HB 844 — Office of Workforce Development; revise funding mechanism for and create Mississippi K-12 Workforce Development Grant Program.

(c) Two (2) representatives of businesses in the state appointed by the Lieutenant Governor;

(d) Two (2) representatives of businesses in the state appointed by the Governor from a list of three (3) recommendations from the Speaker of the House;

(g) The Governor may appoint additional members if required by the federal Workforce Innovation and Opportunity Act, or any successive acts.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 18(ENK\EW) (h)(g) MembersThe ofGovernor themay boardappoint shalladditional servemembers aif termrequired ofby fourthe (4)federal years,Workforce Innovation and shallOpportunity notAct, serveor moreany thansuccessive threeacts. (3) consecutive terms.

(h) Members of the board shall serve a term of four (4) years, and shall not serve more than three (3) consecutive terms.

(4) The Mississippi Department of Employment Security shall establish limits on administrative costs for each portion of Mississippi's workforce development system consistent with the federalH. Workforce Investment Act or any future federal workforce legislation.

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 19(ENK\EW) (5)federal The Mississippi State Workforce Investment BoardAct shallor haveany thefuture followingfederal duties.workforce legislation.

(5) The Mississippi State Workforce Investment Board shall have the following duties.

and (ii) Review local workforce development plans that reflect the use of funds from the federal Workforce Investment Act, Workforce Innovation and Opportunity Act, the Wagner-Peyser Act and the amendment or successor legislation to the acts, and theH. Mississippi Comprehensive Workforce Training and Education Consolidation Act;

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 20(ENK\EW) (c) Recommend to the officeMississippi theComprehensive designation of local workforce investment areas as required in Section 116 of the federal Workforce InvestmentTraining Act of 1998 and theEducation WorkforceConsolidation InnovationAct; and Opportunity Act of 2014.

(c) Recommend to the office the designation of local workforce investment areas as required in Section 116 of the federal Workforce Investment Act of 1998 and the Workforce Innovation and Opportunity Act of 2014.

(e) Recommend comprehensive, results-oriented measures that shall be applied to all of Mississippi's workforce development system programs;

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 21(ENK\EW) (f)(e) AssistRecommend thecomprehensive, Governorresults-oriented inmeasures thethat establishmentshall andbe managementapplied of a one-stop employment and training system conforming to theall requirements of theMississippi's federalworkforce Workforcedevelopment Investmentsystem Actprograms; of 1998 and the Workforce Innovation and Opportunity Act of 2014, as amended, recommending policy for implementing the Governor's approved plan for employment and training activities and services within the state.

(f) Assist the Governor in the establishment and management of a one-stop employment and training system conforming to the requirements of the federal Workforce Investment Act of 1998 and the Workforce Innovation and Opportunity Act of 2014, as amended, recommending policy for implementing the Governor's approved plan for employment and training activities and services within the state.

(g) To provide authority, in accordance with any executive order of the Governor, for developing the necessary collaboration among state agencies at the highest level for accomplishing the purposes of this article;

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 22(ENK\EW) (h)(g) To monitorprovide theauthority, effectivenessin accordance with any executive order of the workforceGovernor, developmentfor centersdeveloping andthe WINnecessary jobcollaboration centers;among state agencies at the highest level for accomplishing the purposes of this article;

(h) To monitor the effectiveness of the workforce development centers and WIN job centers;

and (n)H. To assist the Governor in carrying out any other responsibility required by the federal Workforce Investment Act of 1998, as amended and the Workforce Innovation and Opportunity Act, successor legislation and amendments.

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 23(ENK\EW) (6)(n) TheTo Mississippiassist Statethe WorkforceGovernor Investmentin Boardcarrying shallout coordinateany allother trainingresponsibility programsrequired andby fundsthe withinfederal itsWorkforce purview,Investment consistentAct withof the1998, federalas Workforceamended Investmentand Act,the Workforce Innovation and Opportunity Act, amendments and successor legislation to these acts, and otheramendments. relevant federal law.

(6) The Mississippi State Workforce Investment Board shall coordinate all training programs and funds within its purview, consistent with the federal Workforce Investment Act, Workforce Innovation and Opportunity Act, amendments and successor legislation to these acts, and other relevant federal law.

(7) The State Workforce Investment Board shall establish an executive committee, which shall consist of the following State Workforce Investment Board members:

(a) The Chair of the State Workforce Investment Board;

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 24(ENK\EW) (b)(7) TwoThe (2)State businessWorkforce representativesInvestment currentlyBoard servingshall onestablish thean stateexecutive boardcommittee, selectedwhich byshall consist of the Governor;following State Workforce Investment Board members:

(a) The Chair of the State Workforce Investment Board;

(b) Two (2) business representatives currently serving on the state board selected by the Governor;

(a) Be a person with extensive experience in development of economic, human and physical resources, and promotionH. of industrial and commercial development.

