HB 1646

MISSISSIPPI LEGISLATURE
2026 Regular Session
To: State Affairs;
Appropriations A
By: Representatives Deweese,
Hale
House Bill 1646
(As Sent to Governor)
AN ACT TO AMEND SECTIONS 33-15-307 AND 33-15-308,
MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE DISASTER TRUST FUND, TO INCREASE
TRANSFER LIMITS, REFLECT PASSED AMENDMENTS, AND UPDATE TO CURRENT BUDGET
STANDARDS; TO CREATE THE LOCAL GOVERNMENTS DISASTER RECOVERY EMERGENCY LOAN
PROGRAM ACT; TO DEFINE TERMS; TO ESTABLISH THE LOCAL GOVERNMENTS DISASTER
RECOVERY EMERGENCY LOAN PROGRAM TO BE ADMINISTERED BY THE MISSISSIPPI EMERGENCY
MANAGEMENT AGENCY FOR THE PURPOSE OF ASSISTING LOCAL GOVERNMENTS IN RECOVERING FROM
CERTAIN FEDERALLY DECLARED DISASTERS BY ISSUING LOANS TO LOCAL GOVERNMENTS; TO
PROVIDE THAT NO LOAN SHALL BE ISSUED UNDER THE AUTHORITY OF THIS ACT AFTER A
CERTAIN DATE; TO SET FORTH THE POWERS AND DUTIES OF THE MISSISSIPPI EMERGENCY
MANAGEMENT AGENCY IN ADMINISTERING THIS ACT; TO REQUIRE THE MISSISSIPPI
EMERGENCY MANAGEMENT AGENCY TO AUTHORIZE AN ADMINISTRATOR TO CARRY OUT ANY OR
ALL OF THE POWERS AND DUTIES ENUMERATED IN THIS ACT; TO EXEMPT THE MISSISSIPPI
EMERGENCY MANAGEMENT AGENCY FROM ANY REQUIREMENT THAT THE PUBLIC PROCUREMENT
REVIEW BOARD APPROVE ANY PERSONAL OR PROFESSIONAL SERVICES CONTRACTS OR PRE-APPROVE
ANY SOLICITATION OF SUCH CONTRACTS FOR PURPOSES OF THIS ACT; TO CREATE A
SPECIAL FUND IN THE STATE TREASURY TO BE DESIGNATED AS THE LOCAL GOVERNMENTS
DISASTER RECOVERY EMERGENCY LOAN FUND; TO REQUIRE EACH RECIPIENT OF A LOAN
UNDER THE PROGRAM TO ESTABLISH A DEDICATED SOURCE OF REVENUE FOR REPAYMENT OF
THE LOAN IN THE EVENT THAT THE FEDERAL EMERGENCY MANAGEMENT AGENCY DECLINES TO
REIMBURSE AN EXPENDITURE FOR WHICH LOAN PROCEEDS WERE USED; TO PROVIDE THAT THE
EXECUTED LOAN AGREEMENT WILL OBLIGATE THE LOCAL GOVERNMENT TO REPAY THE
PROCEEDS OF THE LOAN IMMEDIATELY UPON RECEIPT OF REIMBURSEMENTS FROM THE
FEDERAL EMERGENCY MANAGEMENT AGENCY; TO PROVIDE THAT THE LOAN AGREEMENT SHALL
PROVIDE FOR THE REPAYMENT OF ALL FUNDS RECEIVED FROM THE EMERGENCY FUND WITHIN
NOT MORE THAN TWO YEARS FROM THE DATE THAT THE FEDERAL EMERGENCY MANAGEMENT
AGENCY DECLINED TO REIMBURSE FOR AN EXPENDITURE FOR WHICH LOAN PROCEEDS WERE
USED; TO REQUIRE A RECIPIENT LOCAL GOVERNMENT TO PLEDGE ITS SALES TAX REVENUE
DISTRIBUTION OR ITS HOMESTEAD EXEMPTION ANNUAL TAX LOSS REIMBURSEMENT, AS THE
CASE MAY BE, TO MEET THE REPAYMENT SCHEDULE CONTAINED IN THE LOAN AGREEMENT IN
THE EVENT THAT THE FEDERAL EMERGENCY MANAGEMENT AGENCY DECLINES TO REIMBURSE AN
EXPENDITURE FOR WHICH LOAN PROCEEDS WERE USED; TO AMEND SECTION 27-104-7,
MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ANY PERSONAL OR PROFESSIONAL SERVICE
CONTRACTS ENTERED INTO BY THE MISSISSIPPI EMERGENCY MANAGEMENT AGENCY UNDER
THIS ACT ARE EXEMPT FROM APPROVAL BY THE PUBLIC PROCUREMENT REVIEW BOARD; AND
FOR RELATED PURPOSES.
���� BE
IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
���� SECTION
1.� Section 33-15-307, Mississippi
Code of 1972, is amended as follows:
���� 33-15-307.�
(1)� The provisions of this article shall be invoked only pursuant to a state
of emergency declared by the Governor or an emergency or major disaster
declared by the President, or pursuant to an executive order of the Governor,
or administrative order of the director, in order to provide state or local
government resources and personnel in compliance with the provisions of the
Emergency Management Assistance Compact, Section 45-18-1 et seq., or in
nondeclared times for administrative and training costs associated with state
disaster response and recovery programs.� Each declaration shall cite the cause
for the declaration and define the area eligible for assistance and the type of
assistance to be provided.
���� (2)�
The Disaster Assistance Trust Fund is created as a special fund in the State
Treasury into which shall be paid any funds appropriated or otherwise made
available by the Legislature� for disaster assistance, any funds transferred
from the Working Cash-Stabilization Reserve Fund as provided under subsection
(5) of this section, any income from investment of the funds in the trust fund,
and federal reimbursement for administrative costs for management of the
Individuals and Households Program (IHP), the Public Assistance Program, the
Hazard Mitigation Program and Disaster Reservist Program.
