Local Governments Disaster Recovery Emergency Loan Program; create.

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To: Government Structure
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) DeLano, Barnett,
Barrett, Berry, Blackmon, Blackwell,
Blount, Boyd, Brumfield, Bryan, Butler,
Carter, Chassaniol, Chism, DeBar,
DuPree, England, Fillingane, Frazier,
Gillespie Isom, Harkins, Hartness,
Hickman, Hill, Hopson, Jackson, Johnson,
Kirby, Ladner, McCaughn, McLendon,
McMahan, Michel, Mumford, Norwood,
Parks, Pope, Rhodes, Seymour, Simmons
(12th), Simmons (13th), Sparks, Suber,
Tate, Taylor, Thomas, Thompson, Turner-
Ford, Whaley, Wiggins, Williams, Younger

SENATE BILL NO. 2632
(As Sent to Governor)

AN ACT TO ENACT THE LOCAL GOVERNMENTS DISASTER RECOVERY 1
EMERGENCY LOAN PROGRAM ACT; TO DEFINE TERMS; TO ESTABLISH THE 2
LOCAL GOVERNMENT DISASTER RECOVERY EMERGENCY LOAN PROGRAM TO BE 3
ADMINISTERED BY THE MISSISSIPPI EMERGENCY MANAGEMENT AGENCY FOR 4
THE PURPOSE OF ASSISTING LOCAL GOVERNMENTS IN RECOVERING FROM 5
CERTAIN FEDERALLY DECLARED DISASTERS BY ISSUING LOANS TO LOCAL 6
GOVERNMENTS; TO PROVIDE THAT NO LOAN SHALL BE ISSUED UNDER THE 7
AUTHORITY OF THIS ACT AFTER A CERTAIN DATE; TO SET FORTH THE 8
POWERS AND DUTIES OF THE MISSISSIPPI EMERGENCY MANAGEMENT AGENCY 9
IN ADMINISTERING THIS ACT; TO ALLOW THE MISSISSIPPI EMERGENCY 10
MANAGEMENT AGENCY TO AUTHORIZE AN ADMINISTRATOR TO CARRY OUT ANY 11
OR ALL OF THE POWERS AND DUTIES ENUMERATED IN THIS ACT; TO EXEMPT 12
THE MISSISSIPPI EMERGENCY MANAGEMENT AGENCY FROM ANY REQUIREMENT 13
THAT THE PUBLIC PROCUREMENT REVIEW BOARD APPROVE ANY PERSONAL OR 14
PROFESSIONAL SERVICES CONTRACTS OR PRE-APPROVE ANY SOLICITATION OF 15
SUCH CONTRACTS FOR PURPOSES OF THIS ACT; TO CREATE A SPECIAL FUND 16
IN THE STATE TREASURY TO BE DESIGNATED AS THE "LOCAL GOVERNMENTS 17
DISASTER RECOVERY EMERGENCY LOAN FUND"; TO REQUIRE EACH RECIPIENT 18
OF A LOAN UNDER THE PROGRAM TO ESTABLISH A DEDICATED SOURCE OF 19
REVENUE FOR REPAYMENT OF THE LOAN IN THE EVENT THAT THE FEDERAL 20
EMERGENCY MANAGEMENT AGENCY DECLINES TO REIMBURSE AN EXPENDITURE 21
FOR WHICH LOAN PROCEEDS WERE USED; TO PROVIDE THAT THE EXECUTED 22
LOAN AGREEMENT WILL OBLIGATE THE LOCAL GOVERNMENT TO REPAY THE 23
PROCEEDS OF THE LOAN IMMEDIATELY UPON RECEIPT OF REIMBURSEMENTS 24
FROM THE FEDERAL EMERGENCY MANAGEMENT AGENCY; TO PROVIDE THAT THE 25
LOAN AGREEMENT SHALL PROVIDE FOR THE REPAYMENT OF ALL FUNDS 26
RECEIVED FROM THE EMERGENCY FUND WITHIN NOT MORE THAN TWO YEARS 27
FROM THE DATE THAT THE FEDERAL EMERGENCY MANAGEMENT AGENCY 28
DECLINED TO REIMBURSE FOR AN EXPENDITURE FOR WHICH LOAN PROCEEDS 29
WERE USED; TO REQUIRE A RECIPIENT LOCAL GOVERNMENT TO PLEDGE ITS 30
SALES TAX REVENUE DISTRIBUTION OR ITS HOMESTEAD EXEMPTION ANNUAL 31
TAX LOSS REIMBURSEMENT, AS THE CASE MAY BE, TO MEET THE REPAYMENT 32
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SCHEDULE CONTAINED IN THE LOAN AGREEMENT IN THE EVENT THAT THE 33
FEDERAL EMERGENCY MANAGEMENT AGENCY DECLINES TO REIMBURSE AN 34
EXPENDITURE FOR WHICH LOAN PROCEEDS WERE USED; TO AMEND SECTION 35
27-104-7, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ANY PERSONAL 36
OR PROFESSIONAL SERVICE CONTRACTS ENTERED INTO BY THE MISSISSIPPI 37
EMERGENCY MANAGEMENT AGENCY UNDER THIS ACT ARE EXEMPT FROM 38
APPROVAL BY THE PUBLIC PROCUREMENT REVIEW BOARD; AND FOR RELATED 39
PURPOSES. 40
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 41
SECTION 1. This act shall be known and may be cited as the 42
"Local Governments Disaster Recovery Emergency Loan Program Act." 43
SECTION 2. As used in this section, the following terms 44
shall have the meaning ascribed herein unless the context clearly 45
requires otherwise: 46
(a) "Agency" means the Mississippi Emergency Management 47
Agency. 48
(b) "Disaster" means the federally declared disaster 49
Number EM-3640/DR-4899-MS, for the winter storm on January 23 50
through 27, 2026. 51
(c) "Eligible expenditure(s)" means seventy-five 52
percent (75%) of expenses incurred by a local government that are 53
reimbursable from the Federal Emergency Management Agency under 54
the public assistance category A through F for that local 55
government within the federally declared disaster area. For 56
expenses of a local government under the public assistance 57
category F, any expenditures for utility co-operatives shall only 58
be incurred for government utility co-operatives. The term does 59
not include expenses incurred for losses that are otherwise 60
covered as insured losses or covered by donations. 61
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(d) "Emergency fund" means the "2026 Local Governments 62
Disaster Recovery Emergency Loan Fund" created in Section 4 of 63
this act. 64
(e) "Federal disaster declaration" means the 65
presidential declaration, EM-3640/DR-4899-MS, providing assistance 66
in response and recovery to the disaster. 67
(f) "Federally declared disaster area" means those 68
counties designated in the federal disaster declaration or added 69
to the federal disaster declaration by amendment of the Federal 70
Emergency Management Agency. 71
(g) "Loan" means a disbursement of public funds to a 72
principal borrower under this act that is required to be repaid to 73
the emergency fund by the borrower in accordance with the terms of 74
an executed loan agreement. 75
(h) "Local government" means a county, municipality or 76
political subdivision thereof, within the bounds of the federally 77
declared disaster area. 78
(i) "Eligible borrower" means a county, municipality or 79
political subdivision thereof, within the bounds of the federally 80
declared disaster area that has applied for assistance through 81
