COMMITTEE SUBSTITUTE
FOR
H. B. 2511
(By Delegates Michael, Mezzatesta, Manuel and Martin)
(Originating in the Committee
on Finance.)
[April 2, 1997]
A BILL to repeal section thirteen, article four, chapter twelve of
the code of West Virginia, one thousand nine hundred thirty- one, as amended; to repeal sections two and two-a, article
eight, chapter twenty-seven; to amend and reenact sections
five, nine, ten and eleven-a, article six, chapter five; to
amend and reenact section six, article two, chapter five-f; to
amend and reenact section one, article seven, chapter six; to
amend and reenact section one, article five, chapter seven; to
amend and reenact section fifteen, article thirteen, chapter
eight; to amend and reenact sections one, two, four, five,
seven, eight, nine, ten, eleven, twelve and thirteen, article
one, chapter twelve; to amend and reenact sections two, three,
four and five, article two of said chapter; to amend and
reenact sections one, one-a, one-b, four, ten-a, thirteen-b,
article three of said chapter; to further amend said article by adding thereto two new sections, designated sections ten-c
and ten-d; to amend sections two, three, four, six, seven,
eight and nine, article four of said chapter; to further amend
said article by adding thereto two new sections, designated
sections three-a and eight-a; to amend and reenact sections
two, four, five and six, article five of said chapter; to
further amend said article by adding thereto a new section,
designated section seven; to amend and reenact sections one-a,
four and five, article six of said chapter; to amend and
reenact sections two, three, five and six, article six-a of
said chapter; to further amend said chapter by adding thereto
a new article, designated article six-b; to amend and reenact
sections fourteen, seventeen and eighteen, article one,
chapter thirteen; to amend and reenact section three, article
three of said chapter; to amend and reenact sections nine,
twelve and thirteen, article nine-d, chapter eighteen; to
amend and reenact section nine, article fifteen-a, chapter
thirty-one; to amend and reenact section two, article fifteen- b of said chapter; to amend and reenact section eleven,
article twenty of said chapter; to amend and reenact sections
one, two, three, four, five, six, seven, eight, nine, ten,
eleven and twelve, article six-b, chapter forty-four; to amend
and reenact section two-a, article three, chapter fifty; to
amend and reenact section seven-a, article one, chapter fifty-seven; and to amend and reenact section twelve, article one,
chapter fifty-nine, all generally relating to the financial
and investment procedures in this state; repealing provisions
relating to unreconciled items on bank accounts; repealing
provisions relating to budgeting for state hospitals and local
mental health programs; providing for uniform processing of
proceeds and disbursements in relation to the issuance of
revenue bonds by the state building commission, the school
building authority, the West Virginia infrastructure and jobs
development council, and the West Virginia regional jail and
correctional facility authority; providing for the
consolidation and organization of certain boards and
commissions; authorizing state officials, officers and
employees to be paid twice per month; providing for collection
of moneys due a county, district, municipality, magistrate
court, circuit courts; establishing duties and
responsibilities of the state treasurer in relation to state
depositories; changing the method for the payment and deposit
of taxes and other amounts due the state or any political
subdivision; establishing duties and responsibilities of the
state auditor and treasurer in relation to appropriations,
expenditures and deductions; clarifying the accounts of
treasurer and auditor; providing that the auditor is to
certify condition of revenues and funds of the state; providing method for signing of checks and warrants; facsimile
signatures and use of mechanical and electrical devices;
providing criminal penalties for violations of signature
authority; comparison of books of auditor and treasurer;
requiring the changing of the office hours of auditor and
treasurer; authorizing the employment of legal counsel;
changing rules relating to absence of auditor or treasurer;
providing for the balancing of state accounts; establishing
the state treasurer's duties and responsibilities in relation
to public securities; providing that the treasurer will act as
financial advisor; providing for the employment or selection
of bond counsel; amending the provisions relating to members
of the state board of investments; providing for the
appointment of certain members; providing for the employment
of the executive secretary; providing the employment of board
staff; amending the powers of the board; clarifying loan
provisions of the board; providing for debt information
reporting; creating a debt capacity advisory division;
allowing the use of photographic copies in evidence, for state
records, and papers or documents; providing for destruction or
transfer to archives of original documents; destruction of
canceled checks; and paid and canceled bonds and coupons;
reauthorizing the West Virginia Trust Fund; and setting forth
permissible purposes and investments of the trust fund.
Be it enacted by the Legislature of West Virginia:
That section thirteen, article four, chapter twelve be
repealed; that sections two and two-a, article eight, chapter
twenty-seven be repealed; that sections five, nine, ten and eleven- a, article six, chapter five be amended and reenacted; that section
six, article two, chapter five-f be amended and reenacted; that
section one, article seven, chapter six be amended and reenacted;
that section one, article five, chapter seven be amended and
reenacted; that section fifteen, article thirteen, chapter eight be
amended and reenacted; that sections one, two, four, five, seven,
eight, nine, ten, eleven, twelve and thirteen, article one, chapter
twelve be amended and reenacted; that sections two, three, four and
five, article two of said chapter be amended and reenacted; that
sections one, one-a, one-b, four, ten-a and thirteen-b, article
three of said chapter be amended and reenacted; that said article
be further amended by adding thereto two new sections, designated
sections ten-c and ten-d; that sections two, three, four, six,
seven, eight and nine, article four of said chapter be amended and
reenacted; that said article be further amended by adding thereto
two new sections, designated sections three-a and eight-a; that
sections two, four, five and six, article five of said chapter be
amended and reenacted; that said article be further amended by
adding thereto a new section, designated section seven; that
sections one-a, four and five, article six of said chapter be amended and reenacted; that sections two, three, five and six,
article six-a of said chapter be amended and reenacted; that said
chapter be further amended by adding thereto a new article,
designated article six-b; that sections fourteen, seventeen and
eighteen, article one, chapter thirteen be amended and reenacted;
that section three, article three of said chapter be amended and
reenacted; that sections nine, twelve and thirteen, article nine-d,
chapter eighteen be amended and reenacted; that section nine,
article fifteen-a, chapter thirty-one be amended and reenacted;
that section two, article fifteen-b of said chapter be amended and
reenacted; that section eleven, article twenty of said chapter be
amended and reenacted; that sections one, two, three, four, five,
six, seven, eight, nine, ten, eleven and twelve, article six-b,
chapter forty-four be amended and reenacted; that section two-a,
article three, chapter fifty be amended and reenacted; that section
seven-a, article one, chapter fifty-seven be amended and reenacted;
and that section twelve, article one, chapter fifty-nine, all of
the code of West Virginia, one thousand nine hundred thirty-one, as
amended, 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 6. STATE BUILDING COMMISSION.
§5-6-5. Deposit and disbursement of funds of commission; security for deposits; audits.
Except as provided in sections five-a and eleven-a of this
article, all moneys of the commission from whatever source derived
shall be paid to the treasurer of the state of West Virginia who
shall not commingle the moneys, but shall deposit them to a special
revenue fund to be known as the "state building commission fund".
The moneys in the account shall be impressed with and subject to
the lien or liens on the moneys in favor of the bondholders
provided in the proceedings for issuance of bonds pursuant to this
article. The moneys in the account shall be paid out on check of
the treasurer on requisition of the chairman of the commission, or
of such other person as the commission may authorize to make the
requisition. All deposits of the moneys shall, if required by the
treasurer or the commission, be secured by obligations of the
United States, of the state of West Virginia, or of the commission,
of a market value equal at all times to the amount of the deposit,
and all banking institutions are authorized to give such security
for the deposits. The legislative auditor and his or her legally
authorized representatives are hereby authorized and empowered from
time to time to examine the accounts and books of the commission,
including its receipts, disbursements, contracts, leases, sinking
funds, investments and any other matters relating to its financial
standing.
Notwithstanding, any provision of this article to the
contrary, except bonds issued pursuant to a master resolution or agreement dated prior to the first day of July, one thousand nine
hundred ninety-seven, or bonds issued on a parity with bonds issued
prior to the first day of July, one thousand nine hundred ninety- seven, all proceeds from the issuance of any and all revenue bonds
issued pursuant to this article on or after the first day of July,
one thousand nine hundred ninety-seven, including any moneys in any
special funds, sinking funds, reserve funds, or any other moneys or
funds and all interest earned thereon, shall be credited to the
state treasury and invested by the board of investments as provided
in article six, chapter twelve of this code. All interest earnings
on the moneys of a fund shall accrue to the fund and are available
for expenditure in accordance with resolution, trust or other
agreement or document creating the fund. All disbursements,
including but not limited to the completion of authorized projects,
costs of issuance, and all debt service obligations shall be paid
from the state treasury pursuant to a warrant drawn by the auditor
as provided in articles two and three, chapter twelve of this code.
The auditor and treasurer shall remit funds or sinking funds, debt
service reserves and any other fund requirements as required by a
trustee or similar agreement for bonds issued to a master
resolution or agreement dated prior to the first day of July, one
thousand nine hundred ninety-seven, or bonds issued on parity with
bonds issued prior to the first day of July, one thousand nine
hundred ninety-seven. In the case of refunding bonds, the treasurer shall designate a financial institution to serve as
escrow trustee. For other bonds issued to which this section
applies, the auditor and treasurer may remit funds as required by
a trustee or similar agreement.
§5-6-9. Trustee for holders of bonds; contents of trust agreement.
The commission may enter into an agreement or agreements with
any trust company, or with any bank having the powers of a trust
company, whether within or outside of the state, as trustee for the
holders of bonds issued
hereunder under this article, setting forth
therein such the duties of the state and of the commission in
respect of the acquisition, construction, improvement, maintenance,
operation, repair and insurance of the project, the conservation
and application of all moneys, the insurance of moneys on hand or
on deposit, and the rights and remedies of the trustee and the
holders of the bonds, as may be agreed upon with the original
purchasers of
such the bonds, and including therein provisions
restricting the individual right of action of bondholders as is
customary in trust agreements respecting bonds and debentures of
corporations, protecting and enforcing the rights arid remedies of
the trustee and the bondholders, and providing for approval by the
original purchasers of the bonds of the appointment of consulting
architects, and of the security given by those who contract to
construct the building, and by any bank or trust company in which
the proceeds of bonds or rentals shall be deposited, and for approval by the consulting architects of all contracts for
construction. All expenses incurred in carrying out such agreement
may be treated as a part of the cost of maintenance, operation and
repairs of the project.
Notwithstanding, any provision of this
article to the contrary, except bonds issued pursuant to a master
resolution or agreement dated prior to the first day of July, one
thousand nine hundred ninety-seven, or bonds issued on a parity
with bonds issued prior to the first day of July, one thousand nine
hundred ninety-seven, all proceeds from the issuance of any and all
revenue bonds issued pursuant to this article on or after the first
day of July, one thousand nine hundred ninety-seven, including any
moneys in any special funds, sinking funds, reserve funds, or any
other moneys or funds and all interest earned thereon, shall be
credited to the state treasury and invested by the board of
investments as provided in article six, chapter twelve of this
code. All interest earnings on the moneys of a fund shall accrue
to the fund and are available for expenditure in accordance with
resolution, trust or other agreement or document creating the fund.
All disbursements, including but not limited to the completion of
authorized projects, costs of issuance, and all debt service
obligations shall be paid from the state treasury pursuant to a
warrant drawn by the auditor as provided in articles two and three,
chapter twelve of this code. The auditor and treasurer shall remit
funds or sinking funds, debt service reserves and any other fund requirements as required by a trustee or similar agreement for
bonds issued to a master resolution or agreement dated prior to the
first day of July, one thousand nine hundred ninety-seven, or bonds
issued on parity with bonds issued prior to the first day of July,
one thousand nine hundred ninety-seven. In the case of refunding
bonds, the treasurer shall designate a financial institution to
serve as escrow trustee. For other bonds issued to which this
section applies, the auditor and treasurer may remit funds as
required by a trustee or similar agreement.
§5-6-10. Trust existing in favor of existing bondholders.
The properties and interests in properties, real, personal and
mixed, tangible and intangible, standing or held in the name of or
for and in behalf of, or for the benefit of, the commission, or the
state of West Virginia to the extent that the properties and
interests in properties were acquired or improved by the
expenditure of the proceeds of bonds previously issued by the
commission, and the moneys, deposits, securities and chooses in
action and other rights held in the name of or for and in behalf
of, or for the benefit of, the commission, other than moneys,
deposits, securities, chooses in action and other rights, or which
are investments of: (1) Proceeds of bonds previously issued by the
commission held for expenditure for completion of now existing
projects of the commission; or (2) revenues of the commission from
existing projects of the commission which, after provision for operation and maintenance expenses and coverage requirements not
otherwise provided for, are in excess of sums required to pay the
principal of and interest on the bonds of the commission previously
issued, as and when due and payable; or (3) proceeds of bonds of
the commission issued after the effective date of this section; or
(4) revenues pledged for the repayment of bonds issued pursuant to
section eleven-a of this article; or (5) revenues of the commission
from projects acquired after the effective date of this section or
constructed by the commission, are declared to be subject to and
shall be held by the commission in trust for the satisfaction of
the obligations evidenced by the bonds previously issued by the
commission and the interest coupons on the bonds: Provided, That
nothing in this article shall be taken to validate or to attempt to
validate rights under any existing lease or other agreement entered
into under the former provisions of this article between the
commission and the state of West Virginia or any officer,
department or agency of this state to the extent that the lease or
agreement provides for payments from general tax revenues of the
state. Until the satisfaction in full of the obligations evidenced
by bonds previously issued by the commission, the commission shall
hold, manage and operate the trust properties and interests in
properties, moneys, deposits, securities and chooses in action and
other rights, separate from all other properties and interests in
properties, moneys, deposits, securities and chooses in action and other rights that may after the effective date of this section be
held and owned by the commission. Upon the satisfaction of all of
the obligations of the commission, all of the trust properties and
interests in properties, moneys, deposits, securities and chooses
in action and other rights shall become and be free and clear of
the trust.
Notwithstanding, any provision of this article to the
contrary, except bonds issued pursuant to a master resolution or
agreement dated prior to the first day of July, one thousand nine
hundred ninety-seven, or bonds issued on a parity with bonds issued
prior to the first day of July, one thousand nine hundred ninety- seven, all proceeds from the issuance of any and all revenue bonds
issued pursuant to this article on or after the first day of July,
one thousand nine hundred ninety-seven, including any moneys in any
special funds, sinking funds, reserve funds, or any other moneys or
funds and all interest earned thereon, shall be credited to the
state treasury and invested by the board of investments as provided
in article six, chapter twelve of this code. All interest earnings
on the moneys of a fund shall accrue to the fund and are available
for expenditure in accordance with resolution, trust or other
agreement or document creating the fund. All disbursements,
including but not limited to the completion of authorized projects,
costs of issuance, and all debt service obligations shall be paid
from the state treasury pursuant to a warrant drawn by the auditor
as provided in articles two and three, chapter twelve of this code. The auditor and treasurer shall remit funds or sinking funds, debt
service reserves and any other fund requirements as required by a
trustee or similar agreement for bonds issued to a master
resolution or agreement dated prior to the first day of July, one
thousand nine hundred ninety-seven, or bonds issued on parity with
bonds issued prior to the first day of July, one thousand nine
hundred ninety-seven. In the case of refunding bonds, the
treasurer shall designate a financial institution to serve as
escrow trustee. For other bonds issued to which this section
applies, the auditor and treasurer may remit funds as required by
a trustee or similar agreement.
§5-6-11a. Special power of commission to transfer or expend bond
proceeds for capital improvements at institutions of higher
education, state parks and the capitol complex and to
construct and lease a center for arts and sciences of West
Virginia; limitations; state building commission authorized to
issue revenue bonds; fund created; use of funds to pay for
development of education, arts, sciences and tourism projects.
(a) The Legislature finds and declares that in order to
attract new business and industry to this state, to retain existing
business and industry providing the citizens of this state with
economic security and to advance the business prosperity and
economic welfare of this state it is necessary to promote adequate
higher education, arts, sciences and tourism facilities, including infrastructure, for: (1) State-of-the-art educational opportunities
for all citizens of this state; (2) tourism enhancements at state
parks, the capitol complex or other tourism sites throughout the
state; (3) hands-on arts and sciences training for the youth of
West Virginia; and (4) programs using the performing arts as an
educational tool. Therefore, in order to promote education, arts,
sciences and tourism, the Legislature finds that public financial
support should be provided for constructing, equipping, improving
and maintaining capital improvement projects which promote
education, arts, sciences and tourism in this state.
(b) The state building commission shall, by resolution, in
accordance with the provisions of this article, issue revenue bonds
of the commission from time to time, to pay for a portion of the
cost of constructing, equipping, improving or maintaining capital
improvement projects under this section or to refund the bonds, at
the discretion of the authority. The principal amount of the bonds
issued under this section shall not exceed, in the aggregate, one
hundred million dollars. Any revenue bonds issued on or after the
first day of January, one thousand nine hundred ninety-six, which
are secured by lottery proceeds shall mature at a time or times not
exceeding twenty-five years from their respective dates. The
principal of, and the interest and redemption premium, if any, on
the bonds shall be payable solely from the special fund provided in
this section for the payment.
Notwithstanding, any provision of this article to the contrary, except bonds issued pursuant to a
master resolution or agreement dated prior to the first day of
July, one thousand nine hundred ninety-seven, or bonds issued on a
parity with bonds issued prior to the first day of July, one
thousand nine hundred ninety-seven, all proceeds from the issuance
of any and all revenue bonds issued pursuant to this article on or
after the first day of July, one thousand nine hundred ninety- seven, including any moneys in any special funds, sinking funds,
reserve funds, or any other moneys or funds and all interest earned
thereon, shall be credited to the state treasury and invested by
the board of investments as provided in article six, chapter twelve
of this code. All interest earnings on the moneys of a fund shall
accrue to the fund and are available for expenditure in accordance
with resolution, trust or other agreement or document creating the
fund. All disbursements, including, but not limited to, the
completion of authorized projects, costs of issuance, and all debt
service obligations shall be paid from the state treasury pursuant
to a warrant drawn by the auditor as provided in articles two and
three, chapter twelve of this code. The auditor and treasurer
shall remit funds or sinking funds, debt service reserves and any
other fund requirements as required by a trustee or similar
agreement for bonds issued to a master resolution or agreement
dated prior to the first day of July, one thousand nine hundred
ninety-seven, or bonds issued on parity with bonds issued prior to the first day of July, one thousand nine hundred ninety-seven. In
the case of refunding bonds, the treasurer shall designate a
financial institution to serve as escrow trustee. For other bonds
issued to which this section applies, the auditor and treasurer may
remit funds as required by a trustee or similar agreement.
(c) There is hereby created continued in the state treasury
a special revenue fund named the "education, arts, sciences and
tourism debt service fund" into which shall be deposited on and
after the first day of July, one thousand nine hundred ninety-six,
the amounts specified in section eighteen, article twenty-two,
chapter twenty-nine of this code. All amounts deposited in the
fund shall be pledged to the repayment of the principal, interest
and redemption premium, if any, on any revenue bonds or refunding
revenue bonds authorized by this section. The commission may
further provide in the resolution and in the trust agreement for
priorities on the revenues paid into the education, arts, sciences
and tourism debt service fund as may be necessary for the
protection of the prior rights of the holders of bonds issued at
different times under the provisions of this section. The bonds
issued pursuant to this section shall be separate from all other
bonds which may be or have been issued from time to time under the
provisions of this article. The education, arts, sciences and
tourism debt service fund shall be pledged solely for the repayment
of bonds issued pursuant to this section. On or prior to the first day of May of each year, commencing the first day of May, one
thousand nine hundred ninety-six, the commission shall certify to
the state lottery director the principal and interest and coverage
ratio requirements for the following fiscal year on any revenue
bonds or refunding revenue bonds issued pursuant to this section,
and for which moneys deposited in the education, arts, sciences and
tourism debt service fund have been pledged, or will be pledged,
for repayment pursuant to this section.
