ENGROSSED
COMMITTEE SUBSTITUTE
FOR
H. B. 3158
(By Delegates White, Boggs, Caputo, Fragale, Webster,
Morgan, M. Poling, Campbell, Craig, Schadler and Rowan)
(Originating in the Committee on Finance)
[March 17, 2009]
A BILL to amend and reenact §8-13C-1, §8-13C-2, §8-13C-3, §8-13C-4,
§8-13C-5, §8-13C-9, §8-13C-11 and §8-13C-14 of the Code of
West Virginia, 1931, as amended; to amend said code by adding
thereto a new section, designated §8-13C-15; to amend and
reenact §8-15-8a and §8-15-8b of said code; to amend said code
by adding thereto two new sections, designated §8-15-8d and
§8-15-8e; to amend and reenact §8-22-16, §8-22-17, §8-22-19,
§8-22-20, §8-22-20a, §8-22-22, §8-22-22a, §8-22-23a, §8-22-26a
and §8-22-27 of said code; to amend said code by adding
thereto two new sections, designated §8-22-18a and §8-22-18b;
to amend said code by adding thereto a new section, designated
§11-21-12i; to amend and reenact §12-4-14 of said code; to
amend said code by adding thereto a new section, designated
§33-2-15e; to amend and reenact §33-3-14d and §33-3-33 of said
code; to amend said code by adding thereto three new sections,
designated §33-3-14e, §33-3-34 and §33-3-35; and to amend and reenact §60-3-17 of said code, all relating to providing
assistance to certain political subdivision activities
involving municipal policemen's and firemen's pensions and
relief systems and volunteer fire departments generally;
revising the conditions upon which municipalities may impose
pension relief occupational taxes, pension relief sales and
service and pension relief use taxes, and may issue bonds,
dedicated solely to reducing the unfunded actuarial accrued
liability of the municipality's policemen's and firemen's
pensions and relief funds; modifying requirements for bonds
issued by a municipality to eliminate the unfunded actuarial
accrued liability; creating new West Virginia Municipal
Pensions Matching Fund to which the alcohol beverage control
commissioner is directed to transfer funds; providing for the
investment, allocation and distribution of state funds on a
matching fund basis for the purpose of reducing the unfunded
actuarial accrued liability of policemen's and firemen's
pension and relief funds; establishing eligibility for
allocation and distribution of matching funds; adding
requirements for eligibility for allocations to volunteer fire
companies and departments from the Fire Protection Fund;
providing for the disposition of assets and moneys derived
from allocations from the Fire Protection Fund upon the sale
of the assets by a volunteer fire company or department or the
withdrawal of its certification; requiring sworn statements of
expenditures or reports from volunteer fire companies and departments receiving allocations from the Fire Protection
Fund to be filed with the Legislative Auditor; providing for
disposition of funds withheld from distribution for failure to
file the statements or reports; establishing criminal
penalties; establishing eligibility criteria for volunteer
fire companies and departments to receive funds allocated from
the Volunteer Firefighters Length of Service Awards Program
Fund; revising calculation of overtime for compensation and
average adjusted salary for new employees who are members of
municipal policemen's and firemen's pensions and relief
systems; requiring additional duties of municipal policemen's
and firemen's pensions and relief fund trustees; establishing
the West Virginia Municipal Pensions Oversight Board;
specifying powers, duties, liabilities and compensation of
oversight board members; requiring reporting on local pension
funds' investment returns; creating the West Virginia
Municipal Pensions Security Fund; transferring certain duties
from the State Treasurer to the oversight board and providing
for efficient transition; requiring municipal contributions on
a monthly basis; requiring deposits of certain revenues within
five days of receipt; increasing employee contributions to the
pension and relief funds for new employees to nine and one-
half percent of salary and for current members to eight and
one-half percent of salary; requiring the increased
contributions as a condition of eligibility to receive certain
insurance premium tax revenues; reducing time to qualify for insurance premium tax revenues allocation; providing for
annual actuarial report, for periodic review of the actuarial
process and for periodic actuarial audit; setting minimum
standards for annual municipality contributions to pension
funds; establishing target funding ratios of eighty, ninety
and one hundred percent of unfunded liabilities; establishing
amortization periods; eliminating alternative funding method;
providing for contract actuary; establishing actuarial
process; requiring reports; authorizing local pension boards
of trustees to investment with the state Investment Management
Board and Board of Treasury Investments; requiring compliance
with the Uniform Prudent Investor Act; revising restrictions
and conditions of authorized investments by municipal
trustees; requiring reporting of municipal trustees'
investment policy; requiring reporting of fees and
transactions costs; providing for disability examinations;
requiring completion of investigation of charge and any
implementation of disciplinary action by board of trustees
prior to consideration of disability retirement; authorizing
light-duty work at discretion of the municipality and the
employee; revising calculation of and requirements for
supplemental benefits; providing for reinstatement to
employment and payments of assessments for those returning
from military service; establishing deduction of insurance
premium surcharges assessed for volunteer fire companies and
departments for state personal income tax purposes; requiring study of casualty and surety insurance by insurance
commissioner; repeal of current fire and casualty insurance
additional premium tax provisions; continuation and increase
of fire and casualty insurance additional premium tax solely
for municipality's policemen's and firemen's pensions and
relief system and reallocation of the tax collections;
providing amortization schedule for plans with funding level
of at least one hundred ten percent; repeal of current fire
and casualty insurance premium surcharge provisions;
continuation of fire and casualty insurance premium surcharge
solely for volunteer fire companies and departments; civil
penalties for failure to collect the premium surcharge;
allocating and distributing the surcharge collections;
creating new Volunteer Firefighters Length of Service Awards
Program Fund to which the alcohol beverage control
commissioner is directed to transfer funds; providing for the
allocation and distribution of state funds to volunteer fire
companies and departments for the purpose of defraying the
cost of participation in length of service awards programs;
providing duties and expense allowance for State Treasurer and
State Insurance Commissioner; imposing requirements for the
use of distributed allocations; and providing disposition of
undistributed portion of the funds.
Be it enacted by the Legislature of West Virginia:
That §8-13C-1, §8-13C-2, §8-13C-3, §8-13C-4, §8-13C-5,
§8-13C-9, §8-13C-11 and §8-13C-14 of the Code of West Virginia, 1931, as amended, be amended and reenacted; that said code be
amended by adding thereto a new section, designated §8-13C-15; that
§8-15-8a and §8-15-8b of said code be amended and reenacted; that
said code be amended by adding thereto two new sections, designated
§8-15-8d and §8-15-8e; that §8-22-16, §8-22-17, §8-22-19, §8-22-20,
§8-22-20a, §8-22-22, §8-22-22a, §8-22-23a, §8-22-26a and §8-22-27
of said code be amended and reenacted; that said code be amended by
adding thereto two new sections, designated §8-22-18a and §8-22-
18b; that said code be amended by adding thereto a new section,
designated §11-21-12i; that §12-4-14 of said code be amended and
reenacted; that said code be amended by adding thereto a new
section, designated §33-2-15e; that §33-3-14d and §33-3-33 of said
code be amended and reenacted; that said code be amended by adding
thereto three new sections, designated §33-3-14e, §33-3-34 and
§33-3-35; and that §60-3-17 of said code be amended and reenacted,
all to read as follows:
CHAPTER 8. MUNICIPAL CORPORATIONS.
8
ARTICLE 13C. MUNICIPAL TAX IN LIEU OF BUSINESS AND OCCUPATION TAX;
AND MUNICIPAL TAXES APPLICABLE TO PENSION FUNDS; ADDITIONAL
AUTHORITIES RELATING TO PENSIONS AND BOND ISSUANCE.
§8-13C-1. Findings.
The Legislature finds that:
(a) Imposing additional taxes creates an extra burden on the
citizens of the state;
(b) Imposing additional taxes can be detrimental to the economy of the state;
(c) Imposing additional taxes is only proper under certain
circumstances;
(d) For many municipalities with
severe unfunded liabilities
of the police and fire pension funds, all available sources of
local revenue have been exhausted. Property taxes are at the
maximum allowed by the state Constitution and local business and
occupation taxes and utility taxes are at the maximum rates allowed
by state law. Other fees have reached the economic maximum and are
causing relocation of business outside the municipal boundaries;
(e) For many municipalities with
severe unfunded police and
fire pension fund liabilities, revenue from existing sources has
become stagnant over the past few years with no expectation of
significant future growth;
(f) For many municipalities with
severe unfunded police and
fire pension fund liabilities, payments required under state law to
fund fire and police pension funds are now close to equaling the
city payrolls for police and fire protection and will rise to
exceed those payrolls within a ten-year period;
(g) For many municipalities with
severe unfunded police and
fire pension fund liabilities, payments required under state law to
fund fire and police pension funds now constitute a large
percentage of those municipalities' total budget and will rise to
an even larger percentage of the available revenues in the next ten
years. Payment and benefit levels are dictated to the
municipalities by state law;
(h) As the required pension payments rise, many of the
municipalities with
severe unfunded police and fire pension fund
liabilities will find it impossible to maintain at minimum levels
necessary and proper city services including, but not limited to,
police and fire protection, street maintenance and repair and
sanitary services;
(i) For some of the municipalities with
severe unfunded
liabilities of the police and fire pension funds, the combination
of the steeply rising pension obligations and the stagnant revenue
sources raise the real possibility of municipal bankruptcy in the
near and predictable future. If this happens, pensioners would
either not receive the full benefits which they have been promised
or pressure would be placed on the state to fund these programs;
(j) For a municipality that has
the most severe a significant
unfunded liability in its pension funds, paying off the unfunded
liability in a timely manner would cause tremendous financial
hardship and the loss of many services that would otherwise be
provided to the municipality's citizens;
(k)
Only for a municipality that has the most severe unfunded
liability in its pension funds would the The imposition of the
pension relief municipal occupational tax, the pension relief
municipal sales and service tax, the pension relief municipal use
tax or any combination of those taxes
would be an appropriate
method
for a municipality that has a significant unfunded liability
in its pension funds of addressing to address the unfunded
liability;
and
(l) Only for a municipality that does not impose or ceases to
impose a business and occupation or privilege tax would the
imposition of an alternative municipal sales and service tax and an
alternative municipal use tax be appropriate
;
(m) Only for a municipality that has the most severe unfunded
liability in its pension funds would the closure of its existing
pension and relief fund plan for policemen and firemen to those
newly employed and the creation of a defined contribution plan for
newly employed policemen and firemen be appropriate; and
(n) Only for a municipality that has the most severe unfunded
liability in its pension funds, that closes its existing pension
and relief fund plan for policemen and firemen to those newly
employed and that creates a defined contribution plan for newly
employed police officers and firefighters, would the issuance of
bonds to address the unfunded liability of its existing pension and
relief fund plan for policemen and firemen be appropriate.
(o) No amendment to this article enacted during the third
extraordinary session of the Legislature held during calendar year
two thousand five may be interpreted or construed to allow a
municipality to adopt by ordinance a sales or use tax, by whatever
name called, that imposes either tax prior to the first day of
July, two thousand eight.
§8-13C-2. Definitions.
For the purposes of this article:
(a) "Alternative municipal sales and service tax" means the
tax authorized to be imposed by subsection (b), section four of this article only if a municipality does not impose or ceases to
impose the business and occupation or privilege tax authorized in
section five, article thirteen of this chapter;
(b) "Alternative municipal use tax" means the tax authorized
to be imposed by subsection (b), section five of this article only
if a municipality does not impose or ceases to impose the business
and occupation or privilege tax authorized in section five, article
thirteen of this chapter;
(c) "Qualifying municipality" means any municipality, as
defined in section two, article one of this chapter:
(1) In which the weighted average of the percentages to which
its policemen's and firemen's pension and relief funds are fully
funded is
three less than one hundred percent on the date of
adoption of the ordinance imposing the tax; and
(2) That has satisfied the requirements set forth in section
eleven of this article;
(d) "Pension relief municipal occupational tax" means the tax
authorized to be imposed by section three of this article and for
which the use of the proceeds of the tax are restricted by section
nine of this article;
(e) "Pension relief municipal sales and service tax" means the
tax authorized to be imposed by subsection (a), section four of
this article and for which the use of the proceeds of the tax are
restricted by section nine of this article;
(f) "Pension relief municipal use tax" means the tax
authorized to be imposed by subsection (a), section five of this article and for which the use of the proceeds of the tax are
restricted by section nine of this article; and
(g) "Taxable employee" means
, with respect to each calendar
year, any individual:
(1) Who holds employment
within the qualifying municipality
with an employer with a place of business located within the
qualifying municipality electing to impose
the municipal payroll
tax a pension relief municipal occupational tax pursuant to this
article; and
(2) Whose salaries, wages, commissions and other earned income
that would be included in federal
adjusted gross income for the
calendar year is more than $10,000
per year.
§8-13C-3. Pension relief municipal occupational tax.
(a) Effective on and after July 1, 2005, each qualifying
municipality, as defined in section two of this article, has the
plenary power and authority to impose, by ordinance, a pension
relief municipal occupational tax on taxable employees. Any
pension relief municipal occupational tax imposed pursuant to this
section shall meet the following requirements:
(1) The tax shall be imposed at a rate of one percent or less;
(2) The tax shall be imposed at a uniform rate; and
(3) The tax rate shall be applied only to salaries, wages,
commissions and other earned income of taxable employees that would
be included in federal
adjusted gross income for the year. The tax
rate may not be applied to other forms of income including, but not
limited to, intangible income and net profit from a business.
(b) Each employer with a taxable employee, during each pay
period, shall withhold from the taxable employee's salary the
amount of the tax as computed by applying the appropriate tax rate
to the taxable employee's salary during that pay period and remit
the withholdings to the appropriate municipal taxing authority.
§8-13C-4. Municipal sales and service taxes.
(a)
Pension relief municipal sales tax. -- On and after July
1, 2005, each qualifying municipality, as defined in section two of
this article, has the plenary power and authority to impose, by
ordinance, a pension relief municipal sales and service tax at a
rate not to exceed one percent, subject to the provisions of this
article:
Provided, That: (1) The tax does not apply to any
purchase of tangible personal property, custom software or the
results of taxable services in a transaction completed within the
corporate limits of the municipality before the
first day of July,
two thousand eight, or before such later date specified in the
ordinance of the municipality imposing the tax; and (2) the
effective date of the tax, or of a change in the rate of the tax,
shall be no earlier than the first day of a calendar quarter that
at a minimum begins one hundred eighty days after notice of the
tax, or of a change in the rate of tax, is provided to the Tax
Commissioner as provided in section six of this article.
(b)
Alternative municipal sales tax. - On and after July 1,
2005, notwithstanding subsection (a) of this section, and in
addition thereto in the case of a qualifying municipality, any
municipality that does not impose, or ceases to impose, the business and occupation or privilege tax authorized by section
five, article thirteen of this chapter has the plenary power and
authority to impose, by ordinance, an alternative municipal sales
and service tax at a rate not to exceed one percent, subject to the
provisions of this article:
Provided, That: (1) The tax does not
apply to any purchase of tangible personal property, custom
software or the results of taxable services in a transaction
completed within the corporate limits of the municipality before
the
first day of July, two thousand eight, or before such later
date specified in the ordinance of the municipality imposing the
tax; and (2) the effective date of the tax, or of a change in the
rate of the tax, shall be no earlier than the first day of a
calendar quarter that at a minimum begins one hundred eighty days
after notice of the tax, or of a change in the rate of tax, is
provided to the Tax Commissioner as provided in section six of this
article.
(c)
Uniformity of tax base. -- Any municipal sales and service
tax imposed under the authority granted by this section is subject
to the following:
(1) The base of a municipal sales and service tax imposed
pursuant to this section shall be identical to the base of the
consumers sales and service tax imposed pursuant to article
fifteen, chapter eleven of this code on sales made and services
rendered within the boundaries of the municipality, subject to the
following:
(A) Except for the exemption provided in section nine-f, article fifteen, chapter eleven of this code, all exemptions and
exceptions from consumers sales and service tax apply to a
municipal sales and service tax imposed pursuant to this section;
and
(B) Sales of gasoline and special fuel are not subject to a
municipal sales and service tax imposed pursuant to this section;
(2) Any municipal sales and service tax imposed pursuant to
this section applies solely to tangible personal property, custom
software and services that are sourced to the municipality. The
sourcing rules set forth in article fifteen-b, chapter eleven of
this code, including any amendments thereto, apply to municipal
sales and use taxes levied pursuant to this article.
(d)
Notification of Tax Commissioner. -- Any municipality that
imposes a municipal sales and service tax pursuant to this section
or changes the rate of a municipal sales and service tax imposed
pursuant to this section shall notify the Tax Commissioner pursuant
to section six of this article.
(e)
State level administration required. -- Any municipality
that imposes a municipal sales and service tax pursuant to this
section may not administer or collect the tax, but shall use the
services of the Tax Commissioner to administer, enforce and collect
the tax.
(f)
Tax in addition to state use tax. -- Any municipal sales
and service tax imposed pursuant to this section shall be imposed
in addition to the consumers sales and service tax imposed pursuant
to article fifteen, chapter eleven of this code on sales made and services rendered within the boundaries of the municipality and,
except as exempted or excepted, all sales made and services
rendered within the boundaries of the municipality shall remain
subject to the tax levied by that article.
(g)
Tax in addition to special district tax. -- Any municipal
sales and service tax imposed pursuant to this section shall be
imposed in addition to any tax imposed pursuant to section one,
article eighteen, chapter seven of this code, sections six and
seven, article thirteen of this chapter and section twelve, article
thirty-eight of this chapter.
§8-13C-5. Municipal use tax.
