COMMITTEE SUBSTITUTE
FOR
H. B. 2017
(By Delegate Heck)
(Originating in the Committee on Pensions and Retirement)
[March 12, 1997]
A BILL to amend and reenact section fourteen-d, article three,
chapter thirty-three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to the
additional fire casualty insurance premium tax; allocation of
proceeds to municipal policemen's or firemen's pension and
relief funds altered.
Be it enacted by the Legislature of West Virginia:
That section fourteen-d, article three, chapter thirty-three
of the code of West Virginia, one thousand nine hundred thirty- one, as amended, be amended and reenacted to read as follows:
ARTICLE 3. LICENSING, FEES AND TAXATION OF INSURERS.
§33-3-14d. Additional fire and casualty insurance premium tax;
allocation of proceeds; effective date.
(a) For the purpose of providing additional revenue for
municipal policemen's and firemen's pension and relief funds, and
the teachers retirement system reserve fund and for volunteer and part volunteer fire companies and departments, there is hereby
levied and imposed,
on and after the first day of January, one
thousand nine hundred eighty-two, an additional premium tax equal
to one percent of gross direct premiums collected, less premiums
returned to policyholders because of cancellation of policies, for
fire insurance and casualty insurance policies. For purposes of
this section, casualty insurance
shall does not include insurance
on the life of a debtor pursuant to or in connection with a
specific loan or other credit transaction or insurance on a debtor
to provide indemnity for payments becoming due on a specific loan
or other credit transaction while the debtor is disabled as defined
in the policy. Except as otherwise provided in this section, all
provisions of this article relating to the levy, imposition and
collection of the regular premium tax are applicable to the levy,
imposition and collection of the additional tax
set forth in this
section.
All moneys collected from this additional tax shall be
received by the commissioner and paid by him into a special account
in the state treasury, designated the municipal pensions and
protection fund. The net proceeds of this tax after appropriation
thereof by the Legislature shall be distributed in accordance with
the provisions of this section.
(b)
Before the first day of August, one thousand nine hundred eighty-three, and before Before the first day of August of each
calendar year thereafter, the treasurer of each municipality in
which a municipal policemen's or firemen's pension and relief fund
has been established shall report to the state treasurer the
average monthly number of members who worked at least one hundred
hours per month
and the average monthly number of retired members
of municipal policemen's or firemen's pension systems during the
preceding fiscal year.
Before the first day of August, one
thousand nine hundred eighty-three, and before Before the first day
of August of each calendar year
thereafter, the state fire marshal
shall report to the state treasurer the names and addresses of all
volunteer and part volunteer fire companies and departments within
the state which meet the eligibility requirements established in
section eight-a, article fifteen, chapter eight of this code.
Before the first day of September, one thousand nine hundred
eighty-three, and before Before the first day of September of each
calendar year
thereafter, the state treasurer shall allocate and
authorize for distribution the revenues in the municipal pensions
and protection fund which were collected during the preceding
calendar year for the purposes set forth in this section. Sixty- five percent of the
aforementioned revenues
allocated shall be
allocated to municipal policemen's and firemen's pension and relief
funds; twenty-five percent of
such allocated the revenues shall be
allocated to volunteer and part volunteer fire companies and departments, and ten percent of such allocated revenues shall be
allocated to the Teachers Retirement System Reserve Fund created by
section eighteen, article seven-a, chapter eighteen of this code:
Provided, That in any year the actuarial report required by section
twenty, article twenty-two, chapter eight of this code indicates no
actuarial deficiency in the municipal policemen's or firemen's
pension and relief fund, no revenues may be allocated from the
municipal pensions and protection fund to that fund. The revenues
from the municipal pensions and protection fund shall then be
allocated to all other pension funds which have an actuarial
deficiency.
(c) (1) Each municipal pension and relief fund shall have
allocated and authorized for distribution a pro rata share of the
revenues allocated to municipal policemen's and firemen's pension
and relief funds based upon the corresponding municipality's
average monthly number of members who worked at least one hundred
hours per month during the preceding fiscal year.
On and after the
first day of July, one thousand nine hundred ninety-seven, from the
growth in any moneys collected pursuant to the tax imposed by this
section there shall be allocated and authorized for distribution to
each municaipal pension and relief fund, a pro rata share of the
revenues allocated do municipal policemen's, and firemen's pension
and relief funds based upon the corresponding municipalities
average number of members who worked at least one hundred hours per month and the average monthly number of retired members. For the
purposes of this subsection, the growth in moneys collected from
the tax collected pursuant to this section shall be determined by
subtracting the amount of the tax collected during the fiscal year
ending the thirtieth day of June, one thousand nine hundred ninety- six from the tax collected during the fiscal year for which the
allocation is being made. All moneys received by municipal pension
and relief funds under this section may be expended only for
the
those purposes described in sections sixteen through twenty-eight,
article twenty-two, chapter eight of this code.
(2) Each volunteer fire company or department shall receive an
equal share of the revenues allocated for volunteer and part
volunteer fire companies and departments.
(3) In addition to the share allocated and distributed in accordance with subdivision (1) of this subsection, each municipal
fire department composed of full-time paid members and volunteers
and part volunteer fire companies and departments shall receive a
share equal to the share distributed to volunteer fire companies
under subdivision (2) of this subsection reduced by an amount equal
to such share multiplied by the ratio of the number of full-time
paid fire department members who are also members of a municipal
firemen's pension system to the total number of members of such
fire department.
(d) The allocation and distribution of revenues provided for
in this section are subject to the provisions of section twenty,
article twenty-two, and sections eight-a and eight-b, article
fifteen, chapter eight of this code.