Source: http://www.wvlegislature.gov/Bill_Text_HTML/2013_SESSIONS/RS/Bills/hb2837%20intr.htm
Timestamp: 2018-01-23 08:21:32
Document Index: 505638549

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(By Delegates Boggs, White, Reynolds, Hunt, Guthrie, Perdue, Pethtel, Williams, Manypenny,
R. Phillips and Skaff)
(By Request of ths State Treasurer)
[Introduced March 6, 2013 ; referred to the
A BILL to repeal §12-1-12c of the Code of West Virginia, 1931, as amended; to repeal §12-6B-1, §12-6B-2, §12-6B-3 and §12-6B-4 of said code; to repeal §48-2-604 of said code; to amend and reenact §5-10B-3 of said code; to amend said code by adding thereto a new section, designated §5-10B-14; to amend and reenact §12-1-3, §12-1-8, §12-1-11 and §12-1-12b of said code; to amend and reenact §12-2-2 and §12-2-3 of said code; to amend and reenact §12-3-1 of said code; to amend and reenact §12-3A-3 of said code; to amend and reenact §12-5-4 of said code; to amend and reenact §12-6A-1, §12-6A-2, §12-6A-3, §12-6A-4 and §12-6A-5, §12-6A-6 and §12-6A-7 of said code; to amend and reenact §12-6C-7 and §12-6C-9 of said code; to amend and reenact §18-30-8 and §18-30-11 of said code; to amend and reenact §33-3-14d; and to amend and reenact §36-8-13 of said code, all relating to the State Treasurer's office; authorizing organizations exempt from taxation within West Virginia to participate in the deferred compensation plan in accordance with the Internal Revenue Code; authorizing Roth accounts within the deferred compensation plan in accordance with the Internal Revenue Code; authorizing financial institutions to offer products in addition to certificates of deposit; updating references to investing authorities to include the Board of Treasury Investments; raising the amount of eligible deposits from $100,000 to the amount insured by a federal agency; deleting archaic language pertaining to eligible depositories; amending language pertaining to what constitutes a conflict of interest for applicants and employees of the Treasurer's office in connection with financial institutions by prohibiting those persons with a defined conflict from participating in the selection of or in contract negotiations with a depository; authorizing depositories to submit reports in an electronic format; repealing duplicate §12-1-12c; clarifying that payments under the CMIA are interest payments; changing the CMIA report from a quarterly report to an annual report since the calculation is only prepared annually; changing the requirement that deposits are required within twenty-four hours to one business day; establishing standards for receipting of moneys, including reviewing of internal controls by auditors and the Treasurer and ensuring copies of audits are submitted to the Legislative Auditor; ensuring confidential information in internal control procedures is redacted before release; clarifying the definitions of federal, special and general revenue funds; eliminating reference to the chief inspector of public offices, which position has not existed for many years; changing the report to the Legislative Auditor for accounts outside the treasury from quarterly to an annual report; clarifying that investments are managed by the Board of Treasury Investments in addition to the Investment Management Board; conforming language pertaining to determining the amount of federal funds in stale state checks to the capabilities of the Enterprise Resource Planning System; clarifying that the Treasurer determines the competitive bidding of banking, investment and related goods and services required for treasury operations; authorizing the Treasurer to develop procedures for storing, retaining and disposing of records for his or her office; ensuring the Director of the Division of Archives and History receives records with historical value; clarifying that the Treasurer is responsible for earnings received on securities, not just interest; repealing §12-6B-1 et seq.; consolidating the debt capacity division into the debt management division; amending legislative findings to acknowledge the importance of monitoring the debt of the state and its spending units; continuing division of debt management as the central information source for debt issued by the state and its spending units; expanding the definition of debt to include debentures, lease purchases, mortgages, securitizations and other types of obligations with specific amounts owed and payable on demand or on determinable dates; defining debt impact report, moral obligation bond, net tax supported debt and tax supported debt; amending definition of spending unit; eliminating requirement for developing a long-term debt plan; clarifying the division is responsible for continuously evaluating debt and debt service requirements and reviewing all proposed debt offerings of the state and its spending units; clarifying the division is to issue a debt impact report if requested by the Governor, Senate President or House of Delegates Speaker and that the report shall not restrict the Governor, Legislature or spending unit; requiring the division to monitor continuing disclosure requirements and post-issuance compliance issues; eliminating requirement that the debt management division provide staff for the debt capacity division; clarifying the reporting requirements of the division and the spending units; requiring the division to prepare and issue the debt capacity report; clarifying the Treasurer promulgates the rules; altering the bond required for the Board of Treasury Investments from $50 million to at least $10 million, as set by the board; updating language pertaining to rating agencies to nationally recognized statistical rating organizations; permitting investment in corporate debt in investment grade securities and in money market and other fixed income funds; authorizing the board to make loans specified by the Legislature and to offer an equipment and software financing program for state government entities; removing requirement that direct or guaranteed obligations of the United States constitute at least fifteen percent of the consolidated fund; providing that securities falling out of compliance with the Code do not have to be sold if the investment manager and investment consultant recommend retention; authorizing moneys in the College Prepaid Tuition and Savings Program Administrative Account be used to provide matching grants and scholarships for the program; clarifying the value of a prepaid tuition or savings plan account is not considered for purposes of determining eligibility for income-based governmental financial assistance unless required by federal law; satisfying amounts due to and from policemen's and firemen's pension and relief funds and the Teachers Retirement System; authorizing expenses related to operations and programs of the office of the Treasurer from the Unclaimed Property Fund; authorizing transfer of moneys from the Unclaimed Property Trust Fund for payment to policemen's and firemen's pension and relief funds; repealing §48-2-604 which duplicates the fee for marriage licenses; and making various technical clean up revisions.
