Title 112 W. Va. C.S.R.

Treasurer Treasurer

Series 02 Substitute Checks-Exceptional Items Fund

W. Va. Code R. § 112-2-1 General

Scope. -- This rule implements the provisions of W. Va. Code §12-4-11.

Authority. – W. Va. Code §12-4-11.

Filing Date. – April 7, 2022 Effective Date. – April 7, 2022

1.5. Sunset Provision. – This rule shall terminate and have no further force or effect on August 1, 2027.

W. Va. Code R. § 112-2-2 Definitions

2.1. “Agency” means and includes any department, board, commission, division, branch office, or other separate unit of State government, and any officer or employee of an agency, who or which collects moneys due the State.

2.2. “Financial institution” means a state or national bank or a state or federal savings and loan association.

2.3. “Auditor” means the West Virginia State Auditor or his or her designee.

2.4. “Substitute check” refers to the state check that is reissued after an original state check is cancelled.

2.5. “Treasurer” means the West Virginia State Treasurer or his or her designee.

W. Va. Code R. § 112-2-3 Procedures for Substitute Checks

3.1. An agency desiring to obtain a substitute check shall submit a request to the Treasurer.

3.2. When the Treasurer is notified that an originally issued state check is erroneous, lost, mutilated, stolen, destroyed, or involves forgery, or that payment is no longer required, the Treasurer shall issue a stop payment order to the financial institution on which the check was drawn.

3.3. If the financial institution honors the stop payment order, the Auditor and the Treasurer shall issue the substitute check on the account on which the original check was written.

3.4. If the financial institution refuses to honor the stop payment order because the check has been presented and cashed, the Treasurer shall notify the agency of the refusal and shall send a copy of the paid check to the agency. The agency shall notify the payee that the check has already been paid. If the payee claims the check endorsement was forged, the payee shall furnish an affidavit in the form specified by the Treasurer to the agency, which shall submit the affidavit to the Treasurer. If the Treasurer finds the affidavit acceptable and upon completion of an investigation that finds the payee is not at fault, the Auditor and the Treasurer shall issue a replacement check on the account on which the original check was written.

3.5. The Treasurer may pursue claims arising out of stolen or forged state checks against any entity involved.

Series 03 Establishment Of Imprest Funds

W. Va. Code R. § 112-3-1 General

1.1. Scope. -- This legislative rule implements the provisions of W. Va. Code §12-2-2, which requires the West Virginia State Treasurer to establish and audit imprest funds. The purpose of this rule is to carry out the legislative intent so that the Treasurer may establish, control and audit imprest funds.

1.2. Authority. -- W. Va. Code §12-2-2.

1.3. Filing Date. -- June 16, 2011.

1.4. Effective Date. -- June 16, 2011.

W. Va. Code R. § 112-3-2 Definitions

For purposes of this rule, unless a different meaning is clearly required by the context:

2.1. "Agency" means and includes any department, board, commission, division, branch office or other separate unit of state government, which includes state colleges and universities, and any of its officers or employees, who or which collects moneys due the state;

2.2. "Imprest Fund" means a cash change fund in a fixed amount maintained at an agency. The fund may be used for the purpose of providing automated teller machine (ATM) services at any agency or for cashing checks for students at state colleges and universities in West Virginia; and

2.3. "Treasurer" means the West Virginia State Treasurer or his or her designee from the Treasurer’s office.

W. Va. Code R. § 112-3-3 Establishment of Imprest Funds

3.1. Any state agency that desires an imprest fund shall apply to the Treasurer for the establishment of the imprest fund. The application shall be made on forms prescribed by the Treasurer’s office. The agency shall include on the forms the name of the state agency, the name and purpose of the imprest fund, the desired balance of the imprest fund, the physical location of the imprest fund and the name of the person responsible for the imprest fund. The Treasurer shall determine whether the application is complete and whether the need for the imprest fund is valid and notify the agency of his or her decision.

3.2. Any state college or university may apply to the Treasurer for the establishment of an imprest fund for the purpose of providing check-cashing services at that institution. If the Treasurer grants the request for an imprest fund, the state college or university may charge fees for the service for each check cashed and for each check returned for insufficient funds. Each institution shall designate certain employees to provide the service and have charge of the imprest fund. Any check determined by the Treasurer’s Office to be uncollectible shall be charged against the check-cashing imprest fund.

3.3. Any agency may apply to the Treasurer for the establishment of an imprest fund for the purpose of providing automated teller machine (ATM) services at any state agency location. If the Treasurer grants the request for an imprest fund, the agency may charge fees for the ATM services. Each agency shall designate certain employees to provide the service and have charge of the imprest fund.

3.4. The agency shall deposit the fees received for check-cashing or automated teller machine (ATM) services into the imprest fund established by the agency for that service. The agency shall maintain an itemized account of the receipts generated from all fees. If the amount of cash in the imprest fund (after charges for uncollectible checks) exceeds the amount approved by the Treasurer at the conclusion of any audit, then the agency shall deposit the excess to the account from which the imprest fund was established.

3.5. If, at any time, an agency discovers a shortage in a check-cashing or ATM imprest fund that is attributed to human error, it may correct the shortage by charging the shortage against fees received for the services. If the agency suspects or discovers a shortage in an imprest fund due to theft, the agency shall notify the Treasurer immediately.

W. Va. Code R. § 112-3-4 Increasing or Decreasing the Balance

Whenever an agency determines that there is a need to increase or decrease the balance of an imprest fund, the agency shall apply to the Treasurer for a change in the balance of the imprest fund. The agency shall apply for the change on the forms prescribed by the Treasurer’s office. The agency shall state on the forms the agency name, the name and number of the imprest fund, the current authorized balance, the requested balance to be authorized, the reasons for the increase or decrease, and the amount of increase or decrease.

W. Va. Code R. § 112-3-5 Change of Person Responsible for the Imprest Fund

Whenever an agency has a change in personnel responsible for an imprest fund, the agency shall notify the Treasurer of the change on a form prescribed by the Treasurer’s office. The agency shall include on the form the agency’s name and physical location, the name and number of the imprest fund, the balance of the imprest fund on the date of the change in personnel, the signatures of the person being relieved of responsibility and the person assuming the responsibility for the imprest fund and the dates the signatures were affixed. The agency shall conduct an audit of the imprest fund on the first day that responsibility for the imprest fund is transferred to another employee. The agency shall submit a copy of the audit to the Treasurer along with the notification of change form. In the event the agency discovers a discrepancy in the fund due to suspected theft, the agency shall notify the Treasurer’s office immediately. The Treasurer’s office shall notify the Legislative Auditor of the theft and assist in any subsequent investigation or audit.

W. Va. Code R. § 112-3-6 Audit and Recordkeeping

6.1. The Treasurer or his or her designee shall audit all imprest funds annually. If the audit reveals an overage in an imprest fund, the agency shall deposit the overage to the account from which the fund was established. If the audit reveals a shortage in an imprest fund due to human error, the shortage may be corrected by replenishing the imprest fund with monies transferred from the account from which the imprest fund was established in an amount sufficient to maintain the approved balance. The Treasurer may decrease the approved amount of an imprest fund at any time. The Treasurer shall forward a copy of each annual audit to the Legislative Auditor. In the event the Treasurer’s office determines that any shortage in the imprest fund is due to suspected theft, the Treasurer’s office shall notify the Legislative Auditor of the theft and assist in any subsequent investigation or audit.

6.2. The Treasurer, or his or her designee, shall prepare a list of all approved imprest funds. The list shall state the names of the funds, and the location and the amount of each imprest fund as of the end of each fiscal year. The Treasurer shall retain the list of imprest funds as a permanent record of the Treasurer’s office until the Legislative Auditor completes an audit of the imprest funds of all state agencies.

112CSR3

112CSR3

Series 04 Procedures for Deposit of Moneys with the State Treasurer's Office by State Agencies

W. Va. Code R. § 112-4-1 General

1.1. Scope. – This rule implements the provisions of W. Va. Code §12-2-2.

1.2. Authority. – W. Va. Code §12-2-2.

1.3. Filing Date. – April 7, 2022

1.4. Effective Date. – April 7, 2022

1.5 Sunset Provision. – This rule shall terminate and have no further force or effect on August 1, 2027.

W. Va. Code R. § 112-4-2 Definitions

For purposes of this rule, unless a different meaning clearly is required by the context:

2.1. “Agency” means and includes any department, board, commission, division, branch office or other separate unit of State government, and any officer or employee of an agency, who or which collects moneys due the State;

2.2. “Check” includes a bank draft, money order, cashier's check, check written on the payor's checking account, and any other non-cash payment of funds due the State.

2.3. “Credit Card” means a card issued for the purpose of obtaining money, property or services on credit and includes charge cards.

2.4. “Depository” or “State Depository” means a financial institution insured by an agency of the federal government which has posted any required collaterally secured bond and which is approved by the Treasurer.

2.5. “EFT” or “Electronic Funds Transfer” means the transfer of funds initiated through an electronic terminal, telephone, computer (including online banking) or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account.

2.6. “Financial institution” means a state or national bank or a state or federal savings and loan association.

2.7. “Lockbox services” means the process in which payments and remittance forms are mailed to a post office box, retrieved and processed, and the moneys then deposited into a financial institution account.

2.8. “Receipt Account” means an account in which moneys are deposited belonging to or due the State of West Virginia or any of its agencies.

2.9. “Treasurer” means the West Virginia State Treasurer or his or her designee from the Treasurer’s office.

W. Va. Code R. § 112-4-3 Procedures for Deposits

3.1. Upon request by an agency for a receipt account, the Treasurer shall determine whether the receipt account is appropriate. If the Treasurer determines the receipt account is appropriate, the Treasurer shall establish the receipt account. If the Treasurer determines the receipt account is not appropriate, the Treasurer shall work with the agency to make alternative arrangements.

3.2. Methods for Depositing -

3.2.1. Checks - An agency shall deposit its check collections by any one or more of the following methods:

3.2.1.a. The agency's own employees may take the checks directly to the designated depository;

3.2.1.b. An agency may use the services of a courier or armored car service engaged by the Treasurer to pick up deposits and deliver them to the designated depository;

3.2.1.c. An agency may use the Treasurer’s lockbox services for direct processing; or

3.2.1.d. The agency may use any other method approved in writing by the Treasurer.

3.2.2. Cash - An agency shall deposit its cash collections by any one or more of the methods authorized for deposit of checks by the Treasurer. In addition, an agency may use the safekeeping services of a night depository at a depository with an authorized receipt account.

3.2.3. Credit Cards - Agencies may accept credit card payments, using any one or more of the methods prescribed by the Treasurer, physical presentment of a credit card, verbal presentment by a voice payment system, written authorization, or on a website approved by the Treasurer.

3.2.4. EFT - Upon approval from the Treasurer, an agency shall deposit its EFT collections at the depository the Treasurer established to receive EFT collections.

3.3. Financial Institution Deposit Forms - The agency collecting moneys shall make its deposits using a form prescribed by the Treasurer.

3.4. Processing Deposit Forms - The Treasurer shall prescribe the method by which all deposit forms are processed.

3.5. Redeposit of State Checks - When an agency desires to redeposit State checks, the agency shall make the redeposit request directly to the Treasurer's office.

3.6. Endorsement of Deposited Checks - The Treasurer shall prescribe the method of endorsing checks in accordance with applicable federal and state law.

3.7. Adjustments and Returned Checks - Whenever debit or credit tickets for adjustments to a previous deposit for returned checks are received by an agency from a depository, the agency shall process the debit or credit tickets as directed by and on the forms prescribed by the Treasurer.

3.8. Frequency of Deposits - The collecting agency shall deposit all receipts within one business day in the designated depository.

3.9. Clearing Accounts - The requirements of this rule apply to every agency, notwithstanding that at the time of making the deposit, the agency may not know the exact general ledger receipt account for preparation of the Treasurer's Deposit Form. If the agency does not know the exact general ledger receipt account, the agency shall obtain approval from the State Auditor to use a general ledger clearing account, and the agency shall record its deposits in the general ledger clearing account. When the agency determines the exact general ledger accounts applicable to the funds deposited in the general ledger clearing account, it shall prepare a “Revenue Transfer” and transfer the funds from the general ledger clearing account to the appropriate general ledger receipt accounts.

3.10. Applicability of this rule - All moneys collected or held by agencies in the form of cash, checks, bank accounts, or in any other form, are public moneys subject to the requirements of W. Va. Code §12-1-2 and this rule. In the event any agency believes that all or part of this rule may not apply to its operations and collections, or that all or part of the moneys held by it may not be governed by this rule, it shall submit to the Treasurer a written statement of the reasons for that belief. If the Treasurer disagrees with the agency's written statement, the agency shall then deposit the moneys in accordance with the requirements of W. Va. Code §12-2-2 and this rule. The agency shall also furnish an itemization and accounting of the moneys, with the name of the bank, bank account number, and the name and purpose of the account in which the moneys were deposited.

Series 06 Selection of State Depositories for Disbursement Accounts Through Competitive Bidding

W. Va. Code R. § 112-6-1 General

Scope. -- This rule implements the provisions of W. Va. Code §12-1-2, which requires the Treasurer’s Office to select depositories for disbursement accounts through competitive bidding by financial institutions in this State The provisions of this rule do not apply to trust and investment accounts, activities and proceeds from the sale of general obligation bonds or bonds issued by the School Building Authority, the Parkways Authority, the Housing Development Fund, the Economic Development Authority, the Infrastructure and Jobs Development Counsel, the Water Development Authority or the Hospital Finance Authority.

Authority. – W. Va. Code §12-1-2.

Filing Date. – April 7, 2022 Effective Date. – April 7, 2022

1.5 Sunset Provision. – This rule shall terminate and have no further force or effect on August 1, 2027.

W. Va. Code R. § 112-6-2 Definitions

For purposes of this rule, unless a different meaning clearly is required by the context:

2.1. “Agency” means and includes any department, board, commission, division, branch office or other separate unit of State government, and any officer or employee of an agency, who or which collects moneys due the State.

2.2. “Depository” or “State Depository” means a financial institution insured by an agency of the federal government which has posted any required collaterally secured bond and which is approved by the Treasurer.

2.3. “Disbursement account” means those accounts from which are paid moneys due from the State of West Virginia or any official, department, board, commission, political subdivision or agency thereof to any political subdivision, person, firm or corporation except moneys paid from investment accounts.

2.4. “Financial institution” means a state or national bank or a state or federal savings and loan association.

2.5. “Invitation to bid” means the notice sent to potential bidders, either via email or U.S. mail, containing information on the goods and services in connection with one or more disbursement accounts being bid, bidding deadlines, how to obtain bid documents, how to submit bids and any other information the Treasurer considers appropriate.

2.6. “Purchasing Documents” means the request for quotations or the request for proposals and all attachments and other documents related to the bidding of the goods and services in connection with bidding for one or more disbursement accounts.

2.7. “Treasurer” means the West Virginia State Treasurer or his or her designee from the Treasurer’s office.

W. Va. Code R. § 112-6-3 Procedures for Bidding

3.1. Eligibility for Bidding – Financial institutions designated as depositories prior to award are eligible to bid for a disbursement account.

3.2. Notice to Bidders – The Treasurer shall send invitations to bid to every depository in this state at least thirty (30) days prior to the date on which bids for a disbursement account are due.

3.3. Purchasing Documents – The Treasurer shall make the purchasing documents available on the Treasurer’s website and shall mail the purchasing documents to any person or entity that cannot obtain them from the website.

3.4. Submission of Bids – Financial Institutions shall submit bids in the format and in the time frame required by the Treasurer, as specified in the purchasing documents. The Treasurer shall record the receipt of each bid received to ensure timely receipt prior to the bid deadline.

3.5. Bid Opening – On the date and time set for the bid opening, the Treasurer shall publicly open and read aloud the names of the bidders. The Treasurer shall promptly analyze the bids and make awards as provided in Section 4 of this rule.

3.6. Conditions of Bidding – All bids are subject to the following conditions:

3.6.1. Bids received after the date and time stated in the purchasing documents are disqualified;

3.6.2. Bids require the signature of an authorized officer of the financial institution. For purposes of this section, an authorized officer is the president or a vice-president;

3.6.3. To withdraw a bid, an authorized officer of the bidder shall submit a written request prior to the bid opening;

3.6.4. The Treasurer may reject any and all bids if the Treasurer considers rejection in the best interests of the State; and

3.6.5. The bid shall comply with all requirements of the purchasing documents.

W. Va. Code R. § 112-6-4 Award and Compensation

4.1. Criteria for Award - The purchasing documents shall contain the criteria for award.

4.2. Method of Compensation - The financial institution receiving the purchase order awarded pursuant to the purchasing documents shall submit monthly invoices detailing the goods and services provided at the rates specified in the purchase order. The Treasurer shall review the invoice and if found in order shall make payment in arrears directly to the financial institution.

Series 07 Selection of State Depositories for Receipt Accounts

W. Va. Code R. § 112-7-1 General

Scope. -- This legislative rule establishes the West Virginia State Treasurer’s requirements for the selection of depositories for receipt accounts. This rule does not apply to proceeds from the sale of general obligation bonds or bonds issued by the School Building Authority, the Parkways, Economic Development and Tourism Authority, the Housing Development Fund, the Economic Development Authority, the Infrastructure and Jobs Development Council, the Water Development Authority or the Hospital Finance Authority.

Authority. – W. Va. Code §12-1-2.

Filing Date. – April 7, 2022 Effective Date. – April 7, 2022

1.5 Sunset Provision. – This rule shall terminate and have no further force or effect on August 1, 2027.

W. Va. Code R. § 112-7-2 Definitions

For purposes of this rule, unless a different meaning clearly is required by the context:

2.1. “Account Analysis” means a system of determining compensation by which the Treasurer and depository enter into a contract that provides for monthly invoices to the Treasurer with detailed account activities billed at the contracted rate, less any earnings, allowances or credits.

2.2. “Agency” means and includes any department, board, commission, division, branch office or other separate unit of state government, and any officer or employee who or which collect moneys due the state.

2.3. “Collaterally Secured Bond” means a continuous bond payable to the state of West Virginia, conditioned upon the prompt payment, whenever lawfully required, of any moneys of an agency. In accordance with W. Va. Code §31A-4-31, the West Virginia Commissioner of Financial Institutions and the Attorney General must approve the form of the collaterally secured bond. The Treasurer may require increases or decreases in the amount of the bond or replacement by a new bond. Collateral for the bond shall consist of bonds of the United States, bonds or letters of credit of the federal land banks, of the federal home loan banks, or bonds of the state of West Virginia or any county, district or municipality of the State, or other bonds, letters of credit or securities approved by the Treasurer.

2.4. “Compensating Balance” means the cash balance which the Treasurer maintains with a depository to compensate the depository for its services.

2.5. “Deposit Guaranty Bond” means a bond, underwritten by an insurance company authorized to do business in this state, providing coverage for deposits of state funds that are in excess of the amounts insured by an agency of the federal government.

2.6. “Depository” or “State Depository” means a financial institution insured by an agency of the federal government which has posted any required collaterally secured bond and which is approved by the Treasurer.

2.7. “Financial institution” means a state or national bank or a state or federal savings and loan association.

2.8. “Receipt Accounts” means those accounts in which state funds are deposited.

2.9. “State Funds” means any moneys belonging to or received by the state of West Virginia or any of its agencies or any moneys for which the state of West Virginia is responsible.

2.10. “Treasurer” means the West Virginia State Treasurer or his or her designee from the Treasurer’s office.

2.11. “Valid Bankers’ Surety Company” means a bankers’ surety company that meets the criteria established by this rule and which the Treasurer has approved as acceptable for insuring a depository through the issuance of a deposit guaranty bond.

W. Va. Code R. § 112-7-3 Qualification of Depositories for Receipt Accounts

3.1. In order to qualify as a depository, a depository shall:

3.1.1. Be a financial institution registered, operating and doing business in the State of West Virginia;

3.1.2. Be insured by an agency of the federal government;

3.1.3. For deposits of state funds in excess of any amount insured by an agency of the federal government, be insured by:

3.1.3.a. A deposit guaranty bond issued by a valid bankers’ surety company acceptable to the Treasurer; and/or

3.1.3.b. A collaterally secured bond, first approved by the Treasurer, in an amount of not less than Ten Thousand Dollars ($10,000.00);

3.1.4. Provide collateral of at least one hundred two percent (102%) of the amount of state funds on deposit with that financial institution in excess of the amount insured by an agency of the federal government. The Treasurer shall determine the value of the collateral; and

3.1.5. Meet all other requirements and provisions of the W. Va. Code.

3.2. A state depository for receipt accounts shall submit proposed fee schedules for the types of services rendered by the state depository for receipt accounts, including, but not limited to, services such as wire transfers, returned checks and cash handling. The proposed fee schedules are subject to review and approval by the Treasurer. If the fee schedules are approved by the Treasurer, then the Treasurer may enter into a contract with the state depository for receipt accounts to furnish the required services. If the fee schedules are not approved by the Treasurer, then the Treasurer may negotiate satisfactory revised fee schedules with that state depository for receipt accounts or select another state depository for receipt accounts.

W. Va. Code R. § 112-7-4 Valid Bankers’ Surety Companies Issuing Deposit Guaranty Bonds

4.1. The Treasurer may approve a bankers’ surety company as acceptable after receipt and review of a request for approval, receipt of evidence that the surety company has met all of the requirements of this rule, a review of information obtained through an independent investigation of the surety company by the Treasurer, and consideration of any other information the Treasurer considers appropriate.

4.2. Before a state depository may be insured through a deposit guaranty bond, the depository shall first determine that the surety company issuing the bond is a valid bankers’ surety company approved by the Treasurer. Any depository insured through a deposit guaranty bond issued by a bankers’ surety company that is not approved by the Treasurer shall not receive or hold for deposit any state funds.

4.3. Any bankers’ surety company that wishes to provide a deposit guaranty bond to a state depository to insure state funds shall first submit to the Treasurer a written request for approval as a valid bankers’ surety company. A surety company shall not issue a deposit guaranty bond to insure state funds on deposit with any state depository without receiving prior written approval from the Treasurer.

4.4. In order to qualify as a valid bankers’ surety company, the surety company shall provide to the Treasurer:

4.4.1. Evidence that it is registered to do business in the State of West Virginia and is in good standing with the West Virginia Insurance Commissioner and the West Virginia Commissioner of Financial Institutions;

4.4.2. Evidence that it has at least one current superior rating by a nationally recognized statistical rating service, such as A.M. Best or Moody’s;

4.4.3. A statement that it agrees to abide by all applicable laws, rules and requirements of the United States of America and the state of West Virginia, including, but not limited to, those of the West Virginia Insurance Commissioner, the West Virginia Commissioner of Financial Institutions and the West Virginia State Treasurer; and

4.4.4. Its most recent annual report.

4.5. Upon request of the Treasurer, the surety company shall further submit any clarifying or additional information the Treasurer may require for investigation and consideration of the company.

4.6. In considering approval of a bankers’ surety company, the Treasurer shall consider all other relevant factors and available information acquired through due diligence that affect a company’s viability and capacity to provide valid deposit guaranty bonds to depositories in this state.

4.7. All approved bankers’ surety companies shall submit quarterly and annual reports and filings required by the Treasurer, including, but not limited to, statements of financial condition and verification a rating has not changed. Information required from the surety companies may be filed electronically or in any other manner determined by the Treasurer.

4.8. All approved bankers’ surety companies are subject to review by the Treasurer’s office on a quarterly basis or more frequently if the Treasurer believes it is warranted. If, after any review, the Treasurer determines that a bankers’ surety company no longer meets the Treasurer’s requirements, the Treasurer shall rescind the approval of the surety company, immediately notify the surety company and the affected state depository of the rescission of the approval, and take any actions the Treasurer determines necessary in order to protect state funds.

4.9. Any approved bankers’ surety company that issued a deposit guaranty bond insuring state funds shall provide the Treasurer at least thirty (30) calendar days advance written notice of intent to amend, cancel or not renew the bond. Any state depository that has notice the surety company may or will amend, cancel or not renew its deposit guaranty bond shall immediately, and in no event in not less than thirty (30) calendar days, notify the Treasurer and forward a copy of any notice received to the Treasurer.

4.10. If a depository insured through a deposit guaranty bond issued by a approved bankers’ surety company becomes insolvent or in any way breaches its contract with the Treasurer and fails to cure the insolvency or breach within five (5) business days, the bankers’ surety company shall within three (3) business days of written notice from the Treasurer remit to the state of West Virginia the amount of funds determined by the Treasurer as required to make the state treasury whole.

4.11. The Treasurer may require a state depository to post a collaterally secured bond and pledge securities in lieu of a deposit guaranty bond, if the Treasurer believes it necessary to protect state funds.

