
§18B-3C-6. Community and technical college programs.
     (a) The mission of each community and technical college includes the following programs which may be offered on or off campus, at the work site, in the public schools and at other locations and at times that are convenient for the intended population:
     (1) Career and technical education skill sets, certificates, associate of applied science and selected associate of science degree programs for students seeking immediate employment, individual entrepreneurship skills, occupational development, skill enhancement and career mobility;
     (2) Transfer education associate of arts and associate of science degree programs for students whose education goal is to transfer into a baccalaureate degree program;
     (3) Developmental/remedial education courses, literacy education, tutorials, skills development labs and other services for students who need to improve their skills in mathematics, English, reading, study skills, computers and other basic skill areas;
     (4) Workforce training and retraining and contract education with business and industry to train or retrain employees;
     (5) Continuing development assistance and education credit and noncredit courses for professional and self-development, certification and licensure and literacy training;
     (6) Community service workshops, lectures, seminars, clinics, concerts, theatrical performances and other noncredit activities to meet the cultural, civic and personal interests and needs of the community; and
     (7) Cooperative arrangements with the public school system for the seamless progression of students through programs of study which are calculated to begin at the secondary level and conclude at the community and technical college level.
     (b) All administrative, programmatic and budgetary control over community and technical college education within the district shall be institution is vested in the president, or provost subject to rules adopted by the interim governing board or the chancellor. The president and the provost council. The president with the institutional board of governors or institutional board of advisors, as appropriate, shall be is responsible for the regular review, revision, elimination and establishment of programs within the district institution to assure that the needs of the district for community and technical college programs consortia district are met. It is the intent of the Legislature that the program review and approval process for community and technical college education be separate and distinct from baccalaureate education and subject to the provisions of section nine of this article. The president and institutional board of advisors shall seek assistance from and utilize a district consortium committee in fulfilling this responsibility.
     (c) Independently accredited community and technical colleges will shall serve as higher education centers for their regions by brokering with colleges, universities and other providers, in state and out of state, to ensure the coordinated access of students, employers and other clients to needed programs and services.
§18B-3C-8. Process for achieving independently accredited community and technical colleges.

     (a) Over a six-year period beginning the first day of July, two thousand one, West Virginia shall move from having "component" community and technical colleges to having By the first day of July, two thousand five, West Virginia shall have a statewide network of independently accredited community and technical colleges serving every region of the state. This section does not apply to the freestanding community and technical colleges or West Virginia university at Parkersburg. and Potomac state college of West Virginia university.
     (b) To be eligible for funds appropriated to develop independently accredited community and technical colleges, a state institution of higher education shall demonstrate the following:
     (1) That it has as a part of its institutional compact approved by the council and the commission a step-by-step plan with measurable benchmarks for developing an independently accredited community and technical college that meets the essential conditions set forth in section three of this article;
     (2) That it is able to offer evidence annually to the satisfaction of the council and the commission that it is making progress toward accomplishing the benchmarks established in its institutional compact for developing an independently accredited community and technical college; and
     (3) That it has submitted an expenditure schedule approved by the council and the commission which sets forth a proposed plan of expenditures for funds allocated to it from the fund.
     (c) The following are recommended strategies for moving from the current arrangement of "component" community and technical colleges to the legislatively mandated statewide network of independently accredited community and technical colleges serving every region of the state. The Legislature recognizes that there may be other means to achieve this ultimate objective; however, it is the intent of the Legislature that the move from the current arrangement of "component" community and technical colleges to the legislatively mandated statewide network of independently accredited community and technical colleges serving every region of the state shall be accomplished. The following recommendations are designed to reflect significant variations among regions and the potential impacts on the sponsoring institutions.
     (1) New River community and technical college. -- of Bluefield state college
     
(A) Bluefield state shall retain its existing mission but place greater emphasis and priority on its community and technical college role and serving the citizens of its expanded service district. Subject to the provisions of section twelve of this article, the community and technical college will remain administratively linked to Bluefield state college. Nothing herein may be construed to require Bluefield state college to discontinue any associate degree program in areas of particular institutional strength which are closely articulated to their baccalaureate programs and missions or which are of a high-cost nature and can best be provided in direct coordination with a baccalaureate institution.
     
(B) Effective the first day of July, two thousand three, the component formerly known as Bluefield state community and technical college shall become a
     
(A) There is continued the multicampus entity known as New River community and technical college, administratively linked to Bluefield state college. The multicampus community and technical college shall serve Raleigh, Summers, Fayette, Greenbrier, Clay, Mercer, McDowell, Monroe, Nicholas, Pocahontas, and Webster counties and be New River community and technical college is headquartered in the Beckley higher education center and incorporates the campuses of Greenbrier community college center of New River community and technical college and Nicholas community college center of New River community and technical college. The West Virginia council for community and technical college education New River community and technical college shall be an independently accredited community and technical college. The council shall appoint an institutional board of advisors, pursuant to section one, article six of this chapter, for New River community and technical college which is separate from the institutional board of governors of Bluefield state college. The board of advisors shall become the board of governors pursuant to section one, article two-a of this chapter when the institution achieves independent accreditation.
_____(B) Bluefield state college may continue associate degree programs in areas of particular institutional strength which are closely articulated to their baccalaureate programs and missions or which are of a high-cost nature and can best be provided through direct coordination with a baccalaureate institution. Any such program shall be delivered under the authority of the council and through contract with the community and technical college. The terms of the contract shall be negotiated between the council and the governing board of the sponsoring institution. The final contract is approved by the council. Such a program shall be evaluated according to the benchmarks and indicators for community and technical college education developed by the council. If the council determines that the program is making insufficient progress toward accomplishing the benchmarks, the program shall thereafter be delivered by the community and technical college.
_____(C) Bluefield state college may continue the associate of science degree in nursing which is an existing nationally accredited associate degree program in an area of particular institutional strength and which is closely articulated to the baccalaureate program and mission. The program is of a high-cost nature and can best be provided through direct administration by a baccalaureate institution. This program may not be transferred to New River community and technical college or any other community and technical college as long as the program maintains national accreditation and is seamlessly coordinated into the baccalaureate program at the institution.
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(C) Bluefield state college shall take immediate steps to seek independent accreditation of
     
(D) By the first day of July, two thousand five, New River community and technical college including all sites within its revised service district shall be independently accredited. The president and the board of governors of Bluefield state college are responsible for obtaining independent accreditation of the community and technical college. by the thirty-first day of December, two thousand four If the multi-campus entity known as New River community and technical college has not obtained independent accreditation by this date, the commission council shall choose one of the following options:
     (i) Create New River as a freestanding community and technical college; or
     (ii) Assign the responsibility for obtaining independent accreditation to another state institution of higher education.
     (D) (E) The president and the board of governors of Bluefield state college also are accountable to the commission council for ensuring that the full range of community and technical college services is available throughout the region and that New River community and technical college adheres to the essential conditions pursuant to section three of this article.
     (E) (F) As an independently accredited community and technical college, New River also shall serve as a higher education center for its region by brokering with other colleges, universities and other providers, in state and out of state, both public and private, to ensure the coordinated access of students, employers and other clients to needed programs and services.
     (F) (G) New River community and technical college shall facilitate participate in the planning and development of a unified effort involving multiple providers and facilities, including, but not limited to, Concord college, the college of West Virginia, Marshall university, West Virginia university, West Virginia university institute of technology, and other entities to meet the documented education and work force development needs in the region. Nothing in this subdivision prohibits or limits any existing, or the continuation of any existing, affiliation between the college of West Virginia mountain state university, West Virginia university institute of technology and West Virginia university. New River community and technical college also shall provide the facilities and support services for other public and private institutions delivering courses, programs and services in Beckley. The objective is to assure students and employers in the area that there is coordination and efficient use of resources among the separate programs and facilities, existing and planned, in the Beckley area.
     (2) Fairmont state community and technical college. -- Fairmont state community and technical college shall be is an independently accredited community and technical college. serving Marion, Doddridge, Barbour, Harrison, Monongalia, Preston, Randolph Taylor, Braxton, Calhoun, Gilmer, Lewis, and Upshur counties. The community and technical college is developed on the base of the existing component community and technical college of Fairmont state college. Subject to the provisions of this section, the president and the governing board of Fairmont state college are responsible, according to a plan approved by the commission council, for step-by-step implementation of the independently accredited community and technical college which adheres to the essential conditions pursuant to section three of this article. Subject to the provisions of section twelve of this article, the community and technical college will remain administratively linked to Fairmont state college. Nothing herein may be construed to require Fairmont state college to discontinue any associate degree program Fairmont state college may continue associate degree programs in areas of particular institutional strength which are closely articulated to their baccalaureate programs and missions or which are of a high-cost nature and can best be provided in direct coordination with a baccalaureate institution. Any such program shall be delivered under the authority of the council and through contract with the community and technical college. The terms of the contract shall be negotiated between the council and the governing board of the sponsoring institution. The final contract is approved by the council. Such a program shall be evaluated according to the benchmarks and indicators for community and technical college education developed by the council. If the council determines that the program is making insufficient progress toward accomplishing the benchmarks, the program shall thereafter be delivered by the community and technical college.
     (3) Marshall university community and technical college. -- Senate Bill 653 created an implementation board charged with the responsibility to develop a plan, to be recommended to the commission, for the most effective and efficient method to deliver comprehensive community and technical college education to the citizens and employers of the responsibility areas of Marshall university, West Virginia state college and West Virginia university institute of technology. Pursuant to the recommendation of the implementation board and of the commission, Marshall university community and technical college shall become is an independently accredited community and technical college. It shall serve Cabell, Kanawha, Mason, Putnam and Wayne counties. The new community and technical college is developed on the base of the existing component community and technical college of Marshall university. Subject to the provisions of this section, the president and the governing board of Marshall university are responsible, according to a plan approved by the commission council, for step-by-step implementation of the new independently accredited community and technical college which adheres to the essential conditions pursuant to section three of this article. Subject to the provisions of section twelve of this article, the community and technical college will remain administratively linked to Marshall university. Nothing herein may be construed to require Marshall university to discontinue any associate degree program Marshall university may continue associate degree programs in areas of particular institutional strength which are closely articulated to their baccalaureate programs and missions or which are of a high-cost nature and can best be provided in direct coordination with a baccalaureate institution. Any such program shall be delivered under the authority of the council and through contract with the community and technical college. The terms of the contract shall be negotiated between the council and the governing board of the sponsoring institution. The final contract is approved by the council. Such a program shall be evaluated according to the benchmarks and indicators for community and technical college education developed by the council. If the council determines that the program is making insufficient progress toward accomplishing the benchmarks, the program shall thereafter be delivered by the community and technical college.
     (4) Shepherd The community and technical college of Shepherd. -- Shepherd The community and technical college of Shepherd shall become an independently accredited community and technical college. It shall serve Jefferson, Berkeley and Morgan counties. The new community and technical college is developed on the base of the existing component community and technical college of Shepherd college. Subject to the provisions of this section, the president and the governing board of Shepherd college are responsible, according to a plan approved by the commission council, for step-by-step implementation of the new independently accredited community and technical college which adheres to the essential conditions pursuant to section three of this article. Subject to the provisions of section twelve of this article, the community and technical college will remain administratively linked to Shepherd college. Nothing herein may be construed to require Shepherd college to discontinue any associate degree program Shepherd college may continue associate degree programs in areas of particular institutional strength which are closely articulated to their baccalaureate programs and missions or which are of a high-cost nature and can best be provided in direct coordination with a baccalaureate institution. Any such program shall be delivered under the authority of the council and through contract with the community and technical college. The terms of the contract shall be negotiated between the council and the governing board of the sponsoring institution. The final contract is approved by the council. Such a program shall be evaluated according to the benchmarks and indicators for community and technical college education developed by the council. If the council determines that the program is making insufficient progress toward accomplishing the benchmarks, the program shall thereafter be delivered by the community and technical college.
     (5) West Virginia state community and technical college. -- Senate Bill 653 created an implementation board charged with the responsibility to develop a plan, to be recommended to the commission, for the most effective and efficient method to deliver comprehensive community and technical college education to the citizens and employers of the responsibility areas of Marshall university, West Virginia state college and West Virginia university institute of technology. Pursuant to the recommendation of the implementation board and of the commission, West Virginia state community and technical college shall become an independently accredited community and technical college. It shall serve Kanawha, Putnam and Clay counties. The new community and technical college is developed on the base of the existing component community and technical college of West Virginia state college. Subject to the provisions of this section, the president and the governing board of West Virginia state college are responsible, according to a plan approved by the commission council, for step-by-step implementation of the new independently accredited community and technical college which adheres to the essential conditions pursuant to section three of this article. Subject to the provisions of section twelve of this article, the community and technical college will remain administratively linked to West Virginia state college. Nothing herein may be construed to require West Virginia state college to discontinue any associate degree program West Virginia state college may continue associate degree programs in areas of particular institutional strength which are closely articulated to their baccalaureate programs and missions or which are of a high-cost nature and can best be provided in direct coordination with a baccalaureate institution. Any such program shall be delivered under the authority of the council and through contract with the community and technical college. The terms of the contract shall be negotiated between the council and the governing board of the sponsoring institution. The final contract is approved by the council. Such a program shall be evaluated according to the benchmarks and indicators for community and technical college education developed by the council. If the council determines that the program is making insufficient progress toward accomplishing the benchmarks, the program shall thereafter be delivered by the community and technical college.
     (6) The community and technical college at West Virginia university institute of technology. -- Senate Bill 653 created an implementation board charged with the responsibility to develop a plan, to be recommended to the commission, for the most effective and efficient method to deliver comprehensive community and technical college education to the citizens and employers of the responsibility areas of Marshall university, West Virginia state college and West Virginia university institute of technology. Pursuant to the recommendation of the implementation board and of the commission The community and technical college at West Virginia university institute of technology community and technical college shall become is an independently accredited community and technical college. It shall serve Fayette, Clay, Kanawha, Raleigh and Nicholas counties. The new community and technical college is developed on the base of the existing component community and technical college of West Virginia university institute of technology. Subject to the provisions of this section, the president and the governing board of West Virginia university institute of technology are responsible, according to a plan approved by the commission, for step-by-step implementation of the new independently accredited community and technical college which adheres to the essential conditions pursuant to section three of this article. Subject to the provisions of section twelve of this article, the community and technical college will remain administratively linked to West Virginia university institute of technology. Nothing herein may be construed to require West Virginia university institute of technology to discontinue any associate degree program West Virginia university institute of technology may continue associate degree programs in areas of particular institutional strength which are closely articulated to their baccalaureate programs and missions or which are of a high-cost nature and can best be provided in direct coordination with a baccalaureate institution. Any such program shall be delivered under the authority of the council and through contract with the community and technical college. The terms of the contract shall be negotiated between the council and the governing board of the sponsoring institution. The final contract is approved by the council. Such a program shall be evaluated according to the benchmarks and indicators for community and technical college education developed by the council. If the council determines that the program is making insufficient progress toward accomplishing the benchmarks, the program shall thereafter be delivered by the community and technical college.
_____(d) For each administratively linked community and technical college which fails to achieve independent accreditation by the first day of July, two thousand five, the
council shall choose one of the following options:
_____(1) Create the administratively linked institution as a freestanding community and technical college; or
_____(2) Assign the responsibility for obtaining independent accreditation to another state institution of higher education.
_____The president and the board of governors of each sponsoring institution is accountable to the council for ensuring that the community and technical college is able to meet the conditions for independent accreditation and adheres to the essential conditions pursuant to section three of this article.
§18B-3C-9. Increasing flexibility for community and technical colleges.

