Counties; authorize to participate in a group purchasing program operated by the Mississippi Association of Supervisors.

H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~ G1/2
26/HR26/R2048CS
PAGE 1 (OM\KW)

To: County Affairs
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Byrd, Scott

COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1525

AN ACT TO CREATE A NEW SECTION TO AUTHORIZE COUNTIES TO 1
PARTICIPATE IN GROUP PURCHASING PROGRAMS OPERATED BY THE 2
MISSISSIPPI ASSOCIATION OF SUPERVISORS; TO AMEND SECTIONS 3
31-7-12 AND 31-7-13, MISSISSIPPI CODE OF 1972, TO CONFORM TO 4
THE PRECEDING SECTION; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. The board of supervisors of any county may, by 7
resolution duly entered upon its minutes, authorize the county to 8
participate in a group purchasing program operated by the 9
Mississippi Association of Supervisors (MAS), or entities 10
established through or contracted by MAS, for the purchase of 11
supplies, commodities and equipment, when it appears to the board 12
of supervisors that participation in such group purchasing program 13
would or could promote economy, efficiency or effectiveness in 14
county operations. 15
Any county that elects to participate in a group purchasing 16
program operated by the Mississippi Association of Supervisors, or 17
its designees, pursuant to this section may purchase supplies, 18
commodities and equipment through such program, and purchases made 19
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 2 (OM\KW)

in accordance with the requirements of the program shall be exempt 20
from the provisions of Sections 31-7-12 and 31-7-13. 21
SECTION 2. Section 31-7-12, Mississippi Code of 1972, is 22
amended as follows: 23
31-7-12. (1) Except in regard to purchases of unmarked 24
vehicles made in accordance with purchasing regulations adopted by 25
the Department of Finance and Administration pursuant to Section 26
31-7-9(2), all agencies shall purchase commodities at the state 27
contract price from the approved source, unless approval is 28
granted by the Department of Finance and Administration to solicit 29
purchases outside the terms of the contracts. However, prices 30
accepted by an agency shall be less than the prices set by the 31
state contract. Prices accepted by an agency shall be obtained in 32
compliance with paragraph (a), (b) or (c) of Section 31-7-13. It 33
shall be the responsibility of the Department of Finance and 34
Administration to ascertain that the resulting prices shall 35
provide a cost effective alternative to the established state 36
contract. 37
(2) Governing authorities may purchase commodities approved 38
by the Department of Finance and Administration from the state 39
contract vendor, or from any source offering the identical 40
commodity, at a price not exceeding the state contract price 41
established by the Department of Finance and Administration for 42
such commodity, without obtaining or advertising for competitive 43
bids. Governing authorities that do not exercise the option to 44
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 3 (OM\KW)

purchase such commodities from the state contract vendor or from 45
another source offering the identical commodity at a price not 46
exceeding the state contract price established by the Department 47
of Finance and Administration shall make such purchases pursuant 48
to the provisions of Section 31-7-13 without regard to state 49
contract prices established by the Department of Finance and 50
Administration, unless such purchases are authorized to be made 51
under subsection (5) of this section. 52
(3) Nothing in this section shall prohibit governing 53
authorities from purchasing, pursuant to subsection (2) of this 54
section, commodities approved by the Department of Finance and 55
Administration at a price not exceeding the state contract price 56
established by the Department of Finance and Administration. 57
(4) The Department of Finance and Administration shall 58
ensure that the prices of all commodities on the state contract 59
are the lowest and best prices available from any source offering 60
that commodity at the same level of quality or service, utilizing 61
the reasonable standards established therefor by the Department of 62
Finance and Administration. If the Department of Finance and 63
Administration does not list an approved price for the particular 64
item involved, purchase shall be made according to statutory 65
bidding and licensing requirements. To encourage prudent 66
purchasing practices, the Department of Finance and Administration 67
shall be authorized and empowered to exempt certain commodities 68
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 4 (OM\KW)

from the requirement that the lowest and best price be approved by 69
order placed on its minutes. 70
(5) Any school district may purchase commodities from 71
vendors with which any levying authority of the school district, 72
as defined in Section 37-57-1, has contracted through competitive 73
bidding procedures pursuant to Section 31-7-13 for purchases of 74
the same commodities. Purchases authorized by this subsection may 75
be made by a school district without obtaining or advertising for 76
competitive bids, and such purchases shall be made at the same 77
prices and under the same conditions as purchases of the same 78
commodities are to be made by the levying authority of the school 79
district under the contract with the vendor. 80
(6) Purchases made in a group purchasing program that is 81
operated by the Mississippi Association of Supervisors, as 82
established under Section 1 of this act, shall be exempt from the 83
provisions of this section. 84
SECTION 3. Section 31-7-13, Mississippi Code of 1972, is 85
amended as follows: 86
31-7-13. All agencies and governing authorities shall 87
purchase their commodities and printing; contract for garbage 88
collection or disposal; contract for solid waste collection or 89
disposal; contract for sewage collection or disposal; contract for 90
public construction; and contract for rentals as herein provided. 91
(a) Bidding procedure for purchases not over $5,000.00. 92
Purchases which do not involve an expenditure of more than Five 93
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 5 (OM\KW)

Thousand Dollars ($5,000.00), exclusive of freight or shipping 94
charges, may be made without advertising or otherwise requesting 95
competitive bids. However, nothing contained in this paragraph 96
(a) shall be construed to prohibit any agency or governing 97
authority from establishing procedures which require competitive 98
bids on purchases of Five Thousand Dollars ($5,000.00) or less. 99
(b) Bidding procedure for purchases over $5,000.00 but 100
not over $75,000.00. Purchases which involve an expenditure of 101
more than Five Thousand Dollars ($5,000.00) but not more than 102
Seventy-five Thousand Dollars ($75,000.00), exclusive of freight 103
and shipping charges, may be made from the lowest and best bidder 104
without publishing or posting advertisement for bids, provided at 105
least two (2) competitive written bids have been obtained. Any 106
state agency or community or junior college purchasing commodities 107
or procuring construction pursuant to this paragraph (b) may 108
authorize its purchasing agent, or his designee, to accept the 109
lowest competitive written bid under Seventy-five Thousand Dollars 110
($75,000.00). Any governing authority purchasing commodities 111
pursuant to this paragraph (b) may authorize its purchasing agent, 112
or his designee, with regard to governing authorities other than 113
counties, or its purchase clerk, or his designee, with regard to 114
counties, to accept the lowest and best competitive written bid. 115
Such authorization shall be made in writing by the governing 116
authority and shall be maintained on file in the primary office of 117
the agency and recorded in the official minutes of the governing 118
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 6 (OM\KW)