(a)
Pension relief municipal use tax. -- On and after July 1,
2005, each qualifying municipality, as defined in section two of
this article, that imposes a pension relief municipal sales and
service tax pursuant to this article shall impose, by ordinance, a
pension relief municipal use tax at the same rate that is set for
the pension relief municipal sales and service tax:
Provided,
That: (1) The tax does not apply to any use of tangible personal
property, custom software or the results of taxable services in the
corporate limits of the municipality where the first use occurs
before the
first day of July, two thousand eight, or before such
later date specified in the ordinance of the municipality imposing
the tax; and (2) the effective date of the tax, or of a change in
the rate of the tax, shall be no earlier than the first day of a
calendar quarter that at a minimum begins one hundred eighty days
after notice of the tax, or of a change in the rate of tax, is provided to the Tax Commissioner as provided in section six of this
article.
(b)
Alternative municipal use tax. -- On and after July 1,
2005, each municipality that imposes an alternative municipal sales
and service tax pursuant to this article shall impose, by
ordinance, an alternative municipal use tax at the same rate that
is set for the alternative municipal sales and service tax:
Provided, That: (1) The tax does not apply to any use of tangible
personal property, custom software or the results of taxable
services in the corporate limits of the municipality where the
first use occurs before the
first day of July, two thousand eight,
or before such later date specified in the ordinance of the
municipality imposing the tax; and (2) the effective date of the
tax, or of a change in the rate of the tax, shall be no earlier
than the first day of a calendar quarter that at a minimum begins
one hundred eighty days after notice of the tax, or of a change in
the rate of tax, is provided to the Tax Commissioner as provided in
section six of this article.
(c)
Uniformity of tax base. -- The base of a municipal use tax
imposed pursuant to this section shall be identical to the base of
the use tax imposed pursuant to article fifteen-a, chapter eleven
of this code on the use of tangible personal property, custom
software and taxable services within the boundaries of the
municipality, subject to the following:
(1) Except for the exemption provided in section nine-f,
article fifteen, chapter eleven of this code, all exemptions and exceptions from the use tax apply to a municipal use tax imposed
pursuant to this section; and
(2) Uses of gasoline and special fuel are not subject to a
municipal use tax imposed pursuant to this section when the use is
subject to the tax imposed by article fourteen-c, chapter eleven of
this code.
(d)
Notification to Tax Commissioner. -- Any municipality that
imposes a municipal use tax pursuant to this section or changes the
rate of a municipal use tax imposed pursuant to this section shall
notify the Tax Commissioner pursuant to section six of this
article.
(e)
State level administration required. -- Any municipality
that imposes a municipal use tax pursuant to this section may not
administer or collect the tax, but shall use the services of the
Tax Commissioner to administer, enforce and collect the taxes.
(f)
Tax in addition to state use tax. -- Any municipal use tax
imposed pursuant to this section shall be imposed in addition to
the use tax imposed pursuant to article fifteen-a, chapter eleven
of this code on the use of tangible personal property, custom
software or taxable services within the boundaries of the
municipality and, except as exempted or excepted, all use of
tangible personal property, custom software or taxable services
within the boundaries of the municipality shall remain subject to
the tax levied by said article.
(g)
Tax in addition to special district tax. -- Any municipal
use tax imposed pursuant to this section shall be imposed in addition to any tax imposed pursuant to section one, article
eighteen, chapter seven of this code, sections six and seven,
article thirteen of this chapter and section twelve, article
thirty-eight of this chapter.
§8-13C-9. Restriction on use of certain revenues.
(a) All proceeds from a pension relief municipal occupational
tax, a pension relief municipal sales and service tax and a pension
relief municipal use tax imposed pursuant to this article shall be
used solely for one of the following purposes:
(1) Directly reducing the unfunded actuarial accrued liability
of policemen's and firemen's pension and relief funds of the
qualifying municipality imposing the tax; or
(2) Meeting the principal, interest and any reserve
requirement obligations of any bonds issued pursuant to section
fourteen of this article.
(b) For any qualifying municipality that chooses to apply the
proceeds from a pension relief municipal occupational tax, a
pension relief municipal sales and service tax, a pension relief
municipal use tax or any permitted combination of these taxes
directly to reducing the unfunded actuarial accrued liability of
policemen's and firemen's pension and relief funds, the qualifying
municipality loses its authority to impose those taxes after:
(1) The municipality fails to
annually fund, at a pay the
minimum
all normal costs of contributions to the qualifying
municipality's policemen's and firemen's pension and relief
funds
fund as
determined required by
the consulting actuary as provided under section twenty-a sections nineteen and twenty, article
twenty-two of this chapter; or
(2) The unfunded actuarial accrued liability of the qualifying
municipality's policemen's and firemen's pension and relief funds
is eliminated; or
(3) Sufficient moneys accrue from the proceeds of the pension
relief municipal occupational tax, the pension relief municipal
sales and service tax, the pension relief municipal use tax or any
permitted combination of these taxes to eliminate the unfunded
actuarial accrued liability of the qualifying municipality's
policemen's and firemen's pension and relief funds.
(c) For any qualifying municipality that chooses to apply the
proceeds from a pension relief municipal occupational tax, a
pension relief municipal sales and service tax, a pension relief
municipal use tax or any permitted combination of these taxes to
the principal, interest and any reserve requirement and arbitrage
rebate obligations on any bonds issued pursuant to section fourteen
of this article, the qualifying municipality loses its authority to
impose those taxes after:
(1) The principal, interest and any reserve requirement and
arbitrage rebate obligations on the bonds issued pursuant to
section fourteen of this article are met;
(2) Sufficient moneys accrue from the proceeds of the pension
relief municipal occupational tax, the pension relief municipal
sales and service tax, the pension relief municipal use tax or any
permitted combination of these taxes to meet the principal, interest and any reserve requirement and arbitrage rebate
obligations on the bonds issued pursuant to section fourteen of
this article; and
(3) After retirement of bonds issued pursuant to section
fourteen of this article, any unfunded actuarial accrued liability
of the qualifying municipality's pension and relief funds for
policemen and firemen is eliminated.
§8-13C-11. Additional requirements for authority to impose certain
taxes.
(a) The authority to impose the pension relief municipal
occupational tax, the pension relief municipal sales and service
tax and the pension relief municipal use tax, all provided in this
article, is not effective until a municipality wishing to impose
the taxes presents to the joint committee on government and finance
a plan to remove the unfunded liabilities of its policemen's and
firemen's pension funds and the necessary changes in West Virginia
law have been enacted to allow for implementation of the municipal
plan.
(b) Notwithstanding any other provision of this code to the
contrary, no
cost-of-living increases or other benefit increases
,
except as may be provided pursuant to section twenty-six-a, article
twenty-two of this chapter, and no new benefits
, may be granted to
or received by any member or beneficiary of a policemen's and
firemen's pension and relief funds of a municipality during any
period that the municipality imposes a pension relief municipal
occupational tax, a pension relief municipal sales and service tax, the pension relief municipal use tax or any combination thereof
authorized under this chapter.
§8-13C-14. Authorization for closure of existing retirement plans,
issuance of bonds for certain qualifying
municipalities.
(a) Notwithstanding any other section of this code to the
contrary and subject to subsection (b) of this section, any
qualifying municipality, as that term is defined in section two of
this article, has the following authority:
(1) To close its existing pension and relief fund plan for
policemen and firemen provided in article twenty-two of this
chapter for policemen and firemen hired on and after a future date
to be set by the governing body of the municipality; and
(2) To issue revenue bonds for the purpose of eliminating the
unfunded actuarial accrued liability of the existing pension and
relief fund plan for policemen and firemen and to issue refunding
bonds issued to refund, in whole or in part, bonds issued for such
purpose.
(b) The authority granted in subsection (a) of this section is
subject to the following:
(1) No qualifying municipality may close an existing pension
and relief fund plan for policemen and firemen pursuant to
subdivision (1), subsection (a) of this section unless
:
(A) The the qualifying municipality issues revenue bonds for
the purpose of eliminating the unfunded actuarial accrued liability of the existing pension and relief fund plan for policemen and
firemen;
and
(B) The qualifying municipality establishes a defined
contribution plan for police officers and firefighters pursuant to
subdivision (2), subsection (a) of this section;
(A) The qualifying municipality closes its existing pension
and relief fund plan for policemen and firemen pursuant to
subdivision (1), subsection (a) of this section; and
(B) The qualifying municipality issues revenue bonds for the
purpose of eliminating the unfunded actuarial accrued liability of
the existing pension and relief fund plan for policemen and
firemen;
(3) No qualifying municipality may issue bonds pursuant to
subdivision (3), subsection (a) of this section unless:
(A) The qualifying municipality closes its existing pension
and relief fund plan for policemen and firemen pursuant to
subdivision (1), subsection (a) of this section; and
(B) The qualifying municipality establishes a defined
contribution plan for police officers and firefighters pursuant to
subdivision (2), subsection (a) of this section;
(4) (2) No qualifying municipality may exercise any authority
provided in subsection (a) of this section unless it obtains a
determination of the unfunded actuarial accrued liability of its
existing pension and relief fund plans for policemen and firemen
from the State Treasurer
or the Municipal Pensions Oversight Board.
(5) (3) If the qualifying municipality elects to issue bonds pursuant to subdivision (3), subsection (a) of this section, the
following applies:
(A) The proceeds of the revenue bonds shall be at least equal
to the unfunded actuarial accrued liability as determined by the
State Treasurer or the State Treasurer Municipal Pensions Oversight
Board plus any reserve fund requirements and any costs, including
accrued or capitalized interest, associated with issuing the bonds.
All of the proceeds shall be applied to the payment of the unfunded
actuarial accrued liability, the funding of reserve requirements
and the payment of costs associated with the issuance of the bonds
and may not be used for any other purpose;
(B) The proceeds of any refunding bonds shall be used to
refund all or any portion of the revenue bonds authorized in this
section, to fund any required reserve requirements for the
refunding bonds and to pay costs of issuance associated with the
refunding bonds and for no other purpose;
and
(C) Notwithstanding any other provision of this code to the
contrary, the proceeds of the bonds or refunding bonds shall be
invested with the West Virginia Investment Management Board
established under the provisions of article six, chapter twelve of
this code
; and
(D) Any bonds issued pursuant to this article shall be
guaranteed through a municipal bond insurance policy, a letter of
credit or some other form of commonly used commercial guaranty that
shifts the credit risk associated with the debt service payments on
the bonds to the guarantor; and
(E) The bonds and any offering document associated with the
bonds shall contain the following legend: "The bonds are limited
obligations of [the qualifying municipality] and are not a lien or
charge upon the funds or property of [the qualifying municipality],
except to the extent of the pledge of [pension relief taxes]. The
bonds shall not constitute general obligations of either the
[qualifying municipality] or the state of West Virginia and under
no circumstances shall the bonds be payable from, nor shall the
holders thereof have any rightful claim to, any income, revenues,
funds or assets of the [qualifying municipality] or the state of
West Virginia other than from the [pension relief taxes] pledged to
the payment of the bonds. The bonds are not a moral obligation of
the state of West Virginia or in any way secured by the assets of
the state of West Virginia. In the event of a default with respect
to the bonds, the state of West Virginia will not cure such default
or provide any funds to cure such default. The holders of the
bonds shall rely solely upon the [pension relief taxes] for
repayment of this bond."
(6) (5)If the qualifying municipality elects to issue bonds
pursuant to subdivision (3), subsection (a) of this section, the
qualifying municipality shall impose a pension relief municipal
occupational tax, a pension relief municipal sales and service tax,
a pension relief municipal use tax or any permitted combination of
these taxes at a rate projected to generate sufficient revenue to
meet the principal, interest and any reserve requirement and
arbitrage rebate obligations on the bonds, subject to the following:
(A) This requirement is void after the qualifying municipality
loses its authority to impose those taxes pursuant to subsection
(b) or (c), section nine of this article; and
(B) If the revenue generated by a pension relief municipal
occupational tax, a pension relief municipal sales and service tax
and a pension relief municipal use tax is insufficient to meet the
principal, interest and any reserve requirement and arbitrage
rebate obligations on the bonds, the qualifying municipality shall
not issue the bonds;
(7) (6) If the qualifying municipality elects to issue bonds
pursuant to subdivision (3), subsection (a) of this section, all
proceeds from a pension relief municipal occupational tax, a
pension relief municipal sales and service tax, a pension relief
municipal use tax or any permitted combination of these taxes shall
be dedicated solely to paying the principal, interest and any
reserve requirement and arbitrage rebate obligations on the bonds;
(8) (7) If the qualifying municipality elects to close an
existing pension and relief fund plan for policemen and firemen
pursuant to subdivision (1), subsection (a) of this section, all
current and retired employees in the existing pension and relief
fund plans for policemen and firemen shall remain in that plan and
shall be paid all benefits of that plan in accordance with Part
III, article twenty-two of this chapter; and
(9) (8) Any such revenue bonds or refunding bonds shall bear
interest at not more than twelve percent per annum, payable semiannually, or at shorter intervals, and shall mature at such
time or times, not exceeding thirty years, as may be determined by
the ordinance authorizing the issuance of the bonds. The bonds may
be made redeemable before maturity, at the option of the
municipality at not more than the par value thereof, plus a premium
of not more than five percent, under such terms and conditions as
may be fixed by the ordinance authorizing the issuance of the
bonds. The principal and interest of the bonds may be made payable
in any lawful medium. The ordinance shall determine the form of
the bonds and shall set forth any registration or conversion
privileges, and shall fix the denomination or denominations of such
bonds, and the place or places of the payment of principal and
interest thereof, which may be at any banking institution or trust
company within or without the state. The bonds shall contain a
statement on their face that the municipality shall not be
obligated to pay the same, or the interest thereon, except from the
special fund derived from revenues collected by the municipality
from the imposition of a pension relief municipal occupational tax,
a pension relief municipal sales and service tax, a pension relief
municipal use tax or any permitted combination of these taxes and
which the municipality may pledge as security for the bonds. All
the bonds shall be, and shall have and are hereby declared to have
all the qualities and incidents of negotiable instruments, under
the Uniform Commercial Code of the state. The bonds shall be
executed in such manner as the governing body of the municipality
may direct. The bonds shall be sold by the municipality in such manner as may be determined to be for the best interest of the
municipality. Any surplus of the bond proceeds over and above the
cost of paying the unfunded liability, plus any amount required for
reserves, capitalized interest and costs of issuance thereof or in
the case of refunding bonds over and above the amount necessary to
refund the existing bonds being refunded by such issue, plus any
amount required for reserves, capitalized interest and costs of
issuance thereof, shall be paid into the debt service fund for such
bonds;
(A)
Meet the federal qualification requirements of 26 U.S.C.
§401 and related sections of the Internal Revenue Code as
applicable to governmental plans Satisfy, in both form and
operation, the tax qualification requirements of § 401(a) or 457(b)
and related sections of the Internal Revenue Code of 1986
(including successors thereto and amendments thereof), as
applicable to governmental plans, and the qualifying municipality
shall adopt a written plan document which embodies the requirements
of this article, including applicable federal qualification
requirements and, shall have the authority to promulgate rules and
to amend the plan as may be required from time to time to effect
the intent of this provision;
(B) Set the amount of each employee's contribution and the
amount of each employer's contribution;
(C) Require that the amount of annuity payments a retired
member receives be based solely upon the balance in the member's
annuity account at the date of retirement, the retirement option selected, or in the event of an annuity option being selected, the
actuarial life expectancy of the member of any other factors that
normally govern annuity payments;
(D) Include detailed provisions that require the prudent and
safe handling of the retirement funds
for the exclusive benefit of
the plan and its participants and beneficiaries, including without
limitation, rules which provide for the investment of retirement
funds, in accordance with fiduciary standards imposed by state law
and the Internal Revenue Code of 1986 (including successors thereto
and amendments thereof), as applicable to governmental plan. The
qualifying municipality may elect to provide that individual
participants and beneficiaries may exercise control over the
investment of the assets held in their respective individual
accounts. To the extent that a participant or beneficiary
exercises such investment control over his or her account, no
person who is otherwise a fiduciary shall be liable for any loss,
or by reason of any breach, which results from such participant's
or beneficiary's exercise of control, to the extent allowed by law;
(E) Provide retirement options; and
(F) Include any other provision and authorize any policy that
the qualifying municipality determines is necessary or incidental
to the establishment and operation of the defined contribution
plan. The other provisions may include, but are not limited to,
the authorization to contract with one or more private pension,
insurance, annuity, mutual fund or other qualified company or
companies to administer the day-to-day operations of the plan and to provide investments.
(c) The interest earned on any bonds issued under the
authority granted in this section is exempt from any tax imposed
under the provisions of this code.
(d) Bonds and refunding bonds issued pursuant to the authority
provided by this section shall never constitute a direct and
general obligation of the State of West Virginia and the full faith
and credit of the state is not pledged to secure the payment of the
principal and interest of such bonds. Bonds and refunding bonds
issued under this section shall state on their face that the bonds
or bonds do not constitute a debt of the State of West Virginia and
that payment of the bonds, interest and charges thereon cannot
become an obligation of the State of West Virginia.
§8-13C-15. Matching funds to reduce the unfunded actuarial accrued
liability of policemen's and firemen's pension and
relief funds.
(a) There is hereby created in the State Treasury a
nonexpiring special revenue fund designated the "West Virginia
Municipal Pensions Matching Fund" which shall be administered by
the West Virginia Municipal Pensions Oversight Board solely for the
purposes as provided in this section. The fund shall consist of
all moneys deposited pursuant to section seventeen, article three,
chapter sixty of this code. All earnings shall accrue to and be
retained by the fund.
(b) Beginning July 1, 2009, the Municipal Pensions Oversight Board shall annually invest the collections of the fund with the
West Virginia Investment Management Board or the Board of Treasury
Investments.
