1.1 	A bill for an act
1.2 	relating to public safety; creating fire service
1.3 	funding act; establishing fire safety surcharge on
1.4 	fire premiums and assessments, with exceptions;
1.5 	abolishing fire insurance tax, with exceptions;
1.6 	proposing coding for new law in Minnesota Statutes,
1.7 	chapter 299F; repealing Minnesota Statutes 2004,
1.8 	section 297I.05, subdivision 6.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. [299F.012] FIRE SAFETY PROGRAM; INSURANCE
1.11 	SURCHARGE, ACCOUNT.
1.12 		Subdivision 1.Fire safety surcharge. Except as
1.13 	otherwise provided in subdivision 6, each insurer engaged in
1.14 	writing policies of homeowners insurance authorized in section
1.15 	60A.06, subdivision 1, clause (1)(c), or commercial fire
1.16 	policies shall collect a surcharge at the rate of $5 for each
1.17 	homeowner's insurance policy for 12 months' coverage and $86 for
1.18 	each commercial fire insurance policy for 12 months' coverage,
1.19 	issued or renewed in this state.  The surcharge may not be
1.20 	considered premium for any purpose, including the computation of
1.21 	premium tax or agents' commissions.  Insurers shall remit the
1.22 	revenue derived from this surcharge at least quarterly to the
1.23 	commissioner of public safety for deposit in the fire safety
1.24 	account.
1.25 		Subd. 2.Fire safety account; annual transfers. A
1.26 	special account, to be known as the fire safety account, is
1.27 	created in the state treasury.  The account consists of the
2.1 	proceeds of the surcharge imposed under subdivision 1.  Of the
2.2 	revenue in the account, $4,950,000 each year must be transferred
2.3 	to the general fund to offset the $250,000 cost of collecting
2.4 	and transferring the funds and the $4,700,000 in lost revenue
2.5 	from abolishing the former fire insurance tax; $1,900,000 must
2.6 	be transferred to the Division of Homeland Security Emergency
2.7 	Management in the Department of Public Safety; 70 percent of the
2.8 	revenue over $6,850,000 must be transferred to the Division of
2.9 	Fire Marshal in the Department of Public Safety to be used for
2.10 	programs identified in subdivision 4; and 30 percent of the
2.11 	revenue over $6,850,000 must be transferred to the commissioner
2.12 	of public safety to be disbursed for training and education
2.13 	programs identified in subdivision 5.
2.14 		Subd. 3.Authorized programs within division of homeland
2.15 	security emergency management. From the revenues transferred to
2.16 	the division under subdivision 2, the commissioner of public
2.17 	safety, through the department's Division of Homeland Security
2.18 	Emergency Management, may expend up to $900,000 for hazardous
2.19 	materials response teams' activities and programs and up to
2.20 	$1,000,000 for state structural collapse teams' activities and
2.21 	programs.
2.22 		Subd. 4.Authorized programs within division of fire
2.23 	marshal. (a) From the revenues transferred to the division
2.24 	under subdivision 2, the commissioner of public safety, through
2.25 	the department's Division of Fire Marshal, may expend funds for
2.26 	the operation of the division in conducting the duties
2.27 	identified in this chapter, such as fully staffing
2.28 	investigators; code development, adoption, and enforcement
2.29 	specialists; fire code compliance inspectors; and a public
2.30 	educator.
2.31 	(b) From the revenues transferred to the division under
2.32 	subdivision 2, the fire marshal may expend up to $4,400,000 for
2.33 	the division's activities and programs.
2.34 	(c) In addition, revenues may be distributed in the form of
2.35 	grants for the following purposes:  Minnesota Fire Service
2.36 	Certification Board; public education and public service
3.1 	promotions; Metro Regional Communication Center; Bureau of
3.2 	Criminal Apprehension forensic scientist specific to arson
3.3 	evidence analysis; assistant attorney general to aid, educate,
3.4 	and assist county prosecutors in arson prosecution; secondary
3.5 	public safety answering points; critical incident stress
3.6 	management teams; public safety officer benefit, as provided for
3.7 	in the public safety officer's survivor benefits program under
3.8 	sections 299A.41 to 299A.47; and the Minnesota Fire Foundation
3.9 	Board for constructing the firefighter memorial.
3.10 		Subd. 5.Authorized programs for fire training and
3.11 	education. The commissioner of public safety may expend up to
3.12 	five percent of the revenues from the surcharge collected and
3.13 	transferred to the commissioner for training and education
3.14 	programs pursuant to subdivision 2, for administrative costs.
3.15 	The commissioner shall make the remaining revenues available to
3.16 	the Fire Training Board, which shall operate the program and
3.17 	which is hereby authorized to spend revenue for the following
3.18 	purposes:  all operational costs of the Fire Training Board
3.19 	including, but not limited to, the process to develop and
3.20 	certify qualified instructors and a curriculum for all fire
3.21 	training programs; development of a highway safety program for
3.22 	emergency responders; an evaluation system for programs,
3.23 	curriculum, and instructors that allows feedback from students;
3.24 	tuition and payroll reimbursements to organized fire departments
3.25 	who utilize board-approved programs and instructors; and grants
3.26 	to fund firefighter training conferences and seminars as
3.27 	submitted by organized fire departments, Minnesota-registered
3.28 	fire service organizations, and divisions within the Department
3.29 	of Public Safety.
3.30 		Subd. 6.Carryover. Any funds not spent in a fiscal year
3.31 	must be reported to the chairs of the committees of the house of
3.32 	representatives and senate having jurisdiction over public
3.33 	safety finance.  Money in the fund does not cancel but remains
3.34 	available for expenditure for the programs identified in
3.35 	subdivisions 3, 4, and 5.
3.36 		Subd. 7.Exemptions. (a) This section does not apply to
4.1 	a farmers' mutual fire insurance company or township fire
4.2 	insurance company in Minnesota.
4.3 	(b) A reinsurer, as defined in section 60A.02, subdivision
4.4 	24, domiciled in Minnesota and doing business only in Minnesota,
4.5 	shall elect to remit to the fire safety account either (1) the
4.6 	surcharge to be collected under this section or (2) a tax of
4.7 	one-half of one percent on the gross fire premiums and
4.8 	assessments, less return premiums, on all direct business
4.9 	received by the reinsurer during the year.
4.10 	(c) An insurer described in section 297I.05, subdivision 4,
4.11 	domiciled in Minnesota and doing business only in Minnesota
4.12 	shall elect to remit to the fire safety account either (1) the
4.13 	surcharge to be collected under this section or (2) a tax of
4.14 	one-half of one percent on the gross fire premiums and
4.15 	assessments, less return premiums, on all direct business
4.16 	received by the insurer during the year.
4.17 	(d) For purposes of this subdivision, "gross fire premiums
4.18 	and assessments" includes premiums on policies covering fire
4.19 	risks only on automobiles, whether written under floater form or
4.20 	otherwise.

4.21 	Sec. 2. REPEALER.
 4.22 	Minnesota Statutes 2004, section 297I.05, subdivision 6, is
4.23 	repealed.

4.24 	Sec. 3. EFFECTIVE DATE.
 4.25 	Section 1 is effective January 1, 2006, for policies
4.26 	written or renewed on or after that date.