The executive director shall have a bachelor's degree from a state-accredited institution and no less than eight (8) years of professional experience related to workforce or economic development;

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 25(ENK\EW) (b)promotion Perform the functions necessary for the daily operation and administration of theindustrial office, with oversight from the executive committee and thecommercial Statedevelopment. Workforce Investment Board, to fulfill the duties of the state board as described in Chapter 476, Laws of 2020;

The executive director shall have a bachelor's degree from a state-accredited institution and no less than eight (8) years of professional experience related to workforce or economic development;

(b) Perform the functions necessary for the daily operation and administration of the office, with oversight from the executive committee and the State Workforce Investment Board, to fulfill the duties of the state board as described in Chapter 476, Laws of 2020;

and (g)H. Perform any other actions he or she, in consultation with the executive committee, deems necessary to fulfill the duties under Chapter 476, Laws of 2020.

(9) The Office of Workforce Development and Mississippi Community College Board shall collaborate in the administration H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 26(ENK\EW) and(g) oversightPerform ofany other actions he or she, in consultation with the Mississippiexecutive Workforcecommittee, Enhancementdeems Trainingnecessary Fundto andfulfill Mississippithe Worksduties Fund,under asChapter described476, inLaws Sectionof 71-5-353.2020.

(9) The Office of Workforce Development and Mississippi Community College Board shall collaborate in the administration and oversight of the Mississippi Workforce Enhancement Training Fund and Mississippi Works Fund, as described in Section 71-5-353.

* * * (b)H. With respect to specific workforce training projects:

B.

No.

844 *HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802PH PAGE 27(ENK\EW) (b) With respect to specific workforce training projects:

H.(iv) The specific business entity that is the beneficiary of the project;

B.

No.

844 *HR43/R802CS.1* ~ OFFICIAL ~ 23/HR43/R802CS.1 PAGE 27(ENK\EW) (iv) The specific business entity that is the beneficiary of the project;

and (c) With respect to the grants that have been awarded under the Mississippi K-12 Workforce Development Grant Program created in Section 2 of this act:

and (iv) How the grant has been used since it was awarded.awarded;

and (d) With respect to the office's authority to select tools and resources, including necessary online platforms and similar systems in furtherance of the mission of the office:

(i) The policies that the office has adopted or amended on the process for the selection of tools and resources, H.

B.

No.

844 *HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802PH PAGE 28(ENK\EW) including necessary online platforms and similar systems in furtherance of the mission of the office;

(ii) The eligible entities that the office determined may provide services, such as companies, nonprofit organizations, or other similar groups;

(iii) Any tools and resources, including necessary online platforms and similar systems in furtherance of the mission of the office, that have been selected by the office;

and (iv) What entity received the benefit of the tools and resources that were selected.

H.(a) Direct access to accounting and banking statements for all funds under its direction to ensure accurate and efficient management of funds and to improve internal control;

(b) The ability to enter into nondisclosure agreements to effectively support economic development activities and the H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 28(ENK\EW)29(ENK\EW) (a)proprietary Directnature accessof tocustomized accountingtraining and banking statements for allexisting funds under its direction to ensure accurate and efficientnew managementindustry; of funds and to improve internal control;

(b) The ability to enter into nondisclosure agreements to effectively support economic development activities and the proprietary nature of customized training for existing and new industry;

and (e) To contract with state agencies, governing authorities or economic and workforce development entities for shared programmatic efforts and support service or joint employment of personnel in order to further the office's purposes.purposes;

Throughand December(f) 31,To 2024,determine, subject to appropriation, the provisionsneed for and, if desired, the selection of Sectiontools 27-104-7and relatedresources, toincluding rentalnecessary agreementsonline orplatforms leasingand similar systems in furtherance of realthe propertymission forof the H.office, through processes established in policies adopted by the office that are deemed to be practical, feasible and in the public interest.

These H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 29(ENK\EW)30(ENK\EW) purposeprocesses ofshall conductingoutline agencyeligible businessentities that may provide such services, such as companies, nonprofit organizations, or other similar groups and shall notensure applythe tooffice determines metrics for success, including deliverables as required by the office.

Through December 31, 2024, the provisions of Section 27-104-7 related to rental agreements or leasing of real property for the purpose of conducting agency business shall not apply to the office.

(b) The initial terms of each appointee shall be as follows:

(i) One (1) member appointed by the Governor to serve for a term ending on June 30, 2019;

(ii) One (1) member appointed by the Governor to serve for a term ending on June 30, 2020;

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 30(ENK\EW)31(ENK\EW) (iii)(b) OneThe (1)initial memberterms appointedof byeach theappointee Governorshall tobe serveas forfollows: a term ending on June 30, 2021;

(i) One (1) member appointed by the Governor to serve for a term ending on June 30, 2019;

(ii) One (1) member appointed by the Governor to serve for a term ending on June 30, 2020;

(iii) One (1) member appointed by the Governor to serve for a term ending on June 30, 2021;

Any person, or any employee or owner of aH. company, who is a principal of the source providing a personal or professional service shall not be appointed to the Public Procurement Review Board if the principal owns or controls a greater than five percent (5%) interest or has an ownership value of One Million Dollars ($1,000,000.00) in the source's business, whichever is smaller.

No member shall be an officer or employee H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 31(ENK\EW)32(ENK\EW) a company, who is a principal of the Statesource ofproviding Mississippia whilepersonal servingor asprofessional aservice votingshall membernot onbe appointed to the Public Procurement Review Board.Board if the principal owns or controls a greater than five percent (5%) interest or has an ownership value of One Million Dollars ($1,000,000.00) in the source's business, whichever is smaller.