authority, as appropriate. The purchasing agent or the purchase 119
clerk, or his designee, as the case may be, and not the governing 120
authority, shall be liable for any penalties and/or damages as may 121
be imposed by law for any act or omission of the purchasing agent 122
or purchase clerk, or his designee, constituting a violation of 123
law in accepting any bid without approval by the governing 124
authority. The term "competitive written bid" shall mean a bid 125
submitted on a bid form furnished by the buying agency or 126
governing authority and signed by authorized personnel 127
representing the vendor, or a bid submitted on a vendor's 128
letterhead or identifiable bid form and signed by authorized 129
personnel representing the vendor. "Competitive" shall mean that 130
the bids are developed based upon comparable identification of the 131
needs and are developed independently and without knowledge of 132
other bids or prospective bids. Any bid item for construction in 133
excess of Five Thousand Dollars ($5,000.00) shall be broken down 134
by components to provide detail of component description and 135
pricing. These details shall be submitted with the written bids 136
and become part of the bid evaluation criteria. Bids may be 137
submitted by facsimile, electronic mail or other generally 138
accepted method of information distribution. Bids submitted by 139
electronic transmission shall not require the signature of the 140
vendor's representative unless required by agencies or governing 141
authorities. 142
(c) Bidding procedure for purchases over $75,000.00. 143
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 7 (OM\KW)

(i) Publication requirement. 144
1. Purchases which involve an expenditure of 145
more than Seventy-five Thousand Dollars ($75,000.00), exclusive of 146
freight and shipping charges, may be made from the lowest and best 147
bidder after advertising for competitive bids once each week for 148
two (2) consecutive weeks in a regular newspaper published in the 149
county or municipality in which such agency or governing authority 150
is located. However, all American Recovery and Reinvestment Act 151
projects in excess of Twenty-five Thousand Dollars ($25,000.00) 152
shall be bid. All references to American Recovery and 153
Reinvestment Act projects in this section shall not apply to 154
programs identified in Division B of the American Recovery and 155
Reinvestment Act. 156
2. Reverse auctions shall be the primary 157
method for receiving bids during the bidding process. If a 158
purchasing entity determines that a reverse auction is not in the 159
best interest of the state, then that determination must be 160
approved by the Public Procurement Review Board. The purchasing 161
entity shall submit a detailed explanation of why a reverse 162
auction would not be in the best interest of the state and present 163
an alternative process to be approved by the Public Procurement 164
Review Board. If the Public Procurement Review Board authorizes 165
the purchasing entity to solicit bids with a method other than 166
reverse auction, then the purchasing entity may designate the 167
other methods by which the bids will be received, including, but 168
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 8 (OM\KW)

not limited to, bids sealed in an envelope, bids received 169
electronically in a secure system, or bids received by any other 170
method that promotes open competition and has been approved by the 171
Office of Purchasing and Travel. However, reverse auction shall 172
not be used for any public contract for design, construction, 173
improvement, repair or remodeling of any public facilities, 174
including the purchase of materials, supplies, equipment or goods 175
for same and including buildings, roads and bridges. The Public 176
Procurement Review Board must approve any contract entered into by 177
alternative process. The provisions of this item 2 shall not 178
apply to the individual state institutions of higher learning. 179
The provisions of this item 2 requiring reverse auction as the 180
primary method of receiving bids shall not apply to term contract 181
purchases as provided in paragraph (n) of this section; however, a 182
purchasing entity may, in its discretion, utilize reverse auction 183
for such purchases. The provisions of this item 2 shall not apply 184
to individual public schools, including public charter schools and 185
public school districts, only when purchasing copyrighted 186
educational supplemental materials and software as a service 187
product. For such purchases, a local school board may authorize a 188
purchasing entity in its jurisdiction to use a Request for 189
Qualifications which promotes open competition and meets the 190
requirements of the Office of Purchasing and Travel. 191
3. The date as published for the bid opening 192
shall not be less than seven (7) working days after the last 193
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 9 (OM\KW)

published notice; however, if the purchase involves a construction 194
project in which the estimated cost is in excess of Seventy-five 195
Thousand Dollars ($75,000.00), such bids shall not be opened in 196
less than fifteen (15) working days after the last notice is 197
published and the notice for the purchase of such construction 198
shall be published once each week for two (2) consecutive weeks. 199
The notice of intention to let contracts or purchase equipment 200
shall state the time and place at which bids shall be received, 201
list the contracts to be made or types of equipment or supplies to 202
be purchased, and, if all plans and/or specifications are not 203
published, refer to the plans and/or specifications on file. If 204
there is no newspaper published in the county or municipality, 205
then such notice shall be given by posting same at the courthouse, 206
or for municipalities at the city hall, and at two (2) other 207
public places in the county or municipality, and also by 208
publication once each week for two (2) consecutive weeks in some 209
newspaper having a general circulation in the county or 210
municipality in the above-provided manner. On the same date that 211
the notice is submitted to the newspaper for publication, the 212
agency or governing authority involved shall mail written notice 213
to, or provide electronic notification to the main office of the 214
Mississippi Procurement Technical Assistance Program under the 215
Mississippi Development Authority that contains the same 216
information as that in the published notice. Within one (1) 217
working day of the contract award, the agency or governing 218
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 10 (OM\KW)

authority shall post to the designated web page maintained by the 219
Department of Finance and Administration, notice of the award, 220
including the award recipient, the contract amount, and a brief 221
summary of the contract in accordance with rules promulgated by 222
the department. Within one (1) working day of the contract 223
execution, the agency or governing authority shall post to the 224
designated web page maintained by the Department of Finance and 225
Administration a summary of the executed contract and make a copy 226
of the appropriately redacted contract documents available for 227
linking to the designated web page in accordance with the rules 228
promulgated by the department. The information provided by the 229
agency or governing authority shall be posted to the web page 230
until the project is completed. 231
4. Agencies and governing authorities using 232
federal funds for the procurement of any good or service, 233
including exempt personal and professional services, must comply 234
with the Uniform Administrative Requirements, Cost Principles, and 235
Audit Requirements for Federal Awards - Subpart D - Post Federal 236
Award Requirements Procurement Standards, in accordance with 2 CFR 237
200.317 through 2 CFR 200.327. 238
(ii) Bidding process amendment procedure. If all 239
plans and/or specifications are published in the notification, 240
then the plans and/or specifications may not be amended. If all 241
plans and/or specifications are not published in the notification, 242
then amendments to the plans/specifications, bid opening date, bid 243
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 11 (OM\KW)

