MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Ways and Means

By: Representative Williams

AN ACT TO AMEND SECTION 57-61-25, MISSISSIPPI CODE OF 1972, TO INCREASE FROM $225,000,000.00 TO $254,750,000.00 THE AGGREGATE AMOUNT OF BONDS THAT MAY BE ISSUED UNDER THE MISSISSIPPI BUSINESS INVESTMENT ACT; TO AMEND SECTION 57-61-34, MISSISSIPPI CODE OF 1972, TO INCREASE FROM $3,000,000.00 TO $5,000,000.00 THE AMOUNT OF BOND PROCEEDS THAT THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT MAY MAKE AVAILABLE AS INTEREST BEARING LOANS TO AID IN THE ESTABLISHMENT OF BUSINESS INCUBATION CENTERS AND THE CREATION OF NEW AND EXPANDING TECHNOLOGY-BASED BUSINESS AND INDUSTRY; TO AMEND SECTION 57-61-36, MISSISSIPPI CODE OF 1972, TO INCREASE FROM $2,000,000.00 TO $9,000,000.00 THE AMOUNT OF BOND PROCEEDS THAT THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT MAY UTILIZE FOR THE PURPOSE OF MAKING GRANTS TO COUNTIES AND MUNICIPALITIES UNDER THE DEVELOPMENT INFRASTRUCTURE GRANT PROGRAM; TO INCREASE FROM $2,000,000.00 TO $7,000,000.00 THE AMOUNT OF BONDS THAT THE MISSISSIPPI DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT MAY USE FOR LOW TO MODERATE INCOME HOUSING PURPOSES AND TO PROVIDE THAT THE AUTHORITY FOR THE USE OF BONDS FOR SUCH PURPOSES WILL BE REPEALED ON JULY 1, 2001; TO CREATE A NEW CODE SECTION TO BE CODIFIED AS SECTION 57-61-42, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE USE OF NOT MORE THAN $3,500,000.00 OF BOND PROCEEDS BY THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT TO PROVIDE CERTAIN JOB SERVICES IN THE LESS DEVELOPED COUNTIES OF THIS STATE; TO CREATE A NEW CODE SECTION TO BE CODIFIED AS SECTION 57-61-43, MISSISSIPPI CODE OF 1972, TO REQUIRE THE USE OF NOT MORE THAN $1,500,000.00 OF BOND PROCEEDS BY THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT FOR A GRANT TO PROVIDE FUNDS FOR THE SMALL LOAN GRANT PROGRAM AT ALCORN STATE UNIVERSITY; TO CREATE A NEW CODE SECTION TO BE CODIFIED AS SECTION 57-61-44, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE DEPOSIT OF NOT MORE THAN $750,000.00 OF BOND PROCEEDS BY THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT INTO A REVOLVING LOAN FUND CREATED IN SECTION 43-3-103, MISSISSIPPI CODE OF 1972, FOR USE BY THE MISSISSIPPI INDUSTRIES FOR THE BLIND; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. 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-four Million Seven Hundred Fifty Thousand Dollars ($254,750,000.00), 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 2. Section 57-61-34, Mississippi Code of 1972, is amended as follows:

57-61-34. Notwithstanding any provision of this chapter to the contrary, the Department of Economic and Community Development shall utilize not more than Five Million Dollars ($5,000,000.00) out of the proceeds of bonds authorized to be issued in this chapter to be made available as interest-bearing loans to municipalities or private companies to aid in the establishment of business incubation centers and the creation of new and expanding technology-based business and industry.

In exercising the power given it under this section, the department shall work in conjunction with the University Research Center and may contract with the center to provide space and assistance to business incubation centers as the center is authorized to do pursuant to Section 57-13-13.

The requirements of Section 57-61-9 shall not apply to any loan made under this section. The Department of Economic and Community Development shall establish criteria and guidelines to govern loans made pursuant to this section.

SECTION 3. Section 57-61-36, Mississippi Code of 1972, is amended as follows:

57-61-36. (1) Notwithstanding any provision of this chapter to the contrary, the Department of Economic and Community Development shall utilize not more than Nine Million Dollars ($9,000,000.00) out of the proceeds of bonds authorized to be issued in this chapter for the purpose of making grants to municipalities through a development infrastructure grant fund to complete infrastructure related to new or expanded industry.

