Bill Text: MS SB2778 | 2022 | Regular Session | Engrossed


Bill Title: Line-Item Appropriation Transparency Act; revise.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2022-03-24 - Died On Calendar [SB2778 Detail]

Download: Mississippi-2022-SB2778-Engrossed.html

MISSISSIPPI LEGISLATURE

2022 Regular Session

To: Appropriations

By: Senator(s) Hopson, Branning

Senate Bill 2778

(As Passed the Senate)

AN ACT TO AMEND SECTION 27-104-351, MISSISSIPPI CODE OF 1972, TO REVISE THE CONDITIONS BY WHICH A STATE AGENCY MAY PROVIDE A RECIPIENT ENTITY PASS-THROUGH FUNDING UNDER THE LINE-ITEM APPROPRIATION TRANSPARENCY ACT; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 27-104-351, Mississippi Code of 1972, is amended as follows:

     27-104-351.  (1)  This section shall be known and may be cited as the "Line-Item Appropriation Transparency Act."

     (2)  As used in this section, unless the context clearly indicates otherwise:

          (a)  "Local government entity" means any county, municipality, school district, public hospital or other political subdivision of the state.

          (b)  "Pass-through funding" means a line-item appropriation by the Legislature to a state agency that is itemized on a separate line in a budget and that is intended to be passed through the state agency to one or more:

              (i)  Local government entities;

              (ii)  Private organizations, including not-for-profit organizations; or

              (iii)  Persons in the form of a loan or grant.

"Pass-through funding" may be general funds, dedicated credits, or any combination of state funding sources, and may be ongoing or one-time.

          (c)  "Recipient entity" means a local government entity or private entity, including a nonprofit entity, that receives money by way of pass-through funding from a state agency.

          (d)  "State agency" shall have the same meaning as provided in Section 27-103-103, and shall include any other subagency or board under the supervision of that state agency. 

          (e)  "State money" means * * *money that is owned, held or administered by a state agency and derived from state fees or tax revenues funds in the State General Fund and all state-support special funds which are in the Budget Contingency Fund, the Education Enhancement Fund, the Tobacco Control Program Fund and any other special fund that is determined by the Joint Legislative Budget Committee to be a state-support special fund.  "State money" does not include contributions or donations received by a state agency.

     (3)  A state agency may not provide a recipient entity state money from pass-through funding unless:

          (a)  The state agency enters into a written agreement with the recipient entity, which shall be prepared by the Department of Finance and Administration; * * * and

          (b)  The written agreement described in paragraph (a) of this subsection requires the recipient entity to provide to the state agency the following:

               (i) * * *  On or before December 31 of each year, a written description and an itemized report detailing the expenditure of the state money, or the intended expenditure of any state money that has not been spent  A written description and an itemized report detailing the expenditure of state money or the intended expenditure of any state money that has not been spent.  Such report shall be submitted at least quarterly on dates determined by the Department of Finance and Administration; and

              (ii)  A final written itemized report when all the state money is spent * * *.; and

          (c)  Disbursements shall only be made after the written agreement described in paragraph (a) of this subsection has been signed and shall be contingent upon the recipient entity complying with the quarterly reporting requirements required by paragraph (b) of this subsection.

     (4) * * *  The state agency shall timely notify the recipient entity of its obligation to provide the written reports  On or before June 30 of each year, a state agency shall provide to the Department of Finance and Administration's Office of Budget and Fund Management a copy of the written descriptions and reports of itemized expenditures required under subsection (3) of this section.

     (5) * * *  The state agency is responsible for obtaining the written descriptions and itemized reports required under subsection (3) of this section from the recipient entity.  The state agency is further responsible for providing such documents to the Lieutenant Governor, Speaker of the House of Representatives, Chairman of the Senate Appropriations Committee, Chairman of the House Appropriations Committee, and the Governor.  The Department of Finance and Administration's Office of Budget and Fund Management is responsible for obtaining the written descriptions and itemized reports required by subsection (3) of this section from state agencies.  The department is further responsible for consolidating and presenting a report on pass-through expenditures and providing it to the Joint Legislative Budget Committee by October 1 of each year.

     (6)  Notwithstanding subsection (3) of this section, a state agency is not required to comply with this section to the extent that the pass-through funding is issued:

          (a)  Under a competitive award process;

          (b)  In accordance with a formula enacted in statute;

          (c)  In accordance with a state program under parameters in statute or rule that guides the distribution of the pass-through funding;

          (d)  Under the authority of the Mississippi Accountability and Adequate Education Program Act of 1997, Section 37-151-1 et seq.; or

          (e)  In accordance with an appropriations act of the Legislature that specifically provides an exemption from the provisions of this section.

     (7)  Unless a recipient entity is required to comply with Section 31-7-1 et seq. because it is an agency or public body, the fact that it is a recipient entity does not create such an obligation.

     SECTION 2.  This act shall take effect and be in force from and after its passage.


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