Mississippi Transit Corporation; establish.

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

By: Representative Bell (65th)

HOUSE BILL NO. 427

AN ACT TO ESTABLISH THE MISSISSIPPI TRANSIT CORPORATION; TO 1
PROVIDE THAT THE CORPORATION SHALL PROVIDE SAFE, RELIABLE AND 2
COST-EFFECTIVE BUS, RAIL AND LIGHT RAIL TRANSIT SERVICES FOR THE 3
STATE; TO PROVIDE THE COMPOSITION OF THE BOARD OF DIRECTORS OF THE 4
CORPORATION; TO PROVIDE THE POWERS AND DUTIES OF THE BOARD OF 5
DIRECTORS OF SUCH CORPORATION; TO AMEND SECTION 7-7-211, 6
MISSISSIPPI CODE OF 1972, TO CONFORM TO A PRECEDING SECTION; AND 7
FOR RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. (1) There is hereby established in the executive 10
branch of state government the Mississippi Transit Corporation, a 11
body corporate and politic with corporate succession. The 12
corporation is hereby allocated within the Department of 13
Transportation, but, notwithstanding this allocation, the 14
corporation shall be independent of any supervision or control by 15
the department or by any body or officer thereof. The corporation 16
is hereby constituted as an instrumentality of the state 17
exercising public and essential governmental functions, and the 18
exercise by the corporation of the powers conferred by this act 19
shall be deemed and held to be an essential governmental function 20
of the state. 21
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(2) (a) The corporation shall be governed by a board of 22
directors which shall consist of seventeen (17) members. The 23
composition of the board is as follows: 24
(b) The Speaker of the Mississippi House of 25
Representatives, or his designee; 26
(c) The Lieutenant Governor of the Senate, or his 27
designee; 28
(d) The Executive Director of the Mississippi 29
Department of Transportation; 30
(e) The Chairperson of the Jackson-Medgar Wiley Evers 31
International Airport; 32
(f) Two (2) appointees made by the Mayor of the City of 33
Canton, Mississippi; 34
(g) Two (2) appointees made by the Mayor of the City of 35
Clinton, Mississippi; 36
(h) Two (2) appointees made by the Mayor of the City of 37
Jackson, Mississippi; 38
(i) Two (2) appointees made by the Mayor of the City of 39
Madison, Mississippi; 40
(j) Two (2) appointees made by the Mayor of the City of 41
Meridian, Mississippi; 42
(k) Two (2) appointees made by the Mayor of the City of 43
Vicksburg, Mississippi; and 44
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(l) One (1) member who shall be a regular user of the 45
public transit system, appointed by the Chairperson of the 46
Commission of the Mississippi Department of Transportation. 47
All appointees, with the exception of the director appointed 48
by the Executive Director of the Department of Transportation, 49
shall each have experience as either a regular corporation 50
motorbus regular route service rider or regular corporation rail 51
passenger service or light rail service rider or have a 52
professional background in passenger rail service, freight rail 53
management, transportation capital planning, transportation and 54
public transportation capital construction, federal transportation 55
policy, state transportation policy, human resources management, 56
or transportation capital finance. 57
(3) All public members shall serve for four (4) years 58
staggered terms and until their successors are appointed and 59
qualified, provided, however, that a board member shall not serve 60
beyond the expiration of that board member's term for more than 61
ninety (90) days following the expiration of the term unless 62
reappointed. 63
(4) Each public member may be removed from office by the 64
Governor for cause. A vacancy in the membership of the board 65
occurring other than by expiration of term shall be filled in the 66
same manner as the original appointment, but for the unexpired 67
term only. The first appointments shall be for one (1), two (2), 68
three (3) and four (4) years respectively, and thereafter for 69
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terms of four (4) years as stated. The board shall annually 70
designate a vice chairperson and secretary. The secretary need 71
not be a member. 72
For the purposes of this subsection "experience as a regular 73
corporation motorbus regular route service rider" includes any 74
rider who is a regular corporation motorbus regular route service 75
rider at the time of the member's appointment or reappointment and 76
any rider who has been a regular corporation motorbus regular 77
route service rider in three (3) of the seven (7) years preceding 78
the member's appointment or reappointment. Further, "experience 79
as a regular corporation rail passenger service or light rail 80
service rider" includes any rider who is a regular corporation 81
rail passenger service or light rail service rider at the time of 82
the member's appointment or reappointment and any rider who has 83
been a regular corporation rail passenger service or light rail 84
service rider in three (3) of the seven (7) years preceding the 85
member's appointment or reappointment. 86
(5) Board members shall serve without compensation, but 87
members shall be reimbursed for actual expenses necessarily 88
incurred in the performance of their duties. 89
(6) The Executive Director of the Department of 90
Transportation shall serve as chairperson of the board, chair 91
board meetings, and shall have responsibility for the scheduling 92
and convening of all meetings of the board. In the absence of the 93
chairperson, the vice chairperson shall chair the board meeting. 94
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A designee may lawfully vote and otherwise act on behalf of the 95
member for whom the person constitutes the designee. Any such 96
designation shall be delivered to the board in writing and shall 97
continue in effect until revoked or amended by a writing delivered 98
to the board requesting such revocation and amendment. 99
(7) Nine (9) members of the board shall constitute a quorum 100
at any meeting thereof. Actions may be taken and motions and 101
resolutions adopted by the board at any meeting thereof by the 102
affirmative vote of at least nine (9) members. No vacancy in the 103
membership of the board shall impair the right of a quorum to 104
exercise all the rights and perform all the duties of the board. 105
(8) A true copy of the minutes of every meeting of the board 106
shall be published on the website of the corporation and available 107
for inspection at the office of the corporation. 108
SECTION 2. The board meetings shall be subject to the Open 109
Meetings Act and the board shall hold a minimum of ten (10) public 110
board meetings per year. Public hearings held pursuant to this 111
