SB444 HFIN AM 4-10
The Committee on Finance moves to amend the bill on page one,
by striking out everything after the enacting clause, and inserting
in lieu thereof the following:
"That §12-1-12d of the Code of West Virginia, 1931, as
amended, be amended and reenacted; that §18B-2A-1 and §18B-2A-3 of
said code be amended and reenacted; that §18B-7-11 of said code be
amended and reenacted; and that §18B-19-6 of said code be amended
and reenacted, all to read as follows:
CHAPTER 12. PUBLIC MONEYS AND SECURITIES.
ARTICLE 1. STATE DEPOSITORIES.
§12-1-12d. Investments by Marshall University and West Virginia
(a) Notwithstanding any provision of this article to the
contrary, the governing boards of Marshall University and West
Virginia University each may invest certain funds with its
respective nonprofit foundation that has been established to
receive contributions exclusively for that university and which
exists on January 1, 2005.
Any such The investment is subject to
the limitations of this section.
(b) A governing board, through its chief financial officer may
enter into agreements, approved as to form by the State Treasurer,
for the investment by its foundation of certain funds subject to
their administration. Any interest or earnings on the moneys
invested is retained by the investing university.
(c) Moneys of a university that may be invested with its
foundation pursuant to this section are those subject to the
administrative control of the university that are collected under
an act of the Legislature for specific purposes and do not include
any funds made available to the university from the State General
Revenue Fund or the funds established in sections eighteen or
eighteen-a, article twenty-two, chapter twenty-nine of this code.
Moneys permitted to be invested under this section may be
aggregated in an investment fund for investment purposes.
(d) Of the moneys authorized for investment by this section,
Marshall University and West Virginia University each,
respectively, may have invested with its foundation at any time not
more than the greater of:
(1) $18 million for Marshall University and $25 million for
West Virginia University; or
(2) Sixty-five percent of its unrestricted net assets as
presented in the statement of net assets for the fiscal year end
audited financial reports.
(3) Notwithstanding subdivisions (1) and (2) of this
subsection, with the approval of the Higher Education Policy
Commission, Marshall University may increase the amount invested to
$30 $60 million and West Virginia University may increase the
amount invested to $40 $70 million.
(e) Investments by foundations that are authorized under this
section shall be made in accordance with and subject to the
provisions of the Uniform Prudent Investor Act codified as article six-c, chapter forty-four of this code. As part of its fiduciary
responsibilities, each governing board shall establish investment
policies in accordance with the Uniform Prudent Investor Act for
those moneys invested with its foundation. The governing board
shall review, establish and modify, if necessary, the investment
objectives as incorporated in its investment policies so as to
provide for the financial security of the moneys invested with its
foundation. The governing boards shall give consideration to the
(1) Preservation of capital;
(3) Risk tolerance;
(4) Rate of return;
(7) Liquidity; and
(8) Reasonable cost of fees.
(f) A governing board shall report annually by December 31 to
the Governor and to the Joint Committee on Government and Finance
on the performance of investments managed by its foundation
pursuant to this section.
(g) The amendments to this section in the second extraordinary
session of the Legislature in 2010
shall apply retroactively so
that the authority granted by this section shall be construed as if
that authority did not expire on July 1, 2010.
ARTICLE 2A. INSTITUTIONAL BOARDS OF GOVERNORS.
§18B-2A-1. Findings; composition of boards; terms and
qualifications of members; vacancies; eligibility for
(a) Findings. -
The Legislature finds that the State of West Virginia is
served best when the membership of each governing board includes
(1) The academic expertise and institutional experience of
faculty members and a student of the institution governed by the
(2) The technical or professional expertise and institutional
experience of a classified employee of the institution governed by
(3) An awareness and understanding of the issues facing the
institution governed by the board; and
(4) The diverse perspectives that arise from a membership that
is balanced in terms of gender and varied in terms of race and
(b) Boards of governors established. -
A board of governors is continued at each of the following
institutions: Bluefield State College, Blue Ridge Community and
Technical College, Bridgemont Community and Technical College,
Concord University, Eastern West Virginia Community and Technical
College, Fairmont State University, Glenville State College,
Kanawha Valley Community and Technical College, Mountwest Community and Technical College, Marshall University, New River Community and
Technical College, Pierpont Community and Technical College,
Shepherd University, Southern West Virginia Community and Technical
College, West Liberty University, West Virginia Northern Community
and Technical College, the West Virginia School of Osteopathic
Medicine, West Virginia State University, West Virginia University
and West Virginia University at Parkersburg.