opening time and place may be made, provided that the agency or 244
governing authority maintains a list of all prospective bidders 245
who are known to have received a copy of the bid documents and all 246
such prospective bidders are sent copies of all amendments. This 247
notification of amendments may be made via mail, facsimile, 248
electronic mail or other generally accepted method of information 249
distribution. No addendum to bid specifications may be issued 250
within two (2) working days of the time established for the 251
receipt of bids unless such addendum also amends the bid opening 252
to a date not less than five (5) working days after the date of 253
the addendum. 254
(iii) Filing requirement. In all cases involving 255
governing authorities, before the notice shall be published or 256
posted, the plans or specifications for the construction or 257
equipment being sought shall be filed with the clerk of the board 258
of the governing authority. In addition to these requirements, a 259
bid file shall be established which shall indicate those vendors 260
to whom such solicitations and specifications were issued, and 261
such file shall also contain such information as is pertinent to 262
the bid. 263
(iv) Specification restrictions. 264
1. Specifications pertinent to such bidding 265
shall be written so as not to exclude comparable equipment of 266
domestic manufacture. However, if valid justification is 267
presented, the Department of Finance and Administration or the 268
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 12 (OM\KW)

board of a governing authority may approve a request for specific 269
equipment necessary to perform a specific job. Further, such 270
justification, when placed on the minutes of the board of a 271
governing authority, may serve as authority for that governing 272
authority to write specifications to require a specific item of 273
equipment needed to perform a specific job. In addition to these 274
requirements, from and after July 1, 1990, vendors of relocatable 275
classrooms and the specifications for the purchase of such 276
relocatable classrooms published by local school boards shall meet 277
all pertinent regulations of the State Board of Education, 278
including prior approval of such bid by the State Department of 279
Education. 280
2. Specifications for construction projects 281
may include an allowance for commodities, equipment, furniture, 282
construction materials or systems in which prospective bidders are 283
instructed to include in their bids specified amounts for such 284
items so long as the allowance items are acquired by the vendor in 285
a commercially reasonable manner and approved by the 286
agency/governing authority. Such acquisitions shall not be made 287
to circumvent the public purchasing laws. 288
(v) Electronic bids. Agencies and governing 289
authorities shall provide a secure electronic interactive system 290
for the submittal of bids requiring competitive bidding that shall 291
be an additional bidding option for those bidders who choose to 292
submit their bids electronically. The Department of Finance and 293
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 13 (OM\KW)

Administration shall provide, by regulation, the standards that 294
agencies must follow when receiving electronic bids. Agencies and 295
governing authorities shall make the appropriate provisions 296
necessary to accept electronic bids from those bidders who choose 297
to submit their bids electronically for all purchases requiring 298
competitive bidding under this section. Any special condition or 299
requirement for the electronic bid submission shall be specified 300
in the advertisement for bids required by this section. Agencies 301
or governing authorities that are currently without available high 302
speed Internet access shall be exempt from the requirement of this 303
subparagraph (v) until such time that high speed Internet access 304
becomes available. Any county having a population of less than 305
twenty thousand (20,000) shall be exempt from the provisions of 306
this subparagraph (v). Any municipality having a population of 307
less than ten thousand (10,000) shall be exempt from the 308
provisions of this subparagraph (v). The provisions of this 309
subparagraph (v) shall not require any bidder to submit bids 310
electronically. When construction bids are submitted 311
electronically, the requirement for including a certificate of 312
responsibility, or a statement that the bid enclosed does not 313
exceed Fifty Thousand Dollars ($50,000.00), on the exterior of the 314
bid envelope as indicated in Section 31-3-21(1) and (2) shall be 315
deemed in compliance with by including same as an attachment with 316
the electronic bid submittal. 317
(d) Lowest and best bid decision procedure. 318
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 14 (OM\KW)

(i) Decision procedure. Purchases may be made 319
from the lowest and best bidder. In determining the lowest and 320
best bid, freight and shipping charges shall be included. 321
Life-cycle costing, total cost bids, warranties, guaranteed 322
buy-back provisions and other relevant provisions may be included 323
in the best bid calculation. All best bid procedures for state 324
agencies must be in compliance with regulations established by the 325
Department of Finance and Administration. If any governing 326
authority accepts a bid other than the lowest bid actually 327
submitted, it shall place on its minutes detailed calculations and 328
narrative summary showing that the accepted bid was determined to 329
be the lowest and best bid, including the dollar amount of the 330
accepted bid and the dollar amount of the lowest bid. No agency 331
or governing authority shall accept a bid based on items not 332
included in the specifications. 333
(ii) Decision procedure for Certified Purchasing 334
Offices. In addition to the decision procedure set forth in 335
subparagraph (i) of this paragraph (d), Certified Purchasing 336
Offices may also use the following procedure: Purchases may be 337
made from the bidder offering the best value. In determining the 338
best value bid, freight and shipping charges shall be included. 339
Life-cycle costing, total cost bids, warranties, guaranteed 340
buy-back provisions, documented previous experience, training 341
costs and other relevant provisions, including, but not limited 342
to, a bidder having a local office and inventory located within 343
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 15 (OM\KW)

the jurisdiction of the governing authority, may be included in 344
the best value calculation. This provision shall authorize 345
Certified Purchasing Offices to utilize a Request For Proposals 346
(RFP) process when purchasing commodities. All best value 347
procedures for state agencies must be in compliance with 348
regulations established by the Department of Finance and 349
Administration. No agency or governing authority shall accept a 350
bid based on items or criteria not included in the specifications. 351
(iii) Decision procedure for Prequalified 352
Construction. In addition to the decision procedure set forth in 353
subparagraph (i) of this paragraph (d), where purchase involves 354
renovation, restoration, or both, of the State Capitol Building or 355
any other historical building designated for at least five (5) 356
years as a Mississippi Landmark by the Board of Trustees of the 357
Department of Archives and History under the authority of Sections 358
39-7-7 and 39-7-11, or for any other construction procurement with 359
a minimum construction cost of Ten Million Dollars 360
($10,000,000.00) where the agency or governing authority has 361
determined that prequalification of bidders is in the best 362
interest of the state, the agency or governing authority may use 363
the following procedure: Purchases may be made from the lowest 364
and best prequalified bidder. Solicitation of the 365
prequalification of bidders shall be in accordance with paragraph 366
(c) of this section and shall be determined not less than fifteen 367
(15) working days before the prequalified bidders are invited to 368
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 16 (OM\KW)

submit bids. Prequalification criteria shall be limited to 369
bidder's and proposed sub-contractor's knowledge and experience on 370
projects of similar size and scope, past performance, project 371
management team and financial stability. All best bid and 372
prequalification procedures for state agencies must be in 373
compliance with regulations established by the Department of 374
Finance and Administration. If any governing authority accepts a 375
bid other than the lowest bid actually submitted, it shall place 376
on its minutes detailed calculations and narrative summary showing 377
that the accepted bid was determined to be the lowest and best 378
bid, including the dollar amount of the accepted bid and the 379
dollar amount of the lowest bid. No agency or governing authority 380
shall accept a bid based on items not included in the 381
specifications. 382
(iv) Construction project negotiations authority. 383
If the lowest and best bid is not more than ten percent (10%) 384
above the amount of funds allocated for a public construction or 385
renovation project, then the agency or governing authority shall 386
be permitted to negotiate with the lowest bidder in order to enter 387
into a contract for an amount not to exceed the funds allocated. 388
(e) Lease-purchase authorization. For the purposes of 389
this section, the term "equipment" shall mean equipment, furniture 390
and, if applicable, associated software and other applicable 391
direct costs associated with the acquisition. Any lease-purchase 392
of equipment which an agency is not required to lease-purchase 393
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 17 (OM\KW)

