PRINTER'S NO. 1371
No. 1184 Session of 1983
INTRODUCED BY PITTS AND VROON, JUNE 8, 1983
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 8, 1983
AN ACT
1 Amending the act of June 11, 1968 (P.L.149, No.84), entitled "An
2 act relating to volunteer firemen's relief associations,
3 clarifying their purposes and objectives, establishing
4 criteria and standards for the conduct of their affairs,
5 providing for their formation, recognition, continuing
6 operation, and for their dissolution in appropriate
7 circumstances and the distribution of their funds," changing
8 definitions; further providing for the purpose and
9 construction of the act; further providing for the use of
10 funds; and making editorial changes.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The title and sections 1, 2, 3, 4 and 5 of the
14 act of June 11, 1968 (P.L.149, No.84), known as the Volunteer
15 Firemen's Relief Association Act, are amended to read:
16 AN ACT
17 Relating to volunteer [firemen's] relief associations,
18 clarifying their purposes and objectives, establishing
19 criteria and standards for the conduct of their affairs,
20 providing for their formation, recognition, continuing
21 operation, and for their dissolution in appropriate
1 circumstances and the distribution of their funds.
2 Section 1. Short Title.--This act shall be known and may be
3 cited as the "Volunteer [Firemen's] Relief Association Act."
4 Section 2. Definitions.--As used in this act:
5 (1) A volunteer [firemen's] relief association is an
6 organization formed primarily for the purpose of affording
7 financial protection to volunteer firemen, volunteer rescue
8 squad members or volunteer ambulance corps members against the
9 consequences of misfortune suffered as a result of their
10 participation in the fire, rescue or ambulance service. Such an
11 association may also serve other purposes, as hereinafter set
12 forth, provided only that adequate provisions be first made to
13 serve its primary purpose. It may comprehend within its
14 membership the members of one or more fire companies, rescue
15 squads or ambulance corps.
16 (2) [The fire] Volunteer fire, rescue and ambulance service
17 comprehends the service of organized groups of individuals, not
18 only in training for and in active duty in the protection of the
19 public against fire, provision of rescue services and provision
20 of ambulance service but also in the training for and the
21 performance of such other activities as are commonly undertaken
22 by [fire companies] such groups and their affiliated
23 organizations, including, inter alia, fire prevention, first
24 aid, rescue and salvage, ambulance service, fire police work,
25 radio communications, assistance at accidents, control of crowds
26 both on the fire grounds and at occasions of public or general
27 assembly, animal rescue, abatement of conditions due to storm,
28 flood, or general peril, abatement or removal of hazards to
29 safety, and participation in public celebrations, parades,
30 demonstrations, and fund-raising campaigns.
19830H1184B1371 - 2 -
1 (3) [Volunteer fireman] Volunteer relief association member
2 comprehends any member of a fire company, volunteer rescue
3 squads or volunteer ambulance corps, organized and existing
4 under the laws of the Commonwealth of Pennsylvania, and also any
5 member of any [fire police unit, rescue squad, ambulance corps,
6 or] other like organization [affiliated with one or more fire
7 companies], and refers to any individual who is a member of such
8 a volunteer fire company, [or affiliated organization] volunteer
9 rescue squad or volunteer ambulance corps and who participates
10 in the fire, rescue or ambulance service, but does not look to
11 [that] such service as his primary means of livelihood.