4.12. A deposit guaranty bond issued by an approved bankers’ surety company to insure state funds on deposit with a state depository may only secure those funds in the custody of the Treasurer.

W. Va. Code R. § 112-7-5 Collaterally Secured Bonds

5.1. The Treasurer may deposit money with a depository in excess of the amount insured by an agency of the federal government or through a deposit guaranty bond issued by a valid banker’s surety company, if the depository provides a collaterally secured bond in the amount of not less than Ten Thousand Dollars ($10,000).

5.2. A depository shall provide collateral of at least one hundred two percent (102%) of the amount of state funds on deposit with that financial institution in excess of the amount insured by an agency of the federal government or the amount insured by a deposit guaranty bond issued by a valid bankers’ surety company.

5.3. The value of the collateral used by a depository shall be determined by the Treasurer.

5.4. If a state depository insured through a collaterally secured bond or through letters of credit becomes insolvent or in any way breaches its contract with the Treasurer and fails to cure the insolvency or breach within five (5) business days, the holder of the collateral or the obligor for the letters of credit for the depository shall, within three (3) business days, upon written demand, remit to the Treasurer the collateral securing state funds on deposit with the state depository.

W. Va. Code R. § 112-7-6 Certificates of Deposit

6.1. A state depository is not required to provide a bond or security in lieu of bond if the deposits accepted are placed in certificates of deposit meeting the following requirements:

6.1.1. The funds are invested through a designated state depository selected by the Treasurer;

6.1.2. The selected depository arranges for the deposit of the funds in certificates of deposit in one or more financial institutions wherever located in the United States, for the account of the state;

6.1.3. The full amount of principal and accrued interest of each certificate of deposit is insured by the Federal Deposit Insurance Corporation;

6.1.4. The selected depository acts as custodian for the state’s account; and

6.1.5. At the same time that the state funds are deposited and the certificates of deposit are issued, the selected depository receives an amount of deposits from customers of other financial institutions wherever located in the United States equal to or greater than the amount of the funds invested by the state through the selected depository.

W. Va. Code R. § 112-7-7 Selection Procedures

7.1. Each agency collecting moneys for deposit in the state treasury shall notify the Treasurer of its anticipated collections and deposits, including the extent of the activity in its accounts, size of its accounts, frequency of deposits, special services that may be needed, and any other information requested by the Treasurer. The agency may submit its preferred choice or a list of preferred choices of state depositories for receipt accounts to the Treasurer. If the agency submits a preferred choice or list, it shall also submit a statement of the reasons for its preference. However, the Treasurer is not required to select a state depository preferred by an agency.

7.2. The Treasurer shall review the information submitted and consider:

7.2.1. The activity of the various accounts;

7.2.2. The reasonable value of the banking services to be rendered;

7.2.3. The value and importance of the deposits to the economy of the communities and the various areas of the state affected; and

7.2.4. The proposed fee schedule of the recommended depository, as required by Subsection 8.1 of this rule.

W. Va. Code R. § 112-7-8 Compensation

8.1. Method of Compensation - A depository for receipt accounts shall enter into an agreement for services with the Treasurer. The agreement shall provide that the depository may be compensated for its services by either of the following methods:

8.1.1. Compensating Balance: The compensating balance shall be negotiated by the Treasurer and the depository and shall be based, in part, on the anticipated activity expected at the depository. The compensating balance left in the Treasurer’s accounts shall offset fees. The compensating balance agreement is subject to periodic review by the Treasurer and re-negotiation or adjustment, as the Treasurer determines necessary; or

8.1.2. Account Analysis: The depository shall submit to the Treasurer a monthly invoice. The invoice shall reflect the total amount of actual activity for the period billed at the rates established in its agreement with the Treasurer, less any earnings, allowances or credits to which the Treasurer may be entitled, and any other information required by the Treasurer. Additional information may include, without limitation, current monthly average balances, service descriptions, earnings allowance rates, and a summary of balances and charges. The Treasurer shall pay the invoices with a state check or through an electronic funds transaction.

8.2. Compensation for Ancillary Services - The Treasurer may, from time to time, require a depository to furnish certain ancillary services in the course of providing the receipt account services for which it was selected. The Treasurer shall compensate the depository by one of the methods in subsection 8.1 of this rule.

Series 08 Procedures for Processing Payments from the State Treasury

W. Va. Code R. § 112-8-1 General

Scope. -- This rule implements the provisions of W. Va. Code §12-3-1 et seq., which require the Treasurer’s Office to develop procedures for processing payments from the State Treasury.

Authority. – W. Va. Code §12-3-1.

Filing Date. – April 7, 2022 Effective Date. – April 7, 2022

1.5 Sunset Provision. – This rule shall terminate and have no further force or effect on August 1, 2027.

W. Va. Code R. § 112-8-2 Definitions

For purposes of this rule, unless a different meaning clearly is required by the context:

2.1. "Auditor" means the State Auditor of West Virginia.

2.2. "Bank" means the disbursement bank selected by the Treasurer to process all checks issued by the State of West Virginia.

2.3. "Check" means a warrant issued by the Auditor and endorsed by the Treasurer directing the Treasurer’s disbursement bank to pay money as instructed.

2.4. "Treasurer" means the West Virginia State Treasurer or his or her designee from the Treasurer’s office.

2.5. "Warrant" means an authorization by the State Auditor authorizing the Treasurer to pay an obligation of the State.

W. Va. Code R. § 112-8-3 Procedures for Processing State Warrants and Checks

3.1. Check Processing by the Treasurer - Upon receipt by the Treasurer of a warrant issued by the Auditor, the Treasurer shall ascertain whether there are sufficient funds in the treasury to pay that warrant. If the Treasurer finds there are sufficient funds in the treasury to pay the warrant, he or she shall endorse the warrant. If this requirement is met, the Treasurer shall endorse the warrant directing the Treasurer’s disbursement bank to pay the money as instructed. The Auditor shall provide the Treasurer a daily listing of all warrants issued. This listing shall be in paper form, electronic media, or any other form as determined by the Treasurer.

3.2. Check Processing by the Disbursement Bank - The disbursement bank shall process all checks issued by the Treasurer in accordance with the requirements of the contract for the disbursement account. The disbursement bank shall provide the Treasurer a daily listing of all checks paid. Also, the disbursement bank shall provide the Treasurer the total dollar amount of checks paid by the bank each day. Each day, the Treasurer shall transfer to the disbursement account from his or her receipt account, an amount sufficient to cover all checks paid.

3.3. Reconciliation of the Disbursement Bank Account - The disbursement bank shall reconcile the disbursement account in accordance with the requirements of the disbursement account contract.

Series 09 Repeal of Rules for the Reporting of Debt Capacity

W. Va. Code R. § 112-09 Repeal of Rules for the Reporting of Debt Capacity

STATE OF WEST VIRGINIA

WEST VIRGINIA

SECRETARY OF STATE

NATALIE E. TENNANT

ADMINISTRATIVE LAW DIVISION cFILED 5/6/2014 4:36:18 PM .AL.CL OL WL .. . VIHORRA . LCHLTANY OF .TAIL FORM 6 - NOTICE OF FINAL FILING AND ADOPTION OF A LEGISLATIVE RULE AUTHORIZED BY THE WEST VIRGINIA LEGISLATURE AGENCY Treasurer

RULE TYPE

Legislative AMENDMENT TO EXISTING RULE Yes TITLE-SERIES 112-

RULE NAME

Repeal of Rules for the Reporting of Debt Capacity Repea CITE AUTHORITY §12-6B-1 et seq.

HOUSE OR SENATE BILL NUMBER

SECTION

PASSED ON §64-9-6(e) 03/08/2014 THIS RULE IS FILED WITH THE SECRETARY OF STATE. THIS RULE BECOMES EFFECTIVE ON THE FOLLOWING DATE Tuesday, July- 01, 2014 BY CHOOSING 'YES', I ATTEST THAT THE PREVIOUS STATEMENTS ARE TRUE AND CORRECT.

Yes Diana Stout -- By my signature, I certify that I am the person authorized to file legislative rules, in accordance with West Virginia Code §29.4-3-11 and §394-3-2.

Series 10 Reporting Debt

W. Va. Code R. § 112-10-1 General

Scope. -- This rule establishes the reporting requirements for debt issued by the State and its spending units.

Authority. – W. Va. Code §12-6A-7.

Filing Date. – April 7, 2022 Effective Date. – April 7, 2022

1.5. Sunset Provision. –This rule shall terminate and have no further force or effect on August 1, 2027.

W. Va. Code R. § 112-10-2 Definitions

For the purpose of this rule, unless a different meaning is clearly required by the context:

2.1 “Lease” means the definition as stated by the Government Accounting Standards Board (GASB), which states: a lease is a contract that conveys control of the right to use another entity’s nonfinancial asset as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. Any contract that meets this definition should be accounted for under the lease guidance.

2.2. "Certificates of participation" means a method of financing or refinancing the purchase of assets, involving a lease in which certificates are issued to evidence the holders' rights and interest in lease payments.

2.3. “Division” means the Division of Debt Management in the office of the State Treasurer.

2.4. "General obligation bonds" means bonds backed by the full faith and credit and the taxing power of the issuer. The issuance of general obligation bonds by the state requires a constitutional amendment approved by two-thirds of both houses of the Legislature and a majority vote of qualified voters.

2.5. "Installment purchase" means a lease agreement, in excess of one year, providing for the application of payments toward the purchase price of the assets financed and for which the payments are expressly subject to legislative appropriation.

2.6. "Lease purchase" means a lease agreement, in excess of one year, providing for the application of payments, in whole or in part, toward the purchase price for the assets financed or providing a specified purchase option price for the assets financed, and which payments are subject to legislative appropriation.

2.7. "Mortgage" means a debt instrument for financing the purchase of real property by which the borrower gives the lender a lien on the property as security for the repayment of the loan.

2.8. “Revenue bonds and notes” means bonds or notes issued to finance a project from which a revenue stream is created and dedicated toward debt service payments.

2.9. "State" means the State of West Virginia.

2.10. "Treasurer" means the West Virginia State Treasurer or his or her designee.

W. Va. Code R. § 112-10-3 Quarterly Report

3.1. Timeframe - A spending unit that has debt shall submit a report to the Division and the Legislative Auditor for each calendar quarter by the 15th day of the following month, with the report containing the information and in the format specified by the Treasurer.

3.2. A spending unit having no debt shall only submit an annual report.

3.3. A spending unit shall immediately notify the Division of any change in its outstanding debt or financial condition.

3.4. The quarterly report of a spending unit with debt shall contain the following information, as applicable:

3.4.1. The name of the spending unit;

3.4.2. The amount and type of debt outstanding at the end of the quarter;

3.4.3. The total debt service on the debt for the quarter;

3.4.4. The true interest cost on the debt per bond series issued;

3.4.5. The maturity of each bond series issued;

3.4.6. The dollar amount of debt repayment during the quarter;

3.4.7. The amount and type of debt incurred during the quarter, if not already reported;

3.4.8. The source of funds used for repayment of debt issued during the quarter, and a schedule, by year, for the collection of the funds, if not already reported;

3.4.9. All costs and expenses incurred in the issuance of debt during the quarter, if not already reported;

3.4.10. A copy of the transcript, including the official or offering statement or circular, setting forth both the terms and conditions of debt issued during the quarter, if not already reported;

3.4.11. The repayment or amortization schedule of all debt issued during the quarter, if not already reported;

3.4.12. The security for the debt, if not already reported; and

3.4.13. All other information specified by the Treasurer.

W. Va. Code R. § 112-10-4 Proposed Debt Issuance Report

4.1. Each spending unit intending to incur debt shall submit a report to the Division no later than 30 days prior to the debt closing. The report shall contain the information and be in the format specified by the Treasurer.

4.2. The proposed debt issuance report shall contain the following information, as applicable:

4.2.1 The name and address of the issuer;

4.2.2. The proposed sale date;

4.2.3. The estimated amount and type of debt to be issued;

4.2.4. Whether the sale is to be competitive or negotiated;

4.2.5. Whether the interest is exempt from federal and state taxation and the applicability of alternative minimum taxation;

4.2.6. The amount for refunding;

4.2.7. The repayment sources;

4.2.8. The purposes of the financing;

4.2.9. The names of the principal parties to the transaction, including, without limitation:

4.2.9.a. The bond counsel;

4.2.9.b. The tax counsel;

4.2.9.c. The trustee;

4.2.9.d. The financial advisor;

4.2.9.e. The auditor;

4.2.9.f. The underwriter, placement agent or purchaser;

4.2.9.g. The underwriter's counsel;

4.2.9.h. The name and contact information of person completing form; and

4.2.9.i. The name and information for contact person of issuer;

4.2.10. The terms and conditions of the debt if they are not set forth in the preliminary offering statement;

4.2.11. A preliminary copy of the offering statement;

4.2.12. The source of funds used for repayment of debt and a schedule, by year, for the collection of the funds. A schedule is not required if the source of revenue is the General Revenue Fund; and

4.2.13. All other information specified by the Treasurer.

W. Va. Code R. § 112-10-5 Report of Final Sale

5.1. Each spending unit issuing debt shall submit a report of final sale to the Division in the format specified by the Division no later than 30 days after closing on the debt. The report shall contain the information and be in the format specified by the Treasurer.

5.2. The report of final sale is not the same as the quarterly report.

5.3. The report shall include the following information, as applicable:

5.3.1. The name and address of the issuer;

5.3.2. The issue name;

5.3.3. The date of issuance;

5.3.4. The principal;

5.3.5. The purpose of the sale;

5.3.6. The true interest cost;

5.3.7. The amount and type of debt issued;

5.3.8. A copy of the official or offering statement or circular;

5.3.9. A copy of the transcript;

5.3.10. All costs and expenses incurred in the issuance of the debt, including:

5.3.10.a. The bond counsel;

5.3.10.b. The issuer counsel;

5.3.10.c. The accounting and auditing;

5.3.10.d. The financial advisor;

5.3.10.e. The bond insurance or other credit enhancement;

5.3.10.f. The rating agencies;

5.3.10.g. The underwriters, placement agent or purchaser;

5.3.10.h. The underwriter's counsel;

5.3.10.i. The tax counsel;

5.3.10.j. The trustee's fees;

5.3.10.k. The trustee's counsel fees;

5.3.10.l. The printing fees;

5.3.10.m. The auditor's fees;

5.3.10.n. The credit enhancement fees - The spending unit shall specify nature of the credit enhancement and the anticipated future cost, if any; and

5.3.10.o. Any other fees and costs requested by the Treasurer;

5.3.11. The terms and conditions of the debt if not set forth in the official or offering statement or circular;

5.3.12. The source of funds used for repayment of the debt, and a schedule, by year, for the collection of the funds; and

5.3.13. Any other information specified by the Treasurer.

W. Va. Code R. § 112-10-6 Debt Position Reports

6.1. The Division shall issue a report on the status of the debt of the state and its spending units for the periods ending each calendar quarter within 30 days of the month following the close of each calendar quarter. The Division shall submit copies of the June 30 and December 31 reports to the Governor, President of the Senate, Speaker of the House of Delegates, members of the Joint Committee on Government and Finance, Legislative Auditor and to anyone else requesting the report.

6.2. The Division shall issue an annual report on the status of the debt of the state and its spending units as of June 30 each year.

W. Va. Code R. § 112-10-7 Debt Capacity Reports

7.1. The Division, with the cooperation and support of the Department of Administration, the Department of Revenue, and the Bureau of Employment Programs, shall issue an annual debt capacity report on or before January 15 of each year for the period ending June 30 of the next preceding fiscal year.

7.2. The annual debt capacity report shall review the size and condition of the state's net tax supported debt and estimate the maximum amount of net tax supported debt which the state and its spending units may authorize based upon ratios and guidelines established by the major bond rating agencies to keep West Virginia within an average to low range of nationally recognized debt limits.

W. Va. Code R. § 112-10-8 Debt impact statement

8.1. The Division shall prepare a debt impact statement at the request of the Governor or any member of the Legislature.

8.2. A debt impact statement shall at a minimum include the following:

8.2.1. The current net tax supported debt;

8.2.2. The current net tax supported debt as a percentage of personal income;

8.2.3. The current net tax supported debt per capita;

8.2.4. A list of assumptions derived from the House or Senate bill or other information provided for which the debt impact statement is being prepared;

8.2.5. The recommendation of the Treasurer;

8.2.6. The total debt service as a percentage of revenue;

8.2.7. The current ratios and guidelines as established and reported by the major rating agencies; and

8.2.8. A comparison of West Virginia's ratio to other states with similar bond ratings.

W. Va. Code R. § 112-10-9 Other

9.1. The Division may require any additional information from any spending unit it determines is necessary to carry out the provisions of W. Va. Code §12-6A-1 et seq.

9.2. The Division shall post copies of its quarterly and annual reports on the Division website.

9.3. Additional Reports and Advisory Opinions - The Treasurer may, as he or she considers necessary, issue advisory letters, notices and/or opinions on new debt issuance, the condition of the State's outstanding debt and any other factor which the Treasurer determines may directly or indirectly affect the State's credit rating.

Series 12 Procedures for Fees in Collections by Charge, Credit or Debit Card or by Electronic Payment

W. Va. Code R. § 112-12-1 General

Scope. -- This rule establishes the procedures for authorizing and implementing fees by state spending units to cover the cost of collection of moneys by charge, credit, or debit card or by electronic payment.

Authority. – W. Va. Code §12-3A-6.

Filing Date. – April 7, 2022 Effective Date. – April 7, 2022 Sunset Provision. – This rule shall terminate and have no further force or effect on August 1, 2027.

W. Va. Code R. § 112-12-2 Definitions

2.1. “ACH” means automated clearinghouse, a national EFT network which enables participating financial institutions to distribute electronic credit and debit entries to accounts and to settle the entries.

2.2. “Card Issuer” means the financial institution issuing a charge, credit, or debit card.

2.3. “Card Payment Service Provider” means an entity that accepts payment by charge, credit, or debit card or electronic payment on behalf of a spending unit.

2.4. “Charge Card” means a card (usually plastic) issued for the purpose of obtaining money, property, or services on credit, with the full balance due at the end of each statement period.

2.5. “Convenience Fee” means a fixed charge assessed to a charge, credit, or debit card or electronic payment to help defray the cost of processing a transaction.

2.6. “Credit Card” means a card (usually plastic) issued for the purpose of obtaining money, property, or services on credit, with the full balance or minimum payments due at the end of each statement period. Interest is assessed on the unpaid balance.

2.7. “Customer” means any person or entity purchasing from a spending unit.

2.8. “Debit Card” means a card issued for the purpose of obtaining money, property, or services with the amount charged directly to the holder’s financial institution account.

2.9. “Discount Fee” means the charges assessed to the merchant on the total sale by charge, credit, or debit card by a card issuer for accepting its card.

2.10. “Electronic Commerce” means the processing of transactions by electronic techniques, including, but not limited to, the telephone, IVR, POS terminal, internet, electronic payment, virtual terminal, and online transaction processing.

2.11. “EFT” means electronic funds transfer.

2.12. “Electronic Payment” means an EFT, including, but not limited to, payment by ACH, ACH based electronic check, wire transfer, and online transaction processing.

2.13. “Financial Institution” means a state or national bank or a state or federal savings and loan association.

2.14. “Internet” means the computer-based global information system linking computer networks all over the world by the use of internet protocol suite (TCP/IP).

2.15. “IVR” means a telephone interactive voice response system.

2.16. “Merchant” means any state spending unit that accepts charge, credit, or debit cards.

2.17. “Point of Sale Terminal” or “POS Terminal” means a device used for the primary purposes of transferring moneys to or from a financial institution account or segregating moneys in accounts within a financial institution, or both, for transactions, including, without limitation, devices used to implement and facilitate check guarantee and check authorization.

2.18. “Service Fee” means a fixed or variable rate charge assessed to a charge, credit, or debit card or electronic payment to help defray the cost of processing a transaction.

2.19. “Spending Unit” means any entity of the West Virginia state government for which an appropriation is requested or to which an appropriation is made by the Legislature.

2.20. “STO” means the West Virginia State Treasurer’s Office.

2.21. “Transaction” means one electronic purchase or payment.

2.22. “Treasurer” means the West Virginia State Treasurer or his or her designee from the Treasurer’s office.

2.23. “Virtual Terminal” means a web-browser based access to an acquirer, processor, or third party service provider website to authorize payment card transactions where the merchant manually enters payment card data via a securely connected web browser. Unlike physical terminals, virtual terminals do not read data directly from a payment card.

W. Va. Code R. § 112-12-3 General Information

3.1. Spending units shall use the methods provided by the Treasurer to accept payments, including payments by electronic commerce with convenience or service fees, unless the spending unit is authorized by the West Virginia Code to use other methods.

3.2. Electronic commerce methods available from the Treasurer include, but are not limited to, telephone, IVR, POS terminal, EFT, virtual terminal, online transaction processing, and any other electronic payment method.

3.3. Governmental entities other than spending units may request to use the methods provided by the Treasurer to accept payments.

3.4. To accept payments, a spending unit shall provide all information the Treasurer requests and fully complete all STO required forms and an authorized officer of the spending unit shall execute STO required agreements.

3.5. The Treasurer shall review each submitted request and agreement. If the Treasurer determines the requested payment methods are appropriate and all required forms are complete, the Treasurer shall authorize the spending unit to use the payment methods requested. If the Treasurer determines the requested payment methods are not appropriate, alternative methods would be better or the required forms are not complete, the Treasure shall inform the spending unit and work with the spending unit to meet its needs.

W. Va. Code R. § 112-12-4 Convenience Fees or Service Fees

4.1. The Treasurer may authorize the use of convenience fees or service fees unless use is prohibited by law.

4.2. The Treasurer shall set the amount of the convenience fees or service fees authorized.

4.3. The use of convenience fees or service fees shall follow the merchant rules or regulations established by card brands.

4.4. The Treasurer may contract with one or more card payment service providers.

W. Va. Code R. § 112-12-5 Duties of Spending Units

5.1. The spending unit shall acquire the necessary computer system, software, and other matters required to process transactions.

5.2. For internet transactions, the website of a spending unit shall contain:

5.2.1. A complete description of the goods or services offered;

5.2.2. The returning merchandise and refund policy;

5.2.3. A customer service contact, including an electronic mail address and telephone number;

5.2.4. A statement that the transaction currency is US dollars;

5.2.5. Any legal or other restrictions;

5.2.6. The policy on order fulfillment, including, but not limited to, delivery policy and practices;

5.2.7. Re-direct services to re-direct customers to the Treasurer’s payment gateway to select the method of payment and execute the payment. The spending unit shall also develop the "front end” website that will connect to the Treasurer’s payment gateway;

5.2.8. The privacy policy;

5.2.9. An opt-in system for customers to receive mail, electronic or regular US mail, that only retains information provided by a customer that has authorized maintenance of that information;

5.2.10. A guarantee to not sell or share the names and addresses of customers unless specific authorization is granted in the West Virginia Code;

5.2.11. Appropriate security controls; and

5.2.12. A conspicuous disclosure of the nature and amount of the convenience or service fees.

5.3. The spending unit is responsible for all discount and other fees and amounts assessed or charged for providing the selected methods of receiving payment.

5.4. The spending unit shall not store charge, credit, or debit card or electronic payment account numbers. The only authorized use of a charge, credit, or debit card or electronic payment is to process an authorized transaction. At most, a spending unit may have non-persistent cookies to ensure confidential information is not stored.

5.5. The spending unit shall deposit all convenience fees and service fees it receives in an account in the State Treasury. The spending unit shall expend the convenience fees or service fees received to defray the costs of providing internet services, to pay charge, credit, or debit card fees and to accept electronic payments from customers.

5.6. The spending unit shall reconcile receipts with the amounts reported.

5.7. The spending unit shall comply with all regulations, certifications, and all other matters required by the card industry to accept charge, credit, or debit cards.

5.8. For other means of charge, credit, or debit card transactions, including, without limitation, POS terminal and other devices, the spending unit shall maintain:

5.8.1. Appropriate security controls and security updates and

5.8.2. Current equipment.

W. Va. Code R. § 112-12-6 Treasurer’s Duties

6.1. The Treasurer shall:

6.1.1. Provide the training and assistance needed for a spending unit to accept payments for electronic commerce;

6.1.2. Provide a list of the type of approved methods to accept payment for electronic commerce and make the methods available for use by spending units;

6.1.3. Obtain merchant account numbers for spending units authorized to collect payments for electronic commerce; and

6.1.4. Test the acceptance process prior to implementing the acceptance of payments.

6.2. The Treasurer may audit the spending unit’s web site as needed.

6.3. The Treasurer may assess or require the assessment of the system security of the spending unit at any time.

Series 13 Procedures for Providing Services to Political Subdivisions

W. Va. Code R. § 112-13-1 General

Scope. -- This rule establishes the procedures for the State Treasurer’s Office to provide services to political subdivisions.

