ENROLLED
Senate Bill No. 33
(By Senators Ross, Anderson, Snyder, Hunter, Sharpe and Ball)
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[Passed April 12, 1997; in effect ninety days from passage.]
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AN ACT to amend and reenact sections fourteen-d and thirty-three,
article three, chapter thirty-three of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
all relating to the allocation of proceeds from the premium
tax on fire and casualty insurance policies to volunteer and
part volunteer fire departments and the teachers retirement
system; altering the allocation of proceeds to municipal
policemen's or firemen's pension and relief funds; and
providing for a quarterly disbursement of such proceeds.
Be it enacted by the Legislature of West Virginia:
That sections fourteen-d and thirty-three, article three,
chapter thirty-three of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended and reenacted,
all 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 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 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) (1) 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.
(2) Before the first day of September of each calendar year,
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
revenues shall be allocated to municipal policemen's and
firemen's pension and relief funds; twenty-five percent of 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.
(3) The moneys, and the interest earned thereon, in the
municipal pensions and protection fund allocated to volunteer and
part volunteer fire companies and departments shall be allocated
and distributed quarterly to the volunteer fire companies and
departments. Before each distribution date, 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.
(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 municipal pension and relief fund, a pro
rata share of the revenues allocated to 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 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 those purposes
described in sections sixteen through twenty-eight, inclusive,
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.
§33-3-33. Surcharge on fire and casualty insurance policies to
benefit volunteer and part volunteer fire
departments; special fund created; allocation of
proceeds; effective date.
(a) For the purpose of providing additional revenue for
volunteer and part volunteer fire departments, certain retired
teachers and the teachers retirement reserve fund, there is
hereby authorized and imposed on and after the first day of July,
one thousand nine hundred ninety-two, on the policyholder of any
fire and casualty insurance policy, a policy surcharge equal to
one percent of gross direct premium paid by the policyholder for
each such policy. For purposes of this section, casualty
insurance shall 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. The policy surcharge shall not be subject to premium
taxes, agent commissions or any other assessment against
premiums.
The policy surcharge shall be collected and remitted by the
insurer to the commissioner on forms prescribed by the
commissioner on a quarterly basis and are due on the twenty-fifth
day of the month succeeding the end of the quarter in which they
are collected except for the fourth quarter for which the
surcharge shall be due and payable on or before the first day of
March of the succeeding year. All forms required by the
commissioner shall be submitted under the oath of the president
and secretary of the insurer.
Any insurer failing or refusing to collect and remit to the
commissioner any policy surcharge and whose surcharge payments
are not postmarked by the due dates for quarterly filing is
liable for a civil penalty of up to one hundred dollars for each
day of delinquency, to be assessed by the commissioner. The
commissioner may suspend the insurer until all surcharge payments
and penalties, should any penalty be imposed, are remitted in
full to the commissioner.
One half of all money from the policy surcharge shall be collected by the commissioner who shall disburse the money
received from the surcharge into a special account in the state
treasury, designated the "fire protection fund". The net
proceeds of this portion of the tax after appropriation by the
Legislature shall be distributed in accordance with the
provisions of subsection (c) of this section. The remaining
fifty percent of the moneys collected shall be transferred to the
teachers retirement system to be disbursed according to the
provisions of sections twenty-six-j, twenty-six-k and
twenty-six-l, article seven-a, chapter eighteen of this code.
Any balance remaining after the disbursements authorized by this
subdivision have been paid shall be paid by the teachers
retirement system into the teachers retirement system reserve
fund.
(b) The moneys, and the interest earned thereon, in the fire
protection fund shall be allocated among and distributed
quarterly to all volunteer and part volunteer fire departments by
the state treasurer. Before each distribution date, 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.
The payments hereinabove provided shall be paid on the first day of the months of January, April, July and October of one
thousand nine hundred ninety-eight and each year thereafter.
(c) Each volunteer fire company or department shall receive
on an equal share basis the revenues allocated for volunteer and
part volunteer fire companies and departments under subdivision
(1), subsection (a) of this section.
(d) The allocation, distribution and use of revenues
provided in the fire protection fund are subject to the
provisions of sections eight-a and eight-b, article fifteen,
chapter eight of this code.