H. B. 2175

(By Mr. Speaker, Mr. Kiss, and Delegate Trump)
[By Request of the Executive]
[Introduced January 14, 2003; referred to the
Committee on Government Organization then Finance.]

A BILL to repeal articles one-b and one-c, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to repeal section three, article two, chapter thirty-one-a of said code; to amend and reenact sections one and two, article ten-d; and sections three and four, article sixteen, all of chapter five of said code; to amend and reenact sections one, two, and four, article one; sections one, twenty-eight and thirty-three, article two; section one, article three; section one, article four; and article seven, all of chapter five-a of said code; to further amend said article four of chapter five-a by adding thereto five new sections, designated sections six through ten; and to further amend said chapter five-a by adding thereto two new articles, designated articles ten and eleven; to amend chapter five-b of said code by adding thereto a new article, designated article one; to further amend said code by adding thereto a new chapter, designated chapter five-g; to amend and reenact sections two and three, article one, and sections one and two, article two, chapter five-f of said code; to amend and reenact sections five, six and seven, article six, and sections two, three, four, five and twelve, article twelve, all of chapter twenty-nine of said code; to amend and reenact section two, article one, and sections one, four and twelve, article two, all of chapter thirty-one-a of said code; to amend and reenact sections one, fifteen and sixteen, article two, and sections six and seven, article twenty-b, all of chapter thirty-three of said code; to amend and reenact sections one and two, article one, chapter forty-seven-a of said code, all relating to reorganizing the executive branch of government; restructuring the grouping of state agencies under departments headed by department secretaries; consolidating the department of administration and the department of tax and revenue into a new department of finance and administration; establishing five divisions of the new department of finance and administration and allocating the functions of current divisions, boards and offices to one of the five divisions; abolishing the position of chief technology officer in the office of the governor, the information services and communications division, and the science and technology council, and creating a new technology division and office of chief information officer; abolishing the insurance and retirement division of the department of administration and creating a new employee and insurance services division within the department of finance and administration; providing that the director of the employee and insurance services division shall have the power and duty to chair certain boards and consolidate or reorganize certain internal functions and operations, transfer funds, and supervise internal management; creating a new regulatory services division within the department of finance and administration; providing that the director of the regulatory services division shall have the power and duty to consolidate or reorganize certain internal functions and operations, transfer funds, and supervise internal management; transferring professional and occupation boards of examination and registration to the division of regulatory services; creating a new department of tourism, natural resources and parks and transferring certain agencies formerly within the bureau of commerce to the new division; providing that the commissioner of tourism, natural resources and parks shall have the power to consolidate or reorganize certain internal functions and operations, transfer funds, and supervise internal management of agencies within the division; reorganizing and consolidating certain functions of the insurance commissioner, the division of banking and the state board of risk and insurance management; redesignating the agency of insurance commissioner as the division of insurance; creating an executive officer for the supervision and control of banking and insurance functions; modifying the powers and duties of department secretaries; abolishing the bureau of commerce and transferring certain agencies formerly within the bureau to other departments and divisions; transferring public defender services and the prosecuting attorneys institute to the department of military affairs and public safety; modifying the internal structure and functions of certain transferred agencies and the composition of certain boards and commissions to conform with the purposes of said reorganization of the executive branch.

Be it enacted by the Legislature of West Virginia:
That articles one-b and one-c, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be repealed; that section three, article two, chapter thirty-one-a of said code be repealed; that sections one and two, article ten-d, and sections three and four, article sixteen, all of chapter five of said code be amended and reenacted; that sections one, two, and four, article one; sections one, twenty-eight and thirty-three, article two; section one, article three; section one, article four; and article seven, all of chapter five-a of said code be amended and reenacted; that said article four of chapter five-a be further amended by adding thereto five new sections designated sections six through ten; and that said chapter five-a be further amended by adding thereto two new articles, designated articles ten and eleven; that chapter five-b of said code be amended by adding thereto a new article, designated article one; that said code be further amended by adding thereto a new chapter, designated chapter five-g; that sections two and three, article one, and sections one and two, article two, all of chapter five-f of said code be amended and reenacted; that sections five, six and seven, article six, and sections two, three, four, five and twelve, article twelve, chapter twenty-nine of said code be amended and reenacted; that section two, article one, and sections one, four and twelve, article two, all of chapter thirty-one-a of said code be amended and reenacted; that sections one, fifteen and sixteen, article two, and sections six and seven, article twenty-b, all of chapter thirty-three of said code be amended and reenacted; and that sections one and two, article one, chapter forty-seven-a of said code be amended and reenacted, all to read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR,
SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD
OF PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS,
OFFICES, PROGRAMS, ETC.
ARTICLE 10D. CONSOLIDATED PUBLIC RETIREMENT BOARD.

§5-10D-1. Consolidated public retirement board continued; members; vacancies; investment of plan funds.

(a) There is hereby continued a consolidated public retirement board to administer all public retirement plans in this state. It shall administer the public employees retirement system established in article ten of this chapter; the teachers retirement system established in article seven-a, chapter eighteen of this code; the teachers' defined contribution retirement system created by article seven-b of said chapter; the West Virginia state police death, disability and retirement fund created by article two, chapter fifteen of this code; the West Virginia state police retirement system created by article two-a of said chapter; the death, disability and retirement fund for deputy sheriffs created by article fourteen-d, chapter seven of this code; and the judges' retirement system created under article nine, chapter fifty-one of this code.
(b) The consolidated public retirement board shall begin administration of the death, disability and retirement fund for deputy sheriffs established in article fourteen-d, chapter seven of this code on the first day of July, one thousand nine hundred ninety-eight.
(c) (b) The membership of the consolidated public retirement board consists of:
(1) The governor or his or her designee;
(2) The state treasurer or his or her designee;
(3) The state auditor or his or her designee;
(4) The secretary of the department of finance and administration or his or her designee
(5) The director of the employee and insurance services division of the department of finance and administration;
(5) (6) Four residents of the state, who are not members, retirants or beneficiaries of any of the public retirement systems, to be appointed by the governor, with the advice and consent of the Senate; and
(6) (7) A member, annuitant or retirant of the public employees retirement system who is or was a state employee; a member, annuitant or retirant of the public employees retirement system who is not or was not a state employee; a member, annuitant or retirant of the teachers retirement system; a member, annuitant or retirant of the West Virginia state police death, disability and retirement fund; a member, annuitant or retirant of the deputy sheriff's death, disability and retirement fund; and a member, annuitant or retirant of the teachers' defined contribution retirement system, all to be appointed by the governor, with the advice and consent of the Senate.
(d) (c) On the thirtieth day of April, two thousand three, the terms of all appointed members of the board, appointed prior to the effective date of this section, shall expire. Not later than the thirtieth day of April, two thousand three, the governor shall reappoint all members provided for in subdivisions (6) and (7), subsection (b) of this section, to assume the duties of the office immediately, pending the advice and consent of the Senate. The appointed members of the board shall serve five-year terms. The governor shall appoint the member representing the deputy sheriff's death, disability and retirement fund by the first day of July, one thousand nine hundred ninety-eight, to a five-year term. A member appointed pursuant to subdivision (6), subsection (c) (b) of this section ceases to be a member of the board if he or she ceases to be a member of the represented system. If a vacancy occurs in the appointed membership, the governor, within sixty days, shall fill the vacancy by appointment for the unexpired term. No more than five appointees shall be of the same political party.
(e) (d) The consolidated public retirement board has all the powers, duties, responsibilities and liabilities of the public employees retirement system established pursuant to article ten of this chapter; the teachers retirement system established pursuant to article seven-a, chapter eighteen of this code; the teachers' defined contribution system established pursuant to article seven-b of said chapter; the West Virginia state police death, disability and retirement fund created pursuant to article two, chapter fifteen of this code; the death, disability and retirement fund for deputy sheriffs created pursuant to article fourteen-d, chapter seven of this code; and the judges' retirement system created pursuant to article nine, chapter fifty-one of this code and their appropriate governing boards. The consolidated public retirement board may propose for promulgation all rules necessary to effectuate its powers, duties and responsibilities pursuant to article three, chapter twenty-nine-a of this code: Provided, That the board may adopt any or all of the rules, previously promulgated, of a retirement system which it administers.
(f) (e) Effective on the first day of July, one thousand nine hundred ninety-six, the consolidated public retirement board shall, within two business days of receipt, transfer The consolidated public retirement board shall continue to transfer all funds received by the consolidated public retirement board for the benefit of the retirement systems within the consolidated pension plan as defined in section three-c, article six-b, chapter forty-four of this code, including, but not limited to, all employer and employee contributions, to the West Virginia investment management board: Provided, That the employer and employee contributions of the teachers' defined contribution system, established in section three, article seven-b, chapter eighteen of this code, and voluntary deferred compensation funds invested by the West Virginia consolidated public retirement board pursuant to section five, article ten-b of this chapter may not be transferred to the West Virginia investment management board.
(g) (f) Notwithstanding any provision of this code or any legislative rule to the contrary, all assets of the public retirement plans set forth in subsection (a) of this section shall be held in trust. The consolidated public retirement board shall be a trustee for all public retirement plans, except with regard to the investment of funds: Provided, That the consolidated public retirement board shall be a trustee with regard to the investments of the teachers' defined contribution system, the voluntary deferred compensation funds invested pursuant to section five, article ten-b of this chapter and any other assets of the public retirement plans administered by the consolidated public retirement board as set forth in subsection (a) of this section for which no trustee has been expressly designated in this code.
(h) (g) The board may employ the West Virginia investment management board to provide investment management consulting services for the investment of funds in the teachers' defined contribution system.

§5-10D-2. Chairman and vice chairman; executive director; employees; legal advisor; actuary.

(a) The secretary of the department of finance and administration, or his or her designee, shall serve as chair of the board. The board shall elect from its own number a chairman and vice chairman.
(b) The board shall appoint an executive director of the retirement systems. The executive director shall be the chief administrative officer of all the systems and he or she shall not be a member of the board. He or she shall perform such duties as are required of him or her in this article and as the board from time to time delegates to him or her. The compensation of the executive director shall be fixed by the board subject to the approval of the governor. The executive director shall, with the approval of the board of trustees, employ such administrative, technical and clerical employees as are required in the proper operation of the systems.
(c) Notwithstanding the provisions of section two, article three of this chapter, the board shall employ and be represented by an attorney licensed to practice law in the state of West Virginia who is not a member of any of the retirement systems administered by the board.
(d) An actuary, employed by the state or the board pursuant to section four of this article, shall be the actuarial consultant to the board.
(e) Prior to the first day of July, one thousand nine hundred ninety-one, the expenses of the board for the administration of the teachers' defined contribution retirement system created pursuant to article seven-b, chapter eighteen of this code shall be paid by the teachers retirement system created pursuant to article seven-a of said chapter.
ARTICLE 16. WEST VIRGINIA PUBLIC EMPLOYEES INSURANCE ACT.

§5-16-3. Composition of public employees insurance agency; appointment, qualification, compensation and duties of director of agency; employees; civil service coverage; director vested after specified date with powers of public employees insurance board.

(a) The public employees insurance agency consists of the director, the finance board, the advisory board and any employees who may be authorized by law. The director shall be appointed by the governor, with the advice and consent of the Senate. He or she shall serve at the will and pleasure of the governor, unless earlier removed from office for cause as provided by law. The director shall have at least three years' experience in health insurance or governmental health benefit administration as his or her primary employment duty prior to appointment as director. The director shall receive actual expenses incurred in the performance of official business. The director shall employ such administrative, technical and clerical employees that are required for the proper administration of the insurance programs provided for in this article. The director shall perform the duties that are required of him or her under the provisions of this article and is the chief administrative officer of the public employees insurance agency. The director may employ a deputy director.
(b) All positions in the agency, except for the director, his or her personal secretary, the deputy director and the chief financial officer shall be included in the classified service of the civil service system pursuant to article six, chapter twenty-nine of this code. Any person required to be included in the classified service by the provisions of this subsection who was employed in any of the positions included in this subsection on or after the effective date of this article shall not be required to take and pass qualifying or competitive examinations upon or as a condition to being added to the classified service: Provided, That no person required to be included in the classified service by the provisions of this subsection who was employed in any of the positions included in this subsection as of the effective date of this section shall be thereafter severed, removed or terminated in his or her employment prior to his or her entry into the classified service except for cause as if the person had been in the classified service when severed, removed or terminated.
(c) The director is responsible for the administration and management of the public employees insurance agency as provided for in this article and in connection with his or her responsibility may make all rules necessary to effectuate the provisions of this article. Nothing in section four or five of this article limits the director's ability to manage on a day-to-day basis the group insurance plans required or authorized by this article, including, but not limited to, administrative contracting, studies, analyses and audits, eligibility determinations, utilization management provisions and incentives, provider negotiations, provider contracting and payment, designation of covered and noncovered services, offering of additional coverage options or cost containment incentives, pursuit of coordination of benefits and subrogation, or any other actions which would serve to implement the plan or plans designed by the finance board.

§5-16-4. Public employees insurance agency finance board continued; qualifications, terms and removal of members; quorum; compensation and expenses; termination date.

(a) There is hereby continued the public employees insurance agency finance board, which consists of the director of the employee and insurance services division of the department of finance and administration and six eight members appointed by the governor with the advice and consent of the Senate for terms of four years and until the appointment of their successors. Provided, That of the two members added to the board by the amendment of this section, enacted during the regular legislative session, one thousand nine hundred ninety-nine, the at-large member shall be appointed for an initial term of two years and the member representing organized labor shall be appointed for a term of four years Members may be reappointed for successive terms. No more than four five members (including the director) may be of the same political party.
(b) Of the six eight members appointed by the governor, one member shall represent the interests of education employees, one shall represent the interests of public employees, one shall represent the interests of retired employees, one shall represent the interests of organized labor and three four shall be selected from the public at large. The governor shall appoint the member representing the interests of education employees from a list of three names submitted by the largest organization of education employees in this state. The governor shall appoint the member representing the interests of organized labor from a list of three names submitted by the state's largest organization representing labor affiliates. The three four members appointed from the public shall each have experience in the financing, development or management of employee benefit programs. All new appointments made after the first day of July, one thousand nine hundred ninety-four, shall be selected to represent the different geographical areas within the state and all members shall be residents of West Virginia. No member may be removed from office by the governor except for official misconduct, incompetence, neglect of duty, neglect of fiduciary duty or other specific responsibility imposed by this article, or gross immorality.
(c) The director of the employee and insurance services division shall serve as chairperson chair of the finance board, which shall meet at times and places specified by the call of the director chair or upon the written request to the director chair of at least two members. The director of the public employees insurance agency shall serve as staff to the board. Notice of each meeting shall be given in writing to each member by the director at least three days in advance of the meeting. Four Five members constitutes a quorum. The board shall pay each member the same compensation and expense reimbursement as is paid to members of the Legislature for their interim duties, as recommended by the citizens legislative compensation commission and authorized by law for each day or portion of a day engaged in the discharge of official duties.
(d) Pursuant to the provisions of article ten, chapter four of this code, the finance board shall terminate on the first day of July, two thousand three, unless extended by legislation enacted before the termination date.
(e) Upon termination of the board and notwithstanding any provisions in this article to the contrary, the director is authorized to assess monthly employee premium contributions and to change the types and levels of costs to employees only in accordance with this subsection. Any assessments or changes in costs imposed pursuant to this subsection shall be implemented by legislative rule proposed by the director for promulgation pursuant to the provisions of article three, chapter twenty-nine-a of this code; any employee assessments or costs previously authorized by the finance board shall then remain in effect until amended by rule of the director promulgated pursuant to this subsection.
CHAPTER 5A. DEPARTMENT OF FINANCE AND ADMINISTRATION.
ARTICLE 1. DEPARTMENT OF FINANCE AND ADMINISTRATION.

§5A-1-1. Definitions.

For the purpose of this chapter:
"Commodities" means supplies, material, equipment, contractual services, and any other articles or things used by or furnished to a department, agency or institution of state government.
"Contractual services" shall include telephone, telegraph, electric light and power, water and similar services.
"Director" means the director of the division referred to in the heading of the article in which the word appears, or the director of the division that includes the function referenced in the article heading.
"Expendable commodities" means those commodities which, when used in the ordinary course of business, will become consumed or of no market value within the period of one year or less.
"Nonprofit workshops" means an establishment: (a) Where any manufacture or handiwork is carried on; (b) which is operated either by a public agency or by a cooperative or by a nonprofit private corporation or nonprofit association, in which no part of the net earnings thereof inures, or may lawfully inure, to the benefit of any private shareholder or individual; (c) which is operated for the primary purpose of providing remunerative employment to blind or severely disabled persons who cannot be absorbed into the competitive labor market; and (d) which shall be approved, as evidenced by a certificate of approval, by the state board of vocational education, division of vocational rehabilitation.
"Printing" means printing, binding, ruling, lithographing, engraving and other similar services.
"Removable property" means any personal property not permanently affixed to or forming a part of real estate.
"Secretary" means the secretary of finance and administration and, as used in article two of this chapter, the director of the budget.
"Spending officer" means the executive head of a spending unit, or a person designated by him.
"Spending unit" means a department, agency or institution of the state government for which an appropriation is requested, or to which an appropriation is made by the Legislature.

§5A-1-2. Department of finance and administration and office of secretary; transfers of funds; transition; savings provision; divisions.