(c) No allocations or distributions may be made from the fund
before January 1, 2015. After December 31, 2014, the Municipal
Pension Oversight Board shall in each calendar year distribute
one-fifth of the moneys in the fund, as determined as of January 1
of the calendar year, to eligible municipal policemen's or
firemen's pension and relief funds, subject to provisions in
section eighteen-b, article twenty-two, chapter eight of this code
for the purposes and upon the conditions set forth in this section.
(d) The annual allocations and distributions of the moneys in
the fund shall be made only to qualifying municipalities that, for
the calendar year, have dedicated the proceeds of a pension relief
municipal occupational tax, a pension relief municipal sales and
service tax, a pension relief municipal use tax or any other tax,
or any combination of those taxes, or funding from any other source
available to the qualifying municipality, solely for the purposes
set forth in section nine of this article and expends the same for
those purposes. For purposes of this section, "qualifying
municipality" means any municipality, as defined in section two,
article one of this chapter:
(A) In which the weighted average of the percentages to which
its policemen's and firemen's pension and relief funds are fully
funded is less than one hundred percent on the date of the most
recent actuarial valuation of the funds made under section twenty, article twenty-two of this chapter, next preceding the
municipality's annual application for a distribution of funds under
this section; and
(B) That has satisfied the requirements set forth in section
eleven of this article.
(e) Except as otherwise provided in this paragraph, annual
allocations and distributions of moneys in the fund shall be made
on a pro rata basis based upon the corresponding municipalities'
average number of members who worked at least one hundred hours per
month and average monthly number of retired members. An allocation
and distribution made under this section shall be used by the
municipality solely for the purposes of section nine of this
article. The distributions shall be provided on a matching basis
so that the amount of an allocation from the fund to a municipality
may not exceed the amount of the revenues the municipality applies
for those purposes from its funding source or sources as described
in subsection (d) of this section.
ARTICLE 15. FIRE FIGHTING; FIRE COMPANIES AND DEPARTMENTS; CIVIL
SERVICE FOR PAID FIRE DEPARTMENTS.
§8-15-8a. Eligibility for allocation from Municipal Pensions and
Protection Fund or the Fire Protection Fund.
In order To be eligible to receive revenues allocated from the
Municipal Pensions and Protection Fund or the Fire Protection Fund,
each volunteer or part volunteer fire company or department must
meet the requirements listed in subdivisions (a) through
(c) (d) of this section.
Each volunteer or part volunteer fire company or department
must:
(a) Submit and maintain current submission of fire loss data
to the state fire marshal, including verification, by notarized
statement, if no fire loss has occurred;
(b) Complete or be in the process of receiving firefighters
training, including section one of the West Virginia university
fire service extension or its equivalent. Such fire company or
department must have at least ten members certified as having
completed such training or if a volunteer fire company or
department has twenty or fewer members, fifty percent of the active
volunteer members must have completed such training;
and
(c) Comply with the sworn statement of annual expenditures or
report requirements set forth in section eight-d of this article;
and
(c) (d) Comply with all
other applicable federal and state
laws.
§8-15-8b. Authorized expenditures of monies from the Municipal
Pensions and Protection Fund or the Fire Protection
Fund; redistribution upon decertification.
(a) Revenues Monies allocated
from the Fire Protection Fund to
volunteer and part volunteer fire companies and departments may be
expended only for the items listed in subdivisions (1) through
(12)
(13) of this
section subsection.
Funds Monies received from the State for volunteer and part
volunteer fire companies and departments, pursuant to
sections
fourteen-d and thirty-three section thirty-four, article three, and
section
sixteen-a, article twelve seven, article twelve-c, all of
chapter thirty-three of this code, may not be commingled with funds
received from any other source. Expenditures may be made for the
following:
(1) Personal protective equipment, including protective head
gear, bunker coats, pants, boots, combination of bunker pants and
boots, coats and gloves;
(2) Equipment for compliance with the national fire protection
standard or automotive fire apparatus, NFPA-1901;
(3) Compliance with insurance service office recommendations
relating to fire departments;
(4) Rescue equipment, communications equipment and ambulance
equipment:
Provided, That no moneys received from the municipal
pensions and protection fund or the fire protection fund may be
used for equipment for personal vehicles owned or operated by
volunteer fire company or department members;
(5) Capital improvements reasonably required for effective and
efficient fire protection service and maintenance of the capital
improvements;
(6) Retirement of debts;
(7) Payment of utility bills;
(8) Payment of the cost of immunizations, including any
laboratory work incident to the immunizations, for firefighters against hepatitis-b and other blood borne pathogens:
Provided,
That the vaccine shall be purchased through the state immunization
program or from the lowest cost vendor available:
Provided,
however, That volunteer and part volunteer fire companies and
departments shall seek to obtain no cost administration of the
vaccinations through local boards of health:
Provided further,
That in the event any volunteer or part volunteer fire company or
department is unable to obtain no cost administration of the
vaccinations through a local board of health, the company or
department shall seek to obtain the lowest cost available for the
administration of the vaccinations from a licensed health care
provider;
(9) Any filing fee required to be paid to the Legislative
Auditor's Office under section fourteen, article four, chapter
twelve of this code relating to sworn statements of annual
expenditures submitted by volunteer or part volunteer fire
companies or departments that receive state funds or grants;
(10) (9) Property/casualty insurance premiums for protection
and indemnification against loss or damage or liability;
(11) (10) Operating expenses reasonably required in the normal
course of providing effective and efficient fire protection
service, which include, but are not limited to, gasoline, bank
fees, postage and accounting costs; and
(12) (11) Dues paid to national, state and county
associations.
(b) If a volunteer or part volunteer fire company or department purchases an item with monies allocated from the Fire
Protection Fund and the item is subsequently sold, any monies
derived by the company or department from the sale of that item
shall be expended in accordance with the provisions of subsection
(a) of this section.
(c) If the State Fire Marshal issues a cease and desist order
to a volunteer or part volunteer fire company or department to stop
operations after the State Fire Commission has withdrawn
certification pursuant to article three, chapter twenty-nine of
this code, the State Fire Marshal shall, within sixty days of the
cease and desist order, transfer any unexpended, unencumbered
monies which were allocated to the volunteer fire company or
department from the Fire Protection Fund to a special revenue
account hereby created in the State Treasury, designated the
"Volunteer Fire Department Decertification Account." The next
following quarter the State Treasurer shall pay the amount held in
the special revenue account to the Fire Protection Fund to be
redistributed to eligible volunteer fire companies or departments.
(d) If the State Fire Marshal issues a cease and desist order
to a volunteer or part volunteer fire company or department to stop
operations after the State Fire Commission has withdrawn
certification pursuant to the provisions of article three, chapter
twenty-nine of this code, the State Fire Marshal shall, within one
year of the cease and desist order, implement one of the following
options to sell or transfer any items purchased by the decertified
volunteer fire company or department with monies allocated from the Fire Protection Fund:
(1) If the item was purchased solely with monies allocated
from the Fire Protection Fund, the State Fire Marshal may transfer
the item to another volunteer fire company or department, with
priority given to companies or departments located in the
municipality or county in which the decertified company or
department was located;
(2) If the item was purchased solely with monies allocated
from the Fire Protection Fund, the State Fire Marshal may sell the
item and any monies derived from the sale of that item shall be
placed in the Volunteer Fire Department Decertification Account.
The next following quarter the State Treasurer shall pay the amount
held in the special revenue account to the Fire Protection Fund to
be redistributed to eligible volunteer fire companies or
departments;
(3) If the item was purchased with monies allocated from the
Fire Protection Fund and monies allocated from municipal or county
sources, the State Fire Marshal may transfer the item to another
volunteer fire company or department in the municipality or county
where the decertified company or department is located if each
municipality or county which allocated monies towards the purchase
of the item agrees to the transfer; or
(4) If the item was purchased with monies allocated from the
Fire Protection Fund and monies allocated from municipal, county or
other sources, the State Fire Marshal may sell the item and
distribute the proceeds derived from the sale on a pro-rata basis according to the State Fire Marshal's reasonable approximation of
the percentage of monies allocated from each funding source for the
purchase of the item. Any monies derived from the sale which are
attributable to allocations from the Fire Protection Fund shall be
placed in the Volunteer Fire Department Decertification Account.
The next following quarter the State Treasurer shall pay the amount
held in the special revenue account to the Fire Protection Fund to
be redistributed to eligible volunteer fire companies or
departments.
(e) The State Fire Marshal shall propose rules for legislative
approval in accordance with the provisions of article three,
chapter twenty-nine-a of this code to establish criteria for the
sale or transfer of items or monies pursuant to the provisions of
subsections (c) and (d) of this section and to otherwise implement
the provisions of subsections (c) and (d).
§8-15-8d. Sworn statement of annual expenditures or report by
volunteer or part volunteer fire companies or
departments; penalties for noncompliance; penalties
for fraudulent statement.
(a) Volunteer or part volunteer fire companies or departments
receiving formula distributions pursuant to sections thirty-four,
article three, and section seven, article twelve-c, all of chapter
thirty-three of this code, shall either:
(1) File a report, as defined in section fourteen, article
four, chapter twelve of this Code, with the Legislative Auditor on or before July 1 of each year. The report shall be made by an
independent certified public accountant at the cost of the
volunteer fire company or department. The scope of the report is
limited to showing that the funds distributed were spent for
authorized purposes; or
(2) File a sworn statement of annual expenditures with the
Legislative Auditor on or before July 1 of each year. The sworn
statement of expenditures shall be signed by the chief or director
of the volunteer fire company or department and shall be made under
oath and acknowledged before a notary public.
(b) If the sworn statement of annual expenditures or report
required by this section is not filed with the Legislative Auditor
by July 1, or 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 volunteer fire company or department under the
provisions of section thirty-four, article three, and section
seven, article twelve-c, all of chapter thirty-three of this code,
until the report is submitted to the Legislative Auditor. Moneys
withheld pursuant to this subsection (b) shall be deposited
quarterly in the Volunteer Fire Department Audit Account," created
in subsection (c) of this section.
(c) 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 company or department shall cooperate with the Legislative Auditor, the
Legislative Auditor's employees and the State Auditor in performing
their duties under this section. If a volunteer fire company or
department does not cooperate as required by the provisions of this
section, the Legislative Auditor shall notify the State Treasurer,
who shall withhold payment of any amount that would otherwise be
distributed to the volunteer fire company or department under the
provisions of section thirty-four, article three, and section
seven, article twelve-c, all of chapter thirty-three of this code,
until the Legislative Auditor notifies the Treasurer that the
volunteer fire company or department has complied with the
provisions of this section. The State Treasurer shall quarterly pay
the amount withheld into a special revenue account hereby created
in the State Treasury, designated the "Volunteer Fire Department
Audit Account". Upon notice from the Legislative Auditor that a
volunteer fire company or department has not complied with the
provisions of this section for four consecutive quarters, the next
following quarter the State Treasurer shall pay the amount withheld
in the special revenue account to the Fire Protection Fund to be
redistributed to eligible volunteer fire companies or departments.
Thereafter any monies that would otherwise have been distributed to
the volunteer fire company or department under the provisions of
section thirty-three, article three, and section seven, article
twelve-c, all of chapter thirty-three of this code, shall be
retained in the Fire Protection Fund and distributed to eligible
volunteer fire companies or departments. A volunteer fire company or department subsequently complying with the provisions of this
section is eligible to receive monies under the provisions of
section thirty-four, article three, and section seven, article
twelve-c, all of chapter thirty-three of this code, from the date
of compliance forward, but may not recover monies previously
redistributed or retained in the Fire Protection Fund pursuant to
the provisions of this subsection (c).
(d) Whenever the State Auditor performs an audit of a
volunteer fire company or department for any purpose, the Auditor
shall also conduct an audit of other state funds received by the
volunteer fire company or department pursuant to section
thirty-four, article three, and section seven, article twelve-c,
all of chapter thirty-three of this code. The State Auditor shall
send a copy of the audit to the Legislative Auditor. The
Legislative Auditor may accept an audit performed by the State
Auditor in lieu of performing an audit under this section.
(e) If the Legislative Auditor is notified by a grantor, as
defined in section fourteen, article four, chapter twelve of this
code, that a volunteer fire company or 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 State
Treasurer, who shall withhold further distributions to the
volunteer fire company or department in the same manner provided in
subsection (c) of this section.
(f) 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.
(g) Any person who files a fraudulent sworn statement of
expenditures or a fraudulent report pursuant to this section is
guilty of a felony and, upon conviction thereof, shall be fined not
less than $1,000.00 nor more than $5,000.00 or imprisoned in a
state correctional facility for not less than one year nor more
than five years, or both fined and imprisoned.
§8-15-8e. Eligibility for allocation from Volunteer Firefighters
Length of Service Awards Program Fund.
(a) To be eligible to receive funds allocated from the
Volunteer Firefighters Length of Service Awards Program Fund
administered under section thirty-five, article three, chapter
thirty-three of this code, each volunteer and part volunteer fire
company and department shall meet the requirements listed in
subdivisions (a) through (d) of section eight-a of this article,
and be enrolled in a qualified length of service awards program.
(b) A length of service awards program is qualified for
purposes of this section if approved by the State Insurance
Commissioner. The State Insurance Commissioner shall approve a
length of service awards program if:
(1) A volunteer or part volunteer fire company or department
submits, or if the program is being provided to a group, the
volunteer and part volunteer fire companies and departments
participating in the group submit to the State Insurance
Commissioner, in the manner and form prescribed by the State
Insurance Commissioner, an application for approval of the program, together with such documents and other information relating to the
program as the State Insurance Commissioner may determine to be
necessary to perform the duties prescribed under this section and
section thirty-five, article three, chapter thirty-three of this
code;
(2) In consultation with the State Fire Marshal and such
others as the State Insurance Commissioner may deem necessary, the
State Insurance Commissioner determines the provider of the program
is licensed to provide the program under chapter thirty-three of
this code; and
(3) The State Insurance Commissioner determines the program is
in the best interests of the member beneficiaries of the program.
(c) The State Insurance Commissioner may refuse or revoke
approval of a length of service awards program if the program or
its provider is not in compliance with any applicable federal or
state law.
ARTICLE 22. RETIREMENT BENEFITS GENERALLY; POLICEMEN'S PENSION
AND RELIEF FUND; FIREMEN'S PENSION AND RELIEF
FUND; PENSION PLANS FOR EMPLOYEES OF WATERWORKS
SYSTEM, SEWERAGE SYSTEM OR COMBINED WATERWORKS AND
SEWERAGE SYSTEM.
PART III. POLICEMEN'S PENSION AND RELIEF FUND; FIREMEN'S
PENSION AND RELIEF FUND.
§8-22-16. Pension and relief funds for policemen and firemen;
creation of boards of trustees; definitions; continuance of funds; average adjusted salary.
(a) In every Class I and Class II city having, or which may
hereafter have, a paid police department and a paid fire
department, or either of such departments, the governing body
shall, and in every Class III city and Class IV town or village
having, or which may hereafter have, a paid police department and
a paid fire department, or either of such departments, the
governing body may, by ordinance provide for the establishment and
maintenance of a policemen's pension and relief fund and for a
firemen's pension and relief fund for the purposes hereinafter
enumerated and, thereupon, there shall be created boards of
trustees which shall administer and distribute the moneys
authorized to be raised by this section and the following sections
of this article. For the purposes of this section and sections
seventeen through twenty-eight, inclusive, of this article, the
term "paid police department" or "paid fire department" means only
a municipal police department or municipal fire department, as the
case may be, maintained and paid for out of public funds and whose
employees are paid on a full-time basis out of public funds. The
term shall not be taken to mean any such department whose employees
are paid nominal salaries or wages or are only paid for services
actually rendered on an hourly basis.
(b) Unless and until other provision is made by subsequent
legislative action, any policemen's pension and relief fund and any
firemen's pension and relief fund established in accordance with
the provisions of former article six of this chapter or this article shall be or remain mandatory and shall be governed by the
provisions of sections sixteen through twenty-eight, inclusive, of
this article (with like effect, in the case of a Class III city or
Class IV town or village, as if such Class III city or Class IV
town or village were a Class I or Class II city) and shall not be
affected by the transition from one class of municipal corporation
to a lower class as specified in section three, article one of this
chapter:
Provided, That any Class III or Class IV town or village
that hereafter becomes a Class I or Class II city shall not be
required to establish such pension and relief fund if said town or
village is a participant in an existing pension plan regarding paid
firemen and/or policemen.
(c) After the thirtieth day of June, one thousand nine hundred
eighty-one, for the purposes of sections sixteen through
twenty-eight, inclusive, of this article, the word "member" means
any paid police officer or firefighter who at time of appointment
to such paid police or fire department met the medical requirements
of Chapter 2-2 of the National Fire Protection Association
Standards Number 1001 -- Firefighters Professional Qualifications
'74 as updated from year to year:
Provided, That any police
officer or firefighter who was a member of
such the fund prior to
the first day of July, one thousand nine hundred eighty-one, shall
be considered a member after June thirtieth, one thousand nine
hundred eighty-one.
