Introduced Version
House Bill 2945 History
OTHER VERSIONS -
Committee Substitute
|
| Email
Key: Green = existing Code. Red = new code to be enacted
H. B. 2945
(By Delegates Mr. Speaker (Mr. Thompson),
Caputo, Boggs, Lynch, Young, Skinner,
Tomblin, Barrett, Sponaugle, White and Miley)
[Introduced March 15, 2013; referred to the
Committee on Finance.]
A BILL to amend and reenact §12-4-14a of the Code of West Virginia,
1931, as amended; and to amend said code by adding thereto a
new section, designated §33-3-33a, all relating to the
distribution of state funds to volunteer fire departments
under the Volunteer Fire Department Workers' Compensation
Subsidy Program generally; specifying that the subsidy
provided to volunteer fire departments to offset certain
workers' compensation premium increases apply to increases
attributable to the fire fighting service, rapid response
emergency medical service, ambulance service and diving
service components of the services provided by volunteer fire
departments; establishing the Volunteer Fire Department
Workers' Compensation Premium Subsidy Fund and providing
revenues to be deposited into the fund for the program; and
requiring reviews, assessments and reports to the Legislature
prior to termination of the program.
Be it enacted by the Legislature of West Virginia:
That §12-4-14a of the Code of West Virginia, 1931, as amended,
be amended and reenacted; and that said code be amended by adding
thereto a new section, designated §33-3-33a, all to read as
follows:
CHAPTER 12. PUBLIC MONEYS AND SECURITIES.
ARTICLE 4. ACCOUNTS, REPORTS AND GENERAL PROVISIONS.
§12-4-14a. Workers' Compensation Subsidy for Volunteer Fire
Departments; creation of program; Auditor to
administer.
(a) For the purposes of this section:
(1) "Fiscal year" means the fiscal year of the state.
(2) "Individual base year premium" means the workers'
compensation insurance individual premium that became due and
payable by a volunteer fire department after June 30, 2010, but
before July 1, 2011.
(3) "Individual premium" means the workers' compensation
insurance premium due and payable by a volunteer fire department
for fire fighting services, rapid response emergency medical
services, ambulance services or diving services provided by the
volunteer fire department in each twelve month period beginning on
or after July 1, 2011.
(4) "Total base year premium" means the aggregate workers' compensation insurance premium due and payable by all volunteer
fire departments for fire fighting services, rapid response
emergency medical services, ambulance services or diving services
provided by the volunteer fire departments as determined by the
Insurance Commissioner after June 30, 2010, but before July 1,
2011.
(5) "Total premium" means the aggregate workers' compensation
insurance premium due and payable by all volunteer fire departments
for fire fighting services, rapid response emergency medical
services, ambulance services or diving services provided by the
volunteer fire departments in each twelve month period beginning on
or after July 1, 2011.
(b) In recognition of the burden of increasing workers'
compensation insurance premiums on volunteer fire departments, the
Legislature has determined that additional funding assistance
should be made available to eligible departments to pay a portion
of those premium increases beginning with invoices due and payable
on or after July 1, 2011.
(c) There is hereby established a special program which shall
be known as the "Volunteer Fire Department Workers' Compensation
Subsidy Program." The program shall be administered by the State
Auditor from moneys that may be appropriated and designated for the
program by the Legislature pursuant to this section and section
thirty-three-a, article three, chapter thirty-three of this code.
(d) The State Auditor shall administer the distribution of
moneys appropriated for Volunteer Fire Department Workers'
Compensation Subsidy Program to volunteer fire departments to help
defray workers' compensation insurance premium increases.
(1) Volunteer fire departments shall request supplemental
funds by submitting to the Auditor the following information:
(A) The previous fiscal year's workers' compensation premium
invoices with paid receipts;
(B) The current fiscal year's workers' compensation premium
invoices showing the amount due and due date and any applicable
paid receipts; and
(C) Any other information the Auditor deems necessary for
administering the subsidy on forms and schedules as the Auditor
directs. The Auditor is authorized to set up an electronic filing
system at his or her discretion for filing of the aforementioned
information.