That §12-1-12c of the Code of West Virginia, 1931, as amended, be repealed; that §12-6B-1, §12-6B-2, §12-6B-3 and §12-6B-4 of said code be repealed; that §48-2-604 of said code be repealed; that §5-10B-3 of said code be amended and reenacted; that said code be amended by adding thereto a new section, designated §5-10B-14; that §12-1-3, §12-1-8, §12-1-11 and §12-1-12b of said code be amended and reenacted; that §12-2-2 and §12-2-3 of said code be amended and reenacted; that §12-3-1 of said code be amended and reenacted; that §12-3A-3 of said code be amended and reenacted; that §12-5-4 of said code be amended and reenacted; that §12-6A-1, §12-6A-2, §12-6A-3, §12-6A-4, §12-6A-5, §12-6A-6 and §12-6A-7 of said code be amended and reenacted; that §12-6C-7 and §12-6C-9 of said code be amended and reenacted; that §18-30-8 and §18-30-11 of said code be amended and reenacted; that §33-3-14d of said code be amended and reenacted; and that §36-8-13 of said code be amended and reenacted, all to read as follows:
SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD OF PUBLIC WORKS, MISCELLANEOUS AGENCIES, COMMISSIONS, OFFICES, PROGRAMS, ETC.
(d) Notwithstanding any provision of this code to the contrary and in accordance with the Internal Revenue Code, the Treasurer may extend participation in the plan to organizations exempt from taxation located within West Virginia.
_____The Treasurer or any public employer may authorize Roth accounts within the plan in accordance with the Internal Revenue Code, including, without limitation, conversions, deferrals, rollovers and transfers.
Any state or national bank or any state or federal savings and loan association in this state shall, upon request made to the State Treasurer, be designated as an eligible depository for interest earning deposits of state funds if such bank or state or federal savings and loan association meets the requirements set forth in this chapter. For purposes of this article, the term "interest earning deposits" includes certificates of deposit or other financial institution products. The State Treasurer shall make and apportion such interest earning deposits and shall prescribe the interest rates, terms and conditions of such deposits, all in accordance with the provisions of article six articles six and six-c of this chapter: Provided, That state or federal savings and loan associations insured by an agency of the federal government shall be eligible for such deposits not in excess of one hundred thousand dollars the amount insured by any agency of the federal government. Provided, however, That notwithstanding any provision of this article to the contrary, no such interest earning deposits may be deposited in any depository which has been in existence over a period of five years which does not have a loan to deposit ratio of fifty percent or more and which does not have farm, single or multifamily residential unit loans in an amount greater than twenty-five percent of the amount of loans representing a loan-to-deposit ratio of fifty percent. For the purpose of making the foregoing calculation, the balances due the depository on the following loans shall be given effect: (1) Qualifying residential loans held by the depository; (2) qualifying loans made in participation with other financial institutions; (3) qualifying loans made in participation with agencies of the state, federal or local governments; and (4) qualifying loans originated and serviced by the depository but owned by an out-of-state investor. The computation of the criteria for eligibility specified above shall be based on the average daily balances of deposits, the average daily balances of total loans and qualifying residential loans for the period being reported.
No depository in this State may serve or be eligible for designation as a State Depository if any employee of the Treasurer's office, or a spouse or minor child of that employee, is an officer, director or employee of the depository or owns greater than two percent of the depository either in his or her own name or beneficially or an interest in the depository. An employee of the Treasurer's office shall disclose the circumstance, if any, in the sworn statement required under the provisions of section one, article one, chapter six-b of this code. An employee or a person applying for a position with the office of the Treasurer shall disclose to the Treasurer if he or she, or his or her spouse, is an officer, director or employee of a depository or owns greater than two percent of a depository. Any employee of the office of the Treasurer who, or whose spouse, is an officer, director or employee of a depository or owns greater than two percent of a depository may not participate in any selection of or in any contract negotiations with any depository.
(a) Each depository of state funds shall at the end of each quarter cause its president or cashier designated officer to report to the Treasurer the amount of state funds on deposit and the report shall be verified by the affidavit of the officer making it. The form and contents of the report shall be prescribed by the Treasurer and may be in an electronic format.
