H. B. 4746
(By Delegates Michael, R. M. Thompson, H. White,
Hall, Campbell and Leach)
(Originating in the Committee on Finance)
[March 1, 2004]
A BILL to amend and reenact §12-1-2, §12-1-7, §12-1-12 and §12-1-13
of the code of West Virginia, 1931, as amended; to amend and
reenact §12-2-1 of said code; to amend and reenact §12-3-1 and
§12-3-1a of said code; to amend and reenact §12-3A-3, §12-3A-4
and §12-3A-6 of said code; to amend and reenact §12-5-1 and
§12-5-5 of said code; to amend and reenact §12-6-5 and §12-6-8
of said code; and to amend and reenact §18-30-4 of said code,
all relating generally to the state treasurer's office;
designating financial institutions as depositories for state
funds; adding state and federal savings and loan associations
as candidates for depository banks; defining spending unit for
the purposes of chapter twelve of the code; allowing only the
treasurer to enter into contracts for banking goods and
services, except for the auditor obtaining the purchasing
card; requiring financial institutions outside the state with
state funds to meet the same collateral requirements for other
depositories; clarifying that the treasurer may pay for banking goods and services by maintaining a compensating
balance in an account other than only accounts that do not
earn interest; adding electronic funds transfers to the
methods the state uses to receive moneys; amending procedures
for stale dated checks and requiring the treasurer to search
for the payee; requiring spending units which have payments in
which the checks have become stale to inform the treasurer's
office when the stale dated checks contain federal funds, the
amount of the federal funds and which account should receive
the funds; specifying legal effect of documents and electronic
signatures; adding the treasurer as additional administrator
of the West Virginia check card; allowing the state treasurer
to authorize spending units to assess and collect fees for
electronic commerce receipts; requiring the state treasurer to
issue legislative rules to authorize spending units to assess
and collect fees for electronic commerce receipts; adding cash
to the definition of securities; creating fund in treasury to
allow for the deposit of cash into safekeeping and allowing
the treasurer to invest the money and to prescribe forms and
procedures for processing the moneys; amending provisions
related to investment of funds of political subdivisions;
requiring treasurer to contract with political subdivisions;
changing the qualifications for certain members of the West
Virginia college prepaid tuition and savings program and
changing the appointment process of two members of the West
Virginia college prepaid tuition and savings program.
Be it enacted by the Legislature of West Virginia:
That §12-1-2, §12-1-7, §12-1-12 and §12-1-13 of the code of
West Virginia, 1931, as amended, be amended and reenacted; that
§12-2-1 of said code be amended and reenacted; that §12-3-1 and
§12-3-1a of said code be amended and reenacted; that §12-3A-3,
§12-3A-4 and §12-3A-6 of said code be amended and reenacted; that
§12-5-1 and §12-5-5 of said code be amended and reenacted; that
§12-6-5 and §12-6-8 of said code be amended and reenacted; and that
§18-30-4 of said code be amended and reenacted, all to read as
follows:
CHAPTER 12. PUBLIC MONEYS AND SECURITIES.
ARTICLE 1. STATE DEPOSITORIES.
§12-1-2. Depositories for demand deposits; categories of demand
deposits; competitive bidding for disbursement
accounts; maintenance of deposits by state treasurer;
definition of spending unit.
The state treasurer shall designate the state and national
banks
and the state and federal savings and loan associations in
this state
which shall serve meeting the requirements of this
chapter as depositories for all state funds placed in demand
deposits.
Any such state or national bank shall, upon request to
the treasurer, be designated as a state depository for such
deposits, if such bank meets the requirements set forth in this
chapter.
Demand deposit accounts shall consist of receipt and disbursement
accounts. Receipt accounts
shall be those are
accounts in which are deposited moneys belonging to or due the
state of West Virginia or any official, department, board,
commission or agency thereof.
Disbursement accounts
shall be those are accounts from which
are paid moneys due from the state of West Virginia or any
official, department, board, commission, political subdivision or
agency thereof to any political subdivision, person, firm or
corporation, except moneys paid from investment accounts.
Investment accounts
shall be those are accounts established by
the West Virginia investment management board or the state
treasurer for the buying and selling of securities for investment
for the state of West Virginia purposes.
