Bill Summary – FastDemocracy

H.B. 535
                          GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                                            Apr 12, 2021
                                      SESSION 2021                                    HOUSE PRINCIPAL CLERK
     H                                                                                               D
                                  HOUSE BILL DRH40216-MRxf-88
     Short Title:   Firefighters Fighting Cancer Act of 2021.                                   (Public)
     Sponsors:      Representative D. Hall.
     Referred to:
                                     A BILL TO BE ENTITLED
 AN ACT TO PROVIDE A SUPPLEMENTAL INSURANCE POLICY FOR FIREFIGHTERS
     DIAGNOSED WITH CANCER.
 The General Assembly of North Carolina enacts:
             SECTION 1. This act shall be known as "The Firefighters Fighting Cancer Act of
 2021."
             SECTION 2.(a) Chapter 58 of the General Statutes is amended by adding a new
 Article to read:
                                            "Article 87A.
                            "Firefighter Cancer Health Care Benefit Plan.
 "§ 59-87A-1. Definitions.
     The following definitions apply in this Article:
             (1)     Cancer. – Malignant neoplasms of the body that may be caused by exposure
                     to heat, radiation, or a known carcinogen, as defined by the World Health
                     Organization's International Agency for Research on Cancer.
             (2)     Cancer Benefit Plan. – The North Carolina Firefighter Cancer Health Care
                     Benefit Plan established under this Article.
             (3)     Eligible firefighter. – A firefighter who meets the requirements of
                     G.S. 59-87A-10.
             (4)     Fire Department. – Any organization that is not a federal agency, including
                     any public or government-sponsored organization, that is located and based in
                     this State and provides rescue, fire suppression, and related activities.
             (5)     Firefighter. – As defined in G.S. 58-84-5.
 "§ 59-87A-5. Firefighter Cancer Health Care Benefit Plan.
     There is established a North Carolina Firefighter Cancer Health Care Benefit Plan to be
 administered by the Department. The Cancer Benefit Plan shall be a supplemental insurance
 policy that provides the benefits required under this Article to an eligible firefighter with a new
 diagnosis of cancer on or after January 1, 2022.
 "§ 59-87A-10. Cancer Benefit Plan eligibility.
     (a)     All firefighters that have served in a North Carolina fire department for a minimum
 of five continuous years shall be eligible for benefits under the Cancer Benefit Plan.
     (b)     Only firefighters with a new diagnosis of cancer on or after January 1, 2022, shall be
 eligible for benefits under the Cancer Benefit Plan. A firefighter with a diagnosis of cancer prior
 to January 1, 2022, is not eligible for benefits under the Cancer Benefit Plan for that previously
 diagnosed cancer type but remains eligible for benefits under the Cancer Benefit Plan upon
 diagnosis of any other cancer type.
                                 *DRH40216-MRxf-88*
     General Assembly Of North Carolina                                                      Session 2021
     (c)     A firefighter is not eligible to receive benefits under this Article if that firefighter is
 receiving benefits related to cancer under Article 1 of Chapter 97 of the General Statutes, the
 North Carolina Workers' Compensation Act.
 "§ 59-87A-15. Benefits under the Cancer Benefit Plan.
     (a)     Medical Costs Reimbursement. – An eligible firefighter shall receive reimbursement
 of up to twelve thousand dollars ($12,000) annually for any out-of-pocket medical expenses
 incurred, including deductibles, copayments, or coinsurance costs.
     (b)     Lump Sum Benefit. – Not to exceed a lifetime benefit of fifty thousand dollars
 ($50,000), a lump sum benefit of twenty-five thousand dollars ($25,000) for each diagnosis of
 cancer shall be payable to an eligible firefighter upon sufficient proof to the insurance carrier,
 the Department, or other applicable payor of a diagnosis of cancer by a board-certified, licensed
 physician in the medical specialty appropriate for the type of cancer diagnosed.
     (c)     Disability Benefit. – Upon sufficient proof to the insurance carrier, the Department,
 or other applicable payor of total disability resulting from the diagnosis of cancer or that the
 cancer precludes the firefighter from serving as a firefighter, the following disability benefits
 shall be paid to an eligible firefighter beginning six months after the total disability or inability
 to perform the duties of a firefighter, whichever applies:
             (1)     For a nonvolunteer firefighter. – A monthly benefit that is either (i) equal to
                     seventy-five percent (75%) of the firefighter's monthly salary or (ii) five
                     thousand dollars ($5,000), whichever is less.
             (2)     For a volunteer firefighter. – A monthly benefit of one thousand five hundred
                     dollars ($1,500).
     (d)     Limitations on Disability Benefit. – The following limitations apply to disability
 benefits under this section:
             (1)     Disability benefits shall continue for no more than 36 consecutive months.
             (2)     Any firefighter receiving disability benefits may be required to have his or her
                     condition reevaluated to determine if that firefighter has regained the ability
                     to perform the duties of a firefighter. If that reevaluation indicates that the
                     firefighter has regained the ability to perform the duties of a firefighter, then
                     the monthly disability benefits shall cease on the last day of the month the
                     reevaluation was conducted.
