Bill Text: MS SB2816 | 2010 | Regular Session | Engrossed

Mississippi Senate Bill 2816 (Prior Session Legislation)

Bill Title: "Mississippi Strategic Planning and Performance Budgeting System Act of 2010"; enact.

Spectrum: Moderate Partisan Bill (Republican 14-3)

Status: (Failed) 2010-03-02 - Died In Committee [SB2816 Detail]

Download: Mississippi-2010-SB2816-Engrossed.html

MISSISSIPPI LEGISLATURE

2010 Regular Session

To: Appropriations

By: Senator(s) Nunnelee, Davis, Burton, Ward, Dickerson, Baria, Carmichael, Chassaniol, Clarke, Dearing, Fillingane, Hewes, Hopson, Hudson, Jackson (15th), King, Yancey

Senate Bill 2816

(As Passed the Senate)

AN ACT TO ENACT THE "MISSISSIPPI STRATEGIC PLANNING AND PERFORMANCE BUDGET SYSTEM ENHANCEMENT ACT OF 2010"; TO DEFINE CERTAIN TERMS; TO ESTABLISH A PROCESS FOR STATEWIDE STRATEGIC PLANNING AND AGENCY BUDGETING; TO REQUIRE THAT CERTAIN FUNCTIONS BE CARRIED OUT BY THE LEGISLATIVE BUDGET COMMITTEE AND THE LEGISLATIVE BUDGET OFFICE; TO PROVIDE FOR THE ANNUAL PREPARATION OF A STRATEGIC PLAN FOR THE OPERATION OF ALL STATE AGENCIES TO COMPLY WITH THE GOALS FOR EACH AREA IN WHICH THE AGENCIES PROVIDE SERVICES; TO PROVIDE FOR INDIVIDUAL AGENCY STRATEGIC PLANS BASED UPON THE STATE PLAN TO BE SUBMITTED ANNUALLY BY STATE AGENCIES; TO PROVIDE THAT FUNDS TO STATE AGENCIES SHALL BE BUDGETED AND APPROPRIATED BASED UPON THE AGENCY STRATEGIC PLANS; TO PRESCRIBE THE COMPONENTS OF THE STRATEGIC PLANS; TO REQUIRE ACHIEVEMENT GOALS FOR EACH FUNCTIONAL AREA OF STATE GOVERNMENT TO BE INCORPORATED IN THE AGENCY STRATEGIC PLAN, AND TO DIRECT THE LEGISLATIVE BUDGET OFFICE TO ESTABLISH A SYSTEM OF PERFORMANCE AUDITS AND EVALUATIONS TO DETERMINE THE EXTENT TO WHICH STATE AGENCIES ARE COMPLYING WITH THE ADOPTED PERFORMANCE GOALS AS PRESCRIBED IN THE AGENCIES APPROPRIATION BILL; TO PROVIDE THAT BEGINNING WITH THE 2013 REGULAR SESSION THE LEGISLATURE SHALL ENACT NINE APPROPRIATION BILLS TO DEFRAY THE EXPENSES OF ALL STATE GENERAL-FUND AND SPECIAL-FUND AGENCIES BASED UPON CERTAIN FUNCTIONAL AREAS TO CONFORM WITH THE ADOPTED STATE AGENCY STRATEGIC PLAN; TO PROVIDE FOR CERTAIN DUTIES OF THE PEER COMMITTEE RELATING TO PERFORMANCE MONITORING OF AGENCY BUDGETS AND TO GRANT TO THE PEER COMMITTEE THE POWER OF COMPULSORY PROCESS AND POWER OF ENFORCEMENT; TO DIRECT LBC TO ESTABLISH AN AGENCY INNOVATION INCENTIVE PROGRAM; TO CODIFY SECTIONS 5-3-68 AND 5-3-70 AND TO AMEND SECTIONS 5-3-59, 27-103-101, 27-103-103, 27-103-111, 27-103-129, 27-103-131, 27-103-137, 27-103-139, 27-103-209 AND 27-103-211, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO AMEND SECTIONS 27-104-3 AND 27-104-5, MISSISSIPPI CODE OF 1972, TO EMPOWER THE DEPARTMENT OF FINANCE AND ADMINISTRATION AND ITS EXECUTIVE DIRECTOR TO PROVIDE STATE AGENCIES WITH TRAINING REGARDING STRATEGIC PLANNING AND BUDGETING; TO AMEND SECTION 7-7-211, MISSISSIPPI CODE OF 1972, TO ALLOW THE STATE AUDITOR TO CONTRACT WITH THE PEER COMMITTEE TO REVIEW THE PERFORMANCE OF AGENCIES; TO REPEAL SECTIONS 27-103-121, 27-103-123, 27-103-125 AND 27-103-127, MISSISSIPPI CODE OF 1972, WHICH PROVIDE CERTAIN BUDGETING PRACTICES; TO REPEAL SECTIONS 27-103-151 THROUGH 27-103-157, MISSISSIPPI CODE OF 1972, WHICH ARE THE BUDGET AND STRATEGIC PLANNING ACT OF 1994; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) This act shall be known as the "Mississippi Strategic Planning and Performance Budget System Enhancement Act of 2010."

(2) The Legislature finds that:

(a) There is little broad-based strategic planning and preparation for the delivery of services that the citizens of Mississippi need and expect;

(b) The executive and the legislative branches, while empowered with separate constitutional responsibilities, must work cooperatively to ensure that the needs of Mississippi's citizens are met;

(c) The process by which the state budgets and plans the delivery of state governmental services is in need of revision and cooperation; and

(d) These ends may be achieved through a revised method of planning and budgeting services and monitoring accountability for the delivery of services and the use of state funds.

SECTION 2. For purposes of this act, the following terms shall have the definitions set out herein ascribed to them:

(a) ACTION PLANS. Detailed methods of specifying how a strategy is implemented. Task specification includes staff assignments, material resource allocations, and schedules for completion. Action plans separate strategies into manageable parts for coordinated implementation of goals and objectives. Action plans specify detailed cost and expenditure information and are often referred to as "operational plans" or "implementation plans."

(b) AGENCY GOALS. The general ends toward which agencies direct their efforts. A goal addresses issues by stating policy intention. Goals are both qualitative and quantifiable, but not quantified. In a strategic planning system, goals are ranked for priority. Goals stretch and challenge an agency, but they are realistic and achievable.

(c) AGENCY MISSION. The reason for an agency's existence. It succinctly identifies what the agency does, why, and for whom. A mission statement declares to the public, the Governor, legislators, the courts, and agency personnel, of the unique purposes promoted and served by the agency.

(d) AGENCY PHILOSOPHY. Conduct of the agency in carrying out its mission. It describes how the agency conducts itself as it does its work.

(e) BENCHMARK. Benchmark is the quantified standard against which achievement of a stated goal, objective, or strategy can be measured. It is a tool for gauging "added value" performance that benefits the customer/stakeholder or progress toward achieving increased productivity and strategic efficiency.

