SF 2941

as introduced - 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; 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. 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 policies shall collect $5.25 for each
homeowner's insurance policy and the following assessment for commercial insurance
policies:
new text end

new text begin (1) for premiums of under $300 per annum, $12.50;
new text end

new text begin (2) for premiums of $300 to $1,200 per annum, $25; and
new text end

new text begin (3) for premiums of over $1,200 per annum, $50.
new text end

new text begin (b) The amount collected under paragraph (a) may not be considered premium
for any purpose, including the computation of premium tax or agents' commissions.
The 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 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 Carryover. new text end

new text begin The commissioner of public safety shall 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 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