Appropriation; Oil and Gas Board.

H. B. No. 1897 *HR43/A491SG* ~ OFFICIAL ~ A1/2
26/HR43/A491SG
PAGE 1

To: Appropriations B;
Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Bounds, Read, Anderson
(122nd), Clark, Eure, Hale, Jackson (11th),
Pigott, Rosebud

HOUSE BILL NO. 1897
(As Sent to Governor)

AN ACT APPROVING THE EXPENDITURE OF SPECIAL FUNDS FOR THE 1
PURPOSE OF DEFRAYING THE EXPENSES OF THE STATE OIL AND GAS BOARD 2
FOR THE FISCAL YEAR 2027. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 4
SECTION 1. The following sum, or so much thereof as may be 5
necessary, is appropriated out of any money in the State General 6
Fund not otherwise appropriated, for the support and maintenance 7
of the State Oil and Gas Board for the fiscal year beginning 8
July 1, 2026, and ending June 30, 2027............. $ 2,200,000.00. 9
SECTION 2. The following sum, or so much thereof as may be 10
necessary, is appropriated out of any money in the special fund in 11
the State Treasury to the credit of the State Oil and Gas Board 12
which is comprised of special source funds collected by or 13
otherwise available to the department, for the purpose of 14
defraying the expenses of the department for the fiscal year 15
beginning July 1, 2026, and ending June 30, 2027... $ 5,232,487.00. 16
SECTION 3. Of the funds appropriated under the provisions of 17
this act, not more than the following amount of funds, with the 18
H. B. No. 1897 *HR43/A491SG* ~ OFFICIAL ~
26/HR43/A491SG
PAGE 2

exception of the provisions in this section, shall be expended 19
only for "Personal Services," which includes "Vacancy Funding," 20
for the following authorized number of employment headcount: 21
FUNDING: 22
General Funds: $ 2,200,000.00 23
Special Funds: $ 227,686.00 24
Total Funds: $ 2,427,686.00 25
PERSONAL SERVICES: 26
Employee Salaries, Wages and 27
Fringe Benefits: $ 2,184,917.00 28
Progressions: $ 0.00 29
Vacancy Funding: $ 242,769.00 30
Total Personal Services: $ 2,427,686.00 31
AUTHORIZED HEADCOUNT: 32
Permanent: 35 33
Time-Limited: 0 34
As used in this section, the term "Personal Services" shall 35
mean funds provided under the major object of expenditure category 36
Personal Services for Salaries, Wages, and Fringe Benefits. Funds 37
in this category shall not be transferred to any other category. 38
It is the intention of the Legislature to ensure compliance 39
with the Variable Compensation Plan, as outlined in Section 40
25-9-147, Mississippi Code of 1972. Payment from these funds 41
shall be in accordance with the Variable Compensation Plan 42
promulgated by the Mississippi State Personnel Board. It is the 43
H. B. No. 1897 *HR43/A491SG* ~ OFFICIAL ~
26/HR43/A491SG
PAGE 3

Legislature's intention that no employee's salary falls below the 44
minimum salary established by the Mississippi State Personnel 45
Board. 46
The State Personnel Board shall determine and publish the 47
projected annual cost of "Personal Services" based on monthly and 48
year-to-date payroll expenditures in compliance with the 49
provisions of this act. 50
With the funds herein appropriated, it shall be the agency's 51
responsibility to ensure that no single personnel action or 52
combination of personnel actions, when annualized, exceeds the 53
Fiscal Year 2027 appropriation for "Personal Services" with the 54
exception of escalated funds. Further, it shall be the agency's 55
responsibility to ensure that funds required to be appropriated 56
for "Personal Services" for Fiscal Year 2028 do not exceed Fiscal 57
Year 2027 funds appropriated for that purpose unless programs or 58
positions are added to the agency's Fiscal Year 2027 budget by the 59
Mississippi Legislature. 60
If, at the time the agency takes any action to change 61
"Personal Services," the State Personnel Board determines that the 62
agency has taken or will take an action that would cause the 63
agency to exceed the funds appropriated in this act when 64
annualized for Fiscal Year 2027 or increase the need for "Personal 65
Services" for Fiscal Year 2028, when annualized, the State 66
Personnel Board shall process no salary actions until such time as 67
the requirements of the provisions of this section are met with 68
H. B. No. 1897 *HR43/A491SG* ~ OFFICIAL ~
26/HR43/A491SG
PAGE 4