(f) BENCHMARKING PROCESS. An integral part of the external and internal assessment conducted during the strategic planning process. It is an interactive method of identifying, analyzing, and emulating the standards and best practices of external organizations that achieve a high degree of productivity or innovative success in program and service changes to internally managed processes. It helps define any needed improvements to individual sub-functions within an organization.

(g) BUDGET STRUCTURE. The framework used by an agency in preparing its request for legislative appropriations. The budget structure usually consists of goals, strategies, measures, measure definitions, and other items of appropriation included in the agency's strategic plan. Only elements in an approved budget structure may be used by an agency as items in its request for appropriations.

(h) CAPITAL IMPROVEMENTS. Building or infrastructure projects that will be owned by the state and built with direct appropriations or with the proceeds of state-issued bonds.

(i) CUSTOMER COMPACT. An agreement made with the customers of an agency or institution to provide services that follow a predetermined set of guiding principles. It sets forth the rights of the customer and defines the standards that customers should expect.

(j) EFFICIENCY MEASURES. Indicators of the input resources required to produce a given level of output. They measure resource cost in dollars, employee time, or equipment used per unit of product or service output. An efficiency measure relates agency efforts to agency outputs. Indicators of average cost and average time normally serve as efficiency measures for agency processes, but they may also serve as outcome measures when cost per unit of outcome is the focus and can be meaningfully captured.

(k) EXPLANATORY MEASURES. Provide information that can help users to assess the significance of performance reported on other types of measures. An agency may have limited or no control over factors addressed by explanatory measures, including environmental or demographic characteristics related to agency target populations. A major use of this type of measure is to describe the level of customer demand or public need for an agency's products and services. Explanatory measures also may focus on variables over which an agency has significant control, such as staffing patterns for specific functions.

(l) EXTERNAL/INTERNAL ASSESSMENT. An evaluation of key factors that influence an agency's success in achieving its mission and goals. Detailed evaluation of trends, conditions, opportunities, and obstacles directs the development of each element of the strategic plan. This type of assessment should be heavily quantitative. Key external factors may include economic conditions, population shifts, technological advances, geographical changes, and/or statutory changes. Key internal factors include management policies, resource constraints, organizational structure, automation, personnel, and operational procedures.

(m) INDIRECT ADMINISTRATION. Support costs or expenditure requirements not directly attributable to the implementation of specific goals, objectives, and strategies, or the achievement of performance targets.

(n) INPUTS. The resources, including human, financial, facility, or material, that an agency uses to produce services.

(o) MANAGEMENT GOALS. Management goals reflect agency or institution management approaches in its overall administration. They may encompass activities and management approaches such as total quality management training, customer service initiatives, and other managerial techniques that support greater efficiency and effectiveness in short-term or long-term operations. A management goal and sub-elements frequently may be nonbudgetary in nature, that is, not included as a distinct and separate item in the appropriations request. It may have measures associated with successful implementation or accomplishments that remain internal to the agency and are not reported on a routine basis to oversight entities.

(p) NONBUDGETARY ELEMENTS. A strategic planning goal, objective, or strategy created to convey a tangible agency activity or service that is not separately and directly funded. They cannot be solely policy-related or philosophical statements. Nonbudgetary elements are not included as a distinct and separate item in the agency's appropriations request and may have measures that remain internal to the agency and are not routinely reported to oversight entities.

(q) OBJECTIVES. Clear targets for specific action. They mark interim steps toward achieving an agency's long-range mission and goals. Linked directly to agency goals, objectives are measurable, time-based statements of intent. They emphasize the results of agency actions at the end of a specific time.

(r) OUTCOME MEASURES. Indicators of the actual impact or effect on a stated condition or problem. They are tools to assess the effectiveness of an agency's performance and the public benefit derived therefrom. An outcome measure is typically expressed as a percentage, rate, or ratio.

(s) OUTPUT MEASURES. Tools, or indicators, to count the services and goods produced by an agency. The number of people receiving a service and the number of services delivered are often used as measures of output.

(t) STATE AGENCIES. State agencies covered by strategic planning requirements are departments, commissions, boards, offices, or other agencies within the executive branch of state government as defined in Section 27-103-103.

(u) STATEWIDE GOALS. The general ends toward which the state directs its efforts. Statewide goals address the primary issues facing the state within broad groupings of interrelated state concerns. Statewide goals are founded on the statewide vision and may involve coordination among several agencies with similar functions.

(v) STRATEGIC PLANNING. A long-term, future-oriented process of assessment, goal setting, and decision-making that maps an explicit path between the present and a vision of the future; that relies on careful consideration of an organization's capabilities and environment; and that leads to priority-based resource allocation and other decisions.

(w) STRATEGIES. Methods to achieve goals and objectives. Formulated from goals and objectives, a strategy is the means for transforming inputs into outputs and, ultimately, outcomes, with the best use of resources. A strategy reflects budgetary and other resources.

(x) VISION. An inspiring picture of a preferred future. A vision is not bound by time, represents global and continuing purposes, and serves as a foundation for a system of strategic planning. A statewide vision depicts an ideal future and the contributions that state government can make to that end.

SECTION 3. (1) From the effective date of this section, until June 30, 2013, the Office of the Governor, acting through the Department of Finance and Administration, the Legislative Budget Committee, acting through the Legislative Budget Office, and the PEER Committee, acting through the PEER Committee Staff, shall have the following duties and responsibilities relative to ensuring an orderly transition to the program budgeting and planning practices required by this act.

(a) The Governor, acting through the Department of Finance and Administration, shall seek consultation and advice from the Legislative Budget Committee and the PEER Committee regarding the preparation of instructions, manuals, and other guidance, including rules, for agencies for the implementation of strategic planning required by this act,

(b) The PEER Committee, acting through the PEER Committee staff, shall seek consultation and advice from the Legislative Budget Committee and the Office of the Governor regarding the development of instructions, manuals and guidelines for performance measure management to be utilized in strategic plans and appropriations bills,

(c) The Legislative Budget Committee, acting through the Legislative Budget Office, shall seek consultation and advice from the Office of the Governor and the PEER Committee, regarding development of instructions, forms, rules, and templates necessary to direct agencies on the preparation of legislative appropriations requests.

(2) All preparations required by this section shall be complete for implementation of the Fiscal Year 2014 budget cycle.

(3) This section shall stand repealed from and after June 30, 2013.

SECTION 4. (1) Beginning with the budget for fiscal year 2014, the following shall be components of the process by which general-fund and special-fund agencies prepare strategic plans and the Legislature sets the budget of the State of Mississippi.

(a) Strategic planning: The Governor, acting through the Department of Finance and Administration, shall formulate a vision, mission, and philosophy for state government. In conjunction with the development of the state vision, mission, and philosophy, the Governor shall devise statewide goals and benchmarks for the achievement of this vision for the following nine (9) functional areas of state government:

(i) General government;

(ii) Health and human services;

(iii) Education;

(iv) Public safety, corrections and administration of justice;

(v) Natural resources;

(vi) Business and economic development;

(vii) Transportation;

(viii) Regulation; and

(ix) Legislature.

