ENGROSSED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 3009
(By Senators Tomblin, Mr. President, and Sprouse,
By Request of the Executive)
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[Originating in the Committee on Government Organization;
reported May 16, 2005.]
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A BILL to repeal §5A-10-1, §5A-10-2 and §5A-10-3 of the Code of
West Virginia, 1931, as amended; to amend and reenact §5-10D-1
of said code; to amend and reenact §5-16-3 and §5-16-4 of said
code; to amend and reenact §5A-1-2 of said code; and to amend
and reenact §29-6-5 and §29-6-6 of said code, all relating
generally to the elimination of the Employee and Insurance
Services Division of the Department of Administration and
reassigning certain duties; reinstating the Secretary of the
Department of Administration as a member of the Consolidated
Public Retirement Board, the Public Employees Insurance Agency
Finance Board and the State Personnel Board; providing that
the Governor shall appoint the Director of the Public
Employees Insurance Agency; providing that the Division of
Personnel is continued within the Department of
Administration; clarifying board member compensation and
expense reimbursement; and making technical changes.
Be it enacted by the Legislature of West Virginia:
That §5A-10-1, §5A-10-2 and §5A-10-3 of the Code of West
Virginia, 1931, as amended, be repealed; that §5-10D-1 of said code
be amended and reenacted; that §5-16-3 and §5-16-4 of said code be
amended and reenacted; that §5A-1-2 of said code be amended and
reenacted; and that §29-6-5 and §29-6-6 of said code be amended and
reenacted, all to read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR,
SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD
OF PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS,
OFFICES, PROGRAMS, ETC.
ARTICLE 10D. CONSOLIDATED PUBLIC RETIREMENT BOARD.
§5-10D-1. Consolidated Public Retirement Board continued; members;
vacancies; investment of plan funds.
(a) The Consolidated Public Retirement Board is continued to
administer all public retirement plans in this state. It shall
administer the Public Employees Retirement System established in
article ten of this chapter; the Teachers Retirement System
established in article seven-a, chapter eighteen of this code; the
Teachers' Defined Contribution Retirement System created by article
seven-b of said chapter; the West Virginia State Police Death,
Disability and Retirement Fund created by article two, chapter
fifteen of this code; the West Virginia State Police Retirement
System created by article two-a of said chapter; the Death,
Disability and Retirement Fund for deputy sheriffs created by
article fourteen-d, chapter seven of this code; and the Judges'
Retirement System created under article nine, chapter fifty-one of
this code.
(b) The membership of the Consolidated Public Retirement Board consists of:
(1) The Governor or his or her designee;
(2) The State Treasurer or his or her designee;
(3) The State Auditor or his or her designee;
(4) The commissioner of the employee and insurance services
division of the department of administration
(4) The Secretary of the Department of Administration or his
or her designee;
(5) Four residents of the state, who are not members,
retirants or beneficiaries of any of the public retirement systems,
to be appointed by the Governor, with the advice and consent of the
Senate; and
(6) A member, annuitant or retirant of the Public Employees
Retirement System who is or was a state employee; a member,
annuitant or retirant of the Public Employees Retirement System who
is not or was not a state employee; a member, annuitant or retirant
of the Teachers Retirement System; a member, annuitant or retirant
of the West Virginia State Police Death, Disability and Retirement
Fund; a member, annuitant or retirant of the Deputy Sheriff's
Death, Disability and Retirement Fund; and a member, annuitant or
retirant of the Teachers' Defined Contribution Retirement System,
all to be appointed by the Governor, with the advice and consent of
the Senate.
(c) The appointed members of the Board
shall serve five-year
terms. A member appointed pursuant to subdivision (6), subsection
(b) of this section ceases to be a member of the Board if he or she
ceases to be a member of the represented system. If a vacancy
occurs in the appointed membership, the Governor, within sixty days, shall fill the vacancy by appointment for the unexpired term.
No more than five appointees
shall may be of the same political
party.