Authority. – W. Va. Code §12-3A-6.

Filing Date. – April 7, 2022 Effective Date. – April 7, 2022 Sunset Provision. – This rule shall terminate and have no further force or effect on August 1, 2027.

W. Va. Code R. § 112-13-2 Definitions

2.1. “ACH” means automated clearinghouse, a national EFT network which enables participating Financial Institutions to distribute electronic credit and debit entries to financial institution accounts and to settle the entries.

2.2. “Card Issuer” means a financial institution or other business issuing a charge, credit, or debit card.

2.3. “Charge card” means a card (usually plastic) issued for the purpose of obtaining money, property, or services on credit, with the full balance due at the end of each statement period.

2.4. “Convenience fee” means a fixed rate charge assessed to a charge, credit, or debit card or electronic payment to help defray the cost of processing a transaction.

2.5. “Credit card” means a card issued for the purpose of obtaining money, property, or services on credit with the full balance or minimum payments due at the end of each statement period. Interest is assessed on the unpaid balance.

2.6. “Customer” means any person or entity purchasing from a political subdivision.

2.7. “Debit card” means a card issued for the purpose of obtaining money, property, or services with the amount charged directly to the holder’s financial institution account.

2.8. “Discount fee” means the charges assessed to the merchant on the total sale by charge, credit, or debit card by a card issuer for accepting its card.

2.9. “Electronic Commerce” means the processing of transactions by electronic techniques, including, but not limited to, the telephone, IVR, POS terminal, internet, electronic payment, virtual terminal, and online transaction processing.

2.10. “EFT” means electronic funds transfer.

2.11. “Electronic payment” means an EFT, including, but not limited to, payment by ACH, ACH based electronic check, wire transfer, and online transaction processing.

2.12. “Financial institution” means a state or national bank or a state or federal savings and loan association.

2.13. “Internet” means the computer-based global information system linking computer networks all over the world by the use of internet protocol suite (TCP/IP).

2.14. “IVR” means a telephone interactive voice response system.

2.15. “Lockbox services” means the process by which payments and remittance forms are mailed to a post office box, retrieved, and processed, and by which the moneys are then deposited into a financial institution account.

2.16. “Merchant” means any political subdivision accepting payments by charge, credit, or debit cards.

2.17. “Political subdivision” means a county, municipality, board of education, RESA, corporation, or instrumentality of one or more counties or municipalities, and any other government organization.

2.18. “Point of sale terminal” or “POS terminal” means a device used for the primary purposes of transferring moneys to or from a financial institution account or segregating moneys in accounts within a financial institution, or both, for transactions, including, without limitation, devices used to implement and facilitate check guarantee and check authorization.

2.19. “RESA” means a West Virginia regional education service agency authorized in W. Va. Code §18-2-5b.

2.20. “Service Fee” means a fixed or variable rate charge assessed to a charge, credit, or debit card or electronic payment to help defray the cost of processing a transaction.

2.21. “Services” include, without limitation, charge, credit, and debit card approval and clearing; EFT; internet ACH debit; lockbox services; POS activity; ACH batch processing; website development; website hosting; database management; remote data capture; and consulting.

2.22. “STO” means the West Virginia State Treasurer’s Office.

2.23. “Transaction” means one purchase or payment.

2.24. “Treasurer” means the West Virginia State Treasurer or his or her designee from the Treasurer’s office.

2.25. “Virtual Terminal” means a web-browser based access to an acquirer, processor, or third-party service provider website to authorize payment card transactions where the merchant manually enters payment card data via a securely connected web browser. Unlike physical terminals, virtual terminals do not read data directly from a payment card.

2.26. “Wire transfer” means a type of EFT in which a bank to bank transaction occurs in real time.

W. Va. Code R. § 112-13-3 Political Subdivisions Using Treasurer’s Services

3.1. Political subdivisions may request to use the Services offered by or agreements made available by the Treasurer.

3.2. A political subdivision shall complete the application and any documents provided by the Treasurer.

3.3. An authorized signatory of the political subdivision shall sign the agreement, application, and any other documents required by the Treasurer.

3.4. The Treasurer shall review each submitted request and application.

3.5. If a request or application is not complete or timely, or if the Treasurer is not able to provide the requested services, the Treasurer may reject the request or application.

3.6. The Treasurer shall provide an explanation of the reasons for rejection of a request or application.

3.7. If the Treasurer determines alternative services to the services requested by the political subdivision may be better suited to the activity, the Treasurer shall inform the political subdivision of the alternative services. The Treasurer shall provide only the services selected by the political subdivision.

W. Va. Code R. § 112-13-4 Duties of Political Subdivisions

4.1. Political subdivisions shall acquire any goods or services necessary for the Treasurer to provide services.

4.2. For Internet transactions, the political subdivision website shall contain information required by the Treasurer.

4.3. Political subdivisions using the services of the Treasurer shall agree to maintain security and confidentiality standards that at a minimum comply with standards established by the Treasurer.

4.4. Political subdivisions are responsible for all discount and other fees and amounts assessed or charged in connection with the services.

4.5. Each political subdivision shall establish procedures to reconcile transactions processed with the amounts the Treasurer deposits into the account designated by the political subdivision.

4.6. Political subdivisions using the services of the Treasurer shall comply with all regulations, certifications, and other matters required with the acceptance of charge, credit, or debit cards.

W. Va. Code R. § 112-13-5 Treasurer’s Duties

5.1. The Treasurer shall:

5.1.1. Determine which, if any, of the services it may provide;

5.1.2. Determine the documents and the terms and conditions of any agreement a political subdivision shall sign;

5.1.3. Provide the training and assistance needed for a political subdivision to use the services;

5.1.4. Obtain merchant account numbers for political subdivisions authorized to use the services;

5.1.5. Test the acceptance process prior to implementing the services; and

5.1.6. Transfer by ACH all the moneys approved for a political subdivision into a financial institution account or an investment account designated by the political subdivision.

5.2. The Treasurer may, at any time, assess or require the assessment of the system security of the political subdivision and how confidential information is managed.

W. Va. Code R. § 112-13-6 Convenience Fees or Service Fees

6.1. A political subdivision using the services of the Treasurer may require customers using its website to pay a convenience fee or service fee, unless the fee is prohibited by law.

6.2. The Treasurer shall set the amount of the convenience fees and service fees authorized.

6.3. The use of convenience fees or service fees shall follow the merchant rules or regulations established by card brands.

W. Va. Code R. § 112-13-7 Political Subdivision Financial Electronic Commerce Requirement and Exemption Criteria

7.1. On or before March 1, 2023, every political subdivision must offer a system, with an online presence for acceptance of payments through the STO, in accordance with specifications above or through an outside entity.

7.2. A political subdivision may seek an exemption from the requirement to offer the system described in section 7.1. Criteria for granting an exemption is established according to Treasurer’s Office internal procedures and the determination of whether to grant an exemption will be based on the information a political subdivision includes in an exemption request.

7.3. To request an exemption, a political subdivision must submit a written exemption request to the Treasurer. The following information must be included in an exemption request:

7.3.1. The types and annual totals of state revenue collected by the political subdivision;

7.3.2. The types and annual totals of any other revenue collected by the political subdivision; and

7.3.3. Information regarding the political subdivision’s business operations, as requested by the STO.

7.4. Upon receipt of the exemption request, the Treasurer will approve or deny the exemption request in accordance with internal metrics, policies, and procedures. The Treasurer has the exclusive authority to grant or deny an exemption.

7.4.1. A political subdivision shall immediately report any significant change in the information included in an approved exemption request to the Treasurer.

7.4.2. The STO may reevaluate an exemption request or withdraw an exemption based on a report received pursuant to subsection 7.4.1.

Series 14 Travel Rules

W. Va. Code R. § 112-14-1 General

1.1. Scope. – This administrative rule governs travel by the State Treasurer’s Office (“STO”) officers, board members, and employees.

1.2. Authority. – West Virginia Code §12-3-11.

1.3. Filing Date. – October 30, 2025

1.4. Effective Date. – December 1, 2025

W. Va. Code R. § 112-14-2 General Information

2.1. The WVSTO has an “accountable plan” for reimbursement of travel expenses and will only reimburse for actual expenses or in an amount deemed substantiated.

2.2. Travel expenses will be reimbursed for all legitimate and reasonable expenses considered necessary for the proper conduct of WVSTO business in accordance with this rule.

2.3. An employee is in travel status when he or she is traveling on behalf of the WVSTO.

2.4. Reimbursement of travel expenses incurred by consultants, contractors and non-employees will be as specified in an agreement with the WVSTO. The WVSTO prefers travel expenses of consultants, contractors and non-employees to be included in the fees specified in the agreement.

2.5. Prior approval of the State Treasurer or Assistant Treasurer is required for the following:

2.5.1. Out-of-state travel;

2.5.2. Non-WVSTO conferences;

2.5.3. When personal travel is combined with business travel; and

2.5.4. Travel funded by a source other than the WVSTO (such travel must comply with the West Virginia Code and West Virginia Ethics Commission rules, guidelines and opinions).

2.6. When applicable, travelers are encouraged to use state contract travel service providers for air travel, rental vehicles and lodging.

2.7. Certain fees and expenses may be direct billed to or paid in advance by the WVSTO if arrangements have been made with the WVSTO Administration Division.

W. Va. Code R. § 112-14-3 Reimbursement

3.1. Travel reimbursements must be submitted by the employee in wvOASIS within five (5) calendar days of the travel return date. Delays in submitting travel reimbursements require approval. If the employee fails to submit a travel reimbursement within fifteen (15) calendar days, the Assistant Treasurer of the Program must approve; if the travel reimbursement is thirty (30) calendar days late the Deputy State Treasurer must approve.

3.2. The WVSTO will not reimburse an employee for any expense paid by another source for the same expense.

3.3. Travel reimbursements are limited to the amounts authorized by the U.S. General Services Administration ("GSA").

W. Va. Code R. § 112-14-4 Meals

4.1. Meal expenses are reimbursable only for travel requiring overnight lodging.

4.2. Meal reimbursement is allowed when lodging is “gratis” or provided at no charge. A conference agenda must be attached to the travel reimbursement; only meals not provided by the conference will be reimbursed. The WVSTO, at its discretion, may allow the employee to claim the full GSA meals and incidentals allowance if an employee is unable to consume the furnished meal(s) because of medical requirements or religious beliefs.

W. Va. Code R. § 112-14-5 Transportation

5.1 Reimbursement will be made for the actual costs incurred for Uber, Lyft, taxi, bus, train, shuttle service, tolls, and parking. A vehicle rental should be used as a last resort and will only be reimbursed if approved by the Treasurer or Deputy State Treasurer/Chief of Staff.

5.2. Commercial Airlines

5.2.1. Allowable reimbursement for commercial airline travel must be booked through the Statewide contract for Travel Management Vendor and shall include the actual cost for the least expensive logical fare via the most direct route, or a reasonable alternative route if it results in a lower fare. The WVSTO will not cover the cost of excess or overweight bags unless approved by the State Treasurer or Deputy State Treasurer prior to travel.

5.2.2. All airline ticket credits or refunds must be returned to the WVSTO through the State’s Travel Management Vendor.

5.2.3. Travelers may not specify a particular airline to accumulate mileage or promotional plans such as frequent flyer programs if it results in a higher fare.

5.3. Ground Transportation

5.3.1. Travelers may use a privately-owned, state-owned, or commercial rental vehicle for ground transportation. The traveler must possess a valid operator’s license to drive a vehicle while traveling on behalf of the WVSTO.

5.3.2. The traveler must complete all WVSTO Fleet training requirements and have current documentation on file with the WVSTO Administration Division prior to driving on behalf of the WVSTO.

5.3.3. The traveler is responsible for following all applicable laws and requirements while driving and for any fines and/or penalties resulting from citations, charges or warrants attributable to the operator. Such fines and/or penalties are not reimbursable expenses.

5.3.4. Parking and tolls are reimbursable with the following caveats:

5.3.4.a. Valet changes will only be reimbursed where self-parking is not applicable or where self-parking costs more than valet parking.

5.3.4.b. Travelers are not permitted to claim toll costs unless those costs are actually incurred and paid at the personal expense of the traveler.

5.3.4.c. If the traveler’s vehicle contains an active E-Z Pass transponder with unlimited usage for a period of time, reimbursement for tolls that accept the E-Z Pass transponder is prohibited.

5.4. Privately-Owned Vehicles

5.4.1. Mileage allowance for privately owned vehicles engaged in State business will be based on the GSA rate in effect at the time of the travel. The rate is intended to cover all operating costs such as fuel, maintenance, insurance, etc., and no additional reimbursement will be made for such expenses.

5.4.2. The mileage allowance will be based on the shortest route to and from the destination.

5.4.3. When a traveler requests to drive his or her personal vehicle rather than fly for business, reimbursement shall be based on the least expensive logical commercial airline cost plus local transportation to and from the airport, baggage, and parking (where required). A cost comparison worksheet must be attached to the out-of-state travel authorization request. It is the traveler’s responsibility to request a flight matrix from the State’s Travel Management Vendor to be included in this worksheet comparison.

5.4.4. The owner’s personal insurance will be the primary for liability insurance coverage. The owner should contact their automobile insurer to discuss coverage available/required when using their own vehicle on State business.

5.4.5. The State’s insurer, Board of Risk & Insurance Management (BRIM), will provide excess liability coverage for additional protection to the employee using their personal vehicle in the course of State business. BRIM’s coverage will only be available after the vehicle owner’s coverage is exhausted.

5.4.6. BRIM does not provide coverage that will pay for damage to a personal automobile, regardless of the cause, or provide medical coverage. Further, BRIM will not pay the owner’s physical damage deductible.

5.5. State Owned Vehicles

5.5.1. State owned vehicles available to the WVSTO may be used.

5.5.2. Travelers must adhere to the Fleet Management Division’s Vehicle Use Policy when utilizing a State-owned vehicle.

5.6. Commercial Rental Vehicles

5.6.1. Reimbursement for commercial rental vehicles will be made at actual cost for the daily rental charge for a mid-size or smaller vehicle, plus mileage fees and fuel costs.

5.6.2 A commercial rental vehicle should only be used when a temporary need arises, a state vehicle is unavailable, and the cost will be less than the reimbursement associated with a privately-owned vehicle. Permission must be granted from the Treasurer or Deputy State Treasurer/Chief of Staff.

5.7. Other Ground Transportation

5.7.1. Transportation by bus, train, shuttle or taxi shall be at the least expensive logical fare via the most direct route, or other reasonable route that results in a lower fare.

5.7.2. Travelers are encouraged to use courtesy transportation provided by a hotel/motel or other service facility.

W. Va. Code R. § 112-14-6 Lodging

6.1. Lodging for an employee traveling on State business is reimbursable where the distance is more than fifty (50) miles from his or her official work location or home, whichever is the shorter distance, and an overnight stay is required.

6.2. Reimbursement is limited to actual hotel charges for the least expensive single room rate available including all applicable taxes and surcharges. All other ancillary room charges are not reimbursable.

W. Va. Code R. § 112-14-7 Registration Fees

7.1. Registration fees for meetings, conferences, seminars, and/or workshops are to be paid by the WVSTO Administration Division, preferably utilizing the State P-Card as the payment method.

W. Va. Code R. § 112-14-8 Other Expenses

8.1. Other business-related expenses incurred while traveling on behalf of the WVSTO and not personal to the traveler may be reimbursed. This includes, but is not limited to, baggage, faxes, and related fees and expenses.

8.2. Fees and expenses personal to the traveler are not reimbursable, including without limitation, laundry, physical fitness areas, spas, travel or life insurance, entertainment, clothing, and similar fees and expenses.

8.3. Fees and expenses personal to the traveler are not reimbursable, including, without limitation, laundry, physical fitness areas, spas, travel or life insurance, entertainment, clothing and similar fees and expenses. When a non-employee accompanies WVSTO employees on official business which involves overnight stays, the WVSTO shall in no way be responsible or liable for any expenses and actions or inaction of the non-employee, whatsoever.

W. Va. Code R. § 112-14-9 Restrictions, Exceptions or Waivers

9.1. The State Treasurer reserves the right to restrict travel or to grant an exception or waiver to any provision of this rule, and to revoke, suspend, rescind or amend this rule at any time.

Series 15 West Virginia College & Jumpstart Savings Programs Board of Trustees Bylaws

W. Va. Code R. § 112-15-1 General

1.1. Scope. – This rule governs the operations, meetings, records and officers of the West Virginia College and Jumpstart Savings Programs Board of Trustees and its committees.

1.2 Authority. – W. Va. Code §18-30-5.

1.3. Filing Date. – August 26, 2022

1.4. Effective Date. – September 26, 2022

W. Va. Code R. § 112-15-2 Definitions

For purposes of this rule, unless a different meaning is clearly required by the context:

2.1. “Acts” means the West Virginia College Tuition and Savings Program Act in W. Va. Code §18-30-1 et seq and the West Virginia Jumpstart Savings Act in W. Va. Code §18-30A-1 et seq.

2.2. “Board” or “Board of Trustees” means the West Virginia College and Jumpstart Savings Programs Board of Trustees.

2.3. “Treasurer” means the West Virginia State Treasurer, or his or her designee.

W. Va. Code R. § 112-15-3 Offices

3.1. The principal office of the Board shall be located at the State Capitol in the City of Charleston, County of Kanawha, State of West Virginia. The Board may have such other office or offices, and transact business, either within or without the State of West Virginia, as the Board may designate or as the business of the Board may require from time to time.

W. Va. Code R. § 112-15-4 Trustees

4.1. Eleven persons, who must all be state residents, constitute the Board: the State Treasurer, or his or her designee, who is chairperson and presiding officer of the Board ; the State Superintendent of Schools, or his or her designee; one representative appointed by the Higher Education Policy Commission, who may or may not be a member of the Higher Education Policy Commission;, one representative of the Council for Community and Technical College Education, who may or may not be a member of the Council for Community and Technical College Education; and seven other state residents appointed by the Governor with the advice and consent of the West Virginia Senate. Of the seven persons appointed, three persons shall be private citizens not employed by, or an officer of, the state or any state political subdivision with knowledge, skill, and experience in a financial field, with reasonable efforts to appoint one such citizen who holds a designation of Chartered Financial Analyst, offered by the CFA Institute; two persons with knowledge, skill, and experience in trade occupations or businesses with one person representing a labor organization representing tradespersons in this state and one person representing a business or entity offering trade or skilled labor apprenticeships in this state; and two persons shall represent the interests of private institutions of higher education in West Virginia appointed from one or more nominees of the West Virginia Independent Colleges and Universities.

4.2. The Board shall have such powers and duties as provided for by law, including, without limitation, the Acts.

4.3. The term of an appointed Trustee shall be for five years, or until his or her death, disability, resignation, removal or the appointment of a successor. A Trustee may be reappointed. A Trustee appointed by the Governor to fill a vacancy shall be a person representing the same interests and shall serve for the balance of the unexpired term.

4.4. Resignations and Vacancies

4.4.1. Resignations from the Board shall be in writing, sent to the Governor, with a copy sent to the Chairman. Neither the Governor nor the Board is required to accept or to act on a resignation for it to be effective.

4.4.2. Appointments to fill vacancies existing on the Board, including without limitation a vacancy resulting from the death, disability, resignation or removal of a Trustee, shall be for the unexpired term.

4.5. Compensation – Each Trustee may be paid his expenses in the conduct of his or her official duties from the College and Jumpstart Savings Administrative Account at the same rate as paid employees of the State Treasurer’s Office.

W. Va. Code R. § 112-15-5 Committees

5.1. The Board may establish standing and special Committees as it considers necessary to carry out its responsibilities. The Chairman may establish one or more special Committees as he or she considers appropriate. The Chairman shall appoint Committee members and may appoint Trustees and other persons to serve on Committees. Each standing Committee shall report at each Board meeting. Committees established by the Board shall continue in existence until dissolved by action of the Board.

5.2. The designation and appointment of a committee and the delegation thereto of authorities shall not operate to relieve the Board or any individual Trustee of any responsibility imposed upon it or him by law.

W. Va. Code R. § 112-15-6 Board and Committee Meetings

6.1. All Board and Committee meetings, and all notices required, shall comply with the provisions of the West Virginia Open Governmental Proceedings Act, W. Va. Code §6-9A-1-et seq.

6.2. Quarterly meetings of the Board shall be held at such time and place as called by the Chairman or as determined by the Board.

6.3. The Board shall hold an annual meeting each year, which meeting shall be considered a quarterly meeting.

6.4. Committee meetings shall be held at such time and place as called by the Chairman, the Committee Chairman or any two members of the Committee.

6.5. Special and Emergency Meetings

6.5.1. A special meeting is a meeting called for a special purpose and is other than a regular or emergency meeting. An emergency meeting is called to address an unexpected event which requires immediate attention because it poses an imminent threat to public health or safety, an imminent threat of damage to public or private property, an imminent material financial loss or other imminent substantial harm to a public agency, its employees or the members of the public which it serves.

6.5.2. Special and emergency Board meetings may be called by or at the request of the Chairman or by any two Trustees. Special and emergency Committee meetings may be called by or at the request of the Chairman or by any two members of the Committee. The purpose of an emergency meeting must be stated at the meeting and in the minutes.

6.6. Filing Notices with Secretary of State –

6.6.1. Notices of regular and special Board and Committee meetings shall be filed electronically on the website of the Secretary of State at least five business days prior to the meeting date.

6.6.2. Notices of emergency Board and Committee meetings shall be filed electronically on the website of the Secretary of State as soon as practicable prior to the meeting date.

6.6.3. All notices must state the date, time, place and purpose of the meeting. Notices of emergency meetings must state the date, time, place and purpose of the meeting, as well as the facts and circumstances of the emergency.

6.7. Notice to Trustees and Committee Members –

6.7.1. Notice shall be given to Trustees and Committee Members at least ten days prior to a regular meeting, at least five days prior to a special meeting, and as soon as practicable prior to an emergency meeting. The notice shall fix the date, time, place and purpose of the meeting. The address last given by a Trustee or Committee member shall be the address used.

6.7.2. Notice of any regular, special or emergency meeting shall be considered received when sent by written notice delivered personally, or by messenger, telecopier, facsimile, telegraph, e-mail or other means of electronic communication by the Secretary.

6.7.3. If mailed, such notice shall be deemed to be given and delivered when deposited in the United States Mail, with postage thereon prepaid, or when deposited with an overnight mail service, with the cost borne by the Board.

6.8. Unless otherwise provided by law, whenever any notice is required to be given to a Trustee or Committee member under the provisions of these Bylaws, the provisions of the Acts or any other applicable law, a waiver thereof in writing, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice and attendance of the person at a meeting shall constitute a waiver of notice, unless the person attends for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened.

6.9. Agenda –

6.9.1. The Chairman shall prepare the agenda for each Board meeting; a Committee Chairman shall prepare the agenda for each Committee meeting.

6.9.2. An agenda shall list matters in the order they are to be considered. During a meeting, the Board or Committee may consider matters out of order.

6.9.3. An agenda for an annual or regular meeting shall be available upon request to the public and posted on the Board website at least three business days prior to a regular or special meeting and as soon as practicable prior to an emergency meeting.

6.9.4. An agenda shall state the purpose of the meeting and any matter requiring the Board to take official action.

6.9.5. Items on an agenda must be stated with sufficient specificity to put the public on notice of the nature of the matter being discussed.

6.9.6. An agenda may be amended up to two business days before the meeting. Amended agendas must be posted in the same manner as an original agenda.

6.9.7. Agendas may be amended at a meeting only if a true emergency arises. To add an emergency matter to an agenda, the facts and circumstances constituting the emergency must be explained on the record at the meeting.

6.10. Notwithstanding anything herein contained to the contrary, one, more or all Trustees or Committee members may participate in a meeting of the Board or a Committee by means of electronic mail, conference telephone, video conference or other electronic communications equipment. A Trustee or Committee member participating in a meeting in accordance with this section is deemed to be present in person at the meeting and his vote shall have like effect and validity as though he or she were present.

6.11. A majority of the Trustees serving as of the meeting day shall constitute a quorum for the transaction of business at any meeting of the Board, and a majority of the members of a Committee serving as of the meeting day shall constitute a quorum for the transaction of business at a meeting of a Committee.

6.12. The Board or a Committee may go into executive session for the purposes specified in W. Va. Code §6-9A-4 upon a majority vote on a motion in which the specific purposes are stated. The only matters that may be discussed in executive session are those specified in the motion. No actions may be taken during executive session. Minutes will not be taken.

