Introduced Version
Senate Bill 576 History
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Senate Bill No. 576
(By Senators Jenkins, McCabe, Kessler (Mr. President), Plymale,
Chafin and D. Hall )
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[Introduced March 20, 2013; referred to the Committee on
Pensions; and then to the Committee on Finance .]
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A BILL to amend and reenact §33-3-14d of the Code of West Virginia,
1931, as amended; and to amend and reenact §36-8-13 of said
code, all relating to providing for
the transfer of moneys
from the Unclaimed Property Trust Fund to the Municipal
Pensions and Protection Fund for the purpose of satisfying
certain amounts due to policemen's and firemen's pension and
relief funds; providing that
the Municipal Pension Oversight
Board or other entity may not seek to recover from a relief or
pension fund, the Teachers Retirement System or the state any
overpayments received from the Municipal Pensions and
Protection Fund; and that the overpayments are not subject to
recovery, offset or litigation.
Be it enacted by the Legislature of West Virginia:
That §33-3-14d of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that §36-8-13 of said code be amended
and reenacted, all to read as follows:
CHAPTER 33. INSURANCE
ARTICLE 3. LICENSING, FEES, AND TAXATION OF INSURANCE.
§33-3-14d. Additional fire and casualty insurance premium tax;
allocation of proceeds; effective date.
(a)(1) For the purpose of providing additional revenue for
municipal policemen's and firemen's pension and relief funds and
the Teachers Retirement System Reserve Fund and for volunteer and
part-volunteer fire companies and departments, there is hereby
levied and imposed an additional premium tax equal to one percent
of taxable premiums for fire insurance and casualty insurance
policies. For purposes of this section, casualty insurance does not
include insurance on the life of a debtor pursuant to or in
connection with a specific loan or other credit transaction or
insurance on a debtor to provide indemnity for payments becoming
due on a specific loan or other credit transaction while the debtor
is disabled as defined in the policy.
(2) All moneys collected from this additional tax shall be
received by the commissioner and paid by him or her into a special
account in the State Treasury, designated the Municipal Pensions
and Protection Fund: Provided, That on or after January 1, 2010,
the commissioner shall pay ten percent of the amount collected to the Teachers Retirement System Reserve Fund created in section
eighteen, article seven-a, chapter eighteen of this code, twenty-
five percent of the amount collected to the Fire Protection Fund
created in section thirty-three of this article for allocation by
the Treasurer to volunteer and part-volunteer fire companies and
departments and sixty-five percent of the amount collected to the
Municipal Pensions and Protection Fund: Provided, however, That
upon notification by the Municipal Pensions Oversight Board
pursuant to the provisions of section eighteen-b, article twenty-
two, chapter eight of this code, on or after January 1, 2010, or as
soon thereafter as the Municipal Pensions Oversight Board is
prepared to receive the funds, sixty-five percent of the amount
collected by the commissioner shall be deposited in the Municipal
Pensions Security Fund created in section eighteen-b, article
twenty-two, chapter eight of this code. The net proceeds of this
tax after appropriation thereof by the Legislature is distributed
in accordance with the provisions of this section, except for
distribution from proceeds pursuant to subsection (d), section
eighteen-a, article twenty-two, chapter eight of this code.
(b) (1) Before August 1 of each year, the Treasurer of each
municipality in which a municipal policemen's or firemen's pension
and relief fund is established shall report to the State Treasurer
the average monthly number of members who worked at least one
hundred hours per month and the average monthly number of retired members of municipal policemen's or firemen's pension and relief
fund or the Municipal Police Officers and Firefighters Retirement
System during the preceding fiscal year: Provided, That beginning
in the year 2010 and continuing thereafter, the report shall be
made to the oversight board created in section eighteen-a, article
twenty-two, chapter eight of this code. These reports received by
the oversight board shall be provided annually to the State
Treasurer by September 1.
