ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. B. 4015
(By Mr. Speaker, Mr. Kiss, and Delegate Trump)
[By Request of the Executive]
[Passed March 11, 2006;in effect ninety days from passage.]
AN ACT to amend and reenact §4-11A-2 and §4-11A-3 of the Code of
West Virginia, 1931, as amended, to amend and reenact §11B-2-
20 of said code; and to amend and reenact §33-20F-4 of said
code; all relating generally to reserve funding; creating the
Revenue Shortfall Reserve Fund - Part B; providing for the
transfer of all monies in the West Virginia Tobacco Settlement
Medical Trust Fund including any interest and earnings thereon
to the Revenue Shortfall Reserve Fund - Part B; closing the
West Virginia Tobacco Settlement Medical Trust Fund; providing
funding for the Revenue Shortfall Reserve Fund; providing
legislative authority to appropriate moneys from the Revenue
Shortfall Reserve Fund and the Revenue Shortfall Reserve Fund
- Part B; providing that repayments from the loan made to the
physicians' mutual insurance company shall be paid into the
Revenue Shortfall Reserve Fund - Part B; providing for the
investment of moneys in the Revenue Shortfall Reserve Fund and the Revenue Shortfall Reserve Fund - Part B; and making
technical corrections.
Be it enacted by the Legislature of West Virginia:
That §4-11A-2 and §4-11A-3 of the Code of West Virginia, 1931,
as amended, be amended and reenacted; that §11B-2-20 of said code
be amended and reenacted; and that §33-20F-4 of said code be
amended and reenacted, all to read as follows:
CHAPTER 4. THE LEGISLATURE.
ARTICLE 11A. LEGISLATIVE APPROPRIATION OF TOBACCO SETTLEMENT
FUNDS.
§4-11A-2. Receipt of settlement funds and required deposit in West
Virginia Tobacco Settlement Medical Trust Fund until the first
day of June, two thousand five, then to Workers' Compensation
Debt Reduction Fund; deposit of strategic compensation
payments; transfer of trust fund moneys.
(a) The Legislature finds and declares that certain dedicated
revenues should be preserved in trust for the purpose of
stabilizing the state's health-related programs and delivery
systems. It further finds and declares that these dedicated
revenues should be preserved in trust for the purpose of educating
the public about the health risks associated with tobacco usage and
establishing a program designed to reduce and stop the use of
tobacco by the citizens of this state and in particular by
teenagers.
(b) There is hereby created a special account in the state treasury, designated the "West Virginia Tobacco Settlement Medical
Trust Fund", which shall be an interest-bearing account and may be
invested in the manner permitted by section nine, article six,
chapter twelve of this code, with the interest income a proper
credit to the fund. Unless contrary to federal law, fifty percent
of all revenues received pursuant to the master settlement
agreement shall be deposited in this fund. Funds paid into the
account may also be derived from the following sources:
(1) All interest or return on investment accruing to the fund;
(2) Any gifts, grants, bequests, transfers or donations which
may be received from any governmental entity or unit or any person,
firm, foundation or corporation;
(3) Any appropriations by the Legislature which may be made
for this purpose; and
(4) Any funds or accrued interest remaining in the Board of
Risk and Insurance Management physicians' mutual insurance company
account created pursuant to section seven, article twenty-f,
chapter thirty-three of this code on or after the first day of
July, two thousand four.
(c)(1) The moneys from the principal in the trust fund may not
be expended for any purpose, except that on the first day of April,
two thousand three, the treasurer shall transfer to the Board of
Risk and Insurance Management physicians' mutual insurance company
account created by section seven, article twenty-f, chapter
thirty-three of this code, twenty-four million dollars from the
West Virginia Tobacco Settlement Medical Trust Fund for use as the initial capital and surplus of the physicians' mutual insurance
company created pursuant to said article. The remaining moneys in
the trust fund resulting from interest earned on the moneys in the
fund and the return on investments of the moneys in the fund shall
be available only upon appropriation by the Legislature as part of
the state budget and expended in accordance with the provisions of
section three of this article.
(2) Notwithstanding any other provision of this code to the
contrary, on the effective date of the amendment and reeanactment
of this section during the regular session of the Legislature in
two thousand six, all moneys in the trust fund and any interest or
other return earned thereon shall be transferred to the Revenue
Shortfall Reserve Fund - Part B created in section twenty, article
two, chapter eleven-b of this code and the trust fund shall be
closed. No provisions of the amendments made to this section
during the regular session of the Legislature in two thousand six
may be construed to change the requirements of this section for the
deposit of revenues received pursuant to the tobacco master
settlement agreement into the workers' compensation debt reduction
fund.
