Section 1 of The bill creates the natural disaster mitigation enterprise (enterprise). The enterprise collects imposes a fee on insurance companies that offer certain insurance policies and uses the fee revenue to finance the natural disaster mitigation grant program and provide local governments technical assistance on natural disaster mitigation. The enterprise awards natural disaster mitigation grants to assist local governments in implementing in the implementation of resilience and natural disaster mitigation measures and to assist entities that apply for federal grants that require matching funds and are dedicated to assisting in the implementation of pre-disaster natural disaster mitigation measures. Section 2 sets the fee at $1.25 of every $1,000 in insurance premiums collected on certain policies by the insurance companies that offer those insurance policies. The fee imposed by the enterprise is collected annually by the division of insurance on behalf of the enterprise. For an insurer, the fee is equal to $2 multiplied by the number of certain policies or contracts of insurance held by the insurer that cover property or risks in the state. These policies include:
- Allied lines;
- Private crop;
- Farmers multiple peril;
- Homeowners multiple peril; and
- Commercial multiple peril.
The board of directors of the enterprise shall submit a report by July 1 of each year to the committees of reference of the general assembly to which the department of public safety is assigned regarding the grant program. The enterprise and the fee are repealed, effective January 1, 2030.
(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)