subsection shall not be considered public board meetings for the 112
purposes of this subsection. 113
SECTION 3. (1) The board of directors of the corporation 114
shall: 115
(a) Execute direct oversight of the corporation's 116
executive director and other management in the effective and 117
ethical management of the corporation, including review and 118
approval of any quarterly changes to the schedules for motorbus 119
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regular route service, rail passenger service, or light rail 120
service; 121
(b) Understand, review, and monitor the implementation 122
of fundamental financial and management controls and operational 123
decisions of the corporation, including review and approval of any 124
quarterly changes to the schedules for motorbus regular route 125
service, rail passenger service, or light rail service; 126
(c) Establish policies regarding the payment of salary, 127
compensation, and reimbursements to, and establish rules for the 128
time and attendance of, the executive director and management 129
consistent with state law; 130
(d) Adopt a code of ethics, in consultation with the 131
chief ethics officer, applicable to each board member, officer, 132
and employee that, at a minimum, includes the applicable standards 133
established by state law; 134
(e) Require that the corporation establish written 135
policies and procedures on personnel including policies protecting 136
employees from retaliation for disclosing information concerning 137
acts of wrongdoing, misconduct, malfeasance, or other 138
inappropriate behavior by an employee of the corporation; 139
(f) Adopt a policy that provides guidelines for when it 140
is appropriate for the chief ethics officer to forward the results 141
and findings of a preliminary investigation conducted by the chief 142
ethics officer to the Mississippi Ethics Commission, Office of the 143
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Attorney General, county prosecutor's office, or any other 144
appropriate agency for further investigation or action; and 145
(g) Adopt a defense and indemnification policy and 146
disclose such plan to any and all prospective board members. 147
The members of the board shall perform each of their duties 148
as board members, including, but not limited, to those imposed by 149
this section, in good faith and with that degree of diligence, 150
care, and skill which an ordinarily prudent person in like 151
position would use under similar circumstances, and may take into 152
consideration the views and policies of any elected official or 153
body, or other person and ultimately apply independent judgment in 154
the best interest of the corporation, its mission, and the public. 155
(2) At the time that a board member takes and subscribes the 156
board member's oath of office, the board member shall execute an 157
acknowledgement, in a form developed by the corporation, in which 158
the board member shall, at a minimum: 159
(a) Acknowledge that the board member understands that 160
a board member has a fiduciary obligation to perform duties and 161
responsibilities to the best of the board member's abilities, in 162
good faith and with proper diligence and care, consistent with the 163
enabling compact, mission, and bylaws of the corporation and the 164
applicable laws of this state; and that the fiduciary duty to the 165
corporation is derived from and governed by its mission; 166
(b) Acknowledge that the board member understands the 167
board member's duty of loyalty and care to the corporation and 168
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commitment to the corporation's mission and the public interest; 169
and the board member's obligation to act in the best interest of 170
the corporation and the people whom the corporation serves; 171
(c) Agree that a board member has an obligation to 172
become knowledgeable about the mission, purpose, functions, 173
responsibilities, and statutory duties of the corporation and, 174
when necessary, to make reasonable inquiry of management and 175
others with knowledge and expertise so as to inform the board 176
member's decisions; 177
(d) Agree to exercise independent judgment on all 178
matters before the board; 179
(e) Agree not to divulge confidential discussions and 180
confidential matters that come before the board for consideration 181
or action; 182
(f) Agree to disclose to the board any conflicts, or 183
the appearance of a conflict, of a personal, financial, ethical, 184
or professional nature that could inhibit the board member from 185
performing the board member's duties in good faith and with due 186
diligence and care; and 187
(g) Certify that the board member does not have any 188
interest in, financial or otherwise, direct or indirect, or engage 189
in any business or transaction or professional activity or incur 190
any obligation of any nature, which is in substantial conflict 191
with the proper discharge of the board member's duties in the 192
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public interest or as determined by the Mississippi State Ethics 193
Commission. 194
(3) Individuals appointed to the board of directors shall 195
participate in training regarding their legal, fiduciary, 196
financial, and ethical responsibilities as directors of the 197
corporation within six (6) months of appointment to the board. 198
Board members shall participate in continuing training as may be 199
required to remain informed of best practices, regulatory and 200
statutory changes relating to the effective oversight of the 201
management and financial activities of public authorities, and to 202
adhere to the highest standards of responsible governance. 203
(4) No board member, including the chairperson, shall serve 204
as the corporation's executive director, chief financial officer, 205
or hold any senior management position while serving as a member 206
of the board. 207
SECTION 4. In addition to the powers and duties conferred 208
upon it elsewhere in this act, the corporation may do all acts 209
necessary and reasonably incident to carrying out the objectives 210
of this act, including, but not in limitation thereof, the 211
following: 212
(a) Sue and be sued; 213
(b) Have an official seal and alter the same at 214
pleasure; 215
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(c) Make and alter bylaws for its organization and 216
internal management and for the conduct of its affairs and 217
business; 218
(d) Maintain an office at such place or places within 219
the state as it may determine; 220
(e) Adopt, amend and repeal such rules and regulations 221
as it may deem necessary to effectuate the purposes of this act, 222
