Mississippi Energy Infrastructure Fund; create.

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To: Energy; Appropriations
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Carter

SENATE BILL NO. 2612

AN ACT TO AMEND SECTION 57-39-39, MISSISSIPPI CODE OF 1972, 1
TO INSERT LEGISLATIVE FINDINGS; TO CREATE THE MISSISSIPPI ENERGY 2
INFRASTRUCTURE FUND; TO DEFINE TERMS; TO PROVIDE FOR USES OF THE 3
FUNDS; TO AUTHORIZE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO MAKE 4
GRANTS, LOANS OR PROVIDE ANY OTHER FINANCIAL ASSISTANCE; TO 5
REQUIRE ANY LOCAL ENTITY DESIRING A GRANT, LOAN OR OTHER FINANCIAL 6
ASSISTANCE TO SUBMIT AN APPLICATION; TO PRESCRIBE APPLICATION 7
REQUIREMENTS; TO REQUIRE THE AUTHORITY TO DETERMINE WHETHER THE 8
PROJECT MEETS THE DEFINITION OF AN APPROVED PROJECT AND WHETHER TO 9
PROVIDE THE ASSISTANCE REQUESTED IN THE FORM OF A GRANT, LOAN OR 10
OTHER FINANCIAL ASSISTANCE; TO GRANT THE MISSISSIPPI DEVELOPMENT 11
AUTHORITY SOLE DISCRETION IN PROVIDING GRANTS, LOANS OR PROVIDING 12
OTHER FINANCIAL ASSISTANCE; TO EXEMPT CERTAIN CONTRACTS FROM THE 13
PROVISIONS OF SECTION 37-7-13; TO PROVIDE LIMITED EXCEPTIONS TO 14
THE PROVISIONS OF SECTION 31-7-13; TO PROHIBIT AN ELECTRIC UTILITY 15
PROVIDER FROM BEING CONSIDERED ELIGIBLE TO BE A DIRECT RECIPIENT 16
OF FUNDING; TO REQUIRE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO 17
PROMULGATE RULES AND REGULATIONS; AND FOR RELATED PURPOSES. 18
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 19
SECTION 1. Section 57-39-39, Mississippi Code of 1972, is 20
amended as follows: 21
57-39-39. (1) The Legislature finds and determines that: 22
(a) There exists a need for effectively utilizing the 23
state's energy infrastructure to encourage and grow economic 24
development opportunities in this state. 25
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(b) The authority granted and the purposes to be 26
accomplished hereby are proper governmental and public purposes 27
and that the resulting economic benefits to the state are of 28
paramount importance, mandating that the provisions of this 29
chapter be liberally construed and applied in order to advance the 30
public purposes. 31
( * * *2) There is hereby created in the State Treasury a 32
fund to be known as the Energy Development Fund. Monies in such 33
fund are reserved exclusively for: 34
(a) Promoting the development of Mississippi's energy 35
resources. 36
(b) Developing projects under this section which will 37
demonstrate a realistic promise of making a significant energy 38
contribution to the State of Mississippi. 39
(c) Effectively utilizing the state's existing 40
alternative and conventional energy resources to foster economic 41
and social improvements in the state. 42
( * * *3) The * * * authority will administer the fund. The 43
authority will establish policy and guidelines for use of the fund 44
not later than one hundred twenty (120) days after July 1, 2013. 45
( * * *4) The * * * authority will submit to the Governor on 46
or before December 31 of each year a comprehensive report on the 47
operation of the fund. 48
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SECTION 2. (1) As used in this section, the following terms 49
have the meanings ascribed herein unless the context clearly 50
requires otherwise: 51
(a) "Approved project" means any project that: 52
(i) Locates or expands in this state with 53
significant regional impact as determined by the authority; or 54
(ii) Will improve the marketability of potential 55
economic development sites or facilitates a potential economic 56
development project by obtaining equipment and facilities related 57
to the approved project as determined by the authority. 58
(b) "Authority" means the Mississippi Development 59
Authority. 60
(c) "Facilities related to the approved project" means 61
and includes any of the following, as they may pertain to the 62
approved project: 63
(i) Priority production placement agreements with 64
key manufacturers of long lead-time electrical equipment, 65
including, but not limited to, transformers, substations, 66
switchgear, and specialized circuit breakers for an approved 67
project; 68
(ii) Notwithstanding subsection (5)of this 69
section, site-specific infrastructure development, including, but 70
not limited to, the extension of transmission lines and pipelines; 71
enhancements or expansions to substation capacity; the acquisition 72
of rights-of-way for key transmission and pipeline infrastructure 73
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located near key industrial or commercial sites, as identified by 74
the authority for development; and transformers, breakers, and 75
other equipment and facilities necessary for processing, 76
converting, and delivering such electricity into voltages 77
necessary or useful for an approved project; and 78
(iii) Any other energy related infrastructure and 79
equipment for an approved project as determined by the authority. 80
(d) "Project" means any industrial, commercial, 81
research and development, warehousing, distribution, 82
transportation, processing, mining, refining, data center, United 83
States government or tourism enterprise together with all 84
equipment and real property required for construction, maintenance 85
and operation of the enterprise that is approved by the authority. 86
(e) "Local entity" means any county, municipality or 87
public or private nonprofit local economic development entity 88
including, but not limited to, local authorities, commissions or 89
other entities created by local and private legislation or 90
pursuant to Section 19-5-99. 91
(2) (a) There is created a special fund in the State 92
Treasury to be known as the "Mississippi Energy Infrastructure 93
Fund" which shall consist of money from any source designated for 94
deposit into the fund. Unexpended amounts remaining in the fund 95
at the end of a fiscal year shall not lapse into the State General 96
Fund, and any interest earned on amounts in the fund shall be 97
deposited to the credit of the fund. Money in the fund shall be 98
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disbursed by the authority for the purposes authorized in 99
subsection (3) of this section. 100
(b) Monies in the fund that are derived from the 101
proceeds of bonds or provided by the Legislature may be used to 102
reimburse reasonable actual and necessary costs incurred by the 103
authority for the administration of the various grant, loan and 104
financial incentive programs administered by the authority. An 105
accounting of actual costs incurred for which reimbursement is 106
sought shall be maintained by the authority. Reimbursement of 107
reasonable actual and necessary costs shall not exceed three 108
percent (3%) of the proceeds of bonds issued or the monies 109
provided by the Legislature. Reimbursements under this subsection 110
shall satisfy any applicable federal tax law requirements. 111
(3) The authority shall establish a program to make grants, 112
loans or provide any other financial assistance as determined by 113
the authority from the Mississippi Energy Infrastructure Fund to 114
local entities to construct, equip an approved project or 115
otherwise provide facilities related to the approved project. 116
Local entities are authorized to accept grants and enter into 117
loans or accept other financial assistance as determined by the 118
authority authorized under the program, and to sell, lease, donate 119
or otherwise dispose of an approved project, any equipment or 120
property related to the approved project, and any facilities 121
related to the approved project in whole or in part as determined 122
by the authority. 123
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(4) (a) Any local entity desiring a grant, loan or other 124
financial assistance under this section shall submit an 125
application to the authority which shall include, at a minimum: 126
(i) Evidence that the project meets the definition 127
of an approved project; 128
(ii) A description, including the cost, of the 129
requested assistance; 130
(iii) A description of the purpose for which the 131
assistance is requested; and 132
(iv) Any other information required by the 133
authority. 134
(b) The authority shall require that binding 135
commitments be entered into requiring that: 136
(i) The minimum requirements of this section and 137
such other requirements as the authority considers proper shall be 138
met; and 139
(ii) If such requirements are not met, the 140
authority may require all or a portion of the funds provided by 141
this section be repaid. 142
(c) Upon receipt of the application from a local entity 143
for a grant, loan or other financial assistance under this 144
section, the authority shall determine whether the project meets 145
the definition of an approved project and determine whether to 146
provide the assistance requested in the form of a grant, loan or 147
other financial assistance. 148
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(d) The authority shall have sole discretion in 149
