Disaster assistance; increase amount of funds MEMA may request to provide and create loan program for local governments to receive.

H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~ G1/2
26/HR26/R2125SG
PAGE 1 (ELS\KW)

To: State Affairs;
Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Deweese, Hale

HOUSE BILL NO. 1646
(As Sent to Governor)

AN ACT TO AMEND SECTIONS 33-15-307 AND 33-15-308, MISSISSIPPI 1
CODE OF 1972, WHICH RELATE TO THE DISASTER TRUST FUND, TO INCREASE 2
TRANSFER LIMITS, REFLECT PASSED AMENDMENTS, AND UPDATE TO CURRENT 3
BUDGET STANDARDS; TO CREATE THE LOCAL GOVERNMENTS DISASTER 4
RECOVERY EMERGENCY LOAN PROGRAM ACT; TO DEFINE TERMS; TO ESTABLISH 5
THE LOCAL GOVERNMENTS DISASTER RECOVERY EMERGENCY LOAN PROGRAM TO 6
BE ADMINISTERED BY THE MISSISSIPPI EMERGENCY MANAGEMENT AGENCY FOR 7
THE PURPOSE OF ASSISTING LOCAL GOVERNMENTS IN RECOVERING FROM 8
CERTAIN FEDERALLY DECLARED DISASTERS BY ISSUING LOANS TO LOCAL 9
GOVERNMENTS; TO PROVIDE THAT NO LOAN SHALL BE ISSUED UNDER THE 10
AUTHORITY OF THIS ACT AFTER A CERTAIN DATE; TO SET FORTH THE 11
POWERS AND DUTIES OF THE MISSISSIPPI EMERGENCY MANAGEMENT AGENCY 12
IN ADMINISTERING THIS ACT; TO REQUIRE THE MISSISSIPPI EMERGENCY 13
MANAGEMENT AGENCY TO AUTHORIZE AN ADMINISTRATOR TO CARRY OUT ANY 14
OR ALL OF THE POWERS AND DUTIES ENUMERATED IN THIS ACT; TO EXEMPT 15
THE MISSISSIPPI EMERGENCY MANAGEMENT AGENCY FROM ANY REQUIREMENT 16
THAT THE PUBLIC PROCUREMENT REVIEW BOARD APPROVE ANY PERSONAL OR 17
PROFESSIONAL SERVICES CONTRACTS OR PRE-APPROVE ANY SOLICITATION OF 18
SUCH CONTRACTS FOR PURPOSES OF THIS ACT; TO CREATE A SPECIAL FUND 19
IN THE STATE TREASURY TO BE DESIGNATED AS THE LOCAL GOVERNMENTS 20
DISASTER RECOVERY EMERGENCY LOAN FUND; TO REQUIRE EACH RECIPIENT 21
OF A LOAN UNDER THE PROGRAM TO ESTABLISH A DEDICATED SOURCE OF 22
REVENUE FOR REPAYMENT OF THE LOAN IN THE EVENT THAT THE FEDERAL 23
EMERGENCY MANAGEMENT AGENCY DECLINES TO REIMBURSE AN EXPENDITURE 24
FOR WHICH LOAN PROCEEDS WERE USED; TO PROVIDE THAT THE EXECUTED 25
LOAN AGREEMENT WILL OBLIGATE THE LOCAL GOVERNMENT TO REPAY THE 26
PROCEEDS OF THE LOAN IMMEDIATELY UPON RECEIPT OF REIMBURSEMENTS 27
FROM THE FEDERAL EMERGENCY MANAGEMENT AGENCY; TO PROVIDE THAT THE 28
LOAN AGREEMENT SHALL PROVIDE FOR THE REPAYMENT OF ALL FUNDS 29
RECEIVED FROM THE EMERGENCY FUND WITHIN NOT MORE THAN TWO YEARS 30
FROM THE DATE THAT THE FEDERAL EMERGENCY MANAGEMENT AGENCY 31
DECLINED TO REIMBURSE FOR AN EXPENDITURE FOR WHICH LOAN PROCEEDS 32
WERE USED; TO REQUIRE A RECIPIENT LOCAL GOVERNMENT TO PLEDGE ITS 33
SALES TAX REVENUE DISTRIBUTION OR ITS HOMESTEAD EXEMPTION ANNUAL 34
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 2 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
TAX LOSS REIMBURSEMENT, AS THE CASE MAY BE, TO MEET THE REPAYMENT 35
SCHEDULE CONTAINED IN THE LOAN AGREEMENT IN THE EVENT THAT THE 36
FEDERAL EMERGENCY MANAGEMENT AGENCY DECLINES TO REIMBURSE AN 37
EXPENDITURE FOR WHICH LOAN PROCEEDS WERE USED; TO AMEND SECTION 38
27-104-7, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ANY PERSONAL 39
OR PROFESSIONAL SERVICE CONTRACTS ENTERED INTO BY THE MISSISSIPPI 40
EMERGENCY MANAGEMENT AGENCY UNDER THIS ACT ARE EXEMPT FROM 41
APPROVAL BY THE PUBLIC PROCUREMENT REVIEW BOARD; AND FOR RELATED 42
PURPOSES. 43
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 44
SECTION 1. Section 33-15-307, Mississippi Code of 1972, is 45
amended as follows: 46
33-15-307. (1) The provisions of this article shall be 47
invoked only pursuant to a state of emergency declared by the 48
Governor or an emergency or major disaster declared by the 49
President, or pursuant to an executive order of the Governor, or 50
administrative order of the director, in order to provide state or 51
local government resources and personnel in compliance with the 52
provisions of the Emergency Management Assistance Compact, Section 53
45-18-1 et seq., or in nondeclared times for administrative and 54
training costs associated with state disaster response and 55
recovery programs. Each declaration shall cite the cause for the 56
declaration and define the area eligible for assistance and the 57
type of assistance to be provided. 58
(2) The Disaster Assistance Trust Fund is created as a 59
special fund in the State Treasury into which shall be paid any 60
funds appropriated or otherwise made available by the Legislature 61
for disaster assistance, any funds transferred from the Working 62
Cash-Stabilization Reserve Fund as provided under subsection (5) 63
of this section, any income from investment of the funds in the 64
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 3 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
trust fund, and federal reimbursement for administrative costs for 65
management of the Individuals and Households Program (IHP), the 66
Public Assistance Program, the Hazard Mitigation Program and 67
Disaster Reservist Program. 68
(3) Income from investment of the funds in the trust fund, 69
and all other funds deposited therein pursuant to law, shall be 70
available for expenditure, transfer and allocation pursuant to 71
this article. 72
(4) The Disaster Assistance Trust Fund shall be used only 73
for the following purposes: 74
(a) The state's portion of the cost share for public 75
assistance under a major disaster declaration. 76
(b) The state's cost share of the Individuals and 77
Households Program (IHP) pursuant to Section 33-15-209(1) under a 78
major disaster declared by the President. 79
(c) Administrative costs for managing the IHP. 80
(d) Administrative costs for managing the Public 81
Assistance Program. 82
(e) The State Temporary Housing Program pursuant to 83
Section 33-15-217 under a state of emergency declared by the 84
Governor. 85
(f) Out-of-pocket expenses, including travel, per diem, 86
overtime and other similar expenses, of state or local agencies 87
when so tasked by the Governor or the director for emergency 88
response under the provisions of Section 33-15-11(b)(7) and 89
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 4 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
current executive orders. This includes actual emergency response 90
and recovery activities, and applies to mobilization and 91
deployment of personnel from state or local agencies to another 92
state under the provisions of the Emergency Management Assistance 93
Compact. At the discretion of the director, this may include 94
reimbursement of costs to local governments for overtime and 95
backfill of deployed personnel within the state under the 96
provisions of Section 33-15-15(a) and to jurisdictions who are 97
signatories of the Statewide Mutual Aid Compact (SMAC). 98
(g) Costs incurred as a result of state active duty for 99
the Mississippi National Guard when so tasked by the Governor to 100
provide support to other agencies and local governments in a major 101
disaster or emergency situation, or when tasked by the Governor to 102
provide support to another state under the provisions of the 103
Emergency Management Assistance Compact. 104
(h) The state's portion of the cost share for hazard 105
mitigation under a major disaster declaration. 106
(i) Administrative costs of the Hazard Mitigation 107
Program. 108
(j) Costs incurred as a result of the implementation of 109
the Disaster Reservist Program under a major disaster declaration. 110
(k) Administrative costs of the Disaster Reservist 111
Program. 112
(l) Costs incurred as a result of the implementation of 113
public assistance, and/or individual assistance, and/or Disaster 114
