SB345 HFIN AM
McO
CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 15. FIRE FIGHTING; FIRE COMPANIES AND DEPARTMENTS; CIVIL SERVICE FOR PAID FIRE DEPARTMENTS.
(a) Revenues
allocated to volunteer and part volunteer fire companies and departments may be
expended only for the items listed in subdivisions (1) through (15) of this
section. Funds Money received from the state for volunteer and
part-volunteer fire companies and departments, pursuant to §33-3-14d,
§33-3-33, and §33-12C-7 of this code, may not be commingled with funds
moneys received from any other source, except money received as a
grant from the Fire Service Equipment and Training Fund as provided in §29-3-5f
of this code. Expenditures may be made Distributions from the
Municipal Pensions and Protection Fund and the Fire Protection Fund allocated
to volunteer and part-volunteer fire companies and departments may be expended
only for the following:
(1) Personal protective equipment, including protective head gear, bunker coats, pants, boots, combination of bunker pants and boots, coats, and gloves;
(2) Equipment for compliance with the national fire protection standard or automotive fire apparatus, NFPA-1901;
(3) Compliance with insurance service office recommendations relating to fire departments;
(4) Rescue equipment, communications equipment, and ambulance equipment: Provided, That no moneys received from the Municipal Pensions and Protection Fund or the Fire Protection Fund may be used for equipment for personal vehicles owned or operated by volunteer or part-volunteer fire company or department members;
(5) Capital improvements reasonably required for effective and efficient fire protection service and maintenance of the capital improvements;
(6) Retirement of debts;
(7) Payment of utility bills;
(8) Payment of the cost of immunizations, including any laboratory work incident to the immunizations, for firefighters against hepatitis-b and other blood-borne pathogens: Provided, That the vaccine shall be purchased through the state immunization program or from the lowest-cost vendor available: Provided, however, That volunteer and part-volunteer fire companies and departments shall seek to obtain no-cost administration of the vaccinations through local boards of health: Provided further, That in the event any volunteer or part-volunteer fire company or department is unable to obtain no-cost administration of the vaccinations through a local board of health, the company or department shall seek to obtain the lowest cost available for the administration of the vaccinations from a licensed health care provider;
(9) Any filing fee required to be paid to the Legislative Auditor’s Office under §12-4-14 of this code relating to sworn statements of annual expenditures submitted by volunteer or part- volunteer fire companies or departments that receive state funds or grants;
(10) Property/casualty insurance premiums for protection and indemnification against loss or damage or liability;
(11) Operating expenses reasonably required in the normal course of providing effective and efficient fire protection service, which include, but are not limited to, gasoline, bank fees, postage, and accounting costs;
(12) Dues paid to national, state, and county associations;
(13) Workers’ compensation premiums;
(14) Life insurance premiums to provide a benefit not to exceed $20,000 for firefighters; and
(15) Educational and training supplies and fire prevention promotional materials, not to exceed $500 per year.
(b) If a volunteer or part-volunteer fire company or department spends any amount of money received from the Municipal Pensions and Protection Fund or the Fire Protection Fund for an item, service, or purpose not authorized by this section, that amount, when determined by an official audit, review, or investigation, shall be deducted from future distributions to the volunteer fire company or part-volunteer fire department.
(c) If a volunteer or part-volunteer fire company or department purchases goods or services authorized by this section, but then returns the goods or cancels the services for a refund, then any money refunded shall be deposited back into the same, dedicated bank account used for the deposit of distributions from the Municipal Pensions and Protection Fund and the Fire Protection Fund.
(d) Each volunteer or part-volunteer fire company and department shall retain, for five calendar years, all invoices, receipts, and payment records for the goods and services paid with money received from the state for volunteer and part-volunteer fire companies and departments, pursuant to §33-3-14d, §33-3-33, and §33-12C-7 of this code and money received as a grant from the Fire Service Equipment and Training Fund as provided in §29-3-5f of this code.
CHAPTER 12. PUBLIC MONEYS AND SECURITIES.
