hdj2005-09-12-06

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Monday, September 12, 2005

The House of Delegates met at 9:30 a.m., and was called to order by the Speaker.
Prayer was offered and the House was led in recitation of the Pledge of Allegiance.
The Clerk proceeded to read the Journal of Sunday, September 11, 2005, being the first order of business, when the further reading thereof was dispensed with and the same approved.
Messages from the Senate
A message from the Senate, by
The Clerk of the Senate, announced the passage by the Senate and requested the concurrence of the House of Delegates in the passage of
S. B. 4018 - "A Bill to amend and reenact §7-7-1 and §7-7-4 of the Code of West Virginia, 1931, as amended, all relating to providing a salary increase for elected county officials; and finding that additional duties have been imposed on county officials which justify the increased compensation"; which was referred to the Committee on Finance.
A message from the Senate, by
The Clerk of the Senate, announced the passage by the Senate and requested the concurrence of the House of Delegates in the passage of
S. B. 4019 - "A Bill to amend and reenact §5-5-1 of the Code of West Virginia, 1931, as amended; to amend said code by adding thereto a new section, designated §18B-8-7; and to amend said code by adding thereto a new section, designated §18B-9-13, all relating to higher education salary increases; providing the salary increment to faculty at state institutions of higher education; and providing methods for allocating certain funds for higher education employee salary increases"; which was referred to the Committee on Finance.
Petitions
Delegates Schoen and Hall presented a petition, signed by twenty-one residents of the 14th District, in support of the passage of S. B. 4019; which was referred to the Committee on Finance.
House Calendar
Third Reading
Com. Sub. for H. B. 402, Requiring the disclosure of electioneering communications and prohibiting political organizations from accepting contributions in excess of one thousand dollars per election; on third reading, coming up in regular order, was, at the request of Delegate Staton, and by unanimous consent, temporarily postponed.
H. B. 407, Providing that department secretaries may transfer employees between departments in certain instances; on third reading, coming up in regular order, was, at the request of Delegate Staton, and by unanimous consent, temporarily postponed.
Com. Sub. for H. B. 408, Relating to the accountability of persons receiving state funds or grants; on third reading, coming up in regular order, was, on motion of Delegate Staton, laid over one day, retaining its place on the calendar.
Com. Sub. for H. B. 409, Relating to salaries for teachers and school service personnel; on third reading, coming up in regular order, was, on motion of Delegate Staton, laid over one day, retaining its place on the calendar.
Com. Sub. for H. B. 411, Relating to amending certain provisions of the code involving horse and dog racing and distribution of certain proceeds; on third reading, coming up in regular order, was read a third time.
The question being on the passage of the bill, the yeas and nays were taken (Roll No. 817), and there were--yeas 93, nays 6, absent and not voting 1, with the nays and absent and not voting being as follows:
Nays: Armstead, Howard, Louisos, Sobonya, Stevens and Walters.
Absent And Not Voting: Ferrell.
So, a majority of the members present and voting having voted in the affirmative, the Speaker declared the bill (Com. Sub. for H. B. 411) passed.
On motion of Delegates Doyle and DeLong, the title of the bill was amended to read as follows:
Com. Sub. for H. B. 411 - "A Bill to amend and reenact §19-23-9, §19-23-13b and §19-23-13c of the Code of West Virginia, 1931, as amended; and to amend and reenact §29-22A-10b of said code, all relating to amending certain provisions of the code involving horse and dog racing and distribution of certain proceeds; providing special funds, to be established by the Racing Commission, to be used for the payment of breeders' awards, restrictive races and stakes purses; deleting obsolete provisions; deleting the stated objective for the Fund to aid in the rejuvenation and development of horse tracks in the state for capital improvements and other purposes; providing that the Commission establish funds and accounts for each association and licensee rather than holding funds in deposit in one fund; deleting current provisions concerning the distribution of balances remaining in breeders and raisers, sire owners and purse supplement funds; clarifying the meaning of the phrase 'sufficient horses' for purposes of pari-mutuel thoroughbred horse tracks' provision of restricted races; providing that the requirement increasing certain purses in restricted races is only applicable to thoroughbred racetracks that have participated in the West Virginia Thoroughbred Development Fund for more than four consecutive years; providing the Racing Commission may transfer funds back to the general purse fund if less than seventy-five percent of the restricted races fail to receive enough entries; deleting the provision that prohibits associations and licensees who qualify for alternate tax provisions contained in subsection (b), section ten, article twenty-three, chapter nineteen of said code from eligibility for treatment under the provisions of section thirteen-b of said article; providing that on the first day of January, two thousand six, licensed racing associations must have a West Virginia Thoroughbred Racing Breeders' Program; clarifying disbursement of funds for the benefit of the West Virginia Breeders' Classic; requiring Racing Commission to conduct a study of the adequacy of funding of certain Thoroughbred Development Funds and requiring a report thereon to the Legislature; allowing for different uses of Thoroughbred Development Funds by thoroughbred racing tracks based upon differences in circumstance; deleting provisions of the racetrack video lottery act exempting certain licensees from paying into the thoroughbred and greyhound breeders funds; increasing maximum amount from the general purse fund for purposes of restricted races for the thoroughbred racetrack which participated in the thoroughbred development fund for at least four consecutive years prior to the thirty-first day of December, one thousand nine hundred ninety-two; by making technical corrections and providing reversion of racetrack video lottery excess net terminal income diverted from the racetrack purse funds to workers' compensation debt reduction fund pursuant to Senate Bill 1005 which took effect January 29, 2005, to revert to racetrack purse after a total amount of eleven million dollars of net terminal income and excess net terminal income has been diverted to each fiscal year from the purse funds to the workers' compensation debt."
Delegate Staton moved that the bill take effect from its passage.
On this question, the yeas and nays were taken (Roll No. 818), and there were--yeas 96, nays 2, absent and not voting 2, with the nays and absent and not voting being as follows:
Nays: Armstead and Sobonya.
Absent And Not Voting: Ferrell and Leggett.
So, two thirds of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (Com. Sub. for H. B. 411) takes effect from its passage.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates and request concurrence therein.
Com. Sub. for H. B. 412, Relating generally to Workers' Compensationon third reading, coming up in regular order, was read a third time.
The question being on the passage of the bill, the yeas and nays were taken (Roll No. 819), and there were--yeas 99, nays none, absent and not voting 1, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell.
So, a majority of the members present and voting having voted in the affirmative, the Speaker declared the bill (Com. Sub. for H. B. 412) passed.
Delegate Staton moved that the bill take effect from its passage.
On this question, the yeas and nays were taken (Roll No. 820), and there were--yeas 99, nays none, absent and not voting 1, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell.
So, two thirds of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (Com. Sub. for H. B. 412) takes effect from its passage.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates and request concurrence therein.
Com. Sub. for H. B. 413, Providing an increase in the annual base salary of all sworn state police personnel; on third reading, coming up in regular order, was read a third time.
The question being on the passage of the bill, the yeas and nays were taken (Roll No. 821), and there were--yeas 98, nays 1, absent and not voting 1, with the nays and absent and not voting being as follows:
Nays: Rowan.
Absent And Not Voting: Ferrell.
So, a majority of the members present and voting having voted in the affirmative, the Speaker declared the bill (Com. Sub. for H. B. 413) passed.
Delegate Staton moved that the bill take effect November 1, 2005.
On this question, the yeas and nays were taken (Roll No. 822), and there were--yeas 99, nays none, absent and not voting 1, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell.
So, two thirds of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (Com. Sub. for H. B. 413) takes effect November 1, 2005.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates and request concurrence therein.
Com. Sub. for H. B. 414, Supplementing and amending chapter sixteen, Acts of the Legislature, regular session, two thousand five, as amended known as the budget bill, providing for salary increases for public employeeson third reading, coming up in regular order, was read a third time.
The Speaker inquired if there were members seeking to be excused from voting under the provisions of House Rule 49, and numerous members of the House indicated affirmatively.
The Speaker then requested any member having a relative who may possibly benefit from the passage of the bill to so indicate, and those members were Delegates Argento, Armstead, Boggs, Caputo, Crosier, Frich, Manchin, Marshall, Michael, Palumbo, Paxton, Perry, Pino, Poling, Proudfoot, Roberts, Schoen, Spencer, Ron Thompson, Tucker, Varner, Walters, Webster and Yost.
To the requests of the abovementioned members, the Speaker replied that they demonstrated no direct pecuniary interest in the bill and further stated that the passage of the bill simply provided moneys for pay raises but did not mandate that such pay raises be given, and refused to excuse the members from voting.
The Speaker then requested members having a spouse who was a public employee to so indicate and Delegate Argento, Poling, Webster and Speaker Kiss so indicated.
Unanimous consent having been obtained, it was agreed by all member of the House that the ruling of the Speaker concerning who must vote under the provisions of House Rule 49 would be applicable to himself.
The Speaker observed that while the passage of the bill may create the possibility of pay raises, such was not a certainty and stated that he would require the aforementioned also to vote on the bill.
Delegate Armstead announced that his brother was a public employee and inquired if the provisions of Rule 49 applied to him.
The Speaker stated that the situation demonstrated no direct pecuniary interest in the passage of the bill and, therefore, Delegate Armstead was required to vote.
On the passage of the bill, the yeas and nays were taken (Roll No. 823), and there were--yeas 98, nays 1, absent and not voting 1, with the nays and absent and not voting being as follows:
Nays: Lane.
Absent And Not Voting: Ferrell.
So, a majority of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (Com. Sub. for H. B. 414) passed.
Delegate Staton moved that the bill take effect from its passage.
On this question, the yeas and nays were taken (Roll No. 824), and there were--yeas 99, nays none, absent and not voting 1, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell.
So, two thirds of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (Com. Sub. for H. B. 414) takes effect from its passage.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates and request concurrence therein.
Com. Sub. for H. B. 415, Supplementing, amending, reducing and increasing items of the existing appropriation from the Department of Agriculture, agriculture fees fund; on third reading, coming up in regular order, was, on motion of Delegate Staton, laid over one day, retaining its place on the calendar.
H. B. 416, Making a supplementary appropriation to the Department of Agriculture -West Virginia Agricultural Land Protection Authority; on third reading, coming up in regular order, was, on motion of Delegate Staton, laid over one day, retaining its place on the calendar.
H. B. 419, Supplementing, amending reducing and increasing items of the existing appropriations from the state fund, to the Department of Health and Human Services- Division of Human Services, and higher education, higher education policy commission; on third reading, coming up in regular order, was, on motion of Delegate Staton, laid over one day, retaining its place on the calendar.
S. B. 4010, Relating to proposed merger of Teachers' Defined Contribution Retirement System with State Teachers Retirement System; on third reading, coming up in regular order, was, at the request of Delegate Staton, and by unanimous consent, temporarily postponed.
S. B. 4014, Making supplementary appropriation to Lottery Commission, Excess Lottery Revenue Fund Surplus; on third reading, coming up in regular order, with the right to amend, was reported by the Clerk.
An amendment, recommended by the Committee on Finance, was reported by the Clerk and adopted, amending the bill on page two, line twenty-three, following the word "Unclassified" by striking the word "Total-".
The bill was then read a third time.
On the passage of the bill, the yeas and nays were taken (Roll No. 825), and there were--yeas 98, nays 1, absent and not voting 1, with the nays and absent and not voting being as follows:
Nays: Armstead.
Absent And Not Voting: Ferrell.
So, a majority of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (S. B. 4014) passed.
Delegate Staton moved that the bill take effect from its passage.
On this question, the yeas and nays were taken (Roll No. 826), and there were--yeas 99, nays none, absent and not voting 1, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell.
So, two thirds of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (S. B. 4014) takes effect from its passage.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates and request concurrence therein.
S. B. 4015, Supplementing, amending, reducing and increasing items of existing appropriation from Department of Agriculture, Fees Fund; on third reading, coming up in regular order, was read a third time.
On the passage of the bill, the yeas and nays were taken (Roll No. 827), and there were--yeas 99, nays none, absent and not voting 1, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell.
So, a majority of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (S. B. 4015) passed.
Delegate Staton moved that the bill take effect from its passage.
On this question, the yeas and nays were taken (Roll No. 828), and there were--yeas 99, nays none, absent and not voting 1, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell.
So, two thirds of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (S. B. 4015) takes effect from its passage.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates.
S. B. 4016, Making supplementary appropriation to Department of Agriculture, Agricultural Land Protection Authority; on third reading, coming up in regular order, was read a third time.
On the passage of the bill, the yeas and nays were taken (Roll No. 829), and there were--yeas 99, nays none, absent and not voting 1, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell.
So, a majority of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (S. B. 4016) passed.
Delegate Staton moved that the bill take effect from its passage.
On this question, the yeas and nays were taken (Roll No. 830), and there were--yeas 99, nays none, absent and not voting 1, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell.
So, two thirds of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (S. B. 4016) takes effect .
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates.
S. B. 4017, Supplementing, amending, reducing and increasing items of existing appropriations from State Fund, General Revenue, to Division of Human Services and Higher Education Policy Commission; on third reading, coming up in regular order, was read a third time.
On the passage of the bill, the yeas and nays were taken (Roll No. 831), and there were--yeas 99, nays none, absent and not voting 1, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell.
So, a majority of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (S. B. 4017) passed.
Delegate Staton moved that the bill take effect from its passage.
On this question, the yeas and nays were taken (Roll No. 832), and there were--yeas 99, nays none, absent and not voting 1, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell.
So, two thirds of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (S. B. 4017) takes effect from its passage.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates.
Second Reading
Com. Sub. for H. B. 417, Making a supplementary appropriation to the West Virginia Conservation Agency, to the Department of Health and Human Resources, Division of Human Services, etc.; on second reading, coming up in regular order, was read a second time.
Delegate Frich moved to amend the bill on page five, section one, line forty-six, by striking all of lines forty-six through line sixty-one on page six.
And,
On page eight, section one, line one hundred eight, by striking the following: "$ 15,000,000" and inserting in lieu thereof the following: "$ 17,000,000".
On the adoption of the amendment, Delegate Frich demanded the yeas and nays, which demand was sustained.
The yeas and nays having been ordered, they were taken (Roll No. 833), and there were--yeas 29, nays 70, absent and not voting 1, with the yeas and absent and not voting being as follows:
Yeas: Armstead, Azinger, Blair, Border, Canterbury, Carmichael, Duke, Ellem, Evans, Frich, Hamilton, Howard, Lane, Leggett, Longstreth, Louisos, Overington, Roberts, Romine, Rowan, Schadler, Schoen, Sobonya, Stevens, Sumner, Tansill, Trump, Tucker and Walters.
Absent And Not Voting: Ferrell.
So, a majority of the members present and voting not having voted in the affirmative, the amendment was not adopted.
There being no further amendments, the bill was then ordered to engrossment and third reading.
H. B. 420, Expiring funds into the unappropriated surplus balance in the state fund, general revenue, and supplementing and increasing an item of appropriation in the aforesaid account; on second reading, was read a second time and advanced to third reading, and the rule was suspended to permit the offering and consideration of amendments thereto on third reading.
H. B. 422, Supplemental appropriation to the Department of Administration, consolidated public retirement board; on second reading, was read a second time and advanced to third reading, and the rule was suspended to permit the offering and consideration of amendments thereto on third reading.
S. B. 4006, Relating to accountability of persons receiving state funds or grants; on second reading, coming up in regular order, was read a second time.
On motion of Delegate Staton, the bill was amended on page two, following the enacting clause, by striking out the remainder of the bill and inserting in lieu thereof the following:
"That §12-4-14 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 4. ACCOUNTS, REPORTS AND GENERAL PROVISIONS.

