State Treasury Efficiency and Transparency Act; enact.

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To: Appropriations
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Hopson

SENATE BILL NO. 2471

AN ACT TO ENACT THE "STATE TREASURY EFFICIENCY AND 1
TRANSPARENCY ACT"; TO AMEND SECTION 27-105-3, MISSISSIPPI CODE OF 2
1972, TO DEFINE THE TERMS "POOLED INVESTMENT VEHICLE," "STATE 3
AGENCY" AND "STATE FISCAL OFFICER"; TO CREATE NEW SECTION 4
27-105-32, MISSISSIPPI CODE OF 1972, TO REQUIRE THE STATE 5
TREASURER TO ANNUALLY REVIEW EACH PUBLIC FUND, ACCOUNT OR TRUST 6
THAT RECEIVES INTEREST ALLOCATION FROM A POOLED INVESTMENT VEHICLE 7
TO DETERMINE IF THE FUND, ACCOUNT OR TRUST THAT RECEIVES INTEREST 8
HAD NO TRANSACTIONAL ACTIVITY, OTHER THAN THE RECEIPT OF INTEREST 9
WITHIN THE PRIOR FISCAL YEAR; TO AUTHORIZE THE STATE TREASURER TO 10
PRECLUDE CERTAIN FUNDS, ACCOUNTS OR TRUSTS FROM RECEIVED INTEREST; 11
TO DIRECT CERTAIN FUNDS TO BE CLOSED OR CONSOLIDATED WITHIN THE 12
STATE TREASURY; TO AMEND SECTION 27-105-33, MISSISSIPPI CODE OF 13
1972, TO AUTHORIZE AN EXCEPTION TO THE INVESTMENT REQUIREMENTS OF 14
THIS CHAPTER UPON A DEMONSTRATION OF SUFFICIENT JUSTIFICATION; TO 15
CREATE NEW SECTION 27-105-34, MISSISSIPPI CODE OF 1972, TO REQUIRE 16
EACH STATE AGENCY TO REVIEW ITS FUNDS, ACCOUNTS AND TRUSTS WITHIN 17
AND OUTSIDE OF THE STATE TREASURY AND REPORT CERTAIN INFORMATION 18
TO THE TREASURER; TO REQUIRE THE TREASURER TO REPORT CERTAIN 19
COMPILED INFORMATION TO THE LEGISLATIVE BUDGET OFFICE AND THE 20
SENATE AND HOUSE LEGISLATIVE SERVICES OFFICE; TO AMEND SECTION 21
27-105-1, MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED 22
PURPOSES. 23
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 24
SECTION 1. This act shall be known and may be cited as the 25
"State Treasury Efficiency and Transparency Act." 26
SECTION 2. Section 27-105-3, Mississippi Code of 1972, is 27
amended as follows: 28
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27-105-3. As used in this chapter: 29
(a) The words "bank" or "banks," whenever used in this 30
chapter, shall include trust companies. 31
(b) The term "pooled investment vehicle" means any 32
investment fund, account or trust in which public monies from two 33
(2) or more funds, accounts or trusts are combined for the purpose 34
of collective investment and management. The term includes 35
investments required under this chapter and investments made 36
pursuant to an exception to the requirements of this chapter under 37
Section 27-105-33(4). 38
(c) The term "state agency" shall have the meaning 39
assigned in Section 27-103-103(3). 40
(d) The term "State Fiscal Officer" means the executive 41
director of the Department of Finance and Administration. 42
SECTION 3. The following shall be codified as Section 43
27-105-32, Mississippi Code of 1972: 44
27-105-32. (1) No later than August 1 of each year, the 45
Treasurer shall review each public fund, account or trust that 46
receives interest allocation from a pooled investment vehicle to 47
determine if the fund, account or trust that receives interest had 48
no transactional activity, other than the receipt of interest 49
allocation from a pooled investment vehicle, within the prior 50
fiscal year. 51
(2) Unless the fund, account or trust identified under 52
subsection (1) of this section was created by law that authorized 53
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the retention of interest earned or investment earnings, the State 54
Treasurer may preclude its allocation of interest from a pooled 55
interest vehicle. 56
(3) Unless an amendment to law is required to do so, the 57
State Treasurer, the State Fiscal Officer and the state agency 58
associated with the fund, account or trust identified under 59
subsection (1) of this section, shall close or consolidate the 60
fund, account or trust. 61
SECTION 4. Section 27-105-33, Mississippi Code of 1972, is 62
amended as follows: 63
27-105-33. (1) It shall be the duty of the State Treasurer 64
and the * * * State Fiscal Officer on or about the tenth day of 65
each month, and in their discretion at any other time, to analyze 66
carefully the amount of cash in the General Fund of the state and 67
in all special funds credited to any special purpose designated by 68
the State Legislature or held to meet the budgets or 69
appropriations for maintenance, improvements and services of the 70
several institutions, boards, departments, commissions, agencies, 71
persons or entities of the state, and to determine in their 72
opinion when the cash in such funds is in excess of the amount 73
required to meet the current needs and demands of no more than 74
seven (7) business days on such funds and report their findings to 75
