SB 2802 Mississippi Senate · 2025 Regular Session

Fire Protection Fee; levy on retail sale of fireworks.

This bill redirects a portion of a 3% fee collected on nonadmitted insurance policies (not fireworks, as the title incorrectly states) to fund fire protection programs. The fee, paid by insurance producers on policies not covered by standard state programs, will be redirected before reaching the Mississippi Windstorm Underwriting Association. Starting July 2025, funds will be allocated annually to three specific fire department funds: $500,000 to the First Responders Health Fund, $12 million to the association, and remaining funds split between the Rural Fire Truck Fund (40%), Municipal Fire Protection Fund (30%), and County Volunteer Fire Department Fund (30%). This law, signed by the governor on April 7, 2025, directly affects fire departments in rural, municipal, and volunteer settings by providing dedicated funding streams.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Apr 2025

Senate Passage

Feb 2025

House Passage

Mar 2025

Signed into Law

Apr 2025

Introduced Feb 14, 2025 Signed Apr 23, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

As Passed the upper → Current version · 7 edits

MODERATE

This bill fundamentally shifts from increasing annual payments to fire protection funds to establishing a new revenue stream from nonadmitted insurance policy fees. The legislation creates a 3% fee on surplus lines insurance and mandates specific allocations of these funds to municipal, county, and volunteer fire departments, replacing previous fixed dollar amounts with dynamic fee-based distributions.

Scope change

The bill's scope expanded from simple annual payment increases to include new regulatory mechanisms for nonadmitted insurance fees and more complex fund distribution formulas based on association financial performance.

FISCAL

New 3% nonadmitted policy fee on surplus lines insurance premiums, replacing previous fixed annual payment amounts to fire protection funds

Complex multi-year diversion schedule directing nonadmitted policy fee revenues to Rural Fire Truck Fund, Municipal Fire Protection Fund, County Volunteer Fire Department Fund, and Mississippi First Responders Health and Safety Trust Fund based on association asset levels

Changed Section 83-1-37 and 83-1-39 from fixed annual payments to include variable portions of nonadmitted policy fee revenues

REQUIREMENT

New requirement for surplus lines insurance producers to collect and remit nonadmitted policy fees directly to the Mississippi Windstorm Underwriting Association

TIMELINE

Extended effective date from July 1, 2025 to June 30, 2025 repeal to indefinite operation starting July 1, 2025

DEFINITION

Clarified that nonadmitted policy fees are not considered premium and are not subject to premium taxes or commissions

ELIGIBILITY

Updated fund eligibility language to include both insurance rebate monies and nonadmitted policy fee monies for county fire department expenditures

Floor votes · Senate Feb 13, 2025 · House Mar 6, 2025

How they voted

51–0

Passed

Total votes 51

Feb 13, 2025

D Democratic16

16 Yea

100% Yea

R Republican35

35 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 23, 2025

Signed into law

Approved by Governor

executive

Apr 1, 2025

Lower · Passed

Conference Report Adopted

lower

Mar 31, 2025

Upper · Passed

Conference Report Filed

upper

Mar 6, 2025

Lower · Passed

Passed As Amended

lower

Mar 6, 2025

Lower · Passed

Amended

lower

Mar 4, 2025

Lower · Passed

Title Suff Do Pass As Amended

lower

Feb 17, 2025

Committee

Referred To Ways and Means

lower

Feb 14, 2025

Introduced

Transmitted To House

upper

Feb 13, 2025

Upper · Passed

Passed

upper

Feb 4, 2025

Upper · Passed

Title Suff Do Pass Comm Sub

upper

Jan 20, 2025

Committee

Referred To Finance

upper

1 primary · 0 co-sponsors