No member shall be an officer or employee of the State of Mississippi while serving as a voting member on the Public Procurement Review Board.

Minutes shall be kept of the proceedings of each meeting, copies of which shall be filed on a monthly basis with the chairs of the Accountability, Efficiency and Transparency Committees of the SenateH. and House of Representatives and the chairs of the Appropriations Committees of the Senate and House of Representatives.

(2) The Public Procurement Review Board shall have the following powers and responsibilities:

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 32(ENK\EW)33(ENK\EW) (a)Senate Approveand allHouse purchasingof regulationsRepresentatives governingand the purchasechairs orof leasethe byAppropriations anyCommittees agency,of asthe definedSenate inand SectionHouse 31-7-1, of commoditiesRepresentatives. and equipment, except computer equipment acquired pursuant to Sections 25-53-1 through 25-53-29;

(2) The Public Procurement Review Board shall have the following powers and responsibilities:

(a) Approve all purchasing regulations governing the purchase or lease by any agency, as defined in Section 31-7-1, of commodities and equipment, except computer equipment acquired pursuant to Sections 25-53-1 through 25-53-29;

theH. terms of the lease;

B.

No.

844 *HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802PH PAGE 34(ENK\EW) the terms of the lease;

any other specific H.terms or conditions of the agency;

B.

No.

844 *HR43/R802CS.1* ~ OFFICIAL ~ 23/HR43/R802CS.1 PAGE 33(ENK\EW) terms or conditions of the agency;

However, the provisions in this paragraph shall not be construed to prohibit the rejection of a bid when only one (1)H. bid is received.

Such rejection shall be placed in the minutes.

For the purposes of this paragraph, the term "minority business" means a business which is owned by a person who is a citizen or lawful permanent resident of the United States and who is:

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 34(ENK\EW)35(ENK\EW) (i)(1) Black:bid is received.

Such rejection shall be placed in the minutes.

For the purposes of this paragraph, the term "minority business" means a business which is owned by a person who is a citizen or lawful permanent resident of the United States and who is:

(i) Black:

(f) Promulgate rules and regulations governing the solicitation and selection of contractual services personnel, including personal and professional services contracts for any form of consulting, policy analysis, public relations, marketing, public affairs, legislative advocacy services or any other contract that the board deems appropriate for oversight, with the exception of any personal service contracts entered into by any agency that employs only nonstate service employees as defined in H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 35(ENK\EW)36(ENK\EW) form of consulting, policy analysis, public relations, marketing, public affairs, legislative advocacy services or any other contract that the board deems appropriate for oversight, with the exception of any personal service contracts entered into by any agency that employs only nonstate service employees as defined in Section 25-9-107(c), any personal service contracts entered into for computer or information technology-related services governed by the Mississippi Department of Information Technology Services, any personal service contracts entered into by the individual state institutions of higher learning, any personal service contracts entered into by the Mississippi Department of Transportation, any personal service contracts entered into by the Department of Human Services through June 30, 2019, which the Executive Director of the Department of Human Services determines would be useful in establishing and operating the Department of Child Protection Services, any personal service contracts entered into by the Department of Child Protection Services through June 30, 2019, any contracts for entertainers and/or performers at the Mississippi State Fairgrounds entered into by the Mississippi Fair Commission, any contracts entered into by the Department of Finance and Administration when procuring aircraft maintenance, parts, equipment and/or services, any contract entered into by the Department of Public Safety for service on specialized equipment and/or software required for the operation at such specialized equipment for use by the Office of Forensics Laboratories, any personal or professional service contract entered into by the Mississippi Department of Health and/or the Department of Revenue solely in connection with their respective responsibilities under the Mississippi Medical Cannabis Act from February 2, 2022, through June 30, 2023, any contract for attorney, accountant, H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 36(ENK\EW)37(ENK\EW) personal or professional service contract entered into by the Mississippi Department of Health and/or the Department of Revenue solely in connection with their respective responsibilities under the Mississippi Medical Cannabis Act from February 2, 2022, through June 30, 2023, any contract for attorney, accountant, actuary auditor, architect, engineer, anatomical pathologist, utility rate expert services, any personal service contracts approved by the Executive Director of the Department of Finance and Administration and entered into by the Coordinator of Mental Health Accessibility through June 30, 2022, any personal or professional services contract entered into by the State Department of Health in carrying out its responsibilities under the ARPA Rural Water Associations Infrastructure Grant Program through June 30, 2026, and any personal or professional services contract entered into by the Mississippi Department of Environmental Quality in carrying out its responsibilities under the Mississippi Municipality and County Water Infrastructure Grant Program Act of 2022, through June 30, 2026.

