AN ACT TO ENACT THE "STATE TREASURY EFFICIENCY AND TRANSPARENCY ACT"; TO AMEND SECTION 27-105-3, MISSISSIPPI CODE OF 1972, TO DEFINE THE TERMS "POOLED INVESTMENT VEHICLE," "STATE AGENCY" AND "STATE FISCAL OFFICER"; TO CREATE NEW SECTION 27-105-32, MISSISSIPPI CODE OF 1972, TO REQUIRE THE STATE TREASURER TO ANNUALLY REVIEW EACH PUBLIC FUND, ACCOUNT OR TRUST THAT RECEIVES INTEREST ALLOCATION FROM A POOLED INVESTMENT VEHICLE TO DETERMINE IF THE FUND, ACCOUNT OR TRUST THAT RECEIVES INTEREST HAD NO TRANSACTIONAL ACTIVITY, OTHER THAN THE RECEIPT OF INTEREST WITHIN THE PRIOR FISCAL YEAR; TO AUTHORIZE THE STATE TREASURER TO PRECLUDE CERTAIN FUNDS, ACCOUNTS OR TRUSTS FROM RECEIVED INTEREST; TO DIRECT CERTAIN FUNDS TO BE CLOSED OR CONSOLIDATED WITHIN THE STATE TREASURY; TO AMEND SECTION 27-105-33, MISSISSIPPI CODE OF 1972, TO AUTHORIZE AN EXCEPTION TO THE INVESTMENT REQUIREMENTS OF THIS CHAPTER UPON A DEMONSTRATION OF SUFFICIENT JUSTIFICATION; TO CREATE NEW SECTION 27-105-34, MISSISSIPPI CODE OF 1972, TO REQUIRE EACH STATE AGENCY TO REVIEW ITS FUNDS, ACCOUNTS AND TRUSTS WITHIN AND OUTSIDE OF THE STATE TREASURY AND REPORT CERTAIN INFORMATION TO THE TREASURER; TO REQUIRE THE TREASURER TO REPORT CERTAIN COMPILED INFORMATION TO THE LEGISLATIVE BUDGET OFFICE AND THE SENATE AND HOUSE LEGISLATIVE SERVICES OFFICE; TO AMEND SECTION 27-105-1, MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED PURPOSES.
SB2471 creates the “State Treasury Efficiency and Transparency Act” and revises Mississippi’s laws governing state treasury investments, pooled funds, and reporting. The bill directs the State Treasurer to annually review public funds, accounts, and trusts that receive interest from pooled investment vehicles and identify those with no transactional activity other than interest receipts. For those idle funds, the Treasurer may stop allocating interest, and—unless another law requires otherwise—work with the State Fiscal Officer and the relevant agency to close or consolidate the fund. It also defines key terms such as “pooled investment vehicle,” “state agency,” and “State Fiscal Officer,” and updates related treasury statutes to conform to the new framework.
The bill also requires each state agency to inventory its funds, accounts, and trusts, both inside and outside the State Treasury, and report detailed information about their purpose, legal basis, interest treatment, restrictions, and whether they can be closed or consolidated. The Treasurer must compile those reports, review them for accuracy, and submit recommendations to the Legislative Budget Office and legislative services offices, including suggestions for fund consolidation and statutory changes. The measure further allows the Treasurer to grant exceptions from standard investment requirements when a state agency shows sufficient justification, while encouraging agencies to keep excepted monies in pooled vehicles or interest-bearing accounts when possible.
SB2471 would expand oversight of state funds and change how certain dormant or low-activity accounts are handled within Mississippi’s treasury system. It amends Sections 27-105-1, 27-105-3, and 27-105-33 and adds new Sections 27-105-32 and 27-105-34 to the Mississippi Code, creating new reporting, review, and consolidation duties for the Treasurer, the Department of Finance and Administration, and state agencies. The bill could result in fewer inactive funds, more money being redirected to the General Fund where allowed, and more centralized management of public monies. It also adds a recurring reporting cycle tied to statewide elections and gives the State Fiscal Officer authority to disapprove payments if agencies fail to provide required information.
The bill appears to have broad support in both chambers based on the recorded votes, passing the Senate 52-0 and the House 116-0 as amended. That voting history suggests the measure was viewed favorably as an administrative and transparency reform rather than a controversial policy change. The absence of committee transcript material limits insight into detailed debate, but the unanimous votes indicate general agreement on improving treasury efficiency, fund oversight, and legislative visibility into public accounts.
The main points of potential contention are operational and legal rather than ideological. The bill gives the Treasurer authority to preclude interest allocations and to push for closure or consolidation of funds that have no transactional activity, which could raise concerns for agencies that rely on dedicated accounts or statutory interest retention. Another possible issue is the exception process under Section 27-105-33(4), which depends on the Treasurer’s judgment about whether a state agency has provided sufficient justification to depart from standard investment rules. Agencies may also object to the reporting burden and the possibility that the State Fiscal Officer can disapprove payments if required information is not submitted on time. However, the unanimous votes suggest these concerns did not prevent consensus.