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.