PRINTER'S NO. 812

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 714 Session of 1983


        INTRODUCED BY ROCKS, FUMO, LLOYD, WILLIAMS, HANKINS AND LYNCH,
           MAY 3, 1983

        REFERRED TO BANKING AND INSURANCE, MAY 3, 1983

                                     AN ACT

     1  Amending the act of June 28, 1895 (P.L.408, No.289), entitled,
     2     as amended, "An act to the twenty-fourth section of an act,
     3     entitled 'A supplement to provide revenue by taxation,
     4     approved the seventh day of June, one thousand eight hundred
     5     and seventy-nine,' approved the first day of June, one
     6     thousand eight hundred and eighty-nine, amending the twenty-
     7     fourth section, by providing for the payment by the State
     8     Treasurer of the two per centum tax on premiums paid by
     9     foreign fire insurance companies to the treasurers of the
    10     several cities, towns, townships and boroughs, within this
    11     Commonwealth," requiring treasurers to make payments within
    12     30 days of receipt of the State moneys for relief or pension
    13     associations.

    14     The General Assembly of the Commonwealth of Pennsylvania
    15  hereby enacts as follows:
    16     Section 1.  Section 2(a) of the act of June 28, 1895
    17  (P.L.408, No.289), referred to as the Foreign Fire Insurance
    18  Premium Tax Allocation Law, amended March 13, 1974 (P.L.196,
    19  No.38), is amended to read:
    20     Section 2.  (a)  On and after the first day of January, one
    21  thousand nine hundred and nineteen, and annually thereafter,
    22  there shall be paid by the State Treasurer to the treasurers of
    23  the several cities, towns, townships, and boroughs within the

     1  Commonwealth, the entire net amount received from the two per
     2  centum tax paid upon premiums by foreign fire insurance
     3  companies. The amount to be paid to each of the treasurers of
     4  the several cities, towns, townships, and boroughs shall be
     5  based upon the return of said two per centum tax upon premiums
     6  received from foreign fire insurance companies doing business
     7  within the said cities, towns, townships, and boroughs, and
     8  shall be proportionate to the premiums received by such
     9  companies on account of insurance written upon property located
    10  in such city, borough, town or township, as shown by the report
    11  made to the Department of Revenue. Each city, borough, town or
    12  township, receiving any payment from the State Treasurer
    13  hereunder, shall forthwith pay the amount received within thirty
    14  days of receipt to the relief fund association of, or the
    15  pension fund covering the employes of the fire department, or of
    16  such fire company, or fire companies, paid or volunteer, now
    17  existing, or hereafter organized, in such city, borough, town,
    18  or township, as is or are engaged in the service of such city,
    19  borough, town or township, and duly recognized as such by the
    20  council or commissioners or supervisors, as the case may be, of
    21  such city, borough, town, or township. In any borough, town or
    22  township in which there is no fire department or fire company or
    23  companies, the amount received by the treasurer of the borough,
    24  town or township from said tax shall be forthwith paid within
    25  thirty days of receipt to the relief fund association, or
    26  pension fund of the fire department or fire company or companies
    27  of any near or adjacent city, borough, town, or township, the
    28  fire department or fire company or companies of which afford
    29  fire protection to the inhabitants of such borough, town, or
    30  township. Before payment of said tax to the treasurer of any
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     1  such borough, town, or township, the mayor, in boroughs, and the
     2  secretary of the board of supervisors, in towns, or townships,
     3  shall first certify to the Auditor General that the fire
     4  department or fire company or companies of such near or adjacent
     5  city, borough, town, or township afford fire protection to the
     6  inhabitants of such borough, town, or township: Provided, That
     7  if the fire department consists of paid and volunteer firemen
     8  and the paid firemen shall be covered by a pension fund, then
     9  the two per centum tax aforesaid shall be divided equally
    10  between the relief fund association of the volunteer firemen and
    11  the pension fund for the paid firemen. Warrants for the above
    12  purposes shall be drawn by the Auditor General, payable to the
    13  treasurers of the several cities, towns, townships, and
    14  boroughs, in accordance with this act, whenever there are
    15  sufficient funds in the State Treasury to pay the same. All such
    16  fire insurance companies shall instruct their agents to place
    17  conspicuously upon the said policies and in the applications for
    18  said policies, if any, the exact name of the city, borough, town
    19  or township wherein the insured property is located in addition
    20  to the mailing address for said insured property.
    21     * * *
    22     Section 2.  This act shall take effect immediately.






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