(d) Notwithstanding the preceding subsections to the contrary,
the first thirty million dollars of all revenues received after the
thirtieth day of June, two thousand five, pursuant to section
IX(c)(1) of the tobacco master settlement agreement shall in the
fiscal year beginning the first day of July, two thousand five, and
each fiscal year thereafter, be deposited in the workers' compensation debt reduction fund established in the state treasury
in section five, article two-d, chapter twenty-three of this code.
Receipts in excess of thirty million dollars shall be deposited
into the Tobacco Settlement Fund provided in section three of this
article.
(e) Notwithstanding anything in this code to the contrary,
strategic compensation payments received pursuant to section
IX(c)(2) of the tobacco master settlement agreement, beginning in
two thousand eight, shall be deposited in their entirety in the
workers' compensation debt reduction fund.
§4-11A-3. Receipt of settlement funds and required deposit in the
West Virginia Tobacco Settlement Fund.
(a) There is hereby created in the state treasury a special
revenue account, designated the "Tobacco Settlement Fund", which
shall be an interest bearing account and may be invested in the
manner permitted by the provisions of article six, chapter twelve
of this code, with the interest income a proper credit to the fund.
Unless contrary to federal law, fifty percent of all revenues
received pursuant to the master settlement agreement shall be
deposited in this fund. These funds shall be available only upon
appropriation by the Legislature as part of the state budget:
Provided, That for the fiscal year two thousand, the first five
million dollars received into the fund shall be transferred to the
public employees insurance reserve fund created in article two,
chapter five-a of this code.
(b) Appropriations from the Tobacco Settlement Fund are limited to expenditures for the following purposes:
(1) Reserve funds for continued support of the programs
offered by the Public Employees Insurance Agency established in
article sixteen, chapter five of this code;
(2) Funding for expansion of the federal-state medicaid
program as authorized by the Legislature or mandated by the federal
government;
(3) Funding for public health programs, services and agencies;
and
(4) Funding for any state owned or operated health facilities.
CHAPTER 11B. DEPARTMENT OF REVENUE.
ARTICLE 2. STATE BUDGET OFFICE.
§11B-2-20. Reduction of appropriations; powers of Governor;
Revenue Shortfall Reserve Fund and permissible
expenditures therefrom.
(a) Notwithstanding any provision of this section, the
Governor may reduce appropriations according to any of the methods
set forth in sections twenty-one and twenty-two of this article.
The Governor may, in lieu of imposing a reduction in
appropriations, request an appropriation by the Legislature from
the Revenue Shortfall Reserve Fund established in this section.
(b) A Revenue Shortfall Reserve Fund is hereby continued
within the State Treasury. The Revenue Shortfall Reserve Fund
shall be funded as set forth in this subsection from surplus revenues, if any, in the State Fund, General Revenue, as the
surplus revenues may accrue from time to time. Within sixty days
of the end of each fiscal year, the secretary shall cause to be
deposited into the Revenue Shortfall Reserve Fund the first fifty
percent of all surplus revenues, if any, determined to have accrued
during the fiscal year just ended. The Revenue Shortfall Reserve
Fund shall be funded continuously and on a revolving basis in
accordance with this subsection up to an aggregate amount not to
exceed ten percent of the total appropriations from the State Fund,
General Revenue, for the fiscal year just ended. If at the end of
any fiscal year the Revenue Shortfall Reserve Fund is funded at an
amount equal to or exceeding ten percent of the State's General
Revenue Fund budget for the fiscal year just ended, then there
shall be no further obligation of the secretary under the
provisions of this section to apply any surplus revenues as set
forth in this subsection until that time the Revenue Shortfall
Reserve Fund balance is less than ten percent of the total
appropriations from the state fund, general revenue.
(c) Not earlier than the first day of November of each
calendar year, if the state's fiscal circumstances are such as to
otherwise trigger the authority of the Governor to reduce
appropriations under this section or section twenty-one or section
twenty-two of this article, then in that event the Governor may
notify the presiding officers of both houses of the Legislature in
writing of his or her intention to convene the Legislature pursuant
to section nineteen, article VI of the Constitution of West Virginia for the purpose of requesting the introduction of a
supplementary appropriation bill or to request a supplementary
appropriation bill at the next preceding regular session of the
Legislature to draw money from the surplus Revenue Shortfall
Reserve Fund to meet any anticipated revenue shortfall. If the
Legislature fails to enact a supplementary appropriation from the
Revenue Shortfall Reserve Fund during any special legislative
session called for the purposes set forth in this section or during
the next preceding regular session of the Legislature, then the
Governor may proceed with a reduction of appropriations pursuant to
sections twenty-one and twenty-two of this article. Should any
amount drawn from the Revenue Shortfall Reserve Fund pursuant to an
appropriation made by the Legislature prove insufficient to address
any anticipated shortfall, then the Governor may also proceed with
a reduction of appropriations pursuant to sections twenty-one and
twenty-two of this article.
