Committee Substitute
House Bill 2467 History
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COMMITTEE SUBSTITUTE
FOR
H. B. 2467
(By Delegates Walters, Kiss, Petersen, Gallagher,
Rutledge, Michael and Facemyer)
(Originating in the House Committee on Finance)
[March 25, 1993]
A BILL to amend chapter thirty-three of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
by adding thereto a new article, designated article twenty-
five-b, relating to authorizing nonprofit corporations to
provide federal insurance subsidy for children's health
funds; providing definitions; powers of corporation;
administration; civil penalties; voucher applications;
duties and responsibilities of corporation; training
sessions by the department of health and human resources;
annual reports and audits; tax exempt status; and limiting
personal liability of members of corporation.
Be it enacted by the Legislature of West Virginia:
That chapter thirty-three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article twenty-five-b,
to read as follows:
ARTICLE 25B. FEDERAL INSURANCE SUBSIDY FOR CHILDREN'S HEALTH.
§33-25B-1. Definitions.
The following words, as used in this article, have the
meanings set forth below, unless the context clearly requires
otherwise:
(a) "Applicant aide" means an individual licensed by the
state to care for the physical or emotional needs of children or
an employee authorized by his employer where the employer is an
institution licensed by the state to care for the physical or
emotional needs of children and who has received an applicant
aide certificate. Individuals include, but are not limited to,
licensed teachers, child care workers, social workers, guidance
counselors, psychologists, nurses and physicians. Licensed
institutions include, but are not limited to, hospitals, schools,
local human services offices, child care centers and medical
clinics;
(b) "Approved providers" means any accident and health
insurer licensed by the state or any health services organization
licensed by the state or any other entity approved by the
insurance commissioner for provision of health care coverage for
children;
(c) "Corporation" means a nonprofit corporation organized
under the laws of West Virginia which has undertaken to implement
a Federal insurance subsidy for children's health insurance
created by this article; and
(d) "Insurance Subsidy Fund" or "Fund" means a fund or
account established by the corporation for the deposit of monies
to implement the insurance subsidy program.
§33-25B-2. Purpose.
The purpose of this article is to:
(a) Assist, promote, encourage, develop and advance the
knowledge of lower to moderate income families with dependent
children of the earned income credit available for money spent on
health insurance;
(b) Cooperate and act in conjunction with other
organizations, public and private, the objects of which are the
promotion and education of lower to moderate income families with
dependent children of the earned income credit available for
money spent on health insurance;
(c) Establish a system of qualified applicant aides who
shall be trained by the department of health and human services
and, who, for a modest dollar incentive, will on a volunteer
basis make knowledge of this program available to the targeted
families; and
(d) Establish a mechanism by which to provide counseling and
assistance to families and aid them in filing for the insurance
voucher, selecting an appropriate health insurance policy and
completing the required federal income tax return.
§33-25B-3. General powers.
In order for a nonprofit corporation to participate in the
program provided pursuant to this article, the nonprofit
corporation must be organized and incorporated as a nonprofit
corporation pursuant to the provisions of article one, section
thirty-one of this code. The nonprofit corporation, in addition
to all other lawful powers, shall have the power to provide
counseling services to West Virginia families on the purchase of
federally subsidized health insurance and to accept gifts,
grants, or loans from and enter into contracts or othertransactions with any federal or state agency, any municipality,
any private organization or any other source as may be authorized
by law.
§33-25B-4. Voucher applications; contents.
A guardian or applicant aide may file with a nonprofit
corporation, organized for the purposes of this article, a sworn
voucher application signed by the guardian asserting:
(a) That the guardian meets the requirements for the federal
earned income credit for child health insurance for the current
or next calendar year;
(b) The good-faith estimate value of the health insurance
earned income credit for the year in question;
(c) That the guardian will use the voucher to purchase
health insurance covering dependent children;
(d) That the guardian will prepare a federal tax return for
the year in question; and
(e) That the guardian agrees to assign the value of any
federal tax refund, in the amount of the voucher issued by the
corporation to the corporation when filing the guardian's federal
tax return.
§33-25B-5. Duties and responsibilities of corporation.
