1.1                                        A bill for an act&#10;1.2     relating to public safety; establishing the fire safety account from revenues on &#10;1.3     fire premiums and assessments; abolishing the fire insurance tax; appropriating &#10;1.4     money; amending Minnesota Statutes 2004, section 297I.30, by adding a &#10;1.5     subdivision; proposing coding for new law in Minnesota Statutes, chapters 297I; &#10;1.6     299F; repealing Minnesota Statutes 2004, section 297I.05, subdivision 6.&#10;1.7     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:&#10;&#10;<a id="go.0.1.0"></a>1.8         Section 1. <ins><b>[297I.06] SURCHARGES ON FIRE SAFETY PREMIUMS.</b></ins>&#10;1.9         <ins>Subdivision 1.</ins> <ins><b>Insurance policies surcharge.</b></ins> <ins>(a) Except as otherwise provided </ins>&#10;1.10    <ins>in subdivision 2, each insurer engaged in writing policies of homeowner's insurance </ins>&#10;1.11    <ins>authorized in section 60A.06, subdivision 1, clause (1)(c), or commercial fire policies or </ins>&#10;1.12    <ins>commercial nonliability policies shall collect a surcharge equal to 0.65 percent of the </ins>&#10;1.13    <ins>gross premiums and assessments, less return premiums, on direct business received by </ins>&#10;1.14    <ins>the company, or by its agents for it, for homeowner's insurance policies, commercial fire </ins>&#10;1.15    <ins>policies, and commercial nonliability insurance policies in this state.</ins>&#10;1.16    <ins>(b) The surcharge amount collected under paragraph (a) may not be considered </ins>&#10;1.17    <ins>premium for any other purpose. The surcharge amount must be separately stated on either </ins>&#10;1.18    <ins>a billing or policy declaration sent to an insured.</ins>&#10;1.19    <ins>(c) Amounts collected by the commissioner under this section must be deposited in </ins>&#10;1.20    <ins>the fire safety account established pursuant to subdivision 3.</ins>&#10;1.21        <ins>Subd. 2.</ins> <ins><b>Exemptions.</b></ins> <ins>(a) This section does not apply to a farmers' mutual fire </ins>&#10;1.22    <ins>insurance company or township mutual fire insurance company in Minnesota organized </ins>&#10;1.23    <ins>under chapter 67A.</ins>&#10;1.24    <ins>(b) An insurer described in section 297I.05, subdivisions 3 and 4, authorized to </ins>&#10;1.25    <ins>transact business in Minnesota shall elect to remit to the Department of Revenue for </ins>&#10;2.1     <ins>deposit in the fire safety account either (1) the surcharge amount collected under this </ins>&#10;2.2     <ins>section, or (2) a surcharge of one-half of one percent on the gross fire premiums and </ins>&#10;2.3     <ins>assessments, less return premiums, on all direct business received by the insurer or agents </ins>&#10;2.4     <ins>of the insurer in Minnesota, in cash or otherwise, during the year. </ins>&#10;2.5     <ins>(c) For purposes of this subdivision, "gross fire premiums and assessments" includes </ins>&#10;2.6     <ins>premiums on policies covering fire risks only on automobiles, whether written or under </ins>&#10;2.7     <ins>floater form or otherwise.</ins>&#10;2.8         <ins>Subd. 3.</ins> <ins><b>Fire safety account, annual transfers, allocation.</b></ins> <ins>A special account, to </ins>&#10;2.9     <ins>be known as the fire safety account, is created in the state treasury. The account consists of </ins>&#10;2.10    <ins>the proceeds under subdivisions 1 and 2. $468,000 in fiscal year 2008 and $2,268,000 in </ins>&#10;2.11    <ins>each year thereafter is transferred from the fire safety account in the special revenue fund </ins>&#10;2.12    <ins>to the general fund to offset the loss of revenue caused by the repeal of the one-half of one </ins>&#10;2.13    <ins>percent tax on fire insurance premiums. The general fund base appropriation for the fire </ins>&#10;2.14    <ins>marshal program is reduced by $2,832,000 in fiscal year 2008 and each year thereafter. </ins>&#10;2.15    <ins>Beginning in fiscal year 2008 and each year thereafter, $2,832,000 is appropriated from </ins>&#10;2.16    <ins>the fire safety account in the special revenue fund to the commissioner of public safety for </ins>&#10;2.17    <ins>the fire marshal program. </ins>&#10;&#10;<a id="go.0.2.0"></a>2.18        Sec. 2. Minnesota Statutes 2004, section 297I.30, is amended by adding a subdivision &#10;2.19    to read:&#10;2.20        <ins>Subd. 8.</ins> <ins><b>Fire insurance surcharge.</b></ins> <ins>On or before May 15, August 15, November </ins>&#10;2.21    <ins>15, and February 15 of each year, every insurer required to pay the surcharge under section </ins>&#10;2.22    <ins>297I.06, subdivisions 1 and 2, shall file a return with the commissioner for the preceding </ins>&#10;2.23    <ins>three-month period ending March 31, June 30, September 30, and December 31, setting </ins>&#10;2.24    <ins>forth any information the commissioner reasonably requires on forms prescribed by the </ins>&#10;2.25    <ins>commissioner.</ins>&#10;&#10;<a id="go.0.3.0"></a>2.26        Sec. 3. <ins><b>[299F.012] FIRE SAFETY ACCOUNT.</b></ins>&#10;2.27        <ins>Subdivision 1.</ins> <ins><b>Authorized programs within department.</b></ins> <ins>From the revenues </ins>&#10;2.28    <ins>appropriated from the fire safety account, established under section 297I.06, subdivision </ins>&#10;2.29    <ins>3, the commissioner of public safety may expend funds for the activities and programs </ins>&#10;2.30    <ins>identified by the advisory committee established under subdivision 2 and recommended to </ins>&#10;2.31    <ins>the commissioner of public safety. The commissioner shall not expend funds without the </ins>&#10;2.32    <ins>recommendation of the advisory committee established under subdivision 2. These funds </ins>&#10;2.33    <ins>are to be used to provide resources needed for identified activities and programs of the </ins>&#10;3.1     <ins>Minnesota fire service and to ensure the State Fire Marshal Division responsibilities are </ins>&#10;3.2     <ins>fulfilled.</ins>&#10;3.3         <ins>Subd. 2.</ins> <ins><b>Fire Service Advisory Committee.</b></ins> <ins>The Fire Service Advisory Committee </ins>&#10;3.4     <ins>shall provide recommendations to the commissioner of public safety on fire service related </ins>&#10;3.5     <ins>issues and shall consist of representatives of each of the following organizations: two </ins>&#10;3.6     <ins>appointed by the president of the Minnesota State Fire Chiefs Association, two appointed </ins>&#10;3.7     <ins>by the president of the Minnesota State Fire Department Association, two appointed by </ins>&#10;3.8     <ins>the president of the Minnesota Professional Fire Fighters, two appointed by the president </ins>&#10;3.9     <ins>of the League of Minnesota Cities, one appointed by the president of the Minnesota </ins>&#10;3.10    <ins>Association of Townships, one appointed by the president of the Insurance Federation </ins>&#10;3.11    <ins>of Minnesota, one appointed jointly by the presidents of the Minnesota Chapter of the </ins>&#10;3.12    <ins>International Association of Arson Investigators and the Fire Marshals Association of </ins>&#10;3.13    <ins>Minnesota, and the commissioner of public safety or the commissioner's designee. The </ins>&#10;3.14    <ins>commissioner of public safety must ensure that at least three of the members of the </ins>&#10;3.15    <ins>advisory committee work and reside in counties outside of the seven-county metropolitan </ins>&#10;3.16    <ins>area. The committee shall provide funding recommendations to the commissioner of </ins>&#10;3.17    <ins>public safety from the fire safety fund for the following purposes:</ins>&#10;3.18    <ins>(1) for the Minnesota Board of Firefighter Training and Education;</ins>&#10;3.19    <ins>(2) for programs and staffing for the State Fire Marshal Division; and</ins>&#10;3.20    <ins>(3) for fire-related regional response team programs and any other fire service </ins>&#10;3.21    <ins>programs that have the potential for statewide impact.</ins>&#10;3.22        <ins>Subd. 3.</ins> <ins><b>Report; accounting; carryover.</b></ins> <ins>The commissioner of public safety shall, </ins>&#10;3.23    <ins>by December 1 of each year, (1) provide an accounting of how the funds in the fire safety </ins>&#10;3.24    <ins>account were spent in the preceding fiscal year and (2) report any funds not spent in a </ins>&#10;3.25    <ins>fiscal year to the chairs of the committees of the house of representatives and the senate </ins>&#10;3.26    <ins>having jurisdiction over public safety finance. Money in the account does not cancel but </ins>&#10;3.27    <ins>remains available for expenditures for the programs identified in subdivisions 1 and 2.</ins>&#10;&#10;<a id="go.0.4.0"></a>3.28        Sec. 4. <ins><b> REPEALER.</b></ins>&#10;3.29    <ins>Minnesota Statutes 2004, section 297I.05, subdivision 6,</ins><ins> is repealed.</ins>&#10;&#10;<a id="go.0.5.0"></a>3.30        Sec. 5. <ins><b>EFFECTIVE DATE; APPLICATION.</b></ins>&#10;3.31    <ins>Sections 1 to 4 are effective July 1, 2007, and apply to policies written or renewed </ins>&#10;3.32    <ins>on or after that date.</ins>&#10;