HB 948 — Windstorm Underwriting Association; revise various provisions relating to.

HB 948 (COMMITTEE(As SUBSTITUTE)Passed the House) - 2018 Regular Session MISSISSIPPI LEGISLATURE Regular Session To:

Representatives Chism, Arnold, Carpenter, Miles, Hughes, Reynolds, Gipson, Byrd, Turner, Holloway, Gibbs (72nd), Staples, Horne, Weathersby, Rogers (61st), Steverson, Rushing, Hale House Bill 948 (COMMITTEE(As SUBSTITUTE)Passed the House) AN ACT TO REENACT AND AMEND SECTION 83-34-4, MISSISSIPPI CODE OF 1972, TO REQUIRE MONIES DERIVED FROM THE NONADMITTED POLICY FEE TO BE DEPOSITED INTO THE RURAL FIRE TRUCK FUND OR SUPPLEMENTARY RURAL FIRE TRUCK FUND AND TO EXTEND THE REPEALER THEREON;

TO AMEND SECTION 17-23-1, MISSISSIPPI CODE OF 1972, TO AUTHORIZE AN ADDITIONAL ROUND FOR THE RURAL FIRE TRUCK ACQUISITION ASSISTANCE PROGRAM;

     (6)  Monies derived from the nonadmitted policy fee collected under this section * * *may be used by the association, in addition to any uses provided for in Section 83-34-3(4),83‑34‑3(4), for education, public outreach, training of building officials and other programs targeted to reduce the number of policies within the association shall be deposited into the Rural Fire Truck Fund or Supplementary Rural Fire Truck Fund.

     (4)  All contracts for personal and professional services entered into by the Mississippi Windstorm Underwriting Association that exceed Seventy-five Thousand Dollars ($75,000.00) in annual payments shall be submitted to the Commissioner of Insurance and the Public Procurement Review Board for review and approval.  This subsection (4) shall not apply to the reinsurance policy itself.

     SECTION 5.  ThisSection act17-23-1, shallMississippi takeCode effectof and1972, beis inamended forceas fromfollows: and after its passage.

     17-23-1.  (1)  There is established the Rural Fire Truck Acquisition Assistance Program to be administered by the Department of Insurance for the purpose of assisting counties and municipalities in the acquisition of fire trucks, firefighting equipment and/or personal protective equipment and related gear.

     (2)  There is created in the State Treasury a special fund to be designated as the "Rural Fire Truck Fund."  The Legislature may appropriate that amount necessary to fulfill the obligations created under this section by the Department of Insurance, from the State General Fund to such special fund, which sum shall be added to the remainder of the money transferred on July 1, 1995, and during the 1996 Regular Session to the Rural Fire Truck Fund.  Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund.  Unobligated amounts remaining in the Rural Fire Truck Fund, Fund No.

3507, or in Fund No.

3508, or in Fund No.

3504, or in any fund created for funds appropriated or otherwise made available for this program, may be used as matching funds by any county with remaining eligibility as provided herein.  It is the intent of the Legislature that the Department of Insurance continue to accept applications from the counties for fire trucks as provided in subsection (3) of this section.

     (3)  (a)  A county that meets the requirements provided herein may receive an amount not to exceed * * *Six Hundred Fifty Thousand Dollars ($650,000.00) Seven Hundred Twenty Thousand Dollars ($720,000.00) as provided in subparagraphs (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x) * * * and, (xi) and (xii) of this paragraph, and such amount shall be divided as follows:  an amount of not more than Fifty Thousand Dollars ($50,000.00) per fire truck for the first six (6) trucks and not more than Seventy Thousand Dollars ($70,000.00) per fire truck for the seventh, eighth, ninth, tenth * * * and, eleventh and twelfth trucks.  Monies distributed under this chapter shall be expended only for the purchase of new fire trucks and such trucks must meet the National Fire Protection Association (NFPA) standards in the 1900 series.

              (i)  Any county that has not applied for a fire truck under this section is eligible to submit applications for * * *eleven (11) twelve (12) fire trucks as follows:  six (6) fire trucks at not more than Fifty Thousand Dollars ($50,000.00) per truck and * * *five (5) six (6) fire trucks at not more than Seventy Thousand Dollars ($70,000.00) per truck or a total of * * *Six Hundred Thirty Thousand Dollars ($630,000.00) Seven Hundred Twenty Thousand Dollars ($720,000.00).

              (ii)  Any county that has received one (1) fire truck under this section is eligible to submit applications for * * *ten (10) eleven (11) fire trucks as follows:  six (6) fire trucks at not more than Fifty Thousand Dollars ($50,000.00) per truck and * * *five (5) six (6) fire trucks at not more than Seventy Thousand Dollars ($70,000.00) per truck or a total of * * *Five Hundred Eighty Thousand Dollars ($580,000.00) Six Hundred Seventy Thousand Dollars ($670,000.00).

              (iii)  Any county that has received two (2) fire trucks under this section is eligible to submit an application for * * *nine (9) ten (10) fire trucks as follows:  four (4) fire trucks at not more than Fifty Thousand Dollars ($50,000.00) per truck and * * *five (5) six (6) fire trucks at not more than Seventy Thousand Dollars ($70,000.00) per truck or a total of not more than * * *Five Hundred Thirty Thousand Dollars ($530,000.00) Six Hundred Twenty Thousand Dollars ($620,000.00).