under the master lease-purchase program pursuant to Section 394
31-7-10 and any lease-purchase of equipment which a governing 395
authority elects to lease-purchase may be acquired by a 396
lease-purchase agreement under this paragraph (e). Lease-purchase 397
financing may also be obtained from the vendor or from a 398
third-party source after having solicited and obtained at least 399
two (2) written competitive bids, as defined in paragraph (b) of 400
this section, for such financing without advertising for such 401
bids. Solicitation for the bids for financing may occur before or 402
after acceptance of bids for the purchase of such equipment or, 403
where no such bids for purchase are required, at any time before 404
the purchase thereof. No such lease-purchase agreement shall be 405
for an annual rate of interest which is greater than the overall 406
maximum interest rate to maturity on general obligation 407
indebtedness permitted under Section 75-17-101, and the term of 408
such lease-purchase agreement shall not exceed the useful life of 409
equipment covered thereby as determined according to the upper 410
limit of the asset depreciation range (ADR) guidelines for the 411
Class Life Asset Depreciation Range System established by the 412
Internal Revenue Service pursuant to the United States Internal 413
Revenue Code and regulations thereunder as in effect on December 414
31, 1980, or comparable depreciation guidelines with respect to 415
any equipment not covered by ADR guidelines. Any lease-purchase 416
agreement entered into pursuant to this paragraph (e) may contain 417
any of the terms and conditions which a master lease-purchase 418
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 18 (OM\KW)

agreement may contain under the provisions of Section 31-7-10(5), 419
and shall contain an annual allocation dependency clause 420
substantially similar to that set forth in Section 31-7-10(8). 421
Each agency or governing authority entering into a lease-purchase 422
transaction pursuant to this paragraph (e) shall maintain with 423
respect to each such lease-purchase transaction the same 424
information as required to be maintained by the Department of 425
Finance and Administration pursuant to Section 31-7-10(13). 426
However, nothing contained in this section shall be construed to 427
permit agencies to acquire items of equipment with a total 428
acquisition cost in the aggregate of less than Ten Thousand 429
Dollars ($10,000.00) by a single lease-purchase transaction. All 430
equipment, and the purchase thereof by any lessor, acquired by 431
lease-purchase under this paragraph and all lease-purchase 432
payments with respect thereto shall be exempt from all Mississippi 433
sales, use and ad valorem taxes. Interest paid on any 434
lease-purchase agreement under this section shall be exempt from 435
State of Mississippi income taxation. 436
(f) Alternate bid authorization. When necessary to 437
ensure ready availability of commodities for public works and the 438
timely completion of public projects, no more than two (2) 439
alternate bids may be accepted by a governing authority for 440
commodities. No purchases may be made through use of such 441
alternate bids procedure unless the lowest and best bidder cannot 442
deliver the commodities contained in his bid. In that event, 443
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 19 (OM\KW)

purchases of such commodities may be made from one (1) of the 444
bidders whose bid was accepted as an alternate. 445
(g) Construction contract change authorization. In the 446
event a determination is made by an agency or governing authority 447
after a construction contract is let that changes or modifications 448
to the original contract are necessary or would better serve the 449
purpose of the agency or the governing authority, such agency or 450
governing authority may, in its discretion, order such changes 451
pertaining to the construction that are necessary under the 452
circumstances without the necessity of further public bids; 453
provided that such change shall be made in a commercially 454
reasonable manner and shall not be made to circumvent the public 455
purchasing statutes. In addition to any other authorized person, 456
the architect or engineer hired by an agency or governing 457
authority with respect to any public construction contract shall 458
have the authority, when granted by an agency or governing 459
authority, to authorize changes or modifications to the original 460
contract without the necessity of prior approval of the agency or 461
governing authority when any such change or modification is less 462
than one percent (1%) of the total contract amount. The agency or 463
governing authority may limit the number, manner or frequency of 464
such emergency changes or modifications. 465
(h) Petroleum purchase alternative. In addition to 466
other methods of purchasing authorized in this chapter, when any 467
agency or governing authority shall have a need for gas, diesel 468
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 20 (OM\KW)

fuel, oils and/or other petroleum products in excess of the amount 469
set forth in paragraph (a) of this section, such agency or 470
governing authority may purchase the commodity after having 471
solicited and obtained at least two (2) competitive written bids, 472
as defined in paragraph (b) of this section. If two (2) 473
competitive written bids are not obtained, the entity shall comply 474
with the procedures set forth in paragraph (c) of this section. 475
In the event any agency or governing authority shall have 476
advertised for bids for the purchase of gas, diesel fuel, oils and 477
other petroleum products and coal and no acceptable bids can be 478
obtained, such agency or governing authority is authorized and 479
directed to enter into any negotiations necessary to secure the 480
lowest and best contract available for the purchase of such 481
commodities. 482
(i) Road construction petroleum products price 483
adjustment clause authorization. Any agency or governing 484
authority authorized to enter into contracts for the construction, 485
maintenance, surfacing or repair of highways, roads or streets, 486
may include in its bid proposal and contract documents a price 487
adjustment clause with relation to the cost to the contractor, 488
including taxes, based upon an industry-wide cost index, of 489
petroleum products including asphalt used in the performance or 490
execution of the contract or in the production or manufacture of 491
materials for use in such performance. Such industry-wide index 492
shall be established and published monthly by the Mississippi 493
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 21 (OM\KW)

Department of Transportation with a copy thereof to be mailed, 494
upon request, to the clerks of the governing authority of each 495
municipality and the clerks of each board of supervisors 496
throughout the state. The price adjustment clause shall be based 497
on the cost of such petroleum products only and shall not include 498
any additional profit or overhead as part of the adjustment. The 499
bid proposals or document contract shall contain the basis and 500
methods of adjusting unit prices for the change in the cost of 501
such petroleum products. 502
(j) State agency emergency purchase procedure. If the 503
governing board or the executive head, or his designees, of any 504
agency of the state shall determine that an emergency exists in 505
regard to the purchase of any commodities or repair contracts, so 506
that the delay incident to giving opportunity for competitive 507
bidding would be detrimental to the interests of the state, then 508
the head of such agency, or his designees, shall file with the 509
Department of Finance and Administration (i) a statement 510
explaining the conditions and circumstances of the emergency, 511
which shall include a detailed description of the events leading 512
up to the situation and the negative impact to the entity if the 513
purchase is made following the statutory requirements set forth in 514
paragraph (a), (b) or (c) of this section, and (ii) a certified 515
copy of the appropriate minutes of the board of such agency 516
requesting the emergency purchase, if applicable. Upon receipt of 517
the statement and applicable board certification, the State Fiscal 518
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 22 (OM\KW)