providing grants, loans, or providing other financial assistance 150
under this section. The terms of a grant, loan, or other 151
financial assistance provided under this section and the manner of 152
repayment of any grant, loan or other financial assistance shall 153
be within the discretion of the authority. Repayments of grants, 154
loans or other financial assistance made under this section shall 155
be deposited to the credit of the Mississippi Energy 156
Infrastructure Fund. 157
(5) (a) Contracts, by local entities, including, but not 158
limited to, equipment, design and construction contracts, for the 159
acquisition, purchase, construction or installation of an approved 160
project or facilities related to the approved project shall be 161
exempt from the provisions of Section 31-7-13 if the authority 162
finds and records such finding on its minutes, that because of 163
availability or the particular nature of an approved project or 164
facilities related to the approved project, it would not be in the 165
public interest or would less effectively achieve the purposes of 166
this section to enter into such contracts on the basis of Section 167
31-7-13; and 168
(b) When the requirements of paragraph (a) of this 169
subsection are met: 170
(i) The requirements of Section 31-7-13 shall not 171
apply to such contracts; and 172
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(ii) The contracts may be entered into on the 173
basis of negotiation. 174
(6) An electric utility provider shall not be eligible to be 175
a direct recipient of funding from the Mississippi Energy 176
Infrastructure Fund. 177
(7) The authority shall promulgate rules and regulations, in 178
accordance with the Mississippi Administrative Procedures Law, for 179
the implementation of this section. 180
SECTION 3. Section 31-7-13, Mississippi Code of 1972, is 181
amended as follows: 182
31-7-13. All agencies and governing authorities shall 183
purchase their commodities and printing; contract for garbage 184
collection or disposal; contract for solid waste collection or 185
disposal; contract for sewage collection or disposal; contract for 186
public construction; and contract for rentals as herein provided. 187
(a) Bidding procedure for purchases not over $5,000.00. 188
Purchases which do not involve an expenditure of more than Five 189
Thousand Dollars ($5,000.00), exclusive of freight or shipping 190
charges, may be made without advertising or otherwise requesting 191
competitive bids. However, nothing contained in this paragraph 192
(a) shall be construed to prohibit any agency or governing 193
authority from establishing procedures which require competitive 194
bids on purchases of Five Thousand Dollars ($5,000.00) or less. 195
(b) Bidding procedure for purchases over $5,000.00 but 196
not over $75,000.00. Purchases which involve an expenditure of 197
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more than Five Thousand Dollars ($5,000.00) but not more than 198
Seventy-five Thousand Dollars ($75,000.00), exclusive of freight 199
and shipping charges, may be made from the lowest and best bidder 200
without publishing or posting advertisement for bids, provided at 201
least two (2) competitive written bids have been obtained. Any 202
state agency or community or junior college purchasing commodities 203
or procuring construction pursuant to this paragraph (b) may 204
authorize its purchasing agent, or his designee, to accept the 205
lowest competitive written bid under Seventy-five Thousand Dollars 206
($75,000.00). Any governing authority purchasing commodities 207
pursuant to this paragraph (b) may authorize its purchasing agent, 208
or his designee, with regard to governing authorities other than 209
counties, or its purchase clerk, or his designee, with regard to 210
counties, to accept the lowest and best competitive written bid. 211
Such authorization shall be made in writing by the governing 212
authority and shall be maintained on file in the primary office of 213
the agency and recorded in the official minutes of the governing 214
authority, as appropriate. The purchasing agent or the purchase 215
clerk, or his designee, as the case may be, and not the governing 216
authority, shall be liable for any penalties and/or damages as may 217
be imposed by law for any act or omission of the purchasing agent 218
or purchase clerk, or his designee, constituting a violation of 219
law in accepting any bid without approval by the governing 220
authority. The term "competitive written bid" shall mean a bid 221
submitted on a bid form furnished by the buying agency or 222
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governing authority and signed by authorized personnel 223
representing the vendor, or a bid submitted on a vendor's 224
letterhead or identifiable bid form and signed by authorized 225
personnel representing the vendor. "Competitive" shall mean that 226
the bids are developed based upon comparable identification of the 227
needs and are developed independently and without knowledge of 228
other bids or prospective bids. Any bid item for construction in 229
excess of Five Thousand Dollars ($5,000.00) shall be broken down 230
by components to provide detail of component description and 231
pricing. These details shall be submitted with the written bids 232
and become part of the bid evaluation criteria. Bids may be 233
submitted by facsimile, electronic mail or other generally 234
accepted method of information distribution. Bids submitted by 235
electronic transmission shall not require the signature of the 236
vendor's representative unless required by agencies or governing 237
authorities. 238
(c) Bidding procedure for purchases over $75,000.00. 239
(i) Publication requirement. 240
1. Purchases which involve an expenditure of 241
more than Seventy-five Thousand Dollars ($75,000.00), exclusive of 242
freight and shipping charges, may be made from the lowest and best 243
bidder after advertising for competitive bids once each week for 244
two (2) consecutive weeks in a regular newspaper published in the 245
county or municipality in which such agency or governing authority 246
is located. However, all American Recovery and Reinvestment Act 247
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projects in excess of Twenty-five Thousand Dollars ($25,000.00) 248
shall be bid. All references to American Recovery and 249
Reinvestment Act projects in this section shall not apply to 250
programs identified in Division B of the American Recovery and 251
Reinvestment Act. 252
2. Reverse auctions shall be the primary 253
method for receiving bids during the bidding process. If a 254
purchasing entity determines that a reverse auction is not in the 255
best interest of the state, then that determination must be 256
approved by the Public Procurement Review Board. The purchasing 257
entity shall submit a detailed explanation of why a reverse 258
auction would not be in the best interest of the state and present 259
an alternative process to be approved by the Public Procurement 260
Review Board. If the Public Procurement Review Board authorizes 261
the purchasing entity to solicit bids with a method other than 262
reverse auction, then the purchasing entity may designate the 263
other methods by which the bids will be received, including, but 264
not limited to, bids sealed in an envelope, bids received 265
electronically in a secure system, or bids received by any other 266
method that promotes open competition and has been approved by the 267
Office of Purchasing and Travel. However, reverse auction shall 268
not be used for any public contract for design, construction, 269
improvement, repair or remodeling of any public facilities, 270
including the purchase of materials, supplies, equipment or goods 271
for same and including buildings, roads and bridges. The Public 272
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Procurement Review Board must approve any contract entered into by 273
alternative process. The provisions of this item 2 shall not 274
apply to the individual state institutions of higher learning. 275
The provisions of this item 2 requiring reverse auction as the 276
primary method of receiving bids shall not apply to term contract 277
purchases as provided in paragraph (n) of this section; however, a 278
purchasing entity may, in its discretion, utilize reverse auction 279
for such purchases. The provisions of this item 2 shall not apply 280
to individual public schools, including public charter schools and 281
public school districts, only when purchasing copyrighted 282
educational supplemental materials and software as a service 283
product. For such purchases, a local school board may authorize a 284
purchasing entity in its jurisdiction to use a Request for 285
Qualifications which promotes open competition and meets the 286
requirements of the Office of Purchasing and Travel. 287
3. The date as published for the bid opening 288
shall not be less than seven (7) working days after the last 289
published notice; however, if the purchase involves a construction 290
project in which the estimated cost is in excess of Seventy-five 291