     (a) Notwithstanding any rules or procedures of the governing boards to the contrary, the community and technical colleges have the authority and the duty to:
     (1) Incorporate the most effective and efficient use of technology in accessing and delivering courses and programs in order to make the best use of available resources and to control costs;
     (2) Incorporate a model to offer occupational program curricula in smaller modules to accommodate specific student and employer needs and to gain sufficient flexibility in formatting courses;
     (3) Serve as a facilitator for education programs from outside delivery sources to meet the needs of the residents and employers of the district; and
     (4) Employ faculty in the most effective manner to serve the core mission of the community and technical college.
     (A) To that end, the freestanding community and technical colleges may employ faculty for an indefinite period without a grant of tenure and shall work toward a staffing goal of no more than twenty percent of the faculty holding tenure or being tenure-track employees. Provided, That tenured Tenured faculty employed by the freestanding community and technical colleges before the first day of July, one thousand nine hundred ninety-nine, shall not be are not affected by this provision.
     (B) All community and technical colleges, other than those set forth in paragraph (A) of this subdivision, may employ faculty for an indefinite period without a grant of tenure. The immediate goal is to use this provision as a tool to assist the community and technical colleges in meeting the essential conditions provided for in section three of this article and in gaining independent accreditation status. The ultimate goal is to provide the flexibility community and technical colleges need to meet the needs of the state by working toward having no more than twenty percent of the core faculty holding tenure or being tenure-track employees. Provided, That tenured Tenured faculty employed by community and technical colleges other than freestanding community and technical colleges on the effective date of this section the thirtieth day of June, two thousand, may not be affected by this provision. Provided, however, That tenure shall Tenure may not be denied to a faculty member solely as a result of change in employing institution necessitated by the change to independently accredited community and technical colleges.
     (b) The governing boards shall adopt a model of program approval for the community and technical colleges that permits occupational programs to be customized to meet needs without requiring approval by any governing board or other agency of government. and, furthermore, that incorporates The model shall incorporate a post-audit review of such programs on a three-year cycle to determine the effectiveness of such the programs in meeting district needs.
     (c) The interim governing board or the chancellor council shall promulgate rules to implement the provisions of this section and shall file these rules for review and approval with the chancellor no later than the first day of December, two thousand four.
§18B-3C-10. Freestanding community and technical colleges; tuition and fees.

     
(a) During the transition year, beginning the first day of July, two thousand, and ending the thirtieth day of June, two thousand one, the appropriate governing board may fix tuition and establish and set such other fees to be charged students at community and technical colleges as it considers appropriate and shall pay such tuition and fees collected into a revolving fund for the partial or full support, including the making of capital improvements, of any community and technical college. Funds collected at any such community and technical college may be used only for the benefit of that community and technical college. The appropriate governing board also may establish special fees for such purposes as, including, but not limited to, health services, student activities, student recreation, athletics or any other extracurricular purposes. Such special fees shall be paid into special funds in the state treasury and used only for the purposes for which collected.
     
(b) Beginning on the first day of July, two thousand one, the appropriate
     
(a) Each governing board may fix tuition and establish and set such other fees to be charged students at its community and technical colleges college as it considers appropriate, subject to the provisions of subdivision (2) of this subsection and article ten, chapter eighteen-b of this code.
     (1) As used in this subsection, "appropriate governing board" means:
     
(A) The governing board of the institution, in the case of a free-standing community and technical college; and
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(B) The governing boards of Glenville state college and Bluefield state college, respectively, in the cases of Glenville community and technical college and Bluefield community and technical college; and
     
(C) The institutional board of advisors in all other cases.
     
(2) (1) The appropriate governing board, in consultation with the joint commission council, also may establish special fees for such purposes as, including, but not limited to, health services, student activities, student recreation, athletics or any other extracurricular purposes. Provided, That the joint commission The council shall determine which fees, if any, do not apply to the entire student population and to which students such fees do not apply. Such special fees may be used only for the purposes for which collected.
     (3) (2) A community and technical college may contract with any other state institution of higher education for the participation of its students in programs, activities or services of the other institution and for the use of such fees collected.
     (c) (b) All tuition and fee charges in the total aggregate shall comply with the terms of the institution's compact approved by the commission council, based on peer comparisons or cost of instruction as set forth in the goals for post-secondary education pursuant to section one-a, article one of this chapter.
§18B-3C-12. Relationship between administratively linked community and technical colleges and sponsoring institutions.

     (a) Intent and purposes. --
     (1) It is the intent of the Legislature to establish community and technical colleges in every region of the state of West Virginia that as far as possible that meet the essential conditions of section three of this article.
     (2) The Legislature finds that, in order to increase efficiency, reduce costs and, generally, to facilitate the effective transition from community and technical colleges which are components of existing institutions of higher education to community and technical colleges which meet as far as possible the essential conditions, it is appropriate to maintain an administrative link between the community and technical colleges and the sponsoring institutions.
     (3) This section defines the relationship between the an administratively linked community and technical colleges college and its sponsoring institution.
     (b) Where an independently accredited community and technical colleges are is linked administratively to a sponsoring state college or university in order to ensure efficient use of limited resources, the following conditions shall apply:
     (1) The community and technical college shall be accredited separately from the sponsoring institution;
     (2) All state funding allocations for the community and technical college shall be transferred directly to the community and technical college. The sponsoring institution may charge fees for administrative overhead costs subject to a schedule approved by the commission council.
     (A) By the first day of December, two thousand four, the council shall develop a new model, or select an existing model, for services to be provided by sponsoring institutions and the fees to be charged administratively linked community and technical colleges for the services. The fee schedule shall be based upon the reasonable and customary fee for any service and shall bear a rational relationship to the cost of providing the service. Nothing in this paragraph requires the council to adopt a particular model for service delivery.
_____(B) With the approval of the council, a community and technical college and the sponsoring institution may customize the model to fit their needs;

     (3) Policies shall be formally established to ensure the separation of academic and faculty personnel policies of the community and technical college from those of the sponsoring institution. These policies include, but are not limited to, appointment, promotion, workload and, if appropriate, tenure; and
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(4) The council may authorize a community and technical college to decline any service of the sponsoring institution provided in subsection (c) of this section if the council determines that the service is not appropriate for the community and technical college, or that declining the service is in the best interest of the community and technical college. Any service declined may be obtained from an alternate source with the approval of the council.
     (c) The sponsoring institution which is administratively linked to a community and technical college shall provide the following services:
     (1) Personnel management;
     (2) Recordkeeping;
     (3) Payroll;
     (4) Accounting;
     (5) Legal services;
     (6) Registration;
     (7) Student aid;
     (8) Student records; and
     (9) Such other services as determined to be necessary and appropriate by the commission council.
     (d) Subject to the approval of the appropriate governing board, the president of the sponsoring institution, pursuant to the terms of section six, article one-b of this chapter, shall appoint the presidents The institutional governing board shall appoint the president of the community and technical college, who shall serve serves at the will and pleasure of the institutional president governing board. Subject to the provisions of section six, article one-b of this chapter, the appropriate governing board shall appoint the president of the sponsoring institution.
     (e) The governing board and the president of the sponsoring institution shall be council are responsible for the step-by-step development of the community and technical college and for compliance with the essential conditions, all as required by this article.
     (f) The president of the sponsoring institution shall have community and technical college has such responsibilities, powers and duties in the development of the community and technical college and in compliance with the essential conditions, as directed by the governing board or as are necessary for the proper implementation of the provisions of this act.
     (g) Notwithstanding any other provision of this code to the contrary, the commission shall take necessary steps to ensure that institutional bonded indebtedness is secure and that each administratively linked community and technical colleges assume their college assumes its fair share of any institutional debt acquired while they were it was part of the baccalaureate institution.
     (h) The community and technical college is encouraged to secure academic services from the sponsoring institution when it is in the best interests of the students to be served, the community and technical college and the sponsoring institution. In determining whether or not to secure services from the sponsoring institution, the community and technical college shall consider the following:
     (1) The cost of the academic services;
     (2) The quality of the academic services;
     (3) The availability, both as to time and place, of the academic services; and
     (4) Such other considerations as the community and technical college finds appropriate taking into account the best interests of the students to be served, the community and technical college, and the sponsoring institution. Provided, That, nothing in this article shall be construed to prohibit Nothing in this article prohibits any state institution of higher education from purchasing or brokering remedial and/or or developmental courses from a community and technical college.
ARTICLE 4. GENERAL ADMINISTRATION.

§18B-4-1. Employment of chancellors; designation of staff; offices.
     
(a) At its annual meeting in June of each year, each governing board shall elect from its members appointed by the governor a president and other officers as it may consider necessary or desirable: Provided, That the initial annual meeting shall be held during July, one thousand nine hundred eighty-nine. The president and other officers shall be elected for a one-year term commencing on the first day of July following the annual meeting and ending on the thirtieth day of June of the following year. The president of the board shall serve no more than two consecutive terms.
     
(b) Each governing board shall employ a chancellor who shall serve at the will and pleasure of the employing board and shall assist the governing board in the performance of its duties and responsibilities. No
     
(a) The council and commission each shall employ a chancellor to assist in the performance of their respective duties and responsibilities subject to the following conditions:
_____(1) Each chancellor serves at the will and pleasure of the hiring body.
_____(2) Neither
chancellor may hold or retain any other administrative position within the system of higher education while employed as chancellor.
     (3) Each chancellor is responsible for carrying out the directives of the governing board by which he or she is body by whom employed and shall work with the board that body in developing policy options.
_____(4) The commission shall designate a limited number of positions that are under the direct control and supervision of the chancellor for higher education. These positions form the nuclear staff of the chancellor's office and may equal no more than fifteen percent of the total number of staff employed by the commission.
_____Nevertheless, regardless of the number or title of the positions so designated, the commission is responsible to the council and the chancellor for community and technical college education for providing services in areas essential to exercising the powers and duties assigned to the council by law. The commission may not charge the council any fee for the provision of these essential services. The service areas include, but are not limited to, legal services, research, technology, computing, finance and facilities, academic affairs, telecommunications, human resources, student services and any other general areas the council considers to be essential to the exercise of its legal authority. The services are provided under the general supervision of the vice chancellor for administration.
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(5) For the purpose of developing or evaluating policy options, the chancellors may request the assistance of the presidents and other administrative heads of the institutions under their jurisdiction and their staffs. The respective chancellors shall jointly agree to and shall hire one senior administrator who shall serve at their will and pleasure in accordance with section two of this article. and staff of the institutions under their respective jurisdictions.
_____(b) In addition to the staff positions designated in subdivision (4), subsection (a) of this section, the vice chancellor for administration, employed pursuant to section two of this article, serves the offices of the chancellors to discharge jointly the duties and responsibilities of the council and commission.

     (c) The vice chancellor for health sciences shall coordinate the West Virginia university school of medicine, the Marshall university school of medicine and the West Virginia school of osteopathic medicine.
     (d) Suitable offices for the senior administrator vice chancellor of administration and other staff shall be provided in Charleston.
     (e) The chancellor of the university of West Virginia board of trustees and the chancellor of the board of directors of the state college system shall establish a plan and funding recommendations for development and implementation of a multifaceted instructional technology strategy that includes, but is not limited to, a goal that every full-time freshman student beginning in the fall semester, one thousand nine hundred ninety-six, and thereafter, and as many other students and faculty as possible will own or lease a computer, and alternatively that computers be available for part-time students through on-site labs; the integration of computer usage into all course work; the involvement of faculty in the development and use of technology-based instruction and instructional courseware for community and technical colleges, colleges and universities; and the expansion of distance learning and technology networks throughout the higher education systems to enhance teaching and learning, promote access to quality educational offerings with minimum duplication of effort, increase the delivery of instruction to nontraditional students, provide services to business and industry, and increase the management capabilities of the higher education system. The chancellors shall submit the plan to the Legislature on or before the first day of July, one thousand nine hundred ninety-seven.
     
The chancellor of the university of West Virginia board of trustees and the chancellor of the board of directors of the state college system shall supervise the administration, oversight, coordination and implementation of the plan, or portions of the plan, subject to the availability of funds and the direction of the governing boards. In addition, the chancellors shall review all technology related matters within the department of education and the arts and suggest appropriate integration and compatibility of the technology systems within the department and the institutions governed by the board.
     
