Bill Text: WV SB420 | 2022 | Regular Session | Comm Sub
Bill Title: Relating to distribution of certain taxes and surcharges to benefit volunteer and part-volunteer fire departments
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2022-03-01 - To House Finance [SB420 Detail]
Download: West_Virginia-2022-SB420-Comm_Sub.html
WEST virginia legislature
2022 regular session
Committee Substitute
for
Senate Bill 420
By Senators Sypolt, Brown, Hamilton, Martin, Maynard, Stollings, Stover, Roberts, Baldwin, Phillips, Jeffries, Woelfel, Lindsay, Romano, Smith, Maroney, Nelson, Caputo, and Woodrum
[Originating in the Committee on Government Organization; reported on February 23, 2022]
A BILL to amend and reenact §29-3E-7 of the Code of West Virginia, 1931, as amended; and to amend and reenact §33-3-14d and §33-3-33 of said code, all relating generally to the distribution of certain taxes and surcharges to benefit volunteer and part-volunteer fire departments; defining terms; providing the method of allocation and distribution for proceeds of the fireworks safety fee deposited in the Fire Protection Fund; eliminating obsolete language; increasing certain policy surcharge; establishing effective date for policy surcharge increase; requiring the State Fire Marshal provide certain information to the State Treasurer; and clarifying the requirements for distribution of funds in the Fire Protection Fund.
Be it enacted by the Legislature of West Virginia:
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 3E. FIREWORKS SAFETY.
§29-3E-7. Fireworks safety fee; administration; tax crimes; collections; remittances; deposits; distributions; rules.
(a) In addition to the sales tax, a fireworks safety fee of 12 percent of all sales is levied on retail sales of consumer fireworks in this state. The fee shall be distributed pursuant to the provisions of this subsection. The fee computation under this subsection shall be carried to the third decimal place, and the fee rounded up to the next whole cent whenever the third decimal place is greater than four, and rounded down to the lower whole cent whenever the third decimal place is four or less.
The State Tax Commissioner shall disburse all proceeds of the fireworks safety fee into the State Treasury each month in the following manner:
(1) Seventy-five percent shall be deposited into a special account in the State Treasury, designated the Veterans’ Facility Support Fund established by the provisions of §9A-1-11 of this code for expenditure on veterans’ programs.
(2) Twenty-five percent
shall be deposited into a special account in the State Treasury, designated the
Fire Protection Fund established in §33-3-33 of this code and shall be allocated and distributed in accordance
with that section to each volunteer fire company or department on an equal
share basis by the State Treasurer according to the requirements of §33-3-33
of this code.
(b) A person who purchases consumer fireworks in a retail transaction shall pay to the retailer the amount of the fee levied by this section, which fee is added to and constitutes a part of the sale price, and is collectible by the retailer who shall account to the state for all fees paid by a purchaser. If the retailer fails to collect the fee or fails to account to the state for the fees paid by a purchaser, then the retailer is liable for the payment of the fee to the state.
(c) A retailer shall remit to the State Tax Commissioner no later than 30 days after the end of each preceding month all moneys collected for such preceding month, pursuant to the requirements of this section, and shall report such collections on forms and in the manner prescribed by the State Tax Commissioner.
(d) All moneys so remitted, net of refunds and adjustments, shall be paid by the State Tax Commissioner into the funds specified in this section.
(e) Each and every provision of the West Virginia Tax Crimes and Penalties Act set forth §11-9-1 et seq. of this code applies to the fees imposed pursuant to this article, with like effect as if that act were applicable only to the fees imposed by this article and were set forth in extenso in this article.
(f) The State Tax Commissioner shall propose legislative rules and may promulgate such emergency rules as are necessary to implement the provisions of this article.
chapter 33. insurance.
ARTICLE 3. LICENSING, FEES, AND TAXATION OF INSURERS.
§33-3-14d. Additional fire and casualty insurance premium tax; allocation of proceeds; effective date.
(a) (1) 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 taxable premiums 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.