§12-4-14. Accountability of persons receiving state funds or grants; sworn statements by volunteer fire departments; criminal penalties.

(a) For the purposes of this section:
(1) 'Grantor' means a state spending unit awarding a state grant.
(2) 'Person' includes any corporation, partnership, association, individual or other legal entity. The term 'person' does not include a state spending unit or a local government as defined in section one-a, article nine, chapter six of this code.
(3) 'Report' means ~~a compliance attestation engagement~~ an engagement, such as an agreed- upon procedures engagement or other attestation engagement, performed and prepared by a certified public accountant to test whether state grants were spent as intended. The term 'report' does not mean a full-scope audit or review of the person receiving state funds.
(4) 'State grant' means funding provided by a state spending unit, regardless of the original source of the funds, to a person upon application for a specific purpose. The term 'state grant' does not include: (A) Payments for goods and services purchased by a state spending unit; (B) compensation to state employees and public officials; (C) reimbursements to state employees and public officials for travel or incidental expenses; (D) grants of student aid; (E) government transfer payments; (F) direct benefits provided under state insurance and welfare programs; (G) funds reimbursed to a person for expenditures made for qualified purposes when receipts for the expenditures are required prior to receiving the funds: Provided, That notwithstanding the provisions of this subdivision, funding provided pursuant to section twelve, article two, chapter five-b is included within the term 'state grant'; ~~and (G)~~ (H) retirement benefits; and (I) federal pass-through funds that are subject to the federal Single Audit Act Amendments of 1996, 31 U.S.C. 7501, et seq. The term 'state grant' does not include formula distributions to volunteer and part-volunteer fire departments made pursuant to sections fourteen-d and thirty-three, article three, chapter thirty-three of this code and section ~~sixteen-a~~ seven, article ~~twelve~~ twelve-c of said chapter.
(b)(1) Any person who receives one or more state grants in the amount of twenty-five thousand dollars or more in the aggregate in ~~a calendar~~ a person's fiscal year shall file with the grantor a report of the disbursement of the state grant funds. When the grantor causes an audit to be conducted of the grant funds, the audit is performed using generally accepted government auditing standards and a copy of the audit is available for public inspection, no report is required to be filed under this section. An audit performed that complies with Office of Management and Budget circular A-133, as published on June 27, 2003, and submitted within the period provided in this section may be substituted for the report.
(2) Any person who receives a state grant in an amount less than twenty-five thousand dollars or who is not required to file a report because an audit has been done as provided by subdivision (1) of this subsection shall file with the grantor a sworn statement of expenditures made under the grant.
(3) ~~The report~~ Reports and sworn statements of expenditures required by ~~subdivision~~ subdivisions (1) and (2) of this subsection shall be filed within two years of the end of the ~~calendar~~ person's fiscal year in which the disbursement of state grant funds by the grantor was made. The report shall be made by an independent certified public accountant at the cost of the person receiving the state grant. State grant funds may be used to pay for the report if the applicable grant provisions allow. The scope of the report is limited to showing that the state grant funds were spent for the purposes intended when the grant was made.
(c)(1) Any person failing to file a required report or sworn statement of expenditures within the two-year period provided in subdivision ~~(2)~~ (3), subsection (b) of this section for ~~any~~ state grant funds disbursed after the first day of July, two thousand three, is barred from subsequently receiving state grants until the person has filed the report or sworn statement and is otherwise in compliance with the provisions of this section.
(2) Any grantor of a state grant shall report any persons failing to file a required report or sworn statement of expenditures within the required ~~time~~ period provided in subdivision ~~(2)~~ (3), subsection (b) of this section for ~~any~~ a state grant disbursed after the first day of July, two thousand three, to the Legislative Auditor for purposes of debarment from receiving state grants.
(d)(1) The state agency administering the state grant shall notify the grantee of the reporting requirements set forth in this section.
~~(2)~~ ~~Any state agency administering a state grant shall, in the manner designated by the Legislative Auditor, notify the Legislative Auditor of the~~ amount of funds to be disbursed, the identity of the person authorized to receive the funds and the purpose and nature of the state grant within thirty days of making the state grant or authorizing the disbursement of the funds. ~~Provided,~~ ~~That If the state grant was awarded prior to the effective date of the amendment and reenactment of this section in the year,~~ ~~two thousand five, the grantor shall provide the information required by this section within ninety days of the effective date.~~
~~(3)~~ (2) All grantors ~~making~~ awarding state grants ~~that would~~ ~~be subject to the report requirements of this section~~ shall, prior to awarding a state grant, take reasonable actions to verify that the person is not barred from receiving state grants pursuant to this section. The verification process shall, at a minimum, include:
(A) A requirement that the person seeking the state grant provide a sworn statement from an authorized representative that the person has filed all reports and sworn statements of expenditures for state grants received as required under this section; and
(B) Confirmation from the Legislative Auditor by the grantor that the person has not been identified as one who has failed to file a report or sworn statement of expenditures under this section. Confirmation may be accomplished by accessing the computerized database provided in ~~subdivision (4) of this~~ subsection (e) of this section.
(4) The Legislative Auditor shall maintain a list identifying persons who have failed to file reports required by this section. The list may be in the form of a computerized database that may be accessed by state agencies over the Internet.
~~(e)~~ (3) If any report or sworn statement of expenditures performed pursuant to the requirements of this section provides evidence of a reportable condition or violation, the grantor shall provide a copy of the report or sworn statement of expenditures to the Legislative Auditor within thirty days of receipt by the grantor.
~~(f)~~ (4) The grantor shall maintain copies of reports and sworn statements of expenditures required by this section and make the reports or sworn statements of expenditures available for public inspection, as well as for use in audits and performance reviews of the grantor.
(5) The Secretary of the Department of Administration has authority to promulgate procedural and interpretive rules and propose legislative rules for promulgation in accordance with the provisions of article three, chapter twenty-nine-a of this code to assist in implementing the provisions of subsections (a), (b), (c) and (d) of this section.
(e)(1) Any state agency administering a state grant shall, in the manner designated by the Legislative Auditor, notify the Legislative Auditor of the maximum amount of funds to be disbursed, the identity of the person authorized to receive the funds, the person's fiscal year and federal employer identification number and the purpose and nature of the state grant within thirty days of making the state grant or authorizing the disbursement of the funds, whichever is later. If the state grant was awarded prior to the first day of October, two thousand five, the grantor shall provide the information required by this section by the first day of December, two thousand five.
(2) The State Treasurer shall provide the Legislative Auditor the information concerning formula distributions to volunteer and part-volunteer fire departments made pursuant to sections fourteen-d and thirty-three, article three, chapter thirty-three of this code and section seven, article twelve-c of said chapter, the Legislative Auditor requests and in the manner designated by the Legislative Auditor.
(3) The Legislative Auditor shall maintain a list identifying persons who have failed to file reports and sworn statements required by this section. The list may be in the form of a computerized database that may be accessed by state agencies over the Internet.
~~(g) Reports~~ ~~of state grants~~ ~~not required under the provisions of this section~~
(f) An audit of state grant funds may be authorized at any time by the Joint Committee on Government and Finance to be conducted by the Legislative Auditor at no cost to the grantee.
~~(h)~~ (g)(1) Volunteer and part-volunteer fire departments ~~may satisfy the report requirements of this section by submitting~~ receiving formula distributions pursuant to sections fourteen-d and thirty-three, article three, chapter thirty-three of this code and section seven, article twelve-c of said chapter shall either:
(A) File a report, as defined in subdivision (3), subsection (a) of this section with the Legislative Auditor within the same time frames as are required for sworn statements of annual expenditures to be filed under this section. The report shall be made by an independent certified public accountant at the cost of the volunteer or part-volunteer fire department. The scope of the report is limited to showing that the funds distributed were spent for authorized purposes; or
(B) File a sworn statement of annual expenditures to with the Legislative Auditor on or before the fourteenth day of February of each year. The sworn statement of expenditures shall be signed by the chief or director of the volunteer fire department and shall be made under oath and acknowledged before a notary public.
(2) If the sworn statement or report required by this subsection is not ~~submitted~~ filed on or before the fifteenth day of May, unless the time period is extended by the Legislative Auditor, the Legislative Auditor may conduct ~~a report~~ an audit of the volunteer or part-volunteer fire department.
(3) If the sworn statement of annual expenditures or report required by this subsection is not filed with the Legislative Auditor by the first day of July, unless the time period is extended by the Legislative Auditor, the Legislative Auditor shall notify the State Treasurer who shall withhold payment of any amount that would otherwise be distributed to the fire department under the provisions of sections fourteen-d and thirty-three, article three, chapter thirty-three of this code and section ~~sixteen-a~~ seven, article ~~twelve~~ twelve-c of said chapter until the report is complete. Moneys withheld pursuant to this subdivision are to be deposited in the special revenue account created in the State Treasury in subdivision (4) of this subsection.
(4) The Legislative Auditor may assign an employee or employees to perform audits or reviews at the direction of the Legislative Auditor of the disbursement of state grant funds to volunteer fire departments. The volunteer fire department shall cooperate with the Legislative Auditor, the Legislative Auditor's employees and the State Auditor in performing their duties under this section. If the Legislative Auditor determines a volunteer fire department is not cooperating, the Legislative Auditor shall notify the State Treasurer who shall withhold payment of any amount that would otherwise be distributed to the fire department under the provisions of sections fourteen-d and thirty-three, article three, chapter thirty-three of this code and section ~~sixteen-a~~ seven, article ~~twelve~~ twelve-c of said chapter until the Legislative Auditor informs the Treasurer that the fire department has cooperated as required by this section. The State Treasurer shall pay the amount withheld into a special revenue account hereby created in the State Treasury and designated the 'Volunteer Fire Department Audit Account.' If, after one year from payment of the amount withheld into the special revenue account, the Legislative Auditor informs the State Treasurer of continued noncooperation by the fire department, the State Treasurer shall pay the amount withheld to the fund from which it was distributed to be redistributed the following year pursuant to the applicable provisions of those sections.
(5) Whenever the State Auditor performs an audit of a volunteer fire department for any purpose the Auditor shall also conduct an audit of other state funds received by the fire department pursuant to sections fourteen-d and thirty-three, article three, chapter thirty-three of this code and section ~~sixteen-a~~ seven, article ~~twelve~~ twelve-c of said chapter. The Auditor shall send a copy of the audit to the Legislative Auditor. The Legislative Auditor may accept an audit performed by the Auditor in lieu of performing ~~a report~~ an audit under this section.
(6) If the Legislative Auditor is notified by a grantor that a fire department has failed to file a report or a sworn statement of expenditures for a state grant it received, the Legislative Auditor shall notify the Treasurer who shall withhold further distributions to the fire department in the same manner provided in subdivision (3) of this subsection.
~~(i)~~ (h) Any report submitted pursuant to the provisions of this section may be filed electronically in accordance with the provisions of article one, chapter thirty-nine-a of this code.
~~(j)~~ (i) Any person who files a fraudulent sworn statement of expenditures under subsection (b) or (g) of this section, a fraudulent sworn statement under subsection (d) of this section, or a fraudulent report under this section is guilty of a felony and, upon conviction thereof, shall be fined not less than one thousand dollars nor more than five thousand dollars or imprisoned in a state correctional facility for not less than one year nor more than five years, or both fined and imprisoned."
The bill was then ordered to third reading.
Delegate Staton moved that the constitutional rule requiring the bill to be fully and distinctly read on three different days be dispensed with.
On this question, the yeas and nays were taken (Roll No. 834), and there were--yeas 92, nays 7, absent and not voting 1, with the nays and absent and not voting being as follows:
Nays: Border, Frich, Lane, Overington, Porter, Sobonya and Stevens.
Absent And Not Voting: Ferrell.
So, four fifths of the members present having voted in the affirmative, the constitutional rule was dispensed with.
The bill was then read a third time and put upon its passage.
The question being on the passage of the bill, the yeas and nays were taken (Roll No. 835), and there were--yeas 98, nays 1, absent and not voting 1, with the nays and absent and not voting being as follows:
Nays: Duke.
Absent And Not Voting: Ferrell.
So, a majority of the members present and voting having voted in the affirmative, the Speaker declared the bill (S. B. 4006) passed.
On motion of Delegate Staton, the title of the bill was amended to read as follows:
S. B. 4006 - "A Bill to amend and reenact §12-4-14 of the Code of West Virginia, 1931, as amended, relating to accountability of persons receiving state funds or grants; requiring reports or sworn statements for certain state funds or grants; giving Secretary of the Department of Administration rule-making authority; providing for the barring of persons from receiving state grants or funds; providing for the submission of information on sworn statements or reports to the Legislative Auditor; authorizing the Legislative Auditor to perform audits in certain circumstances; requiring the Legislative Auditor to inform the State Treasurer if certain reports or sworn statements are not submitted within a certain period; and providing criminal penalties for filing a fraudulent sworn statement of expenditures, a fraudulent sworn statement or a fraudulent report."
Delegate Staton moved that the bill take effect from its passage.
On this question, the yeas and nays were taken (Roll No. 836), and there were--yeas 99, nays none, absent and not voting 1, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell.
So, two thirds of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (S. B. 4006) takes effect from its passage.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates and request concurrence therein.
S. B. 4008, Relating to salaries for teachers and school service personnel; on second reading, coming up in regular order, was read a second time and ordered to third reading.
At 11:28 p.m., on motion of Delegate Staton, the House of Delegates recessed until 5:00 p.m., and reconvened at that time.
Messages From the Senate
A message from the Senate, by
The Clerk of the Senate, announced that the Senate had passed, with amendment, to take effect from passage, a bill of the House of Delegates as follows:
H. B. 406, Providing that the fourth Thursday and Friday of November are "Thanksgiving Holidays", and combining Lincoln's Birthday and Washington's Birthday into a single holiday known as Presidents' Day to match the federal holiday.
On motion of Delegate Staton, the bill was taken up for immediate consideration.
The following Senate amendments were reported by the Clerk:
On page two, section one, lines fourteen and fifteen, by striking out all of subdivision (10) and inserting in lieu thereof the following:
"(10) The fourth Thursday of November is 'Thanksgiving Day';
(11) The fourth Friday of November is 'Family Values Day';".
And renumbering the remaining subdivisions.
On page three, section one, line thirty-four, by striking out the words "subdivision (13)" and inserting in lieu thereof the words "subdivisions (13), (14) and (15)".
And,
By amending the title of the bill to read as follows:
H. B. 406 - "A Bill to amend and reenact §2-2-1 of the Code of West Virginia, 1931, as amended, relating to state holidays; providing that the fourth Thursday and Friday of November shall be legal holidays; combining Lincoln's and Washington's birthdays into a single Presidents' Day holiday."
On motion of Delegate Staton, the House of Delegates refused to concur in the Senate amendments and requested the Senate to recede therefrom.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates and request concurrence therein.
House Calendar
Third Reading
Com. Sub. for H. B. 402, Requiring the disclosure of electioneering communications and prohibiting political organizations from accepting contributions in excess of one thousand dollars per election; on third reading, having been postponed until this time, was taken up for further consideration.
Delegate Amores asked and obtained unanimous consent that the rule be suspended to permit the offering and consideration of amendments on third reading.
Delegate Amores moved to amend the bill on page one, following the enacting section, by striking out the remainder of the bill and inserting in lieu thereof the following language:
"ARTICLE 8. REGULATION AND CONTROL OF ELECTIONS.
§3-8-1a. Definitions.
As used in this article, the following terms have the following definitions:
(1) 'Ballot issue' means a constitutional amendment, special levy, bond issue, local option referendum, municipal charter or revision, an increase or decrease of corporate limits or any other question that is placed before the voters for a binding decision.
(2) 'Broadcast, cable, or satellite communication' means a communication that is publicly distributed by a television station, radio station, cable television system, or satellite system.
(3) 'Candidate' means an individual who:
(A) Has filed a certificate of announcement under section seven, article five, of this chapter or a municipal charter;
(B) Has filed a declaration of candidacy under section twenty-three, article five of this chapter;
(C) Has been named to fill a vacancy on a ballot; or
(D) Has declared a write-in candidacy or otherwise publicly declared his or her intention to seek nomination or election for any state, district, county or municipal office or party office to be filled at any primary, general or special election.
(4) 'Candidate's committee' means a political committee established with the approval of or in cooperation with one pre-candidate or candidate to explore the possibilities of seeking a particular office and/or to support or aid his or her nomination or election to an office in one election cycle. If a candidate directs or influences the activities of more than one committee, those committees shall be considered one committee of the purpose of contribution limits.
(5) 'Clearly identified' means that the name, nickname, photograph, drawing or other depiction of the candidate appears or the identity of the candidate is otherwise apparent through an unambiguous reference such as 'the Governor', 'your Senator' or 'the incumbent', or through an unambiguous reference to his or her status as a candidate such as 'the Democratic candidate for Governor' or 'the Republican candidate for Supreme Court of Appeals'.
(6) 'Contribution' means a gift subscription, assessment, payment for services, dues, advance, donation, pledge, contract, agreement, forbearance or promise of money or other tangible thing of value, whether conditional or legally enforceable, or a transfer of money or other tangible thing of value to a person, made for the purpose of influencing the nomination, election or defeat of a candidate. An offer or tender of a contribution is not a contribution if expressly and unconditionally rejected or returned. A contribution does not include volunteer personal services provided without compensation.
(7) 'Direct costs of purchasing, producing or disseminating electioneering communications' means:
(A) Costs charged by a vendor, including, but not limited to, studio rental time, compensation of staff and employees, costs of video or audio recording media and talent, material and printing costs and postage; or
(B) The cost of airtime on broadcast, cable or satellite radio and television stations, the cost of disseminating printed materials, establishing a telephone bank, studio time, use of facilities and the charges for a broker to purchase airtime.
(8) 'Disclosure date' means either of the following:
(A) The first date during any calendar year on which any electioneering communication is disseminated after the person paying for the communication has spent a total of five thousand dollars or more for the direct costs of purchasing, producing or disseminating electioneering communications; or
(B) Any other date during that calendar year after any previous disclosure date on which the person has made additional expenditures totaling five thousand dollars or more for the direct costs of purchasing, producing or disseminating electioneering communications.
(9) 'Election' means any primary, general or special election conducted under the provisions of this code or under the charter of any municipality at which the voters nominate or elect candidates for public office. For purposes of this article, each primary, general, special or local election constitutes a separate election. This definition is not intended to modify or abrogate the definition of the term 'nomination' as used in this article.
(10) (A) 'Electioneering communication' means any paid communication made by broadcast, cable or satellite signal, mass mailing, telephone bank, leaflet, pamphlet, flyer or outdoor advertising or published in any newspaper, magazine or other periodical that:
(i) Refers to a clearly identified candidate for a statewide office or the Legislature;
(ii) Is publicly disseminated within:
(a) Thirty days before a primary election at which the nomination for office sought by the candidate is to be determined; or
(b) Sixty days before a general or special election at which the office sought by the candidate is to be filled; and
(iii) Is targeted to the relevant electorate.
(B) 'Electioneering communication' does not include:
(i) A news story, commentary or editorial disseminated through the facilities of any broadcast, cable or satellite television or radio station, newspaper, magazine or other periodical publication not owned or controlled by a political party, political committee or candidate: Provided, That a news story disseminated through a medium owned or controlled by a political party, political committee, or candidate is nevertheless exempt if the news is:
(a) A bona fide news account communicated in a publication of general circulation or on a licensed broadcasting facility; and
(b) Is part of a general pattern of campaign-related news that gives reasonably equal coverage to all opposing candidates in the circulation, viewing or listening area;
(ii) A communication that is required to be reported to the State Election Commission or the Secretary of State as an expenditure pursuant to any provision of this article, other than section two-b of this article, or the rules of the State Election Commission or the Secretary of State promulgated pursuant to such provision: Provided, That, independent expenditures required to be reported pursuant to subsection (b), section two of this article are not exempt from the reporting requirements of this section;
(iii) A candidate debate or forum conducted pursuant to rules adopted by the State Election Commission or the Secretary of State or a communication promoting that debate or forum made by or on behalf of its sponsor;
(iv) A communication paid for by any organization operating under Section 501(c)(3) of the Internal Revenue Code of 1986;
(v) A communication made while the Legislature is in session which, incidental to promoting or opposing a specific piece of legislation pending before the Legislature, urges the audience to communicate with a member or members of the Legislature concerning that piece of legislation;
(vi) A statement or depiction by a membership organization, in existence prior to the date on which the individual named or depicted became a candidate, made in a newsletter or other communication distributed only to bona fide members of that organization;
(vii) A communication made solely for the purpose of attracting public attention to a product or service offered for sale by a candidate or by a business owned or operated by a candidate which does not mention an election, the office sought by the candidate or his or her status as a candidate; or
(viii) A communication, such as a voter's guide, which refers to all of the candidates for one or more offices, which contains no appearance of endorsement for or opposition to the nomination or election of any candidate and which is intended as nonpartisan public education focused on issues and voting history.
(11) 'Financial agent' means any person acting for and by himself or herself, or any two or more natural persons acting together or cooperating in a financial way to aid or take part in the nomination or election of any candidate for public office, or to aid or promote the success or defeat of any political party at any election.
(12) 'Fund-raising event' means an event such as a dinner, reception, testimonial, cocktail party, auction or similar affair through which contributions are solicited or received by such means as the purchase of a ticket, payment of an attendance fee or by the purchase of goods or services.
(13) 'Independent expenditure' means an expenditure made by a person other than a candidate or a candidate's committee in support of or opposition to the nomination or election of one or more clearly identified candidates and without consultation or coordination with or at the request or suggestion of the candidate whose nomination or election the expenditure supports or opposes or the candidate's agent. Supporting or opposing the election of a clearly identified candidate includes supporting or opposing the candidates of a clearly identified political party. An expenditure which does not meet the criteria for an independent expenditure is considered a contribution.
(14) 'Mass mailing' means a mailing by United States mail, facsimile or electronic mail of more than five hundred pieces of mail matter of an identical or substantially similar nature within any thirty-day period.
(15) 'Membership organization' means a group that grants bona fide rights and privileges, such as the right to vote, to elect officers or directors and the ability to hold office, to its members and which uses a majority of its membership dues for purposes other than political purposes. 'Membership organization' does not include organizations that grant membership upon receiving a contribution.
(16) 'Name' means the full first name, middle name or initial, if any, and full legal last name of an individual and the full name of any association, corporation, committee or other organization of individuals, making the identity of any person who makes a contribution apparent by unambiguous reference.
(17) 'Person' means an individual, partnership, committee, association, and any other organization or group of individuals.
(18) 'Political action committee' means a committee organized by one or more persons for the purpose of supporting or opposing the nomination or election of one or more candidates or the passage or defeat of one or more ballot issues.
(19) 'Political party' means a political party as defined by section eight, article one, chapter three of this code or any committee established, financed, maintained or controlled by the party, including any subsidiary, branch or local unit thereof and including national or regional affiliates of the party.
(20) 'Political purposes' means supporting or opposing the nomination, election or defeat of one or more candidates or the passage or defeat of a ballot issue, supporting the retirement of the debt of a candidate or political committee or the administration or activities of an established political party or an organization which has declared itself a political party and determining the advisability of becoming a candidate under the pre-candidacy financing provisions of this chapter.
(21) 'Targeted to the relevant electorate' means a communication which refers to a clearly identified candidate for statewide office or the Legislature and which can be received by ten thousand or more individuals in the state in the case of a candidacy for statewide office and five hundred or more individuals in the district in the case of a candidacy for the Legislature.
(22) 'Telephone bank' means telephone calls that are targeted to the relevant electorate, other than telephone calls made by volunteer workers, regardless of whether paid professionals designed the telephone bank system, developed calling instructions or trained volunteers.
(23) 'Two-year election cycle' means the twenty-four month period that begins the day after a general election and ends on the day of the subsequent general election.