Prior to formulating the elements set out in this subsection, the Governor, acting through the Department of Finance and Administration, shall work with the Joint Legislative Budget Committee (LBC), established in Section 27-103-101, to arrive at the vision, mission, philosophy, goals, and benchmarks for state government. Prior to publishing these elements of the strategic plan, the Governor shall meet with LBC to discuss these elements. The Governor shall make all reasonable efforts to incorporate any recommendations LBC may have relative to the strategic elements provided for in this subsection. Following the meeting with LBC, the Governor shall publish the vision statement, along with the statement of mission, philosophy, benchmarks, and goals of government. The Governor, acting through the Department of Finance and Administration, shall complete all requirements of this paragraph (a) by May 1 of each year.

(b) Agency strategic plans: Each general-fund agency and special-fund agency, as defined in Section 27-103-103, shall prepare an agency strategic plan for its operations in conformity with the vision and goals established by the Governor. Such plans shall contain, at minimum, the following:

(i) Statewide vision, mission, and philosophy;

(ii) Agency mission statements;

(iii) Agency statements of philosophy;

(iv) External/Internal assessment;

(v) Agency goals;

(vi) Agency objectives;

(vii) Outcome measures;

(viii) Strategies;

(ix) Output measures;

(x) Efficiency measures;

(xi) Explanatory measures; and

(xii) Action plans.

Prior to issuing instructions to the agencies for the completion of their plans, the Governor shall meet with the Joint Legislative Budget Committee to discuss instructions for completion of agency strategic plans. The Governor shall make all reasonable efforts to include recommendations of LBC into the agency strategic planning instructions. Following the meeting, the Governor shall issue instructions to the agencies for the completion of their plans. Plans required by this paragraph (b) shall be completed by June 15 of each year and submitted to the Governor.

(c) The Joint Legislative Budget Committee shall prepare proposed instructions for all general-fund and special-fund agencies as defined by Section 27-103-103. Prior to adopting these instructions, LBC shall discuss the proposed instructions with the Governor at the same meeting conducted for the purpose of discussing agency strategic plans. LBC shall make all reasonable efforts to incorporate the recommendations of the Governor into its budget instructions, and shall, following the completion of the meeting, issue such instructions to the agencies.

(2) The Governor shall compile all agency plans prepared in compliance with this section and file them with the Joint Legislative Budget Committee no later than August 1 of each year. The Governor may review all agency plans for conformity with the requirements of this section and any instructions adopted to carry out its purposes. The Governor, acting through the Department of Finance and Administration, may reject an agency plan and either direct the agency to refile such plan or may substitute a plan for the agency plan. The Governor shall submit to the Legislature any plan offered by the Board of Trustees of State Institutions of Higher Learning, without revision, but the Governor may comment on the components of such plan.

SECTION 5. (1) Beginning with the 2014 fiscal year budget, by August 15 of each year, each general-fund agency and special-fund agency as defined in Section 27-103-103 shall submit to the Joint Legislative Budget Committee a legislative appropriations request. This request shall consist of the following:

(a) A summary of the agency's request by strategy;

(b) A summary of the agency's request by method of financing; and

(2) The Joint Legislative Budget Committee, in conjunction with the Governor, acting through the Department of Finance and Administration, may establish supplemental requirements for any additional information required to support and document the legislative appropriations request.

(3) (a) By December 15 of each year, the Joint Legislative Budget Committee, acting through the Legislative Budget Office, shall prepare a balanced budget for the state and shall additionally prepare for consideration in the next legislative session appropriations bills for each of the nine (9) planning categories set out in Section 3 of this act. Such bills shall contain:

(i) The method of financing the agency and its operations;

(ii) The number of full-time equivalent employment positions;

(iii) The items of appropriation by goals and strategies;

(iv) Major object of expense information; and

(v) Performance measure targets by each goal, including outcomes, outputs, and efficiencies.

(b) The Joint Legislative Budget Committee, acting through the Legislative Budget Office, may prepare any other reports pertinent to the state budget that it deems necessary and proper to support the appropriations process.

(4) (a) The Legislature hereby declares that the preparation of a budget is a constitutional core function of the Legislature in this state. To this end, the Legislature shall cooperate with the Governor and the Department of Finance and Administration and all state agencies in preparing this budget. The ultimate responsibility for preparing a budget is, however, a legislative function. To this end, the Legislature may proceed to prepare a budget for all branches of government if the Governor or any agency of the state fails to compile any plan for request required by this act.

(b) The Legislature may utilize any outcome, output, or performance measure or other reporting indicator offered by any general-fund agency or special-fund agency in conformity with the requirements of this act. The Legislature may, after consultation with the Governor and the agencies, adopt for appropriations purposes any substitute measure, outcome, or objective the Legislature deems appropriate to ensure accountability and effectiveness of the appropriations process.

SECTION 6. (1) Beginning with fiscal year 2014, the Joint Legislative Budget Committee (LBC) shall monitor the performance of agencies in achieving the goals, strategies, outcomes, and outputs set out in the appropriations bills.

(2) No appropriation utilizing the components of a legislative appropriations request shall be required until fiscal year 2014.

(3) The Joint Legislative Budget Committee is hereby authorized and directed to establish an innovation incentive program whereby agencies which develop and implement innovative cost-saving measures can receive both public commendation and monetary reward in recognition of their efforts. LBC shall develop policies and procedures as may be required in order to properly administer said program and such policies and procedures shall include the development of evaluation criteria by which the cost-saving results of the various innovations can be calculated and compared against the innovations of other agencies. The Department of Finance and Administration shall make all agencies aware of the innovation incentive program and shall encourage the participation of agencies in the program.

LBC shall submit its recommendations for innovation incentive awards to the Legislature for consideration on or before January 1 of each year. The recommendations of LBC shall include the following items of information: (a) proposed recipients of awards, (b) the proposed amount of the monetary award, and (c) the proposed manner in which the monetary award should be made available to the recipient. The Legislature may hold hearings in regard to the innovations recommended for consideration by LBC and may, in its discretion, appropriate funds to reward agencies for innovations.

SECTION 7. Beginning with the fiscal year 2014 budget, the Legislature shall enact nine (9) appropriation bills to defray the expenses of all state general-fund and special-fund agencies as defined in Section 27-103-103, based upon the following functional areas to conform with the state agency strategic plan adopted under Section 3 of this act:

(a) General government;

(b) Health and human services;

(d) Public safety, corrections and administration of justice;

(e) Natural resources;

(f) Business and economic development;

(g) Transportation;

(h) Regulation; and

(i) Legislature.

The Legislature may adopt deficit or supplemental appropriation bills in its discretion, in addition to the nine (9) functional bills prescribed above.

