Senate Bill 2672

AN ACT TO AMEND SECTION 27-103-302, MISSISSIPPI CODE OF 1972, TO ESTABLISH THE "DEEPWATER HORIZON OIL SPILL MISSISSIPPI GULF COAST RESTORATION OVERSIGHT ACT OF 2016"; TO ESTABLISH THE MISSISSIPPI GULF COAST RESTORATION TRUST FUND CONSISTING OF AMOUNTS TRANSFERRED TO THE STATE OF MISSISSIPPI PURSUANT TO THE FEDERAL "RESOURCES AND ECOSYSTEMS SUSTAINABILITY, TOURIST OPPORTUNITIES AND REVIVED ECONOMY OF THE GULF COAST ACT OF 2011" (R.E.S.T.O.R.E.) AND RELATED CIVIL ACTIONS; TO PRESCRIBE AUTHORIZED EXPENDITURES FROM THE FUND SUBJECT TO APPROPRIATION BY THE LEGISLATURE; TO AMEND SECTION 27-104-21, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ANY ESCALATION OR EXPENDITURE OF FEDERAL FUNDS PROVIDED TO THE TRUST FUND SHALL BE SUBJECT TO SPECIFIC APPROPRIATION BY THE LEGISLATURE; TO AMEND SECTION 7-7-81, MISSISSIPPI CODE OF 1972, IN CONFORMITY; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-103-302, Mississippi Code of 1972, is amended as follows:

27-103-302. (1) This section shall be known and may be cited as the "Deepwater Horizon Oil Spill Mississippi Gulf Coast Restoration Oversight Act of 2016."

     (2)  Establishment.  There is established in the State Treasury a trust fund to be known as the "Mississippi Gulf Coast Restoration Trust Fund" (referred to in this section as the "fund"), consisting of (a) all funds received by or on behalf of the State of Mississippi through a negotiated settlement for economic damages in connection with the explosion on, and sinking of, the mobile offshore drilling unit Deepwater Horizon * * *, except for any funds that are required by the settlement to be paid to any other public entity, shall be deposited into the Budget Contingency Fund for appropriation by the Legislature; (b) such amounts as are deposited in the fund under the federal Resources and Ecosystems Sustainability, Tourist Opportunities and Revived Economy of the Gulf Coast Act of 2011 (R.E.S.T.O.R.E.); and (c) any funds provided to the state or any of its agencies or subdivision, or any nonprofit organization, from the federal American Recovery and Reinvestment Act of 2009, the Gulf Environmental Benefit Fund, and fees derived from the Natural Resource Damage Assessment pursuant to the 2010 Deepwater Horizon explosion and oil spill, and their successors.

     (3)  Transfers.  The State Treasurer shall also deposit in the fund an amount equal to all administrative and civil penalties paid by responsible parties after the date of enactment of this act in connection with the explosion on, and sinking of, the mobile offshore drilling unit Deepwater Horizon pursuant to a court order, negotiated settlement, or other instrument in accordance with Section 311 of the Federal Water Pollution Control Act (33 USC 1321), and transferred to the State of Mississippi.

     (4)  Expenditures.  Amounts in the fund, including interest earned on advances to the fund and proceeds from investment under subsection (5) of this section, shall:

          (a)  Be available for expenditure, subject to appropriations by the Legislature, solely for the purpose and eligible activities of subsection (6) of this section with not less than eighty percent (80%) of the annual expenditures to be made in the Mississippi Gulf Coast Counties of Jackson, Harrison and Hancock; and

          (b)  Unexpended amounts shall remain available until expended, without fiscal year limitation, and shall not lapse into the State General Fund.

     (5)  Investment.  Amounts in the fund shall be invested in accordance with Mississippi law, and any interest on, and proceeds from, any such investment shall be available for expenditure in accordance with this section.

(6) Eligible activities for the expenditure of amounts from the Mississippi Gulf Coast Restoration Trust Fund recoveries under subsection (2) of this section, may only be used to carry out one or more of the following activities:

                  (i)  Coastal restoration projects and activities, including conservation and coastal land acquisition in the State of Mississippi.

              (ii)  Deepening the channel into the Port of Gulfport.

(iii) Mitigation of damage to, and restoration of, fish, wildlife or natural resources in the State of Mississippi.

(iv) Implementation of a federally approved marine, coastal or comprehensive conservation management plan, including fisheries monitoring in the State of Mississippi.

(v) Programs to promote tourism in Mississippi.

(vi) Programs to promote the consumption of seafood produced from the Mississippi Gulf Coast ecosystem.

(vii) Programs to promote education regarding the natural resources of the Mississippi Gulf Coast ecosystem.

(viii) Planning assistance in Mississippi.

(ix) Workforce development and job creation in Mississippi.

(x) Improvements to or upon state parks located in Mississippi coastal areas affected by the Deepwater Horizon Oil Spill.

(xi) Mitigation of the ecological and economic impact of outer Continental Shelf activities and the impacts of the Deepwater Horizon Oil Spill or promotion of the long-term ecological or economic recovery of the Mississippi Gulf Coast ecosystem through the funding of infrastructure projects.

(xii) Mississippi coastal flood protection and infrastructure directly affected by coastal wetland losses, beach erosion, and the impacts of the Deepwater Horizon Oil Spill.

(xiii) Administrative costs of complying with this subsection (6).

(xiv) Restoration of sales tax and gaming tax revenues to the Mississippi State General Fund or restoration of sales tax, gaming tax and ad valorem tax revenues to local municipalities impacted by the Deepwater Horizon Oil Spill.

