WEST VIRGINIA LEGISLATURE
2024 REGULAR SESSION
Introduced House Bill 5147
By Delegates Mallow, Jennings, Adkins, DeVault,
Heckert, Willis, and Summers [Introduced January 25, 2024; Referred to the Committee on Fire Departments and Emergency Medical Services then Finance]
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1 A BILL to amend and reenact §12-4-14a of the Code of West Virginia, 1931, as amended; and to
2 amend said code by adding thereto a new section, designated §15A-11-12, all relating to
3 quantifying and ensuring fair workers' compensation rates and developing a more
4 equitable method of tracking and billing for the various classifications within volunteer fire
5 departments and emergency rescue personnel.
Be it enacted by the Legislature of West Virginia:
ARTICLE 4. ACCOUNTS, REPORTS, AND GENERAL PROVISIONS.
§12-4-14a. Workers' Compensation Subsidy for Volunteer Fire Departments; creation of
program; Auditor to administer.
1 (a) For the purposes of this section:
2 (1) "Fiscal year" means the fiscal year of the state.
3 (2) "Individual base year premium" means the individual premium that became due and
4 payable by a volunteer fire department after June 30, 2010, but before July 1, 2011.
5 (3) "Individual premium" means the workers' compensation insurance premium due and
6 payable by a volunteer fire department for fire fighting services, rapid response emergency
7 medical services, ambulance services or diving services provided by the volunteer fire department
8 in each twelve month period beginning on or after July 1, 2011.
9 (4) "Total base year premium" means the aggregate workers' compensation insurance
10 premium due and payable by all volunteer fire departments for fire fighting services, rapid
11 response emergency medical services, ambulance services or diving services provided by the
12 volunteer fire departments as determined by the Insurance Commissioner after June 30, 2010, but
13 before July 1, 2011.
14 (5) "Total premium" means the aggregate workers' compensation insurance premium due
15 and payable by all volunteer fire departments for fire fighting services, rapid response emergency
16 medical services, ambulance services or diving services provided by the volunteer fire
17 departments in each twelve month period beginning on or after July 1, 2011.
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18 (b) In recognition of the burden of increasing workers' compensation insurance premiums
19 on volunteer fire departments, the Legislature has determined that additional funding assistance
20 should be made available to eligible departments to pay a portion of those premium increases
21 beginning with invoices due and payable on or after July 1, 2011.
22 (c) There is hereby established a special program which shall be known as the "Volunteer
23 Fire Department Workers' Compensation Subsidy Program." The program shall be administered
24 by the State Auditor from moneys that may be appropriated and designated for the program by the
25 Legislature pursuant to this section and section thirty-three-a, article three, chapter thirty-three of
26 this code.
27 (d) The State Auditor shall administer the distribution of moneys appropriated for the
28 Volunteer Fire Department Workers' Compensation Subsidy Program to volunteer fire
29 departments to help defray workers' compensation insurance premium increases.
30 (1) Volunteer fire departments shall request supplemental funds by submitting to the
31 Auditor the following information:
32 (A) The previous fiscal year's workers' compensation premium invoices with paid receipts;
33 (B) The current fiscal year's workers' compensation premium invoices showing the amount
34 due and due date and any applicable paid receipts; and
35 (C) Any other information the Auditor deems necessary for administering the subsidy on
36 forms and schedules as the Auditor directs. The Auditor is authorized to set up an electronic filing
37 system at his or her discretion for filing of the aforementioned information.
38 (2) After determining that there is a premium increase and the amount of the premium
39 increase for the volunteer fire department requesting the subsidy, the Auditor shall make
40 disbursements in the manner set forth in subsection (e) of this section subject to the following
41 requirements:
42 (A) The volunteer fire department must be in good standing with the State Fire Marshal;
43 (B) The volunteer fire department must be registered with the Auditor's Office in a form and
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44 manner prescribed by the Auditor prior to being eligible for consideration of any subsidy, which
45 registration must be completed no fewer than thirty days prior to the due date of the workers'
46 compensation premium;
47 (C) The volunteer fire department must agree that the subsidy for its workers'
48 compensation insurance premium increase will be paid directly to its insurance carrier by the
49 Auditor and that it will timely pay the balance of the premium due; and
50 (D) Should a volunteer fire department fail to pay the balance of its workers' compensation
51 insurance premium after a disbursement by the Auditor and that insurance policy is subsequently
52 cancelled, the premium paid by the Auditor shall be returned directly to him or her. If the Auditor
53 does not receive a reimbursement for a cancelled policy, he or she shall seek reimbursement for
54 the subsidy portion of the insurance premium from the State Treasurer when the Treasurer makes
55 the next quarterly payment to the volunteer fire department pursuant to sections thirty-three and
56 fourteen-d, article three, chapter thirty-three of this code.
57 (e) Beginning with the fiscal year that starts July 1, 2011, and continuing in each fiscal year
58 thereafter, after the Auditor has verified that a volunteer fire department is eligible for a subsidy
59 pursuant to this section, he or she shall pay on behalf of a volunteer fire department its subsidy,
60 which is calculated by:
61 (1) Dividing the total amount of premium subsidy allocated by the Legislature to the
62 Volunteer Fire Department Workers' Compensation Subsidy Program by the total premium minus
63 the total base year premium, which calculation produces the "total shortfall multiplier"; and
64 (2) Multiplying the total shortfall multiplier determined in subdivision (1) of this subsection
65 by the individual premium less the individual base year premium.
66 (3) In no event shall a volunteer fire department receive a workers' compensation premium
67 subsidy greater than one hundred percent of its premium increase.
68 (f) For fiscal years after July 1, 2011, the Auditor shall consult with the Insurance
69 Commissioner to determine the total amount of workers' compensation premium due by volunteer
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70 fire departments for any subsequent fiscal year. The Auditor may determine payment dates based
71 upon information reasonably available for such a determination.
72 (g) The Auditor may promulgate emergency rules and may propose for promulgation
73 legislative rules, in accordance with the provisions of article three, chapter twenty-nine-a of this
74 code, as are necessary to provide for implementation and enforcement of the provisions of this
75 section.
76 (h) The volunteer fire departments' workers' compensation premium subsidy program shall
77 undergo a review to assess its effectiveness after three years of operation. The Auditor shall
78 submit a report to the Joint Committee on Government and Finance not later than February 1,
79 2015, and provide details of the program operation including funds distributed and departments
80 taking advantage of the subsidy.
81 (i) To the best extent possible, the Auditor shall quantify and ensure fair workers'
82 compensation rates and develop a more equitable method of tracking and billing for the various
83 classifications within volunteer fire departments and emergency rescue personnel.
ARTICLE 11. FIRE COMMISSION.
§15A-11-12. Ensuring fair workers' compensation rates and equitable tracking and billing.
1 To the best extent possible, the Fire Commission shall quantify and ensure fair workers'
2 compensation rates and develop a more equitable method of tracking and billing for the various
3 classifications within volunteer fire departments and emergency rescue personnel.
NOTE: The purpose of this bill is to quantify and ensure fair workers' compensation rates and to develop a more equitable method of tracking and billing for the various classifications within volunteer fire departments and emergency rescue personnel.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
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Statutes affected:
Introduced Version: 12-4-14a, 15A-11-12