Senate Bill 2921

AN ACT TO CREATE AND PLACE UNDER THE MANAGEMENT OF THE DEPARTMENT OF INSURANCE THE "INJURED VOLUNTEER FIREFIGHTERS FUND"; TO PROVIDE CERTAIN MEDICAL ASSISTANCE AND CERTAIN OTHER BENEFITS TO VOLUNTEER FIREFIGHTERS WHO ARE INJURED IN THE PERFORMANCE OF THEIR DUTIES; TO ESTABLISH THE INJURED VOLUNTEER FIREFIGHTERS FUND ADVISORY BOARD; TO PROVIDE THAT COUNTIES AND MUNICIPALITIES SHALL PAY A PORTION OF THE BENEFIT; TO AMEND SECTIONS 83-1-37 AND 83-1-39, MISSISSIPPI CODE OF 1972, TO DIVERT A CERTAIN AMOUNT OF THE INSURANCE REBATE MONIES, FOR FISCAL YEAR 2020, TO THE INJURED VOLUNTEER FIREFIGHTERS FUND; TO BRING FORWARD SECTION 45-11-5, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR A PREMIUM TAX ON FIRE INSURANCE POLICIES; TO BRING FORWARD SECTION 83-13-23, MISSISSIPPI CODE OF 1972, WHICH REQUIRES INSURANCE COMPANIES SELLING FIRE INSURANCE POLICIES TO PAY CERTAIN VOLUNTEER FIRE DEPARTMENTS FOR PROTECTING PROPERTY; AND FOR RELATED PURPOSES.

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

SECTION 1. There is created and placed under the management of the Department of Insurance the "Injured Volunteer Firefighters Fund" for the purpose of providing medical assistance and other benefits under the provisions of this act for the volunteer firefighters who are injured in the performance of their duties as firefighters.

SECTION 2. The following words and phrases shall have the meanings ascribed herein unless the context clearly indicates otherwise:

(a) "Board" means the Injured Volunteer Firefighters Fund Advisory Board.

(b) "Fire department" means any organized fire department that provides regular fire protection within its service area, volunteer or paid, where the firefighter who is injured provides service on a volunteer basis.

SECTION 3. The general administration and responsibility for the proper operation of the fund and for making effective the provisions hereof are vested in the Department of Insurance. The Injured Volunteer Firefighters Fund Advisory Board shall serve in an advisory capacity to the Department of Insurance on the administration of the fund.

SECTION 4. (1) There is established an Injured Volunteer Firefighters Fund Advisory Board consisting of five (5) members: the State Fire Marshal, two (2) volunteer firefighters to be elected by the members of the Volunteer Firefighters section of the Mississippi Firefighter's Association and two (2) to be appointed by the Governor. The term shall be four (4) years.

(2) The board, in conjunction with the Department of Insurance, shall establish such rules, regulations or guidelines as it deems necessary for the administration of the fund and the payment of benefits.

SECTION 5. The Workers' Compensation Commission shall assist the board, upon request of the board, in determining questions relating to the payment of benefits.

SECTION 6. Monies designated for the Injured Volunteer Firefighters Fund shall be in accordance with Sections 83-1-37 and 83-1-39. Any other contributions, gifts, donations or grants shall be deposited into the fund upon receipt, and benefits authorized by the Department of Insurance and the Injured Volunteer Firefighters Fund Advisory Board shall be paid from the fund.

SECTION 7. In payment of benefits, seventy-five percent (75%) of any benefit paid shall be from the Injured Volunteer Firefighters Fund and twenty-five percent (25%) shall be from the county or the municipality in which the fire department is located. The county or municipality may use any funds available, including insurance rebate monies, for its twenty-five percent (25%) portion of the benefit.

SECTION 8. The maximum amount of benefits, either medical, wage-loss or otherwise, allowed to be paid out of the fund to any individual volunteer firefighter is One Hundred Dollars ($100.00) per week not to exceed one (1) year. The total maximum amount allowed to be paid to any individual volunteer firefighter from both the fund and the county or municipality is One Hundred Twenty-five Dollars ($125.00) per week not to exceed one (1) year.