(xv) Transfers to support the programs of the Mississippi Windstorm Underwriting Association (Section 83-43-1 et seq.).

SECTION 2. Section 27-104-21, Mississippi Code of 1972, is amended as follows:

27-104-21. (1) All general and special fund agencies shall, upon making application for federal funds, forward a summary of such applications to the Legislative Budget Office. The Legislative Budget Office shall have an opportunity to review such applications and make its comments thereon to the Executive Director of the Department of Finance and Administration and the state agency making application. Unless otherwise specified in the appropriation bill, the Executive Director of the Department of Finance and Administration shall have the authority to approve escalations in a budget using one hundred percent (100%) federal money. The Executive Director of the Department of Finance and Administration shall only have the authority to approve escalations in a budget using funds received by the State of Mississippi through the Mississippi Gulf Coast Restoration Trust Fund pursuant to specific appropriation by the Legislature from the Mississippi Gulf Coast Restoration Trust Fund as provided in Section 27-103-302.

(2) New employee positions funded one hundred percent (100%) by or from federal funds may be authorized by the Executive Director of the Department of Finance and Administration subject to the rules and regulations of the State Personnel Board. No federal funds may be expended for programs or activities other than those which have been authorized by act of the Legislature or which are encompassed by a state agency's program structure as provided by law. The Executive Director of the Department of Finance and Administration shall immediately send notice of the approval of such budget escalation to the Legislative Budget Office. The Executive Director of the Department of Finance and Administration shall ensure that the Legislative Budget Office receives timely, detailed and accurate information about the amount and use of federal funds by state agencies.

(3) The Department of Finance and Administration shall require, by rule and regulation, that each agency receiving federal funds shall apply for federal reimbursement for state central services costs in accordance with Office of Management and Budget Circular A-21 or A-87, which reimbursement shall be deposited directly into the Statewide Cost Allocation Fund, which is hereby established within the State Treasury. An agency's failure to timely apply for such reimbursement shall be condition sufficient to authorize the Department of Finance and Administration to transfer an amount equal to not less than fifty percent (50%) nor more than one hundred percent (100%) of the total amount designated to such agency in the applicable fixed cost agreement of the state central service cost allocation plan. These funds shall be transferred from any available funds within such agency into the Statewide Cost Allocation Fund upon execution of a requisition for issuance of warrant by the Executive Director of the Department of Finance and Administration. Any funds on hand in said Statewide Cost Allocation Fund at the end of the fiscal year shall lapse into the State General Fund.

SECTION 3. Section 7-7-81, Mississippi Code of 1972, is amended as follows:

7-7-81. (1) The State Auditor shall have the authority to preaudit or postaudit, conduct performance audits and reviews, investigate projects, entities and their use of any funds provided to the state or any of its agencies or subdivision, or any nonprofit organization, into the Mississippi Gulf Coast Restoration Trust Fund established in Section 27-103-302 (from the federal American Recovery and Reinvestment Act of 2009, the federal RESTORE Act, the Gulf Environmental Benefit Fund, and fees derived from the Natural Resource Damage Assessment pursuant to the 2010 Deepwater Horizon explosion and oil spill, and their successors). If sufficient resources are available, the State Auditor shall maintain an official website and provide public access to copies of audit reports of state and local government entities receiving funds from the * * * Mississippi Gulf Coast Restoration Trust Fund and their successors. The State Auditor shall have the authority to recover costs associated with auditing and investigating such projects and funds within the limits of federal law from any such entity that receives such funds. In addition, the State Auditor shall have the authority to contract with qualified certified public accounting firms to perform selected engagements under this section, if funds are made available for such contracts by the Legislature, the governmental entities covered by this section or by the federal government. All files, working papers, notes, correspondence and any other data compiled by the audit firms in connection with the engagements shall be available upon request, without cost, to the State Auditor for examination and abstracting during the normal business hours of any business day.

(2) A special fund, to be designated as the "Auditor's Enhanced Accountability Fund," shall be created within the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. Within the limits of federal law, initial funds shall be deposited from each governing entity receiving monies from the American Recovery and Reinvestment Act, the federal RESTORE Act, the Gulf Environmental Benefit Fund, and fees derived from the Natural Resource Damage Assessment pursuant to the 2010 Deepwater Horizon explosion and oil spill, based on a sliding scale to be determined by the State Auditor. Subsequent and additional funds may be deposited from any source made available to the Department of Audit for such purposes. Unexpended monies from the American Recovery and Reinvestment Act, the federal RESTORE Act, the Gulf Environmental Benefit Fund, and fees derived from the Natural Resource Damage Assessment pursuant to the 2010 Deepwater Horizon explosion and oil spill, 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 into such fund, but shall be held to pay for postaudit and investigative costs for related expenditures and programs. Monies deposited into the fund shall be disbursed, in the discretion of the State Auditor, to pay the allowable costs of additional preaudit, postaudit, investigative, or other allowable or accountability requirements not funded through regular appropriations or special fund billing provided in this section. Monies in the special fund may be used to reimburse reasonable actual and necessary costs incurred by the State Auditor to accomplish objectives under this section. The State Auditor shall maintain a specific accounting of actual costs incurred for each project for which reimbursements are sought and shall provide a report to the Legislature within sixty (60) days from the end of each fiscal year regarding the nature and amounts of all expenditures. * * *

SECTION 4. This act shall take effect and be in force from and after July 1, 2016.