(c) Board membership. -
(1) An appointment to fill a vacancy on the board or
reappointment of a member who is eligible to serve an additional
term is made in accordance with the provisions of this section.
(2) The Board of Governors for Marshall University consists of
sixteen persons. The Board of Governors for West Virginia
University consists of seventeen persons. The boards of governors
of the other state institutions of higher education consist of
(3) Each board of governors includes the following members:
(A) A full-time member of the faculty with the rank of
instructor or above duly elected by the faculty of the respective
(B) A member of the student body in good academic standing,
enrolled for college credit work and duly elected by the student
body of the respective institution; and
(C) A member from the institutional classified employees duly
elected by the classified employees of the respective institution;
(4) For the Board of Governors at Marshall University, thirteen lay members appointed by the Governor, by and with the
advice and consent of the Senate, pursuant to this section;
(5) For the Board of Governors at West Virginia University,
twelve lay members appointed by the Governor, by and with the
advice and consent of the Senate, pursuant to this section, and
(A) The Chairperson of the Board of Visitors of West Virginia
University Institute of Technology;
(B) A full-time faculty member representing the extension
service at the institution or a full-time faculty member
representing the health sciences, selected by the faculty senate.
(6) For each board of governors of the other state
institutions of higher education, nine lay members appointed by the
Governor, by and with the advice and consent of the Senate,
pursuant to this section.
(A) Of the nine members appointed by the Governor, no more
than five may be of the same political party. Of the thirteen
members appointed by the Governor to the governing board of
Marshall University, no more than eight may be of the same
political party. Of the twelve members appointed by the Governor
to the governing board of West Virginia University, no more than
seven may be of the same political party.
(B) Of the nine members appointed by the Governor, at least
five shall be residents of the state. Of the thirteen members
appointed by the Governor to the governing board of Marshall
University, at least eight shall be residents of the state. Of the twelve members appointed by the Governor to the governing board of
West Virginia University, at least seven shall be residents of the
(7) In making lay appointments, the Governor shall consider
the institutional mission and membership characteristics including
(A) The need for individual skills, knowledge and experience
relevant to governing the institution;
(B) The need for awareness and understanding of institutional
problems and priorities, including those related to research,
teaching and outreach;
(C) The value of gender, racial and ethnic diversity; and
(D) The value of achieving balance in gender and diversity in
the racial and ethnic characteristics of the lay membership of each
(d) Board member terms. -
(1) The student member serves for a term of one year. Each
term begins on July 1.
(2) The faculty member serves for a term of two years. Each
term begins on July 1. Faculty members are eligible to succeed
themselves for three additional terms, not to exceed a total of
eight consecutive years.
(3) The member representing classified employees serves for a
term of two years. Each term begins on July 1. Members
representing classified employees are eligible to succeed
themselves for three additional terms, not to exceed a total of eight consecutive years.
(4) The appointed lay citizen members serve terms of
four years each and are eligible to succeed themselves for no more
than one additional term, except that citizen members who are
appointed to fill unexpired terms are eligible to succeed
themselves for two full terms after completing an unexpired term.
(5) A vacancy in an unexpired term of a member shall be filled
for the unexpired term within thirty days of the occurrence of the
vacancy in the same manner as the original appointment or election.
Except in the case of a vacancy, all elections are held and all
appointments are made no later than June 30 preceding the
commencement of the term. Each board of governors shall elect one
of its appointed lay members to be chairperson in June of each
year. A member may not serve as chairperson for more than four
(6) The appointed members of the boards of governors serve
staggered terms of up to four years except that four of the initial
appointments to the governing boards of community and technical
colleges that became independent July 1, 2008, are for terms of two
years and five of the initial appointments are for terms of four
(e) Board member eligibility, expenses. -
(1) A person is ineligible for appointment to membership on a
board of governors of a state institution of higher education under
the following conditions:
(A) For a baccalaureate institution or university, a person is ineligible for appointment who is an officer, employee or member of
any other board of governors; an employee of any institution of
higher education; an officer or member of any political party
executive committee; the holder of any other public office or
public employment under the government of this state or any of its
political subdivisions; an employee of any affiliated research
corporation created pursuant to article twelve of this chapter; an
employee of any affiliated foundation organized and operated in
support of one or more state institutions of higher education; or
a member of the council or commission. This subsection does not
prevent the representative from the faculty, classified employees,
students or the superintendent of a county board of education from
being members of the governing boards.