_____(b) For the failure to file the report, or for other good cause, the Treasurer may discontinue any depository as an eligible depository and cause all state funds to be withdrawn from any depository or depositories so discontinued.
(c) Periodically, the State Treasurer shall transfer to the "Federal Cash Management Fund", which is hereby authorized and continued, earnings on the State General Revenue Fund in an amount the Treasurer estimates is needed to make refunds interest payments in accordance with the CMIA. After each annual settlement with the United States Treasury, the State Treasurer shall transfer to the State General Revenue Fund any moneys remaining in the Federal Cash Management Interest Fund for the period just settled.
_____(a) All officials and employees of the state authorized by statute to accept moneys on behalf of the State of West Virginia shall keep a daily itemized record of moneys received for deposit in the State Treasury and shall deposit within one business day with the State Treasurer all moneys received or collected by them for or on behalf of the state for any purpose whatsoever. The State Treasurer may grant an exception to the one business day rule when circumstances make compliance difficult or expensive.
_____(b) The State Treasurer shall establish standards for internal controls for spending units receipting moneys, assist spending units in developing and improving their internal control procedures for receipting moneys and provide training. State spending units accepting moneys shall establish and at least annually review internal control procedures for receipting moneys that safeguard assets, minimize fraud, waste and abuse, and comply with applicable laws, rules and regulations. Upon request of the State Treasurer, spending units, except the Department of Revenue, shall submit the internal control procedures and any revisions to the internal control procedures to the State Treasurer for review. The State Treasurer may make revisions to or suggestions for the internal control procedures if he or she believes the procedures do not provide reasonable protection for moneys collected. A spending unit shall adopt any revisions made by the Treasurer.
_____(c) Any confidential information in internal control procedures shall be redacted before release of the internal control procedures in accordance with a request pursuant to §29B-1-1 et seq. of this code.
_____(d) The Treasurer may also audit the receipting of moneys by a spending unit, except spending units within the Department of Revenue. A copy of any audit performed by the Treasurer shall be submitted to the Legislative Auditor. Any audit of a spending unit by an internal auditor or by an auditing firm shall include an evaluation of and report on the adequacy of internal control procedures for receipting moneys, with a copy of the audit being sent to the Treasurer and to the Legislative Auditor within thirty days of receipt of the audit by the spending unit.
_____(e)The State Treasurer shall propose rules for legislative approval, in accordance with the provisions of article three, chapter twenty-nine-a of this code governing the procedure for deposits.
_____(f) The official or employee making deposits with the State Treasurer shall prepare deposit lists in the manner and upon report forms prescribed by the State Treasurer in the state accounting system. The State Treasurer shall review the deposits in the state accounting system and forward the information to the State Auditor and to the Secretary of Revenue.
_____(g) All moneys received by the state shall be recorded in federal, general revenue and special fund accounts in the State Treasury, as follows:
_____(1) All federal funds, defined in section two, article eleven, chapter four of this code, received shall be recorded in federal fund accounts in the state treasury apart from the general and special revenues of the state, and shall be expended in accordance with the provisions of article eleven, chapter four of this code.
_____(2) All moneys, other than federal and special revenue funds, shall be credited to the state fund and treated by the State Auditor and State Treasurer as part of the general revenue of the state.
_____(3) All moneys from specific revenue sources which by legislative enactments are not required to be accounted for as general revenue funds or federal funds, are special revenue funds, and include, but are not limited to the following funds which shall be recorded in separate accounts:
_____(A) All funds excluded by the provisions of section six, article eleven, chapter four of this code;
_____(B) All funds derived from the sale of farm and dairy products from farms operated by any spending unit of the state;
_____(C) All endowment funds, bequests, donations, executive emergency funds and death and disability funds;
_____(D) All fees and funds collected at state educational institutions for student activities;
_____(E) All funds derived from collections from dormitories, boardinghouses, cafeterias and road camps;
_____(F) All moneys received from counties by institutions for the deaf and blind on account of clothing for indigent pupils;
_____(G) All insurance collected on account of losses by fire and refunds;
_____(H) All funds derived from bookstores;
_____(I) All moneys collected and belonging to the capitol building fund, state road fund, general school fund, school fund, political subdivisions, state compensation funds, the fund maintained by the Public Service Commission for the investigation and supervision of applications and all fees, money, interest or funds arising from the sales of all permits and licenses to hunt, trap, fish or otherwise hold or capture fish and wildlife resources and money reimbursed and granted by the federal government for fish and wildlife conservation; and
_____(J) All moneys collected or received under any act of the Legislature providing that funds collected or received under the act shall be used for specific purposes.
_____(K) All moneys, except as provided in paragraphs (A) through (I), inclusive, subdivision (3), subsection (g) of this section, shall be paid into the State Treasury in the same manner as collections not excepted and recorded in separate accounts for receipt and expenditure for the purposes for which the moneys are authorized to be collected by law: Provided, That amounts collected pursuant to, paragraph (J), subdivision (3), subsection (g) of this section, which are found, from time to time, to exceed funds needed for the purposes set forth in general law may be transferred to other accounts or funds and redesignated for other purposes by appropriation of the Legislature.
