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: Local and Private Legislation By: Representative House Bill 4110 (As Sent to Governor) AN ACT TO AUTHORIZE AND DIRECT THE BOARD OF TRUSTEES OF OKTIBBEHA COUNTY, MISSISSIPPI, TO ESTABLISH A RESERVE AND TRUST FUND; TO PROVIDE THAT NOT LESS THAN 80% OF THE PROCEEDS FROM THE SALE OF OCH REGIONAL MEDICAL CENTER, WHICH IS OWNED BY THE COUNTY, SHALL BE DEPOSITED INTO THE FUND; TO PROVIDE FOR THE ESTABLISHMENT OF THE BOARD OF TRUSTEES OF THE RESERVE AND TRUST FUND AND PROVIDE THAT ITS MEMBERSHIP SHALL BE THE MEMBERS OF THE BOARD OF SUPERVISORS OF OKTIBBEHA COUNTY; TO REQUIRE THE TRUSTEES TO CONTRACT WITH A QUALIFIED INSTITUTION FIDUCIARY TO PROVIDE INVESTMENT MANAGEMENT AND ADVISORY SERVICES FOR THE FUND; TO PRESCRIBE CERTAIN EARNINGS AND ANNUAL DISTRIBUTIONS OF THE FUND; TO PROVIDE THAT A CERTAIN PERCENTAGE OF THE EARNINGS MAY BE TRANSFERRED TO THE OKTIBBEHA COUNTY OCH PROCEEDS FUND FOR APPROPRIATION BY THE BOARD OF SUPERVISORS FOR ANY LAWFUL COUNTY PURPOSES, INCLUDING GENERAL OPERATIONS, MAINTENANCE AND CAPITAL IMPROVEMENTS; TO PROVIDE STRICT LIMITATIONS FOR WITHDRAWALS FROM THE CORPUS; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. The Legislature finds that the net proceeds from the sale of OCH Regional Medical Center constitute a one-time asset created through decades of investment by the citizens of Oktibbeha County. It is the purpose of this act to establish the Oktibbeha County Reserve and Trust Fund as a permanent endowment for the benefit of present and future generations, to maintain the inflation-adjusted purchasing power of the corpus in perpetuity, and to provide sustainable annual revenue for the continued improvement and maintenance of Oktibbeha County while preventing depletion or squandering of the principal. SECTION 2. As used in this act, unless a different meaning clearly appears in the context, the following terms shall have the following meaning: (a) "Board of supervisors" means the Board of Supervisors of Oktibbeha County, Mississippi. (b) "County" means Oktibbeha County, Mississippi. (c) "Fund" means the Oktibbeha County Reserve and Trust Fund created by this act. (d) "Net proceeds" means all proceeds from the sale of OCH Regional Medical Center after payment of all debts, obligations, and transaction costs. (e) "Corpus" means the amount initially deposited into the fund pursuant to Section 3 of this act plus all undistributed income and annual inflation adjustments calculated using the U.S. Consumer Price Index - All Urban Consumers (CPI-U) or its successor index. (f) "Earnings" means interest, dividends, and realized capital gains, net of reasonable administrative expenses. SECTION 3. (1) The board of supervisors is hereby authorized and directed to create the Oktibbeha County Reserve and Trust Fund and to deposit therein all, or any portion equal to or greater than eighty percent (80%), of the net proceeds. (2) On or before July 1, 2026, the board shall adopt a resolution specifying the exact dollar amount of net proceeds, which shall be not less than eighty percent (80%) of the net proceeds, to be initially deposited into the fund. Any net proceeds not deposited shall be placed into a separate special fund to be known as the "Oktibbeha County OCH Proceeds Fund" and shall remain available for appropriation for any lawful county purpose in the ordinary manner. (3) Upon adoption of the resolution, the amount deposited shall constitute the permanent corpus of the fund, and the protective provisions of Sections 5 and 6 of this act shall immediately and irrevocably apply. SECTION 4. (1) The board of supervisors shall serve as the board of trustees of the fund. (2) The trustees shall contract with a qualified institutional fiduciary (a bank or trust company authorized to do business in Mississippi and subject to supervision by the Mississippi Department of Banking and Consumer Finance or the Office of the Comptroller of the Currency) to provide investment management and advisory services. (3) The contract shall require the institutional fiduciary to: (a) Manage the fund's investments in full compliance with the Mississippi Uniform Prudent Investor Act as set out under Section 91-9-601 et seq., Mississippi Code of 1972; (b) Recommend annually the amount of earnings available for distribution under Section 5 of this act; (c) Provide written certification, before any