FEMA. 82
(j) "Program" means the 2026 Local Government Disaster 83
Recovery Emergency Loan Program established in Section 3 of this 84
act. 85
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SECTION 3. (1) (a) There is established the 2026 Local 86
Government Disaster Recovery Emergency Loan Program to be 87
administered by the Mississippi Emergency Management Agency for 88
the purpose of assisting local governments in recovering from the 89
disaster by issuing loans to local governments. 90
(b) The agency shall act as quickly as is practicable 91
and prudent in deciding on any loan request that it receives. 92
Loans from the emergency fund may be made to eligible local 93
governments, as set forth in an executed loan agreement for 94
payment or reimbursement of the eligible expenditure(s) of the 95
local government as determined by the agency. The agency may 96
establish a maximum amount for any loan from the emergency fund in 97
order to provide for broad and equitable participation in the 98
program. 99
(c) Eligible borrowers may apply for a loan pursuant to 100
the policies and processes established by the agency. 101
(d) No loan shall be issued under this act after July 102
1, 2027. The term of any loan issued under this act shall not 103
exceed a period of five (5) years. 104
(2) (a) Loan proceeds may be used by the recipient local 105
government for eligible expenditure(s). 106
(b) Loans issued under this act shall be at a zero 107
percent (0%) interest rate until all federal emergency management 108
agency reimbursements have been processed and applied to the loan 109
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balance. After such time, a one percent (1%) fixed interest rate 110
to cover the administrative costs to service the loan. 111
(3) In administering this act, the agency shall have the 112
following powers and duties: 113
(a) To supervise the use of all funds and loan proceeds 114
made available under this act for local governments to recover 115
from the disaster; 116
(b) To promulgate rules and regulations, to make 117
variances and exceptions thereto, and to establish procedures in 118
accordance with this act for the implementation of the program; 119
(c) To ensure the funds made available under this act 120
to a local government provide for a distribution of funds that 121
ensures broad and equitable participation among the local 122
governments affected by the disaster; 123
(d) To maintain in accordance with generally accepted 124
government accounting standards an accurate record of all monies 125
in the emergency fund made available to local governments under 126
this act and the expenditures incurred by each recipient; 127
(e) To establish policies, procedures and requirements 128
concerning viability and financial capability to repay loans that 129
may be used in approving loans available under this section; 130
(f) To contract for those facilities and staff needed 131
to administer and provide routine management for the funds and 132
loan program; 133
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(g) To require recipient local governments to consult 134
with the county's emergency management agency and/or an authorized 135
representative of the Mississippi Emergency Management Agency; 136
(h) To ensure the dedicated source of revenue as 137
collateral by a borrower is sufficient to repay the loan within 138
the loan period; 139
(i) Require a rigorous documentation process to ensure 140
that state funds are utilized in a manner that maximizes eventual 141
federal reimbursement; 142
(j) To file with the Legislature reports, no later than 143
October 1 of each year and no later than February 1 of each year, 144
detailing how monies in the emergency fund were expended during 145
the preceding year by each participating local government by 146
period, the number of loans approved and disbursed, the amount of 147
expenditures incurred by each loan recipient, the current balance 148
of any outstanding loans, the specific projects of each loan 149
recipient with a description of the project and the recipient 150
entities, the amounts deposited into the emergency fund under 151
Section 5(4) of this act by loan, and the number of loans repaid 152
under this act. 153
(4) For efficient and effective administration of the 154
program and emergency fund, the agency may authorize an 155
administrator to carry out any or all of the powers and duties 156
enumerated above. 157
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(5) In carrying out its responsibilities under this act, for 158
any contract under the purview of the Public Procurement Review 159
Board, the agency shall be exempt from any requirement that the 160
Public Procurement Review Board approve any personal or 161
professional services contracts or pre-approve any solicitation of 162
such contracts. 163
(6) In carrying out its responsibilities under this act, for 164
any policy, procedure, and/or regulation produced by the agency, 165
the agency shall be exempt from all requirements under the 166
Mississippi Administrative Procedures Law. 167
SECTION 4. (1) There is created a special fund in the State 168
Treasury to be designated as the "2026 Local Governments Disaster 169
Recovery Emergency Loan Fund." The emergency fund shall consist 170
of any monies deposited to the credit of the emergency fund. The 171
emergency fund may receive deposits by the State Treasurer, bond 172
proceeds, grants, gifts, donations or funds from any source, 173
public or private. Except as otherwise provided in this section, 174
the emergency fund shall be credited with all repayments of 175