(f) The governing boards shall jointly employ a vice chancellor for community and technical education pursuant to the provisions of section three-a, article three of this chapter.
§18B-4-2. Employment of vice chancellor for administration; office; powers and duties generally.

     (a) With the approval of The commission the chancellor for higher education shall employ the vice chancellor for administration who shall serve at the will and pleasure of the chancellor. By and with the advice and consent of the council, the commission shall employ a vice chancellor for administration who may not be dismissed without the consent of the council:
_____(1) The individual serving as vice chancellor for administration on the effective date of this section may continue to serve on an interim basis until the commission and the council have agreed, jointly, on a candidate to fill the position;
_____(2) The interim vice chancellor for administration may be considered as a candidate for the position;
_____(3) The position shall be filled on a permanent basis no later than the first day of October, two thousand four; and
_____(4) Any vacancy occurring in this position shall be filled pursuant to the requirements of this section.
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(b) Any reference in this chapter or chapter eighteen-c of this code to the senior administrator means the vice chancellor for administration. which senior administrator shall become the vice chancellor of administration and also shall serve as interim chancellor for higher education until a chancellor is employed pursuant to section five, article one-b of this chapter.
     (b) (c) The vice chancellor for administration has a ministerial duty, in consultation with and under direction of the chancellor chancellors, to perform such functions, tasks and duties as may be necessary to carry out the policy directives of the council and commission and such other duties as may be prescribed by law.
     (c) (d) The vice chancellor for administration may employ and discharge, and shall supervise such professional, administrative, clerical and other employees as may be necessary to these duties and shall delineate staff responsibilities as considered desirable and appropriate. It is the responsibility of the vice chancellor for administration, within the parameters of the total resources available, to supervise and direct the staff in such a way that the staff and resource needs of the council, the commission and the offices of the chancellors are met. The vice chancellor for administration shall fix the compensation and emoluments of such employees: Provided, That those employees
_____(e) Any employee of the commission or the council
whose job duties meet criteria listed in the system of job classifications as stated in article nine of this chapter shall be is accorded the job title, compensation and rights established in the article as well as all other rights and privileges accorded classified employees by the provisions of this code.
     (d) (f) Effective on the first day of July, two thousand, the The office of the senior administrator vice chancellor for administration and all personnel, except for the chancellor for community and technical college education and staff transferred to the jurisdiction of the council pursuant to subsection (a), section seven, article two-b of this chapter, who are employed on the thirtieth day of June first day of January, two thousand four, within the higher education central office and the West Virginia network for educational telecomputing, and the offices of the chancellor of the board of trustees and the chancellor of the board of directors shall be transferred to the jurisdiction of the chancellor for higher education: Provided, That prior remain under the jurisdiction of the commission. Prior to the first day of October, two thousand no employee shall four, any such employee may not be terminated or have his or her salary and benefit levels reduced as the sole result of the governance reorganization that becomes effective on the first day of July, two thousand higher education reorganization that occurs on the effective date of this section.
     (e) (g) The vice chancellor for administration shall follow state and national education trends and gather data on higher education needs.
     (f) (h) The vice chancellor for administration, in accordance with established guidelines and in consultation with and under the direction of the chancellor chancellors, shall administer, oversee or monitor all state and federal student assistance and support programs administered on the state level, including those provided for in chapter eighteen-c of this code.
     (g) (i) The vice chancellor for administration has a fiduciary responsibility to administer the tuition and registration fee capital improvement revenue bond accounts of the governing boards.
     (h) (j) The vice chancellor for administration shall administer the purchasing system or systems of the council and commission, the office of the chancellor offices of the chancellors and the governing boards. Provided, That the chancellor By mutual agreement, the commission and the council may delegate authority for the purchasing systems or portions thereof to the institution presidents.
     (i) (k) The vice chancellor for administration is responsible for the management of the West Virginia network for educational telecomputing (WVNET). The vice chancellor for administration shall establish a computer advisory board, which shall be representative of higher education and other users of the West Virginia network for educational telecomputing as the chancellor for higher education commission and council determines determine appropriate. It is the responsibility of the computer advisory board to recommend to the chancellor commission and the council policies for a statewide shared computer system.
     (j) (l) The central office, under the direction of the vice chancellor for administration, shall provide necessary staff support to the commission, and the office of the chancellor the council and offices of the chancellors.
     (k) (m) Effective on the first day of July, two thousand the The vice chancellor for administration may administer any program or service authorized or required to be performed by the board of trustees or the board of directors on the thirtieth day of June, two thousand, and not specifically assigned to another agency. In addition, the vice chancellor for administration may administer any program or service authorized or required to be performed by the commission, or the chancellor for higher education council or chancellors, but not assigned specifically to the commission, or the chancellor council or chancellors. Any such program or service may include, but shall not be is not limited to, telecommunications activities and other programs and services provided for under grants and contracts from federal and other external funding sources.
§18B-4-7. Accreditation of institutions of higher education; standards for degrees.

     
(a) The appropriate governing board council shall make rules for the accreditation of community and technical colleges in this state and shall determine the minimum standards for conferring degrees. The commission shall make rules for the accreditation of institutions of higher education colleges and universities in this state under its jurisdiction and shall determine the minimum standards for the conferring of degrees. No An institution of higher education may not confer any degree on any basis of work or merit below the minimum standards prescribed by the appropriate governing board council or commission. Nothing contained herein shall infringe in this section infringes upon the rights, including rights to award degrees, granted to any institution by charter given according to law, or by actions of the governing boards council or commission or their predecessors, prior to the adoption effective date of this section. With the approval of the commission, governing boards of institutions which currently offer substantial undergraduate course offerings and a master's degree in a discipline are authorized to grant baccalaureate degrees in that discipline.
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No Except as otherwise provided in this section, a charter or other instrument containing the right to confer degrees of higher educational education status shall may not be granted by the state of West Virginia to any institution, association or organization within the state, nor shall may any such degree be awarded, until the condition of conferring such the degree has first been approved in writing by the appropriate governing board council or commission.      ARTICLE 5. HIGHER EDUCATION BUDGETS AND EXPENDITURES.
§18B-5-4. Purchase or acquisition of materials, supplies, equipment, services and printing.

     (a) The council, commission and each governing board, through the vice chancellor for administration, shall purchase or acquire all materials, supplies, equipment, services and printing required for that governing board or the council or commission, as appropriate, and the state institutions of higher education under their jurisdiction. The commission and council jointly shall adopt rules governing and controlling acquisitions and purchases in accordance with the provisions of this section. The rules shall assure that the council, commission and the governing boards:
     (1) Do not preclude any person from participating and making sales thereof to the governing board or to the council or commission except as otherwise provided in section five of this article. Provision of consultant services such as strategic planning services will not preclude or inhibit the governing boards, or the council or commission from considering any qualified bid or response for delivery of a product or a commodity because of the rendering of those consultant services;
     (2) Establish and prescribe specifications, in all proper cases, for materials, supplies, equipment, services and printing to be purchased;
     (3) Adopt and prescribe such purchase order, requisition or other forms as may be required;
     (4) Negotiate for and make purchases and acquisitions in such quantities, at such times and under contract, in the open market or through other accepted methods of governmental purchasing as may be practicable in accordance with general law;
     (5) Advertise for bids on all purchases exceeding twenty-five thousand dollars, to purchase by means of sealed bids and competitive bidding or to effect advantageous purchases through other accepted governmental methods and practices;
     (6) Post notices of all acquisitions and purchases for which competitive bids are being solicited in the purchasing office of the specified institution involved in the purchase, at least two weeks prior to making such purchases and ensure that the notice is available to the public during business hours;
     (7) Provide for purchasing in the open market;
     (8) Make provision Provide for vendor notification of bid solicitation and emergency purchasing; and
     (9) Provide that competitive bids are not required for purchases of five twenty-five thousand dollars or less; and
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(10) Provide for not fewer than three bids where bidding is required. If fewer than three bids are submitted, an award may be made from among those received.
     (b) The council, commission or each governing board, through the vice chancellor for administration, may issue a check in advance to a company supplying postage meters for postage used by that board, the council or commission and by the state institutions of higher education under their jurisdiction.
     (c) When a purchase is to be made by bid, any or all bids may be rejected. However, all purchases based on advertised bid requests shall be awarded to the lowest responsible bidder taking into consideration the qualities of the articles to be supplied, their conformity with specifications, their suitability to the requirements of the governing boards, the council or commission and delivery terms. The preference for resident vendors as provided in section thirty-seven, article three, chapter five-a of this code apply to the competitive bids made pursuant to this section.
     (d) The governing boards, council and the commission shall maintain a purchase file, which shall be a public record and open for public inspection. After the award of the order or contract, the governing boards, council and the commission shall indicate upon the successful bid that it was the successful bid and shall further indicate why bids are rejected and, if the mathematical low vendor is not awarded the order or contract, the reason therefor. No records A record in the purchase file may not be destroyed without the written consent of the legislative auditor. Those files in which the original documentation has been held for at least one year and in which the original documents have been reproduced and archived on microfilm or other equivalent method of duplication may be destroyed without the written consent of the legislative auditor. All files, no matter the storage method, shall be open for inspection by the legislative auditor upon request.
     (e) The commission and council also jointly shall adopt rules to prescribe qualifications to be met by any person who is to be employed as a buyer pursuant to this section. These rules shall require that no a person may not be employed as a buyer unless that person, at the time of employment, either is:
     (1) A graduate of an accredited college or university; or
     (2) Has at least four years' experience in purchasing for any unit of government or for any business, commercial or industrial enterprise.
     (f) Any person making purchases and acquisitions pursuant to this section shall execute a bond in the penalty of fifty thousand dollars, payable to the state of West Virginia, with a corporate bonding or surety company authorized to do business in this state as surety thereon, in form prescribed by the attorney general and conditioned upon the faithful performance of all duties in accordance with this section and sections five through eight, inclusive, of this article and the rules of the interim governing board and the council and commission. In lieu of separate bonds for such buyers, a blanket surety bond may be obtained. Any such bond shall be filed with the secretary of state. The cost of any such bond shall be paid from funds appropriated to the applicable governing board or the council or commission.
     (g) All purchases and acquisitions shall be made in consideration and within limits of available appropriations and funds and in accordance with applicable provisions of article two, chapter five-a of this code, relating to expenditure schedules and quarterly allotments of funds.
     (h) The governing boards, council and the commission may make requisitions upon the auditor for a sum to be known as an advance allowance account, in no case to not to exceed five percent of the total of the appropriations for the governing board, council or the commission, and the auditor shall draw a warrant upon the treasurer for such accounts. All advance allowance accounts shall be accounted for by the applicable governing board or the council or commission once every thirty days or more often if required by the state auditor.
     (i) Contracts entered into pursuant to this section shall be signed by the applicable governing board or the council or commission in the name of the state and shall be approved as to form by the attorney general. A contract which requires approval as to form by the attorney general and for which is considered approved if the attorney general has not responded within fifteen days of presentation of the contract. the contract shall be considered approved. A contract or a change order for that contract and notwithstanding any other provision of this code to the contrary, associated documents such as performance and labor/material payments, bonds and certificates of insurance which use terms and conditions or standardized forms previously approved by the attorney general and do not make substantive changes in the terms and conditions of the contract do not require approval by the attorney general. The attorney general shall make a list of those changes which he or she deems to be substantive and the list, and any changes thereto, shall be published in the state register. A contract that exceeds fifteen thousand dollars shall be filed with the state auditor. If requested to do so, the governing boards, council or the commission shall make all contracts available for inspection by the state auditor. The governing board, council or the commission, as appropriate, shall prescribe the amount of deposit or bond to be submitted with a bid or contract, if any, and the amount of deposit or bond to be given for the faithful performance of a contract.
     (j) If the governing board, council or the commission purchases or contracts for materials, supplies, equipment, services and printing contrary to the provisions of sections four through seven of this article or the rules pursuant thereto, such purchase or contract shall be is void and of no effect.
     (k) Any governing board or the council or commission, as appropriate, may request the director of purchases to make available, from time to time, the facilities and services of that department to the governing boards, council or the commission in the purchase and acquisition of materials, supplies, equipment, services and printing and the director of purchases shall cooperate with that governing board, council or the commission, as appropriate, in all such purchases and acquisitions upon such request.
     (l) Each governing board or the council or commission, as appropriate, shall permit private institutions of higher education to join as purchasers on purchase contracts for materials, supplies, services and equipment entered into by that governing board or the council or commission. Any private school desiring to join as purchasers on such purchase contracts shall file with that governing board or the council or commission an affidavit signed by the president of the institution of higher education or a designee requesting that it be authorized to join as purchaser on purchase contracts of that governing board or the council or commission, as appropriate. The private school shall agree that it is bound by such terms and conditions as that governing board or the council or commission may prescribe and that it will be responsible for payment directly to the vendor under each purchase contract.
     (m) Notwithstanding any other provision of this code to the contrary, the governing boards, council and the commission, as appropriate, may make purchases from cooperative buying groups, consortia, the federal government or from federal government contracts if the materials, supplies, services, equipment or printing to be purchased is available from cooperative buying groups, consortia, the federal government or from a federal contract and purchasing from the cooperative buying groups, consortia, federal government or from a federal government contract would be the most financially advantageous manner of making the purchase.
     (n) An independent performance audit of all purchasing functions and duties which are performed at any institution of higher education shall be performed each fiscal year. The joint committee on government and finance shall conduct the performance audit and the governing boards, council and the commission, as appropriate, shall be are responsible for paying the cost of the audit from funds appropriated to the governing boards, council or the commission.
     (o) The governing boards shall require each institution under their respective jurisdictions to notify and inform every vendor doing business with that institution of the provisions of section fifty-four, article three, chapter five-a of this code, also known as the "prompt pay act of 1990".
     (p) Consultant services, such as strategic planning services, may not preclude or inhibit the governing boards, council or the commission from considering any qualified bid or response for delivery of a product or a commodity because of the rendering of those consultant services.
     (q) After the commission or council, as appropriate, has granted approval for lease-purchase arrangements by the governing boards, a governing board may enter into lease-purchase arrangements for capital improvements, including equipment. Any lease-purchase arrangement so entered shall constitute a special obligation of the state of West Virginia. The obligation under a lease-purchase arrangement so entered may be from any funds legally available to the institution and must be cancelable at the option of the governing board or institution at the end of any fiscal year. The obligation, any assignment or securitization thereof, shall never constitute never constitutes an indebtedness of the state of West Virginia or any department, agency or political subdivision thereof, within the meaning of any constitutional provision or statutory limitation, and may not be a charge against the general credit or taxing powers of the state or any political subdivision thereof. and such Such facts shall be plainly stated in any lease-purchase agreement. Further, the lease-purchase agreement shall prohibit assignment or securitization without consent of the lessee and the approval of the attorney general of West Virginia. Proposals for any arrangement must be requested in accordance with the requirements of this section and any rules or guidelines of the commission and council. In addition, any lease-purchase agreement which exceeds one hundred thousand dollars total shall be approved by the attorney general of West Virginia. The interest component of any lease-purchase obligation shall be is exempt from all taxation of the state of West Virginia, except inheritance, estate and transfer taxes. It is the intent of the Legislature that if the requirements set forth in the Internal Revenue Code of 1986, as amended, and any regulations promulgated pursuant thereto are met, the interest component of any lease-purchase obligation also shall be is exempt from the gross income of the recipient for purposes of federal income taxation and may be designated by the governing board or the president of the institution as a bank-qualified obligation.
     (r) Notwithstanding any other provision of this code to the contrary, the commission, council and the governing boards have the authority, in the name of the state, to lease, or offer to lease, as lessee, any grounds, buildings, office or other space in accordance with this paragraph and as provided below:
     (1) The commission, council and the governing boards have sole authority to select and to acquire by contract or lease all grounds, buildings, office space or other space, the rental of which is necessarily required by the commission, council or governing boards for the institutions under their jurisdiction. The chief executive officer of the commission, council or an institution shall certify the following:
     (A) That the grounds, buildings, office space or other space requested is necessarily required for the proper function of the commission, council or institution;
     (B) That the commission, council or institution will be responsible for all rent and other necessary payments in connection with the contract or lease; and
     (C) That satisfactory grounds, buildings, office space or other space is not available on grounds and in buildings now currently owned or leased by the commission, council or the institution.
     Before executing any rental contract or lease, the commission, council or a governing board shall determine the fair rental value for the rental of the requested grounds, buildings, office space or other space, in the condition in which they exist, and shall contract for or lease the premises at a price not to exceed the fair rental value.
     (2) The commission, council and the governing boards are authorized to enter into long-term agreements for buildings, land and space for periods longer than one fiscal year but not to exceed forty years. Any purchase of real estate, any lease-purchase agreement and any construction of new buildings or other acquisition of buildings, office space or grounds resulting therefrom, pursuant to the provisions of this subsection shall be presented by the policy commission or council, as appropriate, to the joint committee on government and finance for prior review. Any such lease shall contain, in substance, all the following provisions:
     (A) That the commission, council or the governing board, as lessee, have has the right to cancel the lease without further obligation on the part of the lessee upon giving thirty days' written notice to the lessor at least thirty days prior to the last day of the succeeding month;
     (B) That the lease shall be is considered canceled without further obligation on the part of the lessee if the Legislature or the federal government fails to appropriate sufficient funds therefor or otherwise acts to impair the lease or cause it to be canceled; and
     (C) That the lease shall be is considered renewed for each ensuing fiscal year during the term of the lease unless it is canceled by the commission, council or the governing board before the end of the then-current fiscal year.
     (3) The commission, council or an institution which is granted any grounds, buildings, office space or other space leased in accordance with this section may not order or make permanent changes of any type thereto, unless the commission, council or the governing board, as appropriate, has first determined that the change is necessary for the proper, efficient and economically sound operation of the institution. For purposes of this section, a "permanent change" means any addition, alteration, improvement, remodeling, repair or other change involving the expenditure of state funds for the installation of any tangible thing which cannot be economically removed from the grounds, buildings, office space or other space when vacated by the institution.
     (4) Leases and other instruments for grounds, buildings, office or other space, once approved by the commission, council or governing board, may be signed by the chief executive officer of the commission, council or the institution. Any lease or instrument exceeding one hundred thousand dollars annually shall be approved as to form by the attorney general. A lease or other instrument for grounds, buildings, office or other space that contains a term, including any options, of more than six months for its fulfillment shall be filed with the state auditor.
     (5) The commission and council jointly may promulgate rules it considers they consider necessary to carry out the provisions of this section.
ARTICLE 6. ADVISORY COUNCILS AND BOARDS.
§18B-6-1. Institutional boards of advisors for regional campuses and certain administratively linked community and technical colleges.

     
(a) Effective the first day of July, two thousand, There is established at each regional campus and administratively linked community and technical college, excluding centers and branches thereof, an institutional board of advisors. Provided, That the institutional board of advisors shall not be appointed for administratively linked community and technical colleges until provided for in their compact.
     
(1) For the transition year beginning on the first day of July, two thousand, through the thirtieth day of June, two thousand one, only, The lay members of the institutional board of advisors established for each of the regional campuses of West Virginia university are appointed by the president of the respective institution. Effective the first day of July, two thousand one,
     
(a) There is hereby continued or established institutional boards of advisors as follows:
_____(1) For each regional campus. The chairperson of the board of advisors of West Virginia university at Parkersburg serves as an ex officio, voting member of the governing board of West Virginia university;
_____(2) For administratively linked community and technical colleges which share a physical location with the sponsoring institution. This category includes Fairmont state community and technical college, Marshall community and technical college, West Virginia state community and technical college and the community and technical college at West Virginia university institute of technology. The chairperson of the board of advisors of each administratively linked community and technical college serves as an ex officio, voting member of the sponsoring institution's board of governors or, in the case of the community and technical college at West Virginia university institute of technology, the chairperson of the board of advisors serves as an ex officio voting member of the governing board of West Virginia university;
_____(3) For New River community and technical college and the community and technical college of Shepherd, until these institutions achieve independent accreditation. As long as New River community and technical college or the community and technical college of Shepherd retains a board of advisors and remains administratively linked to the baccalaureate institution, the chairperson of that board of advisors serves as an ex officio, voting member of the governing board of Bluefield state college or Shepherd college, respectively.
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(1) (b) The lay members of the institutional boards of advisors for the regional campuses are appointed by the board of governors.
     (2) (c) The lay members of the institutional board boards of advisors established for the administratively linked community and technical colleges are appointed by the West Virginia council for community and technical college education.
     (b) (d) The board of advisors consists of fifteen members, including a full-time member of the faculty with the rank of instructor or above duly elected by the faculty of the respective institution; a member of the student body in good academic standing, enrolled for college credit work and duly elected by the student body of the respective institution; a member from the institutional classified employees duly elected by the classified employees of the respective institution; and twelve lay persons appointed pursuant to subsection (a) of this section who have demonstrated a sincere interest in and concern for the welfare of that institution and who are representative of the population of its responsibility district and fields of study. At least eight of the twelve lay persons appointed shall be residents of the state. Of the lay members who are residents of the state, at least two shall be alumni of the respective institution and no more than a simple majority may be of the same political party.
     (c) (e) The student member shall serve serves for a term of one year beginning upon appointment in July, two thousand four, and ending on the thirtieth day of April, two thousand one five. Thereafter the term shall begin on the first day of May. The member from the faculty and the classified employees shall serve, respectively, serves for a term of two years beginning upon appointment in July, two thousand four, and ending on the thirtieth day of April, two thousand two five. Thereafter the term shall begin on the first day of May; and the twelve lay members shall serve terms of four years each beginning upon appointment in July, two thousand four. Thereafter, the term shall begin on the first day of May. All members are eligible to succeed themselves for no more than one additional term. A vacancy in an unexpired term of a member shall be filled for the remainder of the unexpired term within thirty days of the occurrence thereof in the same manner as the original appointment or election. Except in the case of a vacancy:
     (1) Commencing in two thousand five, all elections shall be held and all appointments shall be made no later than the thirtieth day of April preceding the commencement of the term; and
_____(2) Terms of members begin on the first day of May following election, except for two thousand four only, terms begin upon appointment in July.
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(d) (f) Each board of advisors shall hold a regular meeting at least quarterly, commencing in May of each year. Additional meetings may be held upon the call of the chairperson, president of the institution or upon the written request of at least five members. A majority of the members constitutes a quorum for conducting the business of the board of advisors.
     (e) (g) One of the twelve lay members shall be elected as chairperson by the board of advisors in May of each year, except that the chairperson elected in two thousand four shall be elected in July. No member may serve as chairperson for more than two consecutive years.
     (f) (h) The president of the institution shall make available resources of the institution for conducting the business of the board of advisors. The members of the board of advisors shall be reimbursed for all reasonable and necessary expenses actually incurred in the performance of their official duties under this section upon presentation of an itemized sworn statement thereof. All expenses incurred by the boards of advisors and the institutions under this section shall be paid from funds allocated to the institutions for that purpose.
     (g) (i) The Prior to the submission by the president to its governing board, the board of advisors shall review prior to the submission by the president to its governing board, all proposals of the institution in the areas of mission, academic programs, budget, capital facilities and such other matters as requested by the president of the institution or its governing board or otherwise assigned to it by law. The board of advisors shall comment on each such proposal in writing, with such recommendations for concurrence therein or revision or rejection thereof as it considers proper. The written comments and recommendations shall accompany the proposal to the governing board and the governing board shall include the comments and recommendations in its consideration of and action on the proposal. The governing board shall promptly acknowledge receipt of the comments and recommendations and shall notify the board of advisors in writing of any action taken thereon.
     (h) (j) The Prior to their implementation by the president, the board of advisors shall review prior to their implementation by the president, all proposals regarding institution-wide personnel policies. The board of advisors may comment on the proposals in writing.
     (i) (k) The board of advisors shall provide advice and assistance to the president and the governing board in establishing areas including, but not limited to, the following:
_____(1) Establishing
closer connections between higher education and business, labor, government and community and economic development organizations to give students greater opportunities to experience the world of work. Examples of such as experiences include business and community service internships, apprenticeships and cooperative programs; to communicate
     
(2) Communicating better and serve serving the current work force and work force development needs of their service area, including the needs of nontraditional students for college-level skills upgrading and retraining and the needs of employers for specific programs of limited duration; and to assess
     
