MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Ways and Means

By: Representative Bowles

AN ACT TO AMEND SECTION 57-10-511, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES THE MISSISSIPPI DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT TO PROVIDE GRANT FUNDS TO PLANNING AND DEVELOPMENT DISTRICTS AND QUALIFIED ENTITIES UNDER THE MISSISSIPPI SMALL BUSINESS ASSISTANCE ACT, TO REMOVE THE REPEALER ON SUCH SECTION; TO AMEND SECTION 57-63-25, TO REQUIRE THAT THE PROCEDURE FOR MONITORING THE IMPLEMENTATION OF THE STATE ECONOMIC DEVELOPMENT ACTION PLAN INCLUDE A PROCESS FOR THE EVALUATING THE ROLE OF PLANNING AND DEVELOPMENT DISTRICTS; TO AMEND SECTION 57-63-33, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT ANNUAL REVISIONS OF THE STATE ECONOMIC DEVELOPMENT ACTION PLAN INCLUDE OFFICIAL GOALS AND A QUANTIFIABLE METHOD OF MEASUREMENT IN THE ACHIEVEMENT OF SUCH GOALS WITH A PROJECTED TIME TABLE FOR FULFILLMENT OF SUCH GOALS; TO AMEND SECTION 25-9-120, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT CERTAIN STATE AGENCY CONTRACTS WITH PLANNING AND DEVELOPMENT DISTRICTS WILL BE SUBJECT TO REVIEW BY THE PERSONAL SERVICE CONTRACT REVIEW BOARD; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 57-10-511, Mississippi Code of 1972, is amended as follows:

57-10-511. * * * DECD shall grant funds under this article to a planning and development district or qualified entity in accordance with the following terms and conditions:

(a) Grant funds received by a planning and development district or qualified entity in accordance with this article shall be used by the planning and development district or qualified entity to establish a revolving assistance fund for the purpose of providing assistance to small businesses in accordance with this article. Except as otherwise allowed in this article, all principal and interest payments by small businesses in repayment of such assistance shall be eligible for and used by the planning and development district or qualified entity for additional assistance to small businesses in accordance with this article.

(b) Each planning and development district meeting the criteria set forth in this article shall receive an initial grant of not to exceed One Million Dollars ($1,000,000.00) for the purpose of establishing the program within its area in accordance with this article. Each qualified entity meeting the criteria set forth in this article shall be eligible to receive an initial grant of Five Hundred Thousand Dollars ($500,000.00) for the purpose of establishing the program within the area it serves in accordance with this article. The total amount of initial grants to planning and development districts shall not exceed Ten Million Dollars ($10,000,000.00) and the total amount of initial grants for qualified entities shall not exceed Two Million Dollars ($2,000,000.00). Each planning and development district or qualified entity receiving an initial grant shall have twelve (12) months in which to make binding commitments to provide assistance to small businesses in the principal amount of the initial grant in accordance with this article. Grant funds not committed to provide assistance to small businesses at the end of twelve (12) months after receipt thereof by the planning and development district or qualified entity shall be returned to DECD for placement in a pool to be redistributed by DECD to planning and development districts or qualified entities which have binding commitments to distribute as assistance all their initial grant funds and have pending applications for additional assistance in accordance with this article. Any planning and development district or qualified entity returning any such grant funds to DECD shall be required at the time such initial grant funds are returned to deliver to the State Treasury, for deposit in the General Fund, interest on the amount of such returned funds at the same rate as any bonds or notes of the State of Mississippi issued pursuant to this article to provide such grant funds.

(c) After all of the initial grant funds have been provided as assistance to small businesses in accordance with this article, DECD shall distribute additional grant funds to each planning and development district or qualified entity qualified under this article to receive and requesting such funds in whatever amounts DECD deems appropriate and when needed by such planning and development districts or qualified entities to provide additional assistance to small businesses in accordance with this article. The schedule for distributing such funds shall be determined by DECD. Funds distributed to planning and development districts and qualified entities pursuant to this paragraph shall be in addition to funds distributed to planning and development districts and qualified entities pursuant to paragraph (b) of this section. The total amount of grants issued pursuant to this paragraph shall not exceed Seventeen Million Dollars ($17,000,000.00) for planning and development districts or qualified entities. Grant funds not committed to provide assistance to small businesses at the end of twelve (12) months after receipt thereof by the planning and development district or qualified entity shall be returned to DECD for placement in a pool to be redistributed by DECD to planning and development districts or qualified entities which have binding commitments to distribute as assistance all their initial grant funds and have pending applications for additional assistance in accordance with this article. Any planning and development district or qualified entity returning any such grant funds to DECD shall be required at the time such grant funds are returned to deliver to the State Treasury, for deposit in the General Fund, interest on the amount of such returned funds at the same rate as any bonds or notes of the State of Mississippi issued pursuant to this article to provide such grant funds.