SECTION 8. Section 27-103-101, Mississippi Code of 1972, is amended as follows:

27-103-101. (1) There is created the Joint Legislative Budget Committee and the Legislative Budget Office which shall be governed by such committee. The joint committee shall be composed of the following members: The Chairman of the Senate Finance Committee, the President Pro Tempore of the Mississippi State Senate, the Lieutenant Governor of the State of Mississippi, the Chairman of the Senate Appropriations Committee and three (3) members of the Senate to be named by the Lieutenant Governor; the Chairman of the Ways and Means Committee of the House of Representatives, the Chairman of the Appropriations Committee of the House of Representatives, the Speaker of the House of Representatives and four (4) members of the House of Representatives to be named by the Speaker of the House. In the event any ex officio member of the joint committee holds two (2) positions entitling him to membership on the committee, the Lieutenant Governor or the Speaker of the House, as the case may be, shall appoint another member of the respective house to membership on the committee. The chairmanship shall alternate for twelve-month periods between the Speaker of the House of Representatives and the Lieutenant Governor, with the Speaker of the House of Representatives serving as the first chairman. In the absence of the Chairman of the Senate Finance Committee, Senate Appropriations Committee, House Appropriations Committee and Ways and Means Committee, the vice chairman of any such committee shall be entitled to attend; if the vice chairman is unable to attend or if an appointed member is unable to attend, another legislator may be designated to attend by the Lieutenant Governor or the Speaker of the House, as the case may be. If the Lieutenant Governor or Speaker of the House is unable to attend a meeting, he may designate a legislator to substitute for him at that meeting. If the President Pro Tempore of the State Senate is unable to attend a meeting, the Lieutenant Governor shall designate a member of the Senate to substitute for him at that meeting. Any proxy shall have a vote at the meeting he was selected to attend and also shall, when attending, receive compensation and expenses in the same manner and amount as regular members of the joint committee.

There shall be no business transacted, including adoption of rules of procedure, without the presence of a quorum of the Joint Legislative Budget Committee. A quorum shall be eight (8) members, to consist of four (4) members from the Senate and four (4) members from the House of Representatives. No action shall be valid unless approved by the majority of those members present and voting, entered upon the minutes of the Joint Legislative Budget Committee and signed by the chairman and vice chairman. All actions of the Joint Legislative Budget Committee shall be approved by at least four (4) Senate members and four (4) House members.

As used in Sections 27-103-101 through 27-103-139, and in Sections 1 through 5 of this act, the term "committee," "joint committee" or "LBC" shall mean the Joint Legislative Budget Committee (LBC).

(2) The members of the committee shall receive, in addition to other compensation due them, per diem as is authorized by law for their services in carrying out the duties of the committee and, in addition thereto, shall receive a daily expense allowance equal to the maximum daily expense rate allowable to employees of the federal government for travel in the high rate geographical area of Jackson, Mississippi, as may be established by federal regulations, including mileage as authorized by Section 25-3-41, the same to be paid from the operating budget of the Legislative Budget Office. However, in no case shall the members of the committee draw per diem while the Legislature is in regular or special session, except that members may receive the per diem and expenses authorized by this section when the Legislature is in session but in recess under the terms of a concurrent resolution, or in recess during a special session.

(3) The committee may meet at least once each month; and the chairman or director may call additional meetings at such times as they deem necessary or advisable.

(4) The Legislative Budget Office shall, upon the request of a member or member-elect of the Senate or House of Representatives, make available one (1) copy of data, reports, fiscal information or related information submitted to the budget office by any general or special fund agency, whether submitted in support of its budget request or pursuant to any requirement of law or rule of the budget committee or office.

(5) All expenses incurred by and on behalf of the committee shall be paid from funds appropriated therefor, or from a sum to be provided in equal portion from the contingency funds of the Senate and House of Representatives or from transfers of funds as provided in Section 7-13-7.

(6) LBC shall have all powers necessary, including the power to make rules and require forms and templates, to accomplish the purposes of this act, and all other duties conferred upon it by Section 27-103-101 et seq. LBC shall direct the Legislative Budget Office to conduct variance analyses as provided for in Section 10 of this act. Additionally, the LBC may direct the Legislative Budget Office to perform any other analysis or report necessary and proper to carry out the purposes of this act.

SECTION 9. Section 27-103-103, Mississippi Code of 1972, is amended as follows:

27-103-103. (1) For the purpose of Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-27, the term "state general-fund agency" or "general-fund agency" shall mean any agency, department, institution, board or commission of the State of Mississippi which is supported in whole or in part by appropriations from the General Fund; but such term shall not include the Legislature.

(2) For the purposes of Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-27, the term "state special-fund agency" or "special-fund agency" shall mean any agency, department, institution, board or commission of the State of Mississippi which receives no appropriation from the General Fund, but which is supported entirely from special-fund sources, by appropriation, or otherwise, but such term shall not include * * * the Mississippi Industries for the Blind.

(3) For the purposes of Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-27, the term "state agency" shall mean any general-fund agency or special-fund agency as defined in this section, or the Mississippi Department of Transportation, or the Division of State Aid Road Construction of the Mississippi Department of Transportation as is evident from the context wherein it is used.

(4) For the purposes of Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-27, the term "special funds" shall mean all revenues and/or income other than appropriations from the State General Fund which are received, collected by, or available for the support of or expenditure by any state general-fund agency or special-fund agency or the Mississippi Department of Transportation or the Division of State Aid Road Construction of the Mississippi Department of Transportation, whether such funds be derived from taxes or fees collected by or for such general-fund agency or special-fund agency or the State Highway Department or the Division of State Aid Road Construction of the Mississippi Department of Transportation, as the case may be, or from any other types of revenue from any other source.

(5) For the purposes of Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-27, the term "special funds" shall include revolving funds and all funds received from the United States Government by any state general-fund agency or special-fund agency, but shall not include any revolving fund established prior to July 1, 1984, for the purpose of paying or retiring any indebtedness as is authorized by statute.

SECTION 10. Section 27-103-111, Mississippi Code of 1972, is amended as follows:

27-103-111. (1) The business of the committee and the Legislative Budget Office shall be administered by a director, who shall be appointed by the committee and who shall serve at the will and pleasure of the committee. He shall receive such compensation as may be provided by the committee and shall perform such duties as may be prescribed by this or any other statute. Subject to the approval of the committee, he shall have the authority to appoint and employ such stenographic, secretarial, clerical and technical assistants as may be necessary to perform the duties required of the committee and to fix the salaries thereof. All salaries established herein shall be subject to the approval of the committee.

(2) The Legislative Budget Office shall analyze variances between actual and targeted agency and program performance, as directed by the Legislative Budget Committee. In conducting this analysis, the Legislative Budget Office shall identify those agencies and programs whose actual performance has fallen below or exceeded their targeted performance and determine the causes of disparities between targeted and actual performance and shall determine whether performance targets should be revised or maintained. Such report shall be prepared and published by December 15 of each year and shall be known as the Budget and Performance Assessment Report. The report shall incorporate the PEER audit prepared annually as required by Section 11 of this act. The Legislative Budget Office shall consult with the staff of the PEER Committee on the implications of any findings PEER reported and their implication for the budgeting and performance measurement efforts of the state.

SECTION 11. The following shall be codified as Section 5-3-68, Mississippi Code of 1972:

5-3-68. (1) In addition to any other duties provided for in law, the Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER) shall by October 15 of each year following the implementation of Sections 8 through 11 of this act, conduct and release an audit of the performance measures utilized in the agency appropriations bills. The audit shall inform the Legislature and the executive branch of government of the internal controls utilized by each agency to ensure the collection of accurate, reliable information on agency performance. The audit shall include recommendations for the correction of any and all deficiencies found in the reporting systems and controls reviewed. In this review, the PEER Committee shall also identify and report instances wherein projected and actual performance of programs and agencies is more or less than the targeted performance by an amount of five percent (5%) or more.

