Contracts for medical services for state inmates; require DFA to be responsible for all solicitations for proposals concerning.

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To: Corrections;
Accountability, Efficiency,
Transparency
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Currie

HOUSE BILL NO. 1692

AN ACT TO AMEND SECTION 27-104-7, MISSISSIPPI CODE OF 1972, 1
TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO BE 2
RESPONSIBLE FOR MAKING ALL SOLICITATIONS FOR PROPOSALS TO PROVIDE 3
HEALTH CARE SERVICES FOR INMATES OF THE DEPARTMENT OF CORRECTIONS; 4
AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 27-104-7, Mississippi Code of 1972, is 7
amended as follows: 8
27-104-7. (1) (a) There is created the Public Procurement 9
Review Board, which shall be reconstituted on January 1, 2018, and 10
shall be composed of the following members: 11
(i) Three (3) individuals appointed by the 12
Governor with the advice and consent of the Senate; 13
(ii) Two (2) individuals appointed by the 14
Lieutenant Governor with the advice and consent of the Senate; and 15
(iii) The Executive Director of the Department of 16
Finance and Administration, serving as an ex officio and nonvoting 17
member. 18
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(b) The initial terms of each appointee shall be as 19
follows: 20
(i) One (1) member appointed by the Governor to 21
serve for a term ending on June 30, 2019; 22
(ii) One (1) member appointed by the Governor to 23
serve for a term ending on June 30, 2020; 24
(iii) One (1) member appointed by the Governor to 25
serve for a term ending on June 30, 2021; 26
(iv) One (1) member appointed by the Lieutenant 27
Governor to serve for a term ending on June 30, 2019; and 28
(v) One (1) member appointed by the Lieutenant 29
Governor to serve for a term ending on June 30, 2020. 30
After the expiration of the initial terms, all appointed 31
members' terms shall be for a period of four (4) years from the 32
expiration date of the previous term, and until such time as the 33
member's successor is duly appointed and qualified. 34
(c) When appointing members to the Public Procurement 35
Review Board, the Governor and Lieutenant Governor shall take into 36
consideration persons who possess at least five (5) years of 37
management experience in general business, health care or finance 38
for an organization, corporation or other public or private 39
entity. Any person, or any employee or owner of a company, who 40
receives any grants, procurements or contracts that are subject to 41
approval under this section shall not be appointed to the Public 42
Procurement Review Board. Any person, or any employee or owner of 43
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a company, who is a principal of the source providing a personal 44
or professional service shall not be appointed to the Public 45
Procurement Review Board if the principal owns or controls a 46
greater than five percent (5%) interest or has an ownership value 47
of One Million Dollars ($1,000,000.00) in the source's business, 48
whichever is smaller. No member shall be an officer or employee 49
of the State of Mississippi while serving as a voting member on 50
the Public Procurement Review Board. 51
(d) Members of the Public Procurement Review Board 52
shall be entitled to per diem as authorized by Section 25-3-69 and 53
travel reimbursement as authorized by Section 25-3-41. 54
(e) The members of the Public Procurement Review Board 55
shall elect a chair from among the membership, and he or she shall 56
preside over the meetings of the board. The board shall annually 57
elect a vice chair, who shall serve in the absence of the chair. 58
No business shall be transacted, including adoption of rules of 59
procedure, without the presence of a quorum of the board. Three 60
(3) members shall be a quorum. No action shall be valid unless 61
approved by a majority of the members present and voting, entered 62
upon the minutes of the board and signed by the chair. Necessary 63
clerical and administrative support for the board shall be 64
provided by the Department of Finance and Administration. Minutes 65
shall be kept of the proceedings of each meeting, copies of which 66
shall be filed on a monthly basis with the chairs of the 67
Accountability, Efficiency and Transparency Committees of the 68
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Senate and House of Representatives and the chairs of the 69
Appropriations Committees of the Senate and House of 70
Representatives. 71
(2) The Public Procurement Review Board shall have the 72
following powers and responsibilities: 73
(a) Approve all purchasing regulations governing the 74
purchase or lease by any agency, as defined in Section 31-7-1, of 75
commodities and equipment, except computer equipment acquired 76
pursuant to Sections 25-53-1 through 25-53-29; 77
(b) Adopt regulations governing the approval of 78
contracts let for the construction and maintenance of state 79