(d) A planning and development district or qualified entity participating in the program may utilize not more than fifty percent (50%) of interest earned on assistance provided to small businesses in accordance with this article for administration and management of the program, unless specifically authorized to utilize more by DECD; provided, however, any interest earned on grant funds held by a planning and development district or qualified entity prior to the utilization of such grant funds to provide assistance to small business shall be placed in the revolving assistance fund of the planning and development district or qualified entity and shall not be expended for administration or management costs. Planning and development districts and qualified entities may retain fifty percent (50%) of the interest earned on repayment funds that are being held on deposit in anticipation of relending to aid in the administration and management of the program. Each planning and development district and qualified entity shall file annually with the Secretary of the Senate and the Clerk of the House of Representatives not later than the first day of each regular legislative session a report which details any interest retained or utilized by the planning and development district or qualified entity pursuant to this paragraph (d).

(e) If a planning and development district or qualified entity participating in the program experiences losses from assistance provided pursuant to the program in excess of fifty percent (50%) of the amount of grant funds received by the planning and development district or qualified entity, the planning and development district or qualified entity shall repay the State of Mississippi the amount of such losses in excess of fifty percent (50%) by delivering that amount to the State Treasury for deposit in the General Fund.

(f) DECD shall assist each planning and development district or qualified entity participating in the program in connection with such planning and development district's or qualified entity's compliance with this article.

(g) Each planning and development district or qualified entity participating in the program shall submit the following reports to the House Ways and Means Committee and the Senate Economic Development, Tourism and Parks Committee:

(i) An annual audit of grant funds received in connection with the program; and

(ii) A semiannual report on July 15 and January 15 of each year, describing all assistance provided to small businesses pursuant to the program, such reports to include without limitation the following: a description of each small business receiving assistance; the project to be assisted and purpose of assistance; a description of each loan and equity investment, including the terms and conditions thereof and use of the funds assistance by the small business; history of the assistance pool, including principal amount loaned, interest earned, interest expended for administration and management, principal amount of equity investments, assistance funds available, and losses; and a statement of jobs created or retained as a result of the assistance program.

(h) If DECD determines that a district or entity has provided assistance to small businesses in a manner inconsistent with the provisions of this article, then the amount of such assistance so provided shall be withheld by DECD from any additional grant funds to which the district or entity becomes entitled under this article. If DECD determines, after notifying such district or entity twice in writing and providing such district or entity a reasonable opportunity to comply, that a planning and development district or qualified entity has consistently failed to comply with this article in connection with the program, DECD may declare such planning and development district or qualified entity in default under the program and, upon receipt of notice thereof from DECD, such planning and development district or qualified entity shall immediately cease providing assistance under the program, shall refund to DECD for distribution to other planning and development districts or qualified entities all funds held in its revolving assistance fund and, if required by DECD, shall convey to DECD all administrative and management control of assistance provided by it under the program.

SECTION 2. Section 57-63-25, Mississippi Code of 1972, is amended as follows:

57-63-25. Part III of the economic development plan shall provide a procedure for monitoring the implementation of the state's economic development efforts. In formulating this procedure, the University Research Center will survey, identify and analyze every government program and private resource and activity that is available to, that is being applied toward, or that contributes to the accomplishment of the goals set in the long range plan. The resources and economic development activities (programs) of state government, local government, federal government and private business shall be identified and analyzed to determine the specific areas in which they contribute to achievement of the overall goals.

The planning and development districts shall be utilized fully in determining the goals established herein and shall be the primary source of information and analysis as to local and regional economic priorities as well as the identification and reporting of local governments and local and regional private business resources available for the accomplishment of such goals. The procedure for monitoring the implementation of the economic development plan shall include a process for evaluating the role of the planning and development districts, including a listing of official goals in order of priority and a method of assessing the progress of the planning and development districts in fulfilling official goals.

Each agency and institution of state government involved in economic development, including the Institute for Technology Development and the state universities and junior colleges, is hereby directed to prepare and submit to the Department of Economic Development, the University Research Center and the Legislative Budget Committee work programs covering their economic development activities. The University Research Center shall specify a uniform format for agencies to follow in preparing their work programs. These work programs shall cover in general the next five (5) years of the plan and, in significant detail, the upcoming fiscal year. With each annual work program for the upcoming fiscal year, each agency shall make a full report on accomplishments of its previous year's work program. Work programs shall be submitted by August 15, 1987, for fiscal year 1988 by those agencies identified by the Department of Economic Development as being required to submit work programs in accordance with this chapter. Work programs submitted August 15, 1987 shall report on accomplishments of the prior fiscal year's work in economic development activities. The work program for fiscal year 1989, and for succeeding years, shall be submitted on June 1 prior to the beginning of the ensuing fiscal year. The state long range plan shall require copies of the overall economic development plans from each of the ten (10) planning and development districts to be submitted annually to the University Research Center along with annual work programs and details of accomplishments of the prior fiscal year's work program. These materials shall be incorporated by reference in Part III of the plan.