12 Section 3. Statement of Purpose.--The purpose of the
13 Legislature in enacting this statute is to encourage individuals
14 to take part in the fire, rescue and ambulance service [as
15 volunteer firemen,] by establishing criteria and standards for
16 the orderly administration and conduct of the affairs of
17 [firemen's] volunteer relief associations, so as to ensure, as
18 far as circumstances will reasonably permit, that funds shall be
19 available for the protection of volunteer firemen, members of
20 volunteer rescue squads and volunteer ambulance corps and their
21 heirs:
22 (1) To provide financial assistance to volunteer firemen,
23 rescue squad members and ambulance corps members who may suffer
24 injury or misfortune by reason of their participation in the
25 fire, rescue or ambulance service;
26 (2) To provide financial assistance to the widow, children,
27 and/or other dependents of volunteer firemen, rescue squad
28 members and ambulance corps members who lose their lives as a
29 result of their participation in the fire, rescue or ambulance
30 service;
19830H1184B1371 - 3 -
1 (3) To provide, either by insurance or by the operation of a
2 beneficial fund, for the payment of a sum certain to the
3 designated beneficiaries of a participating member in such fund
4 following the death of such member for any cause, and to
5 establish criteria which members must meet in order to qualify
6 as participants in such death benefit fund;
7 (4) To provide safeguards for preserving life, health and
8 safety of volunteer firemen, rescue squad members and ambulance
9 corps members so as to ensure their availability to participate
10 in the fire, rescue and ambulance service;
11 (5) To provide financial assistance to volunteer firemen,
12 members of volunteer rescue squads and members of volunteer
13 ambulance corps who, after having actively participated in the
14 fire, rescue or ambulance service for a specified minimum term,
15 are no longer physically able to continue such participation and
16 are in need of financial assistance;
17 (6) To provide funds to aid the rehabilitation of volunteer
18 firemen, members of volunteer rescue squads and members of
19 volunteer ambulance corps who have suffered an impairment of
20 their physical capacity to continue to perform their normal
21 occupations; and
22 (7) In any event, to provide sufficient funds to ensure the
23 efficient and economical handling of the business of the
24 association in accomplishing the objectives hereinabove set
25 forth.
26 Section 4. Construction.--This act shall be construed,
27 applied, and interpreted, so far as circumstances permit, as
28 justifying the actions of the officers and members of volunteer
29 [firemen's] relief associations affected by it, when such
30 actions appear to have been taken in good faith and in a bona
19830H1184B1371 - 4 -
1 fide belief that they were in furtherance of the purposes of
2 this act, but shall be strictly construed and applied against
3 those responsible for actions taken in wilful disregard of the
4 purposes of this act, or with reckless indifference to such
5 purposes, and in particular, where any action called into
6 question results or has resulted or was likely to result in an
7 unmerited personal benefit to one or more of those responsible
8 for the taking of such action.
9 Section 5. Structure.--(a) A volunteer [firemen's] relief
10 association may be a body corporate, governed by a charter and
11 bylaws, or it may be an unincorporated association of
12 individuals, governed by a constitution and bylaws. In either
13 case, it must provide for the taking and preserving of minutes
14 of all meetings, and the maintenance of such books of account as
15 may be necessary and appropriate to afford a permanent record of
16 its fiscal affairs.
17 (b) The constitution or charter shall state the name, the
18 purposes and the form of the organization, shall designate the
19 class or classes of persons eligible for membership, and the
20 procedures to be followed in making amendments.
21 (c) The bylaws shall specify the requirements for securing
22 membership, the voting rights of different classes of members,
23 if there be different classes, and the conditions under which
24 membership may be terminated. They shall state the notice
25 requirements and the procedure to be followed in calling
26 meetings, as well as the quorum requirements for regular and
27 special meetings of the membership and for regular and special
28 meetings of the body which governs the operations of the
29 association between membership meetings, and shall designate
30 that body, whether it be a board of directors, the trustees, or
19830H1184B1371 - 5 -
1 any similar body, such as an executive committee. Unless
2 otherwise provided in the bylaws, the powers and duties of the
3 officers and directors and/or trustees, shall be such as
4 normally pertain to such positions in nonprofit corporations.
