Shown verbatim: the complete text as captured from the official page posted by the Mississippi Legislature, fetched 2026-08-29. This is the enrolled version. The official bill page.
MISSISSIPPI LEGISLATURE 2026 Regular Session To: Insurance By: Representative House Bill 939 (As Sent to Governor) AN ACT TO AMEND SECTION 45-11-271, MISSISSIPPI CODE OF 1972, TO EXTEND THE DATE OF THE REPEALER ON THE MISSISSIPPI LENGTH-OF-SERVICE AWARD PROGRAM (LOSAP) CREATED BY THE DEPARTMENT OF INSURANCE FOR THE PURPOSE OF RECRUITING AND RETAINING VOLUNTEER FIREFIGHTERS; TO REQUIRE THE STATE FIRE MARSHAL AND THE MISSISSIPPI STATE RATING BUREAU TO ADHERE TO THE REQUIREMENTS OF SECTION 83-3-24, MISSISSIPPI CODE OF 1972, AS IT RELATES TO RECOMMENDING AGE RESTRICTIONS FOR FIRE APPARATUS AND THE REQUIREMENTS OF NFPA 1900 AS IT RELATES TO FIRE APPARATUS SERVICE AND MAINTENANCE AND PUMP REQUIREMENTS; TO CREATE THE FIRE GRANT FUND AS A SPECIAL FUND IN THE STATE TREASURY FOR THE PURPOSE OF ASSISTING COUNTIES AND MUNICIPALITIES WITH MEASURES AIMED AT IMPROVING FIRE SAFETY; TO REQUIRE ALL FUNDS FORMERLY CREDITED TO THE RURAL FIRE TRUCK FUND, THE RURAL FIRE TRUCK MATCHING ASSISTANCE FUND, THE SUPPLEMENTARY RURAL FIRE TRUCK FUND AND THE ANNUAL FIRE FUND TO BE PAID INTO THE FIRE GRANT FUND, AND TO REQUIRE THE TRANSFER OF BALANCES IN THOSE FUNDS TO THE FIRE GRANT FUND; TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO ADMINISTER THE FUND; TO CREATE THE FIRE EQUIPMENT GRANT FUND AS A SPECIAL FUND IN THE STATE TREASURY FOR THE PURPOSE OF ASSISTING COUNTIES AND MUNICIPALITIES BY PROVIDING FUNDS FOR FIRE SAFETY PROTECTION AND LIFE SAVING EQUIPMENT; TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO ADMINISTER THE FUND; TO ESTABLISH THE FIRE GRANT COMMITTEE FOR THE PURPOSE OF PROVIDING NONBINDING ADVICE TO THE DEPARTMENT OF FINANCE AND ADMINISTRATION REGARDING THE ADMINISTRATION OF THE FIRE GRANT FUND AND THE FIRE EQUIPMENT GRANT FUND AND THE AUTHORIZING AND AWARDING OF GRANTS FROM THOSE FUNDS; TO REQUIRE THE COMMITTEE TO ADOPT A MECHANISM TO SCORE GRANT APPLICANTS; TO ESTABLISH DEADLINES FOR THE RECEIPT OF GRANT APPLICATIONS AND DETERMINATIONS BY THE DEPARTMENT OF FINANCE AND ADMINISTRATION; TO REPEAL SECTION 17-23-1, MISSISSIPPI CODE OF 1972, WHICH CREATES THE RURAL FIRE TRUCK ACQUISITION ASSISTANCE PROGRAM; TO REPEAL SECTION 17-23-11, MISSISSIPPI CODE OF 1972, WHICH CREATES A SUPPLEMENTARY RURAL FIRE TRUCK ACQUISITION ASSISTANCE PROGRAM; TO REPEAL SECTION 17-23-21, MISSISSIPPI CODE OF 1972, WHICH CREATES THE ANNUAL FIRE FUND; TO AMEND SECTION 83-34-4, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PRECEDING PROVISIONS; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. Section 45-11-271, Mississippi Code of 1972, is amended as follows: 45-11-271. (1) The Mississippi Department of 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 subsection 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 Department of Insurance * * * Department. (c) "Defined contribution" means the predefined contribution that the Mississippi Length-of-Service Award Program Board of Trustees, in collaboration with the Mississippi Department of Insurance * * * Department, establishes as a yearly contribution to an eligible volunteer firefighter's LOSAP account. (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; (iv) One (1) member from the state at large appointed by the Governor; and (v) One (1) member from the state at large appointed by the Lieutenant Governor. (b) The LOSAP Board of Trustees, in collaboration with the Mississippi Department of 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; and the volunteer fire department members eligible time to be considered as an active member of the department before the establishment of the LOSAP on July 1, 2023; (iii) Determine the annual contribution to each volunteer's LOSAP account; and (iv) Promulgate any rules and regulations as necessary to implement the provisions of this section. All such rules and regulations shall be in compliance with 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 maintained by the State Treasurer. The Treasurer of the State of Mississippi may invest the monies deposited in the special fund. The amounts to be invested shall be determined by the Treasurer and shall be in the approximate amount of the total monies deposited in * * *said the special fund less the anticipated withdrawals and disbursements from the Mississippi Length-of-Service Award Program to be made within the following ninety-day period. Such funds shall be invested by * * *said the Treasurer in short-term bonds, Treasury Bills, or other direct obligations of the United States of America, or any national or state banks in the State of Mississippi. 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. 