SECTION 3. Section 57-63-33, Mississippi Code of 1972, is amended as follows:

57-63-33. The University Research Center shall present the annual revisions of the plan to the Joint Legislative Budget Committee prior to the annual budget hearings and discuss with the joint committee Parts III, IV and V. The presentation shall review the established goals and report and assess progress for the current reporting period of achieving official goals and make recommendations for any program changes that might be needed. Annual revisions of the plan shall include official goals in order of priority, a quantifiable method of measuring the achievement of such goals and a projected time table for achieving such goals. Additional reports shall be made to the Joint Legislative Budget Committee as requested and as required by Section 57-63-9. Copies of the plan shall also be presented to the Department of Economic Development, the planning and development districts, and other appropriate agencies and organizations.

SECTION 4. Section 25-9-120, Mississippi Code of 1972, is amended as follows:

25-9-120. (1) Contract personnel, whether classified as contract workers or independent contractors shall not be deemed state service or nonstate service employees of the State of Mississippi, and shall not be eligible to participate in the Public Employees' Retirement System, or the state employee health plan, nor be allowed credit for personal and sick leave and other leave benefits as employees of the State of Mississippi, notwithstanding Sections 25-3-91 through 25-3-101; 25-9-101 through 25-9-151; 25-11-1 through 25-11-126; 25-11-128 through 25-11-131; 25-15-1 through 25-15-23 and for the purpose set forth herein. Contract workers, i.e., contract personnel who do not meet the criteria of independent contractors, shall be subject to the provisions of Section 25-11-127.

(2) There is hereby created the Personal Service Contract Review Board, which shall be composed of the State Personnel Director, the Executive Director of the Department of Finance and Administration, or his designee, the Commissioner of Corrections, or his designee, the Executive Director of the Mississippi Department of Wildlife and Fisheries, or his designee, and the Executive Director of the Department of Environmental Quality, or his designee. The State Personnel Director shall be chairman and shall preside over the meetings of the board. The board shall annually elect a vice chairman, who shall serve in the absence of the chairman. No business shall be transacted, including adoption of rules of procedure, without the presence of a quorum of the board. Three (3) members shall be a quorum. No action shall be valid unless approved by the chairman and two (2) other of those members present and voting, entered upon the minutes of the board and signed by the chairman. Necessary clerical and administrative support for the board shall be provided by the State Personnel Board. Minutes shall be kept of the proceedings of each meeting, copies of which shall be filed on a monthly basis with the Legislative Budget Office.

(3) The Personal Service Contract Review Board shall have the following powers and responsibilities:

(a) Promulgate rules and regulations governing the solicitation and selection of contractual services personnel including personal and professional services contracts for any form of consulting, policy analysis, public relations, marketing, public affairs, legislative advocacy services or any other contract that the board deems appropriate for oversight, with the exception of any personal service contracts entered into for computer or information technology-related services governed by the Mississippi Department of Information Technology Services, any personal service contracts entered into by the Mississippi Department of Transportation, and any contract for attorney, accountant, auditor, physician, dentist, architect, engineer, veterinarian and utility rate expert services. Any such rules and regulations shall provide for maintaining continuous internal audit covering the activities of such agency affecting its revenue and expenditures as required under Section 7-7-3(6)(d), Mississippi Code of 1972;

(b) Approve all personal and professional services contracts involving the expenditures of funds in excess of One Hundred Thousand Dollars ($100,000.00);

(c) Develop standards with respect to contractual services personnel which require invitations for public bid, requests for proposals, record keeping and financial responsibility of contractors. The Personal Service Contract Review Board may, in its discretion, require the agency involved to advertise such contract for public bid, and may reserve the right to reject any or all bids;

(d) Prescribe certain circumstances whereby agency heads may enter into contracts for personal and professional services without receiving prior approval from the Personal Service Contract Review Board. The Personal Service Contract Review Board may establish a pre-approved list of providers of various personal and professional services for set prices with which state agencies may contract without bidding or prior approval from the board;

(e) To provide standards for the issuance of requests for proposals, the evaluation of proposals received, consideration of costs and quality of services proposed, contract negotiations, the administrative monitoring of contract performance by the agency and successful steps in terminating a contract;

(f) To present recommendations for governmental privatization and to evaluate privatization proposals submitted by any state agency;

(g) To authorize personal and professional service contracts to be effective for more than one (1) year provided a funding condition is included in any such multiple year contract;

(h) To request the State Auditor to conduct a performance audit on any personal or professional service contract;

(i) Prepare an annual report to the Legislature concerning the issuance of personal service contracts during the previous year, collecting any necessary information from state agencies in making such report.

(4) Any state agency contract with a planning and development district which meets any of the conditions of this section shall be subject to review by the Personal Service Contract Review Board.

(5) No member of the Personal Service Contract Review Board shall use his official authority or influence to coerce, by threat of discharge from employment, or otherwise, the purchase of commodities or the contracting for personal or professional services under this section.

SECTION 5. This act shall take effect and be in force from and after July 1, 1999.