Bill Text: MS HB521 | 2023 | Regular Session | Engrossed
Bill Title: Length of Service Award Program; authorize for the recruitment and retention of volunteer firefighters.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-04-17 - Approved by Governor [HB521 Detail]
Download: Mississippi-2023-HB521-Engrossed.html
MISSISSIPPI LEGISLATURE
2023 Regular Session
To: Insurance; Appropriations
By: Representatives Scoggin, Rushing, Creekmore IV, Morgan, Anthony, Horne, Byrd, Steverson, Faulkner, Evans (91st), Crawford, Stamps, Karriem
House Bill 521
(As Passed the House)
AN ACT TO AUTHORIZE THE MISSISSIPPI INSURANCE DEPARTMENT TO CREATE THE MISSISSIPPI LENGTH OF SERVICE AWARD PROGRAM (LOSAP) FOR THE RECRUITMENT AND RETENTION OF VOLUNTEER FIREFIGHTERS; TO PROVIDE THAT THE PROGRAM WILL PROVIDE PAID LENGTH OF SERVICE AWARDS TO ELIGIBLE VOLUNTEER FIREFIGHTERS; TO PROVIDE DEFINITIONS; TO PROVIDE THAT THE LOSAP SHALL BE ADMINISTERED BY THE MISSISSIPPI LENGTH OF SERVICE AWARD PROGRAM BOARD OF TRUSTEES AND TO PROVIDE THE MEMBERS WHO WILL SERVE ON THE BOARD; TO PROVIDE THE POWERS AND DUTIES OF THE LOSAP BOARD OF TRUSTEES; TO CREATE THE "MISSISSIPPI VOLUNTEER FIREFIGHTER LENGTH OF SERVICE AWARDS PROGRAM FUND" (LOSAP FUND) AND TO PROVIDE WHAT MONIES IN THE FUND MAY BE USED FOR; TO PROVIDE THAT THE MISSISSIPPI INSURANCE DEPARTMENT SHALL NOTIFY THE STATE FIRE MARSHAL AND THE LOSAP BOARD OF TRUSTEES OF ANY VOLUNTEER FIRE DEPARTMENT MEMBER WHO IS INELIGIBLE TO RECEIVE THE LOSAP FUNDS; TO AMEND SECTION 83-1-37, MISSISSIPPI CODE OF 1972, TO REVISE THE AMOUNT OF THE INSURANCE TAX PREMIUM THAT IS DEPOSITED INTO THE "MUNICIPAL FIRE PROTECTION FUND" FROM ONE-HALF OF TEN PERCENT TO ONE-HALF OF TWENTY PERCENT; TO AMEND SECTION 83-1-39, MISSISSIPPI CODE OF 1972, TO REVISE THE AMOUNT OF THE INSURANCE TAX PREMIUM THAT IS DEPOSITED INTO THE "COUNTY VOLUNTEER FIRE DEPARTMENT FUND" FROM ONE-HALF OF TEN PERCENT TO ONE-HALF OF TWENTY PERCENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) The Mississippi Insurance Department shall establish the Mississippi Length of Service Award Program (LOSAP) for the recruitment and the retention of volunteer firefighters. Such program shall provide paid length of service awards to eligible volunteer firefighters and shall be open to all Mississippi volunteer fire department members.
(2) The following words and phrases shall have the meanings as defined in this section unless the context clearly indicates otherwise:
(a) "Length of Service Award Program" means a program to provide paid length of service awards to eligible volunteer firefighters.
(b) "Eligible volunteer firefighter" means a bona fide volunteer firefighter who is registered with the State of Mississippi or a political subdivision thereof and is an active part-time or on-call member of a volunteer fire department or a volunteer firefighter. Eligible volunteer firefighter shall not include full-time firefighters or career firefighters unless such firefighters are also active eligible volunteer firefighters when they are not acting as full-time or career firefighters and meet all other required qualifications as provided by the Mississippi Length of Service Award Program Board of Trustees in collaboration with the Mississippi Insurance Department.
(c) "Defined contribution" means the Mississippi Length of Service Award Program Board of Trustees in collaboration with the Mississippi Insurance Department shall establish a predefined contribution that it will make each year to the eligible volunteer firefighter's LOSAP account, and the funds in the volunteer's account grow until retirement age when the account is paid to the volunteer in a lump sum.
(3) (a) The LOSAP shall be administered by the Mississippi Length of Service Award Program Board of Trustees, which shall be comprised of the following members:
(i) The Commissioner of Insurance, or his or her designee;
(ii) The State Fire Coordinator, or his or her designee;
(iii) The State Treasurer, or his or her designee; and
(iv) The State Auditor, or his or her designee.