Officer, or his designees, may, in writing, authorize the purchase 519
or repair without having to comply with competitive bidding 520
requirements. 521
If the governing board or the executive head, or his 522
designees, of any agency determines that an emergency exists in 523
regard to the purchase of any commodities or repair contracts, so 524
that the delay incident to giving opportunity for competitive 525
bidding would threaten the health or safety of any person, or the 526
preservation or protection of property, then the provisions in 527
this section for competitive bidding shall not apply, and any 528
officer or agent of the agency having general or specific 529
authority for making the purchase or repair contract shall approve 530
the bill presented for payment, and he shall certify in writing 531
from whom the purchase was made, or with whom the repair contract 532
was made. 533
Total purchases made under this paragraph (j) shall only be 534
for the purpose of meeting needs created by the emergency 535
situation. Following the emergency purchase, documentation of the 536
purchase, including a description of the commodity purchased, the 537
purchase price thereof and the nature of the emergency shall be 538
filed with the Department of Finance and Administration. Any 539
contract awarded pursuant to this paragraph (j) shall not exceed a 540
term of one (1) year. 541
Purchases under the grant program established under Section 542
37-68-7 in response to COVID-19 and the directive that school 543
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 23 (OM\KW)

districts create a distance learning plan and fulfill technology 544
needs expeditiously shall be deemed an emergency purchase for 545
purposes of this paragraph (j). 546
(k) Governing authority emergency purchase procedure. 547
If the governing authority, or the governing authority acting 548
through its designee, shall determine that an emergency exists in 549
regard to the purchase of any commodities or repair contracts, so 550
that the delay incident to giving opportunity for competitive 551
bidding would be detrimental to the interest of the governing 552
authority, then the provisions herein for competitive bidding 553
shall not apply and any officer or agent of such governing 554
authority having general or special authority therefor in making 555
such purchase or repair shall approve the bill presented therefor, 556
and he shall certify in writing thereon from whom such purchase 557
was made, or with whom such a repair contract was made. At the 558
board meeting next following the emergency purchase or repair 559
contract, documentation of the purchase or repair contract, 560
including a description of the commodity purchased, the price 561
thereof and the nature of the emergency shall be presented to the 562
board and shall be placed on the minutes of the board of such 563
governing authority. Purchases under the grant program 564
established under Section 37-68-7 in response to COVID-19 and the 565
directive that school districts create a distance learning plan 566
and fulfill technology needs expeditiously shall be deemed an 567
emergency purchase for purposes of this paragraph (k). 568
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 24 (OM\KW)

(l) Hospital purchase, lease-purchase and lease 569
authorization. 570
(i) The commissioners or board of trustees of any 571
public hospital may contract with such lowest and best bidder for 572
the purchase or lease-purchase of any commodity under a contract 573
of purchase or lease-purchase agreement whose obligatory payment 574
terms do not exceed five (5) years. 575
(ii) In addition to the authority granted in 576
subparagraph (i) of this paragraph (l), the commissioners or board 577
of trustees is authorized to enter into contracts for the lease of 578
equipment or services, or both, which it considers necessary for 579
the proper care of patients if, in its opinion, it is not 580
financially feasible to purchase the necessary equipment or 581
services. Any such contract for the lease of equipment or 582
services executed by the commissioners or board shall not exceed a 583
maximum of five (5) years' duration and shall include a 584
cancellation clause based on unavailability of funds. If such 585
cancellation clause is exercised, there shall be no further 586
liability on the part of the lessee. Any such contract for the 587
lease of equipment or services executed on behalf of the 588
commissioners or board that complies with the provisions of this 589
subparagraph (ii) shall be excepted from the bid requirements set 590
forth in this section. 591
(m) Exceptions from bidding requirements. Excepted 592
from bid requirements are: 593
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 25 (OM\KW)

(i) Purchasing agreements approved by department. 594
Purchasing agreements, contracts and maximum price regulations 595
executed or approved by the Department of Finance and 596
Administration. 597
(ii) Outside equipment repairs. Repairs to 598
equipment, when such repairs are made by repair facilities in the 599
private sector; however, engines, transmissions, rear axles and/or 600
other such components shall not be included in this exemption when 601
replaced as a complete unit instead of being repaired and the need 602
for such total component replacement is known before disassembly 603
of the component; however, invoices identifying the equipment, 604
specific repairs made, parts identified by number and name, 605
supplies used in such repairs, and the number of hours of labor 606
and costs therefor shall be required for the payment for such 607
repairs. 608
(iii) In-house equipment repairs. Purchases of 609
parts for repairs to equipment, when such repairs are made by 610
personnel of the agency or governing authority; however, entire 611
assemblies, such as engines or transmissions, shall not be 612
included in this exemption when the entire assembly is being 613
replaced instead of being repaired. 614
(iv) Raw gravel or dirt. Raw unprocessed deposits 615
of gravel or fill dirt which are to be removed and transported by 616
the purchaser. 617
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 26 (OM\KW)

(v) Governmental equipment auctions. Motor 618
vehicles or other equipment purchased from a federal agency or 619
authority, another governing authority or state agency of the 620
State of Mississippi, or any governing authority or state agency 621
of another state at a public auction held for the purpose of 622
disposing of such vehicles or other equipment. Any purchase by a 623
governing authority under the exemption authorized by this 624
subparagraph (v) shall require advance authorization spread upon 625
the minutes of the governing authority to include the listing of 626
the item or items authorized to be purchased and the maximum bid 627
authorized to be paid for each item or items. 628
(vi) Intergovernmental sales and transfers. 629
Purchases, sales, transfers or trades by governing authorities or 630
state agencies when such purchases, sales, transfers or trades are 631
made by a private treaty agreement or through means of 632
negotiation, from any federal agency or authority, another 633
governing authority or state agency of the State of Mississippi, 634
or any state agency or governing authority of another state. 635
Nothing in this section shall permit such purchases through public 636
auction except as provided for in subparagraph (v) of this 637
paragraph (m). It is the intent of this section to allow 638
governmental entities to dispose of and/or purchase commodities 639
from other governmental entities at a price that is agreed to by 640
both parties. This shall allow for purchases and/or sales at 641
prices which may be determined to be below the market value if the 642
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 27 (OM\KW)

selling entity determines that the sale at below market value is 643
in the best interest of the taxpayers of the state. Governing 644
authorities shall place the terms of the agreement and any 645
justification on the minutes, and state agencies shall obtain 646
approval from the Department of Finance and Administration, prior 647
to releasing or taking possession of the commodities. 648
(vii) Perishable supplies or food. Perishable 649
supplies or food purchased for use in connection with hospitals, 650
the school lunch programs, homemaking programs and for the feeding 651
of county or municipal prisoners. 652
(viii) Single-source items. Noncompetitive items 653
available from one (1) source only. In connection with the 654
purchase of noncompetitive items only available from one (1) 655
source, a certification of the conditions and circumstances 656
requiring the purchase shall be filed by the agency with the 657
Department of Finance and Administration and by the governing 658
authority with the board of the governing authority. Upon receipt 659
of that certification the Department of Finance and Administration 660
or the board of the governing authority, as the case may be, may, 661
in writing, authorize the purchase, which authority shall be noted 662
on the minutes of the body at the next regular meeting thereafter. 663
In those situations, a governing authority is not required to 664
obtain the approval of the Department of Finance and 665
Administration. Following the purchase, the executive head of the 666
state agency, or his designees, shall file with the Department of 667
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 28 (OM\KW)

