House Bill 35

AN ACT TO PROVIDE THAT THE DEPARTMENT OF REVENUE SHALL ANNUALLY DEPOSIT INTO A SPECIAL FUND CREATED IN THIS ACT AN AMOUNT EQUAL TO A PORTION OF THE INSURANCE PREMIUM TAX REVENUE COLLECTED FROM THE INSURANCE PREMIUM TAX LEVIED ON THE GROSS PREMIUMS ON HOMEOWNERS INSURANCE POLICIES WRITTEN ON PROPERTIES IN THIS STATE; TO CREATE THE "COUNTY FIRE PROTECTION ASSISTANCE FUND" AS A SPECIAL FUND IN THE STATE TREASURY; TO PROVIDE THAT MONIES IN THE SPECIAL FUND MAY BE DISBURSED BY THE DEPARTMENT OF INSURANCE, UPON APPROPRIATION BY THE LEGISLATURE, TO PROVIDE ASSISTANCE TO COUNTIES FOR FIRE PROTECTION SERVICE PURPOSES; TO PROVIDE THAT THE DEPARTMENT OF INSURANCE SHALL DISBURSE MONIES IN THE SPECIAL FUND TO THE COUNTIES BASED ON THE LOCATION OF THE PROPERTY ON WHICH A HOMEOWNERS INSURANCE POLICY WAS WRITTEN THAT GENERATED THE INSURANCE PREMIUM TAX REVENUE; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) The Department of Revenue shall annually deposit into the special fund created in subsection (2) of this section, an amount equal to one-half (1/2) of the insurance premium tax revenue collected from the taxes levied under Section 27-15-103 et seq. on the gross premiums on homeowners insurance policies written on properties in this state.

(2) (a) (i) A special fund, to be designated as the "County Fire Protection Assistance Fund," is created within the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. The fund shall consist of monies deposited therein under this section and monies from any other source designated for deposit into the 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 into such fund.

(ii) Monies deposited into the fund may be disbursed by the Department of Insurance, upon appropriation by the Legislature, for the purpose of providing assistance to counties for the purposes described in paragraph (b) of this subsection (2). The Department of Insurance shall distribute monies in the fund to counties based on the location of the property on which a homeowners insurance policy was written that generated the insurance premium tax revenue and an amount equal to one-half (1/2) of such insurance premium tax revenue shall be disbursed to the county in which such property is located.

(b) Monies disbursed to a county under this section may be used by the county for any of the following fire protection service purposes:

(i) Training expenses;

(ii) Purchase of equipment, purchase of fire trucks, repair and refurbishing of fire trucks and firefighting equipment, and capital construction anywhere in the county or pledged as security for a period of not more than ten (10) years for such purchases, repairs and/or refurbishment;

(iii) Purchase of insurance on county-owned fire fighting equipment and facilities;

(iv) Fire protection service contracts, including, but not limited to, contracts with municipalities, legal fire protection districts, and nonprofit corporations providing or coordinating fire service in or out of the county; and

(v) Other purposes related to providing fire protection service in the county.

SECTION 2. This act shall take effect and be in force from and after July 1, 2019.