SB 1006 — Relating to fire and casualty insurance premium tax

CS for SB 1006 WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee FISCALSubstitute for Senate Bill 1006 NOTE By Senator Morris [Introduced[Reported February 19,24, 2026;2026, from the Committee on Government Organization] CS for SB 1006 A BILL to amend and reenact §33-3-14d of the Code of West Virginia, 1931, as amended, relating to fire and casualty insurance premium tax;

referredand providing equal share of certain funds to thecertain Committeefire oncompanies Governmentand Organization;departments.

and then to the Committee on Finance] Intr SB 1006 2026R4234 A BILL to amend and reenact §33-3-14d of the Code of West Virginia, 1931, as amended, relating to fire and casualty insurance premium tax;

and providing equal share of funds to the fire companies and departments.

LICENSING, FEESFEES, AND TAXATION OF INSURERS.

(2) (1) 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:Fund.

Provided, That on or after January 1, 2010, the The commissioner shall pay 10 percent of the amount collected to the Teachers Retirement System Reserve Fund created in §18-§18-7A-18 7A-18 of this code, 25 percent of the amount collected to the Fire Protection Fund created in §33-§33-3-33 3-33 of this code for allocation by the Treasurer to volunteer and part-volunteer fire companies and departmentsdepartments, and 65 percent 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 this code, on or after January 1, 2010, or as soon thereafter as the Municipal Pensions Oversight Board is prepared to receive the funds, 65 percent of the amount collected by the commissioner shall be deposited in the Municipal Pensions Intr1 CS for SB 1006 2026R4234 Security Fund created in §8-22-18b of this code.

(b)(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 created in §8-22-18a of this code 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:

(2) (1) 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.

The revenues from the Municipal Pensions and Protection Fund shall then be allocated to all other pension and relief funds which have an actuarial 2 CS for SB 1006 deficiency.

Pension funding revenue bonds include bonds of a municipality’s building commission Intr SB 1006 2026R4234 the net proceeds of which were used to fund either or both of a municipality’s policemen’s or firemen’s pension and relief fund or bonds issued to refinance such bonds.

(3) (2) 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 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 one100 hundred percent of their allocationsallocations. (4) (3) The moneys, and the interest earned thereon, in the Municipal Pensions and Fire 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.

(4) (3) The moneys, and the interest earned thereon, in the Municipal Pensions and Fire 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.

On and after July 1, 1997, from the growth in any moneys collected pursuant to the tax imposed by this section and interest thereon 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 3 CS for SB 1006 policemen’s and firemen’s pension and relief funds based on the corresponding municipality’s Intr SB 1006 2026R4234 average number of police officers and firefighters who worked at least 100 hours per month and average monthly number of retired police officers and firefighters.

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 28a§8-22-28a inclusive, of this code.

(2) (1) 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) (2) In addition to the share allocated and distributed in accordance with subdivision (1) (c) 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) (1) of this subsectionsubsection. 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.

Ifreduced aby municipalityan hasamount outstandingequal pensionto fundingthe revenueshare bondsmultiplied andby continuesthe toratio payof the normalnumber cost of itsfull-time policemen’spaid andfire firemen’sdepartment pensionmembers andwho reliefare funds,also thenmembers theof sharea thatmunicipal would otherwise be payable to the municipality’s firemen’s pension and relief fund pursuantor tothe thisMunicipal subsectionPolice shallOfficers beand paidFirefighters Retirement System to the trusteetotal number of suchmembers outstandingof pensionthe fundingfire revenuedepartment. bonds.

(d)If Thea allocationmunicipality has outstanding pension funding revenue bonds and distributioncontinues to pay the normal cost of revenuesits providedpolicemen’s inand thisfiremen’s sectionpension areand subjectrelief funds, then the share that would otherwise be payable to the Intrmunicipality’s SBfiremen’s 1006pension 2026R4234and provisionsrelief offund §8-22-20pursuant ofto this codesubsection andshall §8-15-8abe andpaid §8-15-8bto the trustee of thissuch code.outstanding pension funding 4 CS for SB 1006 revenue bonds.

(d) The allocation and distribution of revenues provided in this section are subject to the provisions of §8-22-20, of this code and §8-15-8a, and §8-15-8b of this code.

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, offsetoffset, or litigation.

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 NOTE:Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.

The5 purposeCS offor thisSB bill1006 relates6 to providing equal share of funds from the fire and casualty premium tax to the departments.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.