���� (3)�
Income from investment of the funds in the trust fund, and all other funds
deposited therein pursuant to law, shall be available for expenditure, transfer
and allocation pursuant to this article.
���� (4)�
The Disaster Assistance Trust Fund shall be used only for the following
purposes:
��������� (a)�
The state's portion of the cost share for public assistance under a major
disaster declaration.
��������� (b)�
The state's cost share of the Individuals and Households Program (IHP) pursuant
to Section 33-15-209(1) under a major disaster declared by the President.
��������� (c)�
Administrative costs for managing the IHP.
��������� (d)�
Administrative costs for managing the Public Assistance Program.
��������� (e)�
The State Temporary Housing Program pursuant to Section 33-15-217 under a state
of emergency declared by the Governor.
��������� (f)�
Out-of-pocket expenses, including travel, per diem, overtime and other similar
expenses, of state or local agencies when so tasked by the Governor or the
director for emergency response under the provisions of Section 33-15-11(b)(7)
and current executive orders.� This includes actual emergency response and
recovery activities, and applies to mobilization and deployment of personnel from
state or local agencies to another state under the provisions of the Emergency
Management Assistance Compact.� At the
discretion of the director, this may include reimbursement of costs to local
governments for overtime and backfill of deployed personnel within the state
under the provisions of Section 33-15-15(a) and to jurisdictions who are
signatories of the Statewide Mutual Aid Compact (SMAC).
��������� (g)�
Costs incurred as a result of state active duty for the Mississippi National
Guard when so tasked by the Governor to provide support to other agencies and
local governments in a major disaster or emergency situation, or when tasked by
the Governor to provide support to another state under the provisions of the
Emergency Management Assistance Compact.
��������� (h)
�The state's portion of the cost share for hazard mitigation under a major
disaster declaration.
��������� (i)�
Administrative costs of the Hazard Mitigation Program.
��������� (j)�
Costs incurred as a result of the implementation of the Disaster Reservist
Program under a major disaster declaration.
��������� (k)�
Administrative costs of the Disaster Reservist Program.
��������� (l)�
Costs incurred as a result of the implementation of public assistance, and/or
individual assistance, and/or Disaster Reservist Program, and/or hazard mitigation,
and/or temporary housing under a Governor's state of emergency.
��������� (m)
 * * *The state's portion
of the cost share for public assistance under a major disaster declaration for
tornado or other storm damage to public facilities and infrastructure occurring
on November 10, 2002, as provided in Sections 1 through 16 of Chapter 3, Third
Extraordinary Session 2002 [Deleted].
��������� (n)�
Actual costs, including personnel call-back wages, base and overtime wages,
travel, per diem and other out-of-pocket expenses incurred by regional response
teams as a result of being mobilized or deployed when so tasked by the Governor
pursuant to Section 33-15-11(b)(7), or by the director for emergency response
pursuant to Section 33-15-15(a).
��������� (o)�
The state's portion of the cost share for public assistance under the
Presidential Declaration of Major Disaster for the State of Mississippi (FEMA-1604-DR)
dated August 29, 2005, for hurricane or other storm damage to public facilities
and infrastructure as a result of Hurricane Katrina, as provided in Section 3
of Chapter 538, Laws of 2006.
��������� (p)�
Costs incurred for alternative housing grants up to Two Hundred Fifty Thousand
Dollars ($250,000.00) per county, per event, to be administered by the
Mississippi Emergency Management Agency for materials only for repairs to
communities that do not qualify for Federal Emergency Management Agency
Individual Assistance Grants.
��������� (q)�
Costs incurred by the Mississippi Emergency Management Agency, approved by the
executive director, to assist municipalities and counties by allowing them to
apply and receive funds for debris removal support, which funds shall be
reimbursed to the Mississippi Emergency Management Agency at the date
determined after the federal disaster declaration.� The Mississippi Emergency
Management Agency shall adopt rules and regulations necessary to administer
this program.
���� (5)�
Whenever the director determines that funds are immediately needed in the
Disaster Assistance Trust Fund to provide for disaster assistance under this article,
he shall notify the Executive Director of the Department of Finance and
Administration of his determination and shall requisition the amount of funds
from the Working Cash-Stabilization Fund that are needed in the trust fund,
which shall be subject to the limitations set forth below in this subsection.�
At the same time he makes the requisition, the director shall notify the
Lieutenant Governor, the Speaker of the House of Representatives and the
respective Chairmen of the Senate Appropriations Committee, the Senate Finance
Committee, the House Appropriations Committee and the House Ways and Means
Committee of his determination of the need for the funds and the amount that he
has requisitioned.� Upon receipt of such a requisition from the director, the
Executive Director of the Department of Finance and Administration shall
ascertain if the amount requisitioned is available in the Working Cash-Stabilization
Reserve Fund and is within the limitations set forth below in this subsection
and, if it is, he shall transfer that amount from the Working Cash-Stabilization
Reserve Fund to the trust fund.� If the amount requisitioned is more than the
amount available in the Working Cash-Stabilization Fund or above the
limitations set forth below in this subsection, the executive director shall
transfer the amount that is available within the limitations.� The maximum
amount that may be transferred from the Working Cash-Stabilization Reserve Fund
and/or any other special-source funds maintained in the State Treasury
to the trust fund for any disaster or disasters occurrence shall be * * *One Million Dollars ($1,000,000.00) Two
Million Five Hundred Thousand Dollars ($2,500,000.00) and the maximum
amount that may be transferred during any fiscal year shall be * * *Two Million Dollars ($2,000,000.00) Five
Million Dollars ($5,000,000.00).