The state treasurer shall promulgate rules, in accordance with
the provisions of article three, chapter twenty-nine-a of this
code, concerning depositories for receipt accounts prescribing the
selection criteria, procedures, compensation and such other
contractual terms as it considers to be in the best interests of
the state giving due consideration to: (1) The activity of the
various accounts maintained therein; (2) the reasonable value of
the banking services rendered or to be rendered the state by such
depositories; and (3) the value and importance of such deposits to
the economy of the communities and the various areas of the state
affected thereby.
The state treasurer shall select depositories for disbursement
accounts through competitive bidding by eligible banks in this state.
If none of the eligible banks in this state are able to
provide the needed services, then the treasurer may include
eligible banks outside this state in the competitive bidding
process. The treasurer shall promulgate rules in accordance with
the provisions of article three, chapter twenty-nine-a of this
code, prescribing the procedures and criteria for the bidding and
selection. The treasurer shall, in the invitations for bids,
specify the approximate amounts of deposits, the duration of
contracts to be awarded and such other contractual terms as
it
considers to be in the best interests of the state the treasurer
considers to be in the best interests of the state, consistent with
obtaining the most efficient service at the lowest cost.
The amount of money needed for current operation purposes of
the state government, as determined by the state treasurer, shall
be maintained at all times in the state treasury, in cash, in short
term investments not to exceed five days, or in disbursement
accounts with
banks financial institutions designated as
depositories in accordance with the provisions of this section. No
state officer or employee shall make or cause to be made any
deposits of state funds in banks not so designated.
Only banks and
state and federal savings and loan associations designated by the
treasurer as depositories may accept deposits of state funds.
As used in this chapter, "spending unit" means a department,
agency, board, commission or institution of state government for
which an appropriation is requested, or to which an appropriation
is made by the Legislature.
§12-1-7. Rules; banking contracts and agreements; depositors;
agreements.
In addition to rules specially authorized in this article, the
West Virginia investment management board and
the state treasurer
are generally authorized to promulgate any rules necessary to
protect the interests of the state, its depositories and taxpayers.
All rules promulgated
shall be are subject to the provisions of
article three, chapter twenty-nine-a of this code. Any rules
previously established by the board of public works, the board of
investments,
the investment management board or the state treasurer
pursuant to this article shall remain in effect until amended,
superseded or rescinded.
Only the treasurer may enter into contracts or agreements with
financial institutions for banking goods or services required by
spending units. A state spending unit requiring banking goods or
services shall submit a request for the goods or services to the
treasurer. If the treasurer enters into a contract or agreement
for the required goods or services, spending units using the
contract or agreement shall pay either the vendor or the treasurer
for the goods or services used.
The treasurer is also authorized to enter into any depositors'
agreements for the purpose of reorganizing or rehabilitating any
depository in which state funds are deposited, and for the purpose
of transferring the assets, in whole or in part, of any depository
to any other lawful depository when, in the judgment of the
treasurer, the interests of the state
will be are promoted thereby, and upon condition that no right of the state to preferred payment
be is waived.
§12-1-12. Investing funds in treasury; depositories outside the
state.
When the funds in the treasury exceed the amount needed for
current operational purposes, as determined by the treasurer, the
treasurer shall make all of such excess available for investment by
the investment management board which shall invest the excess for
the benefit of the general revenue fund:
Provided, That the state
treasurer, after reviewing the cash flow needs of the state, may
withhold and invest amounts not to exceed one hundred twenty-five
million dollars of the operating funds needed to meet current
operational purposes. Investments made by the state treasurer
under this section shall be made in short term investments not to
exceed five days. Operating funds means the consolidated fund
established in section eight, article six of this chapter,
including all cash and investments of the fund.
Spending units with authority to retain interest or earnings
on a fund or account may submit requests to the treasurer to
transfer moneys to a specific investment pool of the investment
management board and retain any interest or earnings on the money
invested. The general revenue fund shall receive all interest or
other earnings on money invested that are not designated for a
specific fund or account.
Whenever the funds in the treasury exceed the amount for which
depositories within the state have qualified, or the depositories within the state which have qualified are unwilling to receive
larger deposits
, the treasurer may designate depositories outside
the state, disbursement accounts being bid for in the same manner
as required by depositories within the state, and when
such
depositories outside the state have qualified by giving the bond
prescribed in section four of this article, the state treasurer
shall deposit funds
therein in like in the same manner as funds are
deposited in depositories within the state under this article.
