Senate Bill 2375

AN ACT TO CREATE THE SMALL MUNICIPALITIES FEDERAL MATCH FUND AS A SPECIAL FUND IN THE STATE TREASURY FOR THE PURPOSE OF PROVIDING MATCHING FUNDS TO SMALL COMMUNITIES THROUGHOUT MISSISSIPPI WHICH RECEIVE DISCRETIONARY FEDERAL FUNDS; TO PROVIDE THAT MONIES APPROPRIATED OUT OF THE FUND MAY BE USED TO REIMBURSE ACTUAL OVERSIGHT COSTS INCURRED BY THE DEPARTMENT OF FINANCE AND ADMINISTRATION UP TO A CERTAIN AMOUNT; TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO FILE A REPORT ON THE FUND TO CERTAIN PUBLIC OFFICIALS; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) There is created a special fund in the State Treasury to be known as the "Small Municipalities Federal Match Fund" which shall consist of monies from any source designated for deposit into the fund. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any investment earnings or interest earned on amounts in the fund shall be deposited to the credit of the fund.

(2) (a) Monies in the fund shall be disbursed by the Department of Finance and Administration for the purpose of providing funds to small municipalities throughout Mississippi which receive discretionary federal funds.

(b) As used in this section, "small municipality" shall mean a municipality which has a population of less than ten thousand (10,000) according to the latest federal decennial census.

(c) In addition to the purposes in paragraph (a) of this subsection, monies appropriated out of the fund may be used to reimburse reasonable actual and necessary oversight costs incurred by the Mississippi Development Authority in administering this fund. Reimbursement of reasonable actual and necessary costs and expenses for assistance shall not exceed one and twenty-five one-hundredths percent (1.25%) of the monies appropriated out of the fund.

(3) On or before January 5 of each year, the Department of Finance and Administration shall file an accounting of and report on funds disbursed from the Small Municipalities Federal Match Fund, including an accounting of the actual costs and expenses incurred by the department and the amount of funds disbursed. The report shall be filed with the Speaker of the House, the Lieutenant Governor, the Chairs of the Appropriations Committees of the Senate and the House, the Chair of the Finance Committee of the Senate, the Chair of the Ways and Means Committee of the House and the Governor.

SECTION 2. This act shall take effect and be in force from and after July 1, 2025.