§3-8-2. Accounts for receipts and expenditures in elections; requirements for reporting independent expenditures.

(a) Except for: (1) Candidates for party ~~committeemen~~ committeeman and ~~committeewomen~~ committeewoman; ~~in primary and other elections~~ and (2) federal committees required to file under the provisions 2 U.S.C. §434, all candidates for nomination or election and all persons ~~or organizations of any kind advocating~~ supporting, aiding or opposing a the nomination, election or defeat of any candidate shall keep records of receipts and expenditures which are made for political purposes. All of the receipts and expenditures are subject to regulation by the provisions of this article. Verified financial statements of the records and expenditures shall be made and filed as public records by all candidates and by their financial agents, representatives or any person acting for and on behalf of any candidate and by the treasurers of all political party committees.
(b) In addition to any other reporting required by the provisions of this chapter, any person making an independent expenditure in the amount of one thousand dollars or more for any statewide, legislative or multicounty judicial candidate or in the amount of five hundred dollars or more for any county office, single-county judicial candidate, committee supporting or opposing a candidate on the ballot in more than one county, or any municipal candidate on a municipal election ballot, ~~which is made~~ after the eleventh day but more than twelve hours before the day of any election shall ~~be reported~~ report the expenditure, on a form prescribed by the Secretary of State, within twenty-four hours after the expenditure is made or debt is incurred for a communication, to the Secretary of State by hand-delivery, facsimile or other means to assure receipt by the Secretary of State within the twenty-four-hour period.
(c) For purposes of this section, 'independent expenditure' means an expenditure made by a person other than a candidate or committee for a communication which expressly advocates the election or defeat of a clearly identified candidate but which is made independently of a candidate's campaign and which has not been made with the cooperation or consent of, or in consultation with, or at the request or suggestion of, any candidate or any of his or her agents or authorized committees. An expenditure which does not meet the criteria for independence established in this subsection is considered a contribution.
~~(d)~~ Any independent expenditure must include a clear and conspicuous public notice which identifies the name of the person who paid for the expenditure and states that the communication is not authorized by the candidate or his or her committee.
(d) Any person who has spent a total of five thousand dollars or more for the direct costs of purchasing, producing or disseminating electioneering communications during any calendar year shall maintain all campaign-related financial records and receipts for a period of six months following the filing of a disclosure pursuant to subsection (a) of this section and, upon request, shall make such records and receipts available to the Secretary of State or county clerk for the purpose of an audit as provided in section seven of this article. Any person who willfully fails to comply with this subsection is guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than five hundred dollars, or confined in jail for not more than one year, or both fined and confined.
§3-8-2b. Disclosure of electioneering communications.
(a) Every person who has spent a total of five thousand dollars or more for the direct costs of purchasing, producing or disseminating electioneering communications during any calendar year shall, within twenty-four hours of each disclosure date, file with the Secretary of State a statement which contains:
(1) The name of the person making the expenditure, the name of any person sharing or exercising direction or control over the activities of the person making the expenditure and the name of the custodian of the books and accounts of the person making the expenditure;
(2) If the person making the expenditure is not an individual, the principal place of business of the partnership, committee, association, organization or group which made the expenditure;
(3) The amount of each expenditure of more than one thousand dollars made for electioneering communications during the period covered by the statement and the name of the person to whom the expenditure was made;
(4) The elections to which the electioneering communications pertain and the names, if known, of the candidates referred to or to be referred to therein; and
(5) The names and address of any contributors who contributed a total of more than one thousand dollars between the first day of the preceding calendar year and the disclosure date and whose contributions were used to pay for electioneering communications.
(b) With regard to the contributors required to be listed pursuant to subdivision (5), subsection (a) of this section, the statement shall also include:
(1) The month, day and year that the contributions of any single contributor exceeded two hundred fifty dollars;
(2) If the contributor is a political action committee, the name and address the political action committee registered with the State Election Commission;
(3) If the contributor is an individual, the name and address of the individual, his or her occupation, the name and address of the individual's current employer, if any, or, if the individual is self-employed, the name and address of the individual's business, if any;
(4) A description of the contribution, if other than money;
(5) The value in dollars and cents of the contribution.
(c)(1) Any person who makes a contribution for the purpose of funding the direct costs of purchasing, producing or disseminating an electioneering communication under this section shall, at the time the contribution is made, provide his or her name and address to the recipient of the contribution;
(2) Any individual who makes contributions totaling two hundred fifty dollars or more between the first day of the preceding calendar year and the disclosure date for the purpose of funding the direct costs of purchasing, producing or disseminating electioneering communications shall, at the time the contribution is made, provide the name of his or her occupation and of his or her current employer, if any, or, if the individual is self-employed, the name of his or her business, if any, to the recipient of the contribution.
(d) In each electioneering communication, a statement shall appear or be presented in a clear and conspicuous manner that:
(1) Clearly indicates that the electioneering communication is not authorized by the candidate or the candidate's committee; and
(2) Clearly identifies the person making the expenditure for the electioneering communication.
Provided, That if the electioneering communication appears on or is disseminated by broadcast, cable or satellite transmission, the statement required by this subsection must be both spoken clearly and appear in clearly readable writing at the end of the communication.
(e)Within five business days after receiving a disclosure of electioneering communications statement pursuant to this section, the Secretary of State shall make information in the statement available to the public through the Internet.
(f) For the purposes of this section, a person is considered to have made an expenditure when the person has entered into a contract to make the expenditure at a future time.
(g) The Secretary of State is hereby directed to propose legislative rules and emergency rules implementing this section for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code.
(h) If any person, including but not limited to, a political organization (as defined in section 527(e)(1) of the Internal Revenue Code of 1986) makes, or contracts to make, any expenditure for electioneering communications which is coordinated with and made with the cooperation, consent or prior knowledge of a candidate, candidate's committee or agent of a candidate, the expenditure shall be treated as a contribution and expenditure by the candidate. If the expenditure is coordinated with and made with the cooperation or consent of a state or local political party or committee, agent or official of that party, the expenditure shall be treated as a contribution to and expenditure by the candidate's party.