Thousand Dollars ($75,000.00), such bids shall not be opened in 292
less than fifteen (15) working days after the last notice is 293
published and the notice for the purchase of such construction 294
shall be published once each week for two (2) consecutive weeks. 295
The notice of intention to let contracts or purchase equipment 296
shall state the time and place at which bids shall be received, 297
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list the contracts to be made or types of equipment or supplies to 298
be purchased, and, if all plans and/or specifications are not 299
published, refer to the plans and/or specifications on file. If 300
there is no newspaper published in the county or municipality, 301
then such notice shall be given by posting same at the courthouse, 302
or for municipalities at the city hall, and at two (2) other 303
public places in the county or municipality, and also by 304
publication once each week for two (2) consecutive weeks in some 305
newspaper having a general circulation in the county or 306
municipality in the above-provided manner. On the same date that 307
the notice is submitted to the newspaper for publication, the 308
agency or governing authority involved shall mail written notice 309
to, or provide electronic notification to the main office of the 310
Mississippi Procurement Technical Assistance Program under the 311
Mississippi Development Authority that contains the same 312
information as that in the published notice. Within one (1) 313
working day of the contract award, the agency or governing 314
authority shall post to the designated web page maintained by the 315
Department of Finance and Administration, notice of the award, 316
including the award recipient, the contract amount, and a brief 317
summary of the contract in accordance with rules promulgated by 318
the department. Within one (1) working day of the contract 319
execution, the agency or governing authority shall post to the 320
designated web page maintained by the Department of Finance and 321
Administration a summary of the executed contract and make a copy 322
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of the appropriately redacted contract documents available for 323
linking to the designated web page in accordance with the rules 324
promulgated by the department. The information provided by the 325
agency or governing authority shall be posted to the web page 326
until the project is completed. 327
4. Agencies and governing authorities using 328
federal funds for the procurement of any good or service, 329
including exempt personal and professional services, must comply 330
with the Uniform Administrative Requirements, Cost Principles, and 331
Audit Requirements for Federal Awards - Subpart D - Post Federal 332
Award Requirements Procurement Standards, in accordance with 2 CFR 333
200.317 through 2 CFR 200.327. 334
(ii) Bidding process amendment procedure. If all 335
plans and/or specifications are published in the notification, 336
then the plans and/or specifications may not be amended. If all 337
plans and/or specifications are not published in the notification, 338
then amendments to the plans/specifications, bid opening date, bid 339
opening time and place may be made, provided that the agency or 340
governing authority maintains a list of all prospective bidders 341
who are known to have received a copy of the bid documents and all 342
such prospective bidders are sent copies of all amendments. This 343
notification of amendments may be made via mail, facsimile, 344
electronic mail or other generally accepted method of information 345
distribution. No addendum to bid specifications may be issued 346
within two (2) working days of the time established for the 347
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receipt of bids unless such addendum also amends the bid opening 348
to a date not less than five (5) working days after the date of 349
the addendum. 350
(iii) Filing requirement. In all cases involving 351
governing authorities, before the notice shall be published or 352
posted, the plans or specifications for the construction or 353
equipment being sought shall be filed with the clerk of the board 354
of the governing authority. In addition to these requirements, a 355
bid file shall be established which shall indicate those vendors 356
to whom such solicitations and specifications were issued, and 357
such file shall also contain such information as is pertinent to 358
the bid. 359
(iv) Specification restrictions. 360
1. Specifications pertinent to such bidding 361
shall be written so as not to exclude comparable equipment of 362
domestic manufacture. However, if valid justification is 363
presented, the Department of Finance and Administration or the 364
board of a governing authority may approve a request for specific 365
equipment necessary to perform a specific job. Further, such 366
justification, when placed on the minutes of the board of a 367
governing authority, may serve as authority for that governing 368
authority to write specifications to require a specific item of 369
equipment needed to perform a specific job. In addition to these 370
requirements, from and after July 1, 1990, vendors of relocatable 371
classrooms and the specifications for the purchase of such 372
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relocatable classrooms published by local school boards shall meet 373
all pertinent regulations of the State Board of Education, 374
including prior approval of such bid by the State Department of 375
Education. 376
2. Specifications for construction projects 377
may include an allowance for commodities, equipment, furniture, 378
construction materials or systems in which prospective bidders are 379
instructed to include in their bids specified amounts for such 380
items so long as the allowance items are acquired by the vendor in 381
a commercially reasonable manner and approved by the 382
agency/governing authority. Such acquisitions shall not be made 383
to circumvent the public purchasing laws. 384
(v) Electronic bids. Agencies and governing 385
authorities shall provide a secure electronic interactive system 386
for the submittal of bids requiring competitive bidding that shall 387
be an additional bidding option for those bidders who choose to 388
submit their bids electronically. The Department of Finance and 389
Administration shall provide, by regulation, the standards that 390
agencies must follow when receiving electronic bids. Agencies and 391
governing authorities shall make the appropriate provisions 392
necessary to accept electronic bids from those bidders who choose 393
to submit their bids electronically for all purchases requiring 394
competitive bidding under this section. Any special condition or 395
requirement for the electronic bid submission shall be specified 396
in the advertisement for bids required by this section. Agencies 397
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or governing authorities that are currently without available high 398
speed Internet access shall be exempt from the requirement of this 399
subparagraph (v) until such time that high speed Internet access 400
becomes available. Any county having a population of less than 401
twenty thousand (20,000) shall be exempt from the provisions of 402
this subparagraph (v). Any municipality having a population of 403
less than ten thousand (10,000) shall be exempt from the 404
provisions of this subparagraph (v). The provisions of this 405
subparagraph (v) shall not require any bidder to submit bids 406
electronically. When construction bids are submitted 407
electronically, the requirement for including a certificate of 408
responsibility, or a statement that the bid enclosed does not 409
exceed Fifty Thousand Dollars ($50,000.00), on the exterior of the 410
bid envelope as indicated in Section 31-3-21(1) and (2) shall be 411
deemed in compliance with by including same as an attachment with 412
the electronic bid submittal. 413
(d) Lowest and best bid decision procedure. 414
(i) Decision procedure. Purchases may be made 415
from the lowest and best bidder. In determining the lowest and 416
best bid, freight and shipping charges shall be included. 417
Life-cycle costing, total cost bids, warranties, guaranteed 418
buy-back provisions and other relevant provisions may be included 419
in the best bid calculation. All best bid procedures for state 420
agencies must be in compliance with regulations established by the 421
Department of Finance and Administration. If any governing 422
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authority accepts a bid other than the lowest bid actually 423
submitted, it shall place on its minutes detailed calculations and 424
narrative summary showing that the accepted bid was determined to 425
be the lowest and best bid, including the dollar amount of the 426
accepted bid and the dollar amount of the lowest bid. No agency 427
or governing authority shall accept a bid based on items not 428
included in the specifications. 429