_____(L) The gross amount collected in all cases shall be paid into the State Treasury. Commissions, costs and expenses, including, without limitation, amounts charged for use of bank, charge, credit or debit cards, incurred in the collection process shall be paid from the gross amount collected in the same manner as other payments are made from the State Treasury.
_____(M) The State Treasurer may establish an imprest fund or funds in the office of any state spending unit upon receipt of a proper application. To implement this authority, the State Treasurer shall propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code. The State Treasurer or his or her designee shall annually audit all imprest funds and prepare a list of the funds showing the location and amount as of fiscal year end, retaining the list as a permanent record of the State Treasurer until the Legislative Auditor has completed an audit of the imprest funds of all agencies and institutions involved.
_____(N) The State Treasurer may develop and implement a centralized receipts processing center. The State Treasurer may request the transfer of equipment and personnel from appropriate state agencies to the centralized receipts processing center in order to implement the provisions of this section: Provided, That the Governor or appropriate constitutional officer has authority to authorize the transfer of equipment or personnel to the centralized receipts processing center from the respective agency.
(a) Every person claiming to receive money from the Treasury of the state shall apply to the Auditor for a warrant for same. The Auditor shall thereupon examine the claim, and the vouchers, certificates and evidence, if any, offered in support thereof, and for so much thereof as he or she finds to be justly due from the state, if payment thereof is authorized by law, and if there is an appropriation not exhausted or expired out of which it is properly payable, the Auditor shall issue his or her warrant on the Treasurer, specifying to whom and on what account the money mentioned therein is to be paid, and to what appropriation it is to be charged. The Auditor shall present to the Treasurer daily reports on the number of warrants issued, the amounts of the warrants and the dates on the warrants for the purpose of effectuating the investment policies of the State Treasurer, and the West Virginia Investment Management Board and the West Virginia Board of Treasury Investments. On the presentation of the warrant to the Treasurer, the Treasurer shall ascertain whether there are sufficient funds in the Treasury to pay that warrant, and if he or she finds it to be so, he or she shall in that case, but not otherwise, endorse his or her check upon the warrant, directed to some depository, which check shall be payable to the order of the person who is to receive the money therein specified.
(c) No state depository may pay a check issued by the State Treasurer unless it the check is presented within six months after it is drawn. and every Every check shall bear upon its face the words "Void, unless presented for payment within six months." If a state check is not presented for payment within six months after it is drawn, the state check is presumed to be a stale check and shall be reported as unclaimed property, in accordance with §36-8-1 et seq. of this code.
_____All state spending units shall regularly monitor checks issued on their behalf in accordance with procedures established by the Treasurer. Factors to be reviewed and reported to the Treasurer include, but are not limited to, whether any outstanding check contains federal funds, whether good-faith efforts have been made to locate the payees, and whether the outstanding check still constitutes a valid obligation owed to the payee. If an outstanding state check contains any federal funds, the spending unit shall advise the Treasurer of the amount of federal funds included in the check, the account from which the federal funds were disbursed and the current fiscal year account to which the federal funds are to be transferred. If the check remains outstanding and becomes a stale check, the Treasurer shall credit the amount of the check to the state depository on which the check was issued, notify the Auditor to make corresponding entries on his or her books, and transfer the amount of federal funds reported as a reimbursement to the current fiscal year account specified to receive federal funds by the spending unit. The Treasurer shall transfer any funds from stale checks that are not federal funds into the Unclaimed Property Fund.
(d) Any information or records maintained by the Treasurer concerning any check not presented for payment within six months of the date of issuance is confidential and exempt from disclosure under the provisions of article one, chapter twenty-nine-b §29B-1-1 et seq. of this code, and is disclosable only to the state spending unit authorizing the check, or to the payee, his or her personal representative, next of kin or attorney-at-law.
(e) All claims required by law to be allowed by any court, and payable out of the State Treasury, shall have the seal of the court allowing or authorizing the payment of the claim affixed by the clerk of the court to his or her certificate of its allowance. No claim may be audited and paid payment authorized by the Auditor unless the seal of the court is thereto attached. as aforesaid. No tax or fee may be charged by the clerk for affixing his or her seal to the certificate, referred to in this section. The Treasurer shall propose rules in accordance with the provisions of article three, chapter twenty-nine-a of this code governing the procedure for such payments from the treasury.
