__________*__________
Monday, November 14, 2005
The House of Delegates met at 4:30 p.m., and was called to order by the Speaker.
Prayer was offered and the House was led in recitation of the Pledge of Allegiance.
The Clerk proceeded to read the Journal of Sunday, November 13, 2005, being the first order
of business, when the further reading thereof was dispensed with and the same approved.
House Calendar
Second Reading
H. B. 501, Qualifying the West Virginia Employers' Mutual Insurance Company for a federal
tax exemption; on second reading, coming up in regular order, was read a second time.
On motion of Delegate Michael, the bill, was amended on page two, following the enacting
clause, by striking out the remainder of the bill and inserting in lieu thereof the following:
"That §23-2C-1, §23-2C-2, §23-2C-4, §23-2C-7, §23-2C-8, §23-2C-15, §23-2C-16 and §23-
2C-20 of the code of West Virginia, 1931, as amended, be amended and reenacted; that the code be
amended by adding thereto a new section, designated §23-2C-3a; and that §23-4B-1, §23-4B-2, §23-
4B-3, §23-4B-4, §23-4B-5, §23-4B-7 and §23-4B-9 of the code be amended and reenacted, all to
read as follows:
ARTICLE 2C. EMPLOYERS' MUTUAL INSURANCE COMPANY.
§23-2C-1. Findings and purpose.
(a) The Legislature finds that:
(1) There is a long-term actuarial funding crisis in the state-run monopolistic workers'
compensation system;
(2) Similar short-term and long-term crises have been ongoing during the past two decades;
(3) During the current crisis, employers in West Virginia find it increasingly difficult to
afford the rates charged by the Workers' Compensation Commission for workers' compensation
coverage and that paying said rates adversely impacts employers' ability to compete in a global
economic environment;
(4) The cost of obtaining workers' compensation coverage from the state system may result
in many employers leaving the state;
(5) Employers' access to competitive workers' compensation rates and the resulting economic
development benefit is of utmost importance to the citizens of West Virginia;
(6) A mechanism is needed to provide an enduring solution to this recurring workers'
compensation crisis;
(7) An employers' mutual insurance company or a similar entity has proven to be a successful
mechanism in other states for helping employers secure insurance and for stabilizing the insurance
market;
(8) There is a substantial public interest in creating a method to provide a stable workers'
compensation insurance market in this state;
(9) The state-run workers' compensation program is a substantial actual and potential liability
to the state;
(10) There is substantial public benefit in transferring certain actual and potential future
liability of the state to the private sector and creating a stable self-sufficient entity which will be a
potential source of workers' compensation coverage for employers in this state;
(11) A stable, financially viable insurer in the private sector will aid in providing a continuing
source of insurance funds to compensate injured workers; and
(12) Because the public will greatly benefit from the formation of an employers' mutual
insurance company, state efforts to encourage and support the formation of such an entity, including
providing funding for the entity's initial capital, is in the clear public interest.
(b) The purpose of this article is to create a mechanism for the formation of an employers'
mutual insurance company that will provide:
(1) A means for employers to obtain workers' compensation insurance that is reasonably
available and affordable; and
(2) Compensation to employees of mutual policyholders who suffer work place injuries as
defined in this chapter.
(c) The further purpose of this article is to transfer New Fund assets relating to the workers'
compensation insurance business to the company, including a reasonable level of policyholder
surplus, and for the company to assume the New Fund liabilities related to the transferred assets.
It is the intent of this article to provide for the initial capitalization of the company to comply with
and to meet the requirements of section 351 and related sections of the Internal Revenue Code.
§23-2C-2. Definitions.
(a) 'Executive Director' means the Executive Director of the West Virginia Workers'
Compensation Commission as provided in section one-b, article one of this chapter.
(b) 'Commission' means the West Virginia Workers' Compensation Commission as provided
by section one, article one of this chapter.
(c) 'Insurance Commissioner' means the Insurance Commissioner of West Virginia as
provided in section one, article two, chapter thirty-three of this code.
(d) 'Company' or 'successor to the Commission' means the Employers' Mutual Insurance
Company created pursuant to the terms of this article.
(e) 'Policy default' shall mean a policyholder that has failed to comply with the terms of its
workers' compensation insurance policy and is consequently without workers' compensation
insurance coverage.
(f) 'Industrial insurance' means insurance which provides all compensation and benefits
required by this chapter.
(g) 'Insurer' includes:
(1) A self-insured employer; and
(2) A private carrier.
(h) 'Industrial Council' means the advisory group established in section five of this article.
(i) 'Mutualization Transition Fund' shall be a fund over which the State Treasurer is
custodian. Moneys transferred or otherwise payable to the Mutualization Transition Fund shall be
deposited in the State Treasury to the credit of the Mutualization Transition Fund. Disbursements
shall be made from the Mutualization Transition Fund upon requisitions signed by the Executive
Director, and, upon termination of the Commission, the Insurance Commissioner, and shall be
reasonably related to the legal, operational, consultative and human resource related expenses
associated with the establishment of the company and the transferring of personnel from the
Commission to the company.
(j) 'New Fund' shall mean a fund owned and operated by the Commission and, upon
termination of the Commission, the successor organization of the West Virginia Workers'
Compensation Commission and shall consist of those funds transferred to it from the Workers'
Compensation Fund and any other applicable funds. New Fund shall include all moneys due and
payable to the Workers' Compensation Fund for the quarters ending the thirtieth day of September,
two thousand five, and the thirty-first day of December, two thousand five, which have not been
collected by the Workers' Compensation Fund as of the thirty-first day of December, two thousand
five.
(k) 'New Fund liabilities' shall mean all claims payment obligations (indemnity and medical
expenses) for all claims, actual and incurred but not reported, for any claim with a date of injury or
last exposure on or after the first day of July, two thousand five: Provided, That New Fund liabilities
shall begin with claims payments becoming due and owing on said claims on or after the first day of January, two thousand six.
(l) 'Old Fund' shall mean a fund held by the State Treasurer's office consisting of those funds
transferred to it from the Workers' Compensation Fund or other sources and those funds due and
owing the Workers' Compensation Fund as of the thirtieth day of June, two thousand five, that are
thereafter collected. The Old Fund and assets therein shall remain property of the state and shall not
novate or otherwise transfer to the company.
(m) 'Old Fund liabilities' mean all claims payment obligations (indemnity and medical
expenses), related liabilities and appropriate administrative expenses necessary for the administration
of all claims, actual and incurred but not reported, for any claim with a date of injury or last exposure
on or before the thirtieth day of June, two thousand five: Provided, That Old Fund liabilities shall
include all claims payments for any claim, regardless of date of injury or last exposure, through the
thirty-first day of December, two thousand five: Provided, however, That Old Fund liabilities shall
include all claims with dates of injuries or last exposure prior to the first day of July, two thousand
four, for bankrupt self-insured employers that had defaulted on their claims obligations which have
been recognized by the Commission in its actuarially determined liability number as of the thirtieth
day of June, two thousand five.
(n) 'Private carrier' means any insurer or the legal representative of an insurer authorized by
the Insurance Commissioner to provide workers' compensation insurance pursuant to this chapter
and which maintains an office in the state. The term does not include a self-insured employer or
private employers but shall include any successor to the Commission.
(o) 'Uninsured Employer Fund' means a fund held by the State Treasurer's office consisting
of those funds transferred to it from the Workers' Compensation Fund and any other source.
Disbursements from the Uninsured Employer Fund shall be upon requisitions signed by the
Insurance Commissioner and the administrator of the fund, and as otherwise set forth in an exempt
legislative rule promulgated by the Workers' Compensation Board of Managers.
(p) 'Self-Insured Employer Guaranty Risk Pool' shall be a fund held by the State Treasurer's office consisting of those funds transferred to it from the guaranty pool created pursuant to 85 CSR
§19 (2004) and any future funds collected through continued administration of that exempt
legislative rule as administered by the Insurance Commissioner. Disbursements shall be made from
the Self-Insured Employer Guaranty Risk Pool upon requisitions signed by the Insurance
Commissioner and the administrator of the fund. The obligations of the fund shall be as provided
in 85 CSR §19 (2004). The company shall administer the self-insured employer guaranty risk pool
for a term and administrative fee as provided in the administration of the old fund.
(q) 'Self-Insured Employer Security Risk Pool' shall be a fund held by the State's Treasurer
consisting of those funds paid into it through the Insurance Commissioner's administration of 85
CSR §19 (2004). Disbursement from said fund shall be made from the Self-Insured Employer
Security Risk Pool upon requisitions signed by the Insurance Commissioner and the administrator
of the fund. The obligations of the fund shall be as provided in 85 CSR §19: Provided, That said
liabilities shall be limited to those self-insured employers who default on their claims obligations
after the termination of the Commission. The company shall administer the self-insured employer
security risk pool for a term and administrative fee as provided in the administration of the old fund.
(r) 'Private Carrier Guaranty Fund' shall be a fund held by the State Treasurer's office
consisting of funds deposited pursuant to this article. Disbursements shall be made from the Private
Carrier Guaranty Fund upon requisitions signed by the Insurance Commissioner and the
administrator of the fund. The obligations of the fund shall be as provided in this article. The
company shall administer the private carrier guaranty fund for a term and administrative fee as
provided in the administration of the old fund.
(s) 'Assigned Risk Fund' shall be a fund held by the State Treasurer's office consisting of
funds deposited pursuant to this article. Disbursements shall be made from the Assigned Risk Fund
upon requisitions signed by the Insurance Commissioner. The obligations of the fund shall be as
provided in this article.
