House Bill 1159

AN ACT TO AMEND SECTIONS 19-7-7, 21-37-45 AND 37-7-303, MISSISSIPPI CODE OF 1972, TO ALLOW COUNTIES, MUNICIPALITIES, SCHOOL DISTRICTS AND POLITICAL SUBDIVISIONS TO POOL THEIR RISKS AND NEGOTIATE FOR THE PURCHASE OF PROPERTY INSURANCE OR THE ESTABLISHMENT OF A SELF-INSURANCE FUND OR SELF-INSURANCE RESERVES OR ANY COMBINATION THEREOF; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 19-7-7, Mississippi Code of 1972, is amended as follows:

19-7-7. The board of supervisors may have the courthouse, jail and other buildings of the county, the furniture thereof, the books of the county, and the personal property of the county, insured against loss by fire, cyclone and tornado, and other hazards. The board of supervisors may carry steam boiler, plate glass and other miscellaneous casualty insurance against loss of county property, as in the discretion of the board of supervisors may seem proper. The cost thereof shall be paid out of the county treasury.

The boards of supervisors of two (2) or more counties may pool their risks under this section and may provide for the purchase of one or more policies of property insurance, or the establishment of a self-insurance fund or self-insurance reserves, or any combination thereof. The cost of participation shall be paid out of the general fund of the county. The administration and service of any such self-insurance program shall be contracted to a third party and approved by the Commissioner of Insurance.

The governing board of any county, municipality, municipal separate school district, other school district or community/junior college district, and the governing board or head of any other political subdivision or entity may negotiate for, secure and pool their risks under this section and may provide for the purchase of any one or more policies of property insurance, or the establishment of a self-insurance fund or self-insurance reserves, or any combination thereof. The governing board of any political subdivision or other entity set forth in this section is authorized to expend funds from any available source for the purpose of obtaining and maintaining that property insurance. The administration and service of any such self-insurance program shall be contracted to a third party and approved by the Commissioner of Insurance.

SECTION 2. Section 21-37-45, Mississippi Code of 1972, is amended as follows:

21-37-45. The governing authorities of municipalities shall have the power and authority to insure municipal property, including buildings, furniture, books and records, and all other property, against loss by fire and tornado, and to carry such amount of employer's liability, steam boilers, plate glass and other miscellaneous casualty insurance as in the discretion of the governing authorities of the municipality may be deemed proper, and to pay for the premiums thereof out of the municipal treasury.

SECTION 3. Section 37-7-303, Mississippi Code of 1972, is amended as follows:

37-7-303. (1) The school board of any school district may insure motor vehicles for any hazard that the board may choose, and shall insure the school buildings, equipment and other school property of the district against any and all hazards that the board may deem necessary to provide insurance against. In addition, the local school board of any school district shall purchase and maintain business property insurance and business personal property insurance on all school district-owned buildings and/or contents as required by federal law and regulations of the Federal Emergency Management Agency (FEMA) as is necessary for receiving public assistance or reimbursement for repair, reconstruction, replacement or other damage to those buildings and/or contents caused by the Hurricane Katrina Disaster of 2005 or subsequent disasters. The school district is authorized to expend funds from any available source for the purpose of obtaining and maintaining that property insurance. The school district is authorized to enter into agreements with the Department of Finance and Administration, other local school districts, community/junior college districts, state institutions of higher learning, community hospitals and/or other state agencies to pool their liabilities to participate in a group business property and/or business personal property insurance program, subject to uniform rules and regulations as may be adopted by the Department of Finance and Administration. Such school board shall be authorized to contract for such insurance for a term of not exceeding five (5) years and to obligate the district for the payment of the premiums thereon. When necessary, the school board is authorized and empowered, in its discretion, to borrow money payable in annual installments for a period of not exceeding five (5) years at a rate of interest not exceeding eight percent (8%) per annum to provide funds to pay such insurance premiums. The money so borrowed and the interest thereon shall be payable from any school funds of the district other than minimum education program funds. The school boards of school districts are further authorized and empowered, in all cases where same may be necessary, to bring and maintain suits and other actions in any court of competent jurisdiction for the purpose of collecting the proceeds of insurance policies issued upon the property of such school district.

(2) Two (2) or more school districts, together with other educational entities or agencies, may agree to pool their liabilities to participate in a group workers' compensation program. The governing authorities of any school board or other educational entity or agency may authorize the organization and operation of, or the participation in such a group self-insurance program with other school boards and educational entities or agencies, subject to the requirements of Section 71-3-5. The Workers' Compensation Commission shall approve such group self-insurance programs subject to uniform rules and regulations as may be adopted by the commission applicable to all groups.

(3) The governing board of any county, municipality, municipal separate school district, other school district or community/junior college district, and the governing board or head of any other political subdivision or entity may negotiate for, secure and pool their risks under this section and may provide for the purchase of any one or more policies of property insurance, or the establishment of a self-insurance fund or self-insurance reserves, or any combination thereof. The governing board of any political subdivision or other entity set forth in this section is authorized to expend funds from any available source for the purpose of obtaining and maintaining that property insurance. The administration and service of any such self-insurance program shall be contracted to a third party and approved by the Commissioner of Insurance.

SECTION 4. This act shall take effect and be in force from and after July 1, 2024.