(f) The Treasurer shall develop procedures for the storage, retention and disposal of state records, as defined in section three, article eight, chapter five-a of this code, filed with or submitted to his or her office, and for the reproduction and preservation of essential state records, as defined in section four, article eight, chapter five-a of this code, filed with or submitted to his or her office. Preservation duplicates, as defined in section three, article eight, chapter five-a of this code, shall be maintained in an unalterable readable electronic media in accordance with industry standards, reviewed for accuracy and indexed, and shall have the same force and effect as the original records whether the original records are in existence or not. The procedures shall provide for the maintenance of the confidentiality of the records and ensure the Director of the Division of Archives and History receives the records the director identifies as having historic value. The Treasurer shall purchase the equipment and supplies needed for record retention as part of his or her electronic commerce activities.
This article shall be known and may be cited as "The Debt Management Act of 1991".
(a) The Legislature hereby finds and declares that efficient and effective state government requires the procuring, maintaining and reporting of pertinent information relating to the debt of the state and its agencies, boards, commissions and authorities. The State Treasurer shall perform the functions and duties necessary to serve as a central information source concerning the incurrence, recording and reporting of debt issued by the state, its agencies, boards, commissions and authorities.
There is hereby created within the office of the State Treasurer, the (a) The Division of Debt Management is continued in the office of the State Treasurer.
_____(b) The Division shall serve as a central information source concerning the incurrence, recording and reporting of debt issued by the state and its spending units, and shall prepare reports pertaining to the capacity of the state and its spending units to issue debt.
_____(c) The division shall be under the control of a Director to be appointed by the Treasurer and who shall be shall appoint a director, qualified by reason of exceptional training and experience in the field of activities of his or her respective division, and who shall serve at the will and pleasure of the Treasurer.
_____"Debt impact report" means a report prepared by the division which includes information pertaining to a proposed issuance of debt by the state or its spending units.
_____"Net tax supported debt" means the amount of tax supported debt less any applicable refundings, defeasances, escrow accounts, reserve requirements and sinking funds.
"Spending unit" means any of the state's agencies, boards, commissions, committees, authorities or other of its entities with the power to issue debt and secure such debt, and not including local political subdivisions of the State a state department, agency, board, commission, committee, authority or other entity of the state with the power to issue and secure debt. Spending unit does not include local political subdivisions.
_____"Tax supported debt" means: (1) General obligation bonds of the state; (2) moral obligation bonds of the state or a spending unit; (3) capital leases, installment purchases, lease purchases, mortgages, certificates of participation and any other similar debt financing transaction extending beyond one year issued by the state or its spending units; and (4) any other debt issued by the state or a spending unit which is not self-supporting. Tax supported debt does not include any debt issued by the West Virginia housing development fund, economic development authority, hospital finance authority, parkway authority, public energy authority, solid waste management board and water development authority, with the exception of debt issued by the entities listed in this definition secured by lottery revenues or secured by a lease with the Secretary of Administration.
(1) Develop a long-term debt plan including criteria for the issuance of debt by the State and its spending units and the continuous evaluation of Continuously evaluate the current and projected debt and debt service requirements of the state and its spending units.
(3) Review all proposed offerings of debt of the state and its spending units, requesting any additional information needed to issue a debt impact report if requested by the Governor, the President of the Senate or the Speaker of the House of Delegates. A debt impact report shall in no way restrict the Governor, the Legislature or the spending unit.
_____(3) (4) Act as liaison with the Legislature on all debt matters, including, but not limited to, new debt issues and the status of debt issued by the state and its spending units.
(4) (5) Assist the state and its spending units regarding the issuance of debt if requested.
(5) (6) Establish reporting requirements for the issuance of debt by the state and its spending units pursuant to the provisions of this article.
_____(6) (8) Make and execute contracts and other instruments and pay the reasonable value of services or commodities rendered to the division pursuant to those contracts.
(7) (9) Contract, cooperate or join with any one or more other governments or public agencies, or with any political subdivision of the state, or with the United States, to perform any administrative service, activity or undertaking which any such the contracting party is authorized by law to perform, and to charge for providing such services and expend any fees collected.
(8) (10) Do all things necessary or convenient to effectuate the intent of this article and to carry out its powers and functions.
(a) Within fifteen days following the end of each calendar quarter, each state spending unit shall provide the division and the Legislative Auditor, in the manner provided by this article and in such form and detail as the State Treasurer may by regulation require, a statement of the total debt of each such state spending unit incurred during the calendar quarter and owing at the end of such calendar quarter, which statement shall include report including, but not be limited to, the name of the state spending unit, the amounts and types of debt incurred during the calendar quarter and outstanding at the end of the calendar quarter, the cost and expenses of incurring the debt, the maturity date of each debt, the terms and conditions of the debt, the current debt service on the debt, the current interest rate on the debt, the source of the proceeds utilized for repayment of the debt, the amounts of repayment during the calendar quarter, the repayment schedule and the security for the debt. A state spending unit having no outstanding debt shall not be required to provide the quarterly report but shall file an annual report, on forms established by the Division of Debt Management: Provided, That the state spending unit shall immediately notify the Division of Debt Management of any change in the spending unit's outstanding debt or financial condition.
