House Bill 1036

(As Passed the House)

AN ACT TO CREATE A SPECIAL FUND IN THE STATE TREASURY TO BE KNOWN AS THE 2004 EDUCATION CONTINGENCY FUND, WHICH SHALL BE EXPENDED FOR PUBLIC EDUCATION PURPOSES; TO DIRECT THE STATE TREASURER, FROM JULY 1, 2003, UNTIL JULY 1, 2004, TO TRANSFER TO THE 2004 EDUCATION CONTINGENCY FUND A MONTHLY SUM FROM THOSE SPECIAL FUNDS IN THE TREASURY THAT RETAIN THEIR INTEREST AND INVESTMENT EARNINGS; TO DIRECT THE TREASURER TO CHARGE AND COLLECT A CASH MANAGEMENT FEE ANNUALLY FROM EACH STATE AGENCY THAT HAS SPECIAL FUNDS IN THE TREASURY THAT RETAIN THEIR INTEREST AND INVESTMENT EARNINGS, FOR MANAGING THE CASH BALANCES OF THOSE FUNDS FOR THE BENEFIT OF THE STATE AGENCY; TO PROVIDE THAT THE CASH MANAGEMENT FEES COLLECTED FOR THE FIRST YEAR SHALL BE DEPOSITED INTO THE 2004 EDUCATION CONTINGENCY FUND; TO PROVIDE THAT THE CASH MANAGEMENT FEES COLLECTED FOR EACH ANNUAL PERIOD AFTER JULY 1, 2004, SHALL BE DEPOSITED INTO A SPECIAL FUND CREATED IN THE STATE TREASURY, WHICH SHALL BE EXPENDED TO PAY THE DEBT SERVICE ON FULL FAITH AND CREDIT BONDS OF THE STATE; TO DIRECT THE TREASURER TO TRANSFER CERTAIN FUNDS TO THE 2004 EDUCATION CONTINGENCY FUND; TO CREATE A SPECIAL FUND IN THE STATE TREASURY TO BE KNOWN AS THE SPECIAL FUNDS TRANSFER FUND, WHICH SHALL BE COMPRISED OF THE MONIES REQUIRED TO BE DEPOSITED INTO THE FUND UNDER SECTION 27-65-75(18); AND FOR RELATED PURPOSES.

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

SECTION 1. (1) There is created in the State Treasury a special fund to be known as the 2004 Education Contingency Fund, which shall be comprised of the monies required to be deposited into the fund under Sections 2, 3 and 4 of this act, and any other monies that may be made available for the fund by the Legislature.

(2) Monies in the fund shall be expended, upon appropriation by the Legislature, for public education purposes in Grades K through 12, the state institutions of higher learning and the community and junior colleges, which funding shall be in addition to the amount of the Joint Legislative Budget Committee recommendation for funding those purposes.

(3) Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited to the credit of the fund.

SECTION 2. From July 1, 2003, until July 1, 2004, the State Treasurer shall transfer to the 2004 Education Contingency Fund created in Section 1 of this act an amount equal to Fourteen Million One Hundred Sixty-six Thousand Six Hundred Sixty-seven Dollars ($14,166,667.00) each month from the aggregate of special funds in the State Treasury that are held in accounts to which the interest and investment earnings on monies in the accounts are deposited to the credit of the accounts.

SECTION 3. (1) From and after July 1, 2003, the State Treasurer annually shall charge and collect a cash management fee from each state agency that has special funds in the State Treasury that are held in an account to which the interest and investment earnings on monies in the account are deposited to the credit of the account, for managing the cash balances of the account for the benefit of the state agency. The amount of the cash management fee shall be equal to one percent (1%) of the average monthly balance in the account during the twelve-month period preceding the month in which the fee is charged to the agency.

(2) The cash management fees collected for the period from July 1, 2003, until July 1, 2004, shall be deposited into the 2004 Education Contingency Fund created in Section 1 of this act. The cash management fees collected for each annual period from and after July 1, 2004, shall be deposited into a special fund that is created in the State Treasury to the credit of the Office of the State Treasurer, which shall be expended, upon appropriation by the Legislature, for the purpose of paying maturing bonds and interest on the full faith and credit bonds of the state and paying service charges to banks for acting as agents of the state in paying bonds and interest on the full faith and credit bonds of the state. Unexpended amounts remaining in the special fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the special fund shall be deposited to the credit of the special fund.

SECTION 4. (1) The State Treasurer shall transfer to the 2004 Education Contingency Fund created in Section 1 of this act, out of the following enumerated funds, amounts listed below for each fund throughout the period beginning upon passage of this act and through June 30, 2003:

Agency/Fund Amount

Working Cash-Stabilization

Reserve Fund $ 3,754,000.00

Budget Contingency Fund $ 1,500,000.00

State General Fund $ 3,600,000.00

Total $ 8,854,000.00

(2) From and after July 1, 2003, the State Treasurer shall transfer to the 2004 Education Contingency Fund created in Section 1 of this act, out of the following enumerated funds, amounts listed below for each fund throughout the period beginning upon July 1, 2003 and through June 30, 2004:

Agency/Fund Fund No. Amount

State General Fund $31,600,000.00

Working Cash-Stabilization

Reserve Fund 25,000,000.00

Securities Act Enforcement

Fund 3114 $ 4,000,000.00

Total $60,600,000.00

The transfer of the full amount of the Twenty-five Million Dollars ($25,000,000.00) from the Working Cash-Stabilization Reserve Fund under this subsection is contingent upon the amount that the Executive Director of the Department of Finance and Administration has transferred from the Working Cash-Stabilization Reserve Fund to the State General Fund under Section 27-103-203(4) during fiscal year 2003. If the executive director has transferred less than a total of Twenty-five Million Dollars ($25,000,000.00) to the General Fund under Section 27-103-203(4) during fiscal year 2003, then the Treasurer shall transfer the full amount of Twenty-five Million Dollars ($25,000,000.00) from the Working Cash-Stabilization Reserve Fund under this subsection. If the executive director has transferred more than a total of Twenty-five Million Dollars ($25,000,000.00) to the General Fund under Section 27-103-203(4) during fiscal year 2003, then the Treasurer shall reduce the amount of the transfer from the Working Cash-Stabilization Reserve Fund under this subsection by the same amount that the transfer made by the executive director under Section 27-103-203(4) during fiscal year 2003 exceeds Twenty-five Million Dollars ($25,000,000.00).

SECTION 5. (1) There is created in the State Treasury a special fund to be known as the Special Funds Transfer Fund, which shall be comprised of the monies required to be deposited into the fund under Section 27-65-75(18). Upon receipt of monies deposited into the fund under Section 27-65-75(18), the State Treasurer shall transfer those monies to special funds.

(2) Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited to the credit of the fund.

SECTION 6. This act shall take effect and be in force from and after its passage.