House Bill 1418

(As Passed the House)

AN ACT TO CREATE THE "AGENCY ACCOUNTABILITY REVIEW ACT OF 2018"; TO REQUIRE THE MISSISSIPPI JOINT COMMITTEE ON PERFORMANCE EVALUATION AND EXPENDITURE REVIEW (PEER) TO ESTABLISH AN ACCOUNTABILITY REVIEW SCHEDULE OF ALL STATE AGENCIES; TO ESTABLISH CRITERIA FOR PEER'S REVIEW OF STATE AGENCIES; TO REQUIRE THE AGENCY UNDER REVIEW TO SUBMIT CERTAIN INFORMATION TO PEER; TO EXEMPT CERTAIN AGENCIES FROM REVIEW UNDER THIS ACT; TO AMEND SECTION 5-3-57, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; TO AMEND SECTION 25-43-3.114, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT ALL RULES ADOPTED UNDER THE PROVISIONS OF THE ADMINISTRATIVE PROCEDURES ACT SHALL AUTOMATICALLY REPEAL ON DECEMBER 31 OF THE FIFTH YEAR FOLLOWING THE RULE'S INITIAL ADOPTION UNLESS THE RULE HAS BEEN READOPTED AT LEAST 60 DAYS BEFORE ITS SCHEDULED REPEAL; TO REQUIRE THAT BY JANUARY 15 OF EACH YEAR, EACH AGENCY SHALL PROVIDE A LIST AND SUMMARY OF EACH RULE SCHEDULED TO EXPIRE THAT YEAR TO THE CHAIRS OF THE APPROPRIATE STANDING COMMITTEES OF THE LEGISLATURE; AND FOR RELATED PURPOSES.

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

SECTION 1. This act is known and may be cited as the "Agency Accountability Review Act of 2018."

SECTION 2. It is the policy of the State of Mississippi to provide accountability to the taxpayers by prioritizing core functions of government and doing away with that which is not a core function. To that end, the Agency Accountability Review Act of 2018 requires the Mississippi Joint Committee on Performance Evaluation and Expenditure Review (PEER) to conduct a thorough and regular review of agencies as a mechanism to help evaluate agencies and to determine whether they are still relevant and fulfilling a necessary function of government.

SECTION 3. As used in Sections 1 through 7 of this act, the following words and phrases have the meanings ascribed in this section unless the context clearly indicates otherwise:

(a) "Agency" means state agencies, boards, commissions, advisory committees and task forces created by statute or administrative regulation. The term does not include any agency, board, commission, advisory committee or task force created by executive order.

(b) "PEER" means the Mississippi Joint Committee on Performance Evaluation and Expenditure Review.

(c) "Report" means the comprehensive written document published yearly which details the review of the designated agencies for that year and addresses the review criteria outlined in Section 5 of this act.

SECTION 4. (1) Before October 1, 2018, PEER shall establish an accountability review schedule designating three (3) to five (5) agencies to be reviewed every year beginning in 2019.

(2) On January 1, 2019, PEER shall begin conducting an accountability review of the designated agencies for that year and continue thereafter to review agencies according to the review schedule.

(3) Before December 15 of each year, PEER shall conclude the review of the agencies designated for that year and publish the report of the review. The report shall be a public record and subject to the Mississippi Public Records Act of 1983.

(4) The report must be delivered to members of the Legislature, the Lieutenant Governor and the Governor on December 15 of each year and made public on December 31 of each year.

SECTION 5. (1) PEER's review of a designated agency and subsequent report must consider and address the following criteria:

(a) The efficiency and effectiveness with which the agency operates;

(b) An identification of the mission, goals and objectives intended for the agency and of the problem or need that the agency was intended to address and the extent to which the mission, goals and objectives have been achieved and the problem or need has been addressed;

(c) An identification of any activities of the agency in addition to those granted by statute and of the authority for those activities and the extent to which those activities are needed;

(d) The extent to which the jurisdiction of the agency and the programs administered by the agency overlap or duplicate those of other agencies, the extent to which the agency coordinates with those agencies, and the extent to which the programs administered by the agency can be consolidated with the programs of other state agencies;

(e) The promptness and effectiveness with which the agency addresses complaints concerning entities or other persons affected by the agency, including an assessment of the agency's administrative hearings process;

(f) An assessment of the agency's rulemaking process and the extent to which the agency has encouraged participation by the public in making its rules and decisions and the extent to which the public participation has resulted in rules that benefit the public;

(g) The extent to which the agency has complied with:

(i) Federal and state laws and applicable rules regarding equality of employment opportunity and the rights and privacy of individuals; and

(ii) State law and applicable rules of any state agency regarding purchasing guidelines and programs for historically underutilized businesses;

(h) The extent to which the agency issues and enforces rules relating to potential conflicts of interest of its employees;

(i) The extent to which the agency complies with public records requests and responds to such requests efficiently;

(j) The effect of federal intervention or loss of federal funds if the agency is abolished; and

(k) The extent to which the purpose and effectiveness of reporting requirements imposed on the agency justifies the continuation of the requirement.

