SF 2210

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to public safety; creating fire service
funding act; establishing fire safety surcharge on
fire premiums and assessments, with exceptions;
abolishing fire insurance tax, with exceptions;
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 PROGRAM; INSURANCE
SURCHARGE, ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Fire safety surcharge. new text end

new text begin 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 at the rate of $5 for each
homeowner's insurance policy for 12 months' coverage and $86 for
each commercial fire insurance policy for 12 months' coverage,
issued or renewed in this state. The surcharge may not be
considered premium for any purpose, including the computation of
premium tax or agents' commissions. Insurers shall remit the
revenue derived from this surcharge at least quarterly to the
commissioner of public safety for deposit in the fire safety
account.
new text end

new text begin Subd. 2. new text end

new text begin Fire safety account; annual transfers. 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 of the surcharge imposed under subdivision 1. Of the
revenue in the account, $4,950,000 each year must be transferred
to the general fund to offset the $250,000 cost of collecting
and transferring the funds and the $4,700,000 in lost revenue
from abolishing the former fire insurance tax; $1,900,000 must
be transferred to the Division of Homeland Security Emergency
Management in the Department of Public Safety; 70 percent of the
revenue over $6,850,000 must be transferred to the Division of
Fire Marshal in the Department of Public Safety to be used for
programs identified in subdivision 4; and 30 percent of the
revenue over $6,850,000 must be transferred to the commissioner
of public safety to be disbursed for training and education
programs identified in subdivision 5.
new text end

new text begin Subd. 3. new text end

new text begin Authorized programs within division of homeland
security emergency management. new text end

new text begin From the revenues transferred to
the division under subdivision 2, the commissioner of public
safety, through the department's Division of Homeland Security
Emergency Management, may expend up to $900,000 for hazardous
materials response teams' activities and programs and up to
$1,000,000 for state structural collapse teams' activities and
programs.
new text end

new text begin Subd. 4. new text end

new text begin Authorized programs within division of fire
marshal. new text end

new text begin (a) From the revenues transferred to the division
under subdivision 2, the commissioner of public safety, through
the department's Division of Fire Marshal, may expend funds for
the operation of the division in conducting the duties
identified in this chapter, such as fully staffing
investigators; code development, adoption, and enforcement
specialists; fire code compliance inspectors; and a public
educator.
new text end

new text begin (b) From the revenues transferred to the division under
subdivision 2, the fire marshal may expend up to $4,400,000 for
the division's activities and programs.
new text end

new text begin (c) In addition, revenues may be distributed in the form of
grants for the following purposes: Minnesota Fire Service
Certification Board; public education and public service
promotions; Metro Regional Communication Center; Bureau of
Criminal Apprehension forensic scientist specific to arson
evidence analysis; assistant attorney general to aid, educate,
and assist county prosecutors in arson prosecution; secondary
public safety answering points; critical incident stress
management teams; public safety officer benefit, as provided for
in the public safety officer's survivor benefits program under
sections 299A.41 to 299A.47; and the Minnesota Fire Foundation
Board for constructing the firefighter memorial.
new text end

new text begin Subd. 5. new text end

new text begin Authorized programs for fire training and
education. new text end

new text begin The commissioner of public safety may expend up to
five percent of the revenues from the surcharge collected and
transferred to the commissioner for training and education
programs pursuant to subdivision 2, for administrative costs.
The commissioner shall make the remaining revenues available to
the Fire Training Board, which shall operate the program and
which is hereby authorized to spend revenue for the following
purposes: all operational costs of the Fire Training Board
including, but not limited to, the process to develop and
certify qualified instructors and a curriculum for all fire
training programs; development of a highway safety program for
emergency responders; an evaluation system for programs,
curriculum, and instructors that allows feedback from students;
tuition and payroll reimbursements to organized fire departments
who utilize board-approved programs and instructors; and grants
to fund firefighter training conferences and seminars as
submitted by organized fire departments, Minnesota-registered
fire service organizations, and divisions within the Department
of Public Safety.
new text end

new text begin Subd. 6. new text end

new text begin Carryover. new text end

new text begin Any funds not spent in a fiscal year
must be reported to the chairs of the committees of the house of
representatives and senate having jurisdiction over public
safety finance. Money in the fund does not cancel but remains
available for expenditure for the programs identified in
subdivisions 3, 4, and 5.
new text end

new text begin Subd. 7. 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 fire
insurance company in Minnesota.
new text end

new text begin (b) A reinsurer, as defined in section 60A.02, subdivision
24, domiciled in Minnesota and doing business only in Minnesota,
shall elect to remit to the fire safety account either (1) the
surcharge to be 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 reinsurer during the year.
new text end

new text begin (c) An insurer described in section 297I.05, subdivision 4,
domiciled in Minnesota and doing business only in Minnesota
shall elect to remit to the fire safety account either (1) the
surcharge to be 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 (d) 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, is
repealed.
new text end

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

new text begin Section 1 is effective January 1, 2006, for policies
written or renewed on or after that date.
new text end