Upon presentation of a valid voucher application, the
corporation shall issue from its insurance subsidy fund a voucher
to the guardian or applicant aide, made out in behalf of the
guardian and redeemable for the face amount by any approved
provider. The corporation shall retain in the fund all moneys
received from refundable tax credits of guardians. These moneys
shall be used to extend additional vouchers. The corporation maysolicit and receive donations of moneys for the fund. No
corporation may require that vouchers be presented to a specific
approved provider in order to be eligible to participate in the
program.
§33-25B-6. Duties and responsibilities of department of health
and human resources to provide training and other services.
(a) The department of health and human resources shall
design and provide the vouchers to any corporation wishing to
participate in the program at a cost not to exceed the actual
cost of the voucher.
(b) No later than ninety days after a request is made by a
corporation wishing to participate in the insurance subsidy
program, the department of health and human resources in
cooperation with the corporations participating in the program,
shall begin to conduct regional training and information sessions
in all regions of the state. The purpose of these sessions is to
train guardians and potential applicant aides in the the
necessary rules to qualify under the federal guidelines for
earned income credits and the requirements of this section.
These sessions shall be open to the public and potential
applicant aides, at a charge not to exceed ten dollars which
shall be used solely to defray the costs of conducting the
training sessions. Sessions shall be available in at least the
first and fourth quarter of the calendar year in all regions of
the state after a request has been made by a corporation to
commence such training sessions. The department of health and
human resources may waive the fee for guardians.
(c) Potential applicant aides shall be tested by thedepartment of health and human resources. Potential applicant
aides who successfully complete the test shall be awarded a
certificate entitling them to work as an applicant aide. The
department of health and human resources shall propose
legislative rules for promulgation in accordance with the
provisions of article three, chapter twenty-nine-a of this code.
§33-25B-7. Allowable Commission for Applicant aides; prohibited
practices.
(a) Applicant aides may receive a commission not to exceed
five percent of the voucher, from an approved provider. No
commission may be paid until the fund is fully reimbursed for the
voucher. Applicant aides may not solicit or accept any
compensation from guardians or potential guardians.
(b) An applicant aide shall be prohibited from entering into
any agreement with an approved provider, whether such agreement
is for profit or not for profit, to recommend a specific approved
provider, to the exclusion of all other approved providers, in
the course of counseling guardians or applicants.
(c) Applicant aides who engage in deceptive practices or who
aid or encourage deception or fraud may, upon hearing by the
corporation, have their certificate as an applicant aide revoked
for a period of not less than five years. This action shall be
in addition to any other penalties available at law.
(d) The corporation may pursue triple damages in civil court
for any losses to the fund attributable to actions or the conduct
of applicant aides or guardians.
§33-25B-8. Activities not deemed the sale of insurance;
exemptions from benefits and taxation.
(a) Assisting individuals in the preparation of applications
to the fund and selection of the providers does not constitute
the sale of insurance and shall not be subject to regulation by
the insurance commissioner.
(b) Insurance coverage bought by the guardian through the
use of a voucher provided pursuant to the provisions of this
article will be exempt from state law and regulations requiring
certain mandatory state insurance coverages or benefits.
(c) Insurance coverage bought by guardians through the use
of a voucher provided pursuant to the provisions of this article
shall not be subject to state premium taxes.
§33-25B-9. Annual report and audits.
On the first day of January of each year the corporation
shall report on its operations for the preceding fiscal year to
the governor and the state Legislature. The report shall include
a summary of the activities of the corporation and a complete
operating and financial statement. A corporation shall cause an
annual audit to be made by a resident certified public accountant
or a registered public accountant of its books, accounts and
records, with respect to its receipts, disbursements and all
other matters related to the operation of the insurance subsidy
program. The person performing such audit shall also furnish
copies of the audit report to the joint committee on government
and finance and the legislative auditor.
§33-25B-10. Tax exemption.
Any corporation organized for the purposes of this article
is exempt from all franchise, corporate, business and taxes of
every nature levied by the state.
§33-25B-11. Personal liability of members or persons acting on
behalf of the corporation.
No person acting on behalf of the corporation executing any
contracts, commitments or agreements issued pursuant to this
article may be liable personally upon the contracts, commitments
or agreements or be subject to any personal liability or
accountability by reason thereof.