(B) For a community and technical college, a person is
ineligible for appointment who is an officer, employee or member of
any other board of governors; a member of a board of visitors of
any public institution of higher education; an employee of any
institution of higher education; an officer or member of any
political party executive committee; the holder of any other public
office, other than an elected county office, or public employment,
other than employment by the county board of education, under the
government of this state or any of its political subdivisions; an
employee of any affiliated research corporation created pursuant to
article twelve of this chapter; an employee of any affiliated
foundation organized and operated in support of one or more state
institutions of higher education; or a member of the council or commission. This subsection does not prevent the representative
from the faculty, classified employees or students from being
members of the governing boards.
(2) Before exercising any authority or performing any duties
as a member of a governing board, each member shall qualify as such
by taking and subscribing to the oath of office prescribed by
section five, article IV of the Constitution of West Virginia and
the certificate thereof shall be filed with the Secretary of State.
(3) A member of a governing board appointed by the Governor
may not be removed from office by the Governor except for official
misconduct, incompetence, neglect of duty or gross immorality and
then only in the manner prescribed by law for the removal of the
state elective officers by the Governor.
(4) The members of the board of governors serve without
compensation, but are reimbursed for all reasonable and necessary
expenses actually incurred in the performance of official duties
under this article upon presentation of an itemized sworn statement
(5) The president of the institution shall make available
resources of the institution for conducting the business of its
board of governors. All expenses incurred by the board of
governors and the institution under this section are paid from
funds allocated to the institution for that purpose.
18B-2A-3. Supervision of governing boards; promulgation of rules;
data collection and dissemination.
(a) The governing boards are subject to the supervision of the commission or the council, as appropriate, except in those
instances where specific statutory exceptions are granted by law to
the governing boards of Marshall University and West Virginia
(b) The governing boards of all state institutions of higher
education are subject to the provisions of law that relate to the
administration of personnel matters including, specifically,
articles seven, eight, nine and nine-a of this chapter and to rules
promulgated and adopted in accordance with these provisions.
(c) The Chancellor for Higher Education and the Chancellor for
Community and Technical College Education, under the supervision of
their respective boards, are responsible for the coordination of
policies, purposes and rules of the governing boards and shall
provide for and facilitate sufficient interaction among the
governing boards and between the governing boards and the State
Board of Education to meet the goals and objectives provided in the
compacts and in section one-a, article one and article one-d of
(d) The governing boards and the State Board of Education
shall provide all information requested by the commission and the
council, whether the request is made separately or jointly, in an
appropriate format and in a timely manner.
(1) Each governing board shall cooperate with the West
Virginia Network for Educational Telecomputing (WVNET) in designing
appropriate interfaces with the databases of institutions under its
jurisdiction and shall grant WVNET direct access to these databases.
_____(2) WVNET, on behalf of the commission or council or both,
shall generate reports from the data accessed for the purposes set
forth in section five, article one-a and sections eight and ten,
article one-d of this chapter.
_____(3) All data accessed or received from an institution shall be
treated in a manner consistent with the privacy protections
outlined in section ten, article one-d of this chapter.
ARTICLE 7. PERSONNEL GENERALLY.
§18B-7-11. Employees designated as nonclassified; limits;
exceptions; reports required.
(a) Notwithstanding any provision of this code to the
contrary, by July 1, 2015, the percentage of personnel placed in
the category of nonclassified at a higher education organization
may not exceed twenty percent of the total number of classified and
nonclassified employees of that organization as those terms are
defined in section two, article nine-a of this chapter and who are
eligible for membership in a state retirement system of the State
of West Virginia or other retirement plan authorized by the state.
A higher education organization which has more than twenty
percent of its employees placed in the nonclassified category as
defined by this subsection on July 1, 2011, shall reduce the number
of nonclassified employees to no more than twenty-five percent by
July 1, 2013, and to no more than twenty percent by July 1, 2015,
except as set forth in subsections (b) and (c) of this section.
(b) For the purpose of determining the ratio of nonclassified
employees pursuant to this section, the following conditions apply:
Employees of the commission and the chancellor for higher
education and employees of the council and the chancellor for
community and technical college education are considered as one
(2) Organizations may shall count as faculty or classified
employees, respectively, administrators who retain the right to
return to faculty or classified employee positions, and in the
employee category they are serving in at the time of reporting as
required by subsections (a) and (b), section eight of this article.
