Bill Text: MS HB980 | 2019 | Regular Session | Introduced
Bill Title: Agencies; delete provision that contractual obligations of shall be considered as incurred in fiscal period to be paid.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2019-04-18 - Approved by Governor [HB980 Detail]
Download: Mississippi-2019-HB980-Introduced.html
MISSISSIPPI LEGISLATURE
2019 Regular Session
To: Appropriations
By: Representative Read
House Bill 980
AN ACT TO AMEND SECTION 27-104-25, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE AUTHORITY FOR AN AGENCY TO PAY CLAIMS FROM THE PRIOR FISCAL YEAR WITH FUNDS IN THE CURRENT FISCAL YEAR'S ALLOTMENT FOR THE AGENCY MAY BE USED ONLY ONE TIME WITHIN ANY PERIOD OF FIVE CONSECUTIVE FISCAL YEARS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-104-25, Mississippi Code of 1972, is amended as follows:
27-104-25. (1) The executive head and business manager of each state agency shall be responsible for all obligations or indebtedness incurred in the name of the agency, or by any employee for them when incurred by such employee acting within the scope of his employment.
(2) No obligations or indebtedness shall be incurred by any such person during any allotment period in excess of the amount of the estimate approved by the Department of Finance and Administration or in the agency appropriation bill.
If a claim arising from orders for goods or services from the prior fiscal year is presented within one (1) year and (a) the payment of a claim does not cause an agency to exceed the amount of its prior year budget estimate as approved by the Department of Finance and Administration or its appropriation bill, and (b) sufficient funds remain in the current fiscal year's allotment to pay the claim, the State Treasurer, upon approval of the claim by the Department of Finance and Administration, shall draw a warrant in payment of the claim. The authority under this paragraph for payment of claims from the prior fiscal year may be used by an agency only one (1) time within any period of five (5) consecutive fiscal years.
(3) Contractual obligations, such as salary contracts, shall be considered as incurred within the fiscal period in which they are to be paid, and are to be encumbered against funds to be available in that fiscal period, and shall include appropriate cancellation clauses in the event the anticipated revenues from which they are to be paid do not become available. However, nothing in this subsection shall be construed to authorize any exception to the limitations on payment of claims from the prior fiscal year imposed in subsection (2) of this section.
(4) Agencies having special funds, as defined in Section 27-103-103, shall not incur obligations or indebtedness against such special funds in an amount in excess of revenues actually anticipated and budgeted.
(5) If obligations or indebtedness shall be incurred contrary to the provisions hereof, then neither the State of Mississippi nor the agency shall have any liability therefor, and the person, firm or corporation to whom the obligation or indebtedness is due may recover the amount of the obligation or indebtedness and twenty-five percent (25%) of the amount as liquidated damages from the responsible officers, either personally or upon their official bonds, either severally of jointly.
(6) Provided, however, that no personal liability of the responsible officers under this section shall include any unfunded liability for employee retirement or pension funds. Nothing in this section shall diminish any responsibility of the responsible officers to fund any employee retirement or pension plans, or any liability as a result of any failure to fund such plans as otherwise required by law.
SECTION 2. This act shall take effect and be in force from and after its passage.