(ii) Decision procedure for Certified Purchasing 430
Offices. In addition to the decision procedure set forth in 431
subparagraph (i) of this paragraph (d), Certified Purchasing 432
Offices may also use the following procedure: Purchases may be 433
made from the bidder offering the best value. In determining the 434
best value bid, freight and shipping charges shall be included. 435
Life-cycle costing, total cost bids, warranties, guaranteed 436
buy-back provisions, documented previous experience, training 437
costs and other relevant provisions, including, but not limited 438
to, a bidder having a local office and inventory located within 439
the jurisdiction of the governing authority, may be included in 440
the best value calculation. This provision shall authorize 441
Certified Purchasing Offices to utilize a Request For Proposals 442
(RFP) process when purchasing commodities. All best value 443
procedures for state agencies must be in compliance with 444
regulations established by the Department of Finance and 445
Administration. No agency or governing authority shall accept a 446
bid based on items or criteria not included in the specifications. 447
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(iii) Decision procedure for Prequalified 448
Construction. In addition to the decision procedure set forth in 449
subparagraph (i) of this paragraph (d), where purchase involves 450
renovation, restoration, or both, of the State Capitol Building or 451
any other historical building designated for at least five (5) 452
years as a Mississippi Landmark by the Board of Trustees of the 453
Department of Archives and History under the authority of Sections 454
39-7-7 and 39-7-11, or for any other construction procurement with 455
a minimum construction cost of Ten Million Dollars 456
($10,000,000.00) where the agency or governing authority has 457
determined that prequalification of bidders is in the best 458
interest of the state, the agency or governing authority may use 459
the following procedure: Purchases may be made from the lowest 460
and best prequalified bidder. Solicitation of the 461
prequalification of bidders shall be in accordance with paragraph 462
(c) of this section and shall be determined not less than fifteen 463
(15) working days before the prequalified bidders are invited to 464
submit bids. Prequalification criteria shall be limited to 465
bidder's and proposed sub-contractor's knowledge and experience on 466
projects of similar size and scope, past performance, project 467
management team and financial stability. All best bid and 468
prequalification procedures for state agencies must be in 469
compliance with regulations established by the Department of 470
Finance and Administration. If any governing authority accepts a 471
bid other than the lowest bid actually submitted, it shall place 472
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on its minutes detailed calculations and narrative summary showing 473
that the accepted bid was determined to be the lowest and best 474
bid, including the dollar amount of the accepted bid and the 475
dollar amount of the lowest bid. No agency or governing authority 476
shall accept a bid based on items not included in the 477
specifications. 478
(iv) Construction project negotiations authority. 479
If the lowest and best bid is not more than ten percent (10%) 480
above the amount of funds allocated for a public construction or 481
renovation project, then the agency or governing authority shall 482
be permitted to negotiate with the lowest bidder in order to enter 483
into a contract for an amount not to exceed the funds allocated. 484
(e) Lease-purchase authorization. For the purposes of 485
this section, the term "equipment" shall mean equipment, furniture 486
and, if applicable, associated software and other applicable 487
direct costs associated with the acquisition. Any lease-purchase 488
of equipment which an agency is not required to lease-purchase 489
under the master lease-purchase program pursuant to Section 490
31-7-10 and any lease-purchase of equipment which a governing 491
authority elects to lease-purchase may be acquired by a 492
lease-purchase agreement under this paragraph (e). Lease-purchase 493
financing may also be obtained from the vendor or from a 494
third-party source after having solicited and obtained at least 495
two (2) written competitive bids, as defined in paragraph (b) of 496
this section, for such financing without advertising for such 497
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bids. Solicitation for the bids for financing may occur before or 498
after acceptance of bids for the purchase of such equipment or, 499
where no such bids for purchase are required, at any time before 500
the purchase thereof. No such lease-purchase agreement shall be 501
for an annual rate of interest which is greater than the overall 502
maximum interest rate to maturity on general obligation 503
indebtedness permitted under Section 75-17-101, and the term of 504
such lease-purchase agreement shall not exceed the useful life of 505
equipment covered thereby as determined according to the upper 506
limit of the asset depreciation range (ADR) guidelines for the 507
Class Life Asset Depreciation Range System established by the 508
Internal Revenue Service pursuant to the United States Internal 509
Revenue Code and regulations thereunder as in effect on December 510
31, 1980, or comparable depreciation guidelines with respect to 511
any equipment not covered by ADR guidelines. Any lease-purchase 512
agreement entered into pursuant to this paragraph (e) may contain 513
any of the terms and conditions which a master lease-purchase 514
agreement may contain under the provisions of Section 31-7-10(5), 515
and shall contain an annual allocation dependency clause 516
substantially similar to that set forth in Section 31-7-10(8). 517
Each agency or governing authority entering into a lease-purchase 518
transaction pursuant to this paragraph (e) shall maintain with 519
respect to each such lease-purchase transaction the same 520
information as required to be maintained by the Department of 521
Finance and Administration pursuant to Section 31-7-10(13). 522
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However, nothing contained in this section shall be construed to 523
permit agencies to acquire items of equipment with a total 524
acquisition cost in the aggregate of less than Ten Thousand 525
Dollars ($10,000.00) by a single lease-purchase transaction. All 526
equipment, and the purchase thereof by any lessor, acquired by 527
lease-purchase under this paragraph and all lease-purchase 528
payments with respect thereto shall be exempt from all Mississippi 529
sales, use and ad valorem taxes. Interest paid on any 530
lease-purchase agreement under this section shall be exempt from 531
State of Mississippi income taxation. 532
(f) Alternate bid authorization. When necessary to 533
ensure ready availability of commodities for public works and the 534
timely completion of public projects, no more than two (2) 535
alternate bids may be accepted by a governing authority for 536
commodities. No purchases may be made through use of such 537
alternate bids procedure unless the lowest and best bidder cannot 538
deliver the commodities contained in his bid. In that event, 539
purchases of such commodities may be made from one (1) of the 540
bidders whose bid was accepted as an alternate. 541
(g) Construction contract change authorization. In the 542
event a determination is made by an agency or governing authority 543
after a construction contract is let that changes or modifications 544
to the original contract are necessary or would better serve the 545
purpose of the agency or the governing authority, such agency or 546
governing authority may, in its discretion, order such changes 547
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pertaining to the construction that are necessary under the 548
circumstances without the necessity of further public bids; 549
provided that such change shall be made in a commercially 550
reasonable manner and shall not be made to circumvent the public 551
purchasing statutes. In addition to any other authorized person, 552
the architect or engineer hired by an agency or governing 553
authority with respect to any public construction contract shall 554
have the authority, when granted by an agency or governing 555
authority, to authorize changes or modifications to the original 556
contract without the necessity of prior approval of the agency or 557
governing authority when any such change or modification is less 558
than one percent (1%) of the total contract amount. The agency or 559
governing authority may limit the number, manner or frequency of 560
such emergency changes or modifications. 561
(h) Petroleum purchase alternative. In addition to 562
other methods of purchasing authorized in this chapter, when any 563
agency or governing authority shall have a need for gas, diesel 564
fuel, oils and/or other petroleum products in excess of the amount 565
set forth in paragraph (a) of this section, such agency or 566
