Bill Text: MS HB107 | 2010 | Regular Session | Introduced
Bill Title: Group property and workers' compensation insurance program; require DFA to establish for all school districts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2010-02-02 - Died In Committee [HB107 Detail]
Download: Mississippi-2010-HB107-Introduced.html
MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Insurance
By: Representative Upshaw
House Bill 107
AN ACT TO AMEND SECTION 37-7-303, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE DEPARTMENT OF FINANCE AND ADMINISTRATION SHALL ESTABLISH AND BE THE PURCHASING AGENT FOR A GROUP BUSINESS PROPERTY INSURANCE PROGRAM AND GROUP WORKERS' COMPENSATION INSURANCE PROGRAM FOR ALL PUBLIC SCHOOL DISTRICTS IN THE STATE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. 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.
(2) From and after July 1, 2010, the Department of Finance and Administration shall establish and be the purchasing agent for a group insurance program under which the business real property and business personal property of all public school districts are insured against any and all hazards that the department may deem necessary. The department shall negotiate for the group insurance coverage and shall develop scheduled premiums to be used by the local school boards in purchasing such coverage. The school district is authorized to expend funds from any available source for the purpose of obtaining and maintaining that property insurance. In addition, the Department of Finance and Administration is authorized to enter into agreements with * * * 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 adequate education program funds.
(3) 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 such group insurance policies issued upon the property of such school district.
(4) From and after July 1, 2010, the Department of Finance and Administration shall establish and be the purchasing agent for a group workers' compensation program under which the workers' compensation liabilities of all school districts are insured to the extent that the department deems necessary. The department shall negotiate for the group workers' compensation coverage and shall develop premium schedules to be used by the local boards in purchasing such coverage. The local school boards are authorized to expend funds from any available source for the purpose of obtaining and maintaining the group workers' compensation insurance coverage. The Department of Finance and Administration may authorize the organization and operation of * * * a group self-insurance program to cover the group workers' compensation liability of all public school districts in the state 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.
SECTION 2. This act shall take effect and be in force from and after July 1, 2010.