(t) 'Comprehensive financial plan' shall mean the plan compiled by the director for acceptance by the Insurance Commissioner identifying and forecasting cash flows, funding sources,
debt terms and structures, and scheduled amortization and permanent resolution of all Old Fund
liabilities. The comprehensive financial plan shall provide for the retirement of the revenue bonds
authorized by article two-d of this chapter and all realized and potential claims against the Old Fund
shall be fully reserved. The comprehensive financial plan may include any other information the
Insurance Commissioner may require as a basis for managing the post-transition fiscal soundness
of the Old Fund.
§23-2C-3a. Employers' Mutual Insurance Company - additional provisions enacted in
November 2005.
(a) Notwithstanding any other provisions of this article to the contrary, the Employers'
Mutual Insurance Company:
(1) May not be dissolved.
(2) May not transact such other kinds of property and casualty insurance for which the
company is otherwise qualified under the provisions of this code prior to the first day of January, two
thousand nine.
(b) As soon as practical following the effective date of this section, the company established
pursuant to the provisions of this article shall, through a vote of a majority of its provisional board,
file its amended articles of incorporation and amended bylaws with the Insurance Commissioner and
apply for a license with the Insurance Commissioner to transact insurance in this state.
Notwithstanding any other provision of this code, the Insurance Commissioner shall act on the
documents within fifteen days of the filing by the company.
(c) Notwithstanding any provision of subsection (g), section three of this article to the
contrary, in the event the governor certifies to the Legislature that revenue bonds issued pursuant to
article two-d of this chapter have been retired and that the unfunded liability of the Old Fund has
been paid or has been provided for in its entirety, whichever occurs last, then:
(1) The premiums surcharge imposed by subdivision (2), subsection (f), section three of this article shall not sunset and shall continue to be remitted in accordance with the provisions of said
subsection; and
(2) The premiums surcharge imposed by subdivision (3), subsection (f), section three of this
article shall sunset and not be collectible with respect to workers' compensation insurance premiums
paid when the policy is renewed on or after the first day of the month following the month in which
the Governor makes the certification.
(d) Except as may otherwise be provided in this subsection, all provisions of section three
of this article shall remain in full force and effect.
§23-2C-4. Governance and organization.
(a) (1) The Commission shall implement the initial formation and organization of the
company as provided by this article.
(2) From the inception of the company, until the first day of January, two thousand six, the
company shall be governed by a provisional board of directors consisting of the three-persons on the
Executive Committee of the Workers' Compensation Board of Managers and four members of the
Legislature. Two members of the West Virginia Senate and two members of the West Virginia
House of Delegates shall serve as advisory nonvoting members of the board. The Governor shall
appoint the legislative members to the board. No more than three of the legislative members shall
be of the same political party. The provisional board shall have the authority to function as necessary
to establish the company and cause it to become operational, including the right to contract on behalf
of the company. Each voting board member shall receive compensation of not more than three
hundred fifty dollars per day and actual and necessary expenses for each day during which he or she
is required to and does attend a meeting of the board.
(3) The provisional board shall develop procedures for the nomination of the board of
directors that will succeed the provisional board on the first day of January, two thousand six, and
for the conduct of the election, to be held no later than the first day of November, two thousand five,
and shall give notice of the election to the current subscribers to the workers' compensation fund. These procedures shall be exempt from the provisions of article three, chapter twenty-nine-a of this
code.
(4) (3) Except as limited by this section and applicable insurance rules and statutes, the
company may: (1) On its own; (2) through the formation or acquisition of subsidiaries; or (3)
through a joint enterprise, offer:
(A) Workers' compensation insurance in a state other than West Virginia to the extent it also
provides workers' compensation or occupational disease insurance coverage to the employer pursuant
to this chapter;
(B) Other workers' compensation products and services and related products and services in
West Virginia or other states; and
(C) Other property and casualty insurance in West Virginia and other states on or after the
first day of January, two thousand nine.
(b) Any election process for the board of directors developed, implemented and overseen by
the company's provisional board prior to the effective date of the amendments to this section enacted
during the fifth extraordinary session of the Legislature in two thousand five, is nullified and the
designation of the company's initial board of directors shall be governed by the following: Effective
the first day of January, two thousand six, the company shall be governed by a Board of Directors
consisting of seven directors, as follows:
(1) Three owners or officers of an entity that has purchased or will immediately upon
termination of the Commission purchase and maintain an active workers' compensation insurance
policy from the company. At least one shall be a certified public accountant with financial
management or pension or insurance audit expertise and at least one shall be an attorney with
financial management experience. These three directors shall be appointed by the Governor.
(2) Two directors who have substantial experience as an officer or employee of a company
in the insurance industry, one of whom is from a company with less than fifty employees;. These two
directors shall be appointed by the Governor.
(3) One director with general knowledge and experience in business management who is an
officer and employee of the company and is responsible for the daily management of the company;
and.
(4) The chief executive officer of the company.
(c) The directors and officers of the company are to be chosen in accordance with the articles
of incorporation and bylaws of the company. The initial board of directors selected appointed by the
Governor shall serve for the following terms: (1) Two for four-year terms; (2) two for three-year
terms; (3) two for two-year terms; and (4) one for a one-year term. Thereafter, the directors shall
serve staggered terms of four years. No director chosen may serve more than two consecutive terms,
except for the chief executive officer of the company. from the termination of the Commission
through the thirty-first day of December, two thousand eight, and may be not removed from that
position except for cause.
__(d) Any board vacancy that occurs from the termination of the Commission through the
thirty-first day of December, two thousand eight, shall be filled through appointment by the
Governor for the unexpired term.
__(e) Upon expiration of the initial terms or upon a vacancy of the board following the thirty-
first day of December, two thousand eight, the directors of the company are to be chosen in
accordance with the articles of incorporation and bylaws of the company, as amended, which shall
provide for the policyholders to nominate and elect future directors. Furthermore, owners, directors
or employees of employers otherwise licensed to write workers' compensation insurance in this state
or licensed or otherwise authorized to act as a third-party administrator shall not be eligible to be
nominated, appointed, elected or serve on the company's board of directors.
(d) (f) The Executive Director shall prepare and file amended articles of incorporation and
bylaws in accordance with the provisions of this article and the provisions of chapters thirty-one and
thirty-three of this code.
(g) It is the intent of this legislation to create an entity exempt from federal taxation, as provided for in Internal Revenue Code Section 501(c)(27)(B), for as long as the company meets the
federal qualification requirements of Section 501(c)(27)(B) of the Internal Revenue Code.
§23-2C-7 Custody, investment and disbursement of funds.
(a) The State Treasurer shall be the custodian of the Workers' Compensation Old Fund,
Workers' Compensation Uninsured Employers' Fund, the Self-Insured Employer Guaranty Risk Pool,
the Self-Insured Employer Security Risk Pool, the Private Carrier Guaranty Fund and the Assigned
Risk Pool and moneys payable to each of these funds shall be deposited in the State Treasury to the
credit of the funds. Each fund shall be a separate and distinct fund upon the books and records of
the Auditor and Treasurer. Disbursements from these funds shall be made upon requisitions signed
by the executive director and, effective upon termination of the commission, the administrator of the
funds and the Insurance Commissioner. The Workers' Compensation Old Fund, the Workers'
Compensation Uninsured Employer Fund, the Self-Insured Employer Guaranty Risk Pool, Self-
Insured Employer Security Risk Pool, the Private Carrier Guaranty Fund and the Assigned Risk Fund
are participant plans as defined in section two, article six, chapter twelve of this code and are subject
to the provisions of section nine-a of said article. The funds may be invested by the Investment
Management Board in accordance with said article.
(b) If the Governor issues the proclamation set forth in this article, then, effective upon
termination of the commission, all remaining assets and funds contained in the Workers'
Compensation Fund which are payable to the New Fund shall be so disbursed and paid to the
company by communication of the executive director to the State Treasurer or other appropriate state
official prior to the termination of the commission.
§23-2C-8. West Virginia uninsured employers' fund.
(a) The West Virginia uninsured employers' fund shall be governed by the following:
(1) All money and securities in the fund must be held by the State Treasurer as custodian
thereof to be used solely as provided in this article.
(2) The State Treasurer may disburse money from the fund only upon written requisition of the Insurance Commissioner and administrator of the fund.
(3) The Insurance Commissioner shall assess each private carrier and all self-insured
employers an amount to be deposited in the fund. The assessment may be collected by each private
carrier from its policy holders in the form of a policy surcharge. To establish the amount of the
assessment, the Insurance Commissioner shall determine the amount of money necessary to maintain
an appropriate balance in the fund for each fiscal year and shall allocate a portion of that amount to
be payable by private carriers, a portion to be payable by self-insured employers, and a portion to be
paid by any other appropriate group. After allocating the amounts payable, the Insurance
Commissioner shall apply an assessment rate to the:
(A) Private carriers that reflects the relative hazard of the employments covered by the private
carriers, results in an equitable distribution of costs among the private carriers and is based upon
expected annual premiums to be received;
(B) Self-insured employers that results in an equitable distribution of costs among the self-
insured employers and is based upon expected annual expenditures for claims; and
(C) Any other categories of payees that results in an equitable distribution of costs among
them and is based upon expected annual expenditures for claims or premium to be received.
(4) The Workers' Compensation Board of Managers may adopt rules for the establishment
and administration of the assessment methodologies, rates, payments and any penalties that the
Workers' Compensation Board of Managers determines are necessary to carry out the provisions of
this section.
(b) Payments from the fund shall be governed by the following:
(1) Except as otherwise provided in this subsection, an injured worker of any employer
required to be covered under this chapter who has failed to obtain coverage may receive
compensation from the uninsured employers' fund if:
(A) He or she meets all jurisdictional and entitlement provisions of this chapter;
(B) He or she files a claim with the Insurance Commissioner; and
(C) He or she makes an irrevocable assignment to the Insurance Commissioner a right to be
subrogated to the rights of the injured employee.