(2) All moneys collected
from this additional tax shall be received by the commissioner and paid by him
or her into a special account in the State Treasury, designated the Municipal
Pensions and Protection Fund, to be allocated as follows: Provided,
That on or after January 1, 2010, the commissioner shall pay
(A) Ten percent of the amount collected to shall
be deposited in the Teachers Retirement System Reserve Fund created in §18-7A-18 of
this code;
(B) Twenty-five percent of the amount collected to
shall be deposited in the Fire Protection Fund created in section 33
of this article for allocation distribution by the State Treasurer
to volunteer and part-volunteer fire companies and departments according to
the requirements of §33-3-33 of this code; and
65% of the amount
collected to the Municipal Pensions and Protection Fund: Provided, however, That
upon notification by the Municipal Pensions Oversight Board pursuant to the
provisions of §8-22-18b of this code, on or after January 1, 2010, or
as soon thereafter as the Municipal Pensions Oversight Board is prepared to
receive the funds,
(C) Sixty-five percent of the amount collected by the
commissioner shall be deposited in the Municipal Pensions Security Fund created
in §8-22-18b
of this code the net proceeds of this tax after appropriation thereof by the
Legislature is to be distributed in accordance with the provisions
of this section, except for distribution from proceeds pursuant to §8-22-8a(d) §8-22-18a(d) of this code.
(b) Municipal Pensions Security Fund allocation and distribution —
(1) Before August 1 of each
year, the treasurer of each municipality in which a municipal policemen’s or
firemen’s pension and relief fund is established shall report to the State
Treasurer Municipal Pensions Oversight Board the average monthly
number of members who worked at least 100 hours per month and the average
monthly number of retired members of municipal policemen’s or firemen’s pension
and relief fund or the Municipal Police Officers and Firefighters Retirement
System during the preceding fiscal year. Provided, That
beginning in the year 2010 and continuing thereafter, the report shall be made
to the oversight board created in §8-22-18a. These
reports received by the oversight board shall be provided The reports
received by the Municipal Pensions Oversight Board shall be provided
annually to the State Treasurer by September 1.
(2) Before September 1
of each calendar year, the State Treasurer, or the Municipal Pensions Oversight
Board once in operation, 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.
Before September 1 of each calendar year, and after the Municipal Pensions
Oversight Board has notified the Treasurer and commissioner pursuant to §8-22-18b
of this code, the Municipal Pensions
Oversight Board shall allocate and authorize for distribution the revenues in
the Municipal Pensions Security Fund which were collected during the preceding
calendar year for the purposes set forth in this section. In any year the
actuarial report required by §8-22-20 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 or the
Municipal Pensions Security Fund to that fund. The revenues from the Municipal
Pensions and Protection Security Fund shall then be allocated to
all other pension and relief funds which have an actuarial deficiency.
(3) The Municipal
Pensions Oversight Board shall annually review the investment performance of
each municipal policemen's or firemen's pension and relief fund. If the
municipal pension and relief fund's board fails for three consecutive years to
comply with the investment provisions established by §8-22-22a
of this code, the oversight board may require the municipal policemen's or
firemen's pension and relief fund to invest with the Investment Management
Board to continue to receive its allocation of funds from the premium tax. If
the municipal pension and relief fund fails to move its investments to the
Investment Management Fund within the 18-month drawdown period, provided in §8-22-19(e)
of this code, the revenues shall be reallocated to all other municipal
policemen's or firemen's pension and relief funds that have drawn down one
hundred percent of their allocations.
(4) 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 §8-15-8a 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
on the corresponding municipality's average monthly number of police officers
and firefighters who worked at least one hundred hours per month during the
preceding fiscal year. On and after July 1, 1997, from
(3) The Municipal
Pensions Oversight Board shall allocate and distribute the growth in any moneys collected pursuant to
a pro rata share of the tax imposed by this section and earnings and
interest thereon there shall be allocated and authorized for distribution
to each municipal policemen’s or municipal firemen’s pension and relief
fund, a pro rata share of the revenues allocated to municipal policemen's
and firemen's pension and relief funds based on the corresponding
municipality's average number of police officers and firefighters who worked at
least 100 hours per month during the preceding fiscal year and average
monthly number of retired police officers and firefighters during the
preceding fiscal year. For the purposes of this subsection, the growth
in moneys collected from earnings the tax collected pursuant to this
section is determined by subtracting the amount of the tax collected during the
fiscal year ending June 30, 1996, from the tax collected during the fiscal year
for which the allocation is being made and interest thereon. All moneys
received by municipal pension and relief funds under this section may be
expended only for those purposes described in §8-22-16 through §8-22-28 §8-22-28a
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 the 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 and relief fund or the
Municipal Police Officers and Firefighters Retirement System to the total
number of members of the fire department.
(d) (4) The allocation and distribution of
revenues provided in this section are subject to the provisions of §8-22-20, §8-15-8a, and §8-15-8b of said
chapter this code.
(e) Based upon the
findings of an audit by the Treasurer, the Legislature hereby finds and
declares that during the period of 1982 through April 27, 2012, allocations
from the Municipal Pensions and Protection Fund were miscalculated and errors
were made in amounts transferred, resulting in overpayments and underpayments
to the relief and pension funds and to the Teachers Retirement System, and that
the relief and pension funds and the Teachers Retirement System were not at
fault for any of the overpayments and underpayments. The Legislature hereby
further finds and declares that any attempt by the Municipal Pension Oversight
Board or other entity to recover any of the overpayments would be unjust and
create economic hardship for the entities that received overpayments. No
entity, including, without limitation, the Municipal Pension Oversight Board,
may seek to recover from a relief or pension fund, the Teachers Retirement
System or the state any overpayments received from the Municipal Pensions and
Protection Fund and the overpayments are not subject to recovery, offset or
litigation. Pursuant to the audit by the Treasurer, the amount of $3,631,846.55
is determined owed to specific relief and pension funds through the period of
April 27, 2012. The Treasurer is hereby authorized to transfer the amount of
$3,631,846.55 from the Unclaimed Property Trust Fund to the Municipal Pensions
and Protection Fund, which is hereby reopened for the sole purpose of the
transfer and remittances pursuant to this subsection, and to use the amount
transferred to remit the amounts due to the pension and relief funds. The
payment of $3,631,846.55 to the pension and relief funds is complete
satisfaction of any amounts due and no entity, including, without limitation,
the Municipal Pension Oversight Board and any pension or relief fund, may seek
to recover any further amounts.
(c) The Municipal Pensions Oversight Board shall annually review the investment performance of each municipal policemen’s or firemen’s pension and relief fund. If a municipal pension and relief fund’s board fails for three consecutive years to comply with the investment provisions established by §8-22-22a of this code, the oversight board may require the municipal policemen’s or firemen’s pension and relief fund to invest with the Investment Management Board to continue to receive its allocation of funds from the premium tax. If the municipal pension and relief fund fails to move its investments to the Investment Management Fund within the 18-month drawdown period provided in §8-22-19(e) of this code, the revenues shall be reallocated to all other municipal policemen's or firemen's pension and relief funds that have drawn down 100 percent of their allocations.
§33-3-33. Surcharge on
fire and casualty insurance policies to benefit volunteer and part-volunteer
fire departments; Public Employees Insurance Agency and municipal pension
plans; special fund created; Fire Protection Fund; allocation of
proceeds. effective date.
(a)(1) For the purpose
of providing additional revenue for volunteer fire departments, part-volunteer
fire departments and certain retired teachers and the teachers retirement
reserve fund, there is hereby authorized and imposed on and after July 1, 1992,
on the policyholder of any fire insurance policy or casualty insurance policy issued
by any insurer, authorized or unauthorized, or by any risk retention group, a
policy surcharge equal to one percent of the taxable premium for each such
policy. After June 30, 2005, the surcharge shall be imposed as specified in
subdivisions (2) and (3) of this subsection.
(2) After June 30, 2005,
through December 31, 2005, for the purpose of providing additional revenue for
volunteer fire departments, part-volunteer fire departments and to provide
additional revenue to the Public Employees Insurance Agency and municipal
pension plans, there is hereby authorized and imposed on and after July 1,
2005, on the policyholder of any fire insurance policy or casualty insurance
policy issued by any insurer, authorized or unauthorized, or by any risk
retention group, a policy surcharge equal to one percent of the taxable premium
for each such policy.
(a) For the purposes of this section:
(1) “Full-time paid members” means the members of a fire department who are compensated to provide services to the department on a full-time basis and are also members of a municipal firemen’s pension and relief fund or the Municipal Police Officers and Firefighters Retirement System.