proposed withdrawal from the corpus, that such withdrawal will not impair the long-term, inflation-adjusted purchasing power of the corpus; and (d) Deliver quarterly performance reports and an annual audited compliance statement to the board and the public. (4) The initial contract shall be awarded through competitive request-for-proposals no later than July 1, 2026. Subsequent contracts may be renewed or rebid, but no term shall exceed five (5) years without rebidding. (5) Reasonable fees of the institutional fiduciary (not to exceed one-half of one percent (0.5%) of fund assets annually) shall be paid from the fund as an administrative expense. (6) All meetings and records of the fund shall be subject to the Mississippi Open Meetings Act and Public Records Act. The Investment Policy Statement (IPS) for the fund shall be adopted and may be amended from time to time by resolution of the board of trustees. (7) (a) The Investment Policy Statement (IPS) for the fund shall be adopted and may be amended from time to time by resolution of the board of trustees. (b) The contracted institutional fiduciary shall prepare and recommend the initial IPS and any proposed amendments. (c) The board of trustees may adopt the IPS or amendment as recommended, or may adopt a modified version, provided that the institutional fiduciary certifies in writing that the adopted IPS, as modified, continues to comply with the Mississippi Uniform Prudent Investor Act and will reasonably preserve the inflation-adjusted purchasing power of the corpus in perpetuity. (d) If the institutional fiduciary cannot make that certification, the board may not adopt the modified IPS. SECTION 5. (1) On July 1 of each year, the institutional fiduciary shall calculate and recommend available earnings, not to exceed four percent (4%) of the average market value of the fund over the preceding thirty-six (36) months (or the life of the fund, if shorter). (2) Reasonable administrative expenses shall first be paid from earnings. (3) Up to eighty-five percent (85%) of the remaining earnings may be transferred to the Oktibbeha County OCH Proceeds Fund for appropriation by the board of supervisors for any lawful county purpose, including general operations, maintenance, and capital improvements. (4) Any earnings not distributed shall be added to the corpus. (5) No distribution of earnings shall occur in any year in which the inflation-adjusted value of the corpus is below the initial deposit amount established under Section 3 of this act. SECTION 6. After July 1, 2026, the following shall apply: (a) Withdrawals from the corpus shall be permitted only: (i) Up to five percent (5%) of the corpus in any fiscal year for extraordinary capital needs, and only upon: 1. A four-fifths (4/5) super majority vote of the full board of supervisors; 2. Written certification from the contracted institutional fiduciary that the withdrawals will not impair the long-term, inflation-adjusted purchasing power of the corpus; 3. A duly noticed public hearing with at least thirty (30) days' notice; and 4. Written findings that no reasonable alternative funding source exists. (ii) Unlimited amounts during a federally or state-declared emergency affecting Oktibbeha County, subject to the same supermajority vote and institutional fiduciary certification. (b) Any invasion of the corpus shall immediately suspend all earnings distributions, until the corpus (including accumulated inflation adjustments) is fully restored. One hundred percent (100%) of future income shall be applied to restoration until complete. (c) Within ninety (90) days of any corpus withdrawal, the board shall file a restoration plan with the Mississippi Attorney General and the Chancery Court of Oktibbeha County. SECTION 7. (1) By July 1 of each year, the trustees shall publish an audited financial report, including performance benchmarks, inflation-adjusted corpus calculations, and detailed justification of any withdrawals. (2) The Attorney General is granted standing to enforce the terms of this act. SECTION 8. If the fund balance ever reaches zero, the fund shall dissolve and this act shall stand repealed. However, depletion triggers an automatic investigation by the Mississippi Attorney General into potential mismanagement. SECTION 9. This act shall take effect and be in force from and after its passage.
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