§3-8-4. Treasurers and financial agents; written designation requirements.

(a) No person ~~shall~~ may act as the treasurer of any political committee, or as financial agent for any candidate for nomination or election to any statewide office, ~~to be filled by the voters of the entire state, or candidates for nomination or election for~~ to any office encompassing an election district larger than a county or ~~candidates for nomination for~~ to any legislative office or for any person ~~or organization advocating~~ supporting, aiding or opposing the nomination, election or defeat of any candidate for an office encompassing an election district larger than a county, unless a written statement designating ~~him or her~~ that person as the treasurer or financial agent is filed with the Secretary of State at least twenty-eight days before the election at which ~~he or she~~ that person is to act as a financial agent or treasurer and ~~must be~~ is received by the Secretary of State before midnight, Eastern Standard Time, of that day or if mailed, ~~shall be~~ is postmarked before that hour: Provided, That a change of treasurer or financial agent may be made at any time by filing a written statement with the Secretary of State.
(b) No person ~~shall~~ may act as treasurer of any committee or as financial agent for any candidate to be nominated or elected by the voters of a county or a district therein, except legislative candidates, or as the ~~treasurer or~~ financial agent for a candidate for the nomination or election to any other office, unless a written statement designating him or her as the treasurer or financial agent is filed with the clerk of the county commission at least twenty-eight days before the election at which he or she is to act and ~~must be~~ is received before midnight, Eastern Standard Time, of that day or if mailed, ~~shall be~~ is postmarked before that hour: Provided, That a change of treasurer may be made at any time by filing a written statement with the clerk of the county commission.
(c) Notwithstanding the provisions of subsections (a) and (b) of this section, a filing designating a treasurer ~~or financial agent~~ for a state or county political executive committee may be made anytime before the committee either accepts or spends funds. ~~on behalf of the committee~~ Once a designation is made by a state or county political executive committee, no additional designations are required under this section until a successor treasurer ~~or financial agent~~ is designated. A state or county political executive committee may terminate a designation made pursuant to this section by making a written request to terminate the designation and by stating in the request that the committee has no funds remaining in the committee's account. This written request shall be ~~made~~ filed with either the Secretary of State or the clerk of the county commission as provided by subsections (a) and (b) of this section.
~~(d) As used in this article:~~
~~The term 'person' means an individual, partnership, committee, association, corporation, and any other organization or group of persons; and~~
The term 'financial agent' means any person acting for and by himself or herself, or any two or more natural persons acting together or cooperating in a financial way to aid or take part in the nomination or election of any candidate for public office, or to aid or promote the success or defeat of any political party or principle at any election, or any proposition submitted to a vote at a public election.
§3-8-5a. Information required in financial statement.
(a) Each financial statement required by the provisions of this article, other than a disclosure of electioneering communications pursuant to section two-b of this article, shall contain only the following information:
(1) The ~~first~~ name, ~~middle initial, if any, and last name~~ residence and mailing address and telephone number of each candidate, financial agent, treasurer or person and the ~~full~~ name, address and telephone number of each association, organization or committee filing a financial statement.
(2) The balance of cash and any other sum of money on hand at the beginning and the end of the period covered by the financial statement.
(3) The ~~first~~ name ~~middle initial, if any, and the last name in the case of an individual, and the full name of each firm, association or committee~~ of any person making a contribution and the amount of ~~such~~ the contribution. ~~of such individual, firm, association or committee, and, if the aggregate of the sum or sums contributed by any one such individual, firm, association or committee exceeds~~ If the total contributions of any one person amount to two hundred fifty dollars or more, ~~there shall also be reported~~ the residence and mailing address of the contributor and, ~~in the case of~~ if the contributor is an individual, ~~the~~ his or her major business affiliation and occupation shall also be reported. A contribution totaling more than fifty dollars of currency of the United States or currency of any foreign country by any one contributor is prohibited and a violation of ~~this provision is subject to~~ section five-d of this article. The ~~report~~ statement on which contributions are required to be reported by this subdivision ~~shall~~ may not distinguish between contributions made by individuals and contributions made by partnerships, firms, associations or committees, organizations or groups.
(4) The total amount of contributions received during the period covered by the financial statement.
(5) The ~~first~~ name, ~~middle initial, if any, and the last name~~ residence and mailing address of any individual or the ~~full~~ name and mailing address of each lending institution making a loan or of the spouse cosigning a loan, as appropriate, the amount of any loan received, the date and terms of the loan, including the interest and repayment schedule, and a copy of the loan agreement.
(6) The ~~first~~ name, ~~middle initial, if any, and the last name~~ residence and mailing address of any individual or the ~~full~~ name and mailing address of each partnership, firm, association, or committee, organization or group having previously made or cosigned a loan for which payment is made or a balance is outstanding at the end of the period, together with the amount of repayment on the loan made during the period and the balance at the end of the period.
(7) The total outstanding balance of all loans at the end of the period.
(8) The ~~first~~ name, ~~middle initial, if any, and the last name~~ residence and mailing address of any individual, or the ~~full~~ name and mailing address of each partnership, firm, association, or committee, organization or group to whom each expenditure was made or liability incurred, together with the amount and purpose of each expenditure or liability incurred and the date of each transaction.
(9) The total expenditure for the nomination, election or defeat of a candidate or any person ~~or organization advocating~~ supporting, aiding or opposing the nomination, election or defeat of any candidate ~~or the passage or defeat of any issue, thing or item to be voted upon~~ in whose behalf an expenditure was made or a contribution was given for the primary or other election.
(10) The total amount of expenditures made during the period covered by the financial statement.
(b) Any unexpended balance at the time of making the financial statements herein provided for shall be properly accounted for in that financial statement and shall appear as a beginning balance in the next ~~following~~ financial statement.
(c) Each financial statement required by this section shall contain a separate section setting forth the following information for each fund-raising event held during the period covered by the financial statement:
(1) The type of event, date held and address and name, if any, of the place where the event was held.
(2) All of the information required by subdivision (3), subsection (a) of this section.
(3) The total of all moneys received at the fund-raising event.
(4) The expenditures incident to the fund-raising event.
(5) The net receipts of the fund-raising event.
(d) When any lump sum payment is made to any advertising agency or other disbursing person who does not file a report of detailed accounts and verified financial statements as required in this section, such lump sum expenditures shall be accounted for in the same manner as provided for herein.
(e) Any contribution or expenditure made by or on behalf of a candidate for public office, to any other candidate or committee for a candidate for any public office in the same election shall be accounted for in accordance with the provisions of this section.
(f) No person ~~firm, association or committee~~ may make any contribution except from ~~their~~ his, her or its own funds, unless such person ~~firm, association or committee~~ discloses in writing to the person required to report under this section the ~~first~~ name, ~~middle initial, if any, and the last name in the case of an individual or the full name in case of a firm, association or committee,~~ residence, ~~and~~ mailing address, ~~and the~~ major business affiliation and occupation of the person ~~firm, association or committee~~ which furnished the funds to ~~such~~ the contributor. All such disclosures shall be included in the statement required by this section.
(g) Any firm, association, committee or fund permitted by section eight of this article to be a political committee shall disclose on the financial statement its corporate or other affiliation.
(h) No contribution may be made, directly or indirectly, in a fictitious name, anonymously or by one person through an agent, relative or other person so as to conceal the identity of the source of the contribution or in any other manner so as to effect concealment of the contributor's identity.
(i) No person ~~firm, association or committee~~ may accept any contribution for the purpose of influencing the nomination, election or defeat of a candidate or for the passage or defeat of any ballot issue ~~or thing to be voted upon~~ unless the identity of the donor and the amount of the contribution is known and reported.
(j) When any ~~candidate, organization, committee or~~ person receives ~~any~~ an anonymous contribution which cannot be returned because the donor cannot be identified, that contribution shall be donated to the General Revenue Fund of the State. Any anonymous contribution shall be recorded as such on the candidate's financial statement, but may not be expended for election expenses. At the time of filing, the financial statement shall include a statement of distribution of anonymous contributions, which total amount shall equal the total of all anonymous contributions received during the period.
(k) Any membership organization which raises funds for political purposes by payroll deduction, assessing them as part of its membership dues or as a separate assessment, may report the amount raised as follows:
(1) If the portion of dues or assessments designated for political purposes equals twenty-five dollars or less per member over the course of a calendar year, the total amount raised for political purposes through membership dues or assessments during the period is reported by showing the amount required to be paid by each member and the number of members.
(2) If the total payroll deduction for political purposes of each participating member equals twenty-five dollars or less over the course of a calendar or fiscal year, as specified by the organization, the organization shall report the total amount received for political purposes through ~~such~~ payroll deductions during the reporting period and, to the maximum extent possible, the amount of each yearly payroll deduction contribution level and the number of members contributing at each such specified level. The membership organization shall maintain records of the name and yearly payroll deduction amounts of each participating member.
(3) If any member contributes to the membership organization through individual voluntary contributions by means other than payroll deduction, membership dues, or assessments as provided in this subsection, the reporting requirements of subdivision (3), subsection (a) of this section shall apply. Funds raised for political purposes must be segregated from the funds for other purposes and listed in its report.
~~(l) For purposes of this section:~~
(1) 'Political purposes' means advocating or opposing the nomination, election or defeat of one or more candidates, supporting the retirement of the debt of a candidate or activities of an established political party or an organization which has declared itself a political party, supporting the administration or activities of a political committee or advocating or opposing the passage of a ballot issue.
(2) 'Membership organization' means a group that grants bona fide rights and privileges, such as the right to vote, to elect officers or directors, and the ability to hold office, to its members, and which uses a majority of its membership dues for purposes other than political purposes. This term shall not include organizations that grant membership upon receiving a contribution.
~~(3) 'Fund-raising~~ event' means an event such as a dinner, reception, testimonial, cocktail party, auction or similar affair through which contributions are solicited or received by such means as the purchase of a ticket, payment of an attendance fee or by the purchase of goods or services.
~~(m)~~ (l) Notwithstanding the provisions of section five of this article or of the provisions of this section to the contrary, an alternative reporting procedure may be followed by a political party executive committee or a political action committee representing a political party in filing financial reports for fund-raising events if the total profit does not exceed five thousand dollars per year. A political party executive committee or a political action committee representing a political party may report gross receipts for the sale of food, beverages, services, novelty items, raffle tickets or memorabilia, except that any receipt of more than fifty dollars from an individual or organization shall be reported as a contribution. A political party executive committee or a political action committee representing a political party using this alternative method of reporting shall report: (i) The name of the committee; (ii) the type of fund-raising activity undertaken; (iii) the location where the activity occurred; (iv) the date of the fund raiser; (v) the name of any individual who contributed more than fifty dollars worth of items to be sold; (vi) the name and amount received from any person or organization purchasing more than fifty dollars worth of food, beverages, services, novelty items, raffle tickets or memorabilia; (vii) the gross receipts of the fund raiser; and (viii) the date, amount, purpose and name and address of each person or organization from whom items with a fair market value of more than fifty dollars were purchased for resale.

§3-8-7. Failure to file statement; delinquent or incomplete filing; criminal and civil penalties.

