Senate Bill No. 3009
(By Senators Tomblin, Mr. President, and Sprouse,
By Request of the Executive)
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[Introduced May 16, 2005; referred to the Committee on Government
Organization.]
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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; providing that the Secretary of
the Department of Administration serves as a member of the
Consolidated Public Retirement Board; providing that the
Governor shall appoint the Director of the Public Employees
Insurance Agency; providing that the Secretary of the
Department of Administration serves as a member and as the
Chair of the Public Employees Insurance Agency Finance Board;
providing that the Division of Personnel is continued within
the Department of Administration; and providing that the
Secretary of the Department of Administration serves as an ex officio member and Chair of the State Personnel Board.
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Virginia, 1931, as amended, be repealed; that §5-10D-1 of said code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 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. The Consolidated Public Retirement
Board may propose for promulgation all rules 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) 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) 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) 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
to sit on the Board. 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. He or she
serves at the will and pleasure of the Governor, unless earlier
removed from office for cause as provided by law. 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 five. 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 for the Director, his
or her personal secretary, the deputy director and the chief
financial officer 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 may 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 may 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 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 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 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 has
authority to establish additional sections as may be determined
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 of the commissioner of the employee and
insurance services division or his or her designee Secretary of the
Department of Administration, who shall serve serves as an ex
officio 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 may not be reimbursed by the
state.
(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 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.
NOTE: The purpose of this bill is to eliminate the Employee
and Insurance Services Division of the Department of
Administration.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.