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HB146/SCSFA

SENATE SUBSTITUTE TO HB 146:

AS PASSED SENATE

A BILL TO BE ENTITLED
AN ACT

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To amend Code Section 25-3-23 of the Official Code of Georgia Annotated, relating to

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general requirements for legally organized fire departments, so as to require such fire

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departments to provide and maintain certain insurance coverage for firefighters; to provide

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methods for funding; to provide for rules and regulations; to amend Chapter 85 of Title 36

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of the Official Code of Georgia Annotated, relating to interlocal risk management agencies,

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so as to change certain provisions relating to definitions; to change certain provisions relating

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to formation and functions of such agencies; to change certain provisions relating to

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certificates of authority and applications; to amend Code Section 48-7-27 of the Official

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Code of Georgia Annotated, relating to computation of Georgia taxable net income, so as to

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provide an exemption for benefits received from and a deduction for premiums paid for said

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insurance coverage for firefighters; to provide an effective date; to repeal conflicting laws;

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and for other purposes.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

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SECTION 1.

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Code Section 25-3-23 of the Official Code of Georgia Annotated, relating to general

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requirements for legally organized fire departments, is amended by revising subsections (b)

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and (c) as follows:

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"(b)(1) A legally organized fire department shall purchase provide and maintain

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sufficient insurance coverage on each member of the fire department to pay claims for

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injuries sustained en route to, during, and returning from fire calls or other emergencies

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and disasters and scheduled training sessions.

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(2)(A) As used in this paragraph, the term:

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(i) 'Cancer' means bladder, blood, brain, breast, cervical, esophageal, intestinal,

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kidney, lymphatic, lung, prostate, rectum, respiratory tract, skin, testicular, and

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thyroid cancer; leukemia; multiple myeloma; or non-Hodgkin's lymphoma.

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(ii) 'Firefighter' means a firefighter as defined in Code Section 25-4-2.

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HB146/SCSFA

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(iii) 'Volunteer' means a volunteer as defined in Code Section 25-4-2.

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(B) On and after January 1, 2018, a legally organized fire department shall provide and

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maintain sufficient insurance coverage on each member of the fire department who is

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a firefighter to pay claims for cancer diagnosed after having served 12 consecutive

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months as a firefighter with such fire department. Such insurance benefits shall include

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at minimum the following:

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(i)(I) A lump sum benefit of $25,000.00 subject to limitations specified in the

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insurance contract and based on severity of cancer and payable to such firefighter

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upon submission to the insurance carrier or other payor of acceptable proof of

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diagnosis by a physician board certified in the medical specialty appropriate for the

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type of cancer involved that there are one or more malignant tumors characterized by

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the uncontrollable and abnormal growth and spread of malignant cells with invasion

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of normal tissue and that:

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(a) Surgery, radiotherapy, or chemotherapy is medically necessary;

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(b) There is metastasis; or

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(c) The firefighter has terminal cancer, is expected to die within 24 months or less

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from the date of diagnosis, and will not benefit from, or has exhausted, curative

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therapy; or

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(II) A lump sum benefit of $6,250.00 subject to limitations specified in the

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insurance contract and based on severity of cancer and payable to such firefighter

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upon submission to the insurance carrier or other payor of acceptable proof of

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diagnosis by a physician board certified in the medical specialty appropriate for the

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type of cancer involved that:

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(a) There is carcinoma in situ such that surgery, radiotherapy, or chemotherapy

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has been determined to be medically necessary:

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(b) There are malignant tumors which are treated by endoscopic procedures

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alone;

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(c) There are malignant melanomas; or

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(d) There is a tumor of the prostate, provided that it is treated with radical

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prostatectomy or external beam therapy; and

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(ii) Payable as a result of a specific injury or illness to begin six months after

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disability and submission to the insurance carrier or other payor of acceptable proof

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of disability precluding service as a firefighter and continuing for up to 36

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consecutive monthly payments:

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(I) A monthly benefit equal to 60 percent of the member's monthly salary as an

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employed firefighter with the fire department or a monthly benefit of $5,000.00,

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whichever is less; or

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HB146/SCSFA
(II) If the member is a volunteer, a monthly benefit of $1,500.00.

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The benefit under subdivision (I) or (II) of this division, as applicable, shall be

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subordinate to any other benefit actually paid to the firefighter for such disability from

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any other source, not including insurance purchased solely by the firefighter, and shall

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be limited to the difference between the amount of such other paid benefit and the

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amount specified under subdivision (I) or (II) of this division, as applicable.

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(C)

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subdivisions (B)(i)(I) and (B)(i)(II) of this paragraph during his or her lifetime shall not

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exceed $50,000.00.