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 5 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
Reservist Program, and/or hazard mitigation, and/or temporary 115
housing under a Governor's state of emergency. 116
(m) * * * [Deleted]. 117
(n) Actual costs, including personnel call-back wages, 118
base and overtime wages, travel, per diem and other out-of-pocket 119
expenses incurred by regional response teams as a result of being 120
mobilized or deployed when so tasked by the Governor pursuant to 121
Section 33-15-11(b)(7), or by the director for emergency response 122
pursuant to Section 33-15-15(a). 123
(o) The state's portion of the cost share for public 124
assistance under the Presidential Declaration of Major Disaster 125
for the State of Mississippi (FEMA-1604-DR) dated August 29, 2005, 126
for hurricane or other storm damage to public facilities and 127
infrastructure as a result of Hurricane Katrina, as provided in 128
Section 3 of Chapter 538, Laws of 2006. 129
(p) Costs incurred for alternative housing grants up to 130
Two Hundred Fifty Thousand Dollars ($250,000.00) per county, per 131
event, to be administered by the Mississippi Emergency Management 132
Agency for materials only for repairs to communities that do not 133
qualify for Federal Emergency Management Agency Individual 134
Assistance Grants. 135
(q) Costs incurred by the Mississippi Emergency 136
Management Agency, approved by the executive director, to assist 137
municipalities and counties by allowing them to apply and receive 138
funds for debris removal support, which funds shall be reimbursed 139
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 6 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
to the Mississippi Emergency Management Agency at the date 140
determined after the federal disaster declaration. The 141
Mississippi Emergency Management Agency shall adopt rules and 142
regulations necessary to administer this program. 143
(5) Whenever the director determines that funds are 144
immediately needed in the Disaster Assistance Trust Fund to 145
provide for disaster assistance under this article, he shall 146
notify the Executive Director of the Department of Finance and 147
Administration of his determination and shall requisition the 148
amount of funds from the Working Cash-Stabilization Fund that are 149
needed in the trust fund, which shall be subject to the 150
limitations set forth below in this subsection. At the same time 151
he makes the requisition, the director shall notify the Lieutenant 152
Governor, the Speaker of the House of Representatives and the 153
respective Chairmen of the Senate Appropriations Committee, the 154
Senate Finance Committee, the House Appropriations Committee and 155
the House Ways and Means Committee of his determination of the 156
need for the funds and the amount that he has requisitioned. Upon 157
receipt of such a requisition from the director, the Executive 158
Director of the Department of Finance and Administration shall 159
ascertain if the amount requisitioned is available in the Working 160
Cash-Stabilization Reserve Fund and is within the limitations set 161
forth below in this subsection and, if it is, he shall transfer 162
that amount from the Working Cash-Stabilization Reserve Fund to 163
the trust fund. If the amount requisitioned is more than the 164
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 7 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
amount available in the Working Cash-Stabilization Fund or above 165
the limitations set forth below in this subsection, the executive 166
director shall transfer the amount that is available within the 167
limitations. The maximum amount that may be transferred from the 168
Working Cash-Stabilization Reserve Fund and/or any other 169
special-source funds maintained in the State Treasury to the trust 170
fund for any disaster or disasters occurrence shall be * * * Two 171
Million Five Hundred Thousand Dollars ($2,500,000.00) and the 172
maximum amount that may be transferred during any fiscal year 173
shall be * * * Five Million Dollars ($5,000,000.00). 174
(6) Unexpended state funds in the Disaster Assistance Trust 175
Fund at the end of a fiscal year shall not lapse into the State 176
General Fund but shall remain in the trust fund for use under this 177
article for as long as the funds are needed for the particular 178
purpose for which they were appropriated, deposited or transferred 179
into the trust fund. After any state funds in the trust fund are 180
no longer needed for the particular purpose for which they were 181
appropriated, deposited or transferred into the trust fund, the 182
director may use those funds for any other purpose under this 183
article for which they currently are needed and for which other 184
funds are not available. If there is no current need for such 185
funds for any purpose under this article, the funds and the income 186
earned from the investment of the funds shall be transferred back 187
to the particular fund or funds in the State Treasury from which 188
they were appropriated or transferred into the trust fund, upon 189
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 8 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
certification of the director to the Executive Director of the 190
Department of Finance and Administration that the funds are not 191
currently needed; however, if such funds are derived from the 192
proceeds of general obligation bonds issued by the state under 193
Section 3 of Chapter 538, Laws of 2006, such excess funds and the 194
income earned from such funds shall be utilized to pay the debt 195
service on such bonds. 196
SECTION 2. Section 33-15-308, Mississippi Code of 1972, is 197
amended as follows: 198
33-15-308. It is the intention of the Legislature that 199
whenever the Director of the Mississippi Emergency Management 200
Agency determines that funds are immediately needed in the 201
Disaster Assistance Trust Fund to provide for disaster assistance 202
under this section, he shall notify the Executive Director of the 203
Department of Finance and Administration of his determination and 204
shall requisition the amount of funds from the Working 205
Cash-Stabilization Reserve Fund (Fund No. 3992) and/or * * * any 206
other special-source funds maintained in the State Treasury that 207
are needed in the trust fund, which shall be subject to the 208
limitations set forth below in this section. At the same time he 209
makes the requisition, the director shall notify the Lieutenant 210
Governor, the Speaker of the House of Representatives and the 211
respective Chairmen of the Senate Appropriations Committee, the 212
Senate Finance Committee, the House Appropriations Committee and 213
the House Ways and Means Committee of his determination of the 214
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 9 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
need for the funds and the amount that he has requisitioned. Upon 215
receipt of such a requisition from the director, the Executive 216
Director of the Department of Finance and Administration shall 217
ascertain if the amount requisitioned is available in the Working 218
Cash-Stabilization Reserve Fund (Fund No. 3992) and/or * * * any 219
other special-source funds maintained in the State Treasury and is 220
within the limitations set forth below in this section and, if it 221
is, he shall transfer that amount from the Working 222
Cash-Stabilization Reserve Fund (Fund No. 3992) and/or * * * any 223
other special-source funds maintained in the State Treasury to the 224