principal and interest derived from loans made from the emergency 176
fund. Unexpended amounts remaining in the emergency fund at the 177
end of a fiscal year shall not lapse into the State General Fund. 178
Any interest earned on amounts in the emergency fund shall be 179
deposited to the credit of the fund. 180
(2) The monies in the emergency fund may only be expended 181
subject to appropriation by the Legislature. Monies in the 182
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emergency fund may only be disbursed for purposes authorized under 183
this act. Except as otherwise provided in this act, all monies 184
deposited in the emergency fund, including loan repayments and 185
interest earned on those repayments, shall be used only for 186
providing loans to local governments as the agency deems 187
appropriate. Subject to the availability of funds and the 188
disbursement limit provided in Section 3(1)(b) of this act, loan 189
proceeds under this act may be disbursed to local governments in 190
one or more installments or on a rolling basis, in the discretion 191
of the agency. 192
(3) In addition to any other purpose authorized under this 193
act, subject to appropriation by the Legislature, any amounts in 194
the emergency fund may be used to defray the reasonable costs of 195
administering the emergency fund and conducting activities under 196
this act in an amount not to exceed one-half of one percent (0.5%) 197
of loan proceeds. 198
SECTION 5. (1) (a) Each recipient of a loan under the 199
program shall establish a dedicated source of revenue for 200
repayment of the loan in the event that the Federal Emergency 201
Management Agency disallows a reimbursement request for an 202
expenditure for which loan proceeds were used. Before any local 203
government shall receive any loan, it shall have executed with the 204
Department of Revenue and the agency a loan agreement evidencing 205
that loan and the dedicated source of revenue. 206
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(b) All borrowers must agree to pay an amount not 207
greater than twelve and one-half percent (12.5%) of the matching 208
funds required by the Federal Emergency Management Agency for the 209
receipt of federal grant funds. 210
(c) The executed loan agreement will obligate the local 211
government to repay the proceeds of the loan to the agency receipt 212
of any reimbursements from the Federal Emergency Management 213
Agency. 214
(d) In the event that the Federal Emergency Management 215
Agency disallows a reimbursement request for an expenditure for 216
which loan proceeds were used, the repayment schedule in each loan 217
agreement shall provide for (i) monthly payments, (ii) semiannual 218
payments, or (iii) other periodic payments. The loan agreement 219
shall provide for the repayment of all funds received from the 220
emergency fund to the agency within not more than two (2) years 221
from the date that the Federal Emergency Management Agency 222
disallowed a reimbursement request for an expenditure for which 223
loan proceeds were used. The Department of Revenue shall withhold 224
semiannually from counties and monthly from municipalities from 225
the amount to be remitted to the county or municipality, a sum 226
equal to the next repayment as provided in the loan agreement in 227
the event that the Federal Emergency Management Agency disallows a 228
reimbursement request for an expenditure for which loan proceeds 229
were used and the county or municipality has pledged such revenue. 230
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(2) A county that receives a loan from the emergency fund 231
shall pledge for repayment of the loan any part of the use tax to 232
which it may be entitled under Chapter 67, Title 27, Mississippi 233
Code of 1972, or any other revenue source to which it is entitled 234
by law, as may be required to meet the repayment schedule 235
contained in the loan agreement in the event that the Federal 236
Emergency Management Agency disallows a reimbursement request for 237
an expenditure for which loan proceeds were used. 238
(3) A municipality that received a loan from the emergency 239
fund shall pledge for repayment of the loan any part of the sales 240
tax revenue distribution to which it may be entitled under Section 241
27-65-75 or any other revenue source to which it is entitled by 242
law, as may be required to meet the repayment schedule contained 243
in the loan agreement in the event that the Federal Emergency 244
Management Agency disallows a reimbursement request for an 245
expenditure for which loan proceeds were used. 246
(4) Upon receipt of any funds in repayment from the borrower 247
and the Department of Revenue to the credit of a borrower for loan 248
obligations under this act, the agency shall immediately deposit 249
such funds into the emergency fund. 250
(5) The State Auditor, upon request of the agency, shall 251
audit the receipts and expenditures of a local government whose 252
loan repayments appear to be in arrears, and if the Auditor finds 253
the local government is in arrears in those repayments, the 254
Auditor shall immediately notify the executive director of the 255
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agency and the State Fiscal Officer, who may take any action as 256
may be necessary to enforce the terms of the loan agreement, 257
including liquidation and enforcement of the dedicated source of 258
revenue given as security for repayment of the loan and the 259
withholding of all future payments to the county of homestead 260
exemption annual tax loss reimbursements under Section 27-33-77 261
