MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Agriculture

By: Senator(s) Thames, Stogner, Browning, Carlton, Dickerson, Hamilton, Harvey, Hawks, Huggins, Jackson, Simmons, White (29th), Ross, Kirby, Smith, Lee, Mettetal, Canon

AN ACT TO REENACT SECTIONS 69-41-1 69-41-3, 69-41-5, 69-41-7, 69-41-9, 69-41-11, 69-41-13, AND 69-41-15, MISSISSIPPI CODE OF 1972, WHICH CREATE THE MISSISSIPPI AGRIBUSINESS COUNCIL AND PRESCRIBE ITS POWERS AND DUTIES; TO BRING FORWARD SECTION 69-41-19, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF AMENDMENT; TO REPEAL SECTION 69-41-17, MISSISSIPPI CODE OF 1972, WHICH REPEALS THE PROVISIONS THAT CREATE THE MISSISSIPPI AGRIBUSINESS COUNCIL ACT OF 1993; TO BRING FORWARD SECTIONS 69-2-9, 69-2-11, 69-2-13, 69-2-15, 69-2-17, 69-2-19, 69-2-31 AND 69-2-33, MISSISSIPPI CODE OF 1972, RELATING TO THE EMERGING CROPS FUND FOR THE PURPOSE OF AMENDMENT; AND FOR RELATED PURPOSES. 

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

SECTION 1. Section 69-41-1, Mississippi Code of 1972, is reenacted as follows:

69-41-1. This chapter shall be known and may be cited as the "Mississippi Agribusiness Council Act of 1993."

SECTION 2. Section 69-41-3, Mississippi Code of 1972, is reenacted as follows:

69-41-3. There is created a special joint committee of the Legislature to be known as the Mississippi Agribusiness Council, hereinafter referred to as "the council," for the purposes of stimulating the development of new markets for Mississippi agricultural products and industry.

SECTION 3. Section 69-41-5, Mississippi Code of 1972, is reenacted as follows:

69-41-5. (1) The council shall be composed of the following members:

(a) The Commissioner of Agriculture and Commerce;

(b) The Director of Cooperative Extension Service, Mississippi State University;

(c) The Dean of Agriculture Science at Alcorn State University;

(d) The Chairman of the Agriculture Development Committee; and

(e) The Manager of the Agribusiness Investment Program, Mississippi Department of Economic and Community Development, or his designee.

(2) In conducting the studies and formulating the recommendations required of it, the council may elicit the support of and participation by any commercial, industrial, governmental, agricultural, minority and public interest organizations or associations, or individual members thereof, and any federal, state and local agencies and political subdivisions as may be necessary, or appropriate in the furtherance of the activities of the council.

(3) In addition, the council shall be authorized to contract or enter into agreements with other agencies or private research centers that it may deem necessary to carry out its duties and functions.

(4) Members of the council shall serve without compensation, but may be reimbursed for any travel expenses in the amount provided by Section 25-3-41. Travel expenses incurred for attending meetings shall be reimbursed by each member's respective institution or agency, and all other travel expenses may be reimbursed by the council from funds appropriated therefor.

SECTION 4. Section 69-41-7, Mississippi Code of 1972, is reenacted as follows:

69-41-7. The council shall appoint a full-time, nonstate service executive director, herein called director, who shall be competent and qualified in the area of marketing and agriculture and who shall receive as compensation for services an annual salary as set by the council, but not to exceed the annual salary of the Commissioner of Agriculture and Commerce. The director shall be the one-point information contact on agricultural production, management and marketing issues and shall be charged with the duty of knowing the role and responsible personnel in each agency on matters related to agriculture. The director shall be directly responsible to the council for tasks assigned in the administration and implementation of programs developed by the council. The council may also employ a full-time, nonstate service administrative assistant or secretary for the director, whose salary shall be set by the council but not to exceed an amount recommended by the State Personnel Board.

SECTION 5. Section 69-41-9, Mississippi Code of 1972, is reenacted as follows:

69-41-9. The duties and responsibilities of the council shall be the following:

(1) To conduct national and international market research to identify trade and investment opportunities;

(2) To identify joint ventures and licensing services;

(3) To provide special assistance to Mississippi's agricultural producers and firms engaged in the marketing of agricultural products produced in Mississippi to develop markets;

(4) To conduct market studies to identify agricultural products that can be manufactured in Mississippi from materials and resources available in or to Mississippi for which a profitable and growing market exists;

(5) To advertise and solicit for production and industrial promotion purposes;

(6) To recommend legislation to assist with financial packaging by utilizing all available fund resources provided by the State of Mississippi including, but not limited to, the Small Business Investment Act, Emerging Crop Fund and the Business Financial Investment Act;

(7) To establish a Mississippi Register of Mississippi Agricultural Producers and set criteria for listing therein;

(8) To recommend purchasing agreements between state institutions and Mississippi agricultural producers;

(9) To recommend the organization of the state into marketing districts for the most effective and efficient use of marketing resources;

(10) To provide any other assistance and services necessary to accomplish the purposes of this chapter.

