By McReynolds H.B. No. 2604
77R8748 AJA-D
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 insurance premium surcharge 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 paid and some
1-20 of whom are volunteers.
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
2-1 501(a), Internal Revenue Code of 1986, by being listed as an exempt
2-2 organization in Section 501(c)(3) of that code.
2-3 Sec. 614.072. ADMINISTRATION OF PROGRAM. (a) The Texas
2-4 Forest Service shall administer the program established under this
2-5 subchapter, and the director may adopt rules necessary to assist
2-6 volunteer fire departments in paying for equipment and training of
2-7 personnel.
2-8 (b) The service may employ staff to administer the program.
2-9 (c) The director shall:
2-10 (1) determine reasonable criteria and qualifications
2-11 for the distribution of money from the volunteer fire department
2-12 assistance fund; and
2-13 (2) establish a procedure for reporting and processing
2-14 requests for money from the fund.
2-15 (d) A volunteer fire department may not be denied assistance
2-16 from the fund solely because the department receives funds from a
2-17 political subdivision.
2-18 (e) The director shall prepare an annual written report on
2-19 the activity, status, and effectiveness of the fund and shall
2-20 submit the report to the lieutenant governor, the speaker of the
2-21 house of representatives, and the comptroller before November 1 of
2-22 each year.
2-23 (f) Any assistance or benefits provided under this
2-24 subchapter to a volunteer fire department or a firefighter who is a
2-25 member of a volunteer fire department may not be considered
2-26 compensation, and a firefighter receiving assistance under this
2-27 subchapter may not be considered to be in the paid service of any
3-1 governing body.
3-2 Sec. 614.073. REQUESTS FOR ASSISTANCE. (a) A request for
3-3 assistance from the fund shall be submitted to the director.
3-4 (b) On receiving a request for assistance, the director
3-5 shall determine whether to provide assistance and the amount of the
3-6 assistance to be provided, if any, based on the criteria developed
3-7 under Section 614.072. A written copy of the decision shall be
3-8 sent to the requestor.
3-9 Sec. 614.074. FUND. (a) The volunteer fire department
3-10 assistance fund is an account in the general revenue fund and is
3-11 composed of money collected under Article 5.44, Insurance Code, and
3-12 contributions to the fund from any other source.
3-13 (b) Money in the fund may be used only for a purpose under
3-14 this subchapter.
3-15 SECTION 2. Subchapter C, Chapter 5, Insurance Code, is
3-16 amended by adding Article 5.44 to read as follows:
3-17 Art. 5.44. POLICY SURCHARGE FOR RURAL FIRE PROTECTION. (a)
3-18 In this article, "volunteer fire department" has the meaning
3-19 assigned by Section 614.071, Government Code.
3-20 (b) This article applies only to a policy of homeowner's,
3-21 renter's, residential fire and allied lines, farm and ranch
3-22 owner's, or commercial property lines insurance that covers a
3-23 structure located within an area served by a volunteer fire
3-24 department.
3-25 (c) In addition to premium taxes, a nonrefundable surcharge
3-26 is assessed on each insurance policy to which this article applies
3-27 in an amount equal to $1 for each month or part of a month of
4-1 coverage provided under the policy.
4-2 (d) The surcharge is payable at the time the insurance
4-3 policy is issued or renewed. An insurer may not issue or renew a
4-4 policy before the surcharge on the issued or renewed policy is paid
4-5 in full.
4-6 (e) The surcharge does not apply to an insurance policy the
4-7 premiums of which are not included in the tax imposed by Article
4-8 4.10 of this code.
4-9 (f) The surcharge assessed under Subsection (c) of this
4-10 article shall be paid by the policyholder to the insurer. The
4-11 insurer shall collect the surcharge and send it to the comptroller
4-12 in the manner provided by rules adopted under this article.
4-13 (g) The comptroller shall credit the revenue from the
4-14 surcharge assessed under Subsection (c) of this article to the
4-15 volunteer fire department assistance fund established by Section
4-16 614.074, Government Code.
4-17 (h) The commissioner shall adopt rules as necessary to
4-18 implement this article.
4-19 SECTION 3. (a) This Act takes effect July 1, 2001, if it
4-20 receives a vote of two-thirds of all the members elected to each
4-21 house, as provided by Section 39, Article III, Texas Constitution.
4-22 (b) If this Act does not receive the vote necessary for
4-23 effect on July 1, 2001, this Act takes effect October 1, 2001.
4-24 (c) The director of the Texas Forest Service may not grant a
4-25 request for assistance under Subchapter F, Chapter 614, Government
4-26 Code, as added by this Act, before September 1, 2002.
4-27 (d) Article 5.44, Insurance Code, as added by this Act,
5-1 applies only to an insurance policy that is delivered, issued for
5-2 delivery, or renewed on or after January 1, 2002. A policy that is
5-3 delivered, issued for delivery, or renewed before January 1, 2002,
5-4 is governed by the law as it existed immediately before the
5-5 effective date of this Act, and that law is continued in effect for
5-6 that purpose.