ARTICLE 4. Accounts, Reports, and general provisions.
§12-4-14.
Accountability of persons grantees receiving state funds or
grants; sworn statements by volunteer fire departments; criminal penalties.
(a) For the purposes of this section:
(1) “Grantor” means a state spending unit awarding a state grant.
(2) “Person”
“Grantee” means any entity receiving a state grant, including a state
spending unit, local government, corporation, partnership, association,
individual, or other legal entity. The term “person” does not include a
state spending unit or a local government as defined in section one-a, article nine,
chapter six of this code
(3) “Report” means an engagement, such as an agreed-upon procedures engagement or other attestation engagement, performed and prepared by a certified public accountant to test whether state grants were spent as intended. The term “report” does not mean a full-scope audit or review of the person receiving state funds.
(4)
“State grant” means funding provided by a state spending unit, regardless of
the original source of the funds, to a person grantee upon
application for a specific purpose. The term “state grant” does not include:
(A) Payments for goods and services purchased by a state spending unit; (B)
compensation to state employees and public officials; (C) reimbursements to
state employees and public officials for travel or incidental expenses; (D)
grants of student aid; (E) government transfer payments; (F) direct benefits
provided under state insurance and welfare programs; (G) funds reimbursed to a
person for expenditures made for qualified purposes when receipts for the
expenditures are required prior to receiving the funds; (H) retirement
benefits; and (I) federal pass-through funds that are subject to the federal
Single Audit Act Amendments of 1996, 31 U.S.C. § 7501, et seq. The term
“state grant” does not include formula distributions to volunteer and
part-volunteer fire departments and fire companies made pursuant to §33-3-14d, §33-3-33,
§33-12C-7
of said chapter of this code and does not include money received from
the Fire Service Equipment and Training Fund as provided in §29-3-5f of this
code.
(b)
(1) Any person grantee who receives one or more state grants in
the amount of $50,000 or more in the aggregate in a state’s fiscal year shall
file with the grantor a report of the disbursement of the state grant funds.
When the grantor causes an audit, by an independent certified public
accountant, to be conducted of the grant funds, the audit is performed using
generally accepted government auditing standards, and a copy of the audit is
available for public inspection, no report is required to be filed under this
section. An audit performed that complies with Office of Management and Budget
circular A-133, as published on June 27, 2003, and submitted within the
period provided in this section may be substituted for the report.
(2)
Any person grantee who receives a state grant in an amount less
than $50,000 or who is not required to file a report because an audit has been
conducted or substituted as provided by subdivision (1) of this subsection
shall file with the grantor a sworn statement of expenditures made under the
grant.
(3)
Reports and sworn statements of expenditures required by subdivisions
(1) and (2) of this subsection shall be filed
within two years of the end of the person’s grantee’s fiscal year
in which the disbursement of state grant funds by the grantor was made. The
report shall be made by an independent certified public accountant at the cost
of the person receiving the state grant grantee. State grant
funds may be used to pay for the report if the applicable grant provisions
allow. The scope of the report is limited to showing that the state grant funds
were spent for the purposes intended when the grant was made.
(c)(1)
Any person grantee failing to file a required report or sworn
statement of expenditures within the two-year period provided in subdivision
(3), subsection (b) of this section for state grant funds disbursed
after July 1, 2003, is barred from subsequently receiving state grants
until the person grantee has filed the report or sworn statement
of expenditures and is otherwise in compliance with the provisions of this
section.
(2)
Any grantor of a state grant shall report any persons grantee
failing to file a required report or sworn statement of expenditures within the
required period provided in subdivision (3), subsection (b) of this
section for a state grant disbursed after July 1, 2003, to the
Legislative Auditor for purposes of debarment from receiving state grants.
(d)
(1) The state agency administering the state grant shall notify the person
grantee of the reporting requirements set forth in this section.