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(D) With the exception of the benefit under subdivision (B)(ii)(I) of this paragraph, any

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person who was simultaneously a member of more than one fire department at the time

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of diagnosis shall not be entitled to receive benefits under this paragraph from or on

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behalf of more than one of such fire departments. In the event a volunteer of one fire

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department is simultaneously employed by another fire department, the fire department

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for which such person is a volunteer shall not be required to maintain the coverage on

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such volunteer otherwise required under this subsection during the period of such

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employment. Any member who receives benefits under division (ii) of subparagraph

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(B) of this paragraph may be required to have his or her condition reevaluated; in the

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event any such reevaluation reveals that such person has regained the ability to perform

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duties as a firefighter, then his or her benefits under division (ii) of subparagraph (B)

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of this paragraph shall cease. Benefits under said division shall also cease upon the

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death of such person. A member who, after at least one year as a firefighter, departs

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from employment, ceases to be an active volunteer, or retires shall be entitled to

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continue his or her coverages under this paragraph through a continuation or conversion

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to individual coverage. The departing member shall be responsible for payment of all

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premiums.

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(E) In addition to any other purpose authorized under Chapter 8 of Title 33, county

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governing authorities and municipal governing authorities may use proceeds from

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county and municipal taxes imposed under said chapter for purposes of providing

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insurance pursuant to this paragraph.

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(F) Funds received as premiums for the coverages specified in this paragraph shall not

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be subject to premium taxes under Chapter 8 of Title 33.

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(G) The computation of premium amounts by an insurer for the coverages under this

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paragraph shall be subject to generally accepted adjustments from insurance

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underwriting.

The combined total of all benefits received by any firefighter under

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(c) On and after July 1, 1998, the The Georgia Firefighter Standards and Training Council

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shall be authorized, by rules and regulations, to adopt such rules and regulations as are

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HB146/SCSFA

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reasonable and necessary to implement the provisions of this Code section and to establish

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and modify minimum requirements for all fire departments operating in this state, provided

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that such requirements are equal to or exceed the requirements provided in subsections (a)

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and (b) of this Code section."

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SECTION 2.

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Chapter 85 of Title 36 of the Official Code of Georgia Annotated, relating to interlocal risk

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management agencies, is amended in Code Section 36-85-1, relating to definitions, by

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revising paragraphs (6) and (8) as follows:

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"(6) 'Group self-insurance fund' or 'fund' means a pool of public moneys established by

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an interlocal risk management agency from contributions of its members in order to pool

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the risks of accident, disability, supplemental medical, general liability, motor vehicle

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liability, property damage, or any combination of such risks."

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"(8) 'Interlocal risk management program' means a plan and activities carried out under

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such plan by an interlocal risk management agency to reduce risk of loss on account of

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accident, disability, supplemental medical, general liability, motor vehicle liability, or

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property damage, including safety engineering and other loss prevention and control

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techniques, and to administer one or more group self-insurance funds, including the

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processing and defense of claims brought against members of the agency."

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SECTION 3.

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Said chapter is further amended in Code Section 36-85-2, relating to the formation and

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functions of interlocal risk management agencies, by revising paragraph (4) of subsection (a)

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as follows:

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"(4) Jointly purchase accident, disability, supplemental medical, general liability, motor

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vehicle liability, or property damage insurance with other municipalities or counties

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participating in and belonging to the interlocal risk management agency, the participating

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municipalities or counties to be coinsured under a master policy or policies with the total

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premium apportioned among such participants."

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SECTION 4.

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Said chapter is further amended in Code Section 36-85-5, relating to certificates of authority

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and applications, by revising subsection (d) as follows:

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"(d) A fund authorized by this chapter may be established by an agency only if the agency

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has enrolled members which:

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(1) For each motor vehicle liability and general liability fund shall generate an annual

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gross premium of not less than $300,000.00;

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(2) For each property damage fund shall generate an annual gross premium of not less

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than $200,000.00;

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(3) For each fund which includes motor vehicle liability or general liability with property

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damage shall generate an annual gross premium of not less than $500,000.00; or

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(4) For each fund which includes motor vehicle liability, general liability, and property

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damage shall generate an annual gross premium of not less than $800,000.00.; or

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(5) For each fund which includes accident, disability, or supplemental medical coverage

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shall generate an annual gross premium of not less than $500,000.00."

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SECTION 5.

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Code Section 48-7-27 of the Official Code of Georgia Annotated, relating to computation of

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Georgia taxable net income, is amended in subsection (a) by adding new paragraph to read

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as follows:

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"(12.2) Payments received by a firefighter pursuant to paragraph (2) of subsection (b) of

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Code Section 25-3-23, to any extent such amounts are included in the taxpayer's federal

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adjusted gross income and are not otherwise exempt under any other provision of this

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Code section;

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(12.3) An amount equal to 100 percent of any premium paid by the individual taxpayer

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during the taxable year for coverage pursuant to paragraph (2) of subsection (b) of Code

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Section 25-3-23, to any extent such deduction has not been included in the taxpayer's

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federal adjusted gross income and such amount is not otherwise deductible under any

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other provision of this Code section;"

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SECTION 6.

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This Act shall become effective on January 1, 2018.

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SECTION 7.

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All laws and parts of laws in conflict with this Act are repealed.

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