Any rules and regulation changes related to personal and professional services contracts that the Public Procurement Review Board may propose shall be submitted to the Chairs of the Accountability, Efficiency and Transparency Committees of the Senate and House of RepresentativesH. and the Chairs of the Appropriation Committees of the Senate and House of Representatives at least fifteen (15) days before the board votes on the proposed changes, and those rules and regulation changes, if adopted, shall be promulgated in accordance with the Mississippi Administrative Procedures Act;

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 37(ENK\EW)38(ENK\EW) (g)Representatives Approveand allthe personalChairs andof professionalthe servicesAppropriation contractsCommittees involvingof the expendituresSenate ofand fundsHouse inof excessRepresentatives ofat Seventy-fiveleast Thousandfifteen Dollars(15) ($75,000.00),days exceptbefore asthe providedboard invotes paragraphon (f)the ofproposed thischanges, subsectionand (2)those rules and regulation changes, if adopted, shall be promulgated in subsectionaccordance (8);with the Mississippi Administrative Procedures Act;

(g) Approve all personal and professional services contracts involving the expenditures of funds in excess of Seventy-five Thousand Dollars ($75,000.00), except as provided in paragraph (f) of this subsection (2) and in subsection (8);

(i)H. Agency requirements may be fulfilled by procuring services performed incident to the state's own programs.

The agency head shall determine in writing whether the price represents a fair market value for the services.

When the procurements are made from other governmental entities, the H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 38(ENK\EW)39(ENK\EW) private(i) sectorAgency needrequirements notmay be solicited;fulfilled by procuring services performed incident to the state's own programs.

The agency head shall determine in writing whether the price represents a fair market value for the services.

When the procurements are made from other governmental entities, the private sector need not be solicited;

(l) Authorize personal and professional service contracts to be effective for more than one (1) year provided a funding condition is included in any such multiple year contract, except the State Board of Education, which shall have the authorityH. to enter into contractual agreements for student assessment for a period up to ten (10) years.

The State Board of Education shall procure these services in accordance with the Public Procurement Review Board procurement regulations;

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 39(ENK\EW)40(ENK\EW) (m)authority Requestto theenter Stateinto Auditorcontractual toagreements conductfor astudent performanceassessment auditfor ona anyperiod personalup orto professionalten service(10) contract;years.

The State Board of Education shall procure these services in accordance with the Public Procurement Review Board procurement regulations;

(m) Request the State Auditor to conduct a performance audit on any personal or professional service contract;

(iii) Any agency alleging to have a sole source for any personal or professional service, other than those exemptedH. under paragraph (f) of this subsection (2) and subsection (8), shall publish on the procurement portal website established by Sections 25-53-151 and 27-104-165, for at least fourteen (14) days, the terms of the proposed contract for those services.

In H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 40(ENK\EW)41(ENK\EW) addition,exempted theunder publicationparagraph (f) of this subsection (2) and subsection (8), shall include,publish buton isthe notprocurement limitedportal to,website established by Sections 25-53-151 and 27-104-165, for at least fourteen (14) days, the followingterms information:of the proposed contract for those services.

In addition, the publication shall include, but is not limited to, the following information:

(iv) If any person or entity objects and proposes that the personal or professional service published under subparagraph (iii) of this paragraph (o) is not a sole source service and can be provided by another person or entity, then the objecting person or entity shall notify the Public Procurement ReviewH. Board and the agency that published the proposed sole source contract with a detailed explanation of why the personal or professional service is not a sole source service.

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 41(ENK\EW)42(ENK\EW) (v)Review 1.Board and the agency that published the proposed sole source contract with a detailed explanation of why the personal or professional service is not a sole source service.

(v) 1.

(vi) The Public Procurement Review Board shall prepare and submit a quarterly report to the House of Representatives and Senate Accountability, Efficiency and Transparency Committees that details the sole source contracts H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 42(ENK\EW)43(ENK\EW) (vi) The Public Procurement Review Board shall prepare and submit a quarterly report to the House of Representatives and Senate Accountability, Efficiency and Transparency Committees that details the sole source contracts presented to the Public Procurement Review Board and the reasons that the Public Procurement Review Board approved or rejected each contract.

(4) All sole source contracts for personal and professional services awarded by state agencies, other than those exempted under Section 27-104-7(2)(f) and (8), whether approved by an agency head or the Public Procurement Review Board, shall contain in the procurement file a written determination for the approval, using a request form furnished by the Public Procurement Review H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 43(ENK\EW)44(ENK\EW) under Section 27-104-7(2)(f) and (8), whether approved by an agency head or the Public Procurement Review Board, shall contain in the procurement file a written determination for the approval, using a request form furnished by the Public Procurement Review Board.

(5) In conjunction with the State Personnel Board, the Public Procurement Review Board shall develop and promulgate rules and regulations to define the allowable legal relationship between contract employees and the contracting departments, agencies and institutions of state government under the jurisdiction of the State Personnel Board, in compliance with the applicable rules and regulations of the federal Internal Revenue Service (IRS) for federalH. employment tax purposes.

Under these regulations, the usual common law rules are applicable to determine and require that such worker is an independent contractor and not an employee, requiring evidence of lawful behavioral control, lawful financial H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 44(ENK\EW)45(ENK\EW) controlfederal andemployment lawfultax relationshippurposes. of the parties.

Under these regulations, the usual common law rules are applicable to determine and require that such worker is an independent contractor and not an employee, requiring evidence of lawful behavioral control, lawful financial control and lawful relationship of the parties.

(9) Notwithstanding the exemption of personal and professional services contracts entered into by the Department of Human Services and personal and professional services contracts entered into by the Department of Child Protection Services from the provisions of this section under subsection (2)(f), before the H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 45(ENK\EW)46(ENK\EW) (9) Notwithstanding the exemption of personal and professional services contracts entered into by the Department of Human Services and personal and professional services contracts entered into by the Department of Child Protection Services from the provisions of this section under subsection (2)(f), before the Department of Human Services or the Department of Child Protection Services may enter into a personal or professional service contract, the department(s) shall give notice of the proposed personal or professional service contract to the Public Procurement Review Board for any recommendations by the board.

(10) Through December 31, 2024, the provisions of this section related to rental agreements or leasing of real property for the purpose of conducting agency business shall not apply to the Office of Workforce Development created in Section 37-153-7.

SECTION 5.

Section 71-5-355, Mississippi Code of 1972, is amended as follows:

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 46(ENK\EW)47(ENK\EW) 71-5-355.(10) Through December 31, 2024, the provisions of this section related to rental agreements or leasing of real property for the purpose of conducting agency business shall not apply to the Office of Workforce Development created in Section 37-153-7.

SECTION 5.

Section 71-5-355, Mississippi Code of 1972, is amended as follows:

71-5-355.

(e) For the computation of modified rates, "eligible employer" means an employer whose experience-rating record has been chargeable with benefits throughout the thirty-six (36) consecutive calendar-month period ending on the computation date, except that any employer who has not been subject to the Mississippi Employment Security Law for a period of time sufficient to meet the thirty-six (36) consecutive calendar-month requirement shall be an eligible employer if his or her experience-rating record has been chargeable throughout not less H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 47(ENK\EW)48(ENK\EW) consecutive calendar-month period ending on the computation date, except that any employer who has not been subject to the Mississippi Employment Security Law for a period of time sufficient to meet the thirty-six (36) consecutive calendar-month requirement shall be an eligible employer if his or her experience-rating record has been chargeable throughout not less than the twelve (12) consecutive calendar-month period ending on the computation date.

(f) With respect to any tax year, "reserve ratio" means the ratio which the total amount available for the payment of benefits in the Unemployment Compensation Fund, excluding any amount which has been credited to the account of this state under Section 903 of the Social Security Act, as amended, and which has been appropriated for the expenses of administration pursuant to Section 71-5-457 whether or not withdrawn from such account, on October 31 (close of business) of each calendar year bears to the H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 48(ENK\EW)49(ENK\EW) benefits in the Unemployment Compensation Fund, excluding any amount which has been credited to the account of this state under Section 903 of the Social Security Act, as amended, and which has been appropriated for the expenses of administration pursuant to Section 71-5-457 whether or not withdrawn from such account, on October 31 (close of business) of each calendar year bears to the aggregate of the taxable payrolls of all employers for the twelve (12) calendar months ending on June 30 next preceding.

(i) The "exposure criterion" (EC) is defined as the cash balance of the Unemployment Compensation Fund which is available for the payment of benefits as of November 16 of each calendar year or the next working day if November 16 falls on a holiday or a weekend, divided by the total wages, exclusive of wages paid by all state agencies, all political subdivisions, H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 49(ENK\EW)50(ENK\EW) (i) The "exposure criterion" (EC) is defined as the cash balance of the Unemployment Compensation Fund which is available for the payment of benefits as of November 16 of each calendar year or the next working day if November 16 falls on a holiday or a weekend, divided by the total wages, exclusive of wages paid by all state agencies, all political subdivisions, reimbursable nonprofit corporations, and tax-exempt public service employment, for the twelve-month period ending June 30 immediately preceding such date.

If December is the final month of the period used to compute the numerator, then the twelve-month period endingH. the following June 30 will be used for the denominator.

Benefits and total wages used in the computation of the cost rate criterion shall exclude all benefits and total wages applicable to state agencies, political subdivisions, reimbursable nonprofit corporations, and tax-exempt PSE employment.

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 50(ENK\EW)51(ENK\EW) Theending CRCthe shallfollowing beJune computed30 aswill thebe averageused for the highestdenominator. monthly value of the cost rate criterion computations during each of the economic cycles since the calendar year 1974 as defined by the National Bureau of Economic Research.

Benefits and total wages used in the computation of the cost rate criterion shall exclude all benefits and total wages applicable to state agencies, political subdivisions, reimbursable nonprofit corporations, and tax-exempt PSE employment.

The CRC shall be computed as the average for the highest monthly value of the cost rate criterion computations during each of the economic cycles since the calendar year 1974 as defined by the National Bureau of Economic Research.

However, if the IUR falls below two and five-tenths percent (2.5%) for any period July to June the target SOFI shall be 1.2 until suchH. time as the computed SOFI is equal to or greater than 1.0 or the IUR is equal to or greater than two and five-tenths percent (2.5%), at which point the target SOFI shall return to 1.0.

(l) No employer's unemployment contribution general experience rate plus individual unemployment experience rate shall H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 51(ENK\EW)52(ENK\EW) exceedsuch fivetime as the computed SOFI is equal to or greater than 1.0 or the IUR is equal to or greater than two and four-tenthsfive-tenths percent (5.4%).(2.5%), at which point the target SOFI shall return to 1.0.

(l) No employer's unemployment contribution general experience rate plus individual unemployment experience rate shall exceed five and four-tenths percent (5.4%).

