MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Insurance; Appropriations

By: Representative Reynolds

House Bill 751

AN ACT TO CREATE IN THE STATE TREASURY A SPECIAL FUND TO BE KNOWN AS THE MISSISSIPPI TOBACCO SETTLEMENT SPECIAL FUND; TO PROVIDE THAT CERTAIN MONIES IN THE FUND MAY BE APPROPRIATED ONLY FOR THE PURPOSE OF FUNDING THE RURAL FIRE TRUCK ACQUISITION ASSISTANCE PROGRAM; TO AMEND SECTION 17-23-1, MISSISSIPPI CODE OF 1972, TO CONTINUE FUNDING THE RURAL FIRE TRUCK ACQUISITION ASSISTANCE PROGRAM WITH CERTAIN MONIES FROM THE MISSISSIPPI TOBACCO SETTLEMENT FUND; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) There is created in the State Treasury a special fund to be known as the Mississippi Tobacco Settlement Fund. Monies in the special fund shall consist of all funds that have been paid or will be paid to the State of Mississippi from the tobacco industry as a result of:

(a) Settlement of the case of Mike Moore, Attorney General ex rel. State of Mississippi v. The American Tobacco Company et al. (Chancery Court of Jackson County, Mississippi, Cause No. 94-1429);

(b) Settlement of any case brought by another state against the tobacco industry; and

(c) Any legislation enacted by Congress to implement the national tobacco settlement agreement between the state attorneys general and the tobacco industry.

(2) Monies in the special fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest and income earned on amounts in the special fund shall be deposited to the credit of the special fund.

(3) The total amount of Twenty-eight Million Seven Hundred Thousand Dollars ($28,700,000.00) of the monies in the fund may be expended only upon appropriation of the Legislature and may be appropriated only for the purpose of funding the rural fire truck acquisition assistance program in accordance with Section 17-23-1.

SECTION 2. Section 17-23-1, Mississippi Code of 1972, is amended as follows:

17-23-1. (1) There is established a 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.

(2) There is created in the State Treasury a special fund to be designated as the "Rural Fire Truck Fund." The Legislature shall appropriate an amount of Four Million One Hundred Thousand Dollars ($4,100,000.00) each year for seven (7) years for a total of Twenty-eight Million Seven Hundred Thousand Dollars ($28,700,000.00) from the Mississippi Tobacco Settlement Fund or any other available funds to the Rural Fire Truck Fund. An appropriation of Four Million One Hundred Thousand Dollars ($4,100,000.00) shall be made during the 1998 Regular Session and each regular session thereafter through the 2004 Regular Session. Such monies as are deposited into the fund under the provisions of this section shall be available after each such regular session, upon legislative appropriation, and upon requisition therefor by the Commissioner of Insurance, in accordance with the provisions of this section. 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. It is the intent of the Legislature that the Department of Insurance continue to accept applications from the counties for fire trucks from the additional funds authorized by this subsection. * * *

(3) (a) A county that meets the requirements provided herein may receive an amount not to exceed Three Hundred Fifty Thousand Dollars ($350,000.00) and such amount shall be divided equally with not more than Fifty Thousand Dollars ($50,000.00) per fire truck. 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.

 * * *

(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 on or before January 2 each year 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.

SECTION 3. This act shall take effect and be in force from and after July 1, 1998.