trust fund. If the amount requisitioned is more than the amount 225
available in the Working Cash-Stabilization Reserve Fund (Fund No. 226
3992) and/or * * * any other special-source funds maintained in 227
the State Treasury or above the limitations set forth below in 228
this section, the executive director shall transfer the amount 229
that is available within the limitations. The maximum amount that 230
may be transferred from the Working Cash-Stabilization Reserve 231
Fund (Fund No. 3992) and/or * * * any other special-source funds 232
maintained in the State Treasury to the trust fund for any one (1) 233
disaster occurrence shall be * * * Two Million Five Hundred 234
Thousand Dollars ($2,500,000.00) and the maximum amount that may 235
be transferred during any fiscal year shall be * * * Five Million 236
Dollars ($5,000,000.00). 237
It is the intention of the Legislature, that during the 238
subsequent legislative session, consideration shall be given to 239
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 10 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
provide an appropriation equal to the amount transferred from the 240
Working Cash-Stabilization Reserve Fund (Fund No. 3992) 241
and/or * * * any other special-source funds maintained in the 242
State Treasury to the Disaster Assistance Trust Fund under the 243
provisions of this section as repayment to the Working 244
Cash-Stabilization Reserve Fund (Fund No. 3992) and/or the Budget 245
Contingency Fund. 246
SECTION 3. Sections 3 through 8 of this act shall be known 247
and may be cited as the "Local Governments Disaster Recovery 248
Emergency Loan Program Act." 249
SECTION 4. As used in Sections 3 through 8 of this act, the 250
following terms have the meanings as defined in this section 251
unless the context clearly requires otherwise: 252
(a) "Agency" means the Mississippi Emergency Management 253
Agency. 254
(b) "Disaster" means the federally declared disaster 255
Number EM-3640/DR-4899-MS, for the winter storm on January 23 256
through 27, 2026. 257
(c) "Eligible expenditure(s)" means seventy-five 258
percent (75%) of expenses incurred by a local government that are 259
reimbursable from the Federal Emergency Management Agency under 260
the public assistance category A through F for that local 261
government within the federally declared disaster area. For 262
expenses of a local government under the public assistance 263
category F, any expenditures for utility co-operatives shall only 264
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 11 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
be incurred for government utility co-operatives. The term does 265
not include expenses incurred for losses that are otherwise 266
covered as insured losses or covered by donations. 267
(d) "Emergency fund" means the 2026 Local Governments 268
Disaster Recovery Emergency Loan Fund created in Section 6 of this 269
act. 270
(e) "Federal disaster declaration" means the 271
presidential declaration, EM-3640/DR-4899-MS, providing assistance 272
in response and recovery to the disaster. 273
(f) "Federally declared disaster area" means those 274
counties designated in the federal disaster declaration or added 275
to the federal disaster declaration by amendment of the Federal 276
Emergency Management Agency. 277
(g) "Loan" means a disbursement of public funds to a 278
principal borrower under Sections 3 through 8 of this act that is 279
required to be repaid to the emergency fund by the borrower in 280
accordance with the terms of an executed loan agreement. 281
(h) "Local government" means a county, municipality or 282
political subdivision thereof, within the bounds of the federally 283
declared disaster area. 284
(i) "Eligible borrower" means a county, municipality or 285
political subdivision thereof, within the bounds of the federally 286
declared disaster area that has applied for assistance through the 287
Federal Emergency Management Agency. 288
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 12 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
(j) "Program" means the 2026 Local Governments Disaster 289
Recovery Emergency Loan Program established in Section 5 of this 290
act. 291
SECTION 5. (1) (a) There is established the 2026 Local 292
Governments Disaster Recovery Emergency Loan Program to be 293
administered by the Mississippi Emergency Management Agency for 294
the purpose of assisting local governments in recovering from the 295
disaster by issuing loans to local governments. 296
(b) The agency shall act as quickly as is practicable 297
and prudent in deciding on any loan request that it receives. 298
Loans from the emergency fund shall be made to eligible local 299
governments, as set forth in an executed loan agreement for 300
payment or reimbursement of the eligible expenditure(s) of the 301
local government as determined by the agency. The agency shall 302
establish a maximum amount for any loan from the emergency fund in 303
order to provide for broad and equitable participation in the 304
program. 305
(c) Eligible borrowers may apply for a loan pursuant to 306
the policies and processes established by the agency. 307
(d) No loan shall be issued under Sections 3 through 8 308
of this act after July 1, 2027. The term of any loan issued under 309
Sections 3 through 8 of this act shall not exceed a period of five 310
(5) years. 311
(2) (a) Loan proceeds may be used by the recipient local 312
government for eligible expenditure(s). 313
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 13 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
(b) Loans issued under this act shall be at a zero 314
percent (0%) interest rate until all Federal Emergency Management 315
Agency reimbursements have been processed and applied to the loan 316
balance. After such time, a three percent (3%) per annum fixed 317
interest rate shall be charged to cover the administrative costs 318
to service the loan. 319
(3) In administering Sections 3 through 8 of this act, the 320
agency shall have the following powers and duties: 321
(a) To supervise the use of all funds and loan proceeds 322
made available under Sections 3 through 8 of this act for local 323
governments to recover from the disaster; 324
(b) To promulgate rules and regulations, to make 325
variances and exceptions thereto, and to establish procedures in 326
accordance with this act for the implementation of the program; 327
(c) To ensure the funds made available under Sections 3 328
through 8 of this act to a local government provide for a 329
distribution of funds that ensures broad and equitable 330
participation among the local governments affected by the 331
disaster; 332
(d) To maintain, in accordance with generally accepted 333
government accounting standards, an accurate record of all monies 334
in the emergency fund made available to local governments under 335
Sections 3 through 8 of this act and the expenditures incurred by 336
each recipient; 337
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 14 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
(e) To establish policies, procedures and requirements 338
concerning viability and financial capability to repay loans that 339
may be used in approving loans available under Sections 3 through 340
8 of this act; 341
(f) To contract for those facilities and staff needed 342
to administer and provide routine management for the funds and 343
loan program; 344
(g) To require recipient local governments to consult 345
with the county's emergency management agency and/or an authorized 346
representative of the Mississippi Emergency Management Agency; 347
