Senate Bill No. 138

(By Senators Tomblin, Mr. President, and Boley,

By Request of the Executive)
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[Introduced January 23, 1995; referred to the Committee
on Government Organization; and then to the Committee on Finance.]

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A BILL to amend and reenact section three, article sixteen,
chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend chapter five-a of said code by adding thereto a new article, designated article one-b; to amend and reenact section two-a, article seven, chapter six of said code; and to amend and reenact section seven, article six, chapter twenty-nine of said code, all relating to the center for quality government and to the salaries of the director of the division of personnel and director of the public employees insurance agency.

Be it enacted by the Legislature of West Virginia:
That section three, article sixteen, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; that chapter five-a of said code be amended by adding thereto a new article, designated article one-b; that section two-a, article seven, chapter six of said code be amended and reenacted; and that section seven, article six, chapter twenty-nine of said code be amended and reenacted, all to read as follows:
CHAPTER 5. BOARDS AND COMMISSIONS.

ARTICLE 16. WEST VIRGINIA PUBLIC EMPLOYEES ACT.
§5-16-3. Public employees insurance agency continued;
appointment, qualification, compensation and duties of director of agency; employees; civil service coverage; director vested after specified date with powers of public employees insurance board; expiration of agency.

(a) The public employees insurance agency, heretofore created, is continued, and shall consist of the director, the finance board, the advisory board and such employees as may be authorized by law. The director shall be appointed by the governor, with the advice and consent of the Senate. He or she shall serve at the will and pleasure of the governor, unless earlier removed from office for cause as provided by law. The director shall have at least three years experience in health insurance administration prior to appointment as director. The director shall receive an annual salary established by the governor not to exceed fifty-five sixty-five thousand dollars and actual expenses incurred in the performance of official business. The director shall employ such administrative, technical and clerical employees as shall be required for the proper administration of the insurance programs herein provided. The director shall perform such duties as are required of him or her under the provisions of this article and shall be the chief administrative officer of the public employees insurance agency.
(b) All positions in the agency, except for the director and his or her personal secretary, shall be included in the classified service of the civil service system pursuant to article six, chapter twenty-nine of this code. Any person required to be included in the classified service by the provisions of this subsection who was employed in any of the positions included herein on or after the effective date of this article shall not be required to take and pass qualifying or competitive examinations upon or as a condition to being added to the classified service: Provided, That no person required to be included in the classified service by the provisions of this subsection who was employed in any of the positions included herein as of the effective date of this section shall be thereafter severed, removed or terminated in his or her employment prior to his or her entry into the classified service except for cause as if such person had been in the classified service when severed, removed or terminated.
(c) The director shall be responsible for the administration and management of the public employees insurance agency as provided for in this article and in connection therewith shall have the power and authority to make all rules and regulations necessary to effectuate the provisions of this article. Nothing in section four or five of this article shall limit the director's ability to manage on a day-to-day basis the group insurance plans required or authorized by this article, including, but not limited to, administrative contracting, studies, analyses and audits, eligibility determinations, utilization management provisions and incentives, provider negotiations, provider contracting and payment, designation of covered and noncovered services, offering of additional coverage options or cost containment incentives, pursuit of coordination of benefits and subrogation, or any other actions which would serve to implement the plan or plans designed by the finance board.
(d) The public employees insurance agency shall terminate in the manner provided in article ten, chapter four of this code, on the first day of July, one thousand nine hundred ninety-five, unless extended by legislation enacted before the termination date.
CHAPTER 5A. DEPARTMENT OF ADMINISTRATION.