(2) The PEER Committee shall utilize all powers provided for in Section 5-3-51 et seq. necessary to carry out the purposes of this section, and may contract any and all reports, or parts thereof, required by this section to the Department of Audit or a private contractor, if the committee determines such to be appropriate.

(3) In instances where it considers it beneficial to the improvement of the state's system of program budgeting, the committee may direct the staff to report on any aspect of the budgeting system and offer recommendations for its improvement.

SECTION 12. Section 5-3-59, Mississippi Code of 1972, is amended as follows:

5-3-59. (1) The director, after giving notice to the PEER Committee, while in the discharge of official duties, shall have the following additional powers:

(a) To subpoena and examine witnesses; to require the appearance of any person and the production of any paper or document; to order the appearance of any person for the purpose of producing any paper or document; and to issue all process necessary to compel such appearance or production. When such process has been served, the committee may compel obedience thereto by the attachment of the person, papers or records subpoenaed; and if any person shall willfully refuse to appear before such committee, or answer any question posed by a member of the committee, or to produce any paper or record in obedience to any process issued by the committee and served on that person, he shall be guilty of contempt of the committee and shall be * * * punished by a fine of not more than One Thousand Dollars ($1,000.00) or by imprisonment in the county jail for not more than six (6) months, or both.

(b) To administer oaths to witnesses appearing before the committee when, by a majority vote, the committee deems the administration of an oath necessary and advisable as provided by law.

(c) To determine that a witness has perjured himself by testifying falsely before the committee, and to institute penal proceedings as provided by law.

(2) (a) Whenever facts alleged to constitute contempt under paragraph (a) of subsection (1) arise, the Chairman of the PEER Committee shall certify a statement to this effect to the Attorney General or to the appropriate county prosecuting attorney who shall institute and prosecute a criminal proceeding against the accused for contempt under the provisions of this section.

(b) Any offense defined in paragraph (a) of subsection (1) shall be deemed to have been committed in any of the following counties, and the trial for the offense may take place in any of such counties:

(i) In the county where the subpoena was issued;

(ii) In the county where the offender was served with the subpoena; or

(iii) In the county where the subpoena ordered the offender to give testimony or to produce papers or other evidence.

SECTION 13. The following shall be codified as Section 5-3-70, Mississippi Code of 1972:

5-3-70. (1) (a) As an alternative to a criminal proceeding as provided in Section 53-3-59, in any instance wherein a witness fails to respond to the lawful subpoena of the PEER Committee at any time or, having responded, fails to answer all lawful inquiries or to turn over evidence that has been subpoenaed, the committee may seek judicial enforcement of the process as provided in paragraph (b) of this subsection.

(b) The director, in the name of the PEER Committee, may file a complaint before any chancery court of the state setting up such failure on the part of the witness. On the filing of such a complaint, the court shall take jurisdiction of the witness and the subject matter of the complaint and shall direct the witness to respond to all lawful questions and to produce all documentary evidence in the possession of the witness that is lawfully demanded. The failure of a witness to comply with the order of the court constitutes contempt of court and the court shall punish the witness as provided in Section 9-1-17.

(c) The director, in the name of the PEER Committee, may utilize the Office of the Attorney General to bring a civil enforcement action or may utilize contract counsel to commence an enforcement action authorized in this subsection (1).

(2) The provisions of this section are hereby declared to be supplemental to the powers of the Legislature and of the Senate and of the House of Representatives to punish for contempt, and the Legislature hereby reserves to itself and to the Senate and to the House of Representatives all inherent and all constitutional powers to punish for contempt.

SECTION 14. Section 27-103-129, Mississippi Code of 1972, is amended as follows:

27-103-129. (1) To enable the Legislative Budget Office to prepare an annual budget, it shall have full and plenary power and authority to require all general-fund and special-fund agencies and the Mississippi Department of Transportation and the Division of State Aid Road Construction of the Mississippi Department of Transportation to file a legislative appropriations request with such information and in such form and in such detail as it may deem necessary and advisable, and it shall have the further power and authority to reduce or eliminate any item or items of requested appropriation by any state agency in the * * * office's recommended budget to the Legislature. However, where any item of requested appropriation shall be so reduced or eliminated, the head of the agency involved shall have the right to appear before the appropriate legislative committee to urge a revision of the budget to restore the item reduced or eliminated. * * *

* * *

(2) All agencies enumerated in subsection (1) of this section shall include in their legislative appropriations request the following information regarding contract workers for the most recently completed fiscal year:

(a) The name of each worker;

(b) The specific type of services provided;

(d) Total gross salary or wages paid; and

(e) Whether the worker is a retired member of the Public Employees' Retirement System.

(3) (a) In addition to any other information required by law, each state agency, general-fund agency and special-fund agency, as defined in Section 27-103-103, desiring to purchase any vehicle as defined by this section shall submit as part of its legislative appropriations request to the Legislative Budget Office and the Department of Finance and Administration a detailed justification for the proposed purchase. The Legislative Budget Office and the Department of Finance and Administration shall jointly prescribe the forms and formats to be used by agencies making the requests. Such forms shall require, at minimum, the following information:

(i) The kind of vehicle to be purchased;

(ii) The person to whom the vehicle will be assigned and the employment responsibilities of that person which necessitate a state-owned vehicle;

(iii) Whether the vehicle is a work vehicle or passenger vehicle; and

(iv) If the vehicle is assigned to a pool and not an individual, the purposes for which the pool vehicle is assigned and the names of the anticipated users of the pool vehicle.

(b) The Legislative Budget Office and the Department of Finance and Administration shall offer a recommendation to the Joint Legislative Budget Committee on all agency requests for vehicles. In making the recommendation, the Legislative Budget Office and the Department of Finance and Administration may consider break-even analyses for the kind of vehicle requested, the travel patterns of the person for whom the vehicle shall be acquired, and shall determine if there exist surplus vehicles in the possession of other agencies that could be used as a substitute for a new vehicle and why such vehicle should not be used. Beginning July 1, 2007, the purchase of vehicles by an agency shall be a specific line item in the agency's appropriation bill.

(c) If an agency determines that an urgent need exists for a vehicle when it is not feasible to obtain prior legislative approval, the agency may make an emergency request to the Bureau of Fleet Management. Any emergency determination shall be made only upon the existence of extraordinary circumstances. The Bureau of Fleet Management shall make a recommendation to the Executive Director of the Department of Finance and Administration and shall give notification of such recommendation to the Lieutenant Governor, the Speaker of the House and the Chairmen of the Senate and House of Representatives Appropriations Committees. The Executive Director of the Department of Finance and Administration shall have the final authority to approve or disapprove the emergency request. The executive director must set forth specific reasons for approval which shall be a public record. If approved and if adequate funding is available, the agency may purchase a specific vehicle to meet its specific emergency needs. The Bureau of Fleet Management shall report any emergency purchase to the Legislative Budget Office. Any such vehicle shall be subject to the same rules and regulations as provided for nonemergency vehicles.