(2) After determining that there is a premium increase and the
amount of the premium increase for the volunteer fire department
requesting the subsidy, the Auditor shall make disbursements in the
manner set forth in subsection (e) of this section subject to the
following requirements:
(A) The volunteer fire department must be in good standing
with the State Fire Marshal;
(B) The volunteer fire department must be registered with the Auditor's Office in a form and manner prescribed by the Auditor
prior to being eligible for consideration of any subsidy, which
registration must be completed no fewer than thirty days prior to
the due date of the workers' compensation premium;
(C) The volunteer fire department must agree that the subsidy
for its workers' compensation insurance premium increase will be
paid directly to its insurance carrier by the Auditor and that it
will timely pay the balance of the premium due; and
(D) Should a volunteer fire department fail to pay the balance
of its workers' compensation insurance premium after a disbursement
by the Auditor and that insurance policy is subsequently cancelled,
the premium paid by the Auditor shall be returned directly to him
or her. If the Auditor does not receive a reimbursement for a
cancelled policy, he or she shall seek reimbursement for the
subsidy portion of the insurance premium from the State Treasurer
when the Treasurer makes the next quarterly payment to the
volunteer fire department pursuant to sections thirty-three and
fourteen-d, article three, chapter thirty-three of this code.
(e) Beginning with the fiscal year that starts July 1, 2011,
and continuing in each fiscal year thereafter, after the Auditor
has verified that a volunteer fire department is eligible for a
subsidy pursuant to this section, he or she shall pay on behalf of
a volunteer fire department its subsidy, which is calculated by:
(1) Dividing the total amount of premium subsidy allocated by the Legislature to the Volunteer Fire Department Workers'
Compensation Subsidy Program by the total premium minus the total
base year premium, which calculation produces the "total shortfall
multiplier"; and
(2) Multiplying the total shortfall multiplier determined in
subdivision (1) of this subsection by the individual premium less
the individual base year premium.
(3) In no event shall a volunteer fire department receive a
workers' compensation premium subsidy greater than one hundred
percent of its premium increase.
(f) For fiscal years after July 1, 2011, the Auditor shall
consult with the Insurance Commissioner to determine the total
amount of workers' compensation premium due by volunteer fire
departments for any subsequent fiscal year. The Auditor may
determine payment dates based upon information reasonably available
for such a determination.
(g) The Auditor may promulgate emergency rules and may propose
for promulgation legislative rules, in accordance with the
provisions of article three, chapter twenty-nine-a of this code, as
are necessary to provide for implementation and enforcement of the
provisions of this section.
(h) The volunteer fire departments' workers' compensation
premium subsidy program shall undergo a review to assess its
effectiveness after three years of operation. The Auditor shall submit a report to the Joint Committee on Government and Finance
not later than February 1, 2015, and provide details of the program
operation including funds distributed and departments taking
advantage of the subsidy.
CHAPTER 33. INSURANCE.
ARTICLE 3. LICENSING, FEES AND TAXATION OF INSURERS.
§33-3-33a. Excess moneys of Fire Protection Fund deposited into
Volunteer Fire Department Workers' Compensation
Premium Subsidy Fund; other funding; special report
from State Fire Marshal by December 15, 2015;
termination of program June 30, 2016.
_____(a) There is hereby established a special fund in the State
Treasury known as the "Volunteer Fire Department Workers'
Compensation Premium Subsidy Fund." The fund shall be administered
by the State Auditor and shall consist of moneys deposited in the
fund pursuant to this section, any other funds appropriated by the
Legislature for volunteer fire departments for the purposes of
section fourteen-a, article four, chapter twelve of this code, and
the interest or other earnings on the moneys in the fund. The
State Auditor shall administer the distribution of moneys of the
fund to volunteer fire departments to help defray workers'
compensation insurance premium increases pursuant to section
fourteen-a, article four, chapter twelve of this code. Balances in the fund at the end of any fiscal year shall not expire, but shall
be expended for those purposes in ensuing fiscal years pursuant to
appropriation of the Legislature.
_____(b) Beginning July 1, 2013, and in each fiscal year thereafter
until June 30, 2016, the excess of the aggregate of amounts
collected by the commissioner that are otherwise required under any
provision of this code to be deposited into the Fire Protection
Fund over the aggregate of those amounts deposited into the Fire
Protection Fund during the fiscal year ending June 30, 2013, shall
be deposited into the Volunteer Fire Department Workers'
Compensation Premium Subsidy Fund and expended solely for the
purposes established in section fourteen-a, article four, chapter
twelve of this code.