(3) Assessing the performance of the institution's graduates and assist assisting in job placement.
     (j) (l) Upon the occurrence of When a vacancy occurs in the office of president of the institution, the board of advisors shall serve as a search and screening committee for candidates to fill the vacancy under guidelines established by the commission council. pursuant to the provisions of section six, article one-b of this chapter. When serving as a search and screening committee, the board of advisors and its governing board are each authorized to appoint up to three additional persons to serve on the committee as long as the search and screening process is in effect. The three additional appointees of the board of advisors shall be faculty members of the institution. Only for For the purposes of the search and screening process only, the additional members shall possess the same powers and rights as the regular members of the board of advisors, including reimbursement for all reasonable and necessary expenses actually incurred. Following the search and screening process, the committee shall submit the names of at least three candidates to the president of the sponsoring institution council, or to the governing board in the case of West Virginia university institute of technology, for consideration. and appointment. If the president council or governing board rejects all candidates submitted, the committee shall submit the names of at least three additional candidates and this process shall be repeated until the president appoints council or governing board approves one of the candidates submitted. In all cases, the governing board shall make the appointment with the approval of the council or the commission in the case of West Virginia university institute of technology. The governing board or the council shall provide all necessary staff assistance to the board of advisors in its role as a search and screening committee.
     (k) (m) The boards of advisors shall develop a master plan for each those administratively linked community and technical college colleges which retain boards of advisors. The ultimate responsibility for developing and updating the master plans at the institutional level resides with the institutional board of advisors, but the ultimate responsibility for approving the final version of the these institutional master plans, including periodic updates, resides with the council commission. The plan shall include, but not be limited to, the following:
     (1) A detailed demonstration of how the master plan will be used to meet the goals and objectives of the institutional compact;
     (2) A well-developed set of goals outlining missions, degree offerings, resource requirements, physical plant needs, personnel needs, enrollment levels and other planning determinates and projections necessary in such a plan to assure that the needs of the institution's area of responsibility for a quality system of higher education are addressed;
     (3) Documentation of the involvement of the commission, institutional constituency groups, clientele of the institution and the general public in the development of all segments of the institutional master plan.
     The plan shall be established for periods of not less than three nor more than six years and shall be revised periodically as necessary, including recommendations on the addition or deletion of degree programs as, in the discretion of the board of advisors, may be necessary.
§18B-6-1a. Definitions.
     For the purposes of this article, the following words have the meanings specified unless the context clearly indicates a different meaning:
     (a) "Advisory council of classified employees" or "classified council" means the state advisory organization of classified employees created pursuant to section five of this article.
     (b) "Advisory council of faculty" or "faculty council" means the state advisory organization of faculty created pursuant to section two of this article.
     (c) "Advisory council of students" or "student advisory council" means the state advisory organization of students created pursuant to section four of this article.
     (d) "Classified employee", in the singular or plural, means any regular full-time or regular part-time employee of a governing board, the commission, the council or the West Virginia network for educational telecomputing who holds a position that is assigned a particular job title and pay grade in accordance with the personnel classification system established by law.
     (e) "Community and technical college" means eastern West Virginia community and technical college, Fairmont state community and technical college, Marshall community and technical college, New River community and technical college, West Virginia northern community and technical college, the community and technical college of Shepherd, southern West Virginia community and technical college, West Virginia state community and technical college, the community and technical college at West Virginia university institute of technology, West Virginia university at Parkersburg and any other community and technical college so designated by the Legislature.
     (f) "Council" means the West Virginia council for community and technical college education created pursuant to section three, article two-b of this chapter.
     (g) "Institutional classified employee council" or "staff council" means the advisory group of classified employees formed at a state institution of higher education pursuant to section six of this article.
     (h) "Institutional faculty senate", "faculty senate" or "faculty assembly" means the advisory group of faculty formed at a state institution of higher education pursuant to section three of this article.
     (i) "State institution of higher education", in the singular or plural, means the institutions as defined in section two, article one of this chapter and, additionally, Fairmont state community and technical college, Marshall community and technical college, New River community and technical college, Potomac state college of West Virginia university, Robert C. Byrd health sciences Charleston division of West Virginia university, the community and technical college of Shepherd, West Virginia state community and technical college, West Virginia university at Parkersburg, West Virginia university institute of technology, the community and technical college at West Virginia university institute of technology, the higher education policy commission, the West Virginia council for community and technical college education, the West Virginia network for educational telecomputing and any other institution so designated by the Legislature.
§18B-6-2. State advisory council of faculty.
     (a) There is continued the state advisory council of faculty.
     (b) Election of members and terms of office. --
     (1) During the month of April of each odd-numbered year, each president of a state institution of higher education, at the direction of the faculty council and in accordance with procedures established by the faculty council, shall convene a meeting or otherwise institute a balloting process to elect one faculty member from each institution of higher education to serve on the faculty council.
     (2) Terms of the members are for two years and begin on the first day of July of each odd-numbered year. Members are eligible to succeed themselves.
     (3) For the year two thousand four only, each president of an administratively linked community and technical college shall consult with the faculty council during the month of July to establish procedures and convene a meeting or otherwise institute a balloting process to elect one faculty member from that institution to serve on the faculty council. Members so elected shall take office upon election and serve until the next regularly scheduled election held pursuant to this section; thereafter, faculty members elected to represent administratively linked community and technical colleges serve a regular two-year term.
     (c) The faculty council shall meet at least once each quarter and may meet at such other times as called by the chairperson or by a majority of its members. One of the quarterly meetings shall be during the month of July, at which meeting the faculty council shall elect a chairperson from among its members. The chairperson may serve no more than two consecutive terms as chair. A member may not vote by proxy at the election. In the event of a tie in the last vote taken for such election, a member authorized by the faculty council shall select the chairperson by lot from the names of those persons tied. Immediately following the election of a chairperson, and in the manner prescribed by this section for the election of a chairperson, the faculty council shall elect a member to preside over meetings in the absence of the chairperson. If the chairperson vacates the position, the faculty council shall meet and elect a new chairperson to fill the unexpired term within thirty days following the vacancy.
     (d) The faculty council, through its chairperson and in any appropriate manner, shall communicate to the commission or the council, as appropriate, matters of higher education in which the faculty members have an interest.
     (e) The commission and council each shall meet annually between the months of October and December with the faculty council to discuss matters of higher education in which the faculty members or the commission or council may have an interest.
     (f) Members of the faculty council serve without compensation. Members are entitled to reimbursement for actual and necessary expenses, including travel expenses, incurred in the performance of their official duties. Expenses are paid from funds allocated to the state institution of higher education which the member serves.
     (g) The faculty council shall prepare minutes of its meetings, which minutes shall be available, upon request, to any faculty member of a state institution of higher education represented on the faculty council.
§18B-6-3. Institutional faculty senate.
     (a) Effective the first day of July, two thousand four, a faculty senate is established at each institution of higher education, except for those institutions which choose to establish a faculty assembly. In the latter case, all faculty participate in the faculty assembly and the requirements of subsections (b) and (c) of this section do not apply. Members and officers of an organized, campus-level advisory group of faculty who are serving prior to the effective date of this section may continue to serve with all the rights, privileges and responsibilities prescribed herein until the time that members elected as set forth in subsection (b) of this section assume office.
     (b) Members of each faculty senate are elected as follows:
     (1) During the month of April of each even-numbered year, each president of a state institution of higher education, at the direction of the faculty and in accordance with procedures established by the faculty, shall convene a meeting or otherwise institute a balloting process to elect the members of the faculty senates, except that for two thousand four only, the election shall take place in July.
     (2) Selection procedures shall provide for appropriate representation of all academic units within the institution.
     (3) The faculty member who is elected to serve on the faculty council is an ex officio, voting member of the faculty senate and reports to the faculty senate on meetings of the faculty council and the board of governors.
     (c) Members serve a term of two years, which term begins on the first day of July of each even-numbered year, except for the year two thousand four when terms begin upon election. Members of the faculty senate are eligible to succeed themselves.
     (d) Each faculty senate shall elect a chairperson from among its members. The chairperson serves a term of two years, and may serve no more than two consecutive terms as chairperson.
     (e) The faculty senate meets quarterly and may meet at such other times as called by the chairperson or by a majority of the members. With appropriate notification to the president of the institution, the chairperson may convene a faculty senate meeting for the purpose of sharing information and discussing issues affecting faculty and the effective and efficient management of the institution.
     (f) The president of the institution shall meet at least quarterly with the faculty senate to discuss matters affecting faculty and the effective and efficient management of the institution.
     (g) The governing board of the institution shall meet at least annually with the faculty senate to discuss matters affecting faculty and the effective and efficient management of the institution.
§18B-6-4. State advisory council of students.
     (a) There is continued the state advisory council of students.
     (b) During the month of April of each year, each student government organization at each institution of higher education shall elect a student to serve on the student advisory council. Terms of the members of the student advisory council are for one year and begin on the first day of September of each year. A duly elected member currently serving on the advisory council of students may continue to serve until a new member from that institution is elected pursuant to the provisions of this section. Members of the student advisory council are eligible to succeed themselves.
     (c) The student advisory council shall meet at least once each quarter. One of the quarterly meetings shall be during the month of September, at which meeting the student advisory council shall elect a chairperson. A member may not vote by proxy at the election. In the event of a tie in the last vote taken for the election, a member authorized by the student advisory council shall select the chairperson by lot from the names of those persons tied. Immediately following the election of a chairperson, the student advisory council shall elect, in the manner prescribed by this section for the election of a chairperson, a member of the council to preside over meetings in the absence of the chairperson. If the chairperson vacates the position, the student advisory council shall meet and elect a new chairperson to fill the unexpired term within thirty days following the vacancy.
     (d) The student advisory council, through its chairperson and in any appropriate manner, shall communicate to the commission or the council, as appropriate, matters of higher education in which the student members have an interest.
     (e) At the request of the chairperson of the student advisory council, the commission and council each shall meet annually, between the months of October and December, with the student advisory council to discuss matters of higher education in which the student members or the commission or council have an interest.
     (f) Members of the student advisory council serve without compensation, but are entitled to reimbursement for actual and necessary expenses, including travel expenses, incurred in the performance of their official duties. Expenses are paid from funds allocated to the state institution of higher education in which the student is enrolled.
     (g) The student advisory council shall prepare minutes of its meetings. The minutes shall be available, upon request, to any student of a state institution of higher education represented on the council.
§18B-6-5. State advisory councils of classified employees.
     (a) There is hereby continued the state advisory council of classified employees.
     (b) Election of members and terms of office. --
     (1) During the month of April of each odd-numbered year, each president of a state institution of higher education, at the direction of the classified council and in accordance with procedures established by the classified council, shall convene a meeting or otherwise institute a balloting process to elect one classified employee from each institution of higher education to serve on the classified council.
     (2) Terms of the members are for two years and begin on the first day of July of each odd-numbered year. Members are eligible to succeed themselves.
     (3) For the year two thousand four only, each president of an administratively linked community and technical college shall consult with the classified council during the month of July to establish procedures and convene a meeting or otherwise institute a balloting process to elect one classified employee from that institution to serve on the classified council. Members so elected take office upon election and serve until the next regularly scheduled election held pursuant to this section; thereafter, classified employees elected to represent administratively linked community and technical colleges serve a regular two-year term.
     (c) The classified council shall meet at least once each quarter and may meet at such other times as called by the chairperson or by a majority of its members. One of the quarterly meetings shall be during the month of July, at which meeting the classified council shall elect a chairperson from among its members. The chairperson may serve no more than two consecutive terms as chairperson. A member may not vote by proxy at the election. In the event of a tie in the last vote taken for the election, a member authorized by the classified council shall select the chairperson by lot from the names of those persons tied. Immediately following the election of a chairperson, the classified council shall elect, in the manner prescribed by this section for the election of a chairperson, a member of the classified council to preside over meetings in the absence of the chairperson. If the chairperson vacates the position, the classified council shall meet and elect a new chairperson to fill the unexpired term within thirty days following the vacancy.
     (d) The classified council, through its chairperson and in any appropriate manner, shall communicate to the commission or the council, as appropriate, matters of higher education in which the classified employees have an interest.
     (e) The commission and council each shall meet annually, between the months of October and December, with the classified council to discuss matters of higher education in which the classified employees or the commission or council have an interest.
     (f) Members of the classified council serve without compensation, but are entitled to reimbursement for actual and necessary expenses, including travel expenses, incurred in the performance of their official duties. Expenses are paid from funds allocated to the state institution of higher education which the member serves.
     (g) The classified council shall prepare minutes of its meetings. The minutes shall be available, upon request, to any classified employee of a state institution of higher education represented on the classified council.
§18B-6-6. Institutional classified employee council.
     (a) There is continued at each institution of higher education an institutional classified employees advisory council to be known as the staff council.
     (b) During the month of April of each odd-numbered year, each president of a state institution of higher education, at the direction of the staff council and in accordance with procedures established by the staff council, shall convene a meeting or otherwise institute a balloting process to elect members of the staff council, except that for two thousand four only, the election shall take place in July. Members are elected as follows:
     (1) Two classified employees from the administrative/managerial sector;
     (2) Two classified employees from the professional/nonteaching sector;
     (3) Two classified employees from the paraprofessional sector;
     (4) Two classified employees from the secretarial/clerical sector;
     (5) Two classified employees from the physical plant/maintenance sector;
     (6) The classified employee who is elected to serve on the advisory council of classified employees serves as an ex officio, voting member of the staff council. This member shall report to the staff council on meetings of the classified council and the board of governors; and
     (7) Classified employees at Marshall university and West Virginia university may elect five classified employees from each of the five sectors to serve on the staff council.
     (c) Members serve a term of two years, which term begins on the first day of July of each odd-numbered year. Members of the staff council are eligible to succeed themselves.
     (d) Classified employees shall select one of their members to serve as chairperson. All classified employees at the institution are eligible to vote for the chairperson by any method approved by a majority of their members. The chairperson is eligible to succeed himself or herself.
     (e) The staff council shall meet at least monthly or at the call of the chairperson. With appropriate notification to the president of the institution, the chairperson may convene staff council meetings for the purpose of sharing information and discussing issues affecting the classified employees or the efficient and effective operations of the institution.
     (f) The president of the institution shall meet at least quarterly with the staff council to discuss matters affecting classified employees.
     (g) The governing board of the institution shall meet at least annually with the staff council to discuss matters affecting classified employees and the effective and efficient management of the institution.
ARTICLE 7. PERSONNEL GENERALLY.

§18B-7-1. Seniority for full-time classified personnel; seniority to be observed in reducing work force; preferred recall list; renewal of listing; notice of vacancies.

     (a) Definitions for terms used in this section are in accordance with those provided in section two, article nine of this chapter, except that the provisions of this section shall apply only to classified employees whose employment, if continued, accumulates to a minimum total of one thousand forty hours during a calendar year and extends over at least nine months of a calendar year. Provided, That this This section also applies to any classified employee who is involuntarily transferred to a position in nonclassified status for which he or she did not apply. Provided, however, That any Any classified employee involuntarily transferred to a position in nonclassified status may only exercise the rights set out in this section for positions equivalent to or lower than the last job class the employee held.
     (b) All decisions by the appropriate governing board, the council or commission or its agents at state institutions of higher education concerning reductions in work force of full-time classified personnel, whether by temporary furlough or permanent termination, shall be made in accordance with this section. For layoffs by classification for reason of lack of funds or work, or abolition of position or material changes in duties or organization and for recall of employees laid off, consideration shall be given to an employee's seniority as measured by permanent employment in the service of the state system of higher education. In the event that the institution wishes desires to lay off a more senior employee, the institution shall demonstrate that the senior employee cannot perform any other job duties held by less senior employees of that institution in the same job class or any other equivalent or lower job class for which the senior employee is qualified. Provided, That if If an employee refuses to accept a position in a lower job class, the employee shall retain retains all rights of recall provided in this section. If two or more employees accumulate identical seniority, the priority shall be is determined by a random selection system established by the employees and approved by the institution.
     (c) Any employee laid off during a furlough or reduction in work force shall be is placed upon a preferred recall list and shall be is recalled to employment by the institution on the basis of seniority. An employee's listing with an institution shall remain remains active for a period of one calendar year from the date of termination or furlough or from the date of the most recent renewal. If an employee fails to renew the listing with the institution, the employee's name may be removed from the list. An employee placed upon the preferred list shall be recalled to any position opening by the institution within the classifications in which the employee had previously been employed or to any lateral position for which the employee is qualified. An employee on the preferred recall list shall does not forfeit the right to recall by the institution if compelling reasons require the employee to refuse an offer of reemployment by the institution.
     The institution shall notify all employees maintaining active listings on the preferred recall list of all position openings that from time to time periodically exist. The notice shall be sent by certified mail to the last known address of the employee. It is the duty of each employee listed to notify the institution of any change in address and to timely renew the listing with the institution. No position openings shall A position opening may not be filled by the institution, whether temporary or permanent, until all employees on the preferred recall list have been properly notified of existing vacancies and have been given an opportunity to accept reemployment.
     (d) A nonexempt classified employee, including a nonexempt employee who has not accumulated a minimum total of one thousand forty hours during the calendar year or whose contract does not extend over at least nine months of a calendar year, who applies and meets the minimum qualifications for a nonexempt job opening at the institution where the employee is currently employed, whether the job is a lateral transfer or a promotion, and applies for the job shall be transferred or promoted before a new person is hired. unless
     
(1) This subsection does not apply if the hiring is affected by:
     (A) Mandates in affirmative action plans; or
     (B) The requirements of Public Law 101-336, the Americans with Disabilities Act.
     (2) This subsection applies to any nonexempt classified employee, including:
_____(A) One who has not accumulated a minimum total of one thousand forty hours during the calendar year; and
_____(B) One whose contract does not extend over at least nine months of a calendar year.
_____
(3) If more than one qualified, nonexempt classified employee applies, the best-qualified nonexempt classified employee shall be is awarded the position. In instances where the classified employees are equally qualified, the nonexempt classified employee with the greatest amount of continuous seniority at that state institution of higher education shall be is awarded the position.
     (4) A nonexempt classified employee is one to whom the provisions of the federal Fair Labor Standards Act, as amended, apply.
     (e) In addition to any other information required, any application for personnel governed by the provisions of this section shall include the applicant's social security number.
     (f) Regardless of the level of seniority for any employee, for the purposes of this section:
_____(1) In the case of a reduction in force, an employee at a community and technical college may not displace any employee of an institution under the jurisdiction of the commission.
_____(2) In the case of a reduction in force, an employee at an institution under the jurisdiction of the commission may not displace any employee of a community and technical college.
_____(3) For the purpose of this subsection, an employee performing a dual service for a sponsoring institution and an administratively linked community and technical college is an employee at an institution under the jurisdiction of the commission if the sponsoring institution receives a fee from the administratively linked community and technical college for the service performed by that employee.
§18B-7-12. Maintenance of benefits for employees.