and all sums allocated to the county or the municipality under 262
Section 27-65-75 until such time as the county or the municipality 263
is again current in its loan repayments as certified by the 264
agency. 265
SECTION 6. Section 27-104-7, Mississippi Code of 1972, is 266
amended as follows: 267
27-104-7. (1) (a) There is created the Public Procurement 268
Review Board, which shall be reconstituted on January 1, 2018, and 269
shall be composed of the following members: 270
(i) Three (3) individuals appointed by the 271
Governor with the advice and consent of the Senate; 272
(ii) Two (2) individuals appointed by the 273
Lieutenant Governor with the advice and consent of the Senate; and 274
(iii) The Executive Director of the Department of 275
Finance and Administration, serving as an ex officio and nonvoting 276
member. 277
(b) The initial terms of each appointee shall be as 278
follows: 279
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(i) One (1) member appointed by the Governor to 280
serve for a term ending on June 30, 2019; 281
(ii) One (1) member appointed by the Governor to 282
serve for a term ending on June 30, 2020; 283
(iii) One (1) member appointed by the Governor to 284
serve for a term ending on June 30, 2021; 285
(iv) One (1) member appointed by the Lieutenant 286
Governor to serve for a term ending on June 30, 2019; and 287
(v) One (1) member appointed by the Lieutenant 288
Governor to serve for a term ending on June 30, 2020. 289
After the expiration of the initial terms, all appointed 290
members' terms shall be for a period of four (4) years from the 291
expiration date of the previous term, and until such time as the 292
member's successor is duly appointed and qualified. 293
(c) When appointing members to the Public Procurement 294
Review Board, the Governor and Lieutenant Governor shall take into 295
consideration persons who possess at least five (5) years of 296
management experience in general business, health care or finance 297
for an organization, corporation or other public or private 298
entity. Any person, or any employee or owner of a company, who 299
receives any grants, procurements or contracts that are subject to 300
approval under this section shall not be appointed to the Public 301
Procurement Review Board. Any person, or any employee or owner of 302
a company, who is a principal of the source providing a personal 303
or professional service shall not be appointed to the Public 304
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Procurement Review Board if the principal owns or controls a 305
greater than five percent (5%) interest or has an ownership value 306
of One Million Dollars ($1,000,000.00) in the source's business, 307
whichever is smaller. No member shall be an officer or employee 308
of the State of Mississippi while serving as a voting member on 309
the Public Procurement Review Board. 310
(d) Members of the Public Procurement Review Board 311
shall be entitled to per diem as authorized by Section 25-3-69 and 312
travel reimbursement as authorized by Section 25-3-41. 313
(e) The members of the Public Procurement Review Board 314
shall elect a chair from among the membership, and he or she shall 315
preside over the meetings of the board. The board shall annually 316
elect a vice chair, who shall serve in the absence of the chair. 317
No business shall be transacted, including adoption of rules of 318
procedure, without the presence of a quorum of the board. Three 319
(3) members shall be a quorum. No action shall be valid unless 320
approved by a majority of the members present and voting, entered 321
upon the minutes of the board and signed by the chair. Necessary 322
clerical and administrative support for the board shall be 323
provided by the Department of Finance and Administration. Minutes 324
shall be kept of the proceedings of each meeting, copies of which 325
shall be filed on a monthly basis with the chairs of the 326
Accountability, Efficiency and Transparency Committees of the 327
Senate and House of Representatives and the chairs of the 328
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Appropriations Committees of the Senate and House of 329
Representatives. 330
(2) The Public Procurement Review Board shall have the 331
following powers and responsibilities: 332
(a) Approve all purchasing regulations governing the 333
purchase or lease by any agency, as defined in Section 31-7-1, of 334
commodities and equipment, except computer equipment acquired 335
pursuant to Sections 25-53-1 through 25-53-29; 336
(b) Adopt regulations governing the approval of 337
contracts let for the construction and maintenance of state 338
buildings and other state facilities as well as related contracts 339
for architectural and engineering services. 340
The provisions of this paragraph (b) shall not apply to such 341
contracts involving buildings and other facilities of state 342
institutions of higher learning which are self-administered as 343
provided under this paragraph (b) or Section 37-101-15(m); 344
(c) Adopt regulations governing any lease or rental 345
agreement by any state agency or department, including any state 346
agency financed entirely by federal funds, for space outside the 347
buildings under the jurisdiction of the Department of Finance and 348
Administration. These regulations shall require each agency 349
requesting to lease such space to provide the following 350
information that shall be published by the Department of Finance 351
and Administration on its website: the agency to lease the space; 352
the terms of the lease; the approximate square feet to be leased; 353
