MISSISSIPPI LEGISLATURE
2007 Regular Session
To: Insurance
By: Representative Formby, Peranich, Upshaw, Guice, Janus, Patterson, Ishee, Zuber, Palazzo, Fredericks, Wells-Smith, Simpson, Dedeaux, Franks
AN ACT TO CREATE THE MISSISSIPPI ECONOMIC GROWTH AND REDEVELOPMENT ACT OF 2007, TO STIMULATE THE ECONOMIC GROWTH AND REDEVELOPMENT WITHIN ALL AREAS OF THE STATE BY PROMOTING THE AVAILABILITY OF AFFORDABLE COMMERCIAL AND RESIDENTIAL CASUALTY LOSS INSURANCE; TO AMEND SECTIONS 83-34-5 AND 83-34-9, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION TO SET UNDERWRITING STANDARDS AND TO RETAIN ANY PROFITS OR EXCESS RESERVES GENERATED TO BE USED TO OFFSET DEFICITS INCURRED BY THE PLAN AND TO REINVEST SUCH EXCESS RESERVES; TO AUTHORIZE PERMITTED INVESTMENTS OF SUCH EXCESS RESERVES; TO AMEND SECTION 83-34-27, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE COMMISSIONER OF INSURANCE AND THE STATE TREASURER TO AUDIT AND EXAMINE ANY REINVESTMENT OF EXCESS RESERVES; TO CREATE NEW CODE SECTION 83-34-14, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE BOARD OF DIRECTORS OF THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION TO LEVY AN EMERGENCY ASSESSMENT WHEN A DEFICIT EXCEEDS THE AMOUNT THAT WILL BE RECOVERED; TO AMEND SECTION 83-21-17, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE COMMISSIONER OF INSURANCE TO IMPOSE A FEE ON EACH NONADMITTED INSURER FOR THE PURPOSE OF DEFRAYING DEFICITS OF THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION; TO AMEND SECTION 83-21-21, MISSISSIPPI CODE OF 1972, TO AUTHORIZE FEES LEVIED BY THE MISSISSIPPI SURPLUS LINES ASSOCIATION TO BE TRANSFERRED TO THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION; TO CREATE A SPECIAL FUND IN THE STATE TREASURY TO BE KNOWN AS THE "MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION REINSURANCE ASSISTANCE FUND"; TO PROVIDE THAT MONIES IN THE SPECIAL FUND MAY BE USED BY THE DEPARTMENT OF INSURANCE, UPON APPROPRIATION BY THE LEGISLATURE, FOR THE PURPOSE OF ASSISTING THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION IN DEFRAYING EXPENSES AND COSTS FOR REINSURANCE; TO PROVIDE THAT THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION MAY USE SUCH FUNDS FOR THE PURPOSE OF DEFRAYING EXPENSES AND COSTS FOR REINSURANCE; TO PROVIDE THAT ANY MONIES IN EXCESS OF $50,000,000.00 REMAINING IN THE SPECIAL FUND AT THE END OF A FISCAL YEAR THAT HAVE NOT BEEN APPROPRIATED WILL LAPSE INTO THE STATE GENERAL FUND; TO REQUIRE THE COMMISSIONER OF INSURANCE TO FILE A REPORT WITH THE JOINT LEGISLATIVE BUDGET COMMITTEE NOT LATER THAN SEPTEMBER 1 OF EACH YEAR, RECOMMENDING THE AMOUNT OF ASSISTANCE, IF ANY, NEEDED BY THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION FOR REINSURANCE EXPENSES AND COSTS; TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A PORTION OF THE STATE SALES TAX REVENUE COLLECTED IN HANCOCK, HARRISON, JACKSON, PEARL RIVER, STONE AND GEORGE COUNTIES SHALL BE DEPOSITED INTO THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION REINSURANCE ASSISTANCE FUND; TO PROVIDE THAT A PORTION OF THE STATE INSURANCE PREMIUM TAX REVENUE SHALL BE DEPOSITED INTO THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION REINSURANCE ASSISTANCE FUND; TO PROVIDE AN ANNUAL CREDIT AGAINST STATE INCOME TAXES TO CERTAIN TAXPAYERS IN THE AMOUNT OF THE INCREASED PREMIUMS PAID BY SUCH TAXPAYERS ANNUALLY TO THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION; TO PROVIDE AN ANNUAL CREDIT AGAINST THE STATE INSURANCE PREMIUM TAXES FOR DOMESTIC AND FOREIGN INSURANCE COMPANIES FOR NEW POLICIES WRITTEN IN THE COASTAL COUNTIES OF THE STATE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be cited as the "Mississippi Economic Growth and Redevelopment Act of 2007."