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 Department of 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 Department of Insurance * * * Department. A volunteer fire department member or department reported by the Mississippi Department of 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. (6) A member of the Mississippi Length-of-Service Award Program may receive the funds allocated on their behalf to the program upon their withdrawal from the program. (7) The Mississippi Length-of-Service Award Program may allocate a maximum of Five Hundred Dollars ($500.00) in yearly defined contributions to each member's LOSAP account. (8) * * *The provisions of t This section shall stand repealed on July 1, * * *2026 2030. SECTION 2. The State Fire Marshal and the Mississippi State Rating Bureau shall comply with Section 83-3-24 as it relates to recommending age restrictions of fire apparatus. When rating a municipality or fire district, including evaluations of rural or volunteer fire departments, the Rating Bureau shall consider the mileage, condition and maintenance of the fire trucks rather than the age of the fire trucks. Maintenance requirements shall follow NFPA 1900 as it relates to fire apparatus service and maintenance and fire apparatus pump requirements. SECTION 3. (1) There is created in the State Treasury a special fund to be designated as the "FIRE Grant Fund" to be administered by the Department of Finance and Administration. The purposes of the fund shall be to assist municipalities and counties with fire safety, maintaining or lowering community fire ratings, recruiting and retaining firefighters, and defraying initial costs associated with creating a countywide fire program. The department shall retain an administrative fee in the amount of one percent (1%) of grants awarded from the FIRE Grant Fund to defray the costs of administering the fund. (2) Beginning on July 1, 2026, all funds that would have been appropriated to or otherwise deposited in the Rural Fire Truck Fund, the Rural Fire Truck Matching Assistance Fund created under Section 17-23-1, the Supplementary Rural Fire Truck Fund created under Section 17-23-11, and the Annual Fire Fund created under Section 17-23-21 shall be deposited into the FIRE Grant Fund. No later than July 10, 2026, the State Fiscal Officer shall transfer all unobligated funds in the Rural Fire Truck Fund, the Rural Fire Truck Matching Assistance Fund, the Supplementary Rural Fire Truck Fund and the Annual Fire Fund to the FIRE Grant Fund. Unexpended amounts remaining in the FIRE Grant 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. (3) The FIRE Grant Fund shall be used to fund grants in the following areas: (a) Fire trucks. A fire truck grant will be awarded based on need. Need shall be determined based upon the establishment of a multifactor scoring system described in subsection (3) of Section 5 of this act. A grant awarded under this paragraph shall be used to pay an amount up to fifty percent (50%) of the total purchase price of a fire truck; however, if an applicant has never received a grant under the Rural Fire Truck Acquisition Assistance Program, the applicant's first match under this paragraph may be an amount up to seventy percent (70%) of the total purchase price. (b) Countywide Fire Programs. The countywide fire grant will reimburse a county an amount up to One Hundred Thousand Dollars ($100,000.00) to help cover the first or second year expenses following the formation and implementation of a countywide fire program. The grant may cover expenses incurred from the construction of a building, the purchase of software, computers, radios and other equipment, and staffing. In order to be eligible for a grant under this paragraph, a program must be approved by the local governing board and must consolidate no less than three (3) local volunteer fire departments or alternatively, must cover no less than forty percent (40%) of the county. No more than five (5) grants may be awarded across the state under this paragraph during a one-year period. (4) (a) A municipality or county that is the recipient of grant funds from the FIRE Grant Fund must procure or have ordered the fire truck before the expiration of twelve (12) months following the date on which the grant funds are received. If a recipient of grant funds has not procured or ordered the fire truck for which the funds were granted before the required date, the funds shall be returned to the Department of Finance and Administration by the appropriate entity. Where a municipality or county fails to return funds as required under this paragraph, the Department of Finance and Administration shall notify the State Auditor. (b) Upon receipt of the notification, the State Auditor shall send the county or municipality a letter expressing the State Auditor's intent to seek recovery of the funds by issuing a certificate of noncompliance. If the funds have not been returned within thirty (30) days from the date of issuance of the letter of intent, the Auditor shall issue a certificate of noncompliance to the county or municipality and provide written