MISSISSIPPI LEGISLATURE 2025 Regular Session To: State Affairs; Technology By: Representatives Zuber, Ford (73rd) House Bill 1491 (As Sent to Governor) AN ACT TO ESTABLISH A CLOUD CENTER OF EXCELLENCE (CCOE) WITHIN THE MISSISSIPPI DEPARTMENT OF INFORMATION TECHNOLOGY SERVICES; TO FACILITATE THE ADOPTION AND MANAGEMENT OF CLOUD COMPUTING ACROSS STATE AGENCIES AND GOVERNING AUTHORITIES; TO PROVIDE STRATEGIC GUIDANCE, BEST PRACTICES, AND GOVERNANCE FRAMEWORKS FOR CLOUD MIGRATION AND OPTIMIZATION; TO ENHANCE SECURITY, SCALABILITY, AND COST EFFICIENCY IN STATEWIDE CLOUD OPERATIONS; TO AUTHORIZE THE PHASED IMPLEMENTATION OF THE CCOE OVER A TWO-YEAR PERIOD; TO PROVIDE REPORTING AND OVERSIGHT REQUIREMENTS; TO AUTHORIZE THE PROMULGATION OF RULES AND REGULATIONS NECESSARY FOR ITS ADMINISTRATION; TO AMEND SECTION 25-53-3, MISSISSIPPI CODE OF 1972, TO CONFORM DEFINITIONS; TO ESTABLISH THE TECHNOLOGY INNOVATION FUND; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. This act shall be known and may be cited as the "Cloud Center of Excellence Act." SECTION 2. As used in this act, the following terms shall have the meanings ascribed herein, unless the context clearly requires otherwise: (a) "Cloud Center of Excellence" or "CCOE" means the centralized body responsible for providing strategic guidance, best practices, governance, and technical support for cloud adoption and management across state agencies and governing authorities. (b) "Cloud computing" means on-demand access to computing resources, including storage, servers, and applications, delivered via the Internet or other networks. (c) "ITS" or "department" means the Mississippi Department of Information Technology Services. (d) "Governing authority" means the same as the term governing authority is defined in Section 25-53-3(2)(f). (e) "State agency" means the same as the term "agency" is defined in Section 25-53-3(2)(e). SECTION 3. (1) There is established within the Mississippi Department of Information Technology Services (ITS) a centralized Cloud Center of Excellence (CCOE) to facilitate cloud adoption across state agencies and governing authorities, enhance technological infrastructure, improve security and scalability, and streamline cloud migrations in a cost-effective and efficient manner. (2) Using existing resources, ITS may review the process for the coordinated development, hosting and management of computer software for state agencies that use cloud computing services. The Cloud Center of Excellence (CCOE) shall: (a) Develop and implement a statewide strategy for cloud adoption and management; (b) Provide guidance, best practices, and governance frameworks to state agencies and governing authorities for the adoption and use of cloud services; (c) Establish standardized processes for cloud migrations, resource optimization, and workload assessments; (d) Enhance cybersecurity protocols and ensure compliance with state and federal security standards; (e) Monitor and report on the scalability, cost efficiency, and performance of cloud infrastructure; (f) Offer training and support to agency personnel to promote cloud literacy and effective utilization; and (g) Coordinate with state agencies and governing authorities to ensure a phased implementation schedule as required by the provision of Section 4 of this act. SECTION 4. (1) The Cloud Center of Excellence (CCOE) shall establish a two-year phased implementation plan, which shall accomplish the following benchmarks by July 1, 2027: (a) Conduct statewide readiness assessments and develop detailed cloud migration plans for pilot agencies; (b) Initiate pilot migrations for selected state agencies, establish key performance indicators (KPIs) and refine processes based on feedback; (c) Expand cloud adoption to additional state agencies, focusing on optimizing resource utilization and ensuring adherence to best practices; (d) Integrate governing authorities into the cloud ecosystem and provide support for local governments, postsecondary educational institutions and school districts; and (e) Achieve full statewide adoption of cloud services, with ongoing monitoring, training, and optimization provided by the CCOE for all state agencies and governing authorities. (2) During the implementation described in subsection (1), each state agency and governing authority integrated into the CCOE at that time shall consider: (a) Cloud computing service options, including any security benefits and cost savings associated with purchasing those service options from a cloud computing service provider and from a statewide technology center established by the department, when making purchases; and (b) Cloud computing service options and compatibility with cloud computing services in the development of new information technology software applications. (3) (a) Except as provided by paragraph (b) of this subsection, a state agency or governing authority shall ensure, when making purchases for an automated information system, that the system is