SECTION 2. Section 83-34-5, Mississippi Code of 1972, is amended as follows:
83-34-5. The association shall, pursuant to the provisions of this chapter and the plan of operation, and with respect to essential property insurance on insurable property, have the power on behalf of its members:
(a) To cause to be issued, or issue, policies of insurance to applicants;
(b) To assume reinsurance from its members; * * *
(c) To cede reinsurance to its members and to purchase reinsurance in behalf of its members;
(d) To set underwriting standards under the plan including, but not limited to, the authority to set deductibles in an amount not to exceed five percent (5%) of the value of the insured property; and
(e) To retain any profits or excess reserves generated, from year to year, and to invest same. Such investments shall be limited to those permitted investments provided for in Section 83-19-51.
SECTION 3. Section 83-34-27, Mississippi Code of 1972, is amended as follows:
83-34-27. (1) The commissioner may from time to time make an examination into the affairs of the association when he deems prudent and, in undertaking such examination, may hold a public hearing. The expenses of such examination shall be borne and paid by the association.
(2) The commissioner, with advice and consent from the State Treasurer, may from time to time audit and examine any and all investments made pursuant to Section 83-34-5(e).
SECTION 4. Section 83-34-9, Mississippi Code of 1972, is amended as follows:
83-34-9. All members of the association shall participate in its writings, expenses, profits and losses in the proportion that the net direct premiums of each such member written in this state during the preceding calendar year bears to the aggregate net direct premiums written in this state by all members of the association, as certified to the association by the commissioner after review of annual statements, other reports and any other statistics the commissioner shall deem necessary to provide the information herein required and which the commissioner is hereby authorized and empowered to obtain from any member of the association. A member shall, in accordance with the plan of operation, annually receive credit for essential property insurance voluntarily written in a Coast area, and its participation in the writings of the association shall be reduced in accordance with the provisions of the plan of operation. Each member's participation in the association shall be determined annually in the manner provided in the plan of operation. Any insurer authorized to write and engage in writing any insurance, the writing of which requires such insurer to be a member of the association pursuant to the provisions of Section 83-34-3, who engages in writing such insurance after the effective date of this chapter, shall become a member of the association on the January 1 immediately following such authorization; and the determination of such insurer's participation in the association shall be made as of the date of such membership in the same manner as for all other members of the association. The association shall retain any profits or excess reserves generated, to be used to offset deficits incurred by the plan.
SECTION 5. The following shall be codified as Section 83-34-14, Mississippi Code of 1972:
83-34-14. Upon a determination of the board of directors that a deficit exceeds the amount that will be recovered, the board may make an emergency assessment. Each member on behalf of the association shall recoup the emergency assessment from its policyholders by applying a surcharge for a period not less than five (5) years and not to exceed seven (7) years, which period shall be established by the commissioner, to all policies issued or renewed in this state for subject lines of business. The surcharge shall be a uniform percentage of premiums, but shall not be subject to premium taxes, fees or commissions. Members shall cease to collect the recoupment surcharge once the full amount of the emergency assessment has been collected. Members shall notify the Department of Insurance at least thirty (30) days in advance of the commencement of the surcharge.