After the commission has issued bonds authorized by this
section, and after the requirements of all funds have been
satisfied, including coverage and reserve funds established in
connection with the bonds issued pursuant to this section, any
balance remaining in the education, arts, sciences and tourism debt
service fund may be used for the redemption of any of the
outstanding bonds issued under this section which, by their terms,
are then redeemable or for the purchase of the outstanding bonds at
the market price, but not to exceed the price, if any, at which
redeemable, and all bonds redeemed or purchased shall be
immediately canceled and shall not again be issued.
(d) The commission shall expend twenty-five million dollars
of the bond proceeds for certified capital improvement projects at
state institutions of higher education. For the purposes of
certifying the projects which will receive funds from the bond
proceeds, a committee shall be established and comprised of the governor, or his or her designee, the secretary of the department
of administration, the secretary of the department of education and
the arts, the chancellor of the university of West Virginia board
of trustees and the chancellor of the board of directors of the
state college system. The committee shall meet as often as
necessary and take recommendations from any source whatever
regarding the capital improvement projects at state institutions of
higher education. The committee shall meet within forty-five days
of the effective date of this section. Prior to making its
recommendations, the committee shall conduct at least two public
hearings, one of which must be held outside of Kanawha County.
Notice of the time, place, date and purpose of the hearing shall be
published in at least one newspaper in each of the three
congressional districts at least fourteen days prior to the date of
the public hearing. On or before the fifteenth day of September,
one thousand nine hundred ninety-six, the committee shall certify
to the commission a list of those capital improvement projects at
state institutions of higher education which will receive funds
from the proceeds of bonds issued pursuant to this section. Once
certified, the list of projects certified by the committee may not
thereafter be altered or amended other than by legislative
enactment. Only projects which have been certified to the
commission shall be funded from bond proceeds.
(e) The commission shall expend up to twenty-six million dollars from the proceeds of the bonds authorized by this section
to pay a portion of the costs of projects certified under this
subsection for development, maintenance or promotion of arts and
sciences or constructing and equipping a center for arts and
sciences of West Virginia located on a site acquired for that
purpose. Any proceeds expended to pay a portion of project costs
to construct and equip a center for arts and sciences of West
Virginia shall not exceed forty percent of the total cost of the
project and permanent endowments for operation and maintenance, and
bond proceeds shall not be expended until sixty percent of the
total cost has been committed from sources other than bond
proceeds. For the purposes of certifying the projects which will
receive funds from the bond proceeds under this subsection, a
committee shall be established and comprised of the governor, or
his or her designee, the secretary of the department of
administration, the director of the division of natural resources,
the director of the West Virginia development office and a
representative of the capitol building commission, other than the
secretary of the department of administration, who shall be
selected by the capitol building commission. The capitol building
commission shall select its representative within thirty days of
the effective date of this section. The committee shall meet as
often as necessary and take recommendations from any source
whatever regarding which projects should be certified. The committee shall meet within forty-five days of the effective date
of this section. Prior to making its determination, the committee
shall conduct one public hearing on the projects to be certified
under this subsection. Notice of the time, place, date and purpose
of the hearing shall be published in at least one newspaper in each
of the three congressional districts at least fourteen days prior
to the date of the public hearing. The committee shall make its
determination as to whether bond proceeds will be expended for the
purposes set forth in this subsection and the amount to be expended
for each project, on or before the fifteenth day of June, one
thousand nine hundred ninety-six. Thereafter, the decision may not
be altered or amended other than by legislative enactment. Only
projects which have been certified to the commission shall be
funded from bond proceeds. Once certified, the list of projects to
be funded may not be altered or amended except by legislative
enactment. The commission is authorized to acquire by purchase or
lease real property to be used as the site for a center for arts
and sciences of West Virginia; and notwithstanding the provisions
of section seven of this article, enter into a long-term lease
agreement with a nonprofit corporation organized under the laws of
this state for operation and maintenance of the center. The
nonprofit corporation shall, as consideration for any long-term
lease agreement, complete the construction and equipping of the
center and demonstrate to the satisfaction of the commission its financial ability to operate and maintain the center during the
term of the lease agreement. The nonprofit corporation shall have
at least nine members on its board of directors which are appointed
by the governor with the advice and consent of the Senate. Of the
nine appointed members, three shall be selected from each
congressional district: Provided, That none of the appointed
members shall be a resident of Kanawha County. The members
appointed by the governor with the advice and consent of the Senate
shall serve on the board for three-year staggered terms. of the
members first appointed by the governor, one from each
congressional district will serve a three-year term, one from each
congressional district will serve a two-year term and one from each
congressional district shall serve a one-year term.
(f) The commission shall expend the balance of the bond
proceeds for certified projects at state parks, the capitol complex
or other tourism sites. The committee established in subsection
(e) of this section shall certify to the commission on or before
the fifteenth day of September, one thousand nine hundred ninety- six, a list of those capital improvement projects at state parks,
the capitol complex or other tourism sites which will receive funds
from the proceeds of bonds issued pursuant to this section. The
committee shall meet as often as necessary and take recommendations
from any source whatever regarding the capital improvement projects
at state parks, the capitol complex or other tourism sites in this state. The committee shall meet within forty-five days of the
effective date of this section. Prior to making its
recommendations, the committee shall conduct at least two public
hearings on the projects to be certified under this subsection, one
of which must be held outside of Kanawha County. Notice of the
time, place, date and purpose of the hearing shall be published in
at least one newspaper in each of the three congressional districts
at least fourteen days prior to the date of the public hearing.
Once certified, the list of certified projects may not thereafter
be altered or amended other than by legislative enactment.
CHAPTER 5F. REORGANIZATION OF THE EXECUTIVE BRANCH OF STATE
GOVERNMENT.
ARTICLE 2. TRANSFER OF AGENCIES AND BOARDS.
§5F-2-6. Reorganization of boards issuing or incurring debt.
(a) The Legislature finds and declares that boards and
commissions empowered to issue bonds, incur indebtedness and
provide financing or financial services for a public purpose may in
some cases benefit the public interest or operate more efficiently
through consolidation of legal, technical and support staff or
services, sharing of office space, consolidation of procedures, and
cooperation to identify circumstances where one entity may provide
services for another, including, but not limited to, circumstances
where one board or commission may finance the programs of another.
On or after the effective date of this section, the treasurer shall be authorized at the request of the presiding officer of the entity
to provide financial services, provide technical staff services,
provide support staff and services, and provide for the sharing of
office space among and between the following entities:
(1) The staff of the municipal bond commission provided for
in article three, chapter thirteen of this code: Provided, That
nothing in this section shall be construed to limit the
independence and autonomy of the municipal bond commission;
(2) The staff of the hospital finance authority provided for
in article twenty-nine-a, chapter sixteen of this code: Provided,
That nothing in this section shall be construed to limit the
independence and autonomy of the hospital finance authority;
(3) The staff of the public energy authority provided for in
article one, chapter five-d of this code;
(4) The staff of the state board of investments provided for
in article six, chapter twelve of this code: Provided, That
nothing in this section shall be construed to limit the
independence and autonomy of the state board of investments.
(b) In furtherance of the goal of increased efficiency and
cooperation, the director of the debt management division of the
board of investments and the secretary of the department of
administration are jointly charged with the responsibility of
developing and presenting to the boards and commissions, to the
board of investments, to the state treasurer, to the governor, and to the Legislature recommendations for administrative and statutory
change.
Not later than the first day of January, one thousand nine
hundred ninety-five, the director and the secretary shall present
to the governor and the Legislature a report setting forth their
findings, any recommendations for administrative or statutory
change and drafts of specific legislation for consideration by the
Legislature during the regular session in the year one thousand
nine hundred ninety-five.
(c)The director and the secretary shall invite
representatives of the following boards to participate in an ad hoc
working group to develop policies and respond to initiatives
recommended by the director and the secretary:
(1)Municipal bond commission provided for in article
three, chapter thirteen of this code;
(2)Hospital finance authority provided for in article
twenty-nine-a, chapter sixteen of this code;
(3)Solid waste management board provided for in article
twenty-six, chapter sixteen of this code;
(4)Water development authority provided for in article
five-c, chapter twenty of this code; and
(5)Housing development fund provided for in article
eighteen, chapter thirty-one of this code.
The working group shall identify circumstances where one entity may
provide services for another, including, but not limited to, circumstances where one spending unit may finance the programs of
another, to ensure that the terms of any indebtedness are the terms
most beneficial to the state. The director and the secretary shall
facilitate cooperation between the boards and commissions in
developing specific legislation for consideration by the
Legislature during the regular session of the Legislature in the
year one thousand nine hundred ninety-five.
(d)On and after the effective date of this section, the
board of investments, with the assistance of the director of the
West Virginia debt management commission, shall provide
administrative support and shall act as liaison with the office of
the governor with respect to the following entities:
(1)Municipal bond commission provided for in article
three, chapter thirteen of this code: Provided, That nothing in
this section shall be construed to limit the independence and
autonomy of the municipal bond commission;
(2)Hospital finance authority provided for in article
twenty-nine-a, chapter sixteen of this code; and
(3)Public energy authority provided for in article one,
chapter five-d of this code.
CHAPTER 6. GENERAL PROVISIONS RESPECTING OFFICERS.
ARTICLE 7. COMPENSATION AND ALLOWANCES.
§6-7-1. State officials, officers and employees to be paid twice
per month; effective date.
All full-time and part-time salaried and hourly officials,
officers and employees of the state and the state board of regents
shall be paid twice per month, and under the same procedures and in
the same manner as the state auditor currently pays agencies on
such basis
; beginning the first day of July, one thousand nine
hundred eighty-six.: Provided, That on and after the first day of
July one thousand nine hundred ninety-nine, or any date thereafter,
as determined by the auditor, all officials, officers or employees,
except elected officials and employees whose compensation is fixed
by statute, shall be paid one pay cycle in arrears. Any employee
whose employment with the state begins on or after the first day of
July one thousand nine hundred ninety-nine as determined by the
auditor, shall not receive his or her first pay until the end of
the second regular payroll cycle after beginning employment. The
auditor shall propose a legislative rule in accordance with article
three, chapter twenty-nine-a of this code to determine the manner
to implement the payment of employees in arrears. Nothing
contained in this section is intended to increase or diminish the
salary or wages of any official, officer or employee.
CHAPTER 7. COUNTY COMMISSIONS AND OFFICERS.
ARTICLE 5. FISCAL AFFAIRS.
§7-5-1. Sheriff ex officio county treasurer.
The sheriff shall be ex officio county treasurer and as such
treasurer shall receive, collect and disburse all moneys due such county or any district thereof, and shall also receive, collect and
disburse to the treasurer of the county board of education all
school money for the county, unless the sheriff is designated by
the board of education as its treasurer, as provided in section six
(18-9-6), article nine, chapter eighteen of this code. The sheriff
shall keep his office at the courthouse for the county, in a
suitable room or rooms provided for that purpose by the county
court (county commission), in which all money and property in his
possession shall be kept, unless deposited by him in a county
depository, in which case as accurate daily deposit account thereof
shall be kept in his office. He shall keep in his office a fair
and accurate account of all receipts and disbursements by him,
showing the time when, from whom, to whom and on what account
received and paid, and he shall so arrange his books that the
amount received and paid on account of separate and distinct funds,
or specific appropriations, shall be exhibited in separate and
distinct accounts, and he shall also keep separate and distinct
accounts for the funds of each fiscal year.
When any money is paid to the sheriff, except for taxes, the
sheriff shall give to the person paying the same duplicate receipts
thereof, stating briefly the fund or account for which paid; one of
which receipts such person shall forthwith deposit with the clerk
of the county court (county commission), who shall, in a well-bound
book to be kept by him in his office for the purpose, charge the sheriff therewith and preserve such receipt in his office.
The sheriff and his sureties on his official bond shall be
held liable for all public moneys coming into his hands as ex
officio treasurer from every source whether or not the same shall
be deposited in a bank:
Provided, That nothing in this article
prohibits the payment of funds due the county treasurer by credit
or check card. Allowing for the collection of funds by credit or
check card shall be at the discretion of the county commission.
CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 13. TAXATION AND FINANCE.
§8-13-15.Collection of municipal taxes, fines and assessments.
Unless otherwise provided, it shall be the duty of the
treasurer of the municipality or other individual who may be
designated by general law, by charter provisions or by the
governing body, to collect and promptly pay into the municipal
treasury all taxes, fines, special assessments or other moneys due
the municipality. All such taxes, fines, special assessments
(except assessments for permanent or semipermanent public
improvements) and other moneys due the municipality are hereby
declared to be debts owing to the municipality, for which the
debtor shall be personally liable, and the treasurer, or other
individual so designated, may enforce this liability by appropriate
civil action in any court of competent jurisdiction, and is hereby
vested with the same rights to distrain for the same as is vested in the sheriff for the collection of taxes. Such treasurer or
other individual shall give a bond, conditioned according to law,
in such penalty and with such security as the governing body may
require:
Provided, That nothing in this article shall prohibit the
payment of taxes, fines, special assessments or other moneys due
the municipality by credit or check card. Allowing for the
collection of these funds by credit or check card shall be at the
discretion of the municipality.
CHAPTER 12. PUBLIC MONEYS AND SECURITIES.
ARTICLE 1. STATE DEPOSITORIES.
§12-1-1. Legislative findings and purpose.
The Legislature finds and declares that the efficient
collection, disbursement, management and investment of public
moneys
by the state board of investments in the state treasury will
benefit the citizens, teachers and public employees of this state
by reducing the costs of government and providing sources of
increased revenue without the necessity of increased taxation; and
to achieve these goals,
the state treasurer and the board of
investments, an independent entity immune to the changing political
climate, shall provide a stable and continuous source of
professional financial management, and shall be given the authority
to develop and maintain modern systems, consistent with sound
financial practices, for the collection, disbursement, management
and investment of such moneys in conjunction with the state treasurer.
§12-1-2. Depositories for demand deposits; categories of demand
deposits; competitive bidding for disbursement
accounts; maintenance of deposits by state treasurer.
The state
board of investments treasurer shall designate the
state and national banks in this state which shall serve as
depositories for all state funds placed in demand deposits. Any
such state or national bank shall, upon request to
such board the
treasurer, be designated as a state depository for such deposits,
if such bank meets the requirements set forth in this chapter.
Demand deposit accounts shall consist of receipt, disbursement
and investment accounts. Receipt accounts shall be those accounts
in which are deposited moneys belonging to or due the state of West
Virginia or any official, department, board, commission or agency
thereof.
Disbursement accounts shall be those accounts from which are
paid moneys due from the state of West Virginia or any official,
department, board, commission, political subdivision or agency
thereof to any political subdivision, person, firm or corporation,
except moneys paid from investment accounts.
Investment accounts shall be those accounts established by the
board of investments for the buying and selling of securities for
investment for the state of West Virginia or any official,
department, board, commission or agency thereof or to meet obligations to paying agents or for paying charges incurred for the
custody, safekeeping and management of such securities pursuant to
the provisions of section five, article five of this chapter, or
for paying the charges of any bank or trust company acting as
paying agent or copaying agent for a bond issue of the state
pursuant to the provisions of section seven-a, article one, chapter
fifty-seven of this code.
The
board of investments state treasurer shall promulgate
rules
and regulations, in accordance with the provisions of
article
three chapter twenty nine-a of the code of West Virginia, as
amended, concerning depositories for receipt accounts and
investment accounts prescribing the selection criteria, procedures,
compensation and such other contractual terms as it considers to be
in the best interests of the state giving due consideration to: (1)
The activity of the various accounts maintained therein; (2) the
reasonable value of the banking services rendered or to be rendered
the state by such depositories; and (3) the value and importance of
such deposits to the economy of the communities and the various
areas of the state affected thereby.
The state
board of investments treasurer shall select
depositories for disbursement accounts through competitive bidding
by eligible banks in this state. The
board treasurer shall
promulgate rules and regulations, in accordance with the provisions
of
article three, chapter twenty-nine-a of the code of West Virginia, as amended, prescribing the procedures and criteria for
such bidding and selection. It shall, in its invitations for bids,
specify the approximate amounts of deposits, the duration of
contracts to be awarded and such other contractual terms as it
considers to be in the best interests of the state, consistent with
obtaining the most efficient service at the lowest cost.
The amount of money needed for current operation purposes of
the state government, as determined by the
board of investments
state treasurer, shall be maintained at all times in the state
treasury, in cash or in disbursement accounts with banks designated
as depositories in accordance with the provisions of this section.
No state officer or employee shall make or cause to be made any
deposits of state funds in banks not so designated.
§12-1-4. Bonds to be given by depositories.
Before allowing any money to be deposited with any eligible
depository in excess of the amount insured by an agency of the
federal government, the
board of investments state treasurer shall
require such depository to give a collaterally secured bond, in the
amount of not less than ten thousand dollars, payable to the state
of West Virginia, conditioned upon the prompt payment, whenever
lawfully required, of any state money, or part thereof, that may be
deposited with such depository, or of any accrued interest on
deposits. Such bond shall be a continuous bond but may be
increased or decreased in amount or replaced by a new bond with the approval of the
board of investments state treasurer. The
collateral security for such bond shall consist of bonds of the
United States, of the federal land banks, of the federal home loan
banks, or bonds of the state of West Virginia or of any county,
district or municipality of this state, or other bonds or
securities approved by the
board of investments treasurer. All
bonds so secured are here designated as collaterally secured bonds.
Withdrawal or substitution of any collateral pledged as security
for the performance of the conditions of such bond may be permitted
with the approval in writing of the
state board of investments
treasurer. All depository bonds shall be recorded by the
board of
investments treasurer in a book kept in
its his or her office for
the purpose, and a copy of such record, certified by
the board of
investments him or her, shall be prima facie evidence of the
execution and contents of such bond in any suit or legal
proceeding. All collateral securities shall be delivered to or
deposited for the account of the
board of investments treasurer of
the state of West Virginia, and in the event said securities are
delivered to the
board of investments treasurer,
it he or she
shall furnish a receipt therefor to the owner thereof. The
board
of investments treasurer and
its his or her bondsmen shall be
liable to any person for any loss by reason of the embezzlement or
misapplication of said securities by the
board of investments
treasurer or any of
its his or her employees, and for the loss thereof due to
the board of investments' his or her negligence or
the negligence of
its his or her employees; and such securities
shall be delivered to the owner thereof when liability under the
bond which they are pledged to secure has terminated. The
board of
investments treasurer may permit the deposit under proper receipt
of such securities with one or more banking institutions within or
outside the state of West Virginia and may contract with any such
institution for safekeeping and exchange of any such collateral
securities, and may prescribe the rules and regulations for
handling and protecting the same.
§12-1-5. Limitation on amount of deposits.
The amount of state funds on deposit in any depository in
excess of the amount insured by an agency of the federal government
shall not exceed ninety percent of the value of collateral pledged
on the collaterally secured bond given by such depository. The
value of such collateral shall be determined by the
board of
investments treasurer.
§12-1-7. Rules and regulations of the state treasurer;
depositors, agreements.
In addition to rules and regulations specially authorized in
this article, the board of investments
and state treasurer are
generally authorized to promulgate any rules
and regulations it
deems necessary to protect the interests of the state, its
depositories and taxpayers. All rules
and regulations promulgated
by the board shall be subject to the provisions of article three,
chapter twenty-nine-a of this code. Any rules
and regulations
previously established by the board of public works
, the board of
investments or the state treasurer pursuant to this article shall
remain in effect until amended, superseded or rescinded
. by the
board of investments.
The
board of investments treasurer is also authorized to enter
into any depositors' agreements for the purpose of reorganizing or
rehabilitating any depository in which state funds are deposited,
and for the purpose of transferring the assets, in whole or in
part, of any such depository to any other lawful depository when,
in the judgment of the
board treasurer, the interests of the state
will be promoted thereby, and upon condition that no right of the
state to preferred payment be waived.