(2) If the Insurance Commissioner receives a claim, it shall immediately notify the employer
of the claim. For the purposes of this section, the employer has the burden of proving that it
provided mandatory workers' compensation insurance coverage for the employee or that it was not
required to maintain workers' compensation insurance for the employee. If the employer meets this
burden, benefits shall not be paid from the fund.
(3) Any employer who has failed to provide mandatory coverage required by the provisions
of chapter twenty-three of this code is liable for all payments made on its behalf, including any
benefits, administrative costs and attorney's fees paid from the fund or incurred by the Insurance
Commissioner.
(4) The Insurance Commissioner:
(A) May recover from the employer the payments made by it, any accrued interest and
attorney fees and costs by bringing a civil action in a court of competent jurisdiction.
(B) May enter into a contract with any person, including the third party administrator of the
uninsured employers' fund, to assist in the collection of any liability of an uninsured employer.
(C) In lieu of a civil action, may enter into an agreement or settlement regarding the
collection of any liability of an uninsured employer.
(5) The Insurance Commissioner shall:
(A) Determine whether the employer was insured within five days after receiving notice of
the claim from the employee.
(B) Assign the claim to the third party administrator of the fund for administration and, if
appropriate, payment of compensation.
(6) Upon determining whether the claim is accepted or denied, the fund third party
administrator shall notify the injured employee and the named employer of its determination.
(7) Any party aggrieved by a determination made by the Insurance Commissioner or the fund third party administrator regarding the claims decisions made pursuant to this section may appeal
that determination by filing a protest with the Office of Judges as set forth in article five of this
chapter.
(8) An uninsured employer is liable for the interest on any amount paid on his or her claims
from the fund. The interest must be calculated at a rate set in accordance with the provisions of
section thirteen, article two of this chapter, compounded monthly, from the date the claim is paid
from the account until payment is received by the Insurance Commissioner or fund third party
administrator from the employer.
(9) Attorney's fees recoverable by the Insurance Commissioner or third party administrator
pursuant to this section must be paid at the usual and customary rate for that attorney.
(10) In addition to any other liabilities provided in this section, the Insurance Commissioner
or the fund third party administrator may impose an administrative fine of not more than ten
thousand dollars against an employer if the employer fails to provide mandatory coverage required
by this chapter. All fines and other moneys collected pursuant to this section shall be deposited into
the uninsured employer fund.
(c) The company shall be the administrator of the uninsured employers' fund from the fund's
inception and thereafter for seven years and shall be charged with all authority and responsibilities
incidental to the administration of the fund which are necessary to accomplish the express provisions
and the intent of this chapter. The company shall be paid a monthly administrative fee of five percent
of claims paid each month for the administration of the fund through the thirty-first day of
December, two thousand ten, and four percent of claims paid each month for the administration of
the fund thereafter through the thirty-first day of December, two thousand twelve. The company's
administrative duties shall include, but not be limited to, receipt of all claims, processing said claims,
providing for the payment of said claims through the state treasurer's office or other applicable state
agency and ensuring, through the selection and assignment of counsel, that claims decisions are
properly defended. The administration of the fund after this seven year period shall be subject to the procedures set forth in article three, chapter five-a of this code.
(d) (c) Employees of self-insured employers who are injured while employed by a self-
insured employer are ineligible for benefits from the West Virginia uninsured employer fund.
§23-2C-15. Mandatory coverage; changing of coverage.
(a) Effective upon termination of the commission, all subscriber policies with the
commission shall novate to the company and all employers otherwise shall purchase workers'
compensation insurance from the company, unless permitted to self-insure their obligations. The
company shall assume responsibility for all New Fund obligations of the subscriber policies which
novate to the company or which are issued thereafter. Each subscriber whose policy novates to the
company shall also have its advanced deposit credited to its account with the company. Employers
purchasing workers' compensation insurance from the company shall have the right to designate a
representative or agent to act on its behalf in any and all matters relevant to coverage and claims as
administered by the company.
(b) Effective the first day of July, two thousand eight, an employer may elect to: (1) Continue
to purchase workers' compensation insurance from the company; (2) purchase workers' compensation
insurance from another private carrier licensed and otherwise authorized to transact workers'
compensation insurance in this state; or (3) self-insure its obligations if it satisfies all requirements
of this code to so self-insure and is permitted to do so: Provided, That all state and local
governmental bodies, including, but not limited to, all counties and municipalities and their
subdivisions and including all boards, colleges, universities and schools, shall continue to purchase
workers' compensation insurance from the company through the thirtieth day of June, two thousand
twelve. The company and other private carriers shall be permitted to sell workers' compensation
insurance through licensed agents in the state. To the extent that a private carrier markets workers'
compensation insurance through a licensed agent, it shall be subject to all applicable provisions of
chapter thirty-three of the code. All employers' must immediately notify the Insurance
Commissioner of its private carrier and any change thereto.
(c) An employer may elect to change its private insurer carrier on or after the first day of July,
two thousand eight, if the employer has:
(1) Given at least thirty days' notice to the Insurance Commissioner of the change of insurer;
and
(2) Furnished evidence satisfactory to the Insurance Commissioner that the payment of
compensation has otherwise been secured.
(d) Each private carrier and employer shall notify the Insurance Commissioner if an employer
has changed his or her insurer or has allowed his or her insurance to lapse within twenty- four hours
or by the end of the next working day, whichever is later, after the insurer has notice of the change
or lapse. Every employer shall post a notice upon its premises in a conspicuous place identifying
its industrial insurer. The notice must include the insurer's name, business address and telephone
number and the name, business address and telephone number of its nearest adjuster in this state.
The employer shall at all times maintain the notice provided for the information of his or her
employees. Release of employer policy information and status by the industrial council and the
Insurance Commissioner shall be governed by section four, article one, chapter twenty-three of this
code. The Insurance Commissioner shall collect and maintain information related to officers,
directors and ten percent or more owners of each carrier's policy holders. The private carrier shall
provide said information to the Insurance Commissioner.
(e) Any rule promulgated by the Workers' Compensation Board of Managers empowering
agencies of this state to revoke or refuse to grant, issue or renew any contract, license, permit,
certificate or other authority to conduct a trade, profession or business to or with any employer
whose account is in default with the commission shall be fully enforceable by the Insurance
Commissioner against the employer in policy default with a private carrier.
(f) Effective the first day of July, two thousand eight January, two thousand nine, the
company may decline to offer coverage to any applicant. Effective the first day of July, two
thousand eight January, two thousand nine, the company and private carriers may cancel a policy or decline to renew a policy upon the issuance of sixty days written advance notice to the policyholder:
Provided, That cancellation of the policy by the carrier for failure of consideration to be paid by the
policyholder is effective after fifteen days advance written notice of cancellation to the policyholder.
§23-2C-16 Administration of Old Fund, Uninsured Employer Fund, Self-Insured Employer
Guaranty Risk Pool, Self-Insured Employer Security Risk Pool, and
Private Carrier Guaranty Fund.
Notwithstanding any provision of this code to the contrary, the company shall be the initial
third party administrator of the workers' compensation Old Fund, uninsured employer fund, Self-
Insured Employer Guaranty Risk Pool, Self-Insured Employer Security Risk Pool, and Private
Carrier Guaranty Fund from inception of the company the termination of the commission and
thereafter for a term of at least six months but not more than three years seven years pursuant to an
agreement to be entered into between the Insurance Commissioner and the company prior to the
termination of the commission. and shall be charged with all authority and responsibilities incidental
to the administration of the old fund which are necessary to accomplish the express provisions and
the intent of this chapter. The company shall be paid a monthly administrative fee of five percent
of claims paid each month for the administration of the old fund through the thirty-first day of
December, two thousand ten, and four percent of claims paid each month for the administration of
the old fund thereafter through the thirty-first day of December, two thousand twelve reasonable fee
for services provided. The company's administrative duties shall may include, but not be limited
to, receipt of all claims, processing said claims, providing for the payment of said claims through the
State Treasurer's office or other applicable state agency, and ensuring, through the selection and
assignment of counsel, that claims decisions are properly defended. The administration of the old
fund said funds thereafter after this seven-year period shall be subject to the procedures set forth in
article three, chapter five-a of this code.
(b) The insurance commissioner may contract or employ counsel to perform legal services
related solely to the collection of moneys due the old fund, including the collection of moneys due the old fund and enforcement of repayment agreements entered into for the collection of moneys due
on or before the thirtieth day of June, two thousand five, in any administrative proceeding and in any
state or federal court.
(c) (b) The Insurance Commissioner shall review claims determined to be payable from the
old fund said funds and may contest the determination pursuant to the provisions of article five of
this chapter.
(d) (c) The Insurance Commissioner may conduct or cause to be conducted an annual audit
to be performed on the old funds said funds.
(d) The Insurance Commissioner may contract or employ counsel to perform legal services
related solely to the collection of moneys due the Old Fund, including the collection of moneys due
the Old Fund and enforcement of repayment agreements entered into for the collection of moneys
due on or before the thirtieth day of June, two thousand five, in any administrative proceeding and
in any state or federal court.
§23-2C-20. Claims administration issues.
(a) A self-insured employer shall continue to comply with rules promulgated by the board
of managers governing the self-administration of its claims and the successor to the commission
shall also comply with the rules promulgated by the board of managers governing the self-
administration of claims.
(b) The successor to the commission, any other private carrier and any employer that self-
insures its risk and self-administers its claims shall exercise all authority and responsibility granted
to the commission in this chapter and provide notices of action taken to effect the purposes of this
chapter to provide benefits to persons who have suffered injuries or diseases covered by this chapter.
The successor to the commission, private carriers and self-insured employers shall at all times be
bound and shall comply fully with all of the provisions of this chapter. Furthermore, all of the
provisions contained in article four of this chapter pertaining to disability and death benefits are
binding on and shall be strictly adhered to by the successor to the commission, private carriers, and the self-insured employer in their administration of claims presented by employees of the self-
insured employer.
