MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Oil, Gas and Other Minerals; Appropriations

By: Senator(s) Hall

AN ACT TO CREATE THE MISSISSIPPI OIL OVERCHARGE FUND; TO REQUIRE OIL OVERCHARGE FUNDS TO BE DEPOSITED INTO SUCH FUND; TO REQUIRE LEGISLATIVE APPROPRIATION FOR THE EXPENDITURE OF SUCH FUNDS; TO REQUIRE THE LEGISLATIVE BUDGET OFFICE TO DEVELOP CRITERIA AND RECOMMENDATIONS FOR THE USE OF THE FUNDS; TO AMEND SECTIONS 27-103-101 AND 27-103-117, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO CREATE THE MISSISSIPPI OIL OVERCHARGE REVIEW COMMITTEE; TO REQUIRE APPROVAL OF CERTAIN PROJECTS AND CONTRACTS REQUIRING DISBURSEMENT OF OIL OVERCHARGE FUNDS; TO PROVIDE FOR EXPENDITURE OF OIL OVERCHARGE FUNDS; AND FOR RELATED PURPOSES.  

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

SECTION 1. The Legislature declares that there are funds available to this state as a result of settlements of litigation brought by the United States Department of Energy against oil companies and refineries. It is the intent of the Legislature that funds received as a result of federal statute or administrative or regulatory actions requiring the disbursement to states of refund monies for alleged overcharges for crude oil or refined petroleum products sold during the period of time in which federal price controls on such crude oil or refined petroleum products were in effect, whether by themselves or in conjunction with other monies appropriated by the Legislature, may not be expended unless authorized by legislative appropriation.

SECTION 2. (1) There is hereby created in the State Treasury a fund to be designated as the "Mississippi Oil Overcharge Fund," hereinafter referred to in this section as "fund." Monies in the fund shall be used for projects or programs authorized pursuant to decisions of the federal courts or guidelines established by the United States Department of Energy, upon authorization by legislative appropriation.

(2) The State Treasurer shall deposit or transfer into the fund any monies received as a result of federal statute, judicial action or administrative or regulatory actions requiring the disbursement to states of refund monies for alleged overcharges for crude oil or refined petroleum products, hereinafter referred to in this act as "oil overcharge funds." The treasurer shall establish a separate account within the fund for each oil overcharge settlement. In addition to such separate accounts for each settlement, the treasurer shall establish an account to be known as the "Oil Overcharge Contingency Account," hereinafter referred to as "account."

(3) Expenditures may be made from the fund upon requisition to the treasurer by the Executive Director of the Department of Economic and Community Development or the Executive Director of the Department of Human Services.

(4) The fund shall be treated as a special trust fund. Interest earned on the principal therein shall be credited by the treasurer to the fund.

SECTION 3. (1) On or before July 31, 1997, and June 30 of each year thereafter, each state agency, except the Department of Human Services, desiring to expend oil overcharge funds shall submit to the Department of Economic and Community Development proposals for expenditure of funds from the Mississippi Oil Overcharge Fund. Proposals shall be in such form and in such detail as the Department of Economic and Community Development may require. On or before August 15, 1997, and August 15 of each year thereafter, the Department of Human Services shall submit to the Mississippi Oil Overcharge Review Committee proposals for expenditure of oil overcharge funds for the succeeding fiscal year.

(2) The Mississippi Oil Overcharge Review Committee shall direct the Department of Economic and Community Development to submit a written recommendation on or before October 15, 1998, and October 15 of each year thereafter, to the Legislative Budget Office describing programs and projects proposed to be funded from funds available in the Mississippi Oil Overcharge Fund. As part of such recommendation, the Department of Economic and Community Development shall include a listing of all program and project proposals submitted for funding. The recommendation shall be in such form and in such detail as the Legislative Budget Office may require. Programs and projects which provide for enhancing research and development relating to the state's oil and gas resources shall receive priority consideration for funding.

SECTION 4. Section 27-103-101, Mississippi Code of 1972, is amended as follows:

27-103-101. (1) There is hereby 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 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 Appropriations Committee of the Senate and one (1) member of the Senate to be named by the Lieutenant Governor, and 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 two (2) 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 said 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 committee. A quorum shall be six (6) members, to consist of three (3) members from the Senate and three (3) 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 committee and signed by the chairman and vice-chairman. All actions of the joint committee shall be approved by at least three (3) Senate members and three (3) House members.

As used in Sections 27-103-101 through 27-103-139, the term "committee" shall mean the Joint Legislative Budget Committee.

(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. Provided, however, in no case shall the members of the committee draw per diem while the Legislature is in regular or special session.

(3) The committee shall 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) The Joint Legislative Budget Committee shall submit a written recommendation to the Appropriations Committee of the Senate and the Appropriations Committee of the House of Representatives describing projects or programs proposed to be funded from funds available in the Mississippi Oil Overcharge Fund.

SECTION 5. Section 27-103-117, Mississippi Code of 1972, is amended as follows:

27-103-117. (1) It shall be the duty of the Director of the Legislative Budget Office to familiarize himself with the operations, needs, requirements and anticipated expenses and income of all state agencies and, for such purpose, he shall have the authority to require any state agency to furnish him with any and all necessary information.

