H. B. 3295
(By Delegate White)
[Introduced March 23, 2009; referred to the
Committee on Education then Finance.]
A BILL to amend and reenact §18-30-6 of the Code of West Virginia,
1931, as amended; to amend and reenact §36-8-13 of said code;
and to amend and reenact §44-1-28 of said code, all relating
to the West Virginia State Treasurer's Office; transferring a
one time sum of $8 million from the Unclaimed Property Trust
Fund to the Prepaid Tuition Trust Escrow Fund; setting $1
million as the amount to be transferred annually from the
Unclaimed Property Trust Fund to the Prepaid Tuition Trust
Fund until the actuary certifies there are sufficient funds to
pay out all contracts; authorizing investment of the Unclaimed
Property Trust Fund; and
facilitating payments by the state
where the owner has died.
Be it enacted by the Legislature of West Virginia:
That §18-30-6 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; that §36-8-13 of said code be amended and reenacted; and that §44-1-28 of said code be amended and reenacted,
all to read as follows:
CHAPTER 18. EDUCATION.
ARTICLE 30. WEST VIRGINIA COLLEGE PREPAID TUITION AND SAVINGS
PROGRAM ACT.
§18-30-6. West Virginia prepaid tuition trust.
(a) The "Prepaid Tuition Trust Fund" is continued within the
accounts held by the State Treasurer for administration by the
board.
(b) The Prepaid Tuition Trust Fund shall continue to receive
all payments from account owners on behalf of beneficiaries of
prepaid tuition contracts or from any other source, public or
private. Earnings derived from the investment of moneys in the
Prepaid Tuition Trust Fund shall remain in the Prepaid Tuition
Trust Fund held in trust in the same manner as payments, except as
refunded, applied for purposes of the beneficiaries, and applied
for purposes of maintaining and administering the prepaid tuition
plan.
(c) The corpus, assets and earnings of the Prepaid Tuition
Trust Fund do not constitute public funds of the state and are
available solely for carrying out the purposes of this article.
Any contract entered into by or any obligation of the board on
behalf of and for the benefit of the Prepaid Tuition Plan does not
constitute a debt of the state, but is solely an obligation of the Prepaid Tuition Trust Fund. The state has no obligation to any
designated beneficiary or any other person as a result of the
Prepaid Tuition Plan. All amounts payable from the Prepaid Tuition
Trust Fund are limited to amounts available in the Prepaid Tuition
Trust Fund.
(d) Nothing in this article or in any prepaid tuition contract
is a promise or guarantee of admission to, continued enrollment in,
or graduation from an eligible educational institution.
(e) The requirements of the provisions of chapter thirty-two
of this code do not apply to the sale of a prepaid tuition contract
by the board, its employees and agents.
(f) The Prepaid Tuition Plan and the Prepaid Tuition Trust
Fund shall continue in existence until terminated by the
Legislature as it determines or by the board upon determining that
continued operation is infeasible. Upon termination of the plan
and after payment of all fees, charges, expenses and penalties, the
assets of the Prepaid Tuition Trust Fund are paid to current
account owners, to the extent possible, on a pro rata basis as
their interests may appear, and any assets presumed abandoned are
reported and remitted to the unclaimed property administrator in
accordance with the Uniform Unclaimed Property Act in article
eight, chapter thirty-six of this code. Any assets then remaining
in the Prepaid Tuition Trust Fund shall revert to the State General
Revenue Fund.
(g) Effective March 8, 2003, the prepaid tuition plan is
closed to new contracts until the Legislature authorizes the plan
to reopen. Closing the plan to new contracts
shall does not mean
the Prepaid Tuition Plan is closed and
shall does not affect any
Prepaid Tuition Plan contracts in effect on March 8, 2003. All
contract owners shall continue to pay any amounts due, including
without limitation monthly installments, penalties and fees.
Earnings derived from the investment of moneys in the Prepaid
Tuition Trust Fund shall continue to accrue to the fund until the
fund is closed in accordance with this article.
(h) The board shall continue to have the actuarial soundness
of the Prepaid Tuition Trust Fund evaluated annually.
(i)(1) On or before December 1, 2003, and each year
thereafter, the
chairman chairperson of the board shall submit to
the Governor, the President of the Senate, the Speaker of the House
of Delegates, Joint Committee on Government and Finance and the
unclaimed property administrator a report certified by an actuary
of the actuarial status of the Prepaid Tuition Trust Fund at the
end of the fiscal year immediately preceding the date of the
report.