governing authority may purchase the commodity after having 567
solicited and obtained at least two (2) competitive written bids, 568
as defined in paragraph (b) of this section. If two (2) 569
competitive written bids are not obtained, the entity shall comply 570
with the procedures set forth in paragraph (c) of this section. 571
In the event any agency or governing authority shall have 572
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advertised for bids for the purchase of gas, diesel fuel, oils and 573
other petroleum products and coal and no acceptable bids can be 574
obtained, such agency or governing authority is authorized and 575
directed to enter into any negotiations necessary to secure the 576
lowest and best contract available for the purchase of such 577
commodities. 578
(i) Road construction petroleum products price 579
adjustment clause authorization. Any agency or governing 580
authority authorized to enter into contracts for the construction, 581
maintenance, surfacing or repair of highways, roads or streets, 582
may include in its bid proposal and contract documents a price 583
adjustment clause with relation to the cost to the contractor, 584
including taxes, based upon an industry-wide cost index, of 585
petroleum products including asphalt used in the performance or 586
execution of the contract or in the production or manufacture of 587
materials for use in such performance. Such industry-wide index 588
shall be established and published monthly by the Mississippi 589
Department of Transportation with a copy thereof to be mailed, 590
upon request, to the clerks of the governing authority of each 591
municipality and the clerks of each board of supervisors 592
throughout the state. The price adjustment clause shall be based 593
on the cost of such petroleum products only and shall not include 594
any additional profit or overhead as part of the adjustment. The 595
bid proposals or document contract shall contain the basis and 596
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methods of adjusting unit prices for the change in the cost of 597
such petroleum products. 598
(j) State agency emergency purchase procedure. If the 599
governing board or the executive head, or his designees, of any 600
agency of the state shall determine that an emergency exists in 601
regard to the purchase of any commodities or repair contracts, so 602
that the delay incident to giving opportunity for competitive 603
bidding would be detrimental to the interests of the state, then 604
the head of such agency, or his designees, shall file with the 605
Department of Finance and Administration (i) a statement 606
explaining the conditions and circumstances of the emergency, 607
which shall include a detailed description of the events leading 608
up to the situation and the negative impact to the entity if the 609
purchase is made following the statutory requirements set forth in 610
paragraph (a), (b) or (c) of this section, and (ii) a certified 611
copy of the appropriate minutes of the board of such agency 612
requesting the emergency purchase, if applicable. Upon receipt of 613
the statement and applicable board certification, the State Fiscal 614
Officer, or his designees, may, in writing, authorize the purchase 615
or repair without having to comply with competitive bidding 616
requirements. 617
If the governing board or the executive head, or his 618
designees, of any agency determines that an emergency exists in 619
regard to the purchase of any commodities or repair contracts, so 620
that the delay incident to giving opportunity for competitive 621
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bidding would threaten the health or safety of any person, or the 622
preservation or protection of property, then the provisions in 623
this section for competitive bidding shall not apply, and any 624
officer or agent of the agency having general or specific 625
authority for making the purchase or repair contract shall approve 626
the bill presented for payment, and he shall certify in writing 627
from whom the purchase was made, or with whom the repair contract 628
was made. 629
Total purchases made under this paragraph (j) shall only be 630
for the purpose of meeting needs created by the emergency 631
situation. Following the emergency purchase, documentation of the 632
purchase, including a description of the commodity purchased, the 633
purchase price thereof and the nature of the emergency shall be 634
filed with the Department of Finance and Administration. Any 635
contract awarded pursuant to this paragraph (j) shall not exceed a 636
term of one (1) year. 637
Purchases under the grant program established under Section 638
37-68-7 in response to COVID-19 and the directive that school 639
districts create a distance learning plan and fulfill technology 640
needs expeditiously shall be deemed an emergency purchase for 641
purposes of this paragraph (j). 642
(k) Governing authority emergency purchase procedure. 643
If the governing authority, or the governing authority acting 644
through its designee, shall determine that an emergency exists in 645
regard to the purchase of any commodities or repair contracts, so 646
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that the delay incident to giving opportunity for competitive 647
bidding would be detrimental to the interest of the governing 648
authority, then the provisions herein for competitive bidding 649
shall not apply and any officer or agent of such governing 650
authority having general or special authority therefor in making 651
such purchase or repair shall approve the bill presented therefor, 652
and he shall certify in writing thereon from whom such purchase 653
was made, or with whom such a repair contract was made. At the 654
board meeting next following the emergency purchase or repair 655
contract, documentation of the purchase or repair contract, 656
including a description of the commodity purchased, the price 657
thereof and the nature of the emergency shall be presented to the 658
board and shall be placed on the minutes of the board of such 659
governing authority. Purchases under the grant program 660
established under Section 37-68-7 in response to COVID-19 and the 661
directive that school districts create a distance learning plan 662
and fulfill technology needs expeditiously shall be deemed an 663
emergency purchase for purposes of this paragraph (k). 664
(l) Hospital purchase, lease-purchase and lease 665
authorization. 666
(i) The commissioners or board of trustees of any 667
public hospital may contract with such lowest and best bidder for 668
the purchase or lease-purchase of any commodity under a contract 669
of purchase or lease-purchase agreement whose obligatory payment 670
terms do not exceed five (5) years. 671
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(ii) In addition to the authority granted in 672
subparagraph (i) of this paragraph (l), the commissioners or board 673
of trustees is authorized to enter into contracts for the lease of 674
equipment or services, or both, which it considers necessary for 675
the proper care of patients if, in its opinion, it is not 676
financially feasible to purchase the necessary equipment or 677
services. Any such contract for the lease of equipment or 678
services executed by the commissioners or board shall not exceed a 679
maximum of five (5) years' duration and shall include a 680
cancellation clause based on unavailability of funds. If such 681
cancellation clause is exercised, there shall be no further 682
liability on the part of the lessee. Any such contract for the 683
lease of equipment or services executed on behalf of the 684
commissioners or board that complies with the provisions of this 685
subparagraph (ii) shall be excepted from the bid requirements set 686
forth in this section. 687
(m) Exceptions from bidding requirements. Excepted 688
from bid requirements are: 689
(i) Purchasing agreements approved by department. 690
Purchasing agreements, contracts and maximum price regulations 691
executed or approved by the Department of Finance and 692
Administration. 693
(ii) Outside equipment repairs. Repairs to 694
equipment, when such repairs are made by repair facilities in the 695
private sector; however, engines, transmissions, rear axles and/or 696
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other such components shall not be included in this exemption when 697
replaced as a complete unit instead of being repaired and the need 698
for such total component replacement is known before disassembly 699
of the component; however, invoices identifying the equipment, 700
specific repairs made, parts identified by number and name, 701
supplies used in such repairs, and the number of hours of labor 702
and costs therefor shall be required for the payment for such 703
repairs. 704
(iii) In-house equipment repairs. Purchases of 705
parts for repairs to equipment, when such repairs are made by 706
personnel of the agency or governing authority; however, entire 707
assemblies, such as engines or transmissions, shall not be 708
