The Daily Bulletin: Tuesday, May 14, 2013
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UNC
SCHOOL OF GOVERNMENT
Published on Legislative Repotting Service ( http:/
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lrs.sog.unc.edu)
The Daily Bulletin: Tuesday, May 14, 20 13
PUBLIC/ HOUSE BILLS
H 27 (2013-20 14) WORKERS' COMP FUND/ SAFETY WORKERS ALLOCATION. Filed J an 30 20 13. A BILL TO BE
ENTITLED AN ACT MODIFYING THE ALLOCATION OF THE PROCEEDS FROM THE GROSS PREMIUM TAX ON INSURANCE
COMPANIES UNDER G.S. 105-228.5 TO INCLUDE DEDICATED FUNDING FOR THE WORKERS' COMPENSATION FUND FOR
THE BENEFIT OF VOLUNTEER SAFETY WORKERS.
House committee substitute makes the following changes to the 2nd edition.
Amends GS 10 5-228. 5(d)(3), (concerning taxes measured by gross premiums), revising the allocation of the net
proceeds of the additional tax on gross premiums on insurance contracts for property coverage as follows, 25% of the
additional tax must be credited to the Volunteer Fire Department Fund (was, 30%) and 20% must be credited to the
Department of Insurance for disbursement pursuant to GS 58-84-25 (was, 25%). Also provides that up to 20%, as
determined in accordance with GS 58-87- 10(f), must be credited to the Workers' Compensation Fund, with the
remaining net proceeds credited to the General Fund (previously, 45% of the net proceeds to the Workers'
Compensation Fund).
Amends GS 58-87- 1, Volunteer Fire Department Fund, providing that up to 1% (was, 2%) of the Fund can be used for
additional staff and resources to administer the Fund in each fiscal year.
Amends GS 58-84-25, Disbursement of funds by Insurance Commissioner, providing that the
Insurance Commissioner (Commissioner) will deduct the sum of 1% (was, 2%) from the tax proceeds and retain the
same in the budget of the Department of Insurance for the purpose of administering the disbursement of funds
pursuant to GS 58-84-35.
Amends GS 58- 87- 10, Workers' Compensation Fund for the benefit of volunteer safety workers, providing that
revenue is credited to the Workers' Compensation Fund from a portion of the proceeds of the tax levied under GS
10 5- 2 28. 5(d)(3) and from an assessment on local governments served by one or more eligible units as set forth in
subsection (g) of this section.
Enacts new GS 58-87- 10 (f), providing that the Department of Insurance will conduct a periodic actuarial study to
determine the amount required to meet the needs of the Fund. Sets out the form and shape of the study, providing
that it will be reviewed by the Office of State Budget and Management. Directs the Office of State Budget and
Management, with the Department of Insurance, to notify the Secretary of Revalue of the amount required to meet
the needs of the Fund by March 1 of each year. The Secretary of Revenue will thai remit that amount with specified
limitations.
Enacts new GS 58-87- 10 (g), providing that if the amount remitted pursuant to the above section is not sufficient to
meet the needs of the Fund, then the Department of Insurance will collect the remaining amount from units of local
government, pursuant to a specified formula. The Department of Insurance must provide written notification to the
units of local government of the amount required by the assessment no later than April 1 of each year. Units of local
government then have 90 days to remit the assessment to the Department for deposit into the Fund.
Intro, by Howard, Hager, Torbett.
GS 58, GS 105
Insurance, Department of Insurance, Tax, Employment
and Retirement
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