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Senate reallocates surplus-lines fee to boost fire truck funding, caps wind-pool diversion

2838709 · April 1, 2025
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Summary

The Mississippi Senate voted to adopt a conference report that changes how the state distributes revenue from the surplus‑lines (non‑admitted) insurance policy fee, directing a larger share to rural, municipal and volunteer county fire funds and setting a $12 million cap on payments to the Windstorm Underwriters Association.

The Mississippi Senate voted to adopt a conference report that changes how the state distributes revenue from the non‑admitted (surplus lines) insurance policy fee, directing a larger portion to fire service funding and setting a fixed cap for the windstorm pool.

Senator Parker, explaining the measure on the floor, said the bill reallocates the non‑admitted premium fee so that, beginning July 1, 2025, 40% of the funds not diverted to first‑responder and windstorm accounts will go to the Rural Fire Truck Fund (RIFTAP), 30% to the Municipal Fire Protection Fund and 30% to the Volunteer County Fire Department Fund. Parker said the change should produce about $4 million a year more for RIFTAP and allow funds to be used for training, equipment and compliance as well as truck purchases.

The conference report replaces a percentage‑based cap on the Windstorm Underwriters Association with a $12,000,000 straight cap, a move supporters said preserves the coast’s windpool funding while making more money available annually for fire apparatus and related needs in other parts of the state. “It changes the cap to $12 million instead of a percentage of the fund,” Parker said in response to questions from colleagues. He added that historical diversions to the windpool were roughly in that range.

Why it matters: Sponsors described the measure as an effort to get more predictable, recurring state support into municipal and volunteer fire services and the rural truck acquisition program. Senators who spoke asked how the shift would affect premiums and whether state oversight should be added to purchasing processes to ensure value for money. The bill also directs future work on cost containment and competitive procurement for fire apparatus.

Debate and clarifying details: Senators pressed the lead sponsor on whether the reallocation would reduce funding for the Windstorm Underwriters Association and on whether there was actuarial analysis showing the effect on premiums. Parker said the change is primarily a reallocation of existing revenues and that the windpool will be subject to a fixed cap; he also said staff would provide historical numbers on prior diversions and that a broader procurement review (on competitive bidding and oversight for truck purchases) was being pursued separately.

Outcome and next steps: The Senate adopted the conference report by roll call. The bill’s text sets the new distribution percentages, implements the $12 million cap on the windpool diversion and identifies eligible uses for the allocated funds including fire training, equipment and truck acquisition. Sponsors said the change should be implementable beginning July 1, 2025.

Votes at a glance: The Senate adopted the conference report by use of the morning roll call (recorded on the floor as passing).

Sources: Floor debate and sponsor explanation during the Senate session; questions from Senators Hill, Thompson and others.