���� (6)�
Unexpended state funds in the Disaster Assistance Trust Fund at the end of a
fiscal year shall not lapse into the State General Fund but shall remain in the
trust fund for use under this article for as long as the funds are needed for
the particular purpose for which they were appropriated, deposited or
transferred into the trust fund.� After any state funds in the trust fund are
no longer needed for the particular purpose for which they were appropriated,
deposited or transferred into the trust fund, the director may use those funds
for any other purpose under this article for which they currently are needed
and for which other funds are not available.� If there is no current need for
such funds for any purpose under this article, the funds and the income earned
from the investment of the funds shall be transferred back to the particular
fund or funds in the State Treasury from which they were appropriated or
transferred into the trust fund, upon certification of the director to the
Executive Director of the Department of Finance and Administration that the
funds are not currently needed; however, if such funds are derived from the
proceeds of general obligation bonds issued by the state under Section 3 of
Chapter 538, Laws of 2006, such excess funds and the income earned from such
funds shall be utilized to pay the debt service on such bonds.
���� SECTION
2.� Section 33-15-308, Mississippi
Code of 1972, is amended as follows:
���� 33-15-308.�
It is the intention of the Legislature
that whenever the Director of the Mississippi Emergency Management Agency
determines that funds are immediately needed in the Disaster Assistance Trust
Fund to provide for disaster assistance under this section, he shall notify the
Executive Director of the Department of Finance and Administration of his
determination and shall requisition the amount of funds from the Working Cash-Stabilization
Reserve Fund (Fund No. 3992) and/or * * *the Budget Contingency Fund (Fund No. 3177) any
other special-source funds maintained in the State Treasury that are needed
in the trust fund, which shall be subject to the limitations set forth below in
this section.� At the same time he makes the requisition, the director shall
notify the Lieutenant Governor, the Speaker of the House of Representatives and
the respective Chairmen of the Senate Appropriations Committee, the Senate
Finance Committee, the House Appropriations Committee and the House Ways and
Means Committee of his determination of the need for the funds and the amount
that he has requisitioned.� Upon receipt of such a requisition from the
director, the Executive Director of the Department of Finance and
Administration shall ascertain if the amount requisitioned is available in the
Working Cash-Stabilization Reserve Fund (Fund No. 3992) and/or * * *the Budget Contingency Fund (Fund No. 3177) any
other special-source funds maintained in the State Treasury and is within
the limitations set forth below in this section and, if it is, he shall
transfer that amount from the Working Cash-Stabilization Reserve Fund (Fund No.
3992) and/or * * *the
Budget Contingency Fund (Fund No. 3177) any other special-source
funds maintained in the State Treasury to the trust fund.� If the amount requisitioned
is more than the amount available in the Working Cash-Stabilization Reserve
Fund (Fund No. 3992) and/or * * *the Budget Contingency Fund (Fund No. 3177) any
other special-source funds maintained in the State Treasury or above the
limitations set forth below in this section, the executive director shall
transfer the amount that is available within the limitations.� The maximum
amount that may be transferred from the Working Cash-Stabilization Reserve Fund
(Fund No. 3992) and/or * * *the
Budget Contingency Fund (Fund No. 3177) any other special-source
funds maintained in the State Treasury to the trust fund for any one (1)
disaster occurrence shall be * * *Five Hundred Thousand Dollars ($500,000.00) Two
Million Five Hundred Thousand Dollars ($2,500,000.00) and the maximum
amount that may be transferred during any fiscal year shall be * * *One Million Dollars ($ * * *1,000,000.00)
Five Million Dollars ($5,000,000.00).
���� It
is the intention of the Legislature, that during the subsequent legislative session,
consideration shall be given to provide an appropriation equal to the amount
transferred from the Working Cash-Stabilization Reserve Fund (Fund No. 3992)
and/or * * *the Budget
Contingency Fund (Fund No. 3177) any other special-source funds
maintained in the State Treasury to the Disaster Assistance Trust Fund
under the provisions of this section as repayment to the Working Cash-Stabilization
Reserve Fund (Fund No. 3992) and/or the Budget Contingency Fund.
���� SECTION 3.�
Sections 3 through 8 of this act shall be known and may be cited as the "Local Governments Disaster Recovery Emergency Loan Program
Act."
���� SECTION 4.� As
used in Sections 3 through 8 of this act, the following terms have the meanings
as defined in this section unless the context clearly requires otherwise:
��������� (a)� "Agency"
means the Mississippi Emergency Management Agency.
��������� (b)�
"Disaster" means the federally declared disaster Number EM-3640/DR-4899-MS,
for the winter storm on January 23 through 27, 2026.
��������� (c)� "Eligible
expenditure(s)" means seventy-five percent (75%) of expenses incurred by a
local government that are reimbursable from the Federal Emergency Management
Agency under the public assistance category A through F for that local
government within the federally declared disaster area.� For expenses of a
local government under the public assistance category F, any expenditures for
utility co-operatives shall only be incurred for government utility co-operatives.�
The term does not include expenses incurred for losses that are otherwise
covered as insured losses or covered by donations.
��������� (d)� "Emergency
fund" means the 2026 Local Governments Disaster Recovery Emergency Loan
Fund created in Section 6 of this act.
��������� (e)� "Federal
disaster declaration" means the presidential declaration, EM-3640/DR-4899-MS,
providing assistance in response and recovery to the disaster.
��������� (f)� "Federally
declared disaster area" means those counties designated in the federal
disaster declaration or added to the federal disaster declaration by amendment
of the Federal Emergency Management Agency.
��������� (g)� "Loan"
means a disbursement of public funds to a principal borrower under Sections 3
through 8 of this act that is required to be repaid to the emergency fund by
the borrower in accordance with the terms of an executed loan agreement.
��������� (h)� "Local
government" means a county, municipality or political subdivision thereof,
within the bounds of the federally declared disaster area.
��������� (i)� "Eligible
borrower" means a county, municipality or political subdivision thereof,
within the bounds of the federally declared disaster area that has applied for
assistance through the Federal Emergency Management Agency.
��������� (j)�
"Program" means the 2026 Local Governments Disaster Recovery
Emergency Loan Program established in Section 5 of this act.