(ii) Benefits paid to an eligible individual shall be charged against the experience-rating record of his or her base period employers in the proportion to which the wages paid by each base period employer bears to the total wages paid to the individual by all the base period employers, provided that H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 52(ENK\EW)53(ENK\EW) (ii) Benefits paid to an eligible individual shall be charged against the experience-rating record of his or her base period employers in the proportion to which the wages paid by each base period employer bears to the total wages paid to the individual by all the base period employers, provided that benefits shall not be charged to an employer's experience-rating record if the department finds that the individual:

Extended benefits paid under the provisions of Section 71-5-541 which are not reimbursable from federalH. funds shall be charged to the experience-rating record of base period employers;

6.

Is still working for such employer on a regular part-time basis under the same employment conditions as hired.

Provided, however, that benefits shall be charged against H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 53(ENK\EW)54(ENK\EW) anfederal employerfunds ifshall anbe eligiblecharged individualto isthe paidexperience-rating benefitsrecord whoof isbase stillperiod workingemployers; for such employer on a part-time "as-needed" basis;

6.

Is still working for such employer on a regular part-time basis under the same employment conditions as hired.

Provided, however, that benefits shall be charged against an employer if an eligible individual is paid benefits who is still working for such employer on a part-time "as-needed" basis;

Was paid benefits as a result of a fraudulent claim, provided notification was made to the Mississippi Department of Employment Security in writing or by emailH. by the employer, within ten (10) days of the mailing of the notice of claim filed to the employer's last-known address.

(iii) Notwithstanding any other provision contained herein, an employer shall not be noncharged when the department finds that the employer or the employer's agent of record was at fault for failing to respond timely or adequately to H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 54(ENK\EW)55(ENK\EW) theemail requestby of the departmentemployer, forwithin informationten relating(10) todays anof unemployment claim that was subsequently determined to be improperly paid, unless the employermailing orof the employer'snotice agent of recordclaim showsfiled good cause for having failed to respond timely or adequately to the requestemployer's oflast-known theaddress. department for information.

(iii) Notwithstanding any other provision contained herein, an employer shall not be noncharged when the department finds that the employer or the employer's agent of record was at fault for failing to respond timely or adequately to the request of the department for information relating to an unemployment claim that was subsequently determined to be improperly paid, unless the employer or the employer's agent of record shows good cause for having failed to respond timely or adequately to the request of the department for information.

(iv) The department shall compute a benefit ratio for each eligible employer, which shall be the quotient obtained by dividing the total benefits charged to his or her experience-rating record during the period his or her experience-rating record has been chargeable, but not less than the twelve (12) consecutive calendar-month period nor more than the thirty-six (36) consecutive calendar-month period ending on the computation date, by his or her total taxable payroll for the same period on which all unemployment insurance contributions due have been paid on or before the September 30 immediately following H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 55(ENK\EW)56(ENK\EW) experience-rating record has been chargeable, but not less than the twelve (12) consecutive calendar-month period nor more than the thirty-six (36) consecutive calendar-month period ending on the computation date, by his or her total taxable payroll for the same period on which all unemployment insurance contributions due have been paid on or before the September 30 immediately following the computation date.

The department shall determine annually, for the thirty-six (36) consecutive calendar-monthH. period ending on the computation date, the amount of benefits which were not charged to the record of any employer and of benefits which were ineffectively charged to the employer's experience-rating record.

For the purposes of this item 3, the term "ineffectively charged benefits" shall include:

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 56(ENK\EW)57(ENK\EW) a.calendar-month period ending on the computation date, the amount of benefits which were not charged to the record of any employer and of benefits which were ineffectively charged to the employer's experience-rating record.

For the purposes of this item 3, the term "ineffectively charged benefits" shall include:

a.

provided, that solely for the purposes of determining the amounts of ineffectively charged benefits as herein defined, a "benefit ratio" shall be computed for each ineligible employer, which shall be the quotient obtained by dividing the total benefits charged to his or her experience-rating record throughout the period ending on the computation date, during which his or her experience-rating record has been chargeable with benefits, by his or her total taxableH. payroll for the same period on which all unemployment insurance contributions due have been paid on or before the September 30 immediately following the computation date;

and provided further, that such benefit ratio shall be computed to the H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 57(ENK\EW)58(ENK\EW) tenthtaxable ofpayroll onefor percentthe (.1%)same andperiod anyon remainderwhich shallall beunemployment roundedinsurance tocontributions due have been paid on or before the nextSeptember higher30 tenth.immediately following the computation date;

and provided further, that such benefit ratio shall be computed to the tenth of one percent (.1%) and any remainder shall be rounded to the next higher tenth.

The result is then multiplied by the product of the CRC, as defined in subsection (1)(j) of this section, and total wages for the twelve-month period ending June 30H. divided by the taxable wages for the twelve-month period ending June 30.

This is the percentage positive or negative added to the general experience rate.

The sum of the general experience rate and the trust fund adjustment factor shall be multiplied by fifty H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 58(ENK\EW)59(ENK\EW) percent30 (50%)divided andby thisthe producttaxable shallwages befor computedthe totwelve-month oneperiod (1)ending decimalJune place,30. and rounded to the next higher tenth.

This is the percentage positive or negative added to the general experience rate.

The sum of the general experience rate and the trust fund adjustment factor shall be multiplied by fifty percent (50%) and this product shall be computed to one (1) decimal place, and rounded to the next higher tenth.

