Shown verbatim: the complete text as captured from the official page posted by the Mississippi Legislature, fetched 2026-08-29. This is the enrolled version. The official bill page.
MISSISSIPPI LEGISLATURE 2026 Regular Session To: Accountability, Efficiency, Transparency By: Representative Ford (54th) House Bill 1171 (As Sent to Governor) AN ACT TO CREATE THE MISSISSIPPI GRANT AND SUBGRANT ADMINISTRATION TRANSPARENCY AND ACCOUNTABILITY OF NON-GOVERNMENTAL ORGANIZATIONS ACT OF 2026; TO ESTABLISH THAT THIS ACT SHALL BE CREATED TO ESTABLISH REQUIREMENTS THAT ENHANCE OVERSIGHT, ACCOUNTABILITY AND TRANSPARENCY IN GRANT ADMINISTRATION OF STATE AND FEDERAL FUNDS; TO DEFINE RELEVANT TERMS; TO ESTABLISH GRANT PROGRAM PERFORMANCE METRICS AND REQUIREMENTS; TO ESTABLISH GRANT ADMINISTRATION, FINANCIAL REPORTING AND LEADERSHIP DISCLOSURE REQUIREMENTS; TO CLARIFY WHAT CONSTITUTES PROHIBITED ACTIVITIES FOR THE USAGE OF GRANT FUNDS; TO PROVIDE INFORMATION THAT SHALL BE SUBJECT TO AUDITS OF NON-GOVERNMENTAL ORGANIZATIONS AND QUASI-PUBLIC ENTITIES; TO REQUIRE THAT REPORTS REQUIRED BY THIS ACT SHALL BE FILED WITHIN 180 DAYS AFTER FISCAL END OF YEAR AND AFTER OSA PERFORMS OR DIRECTS A COMPLIANCE AUDIT; TO AUTHORIZE DFA TO ENFORCE THE POLICIES AND PROCEDURES OF THIS ACT; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. (1) This act shall be known and may be cited as the "Mississippi Grant and Subgrant Administration Transparency and Accountability of Non-Governmental Organizations Act of 2026." (2) It is the intent of the Mississippi State Legislature to establish requirements that enhance oversight, accountability and transparency in grant administration of state and federal funds appropriated by the Mississippi State Legislature to Non-Governmental Organization grantees and subgrantees receiving state and federal funds appropriated by the State Legislature. SECTION 2. For the purpose of this act: (a) "Grant" means an award of financial assistance following a grant application process or other method of obtaining state or federal funds appropriated by the State Legislature from a state agency, board commission or other unit of government to an eligible nongovernmental recipient for specified project-based purposes. (b) "State agency" means any executive department, military department, government corporation, government controlled entity, quasi-government entity, corporation or other establishment in state government. (c) "Primary recipient" means any entity receiving grant funds appropriated by the State Legislature directly from a state agency, except for an individual or household. (d) "Subrecipient" means an entity that receives a subaward from a pass-through entity to carry out part of an award. The term subrecipient does not include a beneficiary or participant. A subrecipient may also be a recipient of other federal or state awards directly from a federal or state agency. Individual persons or households are not considered to be subrecipients under this section. (e) "Subaward" means an award of state or federal funds appropriated by the State Legislature provided by a pass-through entity to a subrecipient for the subrecipient to contribute to the goals and objectives of the project by carrying out part of a state award received by the pass-through entity. It does not include payments to a beneficiary or participant. (f) "Pass-through entity" means a recipient or subrecipient that provides a subaward to a subrecipient (including lower-tier subrecipients) to carry out part of a federal or state program. SECTION 3. (1) All state agencies that administer grants shall establish specific, measurable annual objectives and outcomes relating to the purpose of the grant. (2) Where appropriate, grant programs shall include long-term performance objectives for at least five (5) years into the future. (3) Primary recipients shall annually submit summary progress reports demonstrating advancement toward stated objectives. (4) Failure to meet reporting requirements or established metrics, unless required otherwise by federal law, shall result in: (a) Immediate suspension of grant payments pending corrective action; (b) Agency review for potential grant termination; and (c) Termination of grant award if metrics remain unmet in one hundred twenty (120) days following the due date of annual report. (5) The Department of Finance and Administration (DFA) shall establish a schedule for periodic review of all state grant programs. (6) Each state agency shall conduct comprehensive reviews of their existing grant programs every five (5) years, except for any program not expected to last for more than two (2) years. (7) Agencies shall submit recommendations to the Legislative Budget Office (LBO) regarding continuation, modification, or termination of reviewed programs at the conclusion of their comprehensive reviews as set forth in Section 3(4)(b) of this act. SECTION 4. (1) State agencies shall establish objective criteria for grant eligibility. (2) No preference shall be given based on: (a) Political affiliation; (b) Ideological orientation; (c) Prior receipt of federal and state grants, except with respect to documented violations of the prohibited activities outlined in subsections (9) and (10) of this section, unless required otherwise by federal law; or (d) Organization type or tax status, unless specifically required by federal law. (3) Grant eligibility shall not be restricted based on organization type or tax status, unless: (a) Explicitly required by federal or state law; or (b) Determined necessary based on documented programmatic requirements. (4) Primary recipients shall