(a) Any person, candidate, financial agent or treasurer of a political party committee who fails to file a sworn, itemized statement required by this article within the time limitations specified in this article or who willfully files a grossly incomplete or grossly inaccurate statement shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than five hundred dollars or imprisoned in ~~the county~~ jail for not more than one year, or both, in the discretion of the court. Forty days after any ~~such~~ primary or other election, the Secretary of State, or county clerk, or municipal recorder, as the case may be, shall give notice of any failure to file ~~such~~ a sworn statement or the filing of any grossly incomplete or grossly inaccurate statement by any person, candidate, financial agent or treasurer of a political party committee and forward copies of any grossly incomplete or grossly inaccurate statement to the prosecuting attorney of the county where ~~such~~ the person, candidate, financial agent, or treasurer resides, is located or has its principal place of business.
(b) (1) Any person, candidate, financial agent or treasurer of a political party committee who fails to file a sworn, itemized statement as ~~provided~~ required in this article or who files a grossly incomplete or grossly inaccurate statement may be assessed a civil penalty by the Secretary of State of twenty-five dollars a day for each day after the due date the statement is delinquent, grossly incomplete or grossly inaccurate. Forty days after any ~~such~~ primary or other election, the county clerk shall give notice to the Secretary of State of any failure to file ~~such~~ a sworn statement or the filing of any grossly incomplete or grossly inaccurate statement by any person, candidate, financial agent or treasurer of a political party committee and forward copies of such delinquent, incomplete or inaccurate statements to the Secretary of State.
(2) A civil penalty assessed pursuant to the provisions of this section shall be payable to the State of West Virginia and is collectable in any manner authorized by law for the collection of debts.
(3) The Secretary of State may negotiate and enter into settlement agreements for the payment of civil penalties assessed as a result of the filing of a delinquent, grossly incomplete or inaccurate statement.
(4) The Secretary of State and county clerk may review and audit any sworn statement required to be filed pursuant to the provisions of this article. The State Election Commission shall propose legislative ~~rule~~ rules for promulgation, in accordance with the provisions of chapter twenty-nine-a of this code, to establish procedures for the assessment of civil penalties as provided in this section.
(c) No candidate nominated at a primary election who has failed to file a sworn statement, as required by the provisions of this article, shall have his or her name placed on the official ballot for the ensuing election, unless there has been filed by or on behalf of such candidate, or by his or her financial agent, if any, the financial statement relating to nominations required by this article. It is unlawful to issue a commission or certificate of election, or to administer the oath of office, to any person elected to any public office who has failed to file a sworn statement as required by the provisions of this article and no ~~such~~ person may enter upon the duties of his or her office until he or she has filed such statement, nor may he or she receive any salary or emolument for any period prior to the filing of such statement.

§3-8-8. Corporation contributions forbidden; exceptions; penalties; promulgation of rules; additional powers of State Election Commission.

(a) No officer of any corporation, or agent or person on behalf of such corporation, whether incorporated under the laws of this or any other state, or foreign country, ~~shall~~ may pay, give or lend, or authorize to be paid, given or lent, any money or other thing of value belonging to such corporation, to any candidate, financial agent, or political committee or other person, for the payment of any primary or other election expenses whatever. No person ~~shall~~ may solicit or receive such payment, contribution or other thing from any corporation, officer or agent thereof, or other person acting on behalf of such corporation.
(b)(1) The provisions of this section shall not be deemed to prohibit:
(A) Direct communications, other than by newspapers of general circulation, radio, television or billboard advertising likely to reach the general public, by a corporation to its stockholders and executive or administrative personnel and their families on any subject;
(B) Nonpartisan registration and get-out-the-vote campaigns by a corporation aimed at its stockholders and executives or administrative personnel and their families; and
(C) The solicitation of contributions to a separate segregated fund to be utilized for political purposes by any corporate officer, agent or any person on behalf of a corporation. Any ~~such~~ separate segregated fund shall be deemed to be a political action committee for the purpose of this article and subject to all reporting requirements thereof.
(2) It shall be unlawful:
(A) For ~~such~~ a separate segregated fund to make a contribution or expenditure by utilizing money or anything of value secured by physical force, job discrimination, financial reprisal or the threat of force, job discrimination or financial reprisal, or as a condition of employment, or by moneys obtained in any commercial transaction;
(B) For any person soliciting a stockholder, executive or administrative personnel and members of their family for a contribution to such fund to fail to inform such person of the political purposes of ~~such~~ the separate segregated fund at the time of such solicitation;
(C) For any person soliciting any other person for a contribution to ~~such~~ a separate segregated fund to fail to inform ~~such~~ the other person at the time of ~~such~~ the solicitation of his or her right to refuse to so contribute without any reprisal;
(D) For a corporation or a separate segregated fund established by a corporation to solicit contributions to ~~such~~ the fund from any person other than its stockholders and their families and its executive or administrative personnel and their families or to contribute any corporate funds;
(E) For a corporation or a separate segregated fund established by a corporation to receive contributions to ~~such a~~ the fund from any person other than its stockholders and their immediate families and its executive or administrative personnel and their immediate families;
(F) For a corporation to engage in job discrimination or to discriminate in job promotion or transfer because of an employee's failure to make a contribution to ~~such~~ a separate segregated fund;
(G) For ~~such~~ a separate segregated fund ~~directly or indirectly~~ to make any contribution, directly or indirectly, in excess of ~~the value of~~ one thousand dollars in connection with any campaign for nomination or election to or on behalf of any elective office in the State or any of its subdivisions, or in connection with or on behalf of any committee or other organization or person engaged in furthering, advancing, ~~or advocating~~ supporting or aiding the nomination or election of any candidate for any such office; ~~and~~
(H) For a corporation to pay, give or lend, or authorize to be paid, given or lent, any moneys or other things of value belonging to ~~such~~ the corporation to ~~such~~ a separate segregated fund for any purpose. This provision shall not be deemed to prohibit ~~such~~ a separate segregated fund from using the property, real or personal, facilities and equipment of a corporation solely to establish, administer and solicit contributions to the fund, subject to the rules of the State Election Commission as provided in subsection (d) of this section: Provided, That any such corporation shall also permit any group of employees thereof represented by a bona fide political action committee to use the real property of ~~such~~ the corporation solely to establish, administer and solicit contributions to the fund of ~~such~~ the political action committee, subject to the rules ~~and regulations~~ of the State ~~elections~~ Election Commission as provided in subsection (d) of this section. No ~~such~~ property, real or personal, facilities, equipment, materials or services of a corporation ~~shall~~ may be ~~utilized~~ used for the purpose of influencing any voter or voters to vote for a particular candidate or in any particular manner ~~or upon any particular side of any question to be decided at any election,~~ or to influence the result of any ~~such~~ election.
(I) Public utility companies and railroad companies may not form funds or political action committees in support of political candidates or parties, and may not use corporate property, real or personal, facilities, equipment, materials or services of said utility to establish, administer or solicit contributions to such fund or political action committee.
(3) For the purposes of this section, the term 'executive or administrative personnel' means individuals employed by a corporation who are paid on a salary rather than hourly basis and who have policy-making, managerial, professional or supervisory responsibilities.
(c) Any person or corporation violating any provision of this section shall be guilty of a misdemeanor and, on conviction, shall be fined not more than ~~five~~ ten thousand dollars. No corporation ~~shall~~ may reimburse any person the amount of any ~~such~~ fine imposed pursuant to this section.
(d) ~~The~~ To ensure uniform administration and application of the provisions of this section and of those of the Federal Election Campaign Act Amendments of 1976 relating to corporate contributions, the State Election Commission shall ~~promulgate~~ propose rules ~~and regulations~~ for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code to implement the provisions of this section~~, which rules and regulations~~ consistent, insofar as practicable, ~~shall be the same as~~ with the rules and regulations promulgated by the Federal Election Commission to carry out ~~those~~ similar or identical provisions of 2 U.S.C. §441b. which are similar or identical to those provisions contained in this section in order that the provisions of this section and the regulations promulgated thereunder and the similar provisions of 2 U.S.C. §441b and the regulations promulgated thereunder may be uniformly administered and applied to corporations subject to the cited section of the Federal Election Campaign Act Amendments of 1976 and to this section. The State Election Commission shall promulgate such rules and regulations not later than sixty days after the effective date of this subsection and in doing so shall be governed by the provisions of article three, chapter twenty-nine-a of this code
(e) In addition to ~~it's~~ the powers and duties as set forth in article ~~one-A~~ one-a of this chapter, the State Election Commission ~~shall have~~ has the following powers and duties:
1. (1) To investigate, upon complaint or on its own initiative, any alleged violations or irregularities of this article.
2. (2) To administer oaths and affirmations, issue subpoenas for the attendance of witnesses, issue subpoenas duces tecum to compel the production of books, papers, records and all other evidence necessary to any investigation.
3. (3) To involve the aid of any circuit court in the execution of its subpoena power.
4. (4) To report any alleged violations of this article to the appropriate prosecuting attorney having jurisdiction, which prosecuting attorney shall present to the grand jury such alleged violations, together with all evidence relating thereto, no later than the next term of court after receiving the report.
(f) ~~It shall be the duty of~~ The Attorney General to shall, when requested, provide ~~such~~ legal and investigative assistance to the State Election Commission. ~~as it may request and require~~
(g) Any investigation either upon complaint or initiative, shall be conducted in an executive session of the State Election Commission and shall remain undisclosed except upon an indictment by a grand jury.
(h) Any person who ~~shall disclose~~ discloses the fact of any complaint, investigation or report or any part thereof, or any proceedings thereon, ~~shall be~~ is guilty of a misdemeanor and, upon conviction ~~thereof,~~ shall be fined not less than one thousand dollars, nor more than five thousand dollars, and shall be imprisoned in ~~the county~~ jail not less than six months nor more than one year.

§3-8-12. Additional acts forbidden; circulation of written matter; newspaper advertising; solicitation of contributions; intimidation and coercion of employees; promise of employment or other benefits; limitations on contributions; public contractors; penalty.