5 The bylaws shall require that the signatures of at least two
6 officers, one of whom shall be the disbursing officer, shall be
7 required in order to bind the association by formal contract or
8 to issue any negotiable instrument. They shall require that the
9 disbursing officer, whether designated treasurer, comptroller,
10 financial secretary, or otherwise, shall be bonded by corporate
11 surety for the faithful performance of his duties. The amount of
12 such bond shall be at least as great as the maximum cash balance
13 in current funds of the association at any time during the
14 fiscal year, and the premium on such bond shall be a proper
15 charge against the funds of the association. The bylaws shall
16 state the procedure to be followed in nominating and in electing
17 officers, trustees, directors, and members of the executive
18 committee, according to such provisions as shall have been made
19 for the establishment of such positions. The bylaws shall
20 establish procedures for the approval of expenditures and the
21 payment thereof, and for the investment of funds and the sale of
22 investments. The bylaws shall set out the procedure to be
23 followed in amending the bylaws, and shall specify the notice
24 required with respect to proposed amendments, including the
25 time, place, and the date when any proposed amendment shall be
26 considered. The bylaws shall be faithfully preserved in
27 permanent form and any amendments made thereto shall be entered
28 thereon with the date when any such amendment became effective.
29 The bylaws may contain any such other provisions as may to the
30 membership seem to be appropriate or necessary to the orderly
19830H1184B1371 - 6 -
1 conduct of the affairs of the association.
2 (d) In addition to the bylaws the association may adopt from
3 time to time such matters as the membership may regard as of a
4 routine nature under the head of standing procedures. Such
5 procedures may be adopted, modified or repealed by motion and
6 majority vote but they shall not be inconsistent with the bylaws
7 and they shall be recorded as an appendix to the bylaws.
8 (e) Any volunteer [firemen's] relief association organized
9 or conducted in accordance with the requirements of this section
10 shall be regarded as a charitable corporation for all purposes
11 including the right to establish exemption from the operation of
12 certain taxes.
13 Section 2. Section 6 of the act, amended March 23, 1972
14 (P.L.119, No.44) and March 7, 1982 (P.L.168, No.53), is amended
15 to read:
16 Section 6. Funds.--(a) Any volunteer [firemen's] relief
17 association shall have the right to solicit and receive gifts
18 and contributions from any source including municipal
19 corporations. [It] In the case of a volunteer firemen's relief
20 association, it shall not have the right to receive any portion
21 of the moneys distributed to the political subdivisions of the
22 Commonwealth under the provisions of the act of June 28, 1895
23 [(P.L.408)] (P.L.408, No.289), known as the Foreign Fire
24 Insurance Premium Tax Allocation Law, unless and until the
25 governing body of at least one such political subdivision shall
26 have certified to the Auditor General that such association is
27 in fact a bona fide volunteer firemen's relief association
28 affiliated with a fire company which affords protection against
29 fire to all or a portion of the political subdivision.
30 (b) The funds of any volunteer [firemen's] relief
19830H1184B1371 - 7 -
1 association may be deposited in any bank, trust company, or
2 other banking establishment accredited by the Commonwealth or
3 insured by the Government of the United States.
4 (c) All, or any part of the funds of any volunteer
5 [firemen's] relief association may be invested:
6 (1) In any form of investment named in [the Fiduciaries Act
7 of 1949, as amended] 20 Pa.C.S. Ch. 73 (relating to fiduciaries
8 investments), including first mortgages. Such first mortgages
9 insuring repayment of loans by relief associations must provide
10 for a minimum interest payment of three per cent and not exceed
11 eighty per cent of the appraised value of the real property
12 covered by the mortgage.
13 (2) In any obligation of a political subdivision, having the
14 power to levy or collect taxes, or
15 (3) In any obligation of an incorporated fire company,
16 rescue squad or ambulance corps which obligation is secured by
17 assets of the company, squad or corps having capital value equal
18 to at least one hundred fifty per cent of the amount of the
19 obligation at the time it is made, and is subject to provisions
20 which will amortize such loan at a rate ensuring that the
21 depreciated value of the assets pledged shall continue to be at
22 least equal to one hundred fifty per cent of the balance
23 remaining due.
24 (d) No investment shall be acquired, encumbered or sold
25 except pursuant to a resolution duly enacted by the governing
26 body of the association. The income from investments however may
27 be invested or spent in the same way as any other income.
