H 7465Insurance

State Affairs and Government - Rhode Island Fire Services Training Fund Act

This bill funds fire service training by charging insurance companies a 0.25% fee on property and casualty insurance premiums.

Held for study

Population
Affected

Email Legislator

Introduced Jan 30, 2026Committee House Finance

Plain-English Summary

This legislation establishes the "Rhode Island Fire Services Training Fund" to provide a dedicated revenue stream for the Rhode Island Fire Academy and statewide fire service training. The fund is financed by imposing an annual assessment of 0.25% on premiums collected by insurance companies for property and casualty policies, including homeowners and commercial property insurance. This assessment applies to policies issued or renewed starting January 1, 2027. Notably, the bill prohibits insurance companies from passing this cost on to policyholders as a specific line-item surcharge on their bills.

For younger readers

This new rule creates a special piggy bank to pay for school and training for firefighters. Firefighters need to practice so they can stay safe and help people during fires and emergencies. To fill this piggy bank, the companies that sell insurance for houses and buildings will have to pay a small amount of money to the state. The insurance companies are not allowed to add a specific extra charge to a customer's bill to pay for this. The money will be used for the Fire Academy, training equipment, and teaching firefighters new skills.

Who & Where It Applies

Impacted groups

Insurance CompaniesFirefightersProperty OwnersState Fire MarshalDepartment of Public Safety

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Insurance Companies: 0.25% of collected premiums

Estimated revenue

Amount unknown

Bill Analysis

Both viewpoints

For Progressives

Ensures robust training for first responders and emergency personnel, directly contributing to community safety and the well-being of the general public.
Places the financial responsibility for the assessment on insurance corporations rather than levying a direct tax on individual taxpayers.
Includes a consumer protection provision that prohibits insurance companies from adding a specific line-item surcharge to policyholder bills, preventing a visible direct cost transfer to consumers.
Insurance companies will likely raise base premiums to cover the cost, effectively acting as a regressive hidden tax that impacts low-income homeowners and renters (via rent increases) disproportionately.
Allocates specific funding to public safety/uniformed services without corresponding dedicated revenue streams for social services or community-based non-violent intervention programs.
The assessment is a flat percentage rather than a progressive structure based on corporate profit margins, treating all insurers the same regardless of size or ability to pay.

For Conservatives

Strengthens public safety and law and order by ensuring firefighters and first responders are properly trained to protect life and property.
Creates a dedicated "lockbox" fund, ensuring that the money raised is used strictly for fire training and cannot be raided for unrelated general government spending.
Better trained fire services ultimately protect property values and reduce catastrophic losses for businesses and homeowners.
Imposes a new financial assessment on private businesses (insurance companies), effectively acting as a tax increase on the private sector.
Interferes with the free market by legally prohibiting companies from transparently listing the surcharge on bills, forcing them to hide the government cost within base rates.
Increases the cost of doing business in Rhode Island, potentially discouraging insurers from operating in the state or driving up premiums for all policyholders.

Votes

Loading votes...

Full Bill Text

Changes to existing Rhode Island law · 49 additions

SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND GOVERNMENT" is hereby amended by adding thereto the following chapter: 42-28.11-1. Title and purpose. This act shall be known and may be cited as the “Rhode Island Fire Services Training Fund Act.” The purpose of this chapter is to create a stable, dedicated funding source for statewide fire service training by establishing a twenty-five hundredths percent (0.25%) assessment on property and casualty insurance premiums. 42-28.11-2. Rhode Island fire services training fund establishment. A restricted, non-lapsing Rhode Island fire services training fund within the department of public safety is hereby created to support the Rhode Island fire academy and statewide fire service training. 42-28.11-3. Assessment on insurers.

(a) On January 1, 2028 and every January 1 thereafter every insurance company authorized to write property and casualty insurance in Rhode Island, for every property and casualty insurance policy issued or renewed on or after January 1, 2027, shall remit an annual assessment equal to twenty-five hundredths percent (0.25%) of all premiums collected the prior calendar year on:

(1) Homeowners insurance;

(2) Dwelling fire policies;

(3) Commercial property insurance;

(4) Commercial multi-peril insurance policies;

(5) Inland marine insurance policies; and

(6) Other property and casualty insurance lines as defined by the department of business regulation.

(b) The assessment shall be in addition to all other fees or taxes and shall not be passed onto policyholders as a specific line-item surcharge.

(d) All assessments and interest shall be deposited into the Rhode Island fire services training fund. Interest on any late payment shall be calculated pursuant to the provisions of § 9-21- 10.

(e) The state fire marshal shall administer the fund and disburse fund proceeds as authorized by the general assembly. Unexpended balances shall not revert to the general fund, but shall remain in the Rhode Island fire services training fund. 42-28.11-4. Authorized use of funds. As authorized by the general assembly the funds may be used for:

(1) Rhode Island Fire Academy operations;

(2) Recruit training;

(3) Certification programs;

(4) Hazardous materials, technical rescue, marine, and EMS training;

(5) Capital improvements and live-burn facilities;

(6) Mobile training units;

(7) Curriculum and instructor development; and

(8) Municipal training grants. 42-28.11-5. Reporting. An annual report shall be submitted by January 31 of each year, beginning in 2028, to the governor and general assembly detailing revenues, expenditures, training delivered, and municipal participation. 42-28.11-6. Severability. If any provision of this chapter or its application to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provisions or application, and to this end the provisions of this chapter are declared to be severable.

SECTION 2. This act shall take effect upon passage.