The state treasurer may transfer funds to
banks financial
institutions outside the state to meet obligations to paying agents
outside the state
and any such transfer if the financial
institution must meet meets the same
bond collateral requirements
as set forth in this article.
§12-1-13. Payment of banking services and litigation costs for
prior investment losses.
(a) The treasurer is authorized to pay for banking services,
and
goods and services ancillary thereto, by either a compensating
balance in
a noninterest-bearing an account maintained at the
financial institution providing the services or with a state
warrant as described in section one, article
five three of this
chapter.
(b) The investment management board is authorized to pay for
the investigation and pursuit of claims against third parties for
the investment losses incurred during the period beginning on the
first day of August, one thousand nine hundred eighty-four, and
ending on the thirty-first day of August, one thousand nine hundred eighty-nine. The payment may be in the form of a state warrant.
(c) If payment is made by a state warrant, the investment
management board, at the request of the treasurer, is authorized to
establish within the consolidated fund an investment pool which
will generate sufficient income to pay for all banking services
provided to the state and to pay for the investigation and pursuit
of the prior investment loss claims. All income earned by the
investment pool shall be paid into a special account of the
treasurer
to be known as the banking services account
and shall be
used solely for the purpose of paying to pay for all banking
services and
goods and services ancillary to the banking services
provided to the state, for the investigation and pursuit of the
prior investment loss claims,
amortize and for amortization of the
balance in the investment imbalance fund.
ARTICLE 2. PAYMENT AND DEPOSIT OF TAXES AND OTHER AMOUNTS DUE THE
STATE OR ANY POLITICAL SUBDIVISION
.
§12-2-1. How and to whom taxes and other amounts due the state or
any political subdivision, official, department,
board, commission or other collecting agency thereof
may be paid.
All persons, firms and corporations shall promptly pay all
taxes and other amounts due from them to the state, or to any
political subdivision, official, department, board, commission or
other collecting agency thereof authorized by law to collect the
taxes and other amounts due by any authorized commercially acceptable means, in money, United States currency or by check,
bank draft, certified check, cashier's check, post office money
order,
or express money order
or electronic funds transfer payable
and delivered to the official, department, board, commission or
collecting agency thereof authorized by law to collect the taxes
and other amounts due and having the account upon which the taxes
or amounts due are chargeable against the payer of the taxes or
amounts due. The duly elected or appointed officers of the state
and of its political subdivisions, departments, boards, commissions
and collecting agencies having the account on which the taxes or
other amounts due are chargeable against the payer of the taxes or
other amounts due and authorized by law to collect the taxes or
other amounts due, and their respective agents, deputies,
assistants and employees shall in no case be the agent of the payer
in and about the collection of the taxes or other amounts, but
shall at all times and under all circumstances be the agent of the
state, its political subdivision, official, department, board,
commission or collecting agency having the account on which the
taxes or amounts are chargeable against the payer of the taxes or
other amounts due and authorized by law to collect the same.
ARTICLE 3. APPROPRIATIONS, EXPENDITURES AND DEDUCTIONS.
§12-3-1. Manner of payment from treasury; form of checks.
(a) Every person claiming to receive money from the treasury
of the state shall apply to the auditor for a warrant for same.
The auditor shall thereupon examine the claim, and the vouchers,
certificates and evidence, if any, offered in support thereof, and for so much thereof as he or she finds to be justly due from the
state, if payment thereof is authorized by law, and if there is an
appropriation not exhausted or expired out of which it is properly
payable, the auditor shall issue his or her warrant on the
treasurer, specifying to whom and on what account the money
mentioned therein is to be paid, and to what appropriation it is to
be charged. The auditor shall present to the treasurer daily
reports on the number of warrants issued, the amounts of the
warrants and the dates on the warrants for the purpose of
effectuating the investment
policy policies of the
state treasurer
and the investment management board. On the presentation of the
warrant to the treasurer, the treasurer shall ascertain whether
there are sufficient funds in the treasury to pay that warrant, and
if he or she finds it to be so, he or she shall in that case, but
not otherwise, endorse his or her check upon the warrant, directed
to some depository, which check shall be payable to the order of
the person who is to receive the money therein specified.