§12-1-8. Conflict of interest.
No depository in this state may serve or be eligible for
designation as a state depository if any member of the board of
investments,
or employee of the treasurer's office, or a spouse,
child or parent of such member
or employee, is an officer, director
or employee thereof, or owns, either in his or their own name or
beneficially, an interest in such depository. A member of the
board
or employee of the treasurer's office shall disclose such
circumstance, if any, in the sworn statement required under the
provisions of section one, article one, chapter six-b of this code.
§12-1-9. Transfer of funds by check or electronic funds transfer
bank wire; requirements.
Subject to applicable banking regulations or state law, the
treasurer or the state board of investments may transfer funds by
check or
bank wire electronic funds transfer whenever actually
needed to pay the warrants drawn by the auditor upon the treasury,
to equalize deposits or to provide funds to purchase investments
for the account of the state. All checks drawn for transfer of
funds shall have printed or stamped on the face of same "for
transfer of funds only", or if the transfer is made by
wire
electronic funds transfer, the
bank wire electronic funds transfer
and supporting documents shall be marked "for transfer of funds
only".
§12-1-10. The treasurer to keep accounts with depositories;
settlements with depositories; statements of
depository balances; reconciliation of statements and
records.
The
state board of investments shall keep in its office
treasurer shall keep in his office or her office a record showing
the account of each depository. Under the account of each
depository entry shall be made showing the amount and date of each
deposit, the amount and date of each withdrawal and the balance on
deposit. The
board of investments treasurer shall cause the state's
account with each depository to be settled at the end of every month of the year and the balance in the depository to the credit
of the
board of investments treasury to be carried forward to the
account of the next month.
All the statements and records shall be reconciled monthly and
the reconciled reports shall be kept in the
board of investments'
treasurer's office. The reconciled records for each month shall be
kept in the
board of investments' treasurer's office for a period
of five years.
§12-1-11. Reports by depositories to treasurer; discontinuance of
depositories.
Each depository of state funds shall at the end of each
quarter cause its president or cashier to report to the
board of
investments treasurer the amount of state funds on deposit and such
report shall be verified by the affidavit of the officer making it.
The form and contents of such report shall be prescribed by the
board treasurer. For the failure to file such report, or for
other good cause, the
board treasurer may discontinue any
depository as an eligible depository and cause all state funds to
be withdrawn from any depository or depositories so discontinued.
When a depository is discontinued, the
board of investments
treasurer shall immediately notify such depository of its
discontinuance, and shall
also issue its order to the treasurer,
directing him immediately
to withdraw by current checks or by
transfer to another depository or depositories the full amount of the deposits held by any depository so discontinued. After such
discontinuance it shall be unlawful for the treasurer to deposit
any state funds in any depository so discontinued until such time
as the depository may be reinstated to eligibility.
§12-1-12. When treasurer shall make funds available to the board
of investments; depositories outside the state.
When the funds in the treasury exceed the amount needed for
current operational purposes, as determined by the
board of
investments treasurer, the treasurer shall make all of such excess
available for investment by the board of investments, which shall
invest the same for the benefit of the general revenue fund.
Whenever the funds in the treasury exceed the amount for which
depositories within the state have qualified, or the depositories
within the state which have qualified are unwilling to receive
larger deposits, the board of investments may designate
depositories outside the state, disbursement accounts being bid for
in the same manner as required by depositories within the state,
and when such depositories outside the state have qualified by
giving the bond prescribed in section four of this article, the
state treasurer shall deposit funds therein in like manner as funds
are deposited in depositories within the state under this article.
The
treasurer or board of investments may transfer funds to
banks outside the state for investment purposes or to meet
obligations to paying agents outside the state and any such transfer must meet the same bond requirements as set forth in this
article.
§12-1-13. Payment of banking services and litigation costs for
prior investment losses.
(a)The
treasurer and the board of investments
is are
authorized to pay for banking services, and services ancillary
thereto, by either a compensating balance in a noninterest-bearing
account maintained at the financial institution providing the
services or with a state warrant as described in section one,
article five of this chapter.
(b)The board of investments is authorized to pay for the
investigation and pursuit of claims against third parties for the
investment losses incurred during the period beginning on the first
day of August, one thousand nine hundred eighty-four, and ending on
the thirty-first day of August, one thousand nine hundred eighty- nine. The payment may be in the form of a state warrant.
(c)If payment is made by a state warrant, the board of
investments is authorized to establish within the consolidated fund
an investment pool which will generate sufficient income to pay for
all banking services provided to the state and to pay for the
investigation and pursuit of the prior investment loss claims. All
income earned by the investment pool shall be paid into a special
account of the
board of investments state treasurer to be known as
the banking services account and shall be used solely for the purpose of paying for all banking services and services ancillary
to the banking services provided to the state,
and for the
investigation and pursuit of the prior investment loss claims
,
amortize the balance in the investment imbalance fund, and for
investment advisory services.
ARTICLE 2. PAYMENT AND DEPOSIT OF TAXES AND OTHER AMOUNTS DUE THE
STATE OR ANY POLITICAL SUBDIVISION.
§12-2-2. Itemized record of moneys received for deposit;
regulations governing deposits; credit to state fund;
exceptions.
(a)All officials and employees of the state authorized by
statute to accept moneys due the state of West Virginia shall keep
a daily itemized record of such moneys so received for deposit in
the state treasury and shall deposit within twenty-four hours with
the state
board of investments treasurer all moneys received or
collected by them for or on behalf of the state for any purpose
whatsoever.
The treasurer shall be authorized to review the
procedures and methods used by officials and employees authorized
to accept moneys due the state and change such procedures and
methods if he or she determines it to be in the best interest of
the state: Provided, That the treasurer shall not be authorized to
review or amend the procedures by which the department of tax and
revenue accept moneys due the state. The treasurer
and the board
of investments shall promulgate rules and regulations, in accordance with the provisions of
article three, chapter twenty
nine-a of this code governing the procedure for
such deposits.
The official or employee making such deposits with the
state
board of investments treasurer shall prepare such deposit lists in
such the manner and upon
such report forms as may be prescribed by
the
board of investments treasurer.
Once the board has satisfied
itself that all deposits have been promptly prepared and deposited,
it shall transfer all such funds to a special bank account of the
state treasurer and provide him with such deposit report. The
original. of this report shall accompany the deposit to the
treasurer. Certified or receipted copies shall be immediately
forwarded by the state treasurer to the state auditor and to the
secretary of administration.
, and a copy shall be provided to the
board of investments. The original of the deposit report shall
become a part of the treasurer's permanent record.
(b)
When so paid, such All moneys received by the state from
appropriations made by the congress of the United States shall be
recorded in special fund accounts, in the state treasury apart from
the general revenues of the state, and shall be expended in
accordance with the provisions of article eleven, chapter four of
this code. All moneys
other than federal funds, defined in section
two, article eleven, chapter four of this code, shall be credited
to the state fund and treated by the auditor and treasurer as part
of the general revenue of the state:
Provided, That all moneys received out of appropriations made by the Congress of the United
States shall be recorded in special fund accounts, apart from the
general revenues of the state, in the state treasury and all such
moneys shall not be used for any purpose whatsoever unless and
until authorized and directed by the Legislature, excepting except
the following funds which shall be recorded in separate accounts:
(1)All funds excluded by the provisions of section six,
article eleven, chapter four of this code;
(2)All funds derived from the sale of farm and dairy
products from farms operated by any agency of the state government
other than the farm management commission;
(3)All endowment funds, bequests, donations, executive
emergency funds, and death and disability funds;
(4)All fees and funds collected at state educational
institutions for student activities;
(5)All funds derived from collections from dormitories,
boardinghouses, cafeterias and road camps;
(6)All moneys received from counties by institutions for the
deaf and blind on account of clothing for indigent pupils;
(7)All insurance collected on account of losses by fire and
refunds;
(8)All funds derived from bookstores and sales of blank
paper and stationery, and collections by the chief inspector of
public offices;
(9)All moneys collected and belonging to the capitol
building fund, state road fund, state road sinking funds, general
school fund, school fund, state fund (moneys belonging to counties,
districts and municipalities) , state interest and sinking funds,
state compensation funds, the fund maintained by the public service
commission for the investigation and supervision of applications,
and all
funds and moneys payable to or received by the natural
resources commission of West Virginia and moneys collected and
received by the division of natural resources pursuant to article
two, article two-a and article two-b, chapter twenty of this code;
fees, money, interest or funds arising from the sales of all
permits and licenses to hunt, trap, fish or otherwise hold or
captive fish and wildlife resources and money reimbursed and
granted by the federal government for fish and wildlife
conservation;
(10)All moneys collected or received under any act of the
Legislature providing that funds collected or received thereunder
shall be used for specific purposes.
(c)All moneys, excepted as provided in subdivisions one
through nine, inclusive, of subsection (b) of this section, shall
be paid into the state treasury in the same manner as collections
not so excepted, and shall be recorded in separate accounts to be
used and expended only for the purposes for which the same are
authorized to be collected by law:
Provided, That amounts collected pursuant to subdivision ten, subsection (b) of this section, which
are found from time to time to exceed funds needed for the purposes
set forth in general law may be transferred to other accounts or
funds and redesignated for other purposes by appropriation of the
Legislature. The gross amount collected in all cases shall be paid
into the state treasury, and commissions, costs and expenses of
collection authorized by general law to be paid out of the gross
collection,
including bank and credit or check card fees, are
hereby authorized to be paid out of the moneys collected and paid
into the state treasury in the same manner as other payments are
made from the state treasury.
(d)The state
board of investments treasurer shall have
authority to establish an imprest fund or funds in the office of
any state agency or institution making proper application to the
treasurer board. To implement this authority the
board treasurer
shall promulgate rules
and regulations, in accordance with the
provisions of
article three, chapter twenty nine-a of this code.
The
board treasurer or
its his designee shall annually audit all
such funds and prepare a list of all such funds showing the
location and amount as of fiscal year end, retaining such list as
a permanent record of the
board treasurer until
such time as the
legislative auditor shall have completed an audit of the imprest
funds of all agencies and institutions involved.
(e)The treasurer shall be authorized to develop and implement a centralized receipts processing center. The treasurer
may request the transfer of equipment and personnel from
appropriate state agencies to the centralized receipts processing
center in order to implement the provisions of this subsection:
Provided, That the governor or appropriate constitutional officer
shall have final authority to authorize the transfer of equipment
or personnel to the centralized receipts processing center from the
respective agency.
§12-2-3. Deposit of moneys by state officials and employees.
All officials and employees of the state authorized by statute
to accept moneys due the state of West Virginia shall deposit such
moneys in such manner as the
board of investments treasurer shall
direct and shall promptly transmit or cause to be transmitted such
deposits, together with a certificate of deposit, as soon as
practicable to the depository in which they desire to make the
deposit, and shall retain and record the deposit lists.
All
officials and employees of the state authorized to accept moneys
that they have determined are not funds due the state pursuant to
the provisions of section two, of this article, shall request the
treasurer to approve the deposit of such funds into an approved
depository. The request shall be made on forms and in accordance
with procedures as the treasurer shall establish. No funds shall
be deposited until the written approval of the treasurer is
obtained. The treasurer shall be the final determining authority as to whether these funds are funds due or not due the state
pursuant to section two of this article. The treasurer shall on a
quarterly basis provide the legislative auditor with a report of
all such accounts approved by him.
§12-2-4. Duty of depositories.
Immediately upon the receipt of
such a deposit
from the state,
it shall be the duty of the depository to credit the
state board of
investments treasurer with the amount of the deposit, to date and
sign the certificate of deposit by some legally constituted
official of the depository and promptly transmit
such the
certificate to the
state board of investments treasurer.
§12-2-5. Deposits in correspondent banks of state depositories.
When any payment of money has been made to the state for road
bonds or other purposes outside of the state, the
board of
investments treasurer shall have has the authority to place the
same to the credit of one or more state depositories in one or more
of its correspondent banks located within or without the state.
The
board of investments treasurer shall, upon making such a
deposit in
such the correspondent bank, secure from it a proper
certificate of deposit certifying the amount and the name of the
state depository to whose credit the deposit was made by the
board
of investments treasurer. The
board of investments treasurer shall
forward a copy of
such the certificate to the state depository
receiving
such the deposit through its correspondent bank, and it shall be the duty of such
the depository immediately to issue to
the state of West Virginia a proper certificate of deposit for the
amount
so deposited, dated the same day the deposit was made in
such the correspondent bank. Before making
such the deposit
however, the board of investments the treasurer shall secure
written authority from
such the depository, designating the name
and address of its correspondent bank or banks in which deposits
are to be made and the maximum amount to be deposited in each. The
depository bonds of all state depositories
so authorizing and
receiving
such the deposits in their correspondent banks shall be
liable for
such the deposits the same as if the deposits had been
made with them directly, whether
such the bonds are so conditioned
or not, and all depository bonds hereafter issued shall so provide.
ARTICLE 3. APPROPRIATIONS, EXPENDITURES AND DEDUCTIONS.
§12-3-1. Manner of payment from treasury; form of checks.
Every person claiming to receive money from the treasury of
the state shall apply to the auditor for a warrant for same. The
auditor shall thereupon examine the claim, and the vouchers,
certificates and evidence, if any, offered in support thereof, and
for so much thereof as he or she finds to be justly due from the
state, if payment thereof is authorized by law, and if there is an
appropriation not exhausted or expired out of which it is properly
payable, the auditor shall issue his or her warrant on the
treasurer, specifying to whom and on what account the money mentioned therein is to be paid, and to what appropriation it is to
be charged. The auditor shall present to the
board of investments
treasurer daily reports on the number of warrants issued, the
amounts of the warrants and the dates on the warrants for the
purpose of effectuating the investment policy of the board of
investments. On the presentation of the warrant to the treasurer,
the treasurer shall ascertain whether
the warrant has been drawn in
pursuance of an appropriation made by law there are sufficient
funds in the treasury to pay that warrant, and if he or she finds
it to be so, he or she shall in that case, but not otherwise,
endorse his or her check upon the warrant, directed to some
depository, which check shall be payable to the order of the person
who is to receive the money therein specified; or the treasurer may
issue
a bank wire an electronic funds transfer in payment of the
warrant. If the check is not presented for payment within six
months after it is drawn, it shall then be the duty of the
treasurer to credit it to the depository on which it was drawn, to
credit the
state fund with the amount unclaimed property fund
pursuant to the provisions of article eight, chapter thirty-six of
this code, and immediately notify the auditor to make corresponding
entries on the auditor's books. No state depository may pay a
check unless it is presented within six months after it is drawn
and every check shall bear upon its face the words, "Void, unless
presented for payment within six months." All claims required by law to be allowed by any court, and payable out of the state
treasury, shall have the seal of the court allowing or authorizing
the payment of the claim affixed by the clerk of the court to his
or her certificate of its allowance; and no
such claim may be
audited and paid by the auditor unless the seal of the court is
thereto attached as aforesaid. No tax or fee may be charged by the
clerk for affixing his or her seal to the certificate, referred to
in this section. The treasurer
and the board of investments shall
jointly promulgate rules in accordance with the provisions of
article three, chapter twenty-nine-a of this code governing the
procedure for such payments from the treasury.
§12-3-1a. Payment by deposit in bank account.
The
treasurer auditor may
issue his warrant on the treasurer
to pay any person claiming to receive money from the treasury by
deposit to
such a person's account in any bank or other financial
institution
within the state authorized to receive deposits by
electronic funds transfer, if
such the person furnishes to the
treasurer auditor written authorization of such method of payment.
After the authorization has been approved by the auditor, it shall
be forwarded to the treasurer for further processing. The
treasurer auditor shall prescribe the form of such authorization.
This section shall not be construed to require the
treasurer
auditor to utilize the method of payment authorized by this
section; but such method is authorized only as an alternative method of payment to persons claiming to receive money from the
treasury. A written authorization furnished pursuant to this
section may be revoked by written notice furnished to the
treasurer
auditor.
Upon the execution of such authorization and its receipt
by the office of the auditor, the payment shall be made in the
manner specified on the form and remitted by the treasurer to the
designated bank or other financial institution. Provided, That
after the first day of July, two thousand two, the state auditor
shall cease issuing paper warrants except for income tax refunds.
After that date all warrants, except for income tax refunds, shall
be issued by electronic funds transfer. However, this provision
shall not prevent the auditor, in his or her discretion, from
issuing paper warrants on an emergency basis.
§12-3-1b. Voluntary direct deposits by auditor treasurer of
salaries of employees to banks or other financial
institutions.
Any officer or employee of the state of West Virginia may
authorize that his net wages be deposited directly to his account
in any bank or other financial institution
within this state by
electronic funds transfer. The direct deposits may be authorized
on a form provided by the
treasurer auditor. Upon execution of
such authorization and its receipt by the office of the
treasurer
auditor, the direct deposits shall be made in the manner specified
on the form and remitted
by the treasurer to the designated bank or other financial institution on or before the day or days the
officer or employee is due his net wages. Direct deposit
authorizations may be revoked at any time thirty days prior to the
date on which the direct deposit is regularly made and on a form to
be provided by the
office of the treasurer auditor: Provided, That
on and after the first day of July, two thousand two, at the option
of the auditor, all wages shall be deposited directly into the
employees' account at any bank or financial institution via
electronic funds transfer.
§12-3-4. No check to be drawn on depository having insufficient
funds; necessity of warrant and check or electronic
funds transfer.
The treasurer shall draw no check on any depository unless
there be money enough therein to the credit of the treasury to pay
such check when duly presented for payment. No depository holding
money to the credit of the treasury shall pay out the same, or any
part thereof, except upon a check of the treasurer endorsed on a
warrant of the auditor authorizing such check or a duly authorized
bank wire electronic funds transfer drawn in place of such check.
§12-3-10a. Purchasing card program.
Notwithstanding the provisions of section ten of this article,
payment of claims may be made through the use of the state
purchasing card program authorized by the provisions of this
section. The auditor
in cooperation with the secretary of the department of administration may establish a state purchasing card
program for the purpose of authorizing all spending units of state
government to use a purchasing card as an alternative payment
method when making small purchases. The purchasing card program
shall be conducted so that procedures and controls for the
procurement and payment of goods and services are made more
efficient. The program shall permit spending units to use a
purchase charge card to purchase goods and services. The amount of
any one purchase made with the purchase charge card shall not
exceed
five hundred dollars the amount contained in the jointly
proposed rules of the auditor and the purchasing division of the
department of administration promulgated in accordance with the
provisions of article three, chapter twenty-nine-a of the code of
West Virginia:
Provided, That purchasing cards may not be utilized
for the purpose of obtaining cash advances, whether the advances
are made in cash or by other negotiable instrument. Purchases of
goods and services must be received either in advance of or
simultaneously with the use of a state purchasing card for payment
for those goods or services. The auditor, by legislative rule, may
eliminate the requirement for vendor invoices and provide a
procedure for consolidating multiple vendor payments into one
monthly payment to a charge card vendor. Selection of a charge
card vendor to provide state purchase cards shall be accomplished
by competitive bid. The purchasing division of the department of administration shall contract with the successful bidder for
provision of state purchase charge cards. Purchase charge cards
issued under the program shall be used for official state purchases
only. The auditor and the director of the purchasing division of
the department of administration shall jointly propose rules for
promulgation in accordance with the provisions of article three,
chapter twenty-nine-a of this code to govern the implementation of
the purchase card program.
§12-3-10c. Transaction fees; disposition of fees.
