ENGROSSED
COMMITTEE SUBSTITUTE
FOR
H. B. 4351
(By Mr. Speaker, Mr. Kiss and Delegates Varner, Kominar,
Stemple, Pethtel, Perry, Cann, Michael, Staton and Beach)
(Originating in the Committee on Finance)
[February 23, 2006]
A BILL to amend and reenact º33-3-33 of the Code of West Virginia,
1931, as amended, relating to providing for administration and
training expenses from Fire Protection Fund revenue to the
West Virginia State Fire Chiefs Association and the West
Virginia State Fireman's Association; eligibility and
requirements for receipt of funds; and exempting both
associations from eligibility and spending requirements
provided for volunteer and part-volunteer fire company or
department.
Be it enacted by the Legislature of West Virginia:
That º33-3-33 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 3. LICENSING, FEES AND TAXATION OF INSURERS.
§33-3-33. Surcharge on fire and casualty insurance policies to
benefit volunteer and part-volunteer fire
departments, the West Virginia State Fire Chiefs Association and the West Virginia State Fireman's
Association; Public Employees Insurance Agency and
municipal pension plans; special fund created;
allocation of proceeds; effective date.
(a)(1) For the purpose of providing additional revenue for
volunteer fire departments, part-volunteer fire departments, and
certain retired teachers and the teachers retirement reserve fund,
there is hereby authorized and imposed on and after the first day
of July, one thousand nine hundred ninety-two, on the policyholder
of any fire insurance policy or casualty insurance policy issued by
any insurer, authorized or unauthorized, or by any risk retention
group, a policy surcharge equal to one percent of the taxable
premium for each such policy. After the thirtieth day of June, two
thousand five, the surcharge shall be imposed as specified in
subdivisions (2) and (3) of this subsection. After the thirtieth
day of June, two thousand six, the surcharge shall be imposed as
specified in subdivision (4) of this subsection.
(2) After the thirtieth day of June, two thousand five,
through the thirty-first day of December, two thousand five, for
the purpose of providing additional revenue for volunteer fire
departments, part-volunteer fire departments, and to provide
additional revenue to the Public Employees Insurance Agency and
municipal pension plans, there is hereby authorized and imposed on
and after the first day of July, two thousand five, on the
policyholder of any fire insurance policy or casualty insurance policy issued by any insurer, authorized or unauthorized, or by any
risk retention group, a policy surcharge equal to one percent of
the taxable premium for each such policy.
(3) After the thirty-first day of December, two thousand five,
for the purpose of providing additional revenue for volunteer fire
departments and part-volunteer fire departments, there is hereby
authorized and imposed on the policyholder of any fire insurance
policy or casualty insurance policy issued by any insurer,
authorized or unauthorized, or by any risk retention group, a
policy surcharge equal to fifty-five one hundredths of one percent
of the taxable premium for each such policy.
(4) After the thirtieth day of June, two thousand six, for the
purpose of providing additional revenue for volunteer fire
departments and part-volunteer fire departments, the West Virginia
State Fire Chiefs Association and the West Virginia State Fireman's
Association, there is hereby authorized and imposed on the
policyholder of any fire insurance policy or casualty insurance
policy issued by any insurer, authorized or unauthorized, or by any
risk retention group, a policy surcharge equal to fifty-five one
hundredths of one percent of the taxable premium for each such
policy.
(5) For purposes of this section, casualty insurance may not
include insurance on the life of a debtor pursuant to or in
connection with a specific loan or other credit transaction or
insurance on a debtor to provide indemnity for payments becoming
due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy. The policy surcharge may not
be subject to premium taxes, agent commissions or any other
assessment against premiums.
(b) The policy surcharge shall be collected and remitted to
the commissioner by the insurer, or in the case of surplus lines
coverage, by the surplus lines licensee, or if the policy is issued
by a risk retention group, by the risk retention group. The amount
required to be collected under this section shall be remitted to
the commissioner on a quarterly basis on or before the twenty-fifth
day of the month succeeding the end of the quarter in which they
are collected, except for the fourth quarter for which the
surcharge shall be remitted on or before the first day of March of
the succeeding year.
(c) Any person failing or refusing to collect and remit to the
commissioner any policy surcharge and whose surcharge payments are
not postmarked by the due dates for quarterly filing is liable for
a civil penalty of up to one hundred dollars for each day of
delinquency, to be assessed by the commissioner. The commissioner
may suspend the insurer, broker or risk retention group until all
surcharge payments and penalties are remitted in full to the
commissioner.