(a) No person may publish, issue or circulate, or cause to be published, issued or circulated, any anonymous letter, circular, placard, radio or television advertisement or other publication ~~expressly advocating~~ supporting or aiding the election or defeat of a clearly identified candidate.
(b) No owner, publisher, editor or employee of a newspaper or other periodical may insert, either in its advertising or reading columns, any matter, paid for or to be paid for, which tends to influence the voting at any election, unless directly designating it as a paid advertisement and stating the name of the person authorizing its publication and the candidate in whose behalf it is published.
(c) No person may, in any room or building occupied for the discharge of official duties by any officer or employee of the State or a political subdivision of the State, solicit orally or by written communication delivered within the room or building, or in any other manner, any contribution of money or other thing of value for any party or political purpose, from any postmaster or any other officer or employee of the federal government, or officer or employee of the State, or a political subdivision of the State. No officer, agent, clerk or employee of the federal government, or of this state, or any political subdivision of the State, who may have charge or control of any building, office or room, occupied for any official purpose, may knowingly permit any person to enter any building, office or room, occupied for any official purpose for the purpose of soliciting or receiving any political assessments from, or delivering or giving written solicitations for, or any notice of, any political assessments to, any officer or employee of the State, or a political subdivision of the State.
(d) Except as provided in section eight of this article, no person entering into any contract with the State or its subdivisions, or any department or agency of the State, either for rendition of personal services or furnishing any material, supplies or equipment or selling any land or building to the State, or its subdivisions, or any department or agency of the State, if payment for the performance of the contract or payment for the material, supplies, equipment, land or building is to be made, in whole or in part, from public funds may, during the period of negotiation for or performance under the contract or furnishing of materials, supplies, equipment, land or buildings, directly or indirectly, make any contribution to any political party, committee or candidate for public office or to any person for political purposes or use; nor may any person or firm solicit any contributions for any purpose during any period.
(e) No person may, directly or indirectly, promise any employment, position, work, compensation or other benefit provided for, or made possible, in whole or in part, by Act of the Legislature, to any person as consideration, favor or reward for any political activity for the support of or opposition to any candidate, or any political party in any election.
(f) No person may, directly or indirectly, make any contribution in excess of the value of one thousand dollars in connection with any campaign for nomination or election to or on behalf of any statewide or national elective office, ~~or in excess of the value of one thousand dollars,~~ in connection with any other campaign for nomination or election to or on behalf of any other elective office in the state or any of its subdivisions, or in connection with or on behalf of any ~~committee or other organization or~~ person engaged in furthering, advancing, ~~or advocating~~ supporting or aiding the nomination or election of any candidate for any of the offices.
(g) No political organization (as defined in Section 527(e)(1) of the Internal Revenue Code of 1986) may solicit or accept contributions until it has notified the Secretary of State of its existence and of the purposes for which it was formed. During the two-year election cycle, a political organization may not accept contributions totaling more than one thousand dollars from any one person prior to the primary election and contributions totaling more than one thousand dollars from any one person after the primary and before the general election.
~~(g)~~ (h) It shall be unlawful for any person to create, establish or organize more than one political organization (as defined in Section 527(e)(1) of the Internal Revenue Code of 1986) with the intent to avoid or evade the contribution limitations contained in subsection (g) of the section.
(i)~~(1)~~ Notwithstanding the provisions of subsection (f) of this section to the contrary, the aggregate contributions made to a state party executive committee or state party legislative caucus committee are to be permitted only pursuant to the limitations imposed by the provisions of this subsection.
~~(2) No~~ no person may, directly or indirectly, make contributions to a state party executive committee or state party legislative caucus committee which, in the aggregate, exceed the value of one thousand dollars in any calendar year.
(h) (j) The limitations on contributions contained in this section do not apply to transfers between and among a state party executive committee or a state party's legislative caucus political committee from national committees of the same political party: Provided, That transfers permitted by this subsection may not exceed fifty thousand dollars in the aggregate in any calendar year to any state party executive committee or state party legislative caucus political committee: Provided, however, That the moneys transferred may only be used for voter registration and get-out-the-vote activities of the state committees.
(i) (k) No person may solicit any contribution from any nonelective salaried employee of the state government or of any of its subdivisions or coerce or intimidate any nonelective salaried employee into making a contribution. No person may coerce or intimidate any nonsalaried employee of the state government or any of its subdivisions into engaging in any form of political activity. The provisions of this subsection may not be construed to prevent any employee from making a contribution or from engaging in political activity voluntarily, without coercion, intimidation or solicitation.
(j) (l) No person may solicit a contribution from any other person without informing the other person at the time of the solicitation of the amount of any commission, remuneration or other compensation that the solicitor or any other person will receive or expect to receive as a direct result of the contribution being successfully collected. Nothing in this subsection may be construed to apply to solicitations of contributions made by any person serving as an unpaid volunteer.
(k)(m) No person may place any letter, circular, flyer, advertisement, election paraphernalia, solicitation material or other printed or published item tending to influence voting at any election in a roadside receptacle unless it is: (1) Approved for placement into a roadside receptacle by the business or entity owning the receptacle; and (2) contains a written acknowledgment of the approval. This subdivision does not apply to any printed material contained in a newspaper or periodical published or distributed by the owner of the receptacle. The term 'roadside receptacle' means any container placed by a newspaper or periodical business or entity to facilitate home or personal delivery of a designated newspaper or periodical to its customers.
(l)(n) Any person violating any provision of this section is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than one thousand dollars, or confined in a regional or county jail for not more than one year, or, in the discretion of the court, be subject to both fine and confinement.
(o) The limitations on contributions established by subsection (g) this section do not apply to contributions made for the purpose of supporting or opposing a ballot issue, including a constitutional amendment."
On motion of Delegate Armstead, the amendment was amended on page nine, section two, line thirteen, following the word "keep", by inserting the words'for a period of six months'.
The question before the House being the amendment offered by Delegate Amores, as amended, the same was put and prevailed.
The bill was then read a third time.
The question being on the passage of the bill, the yeas and nays were taken (Roll No. 837), and there were--yeas 97, nays 1, absent and not voting 2, with the nays and absent and not voting being as follows:
Nays: Porter.
Absent And Not Voting: Ferrell and Iaquinta.
So, a majority of the members present and voting having voted in the affirmative, the Speaker declared the bill (Com. Sub. for H. B. 402) passed.
On motion of Delegate Amores, the title of the bill was amended to read as follows:
Com. Sub. for H. B. 402 - "A Bill to repeal §3-8-5c of the Code of West Virginia, 1931, as amended; to amend said code by adding thereto two new sections, designated §3-8-1a and §3-8-2b; and to amend and reenact §3-8-2, §3-8-4, §3-8-5a, §3-8-7, §3-8-8 and §3-8-12 of said code, all relating to regulating elections; defining terms; requiring candidates and persons making electioneering communications to keep and make available for inspection records of campaign- related contributions and spending; requiring persons who engage in electioneering communications to file financial statements with Secretary of State; contents of statement and filing requirements; penalties for filing delinquent or incomplete financial statements; granting the Secretary of State legislative and emergency rule-making authority; clarifying that electioneering communications made in coordination with a candidate or political party are considered contributions to such candidate or political party; increasing penalty for violations of prohibitions on corporate contributions to candidates or for electioneering communications; requiring political organizations to register with the Secretary of State prior to soliciting or accepting contributions; prohibiting political organizations from accepting contributions in excess of one thousand dollars before the primary and general elections; and making it unlawful to create more than one political organization with the intent to avoid or evade contribution limitations. "
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates and request concurrence therein.
Messages From the Senate
A message from the Senate, by
The Clerk of the Senate, announced the adoption by the Senate and requested the concurrence of the House of Delegates in the adoption of the following concurrent resolution, which was read by its title and referred to the Committee on Rules:
S. C. R. 403 - "Requesting the Division of Highways name the bridge at the junction of Route 65 and Route 49 in Matewan, Mingo County, the 'Earl Stafford Memorial Bridge'."
Whereas, In the early 1960s, Earl Stafford, unselfishly and in the interest of his fellow coal miners, underwent dangerous and vigorous medical testing to help determine the cause and effects of pneumoconiosis; and
Whereas, As is known today, this chronic disease of the lungs is an occupational disease which, in the case of Earl Stafford, is the result of repeated inhalation of coal dust; and
Whereas, The tests and studies that Earl Stafford permitted to be performed on him to determine the effects of pneumoconiosis have helped develop treatment for the disease as well as allow coal miners to receive compensation; and
Whereas, It is fitting that a lasting tribute be made to the memory of Earl Stafford; therefore, be it
Resolved by the Legislature of West Virginia:
That the Legislature hereby requests the Division of Highways name the bridge at the junction of Route 65 and Route 49 in Matewan, Mingo County, the "Earl Stafford Memorial Bridge"; and, be it
Further Resolved, That the Division of Highways is requested to have made and be placed signs identifying the bridge as the "Earl Stafford Memorial Bridge"; and, be it
Further Resolved, That the Clerk of the Senate is hereby directed to forward a copy of this resolution to the Secretary of the Department of Transportation.
A message from the Senate, by
The Clerk of the Senate, announced the adoption by the Senate and requested the concurrence of the House of Delegates in the adoption of the following concurrent resolution, which was read by its title and referred to the Committee on Rules:
S. C. R. 404 - "Requesting the Division of Highways name the bridge on U. S. Route 119 at Miller's Creek, Mingo County, also known as the North Nolan Bridge, the 'Arnold J. Starr Memorial Bridge'."
Whereas, Arnold J. Starr was born January 22, 1906, the son of Minnis and Nancy Marcum Starr; and
Whereas, Arnold J. Starr knew the importance of education. He attended Morehead State University in Kentucky, Concord College in Athens, Mercer County, and graduated with a degree in Early Childhood Education from Marshall University; and
Whereas, Arnold J. Starr was an educator in Mingo County and served as principal of Naugatuck Grade School and Red Jacket Junior High School. He also served as coach of the boys' basketball team; and
Whereas, In the 1940s, Arnold J. Starr purchased and operated a grocery store in Williamson until he was elected Mingo County Assessor, a position he held until January 1973. While serving as Assessor, he also served as President of the West Virginia County Officials Association and as a member of the West Virginia Assessors Association; and
Whereas, After leaving public service as an elected official, Arnold J. Starr continued to serve his community as an ordained minister. He also served the State of West Virginia in the National Guard where he obtained the rank of 1st Lieutenant. He was very active in a number of civic-minded organizations as well; and
Whereas, It is fitting that a lasting tribute be established to recognize the outstanding dedication and commitment Arnold J. Starr made to the State of West Virginia as an educator, elected county official and minister; therefore, be it
Resolved by the Legislature of West Virginia:
That the Legislature hereby requests the Division of Highways name the bridge on U. S. Route 119 at Miller's Creek, Mingo County, also known as the North Nolan Bridge, the "Arnold J. Starr Memorial Bridge"; and, be it
Further Resolved, That the Division of Highways is requested to have made and be placed signs identifying the bridge as the "Arnold J. Starr Memorial Bridge"; and, be it
Further Resolved, That the Clerk of the Senate is hereby directed to forward a copy of this resolution to the Secretary of the Department of Transportation.
A message from the Senate, by
The Clerk of the Senate, announced that the Senate had passed, without amendment, to take effect from passage, a bill of the House of Delegates as follows:
Com. Sub. for H. B. 412, Relating generally to Workers' Compensation.
A message from the Senate, by
The Clerk of the Senate, announced concurrence in the amendment of the House of Delegates and the passage, as amended, to take effect from passage, of
S. B. 4014, Making supplementary appropriation to Lottery Commission, Excess Lottery Revenue Fund Surplus.
At the request of Delegate Staton, and by unanimous consent, the House of Delegates returned to the Third Order of Business for the purpose of receiving committee reports.
Committee Reports

Chairman Michael, from the Committee on Finance, submitted the following report, which was received:
Your Committee on Finance has given further consideration to:
H. B. 401, Reducing the six percent sales tax on food and food ingredients intended for human consumption to five percent beginning January 1, 2006,
And reports the same back with proposed amendments pending and without recommendation as to its passage.
House Calendar
Third Reading
H. B. 407, Providing that department secretaries may transfer employees between departments in certain instances; on third reading, with the right to amend, having been postponed until this time, was taken up for further consideration.
An amendment recommended by the Committee on Finance, was reported by the Clerk and adopted, amending the bill on page one, after the enacting clause, by striking out the remainder of the bill and inserting in lieu thereof the following:
"That §5F-2-2 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that said code be amended by adding thereto a new section designated §5F-2-7, all to read as follows:
CHAPTER 5F. REORGANIZATION OF THE EXECUTIVE BRANCH
OF STATE GOVERNMENT.
ARTICLE 2. TRANSFER OF AGENCIES AND BOARDS.
§5F-2-2. Power and authority of secretary of each department.
(a) Notwithstanding any other provision of this code to the contrary, the secretary of each department shall have plenary power and authority within and for the department to:
(1) Employ and discharge within the office of the secretary employees as may be necessary to carry out the functions of the secretary, which employees shall serve at the will and pleasure of the secretary;
(2) Cause the various agencies and boards to be operated effectively, efficiently and economically, and develop goals, objectives, policies and plans that are necessary or desirable for the effective, efficient and economical operation of the department;
(3) Eliminate or consolidate positions, other than positions of administrators or positions of board members, ~~and~~ name a person to fill more than one position, and transfer employees between departments in accordance with the provisions of section seven of this article;
(4) Delegate, assign, transfer or combine responsibilities or duties to or among employees, other than administrators or board members;
(5) Reorganize internal functions or operations;
(6) Formulate comprehensive budgets for consideration by the Governor, and transfer within the department funds appropriated to the various agencies of the department which are not expended due to cost savings resulting from the implementation of the provisions of this chapter: Provided, That no more than twenty-five percent of the funds appropriated to any one agency or board may be transferred to other agencies or boards within the department: Provided, however, That no funds may be transferred from a special revenue account, dedicated account, capital expenditure account or any other account or funds specifically exempted by the Legislature from transfer, except that the use of appropriations from the State Road Fund transferred to the Office of the Secretary of the Department of Transportation is not a use other than the purpose for which the funds were dedicated and is permitted: Provided further, That if the Legislature by subsequent enactment consolidates agencies, boards or functions, the appropriate secretary may transfer the funds formerly appropriated to the agency, board or function in order to implement consolidation. The authority to transfer funds under this section shall expire on the thirtieth day of June, two thousand five;
(7) Enter into contracts or agreements requiring the expenditure of public funds, and authorize the expenditure or obligation of public funds as authorized by law: Provided, That the powers granted to the secretary to enter into contracts or agreements and to make expenditures or obligations of public funds under this provision shall not exceed or be interpreted as authority to exceed the powers granted by the Legislature to the various commissioners, directors or board members of the various departments, agencies or boards that comprise and are incorporated into each secretary's department under this chapter;
(8) Acquire by lease or purchase property of whatever kind or character and convey or dispose of any property of whatever kind or character as authorized by law: Provided, That the powers granted to the secretary to lease, purchase, convey or dispose of such property shall not exceed or be interpreted as authority to exceed the powers granted by the Legislature to the various commissioners, directors or board members of the various departments, agencies or boards that comprise and are incorporated into each secretary's department under this chapter;
(9) Conduct internal audits;
(10) Supervise internal management;
(11) Promulgate rules, as defined in section two, article one, chapter twenty-nine-a of this code, to implement and make effective the powers, authority and duties granted and imposed by the provisions of this chapter in accordance with the provisions of chapter twenty-nine-a of this code;
(12) Grant or withhold written consent to the proposal of any rule, as defined in section two, article one, chapter twenty-nine-a of this code, by any administrator, agency or board within the department. Without written consent, no proposal for a rule shall have any force or effect;
(13) Delegate to administrators the duties of the secretary as the secretary may deem appropriate from time to time to facilitate execution of the powers, authority and duties delegated to the secretary; and
(14) Take any other action involving or relating to internal management not otherwise prohibited by law.
(b) The secretaries of the departments hereby created shall engage in a comprehensive review of the practices, policies and operations of the agencies and boards within their departments to determine the feasibility of cost reductions and increased efficiency which may be achieved therein, including, but not limited to, the following:
(1) The elimination, reduction and restriction of the state's vehicle or other transportation fleet;
(2) The elimination, reduction and restriction of state government publications, including annual reports, informational materials and promotional materials;
(3) The termination or rectification of terms contained in lease agreements between the state and private sector for offices, equipment and services;
(4) The adoption of appropriate systems for accounting, including consideration of an accrual basis financial accounting and reporting system;
(5) The adoption of revised procurement practices to facilitate cost-effective purchasing procedures, including consideration of means by which domestic businesses may be assisted to compete for state government purchases; and
(6) The computerization of the functions of the state agencies and boards.
(c) Notwithstanding the provisions of subsections (a) and (b) of this section, none of the powers granted to the secretaries herein shall be exercised by the secretary if to do so would violate or be inconsistent with the provisions of any federal law or regulation, any federal-state program or federally delegated program or jeopardize the approval, existence or funding of any program.
(d) The layoff and recall rights of employees within the classified service of the state as provided in subsections five and six, section ten, article six, chapter twenty-nine of this code shall be limited to the organizational unit within the agency or board and within the occupational group established by the classification and compensation plan for the classified service of the agency or board in which the employee was employed prior to the agency or board's transfer or incorporation into the department: Provided, That the employee shall possess the qualifications established for the job class. The duration of recall rights provided in this subsection shall be limited to two years or the length of tenure, whichever is less. Except as provided in this subsection, nothing contained in this section shall be construed to abridge the rights of employees within the classified service of the state as provided in sections ten and ten-a, article six, chapter twenty-nine of this code, or the right of classified employees of the Board of Regents to the procedures and protections set forth in article twenty-six-b, chapter eighteen of this code.
(e) Notwithstanding any other provision of this code to the contrary, the secretary of each department with authority over programs which are payors for prescription drugs, including but not limited to, the Public Employees Insurance Agency, the Children's Health Insurance Program, the Division of Corrections, the Division of Juvenile Services, the Regional Jail and Correctional Facility Authority, the Workers' Compensation Fund, state colleges and universities, public hospitals, state or local institutions including nursing homes and veteran's homes, the Division of Rehabilitation, public health departments, the Bureau of Medical Services and other programs that are payors for prescription drugs, shall cooperate with the Office of the Pharmaceutical Advocate established pursuant to section four, article sixteen-d, chapter five of this code for the purpose of purchasing prescription drugs for any program over which they have authority.

§5F-2-7. Authority of Department Secretaries to transfer employees from one department to another.