buildings and other state facilities as well as related contracts 80
for architectural and engineering services. 81
The provisions of this paragraph (b) shall not apply to such 82
contracts involving buildings and other facilities of state 83
institutions of higher learning which are self-administered as 84
provided under this paragraph (b) or Section 37-101-15(m); 85
(c) Adopt regulations governing any lease or rental 86
agreement by any state agency or department, including any state 87
agency financed entirely by federal funds, for space outside the 88
buildings under the jurisdiction of the Department of Finance and 89
Administration. These regulations shall require each agency 90
requesting to lease such space to provide the following 91
information that shall be published by the Department of Finance 92
and Administration on its website: the agency to lease the space; 93
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the terms of the lease; the approximate square feet to be leased; 94
the use for the space; a description of a suitable space; the 95
general location desired for the leased space; the contact 96
information for a person from the agency; the deadline date for 97
the agency to have received a lease proposal; any other specific 98
terms or conditions of the agency; and any other information 99
deemed appropriate by the Division of Real Property Management of 100
the Department of Finance and Administration or the Public 101
Procurement Review Board. The information shall be provided 102
sufficiently in advance of the time the space is needed to allow 103
the Division of Real Property Management of the Department of 104
Finance and Administration to review and preapprove the lease 105
before the time for advertisement begins; 106
(d) Adopt, in its discretion, regulations to set aside 107
at least five percent (5%) of anticipated annual expenditures for 108
the purchase of commodities from minority businesses; however, all 109
such set-aside purchases shall comply with all purchasing 110
regulations promulgated by the department and shall be subject to 111
all bid requirements. Set-aside purchases for which competitive 112
bids are required shall be made from the lowest and best minority 113
business bidder; however, if no minority bid is available or if 114
the minority bid is more than two percent (2%) higher than the 115
lowest bid, then bids shall be accepted and awarded to the lowest 116
and best bidder. However, the provisions in this paragraph shall 117
not be construed to prohibit the rejection of a bid when only one 118
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(1) bid is received. Such rejection shall be placed in the 119
minutes. For the purposes of this paragraph, the term "minority 120
business" means a business which is owned by a person who is a 121
citizen or lawful permanent resident of the United States and who 122
is: 123
(i) Black: having origins in any of the black 124
racial groups of Africa; 125
(ii) Hispanic: of Mexican, Puerto Rican, Cuban, 126
Central or South American, or other Spanish or Portuguese culture 127
or origin regardless of race; 128
(iii) Asian-American: having origins in any of 129
the original people of the Far East, Southeast Asia, the Indian 130
subcontinent, or the Pacific Islands; 131
(iv) American Indian or Alaskan Native: having 132
origins in any of the original people of North America; or 133
(v) Female; 134
(e) In consultation with and approval by the Chairs of 135
the Senate and House Public Property Committees, approve leases, 136
for a term not to exceed eighteen (18) months, entered into by 137
state agencies for the purpose of providing parking arrangements 138
for state employees who work in the Woolfolk Building, the Carroll 139
Gartin Justice Building or the Walter Sillers Office Building; 140
(f) (i) Except as otherwise provided in subparagraph 141
(ii) of this paragraph, promulgate rules and regulations governing 142
the solicitation and selection of contractual services personnel, 143
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including personal and professional services contracts for any 144
form of consulting, policy analysis, public relations, marketing, 145
public affairs, legislative advocacy services or any other 146
contract that the board deems appropriate for oversight, with the 147
exception of: 148
1. Any personal service contracts entered 149
into by any agency that employs only nonstate service employees as 150
defined in Section 25-9-107(c); 151
2. Any personal service contracts entered 152
into for computer or information technology-related services 153
governed by the Mississippi Department of Information Technology 154
Services; 155
3. Any personal service contracts entered 156
into by the individual state institutions of higher learning; 157
4. Any personal service contracts entered 158
into by the Mississippi Department of Transportation; 159
5. Any personal service contracts entered 160
into by the Department of Human Services through June 30, 2019, 161