ARTICLE 1B. Center for quality government.
§5A-1B-1. Findings.
The Legislature finds:
(a) The provision of state government services, like most other services in our economy, is becoming increasingly complex and specialized;
(b) State government must invest in training for its employees and must reduce turnover of experienced employees who leave state government to learn and earn more in the private sector; and
(c) That to address these issues, state government agencies need to establish a center for quality government which, guided by public and private sector persons familiar with human resources and professional development, can train and educate state employees to meet the increasingly complex and specialized needs of state government and to instill in state employees a sense of accomplishment and purpose, thus fostering such employees' continuing commitment to the service of the citizens of this state.
§5A-1B-2. Center for quality government created; membership.
(a) The center for quality government, hereinafter referred to as the "center," is hereby established within the department of administration. The purpose of the center is to assist state agencies in training and educating their employees and to execute such specific duties and powers assigned to the center by law.
(b) The center for quality government shall consist of nine members: The chancellor of the board of trustees, ex officio; the chancellor of the board of directors, ex officio; the state superintendent of schools, ex officio; the director of the division of personnel, ex officio; and five persons appointed by the governor who have private sector experience on the training of employees and with other human resource development issues. The members shall be appointed on or before the first day of June, one thousand nine hundred ninety-five. Of the initial appointed members, two shall be appointed for two-year terms and three shall be appointed for four-year terms. All successive appointments shall be for four-year terms. The director of the division of personnel shall convene the first meeting of the center for the purpose of electing a chair, vice-chair, and secretary and for other organizational purposes. Appointed members shall be reimbursed for reasonable and necessary expenses actually incurred in the performance of their official duties from funds appropriated or otherwise made available for such purposes upon submission of an itemized statement therefor.
(c) The center shall employ and fix the compensation for an executive director and such other persons as may be necessary to carry out the mission and duties of the center. The center may also contract for any other services needed to carry out its responsibilities under this article. The provisions of article three, chapter five-a of this code relating to the division of purchasing of the department of finance and administration shall not apply to any contracts for professional services authorized to be executed by the center under the provisions of this article. Before entering into any such contract greater than ten thousand dollars, the center shall invite bids from all vendors qualified to provide the requested services, dealing directly with such vendors in presenting specifications and receiving quotations for bid purposes. The director shall award any such contract on a competitive basis, taking into account the experience of the offering vendor, the quality of the vendor's service and the cost of such services.
§5A-1B-3. Duties and responsibilities.
(a) On the first day of July, one thousand nine hundred ninety-five, the center shall assume all responsibilities for employee training and education services previously provided by the division of personnel and for helping agencies encourage their employees to exercise the practices and principles deemed necessary to the continued improvement in the state's delivery of services to its citizens.
(b) On or before the first day of October, one thousand nine hundred ninety-five, the center shall develop and begin implementing a comprehensive plan for helping state agency administrators develop and improve the following skills:
(1) Leadership skills: Including the ability to coach and motivate, encourage team work, communicate effectively, practice effective delegation, manage change, resolve conflict, make hard decisions and practice sound personal values;
(2) Administrative skills: Including budgeting, personnel decisions, time management and information systems knowledge; and
(3) Professional development: Including skills to stay informed about recent trends in an administrator's field, to identify gaps in knowledge about that field and to define and refine career objectives.
The training provided by the plan shall minimize lecture-oriented training techniques, maximize "real work" training strategies, and assure adequate preparation and ongoing evaluation of administrators participating in any resulting training.
(c) On or before the first day of December, one thousand nine hundred ninety-five, the center shall recommend to the governor and to the Legislature such administrative and legislative actions that may be necessary to increase the ability of state government to recruit, train and retain highly qualified administrators. Such recommendations shall address issues relating to hiring, promotion, termination, career development, compensation and training.
§5A-1B-4. Center for quality government fund.
(a) For the operation of the center, there is hereby created in the state treasury a special revolving fund to be known and designated as the "center for quality government fund." This fund shall consist of appropriations made by the Legislature, funds received for training and education services rendered to other state and local agencies and funds received from the grants or donations from other sources.
(b) Each state and local agency is hereby authorized and directed to transmit to the center for deposit in said special fund the charges made by the center for training and education services rendered to the agency. For fiscal years one thousand nine hundred ninety-six and thereafter, such charges shall be fixed in a schedule or schedules approved by the board and may, at the direction of the center, be paid in advance of such services being rendered. Disbursements from the fund shall be made in accordance with an approved expenditure schedule as approved by the center's board. Notwithstanding any provision in this code to the contrary, after the first day of July, one thousand nine hundred ninety-five, no state or local agency shall be directed to transmit any funds for the purposes of employee training and education services to the "division of personnel fund" established by section twenty-three, article six, chapter twenty-nine.
§5A-1B-5. Advisory council.
To assist the center in the performance of its duties, there is created an advisory council consisting of one person designated by each department secretary or bureau commissioner who is familiar with the human resource, training and education needs of that particular department or bureau.
§5A-1B-6. Effective date and termination date.
Upon the effective date of this section, the center shall be established. The center shall terminate on the thirtieth day of June, one thousand nine hundred ninety-nine, unless extended by legislation enacted before the termination date.
CHAPTER 6. GENERAL PROVISIONS RESPECTING OFFICERS.

