HF 2916

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to public safety; establishing the fire safety account from revenues on
fire premiums and assessments; abolishing the fire insurance tax; establishing a
fire insurance policyholder surcharge; appropriating money; proposing coding
for new law in Minnesota Statutes, chapter 299F; repealing Minnesota Statutes
2004, section 297I.05, subdivision 6.

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

Section 1.

new text begin [299F.012] FIRE SAFETY ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Insurance policies surcharge. new text end

new text begin (a) Except as otherwise provided
in subdivision 6, each insurer engaged in writing policies of homeowners insurance
authorized in section 60A.06, subdivision 1, clause (1)(c), or commercial fire policies
shall collect a surcharge equal to ... 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 and commercial fire insurance policies in this state. The definitions under
section 297I.01 apply for purposes of this section.
new text end

new text begin (b) The surcharge amount collected under paragraph (a) may not be considered
premium for any purpose, including the computation of premium tax or agents'
commissions. The surcharge amount must be separately stated on either a billing or policy
declaration sent to an insured. Insurers shall remit the revenue derived from this section
at least quarterly to the Department of Revenue for deposit in the fire safety account
established pursuant to subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Fire safety account, annual transfers, allocation. new text end

new text begin A special account, to
be known as the fire safety account, is created in the state treasury. The account consists of
the proceeds under subdivision 1. $250,000 of the revenue in the account each year is
appropriated to the Department of Revenue to offset the cost of collecting and transferring
the funds. Revenue in excess of $250,000 is appropriated to the Department of Public
Safety and must be used for the activities and programs identified by the commissioner of
the Department of Public Safety as essential fire service programs within Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Authorized programs within department. new text end

new text begin From the revenues
appropriated under subdivision 2, the commissioner of public safety shall expend funds
for the activities and programs identified by the advisory committee established under
subdivision 4 and recommended to the commissioner of public safety. 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.
new text end

new text begin Subd. 4. new text end

new text begin Fire service advisory committee. new text end

new text begin The Fire Service Advisory Committee
shall provide recommendations to the commissioner of public safety on fire service related
issues and shall consist of representatives of each of the following organizations: two
appointed by the president of the Minnesota State Fire Chiefs Association, two appointed
by the president of the Minnesota State Fire Department Association, two appointed by the
president of the Minnesota Professional Firefighters, two appointed by the president of the
League of Minnesota Cities, one appointed by the president of the Minnesota Association
of Townships, one appointed by the president of the Insurance Federation of Minnesota,
one appointed jointly by the presidents of the Minnesota Chapter of the International
Association of Arson Investigators and the Fire Marshals Association of Minnesota, and
the commissioner of public safety or the commissioner's designee. The commissioner of
public safety must ensure that at least three of the members of the advisory committee
work and reside in counties outside of the seven-county metropolitan area. The committee
shall provide funding recommendations to the commissioner of public safety from the
fire safety fund for the following purposes:
new text end

new text begin (1) for the Minnesota Board of Firefighter Training and Education;
new text end

new text begin (2) for programs and staffing for the State Fire Marshal Division; and
new text end

new text begin (3) for fire-related regional response team programs and any other fire service
programs that have the potential for statewide impact.
new text end

new text begin Subd. 5. new text end

new text begin Report; accounting; carryover. new text end

new text begin The commissioner of public safety shall,
by December 1 of each year, (1) provide an accounting of how the funds in the fire safety
account were spent in the preceding fiscal year and (2) report any funds not spent in a
fiscal year to the chairs of the committees of the house of representatives and the senate
having jurisdiction over public safety finance. Money in the account does not cancel but
remains available for expenditures for the programs identified in subdivisions 3 and 4.
new text end

new text begin Subd. 6. new text end

new text begin Exemptions. new text end

new text begin (a) This section does not apply to a farmers' mutual fire
insurance company or township mutual fire insurance company in Minnesota organized
under chapter 67A.
new text end

new text begin (b) An insurer described in section 297I.05, subdivisions 3 and 4, authorized to
transact business in Minnesota shall elect to remit to the Department of Revenue for
deposit in the fire safety account either (1) the surcharge amount collected under this
section or (2) a tax of one-half of one percent on the gross fire premiums and assessments,
less return premiums, on all direct business received by the insurer during the year.
new text end

new text begin (c) For purposes of this subdivision, "gross fire premiums and assessments" includes
premiums on policies covering fire risks only on automobiles, whether written under
floater form or otherwise.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 297I.05, subdivision 6, new text end new text begin is repealed.
new text end

Sec. 3. new text begin EFFECTIVE DATE; APPLICATION.
new text end

new text begin Sections 1 and 2 are effective July 1, 2007, and apply to policies written or renewed
on or after that date.
new text end