28 (e) The funds of any volunteer [firemen's] relief
29 association may be spent:
30 (1) To pay for such normal and reasonable running expenses
19830H1184B1371 - 8 -
1 as may be appropriate to the businesslike conduct of its affairs
2 including legal fees and including but not by way of limitation
3 the rental or purchase of offices, the payment of reasonable
4 compensation of any needed employes, and the purchase of office
5 equipment and supplies.
6 (2) To purchase contracts of insurance which shall at the
7 least afford financial assistance to active members of the fire,
8 rescue or ambulance service represented by the association
9 against losses due to injury suffered in the fire, rescue or
10 ambulance service and which may also provide in the order named,
11 (i) for payments to the widow or other dependents of a member in
12 the event of his death, (ii) for protection of active [firemen]
13 members against disease, (iii) for the replacement or purchase
14 of prosthetic devices such as visual aids, hearing aids,
15 dentures, braces, crutches, and the like, where such devices
16 have been lost or damaged while the owner was engaged in the
17 fire, rescue or ambulance service or where the need for such
18 devices arises because of functional impairment attributable to
19 participation in the fire, rescue or ambulance service, (iv) for
20 the repair or replacement if necessary of articles of clothing
21 damaged in the course of participation in the fire, rescue or
22 ambulance service, and (v) for disability incurred after service
23 for a minimum of twenty years as a volunteer fireman, member of
24 a volunteer rescue squad or member of a volunteer ambulance
25 corps.
26 (3) To maintain a beneficiary or death benefit fund and to
27 pay a sum certain from that fund to the beneficiary of any
28 participant in that fund upon his death. In the event a
29 beneficiary is not designated or a designated one has
30 predeceased the participant, the sum certain shall be paid to
19830H1184B1371 - 9 -
1 the estate of the participant.
2 (4) To pay in full or in part for damage or loss in any of
3 the categories mentioned in clause (2) above in any specific
4 case in which (i) no policy of insurance is in force which
5 covers the risk, or (ii) the amount payable under insurance
6 policies in force is inadequate to cover the loss.
7 (5) To pay the costs of procuring and forwarding tokens of
8 sympathy and goodwill[. To] to a volunteer [fireman] who may be
9 ill or hospitalized as a result of participation in the fire,
10 rescue or ambulance service or who may die or who may be
11 seriously ill for any reason.
12 (6) To make cash payments to families in distressed
13 circumstances by reason of age, infirmities or other
14 disabilities suffered by one of the family in the course of his
15 participation in the fire, rescue or ambulance service as a
16 volunteer [fireman].
17 (7) To acquire and maintain membership in any Statewide
18 association or corporation which extends advice and assistance
19 to [firemen's] volunteer relief associations in the conduct of
20 their affairs and to pay reasonable expenses of travel and
21 maintenance to a duly elected delegate for attendance at such
22 meetings of such Statewide association or corporation.
23 (8) To contribute or to purchase contracts of insurance
24 which will contribute towards the costs of rehabilitating and
25 retraining [volunteer firemen] volunteers who by reason of their
26 participation in the fire, rescue or ambulance service have
27 suffered a major impairment of their ability to continue their
28 vocation.
29 (9) To pay for medical and surgical bills arising from
30 injuries sustained by [volunteer firemen] volunteers while
19830H1184B1371 - 10 -
1 engaged in activities of the fire company, rescue squad or
2 ambulance corps to the extent that said bills are not covered by
3 insurance provided by the relief association.
4 (10) To pay reasonable expenses actually and necessarily
5 incurred for attending bona fide [firemen's] training schools.
6 (11) To purchase safeguards for preserving life, health, and
7 safety of [volunteer firemen] volunteers, so as to ensure their
8 availability to participate in the volunteer fire, rescue and
9 ambulance service.
10 (12) To secure insurance against the legal liability of the
11 [volunteer firemen] volunteers for loss and expense from claims
12 arising out of the performance of their official, authorized
13 duties while going to, returning from or attending fires,
14 performing rescue operations or providing ambulance service or
15 while performing [their] duties as special fire police.
16 Section 3. This act shall take effect in 60 days.
C29L53WMB/19830H1184B1371 - 11 -