1.1 	A bill for an act
1.2 	relating to public safety; establishing the fire safety account from revenues on fire 
1.3 	premiums and assessments; abolishing the fire insurance tax; proposing coding 
1.4 	for new law in Minnesota Statutes, chapter 299F; repealing Minnesota Statutes 
1.5 	2004, section 297I.05, subdivision 6.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [299F.012] FIRE SAFETY ACCOUNT.
1.8 		Subdivision 1.Insurance policies surcharge. (a) Except as otherwise provided 
1.9 	in subdivision 6, each insurer engaged in writing policies of homeowners insurance 
1.10 	authorized in section 60A.06, subdivision 1, clause (1)(c), or commercial fire policies 
1.11 	shall collect a surcharge equal to .75 percent of the gross premiums and assessments, less 
1.12 	return premiums, on direct business received by the company, or by its agents for it, for 
1.13 	homeowner's and commercial fire insurance policies in this state. The definitions under 
1.14 	section 297I.01 apply for purposes of this section. 
1.15 	(b) The surcharge amount collected under paragraph (a) may not be considered 
1.16 	premium for any purpose, including the computation of premium tax or agents' 
1.17 	commissions. The surcharge amount must be separately stated on either a billing or policy 
1.18 	declaration sent to an insured. Insurers shall remit the revenue derived from this section 
1.19 	at least quarterly to the Department of Revenue for deposit in the fire safety account 
1.20 	established pursuant to subdivision 2.
1.21 		Subd. 2.Fire safety account, annual transfers, allocation. A special account, to 
1.22 	be known as the fire safety account, is created in the state treasury. The account consists of 
1.23 	the proceeds under subdivision 1. $250,000 of the revenue in the account each year is 
1.24 	appropriated to the Department of Revenue to offset the cost of collecting and transferring 
1.25 	the funds. Revenue in excess of $250,000 is appropriated to the Department of Public 
2.1 	Safety and must be used for the activities and programs identified by the commissioner of 
2.2 	the Department of Public Safety as essential fire service programs within Minnesota.
2.3 		Subd. 3.Authorized programs within department. From the revenues 
2.4 	appropriated under subdivision 2, the commissioner of public safety shall expend funds 
2.5 	for the activities and programs identified by the advisory committee established under 
2.6 	subdivision 4 and recommended to the commissioner of public safety. These funds are to 
2.7 	be used to provide resources needed for identified activities and programs of the Minnesota 
2.8 	fire service and to ensure the State Fire Marshal Division responsibilities are fulfilled.
2.9 		Subd. 4.Fire service advisory committee. The Fire Service Advisory Committee 
2.10 	shall provide recommendations to the commissioner of public safety on fire service related 
2.11 	issues and shall consist of representatives of each of the following organizations: two 
2.12 	appointed by the president of the Minnesota State Fire Chiefs Association, two appointed 
2.13 	by the president of the Minnesota State Fire Department Association, two appointed by the 
2.14 	president of the Minnesota Professional Firefighters, two appointed by the president of the 
2.15 	League of Minnesota Cities, one appointed by the president of the Minnesota Association 
2.16 	of Townships, one appointed by the president of the Insurance Federation of Minnesota, 
2.17 	one appointed jointly by the presidents of the Minnesota Chapter of the International 
2.18 	Association of Arson Investigators and the Fire Marshals Association of Minnesota, and 
2.19 	the commissioner of public safety or the commissioner's designee. The commissioner of 
2.20 	public safety must ensure that at least three of the members of the advisory committee 
2.21 	work and reside in counties outside of the seven-county metropolitan area. The committee 
2.22 	shall provide funding recommendations to the commissioner of public safety from the 
2.23 	fire safety fund for the following purposes:
2.24 	(1) for the Minnesota Board of Firefighter Training and Education;
2.25 	(2) for programs and staffing for the State Fire Marshal Division; and
2.26 	(3) for fire-related regional response team programs and any other fire service 
2.27 	programs that have the potential for statewide impact.
2.28 		Subd. 5.Report; accounting; carryover. The commissioner of public safety shall, 
2.29 	by December 1 of each year, (1) provide an accounting of how the funds in the fire safety 
2.30 	account were spent in the preceding fiscal year and (2) report any funds not spent in a 
2.31 	fiscal year to the chairs of the committees of the house of representatives and the senate 
2.32 	having jurisdiction over public safety finance. Money in the account does not cancel but 
2.33 	remains available for expenditures for the programs identified in subdivisions 3 and 4.
2.34 		Subd. 6.Exemptions. (a) This section does not apply to a farmers' mutual fire 
2.35 	insurance company or township mutual fire insurance company in Minnesota organized 
2.36 	under chapter 67A.
3.1 	(b) An insurer described in section 297I.05, subdivisions 3 and 4, authorized to 
3.2 	transact business in Minnesota shall elect to remit to the Department of Revenue for 
3.3 	deposit in the fire safety account either (1) the surcharge amount collected under this 
3.4 	section or (2) a tax of one-half of one percent on the gross fire premiums and assessments, 
3.5 	less return premiums, on all direct business received by the insurer during the year.
3.6 	(c) For purposes of this subdivision, "gross fire premiums and assessments" includes 
3.7 	premiums on policies covering fire risks only on automobiles, whether written under 
3.8 	floater form or otherwise.

3.9 	Sec. 2.  REPEALER.
 3.10 	Minnesota Statutes 2004, section 297I.05, subdivision 6, is repealed.

3.11 	Sec. 3. EFFECTIVE DATE; APPLICATION.
 3.12 	Sections 1 and 2 are effective July 1, 2007, and apply to policies written or renewed 
3.13 	on or after that date.