���� SECTION 5.�
(1)� (a)� There is established the 2026 Local Governments Disaster Recovery
Emergency Loan Program to be administered by the Mississippi Emergency
Management Agency for the purpose of assisting local governments in recovering
from the disaster by issuing loans to local governments.
��������� (b)� The agency shall
act as quickly as is practicable and prudent in deciding on any loan request
that it receives.� Loans from the emergency fund shall be made to eligible
local governments, as set forth in an executed loan agreement for payment or
reimbursement of the eligible expenditure(s) of the local government as
determined by the agency.� The agency shall establish a maximum amount for any
loan from the emergency fund in order to provide for broad and equitable
participation in the program.
��������� (c)� Eligible borrowers
may apply for a loan pursuant to the policies and processes established by the
agency.
��������� (d)� No loan shall be
issued under Sections 3 through 8 of this act after July 1, 2027.� The term of
any loan issued under Sections 3 through 8 of this act shall not exceed a
period of five (5) years.
���� (2)� (a)� Loan proceeds may
be used by the recipient local government for eligible expenditure(s).
��������� (b)� Loans issued under
this act shall be at a zero percent (0%) interest rate until all Federal
Emergency Management Agency reimbursements have been processed and applied to
the loan balance.� After such time, a three percent (3%) per annum fixed
interest rate shall be charged to cover the administrative costs to service the
loan.
���� (3)� In administering
Sections 3 through 8 of this act, the agency shall have the following powers
and duties:
��������� (a)� To supervise the
use of all funds and loan proceeds made available under Sections 3 through 8 of
this act for local governments to recover from the disaster;
��������� (b)� To promulgate
rules and regulations, to make variances and exceptions thereto, and to
establish procedures in accordance with this act for the implementation of the
program;
��������� (c)� To ensure the
funds made available under Sections 3 through 8 of this act to a local
government provide for a distribution of funds that ensures broad and equitable
participation among the local governments affected by the disaster;
��������� (d)� To maintain, in accordance
with generally accepted government accounting standards, an accurate record of
all monies in the emergency fund made available to local governments under
Sections 3 through 8 of this act and the expenditures incurred by each
recipient;
��������� (e)� To establish
policies, procedures and requirements concerning viability and financial
capability to repay loans that may be used in approving loans available under
Sections 3 through 8 of this act;
��������� (f)� To contract for
those facilities and staff needed to administer and provide routine management
for the funds and loan program;
��������� (g)� To require
recipient local governments to consult with the county's emergency management
agency and/or an authorized representative of the Mississippi Emergency
Management Agency;
��������� (h)� To ensure the
dedicated source of revenue as collateral by a borrower is sufficient to repay
the loan within the loan period;
��������� (i)� To require a
rigorous documentation process to ensure that state funds are utilized in a
manner that maximizes eventual federal reimbursement; and
��������� (j)� To file with the
Legislature reports, no later than October 1 of each year and no later than
February 1 of each year, detailing how monies in the emergency fund were
expended during the preceding year by each participating local government by
period, the number of loans approved and disbursed, the amount of expenditures
incurred by each loan recipient, the current balance of any outstanding loans,
the specific projects of each loan recipient with a description of the project
and the recipient entities, the amounts deposited into the emergency fund under
Section 7(4) of this act by loan, and the number of loans repaid under Sections
3 through 8 of this act.
���� (4)� For efficient and
effective administration of the program and emergency fund, the agency shall
authorize an administrator to carry out any or all of the powers and duties
enumerated above.
���� (5)� In carrying out its
responsibilities under Sections 3 through 8 of this act, for any contract under
the purview of the Public Procurement Review Board, the agency shall be exempt
from any requirement that the Public Procurement Review Board approve any
personal or professional services contracts or pre-approve any solicitation of
such contracts.
���� (6)� In carrying out its
responsibilities under Sections 3 through 8 of this act, for any policy,
procedure, and/or regulation produced by the agency, the agency shall be exempt
from all requirements under the Mississippi Administrative Procedures Law.
���� SECTION 6.�
(1)� There is created a special fund in the State Treasury to be designated as
the 2026 Local Governments Disaster Recovery Emergency Loan Fund.� The
emergency fund shall consist of any monies deposited to the credit of the
emergency fund.� The emergency fund may receive deposits by the State
Treasurer, bond proceeds, grants, gifts, donations or funds from any source,
public or private.� Except as otherwise provided in this section, the emergency
fund shall be credited with all repayments of principal and interest derived
from loans made from the emergency fund.� Unexpended amounts remaining in the
emergency fund at the end of a fiscal year shall not lapse into the State
General Fund.� Any interest earned on amounts in the emergency fund shall be
deposited to the credit of the fund.
���� (2)� The monies in the
emergency fund shall only be expended subject to appropriation by the
Legislature.� Monies in the emergency fund shall only be disbursed for purposes
authorized under Sections 3 through 8 of this act.� Except as otherwise
provided in this act, all monies deposited in the emergency fund, including
loan repayments and interest earned on those repayments, shall be used only for
providing loans to local governments as the agency deems appropriate.� Subject
to the availability of funds, loan proceeds under this act shall be disbursed
to local governments in one or more installments or on a rolling basis, in the
discretion of the agency.
���� (3)� In addition to any
other purpose authorized under Sections 3 through 8 of this act, subject to
appropriation by the Legislature, any amounts in the emergency fund may be used
to defray the reasonable costs of administering the emergency fund and
conducting activities under this act in an amount not to exceed one-half of one
percent (0.5%) of loan proceeds.
���� SECTION 7.�
(1)� (a)� Each recipient of a loan under the program shall establish a
dedicated source of revenue for repayment of the loan in the event that the
Federal Emergency Management Agency disallows a reimbursement request for an expenditure
for which loan proceeds were used.� Before any local government shall receive
any loan, it shall have executed with the Department of Revenue and the agency
a loan agreement evidencing that loan and the dedicated source of revenue.