(h) To ensure the dedicated source of revenue as 348
collateral by a borrower is sufficient to repay the loan within 349
the loan period; 350
(i) To require a rigorous documentation process to 351
ensure that state funds are utilized in a manner that maximizes 352
eventual federal reimbursement; and 353
(j) To file with the Legislature reports, no later than 354
October 1 of each year and no later than February 1 of each year, 355
detailing how monies in the emergency fund were expended during 356
the preceding year by each participating local government by 357
period, the number of loans approved and disbursed, the amount of 358
expenditures incurred by each loan recipient, the current balance 359
of any outstanding loans, the specific projects of each loan 360
recipient with a description of the project and the recipient 361
entities, the amounts deposited into the emergency fund under 362
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 15 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
Section 7(4) of this act by loan, and the number of loans repaid 363
under Sections 3 through 8 of this act. 364
(4) For efficient and effective administration of the 365
program and emergency fund, the agency shall authorize an 366
administrator to carry out any or all of the powers and duties 367
enumerated above. 368
(5) In carrying out its responsibilities under Sections 3 369
through 8 of this act, for any contract under the purview of the 370
Public Procurement Review Board, the agency shall be exempt from 371
any requirement that the Public Procurement Review Board approve 372
any personal or professional services contracts or pre-approve any 373
solicitation of such contracts. 374
(6) In carrying out its responsibilities under Sections 3 375
through 8 of this act, for any policy, procedure, and/or 376
regulation produced by the agency, the agency shall be exempt from 377
all requirements under the Mississippi Administrative Procedures 378
Law. 379
SECTION 6. (1) There is created a special fund in the State 380
Treasury to be designated as the 2026 Local Governments Disaster 381
Recovery Emergency Loan Fund. The emergency fund shall consist of 382
any monies deposited to the credit of the emergency fund. The 383
emergency fund may receive deposits by the State Treasurer, bond 384
proceeds, grants, gifts, donations or funds from any source, 385
public or private. Except as otherwise provided in this section, 386
the emergency fund shall be credited with all repayments of 387
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 16 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
principal and interest derived from loans made from the emergency 388
fund. Unexpended amounts remaining in the emergency fund at the 389
end of a fiscal year shall not lapse into the State General Fund. 390
Any interest earned on amounts in the emergency fund shall be 391
deposited to the credit of the fund. 392
(2) The monies in the emergency fund shall only be expended 393
subject to appropriation by the Legislature. Monies in the 394
emergency fund shall only be disbursed for purposes authorized 395
under Sections 3 through 8 of this act. Except as otherwise 396
provided in this act, all monies deposited in the emergency fund, 397
including loan repayments and interest earned on those repayments, 398
shall be used only for providing loans to local governments as the 399
agency deems appropriate. Subject to the availability of funds, 400
loan proceeds under this act shall be disbursed to local 401
governments in one or more installments or on a rolling basis, in 402
the discretion of the agency. 403
(3) In addition to any other purpose authorized under 404
Sections 3 through 8 of this act, subject to appropriation by the 405
Legislature, any amounts in the emergency fund may be used to 406
defray the reasonable costs of administering the emergency fund 407
and conducting activities under this act in an amount not to 408
exceed one-half of one percent (0.5%) of loan proceeds. 409
SECTION 7. (1) (a) Each recipient of a loan under the 410
program shall establish a dedicated source of revenue for 411
repayment of the loan in the event that the Federal Emergency 412
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 17 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
Management Agency disallows a reimbursement request for an 413
expenditure for which loan proceeds were used. Before any local 414
government shall receive any loan, it shall have executed with the 415
Department of Revenue and the agency a loan agreement evidencing 416
that loan and the dedicated source of revenue. 417
(b) All borrowers must agree to pay an amount not 418
greater than twelve and one-half percent (12.5%) of the matching 419
funds required by the Federal Emergency Management Agency for the 420
receipt of federal grant funds. 421
(c) The executed loan agreement shall obligate the 422
local government to repay the proceeds of the loan to the agency 423
receipt of any reimbursements from the Federal Emergency 424
Management Agency. 425
(d) In the event that the Federal Emergency Management 426
Agency disallows a reimbursement request for an expenditure for 427
which loan proceeds were used, the repayment schedule in each loan 428
agreement shall provide for (i) monthly payments, (ii) semiannual 429
payments, or (iii) other periodic payments. The loan agreement 430
shall provide for the repayment of all funds received from the 431
emergency fund to the agency within not more than two (2) years 432
from the date that the Federal Emergency Management Agency 433
disallowed a reimbursement request for an expenditure for which 434
loan proceeds were used. The Department of Revenue shall withhold 435
semiannually from counties and monthly from municipalities from 436
the amount to be remitted to the county or municipality, a sum 437
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 18 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
equal to the next repayment as provided in the loan agreement in 438
the event that the Federal Emergency Management Agency disallows a 439
reimbursement request for an expenditure for which loan proceeds 440
were used and the county or municipality has pledged such revenue. 441
(2) A county that receives a loan from the emergency fund 442
shall pledge for repayment of the loan any part of the use tax to 443
which it may be entitled under Chapter 67, Title 27, Mississippi 444
Code of 1972, or any other revenue source to which it is entitled 445
by law, as may be required to meet the repayment schedule 446
contained in the loan agreement in the event that the Federal 447
Emergency Management Agency disallows a reimbursement request for 448
an expenditure for which loan proceeds were used. 449
(3) A municipality that receives a loan from the emergency 450
fund shall pledge for repayment of the loan any part of the sales 451
tax revenue distribution to which it may be entitled under Section 452
27-65-75, or any other revenue source to which it is entitled by 453
law, as may be required to meet the repayment schedule contained 454
in the loan agreement in the event that the Federal Emergency 455
Management Agency disallows a reimbursement request for an 456
expenditure for which loan proceeds were used. 457
(4) Upon receipt of any funds in repayment from the borrower 458
and the Department of Revenue to the credit of a borrower for loan 459
obligations under Sections 3 through 8 of this act, the agency 460
shall immediately deposit such funds into the emergency fund. 461