ARTICLE 7. Compensation and allowance.
§6-7-2a. Terms of certain appointive state officers;
appointment; qualifications; powers and salaries of such officers.

(a) Notwithstanding any other provision of this code to the contrary enacted prior to the first day of January, one thousand nine hundred ninety-four, each of the following appointive state officers named in this subsection shall be appointed by the governor, by and with the advice and consent of the Senate. Each of such appointive state officers shall serve at the will and pleasure of the governor for the term for which the governor was elected and until the respective state officers' successors have been appointed and qualified. Each of such appointive state officers shall hereafter be subject to the existing qualifications for holding each such respective office and each shall have and is hereby granted all of the powers and authority and shall perform all of the functions and services heretofore vested in and performed by virtue of existing law respecting each such office.
Beginning on the first day of July, one thousand nine hundred ninety-four, the annual salary of each such named appointive state officer shall be as follows:
Administrator, division of highways, sixty-five thousand dollars; administrator, division of health, fifty-seven thousand two hundred dollars; administrator, division of human services, forty-seven thousand eight hundred dollars; administrator, state tax division, forty-nine thousand nine hundred dollars; administrator, division of energy, sixty-five thousand dollars; administrator, division of corrections, fifty-five thousand dollars; administrator, division of natural resources, sixty-five thousand dollars; administrator, division of public safety, sixty thousand dollars; administrator, lottery division, sixty thousand dollars; director, public employees insurance agency, fifty-five thousand dollars administrator, division of banking, fifty-five thousand dollars; administrator, division of insurance, fifty-five thousand dollars; administrator, division of culture and history, fifty thousand dollars; administrator, alcohol beverage control commission, sixty thousand dollars; administrator, division of motor vehicles, fifty-five thousand dollars; director, division of personnel, fifty thousand dollars; adjutant general, fifty thousand dollars; chairman, health care cost review authority, fifty-five thousand dollars; members, health care cost review authority, fifty-one thousand two hundred dollars; director, human rights commission, forty thousand dollars; administrator, division of labor, fifty-five thousand dollars; administrator, division of veterans affairs, forty thousand dollars; administrator, division of emergency services, forty thousand dollars; members, board of parole, forty thousand dollars; members, employment security review board, seventeen thousand dollars; members, workers' compensation appeal board, seventeen thousand eight hundred dollars: Provided, That as of the first day of July, one thousand nine hundred ninety-five, the annual salary for the director, division of personnel, shall be sixty thousand dollars.
Prior to the first day of July, one thousand nine hundred ninety-four, each of the aforesaid officers shall continue to receive the annual salaries they were receiving as of the last day of December, one thousand nine hundred ninety-three.
(b) Notwithstanding any other provisions of this code to the contrary enacted prior to the first day of January, one thousand nine hundred ninety-four, each of the state officers named in this subsection shall continue to be appointed in the manner prescribed in this code, and, prior to the first day of July, one thousand nine hundred ninety-four, each of the state officers named in this subsection shall continue to receive the annual salaries they were receiving as of the last day of December, one thousand nine hundred ninety-three, and shall thereafter be paid an annual salary as follows: State superintendent of schools, seventy-five thousand dollars; administrator, division of risk and insurance management, fifty thousand dollars; director, division of rehabilitation services, fifty-five thousand dollars; executive director, educational broadcasting authority, forty-seven thousand five hundred dollars; secretary, library commission, forty-seven thousand five hundred dollars; director, geologic and economic survey, forty-seven thousand five hundred dollars; executive director, water development authority, fifty-four thousand two hundred dollars; executive director, public defender services, fifty-five thousand dollars; director, commission on aging, forty thousand dollars; commissioner, oil and gas conservation commission, forty thousand dollars; director, farm management commission, thirty-two thousand five hundred dollars; director, railroad maintenance authority, fifty thousand dollars; executive secretary, women's commission, thirty thousand one hundred dollars; director, regional jail authority, fifty-five thousand dollars; director, hospital finance authority, twenty-five thousand eight hundred dollars.
(c) No increase in the salary of any appointive state officer pursuant to this section shall be paid until and unless such appointive state officer shall have first filed with the state auditor and the legislative auditor a sworn statement, on a form to be prescribed by the attorney general, certifying that his or her spending unit is in compliance with any general law providing for a salary increase for his or her employees. The attorney general shall prepare and distribute such form to the affected spending units: Provided, That no decrease in salary shall be effective for any current appointive state officer appointed prior to the first day of January, one thousand nine hundred eighty-nine: Provided, however, That such decreases shall take effect at such time as any appointive office is vacated: Provided further, That the increase provided for the state superintendent of schools enacted during the regular session, one thousand nine hundred ninety-four, should not become effective until the first day of January, one thousand nine hundred ninety-seven.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.