��������� (b)� All borrowers must
agree to pay an amount not greater than twelve and one-half percent (12.5%) of
the matching funds required by the Federal Emergency Management Agency for the
receipt of federal grant funds.
��������� (c)� The executed loan
agreement shall obligate the local government to repay the proceeds of the loan
to the agency receipt of any reimbursements from the Federal Emergency
Management Agency.
��������� (d)� In the event that
the Federal Emergency Management Agency disallows a reimbursement request for
an expenditure for which loan proceeds were used, the repayment schedule in
each loan agreement shall provide for (i) monthly payments, (ii) semiannual
payments, or (iii) other periodic payments.� The loan
agreement shall provide for the repayment of all funds received from the
emergency fund to the agency within not more than two (2) years from the date
that the Federal Emergency Management Agency disallowed a reimbursement request
for an expenditure for which loan proceeds were used.� The Department of
Revenue shall withhold semiannually from counties and monthly from
municipalities from the amount to be remitted to the county or municipality, a
sum equal to the next repayment as provided in the loan agreement in the event
that the Federal Emergency Management Agency disallows a reimbursement request
for an expenditure for which loan proceeds were used and the county or
municipality has pledged such revenue.
���� (2)� A county that receives
a loan from the emergency fund shall pledge for repayment of the loan any part
of the use tax to which it may be entitled under Chapter 67, Title 27,
Mississippi Code of 1972, or any other revenue source to which it is entitled
by law, as may be required to meet the repayment schedule contained in the loan
agreement in the event that the Federal Emergency Management Agency disallows a
reimbursement request for an expenditure for which loan proceeds were used.
���� (3)� A municipality that
receives a loan from the emergency fund shall pledge for repayment of the loan
any part of the sales tax revenue distribution to which it may be entitled
under Section 27-65-75, or any other revenue source to which it is entitled by
law, as may be required to meet the repayment schedule contained in the loan
agreement in the event that the Federal Emergency Management Agency disallows a
reimbursement request for an expenditure for which loan proceeds were used.
���� (4)� Upon receipt of any
funds in repayment from the borrower and the Department of Revenue to the
credit of a borrower for loan obligations under Sections 3 through 8 of this
act, the agency shall immediately deposit such funds into the emergency fund.
���� (5)� The State Auditor, upon
request of the agency, shall audit the receipts and expenditures of a local
government whose loan repayments appear to be in arrears, and if the Auditor
finds the local government is in arrears in those repayments, the Auditor shall
immediately notify the executive director of the agency and the State Fiscal
Officer, who may take any action as may be necessary to enforce the terms of
the loan agreement, including liquidation and enforcement of the dedicated
source of revenue given as security for repayment of the loan and the
withholding of all future payments to the county of homestead exemption annual
tax loss reimbursements under Section 27-33-77 and all sums allocated to the
county or the municipality under Section 27-65-75 until such time as the county
or the municipality is again current in its loan repayments as certified by the
agency.
���� SECTION 8.� Section
27-104-7, Mississippi Code of 1972, is amended as follows:
���� 27-104-7.� (1)� (a)�
There is created the Public Procurement Review Board, which shall be
reconstituted on January 1, 2018, and shall be composed of the following
members:
������������� (i)� Three (3)
individuals appointed by the Governor with the advice and consent of the
Senate;
������������� (ii)� Two (2)
individuals appointed by the Lieutenant Governor with the advice and consent of
the Senate; and
������������� (iii)� The
Executive Director of the Department of Finance and Administration, serving as
an ex officio and nonvoting member.
��������� (b)� The initial terms
of each appointee shall be as follows:
������������� (i)� One (1) member
appointed by the Governor to serve for a term ending on June 30, 2019;
������������� (ii)� One (1)
member appointed by the Governor to serve for a term ending on June 30, 2020;
������������� (iii)� One (1)
member appointed by the Governor to serve for a term ending on June 30, 2021;
������������� (iv)� One (1)
member appointed by the Lieutenant Governor to serve for a term ending on June
30, 2019; and
������������� (v)� One (1) member
appointed by the Lieutenant Governor to serve for a term ending on June 30,
2020.
���� After the expiration of the
initial terms, all appointed members' terms shall be for a period of four (4)
years from the expiration date of the previous term, and until such time as the
member's successor is duly appointed and qualified.
��������� (c)� When appointing
members to the Public Procurement Review Board, the Governor and Lieutenant
Governor shall take into consideration persons who possess at least five (5)
years of management experience in general business, health care or finance for
an organization, corporation or other public or private entity.� Any person, or
any employee or owner of a company, who receives any grants, procurements or
contracts that are subject to approval under this section shall not be
appointed to the Public Procurement Review Board.� Any person, or any employee
or owner of a company, who is a principal of the source providing a personal or
professional service shall not be appointed to the Public Procurement Review
Board if the principal owns or controls a greater than five percent (5%)
interest or has an ownership value of One Million Dollars ($1,000,000.00) in
the source's business, whichever is smaller.� No member shall be an officer or
employee of the State of Mississippi while serving as a voting member on the
Public Procurement Review Board.
��������� (d)� Members of the
Public Procurement Review Board shall be entitled to per diem as authorized by
Section 25-3-69 and travel reimbursement as authorized by Section 25-3-41.
��������� (e)� The members of the
Public Procurement Review Board shall elect a chair from among the membership,
and he or she shall preside over the meetings of the board.� The board shall
annually elect a vice chair, who shall serve in the absence of the chair.� No
business shall be transacted, including adoption of rules of procedure, without
the presence of a quorum of the board.� Three (3) members shall be a quorum.�
No action shall be valid unless approved by a majority of the members present
and voting, entered upon the minutes of the board and signed by the chair.�
Necessary clerical and administrative support for the board shall be provided
by the Department of Finance and Administration.� Minutes shall be kept of the proceedings
of each meeting, copies of which shall be filed on a monthly basis with the
chairs of the Accountability, Efficiency and Transparency Committees of the
Senate and House of Representatives and the chairs of the Appropriations
Committees of the Senate and House of Representatives.
