SB1571 Summary

• Foreign fire insurance companies must pay a fixed 2% licensing fee on gross receipts from fire insurance on property within the municipality or fire protection district, eliminating municipal discretion to set variable rates.

• Foreign fire insurance boards have sole and exclusive authority to collect licensing fees and may designate representatives or agents; boards that do not collect fees themselves must use a statewide organization of municipalities recognized under Section 1-8-1.

• Regulation of foreign fire insurance boards and their licensing fees is an exclusive state power that cannot be regulated by home rule municipalities.

• Foreign fire insurance boards may establish accounts, contract for professional services (accounting, legal, collection), and sue to enforce rights; disputes over fund expenditures are resolved through binding arbitration.

• For Chicago specifically, the city must transfer collected foreign fire insurance proceeds to the board within 30 days, with proceeds allocated as: 50% for fire stations and training facilities, 25% for emergency response vehicles and equipment, and 25% for department maintenance and member benefits.