SECTION 6. Section 83-21-17, Mississippi Code of 1972, is amended as follows:
83-21-17. (1) The Commissioner of Insurance shall annually promulgate a list of nonadmitted insurers and each such insurer shall meet the same requirements as to capital and surplus as is required of a company licensed to do business in the State of Mississippi and annually pay a filing fee of Five Hundred Dollars ($500.00) in order to be eligible for certification as a nonadmitted insurer. An alien insurer shall be listed with the nonadmitted Insurers Information Office of the National Association of Insurance Commissioners. In the case of an alien insurer authorized to transact insurance of the kind involved in at least one (1) state of the United States, the insurer must have unimpaired capital and/or surplus or an effective trust fund amounting to at least One Million Five Hundred Thousand Dollars ($1,500,000.00) and, in the case of a group including incorporated and individual unincorporated insurers, the trust fund must be in the amount of not less than Fifty Million Dollars ($50,000,000.00). The incorporated members of the group shall not be engaged in any business other than underwriting as a member of the group and shall be subject to the same level of solvency regulation and control by the group's domiciliary regulator as are the unincorporated members. In the case of an alien insurer not authorized to transact business in at least one (1) state of the United States, the insurer must have an established trust fund of at least One Million Five Hundred Thousand Dollars ($1,500,000.00) within the United States administered by a recognized financial institution and held for the benefit of all its policyholders in the United States. The Commissioner of Insurance is specifically vested with authority to promulgate such rules and regulations as deemed necessary to carry out the provisions hereof and to publish a list of nonadmitted insurers found eligible for writing business in the State of Mississippi on a nonadmitted basis. The commissioner may, by giving seven (7) days' notice, at any time remove a nonadmitted insurer from such eligible list when it appears that such insurer no longer meets the requirements of the statute or regulations of the commissioner. When a nonadmitted insurer is placed upon or removed from the eligible list, all agents holding licenses under Sections 83-21-17 through 83-21-31 shall be notified of such eligibility or removal. Any agent of this state who places insurance with a nonadmitted insurer not on the list of eligible insurers shall be deemed in violation of the cited sections and shall be subject to revocation of license in the manner provided by statute for revocation of license of fire and casualty insurance agents.
(2) (a) In addition to the filing fee provided in subsection (1) of this section, the Commissioner of Insurance shall impose and collect a fee on each nonadmitted insurer for the purpose of defraying deficits of the Mississippi Windstorm Underwriting Association.
(b) The fee on each nonadmitted insurer shall be a percentage of the total policy premium, but shall not be considered premium and is not subject to premium taxes or commissions; however, the failure to pay the nonadmitted insurance fee shall be treated the same as the failure to pay premium.
(c) The nonadmitted insurer fee shall be set by the commissioner and may be changed from time to time, but in no event shall the nonadmitted insurer fee be an amount less than five percent (5%) of the total policy premium.
(d) The fee shall be collected by the Commissioner of Insurance for as many years as he deems necessary to assist in covering the deficit and shall be transferred to the Mississippi Windstorm Underwriting Association upon collection.
SECTION 7. Section 83-21-21, Mississippi Code of 1972, is amended as follows:
83-21-21. (1) The Commissioner of Insurance may establish a stamping procedure for all eligible nonadmitted/surplus lines insurance policies sold on risks subject to the payment of premium taxes to the State of Mississippi.
(2) The Commissioner of Insurance may rely upon the advice and assistance of a duly constituted association of surplus lines agents in carrying out the purposes of this chapter, if the association files with the commissioner:
(a) A copy of the association's constitution and articles of agreement of association or the association's certificate of incorporation and bylaws and any rules and regulations governing the association's activities;
(b) A list of the association's members; and
(c) The name and address of a resident of this state upon whom notices or orders of the commissioner or process issued by the commissioner may be served.
(3) The Commissioner of Insurance may examine the association's records concerning the functions or duties performed on behalf of the commissioner by the association.
(4) The association shall provide a means for the examination of all surplus lines coverages written to determine whether such coverages comply with the law and such rules or regulations as may be issued by the Commissioner of Insurance.
(5) The Commissioner of Insurance may refuse to accept, or may suspend or revoke the acceptance of, an association for any of the following reasons:
(a) It reasonably appears that the association will not be able to carry out the purposes of this chapter;
(b) The association does not maintain and enforce rules and regulations which will ensure that members of the association and persons associated with those members will comply with this chapter, other applicable state law or rules or regulations promulgated under either;
(c) The rules or regulations of the association do not ensure a fair representation of its members in the selection of directors and in the administration of its affairs;
(d) The rules or regulations of the association do not provide for an equitable allocation of reasonable dues, fees and other charges among members;
(e) The rules or regulations of the association impose an undue burden on competition; or
(f) The association fails to meet other applicable requirements prescribed in this chapter.