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 19 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
(5) The State Auditor, upon request of the agency, shall 462
audit the receipts and expenditures of a local government whose 463
loan repayments appear to be in arrears, and if the Auditor finds 464
the local government is in arrears in those repayments, the 465
Auditor shall immediately notify the executive director of the 466
agency and the State Fiscal Officer, who may take any action as 467
may be necessary to enforce the terms of the loan agreement, 468
including liquidation and enforcement of the dedicated source of 469
revenue given as security for repayment of the loan and the 470
withholding of all future payments to the county of homestead 471
exemption annual tax loss reimbursements under Section 27-33-77 472
and all sums allocated to the county or the municipality under 473
Section 27-65-75 until such time as the county or the municipality 474
is again current in its loan repayments as certified by the 475
agency. 476
SECTION 8. Section 27-104-7, Mississippi Code of 1972, is 477
amended as follows: 478
27-104-7. (1) (a) There is created the Public Procurement 479
Review Board, which shall be reconstituted on January 1, 2018, and 480
shall be composed of the following members: 481
(i) Three (3) individuals appointed by the 482
Governor with the advice and consent of the Senate; 483
(ii) Two (2) individuals appointed by the 484
Lieutenant Governor with the advice and consent of the Senate; and 485
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 20 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
(iii) The Executive Director of the Department of 486
Finance and Administration, serving as an ex officio and nonvoting 487
member. 488
(b) The initial terms of each appointee shall be as 489
follows: 490
(i) One (1) member appointed by the Governor to 491
serve for a term ending on June 30, 2019; 492
(ii) One (1) member appointed by the Governor to 493
serve for a term ending on June 30, 2020; 494
(iii) One (1) member appointed by the Governor to 495
serve for a term ending on June 30, 2021; 496
(iv) One (1) member appointed by the Lieutenant 497
Governor to serve for a term ending on June 30, 2019; and 498
(v) One (1) member appointed by the Lieutenant 499
Governor to serve for a term ending on June 30, 2020. 500
After the expiration of the initial terms, all appointed 501
members' terms shall be for a period of four (4) years from the 502
expiration date of the previous term, and until such time as the 503
member's successor is duly appointed and qualified. 504
(c) When appointing members to the Public Procurement 505
Review Board, the Governor and Lieutenant Governor shall take into 506
consideration persons who possess at least five (5) years of 507
management experience in general business, health care or finance 508
for an organization, corporation or other public or private 509
entity. Any person, or any employee or owner of a company, who 510
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 21 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
receives any grants, procurements or contracts that are subject to 511
approval under this section shall not be appointed to the Public 512
Procurement Review Board. Any person, or any employee or owner of 513
a company, who is a principal of the source providing a personal 514
or professional service shall not be appointed to the Public 515
Procurement Review Board if the principal owns or controls a 516
greater than five percent (5%) interest or has an ownership value 517
of One Million Dollars ($1,000,000.00) in the source's business, 518
whichever is smaller. No member shall be an officer or employee 519
of the State of Mississippi while serving as a voting member on 520
the Public Procurement Review Board. 521
(d) Members of the Public Procurement Review Board 522
shall be entitled to per diem as authorized by Section 25-3-69 and 523
travel reimbursement as authorized by Section 25-3-41. 524
(e) The members of the Public Procurement Review Board 525
shall elect a chair from among the membership, and he or she shall 526
preside over the meetings of the board. The board shall annually 527
elect a vice chair, who shall serve in the absence of the chair. 528
No business shall be transacted, including adoption of rules of 529
procedure, without the presence of a quorum of the board. Three 530
(3) members shall be a quorum. No action shall be valid unless 531
approved by a majority of the members present and voting, entered 532
upon the minutes of the board and signed by the chair. Necessary 533
clerical and administrative support for the board shall be 534
provided by the Department of Finance and Administration. Minutes 535
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 22 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
shall be kept of the proceedings of each meeting, copies of which 536
shall be filed on a monthly basis with the chairs of the 537
Accountability, Efficiency and Transparency Committees of the 538
Senate and House of Representatives and the chairs of the 539
Appropriations Committees of the Senate and House of 540
Representatives. 541
(2) The Public Procurement Review Board shall have the 542
following powers and responsibilities: 543
(a) Approve all purchasing regulations governing the 544
purchase or lease by any agency, as defined in Section 31-7-1, of 545
commodities and equipment, except computer equipment acquired 546
pursuant to Sections 25-53-1 through 25-53-29; 547
(b) Adopt regulations governing the approval of 548
contracts let for the construction and maintenance of state 549
buildings and other state facilities as well as related contracts 550
for architectural and engineering services. 551
The provisions of this paragraph (b) shall not apply to such 552
contracts involving buildings and other facilities of state 553
institutions of higher learning which are self-administered as 554
provided under this paragraph (b) or Section 37-101-15(m); 555
(c) Adopt regulations governing any lease or rental 556
agreement by any state agency or department, including any state 557
agency financed entirely by federal funds, for space outside the 558
buildings under the jurisdiction of the Department of Finance and 559
Administration. These regulations shall require each agency 560
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 23 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
requesting to lease such space to provide the following 561
information that shall be published by the Department of Finance 562
and Administration on its website: the agency to lease the space; 563
the terms of the lease; the approximate square feet to be leased; 564
the use for the space; a description of a suitable space; the 565
general location desired for the leased space; the contact 566
information for a person from the agency; the deadline date for 567
the agency to have received a lease proposal; any other specific 568
terms or conditions of the agency; and any other information 569
deemed appropriate by the Division of Real Property Management of 570
the Department of Finance and Administration or the Public 571
Procurement Review Board. The information shall be provided 572
sufficiently in advance of the time the space is needed to allow 573
the Division of Real Property Management of the Department of 574
Finance and Administration to review and preapprove the lease 575
before the time for advertisement begins; 576
(d) Adopt, in its discretion, regulations to set aside 577
at least five percent (5%) of anticipated annual expenditures for 578