ARTICLE 6. CIVIL SERVICE.
§29-6-7. Director of personnel; appointment; qualifications;
powers and duties.

(a) The secretary of the department of administration shall appoint the director. The director shall be a person knowledgeable of the application of the merit principles in public employment as evidenced by the obtainment of a degree in business administration, personnel administration, public administration or the equivalent and at least five years of administrative experience in personnel administration.
(b) The director shall:
(1) Consistent with the provisions of this article administer the operations of the division, allocating the functions and activities of the division among sections as the director may establish;
(2) Maintain a personnel management information system necessary to carry out the provisions of this article;
(3) Supervise payrolls and audit payrolls, reports or transactions for conformity with the provisions of this article;
(4) Plan, evaluate, administer and implement personnel programs and policies in state government and to political subdivisions after agreement by the parties;
(5) Supervise the employee selection process and employ performance evaluation procedures;
(6) Develop programs Work with the center for quality government to improve efficiency and effectiveness of the public service, including, but not limited to, employee training, development, assistance and incentives;
(7) Establish pilot programs and other projects for a maximum of one year outside of the provisions of this article, subject to approval by the board, to be included in the annual report;
(8) Establish and provide for a public employee interchange program and may provide for a voluntary employee interchange program between public and private sector employees;
(9) Establish an internship program;
(10) Assist the governor and secretary of the department of administration in general work force planning and other personnel matters;
(11) Make an annual report to the governor and Legislature and all other special or periodic reports as may be required;
(12) Assess cost for special or other services;
(13) Recommend rules to the board for implementation of this article; and
(14) Conduct schools, seminars or classes for supervisory employees of the state regarding handling of complaints and disciplinary matters and the operation of the state personnel system.



NOTE: The purpose of the bill is to create a center that will provide specialized and modern management techniques to employees of state government. The bill also increases the salaries of the director of the public employees insurance agency and the director of the division of personnel by $10,000.00.

Article 1B, Chapter 5A is new, therefore, underscoring and strike-throughs have been omitted in that article. For all other provisions, strike-throughs indicate language that would be stricken from the present law and underscoring indicates new law that would be added.