House Bill 645

AN ACT TO PROVIDE THAT WHENEVER THE STATE RECEIVES ANY FEDERAL FUNDS THAT ARE REQUIRED OR AUTHORIZED TO BE USED FOR A PARTICULAR PROGRAM OR PURPOSE AS SPECIFIED IN FEDERAL LAW OR REGULATIONS, THE GOVERNOR OR STATE AGENCY EXECUTIVE DIRECTOR HAVING CONTROL OF THE FUNDS SHALL NOT RETURN ANY OF THOSE FUNDS TO THE FEDERAL GOVERNMENT AS LONG AS THERE IS STILL A DEMONSTRABLE NEED FOR THOSE FUNDS IN THE PROGRAM OR FOR THE PURPOSE FOR WHICH THE FUNDS WERE PROVIDED, UNLESS FEDERAL GOVERNMENT REQUIRES THE STATE TO RETURN THE FUNDS; TO PROVIDE THAT IF THE GOVERNOR OR STATE AGENCY EXECUTIVE DIRECTOR HAVING CONTROL OF THE FUNDS DETERMINES THAT THE PROGRAM OR PURPOSE FOR WHICH THE FUNDS WERE PROVIDED COULD BE BETTER ADMINISTERED BY NONPROFIT ENTITIES OR OTHER NONGOVERNMENTAL ENTITIES THAN BY THE STATE, THE FUNDS MAY BE TRANSFERRED TO SUCH ENTITIES TO ADMINISTER THE PROGRAM OR PURPOSE FOR WHICH THE FUNDS WERE PROVIDED, IF ALLOWED BY FEDERAL LAW AND REGULATIONS AND ONLY IN ACCORDANCE WITH THE FEDERAL LAW AND REGULATIONS; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this section, the term "federal funds" means funds provided to the State of Mississippi by the federal government or an agency of the federal government that, according to the federal law or regulations governing the funds, are under the exclusive control and direction of the Governor or a state agency whose executive director serves at the will and pleasure of the Governor, without having to be appropriated by the Legislature, regardless of whether the Governor or state agency executive director applied to receive those funds.

(2) Whenever the State of Mississippi receives any federal funds that are required or authorized to be used for a particular program or purpose as specified in federal law or regulations, the Governor or state agency executive director having control of the funds shall not return any of those funds to the federal government as long as there is still a demonstrable need for those funds in the program or for the purpose for which the funds were provided, unless federal government requires the state to return the funds. The determination of whether there is still a demonstrable need for those funds in the program or for the purpose for which the funds were provided shall be made by the Attorney General.

(3) If the Governor or state agency executive director having control of the funds determines that the program or purpose for which the funds were provided could be better administered by nonprofit entities or other nongovernmental entities than by the state, the funds may be transferred to such entities to administer the program or purpose for which the funds were provided, if allowed by federal law and regulations and only in accordance with the federal law and regulations.

SECTION 2. This act shall take effect and be in force from and after July 1, 2023.