H. B. 2144
(By Delegates Varner, Fragale, Pethtel, Ennis, Hartman,
Eldridge, Swartzmiller, Kominar and Shaver)
[Introduced February 9, 2009; referred to the
Committee on Finance.]
A BILL to amend and reenact §33-3-33 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 §33-3-33 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; 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 July 1, 1992,
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 June
30, 2005, the surcharge shall be imposed as specified in
subdivisions (2) and (3) of this subsection.
(2) After June 30, 2005, through December 31, 2005, 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 July 1, 2005, 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 December 31, 2005, 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) 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 25th 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 March 1, 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 $100.00 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 June 30, 2005, the money received from the
surcharge shall be distributed as specified in subdivisions (2) and
(3) of this subsection.
After June 30, 2009, the money received
from the surcharge is distributed as specified in subdivision (4)
of this subsection.
(2) (A) After June 30, 2005, through December 31, 2005, 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 November
1, 2005. After October 31, 2005, through December 31, 2005, the
remaining portion shall be transferred to the special account in
the State Treasury, known as the Municipal Pensions and Protection
Fund.
(3) After December 31, 2005, 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 June 30, 2009, 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 June 30, 2009, 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.
(4) (5) Before each distribution date to volunteer fire
companies or departments, the State
Fire Marshal Legislative
Auditor shall is to 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 Legislative Auditor 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 Legislative Auditor 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;
(ii) The West Virginia State Fireman's Association is the same
entity known as the West Virginia State Fireman's Association in
existence on February 1, 2006;
(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 June 30, 2009, for which the association receives funds under
this subsection;
(v) The association has expended prior funds received under
this subsection in compliance with the expenditure schedule in form
submitted to and approved by the Legislative Auditor as provided by
this subdivision; and
(vi) The Legislative Auditor has approved the expenditure
schedule for the funds to be received as meeting the requirements
of paragraph (B) of this subdivision.
(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 nontraining expenses associated with any meeting of the association. No more than 20% of the money distributed to any
association may be expended for its administration expenses.
Before an association may receive any funds distributed under the
provisions of this subsection, the association shall submit to the
Legislative Auditor a schedule of proposed expenditures of the
funds with sufficient information for the Legislative Auditor to
determine in his or her discretion whether the requirements of this
paragraph are met.
(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.
NOTE: The purpose of this bill is to provide State Treasury,
Fire Protection Fund revenue to the West Virginia State Fire
Chiefs' Association and the West Virginia State Fireman's
Association, to be used for both associations' administration and
training expenses, and to exempt both associations from eligibility
and spending requirements.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.