Weekly Report
3.17.25
Deadline Tuesday Highlights Tax Cut Discussions: Leaders signaling flat spending unless deal is reached
Mississippi lawmakers, ahead of schedule on many issues involving general legislation, face a key Tuesday deadline on fiscal matters that brings to the forefront discussions over reducing or eliminating the state’s personal income tax. Lawmakers have until close of business Tuesday to take up fiscal legislation advanced by the opposite chamber, putting the House’s income tax-elimination plan squarely in front of the Senate, and the Senate’s plan in front of the House. Gov. Tate Reeves is encouraging Senate leaders to adopt the House plan’s goal of full income tax elimination. Senators, however, could also amend that plan by substituting their own plan – which lowers but doesn’t eliminate the income tax.
Leadership is unofficially messaging that all state agencies should plan to receive the same amount of funding for the fiscal year beginning July 1, 2025, with minor adjustments for increased healthcare costs, unless and until there is finality on tax cut plans. Gov. Reeves turned to social media to push for the tax elimination. He could call lawmakers into special session if the income tax plan fails to survive the session.
And while last week’s deadline for general bill consideration killed many bills, these last weeks are also when dead bills are revived by being amended to other legislation. As capitol insiders say, nothing is really dead until the Legislature finally adjourns.
Mississippi Recovering from Deadly Storms
Before we focus on the legislative session, we hope you will join Capitol Resources in keeping the victims of Saturday’s violent storms in your hearts and prayers. At least six people were killed here and many more injured and impacted, particularly Southwest Mississippi as well as in North Mississippi. Here is a link to some media coverage of the storms’ impact. On X, Gov. Tate Reeves issued this emergency declaration. Here is part of his statement:
“Tragically, as of now, 6 deaths have been reported – one in Covington County, two in Jeff Davis County, and three in Walthall County. Also, as of now, three additional people are currently missing – two from Covington County and one from Walthall County. Preliminary reports indicate 29 injuries statewide – 15 in Covington County, two in Jeff Davis County, two in Pike County and 10 in Walthall County. Please pray for those who lost their life, those who are missing and those leading the search efforts, those who are healing, and their families. Damage assessments are currently underway. Preliminary assessments indicate that 21 counties sustained storm damage. Those counties include: Calhoun, Carroll, Chickasaw, Covington, Grenada, Humphreys, Issaquena, Jasper, Jefferson Davis, Lauderdale, Lee, Leflore, Marshall, Monroe, Montgomery, Newton, Pike, Sharkey, Simpson, Smith, and Walthall. Approximately 16,000 are currently without power. This is down from a peak of about 30,000. Crews are currently working to restore power as quickly as possible. Thank you to all of our first responders, law enforcement officers, emergency managers, and crews who are working hard to assist our fellow Mississippians. Our entire state is grateful for your efforts and praying for you!’’
At the Capitol: Employer Costs Concerns Raised Over PBM Legislation
The Senate passed legislation this week that significantly increases regulation of pharmacy benefit managers (PBMs), prompting concerns about the potential impact on health insurance costs for employers. The Senate’s original bill died in the House, but the body revived most of its language by inserting it into a similar House bill, HB 1123 which was authored by House Speaker Jason White. The bill expands transparency measures, prohibits spread pricing, and restricts PBMs from steering patients to affiliated pharmacies. While independent pharmacists have backed the measure, arguing it is necessary to keep their businesses viable, others warn that the new regulations could lead to unintended cost increases for employers.
Sen. Jeremy England emerged as a leading voice of opposition, emphasizing the financial risks this bill poses to Mississippi businesses. England cautioned that limiting PBM operations could result in higher insurance costs for both private employers and state employees, potentially deterring business investment in the state. He also sought an amendment to protect self-funded insurance plans from certain restrictions, but his proposal was rejected. The bill now heads to the House for further debate.
Senate Revives Dead Bills Through Amendment Process, Sparks Education Debate
The Mississippi Senate suspended its rules to revive several bills that had previously been considered dead. By amending HB 1630, originally focused on clarifying the Mississippi Student Funding Formula, the Senate inserted language from multiple education measures that had failed to advance earlier in the session.
Among the key additions was a provision to fund Career and Technical Education (CTE) classes for 7th and 8th graders, addressing a gap identified since the passage of the new funding formula last year. The proposed change would add an estimated $20 million to $25 million annually to the education budget. Other provisions included allowing retired administrators to return to teaching while receiving retirement benefits, requiring school districts to implement cell phone restrictions in classrooms, and mandating financial literacy classes for students in grades 6 through 12.
The move has led to some disagreement between the House and Senate over education priorities. While Senate Education Committee Chairman Dennis DeBar (R) sought to advance these policies through the amendment process, House leadership has expressed a preference for school choice measures, such as public-to-public school transfers, expanding charter schools into C-rated districts, and allowing homeschool students to participate in public school extracurricular activities (often referred to as the ‘Tim Tebow Act’). House Speaker Jason White (R) has noted that the Senate has not prioritized these issues, suggesting that negotiations over education policy may be challenging as the session progresses. The amended bill now returns to the House for concurrence.
Senate Moves to Regulate Hemp-Based Products
After significant debate, the Mississippi Senate passed a measure that would ban nearly all hemp-derived consumable products containing THC from store shelves, except for certain beverages. The amended HB 1502, now renamed the “Mississippi Hemp Act,” removes products containing Delta 8, Delta 10, THC 0, and other synthetic cannabinoids, limiting the sale of hemp-based drinks to those with no more than 5 milligrams of THC per 12-ounce serving.
