.. ~ .-. -.

~mn~~is~ippi ~tat.e ~etude

COMMITTEF. ASSJGNMEI'ITS: SENATOR EUGENE S. CLARKE Lcgislacive Budgcc Commilt
APiuopriolions, Olainman :!2nd District Mislissippi Home Corporucion Ovcr.ight Commit~
Ac.-;ountabilily, Efficiency 1111d 1'ruJupar01K)' Stcc .nd School Employ> Heal~ lnaunllCI> BOMt
BolivKr- Humphreys- Sharkcy-
Agriculcurc Wireless Communicotion Commt..ion
Washinj!ton- Yazoo Countic$
Congn:ssiunal Redisrriccing
Economic Dcvelopmenc P.O. Box 373
Housing Hollandale, Mi~sissippi 38741\
ln.sur.utcc Phone: 662-827-5685
Judiciary A
Lcgis~civc Rcapponionmcm
Porn and MArine RcsoureeJ April28, 2016

Secr~tary Delbert Hosemarm

125 S. Congress St.
P.O. Box 136
Ja~.:k.son, MS 39205

Secretary Hosemann,
In a recent letter to Governor Phil Bryant, your Chief of Staff Doug Davis made several
assertions regarding Senate Bill 2362 and House Bill 878 passed during the 2016 legislative
session. In the letter, Mr. Davis identifies eleven sources of funds the Secretary of State intends
to draw down in order to meet the $18,000,000 transfer requirement ofT-louse Bill 878. In e-ach
section, he lists services and local tumbacks that may be effected due to these pieces of
legislation. Unfortunately, Mr. Davis is mistaken as tu the impact of these bills. We hope this
letter will clarify any misunderstanding you have regarding these new laws:
I. $2,689,459 Elections Support Fund- The Secretary's request for authority to divert
$1,21 5,000 from for FY20 17 was fully funded in SB2916. This transfer will have no
effect on coumies or municipalities.
2. $1,936,543 Public Trust Tidelands Assessment Fund - Because the Secretary of State's
Office views this fund as an off budget fund, there was no request of the Legislature for
authority to spend from this account. The account is listed in I-IB 878 only to give the
Secretary of State the option to draw tiom this fund to make his $18,000,000 transfer.
3. $3,021,111 Land Records Maintenance Fund- The Secreta1y's req\test for $500,000 for
the reimbursement of tax forfeited land was appropriated in SB 2916.
4. $1,172,312 Securities Enforcement Fund -In SB 2916, the Legislature gives the
Secretary of State ample authority to spend money in defense of those that have fallen
victim to securities fraud . Furthermore, as a result of SB 2362, the Secretary of State
now has the option to use the legal services of the Attorney General at no cost 10 the
agency. ~--'
EXHIBIT

17

Slate Copllol : Post Omcc Bo>: 1018 Jnrlt~on, MS 39215-10'18 P: 601359-3250 F: 601359-5110 E-m~tll : bclQrltc@scnutc.ms.gov
 5. $1,593,971 Point Cadet Leasing Fund- Similar to the Public Trust Tidelands Assessment
Fund, the Secretary of State views this fund as an off budget fund that does not require
additional authority from which to spend.
6. $4,845 Mississippi Autism Fund- This is a new account under the Secretary of State's
purview. There has been very little activity within this account.
7. $220,431 Regulation and Enforcement Fund- This account collects fees and fines from
various sources. In FY 2016, the Secretary of State spent $0 from this account.
8. $1,248,215 Help Mississippi Vote Fund- The Secretary of State bas been using this fund
to pay down debt Wld interest on a bond note that is expected to be paid off in FY 20,27.
Becaus~ the Secretary of State did not ask for authority to spend money to pay this note,
it was not appropriated.
...
9. $169,954 Pre-Need Contract Loss Recovery Fund- The Secretary of State views this as
another off budget fund. Generally speaking, ~he Legislature pays settlements on an "as
incurred" basis. For ex.amgle, the Legislature a{lprnpriates_settlements-for-wrongful.-------1---~
incarceration victims every year in the form of a de~cit. j
10. $335~976 Voter ID Litigation Fund- The State is nplonger being sued as a result of our l
~ID~ . i
1,'

11. $5,607,183 Secretary of State's Operating Fund- 'fhe Secretary of State shall no longer
have to turn funds back to the General Fund. That has always been the purpose of the
Secretary of States Operating Fund.
Upon further analysis by our staff~ we believe that you will collect an additional $7 million
dollars in the final quarter of the year. This conservative estimate is based on prior year
collections. If this estimate holds true, your office will have generated over $42 million in
revenue this year. The cost of running your agency has never cost more than $20 million. In
fact, on average it costs $15.2 million (average of actual spending 2009-2016).
We hope this letter provides you with some insight on how your agency can be run in a more
transparent manner. It has always been our belief that as elected officials, weowe.the taxpayers
of this state a government fuat. operates in an effi~ient manner that does not over charge for
services and provides an environment conducive to owning and operating a business.

Senator Buck Clarke

!UJ~
Representative Herb Frierson
 ''

cc: Governor Phil Bryant

Lieutenant Governor Reeves
Speaker Phillip Gunn
Kevin Upchurch, Executive Director~ Department of Finance and Ad,ministration
Lanelle G. Martin~ President, Mississippi Circuit Clerks Association
Derrick Surrette, Executive Director, Mississippi Association of Supervisors
Jamie Miller, Executive Director, Department of Marine Resources
Mayor Andrew Glitc~ City of Biloxi
President Rodney Bennett, University of Southern Mississippi
Shari Veazey, Executive Director, Mississippi Municipal League
Shay Chedotal, Executive Director~ Mississippi Cemetery Association
Glenn Boyce, Commissioner, Institutions of Higher Learnfug
Van Lowery, President, Election Commissioners Association of Mississippi
Senator Brice Wiggins
Senator Michael Watson
--------------~S~e.ruUuL~mLTindell ___________________________________________________

Senator Tommy Gollott

Representative Manly Barton
Representative Richard Bennett
Representative Charles Busby
Representative Carolyn Crawford
Representative Scott DeLano
Representative Casey Eure
Representative Jeffrey Guice
Representative Greg Haney
Representative Timmy Ladner
Representative Randall H. Patterson
Representative John 0'. Read
Representative Patricia H. Willis
Representative H.B. 1'Hank" Zuber