In the event the report for fiscal year two thousand three
states there is a projected unfunded liability in the Prepaid
Tuition Trust Fund, the report shall also state the amount needed
for the next fiscal year to eliminate the projected unfunded
liability in equal payments over a period of ten fiscal years, concluding the thirtieth day of June, two thousand thirteen. In
the event the projected unfunded liability of the Prepaid Tuition
Trust Fund increases in subsequent reports, the actuary shall
calculate the amount needed, less any amount in the prepaid tuition
trust escrow fund, to eliminate the projected unfunded liability
over a period the actuary determines is fiscally responsible.
(2) The Prepaid Tuition Trust Escrow Fund is
hereby created
continued in the State Treasury to guarantee payment of Prepaid
Tuition Plan contracts. The board shall invest the Prepaid Tuition
Trust Escrow Fund in accordance with the provisions of this article
in fixed income securities, and all earnings of the escrow fund
shall
remain in accrue to the escrow fund
and be available for
expenditure in accordance with this section.
(3)
In the event the actuary determines an unfunded liability
exists in the Prepaid Tuition Trust Fund, the report shall certify
the amount of money needed for the next fiscal year to eliminate
the projected unfunded liability pursuant to the provisions of
subdivision (1) of this subsection. The certified amount may not
exceed one million dollars each year.
(A) On July 1, 2009, the unclaimed property administrator
shall transfer the amount of $8 million from the Unclaimed Property
Trust Fund to the Prepaid Tuition Trust Escrow Fund.
(B) On or before December 15
in which the chairman submitted
a report stating the amount needed for the next fiscal year to eliminate a projected unfunded liability of each fiscal year and
continuing until the actuary certifies there are sufficient funds
to pay out all contracts, the unclaimed property administrator
shall transfer the amount
requested, not to exceed of $1 million
each year from the Unclaimed Property Trust Fund to the Prepaid
Tuition Trust Escrow Fund.
(4) In the event the money in the Prepaid Tuition Trust Fund
is insufficient to cover the amount of money needed to meet the
current obligations of the Prepaid Tuition Trust Fund, the board
may withdraw from the Prepaid Tuition Trust Escrow Fund the amount
of money needed to meet current obligations of the Prepaid Tuition
Trust Fund.
(5) Notwithstanding any provision of this code to the
contrary, the Governor, after consultation with the Budget Office
of the Department of Revenue, may request an appropriation to the
board in the amount of the deficiency to meet the current
obligations of the Prepaid Tuition Trust Fund, in the budget
presented to the next session of the Legislature for its
consideration. The Legislature is not required to make any
appropriation pursuant to this subsection, and the amount of the
deficiency is not a debt or a liability of the state.
(6) As used in this section, "current obligations of the
Prepaid Tuition Trust Fund" means amounts required for the payment
of contract distributions or other obligations of the Prepaid Tuition Trust Fund, the maintenance of the fund, and operating
expenses for the current fiscal year.
(7) Nothing in this subsection creates an obligation of state
general revenue funds or requires any level of funding by the
Legislature.
(8) After the Prepaid Tuition Trust Fund has been closed and
all moneys paid in accordance with this section, any moneys
remaining in the Prepaid Tuition Trust Escrow Fund shall be
transferred to the General Revenue Fund and the account closed.
(j) To fulfill the charitable and public purpose of this
article, neither the earnings nor the corpus of the Prepaid Tuition
Trust Fund is subject to taxation by the state or any of its
political subdivisions.
(k) Notwithstanding any provision of this code to the
contrary, money in the Prepaid Tuition Trust Fund is exempt from
creditor process and not subject to attachment, garnishment or
other process; is not available as security or collateral for any
loan, or otherwise subject to alienation, sale, transfer,
assignment, pledge, encumbrance or charge; and is not subject to
seizure, taking, appropriation or application by any legal or
equitable process or operation of law to pay any debt or liability
of any account owner, beneficiary or successor in interest.
(l) The provisions of this section may not be construed to
interfere with the operation of the savings plan authorized under this article.
CHAPTER 36. ESTATES AND PROPERTY.
ARTICLE 8. UNIFORM UNCLAIMED PROPERTY ACT.
§36-8-13. Deposit of funds.
(a) The administrator shall record the name and last known
address of each person appearing from the holders reports to be
entitled to the property and the name and last known address of
each insured person or annuitant and beneficiary and with respect
to each policy or annuity listed in the report of an insurance
company, its number, the name of the company and the amount due.
(b) The Unclaimed Property Fund is continued. The
administrator shall deposit all funds received pursuant to this
article in the Unclaimed Property Fund, including the proceeds from
the sale of abandoned property under section twelve of this
article. In addition to paying claims of unclaimed property duly
allowed, the administrator may deduct the following expenses from
the Unclaimed Property Fund:
(1) Expenses of the sale of abandoned property;
(2) Expenses incurred in returning the property to owners,
including without limitation the costs of mailing and publication
to locate owners;
(3) Reasonable service charge; and
(4) Expenses incurred in examining records of holders of
property and in collecting the property from those holders.