Finance and Administration, documentation of the purchase, 668
including a description of the commodity purchased, the purchase 669
price thereof and the source from whom it was purchased. 670
(ix) Waste disposal facility construction 671
contracts. Construction of incinerators and other facilities for 672
disposal of solid wastes in which products either generated 673
therein, such as steam, or recovered therefrom, such as materials 674
for recycling, are to be sold or otherwise disposed of; however, 675
in constructing such facilities, a governing authority or agency 676
shall publicly issue requests for proposals, advertised for in the 677
same manner as provided herein for seeking bids for public 678
construction projects, concerning the design, construction, 679
ownership, operation and/or maintenance of such facilities, 680
wherein such requests for proposals when issued shall contain 681
terms and conditions relating to price, financial responsibility, 682
technology, environmental compatibility, legal responsibilities 683
and such other matters as are determined by the governing 684
authority or agency to be appropriate for inclusion; and after 685
responses to the request for proposals have been duly received, 686
the governing authority or agency may select the most qualified 687
proposal or proposals on the basis of price, technology and other 688
relevant factors and from such proposals, but not limited to the 689
terms thereof, negotiate and enter contracts with one or more of 690
the persons or firms submitting proposals. 691
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 29 (OM\KW)

(x) Hospital group purchase contracts. Supplies, 692
commodities and equipment purchased by hospitals through group 693
purchase programs pursuant to Section 31-7-38. 694
(xi) Information technology products. Purchases 695
of information technology products made by governing authorities 696
under the provisions of purchase schedules, or contracts executed 697
or approved by the Mississippi Department of Information 698
Technology Services and designated for use by governing 699
authorities. 700
(xii) Energy efficiency services and equipment. 701
Energy efficiency services and equipment acquired by school 702
districts, community and junior colleges, institutions of higher 703
learning and state agencies or other applicable governmental 704
entities on a shared-savings, lease or lease-purchase basis 705
pursuant to Section 31-7-14. 706
(xiii) Municipal electrical utility system fuel. 707
Purchases of coal and/or natural gas by municipally owned electric 708
power generating systems that have the capacity to use both coal 709
and natural gas for the generation of electric power. 710
(xiv) Library books and other reference materials. 711
Purchases by libraries or for libraries of books and periodicals; 712
processed film, videocassette tapes, filmstrips and slides; 713
recorded audiotapes, cassettes and diskettes; and any such items 714
as would be used for teaching, research or other information 715
distribution; however, equipment such as projectors, recorders, 716
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 30 (OM\KW)

audio or video equipment, and monitor televisions are not exempt 717
under this subparagraph. 718
(xv) Unmarked vehicles. Purchases of unmarked 719
vehicles when such purchases are made in accordance with 720
purchasing regulations adopted by the Department of Finance and 721
Administration pursuant to Section 31-7-9(2). 722
(xvi) Election ballots. Purchases of ballots 723
printed pursuant to Section 23-15-351. 724
(xvii) Multichannel interactive video systems. 725
From and after July 1, 1990, contracts by Mississippi Authority 726
for Educational Television with any private educational 727
institution or private nonprofit organization whose purposes are 728
educational in regard to the construction, purchase, lease or 729
lease-purchase of facilities and equipment and the employment of 730
personnel for providing multichannel interactive video systems 731
(ITSF) in the school districts of this state. 732
(xviii) Purchases of prison industry products by 733
the Department of Corrections, regional correctional facilities or 734
privately owned prisons. Purchases made by the Mississippi 735
Department of Corrections, regional correctional facilities or 736
privately owned prisons involving any item that is manufactured, 737
processed, grown or produced from the state's prison industries. 738
(xix) Undercover operations equipment. Purchases 739
of surveillance equipment or any other high-tech equipment to be 740
used by law enforcement agents in undercover operations, provided 741
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 31 (OM\KW)

that any such purchase shall be in compliance with regulations 742
established by the Department of Finance and Administration. 743
(xx) Junior college books for rent. Purchases by 744
community or junior colleges of textbooks which are obtained for 745
the purpose of renting such books to students as part of a book 746
service system. 747
(xxi) Certain school district purchases. 748
Purchases of commodities made by school districts from vendors 749
with which any levying authority of the school district, as 750
defined in Section 37-57-1, has contracted through competitive 751
bidding procedures for purchases of the same commodities. 752
(xxii) Garbage, solid waste and sewage contracts. 753
Contracts for garbage collection or disposal, contracts for solid 754
waste collection or disposal and contracts for sewage collection 755
or disposal. 756
(xxiii) Municipal water tank maintenance 757
contracts. Professional maintenance program contracts for the 758
repair or maintenance of municipal water tanks, which provide 759
professional services needed to maintain municipal water storage 760
tanks for a fixed annual fee for a duration of two (2) or more 761
years. 762
(xxiv) Purchases of Mississippi Industries for the 763
Blind products or services. Purchases made by state agencies or 764
governing authorities involving any item that is manufactured, 765
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 32 (OM\KW)

processed or produced by, or any services provided by, the 766
Mississippi Industries for the Blind. 767
(xxv) Purchases of state-adopted textbooks. 768
Purchases of state-adopted textbooks by public school districts. 769
(xxvi) Certain purchases under the Mississippi 770
Major Economic Impact Act. Contracts entered into pursuant to the 771
provisions of Section 57-75-9(2), (3) and (4). 772
(xxvii) Used heavy or specialized machinery or 773
equipment for installation of soil and water conservation 774
practices purchased at auction. Used heavy or specialized 775
machinery or equipment used for the installation and 776
implementation of soil and water conservation practices or 777
measures purchased subject to the restrictions provided in 778
Sections 69-27-331 through 69-27-341. Any purchase by the State 779
Soil and Water Conservation Commission under the exemption 780
authorized by this subparagraph shall require advance 781
authorization spread upon the minutes of the commission to include 782
the listing of the item or items authorized to be purchased and 783
the maximum bid authorized to be paid for each item or items. 784
(xxviii) Hospital lease of equipment or services. 785
Leases by hospitals of equipment or services if the leases are in 786
compliance with paragraph (l)(ii). 787
(xxix) Purchases made pursuant to qualified 788
cooperative purchasing agreements. Purchases made by certified 789
purchasing offices of state agencies or governing authorities 790
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 33 (OM\KW)

