H. B. 2467
(By Delegates Walters, Kiss, Petersen, Gallagher,
Rutledge, Michael and Facemyer)
[Introduced March 4, 1993; referred to the
Committee on Finance.]
A BILL to amend chapter thirty-three of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
by adding thereto a new article, designated article twenty-
five-b, relating to authorizing nonprofit corporations to
provide federal insurance subsidy for children's health
funds; providing definitions; composition and powers of
corporation; administration; civil penalties; voucher
applications; duties and responsibilities of corporation;
training sessions; annual reports and audits; tax exempt
status; conflict of interest of members; and limiting
personal liability of members of corporation.
Be it enacted by the Legislature of West Virginia:
That chapter thirty-three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article twenty-five-b,
to read as follows:
ARTICLE 25B. FEDERAL INSURANCE SUBSIDY FOR CHILDREN'S HEALTH.
§33-25B-1. Definitions.
The following words, as used in this article, have the
meanings set forth below, unless the context clearly requires
otherwise:
(a) "Applicant aide" means an individual licensed by the
state to care for the physical or emotional needs of children or
an employee authorized by his employer where the employer is an
institution licensed by the state to care for the physical or
emotional needs of children and who has received an applicant
aide certificate. Individuals include, but are not limited to,
licensed teachers, child care workers, social workers, guidance
counselors, psychologists, nurses and physicians. Licensed
institutions include, but are not limited to, hospitals, schools,
local human services offices, child care centers and medical
clinics;
(b) "Approved providers" means any accident and health
insurer licensed by the state or any health services organization
licensed by the state or any other entity approved by the
insurance commissioner for provision of health care coverage for
children;
(c) "Corporation" means "The West Virginia Federal Insurance
Subsidy for Children's Health Corporation" created by this
article;
(d) "Board" means the board of directors of the corporation;
and
(e) "Director" means a member of the board.
§33-25B-2. Purpose.
The purpose of this article is to:
(a) Assist, promote, encourage, develop and advance the
knowledge of lower to moderate income families with dependent
children of the earned income credit available for money spent on
health insurance;
(b) Cooperate and act in conjunction with other
organizations, public and private, the objects of which are the
promotion and education of lower to moderate income families with
dependent children of the earned income credit available for
money spent on health insurance;
(c) Establish a system of qualified applicant aides who
shall be trained by the department of health and human services
and, who, for a modest dollar incentive, will on a volunteer
basis make knowledge of this program available to the targeted
families; and
(d) Provide counseling and assistance to families and aid
them in filing for the insurance voucher, selecting an
appropriate health insurance policy and completing the required
federal income tax return.
§33-25B-4. General powers.
A nonprofit corporation organized for the purposes set out
in this article possesses all the powers necessary and convenient
to accomplish the purposes of this article, including, without
any intended limitation upon the other powers hereby conferred,
the following:
(a) To provide counseling services to West Virginia families
on the purchase of federally subsidized health insurance;
(b) To accept gifts, grants, or loans from and enter into
contracts or other transactions with any federal or state agency,
any municipality, any private organization or any other source;
(c) To adopt, and from time to time, amend or rescind such
bylaws, rules and regulations as may be necessary or convenient
for the performance of its functions, powers and duties under
this article;
(d) To sue and be sued;
(e) To purchase, receive, take by grant, gift, devise,
bequest or otherwise, lease, or otherwise acquire, own, hold,
improve, employ, use and otherwise deal in and with, real or
personal property, or any interest therein, wherever situated;
(f) To sell, convey, lease, exchange, transfer or otherwise
dispose of, all or any of its property or any interest therein,
wherever situated;
(g) To adopt and use a seal; and
(h) To exercise all other powers and functions necessary or
appropriate to carry out the duties and purposes set forth in
this article.
§33-25B-5. Nonprofit corporation organized for insurance
subsidy for children's health fund.
Any nonprofit corporation organized to further the purposes
of this article may create a special fund, to be known as the
"Federal Insurance Subsidy for Children's Health Fund." The fundis to be administered by the nonprofit corporation and may use
revenue appropriated by the Legislature and received from other
sources. The corporation shall report all income and
disbursements to the tax commissioner, who is authorized to
promulgate rules prescribing the manner in which a nonprofit
corporation is to report under the provisions of this article and
shall prescribe all necessary forms.
§33-25B-6. Voucher applications; contents.
A guardian or applicant aide may file with a nonprofit
corporation, organized for the purposes of this article, a sworn
voucher application signed by the guardian asserting:
(a) That the guardian meets the requirements for the federal
earned income credit for child health insurance for the current
or next calendar year;
(b) The good-faith estimate value of the health insurance
earned income credit for the year in question;
(c) That the guardian will use the voucher to purchase
health insurance covering dependent children;
(d) That the guardian will prepare a federal tax return for
the year in question; and
(e) That the guardian agrees to assign the value of any
federal tax refund, in the amount of the voucher issued by the
corporation to the corporation when filing the guardian's federal
tax return.
§33-25B-7. Duties and responsibilities of corporation; training
sessions.
Upon presentation of a valid voucher application, the
corporation shall issue from the fund a voucher to the guardian
or applicant aide, made out in behalf of the guardian and
redeemable for the face amount by any approved provider. The
corporation shall retain in the fund all moneys received from
refundable tax credits of guardians. These moneys shall be used
to extend additional vouchers. The corporation may solicit and
receive donations of moneys for the fund. Any donation shall be
considered tax deductible charitable contributions for state tax
purposes.
