1998 Regular Session
To: Universities and Colleges
By: Representative Scott (80th)
House Bill 1501
AN ACT TO AMEND SECTIONS 7-9-23 AND 7-7-1, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE BOARD OF TRUSTEES OF ANY COMMUNITY/JUNIOR COLLEGE DISTRICT AND THE BOARD OF TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNING TO DESIGNATE THE STATE TREASURER AS THE CUSTODIAN OF ANY ENDOWMENT FUNDS GIVEN FOR THE BENEFIT OF ANY COLLEGE OR UNIVERSITY UNDER ITS JURISDICTION, AND TO AUTHORIZE AND DIRECT THE STATE TREASURER TO ACCOUNT FOR AND INVEST SUCH FUNDS IN THE MANNER PROVIDED BY LAW FOR OTHER STATE GENERAL AND SPECIAL FUNDS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 7-9-23, Mississippi Code of 1972, is amended as follows:
7-9-23. (1) The State Treasurer is designated as sole agent to receive on State Fiscal Officer's pay warrant and disburse any and all funds received from sources other than those designated by law on State Fiscal Officer's warrant, which funds are to be expended under the direction and supervision of state officials or agencies for the benefit of the state. The State Treasurer is authorized and directed to receive on State Fiscal Officer's pay warrant any and all funds above specified and to be credited, each fund to a trust account for which the donor intends it. The special trust account shall designate for what purpose it is donated, and the State Fiscal Officer's books and Treasurer's books shall carry it as such. All funds shall be paid out on requisition signed by the proper agent or agents, properly supported by itemized vouchers, designated so to do on a warrant issued by the State Fiscal Officer upon the State Treasurer. Funds intended to be controlled by this section are those coming from the federal government, foundations and individuals to be expended for educational purposes, roads, agriculture, for making economic or social surveys, and for similar purposes. In no way shall this section interfere with or prevent the purpose of the donor. The state agent or official best fitted or qualified to direct the expenditure of a fund for a specified purpose or the official designated by the donor shall expend the funds, and is hereby given authority in the manner outlined herein.
(2) The board of trustees of any community/junior college on behalf of any endowment funds established for the benefit of a community/junior college under its jurisdiction, and the Board of Trustees of State Institutions of Higher Learning on behalf of any endowment funds established for the benefit of any university under their jurisdiction, are hereby authorized and empowered, in their discretion, by order spread upon their minutes, to designate the State Treasurer as the custodian of said fund. Any such funds so designated shall be deposited in the State Treasury and the State Treasurer is authorized and directed to receive any and all such endowment funds and to credit each fund to a trust account for which the donor intends it. The State Treasurer shall invest such funds (a) in the same manner as are invested other funds deposited into the State General Fund as provided in Section 27-105-33; or (b) in the same manner as is invested the Mississippi Prepaid Affordable College Tuition Trust Fund as provided in Section 37-155-9; or (c) in the same manner as is invested the Education Improvement Trust Fund as provided in Section 7-9-103. The interest on such account shall be deposited to the credit of the endowment fund. The endowment trust account shall designate for what purpose it is donated, and the State Treasurer's books shall carry it as such. All endowment funds shall be paid out on requisition signed by the proper agent or agents of the community/junior college district or university, as the case may be, properly supported by itemized vouchers, designated on a warrant issued upon the State Treasurer. The official best qualified to direct the expenditure of an endowment fund or the official designated by the donor shall expend the funds, and is hereby given authority in the manner outlined in the trust instrument. The board of trustees of any community/junior college or the Board of Trustees of State Institutions of Higher Learning may withdraw any such trust funds deposited with the State Treasurer as custodian with thirty (30) days' written notice to the State Treasurer, or sooner as agreed to by the State Treasurer.
SECTION 2. Section 7-7-1, Mississippi Code of 1972, is amended as follows:
7-7-1. (1) As used in this chapter, the terms "State Auditor" and "Auditor" mean the Auditor of Public Accounts.
(2) As used in this chapter, the term "State Fiscal Officer" means the official created in Section 27-104-5, acting through the Bureau of Budget and Fiscal Management.
(3) "Agency" means any state board, commission, committee, council, department or unit thereof created by the Constitution or statutes if such board, commission, committee, council, department, unit or the head thereof is authorized to appoint subordinate staff by the Constitution or statute, except a legislative or judicial board, commission, committee, council, department or unit thereof.
(4) For the purposes of Sections 7-7-1 through 7-7-65, the term "public funds" shall mean all funds which are received, collected by, or available for the support of or expenditure by any state department, institution or agency, whether such funds be derived from taxes or from fees collected by such state department, institution or agency or from some other source, and which should be included in the entity of the state under generally accepted accounting principles, although such funds may not be required by law to be deposited in the State Treasury.
Funds such as endowment funds and research funds, special building and plant funds, funds of a proprietary function, and the like shall be excluded from the meaning of the term, unless specifically required by law to be handled through the State Treasury or unless deemed necessary by the State Fiscal Officer to be included, or unless specifically designated as provided under Section 7-9-23(2).
All funds of state departments, institutions and agencies within the contemplation of this section that are not required by law to be deposited in the State Treasury, or are not declared to be exempt from the provisions of Sections 7-7-1 through 7-7-65 by the State Fiscal Officer shall be reported to the State Fiscal Officer in reports of revenues, expenditures, assets, liabilities, encumbrances, fund balances and other financial statements, at such times and in the form required by the State Fiscal Officer.
It is hereby declared to be the intent of this section to provide that all "public funds" necessary to present a complete and comprehensive statement of the fiscal operations of the state government shall be handled through the State Fiscal Officer, whether through State Fiscal Officer receipt warrants and disbursement warrants, as is generally provided, or through the method of reporting, as required herein.
SECTION 3. This act shall take effect and be in force from and after July 1, 1998.