(d) For purposes of subsections (3) and (4) of this section, the term "passenger vehicle" shall mean a vehicle used primarily in transporting agency personnel and the agency's equipment from one location to another. This term shall include only those vehicles for which a license plate or tag is required under Chapter 19, Title 27, Mississippi Code of 1972.

(e) For purposes of subsections (3) and (4) of this section, the term "work vehicle" shall mean a vehicle used primarily to perform a work assignment or task while incidentally transporting agency personnel and agency equipment from one location to another. This term shall include only those vehicles for which a license plate or tag is required under Chapter 19, Title 27, Mississippi Code of 1972.

(4) All state agencies, special-fund agencies and general-fund agencies making budget requests under the authority of this section shall include with their budget requests a report of all passenger and work vehicles in their possession. Such report shall detail the persons to whom the vehicles are assigned and the purposes for the vehicles.

(5) Subsections (3) and (4) of this section shall not apply to any vehicle assigned to a sworn officer of the Department of Public Safety and used in undercover operations.

(6) The provisions of subsections (3) and (4) of this section shall not apply to any state institution of higher learning.

(7) Beginning July 1, 2007, the purchase of wireless communication devices as defined in Section 25-53-191 by any state agency, special-fund agency or general-fund agency making budget requests under the authority of this section shall be a specific line item in the agency's appropriation bill.

SECTION 15. Section 27-103-131, Mississippi Code of 1972, is amended as follows:

27-103-131. If any officer or employee of any state agency whose duty it is to do so shall refuse or fail to file a strategic plan or a legislative appropriations request with such information and in such form and in such detail and within such time as the Legislative Budget Office may require in the exercise of its authority, the Governor, acting through the Department of Finance and Administration, shall prepare such strategic plan for the officer or employee and the expense thereof shall be personally borne by said officer or employee, and he or she shall be responsible on his or her official bond for the payment of the expense; provided that a negligently prepared strategic plan or a legislative appropriations request shall be considered as a refusal or failure under the provisions of this section.

The Director of the Legislative Budget Office shall prepare and file, or cause to be prepared and filed, a legislative appropriations request for such agency, and the expense thereof shall be personally borne by said officer or employee, and he or she shall be responsible on his or her official bond for the payment of the expense; provided that a negligently prepared budget shall be considered as a refusal or failure under the provisions of this section. The records of the Legislative Budget Office and the overall budget submitted by it to the Legislature shall clearly identify and set forth all the facts relative to any agency legislative appropriations request prepared by the director under the authority of this section.

SECTION 16. Section 27-103-137, Mississippi Code of 1972, is amended as follows:

27-103-137. The Joint Legislative Budget Committee (LBC) shall hold such hearings as may be necessary to determine the actual budget requirements of the agencies. The Department of Finance and Administration and representatives of the Governor's Office may be present, and, with the consent of the Chairman of LBC, direct questions to representatives of any agency making a presentation to LBC. The Legislative Budget Office shall prepare a sufficient number of copies of its proposed legislative appropriations bills and any other reports deemed appropriate by LBC in order that the data contained therein will be available to the members of the Legislature * * * and to each state agency on or about December 15 of each year. The Legislative Budget Office shall also post such information on the Internet to facilitate efficient distribution of the proposed bills.

SECTION 17. Section 27-103-139, Mississippi Code of 1972, is amended as follows:

27-103-139. * * *

* * * If the Governor has any recommendations for additional proposed expenditures or proposed revenues that are not included in the budget proposed by the Joint Legislative Budget Committee, he shall submit those recommendations in a supplement that is separate from the committee's proposed budget, and whenever the Governor recommends any such additional proposed expenditures, he also shall recommend proposed revenues that are sufficient to fund the additional proposed expenditures, providing specific details regarding the sources and the total amount of those proposed revenues.

The Governor may employ a budget officer for the purpose of receiving information from the State Fiscal Officer and preparing his recommendations on the budget. If the Governor determines that information received from the State Fiscal Officer is not sufficient to enable him to prepare his budget recommendations, he may request an appropriation from the Legislature to provide additional staff within the Governor's office for that purpose. At the first regular session after his election for Governor, the Governor shall submit any budget recommendations plus the required revenue source recommendations no later than January 31 of that year.

SECTION 18. Section 27-103-209, Mississippi Code of 1972, is amended as follows:

27-103-209. * * *

(1) The Joint Legislative Budget Committee * * * shall prepare a report on privatization of government programs and services. The study shall analyze all areas of state government with the objective of identifying programs and services that can be performed by the private sector with lower cost or increased efficiency. Areas of privatization shall include, but not be limited to, contracting-out, competitive bidding and sale of assets. In determining and comparing the costs of performance between the private and public sectors, the actual costs incurred in engaging in the activity shall include the cost and value of labor, real estate, equipment, overhead and other direct expenses. Cost-benefit analysis of current and proposed regulations shall be included. Generally accepted accounting principles shall be followed. Input shall be solicited from representatives of the private sector. Recommendations shall be provided to the Legislature and the Governor by December 15, 2012.

(2) The Joint Legislative Budget Committee * * * shall review the adequacy of financial statements of state government and fiscal control systems including legal authority and methodology of the agencies that prepare public financial statements and exercise control over state expenditures. The review shall focus on the SAAS accounting system and its development, implementation and benefits. A report by the committee on its findings shall be provided to the Legislature and the Governor by December 15, 2012.

SECTION 19. Section 27-103-211, Mississippi Code of 1972, is amended as follows:

27-103-211. The total sum appropriated by the Legislature from the State General Fund for any fiscal year shall not exceed ninety-eight percent (98%) of the general fund revenue estimate for that fiscal year developed in writing and signed by the State Fiscal Officer, the Executive Director of the Legislative Budget Office, the Executive Director of the Department of Revenue, the State Treasurer and the State Economist and adopted by the Joint Legislative Budget Committee, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. The unencumbered balances in general funds that will be available and on hand at the close of the fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund under Section 27-103-203. However, for fiscal year 2011 only, the total sum appropriated by the Legislature from the State General Fund shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for that fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year.

SECTION 20. Section 27-104-3, Mississippi Code of 1972, is amended as follows:

27-104-3. In addition to other powers and duties prescribed by statute, the Department of Finance and Administration shall have the following powers and duties, with regard to fiscal management:

(a) Provide direct technical assistance and training to state agencies and departments in implementing generally accepted accounting principles, in preparing financial statements as required by law, and in management and executive development.

(b) Provide temporary administrative services in financial accounting and public administration to any state agency, department or institution upon request of the governing board of the state agency, department or institution.

(c) Prepare and issue a comprehensive reference manual or manuals of policies and procedures for each state agency and department to use, which may include chapters on purchasing, personnel, payroll, travel, chart of accounts, fund classifications, receipts, warrants, expenditures, fixed assets, property inventory, and maintaining financial records and preparing financial reports as required and prescribed by law. The manual shall be revised on a continuing basis. The manual shall be prepared and revised in consultation with the State Auditor's office.