submit detailed annual financial reports, including: (a) Summary of expenditures; (b) Administrative costs; (c) Complete accounting of all funds redistributed to subrecipients; and (d) The purpose for all funds redistributed to subrecipients. (5) Subrecipients shall submit detailed annual financial reports, including: (a) Summary of expenditures; (b) Administrative costs; (c) Direct service expenses; (d) Supporting documentation for all expenses exceeding Twenty-five Thousand Dollars ($25,000.00); (e) Complete accounting of all funds redistributed to any additional subrecipients; and (f) The purpose for all funds redistributed to any additional subrecipients. (6) Any nongovernmental organization applying for grant funding or receiving grant funding of state or federal funds appropriated by the State Legislature shall require all executive officers and members of its governing board to submit a signed disclosure statement that includes: (a) Whether such individual currently serves in any professional capacity with decision-making authority regarding grant appropriations; (b) Whether such individual has, within the preceding five (5) years, served as an executive officer or member of a governing board for an organization at a time when that organization violated the reporting requirements of subsections (4) and (5) of this section; (c) Any criminal convictions for offenses related to bribery, corruption, fraud or other financial crimes; and (d) The nature, jurisdiction and disposition date of any such conviction. (7) Such disclosure statements shall: (a) Be submitted with the initial grant application; (b) Be updated within thirty (30) days of any change in leadership or relevant circumstances; and (c) Be certified as true and complete under penalty of perjury. (8) Failure to provide and timely update the disclosures in subsection (6) of this section, will subject the primary recipient or subrecipient of immediate termination of grant funds and a three-year debarment from receiving grant funds, including grant subawards, unless otherwise required by federal law. (9) Grant funds shall not be used by a primary recipient or subrecipient for any partisan political activities, initiative or referendum support or opposition, voter registration or Get-Out-the-Vote Campaigns. (10) Grant funds shall not be distributed to a primary recipient or subrecipient with a common board member with a grantee or subgrantee that provided the funds to the primary recipient or subrecipient without written notice and disclosure of the potential conflict to the grantee who provided the funds to the primary recipient or subrecipient. (11) Violation of subsections (9) and (10) of this section will subject the primary recipient or subrecipient of immediate termination of grant funds and a three-year debarment from receiving grant funds, including grant subawards, unless otherwise required by federal law. (12) Any primary recipient or subrecipient must show no grant funds were used indirectly or directly in an alleged violation of subsections (9) and (10) of this section to avoid sanctions. SECTION 5. (1) Any Non-Governmental Organization (NGO) or quasi-public entity that receives state or federal funds appropriated by the State Legislature as a grantee or subgrantee shall be subject to a compliance audit. (2) The audit shall include, at minimum: (a) Schedule of Expenditures of State Funds (SESF) for each: (i) Payment date; (ii) Amount; (iii) Description/object code; (iv) Vendor/payee legal name and persistent vendor ID; (v) Voucher ID; (vi) Contract/Award ID; (vii) PO/Release, if applicable; (viii) Fund; and (ix) Program/appropriation code; (b) Schedule of Revenues by source: (i) State-tax-derived funds; (ii) Other state funds; and (iii) Federal, local and private funds; (c) Subrecipient schedule: (i) Entity; (ii) Employer Identification Number (EIN)/Secretary of State (SOS) ID; (iii) Amount; (iv) Purpose; (v) Award/subaward ID; and (vi) Dates; (d) Related party transactions and conflict-of-interest disclosures; and (e) Findings with severity, questioned costs, criteria/condition/cause/effect and a Corrective Action Plan (CAP) with responsible official and timeline. (3) Auditees shall provide full access to books and records, including bank statements, contracts and amendments, payroll registers, invoices and subawards. All required schedules shall be delivered in machine-readable formats (CSV/JSON; Parquet as appropriate) using the join-key fields. (4) DFA shall publish the report, management letter, and Corrective Action Plan (CAP) on Transparency Mississippi and transmit them to the Legislative Budget Office (LBO). The report shall identify any payments that appear to diverge from the auditee's stated purposes or the statutory/contractual basis for receiving public funds. (5) Reports are due within one hundred eighty (180) days after the fiscal end of year and after the Office of the State Auditor (OSA) performs or directs a compliance audit, and the Office of the State Auditor (OSA) shall retain these report records for no less than seven (7) years. (6) Failure to submit material noncooperation, or obstruction authorizes, DFA may suspend payments, withhold new awards or recoup funds, and authorizes the Office of the State Auditor (OSA) to refer the matter to the Attorney General. (7) The auditee's schedules and Corrective Action Plan (CAP) shall be certified under penalty of perjury by an authorized officer and certified public accountant. SECTION 6. This act shall take effect and be in force from and after January 1, 2027.
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