(2) Before September 1 of each calendar year, the State
Treasurer, or the Municipal Pensions Oversight Board, once in
operation, shall allocate and authorize for distribution the
revenues in the Municipal Pensions and Protection Fund which were
collected during the preceding calendar year for the purposes set
forth in this section. Before September 1 of each calendar year and
after the Municipal Pensions Oversight Board has notified the
Treasurer and commissioner pursuant to section eighteen-b, article
twenty-two, chapter eight of this code, the Municipal Pensions
Oversight Board shall allocate and authorize for distribution the
revenues in the Municipal Pensions Security Fund which were
collected during the preceding calendar year for the purposes set
forth in this section. In any year the actuarial report required by
section twenty, article twenty-two, chapter eight of this code
indicates no actuarial deficiency in the Municipal Policemen's or
Firemen's Pension and Relief Fund, no revenues may be allocated from the Municipal Pensions and Protection Fund or the Municipal
Pensions Security Fund to that fund. The revenues from the
Municipal Pensions and Protection Fund shall then be allocated to
all other pension and relief funds which have an actuarial
deficiency.
(3) The moneys, and the interest earned thereon, in the
Municipal Pensions and Protection Fund allocated to volunteer and
part-volunteer fire companies and departments shall be allocated
and distributed quarterly to the volunteer fire companies and
departments. Before each distribution date, the State Fire Marshal
shall report to the State Treasurer the names and addresses of all
volunteer and part-volunteer fire companies and departments within
the state which meet the eligibility requirements established in
section eight-a, article fifteen, chapter eight of this code.
(c) (1) Each municipal pension and relief fund shall have
allocated and authorized for distribution a pro rata share of the
revenues allocated to municipal policemen's and firemen's pension
and relief Funds based on the corresponding municipality's average
monthly number of police officers and firefighters who worked at
least one hundred hours per month during the preceding fiscal year.
On and after July 1, 1997, from the growth in any moneys collected
pursuant to the tax imposed by this section and interest thereon
there shall be allocated and authorized for distribution to each
municipal pension and relief fund, a pro rata share of the revenues allocated to municipal policemen's and firemen's pension and relief
funds based on the corresponding municipality's average number of
police officers and firefighters who worked at least one hundred
hours per month and average monthly number of retired police
officers and firefighters. For the purposes of this subsection, the
growth in moneys collected from the tax collected pursuant to this
section is determined by subtracting the amount of the tax
collected during the fiscal year ending June 30, 1996, from the tax
collected during the fiscal year for which the allocation is being
made and interest thereon. All moneys received by municipal pension
and relief funds under this section may be expended only for those
purposes described in sections sixteen through twenty-eight,
inclusive, article twenty-two, chapter eight of this code.
(2) Each volunteer fire company or department shall receive an
equal share of the revenues allocated for volunteer and part-
volunteer fire companies and departments.
(3) In addition to the share allocated and distributed in
accordance with subdivision (1) of this subsection, each municipal
fire department composed of full-time paid members and volunteers
and part-volunteer fire companies and departments shall receive a
share equal to the share distributed to volunteer fire companies
under subdivision (2) of this subsection reduced by an amount equal
to the share multiplied by the ratio of the number of full-time
paid fire department members who are also members of a municipal firemen's pension and relief fund or the Municipal Police Officers
and Firefighters Retirement System to the total number of members
of the fire department.
(d) The allocation and distribution of revenues provided for
in this section are subject to the provisions of section twenty,
article twenty-two, and sections eight-a and eight-b, article
fifteen, chapter eight of this code.
(e) Based on the findings of an audit by the Treasurer, the
Legislature hereby finds and declares that during the period from
1982 through April 27, 2012, allocations from the Municipal
Pensions and Protection Fund were miscalculated and errors were
made in amounts transferred, resulting in overpayments and
underpayments to the relief and pension funds and to the Teachers
Retirement System, and that the relief and pension funds and the
Teachers Retirement System were not at fault for any of the
overpayments and underpayments. The Legislature hereby further
finds and declares that any attempt by the Municipal Pension
Oversight Board or other entity to recover any of the overpayments
would be unjust and create economic hardship for the entities that
received overpayments. No entity, including, without limitation,
the Municipal Pension Oversight Board, may seek to recover from a
relief or pension fund, the Teachers Retirement System or the state
any overpayments received from the Municipal Pensions and
Protection Fund
and the overpayments are not subject to recovery, offset or litigation. Pursuant to the audit by the Treasurer, the
amount of $3,631,846.55 is determined owed to specific relief and
pension funds. The Treasurer is hereby authorized to transfer the
amount of $3,631,846.55 from the Unclaimed Property Trust Fund to
the Municipal Pensions and Protection Fund, which is hereby
reopened for the sole purpose of the transfer and remittances
pursuant to this subsection (e), and to use the amount transferred
to remit the amounts due to the pension and relief funds. The
payment of the $3,631,846.55 to the pension and relief funds is
complete satisfaction of any amounts due, and n
o entity, including,
without limitation, the Municipal Pension Oversight Board and any
pension or relief fund, may seek to recover any further amounts.