notice of the certificate to the Department of Revenue. (c) The Department of Revenue shall withhold such amount which has not been returned to the Department of Finance and Administration in compliance with this subsection and shall transfer the withheld allocations and payments under Section 27-65-75 to the Department of Finance and Administration. (d) The State Treasurer, in conjunction with the State Fiscal Officer, shall transfer such funds into the FIRE Grant Fund. Once a sum equal to the amount of funds owed to the state under this subsection by the county or municipality has been transferred into the FIRE Grant Fund, the State Fiscal Officer shall certify to the State Auditor that the required funds have been returned to the FIRE Grant Fund. (e) Upon receipt of the certification by the State Fiscal Officer under paragraph (d) of this subsection, the State Auditor shall cancel the certificate of noncompliance and inform the Department of Revenue of such cancellation in writing. (5) In addition to the requirements specified in subsection (3) of this section, in order to be eligible for a grant under this section, an applicant shall have a Fire Rating Plan on file which includes a one-year and three-year plan to maintain and reduce the area fire rating. SECTION 4. (1) There is created in the State Treasury a special fund to be designated as the "Fire Equipment Grant Fund" to be administered by the Department of Finance and Administration. The purpose of the special fund shall be to assist municipalities and counties by providing funds for fire safety protection and life saving equipment. The special fund shall consist of such monies which may be transferred from the Law Enforcement Officers and Fire Fighters Training and Equipment Trust Fund created under Section 45-2-1. The department shall retain an administrative fee in the amount of one percent (1%) of grants awarded from the Fire Equipment Grant Fund to defray the costs of administering the fund. (2) The Fire Equipment Grant Fund shall be used to fund grants for fire and safety equipment. An equipment grant will be awarded based on need. Need shall be determined based upon the establishment of a multifactor scoring system described in subsection (3) of Section 5 of this act. A grant awarded under this subsection shall pay an amount up to seventy percent (70%) of the total purchase price of equipment. (3) (a) A municipality or county that is the recipient of grant funds from the Fire Equipment Grant Fund must procure the equipment before the expiration of twelve (12) months following the date on which the grant funds are received. If a recipient of grant funds has not procured the equipment for which the funds were granted before the required date, the funds shall be returned to the Department of Finance and Administration by the appropriate entity. Where a municipality or county fails to return funds as required under this paragraph, the Department of Finance and Administration shall notify the State Auditor. (b) Upon receipt of the notification, the State Auditor shall send the county or municipality a letter expressing the State Auditor's intent to seek recovery of the funds by issuing a certificate of noncompliance. If the funds have not been returned within thirty (30) days from the date of issuance of the letter of intent, the Auditor shall issue a certificate of noncompliance to the county or municipality and provide written notice of the certificate to the Department of Revenue. (c) The Department of Revenue shall withhold such amount which has not been returned to the Department of Finance and Administration in compliance with this subsection and shall transfer the withheld allocations and payments under Section 27-65-75 to the Department of Finance and Administration. (d) The State Treasurer, in conjunction with the State Fiscal Officer, shall transfer such funds into the Fire Equipment Grant Fund. Once a sum equal to the amount of funds owed to the state under this subsection by the county or municipality has been transferred into the Fire Equipment Grant Fund, the State Fiscal Officer shall certify to the State Auditor that the required funds have been returned to the Fire Equipment Grant Fund. (e) Upon receipt of the certification by the State Fiscal Officer under paragraph (d) of this subsection, the State Auditor shall cancel the certificate of noncompliance and inform the Department of Revenue of such cancellation in writing. SECTION 5. (1) There is created the FIRE Grant Committee, which shall provide nonbinding, advisory recommendations to the Department of Finance and Administration regarding the administration, scoring, selection process and authorizing of grant funds from the FIRE Grant Fund created under Section 3 of this act and the Fire Equipment Grant Fund created under Section 4 of this act. In awarding grants to municipalities and counties from the FIRE Grant Fund and the Fire Equipment Grant Fund, the