(c)__Within thirty days after closing on an offering, the terms shall be reported to the responsible spending unit shall report to the division the information pertaining to the offering required by the division in the form as the division may by regulation require.
(c) (d) On or before the thirty-first day of January 31 and the thirty-first day of July 31 of each year, the Treasurer division shall prepare and issue a report of all debt of the state and its spending units and of all proposed debt issuances of which the Treasurer division has received notice and shall furnish a copy of such the report to the Governor, the President of the Senate, the Speaker of the House of Delegates, the members of the Joint Committee on Government and Finance, the Legislative Auditor and upon request to any other legislative committee and any member of the Legislature. The report shall be kept available for inspection by any citizen of the state. The Treasurer division shall also prepare updated reports of all debt of the state and its spending units as of March 31 and September 30 each year, which shall be available for inspection at the office of the State Treasurer on or before the thirty-first day of March and the thirtieth day of September of each year within thirty days of the end of the respective calendar quarter.
_____(e) On or before the fifteenth day of January 15 each year, the division shall report to the Governor and to the Legislature on the capacity of the state to issue additional debt. In preparing its annual review and estimate, the division shall, at a minimum, consider:
_____(1) The amount of net tax supported debt outstanding and debt authorized but not issued during the current and next fiscal year and annually for the following ten fiscal years;
_____(2) Debt service requirements during the current and next fiscal year and annually for the following ten fiscal years based upon existing outstanding debt, previously authorized but unissued debt and projected bond authorizations;
_____(3) Any information available from the budget office of the Department of Revenue in connection with projected revenues and anticipated capital expenditures projected for at least the next five fiscal years;
_____(4) The amount of debt the state and its spending units may prudently issue;
_____(5) What is needed to keep West Virginia within an average to low range of nationally recognized debt limits;
_____(6) The debt ratios rating agencies and analysts use; and
_____(7) The effect of authorizations of new tax supported debt on each of the considerations in this subsection.
The Division of Debt Management Treasurer shall promulgate propose rules for legislative approval relating to reporting requirements and its the duties under this article and the rules shall be promulgated in accordance with the provisions of article three, chapter twenty-nine-a of this Code.
(f) Each director shall give a separate fiduciary or surety bond from a surety company qualified to do business within this state in a penalty amount of one $1 million dollars for the faithful performance of his or her duties as a director. The Board shall purchase a blanket bond for the faithful performance of its duties in the amount of fifty set by the board of at least ten $10 million dollars. or in an amount equivalent to one percent of the assets under management, whichever is greater. The amount of the blanket bond is in addition to the $1 one million dollar individual bond required of each director by the provisions of this section. The board may require a fiduciary or surety bond from a surety company qualified to do business in this state for any person who has charge of, or access to, any securities, funds or other moneys held by the board and the amount of the fiduciary or surety bond are fixed by the board. The premiums payable on all fiduciary or surety bonds are expenses of the board.
(4) Corporate debt rated in one of the six highest rating categories by a nationally recognized rating agency investment grade by a nationally recognized statistical rating organization;
(5) State and local government, or any instrumentality or agency thereof, securities with one of the three highest ratings by a nationally recognized rating agency statistical rating organization;
(8) Asset-backed securities rated in the highest category by a nationally recognized rating agency statistical rating organization;
(9) Certificates of deposit; and
(10) Money market and other fixed income funds; and
(10) (11) Investments in accordance with the Linked Deposit Program, a program loans authorized under this article, programs using financial institutions in West Virginia to obtain certificates of deposit, loans approved by the Legislature invest moneys, equipment and software financing program for West Virginia State Government entities that authorize the board to capture revenues in the event of default and any other programs authorized by the Legislature.
(1) At no time shall more than seventy-five percent of the Consolidated Fund be invested in any bond, note, debenture, commercial paper or other evidence of indebtedness of any private corporation or association; and
(2) At no time shall more than five percent of the Consolidated Fund be invested in securities issued by a single private corporation or association. and
(a) There is hereby created a separate account within the State Treasurer's office titled the "College Prepaid Tuition and Savings Program Administrative Account" for the purposes of implementing, operating and maintaining the trust funds and program created by this article, and providing matching grant contributions and scholarships for the program. On the effective date of this section, all moneys in the Prepaid Tuition Trust Fund Administrative Account are hereby transferred to the College Prepaid Tuition and Savings Program Administrative Account.
(a) The calculations of a beneficiary's eligibility for state student financial aid for higher education may not include or consider the value of distributions available in a prepaid tuition account or the value of distributions available in a savings plan account.
(b) The value of a prepaid tuition account or a savings plan account shall not be considered for purposes of determining eligibility for income-based governmental financial assistance, unless otherwise required by federal law.