     (a) On the effective date of this section, any individual employed on the day preceding the effective date of this section by the chancellor for higher education or commission maintains all benefits of employment held, accrued and afforded prior to the effective date of this section. Such benefits include, but are not limited to, retirement benefits, continued membership in the same retirement system, any insurance coverage, and sick and annual leave. For the purposes of leave conversion established in section thirteen, article sixteen, chapter five of this code, an employee is not a new employee, and the prohibition on conversion does not apply if the employee was eligible for leave conversion on the day preceding the effective date of this section. For the purpose of section thirteen, article sixteen, chapter five of this code:
     (1) Each employee maintains all sick and annual leave accrued, and all rights to convert the leave that had been accrued on the day preceding the effective date of this section; and
     (2) Each employee continues to maintain his or her status for eligibility under the provisions and application of said section thirteen as applied to the employee on the day preceding the effective date of this section.
     (b) Prior to the first day of October, two thousand four, an employee may not be terminated, or have his or her salary or benefit levels reduced as the result of the higher education reorganization set forth in this article.
ARTICLE 9. CLASSIFIED EMPLOYEE SALARY SCHEDULE AND CLASSIFICATION SYSTEM.

§18B-9-1. Legislative purpose.
     The purpose of the Legislature in the enactment of this article is to require the commission and council jointly to establish, control, supervise and manage a complete, uniform system of personnel classification in accordance with the provisions of this article for all employees other than faculty and nonclassified employees at state institutions of higher education.
§18B-9-2. Definitions.
     As used in this article:
     (a) "Classified employee" or "employee" means any regular full-time or regular part-time employee of a governing board, or the commission or the council, including all employees of the West Virginia network for educational telecomputing, who hold a position that is assigned a particular job title and pay grade in accordance with the personnel classification system established by this article or by the commission and council;
     (b) "Nonclassified employee" means an individual who is responsible for policy formation at the department or institutional level, or reports directly to the president, or is in a position considered critical to the institution by the president pursuant to policies adopted by the governing board. Provided, That the The percentage of personnel placed in the category of "nonclassified" at any given institution shall may not exceed ten percent of the total number of employees of that institution who are eligible for membership in any state retirement system of the state of West Virginia or other retirement plan authorized by the state: Provided, however, That an additional ten percent of the total number of employees of that institution as defined in this subsection may be placed in the category of "nonclassified" if they are in a position considered critical to the institution by the president. Final approval of such placement shall be with the appropriate governing board;
     (c) "Job description" means the specific listing of duties and responsibilities as determined by the appropriate governing board, or the commission or council and associated with a particular job title;
     (d) "Job title" means the name of the position or job as defined by the appropriate governing board, or the commission or council;
     (e) "Merit increases and salary adjustments" means the amount of additional salary increase allowed on a merit basis or to rectify salary inequities or accommodate competitive market conditions in accordance with rules established by the governing boards, or the commission or council;
     (f) "Pay grade" means the number assigned by the commission and council to a particular job title and refers to the vertical column heading of the salary schedule established in section three of this article;
     (g) "Personnel classification system" means the process of job categorization adopted by the commission and council jointly by which job title, job description, pay grade and placement on the salary schedule are determined;
     (h) "Salary" means the amount of compensation paid through the state treasury per annum to a classified employee;
     (i) "Schedule" or "salary schedule" means the grid of annual salary figures established in section three of this article; and
     (j) "Years of experience" means the number of years a person has been an employee of the state of West Virginia and refers to the horizontal column heading of the salary schedule established in section three of this article. For the purpose of placement on the salary schedule, employment for nine months or more equals one year of experience, but no a classified employee may not accrue more than one year of experience during any given fiscal year. Employment for less than full time or less than nine months during any fiscal year shall be prorated. In accordance with rules established by the commission and council jointly, a classified employee may be granted additional years of experience not to exceed the actual number of years of prior, relevant work or experience at accredited institutions of higher education other than state institutions of higher education.
ARTICLE 10. FEES AND OTHER MONEY COLLECTED AT STATE INSTITUTIONS OF HIGHER EDUCATION.

§18B-10-1b. Special equity fee; purpose; exemptions.

     In addition to the other fees provided in this article, each governing board has the authority to impose, collect and expend the proceeds of a special equity fee under the following conditions:
     (a) The fee shall be used solely for the purpose of complying with the athletic provisions of 20 U.S.C. 1681 et seq., known as Title IX of the Education Amendment of 1972;
     (b) The fee is exempt from limitations on fee increases set forth in this article for three years from the effective date of this section;
     (c) The fee may not be used by an institution to advance its classification of participation in its athletics governing body; and
     (d) The fee may not be imposed upon part-time students or students enrolled in an administratively-linked community and technical college.
§18B-10-2. Higher education resource fee.
     In addition to the fees specifically provided for in section one of this article, all students enrolled for credit at a state institution of higher education shall pay a higher education resource fee. The commission and council jointly shall fix the fee rates for the various institutions and classes of students under its jurisdiction their respective jurisdictions and may from time to time change these rates. The amount of the fee charged at each institution shall be prorated for part-time students. The fee imposed by this section is in addition to the maximum fees allowed to be collected under the provision of section one of this article and is not limited thereby. Refunds of such the fee may be made in the same manner as any other fee collected at state institutions of higher education.
     Ninety percent of the total fees collected at each institution pursuant to this section shall be deposited in a special fund in the state treasury for the institution at which the fees are collected and may be used by the institution for libraries and library supplies, including books, periodicals, subscriptions and audiovisual materials, instructional equipment and materials; and for the improvement in quality and scope of student services. Up to ten percent of the fee collections from institutions under the jurisdiction of the commission shall be deposited in a special fund and expended or allocated by the commission to meet general operating expenses of the commission or to fund statewide programs. Up to ten percent of the fee collections from institutions under the jurisdiction of the council shall be deposited in a special fund and expended or allocated by the council to meet general operating expenses of the council or to fund statewide programs. Provided, That the board The boards shall, to the maximum extent practicable, offset the impact, if any, on financially needy students of any potential fee increases under this section by allocating an appropriate amount of such fee revenue to the state scholarship program to be expended in accordance with the provisions of article five, chapter eighteen-c of this code.
     The commission and council each shall, on or before the first day of July of each year annually, provide the legislative auditor with a report of the projected fee collections for the board and each of its institutions and the expenditures proposed for such fee.;
     And,
     That both houses recede from their respective positions as to the title of the bill and agree to the same as follows:
     Eng. Senate Bill No. 448 -- A Bill to repeal §18B-1A-8 of the code of West Virginia, 1931, as amended; to repeal §18B-1B-7 of said code; to repeal §18B-3C-7 of said code; to repeal §18B-6-2a, §18B-6-3a, §18B-6-4a and §18B-6-4b of said code; to amend and reenact §18-2-1 of said code; to amend and reenact §18B-1-1a, §18B-1-2, §18B-1-3 and §18B-1-6 of said code; to amend and reenact §18B-1A-2, §18B-1A-3, §18B-1A-4, §18B-1A-5 and §18B-1A-6 of said code; to amend and reenact §18B-1B-1, §18B-1B-2, §18B-1B-4, §18B-1B-5 and §18B-1B-6 of said code; to amend said code by adding thereto a new section, designated §18B-1B-11; to amend and reenact §18B-2A-1 and §18B-2A-4 of said code; to amend said code by adding thereto a new section, designated §18B-2A-6; to amend and reenact §18B-2B-1, §18B-2B-2, §18B-2B-3, §18B-2B-4, §18B-2B-5, §18B-2B-6, §18B-2B-7 and §18B-2B-8 of said code; to amend said code by adding thereto a new section, designated §18B-2B-6a; to amend and reenact §18B-2C-3 and §18B-2C-4 of said code; to amend and reenact §18B-3C-2, §18B-3C-3, §18B-3C-4, §18B-3C-5, §18B-3C-6, §18B-3C-8, §18B-3C-9, §18B-3C-10 and §18B-3C-12 of said code; to amend and reenact §18B-4-1, §18B-4-2 and §18B-4-7 of said code; to amend and reenact §18B-5-4 of said code; to amend and reenact §18B-6-1 and §18B-6-1a of said code; to amend said code by adding thereto five new sections, designated §18B-6-2, §18B-6-3, §18B-6-4, §18B-6-5 and §18B-6-6; to amend and reenact §18B-7-1 of said code; to amend said code by adding thereto a new section, designated §18B-7-12; to amend and reenact §18B-9-1 and §18B-9-2 of said code; to amend and reenact §18B-10-2 of said code; and to amend said code by adding thereto a new section, designated §18B-10-1b, all relating to education generally; higher education; community and technical college education; post-secondary education; state board membership; powers and duties of higher education policy commission and council for community and technical college education; goals for post-secondary education; definitions; transferring certain rules and expanding and clarifying rule-making authority; developing and approving institutional compacts and master plans; establishing benchmarks and indicators; authorizing emergency rule; selecting peer institutions; legislative financing goals; budget authority of commission and council; provision of baccalaureate and graduate education; reducing duration of certain grants; higher education personnel; developing public policy agenda; commission membership; consistency and cooperation among commission, council and certain boards and groups; establishing priorities and distributing funds for capital projects; employment of staff; appointments to boards and commissions; transfer of certain course credits; approval of new institutions, programs and courses; employment of chancellor for higher education; powers and duties; evaluations and contracts; appointment of institutional presidents; evaluations; role of governing and advisory boards, commission and council in appointments; requiring study of certain institutions providing post-secondary education; requiring reports to legislative oversight commission on education accountability; powers and duties of governing boards and institutional boards of advisors; authority of governing board in determining institutional status; changing status of certain baccalaureate institutions; establishing or continuing governing and advisory boards for certain institutions; membership; terms of office; legislative findings; employment of chancellor for community and technical college education; evaluations and contracts; maintenance of employee benefits; council membership and terms of office; qualifications; jurisdiction and authority of council; employment of staff; tuition and fees; certain fee transfer; developing standards for remedial and developmental courses; higher education report card; authorization to withdraw certain powers from a governing board; transfer and expansion of certain administrative, programmatic and budgetary control; establishing certain deadlines for commission and council; transferring certain fund and authorizing expenditures; employee transfer; powers and duties of chancellor; establishing and conforming structure of certain advisory groups; membership and terms of office; exceptions; meetings; development of search and screening guidelines; establishing certain advisory groups; clarifying certain expenses; modifying deadline for attaining independent accreditation; exceptions; council options; district consortia elimination; community and technical college consortia districts established; consortia powers, duties, responsibilities and operation; modifying title of certain employees; continuation in office; council authority over certain degree programs; service and fee requirement modification and limitation; employee reorganization; supervision of certain employees; essential services; employment of vice chancellor for administration; deadline for employment; modifying certain purchasing and competitive bidding requirements; certain employee seniority and displacement authority modification; duty of council regarding personnel classification system; creation, collection and use of certain fees; and eliminating certain obsolete provisions.
                              Respectfully submitted,
     Robert H. Plymale, Chair, Larry J. Edgell, John R. Unger II, Jon Blair Hunter, Donna J. Boley, Conferees on the part of the Senate.
     Jerry L. Mezzatesta, Chair, Larry A. Williams, William F. Stemple, Robert C. Tabb, Roger Romine, Conferees on the part of the House of Delegates.
     Senator Plymale, Senate cochair of the committee of conference, was recognized to explain the report.
     Following extended discussion,
     Thereafter, on motion of Senator Plymale, the report was taken up for immediate consideration.
     The question being on the adoption of the committee of conference report for Engrossed Senate Bill No. 448, and on this question, Senator Oliverio demanded the yeas and nays.
     Following discussion,
     Senator Edgell moved the previous question, which motion prevailed.
     The previous question having been ordered, that being on the adoption of the committee of conference report for Engrossed Senate Bill No. 448.
     The roll being taken, the yeas were: Bailey, Boley, Bowman, Dempsey, Edgell, Facemyer, Helmick, Hunter, Jenkins, Kessler, Love, McCabe, Minard, Minear, Plymale, Ross, Rowe, Sharpe, Snyder, Sprouse, Unger, White and Tomblin (Mr. President)--23.
     The nays were: Caldwell, Chafin, Deem, Fanning, Guills, Harrison, McKenzie, Oliverio, Prezioso, Smith and Weeks--11.
     Absent: None.
     So, a majority of those present and voting having voted in the affirmative, the President declared the committee of conference report adopted.
     Engrossed Senate Bill No. 448, as amended by the conference report, was then put upon its passage.
     On the passage of the bill, as amended, the yeas were: Bailey, Boley, Bowman, Dempsey, Edgell, Facemyer, Helmick, Hunter, Jenkins, Kessler, Love, McCabe, Minard, Minear, Oliverio, Plymale, Prezioso, Ross, Rowe, Sharpe, Snyder, Sprouse, Unger, White and Tomblin (Mr. President)--25.
     The nays were: Caldwell, Chafin, Deem, Fanning, Guills, Harrison, McKenzie, Smith and Weeks--9.
     Absent: None.
     So, a majority of all the members present and voting having voted in the affirmative, the President declared the bill (Eng. S. B. No. 448) passed with its conference amended title.
     Senator Chafin moved that the bill take effect from passage.
     On this question, the yeas were: Bailey, Boley, Bowman, Dempsey, Edgell, Facemyer, Helmick, Hunter, Jenkins, Kessler, Love, McCabe, Minard, Minear, Oliverio, Plymale, Prezioso, Ross, Rowe, Sharpe, Snyder, Sprouse, Unger, White and Tomblin (Mr. President)--25.
     The nays were: Caldwell, Chafin, Deem, Fanning, Guills, Harrison, McKenzie, Smith and Weeks--9.
     Absent: None.
     So, two thirds of all the members elected to the Senate having voted in the affirmative, the President declared the bill (Eng. S. B. No. 448) takes effect from passage.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate and request concurrence therein.
     The Senate proceeded to the sixth order of business.
     Senators Snyder, McCabe, Edgell and Rowe offered the following resolution:
     Senate Concurrent Resolution No. 96--Requesting the Governor establish, by executive order, a nonprofit foundation for the express purpose of studying and implementing ways to obtain funding through donations, grants, loans and user fees for maintenance of the state capitol building and its grounds.
     Whereas, The state capitol building and its grounds are a source of great pride for the citizens of the state; and
     Whereas, Maintenance and repair to the capitol building and its grounds is exceedingly expensive; and
     Whereas, The state's citizenry, individuals, businesses and other entities might, under proper circumstances, contribute to the maintenance and repair; and
     Whereas, Creation of a foundation by the Governor may engender an atmosphere of great purpose in the project and thereby invite the commitment of substantial resources to this worthwhile venture; and
     Whereas, The foundation may be named "Friends of the Capitol Foundation" and become a permanent part of preserving this magnificent monument; therefore, be it
    Resolved by the Legislature of West Virginia:
     
