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HB 2661

Providing equal share of funds from the fire and casualty premium tax to part volunteer departments

2025 Regular Session Introduced by Adam Burkhammer

HB 2661 ensures part-volunteer fire departments receive a fair share of funds from a new 1% insurance premium tax, boosting their financial support and operational capacity.

To House Judiciary
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Bill Summary · HB 2661

Summary of House Bill 2661 (HB 2661)

Bill Information

  • Bill Number: HB 2661
  • Title: Providing equal share of funds from the fire and casualty premium tax to part volunteer departments
  • Status: To House Judiciary
  • Introduced: February 04, 2025
  • Classification: Bill
  • Subject: Insurance

Purpose and Intent

House Bill 2661 aims to amend the existing provisions regarding the allocation of funds generated from fire and casualty insurance premium taxes. The primary intent of the bill is to ensure that part-volunteer fire departments receive an equitable share of these funds, thereby enhancing their financial support and operational capabilities.

Key Provisions

  • Additional Premium Tax: The bill proposes an additional premium tax of 1% on taxable premiums for fire and casualty insurance policies.
  • Allocation of Funds: The revenue generated from this tax will be allocated as follows:
    • 10% to the Teachers Retirement System Reserve Fund.
    • 25% to the Fire Protection Fund, specifically for volunteer and part-volunteer fire companies and departments.
    • 65% to the Municipal Pensions and Protection Fund.
  • Quarterly Distribution: Funds allocated to volunteer and part-volunteer fire companies will be distributed quarterly. The State Fire Marshal will be responsible for reporting eligible fire companies to the State Treasurer.

Impact

  • Beneficiaries: The bill directly impacts part-volunteer fire departments, providing them with a more stable financial foundation. This is crucial for their operations, training, and equipment needs.
  • Municipalities: Municipalities with established pension and relief funds for policemen and firemen will also benefit from the additional revenue, aiding in the sustainability of these funds.

Procedural Aspects

  • Legislative Actions:
    • February 04, 2025: Filed with the Clerk by Rep. Joe C. Sosnowski.
    • February 06, 2025: First reading and referred to the Rules Committee.
    • February 20, 2025: Introduced in the House and referred to the Judiciary Committee, then to Finance.

Conclusion

HB 2661 seeks to enhance the financial resources available to part-volunteer fire departments in Illinois by revising the allocation of funds from fire and casualty insurance premium taxes. By ensuring these departments receive a fair share of funding, the bill aims to support their critical role in community safety and emergency response.

Compiled from official sources — confirm details with the bill’s official record.

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