the Governor. It shall be the duty of the State Treasurer to 76
provide a cash flow model for forecasting revenues and 77
expenditures on a bimonthly basis and providing technical 78
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assistance for its operation. The Department of Finance and 79
Administration shall use the cash flow model furnished by the 80
State Treasurer, in analyzing the amount of funds on deposit and 81
available for investment. 82
(2) The State Treasurer is hereby authorized, empowered and 83
directed to invest all such excess general and special funds of 84
the state in the following manner: 85
(a) Funds shall be allocated equally among all 86
qualified state depositories which do not have demand accounts in 87
excess of One Hundred Fifty Thousand Dollars ($150,000.00) until 88
each qualified depository willing to accept the same shall have on 89
deposit or in security repurchase agreements or in other 90
securities authorized in paragraph (d) of this subsection at 91
interest the sum of Three Hundred Thousand Dollars ($300,000.00). 92
For the purposes of this subsection, no branch bank or branch 93
office shall be counted as a separate depository. 94
(b) The balance, if any, of such excess general and 95
special funds shall be offered to qualified depositories of the 96
state on a pro rata basis as provided in Section 27-105-9. For 97
the purposes of this subsection, the pro rata share of each 98
depository shall be reduced by the amount of the average daily 99
collected earning balance of demand deposits maintained by the 100
State Treasurer pursuant to Section 27-105-9 during the preceding 101
calendar year, and such reduction shall be allocated pro rata 102
among other eligible depositories. 103
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(c) Funds offered pursuant to paragraphs (a) and (b) 104
above shall be invested for periods of up to one (1) year, and 105
shall bear interest at an interest rate no less than that 106
numerically equal to the bond equivalent yield on direct 107
obligations of the United States Treasury of comparable maturity, 108
as determined by the State Treasurer. In determining such rate, 109
the State Treasurer shall consider the Legislature's desire to 110
distribute funds equitably throughout the state to the maximum 111
extent possible. 112
(d) To the extent that the State Treasurer shall find 113
that general and special funds cannot be invested pursuant to 114
paragraphs (a), (b) and (c) of this subsection for the stated 115
maturity up to one (1) year, the Treasurer may invest such funds, 116
together with any other funds required for current operation, as 117
determined pursuant to this section, in the following: 118
(i) Time certificates of deposit or 119
interest-bearing accounts with qualified state depositories. For 120
those funds determined under prudent judgment of the State 121
Treasurer to be made available for investment in time certificates 122
of deposit, the rate of interest paid by the depositories shall be 123
determined by rules and regulations adopted and promulgated by the 124
State Treasurer which may include competitive bids. At the time 125
of investment, the interest rate on such certificates of deposit 126
under the provisions of this subparagraph shall be a rate not less 127
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than the bond equivalent yield on direct obligations of the United 128
States Treasury with a similar length of maturity. 129
(ii) Direct United States Treasury obligations, 130
the principal and interest of which are fully guaranteed by the 131
government of the United States. 132
(iii) United States government agency, United 133
States government instrumentality or United States 134
government-sponsored enterprise obligations, the principal and 135
interest of which are fully guaranteed by the government of the 136
United States, such as the Government National Mortgage 137
Association; or United States governmental agency, United States 138
government instrumentality or United States government-sponsored 139
enterprise obligations, the principal and interest of which are 140
guaranteed by any United States government agency, United States 141
government instrumentality or United States government-sponsored 142
enterprise contained in a list promulgated by the State Treasurer. 143
(iv) Direct security repurchase agreements and 144
reverse direct security repurchase agreements of any federal book 145
entry of only those securities enumerated in subparagraphs (ii) 146
and (iii) above. "Direct security repurchase agreement" means an 147
agreement under which the state buys, holds for a specified time, 148
and then sells back those securities and obligations enumerated in 149
