A BILL to amend and reenact § 38.2-401, as it is currently effective and as it shall become effective, of the Code of Virginia, relating to Fire Programs Fund; assessment.
HB394 revises Virginia’s Fire Programs Fund statute by increasing the annual assessment on licensed insurance companies that do business in the Commonwealth. Under the bill, the assessment would rise from 1 percent of direct gross premium income before July 1, 2026, to 1.5 percent for the following year, and then to 2 percent on and after July 1, 2027. The bill keeps the existing minimum $100 contribution for companies with little or no premium income subject to the assessment.
The bill also updates how money in the Fire Programs Fund is used and administered. Most of the remaining funds, after set-asides for grant programs, continue to be distributed to counties, cities, and towns that provide fire service operations, with the money restricted to fire service training, equipment, prevention, emergency medical gear, facilities, and firefighter cancer-reduction measures. The bill adds a new reporting condition requiring localities to report emergency incidents through the National Emergency Response Information System (NERIS) and share that data with the Department of Fire Programs to remain eligible for future funding. It also preserves the Fire Services Grant Program and Dry Fire Hydrant Grant Program and continues to bar use of the fund for State Fire Marshal operating expenses.
In practical terms, the bill would increase the revenue flowing into the Fire Programs Fund and expand the resources available for local fire service operations, training infrastructure, firefighter safety equipment, and statewide grant programs. It would also reinforce state oversight of local recipients by tying continued eligibility to annual reporting and compliance with fund-use requirements. The bill affects insurers subject to the assessment, local governments receiving allocations, and the Department of Fire Programs and Virginia Fire Services Board, which administer the fund and grants.
The general sentiment reflected by the bill text and its posture appears supportive of fire service funding and modernization, with the measure framed as a dedicated revenue increase for local fire protection, training, and firefighter health and safety. However, no committee transcript or vote record is available, and the bill was left in the House Appropriations Committee, so there is no recorded floor debate or vote to indicate broader legislative support or opposition.
The main point of contention likely concerns the higher assessment on insurers and the resulting cost increase that may be passed through in premiums or otherwise opposed by the insurance industry. Another potential issue is the added compliance burden on localities, especially the new NERIS reporting requirement tied to funding eligibility. The bill’s supporters would likely emphasize improved fire service capacity, cancer prevention, and training resources, while critics may focus on the tax-like assessment increase and administrative conditions attached to the funding.
HB394 would amend § 38.2-401 of the Code of Virginia to increase the insurance-company assessment that finances the Fire Programs Fund and to revise the conditions under which localities receive distributions from that fund. It would also add a new reporting requirement for recipient localities to maintain eligibility, requiring annual incident reporting through NERIS and data sharing with the Department of Fire Programs. The bill would continue to direct fund revenues to local fire service operations, statewide grant programs, and Department of Fire Programs activities, while maintaining restrictions on use of the money.
The bill appears generally favorable toward fire service funding, training, and firefighter health and safety, with the statutory changes designed to provide more revenue and stronger program support. Because there are no committee transcripts or votes, there is no direct record of debate, but the fact that the bill was left in the House Appropriations Committee suggests it did not advance in the process. The available context does not show organized support or opposition, only the policy direction embedded in the bill itself.
The most likely point of contention is the increased assessment on licensed insurance companies, which rises in stages to 2 percent of direct gross premium income and could be viewed as a cost increase for the insurance sector. A second possible concern is the new NERIS reporting requirement for localities, which ties funding eligibility to compliance and may be seen as an administrative burden. Supporters would likely prioritize the expanded funding for volunteer and career fire services, equipment, training, and firefighter cancer-reduction measures, while opponents would focus on cost, compliance, and the broader impact on insurance premiums.