SECTION 9. The board shall keep a record of all its proceedings under this act. All books, accounts and records shall be kept in the Office of the Commissioner of Insurance.

SECTION 10. Section 83-1-37, Mississippi Code of 1972, is amended as follows:

83-1-37. (1) The Department of Revenue shall pay for credit to a fund known as the "Municipal Fire Protection Fund," the sum of Four Million Eight Hundred Fifty Thousand Dollars ($4,850,000.00) annually out of the insurance premium tax collected annually from the taxes levied on the gross premiums on fire insurance policies written on properties in this state, under Sections 27-15-103 through 27-15-127. The State Treasurer shall credit this amount to the Municipal Fire Protection Fund. This fund shall be set aside and earmarked for payment to municipalities in this state, as hereinafter provided. However, in fiscal year 2020, the Department of Revenue is directed to pay over to the State Treasurer for credit to the Municipal Fire Protection Fund the sum of Four Million Dollars ($4,000,000.00) from the insurance rebate monies and to pay over to the State Treasurer for credit to a fund to be known as the "Injured Volunteer Firefighters Fund" the sum of One Hundred Thousand Dollars ($100,000.00) from the insurance rebate monies.

(2) Using 1990 as a base year, the Department of Revenue shall pay over annually to the State Treasurer, for credit to the "Municipal Fire Protection Fund," an amount representing one-half of ten percent (1/2 of 10%) of any growth after 1990 of the insurance premium tax collected annually from the taxes levied on the gross premium on fire insurance policies written on properties in this state, under Sections 27-15-103 through 27-15-127.

(3) The fund hereby created and denominated "Municipal Fire Protection Fund" shall be apportioned and paid over by the Department of Insurance to the incorporated municipalities certified as eligible to participate in the fund by the Commissioner of Insurance, and shall be distributed once each year on a population basis, to be determined by the most recent federal census, except as provided in subsection (4) of this section. Municipalities receiving these funds shall earmark such monies for fire protection services.

(4) Two Hundred Fifty Thousand Dollars ($250,000.00) from the Municipal Fire Protection Fund shall be annually designated from that fund for the training of municipal personnel as needed for the adoption of and compliance with the minimum building codes as established and promulgated by the Mississippi Building Codes Council or for windstorm mitigation programs as approved by the Commissioner of Insurance. These monies shall be apportioned and distributed amongst qualifying municipalities. Any monies that are designated under this subsection (4) that are not expended annually shall be returned to the Municipal Fire Protection Fund to be distributed for fire protection services.

(5) The amount paid under subsections (1) and (2) of this section to a municipality shall be used and expended in accordance with the guidelines established by the Commissioner of Insurance authorized by Section 45-11-7, and for the training of municipal personnel as needed for the adoption of and compliance with the minimum building codes as established and promulgated by the Mississippi Building Codes Council, or for windstorm mitigation programs as approved by the Commissioner of Insurance.

(6) Each municipality shall levy a tax of not less than one-fourth (1/4) mill on all property of the municipality or appropriate the avails of not less than one-fourth (1/4) mill from the municipality's general fund for fire protection purposes. Municipalities may allow such millage to be collected by the county. Each municipality shall annually provide the Commissioner of Insurance and the State Fire Coordinator on a form provided by the State Fire Coordinator a report stating whether the municipality is levied the one-fourth (1/4) mill hereby required or in lieu thereof is allowing such millage to be collected by the county.

SECTION 11. Section 83-1-39, Mississippi Code of 1972, is amended as follows:

83-1-39. (1) The Department of Revenue shall pay over to the State Treasurer, to be credited to a fund entitled "County Volunteer Fire Department Fund," the sum of Four Million Eight Hundred Fifty Thousand Dollars ($4,850,000.00) annually out of the insurance premium tax in addition to the amount collected by it under the provisions of Section 27-15-103 et seq. Such funds, hereinafter referred to as insurance rebate monies, are hereby earmarked for payment to the various counties of the state and shall be paid over to the counties by the Department of Insurance on the basis of the population of each county as it compares to the population of participating counties, not counting residents of any municipality. Such insurance rebate monies shall only be distributed to those counties which are in compliance with subsections (5) and (6) of this section. Of these monies, Two Hundred Fifty Thousand Dollars ($250,000.00) shall be designated for the purposes prescribed in subsection (3)(f) of this section. In fiscal year 2020, the Department of Revenue is directed to pay over to the State Treasurer for credit to the Municipal Fire Protection Fund the sum of Four Million Dollars ($4,000,000.00) from the insurance rebate monies and to pay over to the State Treasurer for credit to a fund to be known as the "Injured Volunteer Firefighters Fund" the sum of One Hundred Thousand Dollars ($100,000.00) from the insurance rebate monies.