included in this exemption when the entire assembly is being 709
replaced instead of being repaired. 710
(iv) Raw gravel or dirt. Raw unprocessed deposits 711
of gravel or fill dirt which are to be removed and transported by 712
the purchaser. 713
(v) Governmental equipment auctions. Motor 714
vehicles or other equipment purchased from a federal agency or 715
authority, another governing authority or state agency of the 716
State of Mississippi, or any governing authority or state agency 717
of another state at a public auction held for the purpose of 718
disposing of such vehicles or other equipment. Any purchase by a 719
governing authority under the exemption authorized by this 720
subparagraph (v) shall require advance authorization spread upon 721
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the minutes of the governing authority to include the listing of 722
the item or items authorized to be purchased and the maximum bid 723
authorized to be paid for each item or items. 724
(vi) Intergovernmental sales and transfers. 725
Purchases, sales, transfers or trades by governing authorities or 726
state agencies when such purchases, sales, transfers or trades are 727
made by a private treaty agreement or through means of 728
negotiation, from any federal agency or authority, another 729
governing authority or state agency of the State of Mississippi, 730
or any state agency or governing authority of another state. 731
Nothing in this section shall permit such purchases through public 732
auction except as provided for in subparagraph (v) of this 733
paragraph (m). It is the intent of this section to allow 734
governmental entities to dispose of and/or purchase commodities 735
from other governmental entities at a price that is agreed to by 736
both parties. This shall allow for purchases and/or sales at 737
prices which may be determined to be below the market value if the 738
selling entity determines that the sale at below market value is 739
in the best interest of the taxpayers of the state. Governing 740
authorities shall place the terms of the agreement and any 741
justification on the minutes, and state agencies shall obtain 742
approval from the Department of Finance and Administration, prior 743
to releasing or taking possession of the commodities. 744
(vii) Perishable supplies or food. Perishable 745
supplies or food purchased for use in connection with hospitals, 746
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the school lunch programs, homemaking programs and for the feeding 747
of county or municipal prisoners. 748
(viii) Single-source items. Noncompetitive items 749
available from one (1) source only. In connection with the 750
purchase of noncompetitive items only available from one (1) 751
source, a certification of the conditions and circumstances 752
requiring the purchase shall be filed by the agency with the 753
Department of Finance and Administration and by the governing 754
authority with the board of the governing authority. Upon receipt 755
of that certification the Department of Finance and Administration 756
or the board of the governing authority, as the case may be, may, 757
in writing, authorize the purchase, which authority shall be noted 758
on the minutes of the body at the next regular meeting thereafter. 759
In those situations, a governing authority is not required to 760
obtain the approval of the Department of Finance and 761
Administration. Following the purchase, the executive head of the 762
state agency, or his designees, shall file with the Department of 763
Finance and Administration, documentation of the purchase, 764
including a description of the commodity purchased, the purchase 765
price thereof and the source from whom it was purchased. 766
(ix) Waste disposal facility construction 767
contracts. Construction of incinerators and other facilities for 768
disposal of solid wastes in which products either generated 769
therein, such as steam, or recovered therefrom, such as materials 770
for recycling, are to be sold or otherwise disposed of; however, 771
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in constructing such facilities, a governing authority or agency 772
shall publicly issue requests for proposals, advertised for in the 773
same manner as provided herein for seeking bids for public 774
construction projects, concerning the design, construction, 775
ownership, operation and/or maintenance of such facilities, 776
wherein such requests for proposals when issued shall contain 777
terms and conditions relating to price, financial responsibility, 778
technology, environmental compatibility, legal responsibilities 779
and such other matters as are determined by the governing 780
authority or agency to be appropriate for inclusion; and after 781
responses to the request for proposals have been duly received, 782
the governing authority or agency may select the most qualified 783
proposal or proposals on the basis of price, technology and other 784
relevant factors and from such proposals, but not limited to the 785
terms thereof, negotiate and enter contracts with one or more of 786
the persons or firms submitting proposals. 787
(x) Hospital group purchase contracts. Supplies, 788
commodities and equipment purchased by hospitals through group 789
purchase programs pursuant to Section 31-7-38. 790
(xi) Information technology products. Purchases 791
of information technology products made by governing authorities 792
under the provisions of purchase schedules, or contracts executed 793
or approved by the Mississippi Department of Information 794
Technology Services and designated for use by governing 795
authorities. 796
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(xii) Energy efficiency services and equipment. 797
Energy efficiency services and equipment acquired by school 798
districts, community and junior colleges, institutions of higher 799
learning and state agencies or other applicable governmental 800
entities on a shared-savings, lease or lease-purchase basis 801
pursuant to Section 31-7-14. 802
(xiii) Municipal electrical utility system fuel. 803
Purchases of coal and/or natural gas by municipally owned electric 804
power generating systems that have the capacity to use both coal 805
and natural gas for the generation of electric power. 806
(xiv) Library books and other reference materials. 807
Purchases by libraries or for libraries of books and periodicals; 808
processed film, videocassette tapes, filmstrips and slides; 809
recorded audiotapes, cassettes and diskettes; and any such items 810
as would be used for teaching, research or other information 811
distribution; however, equipment such as projectors, recorders, 812
audio or video equipment, and monitor televisions are not exempt 813
under this subparagraph. 814
(xv) Unmarked vehicles. Purchases of unmarked 815
vehicles when such purchases are made in accordance with 816
purchasing regulations adopted by the Department of Finance and 817
Administration pursuant to Section 31-7-9(2). 818
(xvi) Election ballots. Purchases of ballots 819
printed pursuant to Section 23-15-351. 820
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(xvii) Multichannel interactive video systems. 821
From and after July 1, 1990, contracts by Mississippi Authority 822
for Educational Television with any private educational 823
institution or private nonprofit organization whose purposes are 824
educational in regard to the construction, purchase, lease or 825
lease-purchase of facilities and equipment and the employment of 826
personnel for providing multichannel interactive video systems 827
(ITSF) in the school districts of this state. 828
(xviii) Purchases of prison industry products by 829
the Department of Corrections, regional correctional facilities or 830
privately owned prisons. Purchases made by the Mississippi 831
Department of Corrections, regional correctional facilities or 832
privately owned prisons involving any item that is manufactured, 833
processed, grown or produced from the state's prison industries. 834
(xix) Undercover operations equipment. Purchases 835
of surveillance equipment or any other high-tech equipment to be 836
used by law enforcement agents in undercover operations, provided 837
that any such purchase shall be in compliance with regulations 838
established by the Department of Finance and Administration. 839
(xx) Junior college books for rent. Purchases by 840
community or junior colleges of textbooks which are obtained for 841
the purpose of renting such books to students as part of a book 842
service system. 843
(xxi) Certain school district purchases. 844
Purchases of commodities made by school districts from vendors 845
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with which any levying authority of the school district, as 846
defined in Section 37-57-1, has contracted through competitive 847
bidding procedures for purchases of the same commodities. 848
(xxii) Garbage, solid waste and sewage contracts. 849
Contracts for garbage collection or disposal, contracts for solid 850
