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Current Status Bill Number:View additional legislative information at the LPITS web site.3563 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:20010215 Primary Sponsor:Quinn All Sponsors:Quinn, Bales, Davenport, Lourie Drafted Document Number:l:\council\bills\bbm\9911htc01.doc Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Fire insurance premiums, revenues used for capital improvements for Fire and Life Safety of Labor, Licensing, Regulation History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ House 20020417 Recommitted to Committee 30 HWM House 20020416 Debate adjourned until Wednesday, 20020417 House 20020411 Debate adjourned until Tuesday, 20020416 House 20020410 Debate adjourned House 20020403 Committee report: Favorable 30 HWM House 20010502 Co-Sponsor added (Rule 5.2) by Rep. Lourie House 20010215 Introduced, read first time, 30 HWM referred to Committee Versions of This Bill Revised on April 3, 2002 - Word format
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Indicates New Matter
COMMITTEE REPORT
April 3, 2002
H. 3563
S. Printed 4/3/02--H.
Read the first time February 15, 2001.
To whom was referred a Bill (H. 3563) to amend Act 1377 of 1968, as amended, relating to the authorization of State Capital Improvement Bonds, so as to update references, make permanent the additional tax of thirty, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
ROBERT W. HARRELL, JR. for Committee.
REVENUE IMPACT 1/
This bill is expected to reduce general fund revenue by an estimated $750,000 in FY 2000-01, and also transfer an estimated $2.5 million of other funds from the Office of State Treasurer to the Dept. of Labor, Licensing, and Regulation, Division of Fire and Life Safety in FY 2001-02 and each fiscal year thereafter.
Explanation
In 1992, the General Assembly authorized the issuance of $12,500,000 of General Obligation State Capital Improvement Bonds to defray the cost of construction for the replacement of the Fire Academy and the State Fire Marshal's office. An additional tax of 0.35 percent was imposed on all fire insurance premiums of all fire insurance companies doing business in the State. This tax was collected by the Chief Insurance Commissioner and paid annually by March 1st into a "special fund" created by the State Treasurer to pay the debt service on the bonds issued. After full repayment of the principal and interest of the bond, any balances remaining in the special fund must be transferred to the general fund by the State Treasurer. According to the State Treasurer's Office, the outstanding capital improvement bond will be paid off on May 1, 2001, with $750,000 remaining in the special fund. As of March 1, 2001, there is a total gross amount of $2,450,222 from fire insurance premium collections. This bill would allow the monies deposited in the special fund to be transferred to the Department of Labor, Licensing, and Regulation (DLLR) instead of to the general fund after the bond is paid off. The funds would be used by the Division of Fire and Life Safety for capital improvements, expenses of the division, and public fire and life safety education on a statewide basis. This bill is expected to reduce general fund revenue by an estimated $750,000 in FY 2000-01. This bill is also expected to transfer an estimated $2.5 million of other funds from the Office of State Treasurer to the DLLR, Division of Fire and Life Safety in FY 2001-02 and each fiscal year thereafter.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO THE AUTHORIZATION OF STATE CAPITAL IMPROVEMENT BONDS, SO AS TO UPDATE REFERENCES, MAKE PERMANENT THE ADDITIONAL TAX OF THIRTY-FIVE ONE-HUNDREDTHS PERCENT ON FIRE INSURANCE PREMIUMS PREVIOUSLY DEDICATED TO THE REPAYMENT OF INTEREST AND PRINCIPAL ON CAPITAL IMPROVEMENT BONDS AUTHORIZED FOR THE CONSTRUCTION OF THE FIRE ACADEMY, AND ALLOWING THE REVENUES OF THIS TAX AFTER THE BONDS ARE RETIRED TO BE RETAINED BY THE DEPARTMENT OF LABOR, LICENSING AND REGULATION FOR USE BY ITS DIVISION OF FIRE AND LIFE SAFETY FOR CAPITAL IMPROVEMENTS, DIVISION EXPENSES, AND PUBLIC EDUCATION, AND TO MAKE CONFORMING AMENDMENTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Subsections (C), (D), and (E) of Section 2 of Act 1377 of 1968, as added by Act 522 of 1992, are amended to read:
"(C) In addition to the tax imposed pursuant to the provisions of Section 38-7-30 of the 1976 Code, an additional tax of thirty-five one-hundredths percent is imposed annually on the gross premium receipts less premiums returned on canceled policy contracts and less dividends and returns of unabsorbed premium deposits of all fire insurance companies doing business in the State. This tax must be collected by the Chief Insurance Commissioner Director of the Department of Insurance as other taxes on fire insurance companies are collected. All sums collected for this tax must be paid annually by the commissioner director to the State Treasurer for establishment of a fund to be used by the State Treasurer to pay the debt service on the bonds issued pursuant to the provisions of subsection (B) until such debt service is no longer needed and then to the South Carolina Department of Labor, Licensing and Regulation to be used by the Division of Fire and Life Safety for capital improvements, expenses of this division, and public education, including grants to entities providing fire and life safety education on a statewide basis. The additional tax imposed pursuant to this subsection is imposed only so long as any of the bonds referred to in this subsection remain outstanding and unpaid.
(D) The State Treasurer shall establish a special fund into which proceeds of the additional tax authorized in subsection (C) must be deposited upon their receipt from the Chief Insurance Commissioner Director of the Department of Insurance. This fund is designed to achieve a proper matching of monies to meet the debt service obligations on the bonds authorized in this section in a given year. Monies in the fund must be used solely to pay debt service on the bonds and for no other purpose until the debt is paid and then transferred to the South Carolina Department of Labor, Licensing and Regulation to be used by the division of Fire and Life Safety for capital improvements, expenses of this division, and public education, including grants to entities providing fire and life safety education on a statewide basis.
(E) Reserved Upon payment in full of the principal of, premium, if any, and interest on the bonds authorized in this section, any remaining balances in the special fund created in this section must be transferred by the State Treasurer to the general fund of the State."
SECTION 2. This act takes effect upon approval by the Governor.
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