Enrolled Bill Summary

            House Bill 2604 amends the Government Code and Insurance Code to create a rural volunteer fire department assistance program administered by the Texas Forest Service to assist with payments for equipment and training of personnel. The bill establishes a volunteer fire department assistance fund composed of assessments on policies for homeowner's insurance, fire insurance, farm and ranch owner's insurance, private and commercial automobile physical damage insurance policies, and the nonliability portion of commercial multiple peril policies. Insurers writing such policies pay every 12 months a portion of a total $15 million assessment based on the ratio of their respective net direct premiums to the state aggregate for such net direct premiums. Insurance policy assessment provisions expire September 1, 2001. The bill requires the Texas Forest Service director to determine reasonable criteria and qualifications for the distribution of money from the fund and sets a seven percent limit on program administrative costs. The director must report annually to the lieutenant governor, the speaker of the house of representatives, and the comptroller on the activity, status, and effectiveness of the fund.