COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 8
(By Senators Caruth and Barnes)
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[Originating in the Committee on Government Organization;
reported March 12, 2009.]
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A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §31E-8-813, relating
to requiring directors and members of the boards of directors
of nonprofit corporations which receive funding from the State
of West Virginia or the federal government to attend training;
training provided by Auditor; and reimbursement for reasonable
expenses.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §31E-8-813, to read as
follows:
ARTICLE 8. DIRECTORS AND OFFICERS.
PART 1. BOARD OF DIRECTORS.
§31E-8-813. Required training for directors and board of directors
members.
(a) After July 1, 2009, the director and all members of the board of directors of a nonprofit corporation or company, as
defined in this chapter, that receives funding from the state of
West Virginia or the federal government, or any agencies or
subdivisions thereof, must complete training in the administration,
operation, finances, ethics and fiduciary responsibilities which
are customarily, commonly and reasonably expected of a director and
each member of a board of directors of a nonprofit corporation or
company, which training will be provided by the Auditor or his or
her designee, within the first six months of the appointment or
election of the director or board of directors member to the
position and every five years thereafter.
(b) Prior to July 1, 2010, all directors and all members of
the board of directors of nonprofit corporations or companies that
receive funding from the state of West Virginia or the federal
government, or any agencies or subdivisions thereof, in office on
July 1, 2009, shall complete the required training, required by
subsection (a) of this section.
(c) The Auditor or an organization or person approved by the
Auditor, shall provide the training throughout the state in
locations convenient to the directors and board members, as
determined by the Auditor.
(d) The Auditor and any organization or person approved by the
Auditor, may recover reasonable and customary costs and expenses
for providing the training, but may not profit therefrom. The
costs and expenses may be paid by the director or board member, or
the nonprofit corporation or company may pay or reimburse the director or board member.
(e) The directors and members of the board of directors of
nonprofit corporations or companies that provide their own training
programs that meet the requirements of this section are exempt from
the training requirements of this section. A nonprofit corporation
or company that provides its own training shall provide
documentation of the training to the Auditor or other agency
providing funding, upon request.