(d) The Consolidated Public Retirement Board has all the
powers, duties, responsibilities and liabilities of the Public
Employees Retirement System established pursuant to article ten of
this chapter; the Teachers Retirement System established pursuant
to article seven-a, chapter eighteen of this code; the Teachers'
Defined Contribution System established pursuant to article seven-b
of said chapter; the West Virginia State Police Death, Disability
and Retirement Fund created pursuant to article two, chapter
fifteen of this code;
the West Virginia State Police Retirement
System created by article two-a of said chapter; the Death,
Disability and Retirement Fund for deputy sheriffs created pursuant
to article fourteen-d, chapter seven of this code; and the Judges'
Retirement System created pursuant to article nine, chapter fifty-
one of this code and their appropriate governing boards.
(e) The Consolidated Public Retirement Board may propose
for
promulgation all rules for legislative approval, in accordance with
article three, chapter twenty-nine-a of this code, necessary to
effectuate its powers, duties and responsibilities:
pursuant to
article three, chapter twenty-nine-a of this code: Provided, That
the Board may adopt any or all of the rules, previously
promulgated, of a retirement system which it administers.
(e) (f) The Consolidated Public Retirement Board shall
continue to transfer all funds received for the benefit of the
retirement systems within the consolidated pension plan as defined
in section three-c, article six-b, chapter forty-four of this code, including, but not limited to, all employer and employee
contributions, to the West Virginia Investment Management Board:
Provided, That the employer and employee contributions of the
Teachers' Defined Contribution System, established in section
three, article seven-b, chapter eighteen of this code, and
voluntary deferred compensation funds invested by the West Virginia
Consolidated Public Retirement Board pursuant to section five,
article ten-b of this chapter may not be transferred to the West
Virginia Investment Management Board.
(f) (g) Notwithstanding any provision of this code or any
legislative rule to the contrary, all assets of the public
retirement plans set forth in subsection (a) of this section shall
be held in trust. The Consolidated Public Retirement Board
shall
be is a trustee for all public retirement plans, except with regard
to the investment of funds:
Provided, That the Consolidated Public
Retirement Board
shall be is a trustee with regard to the
investments of the Teachers' Defined Contribution System, the
voluntary deferred compensation funds invested pursuant to section
five, article ten-b of this chapter and any other assets of the
public retirement plans administered by the Consolidated Public
Retirement Board as set forth in subsection (a) of this section for
which no trustee has been expressly designated in this code.
(g) (h) The Board may employ the West Virginia Investment
Management Board to provide investment management consulting
services for the investment of funds in the Teachers' Defined
Contribution System.
ARTICLE 16. WEST VIRGINIA PUBLIC EMPLOYEES INSURANCE ACT.
§5-16-3. Composition of Public Employees Insurance Agency; appointment, qualification, compensation and duties of
Director of Agency; employees; civil service coverage.
(a) The Public Employees Insurance Agency consists of the
Director, the Finance Board, the Advisory Board and any employees
who may be authorized by law. The Director shall be appointed by
the
commissioner of the employee and insurance services division of
the department of administration Governor, with the advice and
consent of the Senate, and serves at the will and pleasure of the
Governor. The Director shall have at least three years' experience
in health or governmental health benefit administration as his or
her primary employment duty prior to appointment as director.
The
director shall be employed pursuant to an employment contract which
may have a multi-year term, not to exceed five years per contract.
Notwithstanding any other provision of this code to the contrary,
the director's salary shall be set by the commissioner of the
employee and insurance services division, with the approval of the
secretary of the department of administration. The current
Director shall continue to be eligible to serve as Director through
the thirtieth day of June, two thousand four. The Director shall
receive actual expenses incurred in the performance of official
business. The Director shall employ any administrative, technical
and clerical employees required for the proper administration of
the
insurance programs provided
for in this article. The Director
shall perform the duties that are required of him or her under the
provisions of this article and is the chief administrative officer
of the Public Employees Insurance Agency. The Director may employ
a deputy director.
(b)
All positions in the Agency, except Except for the Director, his or her personal secretary, the deputy director and
the chief financial officer,
all positions in the agency shall be
included in the classified service of the civil service system
pursuant to article six, chapter twenty-nine of this code.