That the Legislature hereby requests the Governor to establish, by executive order, a nonprofit foundation for the express purpose of studying and implementing ways to obtain funding through donations, grants, loans and user fees for maintenance of the state capitol building and its grounds; and, be it
     Further Resolved, That the Secretary of the Department of Administration should serve as a consultant for the foundation; and, be it
     Further Resolved, That the Clerk of the Senate is hereby directed to forward a copy of this resolution to the Governor and the Secretary of the Department of Administration.
     At the request of Senator Snyder, unanimous consent being granted, the resolution was taken up for immediate consideration and reference to a committee dispensed with.
     The question being on the adoption of the resolution, the same was put and prevailed.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate and request concurrence therein.
     Senators Hunter, Sharpe, Rowe, Edgell, McCabe, Kessler, Minard, Oliverio, McKenzie, Fanning, Plymale, Prezioso, Chafin, Helmick, Snyder, Bowman, Bailey, Unger, Jenkins, Ross, Dempsey, Love, Deem, Facemyer, Weeks, Boley, Guills, Smith, Minear, Sprouse, White and Tomblin (Mr. President) offered the following resolution:
     Senate Resolution No. 41--Recognizing the 100th anniversary of basketball at West Virginia University.
     Whereas, Basketball was played at West Virginia University as an intramural sport from 1898 until 1904 when a formal team was organized; and
     Whereas, Due to a lack of practice facilities and limited funding, the program was returned to intramural status in 1908; and
     Whereas, In 1915, public interest in basketball had grown nationwide, prompting WVU to reinstate the basketball team; and
     Whereas, In 1916, with approval from the Board of Regents, a facility called the "Ark" was opened for the Mountaineers to call home; and
     Whereas, In 1928, the West Virginia University Field House was built which seated 4,500 people. In this new "basketball palace", the Mountaineers won 25 of the first 30 contests; and
     Whereas, In 1942, WVU finally arrived at the top, with a stunning performance in the National Invitational Tournament where they captured the national championship; and
     Whereas, In 1946, the Mountaineers finished third in the NIT. The next year, they ranked first in the nation at 18-1 which advanced them to the NIT semifinals before being upset to finish at 19-3; and
     Whereas, Referred to as the first "Golden Era" in Mountaineer basketball, the 1950s was one of West Virginia's most prosperous decades. The Mountaineers compiled a record of 218-68, won six Southern Conference titles, competed in six NCAA tournaments, completed the 1958 regular season as the nation's top-ranked team and finished as the NCAA national runner-up in 1959; and
     Whereas, The 1960s brought more NCAA tournament trips as Southern Conference champs; and
     Whereas, The 1970s heralded the team's move to the West Virginia University Coliseum and a return to the second "Golden Era". The Mountaineers reestablished their dominance with their new home court; and
     Whereas, The 1980s brought 16 post-season appearances, including eight NCAA tournaments, two Atlantic 10 tournament championships and three Atlantic 10 regular season titles; and
     Whereas, In the 1990s, West Virginia's initiation into the Big East conference was one of the finest in the annals of the league. In the third season in the league, WVU became a force in the Big East with a shot at the NIT title. The Mountaineers spent the majority of the 1990s in the top 25. At the NCAA tournament, WVU carried the Big East banner; and
     Whereas, After 94 seasons and 100 years of play, more than 1,400 victories and boasting of some of the game's greatest players, West Virginia University's basketball history is as rich with tradition as any school in the nation; and
     Whereas, With the beginning of a new era, the Mountaineers look to the future to further etch their place in basketball history; therefore, be it
     Resolved by the Senate:
     