which shall have the force and effect of law; it shall publish the 223
same and file them in accordance with state law; 224
(f) Call to its assistance and avail itself of the 225
service of such employees of any federal, state, county or 226
municipality or state agency as it may require and as may be 227
available to it for said purpose; 228
(g) Apply for, accept and expend monies from any 229
federal, state, county or municipal agency or instrumentality and 230
from any private source; comply with federal statutes, rules and 231
regulations, and qualify for and receive all forms of financial 232
assistance available under federal law to assure the continuance 233
of, or for the support or improvement of public transportation and 234
as may be necessary for that purpose to enter into agreements, 235
including federally required labor protective agreements; 236
(h) Plan, design, construct, equip, operate, improve 237
and maintain, either directly or by contract with any public or 238
private entity, public transportation services, capital equipment 239
and facilities or any parts or functions thereof, and other 240
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transportation projects, or any parts or functions thereof, which 241
may be funded with federal, state or local proceeds or any 242
successor or additional federal funds having substantially the 243
same or similar purposes or functions; the operation of the 244
facilities of the corporation, by the corporation or any public or 245
private entity, may include appropriate and reasonable limitations 246
on competition in order that maximum service may be provided most 247
efficiently to the public; 248
(i) Apply for and accept, from appropriate regulatory 249
bodies, authority to operate public transportation services where 250
necessary; 251
(j) Purchase, lease as lessee, or otherwise acquire, 252
own, hold, improve, use and otherwise deal in and with real or 253
personal property, or any interest therein, from any public or 254
private entity, wherever situated; 255
(k) Lease as lessor, sell or otherwise dispose of on 256
terms which the corporation may prescribe, real and personal 257
property, including tangible or intangible property and consumable 258
goods, or any interest therein, to any public or private entity, 259
in the exercise of its powers and the performance of its duties 260
under this act. In order to provide or encourage adequate and 261
efficient public transportation service, the corporation may lease 262
or otherwise permit the use or occupancy of property without cost 263
or at a nominal rental; 264
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(l) Restrict the rights of persons to enter upon or 265
construct any works in or upon any property owned or leased by the 266
corporation, except under such terms as the corporation may 267
prescribe; perform or contract for the performance of all acts 268
necessary for the management, maintenance and repair of real or 269
personal property leased or otherwise used or occupied pursuant to 270
this act; 271
(m) Establish one or more operating divisions as deemed 272
necessary; 273
(n) Set and collect fares and determine levels of 274
service for service provided by the corporation either directly or 275
by contract including, but not limited to, such reduced fare 276
programs as deemed appropriate by the corporation; revenues 277
derived from such service may be collected by the corporation and 278
shall be available to the corporation for use in furtherance of 279
any of the purposes of this act; 280
(o) Set and collect rentals, fees, charges or other 281
payments from the lease, use, occupancy or disposition of 282
properties owned or leased by the corporation; such revenues shall 283
be available to the corporation for use in furtherance of any of 284
the purposes of this act; 285
(p) Deposit corporate revenues in interest bearing 286
accounts or in the State General Fund; 287
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(q) Delegate to subordinate officers of the corporation 288
such powers and duties as the corporation shall deem necessary and 289
proper to carry out the purposes of this act; 290
(r) Procure and enter into contracts for any type of 291
insurance and indemnify against loss or damage to property from 292
any cause, including loss of use and occupancy, against death or 293
injury of any person, against employees' liability, against any 294
act of any member, officer, employee or servant of the 295
corporation, whether part-time, full-time, compensated or 296
noncompensated, in the performance of the duties of his office or 297
employment or any other insurable risk. In addition, the 298
corporation may carry its own liability insurance and may also 299
establish and utilize a wholly-owned insurance subsidiary or 300
captive provided the subsidiary or captive is domiciled in the 301
United States in a state which is accredited by the National 302
Association of Insurance Commissioners and which licenses and 303
regulates wholly-owned insurance subsidiaries or captives; 304
(s) Promote the use of public transportation services, 305
coordinate ticket sales and passenger information and sell, lease 306
or otherwise contract for advertising in or on the equipment or 307
facilities of the corporation; 308
(t) Adopt and maintain employee benefit programs for 309
employees of the corporation including, but not limited to, 310
pension, deferred compensation, medical disability, and death 311
benefits, and which programs may utilize insurance contracts, 312
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trust funds, and any other appropriate means of providing the 313
stipulated benefits, and may involve new plans or the continuation 314
of plans previously established by entities acquired by the 315
corporation; 316
(u) Own, control, vote, and exercise any and all other 317
rights incidental to the ownership of any equity, membership 318
interest, or any shares of the capital stock of any incorporated 319
entity acquired, formed, incorporated, or established by law by 320
the corporation pursuant to the powers granted by this act. Any 321
such corporate entity may be utilized in order to enable the 322
corporation to participate with other private or public entities 323
in any transaction, memorandum of understanding, undertaking, or 324
arrangement that the corporation would have the power to conduct 325
by itself, whether or not such participation involves sharing or 326
delegation of control with or to other public or private entities 327
regarding the ownership, operation, control, and management of 328
services, equipment or facilities. For purposes of this 329
subsection, "corporate entity" means any business entity, 330