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the use for the space; a description of a suitable space; the 354
general location desired for the leased space; the contact 355
information for a person from the agency; the deadline date for 356
the agency to have received a lease proposal; any other specific 357
terms or conditions of the agency; and any other information 358
deemed appropriate by the Division of Real Property Management of 359
the Department of Finance and Administration or the Public 360
Procurement Review Board. The information shall be provided 361
sufficiently in advance of the time the space is needed to allow 362
the Division of Real Property Management of the Department of 363
Finance and Administration to review and preapprove the lease 364
before the time for advertisement begins; 365
(d) Adopt, in its discretion, regulations to set aside 366
at least five percent (5%) of anticipated annual expenditures for 367
the purchase of commodities from minority businesses; however, all 368
such set-aside purchases shall comply with all purchasing 369
regulations promulgated by the department and shall be subject to 370
all bid requirements. Set-aside purchases for which competitive 371
bids are required shall be made from the lowest and best minority 372
business bidder; however, if no minority bid is available or if 373
the minority bid is more than two percent (2%) higher than the 374
lowest bid, then bids shall be accepted and awarded to the lowest 375
and best bidder. However, the provisions in this paragraph shall 376
not be construed to prohibit the rejection of a bid when only one 377
(1) bid is received. Such rejection shall be placed in the 378
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minutes. For the purposes of this paragraph, the term "minority 379
business" means a business which is owned by a person who is a 380
citizen or lawful permanent resident of the United States and who 381
is: 382
(i) Black: having origins in any of the black 383
racial groups of Africa; 384
(ii) Hispanic: of Mexican, Puerto Rican, Cuban, 385
Central or South American, or other Spanish or Portuguese culture 386
or origin regardless of race; 387
(iii) Asian-American: having origins in any of 388
the original people of the Far East, Southeast Asia, the Indian 389
subcontinent, or the Pacific Islands; 390
(iv) American Indian or Alaskan Native: having 391
origins in any of the original people of North America; or 392
(v) Female; 393
(e) In consultation with and approval by the Chairs of 394
the Senate and House Public Property Committees, approve leases, 395
for a term not to exceed eighteen (18) months, entered into by 396
state agencies for the purpose of providing parking arrangements 397
for state employees who work in the Woolfolk Building, the Carroll 398
Gartin Justice Building or the Walter Sillers Office Building; 399
(f) (i) Except as otherwise provided in subparagraph 400
(ii) of this paragraph, promulgate rules and regulations governing 401
the solicitation and selection of contractual services personnel, 402
including personal and professional services contracts for any 403
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form of consulting, policy analysis, public relations, marketing, 404
public affairs, legislative advocacy services or any other 405
contract that the board deems appropriate for oversight, with the 406
exception of: 407
1. Any personal service contracts entered 408
into by any agency that employs only nonstate service employees as 409
defined in Section 25-9-107(c); 410
2. Any personal service contracts entered 411
into for computer or information technology-related services 412
governed by the Mississippi Department of Information Technology 413
Services; 414
3. Any personal service contracts entered 415
into by the individual state institutions of higher learning; 416
4. Any personal service contracts entered 417
into by the Mississippi Department of Transportation; 418
5. Any personal service contracts entered 419
into by the Department of Human Services through June 30, 2019, 420
which the Executive Director of the Department of Human Services 421
determines would be useful in establishing and operating the 422
Department of Child Protection Services; 423
6. Any personal service contracts entered 424
into by the Department of Child Protection Services through June 425
30, 2019; 426
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7. Any contracts for entertainers and/or 427
performers at the Mississippi State Fairgrounds entered into by 428
the Mississippi Fair Commission; 429
8. Any contracts entered into by the 430
Department of Finance and Administration when procuring aircraft 431
maintenance, parts, equipment and/or services; 432
9. Any contract entered into by the 433
Department of Public Safety for service on specialized equipment 434
and/or software required for the operation of such specialized 435
equipment for use by the Office of Forensics Laboratories; 436
10. Any personal or professional service 437
contract entered into by the Mississippi Department of Health or 438
the Department of Revenue solely in connection with their 439
respective responsibilities under the Mississippi Medical Cannabis 440
Act from February 2, 2022, through June 30, 2026; 441
11. Any contract for attorney, accountant, 442
actuary auditor, architect, engineer, anatomical pathologist, or 443
utility rate expert services; 444
12. Any personal service contracts approved 445
by the Executive Director of the Department of Finance and 446
Administration and entered into by the Coordinator of Mental 447
Health Accessibility through June 30, 2022; 448
13. Any personal or professional services 449
