Senate Bill 2664

AN ACT TO ENACT THE FUND RURAL EDUCATION EVENLY ACT OR FREE ACT; TO DEFINE TERMS; TO CREATE THE FUND RURAL EDUCATION EVENLY GRANT PROGRAM TO BE ADMINISTERED BY THE DEPARTMENT OF EDUCATION FOR THE PURPOSE OF ENSURING RURAL SCHOOLS RECEIVE THE NECESSARY FUNDS TO CONSTRUCT, UPGRADE OR RENOVATE CAMPUS BUILDINGS; TO PROVIDE THAT EACH SCHOOL DISTRICT SHALL RECEIVE A MINIMUM AMOUNT UNDER THE GRANT PROGRAM; TO PROVIDE THAT THE REMAINING FUNDS IN THE GRANT PROGRAM SHALL BE DISTRIBUTED UPON APPLICATION; TO REQUIRE THE DEPARTMENT TO PROMULGATE RULES AND REGULATIONS TO ADMINISTER THE GRANT PROGRAM; TO CREATE THE FREE ACT FUND AS A SPECIAL FUND IN THE STATE TREASURY; TO PROVIDE THAT MONIES APPROPRIATED OUT OF THE FUND MAY BE USED TO REIMBURSE ACTUAL OVERSIGHT COSTS UP TO A CERTAIN AMOUNT; AND FOR RELATED PURPOSES.

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

SECTION 1. This act shall be known and may be cited as the "Fund Rural Education Evenly Act" or "FREE Act."

SECTION 2. For purposes of this act, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:

(a) "Department" means the Department of Education.

(b) "Grant Program" means the Fund Rural Education Evenly Grant Program established in this act.

(c) "Rural school" means public school districts and agricultural high schools not located within urban areas of the state which have a tax base that does not support the issuance of school bonds sufficient to adequately fund building construction.

SECTION 3. (1) There is established the Fund Rural Education Evenly Grant Program which shall be administered by the department for the purpose of ensuring rural schools receive the necessary funds to construct, upgrade or renovate campus buildings.

(2) The department shall distribute grants to rural schools. Each school shall receive a grant in the amount of at least One Hundred Thousand Dollars ($100,000.00) under the grant program by October 1, 2024. The remaining funds in the grant program shall be distributed upon application to the department until the funds are depleted.

(3) The department shall promulgate rules and regulations to administer the grant program.

(4) The department shall provide an annual report to the Lieutenant Governor, Speaker of the House and Governor concerning the distribution of funds under this grant program. The report shall be filed by December 1 of each year.

SECTION 4. (1) There is created a special fund in the State Treasury to be known as the "FREE Act Fund" which shall consist of monies from any source designated for deposit into the fund. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any investment earnings or interest earned on amounts in the fund shall be deposited to the credit of the fund.

(2) (a) Monies in the fund shall be disbursed by the department for the purposes described in this act.

(b) In addition to the purposes in paragraph (a) of this subsection, monies appropriated out of the fund may be used to reimburse reasonable actual and necessary oversight costs incurred by the department in providing grants or loans under this section. The department shall maintain an accounting of actual costs and expenses incurred for which reimbursement is sought for each grant or loan. Reimbursement of reasonable actual and necessary costs and expenses for assistance shall not exceed one and twenty-five one-hundredths percent (1.25%) of the monies appropriated out of the fund. Reimbursements made under this paragraph shall satisfy any applicable federal tax law requirements.

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