including, but not limited to, any corporation, limited liability 331
company, joint venture, limited partnership, general partnership, 332
association of any kind, or collaborative arrangement that may be 333
jointly owned by the corporation and any other public or private 334
entities that provide public transportation services; 335
(v) Enter into any and all agreements or contracts, 336
execute any and all instruments, and do and perform any and all 337
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acts or things necessary, convenient or desirable for the purposes 338
of the corporation, or to carry out any power expressly or 339
implicitly given in this act; 340
(w) (i) Issue operating grant anticipation notes which 341
shall be secured and retired from operating assistance grants or 342
any successor or additional federal act having substantially the 343
same or similar purposes or functions, (ii) issue capital grant 344
anticipation notes which shall be secured and retired from capital 345
assistance grants or any successor or additional federal act 346
having substantially the same or similar purposes or functions; 347
(iii) borrow money or issue general obligation bonds or notes 348
secured by the full faith and credit of the State of Mississippi; 349
(iv) issue revenue bonds or notes secured by operating fares or 350
the general fund of the corporation; and (v) issue limited 351
obligation bonds secured by a regional transit tax. As used in 352
this paragraph, "operating grant anticipation notes" or "capital 353
grant anticipation notes" (hereinafter referred to as "notes") 354
means credit obligations issued in anticipation of these grants. 355
As used in this paragraph, "general obligation bonds, limited 356
obligation bonds and revenue bonds" (hereinafter referred to as 357
"bonds") means securities issued for the purpose of capital 358
improvements along with acquiring, improving, enlarging, or 359
extending the corporation's transportation system. 360
The notes and bonds shall be authorized by a resolution or 361
resolutions of the corporation, and may be issued in one or more 362
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series and shall bear the date, or dates, bear interest at the 363
rate or rates of interest per annum, be in the denomination or 364
denominations, be in the form, carry the conversion or 365
registration privileges, have the rank or priority, be executed in 366
such manner as the resolution or resolutions require. The notes 367
and bonds may be sold at public or private sale at the price or 368
prices and in the manner that the corporation determines. The 369
notes and bonds of the corporation, the sale or transfer thereof, 370
and the income derived therefrom by the purchasers of the notes, 371
shall, at all times, be free from taxation for state or local 372
purposes, under any law of the state or any political subdivision 373
thereof. Notes and bonds may be issued without obtaining the 374
consent of any department, division, commission, board, bureau or 375
agency of the state, and without any other proceedings or 376
conditions except when secured by the general obligation of the 377
state, the corporation shall obtain the approval of the State Bond 378
Commission. 379
The notes and bonds shall be payable from (i) note proceeds, 380
to the extent not disbursed to the corporation, (ii) grant 381
payments if, as, and when received from the federal government, 382
(iii) investment earnings on note proceeds, to the extent not 383
disbursed to the corporation, (iv) revenues received from fares 384
collected by the corporation, (v) regional transit tax and (vi) 385
the general obligations of the State of Mississippi. Each note or 386
bond shall contain on its face a statement to the effect that the 387
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corporation is obligated to pay the principal thereof or the 388
interest thereon. Neither the members of the corporation's board 389
nor any person executing the transactions are personally liable on 390
those notes nor are they otherwise liable for their actions; 391
(x) Enter into agreements with local government units 392
of the state under Section 57-64-1, et. seq., and have all powers 393
afforded to the corporation pursuant to the Regional Economic 394
Development Act; 395
(y) Enter into agreements with a public or private 396
entity or consortia thereof to provide for the development of 397
demonstration projects through the use of public-private 398
partnerships; and 399
(z) Levy and collect a regional transit tax within the 400
service area of the corporation dedicated to the purpose of public 401
transportation. 402
SECTION 5. (1) The corporation or any subsidiary thereof 403
shall not be considered a public utility as defined under Section 404
77-3-3. 405
(2) Before implementing the substantial curtailment or 406
abandonment of motorbus regular route or rail passenger services, 407
the corporation shall hold at least two (2) public hearings in the 408
affected counties, within one-half (1/2) mile of the route and, to 409
the extent practicable, near each terminus of the route. At least 410
one (1) of the two (2) hearings shall take place on a state 411
working day. Each public hearing shall be attended by at least 412
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two (2) members of the corporation's board of directors. Each 413
public hearing in an affected county shall consist of two (2) 414
sessions, the first of which shall be for at least two (2) hours 415
in the afternoon between 2:00 p.m. and 6:00 p.m. and the second of 416
which shall take place in the evening in the same place and on the 417
same day for at least two (2) hours between 6:00 p.m. and 10:00 418
p.m. 419
(3) Before implementing any fare increase for any motorbus 420
regular route or rail passenger services, at least ten (10) public 421
hearings shall be held and shall be distributed geographically 422
throughout the state. Not more than one (1) hearing shall take 423
place in each county, and each hearing shall be located within 424
one-quarter (1/4) mile of both a rail passenger service line and a 425
motorbus regular route. At least half of the hearings shall take 426
place on state working days. Each public hearing shall be 427
attended by at least two (2) members of the corporation's board of 428
directors. Each public hearing in an affected county shall 429
consist of two (2) sessions, the first of which shall be for at 430
least two (2) hours in the afternoon between 2:00 p.m. and 6:00 431
p.m. and the second of which shall take place in the evening in 432
the same place and on the same day for at least two (2) hours 433
between 6:00 p.m. and 10:00 p.m. 434
(4) For the hearings required under subsections (2) and (3) 435