(2) On or before November 15 preceding each regular session, the Director of the Legislative Budget Office shall submit a recommendation to the Joint Legislative Budget Committee describing proposals for programs and projects to be funded from funds available in the Mississippi Oil Overcharge Fund for the succeeding fiscal year.

(3) The Director of the Legislative Budget Office is authorized to employ one (1) staff person to perform the duties of the Legislative Budget Office required under Senate Bill No. 2034, 1997 Regular Session. For this purpose the Legislative Budget Office shall request oil overcharge funds from the Department of Economic and Community Development for expenses related to carrying out Senate Bill No. 2034, 1997 Regular Session. Before June 15, 1997, the Department of Economic and Community Development shall request approval from the U.S. Department of Energy to expend funds for the Legislative Budget Office to perform the duties required under Senate Bill No. 2034, 1997 Regular Session. The Legislative Budget Office is authorized to expend funds approved for this purpose.

SECTION 6. (1) There is hereby created the Mississippi Oil Overcharge Review Committee, hereinafter in Sections 6 through 10 of this act referred to as "committee," which shall review and approve all programs and projects pertaining to the disbursement of oil overcharge funds prior to the initiation of any activity under such program or project or prior to the execution of any contract by the Executive Director of the Department of Economic and Community Development or the Executive Director of the Department of Human Services. The Mississippi Oil Overcharge Review Committee shall be comprised of the following members: the Executive Director of the Department of Economic and Community Development or his designee, the Executive Director of the Department of Environmental Quality or his designee, the Executive Director of the Department of Human Services or his designee, the Chairman of the Senate Appropriations Committee or his designee, the Chairman of the House Appropriations Committee or his designee, one (1) member appointed by the Lieutenant Governor and one (1) member appointed by the Speaker of the House of Representatives. The Director of the Legislative Budget Office shall assign a staff member to work with the Department of Economic and Community Development and the committee in carrying out Senate Bill No. 2034, 1997 Regular Session. The Lieutenant Governor and the Speaker of the House of Representatives may designate an alternate member from their respective houses to serve when the regular designees are unable to attend meetings of the committee. The legislative designees shall have no vote on any matter within the jurisdiction of the committee but may participate in any discussion relevant to the committee. For attending meetings of the committee, such legislators shall receive per diem and expenses which shall be paid from the contingent expense fund of their respective houses in the same amounts as provided for legislative committee meetings when the Legislature is not in session; however, no per diem and expense for attending meetings of the committee shall be paid while the Legislature is in session. No per diem or expenses shall be paid for attending meetings of the committee without prior approval of the proper committee in each house.

(2) The members of the committee shall meet within thirty (30) days of the effective date of this act. The Executive Director of the Department of Economic and Community Development shall serve as chairman of the committee and the Executive Director of the Department of Environmental Quality shall serve as the vice-chairman of the committee. The committee shall adopt rules governing its internal procedures. Two (2) non-legislative members shall constitute a quorum. No business shall be transacted by the committee without the presence of a quorum. All actions of the committee must be approved by a majority of those voting members present and shall be entered upon the minutes of the committee. The committee shall meet quarterly and at such other times as may be necessary. Each member of the committee shall receive notice at least five (5) days prior to each meeting.

SECTION 7. All programs, projects and contracts requiring any expenditure of oil overcharge funds must be approved by the committee prior to the expenditure of such funds. Such expenditures shall include, but not be limited to: fees, contractual expenses, equipment expenses, subsidies, loans, grants or other transfers of oil overcharge funds.

SECTION 8. No expenditure of oil overcharge funds approved by the committee shall be made until conceptual approval of the programmatic or administrative activity has been approved by the U.S. Department of Energy, a federal court having jurisdiction over oil overcharge funds, or a legal entity entitled to grant approval. The Executive Director of the Department of Economic and Community Development shall be responsible for all communication with the U.S. Department of Energy.

SECTION 9. Prior to December 31, 1997, the Department of Economic and Community Development shall conduct a complete programmatic and financial audit of all programs expending oil overcharge funds. Upon completion of such audit, the Department of Economic and Community Development shall develop a detailed written report describing its findings and recommendations and shall submit such report to the committee for review and approval. Upon approval by the committee, copies of such report shall be provided to the Governor, each member of the Joint Legislative Budget Committee and each member of the Performance Evaluation and Expenditure Review Committee.

SECTION 10. (1) To provide for the initiation of projects and programs on an expedited basis and for which funds were not otherwise appropriated, the Legislature may appropriate funds into the Oil Overcharge Contingency Account established under Section 2 of Senate Bill No. 2034, 1997 Regular Session.

(2) It is the intent of the Legislature that the mechanism for approval of expenditure of oil overcharge funds provided for in this section be utilized only for projects and programs for which the Mississippi Oil Overcharge Review Committee deems necessary to be handled on an expedited basis.

SECTION 11. This act shall take effect and be in force from and after its passage.