contract entered into by the State Department of Health in 450
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carrying out its responsibilities under the ARPA Rural Water 451
Associations Infrastructure Grant Program through June 30, 2026; 452
14. And any personal or professional services 453
contract entered into by the Mississippi Department of 454
Environmental Quality in carrying out its responsibilities under 455
the Mississippi Municipality and County Water Infrastructure Grant 456
Program Act of 2022, through June 30, 2026; 457
15. Any personal or professional services 458
contract entered into by an agency for the design, operation or 459
maintenance of museum exhibits. An agency making a purchase under 460
this exemption shall publicly advertise a Request for 461
Qualifications but shall be otherwise exempt. Any contracts 462
arising from the use of this exemption must be approved by the 463
Public Procurement Review Board prior to execution by the agency; 464
16. Any personal or professional services 465
contract entered into by the Mississippi Department of 466
Environmental Quality in carrying out its responsibilities under 467
Section 49-2-13(l). This item 16 shall stand repealed on July 1, 468
2028; * * * 469
17. Any contract entered into by the State 470
Department of Health for service on specialized equipment and/or 471
software required for the operation of such specialized equipment 472
for the use by the Public Health Laboratory * * *; and 473
18. Any contract entered into by the 474
Mississippi Emergency Management Agency for personal or 475
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professional services under Section 3(5) of this act, as well as 476
the fair value or financial value of any contract entered into 477
under this paragraph (f). 478
Any such rules and regulations shall provide for maintaining 479
continuous internal audit covering the activities of such agency 480
affecting its revenue and expenditures as required under Section 481
7-7-3(6)(d). Any rules and regulation changes related to personal 482
and professional services contracts that the Public Procurement 483
Review Board may propose shall be submitted to the Chairs of the 484
Accountability, Efficiency and Transparency Committees of the 485
Senate and House of Representatives and the Chairs of the 486
Appropriation Committees of the Senate and House of 487
Representatives at least fifteen (15) days before the board votes 488
on the proposed changes, and those rules and regulation changes, 489
if adopted, shall be promulgated in accordance with the 490
Mississippi Administrative Procedures Act. 491
(ii) From and after July 1, 2024, the Public 492
Procurement Review Board shall promulgate rules and regulations 493
that require the Department of Finance and Administration to 494
conduct personal and professional services solicitations as 495
provided in subparagraph (i) of this paragraph for those services 496
in excess of Seventy-five Thousand Dollars ($75,000.00) for the 497
Department of Marine Resources, the Department of Wildlife, 498
Fisheries and Parks, the Mississippi Emergency Management Agency 499
and the Mississippi Development Authority, with assistance to be 500
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provided from these entities. Any powers that have been conferred 501
upon agencies in order to comply with the provisions of this 502
section for personal and professional services solicitations shall 503
be conferred upon the Department of Finance and Administration to 504
conduct personal and professional services solicitations for the 505
Department of Marine Resources, the Department of Wildlife, 506
Fisheries and Parks, the Mississippi Emergency Management Agency 507
and the Mississippi Development Authority for those services in 508
excess of Seventy-five Thousand Dollars ($75,000.00). The 509
Department of Finance and Administration shall make any 510
submissions that are required to be made by other agencies to the 511
Public Procurement Review Board for the Department of Marine 512
Resources, the Department of Wildlife, Fisheries and Parks, the 513
Mississippi Emergency Management Agency and the Mississippi 514
Development Authority. 515
The provisions of this subparagraph (ii) shall stand repealed 516
on June 30, 2027; 517
(g) Approve all personal and professional services 518
contracts involving the expenditures of funds in excess of 519
Seventy-five Thousand Dollars ($75,000.00), except as provided in 520
paragraph (f) of this subsection (2) and in subsection (8); 521
(h) Develop mandatory standards with respect to 522
contractual services personnel that require invitations for public 523
bid, requests for proposals, record keeping and financial 524
responsibility of contractors. The Public Procurement Review 525
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Board shall, unless exempted under this paragraph (h) or under 526
paragraph (i) or (o) of this subsection (2), require the agency 527
involved to submit the procurement to a competitive procurement 528
process, and may reserve the right to reject any or all resulting 529
procurements; 530
(i) Prescribe certain circumstances by which agency 531
heads may enter into contracts for personal and professional 532
services without receiving prior approval from the Public 533
Procurement Review Board. The Public Procurement Review Board may 534
establish a preapproved list of providers of various personal and 535
professional services for set prices with which state agencies may 536
contract without bidding or prior approval from the board; 537
(i) Agency requirements may be fulfilled by 538