(a) There is hereby created within the executive branch of state government a department of finance and administration and the office of secretary of the department of finance and administration. The secretary shall be the chief executive officer of the department and director of the budget and shall be appointed by the governor, by and with the advice and consent of the Senate, and shall serve at the will and pleasure of the governor. The department of administration, the office of the secretary of the department of administration, the department of tax and revenue, and the office of secretary of the department and tax and revenue are abolished. All duties of the secretary of the department of administration and the secretary of the department of tax and revenue are hereby vested in the secretary of the department of finance and administration. All records, responsibilities, obligations, assets and property, of whatever kind and character, of the department of tax and revenue and the department of administration are transferred to the department of finance and administration. The balances of all funds of the department of administration and the department of tax and revenue are transferred to the department of finance and administration. The department of finance and administration is hereby authorized to receive federal funds.
(b) The abolishment of executive agencies and officers, the associated transfer of functions, property and funds provided for in subsection (a) of this section, and the internal reorganization of divisions of the department of finance and administration provided for in this chapter are effective on the first day of July, two thousand three: Provided, That on the effective date of this section, the secretary of the department of administration and the secretary of the department of tax and revenue are authorized to undertake such actions as are reasonably required for an orderly transition. Upon the transfer of the functions of the department of administration and the department of tax and revenue to the department of finance and administration, the secretary of the department of finance and administration is empowered to authorize transfers of program funds associated with the reorganization of the executive branch of government provided for in section one, article two, chapter five-f of this code as amended and reenacted in the year two thousand three, and shall authorize such transfers of program funds as are necessary to facilitate an orderly transfer of functions. Authority to make transfers pursuant to this subsection expires on the thirtieth day of June, two thousand four.
(c) All orders, determinations, rules, permits, grants, contracts, certificates, licenses, waivers, bonds, authorizations and privileges which have been issued, made, granted, or allowed to become effective by the governor, any state department or agency or official thereof, or by a court of competent jurisdiction, in the performance of functions which have been transferred to the director or to the division, and were in effect on the date such transfer occurred continue in effect, for the benefit of the division, according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with the law by the governor, the secretary, the director, or other authorized official, a court of competent jurisdiction, or by operation of law.
(d) Any proceedings, including notices of proposed rule making, or any application for any license, permit, certificate, or financial assistance pending before any department, division or other office, functions of which were transferred to the department of finance and administration are not affected by the transfer. Orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or revoked by the governor, the secretary, by a court of competent jurisdiction, or by operation of law. Nothing in this subsection prohibits the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if the division had not been created or if functions or offices had not been transferred to the division. The creation of the department of finance and administration and the subsequent transfer of functions do not affect suits commenced prior to the effective date of the creation by or against any department, division, office or officer, and in all such suits, proceedings shall be had, appeals taken, and judgments rendered in the same manner and with like effect as if the creation or transfer had not occurred, except that the secretary of the department of finance and administration or other officer may, in an appropriate case, be substituted or added as a party.
(e) There shall be in the department of finance and administration:
(1) The central services division, which shall include the purchasing section provided for in article three of this chapter and the general services section provided for in article four of this chapter;
(2) The technology division provided for in article seven of this chapter;
(3) The financial and management services division, which shall include the finance section provided for in article two of this chapter and all agencies, boards, commissions and councils specified in section one of that article;
(4) The employee and insurance services division provided for in article ten of this chapter and all agencies, boards, commissions and councils specified in section one of that article; and
(5) The regulatory division provided for in article eleven of this chapter, and all agencies, boards, commissions and councils specified in section one of that article.
Each division shall be headed by a director. The secretary of the department of finance and administration shall designate a commissioner, director or other statutory officer of an agency, board, commission or council within each division to serve as division director. Any agency or board transferred to a division of the department of finance and administration pursuant to this subdivision will not have their appellate or independent decision-making status affected by the enactment of this section. Nothing in this section extends the powers of department secretaries under section two, article two, chapter five-f of this code to any person other than a department secretary or limits or abridges the statutory powers and duties of statutory commissioners or officers pursuant to this code.

§5A-1-4. Council of finance and administration.

The council of finance and administration is hereby created and shall be composed of ten members, four of whom shall serve ex officio and six of whom shall be appointed as herein provided. The ex officio members shall be the secretary of the department of finance and administration, the attorney general or his designee, the state treasurer or his designee and the state auditor or his designee; such designees being authorized voting ones. From the membership of the Legislature, the president of the Senate shall appoint three senators as members of the council, not more than two of whom shall be members of the same political party, and the speaker of the House of Delegates shall appoint three delegates as members of the council, not more than two of whom shall be members of the same political party. Members of the council appointed by the president of the Senate and the speaker of the House of Delegates shall serve at the will and pleasure of the officer making their appointment. The secretary of the department of finance and administration shall serve as chairman of the council. Meetings of the council shall be upon call of the chairman or a majority of the members thereof. It shall be the duty of the chairman to call no less than four meetings in each fiscal year, one in each quarter, or more often as necessary, and all meetings shall be open to the public. All meetings of the council shall be held at the capitol building in a suitable committee room which shall be made available by the Legislature for such purpose: Provided, That the second quarterly meeting in each fiscal year shall be held in November and shall be a joint meeting with the joint committee on government and finance of the Legislature called jointly by the president of the Senate, speaker of the House of Delegates and secretary of finance and administration.
The council shall serve the department of finance and administration in an advisory capacity for purposes of reviewing the performance of the administrative and fiscal procedures of the state, including the oversight of all federal funds, and shall have the following duties:
(1) To advise with the secretary in respect to matters of budgetary intent and efficiency, including budget bill and budget document detail and format;
(2) To advise with the secretary concerning such studies of government and administration concerning fiscal policy as it may consider appropriate;
(3) To advise with the secretary in the preparation of studies designed to provide long-term capital planning and finance for state institutions and agencies; and
(4) To advise with the secretary in respect to the application for, and receipt and expenditure of, anticipated or unanticipated federal funds.
The appointed, nonex officio members of the council shall be entitled to receive such compensation and reimbursement for expenses in connection with performance of their duties, during interim periods, if not otherwise receiving the same for such identical periods, as is authorized by the applicable sections of article two-a, chapter four of the code in respect to performance of duties either within the state or, if deemed necessary, out of state. Such compensation and expenses shall be incurred and paid only after approval by the joint committee on government and finance.
ARTICLE 2. FINANCIAL AND MANAGEMENT SERVICES.

§5A-2-1. Financial and management services division created; director; sections; powers and duties.

(a) There is hereby created within the department of finance and administration a financial and management services division. The division director, designated by the secretary as provided in section two, article one of this chapter, shall be known as the chief of fiscal management. The following agencies of the department of finance and administration are hereby incorporated within the financial and management services division:
(1) The tax division and office of the tax commissioner provided for in article one, chapter eleven of this code;
(2) The gaming commission provided for in article twenty-two, chapter twenty-nine of this code; and
(3) The finance section provided for in this article.
(b) The finance division of the department of administration, heretofore created, is hereby created is hereby continued but is hereafter redesignated and shall be known as the finance section of the financial and management services division of the department of finance and administration. All references in this code to the finance division of the department of administration shall be construed as references to the finance section of the financial and management services division of the department of finance and administration. The division finance section shall be under the supervision and control of a director, who shall be appointed by the secretary. There shall be in the finance division section, an accounting section office, a budget section office and a financial accounting and reporting section office. The accounting section office shall have the duties conferred upon it by this article and by the secretary, including, but not limited to, general financial accounting, payroll, accounts payable and accounts receivable for the department of finance and administration. The budget section office shall act as staff agency for the governor in the exercise of his powers and duties under Section 51, Article VI of the state constitution, and shall exercise and perform the other powers and duties conferred upon it by this article. The financial accounting and reporting section office shall establish and maintain the centralized accounting system required by section twenty-four of this article and issue annual general purpose financial statements in accordance with generally accepted accounting principles and with this article.
§5A-2-28. Expenditure of appropriations-Purchases of commodities.
If a requisition is a request for a purchase of commodities, the spending unit shall transmit the requisition to the budget section office for the purpose of ascertaining whether it conforms to the expenditure schedule. If it does not so conform, the requisition shall be returned by the budget section office to the spending unit. If it conforms, the budget section office shall transmit the requisition to the purchasing division section for purchase in accordance with article three of this chapter. When a copy of the purchase order issued pursuant thereto is received from the purchasing division section by the director in accordance with the provisions of section fourteen, article three of this chapter, the director shall ascertain whether the unencumbered balance in the appropriation concerned, in excess of all unpaid obligations, is sufficient to defray the cost of such the order, and, if so, shall encumber the proper account and so certify the fact to the purchasing division section, and, if not, shall notify the purchasing division section which, upon receipt of such the notification, shall return the requisition to the spending unit.

§5A-2-33. Financial accounting and reporting office; comptroller; powers and responsibilities.

The financial accounting and reporting section office created under section one of this article shall be under the control and supervision of a comptroller. The provisions of this section shall apply to all component units of state government, as defined by generally accepted accounting principles. The comptroller, under the direction and supervision of the director of the finance division section, has the power and responsibility to:
(1) Maintain financial records supporting the comprehensive annual financial report required under subsection (8) of this section, in accordance with generally accepted accounting principles;
(2) Maintain the official chart of accounts of the state;
(3) Maintain the centralized accounting system;
(4) Maintain the statewide accounting policies and procedures;
(5) Direct the establishment and maintenance of an adequate internal control structure by the various component units of state government;
(6) Verify the periodic reconciliation of assets as reported by the board of investments and budgetary fund balances as reported by the state auditor;
(7) Issue management financial reports by component unit and department, as well as consolidated management financial reports, as follows:
(a) Monthly budgetary basis reports by revenue and expense, budget compared to actual, and encumbrances; and
(b) Financial position reports, including, but not limited to, cash, investments, indebtedness, obligations and accounts payable.
(8) Issue a comprehensive annual financial report in accordance with generally accepted accounting principles;
(9) Have the general purpose financial statements of the state audited annually by independent certified public accountants;
(10) Require the state pension systems, workers' compensation commission, public employees insurance agency, board of risk and insurance management and the various other component units of the state to prepare financial statements audited by independent certified public accountants and submit the audited financial statements to the financial accounting and reporting section in the form and within the time frames established by the financial accounting and reporting section office;
(11) Maintain controls over access to the centralized accounting system and the required modifications, as well as edits, controls and tables;
(12) Promulgate legislative rules in accordance with article three, chapter twenty-nine-a of this code to effectuate the intent and purpose of this section: Provided, That such rules may initially be implemented by emergency rule; and
(13) Do all things necessary and convenient to maintain the centralized accounting system, to issue financial reports of the state and to carry out its powers and responsibilities.
ARTICLE 3. STATE PURCHASING.

§5A-3-1. Purchasing section; purpose; director; applicability of article; continuation.

There is hereby created The purchasing division of the department of administration, heretofore created for the purpose of establishing centralized offices to provide purchasing, travel and leasing services to the various state agencies, is hereby continued but is hereafter redesignated and shall be known as the purchasing section of the central services division of the department of finance and administration. All references in this code to the purchasing division of the department of administration shall be construed as references to the purchasing section of the department of finance and administration.
No person shall be appointed director of the purchasing division section unless that person is, at the time of appointment, a graduate of an accredited college or university and shall have spent a minimum of ten of the fifteen years immediately preceding his or her appointment employed in an executive capacity in purchasing for any unit of government or for any business, commercial or industrial enterprise.
The provisions of this article shall apply to all of the spending units of state government, except as is otherwise provided by this article or by law: Provided, That the provisions of this article shall not apply to the legislative branch unless otherwise provided or the Legislature or either house thereof requests the director to render specific services under the provisions of this chapter, nor to purchases of stock made by the alcohol beverage control commissioner, nor to purchases of textbooks for the state board of education.
ARTICLE 4. GENERAL SERVICES.
§5A-4-1. General services section.
There is hereby created a new The general services division of the department of administration heretofore created for the purpose of having the care, custody and control of the capitol buildings is hereby continued but is hereafter redesignated and shall be known as the general services section of the central services division of the department of finance and administration. All references in this code to the general services division of the department of administration shall be taken and understood to mean the general services section of the central services division of the department of finance and administration. The division shall be under the supervision of a director.
§5A-4-6. Central mailing office.
The central mailing office heretofore incorporated within the information services and communications division of the department of administration is hereby transferred to and incorporated within the general services section of the central services division of the department of finance and administration.
§5A-4-7. Central mailing office responsibilities.
The general services section shall have the general charge and supervision of the central mailing office, and shall be responsible for its efficient administration. The general services section shall: (1) Charge each spending unit of state government served by the central mailing office for providing mailing services; (2) keep proper account of the receipts and disbursements of the central mailing office; (3) render to the director of the central services division and the secretary a report each month showing the receipts and expenses of the central mailing office for the preceding month, and shall render such other reports as the director or the secretary may require; (4) keep the central mailing office open during regularly stated hours to serve state spending units; and (5) provide rules for the efficient and prompt dispatch of the mail.
§5A-4-8. Use of the central mailing office.
All state spending units having their offices in the capitol, except the legislative branch of government, shall dispatch all mail through the central mailing office: Provided, That mail prepared after gathering time and mail for special handling may be posted without utilizing the central mailing office upon approval of the secretary.
§5A-4-9. Preparation of mail for special rates.
All mail received by the central mailing office shall be processed and presorted in order to receive the most favorable mailing rates, unless otherwise directed by the director or the secretary. The director with the approval of the secretary is authorized to make such expenditures as are necessary to process and presort all outgoing mail or to enter into contracts with any person, firm or corporation in the business of supplying the service.

§5A-4-10. Special fund created; payments into fund; charges for services; disbursements from fund.

For the operation of the central mailing office, there is hereby created in the state treasury a special revolving fund to be known and designated as the "central mail fund". This fund shall consist of appropriations made by the Legislature and funds transferred in accordance with section ten of this article. Each agency, department, unit of state or local government or any other entity served by the central mailing office, is hereby authorized and directed to transmit to the general services division for deposit into said special fund each of its charges made for central mailing services rendered. Disbursements from the fund shall be made in accordance with an approved expenditure schedule as provided by article two, chapter five-a of this code and shall be made under the direct supervision of the director.
ARTICLE 7. TECHNOLOGY DIVISION.
§5A-7-1. Findings and purposes.
The Legislature finds and declares that a unified information technology system is essential to the efficient and effective operation of state government, and that the management goals and purposes of government are furthered by the development of compatible, integrated, linked information systems across state government. Therefore, it is the purpose of this article to create the technology division within the department of finance and administration with the authority to set, direct, and approve all information technology policies standards, structure, and expenditures for all state spending units on their information systems and information technology equipment in the various state agencies, to promulgate standards in the utilization of information technology equipment and related services, and to promote quality service and cost effective and efficient operation of all branches of state government.

§5A-7-2. Division created; chief information officer; qualifications; use of facilities; rules.

There is hereby created the technology division within the department of finance and administration. The chief information officer shall be appointed by and shall serve at the will and pleasure of the governor. The chief information officer shall report to the secretary of finance and administration. The chief information officer shall have knowledge in the field of information technology, experience in the design and management of information systems and an understanding of the special demands upon government with respect to budgetary constraints, the protection of privacy interests and federal and state standards of accountability. The information services and communications division of the department of administration, heretofore created, is hereby transferred to and incorporated within the technology division of the department of finance and administration. The facilities and resources of the office shall be available, subject to rules established by the secretary, to the legislative, executive and judicial branches of state government. Such rules shall be promulgated in accordance with the provisions of article three, chapter twenty-nine-a of this code.
§5A-7-3. Definitions.

As used in this article:

(a) "Chief information officer" means the person holding the position created in section two of this article and vested with authority to set, direct, and approve all information technology policies standards, structure, and expenditures, and also to establish, develop, improve, set and approve information technology equipment functions for all state spending units on their information systems that provide cost effectiveness and efficiency to the individual state spending units, and further the overall management goals and purposes of government;
(b) "Director of operations" means the director of the operations section of the technology division providing mainframe, computing and internet application development and maintenance, the network and application hosting, data hosting, maintenance and recovery, networking and infrastructure, and training center services, and any other services created or deleted at the discretion of the chief information officer within the technology division;
(c) "Director of policy oversight" means the director of the policy oversight section of the technology division providing strategic planning, security, compliance and disaster recovery services, and any other services created or deleted at the discretion of the chief information officer within the technology division;
(d) "Director of process oversight" means the director of the process oversight section of the technology division providing budgeting, project oversight, performance measurement and business process reengineering services, and any other services created or deleted at the discretion of the chief information officer within the technology division;
(e) "Division" means the technology division within the department of finance and administration and headed by the chief information officer as established in section two hereof;
(f) "Information systems" means computer-based information equipment and related services designed for the automated transmission, storage, manipulation and retrieval of data by electronic or mechanical means;
(g) "Information technology" means data processing and telecommunications hardware, software, services, supplies, personnel, maintenance and training, and includes the programs and routines used to employ and control the capabilities of data processing hardware;
(h) "Information technology equipment" means any equipment, interconnected systems or subsystems of equipment the principal function of which is the automatic acquisition, storage, manipulation, processing, interchange, transmission or reception of data or information, including all computers with a human interface; computer peripherals which will not operate unless connected to a computer or network; voice, video and data networks; and ancillary software, hardware, and related resources;
(i) "Related services" include feasibility studies, systems design, software development and time-sharing services whether provided by state employees or others;
(j) "Secretary" means the secretary of the department of finance and administration.
(k) "Telecommunications" means any transmission, emission or reception of signs, signals, audio, writings, data, images, video voice or sounds of intelligence of any nature by wire, radio or other electromagnetic or optical systems. The term includes all facilities and equipment performing those functions that are owned, leased or used by the executive agencies of state government;
(l) "Experimental program to stimulate competitive research" (EPSCoR) means the West Virginia component of the national EPSCoR program which is designed to improve the competitive research and development position of selected states through investments in academic research laboratories and laboratory equipment. The recognized West Virginia EPSCoR, which is part of the department of finance and administration's technology division, is the responsible organization for the coordination and submission of proposals to all federal agencies participating in the EPSCoR program.