which the Executive Director of the Department of Human Services 162
determines would be useful in establishing and operating the 163
Department of Child Protection Services; 164
6. Any personal service contracts entered 165
into by the Department of Child Protection Services through June 166
30, 2019; 167
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7. Any contracts for entertainers and/or 168
performers at the Mississippi State Fairgrounds entered into by 169
the Mississippi Fair Commission; 170
8. Any contracts entered into by the 171
Department of Finance and Administration when procuring aircraft 172
maintenance, parts, equipment and/or services; 173
9. Any contract entered into by the 174
Department of Public Safety for service on specialized equipment 175
and/or software required for the operation of such specialized 176
equipment for use by the Office of Forensics Laboratories; 177
10. Any personal or professional service 178
contract entered into by the Mississippi Department of Health or 179
the Department of Revenue solely in connection with their 180
respective responsibilities under the Mississippi Medical Cannabis 181
Act from February 2, 2022, through June 30, 2026; 182
11. Any contract for attorney, accountant, 183
actuary auditor, architect, engineer, anatomical pathologist, or 184
utility rate expert services; 185
12. Any personal service contracts approved 186
by the Executive Director of the Department of Finance and 187
Administration and entered into by the Coordinator of Mental 188
Health Accessibility through June 30, 2022; 189
13. Any personal or professional services 190
contract entered into by the State Department of Health in 191
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carrying out its responsibilities under the ARPA Rural Water 192
Associations Infrastructure Grant Program through June 30, 2026; 193
14. And any personal or professional services 194
contract entered into by the Mississippi Department of 195
Environmental Quality in carrying out its responsibilities under 196
the Mississippi Municipality and County Water Infrastructure Grant 197
Program Act of 2022, through June 30, 2026; 198
15. Any personal or professional services 199
contract entered into by an agency for the design, operation or 200
maintenance of museum exhibits. An agency making a purchase under 201
this exemption shall publicly advertise a Request for 202
Qualifications but shall be otherwise exempt. Any contracts 203
arising from the use of this exemption must be approved by the 204
Public Procurement Review Board prior to execution by the agency; 205
16. Any personal or professional services 206
contract entered into by the Mississippi Department of 207
Environmental Quality in carrying out its responsibilities under 208
Section 49-2-13(l). This item 16 shall stand repealed on July 1, 209
2028; and 210
17. Any contract entered into by the State 211
Department of Health for service on specialized equipment and/or 212
software required for the operation of such specialized equipment 213
for the use by the Public Health Laboratory. 214
Any such rules and regulations shall provide for maintaining 215
continuous internal audit covering the activities of such agency 216
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affecting its revenue and expenditures as required under Section 217
7-7-3(6)(d). Any rules and regulation changes related to personal 218
and professional services contracts that the Public Procurement 219
Review Board may propose shall be submitted to the Chairs of the 220
Accountability, Efficiency and Transparency Committees of the 221
Senate and House of Representatives and the Chairs of the 222
Appropriation Committees of the Senate and House of 223
Representatives at least fifteen (15) days before the board votes 224
on the proposed changes, and those rules and regulation changes, 225
if adopted, shall be promulgated in accordance with the 226
Mississippi Administrative Procedures Act. 227
(ii) From and after July 1, 2024, the Public 228
Procurement Review Board shall promulgate rules and regulations 229
that require the Department of Finance and Administration to 230
conduct personal and professional services solicitations as 231
provided in subparagraph (i) of this paragraph for those services 232
in excess of Seventy-five Thousand Dollars ($75,000.00) for the 233
Department of Marine Resources, the Department of Wildlife, 234
Fisheries and Parks, the Mississippi Emergency Management Agency 235
and the Mississippi Development Authority, with assistance to be 236
provided from these entities. Any powers that have been conferred 237
upon agencies in order to comply with the provisions of this 238
section for personal and professional services solicitations shall 239
be conferred upon the Department of Finance and Administration to 240
conduct personal and professional services solicitations for the 241
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Department of Marine Resources, the Department of Wildlife, 242