(c) Upon termination of the commission, the occupational pneumoconiosis board shall be
transferred to the Insurance Commissioner and shall be administered by the Insurance
Commissioner. The company and other private carriers shall have all authority and responsibility
granted to the self-insured employers in the administration and processing of occupational
pneumoconiosis claims.
(d) Upon termination of the commission, all claims allocation responsibilities shall transfer
from the commission to the Insurance Commissioner.
(e) Upon termination of the commission, the third party administrator of the Old Fund shall
have all administrative and adjudicatory authority vested in the commission in administering old law
liabilities and otherwise processing and deciding old law claims.
ARTICLE 4B. COAL-WORKERS' PNEUMOCONIOSIS FUND.
§23-4B-1. Purpose.
The purpose of this article is to establish a fund to provide benefits to coal miners who are
totally disabled by pneumoconiosis and to eligible dependents of coal miners whose deaths were due
to pneumoconiosis or who were totally disabled from pneumoconiosis at time of their deaths. The
further purpose of this article is to provide a readily available insurer of liability created by Title IV
of the Federal Coal Mine Health and Safety Act of 1969, as amended, for claims incurred under said
Act, including claims which were incurred but not reported, for any claim with a date of last
exposure on or before the thirty-first day of December, two thousand five.
§23-4B-2. Coal-Workers' Pneumoconiosis Fund established.
For the relief of persons who are entitled to receive benefits by virtue of Title IV of the
federal Coal Mine Health and Safety Act of 1969, as amended, for claims incurred under said Act,
including claims which were incurred but not reported, for any claim with a date of last exposure on
or before the thirty-first day of December, two thousand five, there is continued a fund to be known as the Coal-Workers' Pneumoconiosis fund, which fund shall be separate from the workers'
compensation fund. The Coal-Workers' Pneumoconiosis Fund shall consist of premiums and other
funds paid to the fund by employers, subject to the provisions of Title IV of the federal Coal Mine
Health and Safety Act of 1969, as amended, who shall elect to subscribe to the fund to ensure the
payment of benefits required by the act for claims incurred under said Act, including claims which
were incurred but not reported, for any claim with a date of last exposure on or before the thirty-first
day of December, two thousand five.
The state treasurer shall be the custodian of the Coal-Workers' Pneumoconiosis Fund, and
all premiums, deposits or other moneys paid to the fund shall be deposited in the state treasury to the
credit of the Coal-Workers' Pneumoconiosis Fund. Disbursements from the fund shall be made upon
requisition signed by the Executive Director of the Workers' Compensation Commission to those
persons entitled to participate in the fund: Provided, That effective upon the termination of the
Workers' Compensation Commission, disbursement from the Coal-workers' Pneumoconiosis Fund
shall be made upon requisitions signed by the Insurance Commissioner and the Insurance
Commissioner shall collect any unpaid premium and deposit the same in said fund. The West
Virginia state board of investments Investment Management Board may invest any surplus, reserve
or other moneys belonging to the Coal-Workers' Pneumoconiosis Fund in accordance with article
six, chapter twelve of this code.
§23-4B-3. To whom benefits paid.
Only those classes of persons who are entitled to benefits under Title IV of the Federal Coal
Mine Health and Safety Act of 1969, as amended, for claims incurred under said Act, including
claims which were incurred but not reported, for any claim with a date of last exposure on or before
the thirty-first day of December, two thousand five, are eligible to participate in the Coal-Workers'
Pneumoconiosis fund.
§23-4B-4. Who may subscribe.
Only those employers who are subject to the provisions of Title IV of the Federal Coal Mine Health and Safety Act of 1969, as amended, may elect to subscribe to the Coal-Workers'
Pneumoconiosis Fund to insure such liability as may be imposed upon such employers under the
provisions of Title IV of said act. Coverage by the Coal-workers' Pneumoconiosis Fund will be
provided only for claims incurred under said Act, including claims which were incurred but not
reported, for any claim with a date of last exposure on or before the thirty-first day of December, two
thousand five.
§23-4B-5. Payment of benefits.
Upon receipt of an order of compensation issued pursuant to a claim for benefits filed under
the provisions of Title IV of the federal Coal Mine Health and Safety Act of 1969, as amended, for
a claim incurred with a date of last exposure on or before the thirty-first day of December, two
thousand five, the executive director shall disburse the Coal-Workers' Pneumoconiosis Fund in the
amounts and to the persons as directed by the order: Provided, That effective upon the termination
of the Workers' Compensation Commission, disbursement from the Coal-workers' Pneumoconiosis
Fund shall be made upon requisitions signed by the Insurance Commissioner.
§23-4B-7. Administration.
(a) The Coal-Workers' Pneumoconiosis fund shall be administered by the Executive Director
of the Workers' Compensation Commission, who shall employ any employees necessary to discharge
his or her duties and responsibilities under this article. All payments of salaries and expenses of the
employees and all expenses peculiar to the administration of this article shall be made by the state
treasurer from the Coal-Workers' Pneumoconiosis fund upon requisitions signed by the Executive
Director.
(b) Notwithstanding any provision of this code to the contrary, effective from the termination
of the Workers' Compensation Commission, the Coal-Workers' Pneumoconiosis Fund shall be
administered by the Insurance Commissioner, who shall employ any employees and contract with
any parties necessary to discharge his or her duties and responsibilities under this article. All
payments of salaries and expenses of the employees and all expenses peculiar to the administration of this article shall be made by the state treasurer from the Coal-workers' Pneumoconiosis Fund upon
requisitions signed by the Insurance Commissioner: Provided, That the company shall be the
administrator of the coal-workers' pneumoconiosis fund for a term not to exceed three years
following the termination of the Workers' Compensation Commission pursuant to an agreement to
be entered into between the Insurance Commission and the Company prior to the termination of the
Workers' Compensation Commission: Provided further, That any contract entered into by the
Insurance Commission for the administration of the Coal-workers' pneumoconiosis fund thereafter
shall be subject to the procedures set forth in article three chapter five-a of this code.
§23-4B-9. Closure of Coal-Workers Pneumoconiosis Fund and Coverage provided by the
successor of the commission.
Upon the termination of the Commission, all assets, obligations and liabilities resulting from
this article are transferred to the successor of the commission. The state treasurer and all other
departments, agencies and boards shall cooperate to ensure this novation occurs in a expedient and
orderly fashion. Thereafter, the Coal-workers Pneumoconiosis Fund shall close and the company
shall offer insurance to provide for the benefits required by this article until at least the thirtieth day
of June thirty-first day of December, two thousand eight. All claims payment obligations and
indemnity and medical administrative expenses necessary for the administration of claims, actual
and incurred but not reported, for any claim with a date of last exposure on or before the thirty-first
day of December, two thousand five, shall be an obligation of the Coal-Workers' Pneumoconiosis
Fund created in this article and not of the company."
The bill was then ordered to engrossment and third reading.
Delegate Staton moved that the constitutional rule requiring the bill to be fully and distinctly
read on three different days be dispensed with.
On this question, the yeas and nays were taken (Roll No. 866), and there were--yeas 86, nays
4, absent and not voting 10, with the nays and absent and not voting being as follows:
Nays: Frich, Lane, Sobonya and Stevens.
Absent and Not Voting: Boggs, Brown, Ennis, Ferrell, Houston, Hunt, Manchin, Spencer,
Rick Thompson and Wakim.
So, four fifths of the members present having voted in the affirmative, the constitutional rule
was dispensed with.
Having been engrossed, H. B. 501 was then read a third time and put upon its passage.
The question being on the passage of the bill, the yeas and nays were taken (Roll No. 867),
and there were--yeas 90, nays none, absent and not voting 10, with the absent and not voting being
as follows:
Absent and Not Voting: Boggs, Brown, Ennis, Ferrell, Houston, Hunt, Manchin, Spencer,
Rick Thompson and Wakim.
So, a majority of the members present and voting having voted in the affirmative, the Speaker
declared the bill (H. B. 501) passed.
On motion of Delegate Michael, the title of the bill was amended to read as follows:
H. B. 501 -- "A Bill to amend and reenact §23-2C-1, §23-2C-2,§23-2C-4, §23-2C-7, §23-2C-
8,§23-2C-15, §23-2C-16 and §23-2C-20 of the Code of West Virginia, 1931, as amended; to further
amend said code by adding thereto a new section, designated §23-2C-3a; and to amend and reenact
§23-4B-1, §23-4B-2, §23-4B-3, §23-4B-4, §23-4B-5, §23-4B-7 and §23-4B-9 of said code, all
relating to the transition of the workers' compensation commission to the West Virginia Employers'
Mutual Insurance Company generally."
Delegate Staton moved that the bill take effect from its passage.
On this question, the yeas and nays were taken (Roll No. 868), and there were--yeas 90, nays
none, absent and not voting 10, with the absent and not voting being as follows:
Absent and Not Voting: Boggs, Brown, Ennis, Ferrell, Houston, Hunt, Manchin, Spencer,
Rick Thompson and Wakim.
So, two thirds of the members elected to the House of Delegates having voted in the
affirmative, the Speaker declared the bill (H. B. 501) takes effect from its passage.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of
Delegates and request concurrence therein.
H. B. 502, Treatment of Coal-Workers' Pneumoconiosis Fund assets accrued and liabilities
incurred prior to termination of the Workers' Compensation Commission, etc.; on second reading,
coming up in regular order, was, on motion of Delegate Staton, laid upon the table.
H. B. 503, Providing for a maximum amount payable to employees of the Workers'
Compensation Commission who are employed by the West Virginia Employers' Mutual Insurance
Company who irrevocably surrender accrued sick leave; on second reading, coming up in regular
order, was, on motion of Delegate Staton, laid upon the table.