(d) Provide assistance to any state agency in preparing its strategic plan and any portion of an agency's legislative appropriations request as needed by the agency.

(e) Provide assistance to any state agency, department or institution in collecting a fee or other valid obligation that another agency, department or institution has failed to pay to it. For purposes of this paragraph, the agency, department or institution seeking to collect the funds shall be referred to as the "creditor agency," and the agency, department or institution that has not paid the creditor agency shall be referred to as the "delinquent agency." A valid obligation may be evidenced by an invoice or any other documentation as may be required by the Department of Finance and Administration, hereinafter referred to as the department. A creditor agency may request assistance from the department, and the department may require the creditor agency to furnish detailed information regarding the obligation. Upon determining that the delinquent agency owes the creditor agency a specific amount, the State Fiscal Officer shall pay to the creditor agency that amount out of any funds in the State Treasury to the credit of the delinquent agency. The State Fiscal Officer shall notify the creditor agency and the delinquent agency of the total amount of funds transferred. Either agency may appeal the transfer of funds or the failure to transfer funds, under rules and regulations promulgated by the department and approved by the Office of the State Auditor. The Department of Finance and Administration shall report any actions taken under this paragraph (d) to the Chairmen of the Appropriations Committees of the House of Representatives and the Senate on a quarterly basis.

SECTION 21. Section 27-104-5, Mississippi Code of 1972, is amended as follows:

27-104-5. (1) The Executive Director of the Department of Finance and Administration shall receive an annual salary to be set by the State Personnel Board, unless otherwise provided for by law. He shall devote his full time to the office and shall not pursue any other business or occupation or hold any other office of profit. The executive director (a) shall be a certified public accountant; or (b) shall possess a master's degree in business, public administration or a related field; or (c) shall have at least ten (10) years' experience in fiscal management in the private or public sector and a minimum of five (5) years' experience in a high-level management position with a documented record of management. Said qualifications shall be certified by the State Personnel Board.

The executive director shall execute a bond in some surety company authorized to do business in the state, to be approved by the Governor, and filed in the Office of the Secretary of State in the penal sum of One Hundred Thousand Dollars ($100,000.00), conditioned for the faithful and impartial discharge of the duties of his office. The premium on such bond shall be paid as provided by law out of funds appropriated to the Department of Finance and Administration.

(2) The executive director shall have the following powers and responsibilities:

(a) Employment of such professional, administrative, stenographic, secretarial, clerical and technical assistance as may be necessary to perform the duties and responsibilities of the department subject to the rules and regulations of the State Personnel Board;

(b) Developing accurate and timely revenue forecasts;

(d) Prescribing and implementing an accounting system using generally accepted accounting principles;

(e) From and after October 1, 1986, preaudit and payment of funds which shall be in accordance with all laws and regulations;

(f) Development and implementation of fiscal management training;

(g) Development of short- and long-range planning pertaining to matters of revenue forecasting;

(h) Providing assistance and expertise to state agency and institution governing bodies or other agency management, pursuant to Section 27-104-3;

(i) Cooperation and coordination with the State Auditor, State Treasurer, Commissioner of Revenue, University Research Center and the Mississippi Legislature on all matters pertaining to the fiscal matters of Mississippi state government; * * *

(j) The authority to establish training courses in programs for the personnel of the various governmental entities under the jurisdiction of the department. The training courses and programs shall include, but not be limited to, topics on internal control of funds, governmental accounting and financial reporting, internal auditing, and budgeting. The executive director is authorized to charge a fee from the participants of these courses and programs, which fee shall be deposited into a special fund created for these deposits. State and local governmental entities are authorized to pay such fee, and any travel expenses, out of their general funds or any available funds from which such payment is not prohibited by law; and

(k) To provide support to the Office of the Governor in preparing vision statements, statements of philosophy, goals and benchmarks for governmental activity as provided for in Section 3 of this act; and

(l) To assist agencies in preparing strategic plans that comply with the requirements of Section 3 of this act.

SECTION 22. Section 7-7-211, Mississippi Code of 1972, is amended as follows:

7-7-211. The department shall have the power and it shall be its duty:

(a) To identify and define for all public offices of the state and its subdivisions generally accepted accounting principles as promulgated by nationally recognized professional organizations and to consult with the State Fiscal Officer in the prescription and implementation of accounting rules and regulations;

(b) To provide best practices, for all public offices of regional and local subdivisions of the state, systems of accounting, budgeting and reporting financial facts relating to said offices in conformity with legal requirements and with generally accepted accounting principles as promulgated by nationally recognized professional organizations; to assist such subdivisions in need of assistance in the installation of such systems; to revise such systems when deemed necessary, and to report to the Legislature at periodic times the extent to which each office is maintaining such systems, along with such recommendations to the Legislature for improvement as seem desirable;

(c) To study and analyze existing managerial policies, methods, procedures, duties and services of the various state departments and institutions upon written request of the Governor, the Legislature or any committee or other body empowered by the Legislature to make such request to determine whether and where operations can be eliminated, combined, simplified and improved;

(d) To postaudit each year and, when deemed necessary, preaudit and investigate the financial affairs of the departments, institutions, boards, commissions or other agencies of state government, as part of the publication of a comprehensive annual financial report for the State of Mississippi. In complying with the requirements of this paragraph, the department shall have the authority to conduct all necessary audit procedures on an interim and year-end basis;

(e) To postaudit and, when deemed necessary, preaudit and investigate separately the financial affairs of (i) the offices, boards and commissions of county governments and any departments and institutions thereof and therein; (ii) public school districts, departments of education and junior college districts; and (iii) any other local offices or agencies which share revenues derived from taxes or fees imposed by the State Legislature or receive grants from revenues collected by governmental divisions of the state; the cost of such audits, investigations or other services to be paid as follows: Such part shall be paid by the state from appropriations made by the Legislature for the operation of the State Department of Audit as may exceed the sum of Thirty Dollars ($30.00) per man hour for the services of each staff person engaged in performing the audit or other service, which sum shall be paid by the county, district, department, institution or other agency audited out of its general fund or any other available funds from which such payment is not prohibited by law.

Each school district in the state shall have its financial records audited annually, at the end of each fiscal year, either by the State Auditor or by a certified public accountant approved by the State Auditor, except that, beginning with audits of fiscal year 2010 activity, the State Auditor shall conduct the audit of each school district at least once every four (4) years. If financial and personnel resources are not made available to the State Auditor for the purpose of ensuring that school districts are audited by the State Auditor at least once every four (4) years then, beginning with the audits of fiscal year 2010 activity, no certified public accountant shall be selected to perform the annual audit of a school district who has audited that district for three (3) or more consecutive years previously. Certified public accountants shall be selected in a manner determined by the State Auditor. The school district shall have the responsibility to pay for the audit, including the review by the State Auditor of audits performed by certified public accountants;

(f) To postaudit and, when deemed necessary, preaudit and investigate the financial affairs of the levee boards; agencies created by the Legislature or by executive order of the Governor; profit or nonprofit business entities administering programs financed by funds flowing through the State Treasury or through any of the agencies of the state, or its subdivisions; and all other public bodies supported by funds derived in part or wholly from public funds, except municipalities which annually submit an audit prepared by a qualified certified public accountant using methods and procedures prescribed by the department;