the exception of new hires determined to be essential for the 69
agency. 70
When used in this section, "Vacancy Funding" shall mean funds 71
included in the Total Personal Services amount listed above and 72
designated for approved vacancies in Fiscal Year 2027. These 73
funds are to be utilized to increase the number of filled 74
headcounts that were authorized but unfilled as of the last day of 75
Fiscal Year 2026. If the agency fills additional headcounts after 76
March 1, 2026, until the end of Fiscal Year 2026, the amount of 77
available Vacancy Funding may be proportionally adjusted to 78
reflect the updated number of filled headcounts. The agency shall 79
be responsible for ensuring that "Vacancy Funding" is used to 80
increase headcounts and not for promotions, title changes, 81
in-range salary adjustments, or any other mechanism for increasing 82
salaries for current employees. 83
Any transfers or escalations shall be made in accordance with 84
the terms, conditions, and procedures established by law or 85
allowable under the terms set forth within this act. The State 86
Personnel Board shall not escalate positions or increase the 87
Personal Services total without written approval from the 88
Department of Finance and Administration. The Department of 89
Finance and Administration shall not provide written approval to 90
escalate any funds for salaries and/or headcounts without proof of 91
availability of new or additional funds above the appropriated 92
level. Unless specifically noted, all Fiscal Year 2026 escalated 93
H. B. No. 1897 *HR43/A491SG* ~ OFFICIAL ~
26/HR43/A491SG
PAGE 5

headcounts have been accounted for and shall be converted to 94
authorized time-limited headcounts. 95
No general funds authorized to be expended herein shall be 96
used to replace federal funds and/or other special funds used for 97
salaries authorized under the provisions of this act and which are 98
withdrawn and no longer available. 99
None of the funds herein appropriated shall be used in 100
violation of the Internal Revenue Service's Publication 15-A 101
relating to the reporting of income paid to contract employees, as 102
interpreted by the Office of the State Auditor. 103
If the agency's total authorized headcount decreases from 104
Fiscal Year 2026 to Fiscal Year 2027, it will be the agency's 105
discretion as to what headcounts are removed. 106
SECTION 4. It is the intention of the Legislature that the 107
State Oil and Gas Board shall maintain complete accounting and 108
personnel records related to the expenditure of all funds 109
appropriated under this act and that such records shall be in the 110
same format and level of detail as maintained for Fiscal Year 111
2026. It is further the intention of the Legislature that the 112
agency's budget request for Fiscal Year 2028 shall be submitted to 113
the Joint Legislative Budget Committee in a format and level of 114
detail comparable to the format and level of detail provided 115
during the Fiscal Year 2027 budget request process. 116
SECTION 5. The State Oil and Gas Board shall have the 117
authority to receive, budget and expend funds from any source not 118
H. B. No. 1897 *HR43/A491SG* ~ OFFICIAL ~
26/HR43/A491SG
PAGE 6

to exceed Two Hundred Thousand Dollars ($200,000.00) for the 119
Comprehensive Data Management Program in accordance with rules and 120
regulations of the Department of Finance and Administration in a 121
manner consistent with the escalation of federal funds. 122
SECTION 6. The following sum, or so much thereof as may be 123
necessary, is reappropriated out of any money in the Capital 124
Expense Fund not otherwise appropriated, for the Oil and Gas Board 125
for the purpose of reauthorizing the expenditure of Capital 126
Expense Funds as authorized in House Bill 9, 2025 First 127
Extraordinary Session, to provide for orphan well plugging for the 128
fiscal year beginning July 1, 2026, and ending June 30, 2027...... 129
................................................. $ 1,012,347.00. 130
Notwithstanding the amount reappropriated under the 131
provisions of this section, in no event shall the amount expended 132
exceed the unexpended balances as of June 30, 2026. In addition, 133
this reappropriation shall not change the purpose for which the 134
funds were originally authorized. 135
SECTION 7. It is the intention of the Legislature that 136
whenever two (2) or more bids are received by this agency for the 137
purchase of commodities or equipment, and whenever all things 138
stated in such received bids are equal with respect to price, 139
quality and service, the Mississippi Industries for the Blind 140
shall be given preference. A similar preference shall be given to 141
the Mississippi Industries for the Blind whenever purchases are 142
made without competitive bids. 143
H. B. No. 1897 *HR43/A491SG* ~ OFFICIAL ~
26/HR43/A491SG
PAGE 7
ST: Appropriation; Oil and Gas Board.
SECTION 8. It is the intention of the Legislature that the 144
funds herein appropriated shall be expended in compliance with 145
Section 27-104-25, Mississippi Code of 1972, that no state agency 146
shall incur obligations or indebtedness in excess of their 147
appropriation and that the responsible officers, either personally 148
or upon their official bonds, shall be held responsible for 149
actions contrary to this provision. 150
SECTION 9. Of the funds appropriated under the provisions of 151
Section 2 of this act, Two Million Dollars ($2,000,000.00), or so 152
much thereof, shall be derived out of any money in the State 153
Treasury to the credit of the Capital Expense Fund, as created in 154
Section 27-103-303, Mississippi Code of 1972, and allocated in a 155
manner as determined by the Treasurer's Office. These funds are 156
provided to the Oil and Gas Board for the purpose of emergency 157
orphan well plugging. 158
SECTION 10. The money herein appropriated shall be paid by 159
the State Treasurer out of any money in the State Treasury to the 160
credit of the proper fund or funds as set forth in this act, upon 161
warrants issued by the State Fiscal Officer; and the State Fiscal 162
Officer shall issue his warrants upon requisitions signed by the 163
proper person, officer or officers, in the manner provided by law. 164
SECTION 11. This act shall take effect and be in force from 165
and after July 1, 2026. 166