(c) The Unclaimed Property Trust Fund is continued within the
State Treasury.
The administrator may invest the Unclaimed
Property Trust Fund with the West Virginia Board of Treasury
Investments and all earnings shall accrue to the fund and are
available for expenditure in accordance with this article. After
deducting the expenses specified in subsection (b) of this section
and maintaining a sum of money from which to pay claims duly
allowed, the administrator shall transfer the remaining moneys in
the Unclaimed Property Fund to the Unclaimed Property Trust Fund.
(d)
(1) On July 1, 2009, the unclaimed property administrator
shall transfer the amount of $8 million from the Unclaimed Property
Trust Fund to the Prepaid Tuition Trust Escrow Fund.
(2) On or before December 15 of each year,
and after receipt
of a report from the Chairman of the Board of Trustees of the West
Virginia College Prepaid Tuition and Savings Program stating the
amount certified by an actuary in accordance with the provisions of
section six, article thirty, chapter eighteen of this code,
notwithstanding any provision of this code to the contrary, the
administrator shall transfer the sum of
money certified by the
actuary $1 million from the Unclaimed Property Trust Fund to the
Prepaid Tuition Trust Escrow Fund,
the amount transferred not to
exceed one million dollars annually until the actuary certifies
there are sufficient funds to pay out all contracts.
(e) On or before June 1, 2007, the unclaimed property administrator shall transfer the amount of $2 million from the
Unclaimed Property Trust Fund to the Deferred Compensation Matching
Fund for operation of the deferred compensation matching program
for state employees. On or before June 1, 2008, the unclaimed
property administrator shall transfer the amount of $1 million from
the Unclaimed Property Trust Fund to the Deferred Compensation
Matching Fund for operation of the matching program.
(f) After transferring any money required by subsections (d)
and (e) of this section, the administrator shall transfer moneys
remaining in the Unclaimed Property Trust Fund to the General
Revenue Fund.
CHAPTER 44. ADMINISTRATION OF ESTATES AND TRUSTS.
ARTICLE 1. PERSONAL REPRESENTATIVES.
§44-1-28. Payment of small sums due employees to distributees of
decedents upon whose estates there have been no
qualifications.
(a) When
there is due from the State of West Virginia, any of
its political subdivisions, the United States or any employer
as
owes wages, salary, pension
payments or money allowed for burial
expenses
or money, wages or salary due from any employer to a
deceased employee to a decedent, upon whose estate there has been
no qualification,
a sum of and the amount owed does not
exceeding
one thousand dollars, it shall be lawful for exceed $5,000, the
State of West Virginia, any of its political subdivisions, the United States or
such the decedent's employer, after one hundred
and twenty days from the death of
said person to whom such money is
due to the decedent, may pay
said sum the amount owed to
his or her
the decedent's surviving
consort spouse, if any;
if none such and
if no spouse survived the decedent, then to the distributees of the
said decedent under the laws of the State of West Virginia.
whose
receipt therefor shall be a full discharge and acquittance to all
persons whomsoever on account of such sum
(b) When the State Treasurer holds property in accordance with
article eight, chapter thirty-six of this code on behalf of a
decedent
upon whose estate
there has
been no qualification,
or is
closed and the amount of the property is $5,000 or less, the
Treasurer may remit the property to the surviving spouse of the
decedent, if any; and if no spouse survives the decedent, then to
the distributees of the decedent under the laws of the State of
West Virginia.
When the State Treasurer holds property in
accordance with article eight, chapter thirty-six of this code on
behalf of a decedent whose estate is closed or has no present
qualification and a valid will or an affidavit naming the
decedent's distributees has been filed with the appropriate probate
jurisdiction, the Treasurer may remit the property to the
distributees as reflected in the will, or in the absence of a will,
as established by the affidavit, in accordance with the laws of
descent and distribution.
(c) Payment in accordance with this section is in full
discharge and acquittance to all persons whomsoever on account of
the property.
NOTE: The purpose of this bill is to transfer a one time sum
of $8 million from the unclaimed property trust fund to the prepaid
tuition trust escrow fund to cover investment losses in the prepaid
tuition trust fund and set $1 million as the amount to be
transferred annually from the unclaimed property trust fund to the
prepaid tuition trust fund until the actuary certifies there are
sufficient funds to pay out all contracts. In addition, the bill
facilitates payments from the state where the owner has died.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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