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Currently, fund-raisers and donations supply the primary source of revenue for volunteer fire departments (VFD). HB 2604, which will become effective September 1, 2001, creates the Rural Volunteer Fire Department Assistance Program to help give VFDs the support they need to serve their communities better. This program will administer a fund of approximately $15 million to offer financial assistance to volunteer fire departments.
This program will be administered by the Texas Forest Service (TFS). The TFS Director will establish criteria and qualifications for distribution of money, establish a procedure for reporting and processing requests for money from the fund and prepare an annual status report on the fund. The program's administration costs cannot exceed 7% of the total revenue collected in a fiscal year to fund the program. There are over 1,800 volunteer fire departments in Texas that protect 80% of the state. Better equipped fire departments could lead to savings for insurance payers by lowering risks, reducing losses and alleviating the burden of insurers.
HB 3667 establishes a rural fire insurance program, administered by the Texas Forest Service, to assist rural volunteer fire departments in the payment of workers' compensation insurance and accidental death and disability insurance. The program will be funded by a 2% tax on retail sales of fireworks. Volunteer fire departments seeking assistance must submit a request to the Texas Forest Service. Criteria for eligibility for assistance is currently being developed by the Service. The fireworks tax will generate approximately $847,000 in revenue for the fiscal years of 2002-2003. The bill becomes effective October 1, 2001.
State Representative Ron Clark
P.O. Box 2910
Austin, TX 78768-2910
(903) 893-9426 * (512) 463-0474
(512) 475-3767 (fax)
ron.clark@house.state.tx.us
http://www.grayson.edu/district62/RonClark.html
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