§5A-7-4. Powers and duties; telecommunications service; professional staff.

(a) With respect to all state spending units the division, at the direction of the chief information officer, shall:
(1) Develop an organized approach to statewide information resource management, including, but not limited to, information systems, information technology and information technology equipment;
(2) Direct the director of operations to provide technical assistance to the administrators of the various state spending units in the design and management of information systems;
(3) Direct the director of operations, the director of policy oversight and director of process oversight to continually evaluate the economic justification, system design and suitability of information technology equipment and related services, and review and make recommendations to the chief information officer to whether to approve or deny the purchase, lease or acquisition of information equipment and contracts for related services by the state spending units;
(4) Approve all expenditures for information systems, information technology and information technology equipment.
(5) Develop a mechanism for identifying those instances where systems of paper forms should be replaced by direct use of information technology equipment and those instances where applicable state or federal standards of accountability demand retention of some paper processes and implementing programs to further these goals;
(6) Develop a mechanism for identifying those instances where information systems should be linked, integrated and information shared, while also providing appropriate limitations on access and the security of information and implementing programs to further these goals;
(7) Develop, research and implement new technologies to be used in state government, convene and organize conferences and work with other state agencies to develop incentive packages encouraging the utilization of technology;
(8) Provide technical services and assistance to the various state spending units with respect to developing and improving data processing and telecommunications functions. The division shall provide training and direct data processing services to the various state agencies;
(9) Assess each state spending unit for the cost of any evaluation performed by the operations, policy oversight and process oversight sections of the division, and any and all services, training, data processing services and technical assistance performed and provided by the division under the provisions of this section, including, but not limited to, the economic justification, system design and the suitability of equipment and systems used by the state spending unit; and
(10) Engage in any other activities as directed by the secretary of finance and administration or by the governor.
(b) With respect to executive agencies and, where indicated, to nonexecutive agencies, the chief information officer shall:
(1) Develop a unified and integrated structure for information systems for all executive agencies and nonexecutive agencies;
(2) Establish, based on need and opportunity, priorities and time lines for addressing the information systems and technology requirements of the various executive agencies of state government;
(3) Exercise such authority inherent to the chief executive of the state as the governor may, by executive order, delegate, to overrule and supersede decisions made by the administrators of the various executive agencies of government with respect to the design and management of information systems and approval of the purchase, lease or acquisition of information systems, information technology or information technology equipment, and contracts for related services;
(4) Draw upon staff of other executive agencies for advice and assistance in the formulation and implementation of administrative and operational plans and policies; and
(5) Recommend to the governor transfers of information technology equipment, ownership of hardware, contracts, software licenses and human resources from any executive or nonexecutive agency and the most cost effective and efficient uses of the fiscal resources of executive agencies, to consolidate or centralize information-processing operations.
(c) The chief information officer may employ:
(1) A director of operations;
(2) A director of policy oversight;
(3) A director of process oversight; and
(4) All other personnel necessary to carry out the work of the office and may approve reimbursement of costs incurred by employees to obtain education and training.
(d) All fees collected by the chief information officer shall be deposited in a special account in the state treasury to be known as the "Technology Division Fund". Expenditures from the fund shall be made by the chief information officer for the purposes set forth in this article and are not authorized from collections but are to be made only in accordance with appropriation by the Legislature and in accordance with the provisions of article three, chapter twelve of this code and upon the fulfillment of the provisions set forth in article two, chapter five-a of this code. Amounts collected which are found from time to time to exceed the funds needed for purposes set forth in this article may be transferred to other accounts or funds and redesignated for other purposes by appropriation of the Legislature.
(e) The chief information officer shall report quarterly to the joint committee on government and finance on all assessments made pursuant to subsection (b) of this section.
(f) The chief information officer shall oversee the state's unified telecommunications network and all telecommunications service to the state and maintain the accounting system for such system.
(g) On or before the first day of November, two thousand three, the chief information officer shall develop a plan related to the

connection and relationship to the division.
(h) The provisions of this article do not apply to the Legislature or the judiciary.

§5A-7-5. Notice of procurements by state spending units required to make purchases through the state purchasing division.

Any state spending unit that is required to submit a request to the state purchasing division prior to purchasing goods or services shall notify the chief information officer, in writing, at the same time it submits its request for proposal to the state purchasing division, of any proposed purchase of goods or services related to its information systems and telecommunication systems. The notice shall contain a brief description of the goods and services to be purchased.

§5A-7-6. Notice of procurements by state spending units exempted from submitting purchases to the state purchasing division.

(a) Any state spending unit that is not required to submit a request for proposal to the state purchasing division prior to purchasing goods or services shall notify the chief information officer, in writing, of any proposed purchase of goods or services related to its information or telecommunication systems. The notice shall contain a detailed description of the goods and services to be purchased. The state spending unit shall provide the notice to the chief information officer a minimum of twenty days prior to the time it requests bids on the provision of the goods or services.
(b) If the chief information officer evaluates the suitability of the information technology and telecommunication equipment and related services under the provisions of section four of this article and determines that the goods or services to be purchased are not suitable, he or she shall, within ten days of receiving the notice from the state spending unit, notify the state spending unit, in writing, of any recommendations he or she has regarding the proposed purchase of the goods or services. If the state spending unit receives a written notice from the chief information officer within the time period required by this section, the state spending unit shall not put the goods or services out for bid less than thirty days following receipt of the notice from the chief information officer.
§5A-7-7. Biannual report.
The chief information officer shall report biannually to the legislative joint committee on government and finance on the activities of the technology division within the department of finance and administration.
§5A-7-8. Exemptions.
The provisions of this article do not apply to the Legislature or the judiciary.
ARTICLE 10. EMPLOYEE AND INSURANCE SERVICES DIVISION.
§5A-10-1. Division created; purpose and functions; cooperation.
(a) There is hereby created within the department of finance and administration an employee and insurance services division. The following agencies of the department of finance and administration are hereby incorporated within the employee and insurance services division:
(1) The consolidated public retirement board provided for in article ten-d, chapter five of this code and the retirement programs administered thereunder;
(2) The public employees insurance agency and associated boards provided for in article sixteen, chapter five of this code;
(3) The division of personnel provided for in article six, chapter twenty-nine of this code;
(4) The education and state employee grievance board provided for in article twenty-nine, chapter eighteen of this code and article six-a, chapter twenty-nine of this code; and
(5) The board of risk and insurance management provided for in article twelve, chapter twenty-nine of this code: Provided, That effective the thirty-first day of December, two thousand four, the board of risk and insurance management is transferred to and shall be incorporated within the office of banking and insurance created in chapter five-g of this code, which office is within the regulatory services division of the department of finance and administration provided for in article eleven of this chapter.
(b) The purpose and function of the employee and insurance services division is to preserve the integrity of a system of personnel administration for state agencies based on merit principles; to provide to the employees who are stakeholders fairness, confidence and security in the administration of state insurance and retirement benefit plans; to provide for long-term fiscal security and enhance the state's ability to assure its fiscal obligations under its insurance, risk and benefit plans; and to coordinate and consolidate technical functions of the component agencies while preserving inviolate their separate trust and independent decision-making responsibilities.
(c) The administrator of the purchasing section and the chief information officer shall cooperate and provide assistance in the consolidation, reorganization and integration of functions of the division and its component agencies and programs, and shall expedite all reasonable requests in order to assure efficient and adequate systems support.

§5A-10-2. Director of the office of employee and insurance services; qualifications; powers and duties.

(a) The director of the employee and insurance services division shall have knowledge in the areas of self-insured risk pools and employee benefit program administration, knowledge of the special trust requirements of benefit programs with respect to stakeholders, and an understanding of the special demands upon government with respect to budgetary constraints, the protection of public funds, and federal and state standards of accountability.
(b) The director of the employee and insurance services division shall have the power, duty and authority to:
(1) Coordinate overall policy within the division;
(2) Propose comprehensive budgets for consideration by the secretary of the department of finance and administration and the governor;
(3) Develop and provide to the governor, the speaker of the House and the president of the Senate, on an annual basis, long-range financial forecasts for the insurance and benefit programs administered by the division, which forecasts shall include cash-flow projections for future budget years, based on known facts and reasonable, clearly stated actuarial assumptions;
(4) Interact with stakeholders, staff of the component agencies and outside agencies to develop long-term strategies for delivering quality services, reducing unfunded liabilities, and assuring the fiscal viability of programs;
(5) Propose and provide to the governor, the speaker of the House and the president of the Senate, on an annual basis, long-term strategic plans to provide for the fiscal security of the programs administered by the agencies within the division and minimize the fiscal burden upon limited state resources;
(6) Employ and discharge, with the approval of the secretary of the department of finance and administration, employees within the office of the director of the employee and insurance services division, to serve at the will and pleasure of the director of the employee and insurance services division;
(7) Eliminate or consolidate positions, with the approval of the secretary of the department of finance and administration, other than positions of administrators or positions of board members, and name a person to fill more than one position;
(8) Delegate, assign, transfer or combine responsibilities or duties to or among employees, other than administrators or board members;
(9) Reorganize internal functions or operations;
(10) Transfer within the division, with the approval of the secretary of the department of finance and administration, funds appropriated to the various agencies of the division: Provided, That no funds may be transferred from a claims payment account, retiree benefit account, trust account or any other account or funds specifically exempted by the Legislature from transfer: Provided, however, That authority to transfer funds pursuant to this section shall expire on the thirtieth day of June, two thousand four;
(11) Enter into contracts or agreements requiring the expenditure of public funds, and authorize the expenditure or obligating of public funds as authorized by law;
(12) Acquire by lease or purchase property of whatever kind or character, and convey or dispose of any property of whatever kind or character as authorized by law;
(13) Conduct internal audits;
(14) Supervise internal management;
(15) Recommend to the secretary the promulgation of rules to implement and make effective the powers, authority and duties granted and imposed by the provisions of this article, which rules, unless specifically exempted in accordance with the provisions of section twenty-four, article sixteen, chapter five of this code, shall be proposed in accordance with the provisions of chapter twenty-nine-a of this code;
(16) Grant or withhold written consent to the proposal of any rule, as defined in section two, article one, chapter twenty-nine-a of this code, by any administrator, agency or board within the department, without which written consent no proposal of a rule shall have any force or effect;
(17) Delegate duties to administrators in order to facilitate execution of the powers, authority and duties of the director of the employee and insurance services division;
(18) Consolidate data, accounting and claims administration systems and propose to the secretary of the department of finance and administration the termination or renegotiation of contracts; and
(19) Take any other action involving or relating to internal management not otherwise prohibited by law.
(c) Not later than the fifteenth day of March, two thousand three, the director of the employee and insurance services division shall issue a request for proposal for acquiring and implementing combined data systems for the retirement plans administered by the consolidated public retirement board. Beginning on the first day of January, two thousand five, and continuing until such time as the combined data system is fully implemented, the director of the employee and insurance services division shall provide to the joint committee on government and finance monthly updates on the development and implementation of the system.
(d) Not later than the fifteenth day of March, two thousand four, the director of the employee and insurance services division shall propose to the secretary of the department of finance and administration a final plan for combining accounts payable and accounts receivable accounting systems within the division, and a plan for centralizing production of financial statements.
(e) Nothing contained in this section may be construed to limit the powers of the secretary of the department of finance and administration pursuant to chapter five-f of this code, or to enlarge the power and authority granted to any agency or administrator within the division. Nothing contained in this section may be construed to limit the rights of any beneficiary of a retirement or benefit program arising by operation of law or any trust instrument. No power granted to the director of the employee and insurance services division may be exercised if to do so would violate or be inconsistent with the provisions of any federal law or regulation, any federal-state program or federally delegated program or jeopardize the approval, existence or funding of any such program. The powers granted to the director of the employee and insurance services division to enter into contracts or agreements and to make expenditures or obligations of public funds under this provision shall not exceed or be interpreted as authority to exceed the powers heretofore granted by the Legislature to the various administrators or board members of the various agencies or boards that comprise and are incorporated into the division. Nothing contained in this section may be construed to limit the rights of employees within the classified service of the state as provided in subsection (e), section two, article two, chapter five-f of this code.
§5A-10-3. Termination of division.
The employee and insurance services division and the office of director of the employee and insurance services division shall terminate on the first day of July, two thousand nine, pursuant to the provisions of article ten, chapter four of this code unless sooner terminated, continued or reestablished pursuant to the provisions of that article.
ARTICLE 11. REGULATORY SERVICES DIVISION.
§5A-11-1. Division created; purpose and functions; cooperation.
(a) There is hereby created within the department of finance and administration a regulatory services division. The following agencies of the department of finance and administration are hereby incorporated within the regulatory services division:
(1) The building commission provided for in article six, chapter five of this code;
(2) The municipal bond commission provided for in article three, chapter thirteen of this code;
(3) The governor's mansion advisory committee provided for in article five, chapter five-a of this code;
(4) The commission on uniform state laws provided for in article one-a, chapter twenty-nine of this code;
(5) The boundary commission provided for in article twenty-three, chapter twenty-nine of this code;
(6) The West Virginia ethics commission provided for in article two, chapter six-b of this code;
(7) The office of alcohol beverage control commissioner provided for in article sixteen, chapter eleven of this code and article two, chapter sixty of this code;
(8) The office of banking and insurance provided for in chapter five-g of this code, which includes:
(i) The division of banking provided for in article two, chapter thirty-one-a of this code;
(ii) The board of banking and financial institutions provided for in article three, chapter thirty-one-a of this code;
(iii) The lending and credit rate board provided for in chapter forty-seven-a of this code;
(iv) The division of insurance provided for in article two, chapter thirty-three of this code; and
(v) Effective the thirty-first day of December, two thousand four, the board of risk and insurance management provided for in article twelve, chapter twenty-nine of this code.
(9) The division of labor provided for in article one, chapter twenty-one of this code, which includes:
(i) Occupational safety and health review commission provided for in article three-a, chapter twenty-one of this code;
(ii) Board of manufactured housing construction and safety provided for in article nine, chapter twenty-one of this code; and
(iii) Contractor licensing board provided for in article eleven, chapter twenty-one of this code;
(10) State athletic commission provided for in section one, article five-a, chapter twenty-nine of this code; and
(11) Every board of examination or registration established for the regulation of a profession or occupation provided for in chapter thirty of this code.
(b) The purpose and function of the regulatory services division is to permit certain agencies, boards and commissions to be fiscally and functionally independent, to manage regulatory operations independently, and to function as independent and autonomous instrumentalities of the state, while permitting, in all appropriate cases, those entities to operate more efficiently and to better serve the public interest 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 or share services with another. It is the intent of the Legislature that entities that may be called upon to regulate private enterprise, businesses, occupations and professions; to make, review, adjudicate or reverse administrative actions and decisions impacting agencies of the state; or to issue bonds, incur indebtedness and provide financing or financial services for a public purpose be fiscally and functionally independent in their regulatory functions, while providing for centralized oversight of office space, personnel, records, purchasing, and organizational and administrative functions.

§5A-11-2. Director of the office of regulatory services; powers and duties.

(a) The director of the regulatory division shall have the power, duty and authority to:
(1) Employ and discharge, with the approval of the secretary of the department of finance and administration, employees within the office of the director of the regulatory services division, to serve at the will and pleasure of the director;
(2) Eliminate or consolidate positions within the division, with the approval of the secretary of the department of finance and administration, other than positions of statutory administrators or positions of board members, and name a person to fill more than one position;
(3) Delegate, assign, transfer or combine responsibilities or duties to or among employees, other than administrators or board members;
(4) Reorganize internal functions or operations;
(5) Transfer within the division, with the approval of the secretary of the department of finance and administration, funds appropriated to the various agencies, boards and commissions of the division: Provided, That no funds may be transferred from a special revenue account, dedicated account, capital expenditure account or any other account or funds specifically exempted by the Legislature from transfer, except that the transfer and use of special revenue funds to support shared or consolidated functions or services is not a use other than the purpose for which such funds were dedicated and is permitted: Provided, however, That authority to transfer funds pursuant to this section shall expire on the thirtieth day of June, two thousand four;
(6) Enter into contracts or agreements requiring the expenditure of public funds, and authorize the expenditure or obligating of public funds as authorized by law;
(7) Acquire by lease or purchase property of whatever kind or character, and convey or dispose of any property of whatever kind or character as authorized by law;
(8) Conduct internal audits;
(9) Supervise internal management;
(10) Recommend to the secretary the promulgation of rules in accordance with the provisions of chapter twenty-nine-a of this code to implement and make effective the powers, authority and duties granted and imposed by the provisions of this article;
(11) Delegate duties to administrators in order to facilitate execution of the powers, authority and duties of the director of the regulatory services division;
(12) Consolidate data, accounting and management systems and propose to the secretary of the department of finance and administration the termination or renegotiation of contracts; and
(13) Take any other action involving or relating to internal management not otherwise prohibited by law.
(e) Nothing contained in this section may be construed to limit the powers of the secretary of the department of finance and administration pursuant to chapter five-f of this code, or to enlarge the power and authority granted to any agency or administrator within the division. Nothing contained in this section may be construed to limit the powers of any constitutional officer of the state. No power granted to the director of regulatory services division may be exercised if to do so would violate or be inconsistent with the provisions of any federal law or regulation, any federal-state program or federally delegated program or jeopardize the approval, existence or funding of any such program. The powers granted to the director of the regulatory services division to enter into contracts or agreements and to make expenditures or obligations of public funds under this provision shall not exceed or be interpreted as authority to exceed the powers heretofore granted by the Legislature to the various administrators or board members of the various agencies or boards that comprise and are incorporated into the division. Nothing contained in this section may be construed to limit the rights of employees within the classified service of the state as provided in subsection (e), section two, article two, chapter five-f of this code.
§5A-11-3. Termination of division.
The regulatory services division and the office of director of the regulatory services division shall terminate on the first day of July, two thousand nine, pursuant to the provisions of article ten, chapter four of this code unless sooner terminated, continued or reestablished pursuant to the provisions of that article.
§5A-11-4. Termination of division.
The division of tourism, natural resources and parks and the office of commissioner of the division of tourism, natural resources and parks shall terminate on the first day of July, two thousand nine, pursuant to the provisions of article ten, chapter four of this code unless sooner terminated, continued or reestablished pursuant to the provisions of that article.
CHAPTER 5B. ECONOMIC DEVELOPMENT ACT OF 1985.
ARTICLE 1. DIVISION OF TOURISM, NATURAL RESOURCES AND PARKS.