(a) In order to promote and enhance the use of the state
purchasing card program established by the provisions of section
ten-a of this article and in order to maintain and develop the
fiscal operations and accounting systems of the state, the auditor
and the treasurer may assess joint transaction fees for all
financial documents that will be processed on the central
accounting system. Such transaction fees shall be prescribed by
legislative rule promulgated in accordance with article three,
chapter twenty-nine-a of this code and may include the following:
(1) A penalty fee assessed against spending units of state
government who submit claims for payment of goods and services when
such claims are authorized to be paid by use of a state purchasing
card and the spending unit has failed to utilize the state
purchasing card; and
(2) A transaction fee to be assessed against spending units of state government for every transaction received, electronically
or otherwise, by the auditor from the centralized accounting
system.
(b) All fees collected under this section shall be deposited
into the technology support and acquisition fund which is hereby
created in the state treasury and to be administered by the
auditor. The auditor and treasurer shall use such funds to
maintain and develop the state purchasing card program, support the
fiscal operations including the state centralized accounting
system, and to acquire and improve the technology required to
support these functions: Provided, That expenditures from the
fund are authorized from collections and are to be made only in
accordance with an appropriation by the Legislature and in
accordance with the provision of article three of this chapter and
upon fulfillment of the provisions set forth in article two,
chapter five-a of this code.
§12-3-10d. Purchasing card fund created; expenditures.
All money received by the state pursuant to any agreement with
vendors providing purchasing charge cards shall be deposited in a
special revenue revolving fund designated the purchasing card
administration fund, which is hereby created in the state treasury
to be administered by the department of administration. All
expenses of the purchasing division of the department of
administration incurred in the implementation and operation of the purchasing card program shall be paid from the fund. Expenditures
from the fund shall be made in accordance with appropriations by
the Legislature pursuant to provisions of article three, chapter
twelve of this code and upon fulfillment of the provisions of
article two, chapter five-a of this code. Amounts collected which
are found from time to time to exceed the funds needed to
effectuate the purposes set forth in this section may be
transferred to other accounts or funds and redesignated for other
purposes upon appropriation by the Legislature.
§12-3-13b. Voluntary deductions by state auditor from salaries of
employees to pay association dues or fees and to pay supplemental
health and life insurance premiums.
Any officer or employee of the state of West Virginia may
authorize that a voluntary deduction from his net wages be made for
the payment of membership dues or fees to an employee association.
Voluntary deductions may also be authorized by an officer or
employee for any supplemental health and life insurance premium,
subject to prior approval by the auditor. Such deductions shall be
authorized on a form provided by the auditor of the state of West
Virginia and shall state (a) the identity of the employee; (b) the
amount and frequency of such deductions; and (c) the identity and
address of the association or insurance company to which such dues
shall be paid. Upon execution of such authorization and its
receipt by the office of the auditor, such deductions shall be made in the manner specified on the form and remitted to the designated
association or insurance company on the tenth day of each month:
Provided, That voluntary other deductions, as approved and
authorized by the auditor, may be made in accordance with rules and
regulations promulgated by the auditor pursuant to article three,
chapter twenty-nine-a of this code, Provided, further, That such
deductions shall be made either once or twice monthly at the option
of the employee. Deduction authorizations may be revoked at any
time thirty days prior to the date on which the deduction is
regularly made and on a form to be provided by the office of the
state auditor:
Provided, however, That nothing in this section
shall interfere with or remove any existing arrangement for dues
deduction between an employer or any political subdivision of the
state and its employees.
ARTICLE 4. ACCOUNTS, REPORTS AND GENERAL PROVISIONS.
§12-4-2. Accounts of treasurer and auditor; auditor to certify
condition of revenues and funds of the state.
The treasurer shall keep in his office separate accounts with
each depository, and also a
general summary account
of receipts and
disbursements for the state, and when money is paid into the
treasury, it shall be charged to the proper depository and credited
to
such a general summary account. The auditor shall keep in his
office separate accounts of the particular heads or sources of
revenue, and a
general summary account with the treasurer, beside such individual accounts with officers and persons as may be
necessary, and shall charge every sum of money received for the
state as aforesaid to the treasurer's account, and credit it under
the particular head of revenue to which it properly belongs,
distinguishing especially in distinct accounts the receipts on
account of the capital of the school fund and those on account of
the income of said fund subject to annual distribution. The
auditor shall certify annually to the commissioner of finance and
administration the condition of the state revenues and the several
funds of the state.
Such The certification shall be used by the
commissioner in the preparation of a tentative state budget as
required of him by article two, chapter five-a of this code.
§ 12-4-3. Accounts of appropriations.
The auditor and
treasurer secretary of administration shall
each keep
in books, to be used for that purpose exclusively, an
account of every appropriation made by law, and of the several sums
drawn thereon, so that
such books the accounts may show at all
times the balance undrawn on each appropriation. The account so
kept shall be compared every
quarter month and errors, if any,
corrected.
§ 12-4-3a. Accounts of the auditor.
The auditor shall at all times maintain and have available for
public inspection a report containing monthly balances in the
treasury, which balances shall include, but not be limited to,
general revenue surplus balance; general revenue surplus
appropriation account balance; state general revenue reappropriated
account balance; state general revenue current account balance;
total state account balance; and total general revenue.
§12-4-4. Accounts of expenditures; signing of checks and
warrants; facsimile signatures and use of mechanical
and electrical devices; forgery; penalty.
When the treasurer issues his check on a depository, he shall
credit the same to the account of
such the depository, and charge
it to the
general summary account
of receipts and disbursements
mentioned provided for in section two of this article. The auditor
shall keep accounts of the particular heads of expenditures, and,
when he
or she issues
his a warrant on the treasurer, shall credit
the treasurer's
summary account therewith and charge the same under
the particular head of expenditure to which it properly belongs,
distinguishing especially the disbursements on account of the
capital and the annual income of the school fund, as directed in
section two of this article in relation to receipts belonging to
the said that fund. All checks when issued by the treasurer shall
bear his
or her signature, personally signed by
him the treasurer,
or by such employees as are, in writing, authorized by
him the
treasurer to make his
or her signature thereto, or bear a facsimile
of the treasurer's signature; all warrants when issued by the
auditor shall bear his
or her signature, personally signed by
him the auditor, or by such employees as are, in writing, authorized by
him the auditor to make his
or her signature thereto, or bear a
facsimile of the auditor's signature. Such signature of the
treasurer, or auditor, respectively, may be made, however, by means
of such mechanical or electrical device as the treasurer, or
auditor, respectively, may select
., after the same shall have been
approved by the governor and the attorney general; any such Any
mechanical or electrical device,
as respectively selected
, to shall
be safely kept in
their the respective offices
of the treasurer or
auditor so that no one shall have access thereto except the
treasurer, or the auditor, and
such of their respective the
employees
as may be authorized to respectively sign checks or
warrants as
hereinabove provided
by this section. If any person,
other than the treasurer, or auditor, respectively, or their
respective employees duly and respectively authorized by them so to
do, as above provided, shall sign the name of the treasurer or the
auditor, respectively, by the use of any mechanical or electrical
device, or otherwise, or use the facsimile of the signature of
either of them, on any check or warrant, or utter or attempt to
employ as true such forged check or warrant, knowing
the same it to
be forged, he shall be guilty of a felony, and upon conviction
shall be confined in the penitentiary not less than two nor more
than ten years.
§12-4-6. Comparison of books of auditor and treasurer; monthly balances.
At the end of every
quarter month of the year, the
general
summary account of the treasurer kept on the books of the auditor's
office shall be compared with the
general summary account
of
receipts and disbursements kept by the treasurer, and the errors,
if there be any in either, corrected
., the The receipts and
disbursements summary account of the
quarter month shall be
adjusted
and ascertained, and a balance
shall be struck showing the
amount then in the treasury
,. which The balance shall be carried
forward in the books of both offices to the account for the next
quarter month.
§12-4-7. Annual report of auditor.
The annual report of the auditor shall be furnished to the
governor
within one week by the thirty-first day of December
following after the end of the fiscal year. It shall contain a
statement of the receipts and disbursements, under the proper
general heads, during the preceding fiscal year, and show the
balance in the treasury at the beginning and end of that year. It
shall also contain an estimate of the revenue and expenditures for
the current year, with similar statements and estimates respecting
the school fund. It shall show the indebtedness of the state and
the balances standing at the end of the year to the credit of the
several unexpired appropriations, specifying in each case the date
when the appropriation was made. The report shall be accompanied with
such remarks as may serve to explain an explanation of the
amounts of receipts and disbursements and the balances and
estimates reported. In it the auditor shall point out any defects
which may occur to him
or her in the revenue laws
. and Furthermore,
the auditor shall suggest the
proper remedies
for those deficits.
, and if, in his If the auditors is of the opinion,
that the future
revenue
be is likely to prove insufficient,
he then the auditor
shall recommend plans for increasing the revenue and suggest
such
new subjects of taxation, or
such additional taxes on the old, as
he may deem proper.
§12-4-8. Office hours of auditor and treasurer.
The hours for transacting business in the offices of the
auditor and treasurer shall be from
nine eight-thirty in the
morning until five o'clock in the afternoon.
12-4-8a. Employment of legal counsel.
Notwithstanding the provisions of section two, article three,
chapter five of this code, the auditor and treasurer are hereby
authorized to employ legal counsel: Provided, That the auditor and
the treasurer, at their discretion, may use the services of the
attorney general.
§12-4-9. Absence of auditor or treasurer.
When it is necessary for either
of the said officers the
auditor or treasurer to be absent, the other shall be informed of
the absence. During
such the absence, the duties of the officer so absent may be performed by the
chief clerk in his office. auditor's
or treasurer's designee respectively. But if such absence be for
more than a day at any one time, the governor may appoint a proper
person to discharge the duties of such officer during his absence.
In either case the, The absent officer and his sureties shall be
liable for any malconduct or neglect of the
chief clerk or person
so acting in his
or her place.
Notwithstanding restrictions which may otherwise be provided
by law concerning membership on any board, agency or commission,
the auditor and treasurer each may designate a representative who
is authorized to act for and on their behalf in any and all matters
relating to
such those memberships.
ARTICLE 5. PUBLIC SECURITIES.
§12-5-2. Treasurer custodian of securities; charges to companies
for care, exchange and substitution of securities.
The treasurer of this state, unless otherwise expressly
provided by law, shall be custodian of all securities required by
law to be deposited with the state or held in legal custody by the
state, and all departments of this state, commissioners or agents
of the state, who hold any such securities, shall transfer and
deliver the same to the state treasurer to be kept and held by him
as legal custodian thereof until released in the manner provided by
law
.: Provided, That the state treasurer shall establish a list of
which securities shall be acceptable securities and notify all state agencies of the contents of that list.
The board of investments treasurer may by formal order
of record fix fair and reasonable charges for the care, custody,
exchange and substitution of securities deposited by insurance
companies and companies issuing annuity contracts. and such
charges shall be collected from such companies by the state
treasurer and deposited by him The treasurer shall collect the
charges from the companies and shall deposit the collections in the
general revenue fund: Provided, That no such charge shall be made
against any such company having depositing securities of the par
value of less than three hundred thousand dollars. deposited
hereunder.
§12-5-4. Treasurer to keep accounts and make collections.
It shall be the duty of the treasurer and the board of
investments to keep an accurate account of all securities received
by them respectively him or her and collect and account for the
interest as the same it becomes due and payable and the principal
whenever same is due.
§12-5-5. Protection and handling of securities.
The securities retained in the treasury shall be kept in a
vault. The treasurer shall use due diligence in protecting the
securities against loss from any cause. The treasurer shall
designate certain employees to take special care of the securities.
Only the treasurer and the designated employees may have access to such the securities, and at least two of these persons shall be
present whenever the securities are handled in any manner. The
treasurer may, with the approval of the board of investments,
contract with one or more banking institutions in or outside the
state for the custody, safekeeping and management of such
securities, which contract shall prescribe the rules for the
handling and protection thereof.
§12-5-6. When notes deemed securities; appraisal.
(a)Whenever, by statute of this state, any public
official, board, commission or department of this state is charged
with the approval of securities required as collateral for the
deposit of public or other funds, or required to be deposited with
the state treasurer, or board of investments or an investment of
capital or surplus or a reserve or other fund, is required to be
maintained consisting of designated securities deposited with the
board of investments state treasurer, such the securities shall, at
the discretion of such that public official, board, commission or
department, be deemed to include and mean notes executed by the
person or corporation required to make such the deposit and made
payable to the state of West Virginia upon demand, in the event of
the person or corporation, for the benefit of those for whom such
securities are deposited, when such the notes are secured by duly
executed deeds of trust on improved, unencumbered real property
located in the state and owned by the person or corporation executing such the notes, said the deeds of trust to be approved by
the attorney general of the state as to sufficiency of form and
manner of execution and accompanied by proper abstracts of title
and fire insurance policies equal to the amounts of such the notes
and recorded among the land records of the county in which the real
property is located: Provided, That whenever any such note so
secured by a deed of trust on real property owned by any such
person or corporation is approved by any public official, board,
commission or department of this state, the real property shall
have an appraised value of at least thirty per centum more than the
amount of such the note, said the value to be determined by an
appraisal of two landowners, who are citizens of this state and
generally recognized as experienced real estate appraisers,
appointed by the public official, board, commission or department,
charged with the approval of such the securities, the expenses of
such the appraisal to be borne by the person or corporation
required to make such the deposit, and each unit of such that real
property shall have an appraised value of at least fifty thousand
dollars.
By For purposes of this section, "improved real property" as
used herein is meant means all real property within the limits of
an incorporated city or town on which permanent buildings suitable
for residential, industrial or commercial use are located.
Real For purposes of this section, real property, for purposes hereof, shall not be deemed to be encumbered by reason of the
existence of instruments reserving rights-of-way, sewer rights and
rights in walls, nor by reason of building restrictions or other
restrictive covenants, nor by reason of the fact that it, or any
part thereof, is subject to lease under which rents or profits are
reserved to the owner: Provided, That the deed of trust for such
investment is a full and unrestricted first lien upon such
property.
(b)Any such public official, board, commission or
department of this state charged with the approval of securities
required to be deposited as aforesaid in accordance with this
section, shall, at least annually and oftener more often if deemed
proper, appoint a disinterested person or persons, not exceeding
three, to make an examination and appraisal of the securities so
deposited to determine if such those securities meet the
requirements of the law of this state., and the The cost of such
that examination and appraisal not less than ten dollars nor more
than twenty-five dollars per diem for each person, and expenses,
shall be borne by the person or corporation required to make such
the deposits as security: Provided, That the total cost and
expenses shall not be less than ten dollars nor more than twenty- five dollars per diem for each person conducting the examination.
§12-5-7. Treasurer as financial advisor; selection of necessary
parties; employment of bond counsel.
Unless otherwise specifically provided by law, the treasurer
may select or serve as financial advisor for all bonds, notes,
certificates of participation, certificate transactions and all
other forms of securities and indebtedness issued by the state
through its departments, commissions, boards or agencies. Through
the department of administration, the governor shall coordinate the
issuance of all bonds issued by the state and its departments,
commissions, boards and agencies, and shall select all other
necessary parties, including, but not limited to bond, disclosure
or other counsel, underwriters, trustee, verification agent and any
other professionals necessary to effectuate the issuance of the
bonds: Provided, That this section shall not apply to the housing
development fund created pursuant to article eighteen, chapter
thirty-one of this code, and the hospital finance authority created
pursuant to article twenty-nine-a, chapter sixteen of this code.
All selections of professionals shall be competitive, but the
bidding shall not be required to comply with the provisions of
article three, chapter five-a of this code.
ARTICLE 6. WEST VIRGINIA STATE BOARD OF INVESTMENTS.
§12-6-1a. Legislative findings.
The Legislature finds and declares that teachers and other
public employees throughout the state are experiencing economic
difficulty and that in order to reduce this economic hardship on
these dedicated public employees, and to help foster sound financial practices, the state board of investments is given the
authority to develop, implement and maintain an efficient and
modern system for the collection, disbursement, investment and
management of the state's money. The Legislature further finds
that in order to implement these sound fiscal policies, the board
of investments shall operate as an independent board with its own
full-time staff of financial professionals immune to changing
political climates, in order to provide a stable and continuous
source of professional financial management.
§12-6-4. Officers; executive secretary; term; organization; board
staff; surety bonds for members and employees.
(a)The governor shall be the chairman of the board and the
secretary of administration shall be his or her designee and the
treasurer shall be custodian of all funds, securities and assets
held by the board. In the absence of the governor, the treasurer
shall chair the board meetings. The board treasurer shall elect
employ an executive secretary: to serve for a term of six years,
such election to be held at the board's first meeting after the
first effective date of this article. Effective with any vacancy
in the position of executive secretary, the board shall appoint an
executive secretary to serve at the will and pleasure of the board,
which executive secretary may not be a member with the advice and
consent of the board: Provided, That the executive secretary shall
have at least a bachelor's degree in either business administration or accounting in an accredited program and/or have at least five
years' experience in investment management or securities markets,
said experience to have occurred within the ten years next
preceding the date of appointment of the selection as executive
secretary. : Provided, however, That the executive secretary may
be paid a salary as determined by the board out of appropriations
by the Legislature: Provided further, That the board The treasurer
shall appoint a staff to act for the board. The board may also
employ an internal auditor who shall report directly to the board.
The internal auditor shall be paid a salary as determined by the
board.
(b)The board shall meet quarterly the second Thursday of the
second month of each quarter and may include in its bylaws
procedures for the calling and holding of additional meetings.
(c)Each member of the board shall give a separate and
additional fidelity bond from a surety company qualified to do
business within this state in a penalty amount of two hundred fifty
thousand dollars for the faithful performance of his or her duties
as a member of the board. In addition, the board will purchase a
blanket bond for the faithful performance of its duties in the
amount of five million dollars excess of the two hundred fifty
thousand dollar individual bond required of each member by the
provisions of this section. The board may require a fidelity bond
from a surety company qualified to do business in this state for any person who has charge of, or access to, any securities, funds
or other moneys held by the board, and the amount of such fidelity
bond shall be fixed by the board. The premiums payable on all
fidelity bonds shall be an expense of the board.
§12-6-5. Powers of the board.
The board may exercise all powers necessary or appropriate to
carry out and effectuate its corporate purposes. The board may:
(1)Adopt and use a common seal and alter the same at
pleasure;
(2)Sue and be sued;
(3)Enter into contracts and execute and deliver instruments;
(4)Acquire (by purchase, gift or otherwise) , hold, use and
dispose of real and personal property, deeds, mortgages and other
instruments;
(5)Promulgate and enforce bylaws and rules for the
management and conduct of its affairs;
(6)Retain and employ legal, accounting, financial and
investment advisors and consultants;
(7)Acquire (by purchase, gift or otherwise), hold, exchange,
pledge, lend and sell or otherwise dispose of securities and invest
funds in interest earning deposits;
(8)Maintain accounts with banks, securities dealers and
financial institutions both within and outside this state;
(9)Engage in financial transactions whereby securities are purchased by the board under an agreement providing for the resale
of the securities to the original seller at a stated price;
(10)Engage in financial transactions whereby securities held
by the board are sold under an agreement providing for the
repurchase of the securities by the board at a stated price;
(11)Consolidate and manage moneys, securities and other
assets of the other funds and accounts of the state and the moneys
of political subdivisions which may be made available to it under
the provisions of this article;
(12)Enter into agreements with political subdivisions of the
state whereby moneys of the political subdivisions are invested on
their behalf by the board;
(13)Charge and collect administrative fees from political
subdivisions for its services;
(14)Exercise all powers generally granted to and exercised by
the holders of investment securities with respect to management of
the investment securities; and
(15)Contract with one or more banking institutions in or
outside the state for the custody, safekeeping and management of
securities held by the board. and
(16) Develop and implement a centralized receipts processing
center.
ARTICLE 6A. THE DEBT MANAGEMENT ACT OF 1991.
§12-6A-2. Legislative findings and declaration of public necessity.