(d) For purposes of sections sixteen through twenty-eight,
inclusive, of this article, the words "salary or compensation" means remuneration actually received by a member, plus
such the
member's deferred compensation under Sections 125, 401(k),
414(h)(2) and 457 of the United States Internal Revenue Code of
1986, as amended:
Provided, That the remuneration received by
such
the member during any twelve-consecutive-month period
utilized used
in determining benefits which is in excess of an amount which is
twenty percent greater than the "average adjusted salary" received
by
such the member in the two consecutive twelve-consecutive-month
periods immediately preceding
such the twelve-consecutive-month
period
utilized used in determining benefits shall be disregarded:
Provided, however, That the "average adjusted salary" means the
arithmetic average of each year's adjusted salary,
such the
adjustment made to reflect current salary rate and such average
adjusted salary shall be determined as follows: Assuming
"year-one" means the second twelve-consecutive-month period
preceding such twelve-consecutive-month period
utilized used in
determining benefits, "year-two" means the twelve-consecutive-month
period immediately preceding such twelve-consecutive-month period
utilized used in determining benefits and "year-three" means the
twelve-consecutive-month period
utilized used in determining
benefits, year-one total remuneration shall be multiplied by the
ratio of year-three base salary, exclusive of all overtime and
other remuneration, to year-one base salary, exclusive of all
overtime and other remuneration, such product shall equal "year-one
adjusted salary"; year-two total remuneration shall be multiplied
by the ratio of year-three base salary, exclusive of all overtime and other remuneration, to year-two base salary, exclusive of all
overtime and other remuneration, such product shall equal "year-two
adjusted salary"; and the arithmetic average of year-one adjusted
salary and year-two adjusted salary shall equal the average
adjusted salary.
§8-22-17. Powers and duties of boards of trustees.
Such board of trustees, or (a) Boards of trustees shall be
public corporations by the name and style of the Board of Trustees
of the Policemen's Pension and Relief Fund of (name of
municipality) or the Board of Trustees of the Firemen's Pension and
Relief Fund of (name of municipality), as the case may be, by which
names they may sue and be sued, plead and be impleaded, contract
and be contracted with, take and hold real and personal property
for the use of
said the policemen's pension and relief fund or
said
the firemen's pension and relief fund and have and use a common
seal. In the absence of
such a seal, the seal of the president of
any such the corporation shall be equivalent to
such a common seal.
Any such A board of trustees may also in its corporate name do and
perform any and all other acts and business pertaining to the trust
created hereby or by any conveyance, devise or dedication made for
the uses and purposes of
said the board.
(b) After the thirtieth day of June, one thousand nine hundred
eighty-one, any
such board of trustees
boards of trustees and any
members
thereof of a board shall, as fund fiduciaries, discharge
their duties with respect to
such pension and relief funds solely
in the interest of the members and members' beneficiaries for the exclusive purpose of providing benefits to members and their
beneficiaries and defraying reasonable expenses of administering
the fund.
(c) The board of trustees of each fund shall deliver a copy of
the fund's current rules, regulations and procedures to the
oversight board established by section eighteen-a of this article
on July 1, 2009, and thereafter within thirty days of any approved
change in the rules, regulations or procedures.
(d) Each member of a board of trustees shall attend training
in matters relating to trustee duties as may be required by the
oversight board pursuant to section eighteen-a of this article.
§8-22-18a. West Virginia Municipal Pensions Oversight Board
created.
(a)(1) There is established, effective July 1, 2009, the West
Virginia Municipal Pensions Oversight Board for the purpose of
monitoring and improving the performance of municipal policemen's
and firemen's pension and relief funds to assure prudent
administration, investment and management of the funds. Management
of the board shall be vested solely in the members of the oversight
board. Duties of the board shall include, but not be limited to,
assisting municipal boards of trustees in performing their duties,
assuring the funds' compliance with applicable laws, providing for
actuarial studies, distributing tax revenues to the funds,
initiating or joining legal actions on behalf of active or retired
pension fund members or municipal boards of trustees to protect
interests of the members in the funds, and taking other actions as may be reasonably necessary to provide for the security and fiscal
integrity of the pension funds. The oversight board's authority to
initiate legal action does not preempt the authority of
municipalities, municipal policemen's and firemen's boards of
trustees or pension fund active or retired members to initiate
legal action to protect interests in the funds. The oversight
board is created as a public body corporate. Establishment of the
oversight board does not relieve the municipal funds' boards of
trustees from their fiduciary and other duties to the funds, nor
does it create any liability for the funds on the part of the
state. Members and employees of the oversight board are not liable
personally, either jointly or severally, for debts or obligations
of the municipal pension and relief funds. Members and employees
of the oversight board have a fiduciary duty toward the municipal
pension and relief funds and are liable for malfeasance or gross
negligence.
(2) The board shall consist of seven members who shall be
citizens of the state, shall be qualified electors thereof for a
period of at least one year next preceding their appointment and
shall be as follows: An active or retired member of a municipal
policemen's pension and relief fund chosen from a list of three
persons submitted to the Governor by the state's largest
professional municipal police officers organization, an active or
retired member of a municipal firemen's pension and relief fund
chosen from a list of three persons submitted to the Governor by
the state's largest professional firefighters organization, an attorney experienced in finance and investment matters related to
pensions management, two persons experienced in pension funds
management, one person who is a certified public accountant
experienced in auditing and one person chosen from a list of three
persons submitted to the Governor by the state's largest
association of municipalities.
(3) Upon the effective date of the enactment of this section
during the 2009 regular legislative session, the Governor shall
forthwith appoint the members, with the advice and consent of the
Senate. The Governor may remove any member from the board for
neglect of duty, incompetency or official misconduct.
(b) The oversight board has the power to:
(1) Enter into contracts, to sue and be sued, to implead and
be impleaded;
(2) Promulgate and enforce bylaws and rules for the management
and conduct of its affairs;
(3) Maintain accounts and invest those funds which the
oversight board is charged with receiving and distributing;
(4) Make, amend and repeal bylaws, rules and procedures
consistent with the provisions of this article and article
thirty-three of this code;
(5) Not withstanding any other provision of law, retain or
employ, fix compensation, prescribe duties and pay expenses of
legal, accounting, financial, investment, management and other
staff, advisors or consultants as it considers necessary. Expenses
shall be paid from the moneys in the Municipal Pensions Security Fund created in section eighteen-b of this article or prior to the
transition provided in section eighteen-b of this article, the
Municipal Pensions and Protection Fund; and
(6) Do all things necessary and appropriate to implement and
operate the board in performance of its duties.
(c) The terms of board members shall be staggered initially
from July 1, 2009. The Governor shall appoint initially one member
for a term of one year, one member for a term of two years, two
members for terms of three years, one member for a term of four
years and two members for terms of five years. Subsequent
appointments shall be for terms of five years. A member having
served two full consecutive terms may not be reappointed for one
year after completion of his or her second full term. Each member
shall serve until that member's successor is appointed and
qualified, unless the board member is no longer competently
performing the duties of office. Any vacancy on the board shall be
filled by appointment by the Governor for the balance of the
unexpired term.
(d) A majority of the full authorized membership of the board
constitutes a quorum. The board shall meet at least six times a
year, but more often as duties require, at times and places that it
determines. The board shall elect a chair person and a vice
chairperson from their membership who shall serve for terms of two
years and shall select annually a secretary/treasurer who may be
either a member or employee of the board. The board shall employ
an executive director and other staff as needed and shall fix their duties and compensation. The board shall pay all personnel and
other board expenses out of the Municipal Pensions Security Fund
created in section eighteen-b of this article. Expenses during the
initial year of the board's operation shall be from proceeds of the
Municipal Pensions Security Fund. Expenditures in years thereafter
shall be by appropriation from the Municipal Pensions Security
Fund. The board is exempt from the provisions of sections seven
and eleven, article three of chapter twelve of this code relating
to compensation and expenses of members, including travel expenses,
and is exempt from the provisions of article three, chapter five-a
of this code relating to the Purchasing Division of the Department
of Administration. The members and employees of the board are
subject to purchasing policies and procedures which proposed for
promulgation as legislative rules by the board: Provided, That the
board shall award contracts on a competitive basis. The purchasing
policies and procedures may initially be promulgated as emergency
rules pursuant to section fifteen, article three, chapter
twenty-nine-a of this code.
(e) Each member of the board shall receive the same
compensation as is paid to members of the Legislature for their
interim duties for each day or portion thereof engaged in the
discharge of official duties: Provided, That the representative of
the municipalities shall not receive compensation for service on
the board if the representative is a salaried employee of a
municipality or the state's largest association of municipalities
and receives salary while attending meetings of the oversight board. Each member of the board is entitled to reasonable
reimbursement of travel and other necessary expenses actually
incurred while engaging in board activities. All reimbursement of
expenses shall be paid out of the Municipal Pensions Security Fund.
(f) The board may contract with other state boards or state
agencies to share offices, personnel and other administrative
functions as authorized under this article: Provided, That no
provision of this subsection may be construed to authorize the
board to contract with other state boards or state agencies to
otherwise perform the duties or exercise the responsibilities
imposed upon the board by this code.
(g) The board shall propose rules for legislative approval in
accordance with the provisions of article three, chapter
twenty-nine-a of this code as necessary to implement the provisions
of this article, and may initially promulgate emergency rules
pursuant to the provisions of section fifteen, article three,
chapter twenty-nine-a of this code.
(h) The oversight board shall report annually to the
Legislature's Joint Committee on Government and Finance and the
Joint Committee on Pensions and Retirement concerning the status of
municipal policemen's and firemen's pension and relief funds and
shall present recommendations for strengthening and protecting the
funds and the benefit interests of the funds' members.
(i) The oversight board shall cooperate with the West Virginia
Investment Management Board and the Board of Treasury Investments
to educate members of the local pension boards of trustees on the services offered by the two state investment boards. No later than
October 31, 2012, the board shall report to the Joint Committee on
Government and Finance and the Joint Committee on Pensions and
Retirement a detailed comparison of returns on long-term
investments of moneys held by or allocated to municipal pension and
relief funds managed by the West Virginia Management Board and
those managed by others than the Investment Management Board. The
oversight board shall also report at that time on short-term
investment returns by local pension boards using the West Virginia
Board of Treasury Investments compared to short-term investment
returns by those local boards of trustees not using the Board of
Treasury Investments.
(j) The oversight board shall establish minimum requirements
for training to be completed by each member of the board of
trustees of a municipal policemen's or firemen's pension and relief
fund. The requirements should include, but not be limited to,
training in ethics, fiduciary duty and investment responsibilities.
§8-22-18b. Creation of Municipal Pensions Security Fund; transfer
of certain powers, duties and functions of
Treasurer's Office to Municipal Pensions Oversight
Board.
(a) The Legislature finds that an important part of oversight
of municipal policemen's and firemen's pension and relief funds is
monitoring the performance required of the various funds to qualify
to receive distribution of insurance premium tax revenues provided
by section fourteen-e, article three, chapter thirty-three of this code. The duties and functions of the State Treasurer's office with
respect to such monitoring as well as such distribution is
transferred from the State Treasurer's office to the West Virginia
Municipal Pensions Oversight Board effective July 1, 2009:
Provided, That until the oversight board is fully organized and
operating, some duties and functions being performed by the State
Treasurer's office prior to July 1, 2009, may be continued by that
office temporarily as necessary to effect an orderly transition of
responsibilities and provide for prompt distribution of the
insurance premium tax proceeds to the municipal policemen's and
firemen's pension and relief funds.
(b) There is hereby created in the State Treasury a
nonexpiring special revenue fund designated the West Virginia
Municipal Pensions Security Fund which shall be administered by the
West Virginia Municipal Pensions Oversight Board solely for the
purposes as provided in this article and article three, chapter
thirty-three of this code. All earnings shall accrue to and be
retained by the fund.
(c) Until such time as the oversight board advises the
Insurance Commissioner and the State Treasurer in writing that the
oversight board is prepared to receive into and distribute from the
West Virginia Municipal Pensions Security Fund premium tax revenues
as provided in section fourteen-e, article three, chapter
thirty-three of this code, the commissioner shall continue to
transfer the funds into the Municipal Pensions and Protection Fund
and the State Treasurer shall continue to disburse funds to the qualifying municipal pension and relief funds, and shall disburse
funds as necessary for the establishment and early operation of the
oversight board. The Insurance Commissioner, the State Treasurer
and oversight board shall share information freely as required for
efficient transfer of powers and duties related to the premium tax
revenues to be allocated to the municipal policemen's and firemen's
pension and relief funds. When the oversight board assumes full
responsibility to receive funds into and disburse funds from the
Municipal Pensions and Security Fund, the State Treasurer shall
transfer to it all funds remaining in the Municipal Pensions and
Protection Fund and close the Municipal Pensions and Protection
Fund.
§8-22-19. Levy to maintain fund.
(a)(1) The provisions of this subsection shall remain in
effect through the thirtieth day of June, one thousand nine hundred
eighty-three.
(2) In every municipality in which there is a policemen's
pension and relief fund or a firemen's pension and relief fund, or
both, the same shall be maintained as follows: The governing body
of the municipality shall levy annually and in the manner provided
by law for other municipal levies, and include within the maximum
levy or levies permitted by law, and if necessary in excess of any
charter provision, a tax at such rate as will, after crediting the
amount of the contributions received during such year from the
members of the respective paid police department or paid fire
department, provide funds equal to the sum of: (1) The full amount of estimated expenditures of the boards of trustees of the
respective funds; and (2) an additional amount equal to ten percent
of the estimated expenditures, said ten percent amount to be taken,
accumulated and invested, if possible, as surplus reserve:
Provided, That in no event shall the levy for each of the
respective boards of trustees be less than one cent nor more than
eight cents on each one hundred dollars of all real and personal
property as listed for taxation in the municipality: Provided,
however, That in the event that the funds derived above are not
sufficient to meet the annual expenditures and the surplus reserve
funds for any fiscal year do not contain a sufficient balance to
maintain full retirement benefits for that fiscal year, the
municipality shall for only that fiscal year levy an amount not to
exceed an additional two cents on each one hundred dollars of all
real and personal property listed for taxation in such
municipality: Provided further, That in the event that a
municipality is required to levy an amount for any fiscal year in
excess of eight cents on each one hundred dollars of all real and
personal property as provided above, the municipality shall assess
and collect for only that fiscal year from each member an
additional amount of one percent of the actual salary or
compensation for each one cent that the municipality has levied in
excess of the eight cents which shall become a required part of the
pension and relief fund to which the member belongs.
(3) The levies authorized under the provisions of this
section, or any part of them, may by the governing body be laid in addition to all other municipal levies, and to that extent, beyond
the limit of levy imposed by the charter of the municipality; and
the levies shall supersede and if necessary exclude levies for
other purposes if priority or exclusion is necessary under
limitations upon taxes or tax levies imposed by law.
(4) The public corporations are authorized to take by gift,
grant, devise or bequest, any money or real or personal property,
upon such terms as to the investment and expenditures thereof as
may be fixed by the grantor or determined by the trustees.
(5) In addition to all other sums provided for pensions in
this section, it shall be the duty of every municipality in which
any policemen's pension and relief fund or firemen's pension and
relief fund or funds have been or shall be established to assess
and collect from each member of the paid police department or paid
fire department or both each month, the sum of six percent of the
actual salary or compensation of the member; and the amount so
collected shall become a regular part of the policemen's pension
and relief fund, if collected from a policeman, and of the
firemen's pension and relief fund, if collected from a fireman.
(a) (1) (b) After the thirtieth day of June, one thousand nine
hundred eighty-three: In order for a municipal policemen's or
firemen's pension and relief fund to receive the allocable portion
of moneys from the municipal pensions and protection fund
established in section fourteen-e, article three, chapter
thirty-three of this code
and funds from the Municipal Pensions
Security Fund created in section eighteen-b of this article, the governing body of the municipality shall levy annually and in the
manner provided by law for other municipal levies and include
within the maximum levy or levies permitted by law and, if
necessary, in excess of any charter provision, a tax at such rate
as will, after crediting: (A) The amount of the contributions
received during the year from the members of the respective paid
police department or paid fire department; and (B) the allocable
portion of the municipal pensions and protection fund established
in section fourteen-d, article three, chapter thirty-three of this
code
and funds from the Municipal Pensions Security Fund created in
section eighteen-b of this article, provide funds equal to the
amount necessary to meet the minimum standards for
actuarial
soundness annual municipality contributions to the fund as provided
in section twenty of this article.
The said amount
to shall be
irrevocably contributed, accumulated and invested as fund assets
described in sections twenty-one and twenty-two of this article.
One twelfth of the municipality each municipality's annual
contributions shall be deposited
with the municipality's pension
trust funds as fund assets on at least a
quarterly monthly basis
and any revenues received from any source by a municipality which
are specifically collected for the purpose of allocation for
deposit into the policemen's pension and relief fund or firemen's
pension and relief fund shall be so deposited within
thirty five
days of receipt by the municipality. Heretofore surplus reserves
accumulated before the
first day of July, one thousand nine hundred
eighty-three, effective date of this section shall be irrevocably contributed, aggregated and invested as fund assets described in
sections twenty-one and twenty-two of this article. Any actuarial
deficiency arising under this section and section twenty of this
article shall not be the obligation of the State of West Virginia.
(2) The levies authorized under the provisions of this
section, or any part of them, may by the governing body be laid in
addition to all other municipal levies and, to that extent, beyond
the limit of levy imposed by the charter of the municipality; and
the levies shall supersede and if necessary exclude levies for
other purposes, where other purposes have not already attained
priority, and within the limitations upon taxes or tax levies
imposed by the Constitution and laws.
(3) (b) The public corporations are authorized to take by
gift, grant, devise or bequest any money or real or personal
property upon such terms as to the investment and expenditures
thereof as may be fixed by the grantor or determined by the
trustees.