(2) All moneys collected from this additional tax shall be received by the commissioner and paid by him or her into a special account in the State Treasury, designated the Municipal Pensions and Protection Fund: Provided, That on or after January 1, 2010, the commissioner shall pay ten percent of the amount collected to the Teachers Retirement System Reserve Fund created in section eighteen, article seven-a, chapter eighteen of this code, twenty-five percent of the amount collected to the Fire Protection Fund created in section thirty-three of this article for allocation by the Treasurer to volunteer and part-volunteer fire companies and departments and sixty-five percent of the amount collected to the Municipal Pensions and Protection Fund: Provided, however, That upon notification by the Municipal Pensions Oversight Board pursuant to the provisions of section eighteen-b, article twenty-two, chapter eight of this code, on or after January 1, 2010, or as soon thereafter as the Municipal Pensions Oversight Board is prepared to receive the funds, sixty-five percent of the amount collected by the commissioner shall be deposited in the Municipal Pensions Security Fund created in section eighteen-b, article twenty-two, chapter eight of this code. The net proceeds of this tax after appropriation thereof by the Legislature is distributed in accordance with the provisions of this section, except for distribution from proceeds pursuant to subsection (d), section eighteen-a, article twenty-two, chapter eight of this code. (b) (1) Before the first day of August 1 of each year, the Treasurer of each municipality in which a municipal policemen's or firemen's pension and relief fund is established shall report to the State Treasurer the average monthly number of members who worked at least one hundred hours per month and the average monthly number of retired members of municipal policemen's or firemen's pension and relief fund or the Municipal Police Officers and Firefighters Retirement System during the preceding fiscal year: Provided, That beginning in the year 2010 and continuing thereafter, the report shall be made to the oversight board created in section eighteen-a, article twenty-two, chapter eight of this code. These reports received by the oversight board shall be provided annually to the State Treasurer by September 1.
(2) Before the first day of September 1 of each calendar year, the State Treasurer, or the Municipal Pensions Oversight Board, once in operation, shall allocate and authorize for distribution the revenues in the Municipal Pensions and Protection Fund which were collected during the preceding calendar year for the purposes set forth in this section. Before the first day of September 1 of each calendar year and after the Municipal Pensions Oversight Board has notified the Treasurer and commissioner pursuant to section eighteen-b, article twenty-two, chapter eight of this code, the Municipal Pensions Oversight Board shall allocate and authorize for distribution the revenues in the Municipal Pensions Security Fund which were collected during the preceding calendar year for the purposes set forth in this section. In any year the actuarial report required by section twenty, article twenty-two, chapter eight of this code indicates no actuarial deficiency in the Municipal Policemen's or Firemen's Pension and Relief Fund, no revenues may be allocated from the Municipal Pensions and Protection Fund or the Municipal Pensions Security Fund to that fund. The revenues from the Municipal Pensions and Protection Fund shall then be allocated to all other pension and relief funds which have an actuarial deficiency. (3) The moneys, and the interest earned thereon, in the Municipal Pensions and Protection Fund allocated to volunteer and part-volunteer fire companies and departments shall be allocated and distributed quarterly to the volunteer fire companies and departments. Before each distribution date, the State Fire Marshal shall report to the State Treasurer the names and addresses of all volunteer and part-volunteer fire companies and departments within the state which meet the eligibility requirements established in section eight-a, article fifteen, chapter eight of this code.
(e) Based on the findings of an audit by the Treasurer, the Legislature hereby finds and declares that during the period of 1982 through February 29, 2012 allocations from the Municipal Pensions Protection Fund were miscalculated and errors were made in amounts transferred, resulting in overpayments and underpayments to the relief and pension funds and to the Teachers Retirement System, and that the relief and pension funds and the Teachers Retirement System were not at fault for any of the overpayments and underpayments. The Legislature hereby further finds and declares that any attempt by the Municipal Pension Oversight Board or other entity to recover any of the overpayments would be unjust and create economic hardship for the entities that received overpayments. No entity, including, without limitation, the Municipal Pension Oversight Board, may seek to recover from a relief or pension fund, the Teachers Retirement System or the state any overpayments received from the Municipal Pensions and Protection Fund and the overpayments are not subject to recovery, offset or litigation. Pursuant to the audit by the Treasurer, the amount of $3,571,546.55 is determined owed to specific relief and pension funds through the period of February 29, 2012. The Treasurer is hereby authorized to transfer the amount of $3,571,546.55 from the Unclaimed Property Trust Fund to the Municipal Pensions and Protect Fund, which is hereby reopened for the sole purpose of the transfer and remittances pursuant to this subsection (e), and to use the amount transferred to remit the amounts due to the pension and relief funds. The payment of the $3,571,546.55 to the pension and relief funds is complete satisfaction of any amounts due, and n o entity, including, without limitation, the Municipal Pension Oversight Board and any pension or relief fund, may seek to recover any further amounts.
_____(5) Expenses related to the operations and programs of the Treasurer's office.
(f) On or before June 1, 2013, the unclaimed property administrator shall transfer the amount of $3,571,546.55 from the Unclaimed Property Trust Fund to the Municipal Pensions Security Fund for the purpose of satisfying any amounts due as of February 29, 2012 to policemen's and firemen's pension and relief funds in accordance with §33-3-14d of this Code.
