S.F. _____ Section 1. NEW SECTION . 29C.8B Emergency management trust 1 fund. 2 1. An emergency management trust fund is created in the 3 state treasury under the control of the homeland security 4 and emergency management division for purposes of funding 5 county emergency management programs. The trust fund shall 6 consist of surcharges imposed pursuant to subsection 2, moneys 7 appropriated by the general assembly, and moneys available to 8 and obtained or accepted by the division from the United States 9 or private sources for placement in the trust fund. Moneys 10 in the trust fund are appropriated to the division for the 11 purposes provided in this section. Section 8.33 shall not 12 apply to moneys in the trust fund. Notwithstanding section 13 12C.7, moneys earned as income or interest from the trust fund 14 shall remain in the trust fund until expended as provided in 15 this section. 16 2. The following surcharges shall be applied, remitted 17 to the department of revenue, and deposited in the emergency 18 management trust fund: 19 a. An annual surcharge of one dollar per policy shall be 20 charged on every individual renter’s insurance policy issued or 21 renewed on or after July 1, 2010. 22 b. An annual surcharge of two dollars per policy shall 23 be charged on every homeowner’s, mobile homeowner’s, and 24 condominium unit owner’s insurance policy issued or renewed on 25 or after July 1, 2010. 26 c. An annual surcharge of four dollars per policy shall be 27 placed on every commercial fire, commercial multiple peril, and 28 business owner’s insurance policy issued or renewed on or after 29 July 1, 2010. 30 3. The insurer shall collect the surcharges required in 31 subsection 2 and remit such charges to the department of 32 revenue for deposit in the emergency management trust fund. 33 4. The surcharges required in subsection 2 shall not be 34 considered premiums of the insurer; however, nonpayment of 35 -1- LSB 6172XC (2) 83 tm/nh 1/ 3

S.F. _____ a surcharge by the insured may be a valid reason for policy 1 cancellation. 2 5. Moneys in the emergency management trust fund shall be 3 used and distributed as follows: 4 a. Fifty percent of the available balance on June 30 of each 5 year shall be awarded by the division through a competitive 6 grant process to county emergency management commissions to 7 provide funding assistance for emergency mitigation projects. 8 In making awards of grants, the division shall consider whether 9 the application is consistent with local hazard mitigation 10 plans and maximizes the utilization of federal funds that 11 benefit the greatest number of citizens. Applications for 12 grants shall be submitted by July 1 of each year and the 13 division shall make grant awards by August 15 of each year. 14 b. Forty-five percent of the available balance on June 30 15 of each year shall be distributed to each county emergency 16 management commission that is in compliance with section 29C.9 17 on a per capita basis. Such moneys shall be used to provide 18 improved services and capabilities for preparedness, response, 19 and recovery programs. 20 c. Five percent of the available balance on June 30 of each 21 year may be used by the division for purposes of administering 22 this section. 23 6. a. By August 1 of each year, a county receiving moneys 24 from the trust fund under subsection 5, paragraph “a” , shall 25 submit a report to the division. The report shall include 26 information regarding the use of moneys received from the trust 27 fund during the previous fiscal year. 28 b. By October 15 of each year, the division shall submit 29 a report to the general assembly regarding the emergency 30 management trust fund. The report shall include financial 31 information regarding the moneys in the trust fund and 32 information regarding the number, amount, and type of 33 expenditures from the fund during the previous fiscal year. 34 7. The division shall adopt rules pursuant to chapter 17A 35 -2- LSB 6172XC (2) 83 tm/nh 2/ 3

S.F. _____ necessary for the administration of this section. 1 EXPLANATION 2 This bill creates an emergency management trust fund in 3 the state treasury under the control of the homeland security 4 and emergency management division of the department of public 5 defense for purposes of funding county emergency management 6 programs. Moneys in the trust fund are appropriated to the 7 division for the purposes provided in the bill. 8 The bill requires certain surcharges to be applied to 9 certain types of insurance policies. The surcharges are 10 collected by the insurer, remitted to the department of 11 revenue, and deposited in the emergency management trust fund. 12 The types of policies on which surcharges will be applied 13 include individual renter’s insurance policies; homeowner’s, 14 mobile homeowner’s, and condominium unit owner’s insurance 15 policies; and commercial fire, commercial multiple peril, 16 and business owner’s insurance policies. The surcharges are 17 applied to such policies both issued and renewed on or after 18 July 1, 2010. The bill prohibits the surcharges from being 19 considered premiums; however, nonpayment of such surcharges may 20 be a valid reason for policy cancellation. 21 The bill provides that 50 percent of the available balance 22 of the trust fund on June 30 of each year shall be awarded by 23 the division through a competitive grant process to county 24 emergency management commissions to provide funding assistance 25 for emergency mitigation projects. The bill provides that 45 26 percent of the available balance on June 30 of each year shall 27 be distributed to each county emergency management commission 28 that is in compliance with Code section 29C.9 on a per capita 29 basis for providing improved services and capabilities for 30 preparedness, response, and recovery programs. The bill 31 provides that 5 percent of the available balance on June 30 32 of each year may be used by the division for purposes of 33 administering the bill. 34 The bill includes reporting requirements. 35 -3- LSB 6172XC (2) 83 tm/nh 3/ 3