Senate Bill 2775

(COMMITTEE SUBSTITUTE)

AN ACT TO AMEND SECTION 27-104-17, MISSISSIPPI CODE OF 1972, TO AUTHORIZE STATE AGENCY HEADS TO TRANSFER ALLOTMENTS FROM ONE BUDGET CATEGORY TO ANOTHER AND TO PROHIBIT ANY SALARY INCREASES IN FISCAL YEAR 2010; TO REQUIRE THE REPORTING OF PERSONNEL CONTRACTS OF FORMER STATE EMPLOYEES; TO AMEND SECTIONS 25-9-127 AND 25-9-105, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT FOR A PERIOD OF TWO YEARS THE PERSONNEL ACTIONS OF ALL STATE AGENCIES SUBJECT TO THE REGULATIONS OF THE STATE PERSONNEL BOARD SHALL BE EXEMPT FROM STATE PERSONNEL BOARD PROCEDURES, AND ALL EMPLOYEES OF SUCH AGENCIES SHALL BE CLASSIFIED AS NONSTATE SERVICE DURING THAT PERIOD; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-104-17, Mississippi Code of 1972, is amended as follows:

27-104-17. (1) An allotment period shall be one-half (1/2) of twelve (12) months, and expenditure one-half (1/2) of the appropriated amount, unless otherwise specified in the appropriation bill or justified by the agency to the Department of Finance and Administration, and the first allotment period shall commence on July 1. Estimates shall be filed with the Department of Finance and Administration not later than the first day of the month preceding the beginning period.

Provided further, that the Department of Finance and Administration may, in its discretion, restrict an agency to a monthly allotment period when it becomes evident that an agency's rate of expenditure to date indicates this restriction will be necessary to prevent depletion of its appropriation prior to the close of the fiscal year or when the condition of the State General Fund requires monthly monitoring and control of the rate of General Fund expenditures.

(2) Except as otherwise provided in subsection (3), and unless otherwise specified in the agency appropriation bill, in the event any emergency or unforeseen circumstances shall arise, the agency head may authorize increases in major objects of expenditure within each specific budget within each appropriation bill in total amounts not to exceed ten percent (10%) of the appropriated amount of each object, provided that other major objects of expenditure are decreased by a corresponding dollar amount. No transfers shall be authorized which increase or decrease the major object of expenditure "Salaries, Wages and Fringe Benefits," or which increase the major object of expenditure "Capital Outlay - Equipment." The agency head shall submit written justification for the transfer to the Legislative Budget Office, the Department of Finance and Administration, and the State Auditor, on or before the fifteenth of the month prior to the effective date of the transfer. The transfer shall be effective the first working day of the month following timely submissions required herein. In cases of extreme hardship, certified in writing by the agency head and submitted with timely submissions required herein, the Executive Director of the Department of Finance and Administration, in his discretion, may authorize an earlier effective date for the transfer.

(3) From and after March 12, 2009, and until June 30, 2010, due to the unforeseen financial circumstances, the agency head of any state agency, with the approval of the Department of Finance and Administration, may authorize increases in major objects of expenditure within each specific budget within each appropriation bill, provided that other major objects of expenditure are decreased by a corresponding dollar amount. No state agency shall take any action to promote or otherwise award salary increases through reallocation, reclassification, realignment, education benchmark, career ladder, or any other means to increase salaries of employees or positions unless specifically exempted by the following conditions: the immediate replacement of a departing employee with an individual from within state service or a new hire at a salary level equivalent to that of the departing employees or the emergency appointment of nurses, pharmacists or other health care professionals at a salary to be determined by the State Personnel Board. The agency head shall submit written justification for the transfer(s) to the Department of Finance and Administration, the Legislative Budget Office and the State Auditor on or before the fifteenth of the month prior to the effective date of the transfer. The transfer shall be effective the first working day of the month following timely submissions and approval required herein. In cases of extreme hardship, certified in writing by the agency head and timely submitted as required herein, the Executive Director of the Department of Finance and Administration, in his discretion, may authorize an earlier effective date for the transfer.