(2) The “policy surcharge” refers to the surcharge on certain insurance policies imposed by subsection (b) of this section.
(3) “Volunteer fire departments” or “departments” includes volunteer and part-volunteer fire departments and companies, as described in §18-15-1 et seq. of this code.
(3) (b) After December 31, 2005, December
31, 2022, for the purpose of providing additional revenue for volunteer
fire departments and part-volunteer fire departments, there is hereby
authorized and imposed on the policyholder of any fire insurance policy or
casualty insurance policy issued by any insurer, authorized or unauthorized, or
by any risk retention group, a policy surcharge equal to 0.055% one
percent of the taxable premium for each such policy. The policy
surcharge is separate from and in addition to the tax imposed by §33-3-14d
of this code.
(4) (c) For purposes of this section, casualty
insurance may 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. The policy surcharge may is not be
subject to premium taxes, agent commissions, or any other assessment against
premiums.
(b) (d) The policy surcharge imposed by this
section shall be collected and remitted to the commissioner by the insurer,
or in the case of surplus lines coverage, by the surplus lines licensee, or if
the policy is issued by a risk retention group, by the risk retention group.
The amount required to be collected under this section shall be remitted to the
commissioner on a quarterly basis on or before the 25th 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 remitted on or before March 1
of the succeeding year. All money from the policy surcharge shall be
collected by the commissioner who shall disburse all of the money received from
the surcharge into the Fire Protection Fund for distribution as provided in
subsection (f) of this section.
(c) (e) Any person 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 $100 for each day of delinquency, to be assessed by the
commissioner. The commissioner may suspend the insurer, broker, or risk
retention group until all surcharge payments and penalties are remitted in full
to the commissioner.
(d) (f) Fire Protection Fund allocation and
distribution. —
(1) 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 State Treasurer’s Office shall
distribute the net proceeds of this portion of the tax the policy
surcharge, the amount deposited into the Fire Protection Fund pursuant to
§29-3E-7 of this code, the amount deposited into the Fire Protection Fund
pursuant to §33-3-14d of this code, and the interest thereon on a
quarterly basis, after appropriation by the Legislature. shall be
distributed quarterly The distributions shall occur on the first day
of the months of January, April, July, and October to each eligible
volunteer fire company or department, on an equal share basis by the
state Treasurer. After June 30, 2005, the money received from the surcharge
shall be distributed as specified in subdivisions (2) and (3) of as provided
in this subsection.
(2)(A) After June 30,
2005, through December 31, 2005, all money from the policy surcharge shall be
collected by the Commissioner who shall disburse one half of the money received
from the surcharge into the Fire Protection Fund for distribution as provided
in subdivision (1) of this subsection.
(B) The remaining
portion of moneys collected shall be transferred into the fund in the state
Treasury of the Public Employees Insurance Agency into which are deposited the proportionate
shares made by agencies of this state of the Public Employees Insurance Agency
costs of those agencies, until November 1, 2005. After the October 31, 2005,
through December 31, 2005, the remain portion shall be transferred to the
special account in the state Treasury, known as the Municipal Pensions and
Protection Fund.
(3) After December 31,
2005, all money from the policy surcharge shall be collected by the
Commissioner who shall disburse all of the money received from the surcharge
into the Fire Protection Fund for distribution as provided in subdivision (1)
of this subsection.
(4) (2) Before each distribution date to volunteer
fire companies or departments, the State Fire Marshal shall report to
the State Treasurer:
(A) The names and addresses of all volunteer and
part-volunteer fire companies and departments within the state which
meet met the eligibility requirements established in §8-15-8a of this
code during the preceding quarter; and
(B) The number of volunteer firefighters and the number of full-time paid members providing services to each volunteer and part-volunteer department during the preceding quarter.
(3) Each eligible volunteer fire department shall receive an equal share of the amount of proceeds to be distributed each quarter: Provided, That each part-volunteer department’s share will be reduced by a percentage amount equal to the percentage of the members of the fire department who are full-time paid members of the department, according to the report described in subdivision (2) of this subsection.
(e) (g) The allocation, distribution, and use of
revenues provided in the Fire Protection Fund are subject to the provisions of §8-15-8a and §8-15-8b of this
code.
