Senate Bill 2777

(As Sent to Governor)

AN ACT TO AMEND SECTION 43-13-407, MISSISSIPPI CODE OF 1972, TO REVISE THE SCHEDULE FOR PAYMENT FROM THE HEALTH CARE TRUST FUND INTO THE HEALTH CARE EXPENDABLE FUND; TO DIRECT THE STATE FISCAL OFFICER TO TRANSFER A CERTAIN AMOUNT TO THE BUDGET CONTINGENCY FUND FROM THE STATE GENERAL FUND DURING FISCAL YEAR 2008; TO AUTHORIZE THE TRANSFER OF CERTAIN FUNDS FROM THE SPECIAL FUND POOL TO THE STATE BOARD OF OPTOMETRY AND THE VETERANS' HOME PURCHASE BOARD TO OFFSET TEMPORARY CASH FLOW DEFICIENCIES; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 43-13-407, Mississippi Code of 1972, is amended as follows:

43-13-407. (1) In accordance with the purposes of this article, there is established in the State Treasury the Health Care Expendable Fund, into which shall be transferred from the Health Care Trust Fund the following sums:

(a) In fiscal year 2005, Four Hundred Fifty-six Million Dollars ($456,000,000.00);

(b) In fiscal year 2006, One Hundred Eighty-six Million Dollars ($186,000,000.00);

(d) In fiscal year 2008, One Hundred Six Million Dollars ($106,000,000.00);

(e) In fiscal year 2009, Sixty-six Million Dollars ($66,000,000.00);

(f) In fiscal year 2010 and each fiscal year thereafter, a sum equal to the average annual amount of the dividends, interest and other income, including increases in value of the principal, earned on the funds in the Health Care Trust Fund during the preceding four (4) fiscal years.

(2) In any fiscal year in which interest, dividends and other income from the investment of the funds in the Health Care Trust Fund are not sufficient to fund the full amount of the annual transfer into the Health Care Expendable Fund as required in subsection (1)(f) of this section, the State Treasurer shall transfer from tobacco settlement installment payments an amount that is sufficient to fully fund the amount of the annual transfer.

(3) On March 6, 2002, the State Treasurer shall transfer the sum of Eighty-seven Million Dollars ($87,000,000.00) from the Health Care Trust Fund into the Health Care Expendable Fund. In addition, at the time the State of Mississippi receives thetobacco settlement installment payments for each of the calendar years 2002 and 2003, the State Treasurer shall deposit the full amount of each of those installment payments into the Health Care Expendable Fund.

(4) The total sum of Two Hundred Forty Million Dollars ($240,000,000.00) plus interest at the rate of five percent (5%) per annum shall be transferred into the Health Care Trust Fund from the State General Fund during fiscal years 2009 through 2016 to repay the trust fund for Two Hundred Forty Million Dollars ($240,000,000.00) of the total sum that is transferred from the trust fund to the Health Care Expendable Fund during fiscal year 2005 under subsection (1)(a) of this section. The repayment shall be made according to the following schedule: During each of fiscal years 2009 through 2015, the State Fiscal Officer shall transfer from the General Fund to the Health Care Trust Fund the sum of Thirty-eight Million Dollars ($38,000,000.00), and during fiscal year 2016 the State Fiscal Officer shall transfer from the State General Fund to the Health Care Trust Fund a sum in the amount certified by the State Treasurer as necessary to fully repay the balance of the Two Hundred Forty Million Dollars ($240,000,000.00) plus interest at the rate of five percent (5%) per annum.

(5) All income from the investment of the funds in the Health Care Expendable Fund shall be credited to the account of the Health Care Expendable Fund. Any funds in the Health Care Expendable Fund at the end of a fiscal year shall not lapse into the State General Fund.

(6) The funds in the Health Care Expendable Fund shall be available for expenditure under specific appropriation by the Legislature beginning in fiscal year 2000, and shall be expended exclusively for health care purposes.

(7) The provisions of subsection (1) of this section may not be changed in any manner except upon amendment to that subsection by a bill enacted by the Legislature with a vote of not less than three-fifths (3/5) of the members of each house present and voting.

(8) Subsections (1), (2), (5) and (6) of this section shall stand repealed on July 1, 2009.

SECTION 2. During fiscal year 2008, the State Fiscal Officer shall transfer to the Budget Contingency Fund created in Section 27-103-301, out of the following enumerated funds, the amount listed below from each fund:

Agency/Fund Fund No. Amount

State General Fund $37,240,000.00

DPS - Emergency Telecommunications

Standards and Training Board 3744 500,000.00

Criminal Justice Fund 3086 990,000.00

DFA - Tort Claims Fund 3080 1,500,000.00

Treasury Department - Unclaimed

Property 3178 3,000,000.00

TOTAL $43,230,000.00

SECTION 3. It is the intention of the Legislature that the State Fiscal Officer shall transfer from the special fund pool funds in the amount of Thirty-five Thousand Dollars ($35,000.00), or so much thereof as may be requested, to the Board of Optometry to offset any temporary cash flow deficiencies in the fiscal year ending June 30, 2008. The Board of Optometry shall make its request to the State Fiscal Officer, in writing, with proper justification, prior to the transfer of said funds.

Prior to June 30, 2008, the Board of Optometry shall transfer from any money in the State Treasury to the credit of the Board of Optometry to the State Treasurer sufficient funds to repay the special funds that were made available to offset temporary cash flow deficiencies in the fiscal year ending June 30, 2008. The State Fiscal Officer shall allocate this repayment back to the special fund pool.

This section shall stand repealed from and after July 1, 2008.

SECTION 4. It is the intention of the Legislature that the State Fiscal Officer shall transfer from the special fund pool funds in the amount of Two Million Dollars ($2,000,000.00), or so much thereof as may be requested, to the Veterans' Home Purchase Board to offset any shortage of funds in the fiscal year ending June 30, 2008. The Veterans' Home Purchase Board shall make its request to the State Fiscal Officer, in writing, with proper justification, prior to the transfer of said funds.

Prior to June 30, 2008, the Veterans' Home Purchase Board shall transfer from any money in the State Treasury to the credit of the Veterans' Home Purchase Board to the State Fiscal Officer sufficient funds to repay the special funds that were made available to offset any shortage of funds in the fiscal year ending June 30, 2008. The State Fiscal Officer shall allocate this repayment back to the special fund pool.

This section shall stand repealed from and after July 1, 2008.

SECTION 5. This act shall take effect and be in force from and after its passage.