§5B-1-1. Division of tourism, natural resources and parks; office of commissioner; included agencies.

(a) There is hereby created within the executive branch of government a division of tourism, natural resources and parks and the office of commissioner of the division of tourism, natural resources and parks. The commissioner shall be the chief executive officer of the division with control and supervision of its operations and shall be paid a salary of seventy thousand dollars a year. The commissioner shall have control and supervision of the division and shall be responsible for the work of each of its sections, offices, and included agencies.
(b) The following agencies are hereby incorporated within the division of tourism, natural resources and parks:
(1) The tourism commission provided for in article two, chapter five-b of this code;
(2) The division of natural resources and natural resources commission provided for in article one, chapter twenty of this code;
(3) The Blennerhassett historical state park provided for in article eight, chapter twenty-nine of this code; and
(4) The division of forestry provided for in article one-a, chapter nineteen of this code.
(c) All orders, determinations, rules, permits, grants, contracts, certificates, licenses, waivers, bonds, authorizations and privileges which have been issued, made, granted, or allowed to become effective by the governor, any state department or agency or official thereof, or by a court of competent jurisdiction, in the performance of functions which have been transferred to the commissioner or to the division, and were in effect on the date such transfer occurred continue in effect, for the benefit of the division, according to their terms, until modified, terminated, superseded, set aside, or revoked in accordance with the law by the governor, the commissioner or other authorized official, a court of competent jurisdiction, or by operation of law.
(d) Any proceedings, including notices of proposed rule making, or any application for any license, permit, certificate, or financial assistance pending before any department, division or other office, functions of which were transferred to the division of tourism, natural resources and parks are not affected by the transfer. Orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or revoked by the governor, the commissioner, by a court of competent jurisdiction, or by operation of law. Nothing in this subsection prohibits the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if the division had not been created or if functions, agencies or offices had not been transferred to the division. The creation of the division of tourism, natural resources and parks and any subsequent transfer of functions do not affect suits commenced prior to the effective date of the creation by or against any department, division, office or officer, and in all such suits, proceedings shall be had, appeals taken, and judgments rendered in the same manner and with like effect as if the creation or transfer had not occurred, except that the commissioner or other officer may, in an appropriate case, be substituted or added as a party.

§5B-1-3. Commissioner of the division of tourism, natural resources, and parks; powers and duties.

(a) The commissioner of the division of tourism, natural resources and parks shall have the power, duty and authority to:
(1) Employ and discharge employees within the office of the commissioner, to serve at the will and pleasure of the commissioner;
(2) Eliminate or consolidate positions within the division, other than positions of statutory administrators or positions of board members, and name a person to fill more than one position;
(3) Delegate, assign, transfer or combine responsibilities or duties to or among employees, other than administrators or board members;
(4) Reorganize internal functions or operations;
(5) Transfer within the division funds appropriated to the various agencies, boards and commissions of the division: Provided, That no funds may be transferred from a special revenue account, dedicated account, capital expenditure account or any other account or funds specifically exempted by the Legislature from transfer, except that the transfer and use of special revenue funds to support shared or consolidated functions or services is not a use other than the purpose for which such funds were dedicated and is permitted: Provided, however, That authority to transfer funds pursuant to this section shall expire on the thirtieth day of June, two thousand four;
(6) Enter into contracts or agreements requiring the expenditure of public funds, and authorize the expenditure or obligating of public funds as authorized by law;
(7) Acquire by lease or purchase property of whatever kind or character, and convey or dispose of any property of whatever kind or character as authorized by law;
(8) Conduct internal audits;
(9) Supervise internal management;
(10) Propose to the legislature the promulgation of rules in accordance with the provisions of chapter twenty-nine-a of this code to implement and make effective the powers, authority and duties granted and imposed by the provisions of this article;
(11) Grant or withhold written consent to the proposal of any rule, as defined in section two, article one, chapter twenty-nine-a of this code, by any administrator, agency or board within the department, without which written consent no proposal of a rule shall have any force or effect;
(12) Delegate duties to administrators in order to facilitate execution of the powers, authority and duties of the commissioner;
(13) Consolidate data, accounting and management systems and, as otherwise permitted by law, to terminate or renegotiate contracts within the division; and
(14) Take any other action involving or relating to internal management not otherwise prohibited by law.
(e) No power granted to the commissioner may be exercised if to do so would violate or be inconsistent with the provisions of any federal law or regulation, any federal-state program or federally delegated program or jeopardize the approval, existence or funding of any such program. The powers granted to the commissioner to enter into contracts or agreements and to make expenditures or obligations of public funds under this provision shall not exceed or be interpreted as authority to exceed the powers heretofore granted by the Legislature to the various administrators or board members of the various agencies or boards that comprise and are incorporated into the division. Nothing contained in this section may be construed to limit the rights of employees within the classified service of the state as provided in subsection (e), section two, article two, chapter five-f of this code.
§5B-1-5. General powers of the division.
The division of tourism, natural resources and parks shall have the authority and duty to:
(1) Promote, encourage and facilitate the expansion and development of markets for West Virginia products and services and the state's national and international image and prestige by any and all reasonable methods;
(2) Compile periodically a census of the crafts, trades, skills and occupations of all adult persons in the state, in cooperation with other agencies, and analyze and publish the information in such form as to be most valuable to business and industry;
(3) Advertise and publicize the material, economic quality of life, recreational and other advantages of the state which render it a desirable place for commerce and residence;
(4) Collect, compile and distribute information and literature concerning the advantages and attractions of the state, its historic and scenic points of interest and the highway, transportation and other facilities of the state;
(5) Plan and carry out a program of information and publicity designed to attract to West Virginia tourists, visitors and other interested persons from outside the state;
(6) Manage the state's park and recreation system for the benefit of the people of this state, and effectively promote and advertise the same to increase public knowledge and use thereof;
(7) To acquire for the state in the name of the division of tourism, natural resources and parks by purchase, lease or agreement, or accept or reject for the state, in the name of the division, gifts, donations, contributions, bequests or devises of money, security or property, both real and personal, and any interest in such property, including lands and water, for state park or recreational areas for the purpose of providing public recreation: Provided, That any sale, exchange or transfer of such property shall be subject to the procedures of article one-a, chapter twenty of this code: Provided, however, That no lands or waters which, on or before December thirty-first, two thousand two, were part of the state's system of parks, or which were held or used for recreational purposes, shall be subject to such sale, exchange or transfer, by the division: Provided further, That nothing herein contained shall be construed to prevent the division from selling, transferring or conveying to any other division or agency of this state any lands or waters to which it has title and which was sold, conveyed or transferred to the division from the division or agency to which it is being sold, conveyed or transferred;
(8) Make recommendations to the governor and the Legislature of any legislation deemed necessary to facilitate the carrying out of any of the foregoing powers and duties, and to exercise any other power that may be necessary or proper for the orderly conduct of the business of the division and the effective discharge of the duties of the division; and
(9) To cooperate and assist in the production of motion pictures and television and other communications.
CHAPTER 5F. REORGANIZATION OF THE EXECUTIVE
BRANCH OF STATE GOVERNMENT.

§5F-1-2. Executive departments created; offices of secretary created.

(a) There are created, within the executive branch of the state government, the following departments:
(1) Department of finance and administration;
(2) Department of education and the arts;
(3) Department of environmental protection;
(4) Department of health and human resources;
(5) Department of military affairs and public safety; and
(6) Department of tax and revenue; and
(7) Department of transportation.
(b) Each department will be headed by a secretary appointed by the governor with the advice and consent of the Senate. Each secretary serves at the will and pleasure of the governor.

§5F-1-3. Oath; bond; compensation.
(a) Each person appointed to serve as a secretary shall take the oath or affirmation prescribed by section five, article four of the constitution, and the oath shall be certified by the person who administers the same and filed in the office of the secretary of state.
(b) Each person appointed shall give bond in the penalty of twenty-five thousand dollars conditioned for the faithful performance of the duties of the office. The bond shall be approved by the attorney general as to form and by the governor as to sufficiency. The surety of the bond may be a bonding or surety company, in which case the premium shall be paid out of the appropriation made for the administration of the department.
(c) The secretary of the department of finance and administration shall receive a salary of seventy-five thousand dollars per year: Provided, That if the secretary is also appointed to the position of chief information officer provided for in article seven, chapter five-a of this code, that salary may be increased by forty percent. Thereafter, any adjustment in compensation shall be made as provided in section three-a of this article.
ARTICLE 2. TRANSFER OF AGENCIES AND BOARDS
§5F-2-1. Transfer and incorporation of agencies and boards; funds.
(a) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are transferred to and incorporated in and administered as a part of the department of finance and administration:
(1) Building commission provided for in article six, chapter five of this code;
(2) Public employees insurance agency and public employees insurance agency advisory board provided for in article sixteen, chapter five of this code;
(3) Governor's mansion advisory committee provided for in article five, chapter five-a of this code;
(4) Commission on uniform state laws provided for in article one-a, chapter twenty-nine of this code;
(5) Education and state employees grievance board provided for in article twenty-nine, chapter eighteen of this code and article six-a, chapter twenty-nine of this code;
(6) Board of risk and insurance management provided for in article twelve, chapter twenty-nine of this code;
(7) Boundary commission provided for in article twenty-three, chapter twenty-nine of this code;
(8) Public defender services provided for in article twenty-one, chapter twenty-nine of this code;
(9) (8) Division of personnel provided for in article six, chapter twenty-nine of this code;
(10) (9) The West Virginia ethics commission provided for in article two, chapter six-b of this code;
(10) Tax division provided for in article one, chapter eleven of this code;
(11) Gaming commission provided for in article twenty-two, chapter twenty-nine of this code;
(12) Office of alcohol beverage control commissioner provided for in article sixteen, chapter eleven of this code and article two, chapter sixty of this code;
(13) Office of banking and insurance provided for in chapter five-g of this code; which includes:
(i) Division of banking provided for in article two, chapter thirty-one-a of this code;
(ii) Board of banking and financial institutions provided for in article three, chapter thirty-one-a of this code;
(iii) Lending and credit rate board provided for in chapter forty-seven-a of this code; and
(iv) Division of insurance provided for in article two, chapter thirty-three of this code;

(14) The municipal bond commission provided for in article

three, chapter thirteen of this code;
(15) Division of labor provided for in article one, chapter twenty-one of this code, which includes:
(i) Occupational safety and health review commission provided for in article three-a, chapter twenty-one of this code;
(ii) Board of manufactured housing construction and safety provided for in article nine, chapter twenty-one of this code; and
(iii) Contractor licensing board provided for in article eleven, chapter twenty-one of this code;
(16) State athletic commission provided for in section one, article five-a, chapter twenty-nine of this code;
(11) (17) Consolidated public retirement board provided for in article ten-d, chapter five of this code; and
(18) Every board of examination or registration established for the regulation of a profession or occupation provided for in chapter thirty of this code.
(b) The department of commerce, labor and environmental resources and the office of secretary of the department of commerce, labor and environmental resources are abolished. For purposes of administrative support and liaison with the office of the governor, the following agencies and boards, including all allied, advisory and affiliated entities are grouped under two bureaus as follows:
(1) Bureau of commerce:
(A) Division of labor provided for in article one, chapter twenty-one of this code, which includes:
(i) Occupational safety and health review commission provided for in article three-a, chapter twenty-one of this code; and
(ii) Board of manufactured housing construction and safety provided for in article nine, chapter twenty-one of this code;
(B) Office of miners' health, safety and training provided for in article one, chapter twenty-two-a of this code. The following boards are transferred to the office of miners' health, safety and training for purposes of administrative support and liaison with the office of the governor:
(i) Board of coal mine health and safety and coal mine safety and technical review committee provided for in article six, chapter twenty-two-a of this code;
(ii) Board of miner training, education and certification provided for in article seven, chapter twenty-two-a of this code; and
(iii) Mine inspectors' examining board provided for in article nine, chapter twenty-two-a of this code;
(C) (b) The West Virginia development office provided for in article two, chapter five-b of this code, which includes is continued as an independent agency within the executive branch and includes:
(1) Economic development authority provided for in article fifteen, chapter thirty-one of this code; and
(2) Steel futures program and steel advisory commission provided for in article sixteen, chapter thirty-one of this code.
(c) The division of tourism, natural resources and parks provided for in article one, chapter five-b of this code is created as an independent agency within the executive branch and includes:
(ii) (1) Tourism commission provided for in article two, chapter five-b of this code; and the office of the tourism commissioner; and
(D) (2) Division of natural resources and natural resources commission provided for in article one, chapter twenty of this code;
(3) The Blennerhassett historical state park provided for in article eight, chapter twenty-nine of this code; is under the division of natural resources and
(E) (4) Division of forestry provided for in article one-a, chapter nineteen of this code.
(F) Geological and economic survey provided for in article two, chapter twenty-nine of this code;
(G) Water development authority and board provided for in article one, chapter twenty-two-c of this code; and
(2) (d) The bureau of employment programs provided for in article one, chapter twenty-one-a of this code is continued as an independent agency within the executive branch.
(c) Bureau of environment is abolished and
(d)(e) The following agencies and boards, including all allied, advisory and affiliated entities, are transferred to the department of environmental protection: for purposes of administrative support and liaison with the office of the governor
(1) Air quality board provided for in article two, chapter twenty-two-b of this code;
(2) Solid waste management board provided for in article three, chapter twenty-two-c of this code;
(3) Environmental quality board, or its successor board, provided for in article three, chapter twenty-two-b of this code;
(4) Surface mine board provided for in article four, chapter twenty-two-b of this code;
(5) Office of miners' health, safety and training provided for in article one, chapter twenty-two-a of this code;
(6) Board of coal mine health and safety and coal mine safety and technical review committee provided for in article six, chapter twenty-two-a of this code;
(7) Board of miner training, education and certification provided for in article seven, chapter twenty-two-a of this code;
(8) Mine inspectors' examining board provided for in article nine, chapter twenty-two-a of this code;
(5) (9) Oil and gas inspectors' examining board provided for in article seven, chapter twenty-two-c of this code;
(6) (10) Shallow gas well review board provided for in article eight, chapter twenty-two-c of this code; and

(7) (11) Oil and gas conservation commission provided for in article nine, chapter twenty-two-c of this code; and

