Senate Bill No. 483

(By Senator Craigo and Bowman)


[Introduced February 15, 2000; referred to the Committee on the Judiciary; and then to the Committee on Finance.]

A BILL to amend and reenact section five, article twelve, chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to encumbering the salary of an agency head whose agency fails to pay the premium due to the board of risk.

Be it enacted by the Legislature of West Virginia:
That section five, article twelve, chapter twenty-nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:

§29-12-5. Powers and duties of board.
(a) The board shall have has general supervision and control over the insurance of all state property, activities and responsibilities, including the acquisition and cancellation thereof; determination of amount and kind of coverage, including, but not limited to, deductible forms of insurance coverage, inspections or examinations relating thereto, reinsurance and any and all matters, factors and considerations entering into negotiations for advantageous rates on and coverage of all such state property, activities and responsibilities. Any policy of insurance purchased or contracted for by the board shall provide that the insurer shall be is barred and estopped from relying upon the constitutional immunity of the state of West Virginia against claims or suits: Provided, That nothing herein shall bar in this section bars the insurer of political subdivisions from relying upon any statutory immunity granted such the political subdivisions against claims or suits. The board may enter into any contracts necessary to the execution of the powers granted to it by this article. It shall endeavor to secure the maximum of protection against loss, damage or liability to state property and on account of state activities and responsibilities by proper and adequate insurance coverage through the introduction and employment of sound and accepted methods of protection and principles of insurance. It is empowered and directed to make a complete survey of all presently owned and subsequently acquired state property subject to insurance coverage by any form of insurance, which survey shall include and reflect inspections, appraisals, exposures, fire hazards, construction and any other objectives or factors affecting or which might affect the insurance protection and coverage required. It shall keep itself currently informed on new and continuing state activities and responsibilities within the insurance coverage herein contemplated in this section. contemplated. The board shall work closely in cooperation with the state fire marshal's office in applying the rules and regulations of that office insofar as the appropriations and other factors peculiar to state property will permit. The board may is given power and authority to make rules and regulations governing its functions and operations and the procurement of state insurance, but shall not make or promulgate any rules or regulations in contravention of or inconsistent with the laws or rules and regulations governing the office of insurance commissioner of West Virginia.
The board is hereby authorized and empowered to may negotiate and effect settlement of any and all insurance claims arising on or incident to losses of and damages to state properties, activities and responsibilities hereunder and shall have authority to may execute and deliver proper releases of all such claims when settled. The board may adopt rules and procedures for handling, negotiating and settlement of all such claims. All such settlements and releases shall be are effected with the knowledge and consent of the attorney general.
(b) If requested by a political subdivision or by a charitable or public service organization, the board is authorized to may provide property and liability insurance to the political subdivisions or such the organizations to insure their property, activities and responsibilities. Such The board is authorized to enter into any necessary contract of insurance to further the intent of this subsection.
The property insurance provided by the board, pursuant to this subsection, may also include insurance on property leased to or loaned to the political subdivision or such the organization which is required to be insured under a written agreement.
The cost of this insurance, as determined by the board, shall be paid by the political subdivision or the organization and may include administrative expenses. All funds received by the board, (including, but not limited to, state agency premiums, mine subsidence premiums, and political subdivision premiums) shall be deposited in the West Virginia consolidated investment pool with the West Virginia state board of investments with the interest income a proper credit to such the property insurance trust fund or liability insurance trust fund, as applicable. In the event of the failure to make timely payment of any premium due by an insured state entity or political subdivision, the board shall notify the secretary of administration, auditor and treasurer of the failure to pay. Until such time that the premium due is paid by the state entity or political subdivision, no funds appropriated to the state entity or political subdivision may be encumbered or expended for the salary or compensation of the head of the state entity or political subdivision.
Political subdivision as used in this subsection shall have has the same meaning as in section three, article twelve-a of this chapter.
Charitable or public service organization as used in this subsection means a bona fide, not for profit, tax-exempt, benevolent, educational, philanthropic, humane, patriotic, civic, religious, eleemosynary, incorporated or unincorporated association or organization or a rescue unit or other similar volunteer community service organization or association, but does not include any nonprofit association or organization, whether incorporated or not, which is organized primarily for the purposes of influencing legislation or supporting or promoting the campaign of any candidate for public office.

NOTE: The purpose of this bill is to provide that when an agency of government covered by state liability insurance through the board of risk fails to pay the premium due for insurance coverage, that the salary of the head of the agency will be withheld from payment until the premium is paid.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.