              (iv)  Any county that has received three (3) fire trucks under this section is eligible to submit an application for * * *eight (8) nine (9) fire trucks as follows:  three (3) fire trucks at not more than Fifty Thousand Dollars ($50,000.00) per truck and * * *five (5) six (6) fire trucks at not more than Seventy Thousand Dollars ($70,000.00) per truck or a total of not more than * * *Four Hundred Eighty Thousand Dollars ($480,000.00) Five Hundred Seventy Thousand Dollars ($570,000.00).

              (v)  Any county that has received four (4) fire trucks under this section is eligible to submit an application for * * *seven (7) eight (8) fire trucks as follows:  two (2) fire trucks at not more than Fifty Thousand Dollars ($50,000.00) per truck and * * *five (5) six (6) fire trucks at not more than Seventy Thousand Dollars ($70,000.00) per truck or a total of not more than * * *Four Hundred Thirty Thousand Dollars ($430,000.00) Five Hundred Twenty Thousand Dollars ($520,000.00).

              (vi)  Any county that has received five (5) fire trucks under this section is eligible to submit an application for * * *six (6) seven (7) fire trucks as follows:  one (1) fire truck at not more than Fifty Thousand Dollars ($50,000.00) per truck and * * *five (5) six (6) fire trucks at not more than Seventy Thousand Dollars ($70,000.00) per truck or a total of not more than * * *Three Hundred Eighty Thousand Dollars ($380,000.00) Four Hundred Seventy Thousand Dollars ($470,000.00).

              (vii)  Any county that has received six (6) fire trucks under this section is eligible to submit an application for * * *five (5) six (6) fire trucks at not more than Seventy Thousand Dollars ($70,000.00) per truck or a total of not more than * * *Three Hundred Thirty Thousand Dollars ($330,000.00) Four Hundred Twenty Thousand Dollars ($420,000.00).

              (viii)  Any county that has received seven (7) fire trucks under this section is eligible to submit an application for * * *four (4) five (5) fire trucks at not more than * * *Two Hundred Eighty Thousand Dollars ($280,000.00) Three Hundred Fifty Thousand Dollars ($350,000.00).

              (ix)  Any county that has received eight (8) fire trucks under this section is eligible to submit an application for * * *three (3) four (4) fire trucks at not more than * * *Two Hundred Ten Thousand Dollars ($210,000.00) Two Hundred Eighty Thousand Dollars ($280,000.00).

              (x)  Any county that has received nine (9) fire trucks under this section is eligible to submit an application for * * *two (2) three (3) fire trucks at not more than * * *One Hundred Forty Thousand Dollars ($140,000.00) Two Hundred Ten Thousand Dollars ($210,000.00).

              (xi)  Any county that has received ten (10) fire trucks under this section is eligible to submit an application for * * *one (1) two (2) fire trucks at not more than * * *Seventy Thousand Dollars ($70,000.00) One Hundred Forty Thousand Dollars ($140,000.00).

              (xi)  Any county that has received eleven (11) fire trucks under this section is eligible to submit an application for one (1) fire truck at not more than Seventy Thousand Dollars ($70,000.00).

          (b)  The board of supervisors of the county shall submit its request for the receipt of monies to the Department of Insurance.  A committee composed of the Commissioner of Insurance, the State Fire Coordinator, the Director of the Rating Bureau and the Director of the State Fire Academy shall review the requests by the boards of supervisors and shall determine whether the county or municipality for which the board of supervisors has requested a truck meets the requirements of eligibility under this chapter.

          (c)  To be eligible to receive monies under this chapter:

              (i)  A county or municipality must pledge to set aside or dedicate each year as matching funds, for a period not to extend over ten (10) years, local funds in an amount equal to or not less than one-tenth (1/10) of the amount of monies for which it is requesting distribution from the Rural Fire Truck Fund, which pledged monies may be derived from local ad valorem tax authorized by law or from any other funds available to the county or municipality, except for those funds received by municipalities or counties from the Municipal Fire Protection Fund or the County Volunteer Fire Department Fund, as defined in Sections 83-1-37 and 83-1-39.

              (ii)  A municipality must provide adequate documentation of its contract with the county that requires the municipality to provide fire protection in rural areas.  The term "rural areas" means any area within the county located outside the boundaries of an incorporated municipality or any incorporated municipality with a population of two thousand five hundred (2,500) or less.

          (d)  The Department of Insurance shall maintain an accurate record of all monies distributed to counties and municipalities and the number of fire trucks purchased and the cost for each fire truck, such records to be kept separate from other records of the Department of Insurance;

notify counties and municipalities of the Rural Fire Truck Acquisition Assistance Program and the requirements for them to become eligible to participate;

adopt and promulgate such rules and regulations as may be necessary and desirable to implement the provisions of this chapter;

and file with the Legislature a report detailing how monies made available under this chapter were distributed and spent during the preceding portion of the fiscal year in each county and municipality, the number of fire trucks purchased, the counties and municipalities making such purchases, * * * and the cost of each fire truck purchased and the equipment/gear purchased under paragraph (e) of this subsection.

          (e)  Any county participating in any round under this section may request and receive an amount up to Twenty-five Thousand Dollars ($25,000.00) for firefighting equipment and/or personal protective equipment and related gear.

     SECTION 6.  This act shall take effect and be in force from and after its passage.