SB 2632: Local Governments Disaster Recovery Emergency Loan Program; create. - Mississippi

As Passed the upper → Current version · 8 edits

MODERATE

The bill was amended to shift administration of the disaster recovery loan program from the Department of Finance and Administration to the Mississippi Emergency Management Agency (MEMA). The program's scope was broadened from a one-time response to a specific winter storm to a general mechanism for federally declared disasters. Key changes include expanding eligible borrowers to include political subdivisions, setting a zero-interest rate until federal reimbursements are processed, and reducing administrative cost limits from 3% to 0.5% of loan proceeds.

Scope change

The bill changed from a specific, one-time disaster relief act for a 2026 winter storm to a general emergency loan program applicable to any federally declared disaster, administered by MEMA instead of the Department of Finance.

SCOPE

The program now applies to any federally declared disaster rather than just the specific winter storm of January 2026.

Provisions for 'secondary borrowers' and 'secondary loans' were removed, simplifying the loan structure to a single borrower per entity.

ELIGIBILITY

Eligible borrowers were expanded to include counties, municipalities, and political subdivisions that have applied for FEMA assistance.

FISCAL

The administrative cost cap was reduced from 3% of disbursed funds to 0.5% of loan proceeds.

DEFINITION

The definition of 'Disaster' was updated to refer to a specific FEMA declaration number rather than a specific date.

REQUIREMENT

Interest rates are now set at 0% until federal reimbursements are processed, after which a 1% rate applies to cover administrative costs.

A new exemption was added for MEMA regarding the Mississippi Administrative Procedures Law for policies and regulations produced under this act.

ENFORCEMENT

The agency responsible for enforcing loan terms and auditing repayments changed from the Department of Finance to MEMA.

Committee Substitute → As Passed the upper · 7 edits

MODERATE

The bill was substantially rewritten to establish a new 'Local Governments Disaster Recovery Emergency Loan Program' to help counties and municipalities recover from a specific severe winter storm in January 2026. The act creates a dedicated state fund to issue loans to local governments for eligible disaster expenses, with a requirement that these loans be repaid immediately if the federal government refuses to reimburse those costs. The text also includes minor formatting updates and clarifications to existing emergency management laws.

Scope change

The bill's scope expanded from a generic 'possible amendment' of existing emergency management statutes to a specific, active program for disaster recovery funding tied to a single event (the January 2026 winter storm).

SCOPE

Created a new 'Local Governments Disaster Recovery Emergency Loan Program' to provide financial assistance to local governments affected by the January 2026 winter storm.

DEFINITION

Defined specific terms including 'Eligible expenditures' (expenses reimbursable by FEMA), 'Emergency fund', and 'Principal/Secondary borrowers' (counties and municipalities).

FISCAL

Established a special '2026 Local Governments Disaster Recovery Emergency Loan Fund' in the State Treasury to finance the loans.

REQUIREMENT

Mandated that local governments pledge specific revenue sources (sales tax or use tax) as collateral to repay loans if FEMA denies reimbursement for the expenses.

TIMELINE

Set a hard deadline of July 1, 2027, for issuing any new loans under this act, with a maximum loan term of five years.

ENFORCEMENT

Authorized the State Auditor to audit local governments with delinquent loans and allowed the State Fiscal Officer to withhold future tax reimbursements until debts are paid.

TECHNICAL

Updated the bill title and section numbers to reflect the new content, and made minor stylistic edits to existing emergency management sections.

As Introduced → Committee Substitute · 2 edits

MINOR

The bill was updated from its original draft to a committee substitute version, primarily changing the formatting and adding a comprehensive list of co-sponsors. The substantive legal text regarding emergency management powers, definitions, and procedures remains identical to the original version.

Scope change

The scope of the bill's applicability and legal provisions has not changed; only the presentation and sponsorship information were modified.

TECHNICAL

The header information was updated to reflect the 'Committee Substitute' status and to list all co-sponsors explicitly, replacing the original single sponsor listing.

Formatting inconsistencies, such as line breaks and spacing within the act text, were standardized to create a cleaner document layout.

Local Governments Disaster Recovery Emergency Loan Program; create.

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