_____(f) (g) After transferring any money required by subsections (d) and (e) through (f) of this section, the administrator shall transfer moneys remaining in the Unclaimed Property Trust Fund to the General Revenue Fund.
NOTE: The purpose of this bill is to amend various provisions of the Code affecting the Treasurer's Office. In addition to various technical clean up revisions, the bill authorizes organizations exempt from taxation within West Virginia to participate in the deferred compensation plan Retirement Plus in accordance with the Internal Revenue Code and authorizes Roth accounts within the deferred compensation plan Retirement Plus in accordance with the Internal Revenue Code. Financial institutions would be permitted to offer products in addition to certificates of deposit. The bill updates references to investing authorities to include the Board of Treasury Investments, raises the amount of eligible deposits from $100,000 to the amount insured by a federal agency, deletes archaic language pertaining to eligible depositories, amends language pertaining to what constitutes a conflict of interest for applicants and employees of the Treasurer's office in connection with financial institutions by prohibiting those persons with a defined conflict from participating in the selection of or in contract negotiations with a depository, and authorizes depositories to submit reports in an electronic format. In connection with the Cash Management Improvement Act (CMIA), the bill repeals duplicate §12-1-12c, clarifies that payments under the CMIA are interest payments, and changes the CMIA report from a quarterly report to an annual report since the calculation is only prepared annually. Revisions pertaining to receipting of moneys include changing the requirement that deposits are required within 24 hours to one business day (since 24 hours is not feasible); establishing standards for receipting of moneys; reviewing internal controls by auditors and the Treasurer; ensuring copies of audits are submitted to the Legislative Auditor; and requiring redaction of confidential information in internal control procedures before release of the procedures. The bill clarifies the definitions of federal, special and general revenue funds, eliminates reference to the chief inspector of public offices (position has not existed for many years), and changes the report to the Legislative Auditor for accounts outside the treasury from quarterly to an annual report. Proposed revisions conform language pertaining to determining the amount of federal funds in stale state checks to the capabilities of the enterprise resource planning system; clarify that the Treasurer determines the competitive bidding of banking, investment and related goods and services required for treasury operations; authorize the Treasurer to develop procedures for storing, retaining and disposing of records for his or her office; ensure the February 28, 2013 Director of the Division of Archives and History receives records with historical value; and clarify that the Treasurer is responsible for earnings received on securities, not just interest. The bill repeals the provision of article 6B of chapter 12; consolidates the debt capacity division into the debt management division; amends legislative findings to acknowledge the importance of monitoring the debt of the state and its spending units; continues the division of debt management as the central information source for debt issued by the state and its spending units; expands the definition of debt to include debentures, lease purchases, mortgages, securitizations and other types of obligations with specific amounts owed and payable on demand or on determinable dates; defines debt impact report, moral obligation bond, net tax supported debt and tax supported debt; amends definition of spending unit; eliminates requirement for developing a long-term debt plan; clarifies the division is responsible for continuously evaluating debt and debt service requirements and reviewing all proposed debt offerings of the state and its spending units; clarifies the division is to issue a debt impact report if requested by the Governor, Senate President or House of Delegates Speaker and that the report shall not restrict the Governor, Legislature or spending unit; requires the division to monitor continuing disclosure requirements and post-issuance compliance issues; eliminates requirement that the debt management division provide staff for the debt capacity division; clarifies the reporting requirements of the division and the spending units; requires division to prepare and issue the debt capacity report; and clarifies the Treasurer promulgates the rules. As to the Board of Treasury Investments, the bill proposes to alter the bond required for the board from $50 million to at least $10 million, as set by the board; update language pertaining to rating agencies to nationally recognized statistical rating organizations; authorize investment in investment grade corporate debt, in money market and in other fixed income funds; authorize the board to make loans specified by the Legislature and to offer an equipment and software financing program for state government entities; remove requirement that direct or guaranteed obligations of the United States constitute at least fifteen percent of the consolidated fund; and permit securities falling out of compliance with the Code to not have to be sold if the investment manager and investment consultant recommend retention. The bill authorizes moneys in the College Prepaid Tuition and Savings Program Administrative Account be used to provide matching grants and scholarships for the SMART529 program and clarifies the value of a prepaid tuition or savings plan account is not considered for purposes of determining eligibility for income-based governmental financial assistance unless required by federal law. In accordance with the audit conducted by the Treasurer, the bill satisfies amounts due to and from policemen's and firemen's pension and relief funds and the Teachers Retirement System. In addition, the bill authorizes expenses related to operations and programs of the office of the Treasurer from the Unclaimed Property Fund, authorizes transfer of moneys from the Unclaimed Property Trust Fund for payment to policemen's and firemen's pension and relief funds, repeals §48-2-604 which duplicates the fee for marriage licenses, and makes various technical clean up revisions.
§12-2-2 has been completely rewritten; therefore it has been completely underscored.