waste collection or disposal and contracts for sewage collection 851
or disposal. 852
(xxiii) Municipal water tank maintenance 853
contracts. Professional maintenance program contracts for the 854
repair or maintenance of municipal water tanks, which provide 855
professional services needed to maintain municipal water storage 856
tanks for a fixed annual fee for a duration of two (2) or more 857
years. 858
(xxiv) Purchases of Mississippi Industries for the 859
Blind products or services. Purchases made by state agencies or 860
governing authorities involving any item that is manufactured, 861
processed or produced by, or any services provided by, the 862
Mississippi Industries for the Blind. 863
(xxv) Purchases of state-adopted textbooks. 864
Purchases of state-adopted textbooks by public school districts. 865
(xxvi) Certain purchases under the Mississippi 866
Major Economic Impact Act. Contracts entered into pursuant to the 867
provisions of Section 57-75-9(2), (3) and (4). 868
(xxvii) Used heavy or specialized machinery or 869
equipment for installation of soil and water conservation 870
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practices purchased at auction. Used heavy or specialized 871
machinery or equipment used for the installation and 872
implementation of soil and water conservation practices or 873
measures purchased subject to the restrictions provided in 874
Sections 69-27-331 through 69-27-341. Any purchase by the State 875
Soil and Water Conservation Commission under the exemption 876
authorized by this subparagraph shall require advance 877
authorization spread upon the minutes of the commission to include 878
the listing of the item or items authorized to be purchased and 879
the maximum bid authorized to be paid for each item or items. 880
(xxviii) Hospital lease of equipment or services. 881
Leases by hospitals of equipment or services if the leases are in 882
compliance with paragraph (l)(ii). 883
(xxix) Purchases made pursuant to qualified 884
cooperative purchasing agreements. Purchases made by certified 885
purchasing offices of state agencies or governing authorities 886
under cooperative purchasing agreements previously approved by the 887
Office of Purchasing and Travel and established by or for any 888
municipality, county, parish or state government or the federal 889
government, provided that the notification to potential 890
contractors includes a clause that sets forth the availability of 891
the cooperative purchasing agreement to other governmental 892
entities. Such purchases shall only be made if the use of the 893
cooperative purchasing agreements is determined to be in the best 894
interest of the governmental entity. 895
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(xxx) School yearbooks. Purchases of school 896
yearbooks by state agencies or governing authorities; however, 897
state agencies and governing authorities shall use for these 898
purchases the RFP process as set forth in the Mississippi 899
Procurement Manual adopted by the Office of Purchasing and Travel. 900
(xxxi) Design-build method of contracting and 901
certain other contracts. Contracts entered into under the 902
provisions of Section 31-7-13.1, 37-101-44 or 65-1-85. 903
(xxxii) Toll roads and bridge construction 904
projects. Contracts entered into under the provisions of Section 905
65-43-1 or 65-43-3. 906
(xxxiii) Certain purchases under Section 57-1-221. 907
Contracts entered into pursuant to the provisions of Section 908
57-1-221. 909
(xxxiv) Certain transfers made pursuant to the 910
provisions of Section 57-105-1(7). Transfers of public property 911
or facilities under Section 57-105-1(7) and construction related 912
to such public property or facilities. 913
(xxxv) Certain purchases or transfers entered into 914
with local electrical power associations. Contracts or agreements 915
entered into under the provisions of Section 55-3-33. 916
(xxxvi) Certain purchases by an academic medical 917
center or health sciences school. Purchases by an academic 918
medical center or health sciences school, as defined in Section 919
37-115-50, of commodities that are used for clinical purposes and 920
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1. intended for use in the diagnosis of disease or other 921
conditions or in the cure, mitigation, treatment or prevention of 922
disease, and 2. medical devices, biological, drugs and 923
radiation-emitting devices as defined by the United States Food 924
and Drug Administration. 925
(xxxvii) Certain purchases made under the Alyce G. 926
Clarke Mississippi Lottery Law. Contracts made by the Mississippi 927
Lottery Corporation pursuant to the Alyce G. Clarke Mississippi 928
Lottery Law. 929
(xxxviii) Certain purchases made by the Department 930
of Health and the Department of Revenue. Purchases made by the 931
Department of Health and the Department of Revenue solely for the 932
purpose of fulfilling their respective responsibilities under the 933
Mississippi Medical Cannabis Act. This subparagraph shall stand 934
repealed on June 30, 2026. 935
(xxxix) Purchases made by state agencies related 936
to museum exhibits. Purchases made by an agency related to the 937
fabrication, construction, installation or refurbishing of museum 938
exhibits. An agency making a purchase under this exemption in 939
excess of the bid threshold set forth in paragraph (c) of this 940
section shall publicly advertise a Request for Qualifications or 941
Request for Proposals in which price as an evaluation factor is at 942
least twenty percent (20%) out of the one hundred percent (100%) 943
total weight, but shall be otherwise exempt. Any contract arising 944
from a purchase using this exemption must be approved by the 945
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Public Procurement Review Board prior to execution by the agency. 946
The agency shall submit a written report on December 1 of each 947
year to the Chairs of the Senate and House Appropriations 948
Committees, the Chairs of the Senate and House Accountability, 949
Efficiency and Transparency Committees and the Chair of the Public 950
Procurement Review Board, identifying all purchases made by the 951
agency using this exemption in which the cost of the option 952
selected by the agency was more than twenty-five percent (25%) 953
higher than the lowest cost option available. 954
(n) Term contract authorization. All contracts for the 955
purchase of: 956
(i) All contracts for the purchase of commodities, 957
equipment and public construction (including, but not limited to, 958
repair and maintenance), may be let for periods of not more than 959
sixty (60) months in advance, subject to applicable statutory 960
provisions prohibiting the letting of contracts during specified 961
periods near the end of terms of office. Term contracts for a 962
period exceeding twenty-four (24) months shall also be subject to 963
ratification or cancellation by governing authority boards taking 964
office subsequent to the governing authority board entering the 965
contract. 966
(ii) Bid proposals and contracts may include price 967
adjustment clauses with relation to the cost to the contractor 968
based upon a nationally published industry-wide or nationally 969
published and recognized cost index. The cost index used in a 970
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price adjustment clause shall be determined by the Department of 971
Finance and Administration for the state agencies and by the 972
governing board for governing authorities. The bid proposal and 973
contract documents utilizing a price adjustment clause shall 974
contain the basis and method of adjusting unit prices for the 975
change in the cost of such commodities, equipment and public 976
construction. 977
(o) Purchase law violation prohibition and vendor 978
penalty. No contract or purchase as herein authorized shall be 979
made for the purpose of circumventing the provisions of this 980
section requiring competitive bids, nor shall it be lawful for any 981
person or concern to submit individual invoices for amounts within 982
those authorized for a contract or purchase where the actual value 983
of the contract or commodity purchased exceeds the authorized 984
amount and the invoices therefor are split so as to appear to be 985
authorized as purchases for which competitive bids are not 986
required. Submission of such invoices shall constitute a 987
misdemeanor punishable by a fine of not less than Five Hundred 988
Dollars ($500.00) nor more than One Thousand Dollars ($1,000.00), 989
or by imprisonment for thirty (30) days in the county jail, or 990
both such fine and imprisonment. In addition, the claim or claims 991
submitted shall be forfeited. 992
(p) Electrical utility petroleum-based equipment 993
purchase procedure. When in response to a proper advertisement 994
therefor, no bid firm as to price is submitted to an electric 995
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utility for power transformers, distribution transformers, power 996
breakers, reclosers or other articles containing a petroleum 997