(d) Upon the creation of the fund, the Legislature is
authorized and may make an appropriation from the Revenue Shortfall
Reserve Fund for revenue shortfalls, for emergency revenue needs
caused by acts of God or natural disasters or for other fiscal
needs as determined solely by the Legislature.
(e) Prior to the thirty-first day of October, in any fiscal
year in which revenues are inadequate to make timely payments of
the state's obligations, the Governor may by executive order, after
first notifying the presiding officers of both houses of the
Legislature in writing, borrow funds from the Revenue Shortfall Reserve Fund. The amount of funds borrowed under this subsection
shall not exceed one and one-half percent of the general revenue
estimate for the fiscal year in which the funds are to be borrowed,
or the amount the Governor determines is necessary to make timely
payment of the state's obligations, whichever is less. Any funds
borrowed pursuant to this subsection shall be repaid, without
interest, and redeposited to the credit of the Revenue Shortfall
Reserve Fund within ninety days of their withdrawal.
(f) There is hereby created in the State Treasury the "Revenue
Shortfall Reserve Fund - Part B." The Revenue Shortfall Reserve
Fund - Part B shall consist of moneys transferred from the West
Virginia Tobacco Settlement Medical Trust Fund pursuant to the
provisions of section two, article eleven-a, chapter four of this
code, repayments made of the loan from the West Virginia Tobacco
Settlement Medical Trust Fund to the physician's mutual insurance
company pursuant to the provisions of article twenty-f, chapter
thirty-three of this code, and all interest and other return earned
on the moneys in the Revenue Shortfall Reserve Fund - Part B.
Moneys in the Revenue Shortfall Reserve Fund - Part B may be
expended solely for the purposes set forth in subsection (d) of
this section, subject to the following conditions:
(1) No moneys in the Revenue Shortfall Reserve Fund - Part B
nor any interest or other return earned thereon may be expended for
any purpose unless all moneys in the Revenue Shortfall Reserve Fund
described in subsection (b) of this section have first been
expended, except that the interest or other return earned on moneys in the Revenue Shortfall Reserve Fund - Part B may be expended as
provided in subdivision (2) of this subsection; and
(2) Notwithstanding any other provision of this section to the
contrary, the Legislature may appropriate any interest and other
return earned thereon that may accrue on the moneys in the Revenue
Shortfall Reserve Fund - Part B after the thirtieth day of June,
two thousand twenty-five, for expenditure for the purposes set
forth in section three, article eleven-a, chapter four of this
code; and
(3) Any appropriation made from Revenue Shortfall Reserve Fund
- Part B shall be made only in instances of revenue shortfalls or
fiscal emergencies of an extraordinary nature.
(g) Subject to the conditions upon expenditures from the
Revenue Shortfall Reserve Fund - Part B prescribed in subsection
(f) of this section, in appropriating moneys pursuant to the
provisions of this section, the Legislature may in any fiscal year
appropriate from the Revenue Shortfall Reserve Fund and the Revenue
Shortfall Reserve Fund - Part B a total amount up to but not
exceeding ten percent of the total appropriations from the State
Fund, General Revenue, for the fiscal year just ended.
(h)(1) Of the moneys in the Revenue Shortfall Reserve Fund,
one hundred million dollars, or such greater amount as may be
certified as necessary by the director of the budget for the
purposes of subsection (e) of this section, shall be made available
to the West Virginia Board of Treasury Investments for management
and investment of the moneys in accordance with the provisions of article six-c, chapter twelve of this code. All other moneys in
the Revenue Shortfall Reserve Fund shall be made available to the
West Virginia Investment Management Board for management and
investment of the moneys in accordance with the provisions of
article six, chapter twelve of this code. Any balance of the
Revenue Shortfall Reserve Fund including accrued interest and other
return earned thereon at the end of any fiscal year shall not
revert to the general fund but shall remain in the Revenue
Shortfall Reserve Fund for the purposes set forth in this section.