(b) If
the a check is not presented for payment within six
months after it is drawn, it
shall then be is the duty of the
treasurer to credit it to the depository on which it was drawn, to
credit the
unclaimed property fund pursuant to the provisions of
article eight, chapter thirty-six of this code "Treasurer's Stale
Check Fund," which is hereby created in the state treasury, and
immediately notify the auditor to make corresponding entries on the
auditor's books.
If the state treasurer determines any funds
deposited in the stale check account are federal funds, the state treasurer shall notify the spending unit authorizing the payment.
Within six months following issuance of the notice, the spending
unit shall inform the state treasurer of the amount of federal
funds included in the check, the account from which the federal
funds were disbursed, and the current fiscal year account to which
the federal funds are to be transferred. After receiving the
information, the state treasurer shall transfer the amount of
federal funds specified as a reimbursement to the current fiscal
year account specified to receive federal funds by the spending
unit. For a period of up to six months, the state treasurer shall
endeavor to pay the money in the stale check account to the payee.
The treasurer shall credit the money that has been in the stale
check account for six months, or for a shorter period as determined
by the treasurer, to the unclaimed property fund pursuant to the
provisions of article eight, chapter thirty-six of this code, and
shall immediately notify the auditor to make corresponding entries
on the auditor's books.
(c) No state depository may pay a check unless it is presented
within six months after it is drawn and every check shall bear upon
its face the words "Void, unless presented for payment within six
months."
(d) Any information or records maintained by the treasurer
concerning any check
which has not been not presented for payment
within six months of the date of issuance
may only be disclosed is
confidential and exempt from disclosure under the provisions of
article one, chapter twenty-nine-b of this code, and is disclosable only to the state
agency specified on spending unit authorizing the
check, or to the payee, his or her personal representative, next of
kin or attorney-at-law.
and is otherwise confidential and exempt
from disclosure under the provisions of article one, chapter
twenty-nine-b of this code
(e) All claims required by law to be allowed by any court, and
payable out of the state treasury, shall have the seal of the court
allowing or authorizing the payment of the claim affixed by the
clerk of the court to his or her certificate of its allowance. No
claim may be audited and paid by the auditor unless the seal of the
court is thereto attached as aforesaid. No tax or fee may be
charged by the clerk for affixing his or her seal to the
certificate, referred to in this section. The treasurer shall
propose rules in accordance with the provisions of article three,
chapter twenty-nine-a of this code governing the procedure for such
payments from the treasury.
§12-3-1a. Payment by deposit in bank account.
The auditor may issue his warrant on the treasurer to pay any
person claiming to receive money from the treasury by deposit to
the person's account in any bank or other financial institution by
electronic funds transfer, if the person furnishes authorization of
the method of payment. The auditor shall prescribe the form of the
authorization. If the authorization is in written form, it shall
be sent to the auditor for review and approval and then forwarded
in electronic form to the treasurer. If the authorization is in
electronic form, it shall be sent to both the auditor and the treasurer. The auditor must review and approve the authorization.
This section
shall may not be construed to require the auditor to
utilize the method of payment authorized by this section. An
authorization furnished pursuant to this section may be revoked by
written notice furnished to the auditor and then forwarded by the
auditor in electronic form to the treasurer or by electronic notice
furnished to both the auditor and the treasurer. Upon execution of
the authorization and its receipt by the office of the auditor, the
warrant shall be created in the manner specified on the
authorization and forwarded to the treasurer for further
disposition to the designated bank or other financial institution
specified on the electronic warrant:
Provided, That after the
first day of July, two thousand two, the state auditor shall cease
issuing paper warrants except for income tax refunds. After that
date all warrants except for income tax refunds, shall be issued by
electronic funds transfer:
Provided, however, That the auditor, in
his or her discretion, may issue paper warrants on an emergency
basis.
Provided further, That the treasurer and the auditor may
contract with any bank or financial institution for the processing
of electronic authorizations
ARTICLE 3A. FINANCIAL ELECTRONIC COMMERCE.
§12-3A-3. Financial electronic commerce.
The state auditor and the
state treasurer shall implement
electronic commerce capabilities for each of their offices to
facilitate the performance of their duties under this code. The state auditor
and the shall competitively bid the selection of
vendors for the payment card program, the state treasurer shall
competitively bid the selection of vendors needed to provide the
necessary banking, investment and related
goods and services,
for
their offices and the provisions of article one-b, chapter five,
and articles three and seven, chapter five-a of this code shall not
apply, unless requested by the state auditor or state treasurer.