capable of being deployed and run on cloud computing services. (b) When making a purchase for an automated information system, a state agency or governing authority may determine that, due to integration limitations with legacy systems, security risks or costs, the state agency or governing authority is unable to purchase a system capable of being deployed and run on cloud computing services. (c) At least fourteen (14) days before the date a state agency or governing authority solicits bids, proposals, offers or other applicable expressions of interest for a purchase described by paragraph (b) of this subsection, the state agency or governing authority shall submit a report that describes the purchase and the agency's reasoning for making the purchase of an automated information system to the Mississippi Department of Information Technology Services (ITS). (4) The department shall provide administrative support and oversight to the CCOE and ensure compliance with this act. (5) The department is authorized to: (a) Enter into agreements with cloud service providers to facilitate cost-effective procurement of cloud solutions; (b) Develop and enforce statewide cloud security and compliance standards; (c) Establish funding mechanisms, including interagency agreements, to support the operations of the CCOE; and (d) Promulgate rules and regulations necessary to carry out the provisions of this act. SECTION 5. (1) Not later than November 15 of each even-numbered year, ITS, using existing resources, shall submit a report to the Governor, Lieutenant Governor and Speaker, the Chairpersons of the House and Senate Committees on Technology and of the House State Affairs Committee on the use of cloud computing service options by state agencies and governing authorities, detailing the progress of the implementation plan, challenges encountered, and recommendations for improvement. The report must include use cases that provided cost savings and other benefits, including security enhancements. All state agencies and governing authorities shall cooperate with ITS in the creation of the report by providing timely and accurate information and any assistance required by the department. SECTION 6. The Legislature shall appropriate funds to the Department of Information Technology Services to implement and operate the Cloud Center of Excellence (CCOE). The CCOE may seek additional funding through federal grants, partnerships, and other available resources. SECTION 7. Section 25-53-3, Mississippi Code of 1972, is amended as follows: 25-53-3. (1) Whenever the term "Central Data Processing Authority" or the term "authority," when referring to the Central Data Processing Authority, is used in any law, rule, regulation, document or elsewhere, it shall be construed to mean the Mississippi Department of Information Technology Services. (2) For the purposes of this chapter the following terms shall have the meanings ascribed in this section unless the context otherwise requires: (a) "Central Data Processing Authority" and "CDPA" mean "Mississippi Department of Information Technology Services * * * (MDITS) (ITS)" and the term "authority" means "board of the * * * MDITS ITS." (b) "Bureau of Systems Policy and Planning," "Bureau of Telecommunications," "Bureau of Central Data Processing" and "bureau" mean " * * *Mississippi Department of Information Technology Services ITS." * * * (c) "Computer equipment or services" means any information technology, computer or computer related telecommunications equipment, electronic word processing and office systems, or services utilized in connection therewith, including, but not limited to, all phases of computer software and consulting services, and insurance on all state-owned computer equipment. ( * * *dc) "Acquisition" of * * * computer or telecommunications equipment or services information technology means the purchase, lease, rental, or acquisition in any other manner of any such * * * computer or telecommunications equipment or services information technology. ( * * *ed) "Agency" means and includes all the various state agencies, officers, departments, boards, commissions, offices and institutions of the state. ( * * *fe) "Governing authority" means boards of supervisors, governing boards of all school districts, all boards of directors of public water supply districts, boards of directors of master public water supply districts, municipal public utility commissions, governing authorities of all municipalities, port authorities, commissioners and boards of trustees of any public hospitals and any * * * political subdivision governing authority of the state supported wholly or in part by public funds of the state or * * * political subdivision governing authority thereof. ( * * *gf) "Bid" means any of the valid source selection techniques and competitive procurement methods appropriate to information technology procurement in the public sector, including, but not limited to, competitive sealed bidding, competitive