H. B. 504, Providing for the third-party administration of certain funds upon termination of
the Workers' Compensation Commission; on second reading, coming up in regular order, was, on
motion of Delegate Staton, laid upon the table.
At 5:13 p.m., on motion of Delegate Staton, the House of Delegates recessed until 6:23 p.m.,
and reconvened at that time.
Messages from the Senate
A message from the Senate, by
The Clerk of the Senate, announced concurrence in the House of Delegates amendment, with
further amendment, and the passage, as amended, to take effect from passage, of
H. B. 501, West Virginia Employers' Mutual Insurance Company.
On motion of Delegate Staton, the bill was taken up for immediate consideration.
The following Senate amendment to the House of Delegates amendment was reported by the
Clerk:
On page two, by striking out everything after the enacting section and inserting in lieu thereof
the following:
"ARTICLE 2C. EMPLOYERS' MUTUAL INSURANCE COMPANY.
§23-2C-1. Findings and purpose.
(a) The Legislature finds that:
(1) There is a long-term actuarial funding crisis in the state-run monopolistic workers'
compensation system;
(2) Similar short-term and long-term crises have been ongoing during the past two decades;
(3) During the current crisis, employers in West Virginia find it increasingly difficult to
afford the rates charged by the Workers' Compensation Commission for workers' compensation
coverage and that paying said rates adversely impacts employers' ability to compete in a global
economic environment;
(4) The cost of obtaining workers' compensation coverage from the state system may result
in many employers leaving the state;
(5) Employers' access to competitive workers' compensation rates and the resulting economic
development benefit is of utmost importance to the citizens of West Virginia;
(6) A mechanism is needed to provide an enduring solution to this recurring workers'
compensation crisis;
(7) An employers' mutual insurance company or a similar entity has proven to be a successful
mechanism in other states for helping employers secure insurance and for stabilizing the insurance
market;
(8) There is a substantial public interest in creating a method to provide a stable workers'
compensation insurance market in this state;
(9) The state-run workers' compensation program is a substantial actual and potential liability
to the state;
(10) There is substantial public benefit in transferring certain actual and potential future
liability of the state to the private sector and creating a stable self-sufficient entity which will be a
potential source of workers' compensation coverage for employers in this state;
(11) A stable, financially viable insurer in the private sector will aid in providing a continuing source of insurance funds to compensate injured workers; and
(12) Because the public will greatly benefit from the formation of an employers' mutual
insurance company, state efforts to encourage and support the formation of such an entity, including
providing funding for the entity's initial capital, is in the clear public interest.
(b) The purpose of this article is to create a mechanism for the formation of an employers'
mutual insurance company that will provide:
(1) A means for employers to obtain workers' compensation insurance that is reasonably
available and affordable; and
(2) Compensation to employees of mutual policyholders who suffer work place injuries as
defined in this chapter.
(c) The further purpose of this article is to transfer New Fund assets relating to the workers'
compensation insurance business to the company, including a reasonable level of policyholder
surplus, and for the company to assume the New Fund liabilities related to the transferred assets.
It is the intent of this article to provide for the initial capitalization of the company to comply with
and to meet the requirements of section 351 and related sections of the Internal Revenue Code.
§23-2C-2. Definitions.
(a) 'Executive director' means the Executive Director of the West Virginia Workers'
Compensation Commission as provided in section one-b, article one of this chapter.
(b) 'Commission' means the West Virginia Workers' Compensation Commission as provided
by section one, article one of this chapter.
(c) 'Insurance Commissioner' means the Insurance Commissioner of West Virginia as
provided in section one, article two, chapter thirty-three of this code.
(d) 'Company' or 'successor to the commission' means the employers' mutual insurance
company created pursuant to the terms of this article.
(e) 'Policy default' shall mean a policyholder that has failed to comply with the terms of its
workers' compensation insurance policy and is consequently without workers' compensation insurance coverage.
(f) 'Industrial insurance' means insurance which provides all compensation and benefits
required by this chapter.
(g) 'Insurer' includes:
(1) A self-insured employer; and
(2) A private carrier.
(h) 'Industrial Council' means the advisory group established in section five of this article.
(I) 'Mutualization Transition Fund' shall be a fund over which the State Treasurer is
custodian. Moneys transferred or otherwise payable to the Mutualization Transition Fund shall be
deposited in the State Treasury to the credit of the Mutualization Transition Fund. Disbursements
shall be made from the Mutualization Transition Fund upon requisitions signed by the executive
director, and, upon termination of the commission, the Insurance Commissioner, and shall be
reasonably related to the legal, operational, consultative and human resource-related expenses
associated with the establishment of the company and the transferring of personnel from the
commission to the company.
(j) 'New Fund' shall mean a fund owned and operated by the commission and, upon
termination of the commission, the successor organization of the West Virginia Workers'
Compensation Commission and shall consist of those funds transferred to it from the Workers'
Compensation Fund and any other applicable funds. New Fund shall include all moneys due and
payable to the Workers' Compensation Fund for the quarters ending the thirtieth day of September,
two thousand five, and the thirty-first day of December, two thousand five, which have not been
collected by the Workers' Compensation Fund as of the thirty-first day of December, two thousand
five.
(k) 'New Fund liabilities' shall mean all claims payment obligations (indemnity and medical
expenses) for all claims, actual and incurred but not reported, for any claim with a date of injury or
last exposure on or after the first day of July, two thousand five: Provided, That New Fund liabilities shall begin with claims payments becoming due and owing on said claims on or after the first day
of January, two thousand six.
(l) 'Old Fund' shall mean a fund held by the State Treasurer's office consisting of those funds
transferred to it from the Workers' Compensation Fund or other sources and those funds due and
owing the Workers' Compensation Fund as of the thirtieth day of June, two thousand five, that are
thereafter collected. The Old Fund and assets therein shall remain property of the state and shall not
novate or otherwise transfer to the company.
(m) 'Old Fund liabilities' mean all claims payment obligations (indemnity and medical
expenses), related liabilities and appropriate administrative expenses necessary for the administration
of all claims, actual and incurred but not reported, for any claim with a date of injury or last exposure
on or before the thirtieth day of June, two thousand five: Provided, That Old Fund liabilities shall
include all claims payments for any claim, regardless of date of injury or last exposure, through the
thirty-first day of December, two thousand five: Provided, however, That Old Fund liabilities shall
include all claims with dates of injuries or last exposure prior to the first day of July, two thousand
four, for bankrupt self-insured employers that had defaulted on their claims obligations which have
been recognized by the commission in its actuarially determined liability number as of the thirtieth
day of June, two thousand five.
(n) 'Private carrier' means any insurer or the legal representative of an insurer authorized by
the Insurance Commissioner to provide workers' compensation insurance pursuant to this chapter
and which maintains an office in the state. The term does not include a self-insured employer or
private employers but shall include any successor to the commission.
(o) 'Uninsured Employer Fund' means a fund held by the State Treasurer's office consisting
of those funds transferred to it from the Workers' Compensation Fund and any other source.
Disbursements from the Uninsured Employer Fund shall be upon requisitions signed by the
Insurance Commissioner and the administrator of the fund, and as otherwise set forth in an exempt
legislative rule promulgated by the workers' compensation board of managers.
(p) 'Self-Insured Employer Guaranty Risk Pool' shall be a fund held by the State Treasurer's
office consisting of those funds transferred to it from the guaranty pool created pursuant to 85 CSR
§19 (2004) and any future funds collected through continued administration of that exempt
legislative rule as administered by the Insurance Commissioner. Disbursements shall be made from
the Self-Insured Employer Guaranty Risk Pool upon requisitions signed by the Insurance
Commissioner and the administrator of the fund. The obligations of the fund shall be as provided
in 85 CSR §19 (2004). The company shall administer the self-insured employer guaranty risk pool
for a term and administrative fee as provided in the administration of the old fund.
(q) 'Self-Insured Employer Security Risk Pool' shall be a fund held by the state's Treasurer
consisting of those funds paid into it through the Insurance Commissioner's administration of 85
CSR §19 (2004). Disbursement from said fund shall be made from the Self-Insured Employer
Security Risk Pool upon requisitions signed by the Insurance Commissioner and the administrator
of the fund. The obligations of the fund shall be as provided in 85 CSR §19: Provided, That said
liabilities shall be limited to those self-insured employers who default on their claims obligations
after the termination of the commission. The company shall administer the self-insured employer
security risk pool for a term and administrative fee as provided in the administration of the old fund.
(r) 'Private Carrier Guaranty Fund' shall be a fund held by the State Treasurer's office
consisting of funds deposited pursuant to this article. Disbursements shall be made from the Private
Carrier Guaranty Fund upon requisitions signed by the Insurance Commissioner and the
administrator of the fund. The obligations of the fund shall be as provided in this article. The
company shall administer the private carrier guaranty fund for a term and administrative fee as
provided in the administration of the old fund.
(s) 'Assigned Risk Fund' shall be a fund held by the State Treasurer's office consisting of
funds deposited pursuant to this article. Disbursements shall be made from the Assigned Risk Fund
upon requisitions signed by the Insurance Commissioner. The obligations of the fund shall be as
provided in this article.
(t) 'Comprehensive financial plan' shall mean the plan compiled by the director for
acceptance by the Insurance Commissioner identifying and forecasting cash flows, funding sources,
debt terms and structures and scheduled amortization and permanent resolution of all Old Fund
liabilities. The comprehensive financial plan shall provide for the retirement of the revenue bonds
authorized by article two-d of this chapter and all realized and potential claims against the Old Fund
shall be fully reserved. The comprehensive financial plan may include any other information the
Insurance Commissioner may require as a basis for managing the post-transition fiscal soundness
of the Old Fund.
§23-2C-3a. Employers' mutual insurance company - additional provisions enacted in
November 2005.
(a) Notwithstanding any other provisions of this article to the contrary, the employers' mutual
insurance company:
(1) May not be dissolved.