For rate years subsequent to 2014, Mississippi Workforce Enhancement Training contribution rate, and/or * * * Mississippi K-12 Workforce Development Grant Program contribution rate, and/or Mississippi Works contribution rate, when in effect, shall be added to the unemployment contribution rate, regardless of whether theH. addition of this contribution rate causes the total contribution rate for the employer to exceed five and four-tenths percent (5.4%).

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 59(ENK\EW)60(ENK\EW) 6.the addition of this contribution rate causes the total contribution rate for the employer to exceed five and four-tenths percent (5.4%).

6.

(vi) When any employing unit in any manner succeeds to or acquires the organization, trade, business or substantially all the assets thereof of an employer, excepting any assets retained by such employer incident to the liquidation of H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 60(ENK\EW)61(ENK\EW) (vi) When any employing unit in any manner succeeds to or acquires the organization, trade, business or substantially all the assets thereof of an employer, excepting any assets retained by such employer incident to the liquidation of his or her obligations, whether or not such acquiring employing unit was an employer within the meaning of Section 71-5-11, subsection H, prior to such acquisition, and continues such organization, trade or business, the experience-rating and payroll records of the predecessor employer shall be transferred as of the date of acquisition to the successor employer for the purpose of rate determination.

The execution and the filing with the department by the predecessor employer of a waiver relinquishing all rights to have the experience-rating and payroll records of theH. transferred portion used for the purpose of determining modified rates of contribution for such predecessor.

(viii) If the successor was an employer subject to this chapter prior to the date of acquisition, it shall continue to pay unemployment insurance contributions at the rate applicable H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 61(ENK\EW)62(ENK\EW) tothe ittransferred fromportion theused datefor the acquisitionpurpose occurredof untildetermining themodified endrates of thecontribution thenfor currentsuch taxpredecessor. year.

(viii) If the successor was an employer subject to this chapter prior to the date of acquisition, it shall continue to pay unemployment insurance contributions at the rate applicable to it from the date the acquisition occurred until the end of the then current tax year.

(ix)H. The department shall notify each employer quarterly of the benefits paid and charged to his or her experience-rating record;

and such notification, in the absence of an application for redetermination filed within thirty (30) days after the date of such notice, shall be final, conclusive and H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 62(ENK\EW)63(ENK\EW) binding(ix) uponThe thedepartment shall notify each employer forquarterly allof purposes.the benefits paid and charged to his or her experience-rating record;

and such notification, in the absence of an application for redetermination filed within thirty (30) days after the date of such notice, shall be final, conclusive and binding upon the employer for all purposes.

If the department grants such review, theH. employer shall be promptly notified thereof and shall be afforded an opportunity for a fair hearing by a hearing officer designated by the department who shall consider and decide these and related applications and protests;

but no employer shall be allowed, in any proceeding involving his or her rate of H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 63(ENK\EW)64(ENK\EW) unemployment insurance contributions or contribution liability, to contest the chargeabilityemployer toshall hisbe orpromptly hernotified accountthereof ofand anyshall benefitsbe paidafforded inan accordanceopportunity withfor a determination,fair redeterminationhearing orby decisiona pursuanthearing toofficer Sectionsdesignated 71-5-515by through 71-5-533 except upon the grounddepartment thatwho theshall servicesconsider onand thedecide basisthese ofand whichrelated suchapplications benefits were found to be chargeable did not constitute services performed in employment for him or her, and thenprotests; only in the event that he or she was not a party to such determination, redetermination, decision or to any other proceedings provided in this chapter in which the character of such services was determined.

but no employer shall be allowed, in any proceeding involving his or her rate of unemployment insurance contributions or contribution liability, to contest the chargeability to his or her account of any benefits paid in accordance with a determination, redetermination or decision pursuant to Sections 71-5-515 through 71-5-533 except upon the ground that the services on the basis of which such benefits were found to be chargeable did not constitute services performed in employment for him or her, and then only in the event that he or she was not a party to such determination, redetermination, decision or to any other proceedings provided in this chapter in which the character of such services was determined.

Any such appeal shall be on the record before said designated hearing officer, and the decision of said department shall become final unless, within thirty (30) days after the date of notice thereof to the employer's last-known address, there shall be an appeal to the Circuit Court of the First Judicial District of Hinds County, Mississippi,H. in accordance with the provisions of law with respect to review of civil causes by certiorari.

(3) Notwithstanding any other provision of law, the following shall apply regarding assignment of rates and transfers of experience:

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 64(ENK\EW)65(ENK\EW) (a)Mississippi, (i)in Ifaccordance anwith employer transfers its trade or business, or a portion thereof, to another employer and, at the timeprovisions of thelaw transfer,with thererespect isto substantiallyreview common ownership, management or control of thecivil twocauses (2)by employers,certiorari. then the unemployment experience attributable to the transferred trade or business shall be transferred to the employer to whom such business is so transferred.

(3) Notwithstanding any other provision of law, the following shall apply regarding assignment of rates and transfers of experience:

(a) (i) If an employer transfers its trade or business, or a portion thereof, to another employer and, at the time of the transfer, there is substantially common ownership, management or control of the two (2) employers, then the unemployment experience attributable to the transferred trade or business shall be transferred to the employer to whom such business is so transferred.