A record,
or an authentication,
a document or a signature
issued or used by the auditor,
or the treasurer
shall be considered
an original and may not be denied legal effect
solely on the ground
that it is in electronic form.
The head of each spending unit is responsible for adopting and
implementing security procedures to ensure adequate integrity,
security, confidentiality, and auditability of the business
transactions of his or her spending unit when utilizing electronic
commerce.
§12-3A-4. Payment by the West Virginia check card.
The state auditor
and the state treasurer may establish a
state debit card known as the "West Virginia Check Card" for
recipients of employee payroll or of
retirement, benefits or
entitlement programs
processed by the auditor who are considered
unbanked and who do not possess a federally insured depository
institution account. The state auditor
and the state treasurer
shall use every reasonable effort to make a federally insured
depository account available to a recipient, and to encourage all
recipients to obtain a federally insured depository account. Prior to issuing the West Virginia check card, the state auditor and
the
state treasurer shall first make a determination that a recipient
has shown good cause that an alternative method to direct deposit
is necessary. The state auditor and the state treasurer shall
jointly issue a request for proposals in accordance with section
three of this article to aid
the auditor in the administration of
the program and
to aid the treasurer in the establishment of state
owned bank accounts and accommodate accessible locations for use of
the West Virginia check card. In carrying out the purposes of this
article, the state auditor and state treasurer shall not compete
with banks or other federally insured financial institutions, or
for profit.
§12-3A-6. Receipting of electronic commerce purchases.
(a) The
state treasurer may establish a system for acceptance
of credit card and other payment methods for electronic commerce
purchases from spending units.
Notwithstanding any other provision
of this code to the contrary, each spending unit utilizing WEB
commerce, electronic commerce or other method that offers products
or services for sale shall utilize the
state treasurer's system for
acceptance of payments.
(b) To facilitate electronic commerce, the state treasurer
may charge a spending unit for the banking and other expenses
incurred by the treasurer on behalf of the spending unit and for
any work performed, including, without limitation, assisting in the
development of a website and utilization of the treasurer's payment
gateway. A special revenue account, entitled the "Treasurer's Financial Electronic Commerce Fund," is created in the state
treasury to receive the amounts charged by the treasurer. The
treasurer may expend the funds received in the Treasurer's
Financial Electronic Commerce Fund only for the purposes of this
article and for other purposes as determined by the Legislature.
(c) The state treasurer may authorize a spending unit to
assess and collect a fee to recover or pay the cost of accepting
bank, charge, check, credit or debit cards from amounts collected.
The state treasurer shall propose legislative rules for
promulgation in accordance with the provisions of article three of
chapter twenty-nine-a of this code to establish the criteria and
procedures involved in granting the authorization and may
promulgate emergency rules in accordance with the provisions of
article three of chapter twenty-nine-a of the code to implement the
provisions of this section prior to authorization of the
legislative rules.
ARTICLE 5. PUBLIC SECURITIES.
§12-5-1. Securities defined.
The term "securities" when used in this article shall include
all bonds, securities, debentures, notes or other evidences of
indebtedness,
and for purposes of this chapter all cash received
with restrictions on expenditures, whether by court order or
otherwise.
§12-5-5. Protection and handling of securities.
(a) The
noncash securities retained in the treasury shall be kept in a vault. The treasurer shall use due diligence in
protecting the securities against loss from any cause. The
treasurer shall designate certain employees to take special care of
the securities. Only the treasurer and the designated employees
may have access to the securities, and at least two of these
persons shall be present whenever the securities are handled in any
manner. The treasurer may contract with one or more banking
institutions in or outside the state for the custody, safekeeping
and management of securities. The contract shall prescribe the
rules for the handling and protection of the securities.
(b) The "Treasurer's Safekeeping Fund" is established in the
state treasury. The treasurer shall deposit moneys received
pursuant to this article in the Treasurer's Safekeeping Fund. The
treasurer is authorized to invest the money in accordance with this
code and the restrictions placed on the money, with earnings
accruing to the moneys in the fund. The treasurer shall prescribe
the forms and procedures for processing the moneys.
ARTICLE 6. WEST VIRGINIA INVESTMENT MANAGEMENT BOARD.
§12-6-5. Powers of the board.