Any
person required to be included in the classified service by the
provisions of this subsection who was employed in any of the
positions included in this subsection on or after the effective
date of this article shall not be required to take and pass
qualifying or competitive examinations upon or as a condition to
being added to the classified service: Provided, That no person
required to be included in the classified service by the provisions
of this subsection who was employed in any of the positions
included in this subsection as of the effective date of this
section shall be thereafter severed, removed or terminated in his
or her employment prior to his or her entry into the classified
service except for cause as if the person had been in the
classified service when severed, removed or terminated.
(c) The Director is responsible for the administration and
management of the Public Employees Insurance Agency as provided
for
in this article and in connection with his or her responsibility
may make all rules necessary to effectuate the provisions of this
article. Nothing in section four or five of this article limits
the Director's ability to manage on a day-to-day basis the group
insurance plans required or authorized by this article, including,
but not limited to, administrative contracting, studies, analyses
and audits, eligibility determinations, utilization management
provisions and incentives, provider negotiations, provider
contracting and payment, designation of covered and noncovered services, offering of additional coverage options or cost
containment incentives, pursuit of coordination of benefits and
subrogation or any other actions which would serve to implement the
plan or plans designed by the Finance Board. The Director is to
function as a benefits management professional and should avoid
political involvement in managing the affairs of the public
employees insurance agency.
§5-16-4. Public Employees Insurance Agency Finance Board
continued; qualifications, terms and removal of
members; quorum; compensation and expenses;
termination date.
(a) The Public Employees Insurance Agency Finance Board is
continued and consists of the
commissioner of the employee and
insurance services division of the department of administration
Secretary of the Department of Administration or his or her
designee and eight members appointed by the Governor, with the
advice and consent of the Senate, for terms of four years and until
the appointment of their successors. Members may be reappointed
for successive terms. No more than five members, including the
commissioner Secretary of the Department of Administration, may be
of the same political party.
(b) Of the eight members appointed by the Governor, one member
shall represent the interests of education employees, one shall
represent the interests of public employees, one shall represent
the interests of retired employees, one shall represent the
interests of organized labor and four shall be selected from the
public at large. The Governor shall appoint the member
representing the interests of education employees from a list of three names submitted by the largest organization of education
employees in this state. The Governor shall appoint the member
representing the interests of organized labor from a list of three
names submitted by the state's largest organization representing
labor affiliates. The four members appointed from the public shall
each have experience in the financing, development or management of
employee benefit programs. All appointments shall be selected to
represent the different geographical areas within the state and all
members shall be residents of West Virginia. No member may be
removed from office by the Governor except for official misconduct,
incompetence, neglect of duty, neglect of fiduciary duty or other
specific responsibility imposed by this article or gross
immorality.
(c) The
commissioner of the employee and insurance services
division Secretary of the Department of Administration shall serve
as chair of the Finance Board, which shall meet at times and places
specified by the call of the chair or upon the written request to
the chair of at least two members. The Director of the Public
Employees Insurance Agency shall serve as staff to the Board.
Notice of each meeting shall be given in writing to each member by
the Director at least three days in advance of the meeting. Five
members constitute a quorum. The Board shall pay each member the
same compensation and expense reimbursement that is paid to members
of the Legislature for their interim duties, as recommended by the
Citizens Legislative Compensation Commission and authorized by law,
for each day or portion of a day engaged in the discharge of
official duties.
(d) Upon termination of the Board and notwithstanding any provisions in this article to the contrary, the Director is
authorized to assess monthly employee premium contributions and to
change the types and levels of costs to employees only in
accordance with this subsection. Any assessments or changes in
costs imposed pursuant to this subsection shall be implemented by
legislative rule proposed by the Director for promulgation pursuant
to the provisions of article three, chapter twenty-nine-a of this
code.
any Any employee assessments or costs previously authorized
by the Finance board shall then remain in effect until amended by
rule of the Director promulgated pursuant to this subsection.
CHAPTER 5A. DEPARTMENT OF ADMINISTRATION.
ARTICLE 1. DEPARTMENT OF ADMINISTRATION.
§5A-1-2. Department of Administration and Office of Secretary;
Secretary; Divisions; Directors.