(4) (c) Notwithstanding provisions in section six of this
article, in addition to all other sums provided for pensions in
this section, it is the duty of every municipality in which any
fund or funds have been or shall be established to assess and
collect from each member of the paid police department or paid fire
department or both each month, the sum of seven percent of the
actual salary or compensation of such member; and the amount so
collected shall become a regular part of the policemen's pension
and relief fund, if collected from a policeman, and of the firemen's pension and relief fund, if collected from a fireman:
Provided, That for police officers and firefighters hired after
July 1, 2009, the municipality shall assess and collect nine and
one-half percent of the actual salary or compensation. For police
officers and firefighters hired on or before July 1, 2009, each
municipality shall, in accordance with subsection (f), section
twenty-six-a of this article, collect and pay to the member's
pension and relief fund member contributions of eight and one-half
percent of salary or compensation. Only those funds for which the
board of trustees has collected and paid the contributions as
herein provided and as provided in subsection (f), section
twenty-six-a of this article and meeting minimum standards for
annual municipal contributions to the fund shall be eligible to
receive moneys from the insurance policy premium tax revenues as
provided in section fourteen-e, article three, chapter thirty-three
of this code. Provided, That the board of trustees for each
pension and relief fund may assess and collect from each member of
the paid police department or paid fire department or both each
month not more than an additional two and one half percent of the
actual salary or compensation of each member: Provided, however,
That if any board of trustees decides to assess and collect any
additional amount pursuant to this subdivision above the member
contribution required by this section, then that board of trustees
may not reduce the additional amount until the respective pension
and relief fund no longer has any actuarial deficiency: Provided
further, That if any board of trustees decides to assess and collect any additional amount, any board of trustees decision and
any additional amount is not the liability of the State of West
Virginia. Member contributions shall be deposited in the pension
and relief fund
on at least a monthly basis within five days of
being collected.
(5) (d)(1) For the fiscal year beginning on July 1,
one
thousand nine hundred eighty-three 2009, and subject to provisions
of subsection (c), section eighteen-b of this article and section
fourteen-e, article three, chapter thirty-three of this code and
for each fiscal year thereafter, the
State Treasurer oversight
board shall
receive and retain the
allocable portion of the
Municipal Pensions and Protection Fund, established in section
fourteen-d, article three, chapter thirty-three of this code,
moneys allocated to the Municipal Pensions Security Fund until such
time as the treasurer of the municipality applies for the allocable
portion and certifies in writing to the
State Auditor Municipal
Pensions Oversight Board that:
(A) The municipality has irrevocably contributed the amount
required under this section and section twenty of this article
and
section fourteen-e, article three, chapter thirty-three of this
code to the pension and relief fund for the
fiscal year required
period; and
(B) The board of trustees of the pension and relief fund has
made a report to the governing body of the municipality
and to the
oversight board on the condition of its fund with respect to the
fiscal year.
(6) (2) When the aforementioned application and certification
are made, the allocable portion of moneys from the Municipal
Pensions and Protection Fund,
or the Municipal Pensions Security
Fund once established shall be paid to the corresponding
policemen's or firemen's pension and relief fund
in accordance with
the provisions of section fourteen-e, article three, chapter
thirty-three of this code. Payment to a municipal pension and
relief fund shall be made by electronic funds transfer.
(7) (e) The State Auditor
and the oversight board has have the
power and duty
as each deems necessary to perform or review audits
on the pension and relief funds or to employ an independent
consulting actuary or accountant to determine the compliance of the
aforementioned certification with the requirements of this section
and section twenty of this article. The expense of the audit or
determination shall be paid from the portion of the municipal
pensions and protection fund allocable to municipal policemen's and
firemen's pension and relief funds
or from the Municipal Pensions
Security Fund pursuant to provisions of subsection (c), section
eighteen-b of this article. If the allocable portion of the
Municipal Pensions and Protection Fund
or the Municipal Pensions
Security Fund is not paid to the pension and relief fund within
thirty-six eighteen months, the portion is forfeited by the pension
and relief fund and is allocable to other eligible municipal
policemen's and firemen's pension and relief funds in accordance
with section fourteen-e, article three, chapter thirty-three of
this code.
§8-22-20. State contract actuary; actuarial valuation report;
minimum standards for annual municipality
contributions to the fund; definitions; actuarial
review and audit.
The board of trustees for each pension and relief fund shall
have regularly scheduled actuarial valuation reports prepared by a
qualified actuary. All of the following standards must be met:
(a)
An actuarial valuation report shall be prepared at least
once every three years commencing with the later of: (1) The first
day of July, one thousand nine hundred eighty-three; or (2) three
years following the most recently prepared actuarial valuation
report: Provided, That this most recently prepared actuarial
valuation report meets all of the standards of this section. The
oversight board shall contract with a qualified actuary to annually
prepare an actuarial valuation report on each pension and relief
fund. The oversight board's first contract shall be timed to begin
at the expiration of the State Treasurer's contract with the
actuary for the year 2009, but beginning no later than January 1,
2010. The expense of the actuarial report shall be paid from
moneys in the Municipal Pensions Security Fund. Uses of the
actuarial valuations from the state's contract actuary shall
include, but not be limited to, determining a municipal policemen's
or firemen's pension and relief fund's eligibility to receive state
money and to provide supplemental benefits.
(b) The actuarial valuation report
provided pursuant to
subsection (a) of this section shall consist of, but is not limited to, the following disclosures: (1) The financial objective of the
fund and how the objective is to be attained; (2) the progress
being made toward realization of the financial objective; (3)
recent changes in the nature of the fund, benefits provided or
actuarial assumptions or methods; (4) the frequency of actuarial
valuation reports and the date of the most recent actuarial
valuation report; (5) the method used to value fund assets; (6) the
extent to which the qualified actuary relies on the data provided
and whether the data was certified by the fund's auditor or
examined by the qualified actuary for reasonableness; (7) a
description and explanation of the actuarial assumptions and
methods; and (8) any other information the qualified actuary feels
is necessary or would be useful in fully and fairly disclosing the
actuarial condition of the fund.
(c)(1) After June 30,
one thousand nine hundred ninety-one
2009, and thereafter,
the financial objective of each municipality,
and the minimum standard for annual municipality contributions to
the fund, except as provided in section fourteen-e, article three,
chapter thirty-three of this code relating to plans funded at one
hundred ten percent or more, shall
not be
less than to contribute
to the fund annually an amount which, together with the
contributions from the members and the allocable portion of the
Municipal Pensions and Protection Fund for municipal pension and
relief funds established under section fourteen-d, article three,
chapter thirty-three of this code
or a municipality's allocation
from the Municipal Pensions Security Fund created in section eighteen-b of this article and other income sources as authorized
by law will be sufficient
for the municipal pension and relief fund
to attain a projected targeted funded ratio of one hundred percent
by June 30, 2049. For this purpose, the targeted funded ratio is
defined as the projected market value of assets as of June 30,
2049, divided by the projected actuarial accrued liabilities as of
June 30, 2049, based on the entry age normal cost method (level
percent of pay), assuming the actuarial assumptions will be
realized in the future and the number of active members remains
level in the future, except to the extent the municipal pension and
relief fund is closed to new entrants. In making these
determinations, the required contribution shall be calculated each
year as a level percentage of payroll over the years remaining,
beginning with the plan year ending on June 30, 2010, and including
the plan year ending on June 30, 2049. The level percentage of
payroll contributions shall be determined by projecting assets and
liabilities on an open-group basis assuming the actuarial
assumptions are realized and the number of active members remains
at the level on the valuation date, except to the extent the fund
is closed to new entrants. For years ending on June 30 in years
2009 through 2013, the required contribution, as a percentage of
the applicable payroll, may be increased in equal annual
increments, from the required rate of contribution for the year
ending on the June 30, 2009, so that by the year ending on June 30,
2013, the municipality is making contributions at the rate required
under this section. If the actuarial valuation on or after June 30, 2009, projects a contribution rate for years 2013 and beyond
greater than forty-five percent, but less than sixty percent to
reach the one hundred percent targeted funded ratio in 2049, the
targeted funded ratio in year 2049 may be changed from one hundred
percent to ninety percent. If the actuarial valuation on or after
June 30, 2009, projects a contribution rate for years 2013 and
beyond of sixty percent or more to reach the one hundred percent
targeted funded ratio in 2049, the targeted funded ratio in 2049
may be changed from one hundred percent to eighty percent.
However, in no event shall the targeted funded ratio be less than
the level determined in the actuarial valuation as of June 30,
2009. The required contribution shall be determined each plan year
as described above based on an actuarial valuation reflecting
actual demographic and investment experience. Municipal pension
and relief funds with a funded ratio of ten percent or less as of
June 30, 2009, will need to receive additional contributions from
the municipality to the extent necessary to ensure that sufficient
assets exist to pay expected benefits for a period of at least
eighteen months during each of the next six plan years beginning
with the plan year ending on the June 30, 2010. The funded ratio
as of June 30, 2009, is defined as the market value of assets as of
the thirtieth day of June, divided by the actuarial accrued
liabilities as of the thirtieth day of June, based on the entry age
normal cost method (level percent of pay). After June 30, 2049,
and thereafter, the financial objective of each municipality, and
the minimum standards for annual municipality contributions to the municipal pension and relief fund, except as provided in section
fourteen (d), article three, chapter thirty-three of this code
relating to plans funded at one hundred ten percent or more, shall
not be less than an amount which, together with the contributions
from the members and the municipality's allocation from the
Municipal Pensions Security Fund created in section eighteen-b of
this article and other income sources as authorized by law will be
sufficient to meet the normal cost of the fund and amortize any
actuarial deficiency over a period of not more than
forty thirty
years.
The thirty-year amortization period shall commence in the
first year following 2049 in which there is an actuarial deficiency
as of the first day of July in that year. In no year will the
municipal contribution be less than the normal cost net of employee
contributions, except as provided in section fourteen-e, article
three, chapter thirty-three of this code relating to plans funded
at one hundred ten percent or more. Provided, That in the fiscal
year ending the thirtieth day of June, one thousand nine hundred
ninety-one, the municipality may elect to make its annual
contribution to the fund using an alternative contribution in an
amount not less than: (i) One hundred seven percent of the amount
contributed for the fiscal year ending the thirtieth day of June,
one thousand nine hundred ninety; or (ii) an amount equal to the
average of the contribution payments made in the five highest
fiscal years beginning with the fiscal year ending one thousand
nine hundred eighty-four, whichever is greater: Provided, however,
That contribution payments in subsequent fiscal years under this alternative contribution method may not be less than one hundred
seven percent of the amount contributed in the prior fiscal year:
Provided further, That in order to avoid penalizing municipalities
and to provide flexibility when making contributions,
municipalities using the alternative contribution method may
exclude a one-time additional contribution made in any one year in
excess of the minimum required by this section: And provided
further, That the governing body of any municipality may elect to
provide an employer continuing contribution of one percent more
than the municipality's required minimum under the alternative
contribution plan authorized in this subsection: And provided
further, That if any municipality decides to contribute an
additional one percent, then that municipality may not reduce the
additional contribution until the respective pension and relief
fund no longer has any actuarial deficiency: And provided further,
That any decision and any contribution payment by the municipality
is not the liability of the State of West Virginia: And provided
further, That if any municipality or any pension fund board of
trustees makes a voluntary election and thereafter fails to
contribute the voluntarily increase as provided in this section and
in subdivision (4), subsection (b), section nineteen of this
article, then the board of trustees is not eligible to receive
funds allocated under section fourteen-d, article three, chapter
thirty-three of this code: And provided further, That prior to
using this alternative contribution method the actuary of the fund
shall certify in writing that the fund is projected to be solvent under the alternative contribution method for the next consecutive
fifteen-year period. For purposes of determining this minimum
financial objective: (i) The value of the fund's assets shall be
determined on the basis of any reasonable actuarial method of
valuation which takes into account fair market value; and (ii) all
costs, deficiencies, rate of interest and other factors under the
fund shall be determined on the basis of actuarial assumptions and
methods which, in aggregate, are reasonable (taking into account
the experience of the fund and reasonable expectations) and which,
in combination, offer the qualified actuary's best estimate of
anticipated experience under the fund: And provided further, That
any municipality which elected the alternative funding method under
this section and which has an unfunded actuarial liability of not
more than twenty-five percent of fund assets, may, beginning the
first day of September, two thousand three, elect to revert to the
standard funding method, which is to contribute to the fund
annually an amount which is not less than an amount which, together
with the contributions from the members and the allocable portion
of the Municipal Pensions and Protection Fund for municipal pension
and relief funds established under section fourteen-d, article
three, chapter thirty-three of this code and other income sources
as authorized by law, will be sufficient to meet the normal cost of
the fund and amortize any actuarial deficiency over a period of not
more than forty years, beginning from the first day of July, one
thousand nine hundred ninety-one.
(2) For purpose of this section, the term "normal cost" and "actuarial accrued liability" shall be consistent with the
Actuarial Standards of Practice published by the Actuarial
Standards Board. Furthermore, the normal cost and actuarial accrued
liability shall be based on the Entry Age Normal Actuarial Cost
Method under which the actuarial present value of projected
benefits is allocated as a level percentage of earnings of the
individual between entry age and the assumed exit ages.
(3) The actuarial assumptions used to develop the normal cost
and actuarial accrued liability shall be consistent with the
Actuarial Standards of Practice published by the Actuarial
Standards Board.
(4) The term actuarial deficiency means the actuarial accrued
liability less the actuarial value of assets. The actuarial value
of assets shall be determined in a manner consistent with the
Actuarial Standards of Practice published by the Actuarial
Standards Board.
(5) For years after 2049, the amortization of the actuarial
deficiency shall be based on a level dollar basis.
(6) The actuarial process, which includes the selection of
methods and assumptions, shall be reviewed by the qualified actuary
no less than once every five years. Furthermore, the qualified
actuary shall provide a report to the oversight board with
recommendations on any changes to the actuarial process.
(7) The oversight board shall hire an independent reviewing
actuary to perform an actuarial audit of the work performed by the
qualified actuary no less than once every seven years.
(2) No municipality may anticipate or use in any manner any
state funds accruing to the police or firemen's pension fund to
offset the minimum required funding amount for any fiscal year.
(3) Notwithstanding any other provision of this section or
article to the contrary, each municipality shall contribute
annually to the fund an amount which may not be less than the
normal cost, as determined by the actuarial report.
(d) For purposes of this section the term "qualified actuary"
means only an actuary who is a member of the Society of Actuaries
or the American Academy of Actuaries. The qualified actuary shall
be designated a fiduciary and shall discharge his or her duties
with respect to a fund solely in the interest of the members and
member's beneficiaries of that fund. In order for the standards of
this section to be met, the qualified actuary shall certify that
the actuarial valuation report is complete and accurate and that in
his or her opinion the technique and assumptions used are
reasonable and meet the requirements of this section of this
article.
(e) The cost of the preparation of the actuarial valuation
report shall be paid by the fund.
(f) Notwithstanding any other provision of this section, for
the fiscal year ending the thirtieth day of June, one thousand nine
hundred ninety-one, the municipality may calculate its annual
contribution based upon the provisions of the supplemental benefit
provided in this article enacted during the one thousand nine
hundred ninety-one regular session of the Legislature.
§8-22-20a. Hiring of actuary; preparation of actuarial valuations.
(a)(1) The Legislature finds that it is in the best interests
of the state and its municipalities to have accurate data regarding
the various municipal police and firemen's pension and relief
funds.
The Legislature finds that data received from the funds is
not always reliable due to inconsistent methods of reporting. The
Legislature also finds that the municipalities need to know if the
data on which they are basing their decisions on regarding pensions
for their police and firemen is accurate and that they can depend
on it.
(2) The Legislature finds that the State Treasurer should
contract with an actuary as a consultant for the municipal police
and firemen's pension and relief funds and
that among other duties
the actuary
should shall determine if there is consistent reporting
from the various funds. The Legislature further finds that the
State Treasurer should share the results of the actuary's annual
valuation with the appropriate municipality.
(b)
Notwithstanding any other provision of this code to the
contrary Except as hereinafter provided, beginning the first day of
July, two thousand two, the State Treasurer shall select by
competitive bid and contract with a single qualified actuary. The
actuary shall serve as a consultant to the treasurer with regard to
the operation of the municipal police and firemen's pension and
relief funds and shall report annually to the treasurer with regard
to all funds existing in this state by virtue of this article.
The
treasurer may pay for Costs associated with the actuary's work
shall be paid out of the
fund Municipal Pensions and Protection
Fund established pursuant to section fourteen-d, article three,
chapter thirty-three of this code.
Beginning at the expiration of
the State Treasurer's contract with the actuary for the year 2009,
but beginning no later than January 1, 2010, and thereafter, it
shall be the duty of the oversight board to contract for the single
qualified actuary which shall serve as a consultant to the
oversight board and shall report annually to the oversight board
with regard to all funds existing in this state by virtue of this
article and which shall be paid from moneys deposited in the
municipal pensions security fund. Copies of the annual report
prepared by the actuary shall be sent to Joint Committee on
Government and Finance, the chair of the House of Delegates
Committee on Pensions and Retirement, and the chair of the Senate
Committee on Pensions. Each municipal pension and relief fund
shall receive a copy of the actuary's results related to that fund.
(c) With respect to each municipal police or firemen's pension
and relief fund, the actuary shall complete an annual valuation in
accordance with actuarial standards of practice promulgated by the
actuarial standards board of the American Academy of Actuaries.
The report of the valuation shall include: (1) A summary of the
benefit provisions evaluated; (2) a summary of the census data and
financial information used in the valuation; (3) a description of
the actuarial assumptions, actuarial costs method and asset
valuation method used in the valuation, including a statement of
the assumed rate of payroll growth and assumed rate of growth or decline in the number of the fund members' contribution to the
pension fund; (4) a summary of findings that includes a statement
of the actuarially accrued pension liabilities and unfunded
actuarial accrued pension liabilities; (5) a schedule showing the
effect of any changes in the benefit provisions, actuarial
assumptions or cost methods since the last annual actuarial
valuation; (6) a statement of whether contributions to the pension
fund are in accordance with the provisions of this chapter and
whether they are expected to be sufficient; and (7) any other
matters determined by the Treasurer
or, following January 1, 2010,
the oversight board, to be necessary or appropriate.