of this section, notice of the hearing shall be given by the 436
corporation at least fifteen (15) days prior to the hearing to the 437
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governing body of each county whose residents will be affected and 438
to the clerk of each municipality in the county or counties whose 439
residents will be affected; the notice shall also be posted at 440
least fifteen (15) days prior to the hearing in prominent places 441
on the railroad cars and buses serving the routes to be affected. 442
In addition to the public hearing, the corporation shall post, in 443
prominent places on the railroad cars and buses serving the routes 444
to be affected, a postal mailing address and electronic mailing 445
address where members of the public may provide written comments 446
to the corporation regarding the proposed fare increase or 447
substantial curtailment or abandonment of service. The 448
corporation shall prepare and publish a written response 449
concerning any issue or concern raised by a member of the public 450
at any public hearing or in any written comment provided pursuant 451
to this subsection. 452
(5) Notice of its intent to discontinue, substantially 453
curtail, or abandon any motorbus regular route service or rail 454
passenger service shall be given by the corporation to the 455
governing body of each county whose residents will be affected and 456
to the clerk of each municipality in the county or counties whose 457
residents will be affected at least forty-five (45) days prior to 458
implementation of the change in service. 459
For the purposes of this subsection, "substantial 460
curtailment" and "substantially curtail" shall include, but need 461
not be limited to: the elimination of a motorbus regular route, 462
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scheduled trip, or scheduled stop along a motorbus regular route 463
or of a rail passenger service line, scheduled trip, or scheduled 464
stop along a rail passenger service line; a reduction of thirty 465
(30) minutes or more in the beginning or end of service for the 466
corporation's adopted schedule or timetable for a scheduled stop 467
along a motorbus regular route or rail passenger service line; and 468
any change to a motorbus regular route or rail passenger service 469
which may increase barriers to accessibility for a person with 470
disabilities. 471
SECTION 6. (1) The State Auditor shall conduct audits of 472
the corporation, which shall occur at least once every seventy-two 473
(72) months in a manner that is consistent with the Government 474
Auditing Standards for audits utilized by the United States 475
Government Accountability Office or its successor, the first of 476
which shall be completed within twelve (12) months of the 477
effective date of this act and shall focus on a specific area of 478
the corporation's operations, as determined by the State Auditor. 479
(2) (a) At least once every five (5) years, the corporation 480
shall hire an independent firm to: conduct a study on the 481
financial management practices and budget reporting practices of 482
mass transit agencies throughout the country; and prepare a report 483
with findings regarding the best practices for financial 484
management and budget reporting by mass transit agencies and a 485
comparison of those best practices with the practices and policies 486
of the corporation. 487
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(b) The first such report shall be issued within 488
twenty-four (24) months of the effective date of this act. Each 489
report shall be submitted to the Governor and the Legislature. 490
(3) The corporation shall adopt any best practices included 491
in the report within six (6) months of the issuance of any report 492
issued pursuant to subsection (b) of this section. Upon the 493
affirmative vote of seven (7) members of the board of directors, 494
the corporation may opt not to adopt individual policies or 495
practices that are in line with the best practices of mass transit 496
agencies throughout the country. If the corporation exercises 497
this option, the corporation shall provide a detailed explanation 498
of why adoption of that policy or practice is not in the best 499
interest of the corporation. 500
SECTION 7. (1) The corporation, at the request of the 501
chairperson of any standing legislative committee, as approved by 502
the Speaker of the House or the Lieutenant Governor of the Senate 503
as appropriate, shall be required to appear before that committee 504
to present testimony and provide documents on any topic or subject 505
requested by the committee and to respond to any questions by 506
members of the committee. 507
(2) Unless otherwise agreed to by the chairperson of the 508
committee, the corporation shall, at a minimum, be represented by 509
the chairperson of the board of directors, the executive director, 510
and the chief financial officer, and any staff deemed necessary by 511
the chairperson of the board, executive director, or chief 512
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financial officer to present testimony, provide documents, or 513
respond to questions at any appearance required pursuant to this 514
section. The chairperson of the legislative committee may require 515
the appearance of any officer or employee of the corporation. 516
SECTION 8. (1) The corporation shall, by September 15 of 517
each year, file with the Commissioner of Transportation, a report 518
in such format and detail as the Commissioner may require setting 519
forth the actual, operational, capital and financial results of 520
the previous fiscal year, the operational, capital and financial 521
plan for the current fiscal year and a proposed operational, 522
capital and financial plan for the next ensuing fiscal year. 523
(2) On or before October 31 of each year, the corporation 524
shall make an annual report of its activities for the preceding 525
fiscal year to the Governor, Speaker of the House, Lieutenant 526
Governor of the Senate and to the Chairperson of the Mississippi 527
House of Representatives Transportation Committee and the 528
Highways and Transportation Committee of the Mississippi Senate. 529
Each such report shall set forth a complete operating and 530
financial statement covering its operations and capital projects 531
during the year. The report shall also include an account of the 532
on-time performance of rail passenger service, including light 533
rail service, operated by, or under contract to, the corporation, 534
including data for each such passenger line. The report shall 535
provide a detailed discussion of the methodology used by the 536
corporation in measuring on-time performance. The report shall 537