The board may exercise all powers necessary or appropriate to
carry out and effectuate its corporate purposes. The board may:
(1) Adopt and use a common seal and alter it at pleasure;
(2) Sue and be sued;
(3) Enter into contracts and execute and deliver instruments;
(4) Acquire (by purchase, gift or otherwise), hold, use and
dispose of real and personal property, deeds, mortgages and other instruments;
(5) Promulgate and enforce bylaws and rules for the management
and conduct of its affairs;
(6) Notwithstanding any other provision of law, retain and
employ legal, accounting, financial and investment advisors and
consultants;
(7) Acquire (by purchase, gift or otherwise), hold, exchange,
pledge, lend and sell or otherwise dispose of securities and invest
funds in interest earning deposits and in any other lawful
investments;
(8) Maintain accounts with banks, securities dealers and
financial institutions both within and outside this state;
(9) Engage in financial transactions whereby securities are
purchased by the board under an agreement providing for the resale
of the securities to the original seller at a stated price;
(10) Engage in financial transactions whereby securities held
by the board are sold under an agreement providing for the
repurchase of the securities by the board at a stated price;
(11) Consolidate and manage moneys, securities and other
assets of the other funds and accounts of the state and the moneys
of political subdivisions which may be made available to it under
the provisions of this article;
(12)
Enter into agreements with political subdivisions of the
state whereby moneys of the political subdivisions are invested on
their behalf by the board Accept and invest funds transferred to
the board by the state treasurer on behalf of the state and political subdivisions;
(13) Charge and collect administrative fees from political
subdivisions for its services;
(14) Exercise all powers generally granted to and exercised by
the holders of investment securities with respect to management of
the investment securities;
(15) Contract with one or more banking institutions in or
outside the state for the custody, safekeeping and management of
securities held by the board;
(16) Make and, from time to time, amend and repeal bylaws,
regulations and procedures not inconsistent with the provisions of
this article;
(17) Hire its own employees, consultants, managers and
advisors as it considers necessary and fix their compensation and
prescribe their duties;
(18) Develop, implement and maintain its own banking accounts
and investments;
(19) Do all things necessary to implement and operate the
board and carry out the intent of this article;
(20) Require the state auditor and treasurer to transmit state
funds on a daily basis for investment: Provided, That money held
for meeting the daily obligations of state government need not be
transferred;
(21) (20) Upon request of the treasurer, transmit funds for
deposit in the state treasury to meet the daily obligations of
state government;
(22) (21) Establish one or more investment funds for the
purpose of investing the funds for which it is trustee, custodian
or otherwise authorized to invest pursuant to this article.
Interests in each fund shall be designated as units and the board
shall adopt industry standard accounting procedures to determine
each fund's unit value. The securities in each investment fund are
the property of the board and each fund shall be considered an
investment pool or fund and may not be considered a trust nor may
the securities of the various investment funds be considered held
in trust. However, units in an investment fund established by or
sold by the board and the proceeds from the sale or redemption of
any unit may be held by the board in its role as trustee of the
participant plans; and
(23) (22) Notwithstanding any other provision of the code to
the contrary, conduct investment transactions, including purchases,
sales, redemptions and income collections, which shall not be
treated by the auditor as recordable transactions on the state's
accounting system.
§12-6-8. Investment funds established; management thereof.
(a) There is hereby continued a special investment fund
to be
managed by the board and designated as the "consolidated fund."
(b) Each board, commission, department, official or agency
charged with the administration of state funds may
request the
state treasurer to make moneys available to the board for
investment.
(c) Each political subdivision of this state through its treasurer or equivalent financial officer may enter into agreements
with the
board state treasurer for the investment of moneys of the
political subdivision
with the board. Any political subdivision
may enter into an agreement with
any a state
agency spending unit
from which it receives funds to
allow the funds to be transferred
request transfer of the funds to
their its investment account with
the investment management board.
Nothing herein shall preclude
political subdivisions and their departments, boards, commissions
and institutions, including, without limitation, the boards of
trustees of policemen's pension and relief funds, the boards of
trustees of firemen's pension and relief funds and volunteer fire
departments, from investing in equities with the investment
management board.