(12) Geological and economic survey provided for in article two, chapter twenty-nine of this code;
(13) Water development authority and board provided for in article one, chapter twenty-two-c of this code; and
(14) Division of forestry provided for in article one-a, chapter nineteen of this code.
(d) (f) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are transferred to and incorporated in and administered as a part of the department of education and the arts:
(1) Library commission provided for in article one, chapter ten of this code;
(2) Educational broadcasting authority provided for in article five, chapter ten of this code;
(3) Joint commission for vocational-technical-occupational education provided for in article three-a, chapter eighteen-b of this code;
(4) Division of culture and history provided for in article one, chapter twenty-nine of this code; and
(5) Division of rehabilitation services provided for in section two, article ten-a, chapter eighteen of this code.
(e) (g) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are transferred to and incorporated in and administered as a part of the department of health and human resources:
(1) Human rights commission provided for in article eleven, chapter five of this code;
(2) Division of human services provided for in article two, chapter nine of this code;
(3) Bureau for public health provided for in article one, chapter sixteen of this code;
(4) Office of emergency medical services and advisory council thereto provided for in article four-c, chapter sixteen of this code;
(5) Health care cost review authority provided for in article twenty-nine-b, chapter sixteen of this code;
(6) Commission on mental retardation provided for in article fifteen, chapter twenty-nine of this code;
(7) Women's commission provided for in article twenty, chapter twenty-nine of this code; and
(8) The child support enforcement division provided for in chapter forty-eight of this code.
(f) (h) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are transferred to and incorporated in and administered as a part of the department of military affairs and public safety:
(1) Adjutant general's department provided for in article one-a, chapter fifteen of this code;
(2) Armory board provided for in article six, chapter fifteen of this code;
(3) Military awards board provided for in article one-g, chapter fifteen of this code;
(4) West Virginia state police provided for in article two, chapter fifteen of this code;
(5) Office of emergency services and disaster recovery board provided for in article five, chapter fifteen of this code and emergency response commission provided for in article five-a of said chapter;
(6) Sheriffs' bureau provided for in article eight, chapter fifteen of this code;
(7) Division of corrections provided for in chapter twenty-five of this code;
(8) Fire commission provided for in article three, chapter twenty-nine of this code;
(9) Regional jail and correctional facility authority provided for in article twenty, chapter thirty-one of this code;
(10) Board of probation and parole provided for in article twelve, chapter sixty-two of this code;
(11) Public defender services provided for in article twenty-one, chapter twenty-nine of this code;
(12) Prosecuting attorneys institute provided for in section six, article four, chapter seven of this code; and
(11) (13) Division of veterans' affairs and veterans' council provided for in article one, chapter nine-a of this code.
(g) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are transferred to and incorporated in and administered as a part of the department of tax and revenue:
(1) Tax division provided for in article one, chapter eleven of this code;
(2) Racing commission provided for in article twenty-three, chapter nineteen of this code;
(3) Lottery commission and position of lottery director provided for in article twenty-two, chapter twenty-nine of this code;
(4) Agency of insurance commissioner provided for in article two, chapter thirty-three of this code;
(5) Office of alcohol beverage control commissioner provided for in article sixteen, chapter eleven of this code and article two, chapter sixty of this code;
(6) Board of banking and financial institutions provided for in article three, chapter thirty-one-a of this code;
(7) Lending and credit rate board provided for in chapter forty-seven-a of this code; and
(8) Division of banking provided for in article two, chapter thirty-one-a of this code.
(h) (i) The following agencies and boards, including all of the allied, advisory, affiliated or related entities and funds associated with any agency or board, are transferred to and incorporated in and administered as a part of the department of transportation:
(1) Division of highways provided for in article two-a, chapter seventeen of this code;
(2) Parkways, economic development and tourism authority provided for in article sixteen-a, chapter seventeen of this code;
(3) Division of motor vehicles provided for in article two, chapter seventeen-a of this code;
(4) Driver's licensing advisory board provided for in article two, chapter seventeen-b of this code;
(5) Aeronautics commission provided for in article two-a, chapter twenty-nine of this code;
(6) State rail authority provided for in article eighteen, chapter twenty-nine of this code; and
(7) Port authority provided for in article sixteen-b, chapter seventeen of this code.
(i) (j) Except for powers, authority and duties that have been delegated to the secretaries of the departments by the provisions of section two of this article, the existence of the position of administrator and of the agency and the powers, authority and duties of each administrator and agency are not affected by the enactment of this chapter.
(j) (k) Except for powers, authority and duties that have been delegated to the secretaries of the departments by the provisions of section two of this article, the existence, powers, authority and duties of boards and the membership, terms and qualifications of members of such boards are not affected by the enactment of this chapter and all boards which are appellate bodies or were otherwise established to be independent decision makers will not have their appellate or independent decision-making status affected by the enactment of this chapter.
(k) (l) Any department previously transferred to and incorporated in a department created in section two, article one of this chapter by prior enactment of this section in chapter three, acts of the Legislature, first extraordinary session, one thousand nine hundred eighty-nine, and subsequent amendments, means a division of the appropriate department. Wherever reference is made to any department transferred to and incorporated in a department created in section two, article one of this chapter, the reference means a division of the appropriate department, and any reference to a division of a department so transferred and incorporated means a section of the appropriate division of the department. Whenever an agency, board or commission is redesignated or transferred by amendment and reenactment of this section, no administrator may purchase new stationery or office supplies needed only for the purpose of reflecting the redesignation or transfer until after the end of the current term of office of the governor.
(l) (m) Except as otherwise specifically provided in this code, when an agency, board or commission is transferred under a bureau or agency other than a department headed by a secretary pursuant to this section, that transfer is solely for purposes of administrative support and liaison with the office of the governor, a department secretary or a bureau. The bureaus created by the Legislature upon the abolishment of the department of commerce, labor and environmental resources in the year one thousand nine hundred ninety-four will be headed by a commissioner or other statutory officer of an agency within that bureau. Nothing in this section extends the powers of department secretaries under section two of this article to any person other than a department secretary. and nothing limits or abridges the statutory powers and duties of statutory commissioners or officers pursuant to this code

§5F-2-2. Power and authority of secretary of each department.

(a) The secretary of each department is the chief administrative officer of the department and the agencies, offices, boards and commissions within the department. The secretary shall provide overall policy direction within the department and shall direct the functions for which each agency, office, board and commission was created, within the limits of the constitutional powers of the chief executive, and in furtherance of the public interest. Notwithstanding any other provision of this code to the contrary, the secretary of each department shall have plenary power and authority within and for the department to:
(1) Employ and discharge within the office of the secretary such employees as may be necessary to carry out the functions of the secretary, which employees shall serve at the will and pleasure of the secretary;
(2) Cause the various agencies and boards to be operated effectively, efficiently and economically, and develop goals, objectives, policies and plans that are necessary or desirable for the effective, efficient and economical operation of the department;
(3) Eliminate or consolidate positions, other than positions of administrators or positions of board members, and name a person to fill more than one position;
(4) Delegate, assign, transfer or combine responsibilities or duties to or among employees, other than administrators or board members;
(5) Reorganize internal functions or operations;
(6) Formulate comprehensive budgets for consideration by the governor, and transfer within the department funds appropriated to the various agencies of the department which are not expended due to cost savings resulting from the implementation of the provisions of this chapter:

That no more than twenty-five percent of the funds appropriated to any one agency or board may be transferred to other agencies or boards within the department: Provided, however, That no funds may be transferred from a special revenue account, dedicated account, capital expenditure account or any other account or funds specifically exempted by the Legislature from transfer, except that the use of appropriations from the state road fund transferred to the office of the secretary of the department of transportation is not a use other than the purpose for which such funds were dedicated and is permitted: Provided further, That if the Legislature by subsequent enactment consolidates agencies, boards or functions, the secretary may transfer the funds formerly appropriated to such agency, board or function in order to implement such consolidation. The authority to transfer funds under this section shall expire on the thirtieth day of June, one thousand nine hundred eighty-nine two thousand four;
(7) Enter into contracts or agreements requiring the expenditure of public funds, and authorize the expenditure or obligating of public funds as authorized by law:

That the powers granted to the secretary to enter into contracts or agreements and to make expenditures or obligations of public funds under this provision shall not exceed or be interpreted as authority to exceed the powers heretofore granted by the Legislature to the various commissioners, directors or board members of the various departments, agencies or boards that comprise and are incorporated into each secretary's department under this chapter;
(8) Acquire by lease or purchase property of whatever kind or character, and convey or dispose of any property of whatever kind or character as authorized by law:

That the powers granted to the secretary to lease, purchase, convey or dispose of such property shall not exceed or be interpreted as authority to exceed the powers heretofore granted by the Legislature to the various commissioners, directors or board members of the various departments, agencies or boards that comprise and are incorporated into each secretary's department under this chapter;
(9) Conduct internal audits;
(10) Supervise internal management;
(11) Promulgate rules, as defined in section two, article one, chapter twenty-nine-a of this code, to implement and make effective the powers, authority and duties granted and imposed by the provisions of this chapter, such promulgation to be in accordance with the provisions of chapter twenty-nine-a of this code;
(12) Grant or withhold written consent to the proposal of any rule, as defined in section two, article one, chapter twenty-nine-a of this code, by any administrator, agency or board within the department, without which written consent no proposal of a rule shall have any force or effect;
(13) Delegate to administrators such duties of the secretary as the secretary may deem appropriate from time to time to facilitate execution of the powers, authority and duties delegated to the secretary; and
(14) Take any other action involving or relating to internal management not otherwise prohibited by law.
(b) The secretaries of the departments hereby created shall engage in a comprehensive review of the practices, policies and operations of the agencies and boards within their departments to determine the feasibility of cost reductions and increased efficiency which may be achieved therein, including, but not limited to, the following:
(1) The elimination, reduction and restrictions in the use of the state's vehicle or other transportation fleet;
(2) The elimination, reduction and restrictions in the preparation of state government publications, including annual reports, informational materials and promotional materials;
(3) The termination or rectification of terms contained in lease agreements between the state and private sector for offices, equipment and services;
(4) The adoption of appropriate systems for accounting, including consideration of an accrual basis financial accounting and reporting system;
(5) The adoption of revised procurement practices to facilitate cost effective purchasing procedures, including consideration of means by which domestic businesses may be assisted to compete for state government purchases; and
(6) The computerization of the functions of the state agencies and boards.
(c) Any provision of this code providing for confidentiality of any record, report, document, or information, or prohibiting disclosure of such information, may not be construed to prohibit a statutory commissioner, officer or employee from disclosing such information to a department secretary: Provided, That the secretary shall maintain the confidentiality of the information disclosed.
(c) (d) Notwithstanding the provisions of subsections (a) and (b) of this section, none of the powers granted to the secretaries herein shall be exercised by the secretary if to do so would violate or be inconsistent with the provisions of any federal law or regulation, any federal-state program or federally delegated program or jeopardize the approval, existence or funding of any such program, and the powers granted to the secretary shall be so construed.
(d) (e) The layoff and recall rights of employees within the classified service of the state as provided in subsections five and six, section ten, article six, chapter twenty-nine of this code shall be limited to the organizational unit within the agency or board and within the occupational group established by the classification and compensation plan for the classified service of the agency or board in which the employee was employed prior to the agency or board's transfer or incorporation into the department:

CHAPTER 5G. CREATION OF THE OFFICE OF BANKING AND INSURANCE.
ARTICLE 1. GENERAL PROVISIONS.
§5G-1-1. Legislative findings and declarations.
The Legislature hereby finds and declares that the efficiency of the operations of certain agencies and boards of state government should be increased and that in view of the financial crisis facing the state of West Virginia, a consolidation of certain agencies and boards would result in a reduction of governmental expenses and create more economical and efficient administration of services; the Legislature further finds that the reorganization of certain agencies and boards would promote the execution of the laws, effective management of the agencies and boards, and the expeditious administration of the public business, and reduce expenditures and promote economy to the fullest extent consistent with the efficient operation of state government and eliminate duplication of efforts; the Legislature further finds that the agencies and board which are the subject of this act have similar or complementary functions and that the combination or consolidation of the agencies and board under a single head would promote the interests of economy, and more effective management of certain agencies would be beneficial to the citizens of this state.

§5G-1-2. Director of banking and insurance; oath; bond; compensation.

(a) There is hereby created, within the executive branch of the state government, the office of the director of the office of banking and insurance. The director of the office of banking and insurance shall be appointed by the governor with the advice and consent of the Senate, for a term of four years consistent with the governor's term of office and until appointment and qualification of a successor. The person appointed to serve as director of the office of banking and insurance shall also serve as the commissioner of the division of insurance or the commissioner of the division of banking: Provided, That the qualifications for such administrator specified elsewhere in this code are met. The person appointed as director shall take the oath of affirmation prescribed by section five, article four of the constitution, and the oath shall be certified by the person who administers the same and filed in the office of the secretary of state. The person so appointed shall give bond in the penalty of twenty-five thousand dollars conditioned for the faithful performance of the duties of the office, which bond shall be approved by the attorney general as to form and by the governor as to sufficiency. The surety of such bond may be a bonding or surety company in which case the premium shall be paid out of the appropriation made for the administration of the office of banking and insurance.
(b) The director of the office of banking and insurance shall receive an additional salary of five thousand dollars per year. The salary and expenses necessary for the office of banking and insurance and all expenditures for personal services shall be paid from and within existing appropriations made to the agencies and board transferred to the office headed by the director of the office of banking and insurance pursuant to section three, article two of this chapter, and revised expenditure schedules shall be submitted to the commissioner of finance and administration and the legislative auditor stating the amount and source of funds to be expended.
§5G-1-3. Definitions.
(a) As used in this chapter, unless the context clearly requires a different meaning:
(1) "Administrator" means any person who fills a statutorily created position within or related to an agency or board (other than a board member) that is transferred to the office of banking and insurance pursuant to this chapter, and who is designated by statute as commissioner, executive director, or another administrative title, however designated;
(2) "Agency" means any department, division, board or other entity of state government, however designated, specified in this chapter as being transferred to and incorporated in the office of banking and insurance created by this chapter;
(3) "Board" means the state board of risk and insurance management and any board, commission, authority, counsel, or other body, however designated, consisting of two or more members, transferred to and incorporated in the office of banking and insurance created by this chapter;
(4) "Code" means the code of West Virginia, one thousand nine hundred thirty-one, as heretofore and hereafter amended; and
(5) "Director" means the administrative head of the office of banking and insurance created by this chapter.
(6) "Effective date of transfer" means, for the division of banking and the division of insurance, the first day of July, two thousand three, and for the state board of risk and insurance management the first day of January, two thousand four.
(b) Although each term defined in subsection (a) of this section is in the singular, the plural of any terms shall have the same meaning.
ARTICLE 2. TRANSFER OF AGENCIES AND BOARD.
§5G-2-1. Transfer to office of banking and insurance.
(a) Effective the first day of July, two thousand three, the West Virginia insurance commissioner, continued and redesignated the division of insurance pursuant to section one, article two, chapter thirty-three of this code, and the West Virginia division of banking created pursuant to section one, article two, chapter thirty-one-a of this code, and effective the first day of January, two thousand four, the state board of risk and insurance management created pursuant to section three, article twelve, chapter twenty-nine of this code, are transferred to and incorporated in and administered as a part of the office of banking and insurance. All allied, advisory, affiliated or related entities and funds associated with such agencies or board are also transferred pursuant to this chapter on the aforesaid dates.
(b) Except for the powers, authority and duties that have been delegated to the director of the office of banking and insurance by the provisions of section two of this article, the existence of the position of administrator and of the division of insurance and the division of banking are not affected by the enactment of this chapter, and the existence, powers, authority and duties of the state board of risk and insurance management and the membership, terms and qualifications of members of such board are not affected by the enactment of this chapter. All of the powers, authority, functions and other duties of the division of insurance, the division of banking and the state board of risk and insurance management, and the respective administrators of each, as they exist prior to transfer will be continued in the office of banking and insurance following the effective date of transfer under this chapter. This chapter will not affect any orders, rules, plans of operation, contracts, settlement or other agreements made, promulgated by, or approved by the insurance commissioner or commissioner of banking or the state board of risk and insurance management or its executive director, or any division or committee thereof, prior to the effective date of transfer under this chapter. This chapter shall not affect any actions or proceedings, civil or criminal, brought by or against the commissioner of insurance or the commissioner of banking or the state board of risk and insurance management or its executive director, in their official capacities, which are pending prior to the effective date of transfer under this chapter.
(c) Notwithstanding any other provision of this code to the contrary, following the effective date of transfer under this chapter, any information, data or documents that are designated as confidential or protected, or the disclosure of which is limited, under chapters thirty-three, thirty-one-a, or twenty-nine of this code may be disclosed to and shared with the director of the office of banking and insurance and authorized personnel of the office of banking and insurance.
§5G-2-2. Power and authority of director of banking and insurance.
(a) Notwithstanding any other provision of this code to the contrary, the director of the office of banking and insurance shall have the plenary power and authority within and for the office of banking and insurance to:
(1) Employ and discharge within the office such employees as may be necessary to carry out the functions of the office.
(2) Cause the agencies and boards consolidated within the office of banking and insurance to be operated effectively, efficiently and economically, and develop goals, objectives, policies and plans that are necessary or desirable for the effective, efficient and economical operation of the office.
(3) Eliminate or consolidate positions, other than positions of administrators or positions of board members, and name a person to fill more than one position;
(4) Delegate, assign, transfer or combine responsibilities or duties to or among employees, other than administrators or board members;
(5) Reorganize internal functions or operations;
(6) Formulate comprehensive budgets for consideration by the governor, and transfer within the office funds appropriated to the agencies and boards consolidated within the office which are not expended due to cost savings resulting from the implementation of the provisions of this chapter: Provided, That no more than twenty-five percent of the funds appropriated to any one agency or board may be transferred to other agencies or boards within the department: Provided, however, That no funds may be transferred from a special revenue account, dedicated account, capital expenditure account or any other account or fund specifically exempted by the Legislature from transfer. The authority to transfer funds under this section shall expire on the thirtieth day of June, two thousand four.
(7) Enter into contracts or agreements requiring the expenditure of public funds, and authorize the expenditure or obligating of public funds as authorized by law: Provided, That the powers granted to the director of the office of banking and insurance to enter into contracts or agreements and to make expenditures or obligations of public funds under this provision shall not exceed or be interpreted as authority to exceed the powers heretofore granted by the Legislature to the commissioners, executive director or board members of the agencies or boards that are consolidated within the office of banking and insurance pursuant to this chapter;
(8) Acquire by lease property of whatever kind or character, and convey or dispose of any property of whatever kind or character as authorized by law: Provided, That the powers granted to the director of the office of banking and insurance to lease, convey or dispose of such property shall not exceed or be interpreted as authority to exceed the powers heretofore granted by the Legislature to the commissioners, executive director or board members of the agencies and board that are consolidated within the office of banking and insurance pursuant to this chapter;
(9) Conduct internal audits;
(10) Supervise internal management;
(11) Promulgate rules as defined in section two, article one, chapter twenty-nine-a of this code to implement and make effective the powers, authority and duties granted and imposed by the provisions of this chapter, such promulgation to be in accordance with the provisions of chapter twenty-nine-a of this code;
(12) Grant or withhold written consent to the proposal of any rule, as defined in section two, article one, chapter twenty-nine-a of this code, by any administrator, agency or board within the office of banking and insurance, without which written consent no proposal of the rule shall have any force or effect;
(13) Delegate to the administrators of the agencies or boards consolidated within the office of banking and insurance such duties of the director as he or she may deem appropriate from time to time to facilitate execution of the powers, authority and duties delegated to the director of the office of banking and insurance;
(14) Make a report annually to the governor and to the Legislature of the office's operations for the preceding fiscal year, and render such other reports as the governor may from time to time request, or as may be required by law; and
(15) Take any other action involving or relating to internal management not otherwise prohibited by law.
(b) The director of the office of banking and insurance shall also engage in a comprehensive review of the practices, policies and operations of the agencies and boards within the office of banking and insurance to determine the feasibility of further cost reductions and increased efficiency which may be achieved therein.
(c) Notwithstanding any other provision of this code to the contrary, each administrator of an agency or board consolidated within the office of banking and insurance pursuant to this chapter that is required by other provisions of this code to be appointed by the governor shall continue to be appointed by the governor by and with the advice and consent of the Senate for the term and pursuant to the procedures and requirements established elsewhere in this code. The governor may appoint a person to fill more than one position of administrator within the office of banking and insurance: Provided, That each person appointed as an administrator must possess whatever qualifications are elsewhere specified in this code as required for appointment to the position.
(d) Any administrator required by other provisions of this code to be appointed in any manner other than by the governor shall continue to be appointed, shall take the oath of office, give such bond and receive such salary as shall be so specified by the other applicable provisions of this code.
(e) Nothing in this section may be construed to deprive any person of any rights or protections provided him or her by the provisions of articles six or six-a, chapter twenty-nine of this code or under any pension law or retirement system provided employees of this state.
§5G-2-3. Transfer of moneys, records, property and personnel.
All appropriations and other moneys available to and to become available to any agency or board transferred to the office of banking and insurance pursuant to this chapter will be transferred to the office of banking and insurance on the effective date of transfer under this chapter, and shall be available for the objects and purposes for which appropriated, subject to subdivision (6), subsection (a), section two of this chapter. All records, assets and property, of whatever kind or character, owned by or utilized in the administration of the agencies and boards consolidated within the office of banking and insurance pursuant to this chapter, and all of the personnel utilized in the administration of the agencies and boards, including the administrators, will be transferred to the office of banking and insurance on the effective date of transfer under this chapter.

CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 6. CIVIL SERVICE COMMISSION.
§29-6-5. Division of personnel continued; sections.
(a) Effective the first day of July, one thousand nine hundred eighty-nine, there is hereby created a The division of personnel, heretofore created, is hereby continued within the executive branch employee and insurance services division of the department of finance and administration.
(b) The division of personnel shall consist of the following sections functions:
(1) Applicant services;
(2) Classification and compensation;
(3) Management development and training;
(4) Program evaluation and payroll;
(5) Employee services;
(6) Employee relations; and
(7) Administrative and staff services.
The director of the employee and insurance services division shall establish such sections of the division as may be necessary to carry out the functions of the division and the purposes of this article. Each section shall be under the control of a section chief to be appointed by the director who shall be qualified by reason of exceptional training and experience in the field of activities of the respective section. The director has authority to establish such additional sections as may be determined necessary to carry out the purpose of this article.

§29-6-6. State personnel board continued; members; term; quorum; vacancies; powers and duties.

(a) There is hereby created continued within the division a state personnel board which shall consist of the director of the employee and insurance services division or his or her designee, who shall serve as an ex officio member and five members appointed by the governor with the advice and consent of the Senate for terms of four years and until the appointment of their successors. The director of the employee and insurance services division may not vote on any question before the board except in cases of a tie. Provided, That of the members first appointed, one shall be appointed for a term of one year, one for two years, one for three years, and one for four years No more than three four members may be of the same political party. Three Four members of the board constitute a quorum.
(b) A member of the board may not be removed from office except for official misconduct, incompetence, neglect of duty, gross immorality or malfeasance, and then only in the manner prescribed in article six, chapter six of this code for the removal by the governor of state elected officers.
(c) Citizen members of the board shall each be paid one hundred dollars for each day devoted to the work of the board. Each member shall be reimbursed for all reasonable and necessary expenses actually incurred in the performance of his duties, except that in the event the expenses are paid, or are to be paid, by a third party, the members shall not be reimbursed by the state.
(d) The director of the employee and insurance services division of the department of finance and administration shall serve as chair of the board. The board shall elect one of its members as chairperson and shall meet at such time and place as shall be specified by the call of the chairman chair. At least one meeting shall be held in each month. All meetings shall be open to the public. Notice of each meeting shall be given in writing to each member by the director at least three days in advance of the meeting period.
(e) In addition to other powers and duties invested in it by this article or by any other law, the board shall:
(1) Promulgate rules in accordance with chapter twenty-nine-a of this code to implement the provisions of this article;
(2) Interpret the application of this article to any public body or entity;
(3) Authorize and conduct such studies, inquiries, investigations or hearings in the operation of this article as it deems necessary.
(f) The director or the board may subpoena and require the attendance of witnesses in the production of evidence or documents relevant to any proceeding under this article.

§29-6-7. Director of personnel; appointment; qualifications; powers and duties.

(a) The secretary of the department of administration director of the employee and insurance services division of the department of finance and administration, with the consent of the secretary of the department of finance and administration, shall appoint the director. The director shall be a person knowledgeable of the application of the merit principles in public employment as evidenced by the obtainment of a degree in business administration, personnel administration, public administration or the equivalent and at least five years of administrative experience in personnel administration.
(b) The director shall:
(1) Consistent with the provisions of this article administer the operations of the division, allocating the functions and activities of the division among sections as the director may establish;
(2) Maintain a personnel management information system necessary to carry out the provisions of this article;
(3) Supervise payrolls and audit payrolls, reports or transactions for conformity with the provisions of this article;
(4) Plan, evaluate, administer and implement personnel programs and policies in state government and to political subdivisions after agreement by the parties;
(5) Supervise the employee selection process and employ performance evaluation procedures;
(6) Develop programs to improve efficiency and effectiveness of the public service, including, but not limited to, employee training, development, assistance and incentives;
(7) Establish pilot programs and other projects for a maximum of one year outside of the provisions of this article, subject to approval by the board, to be included in the annual report;
(8) Establish and provide for a public employee interchange program and may provide for a voluntary employee interchange program between public and private sector employees;
(9) Establish an internship program;
(10) Assist the governor, and the secretary of the department of finance and administration and the director of the employee and insurance services division in general work force planning and other personnel matters;
(11) Make an annual report to the governor and Legislature and all other special or periodic reports as may be required;
(12) Assess cost for special or other services;
(13) Recommend rules to the board for implementation of this article; and
(14) Conduct schools, seminars or classes for supervisory employees of the state regarding handling of complaints and disciplinary matters and the operation of the state personnel system.

ARTICLE 12. STATE INSURANCE.
§29-12-2. Definitions.
As used in this article, unless the context otherwise clearly
requires:
(a) "Board" means the state board of risk and insurance management, which, effective the first day of January, two thousand four, shall be transferred to the office of banking and insurance and be a division of the department of banking and insurance, under the supervision of the director of the office.
(b) "Company" means and includes corporations, associations, partnerships, and individuals, limited liability companies, limited liability partnerships, and any other legal entity.
(c) "Insurance" means all forms of insurance and bonding services available for protection and indemnification of the state and its officials, employees, properties, activities and responsibilities against loss or damage or liability, including fire, marine, casualty, and surety insurance.
(d) "Insurance company" means all insurers or insurance carriers, including, but not limited to, stock insurance companies, mutual insurance companies, reciprocal and interinsurance exchanges, and all other types of insurers and insurance carriers, including life, accident, health, fidelity, indemnity, casualty, hospitalization and other types and kinds of insurance companies, organizations and associations, but excepting and excluding workers' compensation coverage.
(e) "State property activities" and "state responsibilities" means and includes all operations, boards, commission, works, projects and functions of the state, its properties, officials, agents and employees which, within the scope and in the course of governmental employment, may be subject to liability, loss, damage, risks and hazards recognized to be and normally included within insurance and bond coverages.
(f) "State property" means all property belonging to the state of West Virginia and any boards or commissions thereof wherever situated and which is the subject of risk or reasonably considered to be subject to loss or damage or liability by any single occurrence of any event insured against.

§29-12-3. State board of risk and insurance management; creation, composition, qualifications, and compensation.

(a)(1) The "state board of insurance of West Virginia" is hereby reestablished, reconstituted and continued as the state board of risk and insurance management Effective the first day of January, two thousand four, the state board of risk and insurance management shall be established within the office of banking and insurance as a division of the office of banking and insurance, under the supervision of the director of the office. The board shall be composed of five members. One member shall be the vice chancellor of health sciences of the West Virginia higher education policy commission. The remaining four members shall be appointed by the governor with the advice and consent of the Senate. One member shall be appointed by the governor from a list of three eligible persons submitted to the governor by the president of the Senate, and one member shall be appointed by the governor from a list of three eligible persons submitted to the governor by the speaker of the House of Delegates. Each member shall be a resident of West Virginia and shall have experience in one or more of the following areas: law, accounting, business, insurance or actuarial science.
(2) Initial appointment of the members other than the vice chancellor for health sciences shall be for the following terms:
One member shall be appointed for a term ending the thirtieth day of June, two thousand three;
One member shall be appointed for a term ending the thirtieth day of June, two thousand four;
One member shall be appointed for a term ending the thirtieth day of June, two thousand five; and
One member shall be appointed for a term ending the thirtieth day of June, two thousand six.
(3) Except for appointments to fill vacancies, each subsequent appointment shall be for a term ending the thirtieth day of June of the fourth year following the year the preceding term expired. In the event a vacancy occurs it shall be filled by appointment for the unexpired term. A member whose term has expired shall continue in office until a successor has been duly appointed and qualified. No member of the board may be removed from office by the governor except for official misconduct, incompetency, neglect of duty, or gross immorality.
(4) Members of the board appointed prior to the reenactment of this article during the sixth extraordinary session of the Legislature, two thousand one, shall serve until the fifteenth day of December two thousand one.
(b) The insurance commissioner of West Virginia shall serve as secretary of the board without vote and shall make available to the board the information, facilities and services of the office of the state insurance commissioner insurance division.
(c) The members of the board shall receive from the executive director of the board the same compensation authorized by law for members of the Legislature for the interim duties for each day, or portion thereof, the member is engaged in the discharge of official duties. All board members shall be reimbursed for their actual and necessary expenses incurred in the discharge of official duties, except that mileage shall be reimbursed at the same rate as that authorized for members of the Legislature.
(d) Notwithstanding any provision of this section to the contrary, the board is subject to the provisions of section twelve of this article.
§29-12-4. Organization, meetings, records and reports of board.
The board shall select one of its members as chairman and shall meet in the office of the insurance commissioner upon call of the chairman. The board shall keep records of all of its proceedings which shall be public and open to inspection, shall adopt a seal and shall exercise and perform the duties prescribed by this article.
The board shall prepare and submit a report in writing to the director of the office of banking and insurance and to the governor, legislative auditor and budget director on or before the thirty-first day of August of each year. Such report shall contain a summary of the board's proceedings during the preceding fiscal year including a detailed and itemized statement and summary of all state insurance procured by the board during such fiscal year.
§29-12-5. Powers and duties of board.
(a) The board shall have general supervision and control over the insurance of all state property, activities and responsibilities, including the acquisition and cancellation thereof; determination of amount and kind of coverage, including, but not limited to, deductible forms of insurance coverage, inspections or examinations relating thereto, reinsurance, and any and all matters, factors and considerations entering into negotiations for advantageous rates on and coverage of all such state property, activities and responsibilities. The board shall have the authority to employ an executive director for an annual salary of seventy thousand dollars and such other employees, including legal counsel, as may be necessary to carry out its duties. The legal counsel may represent the board before any judicial or administrative tribunal and perform such other duties as may be requested by the board. Any policy of insurance purchased or contracted for by the board shall provide that the insurer shall be barred and estopped from relying upon the constitutional immunity of the state of West Virginia against claims or suits: Provided, That nothing herein shall bar the insurer of political subdivisions from relying upon any statutory immunity granted such political subdivisions against claims or suits. The board may enter into any contracts necessary to the execution of the powers granted to it by this article. It shall endeavor to secure the maximum of protection against loss, damage or liability to state property and on account of state activities and responsibilities by proper and adequate insurance coverage through the introduction and employment of sound and accepted methods of protection and principles of insurance. It is empowered and directed to make a complete survey of all presently owned and subsequently acquired state property subject to insurance coverage by any form of insurance, which survey shall include and reflect inspections, appraisals, exposures, fire hazards, construction, and any other objectives or factors affecting or which might affect the insurance protection and coverage required. It shall keep itself currently informed on new and continuing state activities and responsibilities within the insurance coverage herein contemplated. The board shall work closely in cooperation with the state fire marshal's office in applying the rules of that office insofar as the appropriations and other factors peculiar to state property will permit. The board is given power and authority to make rules governing its functions and operations and the procurement of state insurance.
The board is hereby authorized and empowered to negotiate and effect settlement of any and all insurance claims arising on or incident to losses of and damages to state properties, activities and responsibilities hereunder and shall have authority to execute and deliver proper releases of all such claims when settled. The board may adopt rules and procedures for handling, negotiating and settlement of all such claims. Any discussion or consideration of the financial or personal information of an insured may be held by the board in executive session closed to the public, notwithstanding the provisions of article nine-a, chapter six of this code.
(b) If requested by a political subdivision, a charitable or public service organization, or an emergency medical services agency, the board is authorized to provide property and liability insurance to insure their property, activities and responsibilities. The board is authorized to enter into any necessary contract of insurance to further the intent of this subsection.
(1) The property insurance provided by the board, pursuant to this subsection, may also include insurance on property leased to or loaned to the political subdivision, a charitable or public service organization or an emergency medical services agency which is required to be insured under a written agreement.
(2) The cost of this insurance, as determined by the board shall be paid by the political subdivision, the charitable or public service organization or the emergency medical services agency and may include administrative expenses. For purposes of this section: Provided, That if an emergency medical services agency is a for-profit entity its claims history may not adversely affect other participants' rates in the same class. All funds received by the board (including, but not limited to, state agency premiums, mine subsidence premiums, and political subdivision premiums) shall be deposited with the West Virginia investment management board with the interest income and returns on investment a proper credit to such property insurance trust fund or liability insurance trust fund, as applicable.
(3) "Political subdivision" as used in this subsection shall have the same meaning as in section three, article twelve-a of this chapter.
(4) "Charitable or public service organization" as used in this subsection means a bona fide, not-for-profit, tax-exempt, benevolent, educational, philanthropic, humane, patriotic, civic, religious, eleemosynary, incorporated or unincorporated association or organization or a rescue unit or other similar volunteer community service organization or association, but does not include any nonprofit association or organization, whether incorporated or not, which is organized primarily for the purposes of influencing legislation or supporting or promoting the campaign of any candidate for public office.
(5) "Emergency medical service agency" as used in this subsection shall have the same meaning as in section three, article four-c, chapter sixteen of this code.
(c)(1) The board shall have general supervision and control over the optional medical liability insurance programs providing coverage to health care providers as authorized by the provisions of article twelve-b of this chapter. The board is hereby granted and may exercise all powers necessary or appropriate to carry out and effectuate the purposes of this article.
(2) The board shall:
(A) Administer the preferred medical liability program and the high risk medical liability program and exercise and perform other powers, duties and functions specified in this article;
(B) Obtain and implement, at least annually, from an independent outside source, such as a medical liability actuary or a rating organization experienced with the medical liability line of insurance, written rating plans for the preferred medical liability program and high risk medical liability program on which premiums shall be based;
(C) Prepare and annually review written underwriting criteria for the preferred medical liability program and the high risk medical liability program. The board may utilize review panels, including, but not limited to, the same specialty review panels to assist in establishing criteria;
(D) Prepare and publish, before each regular session of the Legislature, separate summaries for the preferred medical liability program and high risk medical liability program activity during the preceding fiscal year, each summary to be included in the board of risk and insurance management audited financial statements as "other financial information", and which shall include a balance sheet, income statement and cash flow statement, an actuarial opinion addressing adequacy of reserves, the highest and lowest premiums assessed, the number of claims filed with the program by provider type, the number of judgments and amounts paid from the program, the number of settlements and amounts paid from the program and the number of dismissals without payment;
(E) Determine and annually review the claims history debit or surcharge for the high risk medical liability program;
(F) Determine and annually review the criteria for transfer from the preferred medical liability program to the high risk medical liability program;
(G) Determine and annually review the role of independent agents, the amount of commission, if any, to be paid therefor, and agent appointment criteria;
(H) Study and annually evaluate the operation of the preferred medical liability program and the high risk medical liability program, and make recommendations to the Legislature, as may be appropriate, to ensure their viability, including, but not limited to, recommendations for civil justice reform with an associated cost-benefit analysis, recommendations on the feasibility and desirability of a plan which would require all health care providers in the state to participate with an associated cost-benefit analysis, recommendations on additional funding of other state run insurance plans with an associated cost-benefit analysis and recommendations on the desirability of ceasing to offer a state plan with an associated analysis of a potential transfer to the private sector with a cost-benefit analysis, including impact on premiums;
(I) Establish a five-year financial plan to ensure an adequate premium base to cover the long tail nature of the claims-made coverage provided by the preferred medical liability program and the high risk medical liability program. The plan shall be designed to meet the program's estimated total financial requirements, taking into account all revenues projected to be made available to the program, and apportioning necessary costs equitably among participating classes of health care providers. For these purposes, the board shall:
(i) Retain the services of an impartial, professional actuary, with demonstrated experience in analysis of large group malpractice plans, to estimate the total financial requirements of the program for each fiscal year and to review and render written professional opinions as to financial plans proposed by the board. The actuary shall also assist in the development of alternative financing options and perform any other services requested by the board or the executive director. All reasonable fees and expenses for actuarial services shall be paid by the board. Any financial plan or modifications to a financial plan approved or proposed by the board pursuant to this section shall be submitted to and reviewed by the actuary and may not be finally approved and submitted to the governor and to the Legislature without the actuary's written professional opinion that the plan may be reasonably expected to generate sufficient revenues to meet all estimated program and administrative costs, including incurred but not reported claims, for the fiscal year for which the plan is proposed. The actuary's opinion for any fiscal year shall include a requirement for establishment of a reserve fund;
(ii) Submit its final, approved five-year financial plan, after obtaining the necessary actuary's opinion, to the director of the office of banking and insurance and to governor and to the Legislature no later than the first day of January preceding the fiscal year. The financial plan for a fiscal year becomes effective and shall be implemented by the executive director on the first day of July of the fiscal year. In addition to each final, approved financial plan required under this section, the board shall also simultaneously submit an audited financial statement based on generally accepted accounting practices (GAAP) and which shall include allowances for incurred but not reported claims: Provided, That the financial statement and the accrual-based financial plan restatement shall not affect the approved financial plan. The provisions of chapter twenty-nine-a of this code shall not apply to the preparation, approval and implementation of the financial plans required by this section;
(iii) Submit to the director of the office of banking and insurance and to the governor and the Legislature a prospective five-year financial plan beginning on the first day of January, two thousand three four, and every year thereafter, for the programs established by the provisions of article twelve-b of this chapter. Factors that the board shall consider include, but shall not be limited to, the trends for the program and the industry; claims history, number and category of participants in each program; settlements and claims payments; and judicial results;
(iv) Obtain annually, certification from participants that they have made a diligent search for comparable coverage in the voluntary insurance market and have been unable to obtain the same;
(J) Meet on at least a quarterly basis to review implementation of its current financial plan in light of the actual experience of the medical liability programs established in article twelve-b of this chapter. The board shall review actual costs incurred, any revised cost estimates provided by the actuary, expenditures and any other factors affecting the fiscal stability of the plan and may make any additional modifications to the plan necessary to ensure that the total financial requirements of these programs for the current fiscal year are met;
(K) To analyze the benefit of and necessity for excess verdict liability coverage;
(L) Consider purchasing reinsurance, in the amounts as it may from time to time determine is appropriate, and the cost thereof shall be considered to be an operating expense of the board;
(M) Make available to participants, optional extended reporting coverage or tail coverage: Provided, That, at least five working days prior to offering such coverage to a participant or participants, the board shall notify the president of the Senate and the speaker of the House of Delegates in writing of its intention to do so, and such notice shall include the terms and conditions of the coverage proposed;
(N) Review and approve, reject or modify rules that are proposed by the executive director to implement, clarify or explain administration of the preferred medical liability program and the high risk medical liability program. Notwithstanding any provisions in this code to the contrary, rules promulgated pursuant to this paragraph are not subject to the provisions of sections nine through sixteen, article three, chapter twenty-nine-a of this code. The board shall comply with the remaining provisions of article three and shall hold hearings or receive public comments before promulgating any proposed rule filed with the secretary of state: Provided, That the initial rules proposed by the executive director and promulgated by the board shall become effective upon approval by the board notwithstanding any provision of this code;
(O) Enter into settlements and structured settlement agreements whenever appropriate. The policy may not require as a condition precedent to settlement or compromise of any claim the consent or acquiescence of the policy holder. The board may own or assign any annuity purchased by the board to a company licensed to do business in the state;
(P) Refuse to provide insurance coverage for individual physicians whose prior loss experience or current professional training and capability are such that the physician represents an unacceptable risk of loss if coverage is provided.
(Q) Terminate coverage for nonpayment of premiums upon written notice of the termination forwarded to the health care provider not less than thirty days prior to termination of coverage;
(R) Assign coverage or transfer all insurance obligations and/or risks of existing or in-force contracts of insurance to a third party medical professional liability insurance carrier with the comparable coverage conditions as determined by the board. Any transfer of obligation or risk shall effect a novation of the transferred contract of insurance and if the terms of the assumption reinsurance agreement extinguish all liability of the board and the state of West Virginia such extinguishment shall be absolute as to any and all parties; and
(S) Meet and consult with and consider recommendations from the medical malpractice advisory panel established by the provisions of article twelve-b of this chapter.
(d) If, after the first day of September, two thousand two, the board has assigned coverages or transferred all insurance obligations and/or risks of existing or in-force contracts of insurance to a third party medical professional liability insurance carrier, and the board otherwise has no covered participants, then the board shall not thereafter offer or provide professional liability insurance to any health care provider pursuant to the provisions of subsection (c) of this section or the provisions of article twelve-b of this chapter unless the Legislature adopts a concurrent resolution authorizing the board to reestablish medical liability insurance programs.