subparagraphs (ii) and (iii) above. "Reverse direct securities 150
repurchase agreement" means an agreement under which the state 151
sells and after a specified time buys back any of the securities 152
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and obligations enumerated in subparagraphs (ii) and (iii) above. 153
A qualified state depository shall be given preference for such 154
agreements when possible. 155
(v) Bonds issued, assumed or guaranteed by the 156
Country of Israel, provided that: 157
1. Investments in such instruments shall be 158
denominated in United States currency; 159
2. Such bonds must be of investment grade as 160
rated by at least one (1) nationally recognized statistical rating 161
agency; and 162
3. The amount of funds invested in such bonds 163
at any time shall not exceed Fifty Million Dollars 164
($50,000,000.00). 165
(vi) Corporate bonds and taxable municipal bonds; 166
or corporate short-term obligations of corporations or of wholly 167
owned subsidiaries of corporations, whose short-term obligations 168
are rated A-1 or better by Standard and Poor's, rated P-1 or 169
better by Moody's Investment Service, F-1 or better by Fitch 170
Ratings, Ltd., or the equivalent of these ratings if assigned by 171
another United States Securities and Exchange Commission 172
designated Nationally Recognized Statistical Rating Organization. 173
(e) For the purposes of this section, direct 174
obligations issued by the United States of America shall be deemed 175
to include securities of, or other interests in, any open-end or 176
closed-end management type investment company or investment trust 177
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registered under the provisions of 15 USCS Section 80(a)-1 et 178
seq., provided that the portfolio of such investment company or 179
investment trust is limited to direct obligations issued by the 180
United States of America, United States government agencies, 181
United States government instrumentalities or United States 182
government-sponsored enterprises, and to repurchase agreements 183
fully collateralized by direct obligations of the United States of 184
America, United States government agencies, United States 185
government instrumentalities or United States government-sponsored 186
enterprises, and the investment company or investment trust takes 187
delivery of such collateral for the repurchase agreement, either 188
directly or through an authorized custodian. The State Treasurer 189
and the * * * State Fiscal Officer shall review and approve the 190
investment companies and investment trusts in which funds invested 191
under paragraph (d) of this subsection may be invested. The total 192
dollar amount of funds invested in all open-end and closed-end 193
management type investment companies and investment trusts at any 194
one time shall not exceed twenty percent (20%) of the total dollar 195
amount of funds invested under paragraph (d) of this subsection. 196
(f) Investments authorized by subparagraphs (ii) and 197
(iii) of paragraph (d) shall mature on such date or dates as 198
determined by the State Treasurer in the exercise of prudent 199
judgment to generate a favorable return to the state and will 200
allow the monies to be available for use at such time as the 201
monies will be needed for state purposes. However, the maturity 202
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of securities purchased as enumerated in subparagraphs (ii) and 203
(iii) shall not exceed ten (10) years from date of purchase. 204
Special funds shall be considered those funds created 205
constitutionally, statutorily or administratively which are not 206
considered general funds. All funds invested for a period of 207
thirty (30) days or longer under paragraph (d) shall bear a rate 208
at least equal to the current established rate under paragraph (c) 209
of this subsection. 210
(g) Any interest-bearing deposits or certificates of 211
deposit shall not exceed at any time the amount insured by the 212
Federal Deposit Insurance Corporation in any one (1) banking 213
institution, the Federal Savings and Loan Insurance Corporation in 214
any one (1) savings and loan association, or other deposit 215
insurance corporation approved by the State Treasurer, unless the 216
uninsured portion is collateralized by the pledge of securities in 217
the manner provided by Section 27-105-5. 218
(h) Unless otherwise provided, income from investments 219
authorized by the provisions of this subsection shall be credited 220
to the State General Fund. 221
(i) Not more than Five Hundred Thousand Dollars 222
($500,000.00) of funds may be invested with foreign financial 223
institutions, and the State Treasurer may enter into price 224
contracts for the purchase or exchange of foreign currency or 225