SECTION 6. Section 69-41-11, Mississippi Code of 1972, is reenacted as follows:

69-41-11. The council is authorized and empowered to promulgate rules and regulations required to carry out the provisions of this chapter.

SECTION 7. Section 69-41-13, Mississippi Code of 1972, is reenacted as follows:

69-41-13. The Mississippi Agribusiness Council is authorized and empowered to accept and expend monetary or in-kind contributions, gifts and grants to carry out the provisions of this chapter. Such contributions, gifts and grants shall be deposited into a special fund, hereby established in the State Treasury, to be known as the "Agribusiness Council Contribution Fund."

SECTION 8. Section 69-41-15, Mississippi Code of 1972, is reenacted as follows:

69-41-15. (1) The Agribusiness Advisory Committee is created for the purpose of providing advice to the Mississippi Agribusiness Council and shall be composed of the following members:

(a) The Chairman and Vice-Chairman of the Senate Agriculture Committee and five (5) additional members of the Senate, no more than two (2) members from one (1) congressional district. Upon recommendation by the Chairman of the Senate Agriculture Committee, the Lieutenant Governor shall appoint such five (5) additional members.

(b) The Chairman and Vice-Chairman of the House of Representatives Agriculture Committee and five (5) additional members of the House, no more than two (2) members from one (1) congressional district. Upon recommendation by the Chairman of the House of Representatives Agriculture Committee, the Speaker shall appoint such five (5) additional members.

(2) The Chairman of the Senate Agriculture Committee and the Chairman of the House of Representatives Agriculture Committee shall serve as Co-Chairmen of the Agribusiness Advisory Committee. (3) For attending meetings of the Agribusiness Advisory Committee, each legislative member shall receive per diem and expenses which shall be paid from the contingent expense funds of their respective houses in the same amounts as provided for committee meetings when the Legislature is not in session. However, no per diem and expenses shall be paid for attending meetings of the Agribusiness Advisory Committee while the Legislature is in session, and no per diem and expenses shall be paid without prior approval of the proper committee in the member's respective house. However, travel expenses incurred by members of the Agribusiness Advisory Committee which are not incurred for the purpose of attending committee meetings may be reimbursed by the Mississippi Agribusiness Council in the amount provided by Section 25-3-41, Mississippi Code of 1972.

SECTION 9. Section 69-41-19, Mississippi Code of 1972, is brought forward as follows:

69-41-19. The Agriculture Development Committee is created and shall be composed of agriculture business leaders and farmers as are appointed by the Mississippi Agribusiness Council; one (1) of the members shall be a representative of Mississippi State University, and one (1) shall be a representative of Alcorn State University. The Development Committee shall work with the Mississippi Agribusiness Council in carrying out its duties and purposes. Members of the Development Committee shall serve without compensation.

SECTION 10. Section 69-41-17, Mississippi Code of 1972, which repeals the provisions that create the Mississippi Agribusiness Council Act of 1993, is hereby repealed.

SECTION 11. Section 69-2-9, Mississippi Code of 1972, is brought forward as follows:

69-2-9. For the purposes of Sections 69-2-7 through 69-2-41, the following words shall have the meanings ascribed in this section unless the context otherwise requires:

(a) "Department" means the Mississippi Department of Economic and Community Development.

(b) "Emerging crop" means any new, nontraditional plant or animal crop (as designated by a board consisting of the executive directors of the department, the Mississippi Cooperative Extension Service and the Mississippi Agricultural and Forestry Experiment Station) or as specified in Section 69-2-11 which has a development time from beginning of production to harvest or initial sale of the product of not more than five (5) years.

(c) "Farmer" means a resident of Mississippi who engages in or wishes to engage in the commercial production of an emerging crop on land in Mississippi. This term shall include individuals, partnerships and corporations.

(d) "Fund" means the Emerging Crops Fund established in Section 69-2-13.

(e) "Interest loan" means a loan made from the fund to pay the interest on a loan made by a lender to a farmer to finance the nonland capital costs of establishing production of an emerging crop.

(f) "Lender" means a commercial bank, savings bank, savings and loan association, federal land bank, farm credit bank, production credit association or other farm credit agency which is domiciled or qualified to do business in Mississippi, or the Farmers Home Administration.

(g) "Agribusiness" means any agricultural, aquacultural, horticultural, industrial, manufacturing, research and development or processing enterprise or enterprises.

SECTION 12. Section 69-2-11, Mississippi Code of 1972, is brought forward as follows:

69-2-11. Emerging crop designations shall include, but not be limited to:

(a) Blueberries;

(b) Muscadines;

(c) Christmas trees;

(d) Aquaculture;

(e) Horticulture;

(f) Rabbit farming and processing; and

(g) Others designated by the Board of Economic Development or Legislature.