the purchase of commodities from minority businesses; however, all 579
such set-aside purchases shall comply with all purchasing 580
regulations promulgated by the department and shall be subject to 581
all bid requirements. Set-aside purchases for which competitive 582
bids are required shall be made from the lowest and best minority 583
business bidder; however, if no minority bid is available or if 584
the minority bid is more than two percent (2%) higher than the 585
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 24 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
lowest bid, then bids shall be accepted and awarded to the lowest 586
and best bidder. However, the provisions in this paragraph shall 587
not be construed to prohibit the rejection of a bid when only one 588
(1) bid is received. Such rejection shall be placed in the 589
minutes. For the purposes of this paragraph, the term "minority 590
business" means a business which is owned by a person who is a 591
citizen or lawful permanent resident of the United States and who 592
is: 593
(i) Black: having origins in any of the black 594
racial groups of Africa; 595
(ii) Hispanic: of Mexican, Puerto Rican, Cuban, 596
Central or South American, or other Spanish or Portuguese culture 597
or origin regardless of race; 598
(iii) Asian-American: having origins in any of 599
the original people of the Far East, Southeast Asia, the Indian 600
subcontinent, or the Pacific Islands; 601
(iv) American Indian or Alaskan Native: having 602
origins in any of the original people of North America; or 603
(v) Female; 604
(e) In consultation with and approval by the Chairs of 605
the Senate and House Public Property Committees, approve leases, 606
for a term not to exceed eighteen (18) months, entered into by 607
state agencies for the purpose of providing parking arrangements 608
for state employees who work in the Woolfolk Building, the Carroll 609
Gartin Justice Building or the Walter Sillers Office Building; 610
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 25 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
(f) (i) Except as otherwise provided in subparagraph 611
(ii) of this paragraph, promulgate rules and regulations governing 612
the solicitation and selection of contractual services personnel, 613
including personal and professional services contracts for any 614
form of consulting, policy analysis, public relations, marketing, 615
public affairs, legislative advocacy services or any other 616
contract that the board deems appropriate for oversight, with the 617
exception of: 618
1. Any personal service contracts entered 619
into by any agency that employs only nonstate service employees as 620
defined in Section 25-9-107(c); 621
2. Any personal service contracts entered 622
into for computer or information technology-related services 623
governed by the Mississippi Department of Information Technology 624
Services; 625
3. Any personal service contracts entered 626
into by the individual state institutions of higher learning; 627
4. Any personal service contracts entered 628
into by the Mississippi Department of Transportation; 629
5. Any personal service contracts entered 630
into by the Department of Human Services through June 30, 2019, 631
which the Executive Director of the Department of Human Services 632
determines would be useful in establishing and operating the 633
Department of Child Protection Services; 634
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 26 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
6. Any personal service contracts entered 635
into by the Department of Child Protection Services through June 636
30, 2019; 637
7. Any contracts for entertainers and/or 638
performers at the Mississippi State Fairgrounds entered into by 639
the Mississippi Fair Commission; 640
8. Any contracts entered into by the 641
Department of Finance and Administration when procuring aircraft 642
maintenance, parts, equipment and/or services; 643
9. Any contract entered into by the 644
Department of Public Safety for service on specialized equipment 645
and/or software required for the operation of such specialized 646
equipment for use by the Office of Forensics Laboratories; 647
10. Any personal or professional service 648
contract entered into by the Mississippi Department of Health or 649
the Department of Revenue solely in connection with their 650
respective responsibilities under the Mississippi Medical Cannabis 651
Act from February 2, 2022, through June 30, 2026; 652
11. Any contract for attorney, accountant, 653
actuary auditor, architect, engineer, anatomical pathologist, or 654
utility rate expert services; 655
12. Any personal service contracts approved 656
by the Executive Director of the Department of Finance and 657
Administration and entered into by the Coordinator of Mental 658
Health Accessibility through June 30, 2022; 659
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 27 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
13. Any personal or professional services 660
contract entered into by the State Department of Health in 661
carrying out its responsibilities under the ARPA Rural Water 662
Associations Infrastructure Grant Program through June 30, 2026; 663
14. And any personal or professional services 664
contract entered into by the Mississippi Department of 665
Environmental Quality in carrying out its responsibilities under 666
the Mississippi Municipality and County Water Infrastructure Grant 667
Program Act of 2022, through June 30, 2026; 668
15. Any personal or professional services 669
contract entered into by an agency for the design, operation or 670
maintenance of museum exhibits. An agency making a purchase under 671
this exemption shall publicly advertise a Request for 672
Qualifications but shall be otherwise exempt. Any contracts 673
arising from the use of this exemption must be approved by the 674
Public Procurement Review Board prior to execution by the agency; 675
16. Any personal or professional services 676
contract entered into by the Mississippi Department of 677
Environmental Quality in carrying out its responsibilities under 678
Section 49-2-13(l). This item 16 shall stand repealed on July 1, 679
2028; * * * 680
17. Any contract entered into by the State 681
Department of Health for service on specialized equipment and/or 682
software required for the operation of such specialized equipment 683
for the use by the Public Health Laboratory * * *; and 684
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 28 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
18. Any contract entered into by the 685
Mississippi Emergency Management Agency for personal or 686
professional services under Section 5(5) of this act, as well as 687
the fair value or financial value of any contract entered into 688
under Section 5(5) of this act. 689
Any such rules and regulations shall provide for maintaining 690
continuous internal audit covering the activities of such agency 691
affecting its revenue and expenditures as required under Section 692
7-7-3(6)(d). Any rules and regulation changes related to personal 693
and professional services contracts that the Public Procurement 694
Review Board may propose shall be submitted to the Chairs of the 695
Accountability, Efficiency and Transparency Committees of the 696
Senate and House of Representatives and the Chairs of the 697
Appropriation Committees of the Senate and House of 698
Representatives at least fifteen (15) days before the board votes 699
on the proposed changes, and those rules and regulation changes, 700