The treasurer
shall forward A copy of the annual valuation
shall be forwarded to
the municipality for which it was completed.
(d)(1) The hiring of an actuary under the provisions of this
section shall not be construed to make the municipal police and
firemen's pension and relief funds the responsibility or obligation
of the State of West Virginia.
(2) Any actuarial deficiency identified by the actuary under
this section or this article is not an obligation of the State of
West Virginia.
§8-22-22. Investment of funds
by boards of trustees; exercise of
judgment discretion in making investments; report of
investment plan.
(a) The board of trustees may invest a portion or all of the
fund assets in
the state consolidated fund or the consolidated
pension fund any of the pools, funds and securities managed by the West Virginia Investment Management Board or West Virginia Board of
Treasury Investments or as otherwise provided in this section. The
board of trustees shall keep as an available sum for the purpose of
making regular retirement, disability retirement, death benefit,
payments and administrative expenses in an estimated amount not to
exceed payments for a period of ninety days
in short-term
investments. The board of trustees, in acquiring, investing,
reinvesting, exchanging, retaining, selling and managing property
for the benefit of the fund shall
exercise judgment and care under
fiduciary duty which persons of prudence, discretion, and
intelligence exercise in the management of their own affairs, not
in regard to speculation, but in regard to the permanent
disposition of their funds, considering the probable total return
as well as the preservation of principal do so in accordance with
the provisions of the Uniform Prudent Investor Act codified as
article six-c, chapter forty-four of this code. Within the
limitations of the
foregoing standard Uniform Prudent Investor Act,
the board of trustees is authorized in its sole discretion to
invest and reinvest any funds received by it and not invested
in
the consolidated fund or the consolidated pension fund with the
West Virginia Investment Management Board or West Virginia Board of
Treasury Investments. in the following:
(a) Any direct obligation of, or obligation guaranteed as to
the payment of both principal and interest by, the United States of
America;
(b) Any evidence of indebtedness issued by any United States government agency guaranteed as to the payment of both principal
and interest, directly or indirectly, by the United States of
America including, but not limited to, the following: Government
national mortgage association, federal land banks, federal national
mortgage association, federal home loan banks, federal intermediate
credit banks, banks for cooperatives, Tennessee valley authority,
United States postal service, farmers home administration,
export-import bank, federal financing bank, federal home loan
mortgage corporation, student loan marketing association and
federal farm credit banks;
(c) Readily marketable (i.e. traded on a national securities
exchange) debt securities having a Standard & Poor rating of A (or
equivalent to Moody's rating) or higher, excluding municipal
securities;
(d) Any evidence of indebtedness that is secured by a first
lien deed of trust or mortgage upon real property situated within
this state, if the payment thereof is substantially insured or
guaranteed by the United States of America or any agency thereof;
(e) Repurchase agreements issued by any bank, trust company,
national banking association or savings institutions which mature
in less than one year and are fully collateralized. No reverse
repurchase agreements shall be allowed;
(f) Interest bearing deposits including certificates of
deposit and passbook savings accounts that are FDIC insured;
(g) Equity. -- Common stocks, securities convertible into
common stocks, or warrants and rights to purchase such securities: Provided, That each shall be listed on the NYSE, ASE or are traded
on the National OTC Market and listed on the NASDAQ National
Market.
(h) (b) The board of trustees of each fund may delegate
investment authority to equity mutual funds managers and/or
professional
registered investment advisors
who are registered with
the Securities and Exchange Commission,
in addition to being
registered in accordance with the Investment Advisors Act of 1940,
and
registered with the appropriate state regulatory agencies, if
applicable,
and who
also manage assets in excess of seventy-five
million dollars.
(c) The board of trustees of each fund shall deliver to the
oversight board on or before September 30, 2009, a copy of the
pension and relief fund's investment policy. The board of trustees
shall submit to the oversight board any change to the investment
policy within thirty days of the board's authorizing the change.
§8-22-22a. Restrictions on investments; disclosure of fees and
costs.
(a) Moneys invested as permitted by section twenty-two of this
article
and not invested with the West Virginia Investment
Management Board or the Board of Treasury Investments are subject
to the following restrictions and conditions contained in this
section:
(a) Fixed income securities shall at no time exceed ten
percent of the total assets of the pension fund, which are issued
by one issuer, other than the United States Government or agencies thereof, whereas this limit shall not apply;
(b) At no time shall the equity portion of the portfolio
exceed sixty percent of the total portfolio. Furthermore, the
debit or equity securities of any one company or association shall
not exceed five percent with a maximum of fifteen percent in any
one industry;
(c) Notwithstanding any other provisions of this article, any
investments in equities under subsections (g) and (h), section
twenty-two of this article shall be subject to the following
additional guidelines:
(1) Equity mutual funds shall be no sales load (front or back)
and no contingent deferred sales charges shall be allowed. The
total annual operating expense ratio shall not exceed one and
three-quarter percent for any mutual fund;
(2) The stated investment policy requires one hundred percent
of the equities of the portfolio be that of securities which are
listed on the New York Stock Exchange, the American Stock Exchange
or the NASDAQ National Market; and
(3) Equity mutual funds may be only of the following fund
description stated purpose: Growth funds, growth and income funds,
equity income funds, index funds, utilities funds, balanced funds
and flexible portfolio funds.
(1) The board shall hold in nonreal estate equity investments
no more than seventy-five percent of the assets managed by the
board and no more than seventy-five percent of the assets of any
individual participant plan.
(2) The board shall hold in real estate equity investments no
more than twenty-five percent of the assets managed by the board
and no more than twenty-five percent of the assets of any
individual participant plan: Provided, That the investment be made
only upon the recommendation by a professional, third-party
fiduciary investment adviser registered with the Securities and
Exchange Commission under the Investment Advisors Act of 1940, as
amended, upon the approval of the board or a committee designated
by the board, and upon the execution of the transaction by a
third-party investment manager: Provided, however, That the
board's ownership interest in any fund is less than forty percent
of the fund's assets at the time of purchase: Provided further,
That the combined investment of institutional investors, other
public sector entities and educational institutions and their
endowments and foundations in the fund is in an amount equal to or
greater than fifty percent of the board's total investment in the
fund at the time of acquisition. For the purposes of this
subsection, "fund" means a real estate investment trust traded on
a major exchange of the United States of America or a partnership,
limited partnership, limited liability company or other entity
holding or investing in related or unrelated real estate
investments, at least three of which are unrelated and the largest
of which is not greater than forty percent of the entity's holdings
at the time of purchase.
(3) The board shall hold in international securities no more
than thirty percent of the assets managed by the board and no more than thirty percent of the assets of any individual participant
plan.
(4) The board may not at the time of purchase hold more than
five percent of the assets managed by the board in the nonreal
estate equity securities of any single company or association:
Provided, That if a company or association has a market weighting
of greater than five percent in the Standard & Poor's 500 index of
companies, the board may hold securities of that nonreal estate
equity equal to its market weighting.
(5) No security may be purchased by the board unless the type
of security is on a list approved by the board. The board may
modify the securities list at any time, and shall review the list
annually.
(6) Notwithstanding the investment limitations set forth in
this section, it is recognized that the assets managed by the board
may temporarily exceed the investment limitations in this section
due to market appreciation, depreciation and rebalancing
limitations. Accordingly, the limitations on investments set forth
in this section shall not be considered to have been violated if
the board rebalances the assets it manages to comply with the
limitations set forth in this section at least once every twelve
months based upon the latest available market information and any
other reliable market data that the board considers advisable to
take into consideration, except for those assets authorized by
subdivision (2) of this subsection for which compliance with the
percentage limitations shall be measured at such time as the investment is made.
(7) The board shall annually review, establish and modify, if
necessary, the board's investment objectives and investment policy
so as to provide for the financial security of the trust funds
giving consideration to the following:
(A) Preservation of capital;
(B) Diversification;
(C) Risk tolerance;
(D) Rate of return;
(E) Stability;
(F) Turnover;
(G) Liquidity; and
(H) Reasonable cost of fees.
(8) The board is expressly prohibited from investing in any
class, style or strategy of alternative investments including a
private equity fund such as a venture capital, private real estate
or buy-out fund; commodities fund; distressed debt fund; mezzanine
debt fund; hedge fund; or fund consisting of any combination of
private equity, distressed or mezzanine debt, hedge funds, private
real estate, commodities and other types and categories of
investment permitted under this article.
(d) (b) The board of trustees of each fund shall obtain an
independent performance evaluation of the funds at least annually
and the evaluation shall consist of comparisons with other funds
having similar investment objectives for performance results with
appropriate market indices; and
(e) (c) Each entity conducting business for each pension fund
shall fully disclose all fees and costs of
transactions investing
conducted on a quarterly basis
to the trustees of the fund and to
the oversight board. Entities conducting business in mutual funds
for and on behalf of each pension fund shall timely file revised
prospectus and normal quarterly and annual Securities Exchange
Commission reporting documents with the board of trustees of each
pension fund.
§8-22-23a. Eligibility for total and temporary disability
pensions and total and permanent disability
pensions; reporting.
(a) All members applying for total and temporary or total and
permanent disability benefits after June 30, 1981, shall be
examined by at least two physicians under the direction of the
staff at Marshall University, West Virginia University, Morgantown
or West Virginia University, Charleston:
Provided, That if
such a
member's medical condition cannot be agreed upon by
the two
such
physicians, a third physician shall examine
such the member
:
Provided, however, That beginning September 1, 2009, and continuing
thereafter, a member applying for total and temporary or total and
permanent disability benefits shall be examined by two physicians
to be chosen and paid by the oversight board. If the two physicians
disagree, the oversight board shall select and pay for a third
examining physician. Such Each medical examination shall include
the review of
such the member's medical history,
but an examining
physician may not have access to the disability examination report or disability recommendation of another physician. The physicians
shall send copies of their reports to both the board of trustees of
the member's pension and relief fund and the oversight board. The
expense of the member's transportation to
such medical
examination
examinations and the expense of the medical examination shall be
paid by the board of trustees.
such Medical expense shall not
exceed the reasonable and customary charges for
such similar
services.
Beginning the July 1, 2009, and thereafter, if a member
is charged with an offense that has the potential to lead to the
member's termination, the member's municipal pensions and relief
fund board of trustees may not consider the member's eligibility
for disability benefits until after investigation of the charge is
completed and any disciplinary decision is implemented. No later
than January 1, 2010, and annually thereafter, each board of
trustees shall report to the oversight board the total number of
disability applications received during the prior fiscal year, the
status of each application as of the end of the fiscal year, total
applications granted and denied and the percentage of disability
benefit recipients to the total number of active members of the
fund.
(b) Effective for members becoming eligible for total and
temporary disability benefits after June 30, 1981, initially or
previously under this subsection allowance for initial or
additional total and temporary disability payments, the amount
thereof to be determined as specified in section twenty-four of
this article shall be paid to
such the member during
such the disability for a period not exceeding twenty-six weeks if after a
medical examination in accordance with subsection (a) of this
section of this article two examining physicians report in writing
to the board of trustees that: (1)
such The member has become so
totally, physically or mentally disabled, from any reason, as to
render
such the member totally, physically or mentally,
incapacitated for employment as a police officer or firefighter;
and (2) it has not been determined if
such the disability is
permanent or it has been determined that
such the disability may be
alleviated or eliminated if
such the member follows a reasonable
medical treatment plan or reasonable medical advice:
Provided,
That, in any event, a member is not eligible for total and
temporary disability payments following the fourth consecutive
twenty-six week period of total and temporary disability unless
such subsequent disability results from a cause unrelated to the
cause of the four previous periods of total and temporary
disability. During
such the two-year period of
such total and
temporary disability,
such the department is required to restore
such the member to his
or her former position in
such the
department at any time
he the member is determined to no longer be
disabled:
Provided, That the department may refill, on a temporary
basis, the position vacated by s
uch the member after the first
twenty-six weeks of his temporary disability.
(c) Effective for members becoming eligible for total and
permanent disability benefits initially under this subsection or
becoming eligible for total and temporary disability benefits under subsection (b) of this section after the thirtieth day of June, one
thousand nine hundred eighty-one, allowance for total and permanent
disability payments, the amount thereof to be determined as
specified in section twenty-four of this article, shall be paid to
such the member after a medical examination in accordance with
subsection (a) of this section, two examining physicians report in
writing to the board of trustees that
such the member has become so
totally, physically or mentally and permanently disabled, as a
proximate result of service rendered in the performance of his
or
her duties in
such the department, as to render
such the member
totally, physically or mentally and permanently incapacitated for
employment as a police officer or firefighter or, if
such the
member has been a member of either of
such the departments for a
period of not less than five consecutive years preceding
such the
disability,
such the member has become so totally, physically or
mentally and permanently disabled, from any reason other than
service rendered in the performance of his
or her duties in
such
the department, as to render
such the member totally, physically or
mentally and permanently incapacitated for employment as a police
officer or firefighter. The phrase "totally, physically or
mentally and permanently disabled" shall not be construed to
include a medical condition which may be corrected if
such the
member follows a reasonable medical treatment plan or reasonable
medical advice.
(d) Effective for members becoming eligible for total and
temporary disability benefits after the thirtieth day of June, one thousand nine hundred eighty-one, under the provisions of
subsection (b) of this section, any payments for total and
temporary disability for a period during
such the disability not
exceeding twenty-six weeks shall cease at the end of
such the
26-week period under the following conditions:
(1)
Such The member fails to be examined as provided in
subsection (a) of this section; or (2)
such the member is examined
or reexamined as provided in subsection (a) and two examining
physicians report to the board of trustees that
such the member's
medical condition does not meet the requirements of subsection (b)
or (c) of this section. Effective for members becoming eligible
for total and temporary disability benefits after the thirtieth day
of June, one thousand nine hundred eighty-one, under subsection (b)
of this section, subsequent to
such the member's receipt of total
and temporary disability payments for a period of two years,
such
the payments shall cease at the end of
such the two-year period
under the following conditions: (A)
Such The member fails to be
examined as provided in subsection (a) of this section of this
article; or (B)
such the member is examined or reexamined as
provided in subsection (a) and two examining physicians report to
the board of trustees that
such the member's medical condition does
not meet the requirements of subsection (c) of this section.
(e) Notwithstanding other provisions of this section to the
contrary, a member of a municipal policemen's or firemen's pension
and relief fund who is found to be disabled from performing the
full range of tasks relevant to police officer or firefighter employment but capable of performing a restricted or light-duty
police officer or firefighter job made available at the discretion
of the employing municipality may choose to continue working and
retain an active membership in his or her pension and relief fund.
§8-22-26a. Supplemental pension benefits entitlement; benefit
payable; application of section; construction;
solvency defined.
(a) Except as otherwise provided in this section, all
retirees, surviving beneficiaries, disability pensioners or future
retirees shall receive as a supplemental pension benefit an
annualized monthly amount commencing on the first day of July,
based on a percentage increase equal to any increase in the
CPI-U
consumer price index as calculated by the United States Department
of Labor, Bureau of Statistics, for the preceding
calendar year:
Provided, That the supplemental pension benefit specified herein
shall not exceed four percent per year:
Provided, however, That no
retiree shall be eligible for the supplemental pension benefit
specified herein until the first day of July after the expiration
of two years from the date of retirement of
said the retiree:
Provided further, That persons retiring prior to the effective date
of this section shall receive the supplemental benefit provided for
in this section immediately upon retirement and shall not be
subject to the two year delay: Provided further, That the
supplemental benefit shall
only be calculated
only on the allowable
amount, which is the first fifteen thousand dollars of the total
annual benefit paid,
in addition to accumulated supplemental pension benefits from previous years. The supplemental benefit is
calculated by multiplying the appropriate percentage increase for
the year by a total which represents the original fifteen thousand
dollars and any supplemental amount previously awarded. If at any
time after the supplemental benefit becomes applicable, the total
accumulated percentage increase in benefit on the allowable amount
becomes less than seventy-five percent of the total accumulated
percentage increase in the consumer price index over that same
period of time, the four percent limitation shall be inapplicable
until such time as the supplemental benefit paid equals
seventy-five percent of the accumulated increase in the consumer
price index. The supplemental pension benefit payable under the
provisions of this section shall be paid in equal monthly
installments.
(b) Upon commencement of the payment of death benefits
pursuant to section twenty-six of this article, there shall be
calculated on the allowable amount, which is the first fifteen
thousand dollars of the annual allowable benefit under said
section, the supplemental benefit provided for in subsection (a) of
this section using the date that the retirement benefit provided
for pursuant to section twenty-five of this article began as the
base year. The amount of the death benefit provided pursuant to
section twenty-six of this article shall be calculated without
regard to any supplemental benefit previously paid under this
section. After the initial calculation made pursuant to this
subsection the beneficiary of the benefits provided
for pursuant to section twenty-six of this article shall, after reindexation,
thereafter receive the supplemental benefit provided
for in
subsection (a) of this section.
