MISSISSIPPI LEGISLATURE

2024 Regular Session

To: Appropriations A

By: Representatives Read, Boyd (19th)

House Bill 1705

(As Sent to Governor)

AN ACT TO DIRECT THE STATE TREASURER TO TRANSFER CERTAIN AMOUNTS FROM THE CAPITAL EXPENSE FUND TO THE ANIMAL DISEASE RESPONSE FUND, THE OIL AND GAS EMERGENCY PLUGGING FUND, THE DISASTER ASSISTANCE TRUST FUND, THE MISSISSIPPI DAM SAFETY FUND AND THE HISTORIC SITE PRESERVATION FUND; TO CREATE NEW SPECIAL FUNDS IN THE STATE TREASURY TO BE KNOWN AS THE OPIOID SETTLEMENT FUND, THE FOREST IMPROVEMENT REVOLVING FUND, THE VOLUNTEER FIRE DEPARTMENT EQUIPMENT CONVERSION REVOLVING FUND, THE CAMDEN STATE FOREST REVOLVING FUND, THE ARTS COMMISSION CHALLENGE INITIATIVE FUND, AND THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM BUILDING REPAIR AND MAINTENANCE FUND; TO AMEND SECTION 83-1-191, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT GRANTS MADE BY THE DEPARTMENT OF INSURANCE UNDER THE COMPREHENSIVE HURRICANE DAMAGE MITIGATION PROGRAM SHALL NOT EXCEED $10,000 PER RECIPIENT; TO CREATE A SPECIAL FUND IN THE STATE TREASURY TO BE KNOWN AS THE COMPREHENSIVE HURRICANE DAMAGE MITIGATION PROGRAM FUND; TO DIRECT THE DEPARTMENT OF INSURANCE TO ISSUE A REQUEST FOR PROPOSALS TO CONTRACT WITH A THIRD PARTY TO ADMINISTER THE PROGRAM; TO PROVIDE THAT THE CONTRACT SHALL BE FUNDED FROM MONIES IN THE COMPREHENSIVE HURRICANE DAMAGE MITIGATION PROGRAM FUND, AND THAT AMOUNT SHALL NOT EXCEED ONE PERCENT OF THE FUNDS APPROPRIATED TO THE DEPARTMENT FOR THE PROGRAM; TO DIRECT THE MISSISSIPPI SURPLUS LINES ASSOCIATION TO TRANSFER A CERTAIN SUM TO THE STATE TREASURER TO BE DEPOSITED INTO THE COMPREHENSIVE HURRICANE DAMAGE MITIGATION PROGRAM FUND; TO DIRECT THE STATE TREASURER TO TRANSFER A CERTAIN SUM FROM THE REAL ESTATE COMMISSION FUND TO THE HOME INSPECTOR LICENSE FUND; TO AMEND SECTION 1 OF CHAPTER 7, LAWS OF 2023, TO REVISE THE FISCAL YEAR 2024 APPROPRIATION TO THE STATE BOARD OF BARBER EXAMINERS TO APPROPRIATE FUNDS TO A SUCCESSOR BOARD OF THE STATE BOARD OF BARBER EXAMINERS; TO AMEND SECTION 1 OF CHAPTER 8, LAWS OF 2023, TO REVISE THE FISCAL YEAR 2024 APPROPRIATION TO THE STATE BOARD OF COSMETOLOGY TO APPROPRIATE FUNDS TO A SUCCESSOR BOARD OF THE STATE BOARD OF COSMETOLOGY; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Upon the effective date of this act, the State Treasurer, in conjunction with the State Fiscal Officer, shall transfer the amounts listed below from the Capital Expense Fund (Fund No. 6499C00000) to each of the following named funds:

FUND                         FUND NUMBER                 AMOUNT

Animal Disease Response

   Fund created in Section

   69-15-21, Mississippi

   Code of 1972               3342700000       $      92,000.00

Oil and Gas Emergency

   Plugging Fund created in

   Section 53-1-77,

   Mississippi Code of 1972   3349300000        $     800,000.00

Disaster Assistance Trust

   Fund created in

   Section 33-15-307,

   Mississippi Code of 1972   3372500000        $   1,575,864.00

Mississippi Dam Safety Fund

   created in Section 19,

   Chapter 492, Laws of

   2020                       6614700000        $   2,000.000.00

Historic Site Preservation

   Fund created in Section

   39-5-22, Mississippi

   Code of 1972              3348400000        $     500,000.00

TOTAL                                          $   4,967,864.00

     SECTION 2.  (1)  There is created in the State Treasury a special fund to be known as the Opioid Settlement Fund.  The fund shall consist of monies received by the Attorney General on behalf of the State of Mississippi from settlements of opioid litigation with distributors Cardinal Health, McKesson and AmerisourceBergen, manufacturers Janssen Pharmaceuticals/Johnson & Johnson, Allergan and Teva, and pharmacy chains CVS, Walgreens and Walmart, which are deposited into the fund by the Attorney General.

     (2)  Monies in the fund shall be expended upon appropriation by the Legislature in accordance with the requirements of the opioid litigation settlements described in subsection (1) of this section.

     (3)  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.  

     SECTION 3.  (1)  There is created in the State Treasury a special fund to be known as the Forest Improvement Revolving Fund.  Money in the revolving fund shall be used by the State Forestry Commission, upon appropriation by the Legislature, to assist in the reforestation and growth improvement of the forests, woodlands, and publicly owned lands of the state, including sixteenth section lands, Camp Shelby, Columbia Training School and colleges and universities.

     (2)  Landowners who contract with the commission for such work shall pay to the commission its actual cost for conducting such work.  Money received for this work by the commission shall be paid into the State Treasury for deposit into the revolving fund.

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

     SECTION 4.  (1)  There is created in the State Treasury a special fund to be known as the Volunteer Fire Department Equipment Conversion Revolving Fund.  The revolving fund shall consist of monies received from charges for work and services performed for volunteer fire departments by the commission.

     (2)  Monies in the revolving fund shall be used by the State Forestry Commission, upon appropriation by the Legislature, to assist in the conversion of vehicles acquired by the commission through the Federal Excess Personal Property Program or by volunteer fire departments through other means to adapt them for use in the suppression of wildland fires.  This assistance shall be in the form of fabrication of water tanks or other accessories necessary for the operation of fire suppression units, installation of piping and valves, painting or other similar or associated component work necessary to place fire suppression equipment into service; such assistance is not for general vehicle maintenance or repair.

     (2)  The State Treasurer shall make disbursements from the revolving fund for payment of materials, supplies and labor upon requisition of the commission and upon the issuance of warrants therefor by the Department of Finance and Administration.

     (3)  The amount of monies deposited into the revolving fund from such charges shall not exceed Fifty Thousand Dollars ($50,000.00).  Funds in excess of Fifty Thousand Dollars ($50,000.00) from such charges shall be deposited into the Forestry Commission's regular appropriated special funds.

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

     SECTION 5.  (1)  There is created in the State Treasury a special fund to be known as the Camden State Forest Revolving Fund.  The revolving fund shall be funded by monies received from timber sales, leases, and any other source, and monies collected from these income sources shall be deposited into the revolving fund.  Monies in the fund shall be used by the State Forestry Commission, upon appropriation of by the Legislature, to direct forest management activities on the Camden State Forest in Madison County, Mississippi.  The forest management activities will include, but not be limited to, maintenance of property, timber sale activities and regeneration work.

     (2)  The State Treasurer shall make disbursements from the revolving fund for payments of materials, supplies and labor upon requisition of the commission and upon the issuance of warrants therefor by the Department of Finance and Administration.

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

     SECTION 6.  (1)  There is created in the State Treasury a special fund to be known as the Arts Commission Challenge Initiative Fund.  The fund shall consist of legislative appropriations, federal funds, contributions, donations, gifts and monies from any other source that are made available for deposit into the fund.

     (2)  Monies in the fund shall be used by the Arts Commission, upon appropriation by the Legislature, to award grants to arts organizations.  Recipients of grants from the fund will be required to provide matching funds for the grants in an amount of not less than two (2) times the amount of the grant.

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

     SECTION 7.  (1)  There is created in the State Treasury a special fund to be known as the Public Employees' Retirement System Building Repair and Maintenance Fund.  The fund shall consist of all funds collected as rental income from the building owned by the system located at 301 North President Street, Jackson, Mississippi.

     (2)  Monies in the fund shall be used by the Board of Trustees of the Public Employees' Retirement System, upon appropriation of the Legislature, for the repair and maintenance of the Timothy Alan (Tim) Ford Building.  At the end of each fiscal year, monies remaining in the fund shall be transferred to the Administrative Expense Account of the system.

     SECTION 8.  Section 83-1-191, Mississippi Code of 1972, is amended as follows:

     83-1-191.  (1)  There is established within the Department of Insurance a Comprehensive Hurricane Damage Mitigation Program.  This section does not create an entitlement for property owners or obligate the state in any way to fund the inspection or retrofitting of residential property or commercial property in this state.  Implementation of this program is subject to the availability of funds that may be appropriated by the Legislature for this purpose.  The program may develop and implement a comprehensive and coordinated approach for hurricane damage mitigation that may include the following:

          (a)  Cost-benefit study on wind hazard mitigation construction measures.  The performance of a cost-benefit study to establish the most appropriate wind hazard mitigation construction measures for both new construction and the retrofitting of existing construction for both residential and commercial facilities within the wind-borne debris regions of Mississippi as defined by the International Building Code.  The recommended wind construction techniques shall be based on both the newly adopted Mississippi building code sections for wind load design and the wind-borne debris region.  The list of construction measures to be considered for evaluation in the cost-benefit study shall be based on scientifically established and sound, but common, construction techniques that go above and beyond the basic recommendations in the adopted building codes.  This allows residents to utilize multiple options that will further reduce risk and loss and still be awarded for their endeavors with appropriate wind insurance discounts.  It is recommended that existing accepted scientific studies that validate the wind hazard construction techniques benefits and effects be taken into consideration when establishing the list of construction techniques that homeowners and business owners can employ.  This will ensure that only established construction measures that have been studied and modeled as successful mitigation measures will be considered to reduce the chance of including risky or unsound data that will cost both the property owner and state unnecessary losses.  The cost-benefit study shall be based on actual construction cost data collected for several types of residential construction and commercial construction materials, building techniques and designs that are common to the region.  The study shall provide as much information as possible that will enhance the data and options provided to the public, so that homeowners and business owners can make informed and educated decisions as to their level of involvement.  Based on the construction data, modeling shall be performed on a variety of residential and commercial designs, so that a broad enough representative spectrum of data can be obtained.  The data from the study will be utilized in a report to establish tables reflecting actuarially appropriate levels of wind insurance discounts (in percentages) for each mitigation construction technique/combination of techniques.  This report will be utilized as a guide for the Department of Insurance and the insurance industry for developing actuarially appropriate discounts, credits or other rate differentials, or appropriate reductions in deductibles, for properties on which fixtures or construction techniques demonstrated to reduce the amount of loss in a windstorm have been installed or implemented.  Additional data that will enhance the program, such as studies to reflect property value increases for retrofitting or building to the established wind hazard mitigation construction techniques and cost comparison data collected to establish the value of this program against the investment required to include the mitigation measures, also may be provided.

          (b)  Wind certification and hurricane mitigation inspections.

              (i)  Home-retrofit inspections of site-built, residential property, including single-family, two-family, three-family or four-family residential units, and a set of representative commercial facilities may be offered to determine what mitigation measures are needed and what improvements to existing residential properties are needed to reduce the property's vulnerability to hurricane damage.  A state program may be established within the Department of Insurance to provide homeowners and business owners wind certification and hurricane mitigation inspections.  The inspections provided to homeowners and business owners, at a minimum, must include:

                   1.  A home inspection and report that summarizes the results and identifies corrective actions a homeowner may take to mitigate hurricane damage.