(a)The Legislature hereby finds and declares that efficient
and effective state government requires the designation of an
authority having responsibility for procuring, maintaining and
reporting of pertinent information relating to the debt of the
state and its agencies, boards, commissions and authorities. In
addition to other duties and powers delegated to the state board of
investments by this article, the board The state treasurer shall
perform the functions and duties necessary to enable it to serve as
a central information source concerning the incurrence, recording
and reporting of debt issued by the state, its agencies, boards,
commissions and authorities.
(b)The Legislature hereby finds:
(1)The credit rating and acceptance of bonds, notes,
certificates of participation and other securities and indebtedness
of the state and its spending units have been unstable as a result
of the instability in traditional national and international
markets of goods and services produced by the citizens of the
state.
(2)In order to finance essential capital projects for the
benefit of the citizens of the state at the lowest possible cost,
the state must maintain high levels of acceptance of the
indebtedness of the state and its spending units in the financial
markets.
(3)In order to attain these goals, authorization of state
debt must be based on the ability of the state to meet its total
debt service requirements, in light of other uses of its fiscal
resources.
(c)The Legislature hereby further finds that the public
policies and responsibilities of the state as set forth in this
article cannot be fully attained without the creation of a state
division of debt management.
§12-6A-3. Division of debt management created; director.
There is hereby created within the office of the state board
of investments treasurer, the division of debt management.
The division shall be under the control of a director to be
appointed by the board treasurer and who shall be qualified by
reason of exceptional training and experience in the field of
activities of his respective division and shall serve at the will
and pleasure of the board treasurer.
§12-6A-5. Powers and duties.
The division of debt management shall perform the following
functions and duties:
(1)Develop a long-term debt plan including criteria for the
issuance of debt by the state and its spending units and the
continuous evaluation of the current and projected debt of the
state and its spending units.
(2)Evaluate cash flow projections relative to proposed and existing revenue bond issues.
(3)Act as liaison with the Legislature on all debt matters,
including, but not limited to, new debt issues and the status of
debt issued by the state and its spending units.
(4)Assist the state and its spending units regarding the
issuance of debt if requested.
(5)Establish reporting requirements for the issuance of debt
by the state and its spending units pursuant to the provisions of
this article.
(6)Make and execute contracts and other instruments and pay
the reasonable value of services or commodities rendered to the
division pursuant to those contracts.
(7)Contract, cooperate or join with any one or more other
governments or public agencies, or with any political subdivision
of the state, or with the United States, to perform any
administrative service, activity or undertaking which any such
contracting party is authorized by law to perform and to charge for
providing such services and expend any fees collected.
(8)Do all things necessary or convenient to effectuate the
intent of this article and to carry out its powers and functions.
(9)Provide staff services to the debt capacity advisory
division established in article six-b of this chapter.
§12-6A-6. Debt information reporting.
(1)(a) Within fifteen days following the end of each calendar quarter, each state spending unit shall provide the
division and the legislative auditor, in the manner provided by
this article and in such form and detail as the state board of
investments treasurer may by regulation require, a statement of the
total debt of each such state spending unit incurred during the
calendar quarter and owing at the end of such calendar quarter,
which statement shall include, but not be limited to, the name of
the state spending unit, the amounts and types of debt incurred
during the calendar quarter and outstanding at the end of the
calendar quarter, the cost and expenses of incurring the debt, the
maturity date of each debt, the terms and conditions of the debt,
the current debt service on the debt, the current interest rate on
the debt, the source of the proceeds utilized for repayment of the
debt, the amounts of repayment during the calendar quarter, the
repayment schedule and the security for the debt. A state spending
unit having no outstanding debt shall not be required to provide
the quarterly report but shall file an annual report, on forms
established by the division of debt management: Provided, That the
state spending unit shall immediately notify the division of debt
management of any change in the spending unit's outstanding debt
condition.
(2)(b) Not less than fifteen thirty days prior to a proposed
offering of debt to be issued by a state spending unit, written
notice of such proposed offering and the terms thereof shall be given to the division by such state spending unit in such the form
as the division may by regulation require. Within thirty days
after closing, the terms shall be reported to the division in the
form as the division may, by regulation require.
(3)(c) Within thirty days following the end of each calendar
quarter and on an annual basis the state board of investments On or
before the thirty-first day of January and the thirty-first day of
July of each year, the treasurer shall prepare and issue a report
of all debt of the state and its spending units and of all proposed
debt issuances of which the board treasurer has received notice and
shall furnish a copy of such report to the governor, the president
of the Senate, the speaker of the House of Delegates, the
legislative auditor and upon request to any legislative committee
and any member of the Legislature. and such The report shall be
kept available for inspection by any citizen of the state. The
treasurer shall also prepare updated reports of all debt of the
state and its spending units which shall be available for
inspection at the office of the state treasurer on or before the
thirty-first day of March and the thirtieth day of September of
each year.
ARTICLE 6B. DEBT CAPACITY ADVISORY DIVISION.
§12-6B-1. Purpose.
This purpose of this article is to provide a mechanism by
which necessary information may be provided to the governor and the Legislature so that they may prudently management the state's
financial resources by attempting to keep the state within an
average to low range of nationally recognized debt limits. The
ratio measurements which may be taken into consideration in
attempting to meet these limits include, but are not limited to,
outstanding net tax supported debt per capita, net tax supported
debt as a percentage of personal income, net tax supported debt as
a percentage of assessed valuation, and any other criteria that
recognized bond rating agencies use to judge the quality of issues
of state bonds.
§12-6B-2. Debt capacity advisory division created.
There is hereby created within the offices of the state
treasurer a debt capacity advisory division.
§12-6B-3. Definitions.
For the purpose of this article:
(a)"Debt" means bonds, notes, certificates of participation,
certificate transactions, capital leases and all other forms of
securities and indebtedness.
(b)"Debt impact statement" means a signed statement from the
treasurer which shall include such information and be in such form,
as determined by the division, for the Legislature or the governor
to make an informed decision concerning the issuance of debt by the
state or its spending units.
(c) "Division" means the debt capacity advisory division established in this article.
(d)"Net tax supported debt as a percentage of assessed
valuation" means the net tax supported debt, as determined by the
division, divided by the most recently available estimated assessed
valuation of all taxable property in the state by the West Virginia
department of tax and revenue.
(e)"Net tax supported debt as a percentage of personal
income" means the net tax supported debt, as determined by the
division, divided by the most recently available personal income
figures for the state by the West Virginia bureau of employment
programs.
(f)"Net tax supported debt per capita" means the state's net
tax supported debt, as determined by the division, divided by the
most recently available population estimate for the state by the
United States department of commerce.
(g)"Spending unit" means any of the state's agencies,
boards, commissions, committees, authorities, or other of its
entities with the power to issue debt and secure such debt, but not
including local political subdivisions of the state.
(h)"Tax supported debt" means: (1) All obligations of the
state or any spending unit to which the state's full faith and
credit is pledged to pay directly or by guarantee (provided that
any such guaranteed obligations shall be included only to the
extent any such obligations are in default); and (2) all obligations of the state or any agency or authority thereof
extending beyond one year with respect to the lease, occupancy or
acquisition of property which are incurred in connection with debt
financing transactions, including but not limited to certificates
of participation, and which are payable from taxes, fees, permits,
licenses and fines imposed or approved by the Legislature.
Tax supported obligations do not include: (1) any obligations
of the West Virginia housing development fund, the economic
development authority, the hospital finance authority, the West
Virginia parkway authority, the West Virginia public energy
authority, the West Virginia solid waste management board, and the
West Virginia water development authority (2) revenue anticipation
notes or bonds of the state; or (3) any obligations to the extent
that the debt service with respect thereto is reasonably expected
to be offset, as determined by the division, by lease payments,
user fees, federal grants or other payments from some source other
than the general fund. Such payments shall be used expressly for
the purpose of paying debt service.
(i)"Treasurer" means the treasurer of the state of West
Virginia.
§12-6B-4. Powers and duties.
The division shall perform the following functions and duties:
(a)Promulgate and rules pursuant to article three, chapter
twenty-nine-a of this code, for the management and conduct of its affairs;
(b)Annually review the size and condition of the state's
tax-supported debt and submit to the governor and to the
Legislature, on or before the first day of October of each year, an
estimate of the maximum amount of new tax-supported debt that
prudently may be authorized for the next fiscal year, together with
a report explaining the basis for the estimate. The estimate shall
be advisory and in no way restrict the governor or the Legislature.
In preparing its annual review and estimate, the division shall, at
a minimum, consider:
(1)The amount of net tax supported debt that, during the
next fiscal year and annually for the following ten fiscal years
(A) will be outstanding and (B) has been authorized but not yet
issued;
(2)Projected debt service requirements during the next
fiscal year and annually for the following ten fiscal years based
upon (A) existing outstanding debt, (B) previously authorized but
unissued debt, and (C) projected bond authorizations;
(3)Any information available from the budget section of the
department of administration in connection with anticipated capital
expenditures projected for the next five fiscal years;
(4)The criteria that recognized bond rating agencies use to
judge the quality of state bonds;
(5)Any other factor that the division finds as relevant to (A) the ability of the state to meet its projected debt service
requirements for the next fiscal year, (B) the ability of the state
to meet its projected debt service requirement for the next five
fiscal years, (C) any other factor affecting the marketability of
such bond;
(6)The effect of authorizations of new tax-supported debt on
each of the considerations of this subsection.
(c)Conduct ongoing review of the amount and condition of
bonds, notes and other security obligations of the state's spending
units: (1) Not secured by the full faith and credit of the state
or for which the Legislature is not obligated to replenish reserve
funds or make necessary debt service payments; (2) for which the
state has a contingent or limited liability or for which the
Legislature is permitted to replenish reserve funds or make
necessary debt service payments if deficiencies occur. When
appropriate, the division shall recommend limits on such additional
obligations to the governor and to the Legislature. Such
recommendation is advisory and shall in no way restrict the
governor, the Legislature or the spending unit.
(d)The treasurer may review all proposed offerings of debt,
as defined in this article, submitted to the division of debt
management, as provided in section six, article six-a, of this
chapter. The division may also request any additional information
which may be needed to issue an advisory opinion to the governor, the speaker of the House of Delegates, and the president of the
Senate as to the impact of the proposed offering on the state's net
tax-supported debt outstanding and any other criteria which the
treasurer feels may be relevant to the marketability of said
offering and its impact on the state's credit rating. Such
advisory opinion shall in no way restrict the governor, the
Legislature or the spending unit.
(e)Do all things necessary or convenient to effectuate the
intent of this article and to carry out its powers and functions.
CHAPTER 13. PUBLIC BONDED INDEBTEDNESS.
ARTICLE 1. BOND ISSUES FOR ORIGINAL INDEBTEDNESS.
§13-1-14. Resolution authorizing issuance and fixing terms of
bonds.
If three fifths of all the votes cast for and against the
proposition to incur debt and issue negotiable bonds shall be in
favor of the same, the governing body of the political division
shall, by resolution, authorize the issuance of
such those bonds in
an amount not exceeding the amount stated in the proposition
; and
fix the date thereof
;. The governing body shall set forth the
denominations in which
they the bonds shall be issued, which
denominations shall be one hundred dollars or multiples thereof
;.
The governing body shall determine the rate or rates of interest
which the bonds shall bear, which rate or rates of interest shall
be within the maximum rate stated in the proposition submitted to vote and payable semiannually
;. The governing body shall prescribe
the medium with which the bonds shall be payable
; and require that
the bonds
shall be made payable at the office of the
board of
investments state treasurer and at
such any other place or places
as the body issuing the same may designate
;. The governing body
shall provide for a sufficient levy to pay the annual interest on
the bonds and the principal at maturity
; and fix the times within
the maximum period, as contained in the proposition submitted to
vote, when the bonds shall become payable, which shall not exceed
thirty-four years from the date thereof
;. The governing body shall
determine whether all or a portion of the bonds shall be subject to
redemption prior to the maturity thereof and, if so, the terms of
the redemption
;. The governing body shall also prescribe a form
for executing the bonds authorized.
§13-1-17. Bonds may be registered; coupon bonds may be registered
as to principal.
The bonds issued hereunder may be registered or coupon bonds.
Coupon bonds may be registered as to the principal in the owner's
name by the
board of investments state treasurer on books which
shall be kept at
its his or her office for
the this purpose and the
registration shall also be noted on the bonds, after which no
transfer shall be valid unless made by the state
board of
investments treasurer on the books of registration and similarly
noted on the bonds. Bonds registered as to principal may be discharged from registration by being transferred to bearer, after
which they shall be transferable by delivery; but may again, and
from time to time, be registered as to the principal amount as
before. The registration of coupon bonds as to the principal sum
shall not affect the negotiability of the interest coupons, but
title to the same shall pass by delivery.
§13-1-18. Registration of coupon bonds as to interest; exchange
of registered bond for coupon bond.
Coupon bonds may also be registered as to the interest by the
holder surrendering the bonds with the unpaid coupons attached,
which bonds and coupons shall be canceled by the
board of
investments state treasurer. New bonds of the same date and tenor
and for the same amounts as the bonds surrendered, or, at the
option of the holder, a single bond for the aggregate amount of the
bonds surrendered, but without interest coupons attached, shall be
issued in the place of the coupon bonds and registered in the
manner required in the preceding section. A registered bond may at
any time be surrendered and be exchanged by the holder for a coupon
bond by the holder delivering the registered bond to the
board of
investments state treasurer who shall cancel the same and who shall
cause a new bond of the same date and tenor and for the same amount
to be issued, and with interest coupons for the interest thereafter
to accrue thereon attached, and deliver the same to the holder of
the surrendered bond. The governing body of the county, municipal corporation or school district which issued the original bond shall
issue and execute the new bond required by this section and shall
pass the resolutions and ordinances necessary to authorize the
same. The expense of
such registration shall in all cases be paid
by the holder of the bonds.
ARTICLE 3. MUNICIPAL BOND COMMISSION.
§13-3-3. Officers; employees; chief administrative officer;
meetings; quorum; compensation and expenses; legal
representation.
(a) The
secretary of the departmentt of tax and revenue tax
commissioner or his or her designee shall be chair of the
commission.
(b)The members of the commission shall appoint a chief
administrative officer and may fix his title and duties.
Notwithstanding the provisions of section two-a, article seven,
chapter six of this code, the commission shall have the authority
to set the compensation of the chief administrative officer. The
chief administrative officer shall serve as secretary to the board
and treasurer of the commission. The chair may designate a board
members to serve as secretary in the absence of the chief
administrative officer. The chair is authorized with the approval
of the commission, to employ
such other employees
and consultants
as may be necessary and such consultants as the commission deems
advisable and fix their compensation and prescribe their duties.
(c) Appointed members of the commission shall be paid fifty
dollars for each day or substantial portion thereof that they are
engaged in the work of the commission. Each member of the
commission may be reimbursed for all reasonable and necessary
expenses actually incurred in the performance of duties on behalf
of the commission.
(d) The commission shall hold at least three meetings in each
fiscal year, one of which meetings shall be within sixty days of
the end of the fiscal year and shall be the annual meeting.
Such
The meetings shall be held on
such dates and at
such places
as the
prescribed by the chair
may prescribe. Additional meetings may be
held at the call of the chair or upon the written request of three
members at such time and place as designated in such call or
request. Three members of the commission constitute a quorum.
(e)The
attorney general shall be the legal advisor to the
commission
is authorized to provide or designate legal advisory
services to the commission.
CHAPTER 18. EDUCATION.
ARTICLE 9D. SCHOOL BUILDING AUTHORITY.
§18-9D-9. Issuance of revenue refunding bonds; use of moneys;
power to enter into escrow agreements; call for
redemption.
(a)The issuance of revenue refunding bonds under the
provisions of this article shall be authorized by resolution of the school building authority and shall otherwise be subject to the
limitations, conditions and provisions of other revenue bonds under
this article.
Such revenue Revenue refunding bonds may be issued
in an amount at the option of the authority sufficient to pay
either in part or in full, together with interest earned on the
investment of the proceeds thereof, whether or not at the time of
the issuance of the revenue refunding bonds the hereafter mentioned
bonds are payable or callable for optional redemption: (1) The
principal of such outstanding bonds; (2) the redemption premium, if
any, on such outstanding bonds if they are to be redeemed prior to
maturity; (3) the interest due and payable on such outstanding
bonds to and including the maturity date thereof or the first date
upon which said outstanding bonds are to be redeemed, including any
interest therefore accrued and unpaid; and (4) all expenses of the
issuance and sale of said revenue refunding bonds, including all
necessary financial and legal expenses, and also including the
creation of initial debt service reserve funds. Any existing
moneys pledged with respect to the outstanding bonds may be used
for any or all of the purposes stated in
subdivision (1), (2), (3)
and (4) above or may be deposited in a sinking fund or reserve fund
or other funds for the issue of bonds which have been issued wholly
or in part for the purpose of such refunding. Such amount of the
proceeds of the revenue refunding bonds as shall be sufficient for
the payment of the principal, interest and redemption premium, if any, on such outstanding bonds which will not be immediately due
and payable shall be deposited in trust, for the sole purpose of
making such payments, in a banking institution chosen by the
authority and in accordance with any provisions which may be
included in the resolution authorizing the issuance of such bonds
or in the trust agreement securing the same.
(b) Any of the moneys so deposited in trust may, prior to the
date on which
such those moneys will be needed for the payment of
principal of, interest and redemption premium, if any, on
such
outstanding bonds, be invested and reinvested as determined by the
authority, in whole or in part: (
a1) In direct obligations issued
by the United States of America or one of its agencies or in direct
obligations of the state of West Virginia; (
b2) in obligations
unconditionally guaranteed by the United States of America as to
principal and interest; or (
c3) in certificates of deposit of a
banking corporation or association which is a member of the federal
deposit insurance corporation, or successor; but any such
certificates of deposit must be fully secured as to both principal
and interest by pledged collateral consisting of direct obligations
of or obligations guaranteed by the United States of America, or
direct obligations of the state of West Virginia, having a market
value, excluding accrued interest, at all times at least equal to
the amount of the principal of and accrued interest on such
certificates of deposit. Any
such investments must mature, or be payable in advance of maturity at the option of the holder, and
must bear interest in
such a manner
as to provide funds which,
together with uninvested money, will be sufficient to pay when due
or called for redemption the bonds refunded, together with interest
accrued and to accrue thereon and redemption premiums, if any, and
such the refunding bonds' proceeds or obligations so purchased
therewith shall be deposited in escrow and held in trust for the
payment and redemption of the bonds refunded:
Provided, That if
interest earned by any investment in
such escrow is shown to be in
excess of the amounts required from time to time for the payment of
interest on and principal of the refunded bonds, including
applicable redemption premium, then
such the excess may be
withdrawn from escrow and disbursed in
such the manner
as the
authority shall by resolution determine, subject to the provisions
of section five of this article. Any moneys in the sinking or
reserve funds or other funds maintained for the outstanding bonds
to be refunded may be applied in the same manner and for the same
purpose as are the net proceeds of refunding bonds or may be
deposited in the special fund or any reserve funds established for
account of the refunding bonds.
(c)The authority to issue revenue refunding bonds shall be
in addition to any other authority to refund bonds conferred by
law.
(d)The school building authority shall have power to enter into
such escrow agreements with
such a bank or banks and to insert
therein
such protective and other covenants and provisions as it
may consider necessary to permit the carrying out of the provisions
of this article and to insure the prompt payment of the principal
of and interest and redemption premiums on the revenue bonds
refunded.
(e)Where any revenue bonds to be refunded are not to be
surrendered for exchange or payment and are not to be paid at
maturity with escrowed obligations, but are to be paid from
such
the source prior to maturity pursuant to call for redemption
exercised under a right of redemption reserved in
such the revenue
bonds, the authority shall, prior to the issuance of the refunding
bonds, determine which redemption date or dates shall be used, call
such those revenue bonds for redemption and provide for the giving
of the notice of redemption required by the proceedings authorizing
such the revenue bonds. Where
such notice is to be given at a time
subsequent to the issuance of the refunding bonds, the necessary
notices may be deposited with the state treasurer or the bank
acting as escrow agent of the refunding bond proceeds and the
escrow agent appropriately instructed and authorized to give the
required notices at the prescribed time or times. If any officer
of the public body signing any such notice shall no longer be in
office at the time of the utilization of the notice, the notice
shall nevertheless be valid and effective for its intended purpose.