             (3)     If there is no reevaluation performed under subdivision (2) of this subsection,
                     but the firefighter's treating physician determines that the firefighter is again
                     able to perform the duties of a firefighter, then the disability benefits shall
                     cease on the last day of the month that the physician made the determination.
             (4)     If a firefighter returns to work as a firefighter before exhaustion of the 36
                     months of disability benefit an eligible firefighter may receive under this
                     section, and if there is a subsequent recurrence of disability caused by cancer
                     that again precludes the firefighter from performing the duties of a firefighter,
                     then the firefighter shall be entitled to any remaining monthly disability
                     benefits, not to exceed 36 months in total.
             (5)     The monthly disability benefit shall be subordinate to any other benefit paid
                     from any source to the firefighter solely for a disability related to the cancer
                     diagnosis, so long as that source is not private insurance purchased solely by
                     the firefighter. Disability benefits under this Article shall be limited to the
                     difference between the benefit amount paid by the other source and the
                     amounts specified under subsection (c) of this section.
 "§ 58-87A-20. Reporting requirements.
     On January 1, 2023, and annually thereafter, the Department shall submit a report to the
 General Assembly and to the Governor that includes the following information for the year prior
 to the report:
     Page 2                                                                         DRH40216-MRxf-88
     General Assembly Of North Carolina                                                  Session 2021
            (1)     The number, type, and primary work location of all firefighters participating
                    in the Cancer Benefit Plan.
            (2)     The number of Cancer Benefit Plan claims filed.
            (3)     The types of cancer for which claims are filed.
            (4)     All benefits paid out under this Article."
            SECTION 2.(b) This section becomes effective January 1, 2022.
            SECTION 3. No later than January 1, 2022, the Department of Insurance shall show
 proof of insurance coverage that meets the requirements of this act for all firefighters included
 on the Certified Roster submitted to the North Carolina State Firefighters' Association.
            SECTION 4.(a) G.S. 105-228.5(d)(3) reads as rewritten:
            "(3) Additional Rate on Property Coverage Contracts. – An additional tax at the
                    rate of seventy-four hundredths percent (0.74%) one and one hundred
                    twenty-five thousandths percent (1.125%) applies to gross premiums on
                    insurance contracts for property coverage. The tax is imposed on ten percent
                    (10%) of the gross premiums from insurance contracts for automobile
                    physical damage coverage and on one hundred percent (100%) of the gross
                    premiums from all other contracts for property coverage. Twenty percent
                    (20%) Ten percent (10%) of the net proceeds of this additional tax must be
                    credited to the Volunteer Fire Department Fund established in Article 87 of
                    Chapter 58 of the General Statutes. Twenty percent (20%) Fourteen percent
                    (14%) of the net proceeds must be credited to the Department of Insurance for
                    disbursement pursuant to G.S. 58-84-25. Up to twenty percent (20%),
                    fourteen percent (14%), as determined in accordance with G.S. 58-87-10(f),
                    must be credited to the Workers' Compensation Fund. North Carolina
                    Firefighters' and Rescue Squad Workers' Pension Fund under G.S. 58-86-1.
                    Five and one-half percent (5.5%) of the net proceeds must be credited to
                    individual fire departments' relief funds to be used in accordance with
                    G.S. 58-84-35(a)(8) for early cancer detection programs. Eleven and
                    three-quarters percent (11.75%) of the net proceeds must be credited to the
                    Department of Insurance to fund the Firefighter Cancer Benefit Plan
                    established under G.S. 59-87A-5. The remaining net proceeds must be
                    credited to the General Fund. The additional tax imposed on property
                    coverage contracts under this subdivision is a special purpose assessment
                    based on gross premiums and not a gross premiums tax.
                    The following definitions apply in this subdivision:
                    a.      Automobile physical damage. – The following lines of business
                            identified by the NAIC: private passenger automobile physical
                            damage and commercial automobile physical damage.
                    b.      Property coverage. – The following lines of business identified by the
                            NAIC: fire, farm owners multiple peril, homeowners multiple peril,
                            nonliability portion of commercial multiple peril, ocean marine, inland
                            marine, earthquake, private passenger automobile physical damage,
                            commercial automobile physical damage, aircraft, and boiler and
                            machinery. The term also includes insurance contracts for wind
                            damage.
                    c.      NAIC. – National Association of Insurance Commissioners."
            SECTION 4.(b) G.S. 105-153.5(b) is amended by adding a new subdivision to read:
            "(15) The amount received by or paid to an eligible firefighter during the taxable
                    year for benefits under the Cancer Benefit Plan established in Article 87A of
                    Chapter 59 of the General Statutes."
     DRH40216-MRxf-88                                                                           Page 3
    General Assembly Of North Carolina                                          Session 2021
            SECTION 4.(c) This section is effective for taxes imposed for taxable years
 beginning on or after July 1, 2021.
            SECTION 5. Except as otherwise provided, this act is effective when it becomes
 law.
    Page 4                                                              DRH40216-MRxf-88
Statutes affected: 
Filed: 105-228.5, 105-153.5
Edition 1: 105-228.5, 105-153.5