Adopted
COMMITTEE AMENDMENT NO 1 PROPOSED TO
Senate Bill No. 2778
BY: Committee
Amend by striking all after the enacting clause and inserting in lieu thereof the following:
SECTION 1. Section 27-104-351, Mississippi Code of 1972, is amended as follows:
27-104-351. (1) This section shall be known and may be cited as the "Line-Item Appropriation Transparency Act."
(2) As used in this section, unless the context clearly indicates otherwise:
(a) "Department" means the Department of Finance and Administration.
( * * *b) "Local government entity"
means any county, municipality, school district, public hospital or other political
subdivision of the state.
( * * *c) "Pass-through funding" means
a line-item appropriation by the Legislature to a state agency that is itemized
on a separate line in a budget and that is intended to be passed through the state
agency to one or more:
(i) Local government entities;
(ii) Private organizations, including not-for-profit organizations; or
(iii) Persons in the form of a loan or grant.
"Pass-through funding" may be general funds, dedicated credits, or any combination of state funding sources, and may be ongoing or one-time.
( * * *d) "Recipient entity" means a
local government entity or private entity, including a nonprofit entity, that receives
money by way of pass-through funding from a state agency.
( * * *e) "State agency" shall have
the same meaning as provided in Section 27-103-103, and shall include any other
subagency or board under the supervision of that state agency.
( * * *f) "State money" means * * * funds in the State General
Fund and all state-support special funds that are in the Budget Contingency Fund,
Capital Expense Fund, Working Cash-Stabilization Reserve Fund, Education Enhancement
Fund, Tobacco Control Program Fund and any other special funds that are determined
by the Joint Legislative Budget Committee to be state-support special funds.
"State money" does not include contributions or donations received by
a state agency.
(3) A state agency may not provide a recipient entity state money from pass-through funding unless:
(a) The state agency enters
into a written agreement with the recipient entity, which details the criteria
and reporting requirements set forth in this section; * * *
(b) The written agreement described in paragraph (a) of this subsection requires the recipient entity to provide to the state agency the following:
(i) * * * A written
description and an itemized report detailing the expenditure of state money or the
intended expenditure of any state money that has not been spent. Such report shall
be submitted at least quarterly on dates determined by the department; and
(ii) A final written itemized report when all the state money is spent.
Disbursements shall only be made after the written agreement described in paragraph (a) of this subsection has been signed and shall be contingent upon the recipient entity complying with the quarterly reporting requirements required by paragraph (b) of this subsection.
(4) * * * On or before June
30 of each year, or the date (s) determined by the department, a state agency shall
provide to the department a copy of the written agreements, written descriptions
and reports of itemized expenditures required under subsection (3) of this section.
(5) * * * The department is responsible for obtaining
the written descriptions and itemized reports required by subsection (3) of this
section from state agencies. The department is further responsible for consolidating
and presenting a report on the previous fiscal year's pass-through expenditures
and providing it to the Joint Legislative Budget Committee by October 1 of each
year.
(6) The department shall create all of the following documents, which shall be in such form and contain such information as the department prescribes:
(a) Written agreement as described in subsection (3)(a) of this section;
(b) Written description and itemized report as described in subsection (3)(b) of this section; and
(c) Final itemized report as described in subsection (3)(b) of this section.
A state agency shall use these documents when complying with the criteria set forth in this section.
( * * *7) Notwithstanding subsection (3) of this
section, a state agency is not required to comply with this section to the extent
that the pass-through funding is issued:
(a) Under a competitive award process;
(b) In accordance with a formula enacted in statute;
(c) In accordance with a state program under parameters in statute or rule that guides the distribution of the pass-through funding;
(d) Under the authority of the Mississippi Accountability and Adequate Education Program Act of 1997, Section 37-151-1 et seq.; or
(e) In accordance with an appropriations act of the Legislature that specifically provides an exemption from the provisions of this section.
( * * *8) Unless a recipient entity is required
to comply with Section 31-7-1 et seq. because it is an agency or public body, the
fact that it is a recipient entity does not create such an obligation.
SECTION 2. This act shall take effect and be in force from and after July 1, 2022, and shall stand repealed on June 30, 2022.
Further, amend by striking the title in its entirety and inserting in lieu thereof the following:
AN ACT TO AMEND SECTION 27-104-351, MISSISSIPPI CODE OF 1972, TO MAKE CERTAIN TECHNICAL AMENDMENTS TO THE LINE-ITEM APPROPRIATION TRANSPARENCY ACT; AND FOR RELATED PURPOSES.