By McReynolds, Swinford, Cook, H.B. No. 2604
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to assistance to certain volunteer fire departments and to
1-3 the imposition of an assessment on certain insurers to finance that
1-4 assistance.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 614, Government Code, is amended by
1-7 adding Subchapter F to read as follows:
1-8 SUBCHAPTER F. RURAL VOLUNTEER FIRE DEPARTMENT ASSISTANCE PROGRAM
1-9 Sec. 614.071. DEFINITIONS. In this subchapter:
1-10 (1) "Director" means the director of the Texas Forest
1-11 Service of The Texas A&M University System.
1-12 (2) "Fund" means the volunteer fire department
1-13 assistance fund.
1-14 (3) "Program" means the Rural Volunteer Fire
1-15 Department Assistance Program.
1-16 (4) "Service" means the Texas Forest Service of The
1-17 Texas A&M University System.
1-18 (5) "Part-paid fire department" means a fire
1-19 department operated by its members, some of whom are volunteers and
1-20 not more than 20 of whom are paid.
1-21 (6) "Volunteer fire department" means a fire
1-22 department operated by its members, including a part-paid fire
1-23 department, that is operated on a not-for-profit basis, including a
1-24 department that is exempt from federal income tax under Section
1-25 501(a), Internal Revenue Code of 1986, by being listed as an exempt
2-1 organization in Section 501(c)(3) of that code.
2-2 Sec. 614.072. ADMINISTRATION OF PROGRAM. (a) The Texas
2-3 Forest Service shall administer the program established under this
2-4 subchapter, and the director may adopt rules necessary to assist
2-5 volunteer fire departments in paying for equipment and training of
2-6 personnel.
2-7 (b) The service may employ staff to administer the program.
2-8 (c) The director shall:
2-9 (1) determine reasonable criteria and qualifications
2-10 for the distribution of money from the volunteer fire department
2-11 assistance fund; and
2-12 (2) establish a procedure for reporting and processing
2-13 requests for money from the fund.
2-14 (d) A volunteer fire department may not be denied assistance
2-15 from the fund solely because the department receives funds from a
2-16 political subdivision.
2-17 (e) The director shall prepare an annual written report on
2-18 the activity, status, and effectiveness of the fund and shall
2-19 submit the report to the lieutenant governor, the speaker of the
2-20 house of representatives, and the comptroller before November 1 of
2-21 each year.
2-22 (f) Any assistance or benefits provided under this
2-23 subchapter to a volunteer fire department or a firefighter who is a
2-24 member of a volunteer fire department may not be considered
2-25 compensation, and a firefighter receiving assistance under this
2-26 subchapter may not be considered to be in the paid service of any
2-27 governing body.
3-1 (g) Administration costs associated with the program during
3-2 a state fiscal year may not exceed seven percent of the total
3-3 revenue collected from the assessment under Article 5.102,
3-4 Insurance Code, during the previous fiscal year.
3-5 Sec. 614.073. REQUESTS FOR ASSISTANCE. (a) A request for
3-6 assistance from the fund shall be submitted to the director.
3-7 (b) On receiving a request for assistance, the director
3-8 shall determine whether to provide assistance and the amount of the
3-9 assistance to be provided, if any, based on the criteria developed
3-10 under Section 614.072. A written copy of the decision shall be
3-11 sent to the requestor.
3-12 Sec. 614.074. FUND. (a) The volunteer fire department
3-13 assistance fund is an account in the general revenue fund and is
3-14 composed of money collected under Article 5.102, Insurance Code,
3-15 and contributions to the fund from any other source.
3-16 (b) Money in the fund may be used only for a purpose under
3-17 this subchapter.
3-18 SECTION 2. Subchapter M, Chapter 5, Insurance Code, is
3-19 amended by adding Article 5.102 to read as follows:
3-20 Art. 5.102. ASSESSMENT FOR RURAL FIRE PROTECTION
3-21 Sec. 1. DEFINITIONS. In this article:
3-22 (1) "Insurer" means an insurer authorized to engage in
3-23 business in this state, including a stock company, mutual, farm
3-24 mutual, county mutual, Lloyd's plan, or reciprocal or
3-25 interinsurance exchange.
3-26 (2) "Net direct premium" means the gross direct
3-27 premium written and reported by an insurer on annual financial
4-1 statements on:
4-2 (A) policies of:
4-3 (i) homeowner's insurance;
4-4 (ii) fire insurance;
4-5 (iii) farm and ranch owner's insurance;
4-6 (iv) private passenger automobile physical
4-7 damage insurance; and
4-8 (v) commercial automobile physical damage
4-9 insurance; and
4-10 (B) the nonliability portion of a commercial
4-11 multiple peril policy.
4-12 Sec. 2. APPLICABILITY. This article applies only to an
4-13 insurer that writes an insurance policy described by Section 1(2)
4-14 of this article.
4-15 Sec. 3. ASSESSMENT. (a) The comptroller shall assess all
4-16 insurers in an amount that totals $15 million for each 12-month
4-17 period. Each insurer shall pay a portion of the assessment in the
4-18 proportion that the insurer's net direct premiums for the period
4-19 for which the assessment is made bear to the aggregate net direct
4-20 premiums written in this state for that period.
4-21 (b) The comptroller shall assess the insurers on or before
4-22 September 1 of each year.
4-23 (c) An insurer shall pay the amount assessed under this
4-24 section on or after the 60th day after the date the comptroller
4-25 assesses the insurer.
4-26 (d) An insurer may recover an assessment under this section
4-27 by:
5-1 (1) reflecting the assessment as an expense in a rate
5-2 filing required under this code; or
5-3 (2) charging the insurer's policyholders.
5-4 (e) An insurer that recovers an assessment under this
5-5 section from the insurer's policyholders shall provide a notice to
5-6 each policyholder of the amount of the assessment being recovered.
5-7 The notice required by this subsection may be included on a
5-8 declarations page, renewal certificate, or billing statement. The
5-9 commissioner by rule may adopt a form for providing notice under
5-10 this subsection.
5-11 (f) The comptroller shall credit assessments collected under
5-12 this article to the volunteer fire department assistance fund
5-13 created under Section 614.074, Government Code.
5-14 Sec. 4. RULES; COOPERATION. (a) The comptroller and the
5-15 commissioner shall adopt rules as necessary to implement this
5-16 article.
5-17 (b) The comptroller and the department shall cooperate as
5-18 necessary to implement this article.
5-19 Sec. 5. EXPIRATION. This article expires September 1, 2011.
5-20 SECTION 3. (a) This Act takes effect July 1, 2001, if it
5-21 receives a vote of two-thirds of all the members elected to each
5-22 house, as provided by Section 39, Article III, Texas Constitution.
5-23 (b) If this Act does not receive the vote necessary for
5-24 effect on July 1, 2001, this Act takes effect September 1, 2001.
5-25 (c) The director of the Texas Forest Service may not grant a
5-26 request for assistance under Subchapter F, Chapter 614, Government
5-27 Code, as added by this Act, before September 1, 2002.
6-1 (d) The comptroller of public accounts shall make the first
6-2 assessment under Article 5.102, Insurance Code, as added by this
6-3 Act, in 2002.