HF 2860

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 04/23/2012 12:36pm

A bill for an act
relating to public safety; regulating the fire safety account; appropriating money
for fire safety services; amending Minnesota Statutes 2010, sections 297I.06,
subdivision 1; 299F.012, subdivision 1, by adding a subdivision; Minnesota
Statutes 2011 Supplement, sections 16A.152, subdivision 2; 297I.06, subdivision
3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

FIRE SAFETY ACCOUNT

Section 1.

Minnesota Statutes 2011 Supplement, section 16A.152, subdivision 2,
is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of management and budget determines
that there will be a positive unrestricted budgetary general fund balance at the close of
the biennium, the commissioner of management and budget must allocate money to the
following accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account
reaches $653,000,000;

(3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve;

(4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, by the same amount; new text begin and
new text end

(5) to the state airports fund, the amount necessary to restore the amount transferred
from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
subdivision 5 deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (6) to the fire safety account in the special revenue fund, the amount necessary to
restore transfers from the account to the general fund made in Laws 2010.
deleted text end

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar
amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
education. The commissioner of education shall increase the aid payment percentage and
reduce the property tax shift percentage by these amounts and apply those reductions to
the current fiscal year and thereafter.

Sec. 2.

Minnesota Statutes 2010, section 297I.06, subdivision 1, is amended to read:

Subdivision 1.

Insurance policies surcharge.

(a) Except as otherwise provided in
subdivision 2, each licensed insurer engaged in writing policies of homeowner's insurance
authorized in section 60A.06, subdivision 1, clause (1)(c), or commercial fire policies or
commercial nonliability policies shall collect a surcharge new text begin as provided in this paragraph.
Through June 30, 2012, the surcharge is new text end equal to 0.65 percent of the gross premiums
and assessments, less return premiums, on direct business received by the company, or
by its agents for it, for homeowner's insurance policies, commercial fire policies, and
commercial nonliability insurance policies in this state new text begin and beginning July 1, 2013, the
surcharge is reduced to 0.5 percent new text end .

(b) The surcharge amount collected under paragraph (a) or subdivision 2, paragraph
(b), may not be considered premium for any other purpose. The surcharge amount
under paragraph (a) must be separately stated on either a billing or policy declaration or
document containing similar information sent to an insured.

(c) Amounts collected by the commissioner under this section must be deposited in
the fire safety account established pursuant to subdivision 3.

Sec. 3.

Minnesota Statutes 2011 Supplement, section 297I.06, subdivision 3, is
amended to read:

Subd. 3.

Fire safety account, annual transfers, allocation.

A special account, to
be known as the fire safety account, is created in the state treasury. The account consists of
the proceeds under subdivisions 1 and 2. $4,227,000 in fiscal year 2012, $4,228,000 in
fiscal year 2013, and $2,368,000 in deleted text begin each year thereafter deleted text end new text begin fiscal year 2012 and fiscal year
2013 new text end is transferred from the fire safety account in the special revenue fund to the general
fund to offset the loss of revenue caused by the repeal of the one-half of one percent
tax on fire insurance premiums.

Sec. 4.

Minnesota Statutes 2010, section 299F.012, subdivision 1, is amended to read:

Subdivision 1.

Authorized programs within department.

From the revenues
appropriated from the fire safety account, established under section 297I.06, subdivision
3, the commissioner of public safety may expend funds for the activities and programs
identified by the advisory committee established under subdivision 2 and recommended
to the commissioner of public safety new text begin , consistent with the distribution of funds under
subdivision 1a new text end . The commissioner shall not expend funds without the recommendation
of the advisory committee established under subdivision 2. These funds are to be used
to provide resources needed for identified activities and programs of the Minnesota fire
service and to ensure the State Fire Marshal Division responsibilities are fulfilled.

Sec. 5.

Minnesota Statutes 2010, section 299F.012, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Distribution of fire safety account. new text end

new text begin (a) On June 30, 2013, any unallocated
balance in the fire safety account under section 297I.06, subdivision 3, is appropriated to
the commissioner of public safety to be allocated as follows: 45 percent of the unallocated
balance for the State Fire Marshal Division, and 55 percent to be distributed according to
the recommendations of the advisory committee under subdivision 2 for the Minnesota
Board of Firefighter Training and Education and for fire-related regional response team
programs and other fire service programs with potential for statewide impact.
new text end

new text begin (b) Beginning in fiscal year 2014 and thereafter, the revenue in the fire safety
account under section 297I.06, subdivision 3, is appropriated to the commissioner of
public safety to be allocated as follows: 45 percent of the unallocated balance for the State
Fire Marshal Division, and 55 percent to be distributed according to the recommendations
of the advisory committee under subdivision 2 for the Minnesota Board of Firefighter
Training and Education and for fire-related regional response team programs and other
fire service programs with potential for statewide impact.
new text end

ARTICLE 2

FIRE SAFETY SERVICES APPROPRIATION

Section 1. new text begin FIRE SAFETY; APPROPRIATION.
new text end

new text begin $4,500,000 is appropriated in fiscal year 2013 from the fire safety account in the
special revenue fund to the commissioner of public safety for activities and programs
under Minnesota Statutes, section 299F.012. This is a onetime appropriation.
new text end