under cooperative purchasing agreements previously approved by the 791
Office of Purchasing and Travel and established by or for any 792
municipality, county, parish or state government or the federal 793
government, provided that the notification to potential 794
contractors includes a clause that sets forth the availability of 795
the cooperative purchasing agreement to other governmental 796
entities. Such purchases shall only be made if the use of the 797
cooperative purchasing agreements is determined to be in the best 798
interest of the governmental entity. 799
(xxx) School yearbooks. Purchases of school 800
yearbooks by state agencies or governing authorities; however, 801
state agencies and governing authorities shall use for these 802
purchases the RFP process as set forth in the Mississippi 803
Procurement Manual adopted by the Office of Purchasing and Travel. 804
(xxxi) Design-build method of contracting and 805
certain other contracts. Contracts entered into under the 806
provisions of Section 31-7-13.1, 37-101-44 or 65-1-85. 807
(xxxii) Toll roads and bridge construction 808
projects. Contracts entered into under the provisions of Section 809
65-43-1 or 65-43-3. 810
(xxxiii) Certain purchases under Section 57-1-221. 811
Contracts entered into pursuant to the provisions of Section 812
57-1-221. 813
(xxxiv) Certain transfers made pursuant to the 814
provisions of Section 57-105-1(7). Transfers of public property 815
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 34 (OM\KW)

or facilities under Section 57-105-1(7) and construction related 816
to such public property or facilities. 817
(xxxv) Certain purchases or transfers entered into 818
with local electrical power associations. Contracts or agreements 819
entered into under the provisions of Section 55-3-33. 820
(xxxvi) Certain purchases by an academic medical 821
center or health sciences school. Purchases by an academic 822
medical center or health sciences school, as defined in Section 823
37-115-50, of commodities that are used for clinical purposes and 824
1. intended for use in the diagnosis of disease or other 825
conditions or in the cure, mitigation, treatment or prevention of 826
disease, and 2. medical devices, biological, drugs and 827
radiation-emitting devices as defined by the United States Food 828
and Drug Administration. 829
(xxxvii) Certain purchases made under the Alyce G. 830
Clarke Mississippi Lottery Law. Contracts made by the Mississippi 831
Lottery Corporation pursuant to the Alyce G. Clarke Mississippi 832
Lottery Law. 833
(xxxviii) Certain purchases made by the Department 834
of Health and the Department of Revenue. Purchases made by the 835
Department of Health and the Department of Revenue solely for the 836
purpose of fulfilling their respective responsibilities under the 837
Mississippi Medical Cannabis Act. This subparagraph shall stand 838
repealed on June 30, 2026. 839
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 35 (OM\KW)

(xxxix) Purchases made by state agencies related 840
to museum exhibits. Purchases made by an agency related to the 841
fabrication, construction, installation or refurbishing of museum 842
exhibits. An agency making a purchase under this exemption in 843
excess of the bid threshold set forth in paragraph (c) of this 844
section shall publicly advertise a Request for Qualifications or 845
Request for Proposals in which price as an evaluation factor is at 846
least twenty percent (20%) out of the one hundred percent (100%) 847
total weight, but shall be otherwise exempt. Any contract arising 848
from a purchase using this exemption must be approved by the 849
Public Procurement Review Board prior to execution by the agency. 850
The agency shall submit a written report on December 1 of each 851
year to the Chairs of the Senate and House Appropriations 852
Committees, the Chairs of the Senate and House Accountability, 853
Efficiency and Transparency Committees and the Chair of the Public 854
Procurement Review Board, identifying all purchases made by the 855
agency using this exemption in which the cost of the option 856
selected by the agency was more than twenty-five percent (25%) 857
higher than the lowest cost option available. 858
(xl) County group purchase contracts. Supplies, 859
commodities and equipment purchased by counties through group 860
purchase programs pursuant to Section 1 of this act. 861
(n) Term contract authorization. All contracts for the 862
purchase of: 863
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 36 (OM\KW)

(i) All contracts for the purchase of commodities, 864
equipment and public construction (including, but not limited to, 865
repair and maintenance), may be let for periods of not more than 866
sixty (60) months in advance, subject to applicable statutory 867
provisions prohibiting the letting of contracts during specified 868
periods near the end of terms of office. Term contracts for a 869
period exceeding twenty-four (24) months shall also be subject to 870
ratification or cancellation by governing authority boards taking 871
office subsequent to the governing authority board entering the 872
contract. 873
(ii) Bid proposals and contracts may include price 874
adjustment clauses with relation to the cost to the contractor 875
based upon a nationally published industry-wide or nationally 876
published and recognized cost index. The cost index used in a 877
price adjustment clause shall be determined by the Department of 878
Finance and Administration for the state agencies and by the 879
governing board for governing authorities. The bid proposal and 880
contract documents utilizing a price adjustment clause shall 881
contain the basis and method of adjusting unit prices for the 882
change in the cost of such commodities, equipment and public 883
construction. 884
(o) Purchase law violation prohibition and vendor 885
penalty. No contract or purchase as herein authorized shall be 886
made for the purpose of circumventing the provisions of this 887
section requiring competitive bids, nor shall it be lawful for any 888
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 37 (OM\KW)

person or concern to submit individual invoices for amounts within 889
those authorized for a contract or purchase where the actual value 890
of the contract or commodity purchased exceeds the authorized 891
amount and the invoices therefor are split so as to appear to be 892
authorized as purchases for which competitive bids are not 893
required. Submission of such invoices shall constitute a 894
misdemeanor punishable by a fine of not less than Five Hundred 895
Dollars ($500.00) nor more than One Thousand Dollars ($1,000.00), 896
or by imprisonment for thirty (30) days in the county jail, or 897
both such fine and imprisonment. In addition, the claim or claims 898
submitted shall be forfeited. 899
(p) Electrical utility petroleum-based equipment 900
purchase procedure. When in response to a proper advertisement 901
therefor, no bid firm as to price is submitted to an electric 902
utility for power transformers, distribution transformers, power 903
breakers, reclosers or other articles containing a petroleum 904
product, the electric utility may accept the lowest and best bid 905
therefor although the price is not firm. 906
(q) Fuel management system bidding procedure. Any 907
governing authority or agency of the state shall, before 908
contracting for the services and products of a fuel management or 909
fuel access system, enter into negotiations with not fewer than 910
two (2) sellers of fuel management or fuel access systems for 911
competitive written bids to provide the services and products for 912
the systems. In the event that the governing authority or agency 913
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 38 (OM\KW)