(6) A surplus lines agent shall cooperate with the association and the Commissioner of Insurance in fulfilling the surplus lines agent's statutory responsibility under this chapter.
(7) Upon request from the association, the Commissioner of Insurance may approve the levy of an examination fee of not more than one percent (1%) of premiums charged under this chapter for the operation of the association to the extent that such operation relieves the commissioner of duties otherwise required of the Commissioner of Insurance under this chapter.
(8) The association may revoke the membership of, and the Commissioner of Insurance may revoke the license in this state of, any licensee who fails to pay the examination fee when due, if the examination fee has been approved by the Commissioner of Insurance.
(9) The fees levied and collected by the association pursuant to this section have been and remain public funds and shall be subject to transfer to the Department of Insurance Special Fund or to the Mississippi Windstorm Underwriting Association by act of the Legislature * * *.
SECTION 8. (1) (a) There is created in the State Treasury a special fund to be designated as the "Mississippi Windstorm Underwriting Association Reinsurance Assistance Fund." The fund shall consist of monies deposited therein as provided under
Section 27-65-75(21), Section 10 of this act, and monies from any other source designated for deposit into such 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 or investment earnings on amounts in the fund shall be deposited to the credit of the fund; however, any monies in excess of Fifty Million Dollars ($50,000,000.00) remaining in the fund at the end of a fiscal year that have not been appropriated shall lapse into the State General Fund.
(b) Monies in the special fund may be used by the Department of Insurance, upon appropriation by the Legislature, only for the purpose of assisting the Mississippi Windstorm Underwriting Association in defraying expenses and costs for reinsurance under Section 83-34-1 et seq. The association may use any such funds received from the Department of Insurance for the sole purpose of defraying expenses and costs for reinsurance. Monies in the fund used for the purposes described in this paragraph (b) shall be in addition to other funds available from any other source for such purposes.
(c) Monies in the special fund may not be used, expended or transferred for any other purpose except upon amendment to this section by a bill enacted by the Legislature with a vote of not less than two-thirds (2/3) of the members of each house present and voting.
(2) (a) The Commissioner of Insurance shall file a report with the Joint Legislative Budget Committee not later than September 1 of each year, recommending the amount of assistance, if any, needed by the Mississippi Windstorm Underwriting Association for reinsurance expenses and costs. The Commissioner of Insurance also shall provide a copy of the report to the Attorney General and the Executive Director of the Mississippi Development Authority.
(b) The Mississippi Windstorm Underwriting Association shall prepare and file detailed reports with the Clerk of the House of Representatives, Secretary of the Senate, Commissioner of Insurance, Attorney General and Executive Director of the Mississippi Development Authority regarding the receipt and expenditure of monies by the association under this section.
SECTION 9. Section 27-65-75, Mississippi Code of 1972, is amended as follows:
27-65-75. On or before the fifteenth day of each month, the revenue collected under the provisions of this chapter during the preceding month shall be paid and distributed as follows:
(1) (a) On or before August 15, 1992, and each succeeding month thereafter through July 15, 1993, eighteen percent (18%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation. On or before August 15, 1993, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation.
A municipal corporation, for the purpose of distributing the tax under this subsection, shall mean and include all incorporated cities, towns and villages.
Monies allocated for distribution and credited to a municipal corporation under this subsection may be pledged as security for a loan if the distribution received by the municipal corporation is otherwise authorized or required by law to be pledged as security for such a loan.
In any county having a county seat that is not an incorporated municipality, the distribution provided under this subsection shall be made as though the county seat was an incorporated municipality; however, the distribution to the municipality shall be paid to the county treasury in which the municipality is located, and those funds shall be used for road, bridge and street construction or maintenance in the county.
(b) On or before August 15, 2006, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities on the campus of a state institution of higher learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocated for distribution to the state institution of higher learning or community or junior college and paid to the state institution of higher learning or community or junior college.