(2) The report also must address and make recommendations:

(a) On the abolition, continuation, reorganization or consolidation of each affected state agency and on the need for the performance of the functions of the agency;

(b) To improve the operations of the agency, its policy body and its advisory committees, including management recommendations that do not require a change in the agency's enabling statute; and

(3) If possible, the report must include the estimated fiscal impact of its recommendations and may recommend appropriation levels for certain programs to improve the operations of the state agency.

(4) If the report cannot sufficiently address any of the criteria outlined in subsections (1) through (3) of this section, the report should note why it does not address the criteria.

SECTION 6. (1) On December 1 before the year during which an agency is subject to review, the agency may submit to PEER:

(a) Information related to and addressing the criteria outlined in Section 5 of this act which PEER is required to consider in its review; and

(b) Any other information that the agency considers appropriate.

(2) On December 1 before the year during which an agency is subject to review, the agency shall submit to PEER:

(a) A list of all reports that the agency is required by statute to prepare; and

(b) An evaluation of the need for each report listed in paragraph (a) of this subsection based on whether factors or conditions have changed since the date the statutory requirement to prepare the report was enacted.

SECTION 7. Certain agencies may be exempt from review under this act under the following conditions:

(a) In any time during the two (2) calendar years before PEER is to begin review of a particular agency, the Legislature passes legislation exempting an agency for a particular year's review; or

(b) PEER may exempt an agency that has been: (i) inactive for two (2) calendar years before PEER is to begin review of that particular agency; or (ii) rendered inactive by an action of the Legislature.

SECTION 8. Section 5-3-57, Mississippi Code of 1972, is amended as follows:

5-3-57. The committee shall have the following powers:

(a) To conduct, in any manner and at any time deemed appropriate, a performance evaluation of all agencies. It may examine or investigate the budget, files, financial statements, records, documents or other papers of the agency deemed necessary by the committee.

(b) To conduct, in any manner and at any time deemed appropriate, a review of the budget, files, financial statements, records, documents or other papers, as deemed necessary by the committee, of any agency; to make selected review of any funds expended and programs previously projected by such agency; to investigate any and all salaries, fees, obligations, loans, contracts, or other agreements or other fiscal function or activity of any official or employee thereof (including independent contractors where necessary); and to do any and all things necessary and incidental to the purposes specifically set forth in this section.

(c) To conduct an investigation of all agencies which are, in whole or in part, operated or supported by any appropriation or grant of state funds, or which are, in whole or in part, supported or operated by any funds derived from any statewide tax, license fee, or permit fee or which collects or administers any statewide tax, license fee, or permit fee by whatever name called; such committee shall also have full and complete authority to investigate all laws administered and enforced by any such offices, departments, agencies, institutions and instrumentalities, and the manner and method of the administration and enforcement of such laws; to investigate any evasion of any statewide tax, privilege fee or license fee; to investigate all disbursements of public funds by any office, agency, department, institution or instrumentality specified herein; to study the present laws relative to such agencies, offices, departments, institutions and instrumentalities, and the laws providing for the levying or imposition and collection of any state tax, privilege fee or license fee; to make recommendations to the Legislature as to the correction of any imperfections, inequalities or injustices found to exist in any of such laws, and to do any and all things necessary and incidental to the purposes herein specifically set forth. * * *~~Provided further that~~ The committee shall, upon petition by one-half (1/2) the elected membership of either the Senate or House of Representatives, perform a complete investigation and audit of any agency, entity or group subject to investigation or audit by passage of Sections 5-3-51 through 5-3-69.

(d) The committee, in its discretion, if it determines that such action is necessary to carry out the responsibilities of Sections 5-3-51 through 5-3-69, may employ an attorney or attorneys to file or assist the Attorney General's office in filing actions for the recovery of any funds discovered to have been misused or misappropriated and to prosecute or assist in prosecution of criminal violations, if any, revealed or discovered in the discharging of their duties and responsibilities.

(e) To carry out the provisions of the Agency Accountability Review Act of 2018.

SECTION 9. Section 25-43-3.114, Mississippi Code of 1972, is amended as follows:

25-43-3.114. At least every five (5) years, each agency shall review all of its rules to determine whether any rule should be repealed, amended or a new rule adopted. All rules adopted under the provisions of this chapter shall automatically repeal on December 31 of the fifth year following the rule's initial adoption unless the rule has been readopted at least sixty (60) days before its scheduled repeal. If a rule is readopted, the rule-making process for formulation and adoption of a rule outlined in this chapter shall be used. By January 15 of each year, each agency shall provide a list and summary of each rule scheduled to expire that year to the chairs of the appropriate standing committees of the Legislature.

SECTION 10. This act shall take effect and be in force from and after July 1, 2018.