Bill Text: MS SB2630 | 2026 | Regular Session | Engrossed

Mississippi Senate Bill 2630

Bill Title: MS Grant and Subgrant Administration Transparency and Accountability of Non- Governmental Organizations Act; create.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2026-03-03 - Died In Committee [SB2630 Detail]

Download: Mississippi-2026-SB2630-Engrossed.html

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Accountability, Efficiency, Transparency

By: Senator(s) Sparks

Senate Bill 2630

(As Passed the Senate)

AN ACT TO CREATE THE MISSISSIPPI GRANT AND SUBGRANT ADMINISTRATION TRANSPARENCY AND ACCOUNTABILITY OF NON-GOVERNMENTAL ORGANIZATIONS ACT OF 2026; TO ESTABLISH THAT THIS ACT SHALL BE CREATED TO ESTABLISH REQUIREMENTS THAT ENHANCE OVERSIGHT, ACCOUNTABILITY AND TRANSPARENCY IN GRANT ADMINISTRATION OF STATE AND FEDERAL FUNDS; TO DEFINE RELEVANT TERMS; TO ESTABLISH GRANT PROGRAM PERFORMANCE METRICS AND REQUIREMENTS; TO ESTABLISH GRANT ADMINISTRATION, FINANCIAL REPORTING AND LEADERSHIP DISCLOSURE REQUIREMENTS; TO CLARIFY WHAT CONSTITUTES PROHIBITED ACTIVITIES FOR THE USAGE OF GRANT FUNDS; TO PROVIDE INFORMATION THAT SHALL BE SUBJECT TO AUDITS OF NON-GOVERNMENTAL ORGANIZATIONS AND QUASI-PUBLIC ENTITIES; TO REQUIRE THAT REPORTS REQUIRED BY THIS ACT SHALL BE FILED WITHIN 180 DAYS AFTER FISCAL YEAR END OF YEAR OSA PREFORMS OR DIRECTS A COMPLIANCE AUDIT; TO AUTHORIZE DFA TO ENFORCE THE POLICIES AND PROCEDURES OF THIS ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) This act shall be known and may be cited as the "Mississippi Grant and Subgrant Administration Transparency and Accountability of Non-Governmental Organizations Act of 2026."

(2) It is the intent of the Mississippi State Legislature to establish requirements that enhance oversight, accountability and transparency in grant administration of state and federal funds appropriated by the Mississippi State Legislature to Non-Governmental Organization grantee and subgrantees receiving taxpayer dollars.

SECTION 2. For the purpose of this act:

(a) "Grant" means an award of financial assistance following a grant application process or other method of obtaining general or special funds from a state agency, board commission or other unit of government to an eligible nongovernmental recipient for specified project-based purposes.

(b) "State agency" means any executive

department, military department, government corporation, government controlled, quasi government entity, corporation or other establishment in state government.

receiving grant funds directly from a state agency, except for an individual or household.

(d) "Subrecipient" means an entity that receives a subaward from a pass-through entity to carry out part of an award. The term subrecipient does not include a beneficiary or participant. A subrecipient may also be a recipient of other federal or state awards directly from a federal or state agency. Individual person or household are not considered to be subrecipients under this section.

(e) "Subaward" means an award provided by a pass-through entity to a subrecipient for the subrecipient to contribute to the goals and objectives of the project by carrying out part of a state award received by the pass-through entity. It does not include payments to a beneficiary or participant.

(f) "Pass-through entity" means a recipient or subrecipient that provides a subaward to a subrecipient (including lower tier subrecipients) to carry out part of a federal or state program.

SECTION 3. (1) All state agencies that administer grants shall establish specific, measurable annual objectives and outcomes relating to the purpose of the grant.

(2) Where appropriate, grant programs shall include long-term performance objectives for at least five (5) years into the future.

(3) Primary recipients shall annually submit summary progress reports demonstrating advancement toward stated objectives.

(4) Failure to meet reporting requirements or established metrics shall result in:

(a) Immediate suspension of grant payments pending corrective action;

(b) Agency review for potential grant termination; and

(c) Termination of grant award if metrics remain unmet in one hundred twenty (120) days following the due date of annual report.

(5) The Office of the State Auditor (OSA) shall

establish a schedule for periodic review of all state grant programs.

(6) Each state agency shall conduct comprehensive reviews of their existing grant programs every five (5) years, except for any program not expected to last for more than two (2) years.

(7) Agencies shall submit recommendations to the Legislative Budget Office (LBO) regarding continuation, modification, or termination of reviewed programs at the conclusion of their comprehensive reviews as set forth in Section 3(4)(b).

SECTION 4. (1) State agencies shall establish objective criteria for grant eligibility.