6.13. When it decides to continue a meeting, a majority of the Board shall vote to continue the meeting to a specific date, time and place. No further notice is required for continued meetings in accordance with this Section.

W. Va. Code R. § 112-15-7 Officers

7.1. The officers of the Board shall be the Chairman and Secretary. The Board may elect or appoint any other officers as it considers necessary.

7.2. One person may hold more than one office, except that the Chairman and Secretary shall not be the same person. No officer shall execute, acknowledge or verify any instrument in more than one capacity, if such instrument is required by law or the Bylaws to be executed, acknowledged, verified or countersigned by two (2) or more officers.

7.3. Chairman –

7.3.1. The Chairman shall be the principal executive officer of the Board and, subject to the control of the Board, shall in general supervise and control the business, operations, transactions and other matters of the Board. He or she shall, when present, preside at all meetings of the Board, and, in general, perform all duties incident to the office of the Chairman.

7.3.2. As Chairman, his or her duties include, but are not limited to, negotiating and signing any contract or other document or instrument which the Board has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board to another person, or shall be required by law to be otherwise signed or executed; providing personnel from the State Treasurer’s Office to act as staff for the Board and taking all necessary actions in connection with personnel related matters; obtaining all necessary goods and services needed for operation of the Program; representing the Board; and performing such duties as may be required by his position or as prescribed by the Board.

7.4. The Chairman shall appoint a Secretary for the Board, who may be a Trustee or an employee of the State Treasurer’s Office.

7.5. The Secretary shall:

7.5.1. Prepare the minutes of each Board and Committee meeting and make them available within a reasonable time to the public and the media;

7.5.2. Ensure the minutes reflect the purpose, date, time and place of the meeting and the name of each member who was present and who was absent;

7.5.3. Keep the minutes of the proceedings of the Board in a secure and permanent paper or electronic format, along with copies of all documents distributed at the meetings; and provide copies of the minutes to the Trustees;

7.5.4. See that all notices are duly given in accordance with the provisions of these Bylaws or as required by law;

7.5.5. Be custodian of the books, records and other property of the Board;

7.5.6. Keep all records and files of the Board open to the inspection of each and every Trustee and the public in accordance with the West Virginia Freedom of Information Act;

7.5.7. Attest to the books, records, proceedings, documents and resolutions of the Board;

7.5.8. Certify, when necessary and when authorized, the books, records, proceedings, documents and resolutions of the Board;

7.5.9. Attest to the signature of any officer of the Board; and

7.5.10. In general, perform all duties incident to the office of Secretary and such other duties as from time to time may be assigned to him or her by the Board or by the Chairman.

7.6. Any officer or agent may be removed by the Board, with or without cause. Election or appointment of an officer or agent shall not create contract rights.

7.7. A vacancy in any office may be filled by the Board at a regular or special meeting for the unexpired portion of the term.

W. Va. Code R. § 112-15-8 Designees and Indemnification

8.1. Any duty authorized, provided and/or required to be performed by any Trustee or officer of this Board may be performed by his duly authorized designee.

8.2. To the extent permitted by law, each current and former Trustee, officer, designee, Committee member and State Treasurer’s Office employee performing services on behalf of the Board, his heirs and personal representatives, shall be indemnified by this Board against costs and expenses (including judgments, fines, taxes, penalties and interest) at any time reasonably incurred by him arising out of or in connection with any claim, action, suit or proceeding, civil or criminal, administrative or investigative, against him or to which he may be made a party by reason of his being or having been a Trustee, officer, designee, Committee member or State Treasurer’s Office employee performing services on behalf of the Board, except in relation to matters as to which he shall be adjudged in such action, suit or proceeding to be liable for gross negligence or willful misconduct in the performance of a duty to the Board. If in the judgment of the Board, a settlement of any claim, action, suit or proceeding so arising be deemed in the best interest of the Board, any such Trustee, officer, designee, Committee member or State Treasurer’s Office employee performing services on behalf of the Board shall be reimbursed for any amounts paid by him in effecting such settlement and reasonable expenses incurred in connection therewith. If payment of any costs and expenses is advanced pursuant to this provision prior to adjudication or settlement, such payments shall be repaid to the Board in the event it shall ultimately be determined that such Trustee, officer, designee, Committee member or State Treasurer’s Office employee performing services on behalf of the Board is not entitled to be indemnified by the Board pursuant to this provision or pursuant to a duly adopted resolution of the Board. The right of indemnification set forth herein shall be in addition to any and all other rights to which any Trustee, officer, designee, Committee member or State Treasurer’s Office employee performing services on behalf of the Board may be entitled as a matter of law or pursuant to a duly adopted resolution of the Board, provided that the Board shall not indemnify any person or persons who shall be adjudged liable for gross negligence or willful misconduct in the performance of a duty to the Board.

W. Va. Code R. § 112-15-9 Contracts and Accounts

9.1. Any member of the Board is authorized to receive any moneys due and payable to the Board from any source whatsoever.

9.2. The Board may authorize the Chairman or its officers or agents to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Board. A contract, agreement or purchase required in the normal course of business in the total amount of $25,000.00 or less does not require Board approval.

9.3. No contract or other transaction between the Board and one or more of its Trustees, agents or any other corporation, firm, association or entity in which one or more of its Trustees are Trustees or officers or are financially interested, shall be authorized by the Board unless such contract or transaction has been approved in writing by the West Virginia Ethics Commission.

W. Va. Code R. § 112-15-10 Fiscal Year and Accounting Period

10.1. The fiscal year and accounting period of the Board shall begin July 1 and end June 30 each year.

W. Va. Code R. § 112-15-11 Appeals Process

11.1. In the event that an applicant, account owner, or beneficiary of a program administered by the Board or another individual wishes to appeal a decision made by the Board, the Chair shall appoint a three-member appeals subcommittee to be the arbiter of all appeals brought before the Board.

11.2. The individual shall file any appeal with the Board within sixty (60) calendar days of the contested decision of the Board.

11.3. The Board shall notify the individual filing the appeal of any determination made by the appeals subcommittee within thirty (30) calendar days of the filing date of the appeal.

W. Va. Code R. § 112-15-12 Parliamentary Authority

12.1. Robert’s Rules of Order shall govern the parliamentary procedures of Board and Committee meetings.

W. Va. Code R. § 112-15-13 Amendments and Suspension

13.1. These Bylaws may be altered, amended or repealed and new Bylaws may be adopted by the Board at any regular or special meeting of the Board.

13.2. A unanimous vote of all members present at a Board meeting in which a quorum is present may suspend any provision of these Bylaws.

Series 17 Exempt Purchasing

W. Va. Code R. § 112-17 Exempt Purchasing

TITLE 112

PROCEDURAL RULE

STATE TREASURER’S OFFICE

SERIES 17

EXEMPT PURCHASING §112‑17‑1. General.

1.1. Scope. ‑‑ This rule contains the procedures of the West Virginia State Treasurer’s Office for procurements exempt from W. Va. Code §5A‑3‑1 et seq. or the requirements of the West Virginia Department of Administration, Purchasing Division. This rule is filed in compliance with W. Va. Code §29A-3-1 et seq., W.Va. Code §5A‑1‑12, which requires state agencies exempt from some or all of the requirements of W.Va. Code §5A‑3‑1 et seq. to adopt internal purchasing procedures.

1.2. Authority. ‑‑ W. Va. Code §5A‑1‑12, W. Va. Code §5‑10B‑3, W.Va. Code §12‑1‑7, W. Va. Code §12‑3A‑3, W. Va. Code §12‑5‑7, W. Va. Code §12‑6C‑5, W. Va. Code §18‑30‑5, W. Va. Code §18‑30A‑6, and W. Va. Code §18‑31‑4.

1.3. Filing Date. – December 2, 2025

1.4. Effective Date. – January 1, 2026 §112‑17‑2. Definitions.

2.1. “Addendum” means a written modification to specifications or other procurement document issued by the STO.

2.2. “Award” means the written determination of the selection of a vendor to perform under a contract issued after encumbrance in wvOASIS and final STO approval.

2.3. “Best Value Procurement” means a procurement method used in awarding a contract based on evaluating and comparing all established quality criteria and cost is not the sole determining factor in the award. This includes RFPs, RFIs and EOIs.

2.4. “Bid” means an offer by a vendor in response to a procurement document to provide commodities or services in accordance with the specifications of the STO issued procurement document and includes a proposal to an RFP.

2.5. “Blackout Period” means a period during which all communication must be routed through STO Purchasing once a requisition has been submitted up to a final award.

2.6. “Bond” means a surety or other security that guarantees payment or performance under a contract, including a bid bond, labor and material payment bond, maintenance bond and performance bond.

2.7. “Change Order” means a written modification or amendment to an STO issued contract in the manner provided in the contract or upon the mutual consent of the STO and the vendor.

2.8. “Commodities” means goods, supplies, materials, equipment or any other tangible item.

2.9. “Competitive Negotiation” means the process determined to be in the best interests of the STO and by which the STO negotiates with the highest scoring vendors believed to be competent, responsible and responsive in a procurement and for which cost is considered but not determinative in making an award.

2.10. “Contract” means the binding agreement entered into between the STO and a vendor to provide the commodities or services requested in the procurement and includes a purchase order.

2.11. “Cooperative Procurement” means use of a contract awarded by another entity, including but not limited to, another state of West Virginia agency, board or commission or another organization regularly involved in the procurement of commodities or services for which the process of procurement and award were determined by the STO to be in accordance with reasonable procurement standards.

2.12. “Direct Award” means the procurement method to award a contract to a vendor able to provide the commodities and services without competitive bidding when there is no known competition, and when circumstances allow.

2.13. “Emergency Procurement” means acquisition method used when time is of the essence, unforeseen causes arise that include a threat to public health, welfare, safety, circumstances warrant immediate action to stabilize the situation or safeguarding the state’s assets, not because of poor planning, neglect or lack of organization.

2.14. “Expression of Interest” or “EOI” means a procurement method that seeks vendors to provide information and express an interest in a procurement, generally for architectural and engineering services.

2.15. “FOIA” means Freedom of Information Act found in West Virginia Code §29B‑1‑1 et seq.

2.16. “Life Cycle Costing” means a procurement method that takes into consideration the cost of the commodity and service being acquired over its expected life or usage and for which cost is considered but is not a determining factor.

2.17. “Master Agreement” means a contract with specified terms and conditions except quantity, which is also known as an open‑end contract.

2.18. “Non‑disclosure Agreement” means a contract between two or more parties to prohibit the release of information defined in the agreement as confidential, sensitive or private in a manner that violates the non‑disclosure agreement.

2.19. “Procurement” means the process of purchasing, renting, leasing or otherwise acquiring, receiving and maintaining commodities and services, including receiving, inspection, storekeeping, and contract administration.

2.20. “Procurement Document” means an RFQ, RFP, RFI, EOI and other document and all attachments related to the bidding or other means of acquiring commodities and services.

2.21. “Protest” means a formal written statement from a prospective or an actual vendor that states the vendor’s dissent or disagreement as to a procurement document or process pertaining to an STO procurement.

2.22. “Rapid Award Contract” means a procurement method available to the STO’s investment and savings programs for purchases that are exempt from requirements of W. Va. Code §5A‑3‑1 et seq., upon approval of the Legal Division and the Treasurer or Assistant Treasurer and when time is of the essence.

2.23. “Request for Information” or “RFI” means a document that seeks information to aid in preparing specifications.

2.24. “Request for Proposal” or “RFP” means a document issued by the STO to obtain services and/or commodities and services for which cost is not the sole determining factor for award.

2.25. “Request for Quotation” or “RFQ” means a document issued by the STO to obtain a quotation or bid.

2.26. “Requisition” means a written or electronic request for the purchase of commodities and services.

2.27. “Responsible Vendor” means a vendor believed to have the capability to perform a Contract and the integrity and reliability to assure good faith performance.

2.28. “Responsive Vendor” means a vendor submitting a bid that conforms in all material respects to the requirements and specifications of a procurement document.

2.29. “Services” means intangible items, that include labor, time, expertise, maintenance, software and service agreements.

2.30. “Specification” means a clear and accurate description of the physical, functional or performance characteristics or nature of a commodity being acquired, and may include requirements for inspection, testing and performance.

2.31. “State” means the State of West Virginia

2.32. “STO” means the West Virginia State Treasurer, the State Treasurer’s Office, or the State Treasurer’s designee.

2.33. “STO Purchasing” means the division within the STO with personnel who manage the functionality of STO procurement.

2.34. “Total Ownership or Operational Cost” means a procurement method that takes into consideration the costs of designing, bidding, implementing, operating, training, transitional costs, residual value, disposal, and processes for a commodity or service for which costs is not the determining factor in award.

2.35. “Vendor” means a person or entity considering or submitting a bid, a person or entity selected as the lowest responsible and responsible vendor in connection with a bid, or a person or entity that has been awarded the contract. §112‑17‑3. Purchasing Authority.

The following are the exemptions from the provisions of W. Va. Code §5A‑3‑1 et seq. for the STO:

3.1. Banking, Investments and Related Commodities and Services – W.Va. Code §12‑1‑7 and §12‑3A‑3.

3.1.1. W.Va. Code §12‑1‑7 provides that only the Treasurer has authority to enter into contracts with financial institutions for banking commodities and services.

3.1.2. W.Va. Code §12‑3A‑3 requires the Treasurer to competitively bid for necessary banking, investment and related commodities and services, which procurements are exempt from §5A‑3‑1 et seq.

3.2. West Virginia Board of Treasury Investments (“WVBTI”) ‑ W. Va. Code §12‑6C‑1 et seq.

3.2.1. W. Va. Code §12‑6C‑5 authorizes the WVBTI to retain and contract with legal, accounting, financial and investment managers, advisors, and consultants.

3.2.2. W. Va. Code § 12‑6C‑7(h) provides the WVBTI is exempt from the provisions of W. Va. Code §5A‑3‑1 et seq. but is subject to the purchasing policies and procedures of the STO.

3.3. Board of Trustees of the College Prepaid Tuition and Savings Program and the College Prepaid Tuition and Savings Program (“Board”) ‑ W. Va. Code §18‑30‑1 et seq.

3.3.1. W. Va. Code §18‑30‑5 requires the Board to execute contracts and other instruments for necessary goods and services, employ necessary personnel and engage the services of private consultants, actuaries, auditors, counsel, managers, trustees, and any other contractors or professionals needed, and that selection of these are not subject to the provisions of W. Va. Code §5A‑3‑1 et seq.

3.4. State of West Virginia Deferred Compensation Plan (“Plan”) ‑ W. Va. Code § 5‑10B‑1 et seq.

3.4.1. W. Va. Code §5‑10B‑1 provides that notwithstanding any provisions of W. Va. Code to the contrary, the Plan is exempt from W. Va. Code §5A‑3‑1 et. seq. for the various commodities and services listed.

3.5. Treasurer Selection of Financial Advisor ‑ W. Va. Code §12‑5 et seq.

3.5.1. W. Va. Code §12‑5‑7 provides the Treasurer may select or serve as financial advisor for all various securities and indebtedness issued, unless expressly prohibited by law. Selection of professionals shall be competitive, but bidding is not required to comply with W. Va. Code §5A‑3‑1 et. seq.

3.6. West Virginia Jumpstart Savings Program and its associated Board (“Jumpstart” or “Jumpstart Board”) – W. Va. Code §18‑30A‑1 et seq.

3.6.1. W. Va. Code §18‑30A‑6 requires the governing board of the Jumpstart Savings Program to execute contracts and other instruments for necessary goods and services, employ necessary personnel, and engage the services of private consultants, auditors, counsel, managers, trustees, and any other contractors or professionals needed for rendering professional and technical assistance and advice, and that selection of these services is not subject to the provisions of W. Va. Code §5A‑3‑1 et seq.

3.7. West Virginia Hope Scholarship Program and its associated Board (“Hope Scholarship” or “Hope Scholarship Board”) – W. Va. Code 18‑31‑1 et seq.

3.7.1. W. Va. Code §18‑31‑4 requires the Hope Scholarship Board to execute contracts and other instruments for necessary goods and services, employ necessary personnel and engage the services of private consultants, actuaries, auditors, counsel, managers, trustees, and any other contractor or professional needed for rendering professional and technical assistance and advice, and that selection of these services is not subject to the provisions of W. Va. Code §5A‑3‑1 et. seq. §112‑17‑4. General Information.

4.1. STO procurements for commodities and services are centrally processed within the STO to provide economical and efficient services at a reasonable cost, using fair and reasonable competition methods and providing equitable treatment of vendors.

4.2. Methods used to determine the appropriate commodities and services needed by the STO include best value procurement, life cycle costing, and total ownership or operational costing. The requirements or limitations in a procurement document are believed to be reasonable in consideration of STO needs and foster fair and open competition.

4.3. Documentation will be maintained for all procurements by STO Purchasing to protect the processes. The STO internal audit division will audit STO procurement processes and files every two years beginning in 2022 to cover the period of the effective date of this rule through June 30, 2022, and then every two fiscal years thereafter.

4.4. STO contracts shall comply with all applicable laws, rules and regulations. Procurement documents contain standard agency terms and conditions to aid in compliance with West Virginia law.

4.5. There is a black out period from the release of an RFQ, RFP or EOI by the STO until award or cancellation. The only contact with the STO during a blackout period is through STO Purchasing.

4.6. Vendors are provided with instructions for submitting bids and may contact STO Purchasing as needed.

4.7. Every contract issued shall contain a clause that permits the STO to cancel the contract upon 30 days written notice to the vendor without penalty.

4.8. After the bids are opened, they cannot be altered and are considered public records available for review or copying.

4.9. Use of a purchasing card for payment of commodities or services offered through the West Virginia State Auditor’s Office may be required in any procurement if use is determined appropriate.

4.10. Bid openings are open to the public and must be witnessed by two STO staff members one of whom is with STO Purchasing. STO Purchasing personnel will read aloud the names of the vendors submitting bids and record the vendor’s name and pricing, as applicable, on a bid tabulation sheet, including those solely in wvOASIS. For bids received pursuant to an RFP, STO Purchasing will confirm each original package contains a separately sealed cost proposal.

4.11. Bids received are available to the public as soon as they can be scanned or copied after the opening of a bid, unless a vendor has requested a non‑disclosure agreement which has been approved by the STO. The evaluation committee may use oral interviews or site visits to confirm the points assigned in an RFP response pursuant to a technical evaluation. After award, the entire purchasing file is available for review or copying.

4.12. The STO may trade‑in any item of equipment no longer needed to reduce the cost of a new item if it was purchased wholly from programs identified in section §112-17-3.

4.13. Negotiation may be used to finalize a contract and when needing a change order to amend or modify a current contract. Negotiation of a change in scope is permitted when circumstances dictate. A justification for a negotiated change order must be included in the procurement file.

4.14. The STO shall abide by the West Virginia Governmental Ethics Act and the associated promulgated rules and shall not make a purchase from a conflicted vendor or a vendor with a significant financial interest as prohibited under the West Virginia Governmental Ethics Act. §112‑17‑5. Purchasing Requirements.

5.1. Documentation associated with all procurements shall be maintained in files in accordance with the STO record retention policy.

5.2. All purchases of commodities and services are subject to expenditure approval.

5.3. Contracts are issued for all procurements regardless of dollar amounts to assist with tracking and ensure proper internal controls.

5.4. The vendor is responsible for submitting a correct and accurate bid to STO Purchasing by the specified bid opening time and date and location and in accordance with the procurement documents.

5.5. Prior to award of a contract, a vendor must be a registered vendor as required by the West Virginia State Purchasing Division, document any required license or insurance, and be in good standing with state and local entities, including, but not limited to, the West Virginia Secretary of State and West Virginia Workers Compensation.

5.6. A contract award is subject to the provisions of West Virginia State Code which automatically void certain contract clauses that violate State Law.

5.7. Vendors to be awarded a contract of $1 million or more or a series of related contracts for which the cumulative total exceeds $1 million shall submit to the STO a fully completed Disclosure of Interested Parties form authorized by the West Virginia Ethics Commission.

5.8. A vendor shall not commence work on any procurement without receipt of the awarded contract by STO Purchasing and any required notice to proceed. The STO will not be responsible for any work by a vendor prior to and not in accordance with the contract awarded.

5.9. All requests for commodities or services shall be submitted in a written requisition to STO Purchasing via email, written memo, or other method. All requests require the approval of the Treasurer, Assistant Treasurer, Deputy Treasurer, or Director of that STO division or other person with the appropriate signature authority.

5.10. Upon receipt, a requisition is reviewed to determine the sourcing method for the procurement.

5.10.1. Sourcing methods considered include review of inventory from stockroom; state sources (e.g., Correctional Industries, sheltered workshops, surplus property); statewide or agency master agreements; cooperative contracts; or obtaining bids if required by the procurement method levels.

5.10.2. Any STO contract usable by another state entity or a political subdivision will state the use.

5.11. Procurement method levels are as follows:

5.11.1. $5,000.00 or less – no bids required, competition encouraged when possible;

5.11.2. $5,000.01 - $20,000.00 – three verbal bids when possible, wvOASIS may also be used to solicit to streamline and expedite the acquisition.

5.11.3. $20,000.01 - $100,000.00 – solicitation must be issued in wvOASIS unless a direct award or a rapid award is appropriate.

5.11.4. Over $100,000 – formal procurement required unless a direct award or a rapid award is appropriate.

5.12. Any required vendor terms and conditions must be submitted and approved before a contract is awarded.

5.13. All procurement documents issued for a procurement shall include a specific date, time, and location for submission of bids.

5.14. Bids not submitted by the specified date and time to the specific location will be rejected and not be considered.

5.15. STO will stamp bids with the date and time of actual receipt for bids physically received. Bids received through wvOASIS are stamped by the system as are bids received through a designated email or the STO Purchasing fax communication.

5.16. Bids shall remain sealed until the specified date and time, at which time the STO will open the bids.

5.17. No bid received may be altered after opening.

5.18. A vendor submitting a bid may withdraw the bid at any time prior to bid opening.

5.19. Aggregate procurements in excess of $25,000 by the STO shall not circumvent the formal procurement requirements of §5A‑3‑1 et seq. and shall not be used with the intent to circumvent the formal requirements in this rule in any 12‑month rolling period.

5.20. Receiving reports shall be prepared and submitted in accordance with W. Va. Code §12‑3‑10f.

5.21. The STO may establish standardized commodities and require vendors to bid the standardized commodity identified or allow for a bid of a comparable product that meets or exceeds the standard established consideration.

5.22. The STO Purchasing Director reserves the right to waive minor irregularities in bids of specifications.

5.22.1. In instances where the specifications or bid requirements require documentation or other information with the bid response, and it is missing from a vendor’s bid, the STO Purchasing Director reserves the right to request those items after the bid opening and prior to a contract award pursuant to the authority to waive minor irregularities in bids or specifications. This authority does not apply to instances where state law mandates receipt with the bid.

5.23. The STO Purchasing Director reserves the right to reject the bid of any vendor as non-responsible when the Director determines that the vendor submitting the bid does not have the capability to fully perform or lacks the integrity and reliability to assure good-faith performance.

5.24. The STO Purchasing Director may accept or reject any bid in whole, or in part.

5.25. The STO reserves the right to require a vendor who submits a bid to certify that it is not currently engaged in, and will not for the duration of a contract, engage in a boycott of Israel. §112‑17‑6. Formal Procurement Documents and Processes.

6.1. Request for Quotation (RFQ)

6.1.1. An RFQ shall contain a detailed description of or specification for, the item(s) being purchased, any required delivery date, quantities, bid price per unit, and information on how to complete and submit the RFQ bid and deadlines.

6.1.2. Bids are reviewed by STO Purchasing and the division requesting the item(s) to verify each bid meets the requirements of the RFQ.

6.1.3. Award will be made to the lowest responsible and responsive vendor.

6.2. Direct Award:

6.2.1. A direct award is a procurement method occurring only if:

6.2.1.a. The procurement file contains the following:

6.2.1.a.1. Written justification that the direct award is in the best interests of the state;

6.2.1.a.2. Documentation of efforts used to determine there is no other source or that no other source would be willing or able to replace the existing source without a detrimental effect; and

6.2.1.a.3. No other vendor expresses an interest in providing the commodity or service in question.

6.2.1.b. A direct award may be used for procurements determined to be non‑competitive, including the list of commodities and services in Section 9 of the West Virginia State Purchasing Division Procedures Handbook.

6.2.1.c. A direct award contract may be extended or renewed if the request is substantiated by a written justification of continuation of the contract. The original award must include a provision to allow a renewal in the terms and conditions or specifications.

6.2.1.d. A direct award must be publicly posted for ten (10) days to determine if any other entity can meet the need.