(c) Persons becoming disabled and eligible for a benefit under
subsection (d), section twenty-four of this article after January
1, 1991, shall receive as an annualized monthly supplemental
benefit commencing on each July 1 an amount based on a percentage
increase equal to any increase in the consumer price index as
calculated by the United States Department of Labor, Bureau of
Statistics, for the preceding year:
Provided, That the supplemental
pension benefit shall not exceed four percent per year:
Provided,
however, That the benefit provided herein shall not commence until
the first day of July in the second year after what would have been
the earliest service retirement date pursuant to section
twenty-five of this article for the person receiving the disability
benefit:
Provided further, That for persons becoming eligible for
a benefit under subsection (d), article twenty-four of this section
who were not employed in the preceding year and file a copy of his
or her income tax return by the fifteenth
day of April each year,
evidencing
said a lack of employment, the benefit provided herein
shall commence on the first day of July in the second year after
the date of disablement:
And provided further, That the
supplemental benefit shall only be calculated on the allowable
amount, which is the first fifteen thousand dollars of the total
annual benefit paid
in addition to accumulated supplemental pension
benefits from previous years. If at any time after the commencement of the payment of the supplemental benefit provided
under this subsection the total accumulated percentage increase in
benefit on the allowable amount becomes less than seventy-five
percent of the total accumulated increase in the consumer price
index for that same period of time, the four percent limitation
shall be inapplicable until such time as the supplemental benefit
paid equals seventy-five percent of the accumulated increase in the
consumer price index.
(d) Persons receiving a disability pension pursuant to section
twenty-four of this article prior to January 1, 1991, shall receive
commencing each July 1, as an annualized monthly supplemental
benefit an amount based on a percentage increase equal to any
increase in the consumer price index as calculated by the United
States Department of Labor, Bureau of Statistics, for the preceding
year:
Provided, That the supplemental benefit provided herein
shall not exceed two percent per year:
Provided, however, That
beginning the first day of July two years after what would have
been the earliest service retirement date pursuant to section
twenty-five of this article the supplemental benefit provided
herein shall not exceed four percent per year. The amount of
supplemental benefit provided in this subsection shall not exceed
four percent beginning the first day of July in any twelve month
period for any pensioner who files a certified copy of his or her
tax return evidencing that
said the pensioner was unemployed in the
preceding year and received no earned income. The tax return shall
be filed by the fifteenth
day of April in
any such year the year following the year of unemployment. If at any time after the first
day of July in the second year from what would have been the
earliest service retirement date pursuant to section twenty-five of
this article the total accumulated percentage increase in the
supplemental benefit provided pursuant to this subsection on the
allowable amount becomes less than the seventy-five percent of the
total accumulated percentage increase in the consumer price index
over that same period of time, the maximum percentage shall be
inapplicable until such time as the percentage increase in the
supplemental benefit paid equals seventy-five percent of the
accumulated increase in the consumer price index. The supplemental
benefit provided in this subsection shall
only be calculated on the
allowable amount
only, which is the first fifteen thousand dollars
of the annual benefit paid
in addition to accumulated supplemental
pension benefits from previous years.
(e) Any supplemental benefits paid during a period of
nonentitlement may be withheld out of subsequent regular monthly
pension benefits.
(f)
During the fiscal year ending on the thirtieth day of
June, one thousand nine hundred ninety-six and each year
thereafter, Each municipal policemen's and firemen's pension fund
shall be reviewed
annually by a qualified actuary
as provided in
section twenty of this article, who shall make a determination as
to its
actuarial soundness solvency. Based upon the actuary's
determination of the
actuarial soundness solvency of the fund, the
actuary shall certify to the board of trustees of the fund the amount of increase in supplemental benefits, if any, which may be
paid, and which will preserve the
minimum standards for actuarial
soundness solvency of the fund
as set forth in section twenty of
this article.
For purposes of this section, a fund shall be
considered solvent for a fiscal year if assets are sufficient to
pay expected benefit payments for at least the next eighteen months
after the increase in supplemental benefits. The board of trustees
shall increase supplemental benefits by an amount which is equal to
the actuary's certified recommendation, up to the four-percent
limit contained in this section or the increase in the consumer
price index, whichever is less,
if the plan is solvent and
municipality contributions under subsection (c), section twenty of
this article are fully paid to date.
(g) This section shall be construed liberally to effectuate
the purpose of establishing minimum pension benefits under this
article for members and surviving spouses.
§8-22-27. General provisions concerning disability pensions,
retirement pensions and death benefits.
(a) In determining the years of service of a member in a paid
police or fire department for the purpose of ascertaining certain
disability pension benefits, all retirement pension benefits and
certain death benefits, the following provisions shall be
applicable:
(1) Absence from the service because of sickness or injury for
a period of two years or less shall not be construed as time out of
service; and
(2) Any member of any paid police or fire department covered
by the provisions of sections sixteen through twenty-eight of this
article who has been
required to or shall at any future time be
required to enter the Armed Forces of the United States by
conscription, by reason of being a member of some reserve unit of
the Armed Forces or a member of the West Virginia National Guard or
air National Guard, whose reserve unit or guard unit is called into
active duty for one year or more, or who enlists in one of or will
be on qualified military service in the armed forces of the United
States,
and who upon receipt of has an honorable discharge from
such the armed forces, presents himself
or herself for resumption
of duty to his
or her appointing municipal official within six
months from his date of discharge and is accepted by
the pension
board's board of medical examiners medical examiners appointed by
the oversight board as being mentally and physically capable of
performing
his the required duties as a member of
such the paid
police or fire department, shall be given credit for continuous
service in
said the paid police or fire department
and his the
member's rights shall be governed as herein provided.
The
six-month period in which a member has to resume employment and
receive credit for continuous service is extended to a period not
to exceed two years if the member has been hospitalized for, or
convalescing from, an illness or injury incurred in, or aggravated
during, qualified military service. No member of a paid police or
fire department shall be required to pay the monthly assessment
, as
now required by law, during
his a period of
qualified military service
in the Armed Forces of the United States. However, a
member who desires to make up member assessments, in whole or in
part, has five years from the date of return to work, but shall not
be required to pay any interest or other charges for the
assessments being made up. The employer must pay the employer
contributions for the periods made up by the member within ninety
days of each payment, or within ninety days of the normal due date.
A member who resumes duty with a paid police or fire department
after qualified military service is entitled to accrued benefits
only to the extent that the member made up the member assessments.
(b) As to any former member of a paid police or fire
department receiving disability pension benefits or retirement
pension benefits from a policemen's or firemen's pension and relief
fund, on July 1, 1985, the following provisions shall govern and
control the amount of
such the pension benefits:
(1) A former member who on June 30, 1962, was receiving
disability pension benefits or retirement pension benefits from a
policemen's or firemen's pension and relief fund, shall continue to
receive pension benefits, but on and after July 1, 1985,
such the
pension benefits shall be no less than the amount of five hundred
dollars per month; and
(2) A former member who became entitled to disability pension
benefits or retirement pension benefits on or after July 1, 1962,
shall continue to receive pension benefits, but on and after July
1, 1985, shall receive the disability pension benefits, or
retirement pension benefits provided for in section twenty-four or section twenty-five of this article, as the case may be.
(c) As to any surviving spouse, dependent child or children,
or dependent father or mother, or dependent brothers or sisters, of
any former member of a paid police or fire department, receiving
any death benefits from a policemen's pension and relief fund or
firemen's pension and relief fund, on July 1, 1985, the following
provisions shall govern and control the amount of such death
benefits:
(1) A surviving spouse, dependent child or children or
dependent father or mother, or dependent brothers or sisters, of
any former member, who on June 30, 1962, was receiving any death
benefits from a policemen's pension and relief fund or firemen's
pension and relief fund, shall continue to receive death benefits,
but on and after July 1, 1985, such death benefits shall be no less
than the following amounts: To a surviving spouse, until death or
remarriage, the sum of three hundred dollars per month, to each
dependent child the sum of thirty dollars per month, until such
child shall attain the age of eighteen years or marries, whichever
first occurs; to each dependent orphaned child, the sum of
forty-five dollars per month, until such child attains the age of
eighteen years or marries, whichever first occurs; to each
dependent father and mother the sum of thirty dollars per month for
each; to each dependent brother or sister, the sum of fifty dollars
per month, until
such the individual attains the age of eighteen
years or marries, whichever first occurs, but in no event shall the
aggregate amount paid to such brothers and sisters exceed one hundred dollars per month. If at any time, because of the number
of dependents, all such dependents cannot be paid in full as herein
provided, then each dependent shall receive
his a pro rata share of
such the payments. In no case shall the payments to the surviving
spouse and children be cut below sixty-five percent of the total
amount paid to all dependents; and
(2) A surviving spouse, dependent child or children, or
dependent father or mother, or dependent brothers or sisters, of
any former member who became eligible for death benefits on or
after July 1, 1962, shall continue to receive death benefits, but
on and after July 1, 1985, shall receive the death benefits
provided for in section twenty-six of this article.
(d) A former member who is receiving disability pension
benefits on July 1, 1985, shall continue to receive disability
pension benefits provided for in section twenty-four of this
article.
CHAPTER 11. TAXATION.
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-12i. Additional modification reducing federal adjusted
gross income for insurance policy premium
surcharges.
(a) For taxable years beginning on and after January 1, 2009,
in addition to amounts authorized to be subtracted from federal
adjusted gross income pursuant to subsection (c), section twelve of
this article, any payment made during the taxable year for
insurance policy premium surcharges imposed for the purpose of providing additional revenue for volunteer fire departments and
part-volunteer fire departments pursuant to sections thirty-four
and and thirty-five, article three, chapter thirty-three of this
code, is an authorized modification reducing federal adjusted gross
income, but only to the extent the amount is not allowable as a
deduction when arriving at the taxpayer's federal adjusted gross
income for the taxable year in which the payment is made.
CHAPTER 12. PUBLIC MONEYS AND SECURITIES.
ARTICLE 4. ACCOUNTS, REPORTS AND GENERAL PROVISIONS.
§12-4-14. Accountability of persons receiving state funds or
grants; 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 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"; (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 section thirty-four, article
three, chapter thirty-three of this code and section seven, article
twelve-c of said chapter.
(b)(1) Any person who receives one or more state grants in the
amount of $50,000 or more in the aggregate in a state's fiscal year
shall file with the grantor a report of the disbursement of the
state grant funds. When the grantor causes an audit, by an
independent certified public accountant, 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 the
twenty-seventh day of June, two thousand three, 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 $50,000 or who is not required to file a report because an
audit has been conducted or substituted as provided by subdivision
(1) of this subsection shall file with the grantor a sworn
statement of expenditures made under the grant.
(3) Reports and sworn statements of expenditures required by
subdivisions (1) and (2) of this subsection shall be filed within
two years of the end of the 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 (3), subsection (b) of this section for state grant
funds disbursed after July 1, 2003, is barred from subsequently
receiving state grants until the person has filed the report or
sworn statement of expenditures 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 period provided in subdivision
(3), subsection (b) of this section for a state grant disbursed
after July 1, 2003, 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) All grantors awarding state grants 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 subsection (e) of this section.
(3) If any report or sworn statement of expenditures submitted
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.
(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 section thirty-four, 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.
(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.
(g) (1) Volunteer and part-volunteer fire departments
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 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 filed on or before the fifteenth day of May,
unless the time period is extended by the Legislative Auditor, the
Legislative Auditor may conduct 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 seven, article
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 seven, article
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 seven,
article 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 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.
(h) (g) 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.
(i) (h) 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 $1,000 nor
more than $5,000 or imprisoned in a state correctional facility for
not less than one year nor more than five years, or both fined and
imprisoned.
CHAPTER 33. INSURANCE.
ARTICLE 2. INSURANCE COMMISSIONER.
§33-2-15e. Study required.
The commissioner is hereby directed to study the impact of
grouping risks by classifications and by territorial areas for the
establishment of rates and minimum premiums, as set forth in
subdivision (2), subsection (c), section three, article twenty of this chapter, and to submit a report to the Legislature by
September 30, 2009.
ARTICLE 3. LICENSING, FEES AND TAXATION OF INSURERS.
§33-3-14d. Additional fire and casualty insurance premium tax;
allocation of proceeds;
effective date repealed
July 1, 2009.
(a) For the purpose of providing additional revenue for
municipal policemen's and firemen's pension and relief funds and
the teachers retirement system reserve fund and for volunteer and
part volunteer fire companies and departments, there is hereby
levied and imposed an additional premium tax equal to one percent
of taxable premiums for fire insurance and casualty insurance
policies. For purposes of this section, casualty insurance does
not include insurance on the life of a debtor pursuant to or in
connection with a specific loan or other credit transaction or
insurance on a debtor to provide indemnity for payments becoming
due on a specific loan or other credit transaction while the debtor
is disabled as defined in the policy.
All moneys collected from this additional tax shall be
received by the commissioner and paid by him or her into a special
account in the state treasury, designated the municipal pensions
and protection fund. The net proceeds of this tax after
appropriation thereof by the Legislature is distributed in
accordance with the provisions of this section.
(b)(1) Before the first day of August of each calendar year,
the treasurer of each municipality in which a municipal policemen's or firemen's pension and relief fund has been established shall
report to the state treasurer the average monthly number of members
who worked at least one hundred hours per month and the average
monthly number of retired members of municipal policemen's or
firemen's pension systems during the preceding fiscal year.
(2) Before the first day of September of each calendar year,
the state treasurer shall allocate and authorize for distribution
the revenues in the municipal pensions and protection fund which
were collected during the preceding calendar year for the purposes
set forth in this section. Sixty-five percent of the revenues are
allocated to municipal policemen's and firemen's pension and relief
funds; twenty-five percent of the revenues shall be allocated to
volunteer and part volunteer fire companies and departments; and
ten percent of such allocated revenues are allocated to the
teachers retirement system reserve fund created by section
eighteen, article seven-a, chapter eighteen of this code:
Provided, That in any year the actuarial report required by section
twenty, article twenty-two, chapter eight of this code indicates no
actuarial deficiency in the municipal policemen's or firemen's
pension and relief fund, no revenues may be allocated from the
municipal pensions and protection fund to that fund. The revenues
from the municipal pensions and protection fund shall then be
allocated to all other pension funds which have an actuarial
deficiency.
(3) The moneys, and the interest earned thereon, in the
municipal pensions and protection fund allocated to volunteer and part volunteer fire companies and departments shall be allocated
and distributed quarterly to the volunteer fire companies and
departments. Before each distribution date, the state fire marshal
shall report to the state treasurer the names and addresses of all
volunteer and part volunteer fire companies and departments within
the state which meet the eligibility requirements established in
section eight-a, article fifteen, chapter eight of this code.
(c)(1) Each municipal pension and relief fund shall have
allocated and authorized for distribution a pro rata share of the
revenues allocated to municipal policemen's and firemen's pension
and relief funds based upon the corresponding municipality's
average monthly number of members who worked at least one hundred
hours per month during the preceding fiscal year. On and after the
first day of July, one thousand nine hundred ninety-seven, from the
growth in any moneys collected pursuant to the tax imposed by this
section there shall be allocated and authorized for distribution to
each municipal pension and relief fund, a pro rata share of the
revenues allocated to municipal policemen's and firemen's pension
and relief funds based upon the corresponding municipalities
average number of members who worked at least one hundred hours per
month and average monthly number of retired members. For the
purposes of this subsection, the growth in moneys collected from
the tax collected pursuant to this section is determined by
subtracting the amount of the tax collected during the fiscal year
ending the thirtieth day of June, one thousand nine hundred
ninety-six, from the tax collected during the fiscal year for which the allocation is being made. All moneys received by municipal
pension and relief funds under this section may be expended only
for those purposes described in sections sixteen through
twenty-eight, inclusive, article twenty-two, chapter eight of this
code.
(2) Each volunteer fire company or department shall receive an
equal share of the revenues allocated for volunteer and part
volunteer fire companies and departments.
(3) In addition to the share allocated and distributed in
accordance with subdivision (1) of this subsection, each municipal
fire department composed of full-time paid members and volunteers
and part volunteer fire companies and departments shall receive a
share equal to the share distributed to volunteer fire companies
under subdivision (2) of this subsection reduced by an amount equal
to the share multiplied by the ratio of the number of full-time
paid fire department members who are also members of a municipal
firemen's pension system to the total number of members of the fire
department.
(d) The allocation and distribution of revenues provided for
in this section are subject to the provisions of section twenty,
article twenty-two, and sections eight-a and eight-b, article
fifteen, chapter eight of this code.
(e) Each and every provision of this section is repealed
beginning on and after July 1, 2009.
§33-3-14e. Additional fire and casualty insurance premium tax;
allocation of proceeds; effective July 1, 2009.
(a)(1) For the purpose of providing additional revenue for
municipal policemen's and firemen's pension and relief funds, there
is hereby levied and imposed an additional premium tax equal to
seventy-five hundredths of one percent of taxable premiums for fire
insurance and casualty insurance policies. For purposes of this
section, casualty insurance does not include insurance on the life
of a debtor pursuant to or in connection with a specific loan or
other credit transaction or insurance on a debtor to provide
indemnity for payments becoming due on a specific loan or other
credit transaction while the debtor is disabled as defined in the
policy.
(2) All moneys collected from this additional tax shall be
received by the commissioner and paid into a special account in the
State Treasury, designated the Municipal Pensions Security Fund,
subject to provisions of section eighteen-b, article twenty-two,
chapter eight of this code. After the distribution for expenses
pursuant to subsection (d), section eighteen-a, article twenty-two,
chapter eight of this code, the net proceeds of this tax after
appropriation thereof by the Legislature shall be distributed in
accordance with the provisions of this section.
(b) Before August 1, 2009, the treasurer of each municipality
in which a municipal policemen's or firemen's pension and relief
fund has been established shall report to the State Treasurer the
average monthly number of members who worked at least one hundred
hours per month and the average monthly number of retired members
of municipal policemen's or firemen's pension systems during the preceding fiscal year. Beginning in 2010, before August 1 of each
year, the report shall be made to the municipal pensions oversight
board created in section eighteen-a, article twenty-two, chapter
eight of this code, and the board shall provide a copy of the
report annually to the State Treasurer by September 1.