                   2.  A range of cost estimates regarding the mitigation features.

                   3.  Insurer-specific information regarding premium discounts correlated to recommended mitigation features identified by the inspection.

                   4.  A hurricane resistance rating scale specifying the home's current as well as projected wind resistance capabilities.

     This data may be provided by trained and certified inspectors in standardized reporting formats and forms to ensure all data collected during inspections is equivalent in style and content that allows construction data, estimates and discount information to be easily assimilated into a database.  Data pertaining to the number of inspections and inspection reports may be stored in a state database for evaluation of the program's success and review of state goals in reducing wind hazard loss in the state.

              (ii)  To qualify for selection by the department as a provider of wind certification and hurricane mitigation inspections services, the entity shall, at a minimum, and on a form and in the manner prescribed by the commissioner:

                   1.  Use wind certification and hurricane mitigation inspectors who:

                        a.  Have prior experience in residential and/or commercial construction or inspection and have received specialized training in hurricane mitigation procedures through the state certified program.  In order to qualify for training in the inspection process, the individual should be either a licensed building code official, a licensed contractor or inspector in the State of Mississippi, or a civil engineer.

                        b.  Have undergone drug testing and background checks.

                        c.  Have been certified through a state mandated training program, in a manner satisfactory to the department, to conduct the inspections.

                        d.  Have not been convicted of a felony crime of violence or of a sexual offense; have not received a first-time offender pardon or nonadjudication order for a felony crime of violence or of a sexual offense; or have not entered a plea of guilty or nolo contendere to a felony charge of violence or of a sexual offense.

                        e.  Submit a statement authorizing the Commissioner of Insurance to order fingerprint analysis or any other analysis or documents deemed necessary by the commissioner for the purpose of verifying the criminal history of the individual.  The commissioner shall have the authority to conduct criminal history verification on a local, state or national level, and shall have the authority to require the individual to pay for the costs of such criminal history verification.

                   2.  Provide a quality assurance program including a reinspection component.

                   3.  Have data collection equipment and computer systems, so that data can be submitted electronically to the state's database of inspection reports, insurance certificates, and other industry information related to this program.  It is mandatory that all inspectors provide original copies to the property owner of any inspection reports, estimates, etc., pertaining to the inspection and keep a copy of all inspection materials on hand for state audits.

          (c)  Financial grants to retrofit properties.  Financial grants may be used to encourage single-family, site-built, owner-occupied, residential property owners or commercial property owners to retrofit their properties to make them less vulnerable to hurricane damage.  No financial grant made under this section shall exceed Ten Thousand Dollars ($10,000.00) per recipient.

          (d)  Education and consumer awareness.  Multimedia public education, awareness and advertising efforts designed to specifically address mitigation techniques may be employed, as well as a component to support ongoing consumer resources and referral services.  In addition, all insurance companies shall provide notification to their clients regarding the availability of this program, participation details, and directions to the state website promoting the program, along with appropriate contact phone numbers to the state agency administrating the program.  The notification to the clients must be sent by the insurance company within thirty (30) days after filing their insurance discount schedules with the Department of Insurance.

          (e)  Advisory council.  There is created an advisory council to provide advice and assistance to the program administrator with regard to his or her administration of the program.  The advisory council shall consist of:

              (i)  An agent, selected by the Independent Insurance Agents of Mississippi.

              (ii)  Two (2) representatives of residential property insurers, selected by the Department of Insurance.

              (iii)  One (1) representative of homebuilders, selected by the Home Builders Association of Mississippi.

              (iv)  The Chairman of the House Insurance Committee, or his designee.

              (v)  The Chairman of the Senate Insurance Committee, or his designee.

              (vi)  The Executive Director of the Mississippi Windstorm Underwriting Association, or his designee.

              (vii)  The Director of the Mississippi Emergency Management Agency, or his designee.