6.3. Request for Proposals (RFP)

6.3.1. RFP documentation shall define the commodities and services desired to allow comparability of bids as submitted.

6.3.2. Procurements by RFP shall be advertised through media considered advisable and not cost prohibitive, including professional publications, wvOASIS, the STO’s website, and emails to potential vendors.

6.3.3. RFPs require a two‑part bid opening. Technical proposals are opened first and fully evaluated prior to cost proposals being opened. Vendors shall be notified of the date and time of opening the cost portion.

6.3.4. At the date, time and location of the bid opening, the bids received are opened and the names of the vendors submitting a bid are read aloud and are documented. STO Purchasing will verify that the technical and cost portions of the bids are separate and the cost portion is sealed.

6.3.5. After bids are opened, the technical portion of each bid will be submitted to the named evaluation committee. The cost portion will remain sealed until the technical evaluation is completed.

6.3.6. In the event only one bid is received and the bid meets the minimum requirements of the RFP, then the technical portion of that bid will be submitted to the evaluation committee for evaluation but not scoring. After the technical evaluation, the cost portion will be opened and provided to the evaluation committee. STO and vendor may negotiate any portion of the commodities or services requested or offered. If the STO and the vendor reach agreement on the commodities and services and terms and conditions, the vendor will be awarded the contract.

6.3.7. Evaluation Committee

6.3.7.a. The evaluation committee shall consist of 3‑5 voting members and limited to STO employees or other state employees.

6.3.7.b. Before someone can become an evaluation committee member, he or she shall complete the requisite training. The training must be completed once in a 12‑month period. Certificates of Completion of training are provided and maintained by STO Purchasing. Evaluators are required to sign the Non-conflict of Interest certification form prior to evaluation of responses.

6.3.7.c. A non‑state employee may be permitted to serve as non‑voting advisor or subject matter expert with prior approval of the evaluation committee and STO Purchasing. Individuals serving as advisors or subject matter experts are required to sign the Non‑conflict of Interest certification form.

6.3.7.d. A committee chairperson or co‑chairperson is selected by the committee. The chairperson liaises with STO Purchasing.

6.3.7.e. Evaluation committee members shall evaluate the bids in a fair and consistent manner and not attempt to influence or manipulate other members. Communication regarding the evaluation should be limited to evaluators and STO Purchasing.

6.3.7.f. The committee in concert shall complete an evaluation, solely evaluating the bids received, of the technical portion of each bid received and reach a consensus on the assigned points. The committee shall complete and make a written consensus recommendation on the technical portions of the bids. Each bid shall begin with the maximum score. Points may be deducted for any identified deficiency in each bid. The recommendation will be reviewed by STO Purchasing and if determined acceptable, the cost portion of each bid will be opened and provided to the committee.

6.3.7.g. At its first meeting, the committee shall determine whether all bids meet any minimum requirements of the RFP. If the committee believes a bid should be disqualified, it shall send a written recommendation to STO Purchasing to have the bids not meeting minimum requirements disqualified. Bids disqualified by STO Purchasing will not be evaluated further.

6.3.7.h. The committee will continue the technical evaluation of the bids not disqualified and then submit a recommendation of the points assigned for the bids to STO Purchasing and state whether any bids have failed to meet any required minimum acceptable score. Technical portions of the bids may be compared against one another to determine the best-in-class solution. Proposals that exceed the mandatory requirements and/or the non-mandatory desirables may be assigned the maximum points in that category, with lesser solutions assigned an appropriately lower score. Bids failing to meet any required minimum acceptable score for the technical portion of the bids will not be considered further.

6.3.7.i. After STO Purchasing has accepted the scoring recommendation, cost portions of the bids meeting any required minimum acceptable score will be opened. Cost portions of bids disqualified or failing to meet minimum acceptable score may be opened at the discretion of STO Purchasing.

6.3.7.j. The committee shall complete a mathematical evaluation of the cost portion of each bid still under consideration.

6.3.7.k. If best value purchasing is used, award will be made to the vendor submitting the bid with the highest score. If competitive negotiation is used, discussions will be held with the two or three vendors whose bids had the highest point scores.

6.3.7.l. Any needed changes to a bid or to reach agreement on a contract shall be negotiated.

6.4. Emergency Procurements

6.4.1. In the event the Governor, Treasurer, or other authorized official declares an emergency exists, the Treasurer shall determine to what extent these procedures will apply to procurements and authorize emergency procurements.

6.4.2. An emergency procurement shall use the procurement methods in this rule to the extent practicable.

6.4.3. STO Purchasing will assist in obtaining bids, preparing documentation, verifying any required vendor registration and licensing, and issue any contracts necessary.

6.5. Rapid Award Contract Procurements – STO Investment and Savings Programs

6.5.1. The investment and savings programs managed and administered within the STO include the College Prepaid Tuition and Savings Program; the State of West Virginia Deferred Compensation Plan; the West Virginia Jumpstart Savings Program; the West Virginia Hope Scholarship Program; and the operations of the West Virginia Board of Treasury Investments (“WVBTI”).

6.5.2. Because of the sophisticated nature of the investment and savings programs managed and administered within the STO, certain contracts must be entered into using the Rapid Award Contract (RAC) procurement method when time is of the essence, to avoid unnecessary costs to program beneficiaries or disruptions in services that are crucial to program operations.

6.5.2.a. These contracts can include contracts for necessary goods and services, contracts to employ necessary personnel, and contracts to engage the services of private consultants, auditors, counselors, managers, trustees, and any other contractors or professionals needed for rendering professional and technical assistance and advice to the program or program board. For example, the WVBTI enters into contracts with legal, accounting, financial and investment managers, advisors and consultants.

6.5.2.b. The selection of the goods and services described in subdivision 6.5.2.a. of this rule and their resultant contracts are statutorily exempt from the provisions of W. Va. Code §5A‑3‑1 et seq.

6.5.2.c. All business registrations for doing business with and in the state shall also be met prior to a contract award.

6.5.3. Approval to Use the Rapid Award Contract Process.

6.5.3.a. In order to award a contract through the RAC process, the responsible investment or savings program Director or Assistant Treasurer must first submit a written request to the STO General Counsel for approval to use the RAC process (a “RAC request”). The RAC request must clearly identify why the RAC process is necessary under unique factual circumstances, identify the entity to which the contract will be awarded, and provide reasoning as to why the RAC process is in the overall best interest of the program and/or its beneficiaries. The STO Legal Division shall review the RAC request and provide a memorandum either approving or disapproving the request. Approval must be based on the General Counsel’s determination that unique factual circumstances justify the use of the RAC process and that the use of the RAC process does not run afoul of applicable state or federal law. If the Legal Division disapproves the RAC request, another procurement method permitted by this rule may be used to secure the goods or services.

6.5.3.b. Upon the Legal Division’s approval of a RAC request, the General Counsel shall submit his or her memorandum approving the request and all other appropriate documentation to the Treasurer or Deputy Treasurer. The Treasurer or Deputy Treasurer shall review the RAC request and the General Counsel’s memorandum and provide his or her written approval or disapproval of the RAC request. If the Treasurer or Deputy Treasurer disapproves the RAC request, another procurement method permitted by this rule may be used to secure the goods or services. Upon the Treasurer or Deputy Treasurer’s approval of a RAC request, the STO Purchasing Division shall take necessary steps to award a contract using the RAC method for the goods or services described in the RAC request at the direction of the requesting Director or Assistant Treasurer.

6.5.3.c. All RAC request approval documentation shall be part of the contract documentation in accordance with any record retention policy governing the contract. §112‑17‑7. Other

7.1. Depository Agreements

7.1.1. W.Va. Code §12‑1‑2 requires the STO to designate as depositories various financial institutions in the state that meet the requirements in the W.Va. Code and rules. Bidding is not appropriate as any financial institution in the state that meets the requirements may be a state‑approved depository. The number of state‑approved depositories in West Virginia exceeds 45. Depository contracts need to have a long term to protect the state since the financial institution receives and hold moneys for which the state is responsible. It is not practical to have to enter into new contracts and bonds on any regular basis due to the large number of contracts and their importance.

7.2. Information Technology (IT)

7.2.1. The types of IT are software, hardware, services and support and maintenance. A procurement may include all types of IT and competitively procured where practical. IT and the procurement of IT carries a high level of risk because of the importance, requirements, rapid industry changes, security, sophistication and privacy issues.

7.2.2. Software procurement requires consideration of whether the software meets the needs of the STO, type of license, any available alternative software, costs, how the software is hosted, security, legal requirements, effects of a breach, compatibility with current systems, frequency of updates, any associated changes that will be needed over time, and ongoing support and maintenance.

7.2.3. A license term of use must be flexible, as well as associated services and support and maintenance. If IT determines services and support and maintenance are needed beyond the current term of the contract, the contract may be extended or renewed at the discretion of IT and the vendor.

7.2.4. If the current contract provides for future support and maintenance at the fees set by the vendor or as negotiated, the vendor shall provide a quotation of the fees and the period covered by those fees. The parties will negotiate in good faith. Once IT finds the quotation acceptable, then a change order to the current contract will be issued with the quotation attached. A new contract is not needed so long as the original contract terms and conditions contained a renewal provision.

7.2.5. If IT believes only one vendor may reasonably provide specific commodities and services, including support and maintenance, the procurement may be handled as a direct procurement.

7.2.6. If the STO, the vendor or the law requires changes to a current contract, the parties will negotiate in good faith to reach agreement. If an agreement is reached and put into writing signed by both parties, STO Purchasing will issue a change order to the current contract containing the agreed language.

7.2.7. At least one year before a contract in the amount of $5,000.00 or more and with a term longer than one year for software, hardware or IT system terminates, including all available extensions, and IT desires to extend or renew the contract, IT will evaluate and justify the extension or renewal using life cycle costing, total ownership or operational cost, or any other methods considered appropriate by the STO. Additional factors to consider include current and anticipated work environment needs, compliance issues, current performance, availability of alternate sources and costs. If the STO determines the contract should not be rebid, it will determine the length of term for the renewal.

7.3. Term

7.3.1. The length of the term of a contract and any extensions are considered at the time the procurement documents are issued and then determined at the time the contract is issued. The STO will use life cycle costing, total ownership or operational cost, or other methods to determine the appropriate length of a term and any extensions or renewals.

7.3.2. A written justification must be in the procurement file for any contract term longer than five (5) years with renewals, as well as for extensions or renewals.

7.3.3. The STO will evaluate existing contracts with terms exceeding five (5) years every other year prior to termination using life cycle costing and total ownership or operation cost procurement methods to determine whether the commodities or services should be bid.

7.4. Term – Contracts for Investment Management Services

7.4.1. At the discretion of the Board of Treasury Investments, contracts for investment services and necessary rating services may be extended for concurrent terms indefinitely in three-year increments after the expiration of the initial term of the contract if said extension is determined to be the action most consistent with the Board’s fiduciary duties and the following requirements are met:

7.4.1.a. The Board of Treasury Investments presents in writing a memorandum to the Board with the following information:

7.4.1.a.1. Rationale for continuing to renew for each term renewal after the initial term, including an explanation of how continued renewal is the action most consistent with the Board’s fiduciary duties; and

7.4.1.a.2. Analysis of whether the Assets Under Management (Market Value) rate and the basis point rate assessed can be shown to be a competitive rate within the government investment services sector.

7.4.1.b. The Board of Treasury Investments obtains a majority Board vote in favor of renewal after presentation of the memorandum. This vote must occur at least six (6) months prior to the next renewal period at a regular or special meeting of the Board of Treasury Investments; and

7.4.1.c. Vendor agrees to the renewal.

7.4.2. If all requirements in subsection 7.4.1. are met, the renewal will be issued in accordance with the rules contained herein. If all the requirements are not met, the Board of Treasury investments will complete the necessary solicitation to obtain the needed investment services.

7.5. Term – Contracts for Banking and Depository Agreements

7.5.1. Contracts for banking services and depository agreements may be extended for concurrent terms indefinitely in three-year increments after the expiration of the initial term of the contract if said extension is determined to be the action most consistent with the prudent fiscal operations of banking functionality in the state and the following conditions are met:

7.5.1.a. The COO of Banking Services (or equivalent) presents in writing a memorandum to the Deputy Treasurer and General Counsel with the following information:

7.5.1.a.1. Rationale for continuing to renew for each three-year term renewal after the initial term, including an explanation of how continued renewal is the action most consistent with the prudent fiscal operations of banking functionality in the state; and

7.5.1.a.2. Analysis of whether the fees, other costs, any basis point rate assessed, or earnings credit rate can be shown to be a competitive rate within the government banking services sector. §112‑17‑8. Vendor Complaints and Protests.

8.1. Complaints – A vendor may verbally or in writing complain about a procurement to STO Purchasing. STO Purchasing will provide a written response to the complaint.

8.2. Types of Protests

8.2.1. Protests of Requirements, Specifications or Terms – Any protest relating to a procurement document, including any requirement, specification or term, or any combination thereof, must be filed in writing with the STO Purchasing Division no later than five (5) business days prior to the specified bid opening date and time. Protests received after that date will not be considered.

8.2.2. Protests of Award – After selection of the apparent successful vendor in a procurement using an RFP, STO Purchasing will send a written notice of award to each vendor submitting a bid advising of the results and the date and time for a protest to be received by STO Purchasing. Vendors shall submit any protest of award no later than five (5) business days of the written notice. Protests received after the stated date and time will not be considered.

8.3. Written Letter of Protest – A letter of protest must be submitted in writing and contain the name and address of the protesting vendor, the procurement document number, a statement explaining why the protest has been filed, the relief sought, and any other information that may assist the STO in reaching a decision on the matter. The STO must receive the letter of protest by the established deadline to be considered.

8.4. Review of Protest and Issuing Decision – The STO will review the letter of protest and issue a written decision. The STO may contact the protesting vendor or any other entity or perform such research or investigation it considers necessary to reach a decision. Opening of the bids, evaluation of the bids or award of the contract may be delayed, as considered appropriate by the STO. §112‑17‑9. Public Records.

9.1. Procurement documents inform vendors that the entire response submitted for that procurement and any resulting contract are considered public documents.

9.2. As public documents, procurement documents are disclosed to the public following the bid opening or award of a contract in accordance with the WVFOIA.

9.3. Any bid or other document in a procurement file may be disclosed pursuant to a WVFOIA request, even if the bid or other document contains statements or labels attempting to prevent disclosure, such as confidential, trade secret, private, or any other claim.

9.4. The STO shall not be liable for any disclosure of a procurement document.

9.5. If a vendor requests the STO execute a non‑disclosure agreement to protect portions of its bid from disclosure for an RFP procurement, it must make the request to STO Purchasing at least one week prior to the date of the bid opening. A non‑disclosure agreement may be executed at any time to prospectively protect any procurement documents, contracts or information.

9.6. The STO has no duty to inform a vendor that any procurement documents, contracts or other documents or information will be disclosed pursuant to a WVFOIA. §112‑17‑10. Violations.

10.1. Any person who authorizes or approves a purchase or contract in violation of federal or state law, this rule, or any policy or procedure adopted by the STO may be held personally liable for the cost of the procurement or contract. Procurements and contracts violating federal or state law or this rule are void and of no effect.

10.2. The STO will follow vendor suspensions and debarments by the federal government and the West Virginia Department of Administration, Purchasing Division.

Series 18 Hope Scholarship Program

W. Va. Code R. § 112-18-1 General

1.1. Scope. -- This rule provides the administrative requirements of the Hope Scholarship Program.

1.2. Authority. – W. Va. Code §18-31-9

1.3. Filing Date. – May 15, 2025

1.4. Effective Date. – May 15, 2025

1.5. Sunset Provision. – This rule shall terminate and have no further force or effect on August 1, 2030.

W. Va. Code R. § 112-18-2 Definitions

2.1. “Academic year” means the period of time occurring between the first day of July and ending on the 30th day of June, during which a student must meet the educational requirements equivalent to an instructional term as provided in W. Va. Code §18-8-1.

2.2. “Account” means the savings account established for an individual Hope Scholarship student, into which the Board deposits the Hope Scholarship funds allocated to said student pursuant to W. Va. Code §18-31-6.

2.3. “Account holder” means the person designated and authorized to administer and manage a Hope Scholarship student’s account according to section 5 of this rule.

2.3.1. For the purposes of a student’s enrollment application, “account holder” refers to the person who applies or submits information on behalf of the potential Hope Scholarship student.

2.3.2. For the purposes of this rule, “account holder” does not include a secondary account holder unless the provision in question clearly and specifically refers to a “secondary account holder.”

2.4. “ACH” means automated clearinghouse, a national EFT network which enables participating Financial Institutions to distribute electronic credit and debit entries to financial institution accounts and to settle the entries.

2.5. “Board” means the Hope Scholarship Board established in W. Va. Code §18-31-3.

2.6. “Curriculum” means a complete course of study for a particular content area or K-12 grade level, including any supplemental materials required.

2.7. “Education service provider” or “provider” means a person or organization that the Board authorizes to receive Hope Scholarship funds as payment for providing educational services to Hope Scholarship students.

2.8. “Elementary or secondary public school” means a K-12 county school, a public charter school, a virtual public charter school, or any other publicly supported elementary or secondary school in this state.

2.9. “EFT” means electronic funds transfer.

2.10. “Electronic transaction” means an EFT, including, but not limited to, payment by ACH, ACH based electronic check, wire transfer, and online transaction processing.

2.11. “Funds” means Hope Scholarship funds.

2.12. “Hope Scholarship Program” or “Program” means the Hope Scholarship Program, established in W. Va. Code §18-31-1 et seq.

2.13. “Hope Scholarship student” or “student” means a student who has successfully applied to the Board and is enrolled in the Hope Scholarship program.

2.14. “Hope Scholarship website” means the website created and maintained to provide program information, program documents, and program forms available to the public.

2.15. “Immediate family”, as used to describe a person’s relationship to a Hope Scholarship student, includes any of the following:

2.15.1. The father or mother of the student, or an ancestor of either;

2.15.2. The grandfather or grandmother of the student, or an ancestor of either;

2.15.3. A brother, sister, stepbrother, or stepsister of the student;

2.15.4. A first cousin of the student;

2.15.5. A stepfather or stepmother of the student;

2.15.6. A brother or sister of the father or mother of the student;

2.15.7. A son or daughter of a brother or sister of the student;

2.15.8. A father-in-law, mother-in-law, brother-in-law, or sister-in-law of the student;

2.15.9. The spouse of the student; or

2.15.10. The spouse of any person described in subdivisions one through nine of this subsection.

2.15.11. Any term set forth in this subdivision means and includes such term as established through a lawful adoption, including, but not limited to, adoptions of a child or children, or other natural person, by a natural person or natural persons who are not the father, mother, or stepparent of the child or person.

2.16. “Individualized Instructional Program (IIP)” means a customized educational experience that takes place either at home or another location. Hope Scholarship students with an IIP are not enrolled in a participating school.

2.17. “Instructional term” means a period of continuous enrollment in the West Virginia public school system for the full academic year. The instructional term refers to the regular 180 instructional days of the public-school calendar in accordance with W. Va. Code §18-5-45.

2.18. “Online portal” means the online system and interface selected and administered by the Treasurer through which parents, vendors, and service providers may complete transactions using Hope Scholarship funds.

2.19. “Scholarship disbursement” means the deposit of Hope Scholarship funds pursuant to section 7.3. of this rule.

2.20. “Student” refers to an individual who is eligible to participate in the Hope Scholarship program according to section 3 of this rule. For the purposes of meeting the application requirements in this rule, an action completed by a designated account holder is considered to be an action completed by the student.

2.21. “Transaction” means a single purchase, payment, or transfer.

2.22. “Treasurer” means the West Virginia State Treasurer or his or her designee.

2.23. “Unlawful sharing of Hope Scholarship funds” or “unlawful sharing” refers to sharing in Hope Scholarship funds by a parent, student, or account holder, as prohibited by W. Va. Code §18-31-7(c).

2.24. “WVEIS number” refers to the number assigned by the student’s county board of education that is utilized by West Virginia’s public school system to track individual student information and academic progress.

W. Va. Code R. § 112-18-3 Eligibility

3.1. A student is eligible to apply to participate in the Hope Scholarship Program if the student:

3.1.1. Is a resident of the State of West Virginia;

3.1.2. Has not successfully completed a secondary education program;

3.1.3. Is under 21 years of age; and

3.1.4. Meets one of the following criteria at the time an enrollment application is submitted:

3.1.4.a. The student is eligible to be enrolled in a kindergarten program in West Virginia according to W.Va. Code §18-8-1a; Provided, That if a student has not yet attained the age of five by July 1 and would not be eligible to be enrolled in a kindergarten program under the provisions of W. Va. Code §18-5-18, the student may become eligible for a Hope Scholarship if the student successfully enrolls in a public kindergarten program in West Virginia through the public kindergarten program’s early entrance process. If a student who has not yet attained the age of five by July 1 and who is unable to enroll in a public kindergarten through an early entrance process otherwise attends a kindergarten program authorized under W.Va. Code §18-8-1a, that student is considered an existing private school or homeschool student who must meet the eligibility requirement under subdivision 3.1.4.c. of this rule to become eligible for the Hope Scholarship Program since the student is no longer eligible for kindergarten.

3.1.4.b. The student was enrolled in an elementary or secondary public school education program in the State of West Virginia for the entire instructional term during the academic year immediately preceding the academic year for which the student is applying to participate in the Hope Scholarship Program; or

3.1.4.c. The student is enrolled full-time and attending an elementary or secondary public school education program in the State of West Virginia at the time of application and has been enrolled in said program for at least forty-five (45) consecutive calendar days during an instructional term. The student must remain enrolled and attending public school until an award letter is issued by the Board. To meet the attendance portion of this eligibility option, students shall not have unexcused absences during the public-school enrollment period that exceed the threshold to be considered chronically absent, which is ten percent of the calendar days enrolled in the public school.

3.2. Notwithstanding section 3.1., if on July 1, 2024, the participation rate of the combined number of students in the Hope Scholarship Program and students eligible who have applied to participate in the Hope Scholarship program during the previous school year is less than five percent of net public school enrollment adjusted for state aid purposes for the previous school year, then, effective July 1, 2026, a child is considered to meet the requirements of this paragraph if he or she is enrolled, eligible to be enrolled, or required to be enrolled in a kindergarten program or public elementary or secondary school program in this state at the time of application.

3.3. If a Hope Scholarship student becomes ineligible to participate in the program during the academic year based on the criteria in subsections 3.1.1. through 3.1.3. of this section, his or her account will terminate as provided in section 10 of this rule.

3.4. According to §18-8-1(m), a parent must provide notice of intent to participate in the Hope Scholarship Program to the county superintendent of the Hope Scholarship student’s county of residence. The Board may withhold or delay funding to a Hope Scholarship student’s account if a notice of intent has not been submitted.

3.5. A student may appeal an eligibility determination of the Board by filing an appeal according to the procedure in 112 CSR 19, section 11.

W. Va. Code R. § 112-18-4 Applications

4.1. Enrollment applications.

4.1.1. An account holder must submit an enrollment application to the Board on a student’s behalf in order to enroll the student in the Hope Scholarship program.

4.1.2. The Board will accept enrollment applications from eligible students year-round, according to any applicable deadlines adopted by Board motion and published on the Board’s website located at https://hopescholarshipwv.com/.

4.1.3. The enrollment application will be on a form prescribed by the Board and will require applicants to provide, at a minimum, the following information:

4.1.3.a. Account holder legal name;

4.1.3.b. Account holder physical address;

4.1.3.c. Account holder mailing address;

4.1.3.d. Account holder email address;

4.1.3.e. Student legal name;

4.1.3.f. Student physical address;

4.1.3.g. Student mailing address;

4.1.3.h. Student county of residence;

4.1.3.i. Student date of birth;

4.1.3.j. The student’s West Virginia Education Information System (WVEIS) number; and

4.1.3.k. Documentation demonstrating that the student meets the eligibility requirements for participation in the Hope Scholarship program, as required by the Board, including but not limited to, a copy of the student’s birth certificate and current proof of West Virginia residency. Provided, that the Board may request additional documentation to verify proof of West Virginia residency as determined necessary by the Board. The list of acceptable documents to satisfy proof of West Virginia residency includes the following:

4.1.3.k.1. Two West Virginia utility bills not more than 60 days old from two different companies, not including termination notices;

4.1.3.k.2. Current government or employer issued tax records with a West Virginia address matching the address on the application;

4.1.3.k.3. Proof of West Virginia home ownership, such as a mortgage document or homeowner’s insurance document;

4.1.3.k.4. A valid and current West Virginia driver’s license or other West Virginia-issued identification card, when presented along with a second form of accepted proof of residency;

4.1.3.k.5. A valid and current West Virginia vehicle registration card; or

4.1.3.k.6. Current proof of public assistance through the West Virginia Department of Human Services or Department of Health.