sealed proposals, simplified small purchase procedures, sole source procurements, and emergency procurements. ( * * *hg) "Telecommunications transmission facility" means any transmission medium, switch, instrument, inside wiring system or other facility which is used, in whole or part, to provide any transmission. ( * * *ih) "Equipment support contract" means a contract which covers a single, specific class or classes of telecommunications equipment or service and all features associated with that class, through which state agencies may purchase or lease the item of equipment or service specified by issuing a purchase order under the terms of the contract without the necessity of further competitive bidding. ( * * *ji) "Inside wiring system" means any wiring which: (i) Directly or indirectly, interconnects any terminal equipment with any other terminal equipment or with any regulated facility or common carrier services; and (ii) Is located at the premises of the customer and is not inside any terminal equipment. ( * * *kj) "Procurement" means the selling, buying, purchasing, renting, leasing or otherwise obtaining * * * telecommunications equipment, system or related services, information technology as well as activities engaged in, resulting in or expected to result in selling, buying, purchasing, renting, leasing or otherwise obtaining * * * telecommunications equipment information technology. ( * * *lk) "Telecommunications equipment, systems, related services" are limited to the equipment and means to provide: (i) Telecommunications transmission facilities. (ii) Telephone systems, including voice processing systems. (iii) Facsimile systems. (iv) Radio paging services. (v) Mobile telephone services, including cellular mobile telephone service. (vi) Intercom and paging systems. (vii) Video teleconferencing systems. (viii) Personal communications networks and services. (ix) Any and all systems based on emerging and future telecommunications technologies relative to (i) through (viii) above. ( * * *ml) "Telecommunications system lease contract" means a contract between a supplier of telecommunications systems, including equipment and related services, and the Mississippi Department of Information Technology Services * * * through which telecommunications systems, including equipment and related services, may be leased for a term which shall not exceed sixty (60) months for a system lease valued less than One Million Dollars ($1,000,000.00) and shall not exceed one hundred twenty (120) months for a system lease valued One Million Dollars ($1,000,000.00) or more. ( * * *nm) "Tariffed or regulated service" means telecommunications service offered by common carriers and subject to control by the Mississippi Public Service Commission or the Federal Communications Commission. ( * * *on) "State Data Center" means one or more facilities operated by * * * the Mississippi Department of Information Technology Services ITS to provide information technology resources requiring enterprise computing resources or any other * * * centrally ITS managed information resources. (o) "Information technology" means any technology as defined by ITS, including, but not limited to, computer and/or telecommunications equipment, systems or related services. SECTION 8. (1) The purpose of this act is to establish a Technology Innovation Fund, hereafter referred to as "Fund," to facilitate the development and deployment of innovative technological solutions that enhance the efficiency, transparency and responsiveness of government services. The fund is intended to support collaborative efforts between government agencies, educational institutions, private sector partners and nonprofit organizations in the implementation of digital solutions that drive public sector modernization. (2) (a) There is hereby established the Technology Innovation Fund, which shall be administered by the Mississippi Department of Information Technology Services (ITS) under the authority of the Chief Information Officer (CIO) of the State of Mississippi. (b) The fund shall provide financial support for projects that utilize technology to address critical needs, improve service delivery, and foster collaboration between public and private entities. (3) The objectives of the fund shall include, but are not limited to, the following: (a) Promote the development of digital solutions that improve government service delivery and operational efficiency; (b) Foster cross-agency and intergovernmental collaboration in the adoption of shared technologies and best practices; (c) Encourage public-private partnerships in the development and deployment of innovative technologies; (d) Facilitate research, prototyping, and piloting of emerging technologies such as artificial intelligence, blockchain, data analytics, and cloud computing; (e) Ensure equitable access to technological innovations that can benefit underserved communities and regions; and (f) Enhance cybersecurity and protect the integrity of