CHAPTER 36. ESTATES AND PROPERTY.
ARTICLE 8. UNIFORM UNCLAIMED PROPERTY ACT.
§36-8-13. Deposit of funds.
(a) The administrator shall record the name and last known
address of each person appearing from the holders reports to be
entitled to the property and the name and last known address of
each insured person or annuitant and beneficiary and with respect
to each policy or annuity listed in the report of an insurance
company, its number, the name of the company and the amount due.
(b) The Unclaimed Property Fund is continued. The
administrator shall deposit all funds received pursuant to this
article in the Unclaimed Property Fund, including the proceeds from the sale of abandoned property under section twelve of this
article. In addition to paying claims of unclaimed property duly
allowed, the administrator may deduct the following expenses from
the Unclaimed Property Fund:
(1) Expenses of the sale of abandoned property;
(2) Expenses incurred in returning the property to owners,
including without limitation the costs of mailing and publication
to locate owners;
(3) Reasonable service charge; and
(4) Expenses incurred in examining records of holders of
property and in collecting the property from those holders;
(c) The Unclaimed Property Trust Fund is continued within the
State Treasury. The administrator may invest the Unclaimed Property
Trust Fund with the West Virginia Board of Treasury Investments and
all earnings shall accrue to the fund and are available for
expenditure in accordance with this article. After deducting the
expenses specified in subsection (b) of this section and
maintaining a sum of money from which to pay claims duly allowed,
the administrator shall transfer the remaining moneys in the
Unclaimed Property Fund to the Unclaimed Property Trust Fund.
(d) (1) On July 1, 2009, the unclaimed property administrator
shall transfer the amount of $8 million from the Unclaimed Property
Trust Fund to the Prepaid Tuition Trust Escrow Fund.
(2) On or before December 15 of each year, notwithstanding any provision of this code to the contrary, the administrator shall
transfer the sum of $1 million from the Unclaimed Property Trust
Fund to the Prepaid Tuition Trust Escrow Fund, until the actuary
certifies there are sufficient funds to pay out all contracts.
(e) On or before June 1, 2007, the unclaimed property
administrator shall transfer the amount of $2 million from the
Unclaimed Property Trust Fund to the Deferred Compensation Matching
Fund for operation of the deferred compensation matching program
for state employees. On or before June 1, 2008, the unclaimed
property administrator shall transfer the amount of $1 million from
the Unclaimed Property Trust Fund to the Deferred Compensation
Matching Fund for operation of the matching program.
(f) On or before June 1, 2013, the unclaimed property
administrator shall transfer the amount of $3,631,846.55 from the
Unclaimed Property Trust Fund to the Municipal Pensions and
Protection Fund for the purpose of satisfying any amounts due as of
April 27, 2012 to policemen's and firemen's pension and relief
funds in accordance with §33-3-14d of this code.
__(f) (g) After transferring any money required by subsections
(d and (e) through (f) of this section, the administrator shall
transfer moneys remaining in the Unclaimed Property Trust Fund to
the General Revenue Fund.
NOTE: The purpose of this bill is to provide for the transfer
of $3,631,846.55 from the Unclaimed Property Trust Fund to the
Municipal Pensions and Protection Fund for the purpose of
satisfying any amounts due as of April 27, 2012 to policemen's and
firemen's pension and relief funds. The bill also provides that the
Municipal Pension Oversight Board or other entity may not seek to
recover from a relief or pension fund, the Teachers Retirement
System or the state any overpayments received from the Municipal
Pensions and Protection Fund, and that the overpayments are not
subject to recovery, offset or litigation.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.