(d) (1) All money from the policy surcharge shall be collected
by the commissioner who shall disburse the money received from the
surcharge into a special account in the State Treasury, designated
the Fire Protection Fund. The net proceeds of this portion of the
tax and the interest thereon, after appropriation by the Legislature, shall be distributed quarterly on the first day of the
months of January, April, July and October to each volunteer fire
company or department on an equal share basis by the State
Treasurer. After the thirtieth day of June, two thousand five, the
money received from the surcharge shall be distributed as specified
in subdivisions (2) and (3) of this subsection. After the
thirtieth day of June, two thousand six, the money received from
the surcharge shall be distributed as specified in subdivision (4)
of this subsection.
(2)(A) After the thirtieth day of June, two thousand five,
through the thirty-first day of December, two thousand five, all
money from the policy surcharge shall be collected by the
commissioner who shall disburse one half of the money received from
the surcharge into the Fire Protection Fund for distribution as
provided in subdivision (1) of this subsection.
(B) The remaining portion of moneys collected shall be
transferred into the fund in the State Treasury of the Public
Employees Insurance Agency into which are deposited the
proportionate shares made by agencies of this state of the Public
Employees Insurance Agency costs of those agencies, until the first
day of November, two thousand five. After the thirty-first day of
October, two thousand five, through the thirty-first day of
December, two thousand five, the remain remaining portion shall be
transferred to the special account in the State Treasury, known as
the Municipal Pensions and Protection Fund.
(3) After the thirty-first day of December, two thousand five, all money from the policy surcharge shall be collected by the
commissioner who shall disburse all of the money received from the
surcharge into the Fire Protection Fund for distribution as
provided in subdivision (1) of this subsection.
(4)(A) After the thirtieth day of June, two thousand six, all
money from the policy surcharge shall be collected by the
commissioner who shall disburse all of the money received from the
surcharge into the Fire Protection Fund for distribution as
provided in this subsection.
(B) After the thirtieth day of June, two thousand six, the
money in the Fire Protection Fund and the earnings thereon, after
appropriation by the Legislature, shall be distributed quarterly on
the first day of the months of January, April, July and October to
each volunteer fire company or department, the West Virginia State
Fire Chiefs Association and the West Virginia State Fireman's
Association on an equal share basis by the State Treasurer, subject
to the provisions of subsection (6) of this section.
(5) Before each distribution date to volunteer fire companies
or departments, the State Fire Marshal shall report to the State
Treasurer the names and addresses of all volunteer and
part-volunteer fire companies and departments within the state
which meet the eligibility requirements established in section
eight-a, article fifteen, chapter eight of this code.
(6)(A) Before each distribution date to the West Virginia
State Fire Chiefs Association or the West Virginia State Fireman's
Association, the State Fire Marshal shall report to the State Treasurer the names and addresses of the associations which meet
the eligibility requirements of this subsection. An association is
eligible to receive the funds to be distributed under this
subsection if the State Fire Marshal determines the association
meets the following requirements:
(i) The West Virginia State Fire Chiefs Association is the
same entity known as the West Virginia State Fire Chiefs
Association in existence on the first day of February, two thousand
six;
(ii) The West Virginia State Fireman's Association is the same
entity known as the West Virginia State Fireman's Association in
existence on the first day of February, two thousand six;
(iii) The association holds a valid business registration
certificate issued pursuant to the provisions of article twelve,
chapter eleven of this code or is registered as a voluntary
association with the office of the secretary of state pursuant to
the provisions of article nine-a, chapter forty-seven of this code;
(iv) The association does not engage in any electioneering
communications or in any activities for political purposes, or make
any contributions as those terms are defined in section one-a,
article eight, chapter three of this code during any period after
the thirtieth day of June, two thousand six, for which the
association receives funds under this subsection; and
(v) The association has reported its expenditure of prior
funds received under this subsection in the manner required of
volunteer and part-volunteer fire departments receiving formula distributions under this section by the provisions of section
fourteen, article four, chapter twelve of this code.
(B) Funds received by an association described in this
subdivision shall be expended only for the purposes of
administration of the association and expenses incurred to provide
training for its membership that is relevant to the purposes for
which the association is formed. Administration expenses include
any non-training expenses associated with any meeting of the
association. No more than twenty per cent of the money distributed
to any association may be expended for its administration expenses.
(e) The Except for the West Virginia State Fire Chiefs
Association and the West Virginia State Fireman's Association, the
allocation, distribution and use of revenues provided in the Fire
Protection Fund are subject to the provisions of sections eight-a
and eight-b, article fifteen, chapter eight of this code.