MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Insurance; Appropriations
By: Senator(s) Michel, Barnett
Senate Bill 2413
(COMMITTEE SUBSTITUTE)
AN ACT TO AMEND SECTION 83-1-191, MISSISSIPPI CODE OF 1972,
TO RENAME THE "COMPREHENSIVE HURRICANE DAMAGE MITIGATION PROGRAM" TO
THE "STRENGTHEN MISSISSIPPI HOMES PROGRAM"; TO INCLUDE WIND
MITIGATION; TO REMOVE THE PROVISIONS FOR A COST-BENEFIT STUDY ON WIND HAZARD
MITIGATION CONSTRUCTION MEASURES, WIND CERTIFICATION AND HURRICANE MITIGATION
INSPECTIONS, AND AN ADVISORY COUNCIL; TO INCREASE THE AMOUNTS OF FINANCIAL
GRANTS OFFERED BY THE STRENGTHEN MISSISSIPPI HOMES PROGRAM TO $15,000.00 PER
HOME AND TO ALLOW THE COMMISSIONER OF INSURANCE TO ESTABLISH CRITERIA FOR THE
ISSUING OF GRANTS BY REGULATION; TO RENAME THE "COMPREHENSIVE HURRICANE
DAMAGE MITIGATION PROGRAM FUND" TO THE "STRENGTHEN MISSISSIPPI HOMES
FUND"; TO AMEND SECTION 83-5-73, MISSISSIPPI CODE OF 1972, TO INCREASE THE
FEE FOR THE FILING OF AN AGENT’S CERTIFICATE OF AUTHORITY FROM $25.00 TO
$50.00; TO PROVIDE THAT ONE-HALF OF THE FEE WILL BE DEPOSITED INTO THE STATE
GENERAL FUND AND ONE-HALF OF THE FEE WILL BE DEPOSITED INTO THE STRENGTHEN
MISSISSIPPI HOMES FUND; AND FOR OTHER RELATED PURPOSES.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. 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 Strengthen
Mississippi Homes 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 and
wind 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.
( * * *ca) * * * Financial
grants to retrofit properties. Strengthen Mississippi
Homes Program. The Strengthen Mississippi Homes Program shall
provide 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 or wind
damage. No financial grant made under this section shall exceed * * * Ten Thousand Dollars ($10,000.00) Fifteen
Thousand Dollars ($15,000.00) per recipient. The commissioner shall
promulgate rules governing eligibility requirements for grants and the
administration of the program, including, but not limited to, establishing
applicant criteria, contractor and evaluator eligibility requirements and grant
round eligibility and criteria.
( * * *db) 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.
( * * *fc) Rules and regulations. The
Department of Insurance may adopt rules and regulations governing the * * * Comprehensive Hurricane Damage Mitigation Strengthen
Mississippi Homes 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 and wind. 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) In implementing,
establishing and administering the Strengthen Mississippi Homes Program,
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 may enter into contracts for personal or
professional services and may access monies in the * * * Comprehensive Hurricane Damage Mitigation Strengthen
Mississippi Homes 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 Strengthen
Mississippi Homes 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.
* * * (5) This section shall stand repealed from and after
July 1, 2025.
SECTION 2. Section
83-5-73, Mississippi Code of 1972, is amended as follows:
83-5-73. The commissioner
shall collect and pay into the special fund in the State Treasury
designated as the "Insurance Department Fund" the following fees:
for certificate of authority to each general or district agent or manager,
Twenty-five Dollars ($25.00); for filing and processing an agent's certificate
of authority, * * * Twenty‑five
Dollars ($25.00) Fifty Dollars ($50.00); for filing and
examining statement preliminary to admission, One Thousand Dollars ($1,000.00);
for filing and processing a Form A application, Two Thousand Dollars
($2,000.00); for filing and auditing annual statement, Five Hundred Dollars
($500.00); for filing any other paper required by law, Fifty Dollars ($50.00);
for continuing education courses or programs filed by the providers for
approval, Fifty Dollars ($50.00); for each certification company licensed
status, Forty Dollars ($40.00); for each seal when required, Twenty Dollars
($20.00); for service of process on the commissioner as attorney, Twenty-five
Dollars ($25.00).
From and after July 1, 2016,
the expenses of this agency shall be defrayed by appropriation from the State
General Fund and all user charges and fees authorized under this section shall
be deposited into the State General Fund as authorized by law, except that
from and after July 1, 2025, of the Fifty Dollar ($50.00) fee charged for the
filing and processing of an agent's certificate of authority, Twenty-five
Dollars ($25.00) shall be deposited into the State General Fund and Twenty-five
Dollars ($25.00) shall be deposited into the Strengthen Mississippi Homes
Fund. On June 30th of each year, any amount in excess of Fifteen Million
Dollars ($15,000,000.00) in the Strengthen Mississippi Homes Fund will lapse
into the General Fund.
From and after July 1, 2016,
no state agency shall charge another state agency a fee, assessment, rent or
other charge for services or resources received by authority of this section.
SECTION 3. Section 1
of this act shall take effect and be in force from and after its passage.
Section 2 of this act shall take effect and be in force from and after July 1,
2025.