if adopted, shall be promulgated in accordance with the 701
Mississippi Administrative Procedures Act. 702
(ii) From and after July 1, 2024, the Public 703
Procurement Review Board shall promulgate rules and regulations 704
that require the Department of Finance and Administration to 705
conduct personal and professional services solicitations as 706
provided in subparagraph (i) of this paragraph for those services 707
in excess of Seventy-five Thousand Dollars ($75,000.00) for the 708
Department of Marine Resources, the Department of Wildlife, 709
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 29 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
Fisheries and Parks, the Mississippi Emergency Management Agency 710
and the Mississippi Development Authority, with assistance to be 711
provided from these entities. Any powers that have been conferred 712
upon agencies in order to comply with the provisions of this 713
section for personal and professional services solicitations shall 714
be conferred upon the Department of Finance and Administration to 715
conduct personal and professional services solicitations for the 716
Department of Marine Resources, the Department of Wildlife, 717
Fisheries and Parks, the Mississippi Emergency Management Agency 718
and the Mississippi Development Authority for those services in 719
excess of Seventy-five Thousand Dollars ($75,000.00). The 720
Department of Finance and Administration shall make any 721
submissions that are required to be made by other agencies to the 722
Public Procurement Review Board for the Department of Marine 723
Resources, the Department of Wildlife, Fisheries and Parks, the 724
Mississippi Emergency Management Agency and the Mississippi 725
Development Authority. 726
The provisions of this subparagraph (ii) shall stand repealed 727
on June 30, 2027; 728
(g) Approve all personal and professional services 729
contracts involving the expenditures of funds in excess of 730
Seventy-five Thousand Dollars ($75,000.00), except as provided in 731
paragraph (f) of this subsection (2) and in subsection (8); 732
(h) Develop mandatory standards with respect to 733
contractual services personnel that require invitations for public 734
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 30 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
bid, requests for proposals, record keeping and financial 735
responsibility of contractors. The Public Procurement Review 736
Board shall, unless exempted under this paragraph (h) or under 737
paragraph (i) or (o) of this subsection (2), require the agency 738
involved to submit the procurement to a competitive procurement 739
process, and may reserve the right to reject any or all resulting 740
procurements; 741
(i) Prescribe certain circumstances by which agency 742
heads may enter into contracts for personal and professional 743
services without receiving prior approval from the Public 744
Procurement Review Board. The Public Procurement Review Board may 745
establish a preapproved list of providers of various personal and 746
professional services for set prices with which state agencies may 747
contract without bidding or prior approval from the board; 748
(i) Agency requirements may be fulfilled by 749
procuring services performed incident to the state's own programs. 750
The agency head shall determine in writing whether the price 751
represents a fair market value for the services. When the 752
procurements are made from other governmental entities, the 753
private sector need not be solicited; however, these contracts 754
shall still be submitted for approval to the Public Procurement 755
Review Board * * *; 756
(ii) Contracts between two (2) state agencies, 757
both under Public Procurement Review Board purview, shall not 758
require Public Procurement Review Board approval. However, the 759
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 31 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
contracts shall still be entered into the enterprise resource 760
planning system; 761
(j) Provide standards for the issuance of requests for 762
proposals, the evaluation of proposals received, consideration of 763
costs and quality of services proposed, contract negotiations, the 764
administrative monitoring of contract performance by the agency 765
and successful steps in terminating a contract; 766
(k) Present recommendations for governmental 767
privatization and to evaluate privatization proposals submitted by 768
any state agency; 769
(l) Authorize personal and professional service 770
contracts to be effective for more than one (1) year provided a 771
funding condition is included in any such multiple year contract, 772
except the State Board of Education, which shall have the 773
authority to enter into contractual agreements for student 774
assessment for a period up to ten (10) years. The State Board of 775
Education shall procure these services in accordance with the 776
Public Procurement Review Board procurement regulations; 777
(m) Request the State Auditor to conduct a performance 778
audit on any personal or professional service contract; 779
(n) Prepare an annual report to the Legislature 780
concerning the issuance of personal and professional services 781
contracts during the previous year, collecting any necessary 782
information from state agencies in making such report; 783
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 32 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
(o) Develop and implement the following standards and 784
procedures for the approval of any sole source contract for 785
personal and professional services regardless of the value of the 786
procurement: 787
(i) For the purposes of this paragraph (o), the 788
term "sole source" means only one (1) source is available that can 789
provide the required personal or professional service. 790
(ii) An agency that has been issued a binding, 791
valid court order mandating that a particular source or provider 792
must be used for the required service must include a copy of the 793
applicable court order in all future sole source contract reviews 794
for the particular personal or professional service referenced in 795
the court order. 796
(iii) Any agency alleging to have a sole source 797
for any personal or professional service, other than those 798
exempted under paragraph (f) of this subsection (2) and subsection 799
(8), shall publish on the procurement portal website established 800
by Sections 25-53-151 and 27-104-165, for at least fourteen (14) 801
days, the terms of the proposed contract for those services. In 802
addition, the publication shall include, but is not limited to, 803
the following information: 804
1. The personal or professional service 805
offered in the contract; 806
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 33 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
2. An explanation of why the personal or 807
professional service is the only one that can meet the needs of 808
the agency; 809
3. An explanation of why the source is the 810
only person or entity that can provide the required personal or 811
professional service; 812
4. An explanation of why the amount to be 813
expended for the personal or professional service is reasonable; 814
and 815
5. The efforts that the agency went through 816
to obtain the best possible price for the personal or professional 817
service. 818
(iv) If any person or entity objects and proposes 819
that the personal or professional service published under 820
subparagraph (iii) of this paragraph (o) is not a sole source 821