(2)
All grantors awarding state grants shall, prior to awarding a state grant, take
reasonable actions to verify that the person grantee is not
barred from receiving state grants pursuant to this section. The verification
process shall, at a minimum, include:
(A) A
requirement that the person grantee seeking the state grant
provide a sworn statement from an authorized representative that the person
grantee has filed all reports and sworn statements of expenditures for
state grants received as required under this section; and
(B)
Confirmation from the Legislative Auditor by the grantor that the person
grantee has not been identified as one who has failed to file a report
or sworn statement of expenditures under this section. Confirmation may be
accomplished by accessing the computerized database provided in subsection
(e) of this section.
(3) If any report or sworn statement of expenditures submitted pursuant to the requirements of this section provides evidence of a reportable condition or violation, the grantor shall provide a copy of the report or sworn statement of expenditures to the Legislative Auditor within 30 days of receipt by the grantor.
(4) The grantor shall maintain copies of reports and sworn statements of expenditures required by this section and make the reports or sworn statements of expenditures available for public inspection, as well as for use in audits and performance reviews of the grantor.
(5)
The Secretary of the Department of Administration has authority to promulgate
procedural and interpretive rules and propose legislative rules for
promulgation in accordance with the provisions of §29A-3-1
et seq. of this code to assist in implementing the provisions of
subsections (a), (b), (c) and (d) of
this section.
(e)(1)
Any state agency administering a state grant shall, in the manner designated by
the Legislative Auditor, notify the Legislative Auditor of the maximum amount
of funds to be disbursed, the identity of the person grantee
authorized to receive the funds, the person ‘s grantee’s fiscal
year and federal employer identification number, and the purpose and nature of
the state grant within 30 days of making the state grant or authorizing the
disbursement of the funds, whichever is later. If the state grant was
awarded prior to October 1, 2005, the grantor shall provide the information
required by this section by December 1, 2005.
(2)
The State Treasurer shall provide the Legislative Auditor the information
concerning formula distributions to volunteer and part-volunteer fire
departments, made pursuant to §33-3-14d, §33-3-33,
and §33-12C-7
of said chapter of this code, the Legislative Auditor requests,
and in the manner designated by the Legislative Auditor.
(3)
The Legislative Auditor shall maintain a list identifying persons grantees
who have failed to file reports and sworn statements required by this section.
The list may be in the form of a computerized database that may be accessed by
state agencies over the Internet.
(f) An audit of state grant funds may be authorized at any time by the Joint Committee on Government and Finance to be conducted by the Legislative Auditor at no cost to the grantee.
(g)
(1) Volunteer and part-volunteer fire departments receiving formula
distributions pursuant to §33-3-14D,
§33-3-33,
§33-12C-7
of this code shall either:
(A)
File a report, as defined in §12-4-14(a)(3)
of this code with the Legislative Auditor within the same time frames as are
required for sworn statements of annual expenditures to be filed under this
section. The report shall be made by an independent certified public accountant
at the cost of the volunteer or part-volunteer fire department. The scope of
the report is limited to showing that the funds distributed were spent for
authorized purposes; or
(B)
File a sworn statement of annual expenditures with the Legislative Auditor on
or before February 14 of each year. The sworn statement of expenditures shall
be signed by the chief or director of the volunteer fire department and shall
be made under oath and acknowledged before a notary public.
(2) If
the sworn statement or report required by this subsection is not filed on or
before May 15, unless the time period is extended by the Legislative Auditor,
the Legislative Auditor may conduct an audit of the volunteer or part-volunteer
fire department.
(3) If
the sworn statement of annual expenditures or report required by this
subsection is not filed with the Legislative Auditor by July 1, unless the time
period is extended by the Legislative Auditor, the Legislative Auditor shall
notify the State Treasurer who shall withhold payment of any amount that would
otherwise be distributed to the fire department under the provisions of §33-3-14D, §33-3-33,
§33-12C-7
of
this code until the report is complete. Moneys withheld pursuant to this
subdivision are to be deposited in the special revenue account created in the
State Treasury in §12-4-14(g)(4)
of
this code.