cannot locate two (2) sellers of such systems or cannot obtain 914
bids from two (2) sellers of such systems, it shall show proof 915
that it made a diligent, good-faith effort to locate and negotiate 916
with two (2) sellers of such systems. Such proof shall include, 917
but not be limited to, publications of a request for proposals and 918
letters soliciting negotiations and bids. For purposes of this 919
paragraph (q), a fuel management or fuel access system is an 920
automated system of acquiring fuel for vehicles as well as 921
management reports detailing fuel use by vehicles and drivers, and 922
the term "competitive written bid" shall have the meaning as 923
defined in paragraph (b) of this section. Governing authorities 924
and agencies shall be exempt from this process when contracting 925
for the services and products of fuel management or fuel access 926
systems under the terms of a state contract established by the 927
Office of Purchasing and Travel. 928
(r) Solid waste contract proposal procedure. Before 929
entering into any contract for garbage collection or disposal, 930
contract for solid waste collection or disposal or contract for 931
sewage collection or disposal, which involves an expenditure of 932
more than Seventy-five Thousand Dollars ($75,000.00), a governing 933
authority or agency shall issue publicly a request for proposals 934
concerning the specifications for such services which shall be 935
advertised for in the same manner as provided in this section for 936
seeking bids for purchases which involve an expenditure of more 937
than the amount provided in paragraph (c) of this section. Any 938
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 39 (OM\KW)

request for proposals when issued shall contain terms and 939
conditions relating to price, financial responsibility, 940
technology, legal responsibilities and other relevant factors as 941
are determined by the governing authority or agency to be 942
appropriate for inclusion; all factors determined relevant by the 943
governing authority or agency or required by this paragraph (r) 944
shall be duly included in the advertisement to elicit proposals. 945
After responses to the request for proposals have been duly 946
received, the governing authority or agency shall select the most 947
qualified proposal or proposals on the basis of price, technology 948
and other relevant factors and from such proposals, but not 949
limited to the terms thereof, negotiate and enter into contracts 950
with one or more of the persons or firms submitting proposals. If 951
the governing authority or agency deems none of the proposals to 952
be qualified or otherwise acceptable, the request for proposals 953
process may be reinitiated. Notwithstanding any other provisions 954
of this paragraph, where a county with at least thirty-five 955
thousand (35,000) nor more than forty thousand (40,000) 956
population, according to the 1990 federal decennial census, owns 957
or operates a solid waste landfill, the governing authorities of 958
any other county or municipality may contract with the governing 959
authorities of the county owning or operating the landfill, 960
pursuant to a resolution duly adopted and spread upon the minutes 961
of each governing authority involved, for garbage or solid waste 962
collection or disposal services through contract negotiations. 963
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 40 (OM\KW)

(s) Minority set-aside authorization. Notwithstanding 964
any provision of this section to the contrary, any agency or 965
governing authority, by order placed on its minutes, may, in its 966
discretion, set aside not more than twenty percent (20%) of its 967
anticipated annual expenditures for the purchase of commodities 968
from minority businesses; however, all such set-aside purchases 969
shall comply with all purchasing regulations promulgated by the 970
Department of Finance and Administration and shall be subject to 971
bid requirements under this section. Set-aside purchases for 972
which competitive bids are required shall be made from the lowest 973
and best minority business bidder. For the purposes of this 974
paragraph, the term "minority business" means a business which is 975
owned by a majority of persons who are United States citizens or 976
permanent resident aliens (as defined by the Immigration and 977
Naturalization Service) of the United States, and who are Asian, 978
Black, Hispanic or Native American, according to the following 979
definitions: 980
(i) "Asian" means persons having origins in any of 981
the original people of the Far East, Southeast Asia, the Indian 982
subcontinent, or the Pacific Islands. 983
(ii) "Black" means persons having origins in any 984
black racial group of Africa. 985
(iii) "Hispanic" means persons of Spanish or 986
Portuguese culture with origins in Mexico, South or Central 987
America, or the Caribbean Islands, regardless of race. 988
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 41 (OM\KW)

(iv) "Native American" means persons having 989
origins in any of the original people of North America, including 990
American Indians, Eskimos and Aleuts. 991
(t) Construction punch list restriction. The 992
architect, engineer or other representative designated by the 993
agency or governing authority that is contracting for public 994
construction or renovation may prepare and submit to the 995
contractor only one (1) preliminary punch list of items that do 996
not meet the contract requirements at the time of substantial 997
completion and one (1) final list immediately before final 998
completion and final payment. 999
(u) Procurement of construction services by state 1000
institutions of higher learning. Contracts for privately financed 1001
construction of auxiliary facilities on the campus of a state 1002
institution of higher learning may be awarded by the Board of 1003
Trustees of State Institutions of Higher Learning to the lowest 1004
and best bidder, where sealed bids are solicited, or to the 1005
offeror whose proposal is determined to represent the best value 1006
to the citizens of the State of Mississippi, where requests for 1007
proposals are solicited. 1008
(v) Insurability of bidders for public construction or 1009
other public contracts. In any solicitation for bids to perform 1010
public construction or other public contracts to which this 1011
section applies, including, but not limited to, contracts for 1012
repair and maintenance, for which the contract will require 1013
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 42 (OM\KW)

insurance coverage in an amount of not less than One Million 1014
Dollars ($1,000,000.00), bidders shall be permitted to either 1015
submit proof of current insurance coverage in the specified amount 1016
or demonstrate ability to obtain the required coverage amount of 1017
insurance if the contract is awarded to the bidder. Proof of 1018
insurance coverage shall be submitted within five (5) business 1019
days from bid acceptance. 1020
(w) Purchase authorization clarification. Nothing in 1021
this section shall be construed as authorizing any purchase not 1022
authorized by law. 1023
(x) Mississippi Regional Pre-Need Disaster Clean Up 1024
Act. (i) The Department of Finance and Administration shall 1025
develop and implement a process that creates a preferred vendor 1026
list for both disaster debris removal and monitoring. 1027
(ii) Any board of supervisors of any county or any 1028
governing authority of any municipality may opt in to the benefits 1029
and services provided under the appropriate and relevant contract 1030
established in subparagraph (i) of this paragraph at the time of a 1031
disaster event in that county or municipality. At the time of opt 1032
in, the county or municipality shall assume responsibility for 1033
payment in full to the contractor for the disaster-related solid 1034
waste collection, disposal or monitoring services provided. 1035
Nothing in this subparagraph (ii) shall be construed as requiring 1036
a county or municipality to opt in to any such contract 1037
established in subparagraph (i) of this paragraph. 1038
H. B. No. 1525 *HR26/R2048CS* ~ OFFICIAL ~
26/HR26/R2048CS
PAGE 43 (OM\KW)
ST: Counties; authorize to participate in a
group purchasing program operated by the
Mississippi Association of Supervisors.
SECTION 4. Section 1 of this act shall be codified in 1039
Chapter 7, Title 31, Mississippi Code of 1972. 1040
SECTION 5. This act shall take effect and be in force from 1041
and after July 1, 2026. 1042