procuring services performed incident to the state's own programs. 539
The agency head shall determine in writing whether the price 540
represents a fair market value for the services. When the 541
procurements are made from other governmental entities, the 542
private sector need not be solicited; however, these contracts 543
shall still be submitted for approval to the Public Procurement 544
Review Board * * *; 545
(ii) Contracts between two (2) state agencies, 546
both under Public Procurement Review Board purview, shall not 547
require Public Procurement Review Board approval. However, the 548
contracts shall still be entered into the enterprise resource 549
planning system; 550
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(j) Provide standards for the issuance of requests for 551
proposals, the evaluation of proposals received, consideration of 552
costs and quality of services proposed, contract negotiations, the 553
administrative monitoring of contract performance by the agency 554
and successful steps in terminating a contract; 555
(k) Present recommendations for governmental 556
privatization and to evaluate privatization proposals submitted by 557
any state agency; 558
(l) Authorize personal and professional service 559
contracts to be effective for more than one (1) year provided a 560
funding condition is included in any such multiple year contract, 561
except the State Board of Education, which shall have the 562
authority to enter into contractual agreements for student 563
assessment for a period up to ten (10) years. The State Board of 564
Education shall procure these services in accordance with the 565
Public Procurement Review Board procurement regulations; 566
(m) Request the State Auditor to conduct a performance 567
audit on any personal or professional service contract; 568
(n) Prepare an annual report to the Legislature 569
concerning the issuance of personal and professional services 570
contracts during the previous year, collecting any necessary 571
information from state agencies in making such report; 572
(o) Develop and implement the following standards and 573
procedures for the approval of any sole source contract for 574
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personal and professional services regardless of the value of the 575
procurement: 576
(i) For the purposes of this paragraph (o), the 577
term "sole source" means only one (1) source is available that can 578
provide the required personal or professional service. 579
(ii) An agency that has been issued a binding, 580
valid court order mandating that a particular source or provider 581
must be used for the required service must include a copy of the 582
applicable court order in all future sole source contract reviews 583
for the particular personal or professional service referenced in 584
the court order. 585
(iii) Any agency alleging to have a sole source 586
for any personal or professional service, other than those 587
exempted under paragraph (f) of this subsection (2) and subsection 588
(8), shall publish on the procurement portal website established 589
by Sections 25-53-151 and 27-104-165, for at least fourteen (14) 590
days, the terms of the proposed contract for those services. In 591
addition, the publication shall include, but is not limited to, 592
the following information: 593
1. The personal or professional service 594
offered in the contract; 595
2. An explanation of why the personal or 596
professional service is the only one that can meet the needs of 597
the agency; 598
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3. An explanation of why the source is the 599
only person or entity that can provide the required personal or 600
professional service; 601
4. An explanation of why the amount to be 602
expended for the personal or professional service is reasonable; 603
and 604
5. The efforts that the agency went through 605
to obtain the best possible price for the personal or professional 606
service. 607
(iv) If any person or entity objects and proposes 608
that the personal or professional service published under 609
subparagraph (iii) of this paragraph (o) is not a sole source 610
service and can be provided by another person or entity, then the 611
objecting person or entity shall notify the Public Procurement 612
Review Board and the agency that published the proposed sole 613
source contract with a detailed explanation of why the personal or 614
professional service is not a sole source service. 615
(v) 1. If the agency determines after review that 616
the personal or professional service in the proposed sole source 617
contract can be provided by another person or entity, then the 618
agency must withdraw the sole source contract publication from the 619
procurement portal website and submit the procurement of the 620
personal or professional service to an advertised competitive bid 621
or selection process. 622
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2. If the agency determines after review that 623
there is only one (1) source for the required personal or 624
professional service, then the agency may appeal to the Public 625
Procurement Review Board. The agency has the burden of proving 626
that the personal or professional service is only provided by one 627
(1) source. 628
3. If the Public Procurement Review Board has 629
any reasonable doubt as to whether the personal or professional 630
service can only be provided by one (1) source, then the agency 631
must submit the procurement of the personal or professional 632
service to an advertised competitive bid or selection process. No 633