4.1.4. The Board may permit applicants to utilize a residency verification system and authentication process in lieu of providing the documentation in subparagraphs 4.1.3.k.1. through 4.1.3.k.6. Provided, this subdivision does not prevent the Board from requesting additional proof of residency documentation as determined necessary by the Board.

4.1.5. The Board may place a submitted application on hold due to missing, inaccurate, or incomplete information or documentation needed for the Board to approve the application. If the account holder does not provide the information or documentation required for the Board to approve the application within 30 days after the account holder receives notice of the need for additional information or documentation, the application may be denied.

4.2. Annual continuation of Hope Scholarship Account.

4.2.1. An account holder may continue participation in the Hope Scholarship Program for each upcoming academic year in which the student is eligible to participate in the program by meeting the annual continuation requirements of this section. An account holder must annually meet the following requirements as a condition of continued program participation from one school year to the next:

4.2.1.a. The parent must submit proof of the student’s continued West Virginia residency;

4.2.1.b. The parent must execute the parent agreement with the Board described in W.Va. Code §18-31-5(d)(3) ahead of each school year; and

4.2.1.c. The parent must report to the county superintendent of the student’s county of residence that the student has complied with all attendance and academic requirements in accordance with W.Va. Code §18-31-8(a) for the most recent school year.

4.2.2. An account holder must meet the annual continuation requirements of this section according to any applicable deadlines adopted by Board motion and published on the Board’s website located at https://hopescholarshipwv.com/.

4.2.3. A Hope Scholarship student’s account will remain open for each academic year for which the account holder meets the conditions for continued participation in the Program. Any unused funds in a Hope Scholarship student’s account at the end of an academic year will remain in a renewed account and carry forward for the student’s use during the upcoming academic year so long as their eligibility to participate in the program is maintained.

4.2.4. A Hope Scholarship student who fails to continue participation of his or her account may submit a new application to the Board at any time but will be subject to the eligibility criteria that apply to new student applicants: Provided, That a student who fails to meet the academic or attendance reporting requirements in W.Va. Code §18-31-8(a) may not submit a new application to the Board for the school year immediately following the year for which he or she failed to meet said requirements. Whenever an account is closed for failure to meet requirements to continue participation in the Program, all funds remaining in the student’s account at the end of the academic year will be returned to the State and will not carry forward for use during subsequent academic years.

4.3. All applications described in this section will be available on the Hope Scholarship website located at https://hopescholarshipwv.com/.

W. Va. Code R. § 112-18-5 Authorized Account Holder

5.1. An enrollment application must designate one eligible person to serve as the account holder for the student’s Hope Scholarship account. The account holder will be authorized to expend and manage Hope Scholarship funds on behalf of the Hope Scholarship student. The following persons are eligible to serve as account holder:

5.1.1. The student’s biological parent, legal guardian, custodian, or other person with legal authority to act on behalf of a Hope Scholarship student as determined by the Board; or

5.1.2. The student, if the student is 18 years of age or older on or before the first day of the academic year.

5.2. The Board may allow an account holder to designate one secondary account holder for a Hope Scholarship account. A secondary account holder must meet the account holder eligibility requirements in section 5.1. of this section. (For example, if a mother with legal custody of her child is the primary account holder for her child, a father with legal custody of the child may be designated as the secondary account holder).

5.2.1. A secondary account holder’s authority to use Hope Scholarship Funds is limited to completing purchases on behalf of the Hope Scholarship student using the online portal. A secondary account holder will access the student’s Hope Scholarship account via an online portal user account that is separate and distinct from the primary account holder’s user account.

5.2.2. The primary account holder may remove a secondary account holder from the account at any time by submitting a request to the Board on a form prescribed by the Board.

5.2.3. A secondary account holder must enter into the Account Holder Contract required in section 6 of this rule prior to gaining access to Hope Scholarship funds.

5.3. If the account holder for a Hope Scholarship student is unable to administer a Hope Scholarship account for any reason, the account holder, a secondary account holder, or the student may file a request with the Board to change the designated account holder at any time during the academic year.

5.3.1. A request to change the designated account holder for an account must be submitted on a form prescribed by the Board.

5.3.2. The Board will approve a request to change the designated account holder if the Board determines that:

5.3.2.a. The account holder consents to the change of account holder or the Board determines that a change of account holder is necessary to ensure that Hope Scholarship Funds may continue to be expended on behalf of the student;

5.3.2.b. The person designated as the new account holder meets the eligibility requirements in section 5.1. of this rule;

5.3.2.c. The requested change of account holders will not cause an undue disruption to the student’s education or access to Hope Scholarship Funds; and

5.3.2.d. The person designated as the new account holder enters into the Account Holder Contract required in section 6 of this rule.

W. Va. Code R. § 112-18-6 Account Holder Contract

6.1. Prior to establishing a Hope Scholarship account, the account holder must enter into a written contract with the Board, agreeing, at a minimum, to the following:

6.1.1. To ensure that the Hope Scholarship student receives an education in at least the subjects of reading, language, mathematics, science, and social studies;

6.1.2. To use the Hope Scholarship funds exclusively for qualifying expenses of the Hope Scholarship student as provided in W. Va. Code §18-31-7 and section 9 of this rule;

6.1.3. To comply with the rules and requirements of W. Va. Code §18-31-1 et seq. and this rule;

6.1.4. To afford the Hope Scholarship student opportunities for educational enrichment such as organized athletics, art, music, or literature; and

6.1.5. For a student who chooses an individualized instructional program, to submit the student’s annual nationally normed standardized achievement test results or an annual certified teacher’s review of the student’s academic work to the superintendent of the county of residence, as required by W. Va. Code §18-31-8, no later than June 8 prior to the upcoming academic year:

6.1.6. To authorize the Board, the West Virginia State Treasurer’s Office, the West Virginia Department of Education, and the contracted program manager acting on behalf of the Board to exchange all necessary enrollment or other data to confirm initial and ongoing eligibility for the Hope Scholarship Program.

6.1.7. To agree that items purchased with Hope Scholarship funds shall not be resold to other parties.

6.2. The Board will provide the account holder contract to the designated account holder for the Hope Scholarship student at the time of application to the Hope Scholarship Program.

6.3. Failure of an account holder to sign the account holder contract is grounds for the denial of the application for the Hope Scholarship Program.

W. Va. Code R. § 112-18-7 Allocation and Distribution of Funds

7.1. An account holder must establish a Hope Scholarship account with the Board prior to receiving or expending Hope Scholarship funds. The Board will provide the account holder with instructions for establishing an account upon issuance of an award letter indicating the Hope Scholarship student’s acceptance into the program.

7.2. All Hope Scholarship transactions will be completed electronically using the online portal available on the Hope Scholarship website located at https://hopescholarshipwv.com/.

7.3. The Board will complete scholarship disbursements by electronically depositing Hope Scholarship funds into Hope Scholarship student accounts. For students entitled to the full scholarship amount for the year based on their application date, half of the annual scholarship funds will be available by August 15 of that year and the second half by January 15 of the year. For students entitled to less than the full scholarship amount for the year as determined by the provisions of subsection 7.3.1, the student’s account will be funded as soon as practicable after the student’s application is approved. It is assumed that any proration of funding will be allocated to the first semester.

7.3.1. For students entitled to less than the full scholarship amount for the year based on their application date, the Hope Scholarship funds will be based on a quarterly funding amount determined by the original application submission date as adopted by Board motion and published on the Board’s website located at https://hopescholarshipwv.com/.

7.4. Each Hope Scholarship student will have a separate Hope Scholarship account, regardless of whether multiple Hope Scholarship students reside in the same household or share the same account holder. An account holder may only use funds in an account for the individual Hope Scholarship student to whom the funds were allocated pursuant to W. Va. Code §18-31-6.

7.5. If an account holder meets the annual conditions for continued participation in the Hope Scholarship Program, any funds remaining in the account at the end of an academic year will be carried forward and may be used for the student’s qualifying expenses in the upcoming academic year.

7.6. If an account holder fails to meet the annual conditions for continued participation in the Hope Scholarship Program or the account is terminated for any reason, in accordance with section 10 of this rule, all remaining funds from the account will be returned to the West Virginia Hope Scholarship Program Fund.

W. Va. Code R. § 112-18-8 Purchases and Refunds

8.1. Account Holder Purchases.

8.1.1. An account holder must complete all payments of Hope Scholarship funds to education service providers and vendors electronically via the online portal available on the Hope Scholarship website located at https://hopescholarshipwv.com.

8.1.2. Reimbursement of Hope Scholarship funds for payments made with non-Hope Scholarship funds will only be considered on a case-by-case basis due to extenuating circumstances. Any reimbursement request shall be made on a form prescribed by the Board and shall require detailed supporting documentation and receipts. Any reimbursement requires approval of the Board: Provided, That the Board may adopt reimbursement policies to approve or deny categories of reimbursement requests.

8.2. Refunds.

8.2.1. All refunds of Hope Scholarship funds by an educational service provider or vendor must be electronically credited directly back to the Hope Scholarship student’s account.

8.2.2. An education service provider must notify the Board of an account holder’s request for a refund prior to issuing the refund and provide the Board with appropriate documentation reflecting the return of goods or cancellation of services for which the refund will be issued.

8.2.3. If a Hope Scholarship student uses funds to make a partial payment of tuition or fees to an educational service provider to reserve the student’s enrollment in a program and the student does not participate in the program, the education service provider must electronically credit said payment back to the Hope Scholarship student’s account within 30 days after receiving notice that the student will not participate in the program or after the educational program has commenced, whichever occurs earlier.

8.3. Online Portal Access.

8.3.1. Only an account holder is authorized to access an online portal user account or to complete a transaction using Hope Scholarship funds.

8.3.2. The Board may allow a person who is the account holder for multiple Hope Scholarship students that reside in the same household to access all such accounts through one online portal user account: Provided, That individual Hope Scholarship accounts must remain separate and segregated at all times.

W. Va. Code R. § 112-18-9 Qualifying Expenses

9.1. An account holder may only use funds deposited in an account for the Hope Scholarship student’s qualifying expenses incurred completing his or her K-12 education. Expenses incurred for Pre-K instruction are not allowable under the Hope Scholarship Program.

9.2. Expenditures of Hope Scholarship funds for the following purposes are qualifying expenses:

9.2.1. Private or parochial school tuition and fees at a participating school;

9.2.2. Tuition and fees for programs of study, curriculum, or supplemental materials in reading, language, mathematics, science, social studies, or the arts;

9.2.3. Tuition and fees for programs of study or the curriculum of courses that lead to an industry-recognized credential that satisfies a workforce need;

9.2.4. Tuition and fees for ongoing services that a public school, including a public charter school, offers to Hope Scholarship students, pursuant to W. Va. Code §18-31-8(f), including individual classes and extracurricular activities and programs: Provided, That students participating in the Hope Scholarship Program are subject to all eligibility rules applicable to participation in extracurricular activities governed by the West Virginia Secondary School Activities Commission: Provided, however, That Hope Scholarship students attending a participating private school are eligible to receive free services that the public schools otherwise offer to private school students; Provided, further, That if a Hope Scholarship student has utilized their funds for other qualified expenses, the student shall be responsible to pay the tuition and fees to the public school from other sources in order to receive such services;

9.2.5. Tutoring services provided by an individual or a tutoring service: Provided, That tutoring services cannot be provided by a member of the Hope Scholarship student’s immediate family;

9.2.6. Fees for nationally standardized assessments, advanced placement examinations, any examinations related to college or university admission, any examinations for industry certification exams, and tuition and fees for preparatory courses for the aforementioned exams;

9.2.7. Tuition and fees for nonpublic online or virtual learning programs;

9.2.8. Tuition and fees for alternative education programs;

9.2.9. Fees for after-school or summer education programs;

9.2.10. Tuition, fees, and materials for enrollment in dual credit or college level courses;

9.2.11. Educational services and therapies, including, but not limited to, occupational, behavioral, physical, speech-language, and audiology therapies;

9.2.12. Fees for transportation paid to a fee-for-service transportation provider for the student to travel to and from an education service provider;

9.2.13. The cost of school uniforms required by a participating school;

9.2.14. Vocational supplies or equipment required for a K-12 course of study;

9.2.15. Technology equipment needed for an educational program, including but not limited to computers, printer and required software;

9.2.16. Tuition and fees for programs of study, curriculum, or supplies needed for supplemental or elective educational courses;

9.2.17. Basic educational supplies, including but not limited to, paper, writing utensils, scissors, etc.;

9.2.18. Any assistive technology or other equipment/supplies necessary to accommodate a student with a disability;

9.2.19. Tuition and fees at a microschool as defined in W.Va. Code §18-8-1; and

9.2.20. Any other qualifying expenses as approved by the Board.

9.3. An account holder may seek approval of an expense as a qualifying expense by submitting a request to the Board, on a form that will be prescribed by the Board and made available on the Hope Scholarship website located at https://hopescholarshipwv.com/.

9.4. A comprehensive list of all qualifying expenses is located in the Hope Scholarship Parent Handbook and is available on the website located at https://hopescholarshipwv.com/.

W. Va. Code R. § 112-18-10 Account Termination

10.1. Nonrenewal.

10.1.1. A Hope Scholarship student’s participation in the program terminates at the end of the academic year for which he or she is enrolled unless the account holder meets the annual conditions for continued participation in the Hope Scholarship Program according to the procedures in section 4 of this rule.

10.1.1.a. The Board will provide written notice to all Hope Scholarship account holders, at least 45 days prior to the deadline for continued participation, informing the account holder of the following:

10.1.1.a.1. That he or she must meet the annual conditions for continued participation in order to enroll the student in the Hope Scholarship program for the upcoming academic year;

10.1.1.a.2. That he or she must meet the annual conditions for continued participation in order to continue the Hope Scholarship student’s account for use during the upcoming academic year;

10.1.1.a.3. That failure to meet the annual conditions for continued participation of the Hope Scholarship student’s account for the upcoming academic year will result in closure of the student’s current account at the end of the academic year and forfeiture of all unused funds remaining in the account to the State; and

10.1.1.a.4. Instructions on how to continue participation with the Board, including all applicable deadlines.

10.1.2. Nothing in this rule prevents an account holder who fails to continue participation from re-applying for an account in subsequent years, according to the regular application procedures provided in section 4 of this rule: Provided, That a student who fails to meet the academic or attendance reporting requirements in W.Va. Code §18-31-8(a) may not submit a new application to the Board for the school year immediately following the year for which he or she failed to meet said requirements.

10.2. Withdrawal or Ineligibility.

10.2.1. A Hope Scholarship student’s participation in the program terminates if any of the following conditions occur:

10.2.1.a. The account holder withdraws the student from the program;

10.2.1.b. The Hope Scholarship student successfully completes a secondary education program;

10.2.1.c. The Hope Scholarship student reaches twenty-one (21) years of age;

10.2.1.d. The account owner fails to submit the information required by subsection 6.1.5. of this rule;

10.2.1.e. The student is no longer a resident of West Virginia; or

10.2.1.f. The student enrolls full-time in a public-school program.

10.2.2. If any of the conditions described in subsection 10.2.1. of this section occur, the account holder must immediately notify the Board. If the Board has knowledge that any of the conditions described in subsection 10.2.1. of this section have occurred, the Board will notify the account holder that the Hope Scholarship student’s account will be closed in 45 days. The Board will close the account if:

10.2.2.a. The account holder does not respond to the notice within 30 days of receipt;

10.2.2.b. The account holder or student does not cure any circumstance making a student ineligible to participate in the program within 45 days of receipt; or

10.2.2.c. The account owner does not provide information within 45 days of receipt demonstrating that circumstances on which the Board is basing the decision to close an account are factually incorrect.

10.3. Noncompliance, intentional misuse of funds, or criminal activity.

10.3.1. The Board may temporarily freeze or direct a hold on the account pending an audit or inquiry into the expenditures or conduct at issue if the Board receives credible information indicating that an account holder or Hope Scholarship student has violated W. Va. Code §18-31-1 et seq.; violated the requirements of this rule; or engaged in criminal activity involving Hope Scholarship funds. An account holder will be notified if their account is frozen or being held within 20 days following the change in status.

10.3.2. As required in W. Va. Code §18-31-10, an account holder must submit to any audit initiated by the Board related to Hope Scholarship funds. Upon request, the account holder must provide the Board with all records in the account holder’s custody relating to Hope Scholarship fund transactions.

10.3.3. If the Board determines that an account holder or a Hope Scholarship student has violated W. Va. Code §18-31-1 et seq.; violated the requirements of this rule; or engaged in criminal activity involving Hope Scholarship funds; the Board may terminate the student’s participation in the program and declare the student, account holder, or both permanently ineligible to participate in the Hope Scholarship program.

10.4. Immediately following termination of a Hope Scholarship student’s participation in the program for any reason, the Board will close the student’s account. Within 20 days following an account’s closure, for any reason other than the parent declining participation in the program or a reason set forth in subsection 10.2.1 of this rule, the Board will provide written notice of said closure to the account holder. The notice will provide the reason for the account’s closure and notify the account holder of the process to appeal a decision or action of the Board.

10.5. Any funds remaining in a Hope Scholarship account upon the account’s closure will be returned to the West Virginia Hope Scholarship Program Fund upon the expiration of any applicable appeal period.

10.5.1. If the account is closed due to the student returning to a West Virginia public school full-time after October 1 of the academic year, upon request of the county board of education of the county in which the public school is located or the public charter school, the funds remaining in the student’s Hope Scholarship account shall be transferred to the county board to fund the cost of the student’s education for the remainder of the school year in accordance with billing instructions provided by the Board. Hope Scholarship students who return to public school full-time during the school year are ineligible to reapply for the Hope Scholarship during the same school year but shall be eligible to apply to participate in the program for the subsequent school year.

10.6. A student or account holder may appeal any final action of the Board by filing an appeal according to the procedure in W. Va. C.S.R. §112-19-11.

W. Va. Code R. § 112-18-11 Provider Eligibility

11.1. Only an authorized education service provider may accept Hope Scholarship funds as payment for providing educational services to Hope Scholarship students.

11.2. The Board will authorize an individual or an entity to be an education service provider if that person or entity submits a notice of intent to become an education service provider on a form prescribed by the Board and complies with all requirements of W. Va. Code §18-31-1 et seq. and this rule. A person or entity may become an authorized education service provider at any time during the academic year.

11.2.1. A West Virginia county board of education or public education entity offering services to Hope Scholarship students may be automatically considered to be an authorized education service provider and is exempt from the requirements of this section as deemed appropriate by the Board: Provided, That prior to receiving Hope Scholarship Funds, the county board of education or other public education entity must sign the Provider Contract described in section 11.3. of this section.

11.2.2. An education service provider receiving more than one hundred thousand dollars of Hope Scholarship funds annually may be required to provide a surety bond upon request of the Board.

11.2.3. The Board may consider entering into reciprocal agreements with state education savings account agencies or entities located in other states, whether public or private, to recognize and allow education service providers approved in other states to receive payments from Hope Scholarship accounts.

11.3. Provider Contract.

11.3.1. Prior to receiving Hope Scholarship Funds, an education service provider must sign a contract with the Board, agreeing to the following:

11.3.1.a. That the provider will comply with all rules and requirements of the W. Va. Code §18-31-1 et seq. and this rule;

11.3.1.b. That the provider will not refund, rebate, or share Hope Scholarship funds with parents or students in a manner inconsistent with any provision of the West Virginia Code or this rule;

11.3.1.c. That the provider will require any employee or other person who will have contact with Hope Scholarship students receiving services from the provider to submit to a criminal background screening and certify that said background check does not indicate conviction of a felony involving violence to the person and that the employee or other person is not on a federal or state sex offender registry;

11.3.1.d. That the provider will not engage in unlawful discrimination according to state or federal law applicable to the provider in providing educational services to Hope Scholarship students; and

11.3.1.e. In the case of a participating school, that the provider will annually notify the superintendent of the county in which a Hope Scholarship student resides of that student’s enrollment in the Hope Scholarship Program, in accordance with W. Va. Code §18-31-11, by no later than June 8. Copies of the annual notifications shall also be provided to the West Virginia Department of Education by the same date.

11.3.1.f. In the case of a participating school, that the provider will annually notify the Hope Scholarship Board of any students participating in the Hope Scholarship Program who graduate from a secondary program offered by the school by no later than June 15.

11.4. Private or parochial schools.

11.4.1. An authorized education service provider that is a nonpublic school must submit a complete copy of its tuition and fee schedule to the Board. The school must provide the Board with advance notice of any changes to the tuition or fee schedule that occur during the academic year.

11.4.2. Upon request of the Board, the nonpublic school must provide the Board with an accounting of all fees and tuition charged to each Hope Scholarship student and an itemized accounting of all of the school’s transactions with the student involving Hope Scholarship funds.

11.4.3. The nonpublic school must provide notice to the Board if a Hope Scholarship student withdraws from the school or fails to meet the school’s minimum attendance requirements.

11.4.4. As provided in subdivision 11.3.1.e. of this rule, the nonpublic school must annually provide notice to the superintendent of the county in which a Hope Scholarship student resides of that student’s enrollment in the Hope Scholarship Program by no later than June 8. Copies of the annual notification shall also be provided to the West Virginia Department of Education by the same date.

11.4.5. As provided in subdivision 11.3.1.f. of this rule, the nonpublic school must annually notify the Hope Scholarship Board of any students participating in the Hope Scholarship Program who graduate from a secondary program offered by the school by no later than June 15.

11.5. An education service provider is prohibited from requiring a student or a family to pay tuition or fees above the provider’s regular tuition or fee schedule based upon a student or family member’s participation in the Hope Scholarship program.

11.6. An education service provider may not limit the amount of Hope Scholarship funds that a student may apply towards the provider’s tuition and fees.

11.7. An education service provider may not retain Hope Scholarship funds used to pay a deposit or tuition in advance if the student does not ultimately utilize the vendor’s services. The education service provider is entitled to only the portion of the Hope Scholarship funds paid to cover any required tuition and fees for the educational services actually rendered to the student.

11.8. If the Board receives credible information indicating that an education service provider has violated W. Va. Code §18-31-1 et seq.; violated this rule; or engaged in criminal activity involving Hope Scholarship Funds, the Board may temporarily freeze or direct a hold on the person’s or entity’s approved provider status pending an audit or inquiry into the expenditures or conduct at issue.

11.9. As required in W. Va. Code §18-31-10, an education service provider must submit to any audit initiated by the Board, including those performed by the State Auditor on behalf of the Board, related to Hope Scholarship Funds. Upon request, the education service provider must provide the Board, or the State Auditor on behalf of the Board, with access to all records necessary to verify the expenditure of Hope Scholarship funds on qualifying expenses.

11.10. If the Board determines that an educational service provider has intentionally violated W. Va. Code §18-31-1 et seq.; violated this rule; or engaged in criminal activity involving Hope Scholarship funds, the Board may terminate the person’s or entity’s approved provider status and declare the person or entity permanently ineligible to receive Hope Scholarship funds.

11.11. Within 20 days following termination of a person’s or entity’s approved education service provider status, the Board will provide written notice of said termination to the provider and to any Hope Scholarship student who has made payments of Hope Scholarship funds to the provider during the academic year. The notice will provide the reason for the account’s closure and notify recipients of the process to appeal a Board decision.

11.12. An education service provider may appeal a final decision of the Board by filing an appeal according to the procedure in 112 CSR 19, section 11.

W. Va. Code R. § 112-18-12 Board Communications to Account Holders and Providers

12.1. The Board will direct all communications to account holders, including written communications required by the Act or these Rules, by electronic mail (email) to the email address for an account holder designated by the account holder in the portal. It is an account holder’s responsibility to maintain and regularly monitor the account holder’s email address in the portal, and an account holder will immediately update account holder’s email address in the portal if the account holder’s email address changes during the student’s participation in the Program.

12.2. The Board will direct all communications to providers, including communications required by the Act or these Rules, by email to the email address of the primary contact designated for the provider in the portal. It is a provider’s responsibility to maintain and regularly monitor the provider’s email address listed in the portal, and a provider will immediately update the email address for the primary contact in the portal if that email address changes during the provider’s participation in the Program.

12.3. All emails properly addressed and transmitted to an email address for an account holder or provider pursuant to this section are deemed to be received by the account holder or provider for the purposes of these rules.