Fisheries and Parks, the Mississippi Emergency Management Agency 243
and the Mississippi Development Authority for those services in 244
excess of Seventy-five Thousand Dollars ($75,000.00). The 245
Department of Finance and Administration shall make any 246
submissions that are required to be made by other agencies to the 247
Public Procurement Review Board for the Department of Marine 248
Resources, the Department of Wildlife, Fisheries and Parks, the 249
Mississippi Emergency Management Agency and the Mississippi 250
Development Authority. 251
The provisions of this subparagraph (ii) shall stand repealed 252
on June 30, 2027; 253
(iii) 1. The Department of Finance and 254
Administration shall be solely responsible for solicitations of 255
contractors to perform and provide health care to the inmates of 256
the Mississippi Department of Corrections. The department shall, 257
after the effective date of this act, commence planning for a 258
procurement under which services shall commence on October 1, 259
2027. 260
2. In preparing solicitations, the Department 261
of Finance and Administration shall consider established firms 262
that have provided health care services in a correctional 263
environment and shall also give consideration to any hospital or 264
group of hospitals that can demonstrate that they are capable of 265
providing health care services to inmates. 266
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3. The Department of Finance and 267
Administration shall establish selection criteria for the 268
procurement but shall not give more than a thirty-three percent 269
(33%) weight to the bid price for health care services. 270
4. The Department of Finance and 271
Administration shall not seek to extend the current health care 272
contract unless it determines that such an extension is necessary 273
to protect the health of inmates. Notwithstanding any other law 274
to the contrary, the Public Procurement Review Board shall not 275
approve any request for extensions of the current contract 276
submitted or otherwise requested by the Department of Corrections. 277
5. The Department of Corrections shall render 278
assistance to the Department of Finance and Administration in 279
developing a solicitation for health care services but shall have 280
no authority to prepare or distribute a solicitation. 281
(g) Approve all personal and professional services 282
contracts involving the expenditures of funds in excess of 283
Seventy-five Thousand Dollars ($75,000.00), except as provided in 284
paragraph (f) of this subsection (2) and in subsection (8); 285
(h) Develop mandatory standards with respect to 286
contractual services personnel that require invitations for public 287
bid, requests for proposals, record keeping and financial 288
responsibility of contractors. The Public Procurement Review 289
Board shall, unless exempted under this paragraph (h) or under 290
paragraph (i) or (o) of this subsection (2), require the agency 291
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involved to submit the procurement to a competitive procurement 292
process, and may reserve the right to reject any or all resulting 293
procurements; 294
(i) Prescribe certain circumstances by which agency 295
heads may enter into contracts for personal and professional 296
services without receiving prior approval from the Public 297
Procurement Review Board. The Public Procurement Review Board may 298
establish a preapproved list of providers of various personal and 299
professional services for set prices with which state agencies may 300
contract without bidding or prior approval from the board; 301
(i) Agency requirements may be fulfilled by 302
procuring services performed incident to the state's own programs. 303
The agency head shall determine in writing whether the price 304
represents a fair market value for the services. When the 305
procurements are made from other governmental entities, the 306
private sector need not be solicited; however, these contracts 307
shall still be submitted for approval to the Public Procurement 308
Review Board. 309
(ii) Contracts between two (2) state agencies, 310
both under Public Procurement Review Board purview, shall not 311
require Public Procurement Review Board approval. However, the 312
contracts shall still be entered into the enterprise resource 313
planning system; 314
(j) Provide standards for the issuance of requests for 315
proposals, the evaluation of proposals received, consideration of 316
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costs and quality of services proposed, contract negotiations, the 317
administrative monitoring of contract performance by the agency 318
and successful steps in terminating a contract; 319
(k) Present recommendations for governmental 320
privatization and to evaluate privatization proposals submitted by 321
any state agency; 322
(l) Authorize personal and professional service 323
contracts to be effective for more than one (1) year provided a 324