Department of Finance and Administration shall adhere to the same criteria established and used by the FIRE Grant Committee for making determinations on applications for grant funds in formulating recommendations to be made to the department. (2) The FIRE Grant Advisory Committee shall be comprised of the following members: (a) The Chair of the Appropriations Committee of the House of Representatives, or his or her designee; (b) The Chair of the Appropriations Committee of the Senate, or his or her designee; (c) Four (4) individuals appointed by the Lieutenant Governor, with one (1) of such being from each Congressional District; (d) Four (4) individuals appointed by the Speaker of the House of Representatives, with one (1) of such being from each Congressional District; (e) One (1) representative appointed by the Mississippi Fire Chiefs Association; (f) One (1) representative from the Mississippi Fire Fighters Association; (g) One (1) representative from the Professional Firefighter Association of Mississippi; and (h) The State Fire Coordinator. (3) The committee shall adopt rules and grant application guidelines in an effort to achieve its legislative purpose. It shall create a mechanism that scores applicants based on a number of factors, which may be based on, but not limited to: (a) the population served by the fire district; (b) the current condition of the fire truck and equipment; (c) the amount of savings to be incurred by the local government and/or local population residing within the fire district; (d) the timeframe during which changes may be implemented; (e) any coverage gaps that could be reduced or eliminated by receiving funds; (f) emergency call volume; (g) the winning or losing of previous grants and/or awards; and (h) feasibility of being able to sufficiently and timely obtain funds to match FIRE Grant Funds of Fire Equipment Grant Funds, whichever is applicable, having a current Fire Rating Plan on file. The committee shall factor in the amount of matching funds made available by the applicant. The fire protection plan guidelines must be adopted before the expiration of six (6) months following the date appointments are made pursuant to subsection (1) of this section. (4) A municipality or county desiring to receive an award from the FIRE Grant Fund or Fire Equipment Grant Fund, or both, shall submit an application for the grant to the FIRE Grant Advisory Committee on a form prescribed by the Department of Finance and Administration. In order to be considered for an award in the fiscal year commencing on July 1, an application must be received by the committee before May 1. The committee shall make its recommendations on grant awards to the department before July 1. A determination on each award recommendation received from the committee must be made by the department no later than ninety (90) days following the department's receipt of the recommendation. The department may promulgate such rules and regulations as may be necessary which are not inconsistent with the provisions of this act for the purposes of implementing the FIRE Grant Fund and Fire Equipment Grant Funds programs. SECTION 6. Section 17-23-1, Mississippi Code of 1972, which creates the Rural Fire Truck Acquisition Assistance Program, is repealed. SECTION 7. Section 17-23-11, Mississippi Code of 1972, which creates a Supplementary Rural Fire Truck Acquisition Assistance Program, is repealed. SECTION 8. Section 17-23-21, Mississippi Code of 1972, which creates the Annual Fire Fund, is repealed. SECTION 9. Section 83-34-4, Mississippi Code of 1972, is amended as follows: 83-34-4. (1) Nonadmitted insurers shall not be assessable insurers of the association. All surplus lines insurance producers placing insurance through nonadmitted insurers shall collect from the insured and remit to the association a nonadmitted policy fee on all premiums for all insurance written by such surplus lines insurance producer for a policy from a nonadmitted insurer for any and all risks in this state, except that policies or portions thereof that cover residential earthquake risks or residential flood risks that are not written through the National Flood Insurance Program shall be exempt from the nonadmitted policy fee. By procuring or selling insurance on property in this state from a nonadmitted insurer, each surplus lines insurance producer placing insurance through a nonadmitted insurer agrees to be bound by the provisions of this chapter and to collect and remit the nonadmitted policy fee provided for herein. (2) The nonadmitted policy fee shall be a percentage of the total policy premium but the nonadmitted policy fee shall not be considered premium and is not subject to premium taxes or commissions. However, failure to pay the nonadmitted policy fee shall be treated the same as failure to pay the premium. "Total policy premium" includes taxes and commissions. (3) The nonadmitted policy fee percentage shall be three