service and can be provided by another person or entity, then the 822
objecting person or entity shall notify the Public Procurement 823
Review Board and the agency that published the proposed sole 824
source contract with a detailed explanation of why the personal or 825
professional service is not a sole source service. 826
(v) 1. If the agency determines after review that 827
the personal or professional service in the proposed sole source 828
contract can be provided by another person or entity, then the 829
agency must withdraw the sole source contract publication from the 830
procurement portal website and submit the procurement of the 831
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 34 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
personal or professional service to an advertised competitive bid 832
or selection process. 833
2. If the agency determines after review that 834
there is only one (1) source for the required personal or 835
professional service, then the agency may appeal to the Public 836
Procurement Review Board. The agency has the burden of proving 837
that the personal or professional service is only provided by one 838
(1) source. 839
3. If the Public Procurement Review Board has 840
any reasonable doubt as to whether the personal or professional 841
service can only be provided by one (1) source, then the agency 842
must submit the procurement of the personal or professional 843
service to an advertised competitive bid or selection process. No 844
action taken by the Public Procurement Review Board in this appeal 845
process shall be valid unless approved by a majority of the 846
members of the Public Procurement Review Board present and voting. 847
(vi) The Public Procurement Review Board shall 848
prepare and submit a quarterly report to the House of 849
Representatives and Senate Accountability, Efficiency and 850
Transparency Committees that details the sole source contracts 851
presented to the Public Procurement Review Board and the reasons 852
that the Public Procurement Review Board approved or rejected each 853
contract. These quarterly reports shall also include the 854
documentation and memoranda required in subsection (4) of this 855
section. An agency that submitted a sole source contract shall be 856
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 35 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
prepared to explain the sole source contract to each committee by 857
December 15 of each year upon request by the committee; 858
(p) Assess any fines and administrative penalties 859
provided for in Sections 31-7-401 through 31-7-423. 860
(3) All submissions shall be made sufficiently in advance of 861
each monthly meeting of the Public Procurement Review Board as 862
prescribed by the Public Procurement Review Board. If the Public 863
Procurement Review Board rejects any contract submitted for review 864
or approval, the Public Procurement Review Board shall clearly set 865
out the reasons for its action, including, but not limited to, the 866
policy that the agency has violated in its submitted contract and 867
any corrective actions that the agency may take to amend the 868
contract to comply with the rules and regulations of the Public 869
Procurement Review Board. 870
(4) All sole source contracts for personal and professional 871
services awarded by state agencies, other than those exempted 872
under Section 27-104-7(2)(f) and (8), whether approved by an 873
agency head or the Public Procurement Review Board, shall contain 874
in the procurement file a written determination for the approval, 875
using a request form furnished by the Public Procurement Review 876
Board. The written determination shall document the basis for the 877
determination, including any market analysis conducted in order to 878
ensure that the service required was practicably available from 879
only one (1) source. A memorandum shall accompany the request 880
form and address the following four (4) points: 881
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 36 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
(a) Explanation of why this service is the only service 882
that can meet the needs of the purchasing agency; 883
(b) Explanation of why this vendor is the only 884
practicably available source from which to obtain this service; 885
(c) Explanation of why the price is considered 886
reasonable; and 887
(d) Description of the efforts that were made to 888
conduct a noncompetitive negotiation to get the best possible 889
price for the taxpayers. 890
(5) In conjunction with the State Personnel Board, the 891
Public Procurement Review Board shall develop and promulgate rules 892
and regulations to define the allowable legal relationship between 893
contract employees and the contracting departments, agencies and 894
institutions of state government under the jurisdiction of the 895
State Personnel Board, in compliance with the applicable rules and 896
regulations of the federal Internal Revenue Service (IRS) for 897
federal employment tax purposes. Under these regulations, the 898
usual common law rules are applicable to determine and require 899
that such worker is an independent contractor and not an employee, 900
requiring evidence of lawful behavioral control, lawful financial 901
control and lawful relationship of the parties. Any state 902
department, agency or institution shall only be authorized to 903
contract for personnel services in compliance with those 904
regulations. 905
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 37 (ELS\KW)
ST: Disaster assistance; increase amount of
funds MEMA may request to provide and create
loan program for local governments to receive.
(6) No member of the Public Procurement Review Board shall 906
use his or her official authority or influence to coerce, by 907
threat of discharge from employment, or otherwise, the purchase of 908
commodities, the contracting for personal or professional 909
services, or the contracting for public construction under this 910
chapter. 911
(7) Notwithstanding any other laws or rules to the contrary, 912
the provisions of subsection (2) of this section shall not be 913
applicable to the Mississippi State Port Authority at Gulfport. 914
(8) Nothing in this section shall impair or limit the 915
authority of the Board of Trustees of the Public Employees' 916
Retirement System to enter into any personal or professional 917
services contracts directly related to their constitutional 918
obligation to manage the trust funds, including, but not limited 919
to, actuarial, custodial banks, cash management, investment 920
consultant and investment management contracts. Nothing in this 921
section shall impair or limit the authority of the State Treasurer 922
to enter into any personal or professional services contracts 923
involving the management of trust funds, including, but not 924
limited to, actuarial, custodial banks, cash management, 925
investment consultant and investment management contracts. 926
(9) Through December 31, 2026, the provisions of this 927
section related to rental agreements or leasing of real property 928
for the purpose of conducting agency business shall not apply to 929
the Office of Workforce Development created in Section 37-153-7. 930
H. B. No. 1646 *HR26/R2125SG* ~ OFFICIAL ~
26/HR26/R2125SG
PAGE 38 (ELS\KW)

SECTION 9. Section 1 and 2 of this act shall take effect and 931
be in force from and after July 1, 2026; the remaining sections of 932
this act shall take effect and be in force from and after the 933
passage of this act. 934