other arrangements for currency exchange in an amount not to 226
exceed Five Hundred Thousand Dollars ($500,000.00) upon specific 227
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direction of the Department of Economic and Community Development. 228
The State Treasurer shall promulgate all rules and regulations for 229
applications, qualifications and any other necessary matters for 230
foreign financial institutions. 231
(3) Any liquidating agent of a depository in liquidation, 232
voluntary or involuntary, shall redeem from the state any bonds 233
and securities which have been pledged to secure state funds and 234
such redemption shall be at the par value or market value thereof, 235
whichever is greater; otherwise, The liquidating agent or receiver 236
may pay off the state in full for its deposits and retrieve the 237
pledged securities without regard to par or market value. 238
(4) (a) Upon written request of a state agency, the State 239
Treasurer may grant exceptions to the investment requirements of 240
this chapter if a state agency provides sufficient justification 241
as to why certain public monies may not bear interest under 242
Section 27-105-21 or may not be held within the public funds 243
guaranty pool provided by this chapter. Sufficient justification 244
shall include restrictions by other law or a justification 245
determined to be reasonable by the Treasurer. The State Fiscal 246
Officer shall assist the Treasurer and shall provide any necessary 247
information to make the determination under this subsection 248
(4)(a). 249
(b) To the extent allowed by other law, a state agency 250
shall seek to retain public monies excepted from the requirements 251
of the chapter in a pooled investment vehicle not regulated by 252
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this chapter. If the public monies excepted from the requirements 253
of this chapter cannot be held in a pooled investment vehicle not 254
regulated by this chapter, to the extent allowed by other law, a 255
state agency shall seek to retain public monies excepted from the 256
requirements of the chapter in an interest-bearing account. 257
(5) The State Treasurer and the * * * State Fiscal Officer 258
shall make monthly reports to the Legislative Budget Office 259
containing a full and complete statement of all funds invested by 260
virtue of the provisions of this section and the revenues derived 261
therefrom and the expenses incurred therewith, together with all 262
such other information as may seem to each of them as being 263
pertinent to inform fully the Mississippi Legislature with 264
reference thereto. 265
(6) The State Treasurer shall not deposit any funds on 266
demand deposit with any authorized depository, unless such 267
depository has contracted for interest-bearing accounts or time 268
certificates of deposit. 269
(7) Notwithstanding the foregoing, any financial institution 270
not meeting the prescribed ratio requirement set forth in Section 271
27-105-5 whose accounts are insured by the Federal Deposit 272
Insurance Corporation, or any successor to that insurance 273
corporation, may receive state funds in an amount not exceeding 274
the amount which is insured by such insurance corporations and may 275
qualify as a state depository to the extent of such insurance for 276
this purpose only. The paid-in and earned capital funds of such 277
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financial institution shall not be included in the computations 278
specified in Section 27-105-9(a) and (b). 279
SECTION 5. The following shall be codified as Section 280
27-105-34, Mississippi Code of 1972: 281
27-105-34. (1) Each state agency shall review its funds, 282
accounts or trusts held within and outside of the State Treasury 283
and shall report to the State Treasurer and the Department of 284
Finance and Administration no later than September 30, 2026, the 285
following information: 286
(a) The name of each of its funds, accounts or trusts; 287
(b) The code or number of each of its funds, accounts 288
or trusts; 289
(c) The purpose of each of its funds, accounts or 290
trusts; 291
(d) Whether the fund, account or trust was created by 292
the state agency or by law; 293
(e) If created by law, a reference to the law or 294
statute, as applicable; 295
(f) Whether the fund, account or trust retains the 296
interest earned on monies in it or provides where the interest 297
earned on such monies is transferred; 298
(d) Whether there is any restriction on transferring 299
the interest earned on the monies in the fund, account or trust to 300
the General Fund; 301
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(e) Whether the fund, account or trust can be closed or 302