(a) A department secretary may transfer a permanent state employee from a position that would otherwise be consolidated or eliminated to a currently funded vacant position in another department, if the following conditions are met:
(1) The secretary of each department affected by the transfer, together with the Division of Personnel, shall enter into a memorandum of understanding prior to any such transfer.
(2) An employee shall be transferred to a position at the same or higher level of benefits and rate of compensation and shall retain the same level of seniority as the position from which he or she is being transferred.
(3) Employees in the classification involved in the proposed consolidation or elimination shall be given not less than fifteen days notice prior to the proposed transfer. During the notice period, an affected employee may agree to be voluntarily transferred.
(4) An involuntary transfer may be ordered if an insufficient number of employees volunteer to be transferred. An employee may reject an involuntary transfer which would require the employee to travel a distance of thirty miles more than the distance the employee currently travels from his or her residence to his or her current job site. An employee who qualifies for and chooses to reject a transfer shall be laid off in accordance with legislative rules of the Division of Personnel.
(5) Involuntary transfers shall be made beginning with the least senior permanent employee who qualifies for the new position and moving up the seniority ranking until the necessary transfers have been made.
(6) A classified employee who is transferred shall retain his or her classified status regardless of the status of the position to which they transfer: Provided, That any change of status must be in accordance with the law.
(7) A department secretary may, when necessary, transfer the furniture and equipment to support the transfer of employees, excluding motor vehicles and excluding any assets purchased by designated funds for specific uses and purposes, the removal of which is prohibited by law or would jeopardize federal funds, grants or other funding sources.
(b) Nothing in this section shall affect any other rights provided by law.
(c) On or before the thirty-first day of December of each year, the Division of Personnel established in article six, chapter twenty-nine of this code shall report annually to the Joint Standing Committee on Government and Finance on all interdepartmental transfers of employees, furniture and equipment, whether the transfer of employees was voluntary or involuntary and the departments participating in the memorandum of understanding.
(d) The State Personnel Board established in article six, chapter twenty-nine of this code shall promulgate emergency and legislative rules in accordance with the provisions of article three, chapter twenty-nine-a of this code, prior to the thirty-first day of December, two thousand five, to effectuate the provisions of this section."
The bill was then read a third time.
Delegate Armstead announced that his brother was a public employee and inquired if the provisions of Rule 49 applied to him.
The Speaker stated that the situation demonstrated no direct pecuniary interest in the passage of the bill and, therefore, Delegate Armstead was required to vote.
This ruling will stand as the judgment of the Chair and of the House, pursuant to the inherent right to make, interpret and enforce our rules of procedure as established by our sovereign, non- reviewable Constitutional authority, and shall be binding in all other potential venues.
The question being on the passage of the bill, the yeas and nays were taken (Roll No. 838), and there were--yeas 95, nays 3, absent and not voting 2, with the nays and absent and not voting being as follows:
Nays: Eldridge, Hamilton and Louisos.
Absent And Not Voting: Ferrell and Iaquinta.
So, a majority of the members present and voting having voted in the affirmative, the Speaker declared the bill (H. B. 407) passed.
An amendment to the title of the bill, recommended by the Committee on Finance, was reported by the Clerk and adopted, amending the title of the bill to read as follows:
H. B. 407 - "A Bill to amend and reenact §5F-2-2 of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto a new section designated §5F-2-7, relating to the power and authority of department secretaries to transfer employees between departments; establishing guidelines for transfer of employees; protecting rights of transferred employees; requiring annual reports; and requiring promulgation of emergency and legislative rules."
Delegate Staton moved that the bill take effect from its passage.
On this question, the yeas and nays were taken (Roll No. 839), and there were--yeas 98, nays none, absent and not voting 2, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell and Iaquinta.
So, two thirds of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (H. B. 407) takes effect from its passage.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates and request concurrence therein.
S. B. 4010, Relating to proposed merger of Teachers' Defined Contribution Retirement System with State Teachers Retirement System; on third reading, with the right to amend, having been postponed until this time, was, reported by the Clerk.
On motion of Delegate Campbell, the bill was amended on page one, following the enacting clause by striking out the remainder of the bill and inserting in lieu thereof the following:
"That §18-7C-2, §18-7C-3, §18-7C-4, §18-7C-5, §18-7C-6, §18-7C-7, §18-7C-8, §18-7C-9, §18-7C-10, §18-7C-11, §18-7C-12, and §18-7C-13 of the Code of West Virginia, 1931, as amended, be amended and reenacted, all to read as follows:
ARTICLE 7C. MERGER OF TEACHERS' DEFINED CONTRIBUTION RETIREMENT SYSTEM WITH STATE TEACHERS RETIREMENT SYSTEM.

§18-7C-2. Legislative findings and purpose.
(a) The Legislature declares that the State of West Virginia and its citizens have always believed in a strong public education system. The Constitution of this state mandates a thorough and efficient public education system. The Legislature notes that the quality of our state's education system is dependent, inter alia, upon the motivation and quality of its teachers and educational service personnel.
(b) The Legislature finds and declares that the state of West Virginia is privileged to be the home of some of the best teachers and education service personnel in this nation, and that our teachers and education service personnel are dedicated and hard working individuals. The Legislature further finds and declares that our teachers and education service personnel deserve a retirement program whereby they know in advance what their retirement benefit will be, a defined benefit retirement program where our teachers and service personnel will not have to bear the risk of investment performance to receive their full retirement benefit. The Legislature notes that uncertainty exists in the investment markets, especially in the post September eleventh era, and that placing this risk and uncertainty upon the state in the form of a defined benefit plan will protect and ensure a meaningful retirement benefit for our teachers and educational service personnel.
(c) The Legislature declares that it is in the best interests of the teachers and public education in this state, and conducive to the fiscal solvency of the State Teachers Retirement System, that the Teachers' Defined Contribution Retirement System be merged with the State Teachers Retirement System.
(d) The Legislature also finds that a fiscally sound retirement program with an ascertainable benefit aids in the retention and recruitment of teachers and school service personnel, and that the provisions of this article are designed to accomplish the goals set forth in this section.
(e) The Legislature has studied this matter diligently and in making the determination to merge the two plans has availed itself of an actuarial study of the proposed merger by the actuary of the Consolidated Public Retirement Board ~~as well as engaging~~ and has engaged the service of two independent actuaries.
(f) The Legislature further finds and declares that members of a defined contribution system who must bear the attendant market risk and performance of their investments are truly being provided a significant and greater benefit where the defined contribution system is replaced with a defined benefit system in which the employer bears the risk of market fluctuations and investment performance, especially where those members decide through an election process whether to trade the defined contribution system for a defined benefit system.
§18-7C-3. Definitions.
As used in this article, unless the context clearly requires a different meaning:
~~(1) "Defined Contribution~~ ~~System" means the Teachers Defined Contribution~~ ~~System created and established in article seven-b of this chapter.~~
~~(2) "Existing retirement system" or "State Teachers Retirement System" means the State Teachers Retirement System created and established in article seven-a of this chapter.~~
~~(3) "Board" means the Consolidated Public Retirement Board created and established in article ten-d, chapter five of this code and its employees.~~
~~(4) "Member" means and includes any person who has at least one dollar in the Defined Contribution~~ ~~System.~~
(5) "Assets" or "all assets" means all member contributions, employer contributions and interest or asset appreciation in a member's Defined Contribution Account, less any applicable fees as approved by the Board.
(6) "Salary" or "annual salary" means the annual contract salary for those persons working in accordance with an employment contract and in any other event as an annualized amount determined by multiplying a person's hourly rate of pay by two thousand eighty hours.
~~(7) "Date of merger" means, in the event of a positive vote on the merger, the first day of July, two thousand six.~~
(1) "Assets" means all member contributions and employer contributions made on the member's behalf to the Defined Contribution Retirement System and earnings thereon, less any applicable fees as approved by the board: Provided, That if a member has withdrawn or cashed out any amounts, the amounts must have been repaid.
(2) "Board" means the Consolidated Public Retirement Board established in article ten-d, chapter five of this code, and its employees.
(3) "Date of merger" means, in the event of a positive vote on the merger, the first day of July, two thousand six.
(4) "Defined Contribution Retirement System" means the Teachers' Defined Contribution Retirement System established in article seven-b of this chapter.
(5) "Salary" means:
(A) For a member contributing to the Defined Contribution Retirement System during the two thousand five fiscal year, the actual salary earned for the two thousand five fiscal year divided by the employment service earned in the two thousand five fiscal year.
(B) For a member not contributing to the Defined Contribution Retirement System during the two thousand five fiscal year, the contract salary on the date of rehire.
(6) "State Teachers Retirement System" means the State Teachers Retirement System established in article seven-a of this chapter.
§18-7C-4. Merger.
(a) Subject to the provisions of subsection (b) of this section, on the first day of July, two thousand six, the ~~Teachers'~~ Defined Contribution Retirement System ~~created and established in this article~~ shall be merged and consolidated with the State Teachers Retirement System ~~created and established in article seven-a of this chapter~~ pursuant to the provisions of this article. ~~Provided,~~ ~~That if the~~
(b) If a majority of the eligible voting members of the Teachers' Defined Contribution Retirement System do not elect in favor of the merger, then all of the provisions of this article are void and of no force and effect, and the Defined Contribution Retirement System ~~created and established in article seven-b of this chapter shall continue~~ continues as the retirement system for all members in that system as of the thirtieth day of June, two thousand six. ~~Provided, however,~~ That prior to the merger and consolidation the State shall deposit into the Teachers Retirement System the amount necessary to cover any additional unfunded actuarial accrued liability which results to the system on the date that the assets and liabilities of the Teachers Defined Contribution Retirement System are merged into the Teachers Retirement System as certified by the Consolidated Public Retirement Board.
§18-7C-5. Notice, education, record keeping requirements.
(a) Commencing not later than the first day of August, two thousand five, the Consolidated Public Retirement Board shall begin an educational program with respect to the merger of the Defined Contribution ~~Plan~~ Retirement System with the State Teachers Retirement System.
(1) This ~~education~~ educational program shall address, at a minimum:
(A) The law providing for the merger;
(B) The mechanics of the merger;
(C) The election process;
(D) Relevant dates and time periods;
(E) The benefits, potential advantages and potential disadvantages if members fail or refuse to approve the merger and thereby elect to remain in the Defined Contribution Retirement System;
(F) The benefits, potential advantages and potential disadvantages of becoming a member of the State Teachers Retirement System;
(G) Potential state and federal tax implications in general attendant to the various options available to the members; and
(H) Any other pertinent information considered relevant by the board.
(2) The board shall ~~provide this~~ disseminate the information through:
(A) Its website; by
(B) Computer programs;
(C) Written ~~materials~~ or electronic materials or both, ~~written and electronic materials~~ delivered to each member; ~~and by~~
(D) Classes or seminars, if in the best judgment of the board ~~the classes and~~ classes or seminars are required to provide the necessary education for ~~members~~ a member to make an informed decision with respect to the election; ~~The Board shall also provide this information through computer programs, or~~
(E) At the discretion of the board, through a program of individual counseling which is optional on the part of the member; and by
(F) Through any other educational program ~~or programs~~ considered necessary by the board.
(b) The board shall provide each member with a copy of the written or electronic educational materials and with a copy of the notice of the election.
(1) The notice shall provide full and appropriate disclosure regarding the merger and of the election process, including the date of the election.
(2) The board also shall ~~also~~ cause notice of the election to be published in at least ten newspapers of general circulation in this state. This notice shall be:
(A) By Class III legal advertisement published in accordance with the provisions of article three, chapter fifty-nine of this code; and ~~The Board shall cause this notice to be~~
(B) Published not later than thirty days prior to the beginning of the election period and not sooner than sixty days prior to the beginning of the election period pursuant to section eight of this article.
(c) It is the responsibility of each member of the Defined Contribution ~~Plan~~ Retirement System to keep the board informed of his or her current address. If A member who does not ~~keep the Board informed of his or her current address, he or she~~ is considered to have waived his or her right to receive any information from the board with respect to the purposes of this article.
(d) Once the board has complied with the provisions of this section, ~~every~~ each member of the Defined Contribution ~~Plan~~ Retirement System is considered to have actual notice of the election and all matters pertinent to the election.

§18-7C-6. Conversion of assets from Defined Contribution Retirement System to State Teachers Retirement System; contributions; loans.

(a) If a majority of members voting elect to merge the Defined Contribution Retirement System into the State Teachers Retirement System:
(1) The consolidation and merger ~~shall be~~ is governed by the provisions of this article;
(2) The Defined Contribution Retirement System ~~shall~~ does not exist after the thirtieth day of June, two thousand six; and
(3) All members of that system ~~shall~~ become members of the State Teachers Retirement System as provided in this article.
(b) Following the election, if the vote is in favor of the merger, the board shall transfer all ~~assets~~ properties held in ~~defined contribution account~~ ~~into~~ the Defined Contribution Retirement System's Trust Fund to the State Teachers Retirement System. and members have the option to pay into the State Teachers Retirement System a one and one-half of one percent contribution for service in the Defined Contribution Plan being recognized in the State Teachers Retirement System. This contribution shall be calculated based on the member's salary as of the thirtieth day of June, two thousand five, and the members attained age on that date, applying both an annual backward salary scale projection from that date for prior years based upon the salary scale assumption applied in the actuarial valuation dated the first day of July, two thousand four, for the Teachers Retirement System and a one year forward salary scale projection for the year ending on the thirtieth day of June, two thousand six
(c) To receive full credit in the State Teachers Retirement System for service in the Defined Contribution Retirement System for which assets are transferred, members shall pay into the State Teachers Retirement System a one and one-half percent contribution. This contribution shall be calculated as one and one-half percent of the member's estimated total earnings for which assets are transferred. Except as otherwise provided in this section, each member shall pay the contribution required no later than the thirtieth day of June, two thousand seven.
(1) For a member contributing to the Defined Contribution Retirement System at any time during the two thousand five fiscal year and commencing membership in the State Teachers Retirement System on the first day of July, two thousand six:
(A) The estimated total earnings shall be calculated based on the member's salary, and the member's age nearest birthday on the thirtieth day of June, two thousand five;
(B) This calculation shall apply both an annual backward salary scale from that date for prior years' salaries and a forward salary scale for the salary for the two thousand six fiscal year.
(2) For a member not contributing to the Defined Contribution Retirement System during the two thousand five fiscal year:
(A) The estimated total earnings shall be calculated based on the member's salary and the member's age nearest birthday on the member's date of rehire.
(B) This calculation shall apply a backward salary scale from the member's date of rehire for prior years' salaries.
(3) The calculations in subdivisions (1) and (2) of this subsection are based upon the salary scale assumption applied in the West Virginia Teachers Retirement System Actuarial Valuation as of the first day of July, two thousand four, prepared for the Consolidated Public Retirement Board. This salary scale shall be applied regardless of breaks in service.
~~(c)~~ (d) The board shall make available to ~~the members~~ each member a loan for the purpose of paying all or part of the one and one-half percent contribution required in this section. The loan shall be offered in accordance with the provisions of section thirty-four, article seven-a of this chapter. ~~to be used by the members~~ ~~to pay all or a part of the one and one-half~~ ~~percent amount established in this section.~~
(1) Notwithstanding any provision of this code, ~~any~~ rule or ~~any~~ policy of the board to the contrary, the interest rate on any such loan ~~used to pay the one and one-half~~ ~~percent amount~~ may not exceed seven and one-half percent per annum. ~~and~~ The amount total borrowed ~~for this section~~ may not exceed twelve thousand dollars.
(2) In the event a ~~plan~~ loan made pursuant to this section is used to pay the one and one-half percent, the board shall make any necessary ~~actuarial~~ adjustments at the time the loan is made.
(3) Subject to the provisions of subdivision (4) of this section, the board shall make this ~~plan~~ loan available for members until the thirtieth day of June, two thousand seven.
(4) Upon returning to employment, a member who has left employment but not withdrawn his or her funds shall pay the one and one-half percent contribution within one year of being rehired. The member is eligible for one year following the date of rehire to obtain a loan for paying the contribution.
~~(d)~~ (e) The board shall develop and institute a payroll deduction program for ~~the~~ repayment of the ~~plan~~ loan established in this section.
~~(e)~~ (f) If the merger and consolidation is duly elected: ~~by a majority of those persons voting~~
(1) As of the first day of July, two thousand six, the members' contribution rate ~~shall become~~ becomes six percent of his or her salary or wages; and
(2) All members who make a contribution into the State Teachers Retirement System on or after the first day of July, two thousand six, ~~shall be~~ are governed by the provisions of article seven-a of this chapter, subject to the provisions of this article.
~~(f) In the event~~
(g) Subject to the provisions of subdivision (1) of this subsection, if a member has withdrawn or cashed out part of his or her ~~defined contribution plan~~ assets, that member will not ~~be given~~ receive credit for those moneys cashed out or withdrawn. The board shall make ~~an actuarial~~ a determination as to the amount of credit a member loses based on the periods of time and the amounts he or she has withdrawn or cashed out, which shall be expressed as a loss of service credit. ~~Provided,~~ ~~That~~
(1) A member may repay those amounts he or she previously cashed out or withdrew, along with interest as determined by the board, and receive the same credit as if the withdrawal or cash out never occurred. Such a member also shall pay the one and one-half percent contribution to receive full credit for the cashed out or withdrawn amounts being repaid to the State Teachers Retirement System.
(2) The loan provided in this section is not available to members to repay previously cashed out or withdrawn moneys.
(3) If the repayment is occurs five or more years following the cash out or withdrawal, ~~then he or she must~~ the member also shall repay any forfeited employer contribution account balance along with interest determined by the board. ~~in addition to repaying the cash out or withdrawn amount~~
~~(g) Where the~~
(h) Notwithstanding any provision of subsection (g) to the contrary, if a member has cashed out or withdrawn any of his or her ~~teacher defined contribution plan account balance~~ assets after the last day of June, two thousand one, and that member ~~wishes~~ chooses to repurchase ~~defined contribution plan~~ that service after the thirtieth day of June, two thousand six, ~~then~~ the member shall repay the previously distributed amounts and any applicable interest to the t~~eachers retirement~~ ~~plan~~ State Teachers Retirement System.
~~(h) Any prior~~
(i) Any service in the State Teachers Retirement System a member ~~may have~~ has before the date of the merger is not affected by the provisions of this article.
§18-7C-7. Service credit in State Teachers Retirement System following merger; adjustments.