(2) May not transact such other kinds of property and casualty insurance for which the
company is otherwise qualified under the provisions of this code prior to the first day of January, two
thousand nine.
(b) As soon as practical following the effective date of this section, the company established
pursuant to the provisions of this article shall, through a vote of a majority of its provisional board,
file its amended articles of incorporation and amended bylaws with the Insurance Commissioner and
apply for a license with the Insurance Commissioner to transact insurance in this state.
Notwithstanding any other provision of this code, the Insurance Commissioner shall act on the
documents within fifteen days of the filing by the company.
(c) Notwithstanding any provision of subsection (g), section three of this article to the
contrary, in the event the Governor certifies to the Legislature that revenue bonds issued pursuant
to article two-d of this chapter have been retired and that the unfunded liability of the Old Fund has
been paid or has been provided for in its entirety, whichever occurs last, then:
(1) The premiums surcharge imposed by subdivision (2), subsection (f), section three of this
article shall not sunset and shall continue to be remitted in accordance with the provisions of said
subsection; and
(2) The premiums surcharge imposed by subdivision (3), subsection (f), section three of this
article shall sunset and not be collectible with respect to workers' compensation insurance premiums
paid when the policy is renewed on or after the first day of the month following the month in which
the Governor makes the certification.
(d) Except as may otherwise be provided in this subsection, all provisions of section three
of this article shall remain in full force and effect.
§23-2C-4. Governance and organization.
(a) (1) The commission shall implement the initial formation and organization of the
company as provided by this article.
(2) From the inception of the company, until the first day of January, two thousand six, the
company shall be governed by a provisional board of directors consisting of the three persons on the
executive committee of the workers' compensation board of managers and four members of the
Legislature. Two members of the West Virginia Senate and two members of the West Virginia
House of Delegates shall serve as advisory nonvoting members of the board. The Governor shall
appoint the legislative members to the board. No more than three of the legislative members shall
be of the same political party. The provisional board shall have the authority to function as necessary
to establish the company and cause it to become operational, including the right to contract on behalf
of the company. Each voting board member shall receive compensation of not more than three
hundred fifty dollars per day and actual and necessary expenses for each day during which he or she
is required to and does attend a meeting of the board.
(3) The provisional board shall develop procedures for the nomination of the board of
directors that will succeed the provisional board on the first day of January, two thousand six, and
for the conduct of the election, to be held no later than the first day of November, two thousand five, and shall give notice of the election to the current subscribers to the workers' compensation fund.
These procedures shall be exempt from the provisions of article three, chapter twenty-nine-a of this
code.
(4) (3) Except as limited by this section and applicable insurance rules and statutes, the
company may: (1) On its own; (2) through the formation or acquisition of subsidiaries; or (3)
through a joint enterprise, offer:
(A) Workers' compensation insurance in a state other than West Virginia to the extent it also
provides workers' compensation or occupational disease insurance coverage to the employer pursuant
to this chapter;
(B) Other workers' compensation products and services and related products and services in
West Virginia or other states; and
(C) Other property and casualty insurance in West Virginia and other states on or after the
first day of January, two thousand nine.
(b) Any election process for the board of directors developed, implemented and overseen by
the company's provisional board prior to the effective date of the amendments to this section enacted
during the fifth extraordinary session of the Legislature in two thousand five is nullified and the
designation of the company's initial board of directors shall be governed by the following: Effective
the first day of January, two thousand six, the company shall be governed by a board of directors
consisting of seven directors, as follows:
(1) Three owners or officers of an entity that has purchased or will immediately upon
termination of the commission purchase and maintain an active workers' compensation insurance
policy from the company. At least one shall be a certified public accountant with financial
management or pension or insurance audit expertise and at least one shall be an attorney with
financial management experience. These three directors shall be appointed by the Governor.
(2) Two directors who have substantial experience as an officer or employee of a company
in the insurance industry, one of whom is from a company with less than fifty employees;. These two directors shall be appointed by the Governor.
(3) One director with general knowledge and experience in business management who is an
officer and employee of the company and is responsible for the daily management of the company;
and.
(4) The chief executive officer of the company.
(c) The directors and officers of the company are to be chosen in accordance with the articles
of incorporation and bylaws of the company. The initial board of directors selected appointed by the
Governor shall serve for the following terms: (1) Two for four-year terms; (2) two for three-year
terms; (3) two for two-year terms; and (4) one for a one-year term. Thereafter, the directors shall
serve staggered terms of four years. No director chosen may serve more than two consecutive terms,
except for the chief executive officer of the company. from the termination of the commission
through the thirty-first day of December, two thousand eight, and may be not removed from that
position except for cause.
__(d) Any board vacancy that occurs from the termination of the commission through the thirty-
first day of December, two thousand eight, shall be filled through appointment by the Governor for
the unexpired term.
__(e) Upon expiration of the initial terms or upon a vacancy of the board following the thirty-
first day of December, two thousand eight, the directors of the company are to be chosen in
accordance with the articles of incorporation and bylaws of the company, as amended, which shall
provide for the policyholders to nominate and elect future directors. Furthermore, owners, directors
or employees of employers otherwise licensed to write workers' compensation insurance in this state
or licensed or otherwise authorized to act as a third-party administrator shall not be eligible to be
nominated, appointed, elected or serve on the company's board of directors.
(d) (f) The Executive Director shall prepare and file amended articles of incorporation and
bylaws in accordance with the provisions of this article and the provisions of chapters thirty-one and
thirty-three of this code.
(g) It is the intent of this legislation to create an entity exempt from federal taxation, as
provided for in Section 501(c)(27)(B) of the Internal Revenue Code, for as long as the company
meets the federal qualification requirements of Section 501(c)(27)(B) of the Internal Revenue Code.
§23-2C-7. Custody, investment and disbursement of funds.
(a) The State Treasurer shall be the custodian of the workers' compensation Old Fund,
workers' compensation Uninsured Employer Fund, the Self-Insured Employer Guaranty Risk Pool,
the Self-Insured Employer Security Risk Pool, the Private Carrier Guaranty Fund and the Assigned
Risk Fund and moneys payable to each of these funds shall be deposited in the State Treasury to the
credit of the funds. Each fund shall be a separate and distinct fund upon the books and records of
the Auditor and Treasurer. Disbursements from these funds shall be made upon requisitions signed
by the executive director and, effective upon termination of the commission, the administrator of the
funds and the Insurance Commissioner. The workers' compensation Old Fund, the workers'
compensation Uninsured Employer Fund, the Self-Insured Employer Guaranty Risk Pool, Self-
Insured Employer Security Risk Pool, the Private Carrier Guaranty Fund and the Assigned Risk Fund
are participant plans as defined in section two, article six, chapter twelve of this code and are subject
to the provisions of section nine-a of said article. The funds may be invested by the Investment
Management Board in accordance with said article.
(b) If the Governor issues the proclamation set forth in this article, then, effective upon
termination of the commission, all remaining assets and funds contained in the Workers'
Compensation Fund which are payable to the New Fund shall be so disbursed and paid to the
company by communication of the executive director to the State Treasurer or other appropriate state
official prior to the termination of the commission.
§23-2C-8. West Virginia Uninsured Employer Fund.
(a) The West Virginia Uninsured Employer Fund shall be governed by the following:
(1) All money and securities in the fund must be held by the State Treasurer as custodian
thereof to be used solely as provided in this article.
(2) The State Treasurer may disburse money from the fund only upon written requisition of
the Insurance Commissioner and administrator of the fund.
(3) The Insurance Commissioner shall assess each private carrier and all self-insured
employers an amount to be deposited in the fund. The assessment may be collected by each private
carrier from its policy holders in the form of a policy surcharge. To establish the amount of the
assessment, the Insurance Commissioner shall determine the amount of money necessary to maintain
an appropriate balance in the fund for each fiscal year and shall allocate a portion of that amount to
be payable by private carriers, a portion to be payable by self-insured employers and a portion to be
paid by any other appropriate group. After allocating the amounts payable, the Insurance
Commissioner shall apply an assessment rate to:
(A) Private carriers that reflects the relative hazard of the employments covered by the private
carriers, results in an equitable distribution of costs among the private carriers and is based upon
expected annual premiums to be received;
(B) Self-insured employers that results in an equitable distribution of costs among the self-
insured employers and is based upon expected annual expenditures for claims; and
(C) Any other categories of payees that results in an equitable distribution of costs among
them and is based upon expected annual expenditures for claims or premium to be received.
(4) The workers' compensation board of managers may adopt rules for the establishment and
administration of the assessment methodologies, rates, payments and any penalties that the workers'
compensation board of managers determines are necessary to carry out the provisions of this section.
(b) Payments from the fund shall be governed by the following:
(1) Except as otherwise provided in this subsection, an injured worker of any employer
required to be covered under this chapter who has failed to obtain coverage may receive
compensation from the uninsured employers' fund if:
(A) He or she meets all jurisdictional and entitlement provisions of this chapter;
(B) He or she files a claim with the Insurance Commissioner; and
(C) He or she makes an irrevocable assignment to the Insurance Commissioner a right to be
subrogated to the rights of the injured employee.
(2) If the Insurance Commissioner receives a claim, it shall immediately notify the employer
of the claim. For the purposes of this section, the employer has the burden of proving that it
provided mandatory workers' compensation insurance coverage for the employee or that it was not
required to maintain workers' compensation insurance for the employee. If the employer meets this
burden, benefits shall not be paid from the fund.
(3) Any employer who has failed to provide mandatory coverage required by the provisions
of this chapter is liable for all payments made on its behalf, including any benefits, administrative
costs and attorney's fees paid from the fund or incurred by the Insurance Commissioner.
(4) The Insurance Commissioner:
(A) May recover from the employer the payments made by it, any accrued interest and
attorney fees and costs by bringing a civil action in a court of competent jurisdiction.
