Senate Bill No. 590

(By Senators Tomblin (Mr. President) and Sprouse
By Request of the Executive)
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[Introduced February 21, 2000; 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 one, chapter five-f of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to compensation of cabinet secretaries and certain state officials; establishing an executive compensation commission and setting forth the duties and responsibilities of the commission; establishing executive compensation tiers and range of compensation levels within such tiers; providing that the governor may establish the compensation level of cabinet secretaries and certain state officials within such tiers; and limiting the number of times the governor may set the compensation level for a cabinet secretary or a state official.

Be it enacted by the Legislature of West Virginia:
That section three, article one, chapter five-f of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 1. GENERAL PROVISIONS.
§5F-1-3. Oath, bond; compensation of persons appointed as secretary; executive compensation commission; executive compensation tiers; governor's authority to set compensation within legislative tier.

(a) Each person appointed to serve as a secretary shall take the oath or affirmation prescribed by section five, article four of the constitution, and such oath shall be certified by the person who administers the same and filed in the office of the secretary of state.
(b) Each person so appointed as secretary shall give bond in the penalty of twenty-five thousand dollars conditioned for the faithful performance of the duties of the office, which bond shall be approved by the attorney general as to form and by the governor as to sufficiency. The surety of such bond may be a bonding or surety company, in which case the premium shall be paid out of the appropriation made for the administration of the department.
(c) Each secretary shall receive a salary of seventy thousand dollars per year. Beginning the first day of July, one thousand nine hundred ninety-nine, the secretary of the department of health and human resources shall receive an annual salary of eighty-five thousand dollars.
There is hereby created an executive compensation commission composed of three members, one of whom shall be the secretary of administration, one of whom shall be appointed by the governor from the names of two or more nominees submitted by the president of the Senate, and one of whom shall be appointed by the governor from the names of two or more nominees submitted by the speaker of the House of Delegates. The names of such nominees shall be submitted to the governor by not later than the first day of June in the year two thousand, and the appointment of such members shall be made by the governor by not later than the first day of July in the year two thousand. The members appointed by the governor shall have had significant business management experience at the time of their appointment and shall serve without compensation other than reimbursement for their reasonable expenses necessarily incurred in the performance of their commission duties. Beginning with the regular session of the Legislature, two thousand four, and every four years thereafter, the commission shall review the compensation tiers established in this section for cabinet secretaries and listed appointed officers. Following this review, but not later than the twenty-first day of such regular session, the commission shall submit an executive compensation report to the Legislature to include specific recommendations for adjusting the compensation set out in such tiers. The recommendation may be in the form of a bill to be introduced in each house to amend this section to incorporate the recommended adjustments.
(d) The salary and expenses necessary for each secretary and all expenditures for personal services for the office of secretary shall be paid from and within existing appropriations made to the agencies and boards transferred to the department headed by the secretary, and revised expenditure schedules shall be submitted to the commissioner of finance and administration and the legislative auditor stating the amount and source of funds to be expended: Provided, That for fiscal years beginning the first day of July, one thousand nine hundred eighty-nine, such amounts shall follow the procedures described in chapter five-a of this code.
The governor may establish the salary within the range of the compensation levels within each tier for each secretary and appointed officer. The governor may not establish a salary for a secretary or an appointed officer above or below the applicable tier.
(e) Effective the first day of July, two thousand, the governor may establish the salary of each cabinet secretary and listed appointed officer within the range of the compensation levels within each tier as follows:
(1)
TIER 1

CABINET SECRETARY

Each secretary shall continue to be appointed in the manner prescribed in this code. Effective the first day of July, two thousand, notwithstanding any other provision of this code, each secretary shall be paid an annual salary within the range of the compensation levels set out below as designated by the governor.
COMMISSIONER, DIVISION OF HIGHWAYS

The commissioner of the division of highways shall continue to be appointed in the manner prescribed in this code. Effective the first day of July, two thousand, notwithstanding any other provision of this code, the administrator of the division of highways shall be paid an annual salary within the range of the compensation levels set out below as designated by the governor.
CABINET OFFICERS

Each cabinet officer shall continue to be appointed in the manner prescribed in this code. Effective the first day of July, two thousand, notwithstanding any other provision of this code, the listed cabinet officers shall be paid an annual salary within the range of the compensation levels set out below as designated by the governor. These cabinet officers are: Commissioner, bureau of employment programs; director, division of environmental; protection; commissioner, bureau of senior services; director of tourism; and commissioner, division of tax.
Compensation levels:
$85,000.00 $105,000.00
(2)
TIER 2