(2) On or before September 15, 1987, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, One Million One Hundred Twenty-five Thousand Dollars ($1,125,000.00) shall be allocated for distribution to municipal corporations as defined under subsection (1) of this section in the proportion that the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each such municipality during the preceding fiscal year bears to the total gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in municipalities statewide during the preceding fiscal year. The State Tax Commission shall require all distributors of gasoline and diesel fuel to report to the commission monthly the total number of gallons of gasoline and diesel fuel sold by them to consumers and retailers in each municipality during the preceding month. The State Tax Commission shall have the authority to promulgate such rules and regulations as is necessary to determine the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each municipality. In determining the percentage allocation of funds under this subsection for the fiscal year beginning July 1, 1987, and ending June 30, 1988, the State Tax Commission may consider gallons of gasoline and diesel fuel sold for a period of less than one (1) fiscal year. For the purposes of this subsection, the term "fiscal year" means the fiscal year beginning July 1 of a year.
(3) On or before September 15, 1987, and on or before the fifteenth day of each succeeding month, until the date specified in Section 65-39-35, the proceeds derived from contractors' taxes levied under Section 27-65-21 on contracts for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97 shall, except as otherwise provided in Section 31-17-127, be deposited into the State Treasury to the credit of the State Highway Fund to be used to fund that highway program. The Mississippi Department of Transportation shall provide to the State Tax Commission such information as is necessary to determine the amount of proceeds to be distributed under this subsection.
(4) On or before August 15, 1994, and on or before the fifteenth day of each succeeding month through July 15, 1999, from the proceeds of gasoline, diesel fuel or kerosene taxes as provided in Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) shall be deposited in the State Treasury to the credit of a special fund designated as the "State Aid Road Fund," created by Section 65-9-17. On or before August 15, 1999, and on or before the fifteenth day of each succeeding month, from the total amount of the proceeds of gasoline, diesel fuel or kerosene taxes apportioned by Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an amount equal to twenty-three and one-fourth percent (23-1/4%) of those funds, whichever is the greater amount, shall be deposited in the State Treasury to the credit of the "State Aid Road Fund," created by Section 65-9-17. Those funds shall be pledged to pay the principal of and interest on state aid road bonds heretofore issued under Sections 19-9-51 through 19-9-77, in lieu of and in substitution for the funds previously allocated to counties under this section. Those funds may not be pledged for the payment of any state aid road bonds issued after April 1, 1981; however, this prohibition against the pledging of any such funds for the payment of bonds shall not apply to any bonds for which intent to issue those bonds has been published, for the first time, as provided by law before March 29, 1981. From the amount of taxes paid into the special fund under this subsection and subsection (9) of this section, there shall be first deducted and paid the amount necessary to pay the expenses of the Office of State Aid Road Construction, as authorized by the Legislature for all other general and special fund agencies. The remainder of the fund shall be allocated monthly to the several counties in accordance with the following formula:
(a) One-third (1/3) shall be allocated to all counties in equal shares;
(b) One-third (1/3) shall be allocated to counties based on the proportion that the total number of rural road miles in a county bears to the total number of rural road miles in all counties of the state; and
(c) One-third (1/3) shall be allocated to counties based on the proportion that the rural population of the county bears to the total rural population in all counties of the state, according to the latest federal decennial census.
For the purposes of this subsection, the term "gasoline, diesel fuel or kerosene taxes" means such taxes as defined in paragraph (f) of Section 27-5-101.
The amount of funds allocated to any county under this subsection for any fiscal year after fiscal year 1994 shall not be less than the amount allocated to the county for fiscal year 1994.
Any reference in the general laws of this state or the Mississippi Code of 1972 to Section 27-5-105 shall mean and be construed to refer and apply to subsection (4) of Section 27-65-75.
(5) One Million Six Hundred Sixty-six Thousand Six Hundred Sixty-six Dollars ($1,666,666.00) each month shall be paid into the special fund known as the "State Public School Building Fund" created and existing under the provisions of Sections 37-47-1 through 37-47-67. Those payments into that fund are to be made on the last day of each succeeding month hereafter.
(6) An amount each month beginning August 15, 1983, through November 15, 1986, as specified in Section 6 of Chapter 542, Laws of 1983, shall be paid into the special fund known as the Correctional Facilities Construction Fund created in Section 6 of Chapter 542, Laws of 1983.
