1997 Regular Session
To: Economic Dev, Tourism and Parks; Finance
By: Senator(s) Rayborn
Senate Bill 2508
AN ACT TO ESTABLISH A PROGRAM UNDER THE MISSISSIPPI BUSINESS INVESTMENT ACT TO PROVIDE GRANTS TO CITIES, WHICH GRANTS SHALL BE UTILIZED BY SUCH CITIES TO MAKE GRANTS TO PRIVATE COMPANIES TO SECURE THE LOCATION OF SUCH COMPANIES FOR THE BENEFIT OF SUCH CITIES; TO AMEND SECTION 57-61-25, MISSISSIPPI CODE OF 1972, TO INCREASE THE AMOUNT OF BONDS WHICH CAN BE ISSUED UNDER THE MISSISSIPPI BUSINESS INVESTMENT ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) In addition to any other findings of the Legislature declared elsewhere in this chapter, the Legislature hereby finds and declares with respect to the purpose of grants provided for in this section that:
(a) Mississippi has continuing needs for the creation of new job opportunities and enhancement of existing job opportunities;
(b) It is desirable that economic development take place to stimulate the economy of local and state government;
(c) Local government should have the necessary powers to enable it to take the lead in economic development, and local self-determination should be maintained to the maximum extent practical;
(d) Enhancement of tax revenues to other local and state governmental entities will occur as a result of successful economic growth;
(e) Successful economic development depends on a viable working relationship between the public and private sectors and it is the intent of this act to foster and further that cooperative effort; and
(f) For all constitutional and statutory purposes the authority granted by this section is for the public purposes of development and diversification of the economy of the state and an eligible city, the elimination of unemployment or underemployment in the state and an eligible city, and the expansion of commerce in the state, and this section accomplishes those public purposes.
(2) Notwithstanding any other provision of this chapter to the contrary, the department shall utilize not more than Twenty-five Million Dollars ($25,000,000.00) out of the proceeds of bonds authorized to be issued under this chapter to provide grants to cities for use by such cities in awarding grants to private companies to secure the location of projects by such companies for the benefit of such cities. Grants awarded by cities shall be in an amount not to exceed Ten Thousand Dollars ($10,000.00) per net new full-time equivalent job that will be provided by the location of the private company for the benefit of the city. The amount provided by the department for each such grant shall be matched in an equal amount by the city seeking assistance. In awarding grants under this section, the department shall give priority to cities which are small communities or which are located in counties which are small communities. Grants to private companies by cities shall be expended to defray the cost of projects. Grants shall not be awarded to any company located in Mississippi. Grants may be awarded only if the location of the private company for the benefit of the city will produce at least fifty (50) net new full-time equivalent jobs.
(3) For the purpose of this section:
(a) "Cost" means the cost of acquisition, construction, reconstruction, improvement and expansion, including the cost of the acquisition of all land, rights-of-way, property rights, easements and interests; the cost of all machinery and equipment; financing charges; inventory, raw materials and other supplies; research and development costs; interest prior to and during construction and for one (1) year after completion of construction, whether or not capitalized; necessary reserve funds; cost of estimates and of engineering and legal services, plans, specifications, surveys, estimates of cost and of revenue, and other expenses necessary or incident to determining the feasibility and practicability of acquiring, constructing, reconstructing, improving and expanding any such project; administrative expense and such other expense as may be necessary or incident to the acquisition, construction, reconstruction, improvement and expansion thereof, the placing of the same in operation, and the financing or refinancing of any such project, including the refunding of any outstanding obligations, mortgages or advances issued, made or given by any person for any of the aforementioned costs.
(b) "Project" means the land, buildings, equipment, facilities and improvements (one or more) found by the city to be required or suitable for the promotion of development and expansion of manufacturing and industrial facilities, transportation facilities, sewage or solid waste disposal facilities, recycling facilities, air or water pollution control facilities, facilities for the furnishing of water to the general public, distribution centers, small warehouse facilities capable of serving as decentralized storage and distribution centers, and facilities which are related to any of the foregoing, and in furtherance of the public purposes of this section, irrespective of whether in existence or required to be identified, acquired or constructed thereafter.
(c) "City" or "cities" means any incorporated city, town or village.
(4) The department shall promulgate rules and regulations for the implementation of this section and shall establish criteria for awarding grants to cities which shall include ensuring that any agreement between a private company and a city pursuant to this section contains provisions which will protect the city and state should the private company fail to operate the project according to the terms of its agreement with the city, such protection to be in the form of a lien on the project in favor of the city or in such other form as the department deems appropriate, or both. Any amounts recovered pursuant to such an agreement shall be divided equally between the city and the state, and the state's share shall be remitted to the department for deposit into the Mississippi Business Investment Sinking Fund.
SECTION 2. Section 57-61-25, Mississippi Code of 1972, is amended as follows:
57-61-25. (1) The seller is authorized to borrow, on the credit of the state upon receipt of a resolution from the department requesting the same, money not exceeding the aggregate sum of Two Hundred Fifty Million Dollars ($250,000,000.00), not including money borrowed to refund outstanding bonds, notes or replacement notes, as may be necessary to carry out the purposes of this chapter. The aggregate amount of bonds issued prior to June 30, 1987, shall not exceed Fifty Million Dollars ($50,000,000.00); provided, however, this Fifty Million Dollar ($50,000,000.00) limitation shall not be construed to limit the aggregate amount of grants which may be awarded prior to June 30, 1987, to less than the full amount authorized under Section 57-61-15(1), Mississippi Code of 1972. The rate of interest on any such bonds or notes which are not subject to taxation shall not exceed the rates set forth in Section 75-17-101, Mississippi Code of 1972, for general obligation bonds.
(2) As evidence of indebtedness authorized in this chapter, general or limited obligation bonds of the state shall be issued from time to time, to provide monies necessary to carry out the purposes of this chapter for such total amounts, in such form, in such denominations payable in such currencies (either domestic or foreign or both) and subject to such terms and conditions of issue, redemption and maturity, rate of interest and time of payment of interest as the seller directs, except that such bonds shall mature or otherwise be retired in annual installments beginning not more than five (5) years from date thereof and extending not more than thirty (30) years from date thereof.
(3) All bonds and notes issued under authority of this chapter shall be signed by the chairman of the seller, or by his facsimile signature, and the official seal of the seller shall be affixed thereto, attested by the secretary of the seller.
(4) All bonds and notes issued under authority of this chapter may be general or limited obligations of the state, and the full faith and credit of the State of Mississippi as to general obligation bonds, or the revenues derived from projects assisted as to limited obligation bonds, are hereby pledged for the payment of the principal of and interest on such bonds and notes.
(5) Such bonds and notes and the income therefrom shall be exempt from all taxation in the State of Mississippi.
(6) The bonds may be issued as coupon bonds or registered as to both principal and interest, as the seller may determine. If interest coupons are attached, they shall contain the facsimile signature of the chairman and secretary of the seller.
(7) The seller is authorized to provide, by resolution, for the issuance of refunding bonds for the purpose of refunding any debt issued under the provision of this chapter and then outstanding, either by voluntary exchange with the holders of the outstanding debt or to provide funds to redeem and the costs of issuance and retirement of the debt, at maturity or at any call date. The issuance of the refunding bonds, the maturities and other details thereof, the rights of the holders thereof and the duties of the issuing officials in respect to the same shall be governed by the provisions of this section, insofar as they may be applicable.
(8) As to bonds issued hereunder and designated as taxable bonds by the seller, any immunity of the state to taxation by the United States government of interest on bonds or notes issued by the state is hereby waived.
SECTION 3. Section 1 of this act shall be codified as a separate code section in Chapter 61, Title 57, Mississippi Code of 1972.
SECTION 4. This act shall take effect and be in force from and after July 1, 1997.