APPOINTED OFFICERS

Each of the following appointive state officers named in this subdivision shall be appointed by the governor, by and with the advice and consent of the Senate. Each officer shall serve at the will and pleasure of the governor for the term for which the governor was elected and until such officer's successor has been appointed and qualified. Each appointive state officer shall be subject to the existing qualifications for holding the 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. Effective the first day of July, two thousand, notwithstanding any other provision of this code, each appointive state officer listed in this subdivision shall be paid an annual salary within the range of the compensation levels set out below as designated by the governor. The state appointive officers within this compensation tier are: Administrator, division of health; commissioner, division of corrections; director, division of natural resources; superintendent, state police; administrator, lottery division; director, public employees insurance agency; administrator, alcohol beverage control commission; commissioner, division of motor vehicles; director, division of personnel; adjutant general; chairman, health care authority; and members, health care authority.
OTHER APPOINTED OFFICERS
Each of the following state officers shall continue to be appointed in the manner prescribed in this code. Effective the first day of July, two thousand, notwithstanding any other provision of this code, each appointive state officer listed in this subdivision shall be paid an annual salary within the range of the compensation levels set out below as designated by the governor. The state officers within this compensation tier are: Director, division of rehabilitation services; executive director, educational broadcasting authority; executive secretary, library commission; executive director, regional jail and correctional facility authority; chairman and members of the public service commission; and director of emergency services.
Compensation levels:
$65,000.00$85,000.00
(3)
TIER 3
APPOINTED OFFICERS
Each of the following state officers shall continue to be appointed by the governor, by and with the advice and consent of the Senate. Each officer shall serve at the will and pleasure of the governor for the term for which the governor was elected and until such officer's successor has been appointed and qualified. Each appointive state officer shall be subject to the existing qualifications for holding the 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. Effective the first day of July, two thousand, notwithstanding any other provision of this code, each appointive officer listed in this subdivision shall be paid an annual salary within the range of the compensation levels set out below as designated by the governor. The state appointive officers within this compensation tier are: Administrator, division of human services; executive director, human rights commission; director, division of veterans affairs; director, office of miner's health safety and training; commissioner, division of banking; commissioner, division of insurance; commissioner, division of culture and history; commissioner, division of labor; director, prosecuting attorneys institute; and director, board of risk and insurance management.
OTHER APPOINTED OFFICERS
Each of the following state officers shall continue to be appointed in the manner prescribed in this code. Effective the first day of July, two thousand, notwithstanding any other provision of this code, each appointive state officer listed in this subdivision shall be paid an annual salary within the range of the compensation levels set out below as designated by the governor. The state officers within this compensation tier are: Commissioner, oil and gas conservation commission; director, geological and economic survey; executive director, water development authority; executive director, public defender services; director, state rail authority; and chairman and members of the parole board.
Compensation levels:
$45,000.00$65,000.00
(4)
TIER 4

Each of the following appointive state officers shall be appointed by the governor, by and with the advice and consent of the Senate. Each officer shall serve at the will and pleasure of the governor for the term for which the governor was elected and until such officer's successor has been appointed and qualified. Each appointive state officer shall be subject to the existing qualifications for holding the 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. Effective the first day of July, two thousand, notwithstanding any other provision of this code, each appointive state officer listed in this subdivision shall be paid an annual salary within the range of the compensation levels set out below as designated by the governor. The state appointive officers within this compensation tier are: Members, employment security review board; members, workers' compensation appeal board; chairman, racing commission; executive secretary, women's commission; and director, hospital finance authority.
Compensation levels:
$10,000.00$45,000.00
(f) Except when filling a vacancy, the governor may not set the compensation level of any one secretary or state official listed in this section more than once in any fiscal year.
(g) Until the first day of July, two thousand, the salaries of the state officers listed in section two-a, article seven, chapter six of this code shall be governed by the provisions of that section. After the first day of July, two thousand, the salaries of all such officers shall be governed by the provisions of this section.

NOTE: The purpose of this bill is to establish an executive compensation commission and set forth the duties and responsibilities of the commission. The bill establishes legislative compensation tiers and ranges of compensation within such tiers. The Governor is authorized to establish the compensation level of cabinet secretaries and certain state officials within the range of compensation for each tier.

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