SSB 3187 (LSB 6172XC (2) 83)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON QUIRMBACH)

A BILL FOR

An Act creating an emergency management trust fund and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  29C.8B  Emergency management trust fund.
   1.  An emergency management trust fund is created in the state treasury under the control of the homeland security and emergency management division for purposes of funding county emergency management programs. The trust fund shall consist of surcharges imposed pursuant to subsection 2, moneys appropriated by the general assembly, and moneys available to and obtained or accepted by the division from the United States or private sources for placement in the trust fund. Moneys in the trust fund are appropriated to the division for the purposes provided in this section. Section 8.33 shall not apply to moneys in the trust fund. Notwithstanding section 12C.7, moneys earned as income or interest from the trust fund shall remain in the trust fund until expended as provided in this section.
   2.  The following surcharges shall be applied, remitted to the department of revenue, and deposited in the emergency management trust fund:
   a.  An annual surcharge of one dollar per policy shall be charged on every individual renter’s insurance policy issued or renewed on or after July 1, 2010.
   b.  An annual surcharge of two dollars per policy shall be charged on every homeowner’s, mobile homeowner’s, and condominium unit owner’s insurance policy issued or renewed on or after July 1, 2010.
   c.  An annual surcharge of four dollars per policy shall be placed on every commercial fire, commercial multiple peril, and business owner’s insurance policy issued or renewed on or after July 1, 2010.
   3.  The insurer shall collect the surcharges required in subsection 2 and remit such charges to the department of revenue for deposit in the emergency management trust fund.
   4.  The surcharges required in subsection 2 shall not be considered premiums of the insurer; however, nonpayment of a surcharge by the insured may be a valid reason for policy cancellation.
   5.  Moneys in the emergency management trust fund shall be used and distributed as follows:
   a.  Fifty percent of the available balance on June 30 of each year shall be awarded by the division through a competitive grant process to county emergency management commissions to provide funding assistance for emergency mitigation projects. In making awards of grants, the division shall consider whether the application is consistent with local hazard mitigation plans and maximizes the utilization of federal funds that benefit the greatest number of citizens. Applications for grants shall be submitted by July 1 of each year and the division shall make grant awards by August 15 of each year.
   b.  Forty-five percent of the available balance on June 30 of each year shall be distributed to each county emergency management commission that is in compliance with section 29C.9 on a per capita basis. Such moneys shall be used to provide improved services and capabilities for preparedness, response, and recovery programs.
   c.  Five percent of the available balance on June 30 of each year may be used by the division for purposes of administering this section.
   6.  a.  By August 1 of each year, a county receiving moneys from the trust fund under subsection 5, paragraph “a”, shall submit a report to the division. The report shall include information regarding the use of moneys received from the trust fund during the previous fiscal year.
   b.  By October 15 of each year, the division shall submit a report to the general assembly regarding the emergency management trust fund. The report shall include financial information regarding the moneys in the trust fund and information regarding the number, amount, and type of expenditures from the fund during the previous fiscal year.
   7.  The division shall adopt rules pursuant to chapter 17A necessary for the administration of this section.
EXPLANATION
   This bill creates an emergency management trust fund in the state treasury under the control of the homeland security and emergency management division of the department of public defense for purposes of funding county emergency management programs. Moneys in the trust fund are appropriated to the division for the purposes provided in the bill. 
   The bill requires certain surcharges to be applied to certain types of insurance policies. The surcharges are collected by the insurer, remitted to the department of revenue, and deposited in the emergency management trust fund. The types of policies on which surcharges will be applied include individual renter’s insurance policies; homeowner’s, mobile homeowner’s, and condominium unit owner’s insurance policies; and commercial fire, commercial multiple peril, and business owner’s insurance policies. The surcharges are applied to such policies both issued and renewed on or after July 1, 2010. The bill prohibits the surcharges from being considered premiums; however, nonpayment of such surcharges may be a valid reason for policy cancellation.
   The bill provides that 50 percent of the available balance of the trust fund on June 30 of each year shall be awarded by the division through a competitive grant process to county emergency management commissions to provide funding assistance for emergency mitigation projects. The bill provides that 45 percent of the available balance on June 30 of each year shall be distributed to each county emergency management commission that is in compliance with Code section 29C.9 on a per capita basis for providing improved services and capabilities for preparedness, response, and recovery programs. The bill provides that 5 percent of the available balance on June 30 of each year may be used by the division for purposes of administering the bill.
   The bill includes reporting requirements.