���� (2)� The Public Procurement
Review Board shall have the following powers and responsibilities:
��������� (a)� Approve all
purchasing regulations governing the purchase or lease by any agency, as
defined in Section 31-7-1, of commodities and equipment, except computer
equipment acquired pursuant to Sections 25-53-1 through 25-53-29;
��������� (b)� Adopt regulations
governing the approval of contracts let for the construction and maintenance of
state buildings and other state facilities as well as related contracts for
architectural and engineering services.
���� The provisions of this
paragraph (b) shall not apply to such contracts involving buildings and other
facilities of state institutions of higher learning which are self-administered
as provided under this paragraph (b) or Section 37-101-15(m);
��������� (c)� Adopt regulations
governing any lease or rental agreement by any state agency or department,
including any state agency financed entirely by federal funds, for space
outside the buildings under the jurisdiction of the Department of Finance and
Administration.� These regulations shall require each agency requesting to
lease such space to provide the following information that shall be published
by the Department of Finance and Administration on its website:� the agency to
lease the space; the terms of the lease; the approximate square feet to be
leased; the use for the space; a description of a suitable space; the general
location desired for the leased space; the contact information for a person
from the agency; the deadline date for the agency to have received a lease
proposal; any other specific terms or conditions of the agency; and any other
information deemed appropriate by the Division of Real Property Management of
the Department of Finance and Administration or the Public Procurement Review
Board.� The information shall be provided sufficiently in advance of the time
the space is needed to allow the Division of Real Property Management of the
Department of Finance and Administration to review and preapprove the lease
before the time for advertisement begins;
��������� (d)� Adopt, in its
discretion, regulations to set aside at least five percent (5%) of anticipated
annual expenditures for the purchase of commodities from minority businesses;
however, all such set-aside purchases shall comply with all purchasing
regulations promulgated by the department and shall be subject to all bid
requirements.� Set-aside purchases for which competitive bids are required
shall be made from the lowest and best minority business bidder; however, if no
minority bid is available or if the minority bid is more than two percent (2%)
higher than the lowest bid, then bids shall be accepted and awarded to the
lowest and best bidder.� However, the provisions in this paragraph shall not be
construed to prohibit the rejection of a bid when only one (1) bid is
received.� Such rejection shall be placed in the minutes.� For the purposes of
this paragraph, the term "minority business" means a business which
is owned by a person who is a citizen or lawful permanent resident of the
United States and who is:
������������� (i)� Black:� having
origins in any of the black racial groups of Africa;
������������� (ii)� Hispanic:� of
Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese
culture or origin regardless of race;
������������� (iii)� Asian-American:�
having origins in any of the original people of the Far East, Southeast Asia,
the Indian subcontinent, or the Pacific Islands;
������������� (iv)� American
Indian or Alaskan Native:� having origins in any of the original people of
North America; or
������������� (v)� Female;
��������� (e)� In consultation
with and approval by the Chairs of the Senate and House Public Property
Committees, approve leases, for a term not to exceed eighteen (18) months,
entered into by state agencies for the purpose of providing parking
arrangements for state employees who work in the Woolfolk Building, the Carroll
Gartin Justice Building or the Walter Sillers Office Building;
��������� (f)� (i)� Except as
otherwise provided in subparagraph (ii) of this paragraph, promulgate rules and
regulations governing the solicitation and selection of contractual services
personnel, including personal and professional services contracts for any form
of consulting, policy analysis, public relations, marketing, public affairs,
legislative advocacy services or any other contract that the board deems
appropriate for oversight, with the exception of:
������������������ 1.� Any
personal service contracts entered into by any agency that employs only
nonstate service employees as defined in Section 25-9-107(c);
������������������ 2.� Any
personal service contracts entered into for computer or information technology-related
services governed by the Mississippi Department of Information Technology
Services;
������������������ 3.� Any
personal service contracts entered into by the individual state institutions of
higher learning;
������������������ 4.� Any
personal service contracts entered into by the Mississippi Department of
Transportation;
������������������ 5.� Any
personal service contracts entered into by the Department of Human Services
through June 30, 2019, which the Executive Director of the Department of Human
Services determines would be useful in establishing and operating the
Department of Child Protection Services;
������������������ 6.� Any
personal service contracts entered into by the Department of Child Protection
Services through June 30, 2019;
������������������ 7.� Any
contracts for entertainers and/or performers at the Mississippi State
Fairgrounds entered into by the Mississippi Fair Commission;
������������������ 8.� Any
contracts entered into by the Department of Finance and Administration when
procuring aircraft maintenance, parts, equipment and/or services;
������������������ 9.� Any
contract entered into by the Department of Public Safety for service on
specialized equipment and/or software required for the operation of such
specialized equipment for use by the Office of Forensics Laboratories;
������������������ 10.� Any
personal or professional service contract entered into by the Mississippi
Department of Health or the Department of Revenue solely in connection with
their respective responsibilities under the Mississippi Medical Cannabis Act
from February 2, 2022, through June 30, 2026;
������������������ 11.� Any
contract for attorney, accountant, actuary auditor, architect, engineer,
anatomical pathologist, or utility rate expert services;
������������������ 12.� Any
personal service contracts approved by the Executive Director of the Department
of Finance and Administration and entered into by the Coordinator of Mental
Health Accessibility through June 30, 2022;
������������������ 13.� Any
personal or professional services contract entered into by the State Department
of Health in carrying out its responsibilities under the ARPA Rural Water
Associations Infrastructure Grant Program through June 30, 2026;
������������������ 14.� And any
personal or professional services contract entered into by the Mississippi
Department of Environmental Quality in carrying out its responsibilities under
the Mississippi Municipality and County Water Infrastructure Grant Program Act
of 2022, through June 30, 2026;
������������������ 15.� Any
personal or professional services contract entered into by an agency for the
design, operation or maintenance of museum exhibits.� An agency making a
purchase under this exemption shall publicly advertise a Request for
Qualifications but shall be otherwise exempt.� Any contracts arising from the
use of this exemption must be approved by the Public Procurement Review Board
prior to execution by the agency;
���� ������������� 16.� Any
personal or professional services contract entered into by the Mississippi
Department of Environmental Quality in carrying out its responsibilities under
Section 49-2-13(l).� This item 16 shall stand repealed on July 1, 2028; * * * and
������������������ 17.� Any
contract entered into by the State Department of Health for service on
specialized equipment and/or software required for the operation of such
specialized equipment for the use by the Public Health Laboratory * * *.; and
������������������ 18. �Any
contract entered into by the Mississippi Emergency Management Agency for
personal or professional services under Section 5(5) of this act, as well as
the fair value or financial value of any contract entered into under Section
5(5) of this act.
