The commonwealth of Virginia's Senate General Laws Committeedefeated a bill that would have allowed local municipalities tobill insurers for emergency services at crash sights.

The bill, SB 881, would have allowed volunteer fire andemergency services departments responding to emergency automobileaccidents.

Under the bill, often referred to as a crash tax, insurers wouldhave been required to offer coverage as part of their autopolicies. Mandated coverage would have been no less than $250. Theamount billed by the municipality would not have exceeded thecoverage.

The charges for emergency response would be made only byvolunteer fire and EMS services that were not fully funded bytaxes.

The legislation would have been an amendment to current lawgoverning the operation of emergency services vehicles and billingfor services.

The bill was defeated by a vote of 6-9.

"Accident response fees are a form of double taxation," saysErin Collins, state affairs manager for the National Association ofMutual Insurance Companies in a statement. "These fees are chargedfor services that are covered by taxation, not by forcing policycoverage where it may not exist. By their nature, accident responsefees punish insured drivers for following the law and gettinginsurance while the uninsured receive no such bills for police andemergency services. NAMIC applauds the committee for theirforesight in recognizing this detrimental practice and voting tostop SB 881."

In an interview, Collins says that while the state Senate hasdefeated the measure, a piece of legislation remains active in theHouse, but the status of that bill is not certain.

So far, 13 states have banned the practice of billing insurersfor emergency services for an auto accident.

In April, Arizona outlawed the practice and at about the same timeNew York City backed off a plan that would have allowed thecity to charge for emergency services when called to an autoaccident.