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include certain personnel information of employees of the 538
corporation, including the average salary, number of employees in 539
management positions, and number of employees that are not in 540
management positions in key demographic groups, which shall 541
include, at a minimum, race, ethnicity and gender. 542
(3) All records of minutes, accounts, bills, vouchers, 543
contracts or other papers connected with or used or filed with the 544
corporation or with any officer or employee acting on its behalf 545
are hereby declared to be government records and shall be open to 546
public inspection in accordance with the Open Records Act and 547
regulations prescribed by the corporation. 548
(4) The corporation shall cause an audit of its books and 549
accounts to be made at least once each year by certified public 550
accountants and the cost thereof may be treated as a cost of 551
operation. The audit shall be filed within four (4) months after 552
the close of the fiscal year of the corporation and a certified 553
duplicate copy thereof shall be filed with the Secretary of State. 554
(5) Notwithstanding the provisions of any law to the 555
contrary, the State Auditor or a legally authorized representative 556
may examine the accounts and books of the corporation. 557
(6) On or before May 1 of each year, the board shall approve 558
and the corporation shall transmit an annual proposed budget 559
recommendation to the Chairman of the Commission of the 560
Mississippi Department of Transportation, Speaker of the House, 561
Lieutenant Governor of the Senate and to the Chairperson of the 562
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Mississippi House of Representatives Transportation Committee and 563
the Highways and Transportation Committee of the Mississippi 564
Senate. The budget document shall be a two-year budget which 565
covers the most recent completed fiscal year, estimated results 566
for the fiscal year in progress, a recommendation for the fiscal 567
year to commence, and estimated needs and projections for the 568
following fiscal year. At a minimum, the budget shall provide 569
detailed information in the following areas: 570
(a) An executive summary outlining the highlights of 571
the budget document; 572
(b) A profile describing the history of the corporation 573
and the services it provides; 574
(c) An analysis of regional and agency transportation 575
trends, including a detailed ridership analysis; 576
(d) A synopsis of the current corporation business 577
plan; 578
(e) A list of key performance indicators; 579
(f) A statement of current budget year assumptions 580
regarding funding and ridership; 581
(g) A summary of the internal corporation budgeting 582
process and its interaction with the statewide budgeting process; 583
(h) A description of the current corporation 584
organizational structure; 585
(i) Detailed operating revenue and expense projections 586
for each division within the corporation, with ten (10) year 587
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revenue and expense trends and five (5) year revenue and expense 588
projections; 589
(j) A detailed headcount analysis by the department or 590
unit, which includes actual employee count, funded headcount, 591
actual salary and fringe expenses, and recent employment trends; 592
and 593
(k) A summary of the capital program and analysis of 594
current capital projects for which capital funds have already been 595
appropriated, but where the project is not yet complete, which 596
includes the years of appropriation, amounts expended, future 597
appropriations required to complete the project, and a brief 598
analysis of project progress. 599
SECTION 9. Section 7-7-211, Mississippi Code of 1972, is 600
amended as follows: 601
7-7-211. The department shall have the power and it shall be 602
its duty: 603
(a) To identify and define for all public offices of 604
the state and its subdivisions generally accepted accounting 605
principles or other accounting principles as promulgated by 606
nationally recognized professional organizations and to consult 607
with the State Fiscal Officer in the prescription and 608
implementation of accounting rules and regulations; 609
(b) To provide best practices, for all public offices 610
of regional and local subdivisions of the state, systems of 611
accounting, budgeting and reporting financial facts relating to 612
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said offices in conformity with legal requirements and with 613
generally accepted accounting principles or other accounting 614
principles as promulgated by nationally recognized professional 615
organizations; to assist such subdivisions in need of assistance 616
in the installation of such systems; to revise such systems when 617
deemed necessary, and to report to the Legislature at periodic 618
times the extent to which each office is maintaining such systems, 619
along with such recommendations to the Legislature for improvement 620
as seem desirable; 621
(c) To study and analyze existing managerial policies, 622
methods, procedures, duties and services of the various state 623
departments and institutions upon written request of the Governor, 624
the Legislature or any committee or other body empowered by the 625
Legislature to make such request to determine whether and where 626
operations can be eliminated, combined, simplified and improved; 627
(d) To postaudit each year and, when deemed necessary, 628
preaudit and investigate the financial affairs of the departments, 629
institutions, boards, commissions, or other agencies of state 630
government, as part of the publication of a comprehensive annual 631
financial report for the State of Mississippi, or as deemed 632
necessary by the State Auditor. In complying with the 633
requirements of this paragraph, the department shall have the 634
authority to conduct all necessary audit procedures on an interim 635
and year-end basis; 636
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(e) To postaudit and, when deemed necessary, preaudit 637
and investigate separately the financial affairs of (i) the 638
offices, boards and commissions of county governments and any 639
departments and institutions thereof and therein; (ii) public 640
school districts, departments of education and junior college 641
districts; and (iii) any other local offices or agencies which 642
share revenues derived from taxes or fees imposed by the State 643
Legislature or receive grants from revenues collected by 644
governmental divisions of the state; the cost of such audits, 645
investigations or other services to be paid as follows: Such part 646
