HB199 • 2025

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO DISTRIBUTIONS TO FIRE COMPANIES AND DEPARTMENTS.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Wilson-Anton
Last action: 2025-06-17
Official status: House Economic Development/Banking/Insurance & Commerce 6/5/25
Effective date: Not listed

Plain English Breakdown

The official status shows a 'Motion to Release Failed' in June 2025, meaning this bill has not yet passed both chambers despite metadata suggesting it reached final enrollment. The effective date is currently unknown.

HB199: Keeping Fire Department Funding After Mergers

This bill ensures that fire companies in Delaware keep their full share of insurance tax money if they merge with other departments.

What This Bill Does

Amends Title 18 of the Delaware Code regarding payments to fire groups.
Allows two or more fire companies to combine into one without losing funding.
Requires that merged groups receive the total amount their separate parts would have gotten before combining.
Applies this rule specifically to tax money collected from insurance premiums on property.

Who It Names or Affects

Fire companies and departments in New Castle County outside of Wilmington
Fire companies and departments in Kent County
Fire companies and departments in Sussex County

Terms To Know

Consolidate or Merge: When two separate fire groups join together to become one single group.
Insurance Premiums: The money paid for insurance coverage on homes and property, which creates a tax fund used to pay firefighters.

Limits and Unknowns

This rule only applies to fire groups in New Castle (outside Wilmington), Kent, and Sussex Counties.
It does not change how money is shared with the City of Wilmington or other state agencies.
The bill text uses placeholders for dates where it says 'effective date,' so the exact start time depends on when the law officially begins.

Bill History

2025-06-17 Delaware General Assembly
Motion to Release Failed
2025-06-05 Delaware General Assembly
Introduced and Assigned to Economic Development/Banking/Insurance & Commerce Committee in House

Official Summary Text

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO DISTRIBUTIONS TO FIRE COMPANIES AND DEPARTMENTS.
This Act allows fire companies or departments to merge or consolidate without reduction of the fire company or department’s share of tax on insurance premiums for covering risks of loss on any real or personal property.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. Wilson-Anton & Sen. Townsend

Rep. Lambert

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 199

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO DISTRIBUTIONS TO FIRE COMPANIES AND DEPARTMENTS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 705, Title 18 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 705. Reporting by insurers of gross premiums; payments to fire companies or departments and the State Insurance Coverage Office based on the Insurance Commissioner’s reports.

(b) The Insurance Commissioner shall ascertain and report to the State Treasurer, on or before May 15 of each year, the following information:

(1) The information contained in the statements under paragraph (a)(1) of this section and such other information as the Insurance Commissioner has obtained from the insurance companies under subsection (a) of this section.

(2) The proportions in which the sum described in subsection (c) of this section is to be allocated among, and the actual amounts due to, the Treasurer of the City of Wilmington and to the member fire companies or departments of this State. The allocations and amounts must be calculated as follows:

a. The sum of the premiums attributable to the City of Wilmington is to be allocated to the Treasurer of the City of Wilmington.

b. The sum of the premiums attributable to the County of New Castle, outside the City of Wilmington, is to be divided and allocated equally among the fire companies or departments in the County of New Castle outside of the City of

Wilmington.

Wilmington in existence as of [the effective date of this Act]. After [the effective date of this Act], if two or more fire companies or departments in the County of New Castle outside of the City of Wilmington merge or consolidate, the resulting fire company or department will receive the allocations that the merged or consolidated companies or departments would have been entitled to receive prior to the merger or consolidation.

c. The sum of the premiums attributable to Kent County is to be divided and allocated equally among the fire companies or departments in Kent

County.

County in existence as of [the effective date of this Act]. After [the effective date of this Act], if two or more fire companies or departments in Kent County merge or consolidate, the resulting fire company or department will receive the allocations that the merged companies or departments would have been entitled to receive prior to the merger or consolidation.

d. The sum of the premiums attributable to Sussex County is to be divided and allocated equally among the fire companies or departments in Sussex

County.

County in existence as of [the effective date of this Act]. After [the effective date of this Act], if two or more fire companies or departments in Sussex County merge or consolidate, the resulting fire company or department will receive the allocations that the merged companies or departments would have been entitled to receive prior to the merger.

SYNOPSIS

This Act allows fire companies or departments to merge or consolidate without reduction of the fire company or department’s share of tax on insurance premiums for covering risks of loss on any real or personal property.