Appropriation; Oil and Gas Board., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Appropriations B; Appropriations A

By: Representatives Bounds, Read, Anderson (122nd), Clark,
Eure, Hale, Jackson (11th), Pigott, Rosebud

House Bill 1897

(As Sent to Governor)

AN ACT APPROVING THE EXPENDITURE OF SPECIAL FUNDS FOR THE
PURPOSE OF DEFRAYING THE EXPENSES OF THE STATE OIL AND GAS BOARD FOR THE FISCAL
YEAR 2027.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The following sum, or so
much thereof as may be necessary, is appropriated out of any money in the State
General Fund not otherwise appropriated, for the support and maintenance of the
State Oil and Gas Board for the fiscal year beginning July 1, 2026,
and ending June 30, 2027.................................... $
2,200,000.00.

SECTION 2.  The following sum, or so much
thereof as may be necessary, is appropriated out of any money in the special
fund in the State Treasury to the credit of the State Oil and Gas Board which
is comprised of special source funds collected by or otherwise available to the
department, for the purpose of defraying the expenses of the department for the
fiscal year beginning July 1, 2026, and ending
June 30, 2027.................................... $ 5,232,487.00.

SECTION
3.  Of the funds appropriated under the provisions of this act, not
more than the following amount of funds, with the exception of the provisions
in this section, shall be expended only for "Personal Services,"
which includes "Vacancy Funding," for the following authorized number
of employment headcount:

FUNDING:

General Funds:               $
2,200,000.00

Special Funds:               $    227,686.00

Total Funds:                 $
2,427,686.00

PERSONAL SERVICES:

Employee Salaries,
Wages and

Fringe Benefits:            $
2,184,917.00

Progressions:                $
0.00

Vacancy Funding:             $
242,769.00

Total Personal
Services:      $  2,427,686.00

AUTHORIZED HEADCOUNT:

Permanent:                   35

Time-Limited:
0

As used in this section, the
term "Personal Services" shall mean funds provided under the major
object of expenditure category Personal Services for Salaries, Wages, and
Fringe Benefits.  Funds in this category shall not be transferred to any other
category.

It is the intention of the
Legislature to ensure compliance with the Variable Compensation Plan, as
outlined in Section 25-9-147, Mississippi Code of 1972.  Payment from these
funds shall be in accordance with the Variable Compensation Plan promulgated by
the Mississippi State Personnel Board.  It is the Legislature's intention that
no employee's salary falls below the minimum salary established by the Mississippi
State Personnel Board.

The State Personnel Board
shall determine and publish the projected annual cost of "Personal
Services" based on monthly and year-to-date payroll expenditures in
compliance with the provisions of this act.

With the funds herein
appropriated, it shall be the agency's responsibility to ensure that no single
personnel action or combination of personnel actions, when annualized, exceeds
the Fiscal Year 2027 appropriation for "Personal Services" with the
exception of escalated funds.  Further, it shall be the agency's responsibility
to ensure that funds required to be appropriated for "Personal Services"
for Fiscal Year 2028 do not exceed Fiscal Year 2027 funds appropriated for that
purpose unless programs or positions are added to the agency's Fiscal Year 2027
budget by the Mississippi Legislature.

If, at the time the agency
takes any action to change "Personal Services," the State Personnel
Board determines that the agency has taken or will take an action that would
cause the agency to exceed the funds appropriated in this act when annualized
for Fiscal Year 2027 or increase the need for "Personal Services" for
Fiscal Year 2028, when annualized, the State Personnel Board shall process no
salary actions until such time as the requirements of the provisions of this
section are met with the exception of new hires determined to be essential for
the agency.

When used in this section, "Vacancy
Funding" shall mean funds included in the Total Personal Services amount
listed above and designated for approved vacancies in Fiscal Year 2027.  These
funds are to be utilized to increase the number of filled headcounts that were
authorized but unfilled as of the last day of Fiscal Year 2026.  If the agency
fills additional headcounts after March 1, 2026, until the end of Fiscal Year
2026, the amount of available Vacancy Funding may be proportionally adjusted to
reflect the updated number of filled headcounts.  The agency shall be
responsible for ensuring that "Vacancy Funding" is used to increase
headcounts and not for promotions, title changes, in-range salary adjustments,
or any other mechanism for increasing salaries for current employees.