���� Any such rules and
regulations shall provide for maintaining continuous internal audit covering
the activities of such agency affecting its revenue and expenditures as
required under Section 7-7-3(6)(d).� Any rules and regulation changes related
to personal and professional services contracts that the Public Procurement
Review Board may propose shall be submitted to the Chairs of the
Accountability, Efficiency and Transparency Committees of the Senate and House
of Representatives and the Chairs of the Appropriation Committees of the Senate
and House of Representatives at least fifteen (15) days before the board votes
on the proposed changes, and those rules and regulation changes, if adopted,
shall be promulgated in accordance with the Mississippi Administrative
Procedures Act.
������������� (ii)� From and
after July 1, 2024, the Public Procurement Review Board shall promulgate rules
and regulations that require the Department of Finance and Administration to
conduct personal and professional services solicitations as provided in
subparagraph (i) of this paragraph for those services in excess of Seventy-five Thousand Dollars ($75,000.00) for the
Department of Marine Resources, the Department of Wildlife, Fisheries and
Parks, the Mississippi Emergency Management Agency and the Mississippi Development
Authority, with assistance to be provided from these entities.� Any powers that
have been conferred upon agencies in order to comply with the provisions of
this section for personal and professional services solicitations shall be
conferred upon the Department of Finance and Administration to conduct personal
and professional services solicitations for the Department of Marine Resources,
the Department of Wildlife, Fisheries and Parks, the Mississippi Emergency
Management Agency and the Mississippi Development Authority for those services
in excess of Seventy-five Thousand Dollars ($75,000.00).� The Department of
Finance and Administration shall make any submissions that are required to be
made by other agencies to the Public Procurement Review Board for the
Department of Marine Resources, the Department of Wildlife, Fisheries and
Parks, the Mississippi Emergency Management Agency and the Mississippi
Development Authority.
���� The provisions of this
subparagraph (ii) shall stand repealed on June 30, 2027;
��������� (g)� Approve all
personal and professional services contracts involving the expenditures of
funds in excess of Seventy-five Thousand Dollars ($75,000.00), except as
provided in paragraph (f) of this subsection (2) and in subsection (8);
��������� (h)� Develop mandatory
standards with respect to contractual services personnel that require
invitations for public bid, requests for proposals, record keeping and
financial responsibility of contractors.� The Public Procurement Review Board
shall, unless exempted under this paragraph (h) or under paragraph (i) or (o)
of this subsection (2), require the agency involved to submit the procurement
to a competitive procurement process, and may reserve the right to reject any
or all resulting procurements;
��������� (i)� Prescribe certain
circumstances by which agency heads may enter into contracts for personal and
professional services without receiving prior approval from the Public
Procurement Review Board.� The Public Procurement Review Board may establish a
preapproved list of providers of various personal and professional services for
set prices with which state agencies may contract without bidding or prior
approval from the board;
������������� (i)� Agency
requirements may be fulfilled by procuring services performed incident to the
state's own programs.� The agency head shall determine in writing whether the
price represents a fair market value for the services.� When the procurements
are made from other governmental entities, the private sector need not be
solicited; however, these contracts shall still be submitted for approval to
the Public Procurement Review Board * * *.;
������������� (ii)� Contracts
between two (2) state agencies, both under Public Procurement Review Board
purview, shall not require Public Procurement Review Board approval.� However,
the contracts shall still be entered into the enterprise resource planning
system;
��������� (j)� Provide standards
for the issuance of requests for proposals, the evaluation of proposals
received, consideration of costs and quality of services proposed, contract
negotiations, the administrative monitoring of contract performance by the
agency and successful steps in terminating a contract;
��������� (k)� Present
recommendations for governmental privatization and to evaluate privatization
proposals submitted by any state agency;
��������� (l)� Authorize personal
and professional service contracts to be effective for more than one (1) year
provided a funding condition is included in any such multiple year contract,
except the State Board of Education, which shall have the authority to enter
into contractual agreements for student assessment for a period up to ten (10)
years.� The State Board of Education shall procure these services in accordance
with the Public Procurement Review Board procurement regulations;
��������� (m)� Request the State
Auditor to conduct a performance audit on any personal or professional service
contract;
��������� (n)� Prepare an annual
report to the Legislature concerning the issuance of personal and professional
services contracts during the previous year, collecting any necessary
information from state agencies in making such report;
��������� (o)� Develop and
implement the following standards and procedures for the approval of any sole
source contract for personal and professional services regardless of the value
of the procurement:
������������� (i)� For the
purposes of this paragraph (o), the term "sole source" means only one
(1) source is available that can provide the required personal or professional
service.
������������� (ii)� An agency
that has been issued a binding, valid court order mandating that a particular
source or provider must be used for the required service must include a copy of
the applicable court order in all future sole source contract reviews for the
particular personal or professional service referenced in the court order.