(B) May enter into a contract with any person, including the third-party administrator of the
Uninsured Employer Fund, to assist in the collection of any liability of an uninsured employer.
(C) In lieu of a civil action, may enter into an agreement or settlement regarding the
collection of any liability of an uninsured employer.
(5) The Insurance Commissioner shall:
(A) Determine whether the employer was insured within five days after receiving notice of
the claim from the employee.
(B) Assign the claim to the third-party administrator of the fund for administration and, if
appropriate, payment of compensation.
(6) Upon determining whether the claim is accepted or denied, the fund third-party
administrator shall notify the injured employee and the named employer of its determination.
(7) Any party aggrieved by a determination made by the Insurance Commissioner or the fund
third-party administrator regarding the claims decisions made pursuant to this section may appeal that determination by filing a protest with the office of judges as set forth in article five of this
chapter.
(8) An uninsured employer is liable for the interest on any amount paid on his or her claims
from the fund. The interest must be calculated at a rate set in accordance with the provisions of
section thirteen, article two of this chapter, compounded monthly, from the date the claim is paid
from the account until payment is received by the Insurance Commissioner or fund third-party
administrator from the employer.
(9) Attorney's fees recoverable by the Insurance Commissioner or third-party administrator
pursuant to this section must be paid at the usual and customary rate for that attorney.
(10) In addition to any other liabilities provided in this section, the Insurance Commissioner
or the fund third-party administrator may impose an administrative fine of not more than ten
thousand dollars against an employer if the employer fails to provide mandatory coverage required
by this chapter. All fines and other moneys collected pursuant to this section shall be deposited into
the Uninsured Employer Fund.
(c) The company shall be the administrator of the uninsured employers' fund from the fund's
inception and thereafter for seven years and shall be charged with all authority and responsibilities
incidental to the administration of the fund which are necessary to accomplish the express provisions
and the intent of this chapter. The company shall be paid a monthly administrative fee of five percent
of claims paid each month for the administration of the fund through the thirty-first day of
December, two thousand ten, and four percent of claims paid each month for the administration of
the fund thereafter through the thirty-first day of December, two thousand twelve. The company's
administrative duties shall include, but not be limited to, receipt of all claims, processing said claims,
providing for the payment of said claims through the state treasurer's office or other applicable state
agency and ensuring, through the selection and assignment of counsel, that claims decisions are
properly defended. The administration of the fund after this seven year period shall be subject to the
procedures set forth in article three, chapter five-a of this code.
(d) (c) Employees of self-insured employers who are injured while employed by a self-
insured employer are ineligible for benefits from the West Virginia Uninsured Employer Fund.
§23-2C-15. Mandatory coverage; changing of coverage.
(a) Effective upon termination of the commission, all subscriber policies with the
commission shall novate to the company and all employers otherwise shall purchase workers'
compensation insurance from the company unless permitted to self-insure their obligations. The
company shall assume responsibility for all New Fund obligations of the subscriber policies which
novate to the company or which are issued thereafter. Each subscriber whose policy novates to the
company shall also have its advanced deposit credited to its account with the company. Employers
purchasing workers' compensation insurance from the company shall have the right to designate a
representative or agent to act on its behalf in any and all matters relevant to coverage and claims as
administered by the company.
(b) Effective the first day of July, two thousand eight, an employer may elect to: (1) Continue
to purchase workers' compensation insurance from the company; (2) purchase workers' compensation
insurance from another private carrier licensed and otherwise authorized to transact workers'
compensation insurance in this state; or (3) self-insure its obligations if it satisfies all requirements
of this code to so self-insure and is permitted to do so: Provided, That all state and local
governmental bodies, including, but not limited to, all counties and municipalities and their
subdivisions and including all boards, colleges, universities and schools, shall continue to purchase
workers' compensation insurance from the company through the thirtieth day of June, two thousand
twelve. The company and other private carriers shall be permitted to sell workers' compensation
insurance through licensed agents in the state. To the extent that a private carrier markets workers'
compensation insurance through a licensed agent, it shall be subject to all applicable provisions of
chapter thirty-three of this code. All employers' must immediately notify the Insurance
Commissioner of its private carrier and any change thereto.
(c) An employer may elect to change its private insurer carrier on or after the first day of July, two thousand eight, if the employer has:
(1) Given at least thirty days' notice to the Insurance Commissioner of the change of insurer;
and
(2) Furnished evidence satisfactory to the Insurance Commissioner that the payment of
compensation has otherwise been secured.
(d) Each private carrier and employer shall notify the Insurance Commissioner if an employer
has changed his or her insurer or has allowed his or her insurance to lapse within twenty- four hours
or by the end of the next working day, whichever is later, after the insurer has notice of the change
or lapse. Every employer shall post a notice upon its premises in a conspicuous place identifying
its industrial insurer. The notice must include the insurer's name, business address and telephone
number and the name, business address and telephone number of its nearest adjuster in this state.
The employer shall at all times maintain the notice provided for the information of his or her
employees. Release of employer policy information and status by the industrial council and the
Insurance Commissioner shall be governed by section four, article one of this chapter. The Insurance
Commissioner shall collect and maintain information related to officers, directors and ten percent
or more owners of each carrier's policy holders. The private carrier shall provide said information
to the Insurance Commissioner.
(e) Any rule promulgated by the workers' compensation board of managers empowering
agencies of this state to revoke or refuse to grant, issue or renew any contract, license, permit,
certificate or other authority to conduct a trade, profession or business to or with any employer
whose account is in default with the commission shall be fully enforceable by the Insurance
Commissioner against the employer in policy default with a private carrier.
(f) Effective the first day of July, two thousand eight January, two thousand nine, the
company may decline to offer coverage to any applicant. Effective the first day of July, two
thousand eight January, two thousand nine, the company and private carriers may cancel a policy or
decline to renew a policy upon the issuance of sixty days' written advance notice to the policyholder: Provided, That cancellation of the policy by the carrier for failure of consideration to be paid by the
policyholder is effective after fifteen days advance written notice of cancellation to the policyholder.
§23-2C-16. Administration of Old Fund, Uninsured Employer Fund, Self-Insured Employer
Guaranty Risk Pool, Self-Insured Employer Security Risk Pool and Private Carrier
Guaranty Fund.
(a) Notwithstanding any provision of this code to the contrary, the company shall be the
initial third-party administrator of the workers' compensation Old Fund, Uninsured Employer Fund,
Self-Insured Employer Guaranty Risk Pool, Self-Insured Employer Security Risk Pool and Private
Carrier Guaranty Fund from inception of the company the termination of the commission and
thereafter for a term of at least six months but not more than three years seven years pursuant to an
agreement to be entered into between the Insurance Commissioner and the company prior to the
termination of the commission. and shall be charged with all authority and responsibilities incidental
to the administration of the old fund which are necessary to accomplish the express provisions and
the intent of this chapter. The company shall be paid a monthly administrative fee of five percent
of claims paid each month for the administration of the old fund through the thirty-first day of
December, two thousand ten, and four percent of claims paid each month for the administration of
the old fund thereafter through the thirty-first day of December, two thousand twelve reasonable fee
for services provided. The company's administrative duties shall may include, but not be limited
to, receipt of all claims, processing said claims, providing for the payment of said claims through the
State Treasurer's office or other applicable state agency and ensuring, through the selection and
assignment of counsel, that claims decisions are properly defended. The administration of the old
fund said funds thereafter after this seven-year period shall be subject to the procedures set forth in
article three, chapter five-a of this code.
(b) The insurance commissioner may contract or employ counsel to perform legal services
related solely to the collection of moneys due the old fund, including the collection of moneys due
the old fund and enforcement of repayment agreements entered into for the collection of moneys due on or before the thirtieth day of June, two thousand five, in any administrative proceeding and in any
state or federal court.
(c) (b) The Insurance Commissioner shall review claims determined to be payable from the
old fund said funds and may contest the determination pursuant to the provisions of article five of
this chapter.
(d) (c) The Insurance Commissioner may conduct or cause to be conducted an annual audit
to be performed on the old funds said funds.
(d) The Insurance Commissioner may contract or employ counsel to perform legal services
related solely to the collection of moneys due the Old Fund, including the collection of moneys due
the Old Fund and enforcement of repayment agreements entered into for the collection of moneys
due on or before the thirtieth day of June, two thousand five, in any administrative proceeding and
in any state or federal court.
§23-2C-20. Claims administration issues.
(a) A self-insured employer shall continue to comply with rules promulgated by the board
of managers governing the self-administration of its claims and the successor to the commission
shall also comply with the rules promulgated by the board of managers governing the self-
administration of claims.
(b) The successor to the commission, any other private carrier and any employer that self-
insures its risk and self-administers its claims shall exercise all authority and responsibility granted
to the commission in this chapter and provide notices of action taken to effect the purposes of this
chapter to provide benefits to persons who have suffered injuries or diseases covered by this chapter.
The successor to the commission, private carriers and self-insured employers shall at all times be
bound and shall comply fully with all of the provisions of this chapter. Furthermore, all of the
provisions contained in article four of this chapter pertaining to disability and death benefits are
binding on and shall be strictly adhered to by the successor to the commission, private carriers and
the self-insured employer in their administration of claims presented by employees of the self-insured employer.
(c) Upon termination of the commission, the Occupational Pneumoconiosis Board shall be
transferred to the Insurance Commissioner and shall be administered by the Insurance
Commissioner. The company and other private carriers shall have all authority and responsibility
granted to the self-insured employers in the administration and processing of occupational
pneumoconiosis claims.
(d) Upon termination of the commission, all claims allocation responsibilities shall transfer
from the commission to the Insurance Commissioner.
(e) Upon termination of the commission, the third-party administrator of the Old Fund shall
have all administrative and adjudicatory authority vested in the commission in administering old law
liabilities and otherwise processing and deciding old law claims.