shall be paid by the state from appropriations made by the 647
Legislature for the operation of the State Department of Audit as 648
may exceed the sum of Thirty-five Dollars ($35.00) per man-hour 649
for the services of each staff person engaged in performing the 650
audit or other service plus the actual cost of any independent 651
specialist firm contracted by the State Auditor to assist in the 652
performance of the audit, which sum shall be paid by the county, 653
district, department, institution or other agency audited out of 654
its general fund or any other available funds from which such 655
payment is not prohibited by law. Costs paid for independent 656
specialists or firms contracted by the State Auditor shall be paid 657
by the audited entity through the State Auditor to the specialist 658
or firm conducting the postaudit. 659
Each school district in the state shall have its financial 660
records audited annually, at the end of each fiscal year, either 661
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by the State Auditor or by a certified public accountant approved 662
by the State Auditor. Beginning with the audits of fiscal year 663
2010 activity, no certified public accountant shall be selected to 664
perform the annual audit of a school district who has audited that 665
district for three (3) or more consecutive years previously. 666
Certified public accountants shall be selected in a manner 667
determined by the State Auditor. The school district shall have 668
the responsibility to pay for the audit, including the review by 669
the State Auditor of audits performed by certified public 670
accountants; 671
(f) To postaudit and, when deemed necessary, preaudit 672
and investigate the financial affairs of the levee boards; 673
agencies created by the Legislature or by executive order of the 674
Governor; profit or nonprofit business entities administering 675
programs financed by funds flowing through the State Treasury or 676
through any of the agencies of the state, or its subdivisions; and 677
all other public bodies supported by funds derived in part or 678
wholly from public funds, except municipalities which annually 679
submit an audit prepared by a qualified certified public 680
accountant using methods and procedures prescribed by the 681
department; 682
(g) To make written demand, when necessary, for the 683
recovery of any amounts representing public funds improperly 684
withheld, misappropriated and/or otherwise illegally expended by 685
an officer, employee or administrative body of any state, county 686
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or other public office, and/or for the recovery of the value of 687
any public property disposed of in an unlawful manner by a public 688
officer, employee or administrative body, such demands to be made 689
(i) upon the person or persons liable for such amounts and upon 690
the surety on official bond thereof, and/or (ii) upon any 691
individual, partnership, corporation or association to whom the 692
illegal expenditure was made or with whom the unlawful disposition 693
of public property was made, if such individual, partnership, 694
corporation or association knew or had reason to know through the 695
exercising of reasonable diligence that the expenditure was 696
illegal or the disposition unlawful. Such demand shall be 697
premised on competent evidence, which shall include at least one 698
(1) of the following: (i) sworn statements, (ii) written 699
documentation, (iii) physical evidence, or (iv) reports and 700
findings of government or other law enforcement agencies. Other 701
provisions notwithstanding, a demand letter issued pursuant to 702
this paragraph shall remain confidential by the State Auditor 703
until the individual against whom the demand letter is being filed 704
has been served with a copy of such demand letter. If, however, 705
such individual cannot be notified within fifteen (15) days using 706
reasonable means and due diligence, such notification shall be 707
made to the individual's bonding company, if he or she is bonded. 708
Each such demand shall be paid into the proper treasury of the 709
state, county or other public body through the office of the 710
department in the amount demanded within thirty (30) days from the 711
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date thereof, together with interest thereon in the sum of one 712
percent (1%) per month from the date such amount or amounts were 713
improperly withheld, misappropriated and/or otherwise illegally 714
expended. In the event, however, such person or persons or such 715
surety shall refuse, neglect or otherwise fail to pay the amount 716
demanded and the interest due thereon within the allotted thirty 717
(30) days, the State Auditor shall have the authority and it shall 718
be his duty to institute suit, and the Attorney General shall 719
prosecute the same in any court of the state to the end that there 720
shall be recovered the total of such amounts from the person or 721
persons and surety on official bond named therein; and the amounts 722
so recovered shall be paid into the proper treasury of the state, 723
county or other public body through the State Auditor. In any 724
case where written demand is issued to a surety on the official 725
bond of such person or persons and the surety refuses, neglects or 726
otherwise fails within one hundred twenty (120) days to either pay 727
the amount demanded and the interest due thereon or to give the 728
State Auditor a written response with specific reasons for 729
nonpayment, then the surety shall be subject to a civil penalty in 730
an amount of twelve percent (12%) of the bond, not to exceed Ten 731
Thousand Dollars ($10,000.00), to be deposited into the State 732
General Fund; 733
(h) To investigate any alleged or suspected violation 734
of the laws of the state by any officer or employee of the state, 735
county or other public office in the purchase, sale or the use of 736
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any supplies, services, equipment or other property belonging 737
thereto; and in such investigation to do any and all things 738
necessary to procure evidence sufficient either to prove or 739
disprove the existence of such alleged or suspected violations. 740
The Division of Investigation of the State Department of Audit may 741
investigate, for the purpose of prosecution, any suspected 742
criminal violation of the provisions of this chapter. For the 743
purpose of administration and enforcement of this chapter, the 744
enforcement employees of the Division of Investigation of the 745
State Department of Audit have the powers of a law enforcement 746
officer of this state, and shall be empowered to make arrests and 747