state digital infrastructure. (4) (a) The following entities shall be eligible to apply for funding under this act: (i) State and local government agencies; (ii) Public and private educational institutions; (iii) Nonprofit organizations engaged in technology-driven public service initiatives; and (iv) Private sector entities, in partnership with public sector agencies, for collaborative projects. (b) Applications for funding must demonstrate how the proposed project will contribute to the digital transformation of government services and the achievement of the objectives outlined in Section 3 of this act. (5) (a) The CIO of the Mississippi Department of Information Technology Services shall establish criteria for the evaluation of proposals and the allocation of funds, prioritizing projects that: (i) Provide measurable benefits to the public and improve government operations; (ii) Demonstrate potential for scalability and sustainability; (iii) Foster partnerships across government, private, and nonprofit sectors; and (iv) Address urgent challenges in service delivery, efficiency, and cybersecurity. (b) The fund may allocate grants, matching funds, or loans to eligible projects, as deemed appropriate by the CIO. (6) (a) Each recipient of funding from the Technology Innovation Fund shall be required to provide periodic reports to the CIO detailing the progress, outcomes, and financial expenditures associated with the funded project. (b) The CIO shall submit an annual report to the Governor and Legislature detailing the use of the Technology Innovation Fund, including descriptions of funded projects, their outcomes, and recommendations for future innovations. (7) (a) The fund shall be initially capitalized with an appropriation of monies from the General Fund, with additional funding to be secured from: (i) Public-private partnerships; (ii) Federal grants or matching programs; (iii) Revenues from technological licensing or commercialization resulting from funded projects; and (iv) Donations or contributions from private or philanthropic organizations. (b) The fund may also establish a revolving loan mechanism to replenish available resources through repayments from successful projects. (8) The CIO of the Mississippi Department of Information Technology Services (ITS) is authorized to promulgate any rules and regulations necessary for the implementation and administration of this act. SECTION 9. This act shall take effect and be in force from and after July 1, 2025. MISSISSIPPI LEGISLATURE 2025 Regular Session To: State Affairs; Technology By: Representatives Zuber, Ford (73rd) # House Bill 1491 ## (As Sent to Governor) AN ACT TO ESTABLISH A CLOUD CENTER OF EXCELLENCE (CCOE) WITHIN THE MISSISSIPPI DEPARTMENT OF INFORMATION TECHNOLOGY SERVICES; TO FACILITATE THE ADOPTION AND MANAGEMENT OF CLOUD COMPUTING ACROSS STATE AGENCIES AND GOVERNING AUTHORITIES; TO PROVIDE STRATEGIC GUIDANCE, BEST PRACTICES, AND GOVERNANCE FRAMEWORKS FOR CLOUD MIGRATION AND OPTIMIZATION; TO ENHANCE SECURITY, SCALABILITY, AND COST EFFICIENCY IN STATEWIDE CLOUD OPERATIONS; TO AUTHORIZE THE PHASED IMPLEMENTATION OF THE CCOE OVER A TWO-YEAR PERIOD; TO PROVIDE REPORTING AND OVERSIGHT REQUIREMENTS; TO AUTHORIZE THE PROMULGATION OF RULES AND REGULATIONS NECESSARY FOR ITS ADMINISTRATION; TO AMEND SECTION 25-53-3, MISSISSIPPI CODE OF 1972, TO CONFORM DEFINITIONS; TO ESTABLISH THE TECHNOLOGY INNOVATION FUND; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. This act shall be known and may be cited as the "Cloud Center of Excellence Act." SECTION 2. As used in this act, the following terms shall have the meanings ascribed herein, unless the context clearly requires otherwise: (a) "Cloud Center of Excellence" or "CCOE" means the centralized body responsible for providing strategic guidance, best practices, governance, and technical support for cloud adoption and management across state agencies and governing authorities. (b) "Cloud computing" means on-demand access to computing resources, including storage, servers, and applications, delivered via the Internet or other networks. (c) "ITS" or "department" means the Mississippi Department of Information Technology Services. (d) "Governing authority" means the same as the term governing authority is defined in Section 25-53-3(2)(f). (e) "State agency" means the same as the term "agency" is defined in Section 25-53-3(2)(e). SECTION 3. (1) There is established within the Mississippi Department of Information Technology Services (ITS) a centralized Cloud Center of Excellence (CCOE) to facilitate cloud adoption across state agencies and governing authorities, enhance technological infrastructure, improve security and scalability, and streamline cloud migrations in a cost-effective and efficient manner. (2) Using existing resources, ITS may review the process for the coordinated development, hosting and management of computer software for state agencies that use cloud computing services. The Cloud Center of Excellence (CCOE) shall: (a) Develop and implement a statewide strategy for cloud adoption and management; (b) Provide guidance, best practices, and governance frameworks to state agencies and governing authorities for the adoption and use of cloud services; (c) Establish standardized processes for cloud migrations, resource optimization, and workload assessments; (d) Enhance cybersecurity protocols and ensure compliance with state and federal security standards; (e) Monitor and report on the scalability, cost efficiency, and performance of cloud infrastructure; (f) Offer training and support to agency personnel to promote cloud literacy and effective utilization; and (g) Coordinate with state agencies and governing authorities to ensure a phased implementation schedule as required by the provision of Section 4 of this act. SECTION 4. (1) The Cloud Center of Excellence (CCOE) shall establish a two-year phased implementation plan, which shall accomplish the following benchmarks by July 1, 2027: (a) Conduct statewide readiness assessments and develop detailed cloud migration plans for pilot agencies; (b) Initiate pilot migrations for selected state agencies, establish key performance indicators (KPIs) and refine processes based on feedback; (c) Expand cloud adoption to additional state agencies, focusing on optimizing resource utilization and ensuring adherence to best practices; (d) Integrate governing authorities into the cloud ecosystem and provide support for local governments, postsecondary educational institutions and school districts; and (e) Achieve full statewide adoption of cloud services, with ongoing monitoring, training, and optimization provided by the CCOE for all state agencies and governing authorities. (2) During the implementation described in subsection (1), each state agency and governing authority integrated into the CCOE at that time shall consider: (a) Cloud computing service options, including any security benefits and cost savings associated with purchasing those service options from a cloud computing service provider and from a statewide technology center established by the department, when making purchases; and (b) Cloud computing service options and compatibility with cloud computing services in the development of new information technology software applications. (3) (a) Except as provided by paragraph (b) of this subsection, a state agency or governing authority shall ensure, when making purchases for an automated information system, that the system is capable of being deployed and run on cloud computing services. (b) When making a purchase for an automated information system, a state agency or governing authority may determine that, due to integration limitations with legacy systems, security risks or costs, the state agency or governing authority is unable to purchase a system capable of being deployed and run on cloud computing services. (c) At least fourteen (14) days before the date a state agency or governing authority solicits bids, proposals, offers or other applicable expressions of interest for a purchase described by paragraph (b) of this subsection, the state agency or governing authority shall submit a report that describes the purchase and the agency's reasoning for making the purchase of an automated information system to the Mississippi Department of Information Technology Services (ITS). (4) The department shall provide administrative support and oversight to the CCOE and ensure compliance with this act. (5) The department is authorized to: (a) Enter into agreements with cloud service providers to facilitate cost-effective procurement of cloud solutions; (b) Develop and enforce statewide cloud security and compliance standards; (c) Establish funding mechanisms, including interagency agreements, to support the operations of the CCOE; and (d) Promulgate rules and regulations necessary to carry out the provisions of this act. SECTION 5. (1) Not later than November 15 of each even-numbered year, ITS, using existing resources, shall submit a report to the Governor, Lieutenant Governor and Speaker, the Chairpersons of the House and Senate Committees on Technology and of the House State Affairs Committee on the use of cloud computing service options by state agencies and governing authorities, detailing the progress of the implementation plan, challenges encountered, and recommendations for improvement. The report must include use cases that provided cost savings and other benefits, including security enhancements. All state agencies and governing authorities shall cooperate with ITS in the creation of the report by providing timely and accurate information and any assistance required by the department. SECTION 6. The Legislature shall appropriate funds to the Department of Information Technology Services to implement and operate the Cloud Center of Excellence (CCOE). The CCOE may seek additional funding through federal grants, partnerships, and other available resources. SECTION 7. Section 25-53-3, Mississippi