action taken by the Public Procurement Review Board in this appeal 634
process shall be valid unless approved by a majority of the 635
members of the Public Procurement Review Board present and voting. 636
(vi) The Public Procurement Review Board shall 637
prepare and submit a quarterly report to the House of 638
Representatives and Senate Accountability, Efficiency and 639
Transparency Committees that details the sole source contracts 640
presented to the Public Procurement Review Board and the reasons 641
that the Public Procurement Review Board approved or rejected each 642
contract. These quarterly reports shall also include the 643
documentation and memoranda required in subsection (4) of this 644
section. An agency that submitted a sole source contract shall be 645
prepared to explain the sole source contract to each committee by 646
December 15 of each year upon request by the committee; 647
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(p) Assess any fines and administrative penalties 648
provided for in Sections 31-7-401 through 31-7-423. 649
(3) All submissions shall be made sufficiently in advance of 650
each monthly meeting of the Public Procurement Review Board as 651
prescribed by the Public Procurement Review Board. If the Public 652
Procurement Review Board rejects any contract submitted for review 653
or approval, the Public Procurement Review Board shall clearly set 654
out the reasons for its action, including, but not limited to, the 655
policy that the agency has violated in its submitted contract and 656
any corrective actions that the agency may take to amend the 657
contract to comply with the rules and regulations of the Public 658
Procurement Review Board. 659
(4) All sole source contracts for personal and professional 660
services awarded by state agencies, other than those exempted 661
under Section 27-104-7(2)(f) and (8), whether approved by an 662
agency head or the Public Procurement Review Board, shall contain 663
in the procurement file a written determination for the approval, 664
using a request form furnished by the Public Procurement Review 665
Board. The written determination shall document the basis for the 666
determination, including any market analysis conducted in order to 667
ensure that the service required was practicably available from 668
only one (1) source. A memorandum shall accompany the request 669
form and address the following four (4) points: 670
(a) Explanation of why this service is the only service 671
that can meet the needs of the purchasing agency; 672
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(b) Explanation of why this vendor is the only 673
practicably available source from which to obtain this service; 674
(c) Explanation of why the price is considered 675
reasonable; and 676
(d) Description of the efforts that were made to 677
conduct a noncompetitive negotiation to get the best possible 678
price for the taxpayers. 679
(5) In conjunction with the State Personnel Board, the 680
Public Procurement Review Board shall develop and promulgate rules 681
and regulations to define the allowable legal relationship between 682
contract employees and the contracting departments, agencies and 683
institutions of state government under the jurisdiction of the 684
State Personnel Board, in compliance with the applicable rules and 685
regulations of the federal Internal Revenue Service (IRS) for 686
federal employment tax purposes. Under these regulations, the 687
usual common law rules are applicable to determine and require 688
that such worker is an independent contractor and not an employee, 689
requiring evidence of lawful behavioral control, lawful financial 690
control and lawful relationship of the parties. Any state 691
department, agency or institution shall only be authorized to 692
contract for personnel services in compliance with those 693
regulations. 694
(6) No member of the Public Procurement Review Board shall 695
use his or her official authority or influence to coerce, by 696
threat of discharge from employment, or otherwise, the purchase of 697
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ST: Local Governments Disaster Recovery
Emergency Loan Program; create.
commodities, the contracting for personal or professional 698
services, or the contracting for public construction under this 699
chapter. 700
(7) Notwithstanding any other laws or rules to the contrary, 701
the provisions of subsection (2) of this section shall not be 702
applicable to the Mississippi State Port Authority at Gulfport. 703
(8) Nothing in this section shall impair or limit the 704
authority of the Board of Trustees of the Public Employees' 705
Retirement System to enter into any personal or professional 706
services contracts directly related to their constitutional 707
obligation to manage the trust funds, including, but not limited 708
to, actuarial, custodial banks, cash management, investment 709
consultant and investment management contracts. Nothing in this 710
section shall impair or limit the authority of the State Treasurer 711
to enter into any personal or professional services contracts 712
involving the management of trust funds, including, but not 713
limited to, actuarial, custodial banks, cash management, 714
investment consultant and investment management contracts. 715
(9) Through December 31, 2026, the provisions of this 716
section related to rental agreements or leasing of real property 717
for the purpose of conducting agency business shall not apply to 718
the Office of Workforce Development created in Section 37-153-7. 719
SECTION 7. This act shall take effect and be in force from 720
and after its passage. 721