(g) To make written demand, when necessary, for the recovery of any amounts representing public funds improperly withheld, misappropriated and/or otherwise illegally expended by an officer, employee or administrative body of any state, county or other public office, and/or for the recovery of the value of any public property disposed of in an unlawful manner by a public officer, employee or administrative body, such demands to be made (i) upon the person or persons liable for such amounts and upon the surety on official bond thereof, and/or (ii) upon any individual, partnership, corporation or association to whom the illegal expenditure was made or with whom the unlawful disposition of public property was made, if such individual, partnership, corporation or association knew or had reason to know through the exercising of reasonable diligence that the expenditure was illegal or the disposition unlawful. Such demand shall be premised on competent evidence, which shall include at least one (1) of the following: (i) sworn statements, (ii) written documentation, (iii) physical evidence, or (iv) reports and findings of government or other law enforcement agencies. Other provisions notwithstanding, a demand letter issued pursuant to this paragraph shall remain confidential by the State Auditor until the individual against whom the demand letter is being filed has been served with a copy of such demand letter. If, however, such individual cannot be notified within fifteen (15) days using reasonable means and due diligence, such notification shall be made to the individual's bonding company, if he or she is bonded. Each such demand shall be paid into the proper treasury of the state, county or other public body through the office of the department in the amount demanded within thirty (30) days from the date thereof, together with interest thereon in the sum of one percent (1%) per month from the date such amount or amounts were improperly withheld, misappropriated and/or otherwise illegally expended. In the event, however, such person or persons or such surety shall refuse, neglect or otherwise fail to pay the amount demanded and the interest due thereon within the allotted thirty (30) days, the State Auditor shall have the authority and it shall be his duty to institute suit, and the Attorney General shall prosecute the same in any court of the state to the end that there shall be recovered the total of such amounts from the person or persons and surety on official bond named therein; and the amounts so recovered shall be paid into the proper treasury of the state, county or other public body through the State Auditor. In any case where written demand is issued to a surety on the official bond of such person or persons and the surety refuses, neglects or otherwise fails within one hundred twenty (120) days to either pay the amount demanded and the interest due thereon or to give the State Auditor a written response with specific reasons for nonpayment, then the surety shall be subject to a civil penalty in an amount of twelve percent (12%) of the bond, not to exceed Ten Thousand Dollars ($10,000.00), to be deposited into the State General Fund;

(h) To investigate any alleged or suspected violation of the laws of the state by any officer or employee of the state, county or other public office in the purchase, sale or the use of any supplies, services, equipment or other property belonging thereto; and in such investigation to do any and all things necessary to procure evidence sufficient either to prove or disprove the existence of such alleged or suspected violations. The Department of Investigation of the State Department of Audit may investigate, for the purpose of prosecution, any suspected criminal violation of the provisions of this chapter. For the purpose of administration and enforcement of this chapter, the enforcement employees of the Department of Investigation of the State Department of Audit have the powers of a law enforcement officer of this state, and shall be empowered to make arrests and to serve and execute search warrants and other valid legal process anywhere within the State of Mississippi. All enforcement employees of the Department of Investigation of the State Department of Audit hired on or after July 1, 1993, shall be required to complete the Law Enforcement Officers Training Program and shall meet the standards of the program;

(i) To issue subpoenas, with the approval of, and returnable to, a judge of a chancery or circuit court, in termtime or in vacation, to examine the records, documents or other evidence of persons, firms, corporations or any other entities insofar as such records, documents or other evidence relate to dealings with any state, county or other public entity. The circuit or chancery judge must serve the county in which the records, documents or other evidence is located; or where all or part of the transaction or transactions occurred which are the subject of the subpoena;

(j) In any instances in which the State Auditor is or shall be authorized or required to examine or audit, whether preaudit or postaudit, any books, ledgers, accounts or other records of the affairs of any public hospital owned or owned and operated by one or more political subdivisions or parts thereof or any combination thereof, or any school district, including activity funds thereof, it shall be sufficient compliance therewith, in the discretion of the State Auditor, that such examination or audit be made from the report of any audit or other examination certified by a certified public accountant and prepared by or under the supervision of such certified public accountant. Such audits shall be made in accordance with generally accepted standards of auditing, with the use of an audit program prepared by the State Auditor, and final reports of such audits shall conform to the format prescribed by the State Auditor. All files, working papers, notes, correspondence and all other data compiled during the course of the audit shall be available, without cost, to the State Auditor for examination and abstracting during the normal business hours of any business day. The expense of such certified reports shall be borne by the respective hospital, or any available school district funds other than minimum program funds, subject to examination or audit. The State Auditor shall not be bound by such certified reports and may, in his or their discretion, conduct such examination or audit from the books, ledgers, accounts or other records involved as may be appropriate and authorized by law;

(k) The State Auditor shall have the authority to contract with qualified public accounting firms to perform selected audits required in paragraphs (d), (e), (f) and (j) of this section, if funds are made available for such contracts by the Legislature, or if funds are available from the governmental entity covered by paragraphs (d), (e), (f) and (j). Such audits shall be made in accordance with generally accepted standards of auditing. All files, working papers, notes, correspondence and all other data compiled during the course of the audit shall be available, without cost, to the State Auditor for examination and abstracting during the normal business hours of any business day;

(l) The State Auditor shall have the authority to establish training courses and programs for the personnel of the various state and local governmental entities under the jurisdiction of the Office of the State Auditor. The training courses and programs shall include, but not be limited to, topics on internal control of funds, property and equipment control and inventory, governmental accounting and financial reporting, and internal auditing. The State Auditor is authorized to charge a fee from the participants of these courses and programs, which fee shall be deposited into the Department of Audit Special Fund. State and local governmental entities are authorized to pay such fee and any travel expenses out of their general funds or any other available funds from which such payment is not prohibited by law;

(m) Upon written request by the Governor or any member of the State Legislature, the State Auditor may audit any state funds and/or state and federal funds received by any nonprofit corporation incorporated under the laws of this state;

(n) To conduct performance audits of personal or professional service contracts by state agencies on a random sampling basis, or upon request of the State Personal Service Contract Review Board under Section 25-9-120(3);

(o) The PEER Committee may contract with the Department of Audit to assess the accuracy of reported performance measures and verify that the performance measures were produced by management systems that have adequate controls. Such contract work shall be performed in accordance with standards promulgated by the PEER Committee.

SECTION 23. Sections 27-103-121, 27-103-123, 27-103-125 and 27-103-127, Mississippi Code of 1972, which provide for the separation of the state budget into parts, shall stand repealed from and after July 1, 2013.

SECTION 24. Sections 27-103-151, 27-103-153, 27-103-155 and 27-103-157, Mississippi Code of 1972, which are the Budget and Strategic Planning Act of 1994, shall stand repealed from and after July 1, 2013.

SECTION 25. This act shall take effect and be in force from and after July 1, 2010, provided that Sections 8 through 11, and 14 through 18, 20, 21, 22, 23 and 24 shall be effective from and after July 1, 2013.