S 2020Public Finance

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

Creates a dedicated fund for firefighter training financed by a 0.25% assessment on property insurance company premiums.

Introduced

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Introduced Jan 9, 2026Committee Senate Finance

Plain-English Summary

This bill establishes the "Rhode Island Fire Services Training Fund" to provide a dedicated source of money for training firefighters across the state. The fund is financed by charging insurance companies a fee equal to 0.25% of the premiums they collect on property and casualty insurance policies, starting in 2028. Insurance companies are prohibited from listing this fee as a separate surcharge on customer bills. The money collected will be used for the Rhode Island Fire Academy, recruit training, equipment, and grants to local municipalities, overseen by the State Fire Marshal.

For younger readers

This new law helps pay for school and training for firefighters. Firefighters need to practice putting out fires and saving people so they can stay safe and do a good job. To pay for this, the companies that sell insurance for houses and buildings will have to pay a small amount of money to the state. This money goes into a special piggy bank called a "fund" that can only be used to teach firefighters new skills and buy better training equipment.

Who & Where It Applies

Impacted groups

Insurance CompaniesFirefightersProperty OwnersDepartment of Public SafetyMunicipal Governments

Impacted communities

All

Constitutional & Fiscal Check

The provision prohibiting insurance companies from passing the assessment onto policyholders as a "specific line-item surcharge" could potentially face a First Amendment challenge regarding commercial speech. While the state can regulate insurance rates, restricting how a business communicates the cost components of a bill to consumers might be viewed as an unconstitutional restriction on truthful commercial speech, although similar "anti-pass-through" provisions exist in other contexts.

Estimated cost

Insurance Companies: 0.25% of premiums collected

Estimated revenue

0.25% of property and casualty insurance premiums

Bill Analysis

Both viewpoints

For Progressives

Enhances public safety and community welfare by ensuring firefighters receive comprehensive training, potentially saving lives and reducing property damage in all neighborhoods.
Places the financial responsibility on insurance corporations rather than increasing direct taxes on working-class residents or cutting other social services.
Provides grants to municipal fire departments, which helps equalize resources for towns that may struggle to fund adequate training for their first responders.
Although line-item surcharges are banned, insurance companies will likely raise overall premiums to cover the cost, effectively acting as a hidden regressive tax on homeowners and renters.
The assessment applies to premiums collected, which could ultimately increase the cost of housing and living expenses for struggling families if insurers adjust their base rates.
Does not explicitly mandate that the training curriculum includes a specific focus on diverse communities or social justice issues within emergency response.

For Conservatives

Strengthens the capabilities of first responders to protect private property and businesses from fire damage, preserving economic value and assets.
Establishes a restricted, non-lapsing fund, ensuring that the money collected is used strictly for its intended purpose and not diverted to general government spending.
Supports local municipalities through training grants, potentially reducing the burden on local property taxes to fund fire department requirements.
Imposes a new tax on private insurance companies, interfering with the free market and increasing the cost of doing business in the state.
Violates corporate freedom by prohibiting insurance companies from transparently listing the assessment as a surcharge, forcing them to hide the government cost within base rates.
Expands government bureaucracy by creating a new fund and administrative requirements within the Department of Public Safety.

Votes

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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.