(2) Using 1990 as a base year, the Department of Revenue shall pay to the State Treasurer, to be credited to the "County Volunteer Fire Department Fund," an amount representing one-half of ten percent (1/2 of 10%) of any growth after 1990 of the insurance premium tax collected annually from the taxes levied on the gross premium on fire insurance policies written on properties in this state, in addition to the amount collected by it under Section 27-15-103 et seq.

(3) Insurance rebate monies shall be expended by the board of supervisors for fire protection purposes of each county for the following categories:

(a) For training expenses;

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

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

(e) Appropriations to legal fire protection districts located in counties subject to all restrictions applicable to the use of insurance rebate monies; * * *or

(f) Training of any county personnel as needed for the adoption of and compliance with the codes established and promulgated by the Mississippi Building Codes Council or for windstorm mitigation programs as approved by the Commissioner of Insurance. These monies shall be apportioned and distributed amongst qualifying counties. Any monies designated under this paragraph (f) that are not expended annually shall be returned to the County Volunteer Fire Protection Fund to be distributed for fire protection services * * *.; or

(g) Any county-owned equipment or other property, at the option of the board of supervisors, may be used by any legally created fire department.

(4) Insurance rebate monies not expended in a given fiscal year for fire protection purposes shall be placed in a special fund with a written plan approved by the Commissioner of Insurance for disposition and expenditure of such monies. After the contracts for fire protection services have been approved and accepted by the board of supervisors, the monies shall be released to be expended in such manner as provided by this section.

(5) No county shall receive payments pursuant to this section after July 1, 1988, unless such county:

(a) Designates a county fire service coordinator who is responsible for seeing that standard guidelines established by the Commissioner of Insurance pursuant to Section 45-11-7(9), Mississippi Code of 1972, are followed. The county fire coordinator must demonstrate that he possesses fire-related knowledge and experience;

(b) Designates one (1) member of the sheriff's department to be the county fire investigator and, from and after July 1, 2008, requires the designated member of the sheriff's department to attend the State Fire Academy to be trained in arson investigation; however, in the event of a loss of the county fire investigator due to illness, death, resignation, discharge or other legitimate cause, notice shall be immediately given to the Commissioner of Insurance and the county may continue to receive payments on an interim basis for a period not to exceed one (1) year;

(d) Counties shall levy a tax of not less than one-fourth (1/4) mill on all property of the county or appropriate avails of not less than one-fourth (1/4) mill from the county's general fund for fire protection purposes. Municipalities making a written declaration to the county that they fund and provide their own fire services shall be exempted from this levy. This levy shall be used for fire protection purposes which include, but are not limited to, contracting with any provider of fire protection services.

(6) (a) No funds shall be paid by the county to any provider of fire protection services except in accordance with a written contract entered into in accordance with guidelines established by the Commissioner of Insurance and properly approved by the board of supervisors and Commissioner of Insurance. No county shall distribute funds to any fire service provider which has not met the reporting requirements required by the Commissioner of Insurance. At such time that a fire protection services provider, particularly a county volunteer fire department, a municipality or a fire protection district, has fulfilled the obligations of the written contract and has met the reporting requirements provided for in this subsection and the board of supervisors has received the insurance rebate monies, the board of supervisors shall disburse the appropriate amount to the fire protection services provider within a reasonable time, not to exceed six (6) weeks, from the time such requirements are met. Insurance rebate monies used for the purposes of contracting shall be expended by the fire service provider for capital construction, training expenses, purchase of firefighting equipment, including payments on any loans made for the purpose of purchasing firefighting equipment, and purchase of insurance for any fire equipment owned or operated by the provider.