W. Va. Code R. § 112-18-13 Unlawful Sharing of Hope Scholarship Funds

13.1. A Hope Scholarship student, the student’s parent, and the student’s account holder are strictly prohibited from unlawfully sharing in the student’s Hope Scholarship Funds. Unlawful sharing includes, but is not limited to:

13.1.1. A student’s parent or account holder receiving compensation with Hope Scholarship funds for providing educational services directly to the student;

13.1.2. A student, the student’s parent, or the student’s account holder receiving a refund for items or services purchased with Hope Scholarship funds, as opposed to the refund being deposited directly to the student’s Hope Scholarship account;

13.1.3. A student, the student’s parent, or the student’s account holder receiving any payment or compensation from an education service provider in exchange for the student expending Hope Scholarship funds with the provider; or

13.1.4. A student, the student’s parent, or account holder personally taking possession of the student’s Hope Scholarship funds in any manner: Provided, That a duly authorized reimbursement issued by the Board pursuant to subsection 8.1.2. of this rule does not constitute unlawful sharing.

13.2. Notwithstanding section 13.1. of this section, a student’s parent or account holder does not engage in unlawful sharing if all of the following criteria apply:

13.2.1. The parent or account holder is the employee of an education service provider;

13.2.2. The parent or account holder receives a salary from the education service provider in the provider’s regular course of business;

13.2.3. The student pays for a service from the education service provider with which the parent or account holder is employed, and the education service provider has 15 or more students receiving educational services from the provider at the time said payment is made;

13.2.4. The parent or account holder’s compensation rates and employment terms are in no way conditioned upon the student’s expenditures of Hope Scholarship funds with the provider; and

13.2.5. The education service provider and parent or account holder certify, on a form prescribed by the Board, that the education service provider has checks and balances in place that would prevent the employee from taking possession of his or her student’s Hope Scholarship funds.

13.3. Any employee determined to be a “control employee,” according to W. Va. C.S.R. 112-19-1 et seq., is required to submit a “control employee form” upon request of the Board. Failure to submit a control employee form is grounds for suspension of a Hope Scholarship account or an education service provider’s approved status.

W. Va. Code R. § 112-18-14 Students Participating in Extended Secondary School Education

14.1. A student who has completed his or her K-12 education is no longer eligible to participate in the Hope Scholarship Program, and a parent or provider may not unnecessarily delay awarding said student a diploma for the purpose of utilizing Hope Scholarship funds to pay for the student’s college-level education.

14.2. The Board may require a student who has already participated in a high school program (grades 9-12) for four years or longer to demonstrate that the student has an educational need to repeat a grade in secondary school prior to permitting the student to renew his or her account for another school year. Demonstration of the educational need can be accomplished through documented proof of a student’s disability or other documented educational issue which would necessitate additional time for the student to meet all graduation requirements.

Series 19 West Virginia Hope Scholarship Board Procedures and Bylaws

W. Va. Code R. § 112-19-1 General Scope. -- This rule establishes the procedures and bylaws of the West Virginia Hope Scholarship Board

Authority. – W. Va. Code §18-31-4, §18-31-5, §18-31-9, and §18-31-10.

Filing Date. – December 14, 2023 Effective Date. – January 15, 2024

W. Va. Code R. § 112-19-2 Definitions

2.1. “Account” means the savings account established for an individual Hope Scholarship student, into which the Board deposits the Hope Scholarship funds allocated to said student pursuant to W. Va. Code §18-31-6.

2.2. “Account holder” means the person designated and authorized to administer and manage a Hope Scholarship student’s account according to the legislative rules of the board.

2.3. “Account violation” means any violation or attempted violation of W. Va. Code §18-31-1 et seq., W. Va. C.S.R. §112-18-1 et. seq., or other Hope Scholarship Program requirements by an account holder, parent, or student. The term also includes violation of any applicable criminal law involving Hope Scholarship funds or program resources by an account holder, parent, or student.

2.4. “Board” means the Hope Scholarship Board established in W. Va. Code §18-31-3.

2.5. “Control employee” means any employee or officer of an educational service provider entity who meets at least one of the following:

2.5.1. Owns a fifteen percent or greater equity, capital, or profits interest in the provider;

2.5.2. Collects a salary from the provider that is equal to or greater than fifteen percent of the provider’s gross income;

2.5.3. Is an officer or director of the provider, or has the ability to withdraw funds from the provider’s bank accounts into which Hope Scholarship funds are deposited; or

2.5.4. Is an employee of the provider, receives monetary compensation from the provider, and is an immediate family member of 50% or more of the students receiving goods or services from the provider.

2.6. “Education service provider” or “provider” means a person or organization that the Board authorizes to receive Hope Scholarship funds as payment for providing educational services to Hope Scholarship students.

2.7. “Freeze” means an action taken with regard to a Hope Scholarship account, or with regard to a Hope Scholarship provider’s portal account, that prevents the individual or provider suspected of a program violation from signing into or accessing the account for any purpose. With regard to a provider, a freeze also includes suspending the approved provider status of that provider.

2.8. “Hold” means an action taken with regard to a Hope Scholarship account, or with regard to a Hope Scholarship provider’s portal account, that prevents the individual or provider suspected of a program violation from performing one or more account functions but does not amount to an account freeze.

2.9. “Majority” means a number greater than one-half (½) of the total.

2.10. “Parent” means a student’s biological parent, legal guardian, custodian, or other person with legal authority to act on behalf of a Hope Scholarship student as determined by the Board

2.11. “Program” means the Hope Scholarship Program, established in W. Va. Code §18-31-1 et seq.

2.12. “Provider violation” means any violation or attempted violation of W. Va. Code §18-31-1 et seq.; W. Va. C.S.R. §112-18-1 et. seq., or other Hope Scholarship Program requirements by an educational service provider or vendor. The term also includes violation of any applicable criminal law involving Hope Scholarship funds or program resources.

2.13. “Reasonable suspicion” means actual knowledge of information that, if reasonably believed to be true, would indicate to a reasonable person that an account violation, provider violation, or unlawful sharing is likely to have been attempted or to have occurred.

2.14. “Secretary” means the Secretary to the Hope Scholarship Board.

2.15. “Staff” means the staff members the West Virginia State Treasurer’s Office provides to the Hope Scholarship Board, pursuant to W. Va. Code §18-31-3(d).

2.16. “STO” means the West Virginia State Treasurer’s Office.

2.17. “Treasurer” or “Chair” or “Presiding Officer” means the West Virginia State Treasurer.

2.18. “Unlawful sharing of Hope Scholarship funds” or “unlawful sharing” refers to parental or student sharing in Hope Scholarship funds, as prohibited by W. Va. Code §18-31-7(c).

W. Va. Code R. § 112-19-3 Offices

3.1. The principal office of the Board shall be located at the State Capitol in the City of Charleston, County of Kanawha, State of West Virginia. The Board may have such other office or offices, and transact business, either within or without the State of West Virginia, as the Board may designate or as the business of the Board may require from time to time.

W. Va. Code R. § 112-19-4 Board Members

4.1. Nine members constitute the Board: the Treasurer; who shall serve as Chair and presiding officer of the Board; the State Auditor, or his or her designee; the Attorney General, or his or her designee; the State Superintendent of Schools, or his or her designee; the Chancellor of Higher Education, or his or her designee; the Director of the Herbert Henderson Office of Minority Affairs, or his or her designee; three members appointed by the Governor, with the advice and consent of the Senate, who are parents of and account holders for Hope Scholarship students, or for the initial appointments of board members following the effective date of this article, parents who intend to apply for the Hope Scholarship on behalf of eligible students.

4.2. The Board shall have such powers and duties as provided by law, including but not limited to those powers and duties enumerated in W. Va. Code §18-31-1 et seq.

4.3. For initial appointments to the Board, the Governor will appoint members to staggered terms as follows:

4.3.1. One member will be appointed to a one-year term;

4.3.2. One member will be appointed to a two-year term; and

4.3.3. One member will be appointed to a three-year term.

4.4. After the initial staggering of terms, an appointed member of the board shall serve for three years, or until his or her death, disability, resignation, removal, or the appointment of a successor. A member may be reappointed. A member appointed to fill a vacancy shall serve for the balance of the unexpired term.

4.5. Resignations from the Board shall be made to the Governor, in writing, with a copy sent to the Chair. Neither the Governor nor the Board is required to accept or to act on a resignation for the resignation to become effective.

4.6. Appointments to fill vacancies existing on the Board, including without limitation a vacancy resulting from the death, disability, resignation, or removal of a member, shall be for the unexpired term of the vacant seat.

4.7. Members of the board shall serve without compensation. The board may reimburse members for all reasonable and necessary expenses, including travel expenses, actually incurred by board members in the conduct of their official duties. Any expense reimbursements shall be made from the West Virginia Hope Scholarship Program Expense Fund at the same rate paid to state employees.

W. Va. Code R. § 112-19-5 Committees

5.1. The Board may establish committees as it considers necessary to carry out its responsibilities. The Chair may establish one or more committees as he or she considers appropriate. The Chair shall appoint board members and other persons to serve on committees. Each committee shall report any meeting minutes or recommendations adopted by the committee at the first board meeting occurring after said meeting or recommendation. Committees established by the Board shall continue in existence until dissolved by action of the Board.

5.2. The designation and appointment of a committee and the delegation thereto of authorities shall not operate to relieve the Board or any individual member of any responsibility imposed upon it or him by law.

W. Va. Code R. § 112-19-6 Board and Committee Meetings

6.1. All Board and committee meetings, and all notices required, shall comply with the provisions of the West Virginia Open Governmental Proceedings Act, W. Va. Code §6-9A-1 et seq.

6.2. The Board shall meet as often as necessary but at least quarterly.

6.3. Committee meetings shall be held at such time and place as called by the Chairman of the committee.

6.4. Special and Emergency Meetings.

6.4.1. The Board may call a special meeting is a meeting to carry out a special purpose outside of a regular meeting. The Board may call an emergency meeting to address an unexpected event which requires immediate attention because it poses an imminent threat to public health or safety; an imminent threat of damage to public or private property; an imminent material financial loss; or other imminent substantial harm to a public agency, its employees, or the members of the public which it serves.

6.4.2. Special and emergency board meetings may be called by or at the request of the Chair. The purpose of an emergency meeting must be stated at the meeting and in the minutes.

6.5. Filing Notices with Secretary of State

6.5.1. Notices of regular and special board and committee meetings shall be filed electronically on the website of the Secretary of State at least five business days prior to the meeting date.

6.5.2. Notices of emergency board and committee meetings shall be filed electronically on the website of the Secretary of State as soon as practicable prior to the meeting date.

6.5.3. All notices must state the date, time, place, and purpose of the meeting. Notices of emergency meetings must state the date, time, place, and purpose of the meeting, as well as the facts and circumstances of the emergency.

6.6. Notice to Board Members

6.6.1. Notice shall be given to board members at least 10 days prior to a regular meeting, at least five days prior to a special meeting, and as soon as practicable prior to an emergency meeting. The notice shall fix the date, time, place, and purpose of the meeting. The address last given by a board member shall be the address used.

6.6.2. Notice of any regular, special, or emergency meeting shall be considered received when sent by written notice delivered personally, or by messenger, telecopier, facsimile, telegraph, e-mail, or other means of electronic communication by the Secretary.

6.6.3. If mailed, such notice shall be deemed to be given and delivered when deposited in the United States Mail, with postage thereon prepaid, or when deposited with an overnight mail service, with the cost borne by the Board. If transmitted by electronic mail, such notice shall be deemed to be given and delivered when the board sends the notice by electronic mail and receives an electronic delivery receipt from the email address of the board member.

6.7. Unless otherwise provided by law, whenever any notice is required to be given to a board member under the provisions of these bylaws or any other applicable rule or law, the board member may waive the notice in writing or by attending the meeting that was the subject of the notice.

6.8. Agenda

6.8.1. The Chair shall prepare the agenda for each board meeting.

6.8.2. An agenda shall list matters in the order they are to be considered. During a meeting, the Board or committee may consider matters out of order.

6.8.3. An agenda for an annual or regular meeting shall be available upon request to the public and posted on the West Virginia Hope Scholarship website at least three business days prior to a regular or special meeting and as soon as practicable prior to an emergency meeting.

6.8.4. An agenda shall state the purpose of the meeting and any matter requiring the Board to take official action.

6.8.5. An agenda may be amended up to two business days before the meeting. Amended agendas must be posted in the same manner as an original agenda.

6.8.6. Agendas may be amended at a meeting. To add an emergency matter to an agenda, the facts and circumstances constituting the emergency must be explained on the record at the meeting.

6.9. The Chair may permit a board or committee member to attend a meeting of the Board or a committee by means of conference telephone, video conference, or other electronic communications equipment. A member participating in a meeting in accordance with this section is deemed to be present in person at the meeting and his vote shall have like effect and validity as though he or she were present.

6.10. A majority of the members serving on the Board as of the meeting day shall constitute a quorum for the transaction of business at any meeting of the Board, and a majority of the members of a committee serving as of the meeting day shall constitute a quorum for the transaction of business at a meeting of a committee.

6.11. The Board or a committee may go into executive session for the purposes specified in W. Va. Code §6-9A-4 upon a majority vote on a motion in which the specific purposes are stated. The only matters that may be discussed in executive session are those specified in the motion. No official actions may be taken during executive session. Minutes will not be taken.

6.12. The Board may, by majority vote, recess from a meeting and continue the meeting at a specific time, date, and location. No further notice is required for continued meetings in accordance with this Section.

W. Va. Code R. § 112-19-7 Officers

7.1. The State Treasurer shall be the Chairman of the Board. The Board shall appoint a Secretary and may elect or appoint any other officers as it considers necessary.

7.2. One person may hold more than one office on the Board, except that the same person may not serve as Chair and Secretary. No officer shall execute, acknowledge, or verify any instrument in more than one capacity, if such instrument is required by law or the Bylaws to be executed, acknowledged, verified, or countersigned by two or more officers.

7.3. Chair

7.3.1. The Chair shall be the principal executive officer of the Board and, subject to the control of the Board, shall supervise and control the business, operations, transactions, and other matters of the Board. He or she shall, when present, preside at all meetings of the Board, and perform all duties incident to the office of the Chair.

7.3.2. As Chair, the duties include, but are not limited to, negotiating and signing any contract or other document or instrument which the Board has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board to another person, or shall be required by law to be otherwise signed or executed; providing personnel from the STO to act as staff for the Board and taking all necessary actions in connection with personnel-related matters; obtaining all necessary goods and services needed for operation of the Program; representing the Board; and performing such duties as may be required by his position or as prescribed by the Board.

7.4. The Chair shall appoint a Secretary for the Board, who may be a board member or an employee of the STO.

7.5. The Secretary shall:

7.5.1. Prepare the minutes of each board and committee meeting and make them available within a reasonable time to the public and the media;

7.5.2. Ensure the minutes reflect the purpose, date, time, and place of the meeting and the name of each member who was present and who was absent;

7.5.3. Keep the minutes of the proceedings of the Board in a secure and permanent paper or electronic format, along with copies of all documents distributed at the meetings; and provide copies of the minutes to the members;

7.5.4. See that all notices are duly given in accordance with the provisions of these bylaws or as required by law;

7.5.5. Be custodian of the books, records, and other property of the Board;

7.5.6. Keep all records and files of the Board open to the inspection of each board member and the public in accordance with the West Virginia Freedom of Information Act;

7.5.7. Attest to the books, records, proceedings, documents, and resolutions of the Board;

7.5.8. Certify, when necessary and when authorized, the books, records, proceedings, documents, and resolutions of the Board;

7.5.9. Attest to the signature of any officer of the Board; and

7.5.10. In general, perform all duties incident to the office of Secretary and such other duties as from time to time may be assigned to him or her by the Board or by the Chair.

7.6. Any officer or agent may be removed by the Board, with or without cause. Election or appointment of an officer or agent shall not create contractual rights.

7.7. A vacancy in a board-appointed office may be filled by the Board at a regular or special meeting for the unexpired portion of the term.

W. Va. Code R. § 112-19-8 Designees and Indemnification

8.1. Any duty authorized, provided, or required to be performed by any board member or officer may be performed by his or her duly authorized designee.

8.2. To the extent permitted by law, the Board shall indemnify each current and former board member, officer, designee, committee member, or state employee performing services on behalf of the Board, as well as his or her heirs and personal representatives, against costs and expenses (including judgments, fines, taxes, penalties, and interest) at any time reasonably incurred by him arising out of or in connection with his or her service on or for the Board: Provided, That the board will not indemnify said person for matters as to which he or she shall be adjudged in such action, suit, or proceeding to be liable for gross negligence or willful misconduct in the performance of a duty to the Board. If in the judgment of the Board, a settlement of any claim, action, suit, or proceeding so arising be deemed in the best interest of the Board, any such board member, officer, designee, committee member, or STO or State Superintendent of Schools employee performing services on behalf of the Board shall be reimbursed for any amounts paid by him in effecting such settlement and reasonable expenses incurred in connection therewith. If payment of any costs and expenses is advanced pursuant to this provision prior to adjudication or settlement, such payments shall be repaid to the Board in the event it shall ultimately be determined that such board member, officer, designee, committee member, or STO or State Superintendent of Schools employee performing services on behalf of the Board is not entitled to be indemnified by the Board pursuant to this provision or pursuant to a duly adopted resolution of the Board. The right of indemnification set forth herein shall be in addition to any and all other rights to which any board member, officer, designee, committee member, or STO or State Superintendent of Schools employee performing services on behalf of the Board may be entitled as a matter of law or pursuant to a duly adopted resolution of the Board: Provided, That the Board shall not indemnify any person or persons who shall be adjudged liable for gross negligence or willful misconduct in the performance of a duty to the Board.

W. Va. Code R. § 112-19-9 Contracts and Accounts

9.1. Any member of the Board is authorized to receive on behalf of the Board any moneys due and payable to the Board from any source whatsoever.

9.2. The Board may authorize the Chair or its officers or agents to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Board. A contract, agreement, or purchase required in the normal course of business in the total amount of $25,000.00 or less does not require board approval.

9.3. In selecting vendors to provide goods and services to the Board, the Board shall follow the West Virginia State Treasurer’s Office purchasing procedures set forth in W. Va. C.S.R. §112‑17‑1 et seq.

W. Va. Code R. § 112-19-10 Fiscal Year and Accounting Period

10.1. The fiscal year and accounting period of the Board shall begin July 1 and end June 30 each year.

W. Va. Code R. § 112-19-11 Procedures Following Suspicion of a Violation

11.1. Upon reasonable suspicion of an account violation or a provider violation, Staff shall follow the procedures set forth in this section.

11.2. Account violation. –

11.2.1. Upon reasonable suspicion of an account violation, Staff shall immediately direct the program manager to place a temporary hold or freeze on the Hope Scholarship account or accounts involved in the suspected violation if determined necessary to prevent further violations or loss of funds. Staff shall provide written notice of the hold or freeze to the account holder according to the requirements of W. Va. C.S.R. §112‑18‑10.3.1.

11.2.2. Following reasonable suspicion of an account violation, Staff shall conduct a written or verbal inquiry with the individual or individuals suspected of a violation, designed to ascertain whether a violation has occurred. Any written inquiry will clearly state the date by which the individual must submit a written response and produce requested records.

11.2.3. Staff shall review the information and records produced pursuant to any written or verbal inquiry, along with any other relevant information available to the Board. Following said review, Staff may:

11.2.3.a. Lift the hold or freeze on an account if Staff determine that there is no evidence of an account violation in the information and records produced or other relevant information available to the Board;

11.2.3.b. Present the information discovered in the inquiry and any subsequent audit to the Board along with any Staff recommendation to terminate an individual’s participation in the program for a period of time, declare an individual or provider permanently ineligible to participate in the Hope Scholarship Program, or both, pursuant to W. Va. CSR §112-18-10.3.3; or

11.2.3.c. Commence a more extensive account audit by an outside auditor retained by the Board, an internal auditor provided to the Board by the West Virginia State Treasurer’s Office, or the West Virginia State Auditor if additional information is needed to determine whether one or more account violations has occurred: Provided, That the Board may take any of the actions set forth in subsection 11.5 of this rule prior to the conclusion of an audit if one or more account violations are clearly demonstrated in the information or records initially available to the Board, but further audit is needed to investigate evidence of additional violations.

11.3. Provider violation. –

11.3.1. Upon reasonable suspicion of a provider violation, Staff shall immediately direct the program manager to place a temporary hold or freeze on the account and approved educational service provider status of the individual and/or entity involved in the suspected violation if determined necessary to prevent further violations or loss of funds.

11.3.2. Following reasonable suspicion of an account violation, Staff shall conduct a written or verbal inquiry with the provider suspected of a violation, designed to ascertain whether a violation has occurred. Any written inquiry will clearly state the date by which the provider must submit a written response and produce requested records.

11.3.3. Staff shall review the information and records produced pursuant to any written or verbal inquiry, along with any other relevant information available to the Board. Following said review, Staff may:

11.3.3.a. Lift the hold or freeze on a provider’s account, approved status, or both if Staff determine that there is no evidence of a provider violation in the information and records produced or other relevant information available to the Board;

11.3.3.b. Present the information discovered in the inquiry and any subsequent audit to the Board along with any Staff recommendation to terminate the provider’s approved status, declare a provider permanently ineligible to participate in the Hope Scholarship Program, or both pursuant to W. Va. CSR §112-18-10.3.3;

11.3.3.c. Commence a more extensive provider audit by an outside auditor retained by the Board, an internal auditor provided to the Board by the West Virginia State Treasurer’s Office, or the West Virginia State Auditor if additional information is needed to determine whether one or more provider violations has occurred: Provided, That the Board may take any of the actions set forth in subsection 11.5 of this rule prior to the conclusion of an audit if one or more provider violations are clearly demonstrated in the information or records initially available to the Board, but further audit is needed to investigate evidence of additional violations.

11.4. Unlawful sharing of Hope funds. –

11.4.1. Upon reasonable suspicion that unlawful sharing of Hope funds has occurred, Staff shall immediately commence a written or verbal inquiry into any and all potential account violations and provider violations involved in the suspected sharing, according to the procedures outlined in subsections 2 and 3 of this section. The following factual circumstances per se establish reasonable suspicion of unlawful sharing when reflected in the records and information available to the Board, in the absence of documentation demonstrating that a provider has measures in place to prevent sharing:

11.4.1.a. An account holder has used or attempted to use Hope Scholarship funds to pay for educational goods or services from an educational service provider; and:

11.4.1.a.1. A parent, the student, or a household member of the parent or student is the educational service provider;

11.4.1.a.2. A parent, the student, or a household member of the parent or student is a control employee of the educational service provider;

11.4.1.a.3. A parent, the student, or a household member of the parent or student has the ability to withdraw funds from the educational service provider’s bank account into which Hope Scholarship funds are deposited or transferred; or

11.4.1.a.4. The email address of the student or the student’s parent is the same as the email address for the educational service provider or the business or mailing address of the educational service provider is the same as the residential or personal mailing address of the student or the student’s parent.

11.4.1.b. A student’s account is invoiced for an educational good or service provided to the student by the parent or the student’s immediate family member in violation of W. Va. Code §18-31-7(a)(3).

11.4.2. Staff may require the control employee parent and provider to complete a form designed to ascertain whether sharing has occurred and whether the provider has measures in place to effectively prevent sharing. For example, a nonpublic school may have internal controls to ensure that an administrator with access to the school’s bank accounts cannot make unauthorized withdrawals to unlawfully share in his or her Hope Scholarship student’s funds.

11.5. Board determination following investigation and/or audit. – At the conclusion of an investigation or audit undertaken pursuant to this section, Board staff shall present any evidence that an account or provider violation has occurred to the Board in an executive session, as permitted by W. Va. Code §6-9A-4(6) and (7).

11.5.1. If the Board determines that an account violation has occurred, the Board may, on motion and by majority vote take any of the following actions or combination thereof:

11.5.1.a. Terminate the violating individual or provider’s participation in the program for a specified period of time;

11.5.1.b. Permanently disqualify the violating individual or provider from participating in the program; or

11.5.1.c. Take another action as determined appropriate by the Board, including but not limited to referring the matter to law enforcement.

11.6. If at any time the Board or the Secretary suspects fraudulent or criminal misuse of Hope Scholarship funds, the Chair may direct the STO General Counsel to refer the suspected case to the State Auditor or appropriate law enforcement authorities for criminal investigation. Pending the outcome of an investigation commenced by the State Auditor or law enforcement, the Board may suspend the procedures required by this section.

W. Va. Code R. § 112-19-12 Procedures Following Suspension or Permanent Disqualification for Violation

12.1. If the Board votes to terminate an individual or provider’s participation in the program for a period of time or to permanently disqualify an individual or provider from participating in the program pursuant to section 11 of this rule, Staff will take the following actions:

12.1.1. Staff will immediately instruct the program manager to discontinue the individual or provider’s ability to access or complete transactions with their portal account, if the individual or provider’s account or provider status is not already on hold or frozen;

12.1.2. Staff will provide notice of the Board’s action or actions to the affected individual or provider, with instructions for submitting an appeal to the Board; and

12.1.3. If an appeal is not filed within forty-five (45) calendar days following the Board vote or votes, Staff will take steps necessary to close any account associated with a terminated or disqualified individual or provider according to generally applicable procedures for closing Hope Scholarship accounts and remit all funds remaining in a closed Hope Scholarship account to the State.