Any transfers or escalations
shall be made in accordance with the terms, conditions, and procedures established
by law or allowable under the terms set forth within this act.  The State
Personnel Board shall not escalate positions or increase the Personal Services
total without written approval from the Department of Finance and
Administration.  The Department of Finance and Administration shall not provide
written approval to escalate any funds for salaries and/or headcounts without
proof of availability of new or additional funds above the appropriated level.
Unless specifically noted, all Fiscal Year 2026 escalated headcounts have been
accounted for and shall be converted to authorized time-limited headcounts.

No general funds authorized
to be expended herein shall be used to replace federal funds and/or other
special funds used for salaries authorized under the provisions of this act and
which are withdrawn and no longer available.

None of the funds herein
appropriated shall be used in violation of the Internal Revenue Service's
Publication 15-A relating to the reporting of income paid to contract
employees, as interpreted by the Office of the State Auditor.

If the agency's total
authorized headcount decreases from Fiscal Year 2026 to Fiscal Year 2027, it
will be the agency's discretion as to what headcounts are removed.

SECTION 4.  It is the intention of the
Legislature that the State Oil and Gas Board shall maintain complete accounting
and personnel records related to the expenditure of all funds appropriated
under this act and that such records shall be in the same format and level of
detail as maintained for Fiscal Year 2026.  It is further the intention of the
Legislature that the agency's budget request for Fiscal Year 2028 shall be
submitted to the Joint Legislative Budget Committee in a format and level of
detail comparable to the format and level of detail provided during the Fiscal
Year 2027 budget request process.

SECTION 5.
The State Oil and Gas Board shall have the authority to receive, budget and
expend funds from any source not to exceed Two Hundred Thousand Dollars
($200,000.00) for the Comprehensive Data Management Program in accordance with
rules and regulations of the Department of Finance and Administration in a
manner consistent with the escalation of federal funds.

SECTION 6.  The following sum, or so much
thereof as may be necessary, is reappropriated out of any money in the Capital
Expense Fund not otherwise appropriated, for the Oil and Gas Board for the
purpose of reauthorizing the expenditure of Capital Expense Funds as authorized
in House Bill 9, 2025 First Extraordinary Session, to provide for orphan well
plugging for the fiscal year beginning July 1, 2026, and ending June 30, 2027.......................................................

.............................................. $
1,012,347.00.

Notwithstanding the amount
reappropriated under the provisions of this section, in no event shall the
amount expended exceed the unexpended balances as of June 30, 2026. In
addition, this reappropriation shall not change the purpose for which the funds
were originally authorized.

SECTION 7.  It
is the intention of the Legislature that whenever two (2) or more bids are
received by this agency for the purchase of commodities or equipment, and
whenever all things stated in such received bids are equal with respect to
price, quality and service, the Mississippi Industries for the Blind shall be
given preference.  A similar preference shall be given to the Mississippi
Industries for the Blind whenever purchases are made without competitive bids.

SECTION 8.  It
is the intention of the Legislature that the funds herein appropriated shall be
expended in compliance with Section 27-104-25, Mississippi Code of 1972, that
no state agency shall incur obligations or indebtedness in excess of their
appropriation and that the responsible officers, either personally or upon
their official bonds, shall be held responsible for actions contrary to this provision.

SECTION 9.
Of the funds appropriated under the provisions of Section 2 of this act,
Two Million Dollars ($2,000,000.00), or so much thereof, shall be derived out
of any money in the State Treasury to the credit of the Capital Expense Fund,
as created in Section 27-103-303, Mississippi Code of 1972, and allocated in a
manner as determined by the Treasurer's Office. These funds are provided
to the Oil and Gas Board for the purpose of emergency orphan well plugging.

SECTION 10.
The money herein appropriated shall be paid by the State Treasurer out of any
money in the State Treasury to the credit of the proper fund or funds as set
forth in this act, upon warrants issued by the State Fiscal Officer; and the
State Fiscal Officer shall issue his warrants upon requisitions signed by the
proper person, officer or officers, in the manner provided by law.

SECTION 11.
This act shall take effect and be in force from and after July 1, 2026.