The department of health and human resources shall design
and provide the vouchers to the corporation.
No later than sixty days after the effective date of this
article, the corporation shall have prepared appropriate
documents for use by guardians, applicant aides and for vouchers.
No later than ninety days after the effective date of this
article, the corporation shall begin regional training and
information sessions in all regions of the state to be conducted
by the department of health and human resources. The purpose of
these sessions is to train guardians and potential applicant
aides in the the necessary rules to qualify under the federal
guidelines for earned income credits and the requirements of this
section. These sessions shall be open to the public and
potential applicant aides, at a charge not to exceed five
dollars. Sessions shall be available in at least the first and
fourth quarter of the calendar year in all regions of the state. The corporation may waive the fee for guardians.
Potential applicant aides shall be tested by the corporation
under the supervision of the department of health and human
resources. Potential applicant aides who successfully complete
the test shall be awarded a certificate entitling them to work as
an applicant aide.
Applicant aides may receive a commission not to exceed five
percent of the voucher, from an approved provider. Any
commission shall not be payable until the fund is fully
reimbursed for the voucher. Applicant aides may not solicit or
accept any compensation from guardians or potential guardians.
Assisting individuals in the preparation of applications to
the fund and selection of the providers does not constitute the
sale of insurance and shall not be subject to regulation by the
insurance commissioner.
Insurance coverage bought by the guardian for these children
will be exempt from mandatory state benefits and not subject to
state premium taxes.
Applicant aides who engage in deceptive practices or who aid
or encourage deception or fraud may, upon hearing by the
corporation, have their certificate as an applicant aide revoked
for a period of not less than five years. This action shall be
in addition to any other penalties available at law.
The corporation may pursue triple damages in civil court for
any losses to the fund attributable to actions or the conduct of
applicant aides or guardians.
§33-25B-8. Annual report and audits.
On the first day of January of each year the corporation
shall report on its operations for the preceding fiscal year to
the governor and the state Legislature. The report shall include
a summary of the activities of the corporation and a complete
operating and financial statement. A West Virginia federal
insurance subsidy for children's health corporation shall cause
an annual audit to be made by a resident certified public
accountant or a registered public accountant of its books,
accounts and records, with respect to its receipts, disbursements
and all other matters related to its financial operations. The
person performing such audit shall also furnish copies of the
audit report to the speaker of the House of Delegates, the
president of the Senate and the majority and minority leaders of
both houses, and the legislative auditor.
§33-25B-9. Powers to be interpreted broadly.
The powers enumerated in this article shall be interpreted
broadly to effectuate the purposes thereof and shall not be
construed as a limitation of powers.
§33-25B-10. Tax exemption.
The corporation organized for the purposes of this article
is exempt from all franchise, corporate, business and taxes of
every nature levied by the state.
§33-25B-11. Conflict of interests.
(a) No member of the corporation or officer, agent or
employee thereof may, in his or her own name or in the name of anominee, hold an ownership interest of more than seven and one-
half percent in any association, trust, corporation, partnership
or other entity which is, in its own name or in the name of a
nominee, a party to a contract or agreement upon which the member
or officer, agent or employee may be called upon to act or vote.
(b) With respect to any direct or any indirect interest,
other than an interest prohibited in subsection (a) of this
section, in a contract or agreement upon which the member or
officer, agent or employee may be called upon to act or vote, a
member of the corporation or officer, agent or employee thereof
shall disclose the same to the secretary of the corporation prior
to the taking of final action by the corporation concerning such
contract or agreement and shall so disclose the nature and extent
of such interest and his or her acquisition thereof, which
disclosure shall be publicly acknowledged by the corporation and
entered upon the minutes of the corporation. If a member of the
corporation or officer, agent or employee thereof holds such an
interest, he or she shall refrain from any further official
involvement in regard to such contract of agreement, from voting
on any matter pertaining to such contract or agreement, and from
communicating with other members of the corporation or its
officers, agents and employees concerning said contract or
agreement. Notwithstanding any other provision of law, any
contract or agreement entered into in conformity with this
subsection shall not be void or invalid by reason of the interest
described in this subsection, nor shall any person so disclosingthe interest and refraining from further official involvement as
provided in this subsection be guilty of an offense, be removed
from office or be subject to any other penalty on account of such
interest.
(c) Any contract or agreement made in violation of
subsection (a) or (b) of this section is void and does not give
rise to an action against the corporation.
§33-25B-12. Personal liability of members or persons acting on
behalf of the corporation.
(a) No director or any person acting on behalf of the
corporation executing any contracts, commitments or agreements
issued pursuant to this article may be liable personally upon the
contracts, commitments or agreements or be subject to any
personal liability or accountability by reason thereof.
(b) No director or any person acting on behalf of the
corporation may be personally liable for damage or injury
resulting from the performance of his duties hereunder.
NOTE: The purpose of this bill is to authorize the creation
of nonprofit corporations to provide a Federal Insurance Subsidy
for Children's Health to help low income families buy federally
subsidized health insurance. The bill will seek out qualified
applicant aides, who will be trained by the Department of Health
and Human Resources, to advise the targeted families of the
insurance available, assist in filing for the insurance voucher
and completing required federal income tax forms or returns.
Article 25 is new; therefore, strike-throughs and
underscoring have been omitted.