<p class=ldtitle>A BILL to amend and reenact §§ 38.2-401, as it is currently effective and as it shall become effective, and 46.2-694, as it is currently effective and as it may become effective, of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 38.2-401.2, relating to insurance; Fire Programs Fund; fees for vehicles; Virginia At Risk Fire Grant Program established; Firefighter Personal Protective Equipment (PPE) Fund established.</p>
SB775 would expand and restructure Virginia’s fire-service funding mechanisms. It increases the annual assessment on licensed insurance companies that fund the Fire Programs Fund, raising the rate from 1 percent to 1.5 percent beginning July 1, 2026, and to 2 percent beginning July 1, 2027. The bill keeps the Fire Programs Fund as a nonreverting special fund administered by the Department of Fire Programs and the Virginia Fire Services Board, and it directs those revenues to fire-service training, grant programs, local fire operations, and related administrative costs.
The bill also creates a new Virginia At Risk Fire Grant Program and a new Firefighter Personal Protective Equipment (PPE) Fund. The At Risk Fire Grant Program would reserve a portion of Fire Programs Fund revenues for local fire departments that are most at risk of being unable to provide suppression or rescue services or remain in compliance with law. The PPE Fund would be a separate nonreverting fund used only to buy breathing apparatus and other non-vehicular protective equipment for firefighters, with priority given to fiscally stressed and distressed localities that demonstrate need. In addition, the bill raises the annual vehicle registration surcharge dedicated to emergency medical services from $4.25 to $6.25, while preserving the existing distribution structure for EMS-related uses.
Under the bill, most remaining Fire Programs Fund money would continue to flow to counties, cities, and towns that provide fire service operations, with the funds restricted to training, fire prevention education, training facilities, emergency medical equipment, personnel costs related to training, PPE, vehicles, supplies, and cancer-reduction equipment and training for firefighters. The bill also adds a reporting requirement tied to the National Emergency Response Information System (NERIS) for localities receiving fire funds, and it preserves the rule that these funds may not supplant local fire budgets. The bill further updates the vehicle-fee statute to reflect the higher EMS surcharge and makes conforming changes to the passenger-vehicle fee schedule.
The general sentiment reflected in the bill’s early consideration was strongly favorable, at least in committee: it was reported from Commerce and Labor unanimously and later continued in Finance and Appropriations by a 15-0 vote. That voting pattern suggests broad support for the bill’s fire-service and EMS funding goals, especially its focus on equipment, training, and support for under-resourced local departments. There is no recorded committee transcript in the provided materials, so the available context does not show detailed debate or amendments.
The main points of potential contention are fiscal and policy-related rather than ideological. The bill increases assessments on insurance companies and raises a vehicle fee surcharge, which could draw concern from affected payers and from those wary of dedicated fee increases. It also imposes new reporting and compliance conditions on localities receiving funds, including NERIS reporting, which may be seen as an administrative burden. Finally, because the bill directs funds to specific grant programs and equipment purchases, any debate would likely center on whether the new earmarks and higher assessments are the best way to support fire and EMS services statewide.
SB775 would amend Virginia’s insurance and motor vehicle code provisions to increase dedicated revenue for fire and emergency medical services and to create new special funds and grant programs. It would raise the insurance-company assessment that finances the Fire Programs Fund, increase the EMS registration surcharge on vehicles, establish the Virginia At Risk Fire Grant Program, and create the Firefighter Personal Protective Equipment Fund. The bill would also add new reporting and eligibility conditions for localities receiving fire-service funds and would direct the Department of Fire Programs and Virginia Fire Services Board to administer the new and existing funding streams under updated policies.
The available voting history indicates strong support for the bill in committee. It was reported from Commerce and Labor on a 13-0 vote and later continued in Finance and Appropriations on a 15-0 vote, suggesting no recorded opposition at those stages. With no committee transcript provided, the record shows a generally favorable reception focused on fire-service funding, local support, and firefighter safety.
The likely areas of contention are the bill’s funding sources and administrative requirements. Insurance companies would bear the higher Fire Programs Fund assessment, and vehicle owners would pay a larger EMS surcharge, so cost impacts on those groups could be debated. Local governments and fire departments may also scrutinize the new reporting requirements, especially the NERIS incident-reporting condition tied to continued eligibility for funds. More broadly, the bill’s earmarking of revenues for specific fire and EMS purposes could raise questions about flexibility, equity in distribution, and whether the new funds should be targeted to distressed localities versus distributed more broadly.