_____(c) On or before August 1, 2013, the commissioner shall
transfer $7.5 million from the Premium Tax Savings Fund created
under section thirteen, article twelve, chapter twenty-nine of this
code to the Volunteer Fire Department Workers' Compensation Premium
Subsidy Fund and expended solely for the purposes established in
section fourteen-a, article four, chapter twelve of this code until
June 30, 2016.
_____(d) The State Fire Marshal, in consultation with the Insurance
Commissioner, the State Auditor, the Secretary of Revenue and the
Legislative Auditor, shall conduct a review of the needs of each
volunteer or part volunteer fire company or volunteer fire department serving in the various counties of the state. On or
before December 31, 2015, the State Fire Marshal shall submit to
the Joint Committee on Government and Finance a comprehensive
report of the review and the State Fire Marshal's recommendations,
substantiated by the findings of the review, of steps that may be
taken to meet the needs of and sustain the volunteer and part
volunteer fire companies and volunteer fire departments of this
state, including, but not limited to, the following:
_____(1) An assessment of all current funding received by the
volunteer fire companies and departments, and a further assessment
of the funding necessary to provide the community protections
required for the areas served by the volunteer fire companies and
departments, the extent to which those needs are being met, the
extent to which they are not being met, and recommendations of
sources of funds to meet additional needs and the amounts needed,
if any;
_____(2) An assessment of the cost of workers' compensation
coverage for the volunteer fire companies and departments and
recommendations for any actions that may be undertaken by the
volunteer fire companies and departments and others to reduce those
costs;
_____(3) An assessment of the causes of any decline in recruitment
and retention of volunteer firefighters and recommendations for
improvements in this area, including any recommendations for incentives that have a demonstrated record of significant increases
in recruitment and retention as well as recommendations of sources
of funds to provide those incentives, if funds are necessary;
_____(4) An assessment of the level of financial accountability
that should be required of volunteer fire companies and departments
in order to provide the Legislature the information necessary to
target future funding for their activities based upon the safety
and fire protection needs of the various areas of the state;
_____(5) An assessment of the comparative levels of funding for
volunteer fire companies and departments provided by counties,
municipalities and other political subdivisions and the means by
which that funding is provided, including identification of those
which contribute little or no funding to the volunteer fire
companies and departments within their jurisdictions, together with
recommendations for increasing those levels of contributions;
_____(6) An assessment of the comparative levels of funding for
volunteer fire companies and departments provided by their own
efforts, and the means by which that funding is provided, including
identification of those which provide little or no funding through
their own efforts, together with recommendations for increasing
these sources of funding;
_____(7) An assessment of the comparative economic and other
benefits provided by the various volunteer fire companies and
departments to their particular counties, municipalities and other political subdivisions, as well as to citizens of the local
communities they serve;
_____(8) An assessment of the sustainability of the current model
of providing fire and other protections to the citizens of rural
communities through volunteer fire companies and departments and an
assessment of alternative models for providing those protections;
and
_____(9) Other assessments and recommendations which the State Fire
Marshal deems appropriate in the circumstances.
_____(d) Upon the conclusion of the fiscal year ending June 30,
2016, the provisions of this section and section fourteen-a,
article four, chapter twelve of this code shall expire and be of no
further force and effect and the Volunteer Fire Department Workers'
Compensation Premium Subsidy Fund shall be closed. Upon closure of
the fund, from any balances therein remaining, the State Auditor
shall first, to the extent available, transfer to the Fire
Protection Fund an amount equal to the aggregate of funds deposited
into the Volunteer Fire Department Workers' Compensation Premium
Subsidy Fund during the fiscal years ending June 30, 2014, 2015 and
2016 pursuant to subsection (b) of this section that would
otherwise have been required to be deposited into the Fire
Protection Fund, and any balances thereafter remaining in the
Volunteer Fire Department Workers' Compensation Premium Subsidy
Fund shall expire to the General Revenue Fund of the state.
NOTE: The purpose of the bill is to improve the Volunteer
Fire Department Workers' Compensation Subsidy Program by clarifying
that the subsidies provided to volunteer fire departments to offset
their workers' compensation premium increases apply not only to the
increases attributable to their fire fighting services, but apply
as well to increases attributable to the rapid response emergency
medical service, ambulance service and diving service components of
the services provided by the volunteer fire departments; by
extending the program and providing a one-time and continuing
sources of revenue for the program; and by directing a
comprehensive study of steps that may be taken to meet the needs of
and sustain the volunteer and part volunteer fire companies and
volunteer fire departments of this state.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.