Notwithstanding, any provision of this article to the contrary,
except bonds issued pursuant to a master resolution or agreement
dated prior to the first day of July, one thousand nine hundred
ninety-seven, or bonds issued on a parity with bonds issued prior
to the first day of July, one thousand nine hundred ninety-seven,
all proceeds from the issuance of any and all revenue bonds issued
pursuant to this article on or after the first day of July, one
thousand nine hundred ninety-seven, including any moneys in any
special funds, sinking funds, reserve funds, or any other moneys or
funds and all interest earned thereon, shall be credited to the
state treasury and invested by the board of investments as provided
in article six, chapter twelve of this code. All interest earnings
on the moneys of a fund shall accrue to the fund and are available
for expenditure in accordance with resolution, trust or other
agreement or document creating the fund. All disbursements,
including, but not limited to, the completion of authorized
projects, costs of issuance, and all debt service obligations shall
be paid from the state treasury pursuant to a warrant drawn by the
auditor as provided in articles two and three, chapter twelve of
this code. The auditor and treasurer shall remit funds or sinking
funds, debt service reserves and any other fund requirements as
required by a trustee or similar agreement for bonds issued to a
master resolution or agreement dated prior to the first day of
July, one thousand nine hundred ninety-seven, or bonds issued on parity with bonds issued prior to the first day of July, one
thousand nine hundred ninety-seven. In the case of refunding
bonds, the treasurer shall designate a financial institution to
serve as escrow trustee. For other bonds issued to which this
section applies, the auditor and treasurer may remit funds as
required by a trustee or similar agreement.
§18-9D-12. Trust agreements for holders of bonds.
The school building authority may enter into an agreement or
agreements with any trust company, or with any bank having the
powers of a trust company, either within or outside the state, to
act as trustee for the holders of bonds issued hereunder, setting
forth therein such duties and containing such legally binding
covenants of the school building authority with the holders of the
bonds in respect to the payment of the bond; the fixing and
collecting of rents hereinbefore referred to; the completion of
authorized projects; the custody, safeguarding and disposition of
the proceeds of the bonds, and the moneys in such special funds,
sinking funds, reserve funds, or any other moneys or funds,
notwithstanding provisions of this article to the contrary; the
security for moneys on hand or on deposit, and the rights and
remedies of the trustee and the holders of the bonds, as may be
agreed upon with the purchasers of such bonds; provisions
restricting the individual right of action of bondholders as is
customary in trust agreements respecting bonds and debentures of municipal corporations, protecting and enforcing the rights and
remedies of the trustee and the bondholders; and provisions as to
any other matters which are deemed necessary and advisable by the
school building authority in the best interests of the state and to
enhance the marketability of the bonds. Any such agreement entered
into by the school building authority shall be binding in all
respects on such authority and its successors from time to time in
accordance with the terms thereof; and all the provisions thereof
shall be enforceable by appropriate proceedings at law or in
equity, or otherwise.
Notwithstanding, any provision of this
article to the contrary, except bonds issued pursuant to a master
resolution or agreement dated prior to the first day of July, one
thousand nine hundred ninety-seven, or bonds issued on a parity
with bonds issued prior to the first day of July, one thousand nine
hundred ninety-seven, all proceeds from the issuance of any and all
revenue bonds issued pursuant to this article on or after the first
day of July, one thousand nine hundred ninety-seven, including any
moneys in any special funds, sinking funds, reserve funds, or any
other moneys or funds and all interest earned thereon, shall be
credited to the state treasury and invested by the board of
investments as provided in article six, chapter twelve of this
code. All interest earnings on the moneys of a fund shall accrue
to the fund and are available for expenditure in accordance with
resolution, trust or other agreement or document creating the fund. All disbursements, including but not limited to the completion of
authorized projects, costs of issuance, and all debt service
obligations shall be paid from the state treasury pursuant to a
warrant drawn by the auditor as provided in articles two and three,
chapter twelve of this code. The auditor and treasurer shall remit
funds or sinking funds, debt service reserves and any other fund
requirements as required by a trustee or similar agreement for
bonds issued to a master resolution or agreement dated prior to the
first day of July, one thousand nine hundred ninety-seven, or bonds
issued on parity with bonds issued prior to the first day of July,
one thousand nine hundred ninety-seven. In the case of refunding
bonds, the treasurer shall designate a financial institution to
serve as escrow trustee. For other bonds issued to which this
section applies, the auditor and treasurer may remit funds as
required by a trustee or similar agreement.
§18-9D-13. Sinking fund for payment of bonds.
From the school building capital improvement fund the school
building authority shall make periodic payments in an amount
sufficient to meet the requirements of any issue of bonds sold
under the provisions of this article, as may be specified in the
resolution of the authority authorizing the issue thereof and in
any trust agreement entered into in connection therewith. The
payments so made shall be placed as specified in such resolution of
trust agreement in a special sinking fund which is hereby pledged to and charged with the payment of the principal of the bonds of
such issue and the interest thereon, and to the redemption or
repurchase of such bonds, such sinking fund to be a fund for all
bonds of such issue without distinction or priority of one over
another, except as may be provided in the resolution authorizing
such issue of bonds. The moneys in the special sinking fund, less
such reserve for payment of principal and interest and redemption
premium, if any, as may be required by the resolution of the school
building authority, authorizing the issue and any trust agreement
made in connection therewith, may be used for the redemption of any
of the outstanding bonds payable from such fund which by their
terms are then redeemable, or for the purchase of bonds at the
market price, but at not exceeding the price, if any, at which such
bonds shall in the same year be redeemable; and all bonds redeemed
or purchased shall forthwith be canceled and shall not again be
issued.
Notwithstanding, any provision of this article to the
contrary, except bonds issued pursuant to a master resolution or
agreement dated prior to the first day of July, one thousand nine
hundred ninety-seven, or bonds issued on a parity with bonds issued
prior to the first day of July, one thousand nine hundred ninety- seven, all proceeds from the issuance of any and all revenue bonds
issued pursuant to this article on or after the first day of July,
one thousand nine hundred ninety-seven, including any moneys in any
special funds, sinking funds, reserve funds, or any other moneys or funds and all interest earned thereon, shall be credited to the
state treasury and invested by the board of investments as provided
in article six, chapter twelve of this code. All interest earnings
on the moneys of a fund shall accrue to the fund and are available
for expenditure in accordance with resolution, trust or other
agreement or document creating the fund. All disbursements,
including but not limited to the completion of authorized projects,
costs of issuance, and all debt service obligations shall be paid
from the state treasury pursuant to a warrant drawn by the auditor
as provided in articles two and three, chapter twelve of this code.
The auditor and treasurer shall remit funds or sinking funds, debt
service reserves and any other fund requirements as required by a
trustee or similar agreement for bonds issued to a master
resolution or agreement dated prior to the first day of July, one
thousand nine hundred ninety-seven, or bonds issued on parity with
bonds issued prior to the first day of July, one thousand nine
hundred ninety-seven. In the case of refunding bonds, the
treasurer shall designate a financial institution to serve as
escrow trustee. For other bonds issued to which this section
applies, the auditor and treasurer may remit funds as required by
a trustee or similar agreement.
CHAPTER 31. CORPORATIONS.
ARTICLE 15A. WEST VIRGINIA INFRASTRUCTURE AND JOBS DEVELOPMENT COUNCIL.
§31-15A-9. Infrastructure fund; deposits in fund; disbursements
to provide loans, loan guarantees, grants and other
assistance; loans, loan guarantees, grants and other
assistance shall be subject to assistance
agreements.
(a) The water development authority shall create and
establish a special revolving fund of moneys made available by
appropriation, grant, contribution or loan to be known as the "West
Virginia Infrastructure Fund". This fund shall be governed,
administered and accounted for by the directors, officers and
managerial staff of the water development authority as a special
purpose account separate and distinct from any other moneys, funds
or funds owned and managed by the water development authority. The
infrastructure fund shall consist of sub-accounts, as deemed
necessary by the council or the water development authority, for
the deposit of: (1) Infrastructure revenues; (2) any
appropriations, grants, gifts, contributions, loan proceeds or
other revenues received by the infrastructure fund from any source,
public or private; (3) amounts received as payments on any loans
made by the water development authority to pay for the cost of a
project or infrastructure project; (4) insurance proceeds payable
to the water development authority or the infrastructure fund in
connection with any infrastructure project or project; (5) all
income earned on moneys held in the infrastructure fund; (6) all funds deposited in accordance with section four of article fifteen- b; and (7) all proceeds derived from the sale of bonds issued
pursuant to article fifteen-b of this chapter.
Any money collected pursuant to this section shall be paid
into the West Virginia infrastructure fund by the state agent or
entity charged with the collection of the same, credited to the
infrastructure fund, and used only for purposes set forth in this
article or article fifteen-b.
Amounts in the infrastructure fund shall be segregated and
administered by the water development authority separate and apart
from its other assets and programs. Amounts in the infrastructure
fund may not be transferred to any other fund or account or used,
other than indirectly, for the purposes of any other program of the
water development authority, except that the water development
authority may use funds in the infrastructure fund to reimburse
itself for any administrative costs incurred by it and approved by
the council in connection with any loan, loan guarantee, grant or
other funding assistance made by the water development authority
pursuant to this article.
(b) Notwithstanding any provision of this code to the
contrary, amounts in the infrastructure fund shall be deposited by
the water development authority in one or more banking
institutions:
Provided, That any moneys so deposited shall be
deposited in a banking institution located in this state. The banking institution shall be selected by the water development
authority by competitive bid. Pending the disbursement of any
money from the infrastructure fund as authorized under this
section, the water development authority shall invest and reinvest
the moneys subject to the limitations set forth in article
eighteen, chapter thirty-one of this code.
Notwithstanding, any
provision of this article to the contrary, except bonds issued
pursuant to a master resolution or agreement dated prior to the
first day of July, one thousand nine hundred ninety-seven, or bonds
issued on a parity with bonds issued prior to the first day of
July, one thousand nine hundred ninety-seven, all proceeds from the
issuance of any and all revenue bonds issued pursuant to this
article on or after the first day of July, one thousand nine
hundred ninety-seven, including any moneys in any special funds,
sinking funds, reserve funds, or any other moneys or funds and all
interest earned thereon, shall be credited to the state treasury
and invested by the board of investments as provided in article
six, chapter twelve of this code. All interest earnings on the
moneys of a fund shall accrue to the fund and are available for
expenditure in accordance with resolution, trust or other agreement
or document creating the fund. All disbursements, including but
not limited to the completion of authorized projects, costs of
issuance, and all debt service obligations shall be paid from the
state treasury pursuant to a warrant drawn by the auditor as provided in articles two and three, chapter twelve of this code.
The auditor and treasurer shall remit funds or sinking funds, debt
service reserves and any other fund requirements as required by a
trustee or similar agreement for bonds issued to a master
resolution or agreement dated prior to the first day of July, one
thousand nine hundred ninety-seven, or bonds issued on parity with
bonds issued prior to the first day of July, one thousand nine
hundred ninety-seven. In the case of refunding bonds, the
treasurer shall designate a financial institution to serve as
escrow trustee. For other bonds issued to which this section
applies, the auditor and treasurer may remit funds as required by
a trustee or similar agreement.
(c) To further accomplish the purposes and intent of this
article and article fifteen-b of this chapter, the water
development authority may pledge infrastructure revenues and from
time to time establish one or more restricted accounts within the
infrastructure fund for the purpose of providing funds to guarantee
loans for infrastructure projects or projects: Provided, That for
any fiscal year the water development authority may not deposit
into the restricted accounts more than twenty percent of the
aggregate amount of infrastructure revenues deposited into the
infrastructure fund during the fiscal year. No loan guarantee
shall be made pursuant to this article unless recourse under the
loan guarantee is limited solely to amounts in the restricted account or accounts. No person shall have any recourse to any
restricted accounts established pursuant to this subsection other
than those persons to whom the loan guarantee or guarantees have
been made.
(d) Each loan, loan guarantee, grant or other assistance made
or provided by the water development authority shall be evidenced
by a loan, loan guarantee, grant or assistance agreement between
the water development authority and the project sponsor to which
the loan, loan guarantee, grant or assistance shall be made or
provided, which agreement shall include, without limitation and to
the extent applicable, the following provisions:
(1) The estimated cost of the infrastructure project or
project, the amount of the loan, loan guarantee or grant or the
nature of the assistance, and in the case of a loan or loan
guarantee, the terms of repayment and the security therefor, if
any;
(2) The specific purposes for which the loan or grant
proceeds shall be expended or the benefits to accrue from the loan
guarantee or other assistance, and the conditions and procedure for
disbursing loan or grant proceeds;
(3) The duties and obligations imposed regarding the
acquisition, construction improvement or operation of the project
or infrastructure project; and
(4) The agreement of the governmental agency to comply with all applicable federal and state laws, and all rules and
regulations issued or imposed by the water development authority or
other state, federal or local bodies regarding the acquisition,
construction, improvement or operation of the infrastructure
project or project and granting the water development authority the
right to appoint a receiver for the project or infrastructure if
the project sponsor should default on any terms of the agreement.
(e) Any resolution of the water development authority
approving loan, loan guarantee, grant or other assistance shall
include a finding and determination that the requirements of this
section have been met.
(f) The interest rate on any loan to governmental, quasi- governmental, or not for profit project sponsors for projects made
pursuant to this article shall not exceed three percent per annum.
Due to the limited availability of funds available for loans for
projects, it is the public policy of this state to prioritize
funding needs to first meet the needs of governmental, quasi- governmental and not for profit project sponsors and to require
that loans made to for-profit entities shall bear interest at the
current market rates. Therefore, no loan may be made by the
council to a for-profit entity at an interest rate which is less
than the current market rate at the time of the loan agreement.
(g) The water development authority shall cause an annual
audit to be made by an independent certified public accountant of its books, accounts and records, with respect to the receipts,
disbursements, contracts, leases, assignments, loans, grants and
all other matters relating to the financial operation of the
infrastructure fund, including the operating of any sub-account
within the infrastructure fund. The person performing such audit
shall furnish copies of the audit report to the commissioner of
finance and administration, where they shall be placed on file and
made available for inspection by the general public. The person
performing such audit shall also furnish copies of the audit report
to the Legislature's joint committee on government and finance.
ARTICLE 15B. INFRASTRUCTURE BONDS.
§31-15B-2. Infrastructure general obligation bonds; amount; when
may issue.
Bonds of the state of West Virginia, under authority of the
infrastructure improvement amendment of 1994, of the par value not
to exceed in the aggregate three hundred million dollars, are
hereby authorized to be issued and sold solely for the
construction, extension, expansion, rehabilitation, repair and
improvement of water supply and sewage treatment systems and for
the acquisition, preparation, construction and improvement of sites
for economic development as provided for by the constitution and
the provisions of this article.
These bonds may be issued by the governor upon resolution by
the infrastructure council and certification to the governor. The bonds shall bear such the date and mature at such the time, bear
interest at such the rate not to exceed eight percent per annum, be
in such amounts, be in such denominations, be in such registered
form, carry such registration privileges, be due and payable at
such the time and place and in such the amounts, and subject to
such the terms of redemption as such the resolution may provide:
Provided, That in no event may the amount of bonds outstanding
exceed an amount for which sixteen million dollars would not be
sufficient to provide annual service on the total amount of debt
outstanding.
Both the principal and interest of the bonds shall be payable
in the lawful money of the United States of America and the bonds
and the interest thereon shall be exempt from taxation by the state
of West Virginia, or by any county, district or municipality
thereof, which fact shall appear on the face of the bonds as part
of the contract with the holder of the bond.
The bonds shall be executed on behalf of the state of West
Virginia, by the manual or facsimile signature of the treasurer
thereof, under the great seal of the state or a facsimile thereof,
and countersigned by the manual or facsimile signature of the
auditor of the state.
Notwithstanding, any provision of this
article to the contrary, except bonds issued pursuant to a master
resolution or agreement dated prior to the first day of July, one
thousand nine hundred ninety-seven, or bonds issued on a parity with bonds issued prior to the first day of July, one thousand nine
hundred ninety-seven, all proceeds from the issuance of any and all
bonds issued pursuant to this article on or after the first day of
July, one thousand nine hundred ninety-seven, including any moneys
in any special funds, sinking funds, reserve funds, or any other
moneys or funds and all interest earned thereon, shall be credited
to the state treasury and invested by the board of investments as
provided in article six, chapter twelve of this code. All interest
earnings on the moneys of a fund shall accrue to the fund and are
available for expenditure in accordance with resolution, trust or
other agreement or document creating the fund. All disbursements,
including but not limited to the completion of authorized projects,
costs of issuance, and all debt service obligations shall be paid
from the state treasury pursuant to a warrant drawn by the auditor
as provided in articles two and three, chapter twelve of this code.
The auditor and treasurer shall remit funds or sinking funds, debt
service reserves and any other fund requirements as required by a
trustee or similar agreement for bonds issued to a master
resolution or agreement dated prior to the first day of July, one
thousand nine hundred ninety-seven, or bonds issued on parity with
bonds issued prior to the first day of July, one thousand nine
hundred ninety-seven. In the case of refunding bonds, the
treasurer shall designate a financial institution to serve as
escrow trustee. For other bonds issued to which this section applies, the auditor and treasurer may remit funds as required by
a trustee or similar agreement.
ARTICLE 20. WEST VIRGINIA REGIONAL JAIL AND CORRECTIONAL FACILITY
AUTHORITY.
§31-20-11. Borrowing of money.
The borrowing of money and the notes, bonds and security
interests evidencing any such borrowing shall be authorized by
resolution approved by the board, shall bear such date or dates and
shall mature at such time or times, in the case of any such bonds,
not exceeding twenty-five years from the date of issue, as such
resolution or resolutions may provide. The notes, bonds and
security interests shall bear interest at such rate or rates, be in
such denominations, be in such form, either coupon or registered,
carry such registration privileges, be executed in such manner, be
payable in such medium of payment and at such place or places, and
be subject to such terms or conditions of redemption as such
resolution or resolutions may provide.
Notwithstanding, any
provision of this article to the contrary, except bonds issued
pursuant to a master resolution or agreement dated prior to the
first day of July, one thousand nine hundred ninety-seven, or bonds
issued on a parity with bonds issued prior to the first day of
July, one thousand nine hundred ninety-seven, all proceeds from the
issuance of any and all revenue bonds issued pursuant to this
article on or after the first day of July, one thousand nine hundred ninety-seven, including any moneys in any special funds,
sinking funds, reserve funds, or any other moneys or funds and all
interest earned thereon, shall be credited to the state treasury
and invested by the board of investments as provided in article
six, chapter twelve of this code. All interest earnings on the
moneys of a fund shall accrue to the fund and are available for
expenditure in accordance with resolution, trust or other agreement
or document creating the fund. All disbursements, including but
not limited to the completion of authorized projects, costs of
issuance, and all debt service obligations shall be paid from the
state treasury pursuant to a warrant drawn by the auditor as
provided in articles two and three, chapter twelve of this code.
The auditor and treasurer shall remit funds or sinking funds, debt
service reserves and any other fund requirements as required by a
trustee or similar agreement for bonds issued to a master
resolution or agreement dated prior to the first day of July, one
thousand nine hundred ninety-seven, or bonds issued on parity with
bonds issued prior to the first day of July, one thousand nine
hundred ninety-seven. In the case of refunding bonds, the
treasurer shall designate a financial institution to serve as
escrow trustee. For other bonds issued to which this section
applies, the auditor and treasurer may remit funds as required by
a trustee or similar agreement.