product, the electric utility may accept the lowest and best bid 998
therefor although the price is not firm. 999
(q) Fuel management system bidding procedure. Any 1000
governing authority or agency of the state shall, before 1001
contracting for the services and products of a fuel management or 1002
fuel access system, enter into negotiations with not fewer than 1003
two (2) sellers of fuel management or fuel access systems for 1004
competitive written bids to provide the services and products for 1005
the systems. In the event that the governing authority or agency 1006
cannot locate two (2) sellers of such systems or cannot obtain 1007
bids from two (2) sellers of such systems, it shall show proof 1008
that it made a diligent, good-faith effort to locate and negotiate 1009
with two (2) sellers of such systems. Such proof shall include, 1010
but not be limited to, publications of a request for proposals and 1011
letters soliciting negotiations and bids. For purposes of this 1012
paragraph (q), a fuel management or fuel access system is an 1013
automated system of acquiring fuel for vehicles as well as 1014
management reports detailing fuel use by vehicles and drivers, and 1015
the term "competitive written bid" shall have the meaning as 1016
defined in paragraph (b) of this section. Governing authorities 1017
and agencies shall be exempt from this process when contracting 1018
for the services and products of fuel management or fuel access 1019
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systems under the terms of a state contract established by the 1020
Office of Purchasing and Travel. 1021
(r) Solid waste contract proposal procedure. Before 1022
entering into any contract for garbage collection or disposal, 1023
contract for solid waste collection or disposal or contract for 1024
sewage collection or disposal, which involves an expenditure of 1025
more than Seventy-five Thousand Dollars ($75,000.00), a governing 1026
authority or agency shall issue publicly a request for proposals 1027
concerning the specifications for such services which shall be 1028
advertised for in the same manner as provided in this section for 1029
seeking bids for purchases which involve an expenditure of more 1030
than the amount provided in paragraph (c) of this section. Any 1031
request for proposals when issued shall contain terms and 1032
conditions relating to price, financial responsibility, 1033
technology, legal responsibilities and other relevant factors as 1034
are determined by the governing authority or agency to be 1035
appropriate for inclusion; all factors determined relevant by the 1036
governing authority or agency or required by this paragraph (r) 1037
shall be duly included in the advertisement to elicit proposals. 1038
After responses to the request for proposals have been duly 1039
received, the governing authority or agency shall select the most 1040
qualified proposal or proposals on the basis of price, technology 1041
and other relevant factors and from such proposals, but not 1042
limited to the terms thereof, negotiate and enter into contracts 1043
with one or more of the persons or firms submitting proposals. If 1044
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the governing authority or agency deems none of the proposals to 1045
be qualified or otherwise acceptable, the request for proposals 1046
process may be reinitiated. Notwithstanding any other provisions 1047
of this paragraph, where a county with at least thirty-five 1048
thousand (35,000) nor more than forty thousand (40,000) 1049
population, according to the 1990 federal decennial census, owns 1050
or operates a solid waste landfill, the governing authorities of 1051
any other county or municipality may contract with the governing 1052
authorities of the county owning or operating the landfill, 1053
pursuant to a resolution duly adopted and spread upon the minutes 1054
of each governing authority involved, for garbage or solid waste 1055
collection or disposal services through contract negotiations. 1056
(s) Minority set-aside authorization. Notwithstanding 1057
any provision of this section to the contrary, any agency or 1058
governing authority, by order placed on its minutes, may, in its 1059
discretion, set aside not more than twenty percent (20%) of its 1060
anticipated annual expenditures for the purchase of commodities 1061
from minority businesses; however, all such set-aside purchases 1062
shall comply with all purchasing regulations promulgated by the 1063
Department of Finance and Administration and shall be subject to 1064
bid requirements under this section. Set-aside purchases for 1065
which competitive bids are required shall be made from the lowest 1066
and best minority business bidder. For the purposes of this 1067
paragraph, the term "minority business" means a business which is 1068
owned by a majority of persons who are United States citizens or 1069
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permanent resident aliens (as defined by the Immigration and 1070
Naturalization Service) of the United States, and who are Asian, 1071
Black, Hispanic or Native American, according to the following 1072
definitions: 1073
(i) "Asian" means persons having origins in any of 1074
the original people of the Far East, Southeast Asia, the Indian 1075
subcontinent, or the Pacific Islands. 1076
(ii) "Black" means persons having origins in any 1077
black racial group of Africa. 1078
(iii) "Hispanic" means persons of Spanish or 1079
Portuguese culture with origins in Mexico, South or Central 1080
America, or the Caribbean Islands, regardless of race. 1081
(iv) "Native American" means persons having 1082
origins in any of the original people of North America, including 1083
American Indians, Eskimos and Aleuts. 1084
(t) Construction punch list restriction. The 1085
architect, engineer or other representative designated by the 1086
agency or governing authority that is contracting for public 1087
construction or renovation may prepare and submit to the 1088
contractor only one (1) preliminary punch list of items that do 1089
not meet the contract requirements at the time of substantial 1090
completion and one (1) final list immediately before final 1091
completion and final payment. 1092
(u) Procurement of construction services by state 1093
institutions of higher learning. Contracts for privately financed 1094
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construction of auxiliary facilities on the campus of a state 1095
institution of higher learning may be awarded by the Board of 1096
Trustees of State Institutions of Higher Learning to the lowest 1097
and best bidder, where sealed bids are solicited, or to the 1098
offeror whose proposal is determined to represent the best value 1099
to the citizens of the State of Mississippi, where requests for 1100
proposals are solicited. 1101
(v) Insurability of bidders for public construction or 1102
other public contracts. In any solicitation for bids to perform 1103
public construction or other public contracts to which this 1104
section applies, including, but not limited to, contracts for 1105
repair and maintenance, for which the contract will require 1106
insurance coverage in an amount of not less than One Million 1107
Dollars ($1,000,000.00), bidders shall be permitted to either 1108
submit proof of current insurance coverage in the specified amount 1109
or demonstrate ability to obtain the required coverage amount of 1110
insurance if the contract is awarded to the bidder. Proof of 1111
insurance coverage shall be submitted within five (5) business 1112
days from bid acceptance. 1113
(w) Purchase authorization clarification. Nothing in 1114
this section shall be construed as authorizing any purchase not 1115
authorized by law. 1116
(x) Mississippi Regional Pre-Need Disaster Clean Up 1117
Act. (i) The Department of Finance and Administration shall 1118
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ST: Mississippi Energy Infrastructure Fund;
create.
develop and implement a process that creates a preferred vendor 1119
list for both disaster debris removal and monitoring. 1120
(ii) Any board of supervisors of any county or any 1121
governing authority of any municipality may opt in to the benefits 1122
and services provided under the appropriate and relevant contract 1123
established in subparagraph (i) of this paragraph at the time of a 1124
disaster event in that county or municipality. At the time of opt 1125
in, the county or municipality shall assume responsibility for 1126
payment in full to the contractor for the disaster-related solid 1127
waste collection, disposal or monitoring services provided. 1128
Nothing in this subparagraph (ii) shall be construed as requiring 1129
a county or municipality to opt in to any such contract 1130
established in subparagraph (i) of this paragraph. 1131
(y) Certain purchases for approved energy projects. 1132
Contracts entered into pursuant to the provisions of subsections 1133
(3), (4) and (5) of Section 2 of this act. 1134
SECTION 4. This act shall take effect and be in force from 1135
and after July 1, 2026. 1136