(4)
The Legislative Auditor may assign an employee or employees to perform audits
or reviews at the direction of the Legislative Auditor of the disbursement of
state grant funds to volunteer fire departments. The volunteer fire department
shall cooperate with the Legislative Auditor, the Legislative Auditor’s
employees and the State Auditor in performing their duties under this section.
If the Legislative Auditor determines a volunteer fire department is not
cooperating, the Legislative Auditor shall notify the State Treasurer who shall
withhold payment of any amount that would otherwise be distributed to the fire
department under the provisions of §33-3-14D,
§33-3-33,
§33-12C-7
of this code until the Legislative Auditor informs the Treasurer that the fire
department has cooperated as required by this section. The State Treasurer
shall pay the amount withheld into a special revenue account hereby created in
the State Treasury and designated the “Volunteer Fire Department Audit
Account”. If, after one year from payment of the amount withheld into the
special revenue account, the Legislative Auditor informs the State Treasurer of
continued noncooperation by the fire department, the State Treasurer shall pay
the amount withheld to the fund from which it was distributed to be
redistributed the following year pursuant to the applicable provisions of those
sections.
(5)
Whenever the State Auditor performs an audit of a volunteer fire department for
any purpose the Auditor shall also conduct an audit of other state funds
received by the fire department pursuant to §33-3-14D,
§33-3-33,
§33-12C-7
of this code. The Auditor shall send a copy of the audit to the Legislative
Auditor. The Legislative Auditor may accept an audit performed by the Auditor
in lieu of performing an audit under this section.
(6) If
the Legislative Auditor is notified by a grantor that a fire department has
failed to file a report or a sworn statement of expenditures for a state grant
it received, the Legislative Auditor shall notify the Treasurer who shall
withhold further distributions to the fire department in the same manner
provided in §12-4-14(g)(3)
of this code.
(h) (g)
Any report submitted pursuant to the provisions of this section may be filed
electronically in accordance with the provisions of §39A-1-1 et
seq. of this code.
(i) (h) Any person grantee
who files a fraudulent sworn statement of expenditures under subsection (b)
or (g) of this section subsection (b) of the section, a fraudulent sworn statement under subsection (d) of this section, or a fraudulent
report under this section is guilty of a felony and, upon conviction thereof,
shall be fined not less than $1,000 nor more than $5,000 or imprisoned in a
state correctional facility for not less than one year nor more than five
years, or both fined and imprisoned.
§12-4-14b. Accountability of volunteer and part-volunteer fire companies or departments receiving state funds for equipment and training; review or audit of expenditures; withholding of state funds for delinquency or misuse; notifications.
(a) Definitions. — For the purposes of this section:
“Equipment and training grant” means a grant of money to a volunteer fire company or a part-volunteer fire department from the Fire Service Equipment and Training Fund created in §29‑3‑5f of this code;
“Formula distribution” means a distribution of money to volunteer and part-volunteer fire companies or departments made pursuant to §33-3-14d, §33-3-33, and §33-12C-7 of this code; and
“State funds account” means a bank account established by a volunteer or part-volunteer fire company or department and maintained for the exclusive use and accounting of money from formula distributions and equipment and training grants.
(b) Filing required documentation. — Every volunteer and part-volunteer fire company or department seeking to receive formula distributions or an equipment and training grant shall file copies of bank statements and check images from the company’s or department’s state funds account for the previous calendar year with the Legislative Auditor on or before February 1 of each year.
(c) Reviews and audits. — The Legislative Auditor is authorized to conduct regular reviews or audits of deposits and expenditures from formula distribution and equipment and training grant funds by volunteer and part-volunteer fire companies or departments. The Legislative Auditor may assign an employee or employees to perform audits or reviews at his or her direction. The State Treasurer shall provide the Legislative Auditor information, in the manner designated by the Legislative Auditor, concerning formula distributions and equipment and training grants paid to volunteer or part-volunteer fire companies and departments. The volunteer or part-volunteer fire company or department shall cooperate with the Legislative Auditor, the Legislative Auditor’s employees, and the State Auditor in performing their duties under the laws of this state.