§29-12-12. Reestablishment of board as state board of risk and insurance management.

After having conducted a performance and fiscal audit through its joint committee on government operations, pursuant to section nine, article ten, chapter four of this code, the Legislature hereby finds and declares that the state board of insurance should be continued and reestablished but shall be known and referred to as the state board of risk and insurance management. Accordingly, notwithstanding the provisions of section four, article ten, chapter four of this code, the state board of insurance shall continue to exist until the first day of July, two thousand four eight, but shall be known and referred to as the state board of risk and insurance management.
CHAPTER 31A. BANKS AND BANKING.
ARTICLE 1. GENERAL PROVISIONS AND DEFINITIONS.
§31A-1-2. Definitions.
As used in this chapter, unless the context in which used plainly requires a different meaning:
(a) The word "action", in the sense of a judicial proceeding, means any proceeding in a court of competent jurisdiction in which rights are adjudicated and determined and shall embrace and include recoupment, counterclaim, setoff and other related, similar and summary proceedings;
(b) The words "bank" and "banking institution" mean a corporation or association heretofore or hereafter chartered to conduct a banking business under the laws of the United States or any state, territory, district or possession thereof, which is authorized in West Virginia to accept deposits that the depositor has a legal right to withdraw on demand and is authorized to engage in the business of commercial lending, and meets the criteria set forth in Section 2(c) of the Bank Holding Company Act, as amended, 12 U.S.C. §1841(c), and shall embrace and include a savings bank, savings and loan association, trust company or an institution combining banking and trust company facilities, functions and services so chartered or authorized to conduct such business in this state;
(c) The words "bankers' bank" mean a banking institution, insured by the federal deposit insurance corporation, the stock of which is owned exclusively by banks and other depository institutions, and such banking institution and all subsidiaries thereof are engaged exclusively in providing services for banks and other depository institutions and their officers, directors and employees;
(d) The term "banking business" means the functions, services and activities contained, detailed and embraced in sections thirteen and fourteen, article four of this chapter, and as elsewhere defined by law;
(e) The word "board" means the West Virginia board of banking and financial institutions;
(f) The words "branch bank" mean an office or other place at which a bank performs any or all banking business. For purposes of this chapter, a branch bank does not include:
(1) A bank's principal place of business;
(2) Any customer bank communication terminals installed and operated pursuant to section twelve-b, article eight of this chapter; and
(3) Any loan origination office authorized by section twelve-c, article eight of this chapter;
(g) The words "commissioner" or "commissioner of banking" mean the commissioner of banking of West Virginia;
(h) The word "community" means a city, town or other incorporated area, or, where not so incorporated, a trading area;
(i) The word "department" means the department division of banking of West Virginia;
(j) The words "deputy commissioner" or "deputy commissioner of banking" mean the deputy commissioner of banking of West Virginia;
(k) (j) The word "fiduciary" means any trustee, agent, executor, administrator, curator, committee, guardian or conservator, special commissioner, receiver, trustee in bankruptcy, assignee for creditors or any holder of a similar position of trust or responsibility;
(l) (k) The words "financial institutions" mean banks, building and loan associations, industrial banks, industrial loan companies, supervised lenders, credit unions and all other similar institutions, whether persons, firms or corporations, which are by law under the jurisdiction and supervision of the commissioner of banking;
(m) (l) The word "officer" when referring to any financial institution, means any person designated as such in the bylaws and includes, whether or not so designated, any executive officer, the chairman of the board of directors, the chairman of the executive committee, and any trust officer, assistant vice president, assistant treasurer, assistant secretary, assistant trust officer, assistant cashier, assistant comptroller or any other person who performs the duties appropriate to those offices, and the term "executive officer" as herein used, when referring to banking institutions, means an officer of a bank whose duties involve regular, active and substantial participation in the daily operations of such institution and who, by virtue of his position, has both a voice in the formulation of the policy of the bank and responsibility for implementation of the policy, such responsibility of and functions performed by the individual, and not his title or office, being determinative of whether he is an "executive officer";
(n) (m) The words "out-of-state bank" or "out-of-state banking institution" mean a bank chartered under the laws of a state or United States territory, possession or district, other than West Virginia, or organized under federal law and having its main office located in a state, United States territory, possession or district, other than West Virginia;
(o) (n) The words "person" or "persons" mean any individual, partnership, society, association, firm, institution, company, public or private corporation, state, governmental agency, bureau, department, division or instrumentality, political subdivision, county commission, municipality, trust, syndicate, estate or any other legal entity whatsoever, formed, created or existing under the laws of this state or any other jurisdiction;
(p) (o) The words "safe-deposit box" mean a safe-deposit box, vault or other safe-deposit receptacle maintained by a lessor bank, and the rules relating thereto apply to property or documents kept therein in the bank's vault under the joint control of lessor and lessee;
(q) (p) The words "state bank" or "state banking institution" mean, unless the context requires otherwise, a bank chartered under the laws of West Virginia, as distinguished from either an out-of- state bank or a national banking association and is also referred to as a "West Virginia state bank" or "West Virginia state banking institution"; and
(r) (q) The words "trust business" mean the functions, services and activities contained, detailed and embraced in section fourteen, article four of this chapter, and as elsewhere defined by law and as may be included within the meaning of the term "banking business".
ARTICLE 2. DIVISION OF BANKING.

§31A-2-1. Division of banking of West Virginia, office of commissioner of banking continued.

The department of banking of West Virginia and the office of commissioner of banking of West Virginia, and the office of deputy commissioner of banking of West Virginia heretofore created and existing in the state government, are continued but effective the first day of July, two thousand three, will become a division of the office of banking and insurance.
The commissioner of banking in office when this chapter becomes effective shall continue in office until the expiration of his term, and until his successor is appointed and qualified, unless earlier removed from office as provided by law.

§31A-2-4. Jurisdiction of commissioner; powers, etc., of division transferred to commissioner; powers and duties of commissioner.

(a) Subject to the powers vested in the board by article three of this chapter, the commissioner has supervision and jurisdiction over state banks, regulated consumer lenders, second mortgage lenders and brokers, credit unions and all other persons now or hereafter made subject to his or her supervision or jurisdiction. All powers, duties, rights and privileges vested in the division are hereby vested in the commissioner. He or she shall be the chief executive officer of the division of banking and, subject to the oversight of the director of the office of banking and insurance, is responsible for the division's organization, services and personnel and for the orderly and efficient administration, enforcement and execution of the provisions of this chapter and all laws vesting authority or powers in or prescribing duties or functions for the division or the commissioner.
(b) The commissioner shall:
(1) Maintain an office for the division and there keep a complete record of all the division's transactions, of the financial conditions of all financial institutions and records of the activities of other persons as the commissioner considers important. Notwithstanding any other provision of this code, heretofore or hereafter enacted, the records relating to the financial condition of any financial institution and any information contained in the records shall be confidential for the use of the commissioner, and authorized personnel of the division of banking, the director of the office of banking and insurance and authorized personnel of the office of banking and insurance. No person shall divulge any information contained in any records except as authorized in this subdivision in response to a valid subpoena or subpoena duces tecum issued pursuant to law in a criminal proceeding or in a civil enforcement action brought by the state or federal regulatory authorities. Subpoenas shall first be directed to the commissioner, who shall authorize disclosure of relevant records and information from the records for good cause, upon imposing terms and conditions considered necessary to protect the confidential nature of the records, the financial integrity of the financial institution or the person to which the records relate, and the legitimate privacy interests of any individual named in the records. Conformity with federal procedures shall be sought where the institution maintains federal deposit insurance. The commissioner has and may exercise reasonable discretion as to the time, manner and extent the other records in his or her office and the information contained in the records are available for public examination;
(2) Require all financial institutions to comply with all the provisions of this chapter and other applicable laws, or any rule promulgated or order issued thereunder;
(3) Investigate all alleged violations of this chapter and all other laws which he or she is required to enforce and of any rule promulgated or order issued thereunder; and
(4) Require a criminal background investigation, including fingerprint checks, of each:
(A) Applicant seeking approval to charter and/or control a state bank, state credit union, or a foreign bank state agency or representative office;
(B) Applicant seeking a license to engage in the business of money transmission, currency exchange, or other activity regulated under article two, chapter thirty-two-a of this code;
(C) Applicant subject to the commissioner's supervision seeking a license to engage in the business of regulated consumer lending, mortgage lending or brokering; and
(D) Division of banking financial institutions regulatory employee applicant, to be made through the West Virginia state police and the federal bureau of investigation: Provided, That where the applicant is a company or entity already subject to supervision and regulation by the federal reserve board or other federal bank, thrift or credit union regulator, or is a direct or indirect subsidiary of a company or entity subject to the supervision and regulation, or where the applicant is a company subject to the supervision and regulation of the federal securities and exchange commission whose stock is publicly traded on a registered exchange or through the national association of securities dealers automated quotation system, or the applicant is a direct or indirect subsidiary of such a company, the investigation into criminal background is not required. The provisions of this subdivision are not applicable to applicants seeking interim bank charters organized solely for the purpose of facilitating the acquisition of another bank pursuant to section five, article four of this chapter: Provided, however, That where a nonexempt applicant under this subdivision is not a natural person, the principals of the applicant are subject to the requirements of this subdivision. As used in this subdivision, the term "principals" means the chief executive officer, regardless of title, managing partner if a partnership, members of the organizing group if no chief executive officer has yet been appointed, trustee or other person controlling the conduct of the affairs of a licensee. A person controlling ten percent or more of the stock of any corporate applicant shall be considered to be a principal under this provision.
(c) In addition to all other authority and powers vested in the commissioner by provisions of this chapter and other applicable laws, the commissioner may:
(1) Provide for the organization of the division and the procedures and practices of the division and implement the procedures and practices by the promulgation of rules and forms as appropriate and the rules shall be promulgated in accordance with article three, chapter twenty-nine-a of this code;
(2) Employ, direct, discipline, discharge and establish qualifications and duties for all personnel for the division, including, but not limited to, examiners, assistant examiners, conservators and receivers, establish the amount and condition of bonds for the personnel he or she considers appropriate and pay the premiums on the bonds and, if he or she elects, have all personnel subject to and under the classified service of the state personnel division;
(3) Cooperate with organizations, agencies, committees and other representatives of financial institutions of the state in connection with schools, seminars, conferences and other meetings to improve the responsibilities, services and stability of the financial institutions;
(4) In addition to the examinations required by section six of this article, inspect, examine and audit the books, records, accounts and papers of all financial institutions at such times as circumstances in his or her opinion may warrant;
(5) Call for and require any data, reports and information from financial institutions under his or her jurisdiction, at such times and in such form, content and detail considered necessary by him or her in the faithful discharge of his or her duties and responsibilities in the supervision of the financial institutions;
(6) Subject to the powers vested in the board by article three of this chapter, supervise the location, organization, practices and procedures of financial institutions and, without limitation on the general powers of supervision of financial institutions, require financial institutions to:
(A) Maintain their accounts consistent with rules prescribed by the commissioner and in accordance with generally accepted accounting practices;
(B) Observe methods and standards which he or she may prescribe for determining the value of various types of assets;
(C) Charge off the whole or any part of an asset which at the time of his or her action could not lawfully be acquired;
(D) Write down an asset to its market value;
(E) Record or file writings creating or evidencing liens or other interests in property;
(F) Obtain financial statements from prospective and existing borrowers;
(G) Obtain insurance against damage and loss to real estate and personal property taken as security;
(H) Maintain adequate insurance against other risks as he or she may determine to be necessary and appropriate for the protection of depositors and the public;
(I) Maintain an adequate fidelity bond or bonds on its officers and employees;
(J) Take other action that in his or her judgment is required of the institution in order to maintain its stability, integrity and security as required by law and all rules promulgated by him or her; and
(K) Verify any or all asset or liability accounts;
(7) Subject to the powers vested in the board by article three of this chapter, receive from any person or persons and consider any request, petition or application relating to the organization, location, conduct, services, policies and procedures of any financial institution and to act on the request, petition or application in accordance with any provisions of law applicable thereto;
(8) In connection with the investigations required by subdivision (3), subsection (b) of this section, issue subpoenas and subpoenas duces tecum, administer oaths, examine persons under oath, and hold and conduct hearings. Any subpoenas or subpoenas duces tecum shall be issued, served and enforced in the manner provided in section one, article five, chapter twenty-nine-a of this code. Any person appearing and testifying at a hearing may be accompanied by an attorney employed by him or her;
(9) Issue declaratory rulings in accordance with the provisions of section one, article four, chapter twenty-nine-a of this code;
(10) Study and survey the location, size and services of financial institutions, the geographic, industrial, economic and population factors affecting the agricultural, commercial and social life of the state and the needs for reducing, expanding or otherwise modifying the services and facilities of financial institutions in the various parts of the state and compile and keep current data thereon to aid and guide him or her in the administration of the duties of his or her office;
(11) Implement all of the provisions of this chapter, except the provisions of article three of this chapter, and all other laws which he or she is empowered to administer and enforce by the promulgation of rules in accordance with the provisions of article three, chapter twenty-nine-a of this code;
(12) Implement the provisions of chapter forty-six-a of this code applicable to consumer loans and consumer credit sales by the promulgation of rules in accordance with the provisions of article three, chapter twenty-nine-a of this code as long as the rules do not conflict with any rules promulgated by the state's attorney general;
(13) Foster and encourage a working relationship between the division of banking and financial institutions, credit, consumer, mercantile and other commercial and finance groups and interests in the state in order to make current appraisals of the quality, stability and availability of the services and facilities of financial institutions;
(14) Provide to financial institutions and the public copies of the West Virginia statutes relating to financial institutions, suggested drafts of bylaws commonly used by financial institutions and any other forms and printed materials found by him or her to be helpful to financial institutions, their shareholders, depositors and patrons and make reasonable charges for the copies;
(15) Delegate the powers and duties of his or her office, other than the powers and duties excepted in this subdivision, to qualified division personnel who shall act under the direction and supervision of the commissioner and for whose acts he or she is responsible, but the commissioner may delegate to the deputy commissioner of banking and to no other division personnel the following powers, duties and responsibilities, all of which are hereby granted to and vested in the commissioner and for all of which the commissioner also is responsible. The commissioner shall:
(A) Order any person to cease violating any provision or provisions of this chapter or other applicable law or any rule promulgated or order issued thereunder;
(B) Order any person to cease engaging in any unsound practice or procedure which may detrimentally affect any financial institution or depositor of the financial institution;
(C) Revoke the certificate of authority, permit or license of any financial institution except a banking institution in accordance with the provisions of section thirteen of this article; and
(D) Accept an assurance in writing that the person will not in the future engage in the conduct alleged by the commissioner to be unlawful, which could be subject to an order under the provisions of this chapter. This assurance of voluntary compliance shall not be considered an admission of violation for any purpose, except that if a person giving the assurance fails to comply with its terms, the assurance is prima facie evidence that prior to this assurance the person engaged in conduct described in the assurance;
(16) Seek and obtain from courts civil penalties against any person who violates this chapter, the rules issued pursuant to this chapter, or any orders lawfully entered by the commissioner or board of banking and financial institutions in an amount not less than fifty dollars nor more than five thousand dollars for each violation;
(17) Receive from state banking institutions applications to change the locations of their principal offices and to approve or disapprove these applications; and
(18) Take other action as he or she may consider necessary to enforce and administer the provisions of this chapter, except the provisions of article three of this chapter, and all other laws which he or she is empowered to administer and enforce and apply to any court of competent jurisdiction for appropriate orders, writs, processes and remedies.
§31A-2-12. Commissioner's annual report; contents; affidavit.
Annually on or before the first day of December, the commissioner of banking shall prepare and submit to the director of the office of banking and insurance and to the governor a careful and complete report, detailing the work, services and functions performed by him during the preceding fiscal year. The report shall show the total resources and liabilities of all financial institutions, the increase or decrease for the year in the aggregate of such resources and liabilities, carefully noting any failures that may have occurred, stating the causes thereof, and making such remarks, suggestions and recommendations as he may deem pertinent, including recommendations on policy, administration and legislation pertaining to all financial institutions.
Such report shall be verified by the affidavit of said commissioner, who shall swear that, in making the examination of each financial institution he, or a qualified person in his department appointed by him, has personally and carefully inspected the books, papers and affairs of the institution, or in the case of any banking institution, that he has accepted a reasonably current examination made by the federal deposit insurance corporation or the federal reserve system in lieu of conducting such an examination, and that he has not, and, so far as he knows or is informed, no person in his department has, in any case received or agreed to receive directly or indirectly any reward, gift, or promise thereof, from any officer or other person connected with any financial institution.
CHAPTER 33. INSURANCE.
ARTICLE 2. DIVISION OF INSURANCE.

