ENROLLED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 3009
(By Senators Tomblin, Mr. President, and Sprouse,
By Request of the Executive)
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[Passed May 17, 2005; to take effect July 1, 2005.]
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AN ACT 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That §5A-10-1, §5A-10-2 and §5A-10-3 of the Code of West Virginia, 1931, as amended, be repealed; that §5-10D-1 of said code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 Deputy Sheriff
Death, Disability and Retirement Fund 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 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 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 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 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 Deputy Sheriff
Death, Disability and Retirement Fund 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 rules
for legislative approval, in accordance with article three, chapter
twenty-nine-a of this code, necessary to effectuate its powers,
duties and responsibilities:
Provided, That the Board may adopt any
or all of the rules, previously promulgated, of a retirement system
which it administers.
(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.
(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 is a
trustee for all public retirement plans, except with regard to the
investment of funds:
Provided, That the Consolidated Public
Retirement Board 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.
(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 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 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 programs
provided 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) 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.
(c) The Director is responsible for the administration and
management of the Public Employees Insurance Agency as provided 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 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 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 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 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 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 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, 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. 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
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) 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 consisting of the Secretary of the Department of Administration or his or her designee who 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 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 Secretary of the Department of Administration or his
or her designee 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 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.