(a) Any member transferring all of his or her assets from the Defined Contribution Retirement System to the State Teachers Retirement System pursuant to the provisions of this article, and who has not made any withdrawals or cash outs from his or her ~~defined contribution plan~~ assets, is entitled to service credit in the State Teachers Retirement System for each year, or part of a year, as governed by the provisions of article seven-a of this chapter, the member worked and contributed to the Defined Contribution ~~Plan~~ Retirement System.
(b) Any member who has made withdrawals or cash outs will receive service credit based upon the amounts transferred. ~~and~~ The board shall make the appropriate ~~actuarial determination of and the actuarial~~ adjustment to the service credit the member will receive.
(c) Any member's Defined Contribution Retirement System service credit will be reduced by twenty-five percent if the member does not pay the one and one-half percent contribution required by this article upon transfer to the State Teachers Retirement System. §18-7C-8. Election; board may contract for professional services.
(a) The board shall arrange for and hold an election for the members of the Defined Contribution ~~plan~~ Retirement System who are eligible to vote, pursuant to the provisions of subsection (d) of this section, on the issue of merging and consolidating the Defined Contribution ~~Plan~~ Retirement System into the State Teachers Retirement ~~Plan~~ ~~with the result being that~~ System.
(b) If a majority of the eligible voters ~~members~~ casting ballots ~~vote in the positive~~ in the election votes in the affirmative on the issue:
(1) All members of the Defined Contribution ~~Plan~~ Retirement System will transfer, or have transferred, all assets held by them or on their behalf in the Defined Contribution ~~Plan~~ Retirement System to the State Teachers Retirement System; ~~and they shall become members of and be~~
(2) On the date of the merger each member becomes a member and is entitled to the benefits of the State Teachers Retirement System; and be
(3) Each member is governed by the provisions of the State Teachers Retirement System subject to the provisions of this article. ~~Provided,~~ ~~That at least~~
(c) If fewer than one-half of the members eligible to vote of the Defined Contribution Plan ~~must vote on the question in order for~~ cast ballots in the election, the election is not ~~to be~~ valid and binding.
~~(b)~~ (d) Any person who has one dollar or more in ~~the defined contribution account created and established pursuant to article seven-b of this chapter~~ assets in the Defined Contribution Retirement System on the last day of December, two thousand five, may ~~vote on the question of the merger~~ and is eligible to vote in the election.
~~(c)~~ (e) Notwithstanding any other provision of this code to the contrary, the board may do all things necessary and convenient to maintain the Defined Contribution Retirement System and the State Teachers Retirement System during the transitional period and may retain the services of the professionals it considers necessary to do so. The board may also retain the services of the professionals it deems necessary to:
(1) Assist in the preparation of educational materials for members of the Defined Contribution ~~Plan~~ Retirement System who are eligible to vote on the merger to inform these members of their options in the election;
(2) Assist in the educational process of the members who are eligible to vote on the merger;
(3) Assist in the election process and the election; and
(4) Ensure compliance with all relevant state and federal laws.
~~(d)~~ (f) Due to the time constraints inherent in the merger process set forth in this article in specific, and due to the nature of the professional services required by the Consolidated Public Retirement Board in general, the provisions of article three, chapter five-a of this code, relating to the Division of Purchasing of the Department of Administration do not apply to any contracts for any actuarial services, investment services, legal services or other professional services authorized under the provisions of this article.
~~(e)~~ (g) The election ~~provided for in this section~~ may be held through certified mail or in any other ~~way~~ method the board determines is in the best interest of the members. Each ballot shall contain the following language, in bold fifteen-point type: "By casting this ballot I am making an educated, informed and voluntary choice as to my retirement and the retirement system of which I wish to be a member. I am also certifying that I understand the consequences of my vote in this election." Each ballot shall be signed by the member voting. The board shall retain the ballots in a permanent file. Any unsigned ballot is void.
~~(f)~~ (h) The election period shall begin not later than the first day of March, two thousand six. ~~and~~ The board shall ascertain the results of the election not later than the last day of March, two thousand six. The board shall certify the results of the election to the Governor, to the Legislature and to the members not later than the fifth day of April, two thousand six.
~~(g)~~ (i) The election period ~~shall terminate and no votes may~~ terminates and votes may not be cast or counted after the twelfth day of March, two thousand six, unless the election is conducted through the United States mail. ~~except that if the election is~~ If conducted through the ~~United States mails, the ballot~~ mail, any ballot ~~shall be postmarked not~~ postmarked later than the twelfth day of March, two thousand six, ~~in order to~~ is void and may not be counted.
~~(h)~~ (j) The board shall take all necessary steps to see that the merger does not affect the qualified status with the Internal Revenue Service of either retirement plan.
§18-7C-9. Election considered final.
(a) The election is considered final and each member, whether he or she ~~votes or fails~~ voted or failed to vote, ~~shall thereafter be~~ is bound by the results of the election. Every member is considered to have made an informed, educated, knowing and voluntary decision and choice with respect to the election. Those members who ~~fail or refuse~~ failed or refused to vote are also considered to have made an informed, educated, knowing and voluntary decision and choice with respect to the election and ~~with respect to~~ voting, and ~~shall be~~ are bound by the results of the election as if he or she had voted in the election.
(b) Only one election may be held pursuant to the provisions of this article. ~~on the issue of merging and consolidating the Defined Contribution Plan with the State Teachers Retirement Plan~~
§18-7C-10. Qualified domestic relations orders.
Any member having a qualified domestic relations order against his or her defined contribution account is allowed to repurchase service in the State Teachers Retirement System. ~~by repaying~~ The member shall repay any moneys previously distributed to the alternate payee along with the interest as set by the board. ~~Provided,~~ ~~That a member shall repay any amounts under this section~~ The member shall repay by the last day of June, two thousand twelve. The provisions of this section are void and of no effect if the members ~~of the Defined Contribution Plan~~ fail to elect to merge and consolidate the Defined Contribution ~~Plan~~ Retirement System with the State Teachers Retirement System.
§18-7C-11. Vesting.
Any member who works one hour or more after the date of merger ~~provided in this article~~ occurs is subject to the vesting schedule set forth in article seven-a of this chapter: Provided, That if a member is vested under the Defined Contribution ~~Plan~~ Retirement System and his or her last contribution was not made to the State Teachers Retirement System, that member is subject to the vesting schedule set forth in article seven-b of this chapter.
§18-7C-12. Minimum guarantees.
(a) Any member of the Defined Contribution ~~Plan~~ Retirement System who has made a contribution to the State Teachers Retirement System after the date of merger is guaranteed a minimum benefit equal to his or her member contributions plus the vested portion of employer contributions made on his or her behalf to the Defined Contribution ~~Plan~~ Retirement System as of the thirtieth day of June, two thousand six, ~~plus his or her vested employer account balance as of that date~~ plus any earnings thereon, as stated by the board or the board's professional contractor.
(b) A member of the Defined Contribution ~~Plan~~ Retirement System who has made contributions to the State Teachers Retirement System after the thirtieth day of June, two thousand six, where the Defined Contribution ~~Plan~~ Retirement System has been merged into the State Teachers Retirement System, ~~pursuant to the provisions of this article shall have~~ upon eligibility to receive a distribution under article seven-a of this chapter, shall have at a minimum the following three options:
(1) The right to receive an annuity from the State Teachers Retirement System ~~created and established in article seven-a of this chapter~~ based upon the ~~benefit and vesting~~ provisions of ~~that~~ article seven-a of this chapter;
(2) The right to withdraw from the State Teachers Retirement ~~Plan~~ System and receive his or her member accumulated contributions in the State Teachers Retirement System, plus regular interest thereon, as set forth in article seven-a of this chapter; or
(3) The right to withdraw and receive his or her ~~original vested defined contribution account balance as of the date of the merger~~ member contributions plus the vested portion of employer contributions made on his or her behalf to the Defined Contribution Retirement System, plus any earnings thereon as of the date of the merger, as determined by the board or its professional third party benefits administrator pursuant to the vesting provisions of section twelve of this article. This amount may be distributed in a lump sum or in periodic payments as elected by the member.
(c) Any member of the ~~Teachers~~ Defined Contribution Retirement System who makes no contribution to the State Teachers Retirement System following approval of the merger and following the date of merger is guaranteed the receipt of the amount in his or her total vested account in the Defined Contribution ~~Plan~~ Retirement System on the date of merger, plus interest thereon, at four percent accruing from the date of merger. This amount may be distributed in a lump sum or in periodic payments as elected by the member.
§18-7C-13. Due process and right to appeal.
Any person aggrieved by any ~~actuarial~~ determination made by the board following the election, if the result of the election is in favor of merger and consolidation, may petition the board and receive an administrative hearing on the matter in dispute. The administrative decision may be appealed to a circuit court."
The bill was then read a third time.
The Speaker requested that any members who were participants or beneficiaries or who had spouses who were participants or beneficiaries in the either the old or new retirement systems to so indicate. Those indicating affirmatively were:
Delegates Anderson, Browning, Duke, Ennis, Evans, Fragale, Hall, Leggett, Louisos, Palumbo, Paxton, Perry, Pethtel, Poling, Proudfoot, Roberts, Romine, Rowan, Schadler, Spencer, Stalnaker, Stephens, Sumner, Talbott, Varner, Webster and H. White.
The Speaker stated that there was uncertainty that any of the members or their spouses would be affected by the bill and that they were also members of a class of persons who could possibly be affected by the passage of the bill and that for those reasons he would require the members to vote.
The Speaker requested that any members who had parents, children or siblings who were participants or beneficiaries in the either the old or new retirement systems to so indicate. Those indicating affirmatively were:
Delegates Argento, Ashley, Beach, Boggs, Caputo, Crosier, DeLong, Perdue, Pethtel, Proudfoot, Schadler, Schoen, Sumner, Susman and Rick Thompson.
The Speaker stated that if the enumerated parents, children or siblings were not members of the immediate household, the aforementioned House members had no direct pecuniary interest in the bill and must vote thereon.
This ruling will stand as the judgment of the Chair and of the House, pursuant to the inherent right to make, interpret and enforce our rules of procedure as established by our sovereign, non- reviewable Constitutional authority, and shall be binding in all other potential venues.
The question being on the passage of the bill, the yeas and nays were taken (Roll No. 840), and there were--yeas 98, nays none, absent and not voting 2, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell and Iaquinta.
So, a majority of the members present and voting having voted in the affirmative, the Speaker declared the bill (S. B. 4010) passed.
On motion of Delegate Campbell, the title of the bill was amended to read as follows: S. B. 4010 - "A Bill to amend and reenact §18-7C-2, §18-7C-3, §18-7C-4, §18-7C-5, §18- 7C-6, §18-7C-7, §18-7C-8, §18-7C-9, §18-7C-10, §18-7C-11, §18-7C-12 and §18-7C-13 of the Code of West Virginia, 1931, as amended, all relating to the proposed merger of the Teachers' Defined Contribution Retirement System with the State Teachers Retirement System; amending certain definitions; removing the requirement that the state deposit money to cover any additional unfunded liability before the merger; clarifying credit receipt and asset calculations for transfer; clarifying when certain contributions shall be paid; clarifying loan eligibility; establishing date on which money must be in a member's account to be eligible to vote in the merger election; requiring payment of contribution for full service credit; adding the Board's ability to do all things necessary to maintain the current retirement system during any transition period; clarifying provisions regarding validity of election result; clarifying that the member may select either periodic payments or lump sum distribution of the member's total vested account at the date of merger if certain conditions are met; and technical corrections."
Delegate Staton moved that the bill take effect from its passage.
On this question, the yeas and nays were taken (Roll No. 841), and there were--yeas 98, nays none, absent and not voting 2, with the absent and not voting being as follows:
Absent And Not Voting: Ferrell and Iaquinta.
So, two thirds of the members elected to the House of Delegates having voted in the affirmative, the Speaker declared the bill (S. B. 4010) takes effect from its passage.
Ordered, That the Clerk of the House communicate to the Senate the action of the House of Delegates and request concurrence therein.
Leaves of Absence
At the request of Delegate Staton, and by unanimous consent, leave of absence for the day was granted Delegate Ferrell.
At 6:21 p.m., the House of Delegates adjourned until 9:30 a.m., Tuesday, September 13, 2005.