percent (3%). (4) Within twenty (20) days of the end of the quarter, surplus lines insurance producers placing insurance through nonadmitted insurers shall remit directly to the association all nonadmitted policy fees collected in the preceding quarter. In addition to the nonadmitted policy fee provided for herein, surplus lines insurance producers placing insurance through nonadmitted insurers shall collect and remit excess deficit surcharges as provided by this chapter. Surplus lines insurance producers placing insurance through nonadmitted insurers may designate another surplus lines insurance producer that actually procured the insurance from the nonadmitted carrier to collect and remit the nonadmitted policy fees. (5) Each insured in this state who directly procures or renews insurance with a nonadmitted insurer on properties, risks or exposures located or to be performed, in whole or in part, in this state, other than insurance procured through a surplus lines licensee, shall be subject to the nonadmitted policy fee which shall be paid by the insured according to the procedures provided for premium taxes in Section 83-21-17(5). (6) Monies derived from the nonadmitted policy fee collected under this section shall not be considered public funds and may be used by the association, in addition to any uses provided for in Section 83-34-3(4), for education, public outreach, training of building officials and other programs targeted to reduce the number of policies within the association; however, beginning on July 1, 2018, and ending on June 30, 2019, before any fees are remitted to the association, One Million Five Hundred Thousand Dollars ($1,500,000.00) shall be diverted and deposited into the Capital Expense Fund, and Four Million Five Hundred Thousand Dollars ($4,500,000.00) shall be diverted and deposited into the Rural Fire Truck Fund or Supplementary Rural Fire Truck Fund. Further, beginning July 1, 2019, and ending on June 30, 2020, before any fees are remitted to the association, Three Million Five Hundred Thousand Dollars ($3,500,000.00) shall be diverted and deposited into the Rural Fire Truck Fund or Supplementary Rural Fire Truck Fund. Further, beginning July 1, 2022, and ending on June 30, 2025, before any fees are remitted to the association but only if the association will receive at least sixty percent (60%) of the fees, Five Hundred Thousand Dollars ($500,000.00) shall be diverted and deposited annually into the Mississippi First Responders Health and Safety Trust Fund created in Section 25-15-411. Further, beginning July 1, 2022, and ending on June 30, 2025, but only if the association will receive at least sixty percent (60%) of the fees and the Mississippi First Responders Health and Safety Trust Fund has received the diversion of Five Hundred Thousand Dollars ($500,000.00), Three Million Five Hundred Thousand Dollars ($3,500,000.00) shall be diverted and deposited annually into the Annual Fire Fund created in Section 17-23-21. Further, beginning July 1, 2022, and ending on June 30, 2025, after the association has received sixty percent (60%) of the fees and after all other diversions are made, fifty percent (50%) of any excess amount shall be remitted to the association and fifty percent (50%) of any excess amount shall be diverted and deposited annually into the Annual Fire Fund. Beginning July 1, 2025, and ending on June 30, 2026, (a) Five Hundred Thousand Dollars ($500,000.00) shall be diverted and deposited annually into the Mississippi First Responders Health and Safety Trust Fund created in Section 25-15-41; (b) Twelve Million Dollars ($12,000,000.00) shall be remitted annually to the association; and (c) any remaining excess amount shall be diverted and deposited annually as follows: forty percent (40%) into the Rural Fire Truck Fund created in Section 17-23-1; thirty percent (30%) into the Municipal Fire Protection Fund created in Section 83-1-37 and thirty percent (30%) into the County Volunteer Fire Department Fund created in Section 83-1-39. Beginning July 1, 2026, (a) Five Hundred Thousand Dollars ($500,000.00) shall be diverted and deposited annually into the Mississippi First Responders Health and Safety Trust Fund created in Section 25-15-41; (b) Twelve Million Dollars ($12,000,000.00) shall be remitted annually to the association; and (c) any remaining excess amount shall be diverted and deposited annually as follows: forty percent (40%) into the FIRE Grant Fund created in Section 3 of this act; thirty percent (30%) into the Municipal Fire Protection Fund created in Section 83-1-37 and thirty percent (30%) into the County Volunteer Fire Department Fund created in Section 83-1-39. (7) The association may use excess funds to purchase reinsurance in an amount that may exceed the total premiums collected from policyholders. SECTION 10. This act shall take effect and be in force from and after July 1, 2026.
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