������������� (iii)� Any agency
alleging to have a sole source for any personal or professional service, other
than those exempted under paragraph (f) of this subsection (2) and subsection
(8), shall publish on the procurement portal website established by Sections 25-53-151
and 27-104-165, for at least fourteen (14) days, the terms of the proposed
contract for those services.� In addition, the publication shall include, but
is not limited to, the following information:
������������������ 1.� The
personal or professional service offered in the contract;
������������������ 2.� An
explanation of why the personal or professional service is the only one that
can meet the needs of the agency;
������������������ 3.� An
explanation of why the source is the only person or entity that can provide the
required personal or professional service;
������������������ 4.� An
explanation of why the amount to be expended for the personal or professional
service is reasonable; and
��������� ��������� 5.� The
efforts that the agency went through to obtain the best possible price for the
personal or professional service.
������������� (iv)� If any person
or entity objects and proposes that the personal or professional service
published under subparagraph (iii) of this paragraph (o) is not a sole source
service and can be provided by another person or entity, then the objecting
person or entity shall notify the Public Procurement Review Board and the
agency that published the proposed sole source contract with a detailed
explanation of why the personal or professional service is not a sole source
service.
������������� (v)� 1.� If the
agency determines after review that the personal or professional service in the
proposed sole source contract can be provided by another person or entity, then
the agency must withdraw the sole source contract publication from the
procurement portal website and submit the procurement of the personal or
professional service to an advertised competitive bid or selection process.
������������������ 2.� If the
agency determines after review that there is only one (1) source for the
required personal or professional service, then the agency may appeal to the
Public Procurement Review Board.� The agency has the burden of proving that the
personal or professional service is only provided by one (1) source.
������������������ 3.� If the
Public Procurement Review Board has any reasonable doubt as to whether the
personal or professional service can only be provided by one (1) source, then
the agency must submit the procurement of the personal or professional service
to an advertised competitive bid or selection process.� No action taken by the
Public Procurement Review Board in this appeal process shall be valid unless
approved by a majority of the members of the Public Procurement Review Board
present and voting.
������������� (vi)� The Public
Procurement Review Board shall prepare and submit a quarterly report to the
House of Representatives and Senate Accountability, Efficiency and Transparency
Committees that details the sole source contracts presented to the Public
Procurement Review Board and the reasons that the Public Procurement Review
Board approved or rejected each contract.� These quarterly reports shall also
include the documentation and memoranda required in subsection (4) of this
section.� An agency that submitted a sole source contract shall be prepared to
explain the sole source contract to each committee by December 15 of each year
upon request by the committee;
��������� (p)� Assess any fines
and administrative penalties provided for in Sections 31-7-401 through 31-7-423.
���� (3)� All submissions shall
be made sufficiently in advance of each monthly meeting of the Public
Procurement Review Board as prescribed by the Public Procurement Review Board.�
If the Public Procurement Review Board rejects any contract submitted for
review or approval, the Public Procurement Review Board shall clearly set out
the reasons for its action, including, but not limited to, the policy that the
agency has violated in its submitted contract and any corrective actions that
the agency may take to amend the contract to comply with the rules and
regulations of the Public Procurement Review Board.
���� (4)� All sole source
contracts for personal and professional services awarded by state agencies,
other than those exempted under Section 27-104-7(2)(f) and (8), whether
approved by an agency head or the Public Procurement Review Board, shall
contain in the procurement file a written determination for the approval, using
a request form furnished by the Public Procurement Review Board.� The written
determination shall document the basis for the determination, including any
market analysis conducted in order to ensure that the service required was
practicably available from only one (1) source.� A memorandum shall accompany
the request form and address the following four (4) points:
��������� (a)� Explanation of why
this service is the only service that can meet the needs of the purchasing
agency;
��������� (b)� Explanation of why
this vendor is the only practicably available source from which to obtain this
service;
��������� (c)� Explanation of why
the price is considered reasonable; and
��������� (d)� Description of the
efforts that were made to conduct a noncompetitive negotiation to get the best
possible price for the taxpayers.
���� (5)� In conjunction with the
State Personnel Board, the Public Procurement Review Board shall develop and
promulgate rules and regulations to define the allowable legal relationship
between contract employees and the contracting departments, agencies and
institutions of state government under the jurisdiction of the State Personnel
Board, in compliance with the applicable rules and regulations of the federal
Internal Revenue Service (IRS) for federal employment tax purposes.� Under
these regulations, the usual common law rules are applicable to determine and
require that such worker is an independent contractor and not an employee,
requiring evidence of lawful behavioral control, lawful financial control and
lawful relationship of the parties.� Any state department, agency or
institution shall only be authorized to contract for personnel services in
compliance with those regulations.
���� (6)� No member of the Public
Procurement Review Board shall use his or her official authority or influence
to coerce, by threat of discharge from employment, or otherwise, the purchase
of commodities, the contracting for personal or professional services, or the
contracting for public construction under this chapter.
���� (7)� Notwithstanding any
other laws or rules to the contrary, the provisions of subsection (2) of this
section shall not be applicable to the Mississippi State Port Authority at
Gulfport.
���� (8)� Nothing in this section
shall impair or limit the authority of the Board of Trustees of the Public
Employees' Retirement System to enter into any personal or professional
services contracts directly related to their constitutional obligation to
manage the trust funds, including, but not limited to, actuarial, custodial
banks, cash management, investment consultant and investment management
contracts.� Nothing in this section shall impair or limit the authority of the
State Treasurer to enter into any personal or professional services contracts
involving the management of trust funds, including, but not limited to,
actuarial, custodial banks, cash management, investment consultant and
investment management contracts.
���� (9)� Through December 31,
2026, the provisions of this section related to rental agreements or leasing of
real property for the purpose of conducting agency business shall not apply to
the Office of Workforce Development created in Section 37-153-7.
���� SECTION
9.� Section 1 and 2 of this act shall
take effect and be in force from and after July 1, 2026; the remaining sections
of this act shall take effect and be in force from and after the passage of this
act.