(4) No former employee who is receiving State of Mississippi retirement benefits shall be hired under contract for an amount exceeding Twenty Thousand Dollars ($20,000.00) a year without prior approval by an agency's proper governing board or authority. Upon approval of such contracts a written report shall be submitted detailing the cost and need of such contract services to the Chairmen and members of the Senate and House Appropriations Committees.

SECTION 2. Section 25-9-127, Mississippi Code of 1972, is amended as follows:

25-9-127. (1) No employee of any department, agency or institution who is included under this chapter or hereafter included under its authority, and who is subject to the rules and regulations prescribed by the state personnel system may be dismissed or otherwise adversely affected as to compensation or employment status except for inefficiency or other good cause, and after written notice and hearing within the department, agency or institution as shall be specified in the rules and regulations of the State Personnel Board complying with due process of law; and any employee who has by written notice of dismissal or action adversely affecting his compensation or employment status shall, on hearing and on any appeal of any decision made in such action, be required to furnish evidence that the reasons stated in the notice of dismissal or action adversely affecting his compensation or employment status are not true or are not sufficient grounds for the action taken; provided, however, that this provision shall not apply (a) to persons separated from any department, agency or institution due to curtailment of funds or reduction in staff when such separation is in accordance with rules and regulations of the state personnel system; (b) during the probationary period of state service of twelve (12) months; and (c) to an executive officer of any state agency who serves at the will and pleasure of the Governor, board, commission or other appointing authority.

(2) The operation of a state-owned motor vehicle without a valid Mississippi driver's license by an employee of any department, agency or institution that is included under this chapter and that is subject to the rules and regulations of the state personnel system shall constitute good cause for dismissal of such person from employment.

(3) Beginning July 1, 1999, every male between the ages of eighteen (18) and twenty-six (26) who is required to register under the federal Military Selective Service Act, 50 USCS App. 453, and who is an employee of the state shall not be promoted to any higher position of employment with the state until he submits to the person, commission, board or agency by which he is employed satisfactory documentation of his compliance with the draft registration requirements of the Military Selective Service Act. The documentation shall include a signed affirmation under penalty of perjury that the male employee has complied with the requirements of the federal Military Selective Service Act.

(4) For a period of two (2) years from and after the effective date of this act, the provisions of subsection (1) shall not apply to the personnel actions of any agency subject to the rules and regulations of the State Personnel Board, and all employees of such agencies shall be classified as nonstate service during that period. However, any employee hired after the effective date of this act by the aforementioned agencies shall meet criteria of the State Personnel Board as presently exists for employment. Whenever any employee at such agencies is dismissed or involuntarily terminated under the authority of this section during that period of time, the employee's position shall be eliminated and the PIN number for that employee's position shall be eliminated. The administrative head of such agencies shall consult with the Office of Attorney General before taking personnel actions permitted by this section to review those actions for compliance with applicable state and federal law.

SECTION 3. Section 25-9-105, Mississippi Code of 1972, is amended as follows:

25-9-105. It is the intent of this chapter to consolidate into one (1) state personnel system all agencies and employees now administered by the Mississippi Classification Commission, agencies and employees now administered by the Mississippi Coordinated Merit System Council, and such other agencies and employees except as excluded by this chapter. The State Personnel Board established herein shall assume the total functions of personnel administration services (a) for those agencies and positions now required and operating under merit system rules due to federal statutory and regulatory provisions or state law, and (b) for all state agencies, departments and institutions except as excluded by this chapter. Provided, however, that state agencies which are not required by law to operate under merit system rules may request an exemption from the applicant selection process by specific job class or on an agency-wide basis when such exemption is justifiable. * * *

SECTION 4. This act shall take effect and be in force from and after its passage.