(7) On or before August 15, 1992, and each succeeding month thereafter through July 15, 2000, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2) shall be deposited by the commission into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35. On or before August 15, 2000, and each succeeding month thereafter, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35 until such time that the total amount deposited into the fund during a fiscal year equals Forty-two Million Dollars ($42,000,000.00). Thereafter, the amounts diverted under this subsection (7) during the fiscal year in excess of Forty-two Million Dollars ($42,000,000.00) shall be deposited into the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and shall not be subject to the percentage appropriation requirements set forth in Section 37-61-33.
(8) On or before August 15, 1992, and each succeeding month thereafter, nine and seventy-three one-thousandths percent (9.073%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the Education Enhancement Fund created under Section 37-61-33.
(9) On or before August 15, 1994, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, Two Hundred Fifty Thousand Dollars ($250,000.00) shall be paid into the State Aid Road Fund.
(10) On or before August 15, 1994, and each succeeding month thereafter through August 15, 1995, from the revenue collected under this chapter during the preceding month, Two Million Dollars ($2,000,000.00) shall be deposited into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.
(11) Notwithstanding any other provision of this section to the contrary, on or before February 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(2) and the corresponding levy in Section 27-65-23 on the rental or lease of private carriers of passengers and light carriers of property as defined in Section 27-51-101 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.
(12) Notwithstanding any other provision of this section to the contrary, on or before August 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1) on retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101 and the corresponding levy in Section 27-65-23 on the rental or lease of these vehicles, shall be deposited, after diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.
(13) On or before July 15, 1994, and on or before the fifteenth day of each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-22 that is derived from activities held on the Mississippi State Fairgrounds Complex, shall be paid into a special fund that is created in the State Treasury and shall be expended upon legislative appropriation solely to defray the costs of repairs and renovation at the Trade Mart and Coliseum.
(14) On or before August 15, 1998, and each succeeding month thereafter through July 15, 2005, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund, shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39.
(15) Notwithstanding any other provision of this section to the contrary, on or before September 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-19(1)(f) and (g)(i)2, shall be deposited, without diversion, into the Telecommunications Ad Valorem Tax Reduction Fund established in Section 27-38-7.
(16) On or before August 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a project as defined in Section 57-30-1 shall be deposited, after all diversions except the diversion provided for in subsection (1) of this section, into the Sales Tax Incentive Fund created in Section 57-30-3.
(17) Notwithstanding any other provision of this section to the contrary, on or before April 15, 2002, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under Section 27-65-23 on sales of parking services of parking garages and lots at airports shall be deposited, without diversion, into the special fund created under Section 27-5-101(d).
(18) On or before August 15, 2007, and each succeeding month thereafter through July 15, 2008, from the sales tax revenue collected during the preceding month under the provisions of this chapter, Two Million Five Hundred Thousand Dollars ($2,500,000.00) shall be deposited into the Special Funds Transfer Fund created in Section 4 of Chapter 556, Laws of 2003.
(19) (a) On or before August 15, 2005, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and the revenue collected on the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall, except as otherwise provided in this subsection (19), be deposited, after all diversions, into the Redevelopment Project Incentive Fund as created in Section 57-91-9.
(b) For a municipality participating in the Economic Redevelopment Act created in Sections 57-91-1 through 57-91-11, the diversion provided for in subsection (1) of this section attributable to the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and attributable to the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall be deposited into the Redevelopment Project Incentive Fund as created in Section 57-91-9, as follows:
(i) For the first six (6) years in which payments are made to a developer from the Redevelopment Project Incentive Fund, one hundred percent (100%) of the diversion shall be deposited into the fund;
(ii) For the seventh year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, eighty percent (80%) of the diversion shall be deposited into the fund;
(iii) For the eighth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, seventy percent (70%) of the diversion shall be deposited into the fund;
(iv) For the ninth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, sixty percent (60%) of the diversion shall be deposited into the fund; and
(v) For the tenth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, fifty percent (50%) of the funds shall be deposited into the fund.
(20) On or before January 15, 2007, and each succeeding month thereafter, eighty percent (80%) of the sales tax revenue collected during the preceding month under the provisions of this chapter from the operation of a tourism project under the provisions of Sections 57-28-1 through 57-28-5, shall be deposited, after the diversions required in subsections (7) and (8) of this section, into the Tourism Sales Tax Incentive Fund created in Section 57-28-3.
