H. B. 4650
(By Delegates Caputo, Linch, J. Smith,
Stalnaker, Marshall, Manchin and Prunty)
[Introduced February 24, 2000; referred to the
Committee on Government Organization.]
A BILL to amend and reenact sections three and four, article
sixteen, chapter five of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, all relating to
making the public employees insurance agency director an ex
officio member of the finance board.
Be it enacted by the Legislature of West Virginia:
That sections three and four, article sixteen, chapter five
of the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted, all to read as follows:
ARTICLE 16. WEST VIRGINIA PUBLIC EMPLOYEES INSURANCE 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 is continued, and
consists of the director, the finance board, the advisory board and
any employees who 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 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 are required for the proper administration of the
insurance programs provided for in this article. The director
shall perform such duties as are required of him or her under the
provisions of this article and is the chief administrative officer
of the public employees insurance agency. The director may employ
a deputy director: Provided, That the director shall report each
year to the joint committee on government and finance on the
agency's total contract costs for consultant contracts and the
costs of the deputy director's position for the fiscal years one
thousand nine hundred ninety-eight through two thousand.
(b) All positions in the agency, except for the director, his
or her personal secretary, the deputy director and the chief financial officer 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 in this subsection 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 in this subsection 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 the person had been in the
classified service when severed, removed or terminated.
(c) The director is responsible for the administration and
management of the public employees insurance agency as provided for
in this article and in connection with his or her responsibility
shall have the power and authority to make all recommend to the
finance board rules 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 and
approved by the finance board, 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, two thousand one, unless extended by
legislation enacted before the termination date: Provided, That
the public employees insurance agency advisory board, created in
section six of this article, 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-six.
§5-16-4. Public employees insurance agency finance board
continued; qualifications, terms and removal of
members; quorum; compensation and expenses;
termination date.
(a) There is hereby continued the public employees insurance
agency finance board, which consists of the director and six seven
members appointed by the governor with the advice and consent of the Senate for terms of four years and until the appointment of
their successors: Provided, That of the two members added to the
board by the amendment of this section, enacted during the regular
legislative session, one thousand nine hundred ninety-nine, the
at-large member shall be appointed for an initial term of two years
and the member representing organized labor shall be appointed for
a term of four years. Members may be reappointed for successive
terms. No more than four members (including the director) may be
of the same political party.
(b) Of the six seven members appointed by the governor, one
member shall represent the interests of education employees, one
shall represent the interests of public employees, one shall
represent the interests of organized labor and three shall be
selected from the public at large. The governor shall appoint the
member representing the interests of education employees from a
list of three names submitted by the largest organization of
education employees in this state. The governor shall appoint the
member representing the interests of organized labor from a list of
three names submitted by the state's largest organization
representing labor affiliates. The three members appointed from
the public shall each have experience in the financing, development
or management of employee benefit programs. All new appointments
made after the first day of July, one thousand nine hundred
ninety-four, shall be selected to represent the different geographical areas within the state and all members shall be
residents of West Virginia. No member may be removed from office
by the governor except for official misconduct, incompetence,
neglect of duty, neglect of fiduciary duty or other specific
responsibility imposed by this article, or gross immorality.
(c) The director shall serve as chairperson an ex officio
member of the finance board, which shall meet at times and places
specified by the call of the director chairperson of the board who
shall be elected at the first finance board meeting of each fiscal
year or upon the written request to the director chairperson of the
board of at least two members. Notice of each meeting shall be
given in writing to each member by the director at least three days
in advance of the meeting. Four members constitutes a quorum. The
board shall pay each member the same compensation and expense
reimbursement as is paid to members of the Legislature for their
interim duties, as recommended by the citizens legislative
compensation commission and authorized by law for each day or
portion of a day engaged in the discharge of official duties.
(d) Pursuant to the provisions of article ten, chapter four of
this code, the finance board shall terminate on the first day of
July, two thousand one, unless extended by legislation enacted
before the termination date.
(e) Upon termination of the board and notwithstanding any
provisions in this article to the contrary, the director is authorized to assess monthly employee premium contributions and to
change the types and levels of costs to employees only in
accordance with this subsection. Any assessments or changes in
costs imposed pursuant to this subsection shall be implemented by
legislative rule proposed by the director for promulgation pursuant
to the provisions of article three, chapter twenty-nine-a of this
code; any employee assessments or costs previously authorized by
the finance board shall then remain in effect until amended by rule
of the director promulgated pursuant to this subsection.
NOTE: This bill provides for removing the director of the PEIA
as a voting member of the finance board and makes him or her an ex
officio member.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.