funding condition is included in any such multiple year contract, 325
except the State Board of Education, which shall have the 326
authority to enter into contractual agreements for student 327
assessment for a period up to ten (10) years. The State Board of 328
Education shall procure these services in accordance with the 329
Public Procurement Review Board procurement regulations; 330
(m) Request the State Auditor to conduct a performance 331
audit on any personal or professional service contract; 332
(n) Prepare an annual report to the Legislature 333
concerning the issuance of personal and professional services 334
contracts during the previous year, collecting any necessary 335
information from state agencies in making such report; 336
(o) Develop and implement the following standards and 337
procedures for the approval of any sole source contract for 338
personal and professional services regardless of the value of the 339
procurement: 340
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(i) For the purposes of this paragraph (o), the 341
term "sole source" means only one (1) source is available that can 342
provide the required personal or professional service. 343
(ii) An agency that has been issued a binding, 344
valid court order mandating that a particular source or provider 345
must be used for the required service must include a copy of the 346
applicable court order in all future sole source contract reviews 347
for the particular personal or professional service referenced in 348
the court order. 349
(iii) Any agency alleging to have a sole source 350
for any personal or professional service, other than those 351
exempted under paragraph (f) of this subsection (2) and subsection 352
(8), shall publish on the procurement portal website established 353
by Sections 25-53-151 and 27-104-165, for at least fourteen (14) 354
days, the terms of the proposed contract for those services. In 355
addition, the publication shall include, but is not limited to, 356
the following information: 357
1. The personal or professional service 358
offered in the contract; 359
2. An explanation of why the personal or 360
professional service is the only one that can meet the needs of 361
the agency; 362
3. An explanation of why the source is the 363
only person or entity that can provide the required personal or 364
professional service; 365
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4. An explanation of why the amount to be 366
expended for the personal or professional service is reasonable; 367
and 368
5. The efforts that the agency went through 369
to obtain the best possible price for the personal or professional 370
service. 371
(iv) If any person or entity objects and proposes 372
that the personal or professional service published under 373
subparagraph (iii) of this paragraph (o) is not a sole source 374
service and can be provided by another person or entity, then the 375
objecting person or entity shall notify the Public Procurement 376
Review Board and the agency that published the proposed sole 377
source contract with a detailed explanation of why the personal or 378
professional service is not a sole source service. 379
(v) 1. If the agency determines after review that 380
the personal or professional service in the proposed sole source 381
contract can be provided by another person or entity, then the 382
agency must withdraw the sole source contract publication from the 383
procurement portal website and submit the procurement of the 384
personal or professional service to an advertised competitive bid 385
or selection process. 386
2. If the agency determines after review that 387
there is only one (1) source for the required personal or 388
professional service, then the agency may appeal to the Public 389
Procurement Review Board. The agency has the burden of proving 390
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that the personal or professional service is only provided by one 391
(1) source. 392
3. If the Public Procurement Review Board has 393
any reasonable doubt as to whether the personal or professional 394
service can only be provided by one (1) source, then the agency 395
must submit the procurement of the personal or professional 396
service to an advertised competitive bid or selection process. No 397
action taken by the Public Procurement Review Board in this appeal 398
process shall be valid unless approved by a majority of the 399
members of the Public Procurement Review Board present and voting. 400
(vi) The Public Procurement Review Board shall 401
prepare and submit a quarterly report to the House of 402
Representatives and Senate Accountability, Efficiency and 403
Transparency Committees that details the sole source contracts 404
presented to the Public Procurement Review Board and the reasons 405
that the Public Procurement Review Board approved or rejected each 406
contract. These quarterly reports shall also include the 407
documentation and memoranda required in subsection (4) of this 408
