House Bill 694

AN ACT TO PROHIBIT THE LEGISLATURE FROM ENACTING ANY LAW THAT PROVIDES FOR THE TRANSFER OF MONIES FROM RESERVED SPECIAL FUNDS TO THE STATE GENERAL FUND OR TO ANY OTHER FUND IN THE TREASURY FROM WHICH THE LEGISLATURE MAKES APPROPRIATIONS TO FUND THE GENERAL OPERATIONS AND PURPOSES OF STATE GOVERNMENT; TO DEFINE "RESERVED SPECIAL FUND" AS A SPECIAL FUND COMPOSED OF MONIES DERIVED FROM PAYMENTS MADE BY MEMBERS OF PROFESSIONS, OCCUPATIONS, BUSINESSES, INDUSTRIES, ORGANIZATIONS, ASSOCIATIONS, GOVERNMENTAL UNITS OR OTHER ENTITIES, WHICH MONIES ARE TO BE USED TO FUND REGULATORY ACTIVITIES REGARDING THOSE MEMBERS OR ENTITIES, OR TO PROVIDE SERVICES OR BENEFITS TO THOSE MEMBERS OR ENTITIES; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) For the purposes of this section, the term "reserved special fund" means a special fund or account in the State Treasury that is composed of monies derived from fees, taxes, assessments, fines or other funds paid by members of a profession, occupation, business, industry, organization, association, governmental unit or other entity, which monies are reserved by law to be used to fund regulatory activities regarding those members or entities, or to provide services or benefits to those members or entities.

(2) The Legislature shall not enact any law that provides for the transfer of monies from any reserved special fund to the State General Fund or to any other fund or account in the State Treasury from which the Legislature makes appropriations to fund the general operations and purposes of state government.

(3) This section does not prohibit the enactment or existence of laws that authorize temporary transfers or loans of monies in reserved special funds to the State General Fund for the purpose of offsetting temporary cash flow deficiencies in the General Fund or maintaining a sufficient working balance in the General Fund, if the law provides that (a) the transfers or loans may be made only from those reserved special funds that have cash balances in excess of their immediate needs, and (b) the monies transferred or loaned from the reserved special funds must be repaid in full before the end of the fiscal year in which the transfer or loan is made.

SECTION 2. This act shall take effect and be in force from and after July 1, 2005.