Senate Bill 2841

AN ACT TO ENACT THE STATE TREASURY EFFICIENCY AND TRANSPARENCY ACT; TO DEFINE TERMS; TO REQUIRE ALL FUNDS HELD BY STATE AGENCIES WITHIN THE STATE TREASURY OR OUTSIDE THE STATE TREASURY TO BE HELD IN INTEREST-BEARING ACCOUNTS; TO REQUIRE, WHEN IT IS REASONABLY FEASIBLE TO DO SO, THAT ALL FUNDS HELD BY STATE AGENCIES WITHIN THE STATE TREASURY SHALL BE INCLUDED IN POOLED INTEREST-BEARING ACCOUNTS TO BE INVESTED BY THE TREASURER; TO REQUIRE ALL STATE AGENCIES TO PROVIDE CERTAIN INFORMATION CONCERNING THE AGENCY'S FUNDS TO THE DEPARTMENT OF FINANCE AND ADMINISTRATION AND THE STATE TREASURER; TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO REPORT THE COMPILED FUND INFORMATION TO THE LEGISLATIVE BUDGET OFFICE; TO AUTHORIZE THE STATE FISCAL OFFICER TO DISAPPROVE OF PAYMENTS FROM THE STATE TREASURY IF A STATE AGENCY DOES NOT TIMELY PROVIDE THE INFORMATION REQUIRED BY THIS ACT; 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 "State Treasury Efficiency and Transparency 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 Finance and Administration.

(b) "State agency" means that term as defined in Section 27-103-103(4).

(d) "Treasurer" means the State Treasurer.

SECTION 3. (1) All funds held by state agencies within the State Treasury or outside the State Treasury shall be held in interest-bearing accounts.

(2) When it is reasonably feasible to do so, all funds held by state agencies within the state treasury shall be included in pooled interest-bearing accounts to be invested by the Treasurer.

(3) The State Fiscal Officer and the Treasurer may provide an exception to the requirement of subsections (1) and (2) of this section if a state agency provides sufficient justification as to why the fund may not bear interest or may not be held in pooled interest-bearing accounts. Sufficient justification shall include a restriction placed on the monies held within the fund or other justification determined reasonable by the State Fiscal Officer and the Treasurer.

SECTION 4. (1) All state agencies shall review each fund held within the State Treasury and outside the State Treasury and shall report to the department and the Treasurer no later than September 30, 2024, the following information:

(a) The name of the fund and the fund number;

(b) If the fund was created by the state agency or through statute with the statute listed, if applicable;

(d) If there is any restriction on transferring the interest on the monies in the fund to the General Fund;

(e) The purpose of the fund or whether it can be combined with another fund or closed due to the fund being idle;

(f) Where it is determined that the fund can be combined with another fund or closed, a statement as to whether the change to the fund must be made by legislation;

(g) A statement as to whether the fund is held in an interest-bearing account or a sufficient justification as to why the fund cannot be held in an interest-bearing account;

(h) A statement as to whether the fund is held in a pooled interest-bearing account and invested by the Treasurer or a sufficient justification as to why the fund cannot be held in a pooled interest-bearing account; and

(i) If the agency has a fund created by legislation without an associated fund created in the State Treasury.

(2) The department and the Treasurer shall compile the information submitted in subsection (1) of this section and provide it in a report to the Legislative Budget Office by December 15, 2024.

(3) In the calendar year following each statewide election:

(a) All state agencies shall provide the information required by subsection (1) to the department and the Treasurer no later than September 30; and

(b) The department and the Treasurer shall compile the information submitted in paragraph (3)(a) of this subsection and provide it in a report to the Legislative Budget Office by December 15.

(4) The reporting required in this section shall apply to all funds, including any new funds created by state agencies by September 30.

(5) The State Fiscal Officer may disapprove of payments from the State Treasury if a state agency does not timely provide the information required by this section.

SECTION 5. This act shall take effect and be in force from and after July 1, 2024.