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
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 (g) Administration costs associated with the program during
3-3 a state fiscal year may not exceed seven percent of the total
3-4 revenue collected from the assessment under Article 5.102,
3-5 Insurance Code, during the previous fiscal year.
3-6 Sec. 614.073. REQUESTS FOR ASSISTANCE. (a) A request for
3-7 assistance from the fund shall be submitted to the director.
3-8 (b) On receiving a request for assistance, the director
3-9 shall determine whether to provide assistance and the amount of the
3-10 assistance to be provided, if any, based on the criteria developed
3-11 under Section 614.072. A written copy of the decision shall be
3-12 sent to the requestor.
3-13 Sec. 614.074. FUND. (a) The volunteer fire department
3-14 assistance fund is an account in the general revenue fund and is
3-15 composed of money collected under Article 5.102, Insurance Code,
3-16 and contributions to the fund from any other source.
3-17 (b) Money in the fund may be used only for a purpose under
3-18 this subchapter.
3-19 SECTION 2. Subchapter M, Chapter 5, Insurance Code, is
3-20 amended by adding Article 5.102 to read as follows:
3-21 Art. 5.102. ASSESSMENT FOR RURAL FIRE PROTECTION
3-22 Sec. 1. DEFINITIONS. In this article:
3-23 (1) "Insurer" means an insurer authorized to engage in
3-24 business in this state, including a stock company, mutual, farm
3-25 mutual, county mutual, Lloyd's plan, or reciprocal or
3-26 interinsurance exchange.
3-27 (2) "Net direct premium" means the gross direct
4-1 premium written and reported by an insurer on annual financial
4-2 statements on:
4-3 (A) policies of:
4-4 (i) homeowner's insurance;
4-5 (ii) fire insurance;
4-6 (iii) farm and ranch owner's insurance;
4-7 (iv) private passenger automobile physical
4-8 damage insurance; and
4-9 (v) commercial automobile physical damage
4-10 insurance; and
4-11 (B) the nonliability portion of a commercial
4-12 multiple peril policy.
4-13 Sec. 2. APPLICABILITY. This article applies only to an
4-14 insurer that writes an insurance policy described by Section 1(2)
4-15 of this article.
4-16 Sec. 3. ASSESSMENT. (a) The comptroller shall assess all
4-17 insurers in an amount that totals $15 million for each 12-month
4-18 period. Each insurer shall pay a portion of the assessment in the
4-19 proportion that the insurer's net direct premiums for the period
4-20 for which the assessment is made bear to the aggregate net direct
4-21 premiums written in this state for that period.
4-22 (b) The comptroller shall assess the insurers on or before
4-23 September 1 of each year.
4-24 (c) An insurer shall pay the amount assessed under this
4-25 section on or after the 60th day after the date the comptroller
4-26 assesses the insurer.
4-27 (d) An insurer may recover an assessment under this section
5-1 by:
5-2 (1) reflecting the assessment as an expense in a rate
5-3 filing required under this code; or
5-4 (2) charging the insurer's policyholders.
5-5 (e) An insurer that recovers an assessment under this
5-6 section from the insurer's policyholders shall provide a notice to
5-7 each policyholder of the amount of the assessment being recovered.
5-8 The notice required by this subsection may be included on a
5-9 declarations page, renewal certificate, or billing statement. The
5-10 commissioner by rule may adopt a form for providing notice under
5-11 this subsection.
5-12 (f) The comptroller shall credit assessments collected under
5-13 this article to the volunteer fire department assistance fund
5-14 created under Section 614.074, Government Code.
5-15 Sec. 4. RULES; COOPERATION. (a) The comptroller and the
5-16 commissioner shall adopt rules as necessary to implement this
5-17 article.
5-18 (b) The comptroller and the department shall cooperate as
5-19 necessary to implement this article.
5-20 Sec. 5. EXPIRATION. This article expires September 1, 2011.
5-21 SECTION 3. (a) This Act takes effect July 1, 2001, if it
5-22 receives a vote of two-thirds of all the members elected to each
5-23 house, as provided by Section 39, Article III, Texas Constitution.
5-24 (b) If this Act does not receive the vote necessary for
5-25 effect on July 1, 2001, this Act takes effect September 1, 2001.
5-26 (c) The director of the Texas Forest Service may not grant a
5-27 request for assistance under Subchapter F, Chapter 614, Government
6-1 Code, as added by this Act, before September 1, 2002.
6-2 (d) The comptroller of public accounts shall make the first
6-3 assessment under Article 5.102, Insurance Code, as added by this
6-4 Act, in 2002.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2604 was passed by the House on April
25, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2604 was passed by the Senate on May
17, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not
voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor