Bill Text: MN HF2860 | 2011-2012 | 87th Legislature | Engrossed


Bill Title: Fire safety account regulated, and money appropriated for fire safety services.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-04-24 - House rule 1.22, notice of intent to place on Fiscal Calendar Wednesday, April 25, 2012 [HF2860 Detail]

Download: Minnesota-2011-HF2860-Engrossed.html

1.1A bill for an act
1.2relating to public safety; regulating the fire safety account; appropriating money
1.3for fire safety services;amending Minnesota Statutes 2010, sections 297I.06,
1.4subdivision 1; 299F.012, subdivision 1, by adding a subdivision; Minnesota
1.5Statutes 2011 Supplement, sections 16A.152, subdivision 2; 297I.06, subdivision
1.63.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8ARTICLE 1
1.9FIRE SAFETY ACCOUNT

1.10    Section 1. Minnesota Statutes 2011 Supplement, section 16A.152, subdivision 2,
1.11is amended to read:
1.12    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
1.13fund revenues and expenditures, the commissioner of management and budget determines
1.14that there will be a positive unrestricted budgetary general fund balance at the close of
1.15the biennium, the commissioner of management and budget must allocate money to the
1.16following accounts and purposes in priority order:
1.17    (1) the cash flow account established in subdivision 1 until that account reaches
1.18$350,000,000;
1.19    (2) the budget reserve account established in subdivision 1a until that account
1.20reaches $653,000,000;
1.21    (3) the amount necessary to increase the aid payment schedule for school district
1.22aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
1.23nearest tenth of a percent without exceeding the amount available and with any remaining
1.24funds deposited in the budget reserve;
2.1    (4) the amount necessary to restore all or a portion of the net aid reductions under
2.2section 127A.441 and to reduce the property tax revenue recognition shift under section
2.3123B.75, subdivision 5 , by the same amount; and
2.4(5) to the state airports fund, the amount necessary to restore the amount transferred
2.5from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
2.6subdivision 5; and.
2.7(6) to the fire safety account in the special revenue fund, the amount necessary to
2.8restore transfers from the account to the general fund made in Laws 2010.
2.9    (b) The amounts necessary to meet the requirements of this section are appropriated
2.10from the general fund within two weeks after the forecast is released or, in the case of
2.11transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
2.12schedules otherwise established in statute.
2.13    (c) The commissioner of management and budget shall certify the total dollar
2.14amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
2.15education. The commissioner of education shall increase the aid payment percentage and
2.16reduce the property tax shift percentage by these amounts and apply those reductions to
2.17the current fiscal year and thereafter.

2.18    Sec. 2. Minnesota Statutes 2010, section 297I.06, subdivision 1, is amended to read:
2.19    Subdivision 1. Insurance policies surcharge. (a) Except as otherwise provided in
2.20subdivision 2, each licensed insurer engaged in writing policies of homeowner's insurance
2.21authorized in section 60A.06, subdivision 1, clause (1)(c), or commercial fire policies or
2.22commercial nonliability policies shall collect a surcharge as provided in this paragraph.
2.23Through June 30, 2012, the surcharge is equal to 0.65 percent of the gross premiums
2.24and assessments, less return premiums, on direct business received by the company, or
2.25by its agents for it, for homeowner's insurance policies, commercial fire policies, and
2.26commercial nonliability insurance policies in this state and beginning July 1, 2013, the
2.27surcharge is reduced to 0.5 percent.
2.28    (b) The surcharge amount collected under paragraph (a) or subdivision 2, paragraph
2.29(b), may not be considered premium for any other purpose. The surcharge amount
2.30under paragraph (a) must be separately stated on either a billing or policy declaration or
2.31document containing similar information sent to an insured.
2.32    (c) Amounts collected by the commissioner under this section must be deposited in
2.33the fire safety account established pursuant to subdivision 3.

3.1    Sec. 3. Minnesota Statutes 2011 Supplement, section 297I.06, subdivision 3, is
3.2amended to read:
3.3    Subd. 3. Fire safety account, annual transfers, allocation. A special account, to
3.4be known as the fire safety account, is created in the state treasury. The account consists of
3.5the proceeds under subdivisions 1 and 2. $4,227,000 in fiscal year 2012, $4,228,000 in
3.6fiscal year 2013, and $2,368,000 in each year thereafter fiscal year 2012 and fiscal year
3.72013 is transferred from the fire safety account in the special revenue fund to the general
3.8fund to offset the loss of revenue caused by the repeal of the one-half of one percent
3.9tax on fire insurance premiums.

3.10    Sec. 4. Minnesota Statutes 2010, section 299F.012, subdivision 1, is amended to read:
3.11    Subdivision 1. Authorized programs within department. From the revenues
3.12appropriated from the fire safety account, established under section 297I.06, subdivision
3.133, the commissioner of public safety may expend funds for the activities and programs
3.14identified by the advisory committee established under subdivision 2 and recommended
3.15to the commissioner of public safety, consistent with the distribution of funds under
3.16subdivision 1a. The commissioner shall not expend funds without the recommendation
3.17of the advisory committee established under subdivision 2. These funds are to be used
3.18to provide resources needed for identified activities and programs of the Minnesota fire
3.19service and to ensure the State Fire Marshal Division responsibilities are fulfilled.

3.20    Sec. 5. Minnesota Statutes 2010, section 299F.012, is amended by adding a subdivision
3.21to read:
3.22    Subd. 1a. Distribution of fire safety account. (a) On June 30, 2013, any unallocated
3.23balance in the fire safety account under section 297I.06, subdivision 3, is appropriated to
3.24the commissioner of public safety to be allocated as follows: 45 percent of the unallocated
3.25balance for the State Fire Marshal Division, and 55 percent to be distributed according to
3.26the recommendations of the advisory committee under subdivision 2 for the Minnesota
3.27Board of Firefighter Training and Education and for fire-related regional response team
3.28programs and other fire service programs with potential for statewide impact.
3.29(b) Beginning in fiscal year 2014 and thereafter, the revenue in the fire safety
3.30account under section 297I.06, subdivision 3, is appropriated to the commissioner of
3.31public safety to be allocated as follows: 45 percent of the unallocated balance for the State
3.32Fire Marshal Division, and 55 percent to be distributed according to the recommendations
3.33of the advisory committee under subdivision 2 for the Minnesota Board of Firefighter
4.1Training and Education and for fire-related regional response team programs and other
4.2fire service programs with potential for statewide impact.

4.3ARTICLE 2
4.4FIRE SAFETY SERVICES APPROPRIATION

4.5    Section 1. FIRE SAFETY; APPROPRIATION.
4.6$4,500,000 is appropriated in fiscal year 2013 from the fire safety account in the
4.7special revenue fund to the commissioner of public safety for activities and programs
4.8under Minnesota Statutes, section 299F.012. This is a onetime appropriation.
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