(2) All of the moneys in the Revenue Shortfall Reserve Fund -
Part B shall be made available to the West Virginia Investment
Management Board for management and investment of the moneys in
accordance with the provisions of article six, chapter twelve of
this code. Any balance of the Revenue Shortfall Reserve Fund -
Part B including accrued interest and other return earned thereon
at the end of any fiscal year shall not revert to the general fund
but shall remain in the Revenue Shortfall Reserve Fund - Part B for
the purposes set forth in this section.
CHAPTER 33. INSURANCE.
ARTICLE 20F. PHYSICIANS' MUTUAL INSURANCE COMPANY.
§33-20F-4. Authorization for creation of company; requirements and
limitations; repayment of loan.
(a) Subject to the provisions of this article, a physicians'
mutual insurance company may be created as a domestic, private,
nonstock, nonprofit corporation. As an incentive for its creation, the company may be eligible for funds from the Legislature in
accordance with the provisions of section seven of this article.
The company must remain for the duration of its existence a
domestic mutual insurance company owned by its policyholders and
may not be converted into a stock corporation, a for-profit
corporation or any other entity not owned by its policyholders.
The company may not declare any dividend to its policyholders;
sell, assign or transfer substantial assets of the company; or
write coverage outside this state, except for counties adjoining
this state, until after any and all debts owed by the company to
the state have been fully paid.
(b) For the duration of its existence, the company is not and
may not be considered a department, unit, agency, or
instrumentality of the state for any purpose. All debts, claims,
obligations, and liabilities of the company, whenever incurred,
shall be the debts, claims, obligations, and liabilities of the
company only and not of the state or of any department, unit,
agency, instrumentality, officer, or employee of the state.
(c) The moneys of the company are not and may not be
considered part of the general revenue fund of the state. The
debts, claims, obligations, and liabilities of the company are not
and may not be considered a debt of the state or a pledge of the
credit of the state.
(d) The company is not subject to provisions of article
nine-a, chapter six of this code or the provisions of article one,
chapter twenty-nine-b of this code.
(e)(1) All premiums collected by the company are subject to
the premium taxes, additional premium taxes, additional fire and
casualty insurance premium taxes and surcharges contained in
sections fourteen, fourteen-a, fourteen-d and thirty-three, article
three of this chapter:
Provided, That while the loan to the
company of moneys from the West Virginia Tobacco Settlement Medical
Trust Fund pursuant to section nine of this article remains
outstanding, the commissioner may waive the company's premium
taxes, additional premium taxes and additional fire and casualty
insurance premium taxes if payment would render the company
insolvent or otherwise financially impaired.
(2) On and after the first day of July, two thousand three,
any premium taxes and additional premium taxes paid by the company
and by any insurer on its medical malpractice line pursuant to
sections fourteen and fourteen-a, article three of this chapter,
shall be temporarily applied toward replenishing the moneys
appropriated from the West Virginia Tobacco Settlement Medical
Trust Fund pursuant to subsection (c), section two, article
eleven-a, chapter four of this code pending repayment of the loan
of such moneys by the company.
(3) The State Treasurer shall notify the commissioner when the
moneys appropriated from the West Virginia tobacco settlement
medical trust have been fully replenished, at which time the
commissioner shall resume depositing premium taxes and additional
premium taxes diverted pursuant to subdivision (2) of this
subsection in accordance with the provisions of sections fourteen and fourteen-a, article three of this chapter.
(4) Payments received by the treasurer from the company in
repayment of any outstanding loan made pursuant to section nine of
this article shall be deposited in the West Virginia Tobacco
Settlement Medical Trust Fund and dedicated to replenishing the
moneys appropriated therefrom under subsection (c), section two,
article eleven-a, chapter four of this code. Once the moneys
appropriated from the West Virginia Tobacco Settlement Medical
Trust Fund have been fully replenished, the treasurer shall deposit
any payments from the company in repayment of any outstanding loan
made pursuant to section nine of this article in said fund and
transfer a like amount from said fund to the commissioner for
disbursement in accordance with the provisions of sections fourteen
and fourteen-a, article three of this chapter.
(5) Notwithstanding any other provision of this code to the
contrary, on and after the effective date of the amendment and
reeanactment of this section during the regular session of the
Legislature in two thousand six, all moneys otherwise required by
this section to be deposited in the West Virginia Tobacco
Settlement Medical Trust Fund and dedicated to replenishing the
moneys transferred therefrom under subsection (c), section two,
article eleven-a, chapter four of this code shall instead be paid
into the Revenue Shortfall Reserve Fund - Part B created in section
twenty, article two, chapter eleven-b of this code.