(d) State Auditor. — Whenever the State Auditor performs an audit of a volunteer or part-volunteer fire company or department for any purpose, the Auditor shall also conduct an audit of other state funds received by the company or department pursuant to §33-3-14d, §33-3-33, and §33-12C-7 of this code. The Auditor shall send a copy of the audit to the Legislative Auditor. The Legislative Auditor may accept an audit performed by the Auditor in lieu of performing an audit under this section.
(e) Withholding of funds. —The Treasurer is authorized to withhold payment of a formula distribution or an equipment and training grant from a volunteer or part-volunteer fire company or department, when properly notified by the Legislative Auditor pursuant to this section, of any of the following conditions:
(1) Failure to file, in a timely manner, copies of bank statements and check images with the Legislative Auditor;
(2) Failure to cooperate with a review or audit conducted by the Legislative Auditor;
(3) Misapplication of state funds; or
(4) Failure to file a report or a sworn statement of expenditures as required by §12-4-14 of this code for a state grant other than an equipment and training grant.
(f) Delinquency in filing. — If, after February 1, a volunteer or part-volunteer fire company or department has failed to file the required bank statements and check images with the Legislative Auditor, the Legislative Auditor shall notify the delinquent company or department at two separate times in writing of the delinquency and of possible forfeiture of its Fire Service Equipment and Training Fund distribution for the year. If the required bank statements and check images are not filed with the Legislative Auditor by March 31, unless the time period is extended by the Legislative Auditor, the Legislative Auditor shall then notify the Treasurer who shall withhold payment of any amount that would otherwise be distributed to the company or department. Prior to each subsequent quarterly disbursement of funds by the Treasurer, the Legislative Auditor shall notify each delinquent company or department twice per each quarter in which the company or department is delinquent. The Legislative Auditor may choose the method or methods of notification most likely to be received by the delinquent company or department.
(g) Noncooperation. — If, in the course of an audit or review by the Legislative Auditor, a volunteer or part-volunteer fire company or department fails to provide documentation of its accounts and expenditures in response to a request of the Legislative Auditor, the Legislative Auditor shall notify the State Treasurer who shall withhold payment of any amount that would otherwise be distributed to the company or department under the provisions of §33-3-14d, §33-3-33, and §33-12C-7 of this code until the Legislative Auditor informs the State Treasurer that the company or department has cooperated with the review or audit.
(h) Reporting of other grants. — Nothing in this section alters the duties and responsibilities of a volunteer or part-volunteer fire company or department imposed under §12-4-14 of this code if that company or department has received funds from any state grant program other than from the Fire Service Equipment and Training Fund. If the Legislative Auditor is notified by a grantor that a volunteer or part-volunteer fire company or department has failed to file a report or a sworn statement of expenditures for a state grant it received, the Legislative Auditor shall notify the State Treasurer who shall withhold further distributions to the company or department in the manner provided in this section.
(i) Escrow and forfeiture of moneys withheld. — The Volunteer Fire Department Audit Account previously created in the Treasury is hereby continued. When the State Treasurer receives notice to withhold the distribution of money to a volunteer or part-volunteer fire company or department pursuant to this section, the Treasurer shall instead deposit the amounts withheld into the Volunteer Fire Department Audit Account. If the Treasurer receives notice that the volunteer or part-volunteer fire company or department has come into compliance in less than one year from the date of deposit into this special revenue account, then the Treasurer shall release and distribute the withheld amounts to the company or department, except that any interest that has accrued thereon shall be credited to the general revenue of the state. If, after one year from payment of the amount withheld into the special revenue account, the Legislative Auditor informs the State Treasurer of continued noncooperation by the company or department, the delinquent company or department forfeits the amounts withheld and the State Treasurer shall pay the amounts withheld into Fire Service Equipment and Training Fund created in §29‑3‑5f of this code.