Such employees will be counted in their original category at such
time as they exercise their return rights.
(2) Athletic coaches are excluded from calculation of the
ratio. The commission and the council shall include consideration
of this employee category in each review required by section nine
of this article and shall monitor organizations' use of this
category and include this information in the reports required by
subsections (a) and (b), section eight of this article.
(c) An organization may place up to twenty-five percent of the
total number of classified and nonclassified employees of that
organization as defined by this section in the nonclassified
category under the following conditions:
(1) The governing board of an institution votes to approve any
percentage or fraction of a percentage number above twenty percent
and seeks and receives the approval of the commission or council, as appropriate, before increasing the total above twenty percent.
(2) In the case of personnel employed by the commission and
the council, the chancellors jointly shall agree to increase the
percentage number or fraction of a number of nonclassified
employees beyond twenty percent and shall recommend this action to
their respective boards for approval.
(A) The commission and council each shall approve or
disapprove the increase and shall include the vote, as well as
details of the position and justification for placing the position
in the nonclassified category, in its minute record.
(B) The number of nonclassified personnel may not be increased
above twenty percent unless the increase is approved by both the
commission and the council.
(3) (2) Powers and duties of commission and council regarding
nonclassified staff ratios. -
(A) It is the duty of the commission and council jointly to
establish criteria for the purpose of making decisions on approving
or disapproving requests by organizations to exceed the twenty
percent limit for personnel placed in the nonclassified category;
(B) The commission and council shall provide technical
assistance to organizations under their respective jurisdictions in
collecting and interpreting data to ensure that they fulfill the
requirements established by this section. Consideration of these
issues shall be made part of each review required by section nine
of this article and information from the review included in the
reports required by subsections (a) and (b), section eight of this article;
(C) The chancellors shall monitor the progress of the
organizations in meeting the deadlines established in this section
and shall report periodically to the council and commission. The
commission and council shall make a preliminary compliance report
to the Legislative Oversight Commission on Education Accountability
by September 1, 2013, and a final report on organization compliance
to that body by September 1, 2015.
(D) Subject to a joint recommendation by the commission and
the council and subsequent affirmative action by the Legislature to
extend the authority beyond the specified date of termination, the
authority of an organization to place more than twenty percent of
its personnel in the nonclassified category pursuant to this
section expires on July 1, 2016.
(d) The current annual salary of a nonclassified employee may
not be reduced if his or her position is redefined as a classified
position solely to meet the requirements of this section. If such
a nonclassified employee is reclassified, his or her salary does
not constitute evidence of inequitable compensation in comparison
to other employees in the same paygrade.
(e) For the purposes of this section only the commission and
council are not considered higher education organizations.
ARTICLE 19. CAPITAL PROJECTS AND FACILITIES NEEDS.
18B-19-6. Capital project financing.
(a) The commission and governing boards, jointly or singly,
may issue revenue bonds for capital project financing in accordance with section eight, article ten of this chapter.
(b) A governing board may seek funding for and initiate
construction or renovation work only for projects contained in an
approved campus development plan.
(c) A governing board may fund capital improvements on a cash
basis, through bonding or through another financing method that is
approved by the commission and by the council, if appropriate.
If the Any time the cumulative total cost of an
improvement project for any institution, except Marshall University
or West Virginia University, exceeds $1 $2 million, the governing
board first shall obtain the approval of the commission or council,
as appropriate. If the Any time the cumulative total cost of an
improvement project for Marshall University or West Virginia
University exceeds $15 $50 million, the governing board first shall
obtain the approval of the commission.
(2) Prior to approving bonding or any alternative financing
method, the commission, and council if appropriate, shall evaluate
the following issues:
(A) The institution's debt capacity and ability to meet the
debt service payments for the full term of the financing;
(B) The institution's capacity to generate revenue sufficient
to complete the project;
(C) The institution's ability to fund ongoing operations and
(D) The impact of the financing arrangement on students; and
(E) Any other factor considered appropriate.
(d) A governing board shall notify the Joint Committee on
Government and Finance at least thirty days before beginning
construction or renovation work on any capital project in excess of
(e) The commission may pledge all or part of the fees of any
or all state institutions of higher education as part of a system
(f) Any fee or revenue source pledged prior to the effective
date of this section for payment of any outstanding debt remains in
effect until the debt is fully repaid or refunded.".