(b) The LOSAP Board of Trustees, in collaboration with the Mississippi Insurance Department, shall have the following powers and duties:
(i) Establish a points system to be awarded to volunteer firefighters for their performance of certain activities as determined by the board and award LOSAP service credit based upon that points system;
(ii) Create a list of the activities that points will be awarded for. Such list shall include, at a minimum, the number of emergency and nonemergency calls responded to by the volunteer member; the activities and training of each member as determined on an annual basis; the revenues received from the collection on behalf of the volunteer fire department member as set forth in a fund for each individual member; the volunteer fire department members eligible vestment period or time to be considered as an active member of the department before the establishment of the LOSAP program on July 1, 2023.
(iii) Determine the annual contribution to each volunteer's LOSAP account;
(iv) Determine the number of years required to become vested in the LOSAP; and
(v) Promulgate any rules and regulations as necessary to implement the provisions of this section. All such rules and regulations shall be in compliance with 83-1-37 and 83-1-39 and Section 457(e)(11) of the United States Internal Revenue Code.
(4) There is hereby created in the State Treasury a special fund to be known as the "Mississippi Volunteer Firefighter Length of Service Awards Program Fund" (LOSAP Fund) to be administered by the Mississippi Insurance Department. Monies shall be deposited into the fund by the State Insurance Commissioner as authorized from collections as set forth under 83-1-37 and 83-1-39 as amended to include one half of twenty percent of the growth from the Fire Insurance Premium Tax since 1990. Monies in the fund shall first be used for the purpose of providing retirement benefits as a defined contribution to volunteer firefighters for the purpose of recruiting and retaining volunteer firefighters as provided in this section. After the LOSAP has been funded, the remaining amounts shall be deposited into the Fire Insurance Rebate Fund for distribution to municipal and county fire departments. Any other 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 on amounts in the fund shall be deposited to the credit of the fund.
(5) The Mississippi Insurance Department shall notify the Mississippi Length of Service Award Program Board of Trustees and the State Fire Marshal of any volunteer fire department member that is ineligible to receive LOSAP funds due to the member or department's failure to file required documentation or financial reports or failure to comply with an audit or review by the Mississippi Insurance Department. A volunteer fire department member or department reported by the Mississippi Insurance Department shall be ineligible to receive funds under this section until the Mississippi Insurance Department notifies the Mississippi Length of Service Award Program Board of Trustees and the State Fire Marshal that the volunteer member or department has come into compliance.
SECTION 2. 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.
(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 twenty percent (1/2 of
20%) 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 in the following manner annually: each municipality shall be paid Six Thousand Dollars ($6,000.00), with the remainder of the monies to be paid on a population basis, to be determined by the most recent federal census. Municipalities receiving these funds shall earmark such monies for fire protection services.
(4) 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, 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,
for windstorm mitigation programs as approved by the Commissioner of Insurance, * * * for emergency medical service training and
equipment as provided by municipal fire protection services and for the
Mississippi Length of Service Awards Program as provided in Section 1 of this
act. A municipality may provide reasonable remuneration to municipal
volunteer firefighters in accordance with the guidelines established by the Commissioner
of Insurance authorized by Section 45-11-7.
(5) 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.
(6) The Commissioner of Insurance may promulgate rules and regulations to establish guidelines for the use of fire rebate funds.
SECTION 3. 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 in the following manner: each county shall be paid Thirty Thousand Dollars ($30,000.00), with the remainder of the monies to be paid 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.
(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 twenty percent (1/2 of
20%) 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, including emergency medical services training;
(b) Purchase of equipment, purchase of fire trucks, repair and refurbishing of fire trucks and firefighting equipment, for emergency medical services 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;
(c) Purchase of insurance on county-owned firefighting or emergency medical services equipment;
(d) Fire protection service contracts, including, but not limited to, municipalities, legal fire protection districts, and nonprofit corporations providing or coordinating fire service or emergency medical services 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;
(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;
(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;
(h) At the option of
the board of supervisors, a county may provide reasonable remuneration to
volunteer firefighters in accordance with the guidelines established by the
Commissioner of Insurance authorized by Section 45-11-7; * * *
(i) For the Mississippi Length of Service Awards Program as provided in Section 1 of this act; or
( * * *j) For any use allowed in accordance
with the guidelines as established by the Commissioner of Insurance.
(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;
(c) Adheres to the standard guidelines established by the Commissioner of Insurance pursuant to Section 45-11-7(9); and
(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, purchase of insurance for any fire equipment owned or operated by the provider, and for training and equipment of emergency medical services as provided by fire protection services.
(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.
(11) The Commissioner of Insurance may promulgate rules and regulations to establish guidelines for the use of fire rebate funds.
SECTION 4. This act shall take effect and be in force from and after July 1, 2023, and shall stand repealed on June 30, 2023.