§33-2-1. Insurance commissioner continued; appointment, qualifications and term.

There is hereby continued in effect the state agency heretofore created and known as the "insurance commissioner of West Virginia" which agency shall, be effective the first day of July, two thousand three, be established within the office of banking and insurance as the West Virginia division of insurance, under the supervision of the director of the office of banking and insurance, consist consisting of an insurance commissioner and such employees as may be authorized by law. The term of the present commissioner shall continue until July first, one thousand nine hundred fifty-nine the expiration of his or her term, or until his or her successor is appointed and qualified, unless earlier removed from office as provided by law. All appointments to said office made thereafter shall be for a period of six four years consistent with the governor's term of office, except that in case of a vacancy the appointment shall be made to fill the unexpired term. The commissioner shall be a citizen and resident of this state and shall be appointed by the governor, by and with the advice and consent of the senate. Before taking the oath of office the commissioner shall sever all connections either direct or indirect with any and all insurers subject to his or her supervision and with any person representing any such insurer, except as a policyholder or claimant.
§33-2-15. Annual report by commissioner.
The commissioner shall annually, on or before the first day of November, prepare and submit to the director of the office of banking and insurance and submit to the governor a report for the previous calendar year of his or her official acts, and of the condition of insurers doing business in this state, with a condensed statement of their reports to him or her, abstracts of all accounts rendered to any court by receivers of insolvent insurers, abstracts or reports to the commissioner by the receivers, together with a statement of all assessments, fees, taxes and related charges received from insurers and other licensees and paid by him or her into the state treasury.

§33-2-16. Office of consumer advocacy established; appointed by insurance commissioner; director of consumer advocacy; promulgation of rules.

There is hereby created within the agency division of the insurance commissioner the office of consumer advocacy. The director of the office of consumer advocacy shall be a full-time position and shall be appointed by the commissioner for a term of four years and may be discharged only for failure to carry out the duties of the office or for other good and sufficient cause.
The insurance commissioner shall provide office space, equipment and supplies for the office.
The director shall promulgate rules pursuant to article three, chapter twenty-nine-a of this code in order to effect the purposes of this section, section seventeen, and section eighteen this article.
On or before the first day of each regular session of the Legislature, the director shall prepare and submit to the director of the office of banking and insurance and shall file with the governor, the clerk of the Senate and the clerk of the House of Delegates a report detailing the actions taken by the division in the preceding calendar year.
§33-20B-6. Rate review and reporting.
(a) The commissioner shall review annually the rules, rates and rating plans filed and in effect for each insurer providing five percent or more of the malpractice insurance coverage in this state in the preceding calendar year to determine whether the filings continue to meet the requirements of this article and whether the filings are unfair or inappropriate given the loss experience in this state in the preceding year.
The commissioner shall promulgate legislative rules pursuant to article three, chapter twenty-nine-a of this code establishing procedures for the fair and appropriate evaluation and determination of the past loss experience and prospective or projected loss experience of insurers within and outside this state, actual past expenses incurred in this state and demonstrable prospective or projected expenses applicable to this state.
(b) The commissioner shall promulgate legislative rules pursuant to article three, chapter twenty-nine-a of this code establishing procedures whereby each insurer providing five percent or more of the malpractice insurance coverage in this state annually shall submit to the commissioner the following information:
(1) The number of claims filed per category;
(2) The number of civil actions filed;
(3) The number of civil actions compromised or settled;
(4) The number of verdicts in civil actions;
(5) The number of civil actions appealed;
(6) The number of civil actions dismissed;
(7) The total dollar amount paid in claims compromised or settled;
(8) The total dollar amount paid pursuant to verdicts in civil actions;
(9) The number of claims closed without payment and the amount held in reserve for all such claims;
(10) The total dollar amount expended for loss adjustment expenses, commissions and brokerage expenses;
(11) The total dollar amount expended in defense and litigation of claims;
(12) The total dollar amount held in reserve for anticipated claims;
(13) Net profit or loss;
(14) Investment and other income on net realized capital gains and loss reserves and unearned premiums; and
(15) The number of malpractice insurance policies canceled for reasons other than nonpayment of premiums.
The commissioner shall establish, in the rules, methods of allocating investment and other income among capital gains, loss reserves, unearned premiums and other assets if an insurer does not separately account for and allocate that income.  
Any insurer who fails to submit any information to the commissioner, as required by this subsection, in accordance with the rules promulgated under this subsection, shall be fined ten thousand dollars for each of the first five failures and shall be fined one hundred thousand dollars for the sixth and each subsequent failure.
(c) The commissioner shall report annually, during the month of November, prepare and submit an annual report during the month of November to the director of the office of banking and insurance and to the joint standing committee on the judiciary which shall include the following information pertaining to each insurer providing five percent or more of the malpractice insurance coverage in this state:
(1) The loss experience within the state during the preceding calendar year;
(2) The rules, rates and rating plans in effect on the date of the report;
(3) The investment portfolio, including reserves, and the annual rate of return on the investment portfolio; and
(4) The information submitted to the commissioner pursuant to the rules promulgated by authority of subsection (b) of this section.
§33-20B-7. Studies by the commissioner.
The commissioner is hereby directed to study the feasibility and desirability of creating joint underwriting associations or alternative pooling agreements to facilitate the issuance and underwriting of malpractice insurance policies in this state. The commissioner is further directed to identify and study the policies and practices of all insurers in setting dollar amounts to be held in reserve for anticipated claims and claims filed against malpractice insurance policies in this state.
Beginning in the year one thousand nine hundred eighty-six, the commissioner shall report periodically the results of the studies required by this section to the director of the office of banking and insurance and the joint standing committee on the judiciary. Beginning in the year one thousand nine hundred eighty-seven, the commissioner shall file an annual report of the results of such studies with the director of the office of banking and insurance and the Legislature on the first day of its regular session.
CHAPTER 47A. WEST VIRGINIA LENDING AND CREDIT RATE BOARD.
ARTICLE 1. LENDING AND CREDIT RATE BOARD.

§47A-1-1. Legislative findings; creation, membership, powers and duties of board; termination of board.

(a) The Legislature hereby finds and declares that:
(1) Changes in the permissible charges on loans, credit sales or transactions, forbearance or other similar transactions requires specialized knowledge of the needs of the citizens of West Virginia for credit for personal and commercial purposes and knowledge of the availability of such credit at reasonable rates to the citizens of this state while affording a competitive return to persons extending such credit;
(2) Maximum charges on loans, credit sales or transactions, forbearance or other similar transactions executed in this state should be prescribed from time to time to reflect changed economic conditions, current interest rates and finance charges throughout the United States and the availability of credit within the state in order to promote the making of such loans in this state; and
(3) The prescribing of such maximum interest rates and finance charges can be accomplished most effectively and flexibly by a board comprised of the heads of designated government agencies, university schools of business and administration and members of the public.
(b) In view of the foregoing findings, it is the purpose of this section to establish the West Virginia lending and credit rate board and authorize said board to prescribe semiannually the maximum interest rates and finance charges on loans, credit sales or transactions, forbearance or similar transactions made pursuant to this section subject to the provisions, conditions and limitations hereinafter set forth and to authorize lenders, sellers and other creditors to charge up to the maximum interest rates or finance charges so fixed. The rates prescribed by the board are alternative rates and any creditor may utilize either the rate or rates set by the board or any other rate or rates which the creditor is permitted to charge under any other provision of this code.
(c) The West Virginia lending and credit rate board shall be comprised of:
(1) The director of the governor's office of economic and community development West Virginia development office;
(2) The West Virginia state treasurer;
(3) The West Virginia banking commissioner;
(4) The deans of the schools of business and administration at Marshall University and West Virginia University;
(5) The director of the division of consumer protection of the attorney general's office; and
(6) Three members of the public appointed by the governor with the advice and consent of the Senate. The members of the public shall be appointed for terms of six years each, and until their successors are appointed and qualified; except that of the members first appointed, one shall be appointed for a term of two years, one for a term of four years and one for a term of six years. A member who has served one full term of six years shall be ineligible for appointment for the next succeeding term. Vacancies shall be filled by appointment of the governor with the advice and consent of the Senate, or if any vacancy remains unfilled for three months, by a majority vote of the board. The West Virginia banking commissioner shall serve as chairperson of the board and the rate or rates set by the board shall be determined by a majority vote of those members of the board in attendance at the respective board meeting.
(d) The West Virginia lending and credit rate board is hereby authorized and directed to meet after the thirty-first day of December, one thousand nine hundred eighty-three, on the first Tuesday of April and on the first Tuesday of October of each year or more or less frequently as required by the circumstances and to prescribe by order a maximum rate of interest and finance charge for the next succeeding six months, effective on the first day of June and on the first day of December, for any loans, credit sales or transactions, forbearance or similar transactions made pursuant to this section. In fixing said maximum rates of interest and finance charge, the board shall take into consideration prevailing economic conditions, including the monthly index of long-term United States government bond yields for the preceding calendar month, yields on conventional commercial short-term loans and notes throughout West Virginia and throughout the United States and on corporate interest-bearing securities of high quality, the availability of credit at reasonable rates to the citizens of this state which afford a competitive return to persons extending such credit and such other factors as the board may determine.
(e) Any petition proposing a change in the prescribed maximum rates of interest and finance charges must be filed in the office of the banking commissioner no later than the fifteenth day of February in order to be voted on at the board meeting on the first Tuesday of April and no later than the fifteenth day of August in order to be voted on at the board meeting on the first Tuesday of October. Whenever any change in the prescribed maximum rates of interest and finance charges is proposed the board shall schedule a hearing, at least fifteen days prior to the board meeting at which the proposed rates of interest and finance charge will be voted on by the members of the board, and shall give all interested parties the opportunity to testify and to submit information at such public hearing that is relevant. Notice of the scheduled public hearing shall be issued and disseminated to the public at least twenty days prior to the scheduled date of the hearing.
(f) The board shall prescribe by order issued not later than the twentieth day of April and not later than the twentieth day of October, in accordance with the provisions of subsection (d) of this section the maximum rates of interest and finance charge for the next succeeding six months for any loan, credit sale, forbearance or similar transaction made pursuant to this section and shall cause such maximum rate of interest and finance charge to be issued and disseminated to the public, such maximum rate of interest and finance charge to be effective on the first day of June and the first day of December for the next succeeding six months.
(g) Notwithstanding the other provisions of this chapter, the West Virginia lending and credit rate board shall not be required to meet if no petition has been filed with the board requesting a hearing and interest rates and economic conditions have not changed sufficiently to indicate that any change in the existing rate order would be required, and there are not at least two board members who concur that a meeting of the board is necessary. If the board does not meet, the maximum rates of interest and finance charges prescribed by the board in the existing rate order shall remain in full force and effect until the next time the board meets and prescribes different maximum rates of interest and finance charges.
(h) If circumstances and economic conditions require, the chairperson or any three board members, at any time, may call an emergency interim meeting of the West Virginia lending and credit rate board, at which time the chairperson shall give ten days' notice of the scheduled emergency meeting to the public. All interested parties shall have the opportunity to be heard and to submit information at such emergency meeting that is relevant. Any and all emergency rate board orders shall be effective within thirty days from the date of such emergency meeting.
(i) Each member of the board, except those whose regular salary is paid by the state of West Virginia, shall receive seventy-five dollars per diem while actually engaged in the performance of the duties of the board. Each member shall be reimbursed for all reasonable and necessary expenses actually incurred during the performance of their duties, except that in the event the expenses are paid by a third party the members shall not be reimbursed by the state. The reimbursement shall be paid out of the special revenue account of the division of banking upon a requisition upon the state auditor, properly certified by the banking commissioner.
(j) In setting the maximum interest rates and finance charges, the board may set varying rates based on the type of credit transaction, the term of transaction, the type of debtor, the type of creditor and other factors relevant to determination of such rates. In addition, the board may set varying rates for ranges of principal balances within a single category of credit transactions.
(k) Pursuant to the provisions of article ten, chapter four of this code, the West Virginia lending and credit rate board shall continue to exist until the first day of July, two thousand five.
§47A-1-2. Board staff, offices, funding.
Under the direction of the chairperson of the board, the board shall be entitled to utilize the staff of the West Virginia banking department division of banking and the offices of the board shall be those of the West Virginia banking department division of banking, in order to defray the cost of the board's operations.
On or before the first day of July of each year, the commissioner of banking may charge and collect from each supervised financial organization and supervised lender a yearly fee of fifty dollars and pay it into the special revenue account of the division of banking. The fees paid into this account shall be utilized to pay the costs and expenses of the board and all incidental costs and expenses necessary for its operations.

NOTE: The purpose of this bill is to restructure the grouping of state agencies under departments headed by department secretaries. The restructuring includes consolidating the department of administration and the department of tax and revenue into a new department of finance and administration. The bill establishes five divisions of the new department and allocates the functions of current divisions, boards and offices to one of the divisions.

Within the newly created department of finance and administration, the general services and purchasing functions are assigned to the central services division; technology functions are assigned to the technology division; various agencies including employee benefit programs are assigned to the employee and insurance services division; and regulatory functions including the division of labor, the alcohol beverage control commission, a combined banking and insurance office and miscellaneous boards are assigned to a regulatory services division. The office of technology officer in the governor's office is abolished. The office of tax commissioner; other tax department functions including gaming; and the finance functions of the former department of administration are consolidated in a financial and management services division of the new department, headed by a chief of fiscal management.

The office of chief technology officer in the office of the governor and the current information systems and communications division of the department of administration are abolished, since these are replaced by the new technology division in the new department of finance and administration and the position of chief information officer. Provisions creating a science and technology council are repealed, since the council is inactive.

The bill creates a new department of tourism, natural resources and parks. The division of natural resources including parks is placed under the newly created division of tourism, natural resources and parks. The commissioner of tourism, natural resources and parks is granted the power to consolidate or reorganize certain internal functions and operations, transfer funds, and supervise internal management of agencies within the divisions.

The bill creates a new office of banking and insurance and a director thereof and transfers into the new office the agency of insurance commissioner, redesignated the division of insurance, and the division of banking. In 2004, the state board of risk and insurance management (BRIM) is transferred. The bill further establishes the duties and authority of the new director of the office of banking and insurance and authorizes the director to consolidate certain functions of the agencies and board as he or she considers appropriate to affect cost savings, while maintaining the functions and authority of the agencies and board and their respective administrators. The bill requires that the director of the office of banking and insurance also serve as either the insurance commissioner or the commissioner of banking. The bill also makes changes to chapters 29, 31A

In article two, chapter five-f, which sets forth the overall organization of the executive branch, the bill lists within the department of finance and administration a gaming commission and strikes references to a racing commission in order to conform with separate legislation proposed by the chief executive creating a gaming commission in a reenacted article 22 of chapter 29. The bureau of commerce is abolished and various agencies currently within the bureau are reassigned to other departments or divisions. The development office, the bureau of employment programs, and the newly created division of tourism, natural resources and parks remain as stand-alone agencies.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

Section two, article one, section one, article three, and article seven of chapter-five a are substantially rewritten, and sections five through ten, article four, chapter five-a; articles ten, and eleven, chapter five-a; article one, chapter five-b, and chapter five-g, are new; strike-throughs and underscoring have been omitted.