consolidated with another fund, account or trust due to the fund 303
not having transactional activity other than the deposit of any 304
earned interest; 305
(f) If it is determined that the fund can be closed or 306
consolidated, a statement as to whether the action must be 307
effectuated by legislation; 308
(g) A statement as to whether the fund, account or 309
trust is held in an interest-bearing account regulated by this 310
chapter; 311
(h) If the fund is not being held in an 312
interest-bearing account regulated by this chapter, a statement 313
that an exception has been received from the Treasurer under 314
Section 27-105-33(4); 315
(i) A statement as to whether the fund is held within 316
the public funds guaranty pool under this chapter; 317
(j) If the fund is not being held within the public 318
funds guaranty pool under this chapter, a statement that an 319
exception has been received from the Treasurer under Section 320
27-105-33(4); and 321
(k) Whether an agency has a fund created by law without 322
an associated fund created in the State Treasury. 323
(2) The Treasurer shall review the information submitted by 324
the agencies for accuracy and compile the information submitted in 325
subsection (1) of this section in a report to the Legislative 326
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Budget Office to be delivered by December 15, 2026. The report 327
shall also include a recommendation on which funds should be 328
closed or combined, a listing of idle funds receiving interest 329
allocation from pooled interest investments, and recommended 330
changes to the general laws of Mississippi related to the 331
information provided by the agencies. The Department of Finance 332
and Administration shall assist the Treasurer with any information 333
necessary to complete the report. 334
(3) Beginning with calendar year 2028 and each calendar year 335
following a statewide election as provided in Section 23-15-193 336
thereafter: 337
(a) All state agencies shall provide the information 338
required by subsection (1) of this section to the department and 339
the Treasurer no later than September 30; and 340
(b) The Treasurer shall complete the required reporting 341
in subsection (2) of this section and provide it in a report to 342
the Legislative Budget Office and the Senate and House Legislative 343
Services Offices by December 15. 344
(4) In addition to the four-year report, the state agencies 345
shall file interim reports with the Treasurer including the 346
information required by subsection (1) of this section for any new 347
funds created by state agencies by September 30 of each year when 348
a four-year report is not required. The Treasurer shall compile 349
the interim reports under this subsection and provide it in a 350
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report to the Legislative Budget Office by December 15 of each 351
year when a four-year report is not required. 352
(5) The State Fiscal Officer may disapprove of payments from 353
the State Treasury if a state agency does not timely provide the 354
information required by this section. 355
SECTION 6. Section 27-105-1, Mississippi Code of 1972, is 356
amended as follows: 357
27-105-1. Wherever the term "State Depository Commission" 358
appears in any law, the same shall mean the State Treasurer. All 359
funds deposited or invested by and through the State Treasurer 360
shall be deposited in the manner prescribed in Section 27-105-33. 361
All such deposits shall be subject to payment when demanded by the 362
State Treasurer, except time deposits as provided by Section 363
27-105-33. Such time deposits shall be subject to payment as 364
specified by the contract or certificate of deposit. All deposits 365
made by the State Treasurer shall also be subject to such 366
regulations as are imposed by law and by rules promulgated by the 367
State Treasurer for such deposits. The State Treasurer, a state 368
institution or a state agency may compensate depositories for the 369
expense in maintaining deposit accounts and in handling items 370
related thereto, subject to approval by the State Treasurer 371
and * * * State Fiscal Officer. 372
The Commissioner of Banking and Consumer Finance shall serve 373
to advise the State Treasurer as to the condition and safety as a 374
state depository of any financial institution, especially as to 375
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ST: State Treasury Efficiency and Transparency
Act; enact.
any impairment of capital or surplus. Such information or 376
recommendation shall be considered confidential information and 377
shall not be disclosed. 378
SECTION 7. This act shall take effect and be in force from 379
and after its passage. 380