(d) Moneys held in the various funds and accounts administered
by the board shall be invested as permitted by this article and
subject to the restrictions contained in this article. For the
consolidated fund, the treasurer shall maintain records of the
deposits and withdrawals of each participant and the performance of
the various funds and accounts. The board shall report the
earnings on the various funds under management to the
state
treasurer at the times determined by the
state treasurer. The
board shall also establish rules for the administration of the
various funds and accounts established by this section as it
considers necessary for the administration of the funds and
accounts, including, but not limited to: (1) The specification of
amounts which may be deposited in any fund or account and minimum periods of time for which deposits will be retained; and (2)
creation of reserves for losses:
Provided, That in the event any
moneys made available to the board may not lawfully be combined for
investment or deposited in the consolidated fund established by
this section, the board may create special accounts and may
administer and invest those moneys in accordance with the
restrictions specially applicable to those moneys.
CHAPTER 18. EDUCATION.
ARTICLE 30. WEST VIRGINIA COLLEGE PREPAID TUITION AND SAVINGS
PROGRAM ACT.
§18-30-4. Creation of program; board; members; terms;
compensation; proceedings generally.
(a) The West Virginia college prepaid tuition and savings
program is
hereby created continued. The program consists of a
prepaid tuition plan and a savings plan.
(b) The
board of trustees of the prepaid tuition trust fund
in existence immediately prior to the effective date of this
section shall become the board of the college prepaid tuition and
savings program
is continued and all powers, rights and
responsibilities of the board of trustees of the prepaid tuition
trust fund are
transferred to vested in the board of the college
prepaid tuition and savings program.
With the exception of the
members of the board appointed pursuant to the provisions of
subdivision (3) of subsection (c) of this section, the members of
the board of trustees of the prepaid tuition trust fund shall become the members of the board of the college prepaid tuition and
savings program on the effective date of this section and shall,
for all purposes, serve the same terms that they would have served
had the board of trustees of the prepaid tuition trust fund
continued.
(c) The board consists of nine members and includes the
following:
(1) The secretary of education and the arts, or his or her
designee;
(2) The state treasurer, or his or her designee;
(3) Two representatives of the higher education policy
commission, who may or may not be members of the higher education
policy commission, appointed by the commission who serve as voting
members of the board, one of whom shall represent the interests of
the universities of West Virginia
and the state colleges and one of
whom shall represent the interests of
the state colleges and
community and technical colleges of West Virginia;
The members
appointed pursuant to the provisions of this subdivision shall
assume the positions heretofore held by the representatives of the
university system board of trustees and the state college system
board of directors in existence prior to July 1, 2000;
(4) Five other members, appointed by the governor, with
knowledge, skill and experience in an academic, business or
financial field, to be appointed as follows:
(A)
A Two private
citizen citizens not employed by, or an
officer of, the state or any political subdivision of the state
appointed from one or more nominees of the speaker of the House of
Delegates;
(B)
A private citizen not employed by, or an officer of, the
state or any political subdivision of the state appointed from one
or more nominees of the president of the Senate;
(C) One member representing the interests of private
institutions of higher education located in this state appointed
from one or more nominees of the West Virginia association of
private colleges; and
(D) (C) Two members representing the public.
(d) The public members and the member representing the
interests of private institutions of higher education are appointed
by the governor with the advice and consent of the Senate.
(e) Only state residents are eligible for appointment to the
board.
(f) Members appointed by the governor serve a term of five
years and are eligible for reappointment at the expiration of their
terms. In the event of a vacancy among appointed members, the
governor shall appoint a person representing the same interests to
fill the unexpired term.
Of the initial appointments to the board
of trustees of the prepaid tuition trust fund in existence
immediately prior to the effective date of this section, the
governor shall appoint one member to a one-year term, one member to
a two-year term, one member to a three-year term, one member to a
four-year term, and one member to a five-year term. Thereafter, all
terms are five years.
(g)
Members of the board serve until the later of the
expiration of the term for which the member was appointed or the
appointment of a successor. Members of the board serve without
compensation. The treasurer may pay all expenses, including travel
expenses, actually incurred by board members in the conduct of their
official duties. Expense payments are made from the college prepaid
tuition and savings program administrative account, and are made at
the same rate paid to state employees.
(h) The treasurer may provide support staff and office space
for the board.
(i) The treasurer is the chairman and presiding officer of the
board, and may appoint the employees the board considers advisable
or necessary. A majority of the members of the board constitute a
quorum for the transaction of the business of the board.