(a) The Department of Administration and the Office of
Secretary of Administration are continued in the executive branch
of state government. The Secretary
shall be is the Chief Executive
Officer of the Department and shall be appointed by the Governor,
by and with the advice and consent of the Senate, for a term not
exceeding the term of the Governor.
(b) The Department of Administration may receive federal
funds.
(c) The Secretary
shall serve serves at the will and pleasure
of the Governor. The annual compensation of the Secretary shall be
as specified in section two-a, article seven, chapter six of this
code.
(d) There shall be in the Department of Administration a
Finance Division, a General Services Division, an Information Services and Communications Division,
an employee and insurance
services division Division of Personnel and a Purchasing Division.
Each division shall be headed by a director who may also head any
and all sections within that division and who shall be appointed by
the Secretary.
except that the commissioner of the employee and
insurance services division shall be appointed by the governor with
the advice and consent of the Senate as provided in article ten of
this chapter In addition to the divisions enumerated in this
subsection, there shall also be in the Department of Administration
those agencies, boards, commissions and councils specified in
section one, article two, chapter five-f of this code.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 6. CIVIL SERVICE SYSTEM.
§29-6-5. Division of Personnel continued; sections.
(a) The Division of Personnel is continued within the
employee
and insurance services division of the Department of
Administration.
(b) The Division of Personnel shall perform the following
functions:
(1) Applicant services;
(2) Classification and compensation;
(3) Management development and training;
(4) Program evaluation and payroll;
(5) Employee services;
(6) Employee relations; and
(7) Administrative and staff services.
(c)
The commissioner of the employee and insurance services
division shall establish any sections of the division that are necessary to carry out the functions of the division and the
purposes of this article. Each section shall be under the control
of a section chief to be appointed by the Director who shall be
qualified by reason of exceptional training and experience in the
field of activities of the respective section.
The Director may
establish additional sections necessary to carry out the purposes
of this article.
§29-6-6. State Personnel Board continued; members; term; quorum;
vacancies; powers and duties.
(a) There is continued within the Division a State Personnel
Board
which consists consisting of the
commissioner of the employee
and insurance services division or his or her designee Secretary of
the Department of Administration or his or her designee who
shall
serve serves as an ex officio
nonvoting member and five members
appointed by the Governor, with the advice and consent of the
Senate, for terms of four years and until the appointment of their
successors. No more than four members may be of the same political
party. Four members of the Board constitute a quorum.
(b) A member of the Board may not be removed from office
except for official misconduct, incompetence, neglect of duty,
gross immorality or malfeasance and then only in the manner
prescribed in article six, chapter six of this code for the removal
by the Governor of state elected officers.
(c) Citizen members of the Board shall each be
paid one
hundred dollars for each day devoted to the work of the Board.
Each member shall be reimbursed for all reasonable and necessary
expenses actually incurred in the performance of his or her duties,
except that in the event the expenses are paid, or are to be paid, by a third party, the members shall not be reimbursed by the state.
compensated for attending official meetings or engaging in official
duties not to exceed the amount paid to members of the Legislature
for their interim duties, as recommended by the Citizens
Legislative Compensation Commission as authorized by law, and may
be reimbursed actual and necessary expenses incurred for each day
or portion thereof engaged in the discharge of official duties in
a manner consistent with guidelines of the Travel Management Office
of the Department of Administration.
(d) The
commissioner of the employee and insurance services
division of Secretary of the Department of Administration or his or
her designee
shall serve serves as Chair of the Board. The Board
shall meet at the time and place specified by the call of the
chair. At least one meeting shall be held in each month. All
meetings shall be open to the public. Notice of each meeting shall
be given in writing to each member by the Director at least three
days in advance of the meeting period.
(e) In addition to other powers and duties invested in it by
this article or by any other law, the Board shall:
(1) Propose rules for
promulgation legislative approval, in
accordance with chapter twenty-nine-a of this code, to implement
the provisions of this article;
(2) Interpret the application of this article to any public
body or entity; and
(3) Authorize and conduct any studies, inquiries,
investigations or hearings in the operation of this article it
considers necessary.
(f) The Director or the Board may subpoena and require the attendance of witnesses in the production of evidence or documents
relevant to any proceeding under this article.