Senators debated various aspects of the bill, including concerns over regulating hemp drinks similarly to alcohol and eliminating a legal exemption that currently allows minors to consume alcohol in the presence of a parent. While proponents argue the measure will curb the marketing of intoxicating hemp products to minors, critics see it as a step toward restricting consumer choice. The bill passed with a 35-16 vote and now heads to conference to reconcile differences between the House and Senate versions.
DEI Ban Advances in Senate
Legislation aimed at prohibiting Diversity, Equity, and Inclusion (DEI) programs in Mississippi’s public schools, community colleges, and universities moved forward this week. The Senate amended HB 1193 to align with its own version, adding K-12 schools to the restrictions while removing a proposed task force to study the issue further.
Supporters of the bill argue that it ensures educational and employment opportunities are based solely on merit, while opponents see it as a rollback of efforts to address longstanding disparities. The bill would require institutions to establish a complaint process, with appeals directed to the Attorney General’s office, and mandates annual reporting of violations. The measure passed the Senate 34-14 and is expected to go to conference for further negotiations.
Senate Amends Certificate of Need Laws, Orders Study
A broad push to abolish or limit the use of CONs appears to have stalled, but the Senate took action on House Bill 569 to address specific challenges facing three facilities, including Parkwood Behavioral in DeSoto County as well as a developmentally delayed facility and a third hospital on the coast. The legislation, as amended by the Senate, would also grant a CON to Oceans Behavioral for a facility they purchased in Jackson from St. Dominic Health, effectively ending a pending court challenge to their purchase of those beds.
Further, it would require the Department of Health to report back recommendations regarding: 1) requiring a percentage of psychiatric beds be devoted to indigent patients, 2) allowing adult psychiatric beds in smaller hospitals without a CON and 3) allowing dialysis centers in smaller hospitals. And it would place geographic restrictions on CON exemptions allowed for teach hospitals such as for the University of Mississippi Medical Center (UMMC) and William Carey University, ensuring they apply only to projects within their main campuses. The bill goes back to the House.
Senators first approved and then rejected an amendment that would grant a CON for psychiatric beds to the owner of a hospital system that relinquished those beds in order to qualify for federal “critical access” designation. Proponents argued that the need for psychiatric beds is tremendous; Chairman Bryan offered to use another bill with similar code sections of law to explore some type of remedy.
Mobile Sports Betting Debate Continues
The Mississippi House reignited the push for mobile sports betting by embedding its proposal in an unrelated Senate bill, a strategic move to force negotiations on the issue. While the House has been eager to pass mobile sports betting, the Senate has remained hesitant, with some lawmakers citing concerns about the impact on brick-and-mortar casinos. The House including the sports betting language into SB 2831 . The bill now heads back to the Senate.
House Gaming Chairman Casey Eure argues that legalizing mobile betting could generate more than $50 million in state revenue and curb illegal gambling. The Senate now faces a March 21 deadline to either approve the proposal or send it to conference for further discussions.
Paid Family Leave for State Employees Moves Forward
Mississippi is set to offer paid family leave for state employees for the first time, following the Legislature’s passage of HB 1063. The measure, which now heads to the governor’s desk, grants six weeks of paid leave to primary caregivers who are state employees after the birth or adoption of a child.
The bill, sponsored by Rep. Kevin Felsher, passed the House unanimously, signaling strong bipartisan support. Felsher described the bill as a meaningful step in supporting working families, particularly in the post-Roe era and noted that paid family leave can serve as an important retention tool for state agencies that struggle to compete with private-sector salaries.
Sen. Jeremy England, who carried a similar bill, was a strong advocate for the policy, emphasizing the importance of allowing state employees the time to bond with their newborns or newly adopted children. England shared his personal experience as a father and noted that many were surprised to learn that Mississippi had never offered dedicated paid family leave to its state employees before.
While the final version of the bill reduced the original proposal from eight weeks to six, lawmakers have expressed openness to revisiting the policy in the future to assess its impact and consider possible expansions. With its passage, Mississippi will join 36 other states that offer similar paid leave policies to government employees.
Mississippi Top 50 Honors State Leaders
The Mississippi Top 50 awards ceremony was held last Wednesday evening at the Country Club of Jackson, celebrating individuals who have made a lasting impact on the state through government, business, media, culture, and community leadership. Capitol Resources is proud to announce that our own Clare Hester, founding partner, was once among this year’s “Top 50’’ honorees, recognized for her leadership and contributions in Mississippi; Clifton Carroll of Bullseye Public Affairs was recognized as a Top 50 “Emerging Leader.’’
Some of Capitol Resources’ client family members were recognized on the Top 50 list as well, including: Aaron Sisk of Magnolia Health, Jack Norris of Ingalls Shipbuilding, Kent Nicaud of Memorial Health System and Scott Waller of MS Economic Council. The event also included the induction of three distinguished figures into the Mississippi Top 50 Hall of Fame: the late SuperTalk Mississippi radio host Paul Gallo, former NFL quarterback Archie Manning, and the late former Mississippi GOP committeewoman Jeanne Luckey. Their lasting contributions to Mississippi’s civic and cultural landscape were honored during the ceremony, highlighting their influence in shaping the state’s future.
Next Deadline: Tue., Mar. 18 Deadline for ORIGINAL FLOOR ACTION on appropriation and Tue., Mar. 18 revenue bills originating in OTHER HOUSE. The full deadline calendar can be found here.