(b) If the Commissioner of Insurance believes that a county is using the funds in a manner not consistent with subsections (5) and (6) of this section, the commissioner shall request the State Auditor to conduct an investigation pursuant to Section 7-7-211(e).

(7) The board of supervisors of any county may contribute funds directly to any provider of fire protection services serving such county. Such contributions must be used for fire protection purposes as may be reasonably established by the Commissioner of Insurance.

(8) Any municipal, county or local water association or other utility district supplying water may, upon adoption of a resolution authorizing such action, contribute free of charge to a volunteer fire department or fire protection district serving such local government, political subdivision or utility district such water as is necessary for firefighting or training activities of such volunteer fire department or fire protection district.

(9) The board of supervisors of any county may, in its discretion, grade, gravel, shell and/or maintain real property of a county volunteer fire department, including roads or driveways thereof, as necessary for the effective and safe operation of such county volunteer fire department. Any action taken by the board of supervisors under the authority of this subsection shall be spread upon the minutes of the board of supervisors when the work is authorized.

(10) For the purpose of this section, "fire protection district" means a district organized under Section 19-5-151 et seq., or pursuant to any other code section or by any local and private act authorizing the establishment of a fire protection district, unless the context clearly requires otherwise.

SECTION 12. Section 83-13-23, Mississippi Code of 1972, is brought forward as follows:

83-13-23. Any insurance company shall pay to the responsible volunteer fire department a minimum of One Hundred Dollars ($100.00) for each initial response to save from destruction by fire any structures which are located in areas rated as Class 9 or 10 and which are insured by that insurance company.

SECTION 13. Section 45-11-5, Mississippi Code of 1972, is brought forward and amended as follows:

45-11-5. (1) Any expense, including office supplies, counsel fees, expenses of deputy, detective and officers, incurred by the Commissioner of Insurance in the performance of the duties imposed upon him by Sections 45-11-1 and 45-11-3, and the operation of the State Fire Academy, as provided in Section 45-11-7, shall be defrayed by all insurance companies, including stock, mutuals and reciprocals writing fire insurance, including the fire insurance components of automobile insurance, dwelling multiple peril insurance, farm multiple peril insurance and commercial multiple peril insurance, doing business in this state; and a tax of one-half of one percent (1/2 of 1%) of the gross premium receipts of these fire insurance policies is hereby levied for this purpose to be collected by the * * * ~~State Tax Commission~~ Department of Revenue in the same manner as the general tax on premiums is collected as provided in Section 25-15-107. In the case of indivisible multiple peril insurance policies when the fire portion of the policy is not specified, a tax of one-half of one percent (1/2 of 1%) is hereby levied on forty-five percent (45%) of the gross premium receipts of these policies.

(2) There is created a separate account known as the "State Fire Academy Fund" for support of the State Fire Academy. Not later than the fifteenth of the month succeeding the month in which taxes under subsection (1) are collected, the State Treasurer shall transfer into this account all taxes collected under subsection (1) for the operation of the State Fire Academy. The annual expenditure for the operation of the academy shall not exceed the amount in the account; however, any unexpended funds remaining in the account at the close of the fiscal year may be carried over for use in the ensuing years.

(3) (a) A tax of one-half of one percent (1/2 of 1%) is hereby levied on the gross premium receipts of all insurance policies taxed in subsection (1).

(b) Not later than the fifteenth day of each month, the State Treasurer shall disburse the revenue from the tax levied in this subsection as follows:

(i) Fifty percent (50%) shall be transferred into the Municipal Fire Protection Fund in Section 83-1-37; and

(ii) Fifty percent (50%) shall be transferred to the County Volunteer Fire Department Fund in Section 83-1-39.

(4) All taxes shall be deposited into the Treasury as provided in Section 7-7-21. The * * * ~~tax commission~~ Department of Revenue shall keep separate accounts of all taxes collected under this section and shall include these accounts in its annual report.

(5) From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law.

(6) From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

SECTION 14. This act shall take effect and be in force from and after July 1, 2019.