section. An agency that submitted a sole source contract shall be 409
prepared to explain the sole source contract to each committee by 410
December 15 of each year upon request by the committee; 411
(p) Assess any fines and administrative penalties 412
provided for in Sections 31-7-401 through 31-7-423. 413
(3) All submissions shall be made sufficiently in advance of 414
each monthly meeting of the Public Procurement Review Board as 415
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prescribed by the Public Procurement Review Board. If the Public 416
Procurement Review Board rejects any contract submitted for review 417
or approval, the Public Procurement Review Board shall clearly set 418
out the reasons for its action, including, but not limited to, the 419
policy that the agency has violated in its submitted contract and 420
any corrective actions that the agency may take to amend the 421
contract to comply with the rules and regulations of the Public 422
Procurement Review Board. 423
(4) All sole source contracts for personal and professional 424
services awarded by state agencies, other than those exempted 425
under Section 27-104-7(2)(f) and (8), whether approved by an 426
agency head or the Public Procurement Review Board, shall contain 427
in the procurement file a written determination for the approval, 428
using a request form furnished by the Public Procurement Review 429
Board. The written determination shall document the basis for the 430
determination, including any market analysis conducted in order to 431
ensure that the service required was practicably available from 432
only one (1) source. A memorandum shall accompany the request 433
form and address the following four (4) points: 434
(a) Explanation of why this service is the only service 435
that can meet the needs of the purchasing agency; 436
(b) Explanation of why this vendor is the only 437
practicably available source from which to obtain this service; 438
(c) Explanation of why the price is considered 439
reasonable; and 440
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(d) Description of the efforts that were made to 441
conduct a noncompetitive negotiation to get the best possible 442
price for the taxpayers. 443
(5) In conjunction with the State Personnel Board, the 444
Public Procurement Review Board shall develop and promulgate rules 445
and regulations to define the allowable legal relationship between 446
contract employees and the contracting departments, agencies and 447
institutions of state government under the jurisdiction of the 448
State Personnel Board, in compliance with the applicable rules and 449
regulations of the federal Internal Revenue Service (IRS) for 450
federal employment tax purposes. Under these regulations, the 451
usual common law rules are applicable to determine and require 452
that such worker is an independent contractor and not an employee, 453
requiring evidence of lawful behavioral control, lawful financial 454
control and lawful relationship of the parties. Any state 455
department, agency or institution shall only be authorized to 456
contract for personnel services in compliance with those 457
regulations. 458
(6) No member of the Public Procurement Review Board shall 459
use his or her official authority or influence to coerce, by 460
threat of discharge from employment, or otherwise, the purchase of 461
commodities, the contracting for personal or professional 462
services, or the contracting for public construction under this 463
chapter. 464
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ST: Contracts for medical services for state
inmates; require DFA to be responsible for all
solicitations for proposals concerning.
(7) Notwithstanding any other laws or rules to the contrary, 465
the provisions of subsection (2) of this section shall not be 466
applicable to the Mississippi State Port Authority at Gulfport. 467
(8) Nothing in this section shall impair or limit the 468
authority of the Board of Trustees of the Public Employees' 469
Retirement System to enter into any personal or professional 470
services contracts directly related to their constitutional 471
obligation to manage the trust funds, including, but not limited 472
to, actuarial, custodial banks, cash management, investment 473
consultant and investment management contracts. Nothing in this 474
section shall impair or limit the authority of the State Treasurer 475
to enter into any personal or professional services contracts 476
involving the management of trust funds, including, but not 477
limited to, actuarial, custodial banks, cash management, 478
investment consultant and investment management contracts. 479
(9) Through December 31, 2026, the provisions of this 480
section related to rental agreements or leasing of real property 481
for the purpose of conducting agency business shall not apply to 482
the Office of Workforce Development created in Section 37-153-7. 483
SECTION 2. This act shall take effect and be in force from 484
and after its passage. 485