(c)(1) Before September 1, 2009, the State Treasurer shall
allocate and authorize for distribution the revenues in the
municipal pensions and protection fund in an amount equal to the
amount that was collected during the preceding calendar year,
together with any interest or other earnings thereon, to municipal
policemen's and firemen's pension and relief funds for the purposes
set forth in this section.
(2) Before September 1, 2010, the municipal pensions oversight
board shall allocate and authorize for distribution the revenues
in Municipal Pensions Security Fund in an amount equal to total of
the amount transferred to the Municipal Pensions Security Fund from
the municipal pensions and protection fund on September 1, 2009 and
the amount collected during from September through December, 2009,
together with any interest or other earnings thereon, to municipal
policemen's and firemen's pension and relief funds for the purposes
set forth in this section, subject to provisions in section
eighteen-b, article twenty-two, chapter eight of this code.
(3)(A) Beginning in 2011, before September 1 of each year, the
Municipal Pensions Oversight Board shall allocate and authorize for
distribution a portion of the revenues in the Municipal Pensions
Security Fund in an amount equal to the amount of the additional premium tax collected during the preceding calendar year, together
with any interest or other earnings thereon, to municipal
policemen's and firemen's pension and relief funds for the purposes
set forth in this section, subject to provisions in sections
nineteen and twenty, article twenty-two, chapter eight of this
code.
(B) Allocations and distributions of the amounts described in
this subdivision shall be made on a pro rata basis based upon the
corresponding municipalities' average number of members who worked
at least one hundred hours per month and average monthly number of
retired members. All moneys received by municipal pension and
relief funds under this section may be expended only for those
purposes described in sections sixteen through twenty-eight,
inclusive, article twenty-two, chapter eight of this code.
(d) To be eligible to receive any allocation of moneys from
the Municipal Pensions and Protection Fund or the Municipal
Pensions Security Fund, a municipal policemen's or firemen's
pension and relief fund must have had contributions from all
members in accordance with provisions of subsection (c), section
nineteen, article twenty-two, chapter eight of this code and meet
the minimum standards for annual municipality contributions
pursuant to subsection (c), section twenty, article twenty-two,
chapter eight of this code.
(e) In any year the actuarial report required by section
twenty, article twenty-two, chapter eight of this code indicates a
municipal policemen's or firemen's pension and relief fund has assets amounting to one hundred ten percent of its actuarially
accrued liabilities, no revenues may be allocated from the
Municipal Pensions and Protection Fund or the Municipal Pensions
Security Fund to that municipal pension and relief fund. The
revenues from the Municipal Pensions and Protection Fund or
Municipal Pensions Security Fund shall then be allocated to all
other pension funds which have not achieved a funding level of one
hundred ten percent. However, for plans with a funding level of at
least one hundred ten percent that are not eligible for revenue
from the Municipal Pensions Protection Fund or Municipal Pensions
Security Fund, the minimum standards for annual employer
contributions after July 1, 2009, as defined in subsection (c),
section twenty, article twenty-two, chapter eight of this code,
shall equal the normal cost less the amortized value of the
actuarial surplus over a period of not more than forty years
beginning on July 1, 2009. For this purpose, the actuarial surplus
equals the excess of the actuarial value of assets over the
actuarial accrued liability as defined in subdivision (1),
subsection (c), section twenty, article twenty-two, chapter eight
of this code.
(f) Except where otherwise provided by this section, each
municipal pension and relief fund shall have allocated and
authorized for distribution a pro rata share of the revenues
allocated to municipal policemen's and firemen's pension and relief
funds based upon the corresponding municipalities' average number
of members who worked at least one hundred hours per month and average monthly number of retired members. Except where otherwise
provided by this section, all moneys received by municipal pension
and relief funds under this section may be expended only for those
purposes described in sections sixteen through twenty-eight,
inclusive, article twenty-two, chapter eight of this code.
(g) The allocation and distribution of revenues provided in
this section are subject to the provisions of section twenty,
article twenty-two, chapter eight of this code.
(h) The provisions of this section are effective beginning
July 1, 2009, and thereafter.
§33-3-33. Surcharge on fire and casualty insurance policies to
benefit volunteer and part-volunteer fire
departments; Public Employees Insurance Agency and
municipal pension plans; special fund created;
allocation of proceeds;
effective date repealed July
1, 2009.
(a)(1) For the purpose of providing additional revenue for
volunteer fire departments, part-volunteer fire departments and
certain retired teachers and the teachers retirement reserve fund,
there is hereby authorized and imposed on and after the first day
of July, one thousand nine hundred ninety-two, on the policyholder
of any fire insurance policy or casualty insurance policy issued by
any insurer, authorized or unauthorized, or by any risk retention
group, a policy surcharge equal to one percent of the taxable
premium for each such policy. After the thirtieth day of June, two thousand five, the surcharge shall be imposed as specified in
subdivisions (2) and (3) of this subsection.
(2) After the thirtieth day of June, two thousand five,
through the thirty-first day of December, two thousand five, for
the purpose of providing additional revenue for volunteer fire
departments, part-volunteer fire departments and to provide
additional revenue to the Public Employees Insurance Agency and
municipal pension plans, there is hereby authorized and imposed on
and after the first day of July, two thousand five, on the
policyholder of any fire insurance policy or casualty insurance
policy issued by any insurer, authorized or unauthorized, or by any
risk retention group, a policy surcharge equal to one percent of
the taxable premium for each such policy.
(3) After the thirty-first day of December, two thousand five,
for the purpose of providing additional revenue for volunteer fire
departments and part-volunteer fire departments, there is hereby
authorized and imposed on the policyholder of any fire insurance
policy or casualty insurance policy issued by any insurer,
authorized or unauthorized, or by any risk retention group, a
policy surcharge equal to fifty-five one hundredths of one percent
of the taxable premium for each such policy.
(4) For purposes of this section, casualty insurance may not
include insurance on the life of a debtor pursuant to or in
connection with a specific loan or other credit transaction or
insurance on a debtor to provide indemnity for payments becoming
due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy. The policy surcharge may not
be subject to premium taxes, agent commissions or any other
assessment against premiums.
(b) The policy surcharge shall be collected and remitted to
the Commissioner by the insurer, or in the case of surplus lines
coverage, by the surplus lines licensee, or if the policy is issued
by a risk retention group, by the risk retention group. The amount
required to be collected under this section shall be remitted to
the Commissioner on a quarterly basis on or before the twenty-fifth
day of the month succeeding the end of the quarter in which they
are collected, except for the fourth quarter for which the
surcharge shall be remitted on or before the first day of March of
the succeeding year.
(c) Any person failing or refusing to collect and remit to the
Commissioner any policy surcharge and whose surcharge payments are
not postmarked by the due dates for quarterly filing is liable for
a civil penalty of up to one hundred dollars for each day of
delinquency, to be assessed by the Commissioner. The Commissioner
may suspend the insurer, broker or risk retention group until all
surcharge payments and penalties are remitted in full to the
Commissioner.
(d)(1) All money from the policy surcharge shall be collected
by the Commissioner who shall disburse the money received from the
surcharge into a special account in the State Treasury, designated
the Fire Protection Fund. The net proceeds of this portion of the
tax and the interest thereon, after appropriation by the Legislature, shall be distributed quarterly on the first day of the
months of January, April, July and October to each volunteer fire
company or department on an equal share basis by the State
Treasurer. After the thirtieth day of June, two thousand five, the
money received from the surcharge shall be distributed as specified
in subdivisions (2) and (3) of this subsection.
(2)(A) After the thirtieth day of June, two thousand five,
through the thirty-first day of December, two thousand five, all
money from the policy surcharge shall be collected by the
Commissioner who shall disburse one half of the money received from
the surcharge into the Fire Protection Fund for distribution as
provided in subdivision (1) of this subsection.
(B) The remaining portion of moneys collected shall be
transferred into the fund in the State Treasury of the Public
Employees Insurance Agency into which are deposited the
proportionate shares made by agencies of this state of the Public
Employees Insurance Agency costs of those agencies, until the first
day of November, two thousand five. After the thirty-first day of
October, two thousand five, through the thirty-first day of
December, two thousand five, the remain portion shall be
transferred to the special account in the State Treasury, known as
the Municipal Pensions and Protection Fund.
(3) After the thirty-first day of December, two thousand five,
all money from the policy surcharge shall be collected by the
Commissioner who shall disburse all of the money received from the
surcharge into the Fire Protection Fund for distribution as provided in subdivision (1) of this subsection.
(4) Before each distribution date to volunteer fire companies
or departments, the State Fire Marshal shall report to the State
Treasurer the names and addresses of all volunteer and
part-volunteer fire companies and departments within the state
which meet the eligibility requirements established in section
eight-a, article fifteen, chapter eight of this code.
(e) The allocation, distribution and use of revenues provided
in the Fire Protection Fund are subject to the provisions of
sections eight-a and eight-b, article fifteen, chapter eight of
this code.
(f) Each and every provision of this section is repealed
beginning on and after July 1, 2009.
§33-3-34. Surcharge on fire and casualty insurance policies to
benefit volunteer and part-volunteer fire
departments; allocation of proceeds; effective July
1, 2009.
(a)(1) For the purpose of providing additional revenue for
volunteer fire departments and part-volunteer fire departments,
there is hereby authorized and imposed on the policyholder of any
fire insurance policy or casualty insurance policy issued by any
insurer, authorized or unauthorized, or by any risk retention
group, a policy surcharge equal to eighty hundredths of one percent
of the taxable premium for each such policy.
(2) For purposes of this section, casualty insurance may not
include insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction or
insurance on a debtor to provide indemnity for payments becoming
due on a specific loan or other credit transaction while the debtor
is disabled as defined in the policy. The policy surcharge may not
be subject to premium taxes, agent commissions or any other
assessment against premiums.
(b) The policy surcharge shall be collected and remitted to
the commissioner by the insurer, or in the case of surplus lines
coverage, by the surplus lines licensee, or if the policy is issued
by a risk retention group, by the risk retention group. The amount
required to be collected under this section shall be remitted to
the commissioner on a quarterly basis on or before the twenty-fifth
day of the month succeeding the end of the quarter in which they
are collected, except for the fourth quarter for which the
surcharge shall be remitted on or before March 1 of the succeeding
year.
(c) Any person failing or refusing to collect and remit to the
commissioner any policy surcharge and whose surcharge payments are
not postmarked by the due dates for quarterly filing is liable for
a civil penalty of up to $100 for each day of delinquency, to be
assessed by the commissioner. The commissioner may suspend the
insurer, broker or risk retention group until all surcharge
payments and penalties are remitted in full to the commissioner.
(d)(1) All money from the policy surcharge shall be collected
by the commissioner who shall disburse the money received from the
surcharge into a special account in the State Treasury, designated the Fire Protection Fund. The net proceeds of this surcharge and
the interest or other earnings thereon, after appropriation by the
Legislature, shall be distributed quarterly on the first day of the
months of January, April, July and October to each volunteer fire
company or department on an equal share basis by the State
Treasurer. Each volunteer fire company or department shall receive
an equal share of the revenues allocated for volunteer and part
volunteer fire companies and departments.
(2) Each municipal fire department composed of full-time paid
members and volunteers and part volunteer fire companies and
departments shall receive a share equal to the share distributed to
volunteer fire companies under subdivision (1) of this subsection
reduced by an amount equal to the share multiplied by the ratio of
the number of full-time paid fire department members who are also
members of a municipal firemen's pension system to the total number
of members of the fire department.
(3) Before each distribution date to volunteer fire companies
or departments, the State Fire Marshal shall report to the State
Treasurer the names and addresses of all volunteer and
part-volunteer fire companies and departments within the state
which meet the eligibility requirements established in section
eight-a, article fifteen, chapter eight of this code.
(e) The allocation, distribution and use of revenues provided
from the Fire Protection Fund are subject to the provisions of
sections eight-a and eight-b, article fifteen, chapter eight of
this code.
(f) The provisions of this section are effective beginning
July 1, 2009, and thereafter.
§33-3-35. Volunteer Firefighters Length of Service Awards
Programs Fund benefits for members of volunteer and
part volunteer fire companies and departments;
special fund created; allocation of proceeds;
duties of State Treasurer and State Insurance
Commissioner.
(a) There is hereby created in the state treasury a special
revenue fund to be administered by the State Treasurer, designated
the "Volunteer Firefighters Length of Service Awards Program Fund."
The fund shall consist of all moneys deposited pursuant to section
seventeen, article three, chapter sixty of this code. The moneys
of the fund shall be expended solely for the purposes provided in
this section in accordance with subsection (b) of this section.
Any earnings or other return on the investment of the moneys in
the fund shall be deposited into the General Revenue Fund, but at
the end of each fiscal year, the moneys deposited into the fund
shall not revert to the General Revenue Fund but shall continue to
be held in the fund for expenditure during the ensuing fiscal year,
except as provided in subsection (b) of this section.
(b)(1) On and after January 1, 2011, and each year thereafter,
the State Treasurer shall distribute an amount equal to the amount
of money in the Volunteer Firefighters Length of Service Awards
Program Fund that was collected and deposited into the fund during the next preceding calendar year as provided in this subsection.
(2) Not more than one-half of one percent of the total amount
of collections during the next preceding calendar year, in an
amount not to exceed $100,000 as certified by the State Insurance
Commissioner as necessary to defray the annual expenses for the
performance of the administrative duties imposed upon the State
Insurance Commissioner by this section and section eight-e, article
fifteen, chapter eight of this code, shall be transferred by the
State Treasurer to an account designated by the State Insurance
Commissioner.
(3) Not more than one-half of one percent of the total amount
of collections during the next preceding calendar year, in an
amount not to exceed $100,000 as certified by the State Treasurer
as necessary to defray the annual expenses for the performance of
the administrative duties imposed upon the State Treasurer by this
section, shall be transferred to an account designated by the State
Treasurer.
(4) From the net amount collected and deposited into the fund
during the next preceding calendar year as provided in this
subsection, the State Treasurer shall distribute a share, as
determined in subdivisions (5) and (6) of this subsection, to each
eligible volunteer and part volunteer fire company and department
that provides benefits to their members under a qualified length of
service awards program for purposes of defraying the annual expense
of the premium costs incurred by the volunteer or part volunteer
fire company or department to participate in the program.
(5) Before each distribution, the State Fire Marshal shall
report to the State Treasurer the names and addresses of all
volunteer and part volunteer fire companies and departments within
the state which meet the eligibility requirements established in
section eight-e, article fifteen, chapter eight of this code, and
separately identify the names and addresses of those that are
enrolled in a qualified length of service awards program and the
payment or portion of payment due or that will become due from each
of those volunteer and part volunteer fire companies and
departments during the current year to continue coverage under the
program.
(6) The share distributed to each qualified volunteer and part
volunteer fire company and department shall be the lesser of the
amount of the payment or portion of payment due or that will become
due during the current year from the volunteer or part volunteer
fire company or department to continue coverage under the program,
or an amount equal to the net amount collected and deposited into
the fund during the next preceding calendar year as described in
subdivision (1) of this subsection divided by the total number of
volunteer and part volunteer fire companies and departments within
the state reported by the State Fire Marshal under subdivision (5)
of this subsection.
(7) Within thirty days following the expiration of the
calendar year, the State Treasurer shall transfer any amount
undistributed and remaining of the moneys to be distributed under
subdivision (6) of this subsection to the Fire Protection Fund administered pursuant to section thirty-four of this article and
expended for the purposes provided by that section.
(c) Funds received by volunteer and part volunteer fire
companies and departments pursuant to this section shall be used
solely for the cost of providing a length of service awards program
for their members. Any volunteer or part volunteer fire company or
department that fails to expend those funds for those purposes
shall repay the amount of the funds to the State Treasurer within
one year of receipt. The State Treasurer shall deposit all repaid
amounts into the Fire Protection Fund administered pursuant to
section thirty-four of this article.
(d) The allocation, distribution and use of revenues provided
in the Volunteer Firefighters Length of Service Awards Program Fund
are subject to sections eight-b and eight-e, article fifteen,
chapter eight of this code.
CHAPTER 60. STATE CONTROL OF ALCOHOLIC LIQUORS.
ARTICLE 3. SALES BY COMMISSIONER.
"§60-3-17. Regulations as to handling and depositing of moneys
collected; monthly remittances;
remittances to the
West Virginia Municipal Pensions Matching Fund and
the Volunteer Firefighters Length of Service Awards
Program Fund beginning July 1, 2009; criminal
penalty.
(a) The commissioner, with the approval of the state
treasurer, shall prescribe regulations for the handling and depositing of all moneys collected by the commissioner. All
receipts accruing to and available for the general revenue fund in
excess of the requirements of the operating fund
, the requirements
of subsection (b) of this section, and the license fee and
additional sales tax imposed by the provisions of this chapter
shall be remitted by the commissioner to the state treasury monthly
within fifteen days next after the end of each calendar month.
(b) Beginning July 1, 2009, from the moneys collected annually
by the commissioner in excess of the requirements of the operating
fund, $9 million of the excess amount shall be remitted by the
commissioner to the state treasury and deposited by the state
treasurer into the West Virginia Municipal Pensions Matching Fund
established in section fourteen-e, article three, chapter thirty-
three of this code, and $6 million of the excess amount shall be
remitted by the commissioner to the state treasury and deposited by
the state treasurer into the Volunteer Firefighters Length of
Service Awards Program Fund established in section thirty-five,
article three, chapter thirty-three of this code. After the
requirements of the operating fund have been met, the amounts
required by this subsection shall be remitted by the commissioner
to the state treasury monthly within fifteen days next after the
end of each calendar month and deposited in pro rata amounts into
those two funds.
(c) If the commissioner fails to remit such moneys to the
state treasury within the time specified in accordance with the
provisions of this section,
he the commissioner shall be guilty of a misdemeanor, and, upon conviction thereof, shall be fined $1,000.