CHAPTER 44. ADMINISTRATION OF ESTATES AND TRUSTS.
ARTICLE 6B. WEST VIRGINIA TRUST FUND.
§44-6B-1. How article cited.
This article shall be known and may be cited as the "Revised
West Virginia Trust Fund Act".
§44-6B-2. Legislative findings and purpose.
(a) The Legislature hereby finds and declares that all the
public employees covered by the public employees retirement system,
the teachers retirement system, the West Virginia state police
retirement system, the death, disability and retirement fund of the
division of public safety and the judges' retirement system should
benefit from a prudent and conscientious staff of financial
professionals dedicated to the administration, investment and
management of those employees' and employer's financial
contributions and that an independent trust fund board and staff
should be immune to changing political climates and should provide
a stable and continuous source of professional financial investment
and management.
(b) The Legislature hereby finds and declares further that
experience has demonstrated that prudent investment provides
diversification and beneficial return not only for public employees
but for all citizens of the state and that in order to have access
to this sound fiscal policy, public employee and employer
contributions are declared to be an irrevocable trust, available
for no use or purpose other than for the benefit of those public employees.
(c) The Legislature hereby finds and declares further that the
state and other public employers that made or make contributions to
the West Virginia irrevocable trust fund have no proprietary
interest in the fund or in the contributions made to the fund by
them and that the state and other public employers disclaim any
right to reclaim those contributions and waive any right of
reclamation they may have in the fund: Provided, That the
provisions of this subsection do not prohibit alterations or
refunds of employer contributions in the event of erroneous
payment.
(d) (c) The Legislature hereby finds and declares further that
the workers' compensation funds and coal-workers' pneumoconiosis
fund are trust funds to be used exclusively for those workers,
miners and their beneficiaries who have sacrificed their health in
the performance of their jobs, and further finds that the assets
available to pay awarded benefits should be prudently invested so
that awards may be paid.
(e) (d) The Legislature hereby finds and declares further that
a not-for-profit, nonstock corporate structure an independent
public body corporate with appropriate governance shall be the best
means of assuring prudent financial management of this nonstate
trust fund under rapidly changing market conditions and
regulations.
(f) (e) The Legislature hereby finds and declares further that
in accomplishing this purpose, the West Virginia trust fund,
created and established by section four of this article, is acting
in all respects for the benefit of the state's public employees and
ultimately the citizens of the state, and the West Virginia trust
fund is empowered by this article to act as trustee for the
irrevocable trust created by this article, and the interests of
citizens of the state shall be best met by carrying out the
provisions of this trust.
(g) (f) The Legislature hereby finds and declares further that
the standard of care and prudence applied to trustees and the
conduct of the affairs of the irrevocable trust created by this
article is intended to be that applied to the administration of
private pension plans trusts as described in federal statutory law
and by the common law of the United States the "Uniform Prudent
Investor Act",codified at article six-c, of this chapter.
(g) The Legislature further finds and declares that the West
Virginia Supreme Court of Appeals declared the "West Virginia Trust
Fund Act" unconstitutional in its decision rendered on the twenty- eighth day of March, one thousand nine hundred ninety-seven, to the
extent that it authorized investments in corporate stock but the
Court also recognized that there were other permissible
constitutional purposes of the "West Virginia Trust Fund Act", and
that it is the role of the Legislature to determine those purposes consistent with the Court's decision and the Constitution;
(h) The Legislature hereby further finds and declares that it
is in the best interests of the state and its citizens to amend the
provisions of the "West Virginia Trust Fund Act" in order to: (1)
Be in full compliance with the provisions of the West Virginia
Constitution; and (2) protect all existing legal and equitable
rights of the West Virginia Trust Fund, Inc.;
(i) The Legislature hereby declares that the nominations and
appointments made to the West Virginia Trust Fund board prior to
the effective date of this subsection are hereby reauthorized. The
Legislature further ratifies any and all actions taken by the West
Virginia Trust Fund , Inc., under the prior enactment of this
article. The Legislature hereby ratifies the action taken by the
governor on the first day of July, one thousand nine hundred
ninety-six, in executing the trust indenture creating the
irrevocable trust and naming the West Virginia Trust Fund, Inc. as
the trustee.
§44-6B-3. Definitions.
As used in this article unless a different meaning clearly
appears from the context:
(a) "Beneficiaries" means those individuals entitled to
benefits from the consolidated pension plan;
(b) "Board" means the governing body for the West Virginia
trust fund;
(c) "Consolidated pension plan" means the public employees
retirement system established in article ten, chapter five of this
code, the teachers retirement system established in article seven- a, chapter eighteen of this code, the West Virginia state police
retirement system established in article two-a, chapter fifteen of
this code, the death, disability and retirement fund of the
department of public safety established in article two, chapter
fifteen of this code, the judges' retirement system established in
article nine, chapter fifty-one of this code, the workers'
compensation fund established in article three, chapter twenty- three of this code, and the coal-workers' pneumoconiosis plan
established in article four-b, chapter twenty-three of this code;
(d) "Participant plan" means any component system, plan or
fund of the consolidated pension plan within the definition set
forth in subdivision (c) of this section;
(e) "Political subdivision" means and includes a county,
municipality or any agency, authority, board, county board of
education, commission or instrumentality of a county or
municipality and regional councils created pursuant to the
provisions of section five, article twenty-five, chapter eight of
this code;
(f) "State" means the state of West Virginia;
(g) "Trust fund" means the West Virginia trust fund; and
(h) "Trustee" means any member serving on the West Virginia trust fund board.: Provided, That in section ten of this article
wherein the terms of the trust indenture are set forth, "trustee"
means the West Virginia trust fund.
§44-6B-4. West Virginia trust fund board created; body corporate;
board created; trustees; nomination and appointment
of trustees, qualifications and terms of appointment,
advice and consent; annual and other meetings;
designation of representatives and committees; board
meetings with committees regarding investment policy
statement required; open meetings, qualifications.
(a) There is hereby created the West Virginia trust fund. The
fund is created as a public body corporate and established to
provide prudent fiscal administration, investment and management
for the pension funds and workers' compensation and pneumoconiosis
funds formerly invested by this state the board of investments.
The corporation shall be organized as a nonprofit, nonstock
corporation under the general corporation laws of the state.
(b) The trust fund shall be governed by a board of trustees,
consisting of seven ten members:
(1) Four members shall be appointed by the governor from a
list of twelve persons having experience in pension management,
institutional management or financial markets. The list of twelve
shall consist of four groups of three nominations, and no more than
two of the three nominations in each group may be from the same
political party. The president of the Senate, speaker of the House of Delegates, state auditor and state treasurer each shall submit
one group of three nominations to the governor, who shall appoint
one member from each group of three , which appointments shall be
subject to the advice and consent of the Senate.
(2) The remaining three members shall be appointed from the
general public by the governor, which appointments shall be subject
to the advice and consent of the Senate. Of the members of the
general public appointed by the governor, one shall be an attorney
experienced in finance and investment matters, one shall be a
certified public accountant and one shall be experienced in pension
management, institutional management or financial markets.
(3) (1) The governor shall make appointments to the trust fund
board within sixty days of the effective date of this act.
Nominations originally made to the West Virginia trust fund board
shall remain in effect and are hereby specifically reauthorized
subject to the advice and consent of the senate: Provided, That
appointments which have been confirmed by the Senate are hereby
specifically reauthorized without further action of the Senate:
Provided, however, That nominations to fill vacancies occurring
after the effective date of this section shall be made pursuant to
subsection (d) of this section. Nominations for the appointments
shall be submitted to the governor within thirty days of the
effective date of this act
(4) (2) Any appointment made by the governor subject to the
advice and consent of the Senate is effective immediately upon appointment by the governor with respect to voting, constituting a
quorum, receiving compensation and expenses, and all other rights
and privileges of the trustee position.
(3) The governor, the state auditor and the state treasurer
shall serve as ex officio members of the board. They shall serve
by virtue of their office and are not entitled to compensation or
expenses under the provisions of this article. The governor, the
auditor and the treasurer shall be subject to all duties,
responsibilities and requirements of the provisions of this
article, including but not limited to the provisions of subsection
(e) and (f), section five of this article.
(c) Two members shall serve for a term of three years, two
members for a term of four years and three members for a term of
five years, respectively, as the governor shall designate has
designated upon initial appointments to the board. Thereafter, at
the end of each term, the governor may reappoint or appoint a
successor following the same procedure as specified in subsection
(b) (d) of this section, who shall serve for five-year terms. No
more than four of the trustees may belong to the same political
party.
(d) In the event of a vacancy among the trustees, an
appointment shall be made by the governor to fill the unexpired
term. For vacancies occurring in seats originally filled by
appointments of the governor from the general public, that seat
occupied by an attorney experienced in finance and investment matters shall be filled by a person of the same qualifications,
that seat occupied by a certified public accountant shall be filled
by a certified public accountant and that seat occupied by a person
experienced in pension management, institutional management or
financial markets shall be filled by a person of the same
qualifications.
A vacancy occurring in a seat on the board which
was originally filled from nominations by the speaker of the House
of Delegates, the president of the Senate, the auditor or the
treasurer shall be filled as follows: (1) Any seat occupied by a
nominee of the treasurer or the speaker of the House of Delegates
upon the effective date of this section shall be filled, when
vacant, by the governor from a list of three nominees provided by
the treasurer; and (2) any seat occupied by a nominee of the
auditor or the president of the state Senate upon the effective
date of this section shall be filled, when vacant, by the governor
from a list of three nominees provided by the auditor. All
nominees must have experience in pension management, institutional
management or financial markets. The governor shall fill the
vacancy, by appointment from a new list of nominees, following the
same procedure established in subsection (b) of this section.
(e) The governor may remove any trustee in case of gross
negligence or misfeasance and may declare that position vacant and
may appoint a person for the vacancy as provided in subsection (d)
of this section.
(f) Each trustee shall be entitled to receive, and, at the
trustee's option, the board shall pay to the trustee, compensation in the amount of five thousand dollars per year and additional
compensation in the amount of five hundred dollars per meeting
attended by the trustee in excess of the four quarterly meetings
required by this section. In addition, trustees shall receive
reasonable and necessary expenses actually incurred in discharging
trustee duties pursuant to this article.
(g) The board shall meet quarterly and may include in its
bylaws procedures for the calling and holding of additional
meetings. For any quarterly or additional meeting in which the
board shall review or modify its securities list or its investment
objectives pursuant to subdivision three, subsection (f) (b)
section twelve of this article, the board shall give ten days'
notice in writing to the designated representative of each
participant plan selected pursuant to subdivision (1), subsection
(j) (i) of this section, and the meeting shall be open to the
members and beneficiaries of the participant plans for that portion
of the meeting in which the board undertakes the review or
modification.
(h) The West Virginia trust fund board shall meet prior to
the first day of July, one thousand nine hundred ninety-six, to
organize and structure its operations.
(i) (h) The board shall hold an annual meeting within forty-
five days after the issuance of the year-end financial report. The
annual meeting may also serve as a quarterly meeting. The annual
meeting shall be open to the public, and the board shall receive
oral and written comments from representatives, members and
beneficiaries of the participant plans and from other citizens of the state. At the annual meeting, the board shall adopt a fee
schedule and a budget reflecting fee structures for the year.
(j) (i) Pursuant to subsection (k) (j) of this section, the
board shall meet with committees representing the participant plans
to discuss the board's drafting, reviewing or modifying the written
investment policy of the trust with respect to that committee's
participant plan pursuant to section twelve of this article.
Representatives and committees shall be designated as follows:
(1) On or before the first day of May, one thousand nine
hundred ninety-six, the The West Virginia consolidated public
retirement board shall promulgate procedural rules by which each
pension system named in paragraphs one through five, subdivision
(c) subsection (b), section ten of this article, shall designate an
individual representative of each said pension system, and the West
Virginia workers' compensation commission shall promulgate
procedural rules by which the pneumoconiosis fund and the workers'
compensation fund named in paragraphs subdivision six and seven,
subdivision (c) subsection (b), section ten of this article, shall
designate an individual representative of each said fund.
(2) On or before the first day of June, one thousand nine
hundred ninety-six, and on or before the same date each year,
thereafter the consolidated public retirement board shall submit in
writing to the West Virginia trust fund board the names of the five
designated representatives, and the workers' compensation
commission shall so submit the names of the two representatives.
(3) Each designated representative shall provide to the West
Virginia trust fund board his or her current address, updated each year on or before the first day of July, to which address the board
shall provide notice of meetings of the board pursuant to
subsection (g) of this section.
(4) Each designated representative shall submit in writing to
the board on or before the first day of July, one thousand nine
hundred ninety-six, and on or before the same date each year,
thereafter the names of no more than three persons comprising a
committee representing the beneficiaries of that representative's
participant plan.
(k) (j) At its initial meeting, and thereafter at its annual
meeting, the board shall meet with each of the seven committees,
formed pursuant to subsection (j) (i) of this section, for the
purpose of receiving input from the committees regarding the
board's drafting, reviewing or modifying its written investment
policy statement for the trust. In developing the trust investment
policy statement, the trustees shall receive each committee's
stated objectives and policies regarding the risk tolerances and
return expectations of each participant plan, with attention to the
factors enumerated in subsection (g) subsection (c), section twelve
of this article, in order to provide for the continuing financial
security of the trust and its participant plans. The board may
meet with the said committees or any of them at its quarterly and
additional meetings for the same purpose.
(l) (k) All meetings of the board shall be open to the
representatives of the participant plans as appointed pursuant to
subsection (j) (i) of this section. The representatives shall be
subject to any rules, bylaws, guidelines, requirements, and standards promulgated by the board. The representatives shall
observe standards of decorum established by the board. The
representatives shall be subject to the same code of conduct
applicable to the trustees and shall be subject to all trust fund
rules and bylaws. The representatives shall also be subject to any
requirements of confidentiality applicable to the trustees. Each
representative shall be liable for any act which he or she
undertakes which violates any rule, bylaw, or statute governing
ethical standards, confidentiality, or other standard of conduct
imposed upon the trustees or the representatives. Any meeting of
the board may be closed, upon adoption of a motion by any trustee,
when necessary to preserve the attorney-client privilege, to
protect the privacy interests of individuals, to review personnel
matters, or to maintain confidentiality when confidentiality is in
the best interest of the beneficiaries of the trust.
§44-6B-5. Management and control of fund; officers; staff;
fiduciary or surety bonds for trustees; liability of
trustees.
(a) The management and control of the fund shall be vested
solely in the board of trustees in accordance with the provisions
of this article.
(b) The board of trustees shall elect a chairman to serve for
a term of two years. The election shall be held at the board's
first meeting after the effective date of this article. Effective
with any vacancy in the chairmanship, the board shall elect a
chairman to a new two-year term. Annually, beginning with the first meeting, the trustees shall elect a secretary, who need not
be a member of the board, to keep a record of the proceedings of
the board.
(c) The trustees shall appoint a chief executive officer of
the trust fund and shall fix his or her duties and compensation.
The chief executive officer shall have five years' experience in
investment management with public or private funds within the ten
years next preceding the date of appointment. The chief executive
officer additionally shall have academic degrees, professional
designations and other investment management or investment
oversight or institutional investment experience in such
combination as the trustees consider necessary to carry out the
responsibilities of the chief executive officer position as defined
by the trustees.
(d) The trustees shall retain an internal auditor to report
directly to the trustees and shall fix his or her compensation.
The internal auditor shall be a certified public accountant with at
least three years' experience as an auditor. The internal auditor
shall develop an internal audit plan, with board approval, for the
testing of procedures and the security of transactions.
(e) Each trustee shall give a separate fiduciary or surety
bond from a surety company qualified to do business within this
state in a penalty amount of one million dollars for the faithful
performance of his or her duties as a trustee of the fund. The
board shall purchase a blanket bond for the faithful performance of
its duties, in the amount of fifty million dollars or in an amount
equivalent to one percent of the assets under management, whichever is greater. The amount of the blanket bond shall be in addition to
the one million dollar individual bond required of each trustee by
the provisions of this section. The board may require a fiduciary
or surety bond from a surety company qualified to do business in
this state for any person who has charge of, or access to, any
securities, funds or other moneys held by the board, and the amount
of the fiduciary or surety bond shall be fixed by the board. The
premiums payable on all fiduciary or surety bonds shall be an
expense of the board.
(f) The trustees and employees of the West Virginia trust fund
are not liable personally, either jointly or severally, for any
debt or obligation created by the West Virginia trust fund:
Provided, That the trustees and employees of the West Virginia
trust fund are liable for acts of misfeasance or gross negligence.
§44-6B-6. Corporate powers.
The fund may exercise all powers necessary or appropriate to
carry out and effectuate its corporate purposes. The fund may:
(1) Adopt and use a common seal and alter the same at
pleasure;
(2) Sue;
(3) Enter into contracts and execute and deliver instruments;
(4) Acquire (by purchase, gift or otherwise), hold, use and
dispose of real and personal property, deeds, mortgages and other
instruments;
(5) Promulgate and enforce bylaws and rules for the management
and conduct of its affairs;
(6) Notwithstanding any other provision of law, retain and
employ legal, accounting, financial and investment advisors,
managers and consultants;
(7) Acquire (by purchase, gift or otherwise), hold, exchange,
pledge, lend and sell or otherwise dispose of securities and invest
funds;
(8) Maintain accounts with banks, securities dealers and
financial institutions both within and outside this state;
(9) Consolidate and manage moneys, securities and other assets
of the pension plans and other funds and accounts of the state and
the moneys of political subdivisions which may be made available to
it under the provisions of this article;
(10) Enter into agreements with political subdivisions of the
state whereby moneys of the political subdivisions are invested on
their behalf by the fund;
(11) Charge and collect administrative investment and
management fees for its services;
(12) Exercise all powers generally granted to and exercised by
the holders of investment securities with respect to management of
the securities;
(13) Make, and from time to time, amend and repeal bylaws,
regulations and procedures not inconsistent with the provisions of
this article;
(14) Hire its own employees, consultants, managers and
advisors as it considers necessary, and fix their compensation and
prescribe their duties;
(15) Develop, implement and maintain its own banking accounts, investments and employee benefit plans;
(16) Borrow or open lines of credit Refund any employer
contributions or other moneys in the event of an erroneous payment
to the fund; and
(17) Receive transfers of all funds held for investment
purposes for the workers' compensation fund and the coal workers'
pneumoconiosis fund which transfers shall be made by the
commissioner of the bureau of employment programs on at least a
monthly basis; and
(18) Do all things necessary to implement and operate the
trust fund and carry out the intent of this article.
(19) To coordinate or combine the ministerial staff of the
board with the board of investments created pursuant to article
six, chapter twelve of this code: Provided, That the professional
staff of the board shall remain separate and distinct and at all
times subject only to the direction of the trust fund board.
§44-6B-7. Annual audits; reports and information to constitutional
and legislative officers, council of finance and
administration, consolidated public retirement board,
workers' compensation fund and coal-workers'
pneumoconiosis fund; statements and reports open for
inspection.
(a) The trust fund shall cause an annual financial and
compliance audit to be made by a certified public accounting firm
having a minimum staff of ten certified public accountants and being a member of the American institute of certified public
accountants, and, if doing business in West Virginia, being a
member of the West Virginia society of certified public
accountants. The financial and compliance audit shall be made of
the trust fund's books, accounts and records, with respect to its
receipts, disbursements, investments, contracts and all other
matters relating to its financial operations. Copies of the audit
report shall be furnished to the governor, state treasurer, state
auditor, president of the Senate, speaker of the House of
Delegates, council of finance and administration and consolidated
public retirement board.
(b) The trust fund shall produce monthly financial statements
and deliver cause them to be delivered to each member of the board
and the executive secretary of the consolidated public retirement
board as established in sections one and two, article ten-d,
chapter five of this code and to the commissioner of the bureau of
employment programs as administrator of the workers' compensation
fund and coal-workers' pneumoconiosis fund, as established in
section one, article one, and section one, article three, and
section seven, article four-b, chapter twenty-three of this code.
(c) The trust fund shall deliver in each quarter to the
council of finance and administration and the consolidated public
retirement board a report detailing the investment performance of
the retirement plans.
(d) The trust fund shall cause an annual performance audit to
be made by a nationally recognized fiduciary service. The trust
fund shall furnish copies of the audit report to the governor, state treasurer, state auditor, president of the Senate, speaker of
the House of Delegates, council of finance and administration and
consolidated public retirement board.
(e) The trust fund shall provide any other information
requested in writing by the council of finance and administration.
(f) All statements and reports required in this section shall
be available for inspection by the members and beneficiaries and
designated representatives of the participant plans.
§44-6B-8. Fees for service.
The trust fund shall charge fees, as adopted at the annual
meeting, for the reasonable and necessary expenses incurred by the
trust fund in rendering services to the participant plans. The
fees shall be subtracted from the total return of the trust fund,
and the net return shall be credited to each of the participant
plans. All fees which are dedicated or identified or readily
identifiable to an individual participant plan shall be charged
against that plan, and all other fees shall be charged as a
percentage of assets under management. At its annual meeting, the
board shall adopt a fee schedule and a budget reflecting fee
structures.
§44-6B-9. Transfers to the trust.
(a) The West Virginia state board of investments shall
transfer to the West Virginia trust fund the computers, and other
necessary items of equipment associated with each position at the
board of investments whose responsibilities and obligations shall
as of the effective date of this section be performed by the West Virginia trust fund.
(b) (a) Any state employee who terminates his or her state
employment and becomes employed by the West Virginia trust fund may
at his or her option defer retirement within the public employees
retirement system pursuant to section twenty-one, article ten,
chapter five of this code, or, may elect to transfer to the West
Virginia trust fund his or her employee contributions, with accrued
interest, and, if vested, his or her employer contributions, with
accrued interest. The West Virginia consolidated public retirement
board shall transfer to the West Virginia trust fund the said
contributions and accrued interest of terminating employees who so
elect. The trust fund shall establish a private, nonstate
retirement plan for the West Virginia trust fund employees, and the
said transferred employee and employer contributions and interest
shall be deposited to the private retirement plan.
(c) Upon the effective date of this article, no more than
seven hundred thousand dollars of those funds remaining in the
special revenue accounts known as the "loss legal expense fund" and
the "security lending fund" and further known as WVFIMS accounts
8563 and 8565 shall be transferred to the West Virginia trust fund
board for its use in the beginning operations of the trust fund.
(b) Any and all assets transferred to or acquired by the West
Virginia Trust Fund, Inc. for its use in the operations of the
trust fund under the prior enactment of this section are hereby
vested in the West Virginia Trust Fund, Inc.
§44-6B-10. Trust indenture.
The governor, on behalf of the state, shall enter into a trust indenture with the West Virginia trust fund as trustee, effective
on the first day of July, one thousand nine hundred ninety-six.
The trust indenture shall contain On the effective date of this
section, all assets of the irrevocable trust entered into by the
governor on the first day of July, one thousand nine hundred
ninety-six with the West Virginia Trust Fund, Inc. acting as the
trustee shall constitute the corpus of the irrevocable trust:
Provided, That the trust shall continue to be subject to the
following provisions:
(a) Simultaneously with the execution of the trust indenture,
the state shall have delivered to the trustee all the assets of the
consolidated pension fund with any other property that may be
transferred hereafter to the trustee by the state, or by any other
person or entity, which shall be used as provided in the trust
indenture and which constitutes the trust estate. The trustee
shall acknowledge receipt of the assets and agree to hold the
assets, and any other property that later may be added to the
trust, and to perform the duties of trustee, according to the terms
and conditions set forth in this trust indenture and in the
provisions of the "West Virginia Trust Fund Act".
(b) (a) The Legislature hereby reserves the following rights
and powers:
(1) The right by supplemental agreement to amend, modify or
alter the terms of this trust without consent of the trustee, or
any beneficiary; and
(2) The right to request and receive additional information
from the trustee at any time.
(c) (b) The state directs the trustee to establish a trust for
the participant plans specified by the state with the earnings and
losses accounted for and charged individually to each participant
plan, including, but not limited to, the following:
(1) The public employees retirement system;
(2) The teachers retirement system;
(3) The West Virginia state police retirement system;
(4) The death, disability and retirement fund of the
department of public safety;
(5) The judges' retirement system;
(6) The pneumoconiosis fund; and
(7) The workers' compensation fund.
(d) (c) In the administration of the trust created by the
trust indenture, the trustee has the following powers:
(1) To purchase, retain, hold, transfer and exchange, and to
sell, at public or private sale, the whole or any part of the trust
estate upon such terms and conditions as it considers advisable;
(2) To invest and reinvest the trust estate or any part
thereof, in any kind of property, real or personal, including, but
not limited to, mortgage or mortgage participations, common stocks,
preferred stocks, common trust funds, bonds, notes or other
securities, notwithstanding the provisions of articles five and
six, chapter forty-four of the code of West Virginia, one thousand
nine hundred thirty-one, as amended: Provided, That notwithstanding
the provisions of this act to the contrary, the trust fund shall
not become a stockholder or owner of any company or association for
any purpose whatsoever unless and until the provisions of section six, article ten, of the West Virginia Constitution are amended to
permit those investments;
(3) To carry the securities and other property held under the
trust indenture either in the name of the trustee or in the name of
its nominee;
(4) To vote, in person or by proxy, all securities held under
the trust indenture, to join in or to dissent from and oppose the
reorganization, recapitalization, consolidation, merger,
liquidation or sale of corporations or property; to exchange
securities for other securities issued in connection with or
resulting from any transaction; to pay any assessment or expense
which the trustee considers advisable for the protection of its
interest as holder of any such securities; to deposit securities in
any voting trust or with any protective or like committee, or with
a trustee depository; to exercise any option appurtenant to any
securities for the conversion of any securities into other
securities; and to exercise or sell any rights issued upon or with
respect to the securities of any corporation, all upon terms the
trustee considers advisable;
(5) To prosecute, defend, compromise, arbitrate or otherwise
adjust or settle claims in favor of or against the trustee or other
trust estate;
(6) To employ and pay from the trust estate legal and
investment counsel, brokers and such other assistants and agents as
the trustee considers advisable; and
(7) To develop, implement and modify an asset allocation plan
for each participant plan. The asset allocation plans shall be implemented within the management and investment of the trust fund.
(e) All trust income shall be free from anticipation,
alienation, assignment or pledge by, and free from attachment,
execution, appropriation or control by or on behalf of, any and all
creditors of any beneficiary by any proceeding at law, in equity,
in bankruptcy or insolvency.
(f) The trustee may receive any other property, real or
personal, tangible or intangible, of any kind whatsoever, that may
be granted, conveyed, assigned, transferred, devised, bequeathed or
made payable to it by the state, or by any other person or entity,
for the purposes of the trust created by the trust indenture, and
all such properties shall be held, managed, invested and
administered by the trustee as provided in the trust indenture and
in the "West Virginia Trust Fund Act".
(g) The trustee shall promptly cause to be paid to the state
the amounts certified by the governor as necessary for the monthly
payment of benefits to the beneficiaries of the trust.
(h) The trustees shall render an annual accounting to the
state not more than one hundred twenty days following the close of
the fiscal year of the trust.
(i) The irrevocable trust created by this indenture is not
will not be invalid by reason of any existing law or rule against
perpetuities or against accumulations or against restraints upon
the power of alienation, but the trust may continue for such time
as necessary to accomplish the purposes for which it is
established.
(j) If any provision of the trust indenture is void, invalid or unenforceable, the remaining provisions are nevertheless valid
and shall be carried into effect.
§44-6B-11. Standard of care.
Any investments made under this article shall be made with the
care, skill, prudence and diligence under the circumstances then
prevailing that a prudent person acting in a like capacity and
familiar with such matters would use in the conduct of an
enterprise of a like character and with like aims in accordance
with the provisions of the "Uniform Prudent Investor Act" codified
at article six-c, of this chapter and shall be further subject to
the following requirements:
(a) Trustees shall discharge their duties for the exclusive
purpose of providing benefits to participants and their
beneficiaries;
(b) Trustees shall diversify fund investment so as to minimize
the risk of large losses unless, under the circumstances, it is
clearly prudent not to do so;
(c) Trustees shall defray reasonable expenses of investing and
operating the fund; and
(d) Trustees shall discharge their duties in accordance with
the documents and instruments governing the plan insofar as such
documents and instruments are consistent with the provisions of
this article.
§44-6B-12. Limitations on investments.
(a) The trust fund shall not become a stockholder or owner of
any company or association for any purpose whatsoever unless and until the provisions of section six, article ten of the West
Virginia Constitution are amended to provide for those investments.
If at some time, after the effective date of this section, the
provisions of section six, article ten of the West Virginia
Constitution are amended to allow the state to become a stockholder
in a corporation, the The trust fund shall limit its asset
allocation and types of securities to the following:
(1)(a) Through the first day of July, one thousand nine
hundred ninety-seven, For the first twelve months following
authorization of the state to become a stockholder or owner of any
corporation, the trust fund shall hold in equity investments no
more than twenty percent of its total portfolio and no more than
twenty percent of the assets of any individual participant plan;
after the first day of July, one thousand nine hundred ninety-
seven, and through the first day of July, two thousand, during the
thirteenth through and including the twenty-fourth month following
the authorization, the trust fund shall hold in equity investments
no more than forty percent of its total portfolio and no more than
forty percent of the assets of any individual participant plan;
after the first day of July, two thousand, and thereafter, the
trust fund shall hold in equity investments no more than sixty
percent of its total portfolio and no more than sixty percent of
the assets of any individual participant plan.
(b) (2) The trust fund shall hold in international securities
no more than twenty percent of its portfolio and no more than
twenty percent of the assets of any individual participant plan.
(c) (3) The trust fund may not at the time of purchase hold more than five percent of its equity portfolio in the equity
securities of any single company or association: Provided, That if
a company or association has a market weighting of greater than
five percent in the Standard & Poor's 500 index of companies, the
trust fund may hold securities of that equity equal to its market
weighting.
(b) The trust fund shall at all times limit its asset
allocation and types of securities to the following:
(d) (1) The trust fund may not hold more than twenty percent
of its portfolio in commercial paper. Any commercial paper at the
time of its acquisition shall be in one of the two highest rating
categories by an agency nationally known for rating commercial
paper.
(e) (2) At no time shall the trust fund hold more than
seventy-five percent of its portfolio in corporate debt. Any
corporate debt security at the time of its acquisition shall be
rated in one of the four highest rating categories by a nationally
recognized rating agency.
(f) (3) No security may be purchased by the trust fund unless
the type of security is on a list approved by the trust fund board.
The board may modify the securities list at any time, and must give
notice of that action pursuant to subsection (g), section four of
this article, and must review the said list at its annual meeting.
(g) (c) The board, at the annual meeting provided for in
subsection (i) (h), section four of this article, shall review,
establish and modify, if necessary, the investment objectives of
the individual participant plans, as incorporated in the investment policy statement of the trust so as to provide for the financial
security of the trust fund giving consideration to the following:
(1) Preservation of capital;
(2) Diversification;
(3) Risk tolerance;
(4) Rate of return;
(5) Stability;
(6) Turnover;
(7) Liquidity; and
(8) Reasonable cost of fees.
CHAPTER 50. MAGISTRATE COURTS.
ARTICLE 3. COSTS, FINES AND RECORDS.
§50-3-2a. Payment of fines by credit card or payment plan;
suspension of licenses for failure to pay fines or
appear or respond.
(a) A magistrate court may accept credit cards in payment of
all costs, fines, forfeitures or penalties. The supreme court of
appeals shall adopt rules regarding the use of credit
or check
cards to pay fines and
the rules shall state that any charges made
by the credit company shall be paid by the person responsible for
paying the fine. any charges made by the credit card company many
be paid from the gross credit card collections. A magistrate court
may collect a portion of any costs, fines, forfeitures or penalties
at the time the amount is imposed by the court so long as the court
requires the balance to be paid in accordance with a payment plan which specifies: (1) The number of payments to be made; (2) the
dates on which such payments and amounts shall be made; and (3)
amounts due on such dates.
(b)If any costs, fines, forfeitures, restitution or
penalties imposed or ordered by the magistrate court for hunting or
fishing violations as described in chapter twenty of this code are
not paid in full as directed by the magistrate court, the
magistrate court clerk or, upon a judgment rendered on appeal, the
circuit clerk, shall notify the director of the division of natural
resources, of such failure to pay. If any costs, fines,
forfeitures, restitution or penalties imposed by the magistrate
court in a criminal case are not paid as directed by the magistrate
court, the magistrate court clerk or, upon judgment rendered on
appeal, the circuit clerk, shall notify the director of the
division of motor vehicles of the failure to pay. Upon
such
notice, the division of motor vehicles shall suspend the operator's
or commercial driver's license and the director of the division of
natural resources shall suspend the hunting or fishing license of
the person defaulting on payment until such time that the costs,
fines, forfeitures, restitution or penalties are paid.
(c)If a person charged with any criminal violation of this
code fails to appear or otherwise respond in court, the magistrate
court shall notify the director of the division of motor vehicles
thereof within fifteen days of the scheduled date to appear, unless
the person sooner appears or otherwise responds in court to the satisfaction of the magistrate. Upon such notice, the division of
motor vehicles shall suspend the operator's or commercial driver's
license of the person failing to appear or otherwise respond in
accordance with the provisions of section six, article three,
chapter seventeen-b of this code.
(d)In every criminal case which involves a misdemeanor
violation, a magistrate may order restitution where appropriate
when rendering judgment.
(e)If all costs, fines, forfeitures, restitution or
penalties imposed by a magistrate court and ordered to be paid are
not paid as ordered by the judgment of the magistrate court, the
clerk of the magistrate court shall notify the prosecuting attorney
of the county of such nonpayment and provide the prosecuting
attorney with an abstract of judgment. The prosecuting attorney
shall file the abstract of judgment in the office of the clerk of
the county commission in the county where the defendant was
convicted and in any county wherein the defendant resides or owns
property. The clerk of the county commission shall record and
index the abstracts of judgment without charge or fee to the
prosecuting attorney, and when so recorded, the amount stated to be
owing in the abstract shall constitute a lien against all property
of the defendant.
CHAPTER 57. EVIDENCE AND WITNESSES.
ARTICLE 1. LEGISLATIVE ACTS AND RESOLUTIONS; PUBLIC RECORDS.
§57-1-7a. Use of photographic copies in evidence; state records, papers or documents; destruction or transfer to
archives of originals; destruction of canceled checks
and paid and canceled bonds and coupons.
(a) Any public officer of the state may, with the approval of
the state records administrator cause any or all records, papers or
documents kept by him to be
photographed, microphotographed,
microfilmed or reproduced on film. reproduced, by any photographic,
photostatic, microphotographic or by similar miniature photographic
process or by nonerasable optical image disks (commonly referred to
a compact disks) or by other records retention technology approved
by the state records administrator. Such These photographic film
reproductions by photographic, photostatic, microphotographic or
by similar miniature photographic process or by nonerasable optical
image disks shall be of durable material and the device used to
reproduce such records on such film shall be one which accurately
reproduces the originals thereof in all details.
The Such photographs, microphotographs, microfilms or
photographic film reproductions by photographic, photostatic,
microphotographic or by similar miniature photographic process or
nonerasable optical image disks shall be deemed to be an original
record for all purposes, including introduction in evidence in all
courts or administrative agencies. A transcript, exemplification
or certified copy thereof shall, for all purposes recited herein,
be deemed to be a transcript, exemplification or certified copy of
the original. Whenever
photographs, microphotographs, microfilms or reproductions on film reproductions by photographic,
photostatic, microphotographic or by similar miniature photographic
process or nonerasable optical image disks have been made and put
in conveniently accessible fireproof files, and provision has been
made for preserving, examining and using the same, the respective
heads of the departments, divisions, institutions and agencies of
the state may, with the approval of the state records
administrator, cause the records and papers so
photographed,
microphotographed or reproduced on film reproduced by photographic,
photostatic, microphotographic or by similar miniature photographic
process or nonerasable optical image disks, or any part thereof, to
be destroyed; but before any
such records, papers or documents are
authorized to be destroyed, the state records administrator shall
obtain the advice and counsel of the state historian and archivist,
or his designated representative, as to the desirability of placing
the
said the records, papers and documents in the archives of that
department. In the event the administrator is of the opinion that
the record has no further administrative, legal, fiscal, research
or historical value, the administrator may destroy or otherwise
dispose of the record, paper or document if otherwise permitted to
do so after complying with the provisions of section seventeen,
article eight, chapter five-a of this code.
(b) Not withstanding any other provisions of this code to the
contrary, the state treasurer may at his discretion destroy any
canceled checks of the state after
ten three years have elapsed since the date of the check, whether or not such checks have been
photographed, microphotographed, microfilmed or reproduced on film
reproduced by photographic, photostatic, microphotographic or by
similar miniature photographic process or nonerasable optical image
disks:
Provided, That any canceled bonds or interest coupons of any
bond issues of this state in the custody of the treasurer, or for
which the treasurer acts as fiscal agent or paying agent, may at
his discretion be destroyed by one of the two methods below:
Method I - The treasurer shall maintain a permanent record for
the purpose of recording the destruction of bonds and coupons,
showing the following: (1) With respect to bonds, the purpose of
issuance, the date of issue, denomination, maturity date, and total
principal amount; and (2) with respect to coupons, the purpose of
issue and date of the bonds to which the coupons appertain, the
maturity date of the coupons, and, as to each maturity date, the
denomination, quantity and total amount of coupons.
After recording the specified information, the treasurer shall
have the canceled bonds and coupons destroyed either by burning or
shredding, in the presence of an employee of the treasurer and an
employee of the legislative auditor, each of whom shall certify
that he saw the canceled bonds and coupons destroyed.
The Such
certificates shall be made a part of the permanent record.
Canceled bonds or coupons shall not be destroyed until after one
year from the date of payment.
Method II - The treasurer may contract with any bank or trust company acting as paying agent or copaying agent for a bond issue
of the state for the destruction of bonds and interest coupons
which have been canceled by the paying agent. The contract shall
require that the paying agent give the treasurer a
written
certificate containing the same information required by Method I.
Such certificate shall include a sworn statement that the described
bonds or coupons have been destroyed. The certificate shall be
made a part of the treasurer's permanent records.
Each contract shall also require that the paying agent be
responsible for proper payment and disposition of all bonds and
coupons, and for any duplicate payments to unauthorized persons and
nonpayment to authorized persons occurring as a result of
destruction of bonds or coupons under this section. In addition,
the treasurer may require the paying agent to submit an indemnity
bonds, in an amount to be determined by the treasurer, to assure
performance of the duties specified in this section. Canceled
bonds or coupons may not be destroyed until one year from the date
of payment.
For purposes of this section, the term "bonds" shall include
interim certificates.
CHAPTER 59. FEES, ALLOWANCES AND COSTS; NEWSPAPERS; LEGAL
ADVERTISEMENTS.
ARTICLE 1. FEES AND ALLOWANCES.
§59-1-12. Payment of fines by credit card or payment plan.
A circuit court may accept credit cards in payment of all fines, cost, forfeiture, restitution or penalties. The supreme
court of appeals shall adopt rules regarding the use of credit
or
check cards to pay fines, and
the rules shall state that any
charges made by the credit card company shall be paid by the person
responsible for paying the fine, cost, forfeiture, restitution or
penalty. any charges made by the credit card company may be paid
from the gross credit card collections.
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