12.2. When the Board determines that a violation has occurred that resulted in the improper payment of Hope funds to any person, the STO General Counsel shall make a written demand to the responsible party to repay the funds to the State if the amount of funds improperly paid is readily ascertainable. If Staff are unable to determine the amount of unlawfully paid funds or if Staff are unable recover demanded funds within 45 days following the demand, Staff will refer the matter to the State Auditor for collection.

W. Va. Code R. § 112-19-13 Appeals Process

13.1. The Chair shall appoint a three-member standing committee on appeals to be the arbiter of all appeals submitted to the Board: Provided, That the committee previously known as the “subcommittee on appeals” shall continue in existence to perform the duties of the standing committee on appeals, as described in this section, and shall hereinafter be known as the committee on appeals.

13.2. In the event a program beneficiary, applicant, or education service provider wishes to appeal a final decision of the Board, they must submit the appeal to the Board on a form prescribed by the Board within forty-five (45) calendar days of the final Board decision subject to appeal.

13.3. The committee on appeals shall complete its review of a properly submitted appeal within forty-five (45) calendar days of the date on which the appeal is submitted to the Board, and shall notify the program beneficiary, applicant, or education service provider of the decision rendered on the appeal within fifteen (15) calendar days following the completion of the committee’s review. If the committee on appeals determines that additional information is necessary to complete its review of an appeal, the committee may suspend the forty-five (45) calendar day period for appeal review set forth in this subsection, pending the committee’s request for and receipt of additional information from the appellant and the time needed for the committee to reconvene.

13.4. If an appeal involves a Board action terminating an individual or entity’s program participation or disqualifying an individual or entity from program participation based on a finding of misconduct, the committee on appeals shall render its decision on the appeal in the form of a recommendation to the full Board, submitted to the Chair. The Board shall receive and consider the recommendation at the next occurring full meeting of the Board following the committee’s submission to the Chair. The outcome of the appeal is not final until the full Board acts upon the committee’s recommendation and adopts a decision on the appeal by majority vote. For appeals subject to this subsection, the Board shall notify the program beneficiary, applicant, or education service provider of the full Board’s final decision on the appeal within fifteen (15) calendar days following the decision.

W. Va. Code R. § 112-19-14 Parliamentary Procedure

14.1. Robert’s Rules of Order shall govern the parliamentary procedures of board and committee meetings.

W. Va. Code R. § 112-19-15 Amendments and Suspension

15.1. These bylaws may be altered, amended, or repealed and new bylaws may be adopted by the Board at any regular, emergency, or special meeting of the Board.

15.2. A unanimous vote of all members present at a board meeting in which a quorum is present may suspend any provision of these bylaws.

Series 20 Jumpstart Savings Program

W. Va. Code R. § 112-20 Jumpstart Savings Program

TITLE 112

LEGISLATIVE RULE

STATE TREASURER’S OFFICE

SERIES 20

JUMPSTART SAVINGS PROGRAM §112‑20‑1. General.

1.1. Scope. – This rule provides the administrative requirements of the Jumpstart Savings Program.

1.2. Authority. – W. Va. Code §18‑30A‑6; §18‑30A‑16.

1.3. Filing Date. – April 4, 2024

1.4. Effective Date. – April 4, 2024

1.5. Sunset Provision. – This rule shall terminate and have no further force or effect on August 1, 2029. §112‑20‑2. Definitions.

2.1. “Account” means a Jumpstart Savings Program account, established pursuant to W. Va. Code §18‑30A‑1 et seq. and this rule. Any investment account issued by the board or the trust constitutes an interest in the Jumpstart Savings Program Trust and, for securities law purposes, is classified as a municipal fund security issued by the trust.

2.2. “Account owner” means the individual who establishes and owns an account and who is authorized to receive distributions, designate a beneficiary, select investment options, if applicable, and be eligible to receive any and all necessary state or federal tax documentation, according to W. Va. Code §18‑30A‑1 et seq. and this rule.

2.3. “ACH” means automated clearinghouse, a national EFT network which enables participating financial institutions to distribute electronic credit and debit entries to financial institution accounts and to settle the entries.

2.4. “Board” means the Board of Trustees of the West Virginia College and Jumpstart Savings Programs, established in W. Va. Code §18‑30‑4. The term “board” shall also include the program manager or designee when referring to such tasks and duties delegated by the board.

2.5. “Cash” includes checks, money orders, wire transfers, or EFTs, but does not include currency.

2.6. “Contribution” means any payment directly allocated to an account for the benefit of a designated beneficiary or that is used to pay administrative or other fees associated with the account according to the procedures established by the board.

2.7. “Designated beneficiary” means the individual designated as a beneficiary at the time an account is established, or the individual designated as the beneficiary when the beneficiary is changed, according to the requirements of W. Va. Code §18‑30A‑1 et seq. and this rule.

2.8. “EFT” means electronic funds transfer through wire transfers, ACH, online transaction processing, payroll deduction, automatic contribution plans, or similar methods.

2.9. “Jumpstart Savings Program” or “program” means the Jumpstart Savings Program, established in W. Va. Code §18‑30A‑1 et seq.

2.10. “Jumpstart Savings Program Trust” or “trust” means the Jumpstart Savings Program Trust created in W. Va. Code §18-30A-8.

2.11. “Jumpstart Savings Website” or “website” means the program website and/or account owner portal where account owners can access and transact on their accounts, as well as obtain program information, program documents, and program forms.

2.12. “Immediate family,” as used to describe an individual’s relationship to another individual, has the meaning provided in W. Va. Code §18-30A-3 and includes any of the following:

2.12.1. The spouse of the designated beneficiary;

2.12.2. A child of the designated beneficiary or a descendant of the designated beneficiary’s child;

2.12.3. A brother, sister, stepbrother, or stepsister of the designated beneficiary;

2.12.4. The father or mother of the designated beneficiary, or an ancestor of either;

2.12.5. A first cousin of the designated beneficiary;

2.12.6. A stepfather or stepmother of the designated beneficiary;

2.12.7. A son or daughter of a brother or sister of the designated beneficiary;

2.12.8. A brother or sister of the father or mother of the designated beneficiary;

2.12.9. A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law of the designated beneficiary; or

2.12.10. The spouse of any person described in this section 2.12.

2.12.11. Any term set forth in this rule means and includes such term as established through a lawful adoption, including, but not limited to, adoptions of a child or children, or other individual, by an individual or individuals who are not the father, mother, or stepparent of the child or person.

2.13. “Individual” means a natural person and includes an individual acting as the individual’s legal representative (for example, in his or her capacity as custodian of a trust established for the benefit of a natural person).

2.14. “Labor organization” means any organization, agency, association, union, or employee representation committee of any kind that exists, in whole or in part, to assist employees in negotiating with employers concerning grievances, labor disputes, wages, rates of pay, or other terms or conditions of employment.

2.15. “Non‑qualified distribution” means any distribution of funds from an account that is not a qualified distribution for the purposes of W. Va. Code §11-21-12m and §18‑30A‑3(a)(11).

2.16. “Person” includes an individual, a trust, estate, partnership, association, company, or corporation.

2.17. “Program description and participation agreement” means the contract between an account owner and the board setting forth the terms and conditions under which the account owner participates in the program.

2.18. “Program manager” means the entity the board selects and designates to serve as the administrator of the program or a substantial function of the program, and to undertake any other program duties specified by the board.

2.19. “Qualified distribution” means any distribution of funds from an account, pursuant to a distribution request from the account owner, that is used to pay for qualified expenses.

2.20. “Qualified expenses” includes any expense treated as a qualified expense under W. Va. Code §18‑30A‑3(a)(11) and this rule.

2.21. “Qualifying profession” means an occupation or profession for which the designated beneficiary is required to:

2.21.1. Complete an apprenticeship program registered and certified with the United States Department of Labor, as provided in 29 U.S.C. §50;

2.21.2. Complete an apprenticeship program required by any provision of the West Virginia Code or a legislative rule promulgated pursuant to said Code;

2.21.3. Earn an associate degree or certification from a community and technical college or from a school or program, authorized by the West Virginia Council for Community or Technical College Education or a similar agency in another state, to award associates degrees or technical certifications;

2.21.4. Earn a license or certification from an Advanced Career Education (ACE) career center;

2.21.5. Earn a license or certification from a career and technical education or vocational training program at a public secondary school; or

2.21.6. Complete any other apprenticeship or educational program consistent with the purposes of this article, as approved by the board.

2.22. “Rollover contribution” means the transfer of all or part of an account from a SMART529 College Savings account to a Jumpstart Savings account or from a Jumpstart Savings account to a West Virginia ABLE account, pursuant to and in accordance with the requirements of W. Va. Code §11‑21‑12m.

2.23. “SMART529” refers to the college savings program and plan established in W. Va. Code §18-30-1 et seq.

2.24. “State Treasurer” means the West Virginia State Treasurer or his or her designee.

2.25. “West Virginia ABLE” means the program and plan established in W. Va. Code §16-48-1 et seq. §112‑20‑3. The Jumpstart Savings Program Trust; securities laws; taxation.

3.1. The Jumpstart Savings Program Trust is a public instrumentality of the State of West Virginia. All interests issued by said trust shall constitute interests in the trust and shall be made available to eligible members of the public. For securities law purposes, an interest in the Jumpstart Savings Program Trust, other than an interest in an FDIC-insured account, is a municipal fund security.

3.2. The board shall take any action necessary to administer the program in a manner that allows the trust to qualify and remain qualified for relevant federal securities law exemptions for public instrumentalities of a state.

3.3. The board shall take any action necessary to administer the program in a manner that allows the trust to be exempt and remain exempt from registration under the securities laws of the West Virginia Code, including Chapter 32, the “Uniform Securities Act,” and any other West Virginia securities laws existing now or in the future.

3.4. The board shall file all tax returns on behalf of the trust required by federal or state law, if any. To the extent permitted by law, the board shall claim any tax deductions available to the board to avoid double taxation of any trust fund earnings and recapture taxes paid on behalf of the trust on earnings later distributed to trust beneficiaries. The board shall file any information returns with regard to account owners as may be required by federal or state law.

3.5. The board may adopt any reinvestment strategy, if applicable, permitted by state and federal law that is necessary to minimize the tax liability, if any, of the trust fund and account owners. §112‑20‑4. Account owner eligibility.

4.1. Any individual who is legally able to contract under applicable state law is eligible to establish an account. §112‑20‑5. Opening an account.

5.1. To open a Jumpstart Savings account, the account owner must:

5.1.1. Provide all information and forms required by the board;

5.1.2. Make a minimum opening deposit as required by the board and available on the website: https://wvjumpstart.com; and

5.1.3. Name a single individual as the designated beneficiary according to the requirements of section 8 of this rule.

5.2. All forms required to open and make deposits to a Jumpstart Savings account will be available on the website: https://wvjumpstart.com. §112‑20‑6. Ignite Incentive Program

6.1. The program described in this section shall be known as the “Ignite Incentive Program.” The State Treasurer will deposit $100 from the Jumpstart Savings Expense Fund into a newly opened Jumpstart Savings account if the designated beneficiary is a resident of West Virginia, and either of the following criteria are met:

6.1.1. The account is opened when the designated beneficiary is under 18 years of age; or

6.1.2. The account is opened within the 180 days following the date of the designated beneficiary’s enrollment in an apprenticeship or educational program described in 2.21.1. through 2.21.6. of this rule.

6.2. To qualify for the $100 deposit described in this section, the account owner must provide all information to the board or program manager within 30 days of completion of a Jumpstart account application, as required by the board. All information required to qualify for said deposit will be available on the website.

6.3. An individual may be the designated beneficiary for an account that receives the $100 deposit described in this section only one time during said individual’s lifetime, regardless of the number of accounts for which an individual is named as designated beneficiary. §112‑20‑7. Refusal of application to open Account.

7.1. The board may refuse to open an account for any of the following reasons:

7.1.1. The applicant is not an eligible account owner;

7.1.2. The applicant has not provided all the information required in the application;

7.1.3. The applicant has failed to execute the participation agreement, or any other instrument required by the board;

7.1.4. The applicant has failed to complete the minimum account opening deposit as required by the board;

7.1.5. The execution of a participation agreement violates any federal or state law; or

7.1.6. The board determines that the applicant has intentionally provided false information to the board or has violated any applicable state or federal law related to a savings or investment program currently or previously administered by the state.

7.2. The board shall provide written notice to an applicant of refusal to open an account and the reason for said refusal. If the applicant provides additional information credibly refuting the basis for the application refusal, the board shall reconsider the application. §112‑20-8. Designated beneficiary.

8.1. Any individual regardless of age, residency, or relationship to the account owner, including the account owner himself or herself, may be a designated beneficiary under the program.

8.2. There shall be only one designated beneficiary per account.

8.3. Any number of accounts may be opened for a single designated beneficiary. An account owner may not be the account owner for multiple accounts with the same designated beneficiary.

8.4. A designated beneficiary must be an individual and may not be a business, corporation, enterprise, or other entity that is not a natural person. §112‑20‑9. Changing Designated Beneficiaries.

9.1. An account owner may change the designated beneficiary of the account, as permitted by W. Va. Code §18‑30A‑11(b).

9.2. Only an account owner may change the designated beneficiary of an account. The new designated beneficiary must be a member of the prior designated beneficiary’s immediate family.

9.3. To change a designated beneficiary, the account owner shall provide all information to the board or program manager, as required by the board.

9.4. Upon receipt of the written request, the board shall register the information regarding the newly designated beneficiary in the records of the program. The change of the designated beneficiary shall be effective upon registration.

9.5. For state law purposes, a change in the designated beneficiary of a Jumpstart Savings account is not a distribution so long as the new designated beneficiary is a member of the prior designated beneficiary’s immediate family, as required by this rule.

9.6. Any forms necessary for the changing of designated beneficiaries will be available on the website. §112‑20‑10. Change of account ownership.

10.1. An account owner may designate a successor who shall become the new account owner automatically upon the death of the account owner.

10.1.1. This designation may be made at any time prior to the death of the designated account owner by submitting a designation of the successor to the program manager containing the information set forth in the account change request form.

10.1.2. Designation of a successor shall be effective upon registration in the records of the program manager.

10.2. If a change in the ownership of an account is required by a court order directing such change, or by an affidavit or declaration that is recognized under applicable law as requiring transfer of ownership without a court order, such change unless otherwise required by law shall be registered in the records of the program manager promptly after receipt of such information.

10.3. Transfer of ownership shall not be effective until registered in the records of the program manager.

10.4. Any forms necessary to transfer account ownership will be available on the website: https://wvjumpstart.com. §112‑20‑11. Termination of Account.

11.1. An account owner may terminate an account at any time by submitting an account termination request to the board, via any method made available by the board on the website: https://wvjumpstart.com.

11.2. If the board receives credible evidence that an account owner or a designated beneficiary has provided false or misleading information to the board, or to a state or federal tax authority related to an account, the board may suspend an account pending an investigation. The board shall consider any credible information provided by the account owner to refute the evidence leading to suspension of the account. The board shall provide written notice of any suspension and the reason for the suspension to an account owner as soon as reasonably practicable.

11.3. If the board receives credible evidence that an account has been used in connection with fraud or inappropriate activity, or in connection with a violation of any laws or any rules or standards of the program, the board may suspend such account pending an investigation. The board shall consider any credible information provided by the account owner to refute the evidence leading to suspension of the account. The board shall provide written notice of any suspension and the reason for the suspension to an account owner as soon as reasonably practicable.

11.4. If the board determines that an account owner or designated beneficiary has provided false or misleading information to the board, or to a state or federal tax authority related to an account, or if the board determines that an account has been used in connection with fraud or inappropriate activity, or in connection with a violation of any laws or any rules or standards of the program, the board may terminate the account. The board shall provide written notice of the decision to terminate an account to the account owner as soon as reasonably practicable.

11.5. The board may terminate an account in accordance with the provisions of the program description and participation agreement if the account balance drops below a point at which there are insufficient funds to cover appropriate account fees or are below a level determined by the board.

11.6. Upon termination of an account, the remaining account balance will be distributed to the account owner, and the contributions and earnings thereon may be subject to federal and state income taxation according to applicable laws. Neither the program, nor the board nor the program manager, nor the board’s other designee(s) shall be subject to liability for any federal or state income taxes or penalties imposed on an account owner as a result of a distribution.

11.7. The Board may develop standards and procedures to limit the number of accounts an account owner may open or the number of times an account owner or beneficiary may participate in any incentive program or programs in order to prevent duplication of program benefits, misuse of funds, or fraud. §112‑20‑12. Fees.

12.1. The board may charge account owners a fee for the administrative expenses of the program. Fees shall be clearly identified in the program description that accompanies the participation agreement and available on the website: https://wvjumpstart.com. §112‑20‑13. Investment policies.

13.1. The board may establish investment policies for the monies in the Jumpstart Savings Trust Fund, if applicable, to the nature of accounts in the program. The board may review and modify the investment policies from time-to-time as the board, in its sole discretion, determines.

13.2. The program may include interest-bearing only savings accounts and/or investment accounts to account owners. Any interest-bearing only savings accounts made available to account owners must be insured by the Federal Deposit Insurance Corporation.

13.3. Taxation of any investment returns or interest earnings are governed by applicable federal and state law. Account owners should consult with their own federal tax advisor concerning any potential tax implications of interest or earnings accruing to their Jumpstart Savings account.

13.4. Any changes to the investment policies shall apply prospectively.

13.5. If an account requires investment direction, investment direction by the account owner or designated beneficiary of an account is prohibited. Nothing in this section prohibits the program manager from offering a limited menu of portfolio options to all account owners based on risk-tolerance and potential for growth and permitting an account owner to change his or her portfolio option up to two times per year. §112‑20‑14. Contributions.

14.1. Any person may make a contribution to a Jumpstart Savings account after the account is opened, subject to applicable state and federal laws. Contributions shall be made only in cash.

14.2. Rollover Contributions.

14.2.1. Any portion of a SMART529 distribution that is deposited into a Jumpstart Savings account within 30 days of receipt of the SMART529 account distribution, is a rollover contribution to the Jumpstart Savings account and is eligible for the state tax decreasing modification according to W. Va. Code §11-21-12m(d) to the extent the distribution amount is not allowable as a deduction when arriving at the account owner’s federal adjusted gross income. Nothing in this rule governs or addresses the treatment of any such rollover contribution for federal tax purposes and the SMART529 distribution may be subject to federal tax liability and penalties.

14.2.2. Any portion of a Jumpstart Savings account distribution that is deposited into a West Virginia ABLE account within 30 days of receipt of the Jumpstart Savings account distribution, is a rollover contribution and is eligible for the state tax decreasing modification according to W. Va. Code §11-21-12m(d) to the extent the distribution amount is not allowable as a deduction when arriving at the account owner’s federal adjusted gross income. Nothing in this rule governs or addresses the treatment of any such rollover contribution for federal tax purposes and the Jumpstart distribution may be subject to federal tax liability and penalties.

14.2.3. When making a rollover contribution, the account owner shall complete the forms and make such disclosures of financial information as required by the board.

14.2.4. Account owners should consult with their own federal tax advisor concerning any potential rollover of a SMART529 or West Virginia ABLE account into a Jumpstart Savings account prior to any such rollover.

14.3. Matching Contributions. –

14.3.1. When making a matching contribution to qualify for the tax credit provided in W. Va. Code §11-21-25 or §11-24-10a, the contributing employer and the owner of the account receiving the matching contribution shall submit all information required by the board on a form provided by the board.

14.3.2. An employer may not claim the credit for a matching contribution provided in section 14.3. to an Account of which he or she is the Account Owner or Designated Beneficiary.

14.3.3. Employers should consult with their own federal tax advisor and/or legal counsel concerning any potential tax implications or other legal implications of making a matching contribution to a Jumpstart Savings account.

14.4. Any forms necessary to make a contribution, a rollover contribution, or an employer matching contribution will be made available on the website: https://wvjumpstart.com. §112‑20‑15. Distributions

15.1. Only the account owner may authorize and receive a distribution of funds (whether for a qualified expense, a non-qualified expense, or otherwise) from an account. A designated beneficiary may not authorize distribution or withdrawal of account funds unless he or she is also the account owner.

15.2. An account owner may request a distribution of funds by submitting a distribution request to the board via any method made available by the board (e.g., online or paper form). Upon receipt, the program manager shall commence processing properly submitted distribution requests as soon as reasonably practicable.

15.3. A change in the designated beneficiary of a Jumpstart Savings account is not a distribution for the purposes of this article or W. Va. Code §11‑21‑1 et seq. if the new designated beneficiary is a member of the prior designated beneficiary’s immediate family. §112‑20‑16. Qualified Expenses.

16.1. The amount of any distribution that is used to pay for a qualified expense of the account’s designated beneficiary establishes the account owner’s entitlement to the personal income tax decreasing modification authorized by W. Va. Code §11-21-12m(b) to the extent the distribution amount is not allowable as a deduction when arriving at the account owner’s federal adjusted gross income. An account owner is responsible for maintaining documentation of qualified expenditures needed for state tax reporting or in the case of a state tax audit. The board will not collect or maintain documentation of an account owner’s expenditures of moneys distributed to the account owner from a Jumpstart Savings account: Provided, That the board may request information on the use of distribution monies for the purpose of collecting program data.

16.2. The amount of any distribution that is used for qualified expenses is considered a qualified distribution. For the purposes of W. Va. Code §11-21-12m and this rule, a qualified expense includes an account distribution, or any amount thereof, expended by an account beneficiary in the taxable year of receipt of the distribution or the next succeeding taxable year that:

16.2.1. Is allowable as a federal personal income tax deduction pursuant to 26 U.S.C. § 162, as an ordinary and necessary business expense, and is incurred in carrying on a qualifying profession;

16.2.2. Is allowable as a federal personal income tax deduction pursuant to 26 U.S.C. § 195(b), as a business start-up expenditure, and is incurred in carrying on a qualifying profession; or

16.2.3. Is expended for goods, services, or other expenses that qualify for a federal personal income tax deduction for depreciation or amortization over time, pursuant to a provision of 26 U.S.C. § 161-199a and that are used to carry on a qualifying profession; or

16.2.4. Is not allowable as any one of the federal personal income tax deductions described in subdivisions 16.2.1. through 16.2.3. of this subsection and is expended for:

16.2.4.a. The purchase of tools, equipment, or supplies used exclusively in a qualifying profession;

16.2.4.b. Costs to establish a business in this state to practice a qualifying profession; or

16.2.4.c. Fees for required certification or licensure in a qualifying profession: Provided, That in no event shall any dues, fees, subscriptions, or any other payments to a labor organization constitute qualified expenses for the purposes of this article; and

16.2.4.d. Is not reimbursed by the taxpayer’s employer.

16.3. A distribution of funds from an account for any use other than qualified expenses for the designated beneficiary constitutes a non-qualified distribution and is not eligible for the state tax benefits provided in W. Va. Code §11-21-12m and is subject to an increasing modification for distributions not used for qualified expenses pursuant to W.Va. Code §11-21-12m(c). Any expense that does not meet the definition of qualified expense provided in section 16.2. of this rule is a non-qualified expense. Examples of non-qualified expenses include, but are not limited to, dues, fees, subscriptions, or any other payments to a labor organization; bad debt expenses; campaign donations; lobbying expenses; payment of federal or state property, income, or corporate taxes; payment of civil or criminal fines; the purchase of tools, equipment, or supplies for personal use; or costs to establish a business with its principal place of business located outside of the State of West Virginia. §112‑20‑17. Separate Accounting.

17.1. Separate records and accounting shall be maintained for each account established under the program.

17.2. The board or its identified program manager shall prepare an annual summary of information on the financial condition of the Jumpstart Savings Trust Fund.

17.3. The board or its identified program manager shall provide quarterly account statements to account owners.

17.4. The board shall comply with all internal and external audit requirements set forth in W. Va. Code §18-30A-1 et seq. The board shall make an annual summary on the financial condition of the College and Jumpstart Savings Administrative Account available on the website: https://wvjumpstart.com. §112‑20‑18. Confidentiality.

18.1. Individual account information, including, but not limited to, names, addresses, telephone numbers, personal identification information, amounts contributed and earnings on amounts contributed, shall be maintained as confidential, and may be disclosed only as needed to administer the program consistent with W. Va. Code §18-30A-1 et seq. or other applicable state and federal laws, or unless the person providing the information, or who is the subject of the information, executes and delivers to the board his or her written consent to disclosure.