ARTICLE 4B. COAL-WORKERS' PNEUMOCONIOSIS FUND.
§23-4B-1. Purpose.
The purpose of this article is to establish a fund to provide benefits to coal miners who are
totally disabled by pneumoconiosis and to eligible dependents of coal miners whose deaths were due
to pneumoconiosis or who were totally disabled from pneumoconiosis at time of their deaths. The
further purpose of this article is to provide a readily available insurer of liability created by Title IV
of the federal Coal Mine Health and Safety Act of 1969, as amended, for claims incurred under said
Act, including all claims where the date of last exposure is on or before the thirty-first day of
December, two thousand five, without regard to the date the claim is filed.
§23-4B-2. Coal-Workers' Pneumoconiosis Fund established.
For the relief of persons who are entitled to receive benefits by virtue of Title IV of the
federal Coal Mine Health and Safety Act of 1969, as amended, for claims incurred under said Act,
including all claims where the date of last exposure is on or before the thirty-first day of December,
two thousand five, without regard to the date the claim is filed, there is continued a fund to be known
as the Coal-Workers' Pneumoconiosis Fund, which fund shall be separate from the Workers' Compensation Fund. The Coal-Workers' Pneumoconiosis Fund shall consist of premiums and other
funds paid to the fund by employers, subject to the provisions of Title IV of the federal Coal Mine
Health and Safety Act of 1969, as amended, who shall elect to subscribe to the fund to ensure the
payment of benefits required by the Act for claims incurred under said Act, including all claims
where the date of last exposure is on or before the thirty-first day of December, two thousand five,
without regard to the date the claim is filed.
The State Treasurer shall be the custodian of the Coal-Workers' Pneumoconiosis Fund and
all premiums, deposits or other moneys paid to the fund shall be deposited in the State Treasury to
the credit of the Coal-Workers' Pneumoconiosis Fund. Disbursements from the fund shall be made
upon requisition signed by the Executive Director of the Workers' Compensation Commission to
those persons entitled to participate in the fund: Provided, That effective upon the termination of
the Workers' Compensation Commission, disbursement from the Coal-Workers' Pneumoconiosis
Fund shall be made upon requisitions signed by the Insurance Commissioner. The Insurance
Commissioner shall collect any unpaid premium and deposit the same in said fund. The West
Virginia state board of investments Investment Management Board may invest any surplus, reserve
or other moneys belonging to the Coal-Workers' Pneumoconiosis Fund in accordance with article
six, chapter twelve of this code.
§23-4B-3. To whom benefits paid.
Only those classes of persons who are entitled to benefits under Title IV of the federal Coal
Mine Health and Safety Act of 1969, as amended, for claims incurred under said Act, including all
claims where the date of last exposure is on or before the thirty-first day of December, two thousand
five, without regard to the date the claim is filed, are eligible to participate in the Coal-Workers'
Pneumoconiosis Fund.
§23-4B-4. Who may subscribe.
Only those employers who are subject to the provisions of Title IV of the federal Coal Mine
Health and Safety Act of 1969, as amended, may elect to subscribe to the Coal-Workers' Pneumoconiosis Fund to insure such the liability as may be imposed upon such employers under the
provisions of Title IV of said the Act. Coverage by the Coal-Workers' Pneumoconiosis Fund will
be provided only for claims incurred under the Act, including all claims where the date of last
exposure is on or before the thirty-first day of December, two thousand five, without regard to the
date the claim is filed.
§ 23-4B-5. Payment of benefits.
Upon receipt of an order of compensation issued pursuant to a claim for benefits filed under
the provisions of Title IV of the federal Coal Mine Health and Safety Act of 1969, as amended, for
claims incurred under said Act, including all claims where the date of last exposure is on or before
the thirty-first day of December, two thousand five, without regard to the date the claim is filed, the
executive director shall disburse the Coal-Workers' Pneumoconiosis Fund in the amounts and to the
persons as directed by the order: Provided, That effective upon the termination of the Workers'
Compensation Commission, disbursement from the Coal-workers' Pneumoconiosis Fund shall be
made upon requisitions signed by the Insurance Commissioner.
§23-4B-7. Administration.
(a) The Coal-Workers' Pneumoconiosis Fund shall be administered by the Executive Director
of the Workers' Compensation Commission, who shall employ any employees necessary to discharge
his or her duties and responsibilities under this article. All payments of salaries and expenses of the
employees and all expenses peculiar to the administration of this article shall be made by the State
Treasurer from the Coal-Workers' Pneumoconiosis Fund upon requisitions signed by the executive
director.
(b) Notwithstanding any provision of this code to the contrary, effective from the termination
of the Workers' Compensation Commission, the Coal-Workers' Pneumoconiosis Fund shall be
administered by the Insurance Commissioner, who shall employ any employees and contract with
any parties necessary to discharge his or her duties and responsibilities under this article. All
payments of salaries and expenses of the employees and all expenses peculiar to the administration of this article shall be made by the State Treasurer from the Coal-Workers' Pneumoconiosis Fund
upon requisitions signed by the Insurance Commissioner: Provided, That the employers' mutual
insurance company established pursuant to article two-c of this chapter shall be the administrator of
the Coal-Workers' Pneumoconiosis Fund for a term not to exceed three years following the
termination of the Workers' Compensation Commission pursuant to an agreement to be entered into
between the Insurance Commissioner and the Company prior to the termination of the Workers'
Compensation Commission. The Company's administrative duties may include, but not be limited
to, receipt of all claims, processing said claims, providing for the payment of said claims through the
State Treasurer's office and ensuring, through the selection and assignment of counsel, that claims
decisions are properly defended. Any contract entered into by the Insurance Commissioner for the
administration of the Coal-Workers' Pneumoconiosis Fund thereafter shall be subject to the
procedures set forth in article three, chapter five-a of this code.
§23-4B-9. Closure of Coal-Workers' Pneumoconiosis Fund and coverage provided by the
successor of the commission.
Upon the termination of the commission, all assets, obligations and liabilities resulting from
this article are transferred to the successor of the commission. The state treasurer and all other
departments, agencies and boards shall cooperate to ensure this novation occurs in a expedient and
orderly fashion. Thereafter, the Coal-Workers' Pneumoconiosis Fund shall close and the company
shall offer insurance to provide for the benefits required by this article until at least the thirtieth day
of June thirty-first day of December, two thousand eight. All claims payment obligations, including
indemnity benefits, medical benefits, administrative and all other expenses necessary for the
administration and defense of claims, where the date of last exposure is on or before the thirty-first
day of December, two thousand five, without regard to the date the claim is filed, shall be an
obligation of the Coal-Workers' Pneumonoconiosis Fund created in this article and not of the
company."
On motion of Delegate Staton, the House of Delegates concurred in the Senate amendment.
The question being on passage of the bill, the yeas and nays were taken (Roll No. 869), and
there were--yeas 90, nays none, absent and not voting 10, with the absent and not voting being as
follows:
Absent and Not Voting: Blair, Brown, Ennis, Ferrell, Houston, Hunt, Manchin, Spencer,
Rick Thompson and Wakim.
Delegate Staton moved that the bill take effect from its passage.
On this question, the yeas and nays were taken (Roll No. 870), and there were--yeas 90, nays
none, absent and not voting 10, with the absent and not voting being as follows:
Absent and Not Voting: Blair, Brown, Ennis, Ferrell, Houston, Hunt, Manchin, Spencer,
Rick Thompson and Wakim.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of
Delegates.
Leaves of Absence
At the request of Delegate Staton, and by unanimous consent, leaves of absence for the day
were granted Delegates Boggs, Brown, Ennis, Ferrell, Houston, Hunt, Manchin, Spencer, Rick
Thompson and Wakim.
At the request of Delegate Staton, and by unanimous consent, permission was granted the
Joint Committee on Enrolled Bills, after it had examined, found truly enrolled and presented to His
Excellency, the Governor, for his action, bills passed but not presented to him prior to adjournment
of this session of the Legislature, to file its report with the Clerk and that such reports be included
in the final Journal of this session, and that communications from His Excellency, the Governor, as
to his action on bills after adjournment of the session, also be included in the Journal.
In accordance with the foregoing unanimous consent request, Delegate Browning filed the
report of the Joint Committee on Enrolled Bills as follows:
November 16, 2005
(H. B. 501), West Virginia Employer's Mutual Insurance Company.
On motion of Delegate Staton, the Speaker was authorized to appoint a committee of three
to notify the Senate that the House of Delegates had completed the business of this the Fifth
Extraordinary Session of the Seventy-seventh Legislature and was ready to adjourn sine die.
Whereupon,
The Speaker appointed as members of such committee the following:
Delegates Varner, Pino and Staton.
On motion of Delegate Staton, the Speaker was authorized to appoint a committee of three
on the part of the House of Delegates, to join with a similar committee of the Senate, to inform His
Excellency, the Governor, that the Legislature was ready to adjourn sine die.
Whereupon,
The Speaker appointed as members of such committee the following:
Delegates Varner, Pino and Staton.
Messages from the Senate
A message from the Senate, by
Senators Jenkins, Sharpe and Guills, announced that the Senate had completed the business
of this Fifth Extraordinary Session and was ready to adjourn sine die.
Delegate Varner, from the committee to notify the Senate of impending sine die adjournment,
announced that the committee had performed that duty.
Delegate Varner, from the committee to inform His Excellency, the Governor, that the
Legislature had completed the business of this Fifth Extraordinary Session and was ready to adjourn
sine die, announced the performance of that duty.
Message from the Executive
Subsequent to the adjournment of the session, communication were received from His
Excellency, the Governor, advising that on November 25, 2005, he approved H. B. 501.
There being no further business to come before the House, at 6:45 p.m., on motion of
Delegate Staton, the House adjourned sine die.