Code of 1972, is amended as follows: 25-53-3. (1) Whenever the term "Central Data Processing Authority" or the term "authority," when referring to the Central Data Processing Authority, is used in any law, rule, regulation, document or elsewhere, it shall be construed to mean the Mississippi Department of Information Technology Services. (2) For the purposes of this chapter the following terms shall have the meanings ascribed in this section unless the context otherwise requires: (a) "Central Data Processing Authority" and "CDPA" mean "Mississippi Department of Information Technology Services * * * (MDITS) (ITS)" and the term "authority" means "board of the * * * MDITS ITS." (b) "Bureau of Systems Policy and Planning," "Bureau of Telecommunications," "Bureau of Central Data Processing" and "bureau" mean " * * *Mississippi Department of Information Technology Services ITS." * * * (c) "Computer equipment or services" means any information technology, computer or computer related telecommunications equipment, electronic word processing and office systems, or services utilized in connection therewith, including, but not limited to, all phases of computer software and consulting services, and insurance on all state-owned computer equipment. ( * * *dc) "Acquisition" of * * * computer or telecommunications equipment or services information technology means the purchase, lease, rental, or acquisition in any other manner of any such * * * computer or telecommunications equipment or services information technology. ( * * *ed) "Agency" means and includes all the various state agencies, officers, departments, boards, commissions, offices and institutions of the state. ( * * *fe) "Governing authority" means boards of supervisors, governing boards of all school districts, all boards of directors of public water supply districts, boards of directors of master public water supply districts, municipal public utility commissions, governing authorities of all municipalities, port authorities, commissioners and boards of trustees of any public hospitals and any * * * political subdivision governing authority of the state supported wholly or in part by public funds of the state or * * * political subdivision governing authority thereof. ( * * *gf) "Bid" means any of the valid source selection techniques and competitive procurement methods appropriate to information technology procurement in the public sector, including, but not limited to, competitive sealed bidding, competitive sealed proposals, simplified small purchase procedures, sole source procurements, and emergency procurements. ( * * *hg) "Telecommunications transmission facility" means any transmission medium, switch, instrument, inside wiring system or other facility which is used, in whole or part, to provide any transmission. ( * * *ih) "Equipment support contract" means a contract which covers a single, specific class or classes of telecommunications equipment or service and all features associated with that class, through which state agencies may purchase or lease the item of equipment or service specified by issuing a purchase order under the terms of the contract without the necessity of further competitive bidding. ( * * *ji) "Inside wiring system" means any wiring which: (i) Directly or indirectly, interconnects any terminal equipment with any other terminal equipment or with any regulated facility or common carrier services; and (ii) Is located at the premises of the customer and is not inside any terminal equipment. ( * * *kj) "Procurement" means the selling, buying, purchasing, renting, leasing or otherwise obtaining * * * telecommunications equipment, system or related services, information technology as well as activities engaged in, resulting in or expected to result in selling, buying, purchasing, renting, leasing or otherwise obtaining * * * telecommunications equipment information technology. ( * * *lk) "Telecommunications equipment, systems, related services" are limited to the equipment and means to provide: (i) Telecommunications transmission facilities. (ii) Telephone systems, including voice processing systems. (iii) Facsimile systems. (iv) Radio paging services. (v) Mobile telephone services, including cellular mobile telephone service. (vi) Intercom and paging systems. (vii) Video teleconferencing systems. (viii) Personal communications networks and services. (ix) Any and all systems based on emerging and future telecommunications technologies relative to (i) through (viii) above. ( * * *ml) "Telecommunications system lease contract" means a contract between a supplier of telecommunications systems, including equipment and related services, and the Mississippi Department of Information Technology Services * * * through which telecommunications systems, including equipment and related services, may be leased for a term which shall not exceed sixty (60) months for a system lease valued less than One Million Dollars ($1,000,000.00) and shall not exceed one