(b) Whenever a person who is not an employer or an employing unit under this chapter at the time it acquires the trade or business of an employer, the unemployment experience of the acquired business shall not be transferred to such person if theH. department finds that such person acquired the business solely or primarily for the purpose of obtaining a lower rate of unemployment insurance contributions.

Instead, such person shall be assigned the new employer rate under Section 71-5-353, unless assignment of the new employer rate results in an increase of less H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 65(ENK\EW)66(ENK\EW) thanthe twodepartment percentfinds (2%),that in which case such person wouldacquired bethe assignedbusiness thesolely newor employerprimarily ratefor plusthe anpurpose additionalof twoobtaining percenta (2%)lower penaltyrate forof theunemployment rateinsurance year.contributions.

Instead, such person shall be assigned the new employer rate under Section 71-5-353, unless assignment of the new employer rate results in an increase of less than two percent (2%), in which case such person would be assigned the new employer rate plus an additional two percent (2%) penalty for the rate year.

If the person is an employer, then such employer shall be assigned the highest rate assignable under this chapter for the rate year during which such violation or attempted violationH. occurred and the three (3) rate years immediately following this rate year.

However, if the person's business is already at such highest rate for any year, or if the amount of increase in the person's rate would be less than two percent (2%) for such year, then the person's tax rate shall be increased by H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 66(ENK\EW)67(ENK\EW) twoviolation percentoccurred (2%)and forthe suchthree (3) rate years immediately following this rate year.

However, if the person's business is already at such highest rate for any year, or if the amount of increase in the person's rate would be less than two percent (2%) for such year, then the person's tax rate shall be increased by two percent (2%) for such year.

(iv)H. In addition to the penalty imposed by subparagraph (i) of this paragraph (c), any violation of this subsection may be punishable by a fine of not more than Ten Thousand Dollars ($10,000.00) or by imprisonment for not more than five (5) years, or by both such fine and imprisonment.

This H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 67(ENK\EW)68(ENK\EW) subsection(iv) shallIn prohibitaddition prosecutionto underthe anypenalty otherimposed criminalby statutesubparagraph (i) of this state.paragraph (c), any violation of this subsection may be punishable by a fine of not more than Ten Thousand Dollars ($10,000.00) or by imprisonment for not more than five (5) years, or by both such fine and imprisonment.

This subsection shall prohibit prosecution under any other criminal statute of this state.

The department shall be the treasurer and custodian of the fund, and shall administer such fund in accordance with the directions of the department, and shall issue its warrants upon it in accordance with such regulations as the departmentH. shall prescribe.

The department shall maintain within the fund three (3) separate accounts:

(a) a clearing account, (b) an unemployment trust fund account, and (c) a benefit payment account.

All monies payable to the fund, upon receipt thereof by the department, shall be immediately deposited in the clearing H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 68(ENK\EW)69(ENK\EW) account.department shall prescribe.

The department shall maintain within the fund three (3) separate accounts:

(a) a clearing account, (b) an unemployment trust fund account, and (c) a benefit payment account.

All monies payable to the fund, upon receipt thereof by the department, shall be immediately deposited in the clearing account.

Except as herein otherwise provided, moniesH. in the clearing and benefit accounts may be deposited by the department, in any bank or public depository in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund.

The department shall be liable for the faithful performance of its H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 69(ENK\EW)70(ENK\EW) dutiesmonies in connectionthe withclearing and benefit accounts may be deposited by the Unemploymentdepartment, Compensationin Fundany underbank thisor chapter.public depository in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund.

The department shall be liable for the faithful performance of its duties in connection with the Unemployment Compensation Fund under this chapter.

The MississippiH. Works contributions shall be transferred to the Mississippi Department of Employment Security Treasury Account for the Mississippi Works Fund.

Such transfers shall occur within fifteen (15) days after the funds have resided in the Workforce Investment and Training Holding Account for thirty (30) days.

One H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 70(ENK\EW)71(ENK\EW) (1)Mississippi suchWorks transfercontributions shall be madetransferred monthly,to but the department,Mississippi inDepartment itsof discretion,Employment maySecurity makeTreasury additionalAccount transfersfor inthe anyMississippi month.Works Fund.

Such transfers shall occur within fifteen (15) days after the funds have resided in the Workforce Investment and Training Holding Account for thirty (30) days.

One (1) such transfer shall be made monthly, but the department, in its discretion, may make additional transfers in any month.

Each grant recipient shall certify, for any project for which a grant is awarded, that if the project is not completed byH. December 31, 2026, and the United States Congress does not enact an extension of the deadline on the availability of ARPA funds, then the grant recipient will complete the project through other funds.

H.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH PAGE 71(ENK\EW)72(ENK\EW) SECTIONby 8.December 31, 2026, and the United States Congress does not enact an extension of the deadline on the availability of ARPA funds, then the grant recipient will complete the project through other funds.

ThisSECTION act8. shall take effect and be in force from and after its passage.

This act shall take effect and be in force from and after July 1, 2023.

844 *HR43/R802CS.1**HR43/R802PH* ~ OFFICIAL ~ 23/HR43/R802CS.123/HR43/R802PH ST:

revise PAGE 7273(ENK\EW) (ENK\EW) funding mechanism for and create Mississippi K- Workforce Development Grant Program.