to serve and execute search warrants and other valid legal process 748
anywhere within the State of Mississippi. All enforcement 749
employees of the Division of Investigation of the State Department 750
of Audit hired on or after July 1, 1993, shall be required to 751
complete the Law Enforcement Officers Training Program and shall 752
meet the standards of the program; 753
(i) To issue subpoenas, with the approval of, and 754
returnable to, a judge of a chancery or circuit court, in termtime 755
or in vacation, to examine the records, documents or other 756
evidence of persons, firms, corporations or any other entities 757
insofar as such records, documents or other evidence relate to 758
dealings with any state, county or other public entity. The 759
circuit or chancery judge must serve the county in which the 760
records, documents or other evidence is located; or where all or 761
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part of the transaction or transactions occurred which are the 762
subject of the subpoena; 763
(j) In any instances in which the State Auditor is or 764
shall be authorized or required to examine or audit, whether 765
preaudit or postaudit, any books, ledgers, accounts or other 766
records of the affairs of any public hospital owned or owned and 767
operated by one or more political subdivisions or parts thereof or 768
any combination thereof, or any school district, including 769
activity funds thereof, it shall be sufficient compliance 770
therewith, in the discretion of the State Auditor, that such 771
examination or audit be made from the report of any audit or other 772
examination certified by a certified public accountant and 773
prepared by or under the supervision of such certified public 774
accountant. Such audits shall be made in accordance with 775
generally accepted standards of auditing, with the use of an audit 776
program prepared by the State Auditor, and final reports of such 777
audits shall conform to the format prescribed by the State 778
Auditor. All files, working papers, notes, correspondence and all 779
other data compiled during the course of the audit shall be 780
available, without cost, to the State Auditor for examination and 781
abstracting during the normal business hours of any business day. 782
The expense of such certified reports shall be borne by the 783
respective hospital, or any available school district funds, 784
subject to examination or audit. The State Auditor shall not be 785
bound by such certified reports and may, in his or their 786
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discretion, conduct such examination or audit from the books, 787
ledgers, accounts or other records involved as may be appropriate 788
and authorized by law; 789
(k) The State Auditor shall have the authority to 790
contract with qualified public accounting firms to perform 791
selected audits required in paragraphs (d), (e), (f) and (j) of 792
this section, if funds are made available for such contracts by 793
the Legislature, or if funds are available from the governmental 794
entity covered by paragraphs (d), (e), (f) and (j). Such audits 795
shall be made in accordance with generally accepted standards of 796
auditing. All files, working papers, notes, correspondence and 797
all other data compiled during the course of the audit shall be 798
available, without cost, to the State Auditor for examination and 799
abstracting during the normal business hours of any business day; 800
(l) The State Auditor shall have the authority to 801
establish training courses and programs for the personnel of the 802
various state and local governmental entities under the 803
jurisdiction of the Office of the State Auditor. The training 804
courses and programs shall include, but not be limited to, topics 805
on internal control of funds, property and equipment control and 806
inventory, governmental accounting and financial reporting, and 807
internal auditing. The State Auditor is authorized to charge a 808
fee from the participants of these courses and programs, which fee 809
shall be deposited into the Department of Audit Special Fund. 810
State and local governmental entities are authorized to pay such 811
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fee and any travel expenses out of their general funds or any 812
other available funds from which such payment is not prohibited by 813
law; 814
(m) Upon written request by the Governor or any member 815
of the State Legislature, the State Auditor may audit any state 816
funds and/or state and federal funds received by any nonprofit 817
corporation incorporated under the laws of this state; 818
(n) To conduct performance audits of personal or 819
professional service contracts by state agencies on a random 820
sampling basis, or upon request of the State Personal Service 821
Contract Review Board under Section 25-9-120(3); 822
(o) At the discretion of the State Auditor, the Auditor 823
may conduct risk assessments, as well as performance and 824
compliance audits based on Generally Accepted Government Auditing 825
Standards (GAGAS) of any state-funded economic development program 826
authorized under Title 57, Mississippi Code of 1972. After risk 827
assessments or program audits, the State Auditor may conduct 828
audits of those projects deemed high-risk, specifically as they 829
identify any potential wrongdoing or noncompliance based on 830
objectives of the economic development program. The Auditor is 831
granted authority to gather, audit and review data and information 832
from the Mississippi Development Authority or any of its agents, 833
the Department of Revenue, and when necessary under this 834
paragraph, the recipient business or businesses or any other 835
private, public or nonprofit entity with information relevant to 836
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ST: Mississippi Transit Corporation; establish.
the audit project. The maximum amount the State Auditor may bill 837
the oversight agency under this paragraph in any fiscal year is 838
One Hundred Thousand Dollars ($100,000.00), based on reasonable 839
and necessary expenses; 840
(p) To review and approve any independent auditor 841
selected by the Mississippi Lottery Corporation in accordance with 842
Section 27-115-89, to conduct an annual audit of the corporation; 843
and 844
(q) To conduct audits or investigations of the 845
Mississippi Lottery Corporation if, in the opinion of the State 846
Auditor, conditions justify such audits or investigations * * * ; 847
and 848
(r) To conduct audits of the Mississippi Transit 849
Corporation as authorized under Section 6 of this act. 850
SECTION 10. This act shall take effect and be in force from 851
and after July 1, 2026. 852