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Minnesota Legislature

Office of the Revisor of Statutes

SF 2941

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

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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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; amending
Minnesota Statutes 2004, section 297I.30, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapters 297I; 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 [297I.06] SURCHARGES ON FIRE SAFETY PREMIUMS.
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 2, each 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 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 end

new text begin (b) The surcharge amount collected under paragraph (a) may not be considered
premium for any other purpose. The surcharge amount must be separately stated on either
a billing or policy declaration sent to an insured.
new text end

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

new text begin Subd. 2. 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 surcharge of one-half of one percent on the gross fire premiums and
assessments, less return premiums, on all direct business received by the insurer or agents
of the insurer in Minnesota, in cash or otherwise, 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 or under
floater form or otherwise.
new text end

new text begin Subd. 3. 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 subdivisions 1 and 2. $468,000 in fiscal year 2008 and $2,268,000 in
each year thereafter 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. The general fund base appropriation for the fire
marshal program is reduced by $2,832,000 in fiscal year 2008 and each year thereafter.
The base funding for the fire marshal program from the fire safety account in the special
revenue fund shall be $2,832,000 in fiscal year 2008 and each year thereafter.
new text end

Sec. 2.

Minnesota Statutes 2004, section 297I.30, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Fire insurance surcharge. new text end

new text begin On or before May 15, August 15, November
15, and February 15 of each year, every insurer required to pay the surcharge under section
297I.06, subdivisions 1 and 2, shall file a return with the commissioner for the preceding
three-month period ending March 31, June 30, September 30, and December 31, setting
forth any information the commissioner reasonably requires on forms prescribed by the
commissioner.
new text end

Sec. 3.

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

new text begin Subdivision 1. new text end

new text begin Authorized programs within department. new text end

new text begin 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. 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.
new text end

new text begin Subd. 2. 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 Fire Fighters, 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. 3. 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 1 and 2.
new text end

Sec. 4. 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. 5. new text beginEFFECTIVE DATE; APPLICATION.
new text end

new text begin Sections 1 to 4 are effective July 1, 2007, and apply to policies written or renewed
on or after that date.
new text end