(21) On or before August 15, 2007, and each succeeding month thereafter, from the total sales tax revenue collected during the preceding month under the provisions of this chapter in Hancock, Harrison, Jackson, Pearl River, Stone and George Counties, One Million Five Hundred Thousand Dollars ($1,500,000.00), in the aggregate, shall be deposited into the Mississippi Windstorm Underwriting Association Reinsurance Assistance Fund created under Section 8 of House Bill No. 1500, 2007 Regular Session.
(22) The remainder of the amounts collected under the provisions of this chapter shall be paid into the State Treasury to the credit of the General Fund.
(23) It shall be the duty of the municipal officials of any municipality that expands its limits, or of any community that incorporates as a municipality, to notify the commissioner of that action thirty (30) days before the effective date. Failure to so notify the commissioner shall cause the municipality to forfeit the revenue that it would have been entitled to receive during this period of time when the commissioner had no knowledge of the action. If any funds have been erroneously disbursed to any municipality or any overpayment of tax is recovered by the taxpayer, the commissioner may make correction and adjust the error or overpayment with the municipality by withholding the necessary funds from any later payment to be made to the municipality.
SECTION 10. Using state fiscal year 2005 (the fiscal year ending June 30, 2005) as the base year, the State Tax Commission, no less often than annually, shall pay over to the State Treasurer for deposit into the special fund created in Section 8 of this act, an amount representing any growth after the base year of the portion of the insurance premium tax collected under Section 27-15-103 et seq. and allocated for distribution to the General Fund.
SECTION 11. The following shall be codified as Section 27-7-22.33, Mississippi Code of 1972:
27-7-22.33. (1) There shall be allowed as a credit against the tax imposed by this chapter an amount equal to the applicable percentage of the excess of the annual premiums paid for policies issued or renewed on or after October 1, 2006, by or on behalf of a taxpayer for "essential property insurance," as defined in Section 83-34-1(a), in any "Coast area," as defined in Section 83-34-1(f), to the Mississippi Windstorm Underwriting Association over the amount of annual premiums that would have been paid to the Mississippi Windstorm Underwriting Association if such policy had been issued immediately prior to October 1, 2006. The amount of such increase shall be determined by the Department of Insurance and the State Tax Commission and published annually. The applicable percentage shall be one hundred percent (100%) for 2007, and 2008 if no premium was paid between October 1 and December 31, 2006, and shall decrease by twenty percent (20%) for each year thereafter such that no taxpayer may claim a credit for more than five (5) years.
(2) Premiums paid after October 1, 2006, and before January 1, 2007, shall be claimed and allowed on the first income tax return that is due on or after January 1, 2007.
(3) Premiums paid on or after January 1, 2007, shall be claimed and allowed on the first income tax return that is due in the year after the payment.
(4) Any tax credit claimed under this section but not used in any taxable year may be carried forward for three (3) consecutive years from the close of the tax year in which the credit was earned. The credit that may be utilized in any one (1) tax year shall be limited to an amount not greater than the total state income tax liability of the taxpayer for that year reduced by the sum of all other income tax credits allowable to the taxpayer, except credit for tax payments made by or on behalf of the taxpayer.
SECTION 12. There shall be allowed as a credit against the tax imposed under Sections 27-15-103 through 27-15-129, in an amount equal to ten percent (10%) of the gross premium receipts on new policies written, or covering risk, within the coastal counties of this state on or after January 1, 2007, for any domestic or foreign insurance company which writes policies within the coastal counties; provided, however, the credit allowed hereunder shall not exceed One Hundred Thousand Dollars ($100,000.00) during any calendar year. The Mississippi State Tax Commission and the Mississippi Department of Insurance shall determine what constitutes new policies written, or covering risk within the coastal counties of this state. Any tax credit claimed under this section but not used in any taxable year may be carried forward for the three (3) succeeding tax years.
SECTION 13. Section 11 of this act shall take effect and be in force from and after January 1, 2007. The remainder of this act shall take effect and be in force from and after its passage.