(j) Misuse of state money. — If the Legislative Auditor determines that a volunteer or part-volunteer fire company or department has used formula distribution money for purposes not authorized by §8-15-8b of this code or has used equipment and training grant money for purposes not authorized by the grant program, the Legislative Auditor shall give a written notice of noncompliance to the company or department. If a volunteer or part-volunteer fire company or department disagrees or disputes the finding, the company or department may contest the finding by submitting a written objection to the Legislative Auditor within five working days of receipt of the Legislative Auditor’s finding. The department or company shall then have 60 days from the date of the Legislative Auditor’s finding to provide documentation to substantiate that the expenditures were made for authorized purposes. If the volunteer or part-volunteer fire company or department does not dispute the findings of the Legislative Auditor or if the company or department is not able to substantiate an authorized purpose for the expenditure, the Legislative Auditor shall notify the Treasurer of the amount of misapplied money and the Treasurer shall deduct that amount from future distributions to that company or department until the full amount of unauthorized expenditure is offset.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 3. FIRE PREVENTION AND CONTROL ACT.
§29-3-5f. Fire Service Equipment and Training Fund; creation of fire service equipment and training grant; reports of ineligibility to State Fire Marshal.
(a)
There is hereby created in the Treasury a special revenue fund to be known as
the Fire Service Equipment and Training Fund.
Expenditures from the fund by the State Fire Marshal are authorized from
collections. The fund may only be used for the purpose of providing grants to
equip volunteer and part-volunteer fire companies and departments and their
members, and to train volunteer and part-volunteer firefighters. Any
balance remaining in the fund at the end of any fiscal year does not revert to
the General Revenue Fund, but remains in the Special Revenue Fund. The State Fire Marshal shall propose legislative rules
for promulgation in accordance with §29A-3-1 et seq. of this code to implement
the grant program established pursuant to this section
(b) The State Fire Marshal shall establish a grant program for equipment and training for volunteer and part-volunteer fire companies and departments. Such grant program shall be open to all volunteer and part-volunteer fire companies and departments. In making grants pursuant to this section, the State Fire Marshal shall consider:
(1) The number of emergency and nonemergency calls responded to by the company or department;
(2) The activities and responses of the company or department;
(3) The revenues received by the company or department from federal, state, county, municipal, local, and other sources; and
(4) The company’s or department’s assets, expenditures, and other liabilities, including whether the fire company or department has availed itself of available statewide contracts.
(c)
The State Fire Commission Marshal shall propose legislative rules
for promulgation in accordance with §29A-3-1 et seq. of this code to
implement the grant program established pursuant to this section.
(d) The Legislative Auditor shall notify the State Fire Marshal of any volunteer or part-volunteer fire company or department that is ineligible to receive grant funds due to the company’s or department’s failure to file required bank statements or financial reports or failure to comply with an audit or review by the Legislative Auditor. A volunteer or part-volunteer fire company or department reported by the Legislative Auditor shall be ineligible to receive funds under this section until the Legislative Auditor notifies the State Fire Marshal that the company or department has come into compliance.
§29-3-8. Comprehensive report by State Fire Marshal.
(a) On or before July 1, 2019, the State Fire Marshal
shall submit a comprehensive report to the Joint Committee on Government and
Finance containing a recommended plan for transferring authority and
responsibility for providing fire services to the counties. Such report shall
include, but not be limited to, recommendations regarding recommended state
oversight of such fire services; financial support for fire services, a plan
and timeline for transitioning responsibility and oversight to the counties;
and county authority, oversight, and accountability of operations, fiscal
planning, financial accountability, and risk management planning. The State
Fire Marshal shall solicit input from appropriate state agencies, county
officials, and other interested parties, which shall provide requested
information to the State Fire Marshal to assist in preparation of the report
and recommendation.
(b) On or before July 1, 2019, the State Fire
Marshal shall study, prepare, and submit a report to the Joint Committee on
Government and Finance regarding reciprocity of firefighter and fire officer
certification with other states. Such report shall include recommendations
regarding ways to increase availability of reciprocal certification, including
any necessary changes to state code or regulation necessary to facilitate
additional reciprocity.”
ADOPTED
REJECTED