     Members appointed under subparagraphs (i) and (ii) shall serve at the pleasure of the Department of Insurance.  All other members shall serve as voting ex officio members.  Members of the advisory council who are not legislators, state officials or state employees shall be compensated at the per diem rate authorized by Section 25-3-69, and shall be reimbursed in accordance with Section 25-3-41, for mileage and actual expenses incurred in the performance of their duties.  Legislative members of the advisory council shall be paid from the contingent expense funds of their respective houses in the same manner as provided for committee meetings when the Legislature is not in session; however, no per diem or expense for attending meetings of the advisory council may be paid while the Legislature is in session.  No advisory council member may incur per diem, travel or other expenses unless previously authorized by vote, at a meeting of the council, which action shall be recorded in the official minutes of the meeting.  Nonlegislative members shall be paid from any funds made available to the advisory council for that purpose.

          (f)  Rules and regulations.  The Department of Insurance may adopt rules and regulations governing the Comprehensive Hurricane Damage Mitigation Program.  The department also may adopt rules and regulations establishing priorities for grants provided under this section based on objective criteria that gives priority to reducing the state's probable maximum loss from hurricanes.  However, pursuant to this overall goal, the department may further establish priorities based on the insured value of the dwelling, whether or not the dwelling is insured by the Mississippi Windstorm Underwriting Association and whether or not the area under consideration has sufficient resources and the ability to perform the retrofitting required.

     (2)  Nothing in this section shall prohibit the Department of Insurance from entering into an agreement with any other appropriate state agency to assist with or perform any of the duties set forth hereunder.

     (3)  The Department of Insurance shall issue a request for proposals to contract with a third party for the administration of the Comprehensive Hurricane Damage Mitigation Program.  The contract for the third-party administrator shall be funded from monies in the Comprehensive Hurricane Damage Mitigation Program Fund created in subsection (4) of this section, and that amount shall not exceed one percent (1%) of the funds appropriated to the Department of Insurance for the program.  If the third-party administrator selected through the request for proposals is replaced or is otherwise changed, the Department of Insurance shall notify the Chairs of the House and Senate Appropriations and Insurance Committees.

     (4)  There is created a special fund in the State Treasury to be known as the Comprehensive Hurricane Damage Mitigation Program Fund.  The fund shall consist of any monies from any source that are designated or made available for deposit into the fund.  The Department of Insurance may apply for any federal or private grants to provide additional funds for the special fund.  Monies in the fund shall be expended by the Department of Insurance, upon appropriation by the Legislature, for the purposes as provided in 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 or investment earnings on amounts in the fund shall be deposited into such fund.

     ( * * *35)  This section shall stand repealed from and after July 1, 2025.

     SECTION 9.  Upon the effective date of this act, the Mississippi Surplus Lines Association shall transfer the sum of Five Million Dollars ($5,000,000.00) to the State Treasurer to be deposited into the Comprehensive Hurricane Damage Mitigation Program Fund created in Section 83-1-191(4), Mississippi Code of 1972.

     SECTION 10.  Upon the effective date of this act, the State Treasurer, in conjunction with the State Fiscal Officer, shall transfer the sum of Two Hundred Fifty-nine Thousand Dollars ($259,000.00) from the Real Estate Commission Fund (Fund No. 3383200000) to the Home Inspector License Fund created in Section 73-60-29, Mississippi Code of 1972.

     SECTION 11.  Section 1 of Chapter 7, Laws of 2023, appropriation to the Board of Barber Examiners, is amended as follows:

Section 1.  The following sum, or so much thereof as may be necessary, is appropriated out of any money in the State Treasury to the credit of the State Board of Barber Examiners or its successor board, for the purpose of defraying the expenses of the board for the fiscal year beginning July 1, 2023, and ending June 30, 2024 $     344,410.00.

     SECTION 12.  Section 1 of Chapter 8, Laws of 2023, appropriation to the Board of Cosmetology, is amended as follows:

     Section 1.  The following sum, or so much thereof as may be necessary, is appropriated out of any money in the State Treasury to the credit of the State Board of Cosmetology or its successor board, for the purpose of defraying the expenses of the board for the fiscal year beginning July 1, 2023, and ending June 30, 2024........................................ $     1,013,260.00.

     SECTION 13.  This act shall take effect and be in force from and after its passage.