(2) No preference shall be given based on:

(a) Political affiliation;

(b) Ideological orientation;

(c) Prior receipt of federal and state grants, except with respect to documented violations of the prohibited activities outlined in subsection (4) of this section; or

(d) Organization type or tax status, unless specifically required by federal law.

(3) Grant eligibility shall not be restricted based on organization type or tax status unless:

(A) Explicitly required by federal or state law; or

(B) Determined necessary based on documented programmatic requirements.

(4) Primary recipients shall submit detailed annual financial reports including:

(a) Summary of expenditures;

(b) Administrative costs;

(d) The purpose for all funds redistributed to subrecipients.

(5) Subrecipients shall submit detailed annual financial reports, including:

(a) Summary of expenditures;

(b) Administrative costs;

(d) Supporting documentation for all expenses exceeding Twenty-five Thousand Dollars ($25,000.00);

(e) Complete accounting of all funds redistributed to any additional subrecipients; and

(f) The purpose for all funds redistributed to any additional subrecipients.

(6) Any nongovernmental organization applying for grant funding or receiving grant funding shall require all executive officers and members of its governing board to submit a signed disclosure statement that includes:

(a) Whether such individual currently serves in any professional capacity with decision-making authority regarding grant appropriations;

(b) Whether such individual has, within the preceding five (5) years, served as an executive officer or member of a governing board for an organization at a time when that organization violated the reporting requirements of subsections (4) and (5) of this section;

(d) The nature, jurisdiction and disposition date of any such conviction.

(7) Such disclosure statements shall:

(a) Be submitted with the initial grant application;

(b) Be updated within thirty (30) days of any change in leadership or relevant circumstances; and

(8) Failure to provide and timely update the disclosures in subsection (6) of this section, will subject the primary recipient or subrecipient of immediate termination of grant funds and a three-year debarment from receiving grant funds, including grant subawards.

(9) Grant funds shall not be used by a primary recipient or subrecipient for any partisan political activities, initiative or referendum support or opposition, voter registration or get-out the-vote campaigns.

(10) Grant funds shall not be distributed to a primary recipient or subrecipient with a common board member with a grantee or subgrantee that provided the funds to the primary recipient or subrecipient without written notice and disclosure of the potential conflict to the grantee who provided the funds to the primary recipient or subrecipient.

(11) Violation of subsections (9) and (10) of this section will subject the primary recipient or subrecipient of immediate termination of grant funds and a three-year debarment from receiving grant funds, including grant subawards.

(12) Any primary recipient or subrecipient must show no grant funds were used indirectly or directly in an alleged violation of subsections (9) and (10) of this section to avoid sanctions.

SECTION 5. (1) Any NGO or quasi-public entity that (1) receives state-tax-derived funds or (2) is a subrecipient of state funds shall be subject to a compliance audit by or under the direction of the Office of the State Auditor (OSA) pursuant to GAGAS. OSA may apply risk-based scoping and materiality and may integrate this work with any required federal or state single audit.

(2) The audit shall include, at minimum:

(a) Schedule of Expenditures of State Funds (SESF) for each:

(i) Payment-date;

(ii) Amount;

(iii) Description/object code;

(iv) Vendor/payee legal name and persistent Vendor ID;

(v) Voucher ID;

(vi) Contract/Award ID;

(vii) PO/Release, if applicable;

(viii) Fund; and

(ix) Program/appropriation code;

(b) Schedule of Revenues by Source:

(i) State-tax-derived funds;

(ii) Other state funds; and

(iii) Federal, local and private funds;

(i) Entity;

(ii EIN/SOS ID;

(iii) Amount;

(iv) Purpose;

(v) Award/subaward ID; and

(vi) Dates;

(d) Related-party transactions and conflict-of-interest disclosures; and

(e) Findings with severity, questioned costs, criteria/condition/cause/effect and a Corrective Action Plan (CAP) with responsible official and timeline.

(3) Auditees shall provide full access to books and records, including bank statements, contracts and amendments, payroll registers, invoices and subawards. All required schedules shall be delivered in machine-readable formats (CSV/JSON; Parquet as appropriate) using the join-key fields.

(4) OSA shall publish the report, management letter, and CAP on Transparency Mississippi and transmit them to the Legislative Budge Office (LBO). The report shall identify any payments that appear to diverge from the auditee's stated purposes or the statutory/contractual basis for receiving public funds.

(5) Reports are due within one hundred eighty (180) days after fiscal year end of year OSA preforms or directs a compliance audit, and OSA shall retain these report records for no less than seven (7) years.

(6) Failure to submit, material noncooperation, or obstruction authorizes DFA to suspend payments, withhold new awards or recoup funds, and authorizes OSA to refer the matter to the Attorney General.

(7) The auditee's schedules and CAP shall be certified under penalty of perjury by an authorized officer and certified public accountant.

SECTION 6. This act shall take effect and be in force from and after July 1, 2026.