hundred twenty (120) months for a system lease valued One Million Dollars ($1,000,000.00) or more. ( * * *nm) "Tariffed or regulated service" means telecommunications service offered by common carriers and subject to control by the Mississippi Public Service Commission or the Federal Communications Commission. ( * * *on) "State Data Center" means one or more facilities operated by * * * the Mississippi Department of Information Technology Services ITS to provide information technology resources requiring enterprise computing resources or any other * * * centrally ITS managed information resources. (o) "Information technology" means any technology as defined by ITS, including, but not limited to, computer and/or telecommunications equipment, systems or related services. SECTION 8. (1) The purpose of this act is to establish a Technology Innovation Fund, hereafter referred to as "Fund," to facilitate the development and deployment of innovative technological solutions that enhance the efficiency, transparency and responsiveness of government services. The fund is intended to support collaborative efforts between government agencies, educational institutions, private sector partners and nonprofit organizations in the implementation of digital solutions that drive public sector modernization. (2) (a) There is hereby established the Technology Innovation Fund, which shall be administered by the Mississippi Department of Information Technology Services (ITS) under the authority of the Chief Information Officer (CIO) of the State of Mississippi. (b) The fund shall provide financial support for projects that utilize technology to address critical needs, improve service delivery, and foster collaboration between public and private entities. (3) The objectives of the fund shall include, but are not limited to, the following: (a) Promote the development of digital solutions that improve government service delivery and operational efficiency; (b) Foster cross-agency and intergovernmental collaboration in the adoption of shared technologies and best practices; (c) Encourage public-private partnerships in the development and deployment of innovative technologies; (d) Facilitate research, prototyping, and piloting of emerging technologies such as artificial intelligence, blockchain, data analytics, and cloud computing; (e) Ensure equitable access to technological innovations that can benefit underserved communities and regions; and (f) Enhance cybersecurity and protect the integrity of state digital infrastructure. (4) (a) The following entities shall be eligible to apply for funding under this act: (i) State and local government agencies; (ii) Public and private educational institutions; (iii) Nonprofit organizations engaged in technology-driven public service initiatives; and (iv) Private sector entities, in partnership with public sector agencies, for collaborative projects. (b) Applications for funding must demonstrate how the proposed project will contribute to the digital transformation of government services and the achievement of the objectives outlined in Section 3 of this act. (5) (a) The CIO of the Mississippi Department of Information Technology Services shall establish criteria for the evaluation of proposals and the allocation of funds, prioritizing projects that: (i) Provide measurable benefits to the public and improve government operations; (ii) Demonstrate potential for scalability and sustainability; (iii) Foster partnerships across government, private, and nonprofit sectors; and (iv) Address urgent challenges in service delivery, efficiency, and cybersecurity. (b) The fund may allocate grants, matching funds, or loans to eligible projects, as deemed appropriate by the CIO. (6) (a) Each recipient of funding from the Technology Innovation Fund shall be required to provide periodic reports to the CIO detailing the progress, outcomes, and financial expenditures associated with the funded project. (b) The CIO shall submit an annual report to the Governor and Legislature detailing the use of the Technology Innovation Fund, including descriptions of funded projects, their outcomes, and recommendations for future innovations. (7) (a) The fund shall be initially capitalized with an appropriation of monies from the General Fund, with additional funding to be secured from: (i) Public-private partnerships; (ii) Federal grants or matching programs; (iii) Revenues from technological licensing or commercialization resulting from funded projects; and (iv) Donations or contributions from private or philanthropic organizations. (b) The fund may also establish a revolving loan mechanism to replenish available resources through repayments from successful projects. (8) The CIO of the Mississippi Department of Information Technology Services (ITS) is authorized to promulgate any rules and regulations necessary for the implementation and administration of this act. SECTION 9. This act shall take effect and be in force from and after July 1, 2025.