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Introduced Version Senate Bill 206 History

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sb206 intr
Senate Bill No. 206

(By Senators Kessler, Jenkins, Unger, Plymale and Hunter)

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[Introduced January 11, 2008; referred to the Committee on Banking and Insurance; and then to the Committee on Finance.]

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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, the West Virginia State Fire Chiefs' Association and the West Virginia State Fireman's Association; special fund; allocation of proceeds.

(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 eight, 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 June, two thousand five eight, 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 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 eight, 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 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 eight, 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 eight, 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 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 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;
(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 twenty percent 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 under §8-15-8a and §8-15-8b.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
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