(2) Notwithstanding any provision of this chapter to the contrary, the Department of Economic and Community Development may utilize not more than Seven Million Dollars ($7,000,000.00) out of the proceeds of bonds authorized to be issued in this chapter for the purpose of making interest-bearing loans to agencies meeting criteria established by the department, through a housing development revolving loan fund, to construct or repair housing for low or moderate income earners. No more than forty percent (40%) of the additional bonds authorized by this section in House Bill No. 1694, 1998 Regular Session, may be used for multiple family housing activities. Funds authorized under this subsection may be deposited in the Mississippi Affordable Housing Development Fund authorized in Section 43-33-759 and used for purposes authorized by that section. This subsection (2) shall be repealed from and after July 1, 2001.

(3) Notwithstanding any provision of this chapter to the contrary, the Department of Economic and Community Development shall utilize not more than Five Million Dollars ($5,000,000.00) out of the proceeds of bonds authorized to be issued in this chapter for the purpose of making grants to municipalities through an equipment and public facilities grant fund to aid in

infrastructure-related improvements as determined by the Department of Economic and Community Development, the purchase of equipment and in the purchase, construction or repair and renovation of public facilities. Any bonds previously issued for the Development Infrastructure Revolving Loan Program which have not been loaned or applied for are eligible to be administered as grants.

The requirements of Section 57-61-9 shall not apply to any grant made under this subsection. The Department of Economic and Community Development may establish criteria and guidelines to govern grants made pursuant to this subsection.

SECTION 4. The following section shall be codified as Section 57-61-42, Mississippi Code of 1972:

57-61-42. (1) Notwithstanding any provision of this chapter to the contrary, the Department of Economic and Community Development shall utilize not more than Three Million Five Hundred Thousand Dollars ($3,500,000.00) out of the proceeds of bonds issued in this chapter to provide funds for a job recruitment, training, development, counseling, motivation and referral services program for less developed counties of this state. The services provided under this program shall include, but not be limited to, the following:

(a) Recruitment for available positions;

(b) Job orientation;

(c) Job related counseling;

(d) Motivational services;

(e) Tutoring of job applicants when appropriate;

(f) Training;

(g) Job placement;

(h) Follow-up services to ensure successful employment;

(i) Referrals to social services where appropriate.

(2) The Department of Economic and Community Development may contract with a public or private entity to administer the program authorized in subsection (1) of this section.

(3) The primary focus of such program shall be to meet the State of Mississippi's work requirements under the Temporary Assistance to Needy Families ("TANF") Program, but the program may also be used for other purposes that meet the criteria of this section.

(4) As used in this section the term "less developed counties" means the twenty-eight (28) counties in this state ranked and designated annually by the State Tax Commission as having the highest unemployment rate for the most recent thirty-six-month period. The State Tax Commission shall make such ranking and designation annually by December 31, using the most current data available from the University Research Center, Mississippi State Employment Security Commission and the United States Department of Commerce.

SECTION 5. The following section shall be codified as Section 57-61-43, Mississippi Code of 1972:

57-61-43. Notwithstanding any provision of this chapter to the contrary, the Department of Economic and Community Development shall utilize not more than One Million Five Hundred Thousand Dollars ($1,500,000.00) out of the proceeds of bonds issued in this chapter to provide a grant to provide funds for the Small Farm Loan Program at Alcorn State University.

The requirements of Section 57-61-9, Mississippi Code of 1972, shall not apply to the grant made under this section.

SECTION 6. The following section shall be codified as Section 57-61-44, Mississippi Code of 1972:

57-61-44. Notwithstanding any provision of this chapter to the contrary, the Department of Economic and Community Development may deposit not more than Seven Hundred Fifty Thousand Dollars ($750,000.00) out of the proceeds of bonds issued in this chapter into the revolving fund created in Section 43-3-103, Mississippi Code of 1972, for use by the Mississippi Industries for the Blind.

SECTION 7. This act shall take effect and be in force from and after July 2, 1998.