That the Senate hereby recognizes the 100th anniversary of basketball at West Virginia University; and, be it
     Further Resolved, That the Clerk is hereby directed to forward a copy of this resolution to the President of West Virginia University, the Athletic Director and the Head Basketball Coach.
     At the request of Senator Hunter, unanimous consent being granted, the resolution was taken up for immediate consideration, reference to a committee dispensed with, and adopted.
     On motion of Senator Chafin, the Senate recessed for one minute.
     Upon expiration of the recess, the Senate reconvened.
     Senator Chafin announced that in the meeting of the Committee on Rules previously held, the committee, in accordance with rule number seventeen of the Rules of the Senate, had removed from unfinished business, Senate Concurrent Resolution No. 67, Senate Concurrent Resolution No. 75, Senate Concurrent Resolution No. 93, House Concurrent Resolution No. 6 and House Concurrent Resolution No. 58.
     Senator Chafin also announced that in the same meeting, the Committee on Rules had returned to the Senate calendar, on third reading, Engrossed Committee Substitute for House Bill No. 4388 and Engrossed House Bill No. 4672, under rule number seventeen of the Rules of the Senate.
     The Senate proceeded to the seventh order of business.
     Senate Concurrent Resolution No. 54, Requesting Joint Committee on Government and Finance study liability of Division of Forestry and others as to forest fires.
     On unfinished business, coming up in regular order, was reported by the Clerk.
     On motion of Senator Chafin, the resolution was rereferred to the Committee on Rules.
     Senate Concurrent Resolution No. 67, Requesting Joint Committee on Government and Finance study criminal penalties for interference with medical treatment of railroad employees.
     Having been removed from unfinished business in earlier proceedings today, no further action thereon was taken.
     Senate Concurrent Resolution No. 75, Requesting Joint Committee on Government and Finance study requiring arresting agency pay certain costs of incarceration.
     Having been removed from unfinished business in earlier proceedings today, no further action thereon was taken.
     Senate Concurrent Resolution No. 90, Requesting Joint Committee on Government and Finance study solvency of unemployment compensation fund.
     On unfinished business, coming up in regular order, was reported by the Clerk and referred to the Committee on Rules.
     Senate Concurrent Resolution No. 91, Requesting Joint Committee on Government and Finance study fraudulent credit card transactions.
     On unfinished business, coming up in regular order, was reported by the Clerk and referred to the Committee on Rules.
     Senate Concurrent Resolution No. 92, Requesting Joint Committee on Government and Finance study ways to reduce and eliminate sales tax on food.
     On unfinished business, coming up in regular order, was reported by the Clerk and referred to the Committee on Rules.
     Senate Concurrent Resolution No. 93, Requesting Congress examine rules and regulations of beef industry.
     Having been removed from unfinished business in earlier proceedings today, no further action thereon was taken.
     House Concurrent Resolution No. 6, Naming the bridge located at Howell's Mill near Ona, WV, the Rimmer-White Bridge.
     Having been removed from unfinished business in earlier proceedings today, no further action thereon was taken.
     House Concurrent Resolution No. 8, Requesting a study on the childhood obesity epidemic in West Virginia in regards to chronic disease, poor nutrition and inadequate exercise.
     On unfinished business, coming up in regular order, was reported by the Clerk.
     The following amendment to the resolution, from the Committee on Rules, was reported by the Clerk and adopted:
     On page one, by striking out everything after the title and inserting in lieu thereof the following:
     Whereas, About one third of adults in West Virginia are overweight and one in four are obese; and
     Whereas, The United States experienced unprecedented increases in weight gain and obesity in the last decade--reaching epidemic proportions. In 1991, no state had an obesity rate of 20 percent or higher. As of the year 2000, 22 states reported obesity rates of 20 percent or higher. These increases cut across all ages, racial and ethnic groups and both genders; and
     Whereas, West Virginia ranks first among all states in obesity; and
     Whereas, Forty percent of children in West Virginia are either overweight or obese, and this prevalence has nearly tripled for adolescents in the past two decades; and
     Whereas, Obesity is associated with increased mortality and risk for a number of disorders, including cardiovascular disease, hypertension, stroke, Type II diabetes, osteoarthritis and certain cancers; and
     Whereas, Obesity has a significantly greater effect on the number of chronic conditions than the effects of current or past smoking or problem drinking; and
     Whereas, A study by Obesity Research shows the estimated adult obesity-attributable medical expenditures in West Virginia are $588 million for the total population, $140 million for the Medicare population and $187 million for the Medicaid population; and
     Whereas, According to the United States Centers for Disease Control and Prevention (CDC), if this trend is not reversed, obesity-related health problems and associated costs will soon surpass those associated with tobacco; and
     Whereas, Research supports the conviction that strong, healthy bodies promote learning and enhance mental and emotional health, social development, self-esteem and overall fitness and that coupling physical activity with an academic curriculum results in an overall increase in academic performance among school-age children; and
     Whereas, Early detection and treatment of obesity as well as an emphasis on physical and nutritional education in childhood provides an opportunity for the development of lifelong health and fitness skills as well as proper eating habits; and
     Whereas, Obesity is a preventable and treatable disease that has reached epidemic proportions; and education, prevention and proper treatment can reduce health care costs and improve the quality of life for a significant number of adults and children in West Virginia; therefore, be it
     Resolved by the Legislature of West Virginia:
     That the Joint Committee on Government and Finance urges the Governor of the State of West Virginia, the Legislature of West Virginia, the Department of Health and Human Resources, the Public Employees Insurance Agency, the Department of Education and other state agencies and institutions to make the prevention and treatment of obesity a priority and to work to reduce obesity and improve the health and wellness of the residents of West Virginia through the following measures:
     (1) Working collaboratively with federal agencies, such as the United States Centers for Disease Control and Prevention and with other states to promote guidelines and best practices in the prevention and treatment of obesity;
     (2) Educating the medical community, teachers and school administrators, employers and the general public about the scope of the problem and ways to prevent and treat obesity in adults and children;
     (3) Providing incentives and promoting the availability of obesity-related treatment in the state Medicaid program, PEIA and other state-funded insurance programs;
     (4) Identifying and implementing strategies to increase the amount of daily quality physical activity and nutrition education in the curriculum of public schools; and
     (5) Providing incentives for workplace initiatives to combat obesity and encourage physical activity; and, be it
     Further Resolved, That the Joint Committee on Government and Finance is requested to study potential policies and legislation to encourage people to change their lifestyles which would result in dramatic changes in outcome measures on obesity within five years; and, be it
     Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2005, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it
     Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.
     The question being on the adoption of the resolution (H. C. R. No. 8), as amended, the same was put and prevailed.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate and request concurrence therein.
     House Concurrent Resolution No. 25, Requesting the three branches of state government to cooperate and encourage leaders of the state, county and municipal governments to identify and affirmatively address the racial disparities in various areas of civil rights.
     On unfinished business, coming up in regular order, was reported by the Clerk.
     The following amendments to the resolution, from the Committee on Government Organization, were reported by the Clerk, considered simultaneously, and adopted:
     On page one, by striking out everything after the title and inserting in lieu thereof the following:
     Whereas, House Concurrent Resolution No. 76, adopted by the West Virginia Legislature in 2002, recognizes and outlines a number of employment, social, health, educational, criminal justice and economic problems confronting African-Americans and their communities in this state; and
     Whereas, Select Committee B on Minority Issues was created by the Joint Committee on Government and Finance as part of the 2003 legislative interims to consider House Concurrent Resolution No. 76 and to study and make recommendations and offer solutions to address problems identified in House Concurrent Resolution No. 76; and
     Whereas, According to the 2000 Census, African-Americans comprise approximately 3.2 percent of the state's population and more than 5 percent of the population in seven counties; and
     Whereas, The West Virginia Legislature should be committed to connecting communities, exploring strategies for racial and social equality and taking proactive steps to remedy the effects of past discrimination on African-American children, adults and families; and
     Whereas, Prevention of discrimination in civil rights, the justice system, education, health care, economic development, employment, business development, housing and community and family services is preferable to attempting to remedy the consequences of discrimination; and
     Whereas, There is a wide disparity between African-American and caucasian public school students in West Virginia with regard to standardized testing scores, indicating a significant achievement gap which widens with tragic consequences for a number of African- American students as they progress in school; and
     Whereas, On the 2003 ACT college entrance examination, which is used by the PROMISE scholarship program to determine eligibility for college scholarships, African-American students' success rate was significantly lower than that of caucasian students; and
     Whereas, African-American children have been overrepresented in special education programs in schools in Kanawha County, the only area of the state for which statistics were provided to the Committee, and underrepresented in advanced education programs and programs for performing or gifted students; but the Kanawha County Board of Education has established programs to identify and include all qualified students, without regard to race, in special programs to enhance performance and to address the academic achievement gap between African-American and caucasian children at early stages of the public education process; and
     Whereas, The percentage of African-American teachers and educational professionals in many of the state's public schools is disproportionately lower than the African-American student population, to some degree depriving minority students of important African-American role models and advocates in educational settings; and
     Whereas, Training assistance and education programs with affirmative outreach to African-Americans combine to help prevent racial discrimination; and
     Whereas, African-Americans in West Virginia experience a disproportionately higher incidence of health risk and mortality from cancer, diabetes, hypertension, heart disease and HIV; African- American women tend to be diagnosed with breast cancer at later stages than caucasian women; and the teen birth rate and the infant mortality rate among African-Americans is twice that of caucasians; and
     Whereas, The percentage of African-American children in the care and/or custody of the Bureau of Children and Families in 2003 was more than twice the percentage of African-Americans in the general West Virginia population; and
     Whereas, Business ownership among African-Americans in Charleston, West Virginia, the only area of the state for which statistics were provided to the Committee, is proportionately less than minority business ownership nationwide; and
     Whereas, The unemployment rate of African-Americans recently has been about twice the unemployment rate for caucasians and significantly higher in some counties with a greater concentration of African-American population; and
     Whereas, Statistics provided by the State Equal Employment Opportunity Office indicate that the percentage of minority employees among the full-time state government employees under the control of the Department of Administration is approximately the same as the percentage of African-Americans in the state's population as a whole; and
     Whereas, The West Virginia Advisory Committee to the United States Commission on Civil Rights has found continuing reports of racial discrimination in hiring, tension between law-enforcement officers and African-American citizens and hate crimes and violence against minorities, including reported incidents of harassment of racial and ethnic minorities in schools; and
     Whereas, The West Virginia Human Rights Commission reports that two thirds of the hate crimes reported between 1992 and 2000 were racially motivated; and
     Whereas, The West Virginia Legislative Auditor's Performance Evaluation and Research Division (PERD) reports that there is a scarcity of minority and female state troopers, especially in upper ranks, with only 16 (2.6 percent) of 606 troopers being female and only 3 (1.3 percent) of 606 troopers being African-American; that the percentages of female and African-American officers in county sheriff's departments are even lower; and that the state's 10 largest cities employ, on average, only 4.6 percent female officers and 3.9 percent African-American officers, even though most of those cities have significantly greater populations of African-Americans; and
     Whereas, The West Virginia State Police have voluntarily sought to determine and monitor their own efforts relating to racial profiling sensitivity during routine traffic stops; and
     Whereas, According to data voluntarily collected and provided by the West Virginia State Police, between October, 2002, and March, 2003, motor vehicles operated by minority drivers were stopped by state troopers at a rate roughly comparable to the percentage of minorities in the general state population. After being stopped, 63 percent of minority drivers were ticketed or arrested, compared to 51 percent of caucasian drivers, and warnings were issued to 37 percent of all minority drivers, compared to 49 percent of caucasian drivers; and
     Whereas, West Virginia enjoys both a low juvenile crime rate and one of the nation's lowest juvenile detention rates, yet the percentage of minority youth in the West Virginia juvenile justice system exceeds the national rate of minority youths in the juvenile justice system; and
     Whereas, In West Virginia, African-Americans make up only 3.2 percent of the general population, but account for one third of the adult prison population, one fifth of the juveniles placed in detention and admitted to correctional facilities, and over one half of the juveniles transferred to adult jurisdiction for major felonies; and
     Whereas, There is a great and immediate need for comprehensive data collection and analysis on a multiyear basis and for continuing examination and review of solutions with regard to racial disparities in the areas of civil rights, health, education, housing, social issues, employment, economic development and criminal and juvenile justice systems; therefore, be it
     Resolved by the Legislature of West Virginia:
     That the three branches of state government should cooperate and encourage leaders of the state to identify and affirmatively address minority issues and racial disparities in the areas of civil rights, health, education, housing, social issues, employment, economic development and criminal and juvenile justice systems; and, be it
     Further Resolved, That county boards of education should be encouraged to aggressively recruit minority teachers and other professionals to work in the public school system; and, be it
     Further Resolved, That the Department of Education and county boards of education be given greater flexibility to employ teachers who are trained or experienced in working with African-American children and parents; and, be it
     Further Resolved, That the Legislature should provide funding for professional development to improve teachers' effectiveness with African-American students and parents; and, be it
     Further Resolved, That the Legislature should provide more funding for academic enrichment programs in locations where there are concentrations of poor and minority students, including more early preschool programs and after-school programs; and, be it
     Further Resolved, That the Department of Health and Human Resources should increase access to education in welfare-to-work programs and evaluate placement and referral policies; and, be it
     Further Resolved, That the Governor continue the mission of the Governor's Minority Students' Strategies Council to collect and analyze information from other states and organizations regarding effective policies and strategies for closing the academic achievement gap between caucasian and minority students and to prepare an annual report for the Governor, the State Board of Education, the Higher Education Policy Commission, the Legislative Oversight Commission on Education Accountability and the public, outlining issues, recommendations and strategies to close the academic achievement gap; and, be it
     Further Resolved, That the Department of Education be required to review its Policy No. 2421, 126 CSR 18 (1996) governing peer harassment and violence against minority students, to study the extent to which the Policy has been implemented in public schools throughout the state and to take necessary steps to ensure complete implementation of the Policy in all public schools as soon as reasonably possible; and, be it
     Further Resolved, That the Department of Education and county boards of education themselves, with the input of the local communities, should provide hate crime prevention and response programs in schools and antibias training and education for students and teachers, including mechanisms to ensure harassment is reported before problems escalate, and that there are appropriate responses to incidents of harassment when they do occur; and, be it
     Further Resolved, That the Legislature should direct resources to support community-level partnership and innovation to address racial and ethnic disparities in health care; and, be it
     Further Resolved, That all governmental agencies, institutions and corporate bodies at state and local levels should be encouraged to regularly collect, analyze and report to the Department of Administration data relating to racial disparities among children, adults and families in West Virginia; and, be it
     Further Resolved, That the Department of Administration should review and, if necessary, establish or reform state procurement policies and practices to assure that they meet federal and state requirements and that they effectively encourage meaningful participation of African-Americans and other minorities in the process of competing for and awarding of state contracts for goods and services; and, be it
     Further Resolved, That the State should continue to support and expand small business incubator programs like the one in place at Bluefield State College to encourage new and minority small business development; and, be it
     Further Resolved, That the State should undertake initiatives to encourage African-American business ownership similar to those efforts used to encourage greater rates of business ownership among women; and, be it
     Further Resolved, That the State should assist community and economic development corporations to provide effective technical and business advisory services to minority-owned and -operated enterprises; and, be it
     Further Resolved, That the Governor and the Legislature should encourage industry, banks and other private businesses to hire African-Americans and to encourage businesses to be more aggressive in establishing diversity-conscious practices as employers and for their operations; and, be it
     Further Resolved, That the State should encourage traditional and nontraditional lending institutions to be more creative and favorable to lending in minority communities and to minority persons, especially for business enterprises; and, be it
     Further Resolved, That the Legislature should encourage small business start-up and expansion and provide funding to assist African-American and other minority vendors to meet bid bonding requirements; and, be it
     Further Resolved, That workforce investment boards should be accountable for educating poor and minority persons for jobs better than low-paying service jobs; and, be it
     Further Resolved, That the West Virginia State Police and local law-enforcement officers should be trained and required to collect data regarding stops of motor vehicle operators which affect everyone's precious right of privacy in their motor vehicles, which data should include information on the stops and arrests of African- Americans; and, be it
     Further Resolved, That the West Virginia State Police and local law-enforcement agencies be required to provide diversity training for officers, including training to recognize and report hate crimes; and, be it
     Further Resolved, That the West Virginia State Police be required to develop, in writing, goals for increasing the number of women and African-Americans for all grades of officers and staff and to report annually as to its efforts and success in meeting those goals and be encouraged to employ African-American and other minority persons as recruiting officers; and, be it
     Further Resolved, That the Legislature, the Governor and the Supreme Court should increase support for criminal justice research and for the development, maintenance and continued assessment of data related to the effectiveness of the court system in the areas of criminal sentencing, juvenile adjudication and community-based corrections; and, be it
     Further Resolved, That the Legislature should protect and maintain the confidentiality of juvenile records pending a study on the adverse impact of the release of such records on the employment and higher education opportunities of minority youth; and, be it
     Further Resolved, That the West Virginia Supreme Court of Appeals should continue to study issues related to minority youth, including the highly disproportionate number of minority youth transferred from juvenile to adult jurisdiction in the criminal justice system through its Task Force to Study Perceived Racial Disparity in the Juvenile Justice System and to study and develop similar research projects with data collection in regard to adult offenders; and, be it
     Further Resolved, That state agencies should study racial disparities in a number of areas to reduce gaps in educational achievement and in the overrepresentation of African-Americans in adult prisons and juvenile facilities and encourage all participants in the educational and justice systems, including teachers, principals and other educational personnel, probation officers, juvenile referees, judges, justices, prosecutors, attorneys, law- enforcement officers, detention and correctional officers, caseworkers, social service providers, agency staff and members of the community to join in the study and development of policies and programs to address racial disparities; and, be it
     Further Resolved, That the Legislature, the Governor and the Supreme Court should take immediate steps to develop, implement and fund a collaborative and comprehensive community-based plan to study and correct overrepresentation of minority children and adults in the state's criminal and juvenile justice systems, with particular attention to prevention of juvenile crime through mentoring, diversion, recidivism-reduction strategies, in-school and after- school programs, entrepreneurial education, job training and placement alternatives, community-based sentencing for nonviolent offenders and transition and reentry programs for offenders upon completion of their sentences; and, be it
     Further Resolved, That state agencies and the Legislature should be encouraged to propose specific legislative proposals where appropriate to facilitate these recommendations; and, be it
     Further Resolved, That the Legislature should continue to study minority and racial disparity issues in 2004; and, be it
     Further Resolved, That the Clerk of the Senate is hereby directed to forward a copy of this resolution to the Governor of West Virginia, the Justices of the West Virginia Supreme Court of Appeals, the President of the West Virginia Senate and the Speaker of the West Virginia House of Delegates.;
     And,
     On page one, by striking out the title and substituting therefor a new title, to read as follows:
     House Concurrent Resolution No. 25--Requesting the three branches of state government to cooperate and encourage leaders of the state, county and municipal governments to identify and affirmatively address minority issues and racial disparities in the areas of civil rights, health, education, housing, social issues, employment, economic development and criminal and juvenile justice systems in West Virginia in the interest of equality.
     The question being on the adoption of the resolution (H. C. R. No. 25), as amended, the same was put and prevailed.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate and request concurrence therein.
     House Concurrent Resolution No. 28, Requesting that September 12th of every year be declared as West Virginia Monarch Butterfly Day.
     On unfinished business, coming up in regular order, was reported by the Clerk.
     The question being on the adoption of the resolution, the same was put and prevailed.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate.
     House Concurrent Resolution No. 30, Requesting the United States Congress to broaden the eligibility categories of membership in veterans' organizations.
     On unfinished business, coming up in regular order, was reported by the Clerk.
     The following amendment to the resolution, from the Committee on Military, was reported by the Clerk and adopted:
     On page one, in the Resolved clause, after the words "United States" by inserting a comma and the words "wherever possible,".
     The question being on the adoption of the resolution (H. C. R. No. 30), as amended, the same was put and prevailed.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate and request concurrence therein.
     House Concurrent Resolution No. 47, Requesting a study on providing limitations on nurse overtime policies in hospitals operated by state agencies within West Virginia.
     On unfinished business, coming up in regular order, was reported by the Clerk.
     The question being on the adoption of the resolution, the same was put and prevailed.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate.
     House Concurrent Resolution No. 55, Requesting a study whether wild ginseng and cultivated ginseng should be regulated in the same manner.
     On unfinished business, coming up in regular order, was reported by the Clerk.
     The question being on the adoption of the resolution, the same was put and prevailed.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate.
     House Concurrent Resolution No. 58, Naming the new Watson Bridge, over the West Fork River on U. S. Route 250 in Fairmont, Marion County, West Virginia, the "Jim Costello Memorial Bridge".
     Having been removed from unfinished business in earlier proceedings today, no further action thereon was taken.
     Com. Sub. for House Concurrent Resolution No. 60, Designating Route 19/25 near Sutton, Braxton County, as "Tiffany Jackson Drive" in memory and honor of Tiffany Elaine Jackson.
     On unfinished business, coming up in regular order, was reported by the Clerk.
     The question being on the adoption of the resolution, the same was put and prevailed.
     Ordered, That The Clerk communicate to the House of Delegates the action of the Senate.
     Pending announcement of a meeting of a standing committee of the Senate,
     On motion of Senator Chafin, the Senate recessed until 5 p.m. today.