SECTION 13. Section 69-2-13, Mississippi Code of 1972, is brought forward as follows:

69-2-13. (1) There is hereby established in the State Treasury a fund to be known as the "Emerging Crops Fund," which shall be used to pay the interest on loans made to farmers for nonland capital costs of establishing production of emerging crops on land in Mississippi, and to make loans and grants which are authorized under this section to be made from the fund. The fund shall be administered by the Mississippi Department of Economic and Community Development. A board comprised of the directors of the department, the Mississippi Cooperative Extension Service, the Mississippi Small Farm Development Center and the Mississippi Agricultural and Forestry Experiment Station, or their designees, shall develop definitions, guidelines and procedures for the implementation of this chapter. Funds for the Emerging Crops Fund shall be provided from the issuance of bonds or notes under Sections 69-2-19 through 69-2-37 and from repayment of interest loans made from the fund.

(2) (a) The Mississippi Business Finance Corporation shall develop a program which gives fair consideration to making loans for the processing and manufacturing of goods and services by agribusiness and small business concerns. It is the policy of the State of Mississippi that such corporation shall give due recognition to and shall aid, counsel, assist and protect, insofar as is possible, the interests of agribusiness and small business concerns. To ensure that the purposes of this subsection are carried out, the corporation shall loan not more than One Million Dollars ($1,000,000.00) to finance any single agribusiness or small business concern. Loans made pursuant to this subsection shall be made in accordance with the criteria established in Section 57-71-11.

(b) The Mississippi Business Finance Corporation may, out of the total amount of bonds authorized to be issued under this chapter, make available funds to any planning and development district in accordance with the criteria established in Section 57-71-11. Planning and development districts which receive monies pursuant to this provision shall use such monies to make loans to private companies for purposes consistent with this subsection.

(c) The Mississippi Business Finance Corporation is hereby authorized to engage legal services, financial advisors, appraisers and consultants if needed to review and close loans made hereunder and to establish and assess reasonable fees including, but not limited to, liquidation expenses.

(3) The department shall, in addition to the other programs described in this section, provide for a program of loans to be made to agribusiness enterprises for the purpose of encouraging thereby the extension of conventional financing and the issuance of letters of credit to such agribusiness enterprises by private institutions. Monies to make such loans by the department shall be drawn from the Emerging Crops Fund. The amount of a loan to any single agribusiness enterprise shall not exceed twenty percent (20%) of the total cost of the project for which financing is sought or Two Hundred Thousand Dollars ($200,000.00), whichever is less. No interest shall be charged on such loans, and only the amount actually loaned shall be required to be repaid. Repayments shall be deposited into the Emerging Crops Fund.

(4) Through June 30, 1999, the Mississippi Business Finance Corporation may loan or grant to qualified planning and development districts, and to small business investment corporations, bank-based community development corporations, the Recruitment and Training Program, Inc., the City of Jackson Business Development Loan Fund, the Lorman Southwest Mississippi Development Corporation, the West Jackson Community Development Corporation, the East Mississippi Development Corporation, and other entities meeting the criteria established by the Mississippi Business Corporation (all referred to hereinafter as "qualified entities"), funds for the purpose of establishing loan revolving funds to assist in providing financing for minority economic development. The monies loaned or granted by the Mississippi Business Finance Corporation shall be drawn from the Emerging Crops Fund and shall not exceed Sixteen Million Dollars ($16,000,000.00) in the aggregate. Planning and development districts or qualified entities which receive monies pursuant to this provision shall use such monies to make loans to minority business enterprises consistent with criteria established by the Mississippi Business Finance Corporation. Such criteria shall include, at a minimum, the following:

(a) The business enterprise must be a private, for-profit enterprise.

(b) If the business enterprise is a proprietorship, the borrower must be a resident citizen of the State of Mississippi; if the business enterprise is a corporation or partnership, at least fifty percent (50%) of the owners must be resident citizens of the State of Mississippi.

(c) The borrower must have at least five percent (5%) equity interest in the business enterprise.

(d) The borrower must demonstrate ability to repay the loan.

(e) The borrower must not be in default of any previous loan from the state or federal government.

(f) Loan proceeds may be used for financing all project costs associated with development or expansion of a new small business, including fixed assets, working capital, start-up costs, rental payments, interest expense during construction and professional fees related to the project.

(g) Loan proceeds shall not be used to pay off existing debt for loan consolidation purposes; to finance the acquisition, construction, improvement or operation of real property which is to be held primarily for sale or investment; to provide for, or free funds, for speculation in any kind of property; or as a loan to owners, partners or stockholders of the applicant which do not change ownership interest by the applicant. However, this does not apply to ordinary compensation for services rendered in the course of business.

(h) The maximum amount that may be loaned to any one (1) borrower shall be Two Hundred Fifty Thousand Dollars ($250,000.00).

(i) The Mississippi Business Finance Corporation shall review each loan before it is made, and no loan shall be made to any borrower until the loan has been reviewed and approved by the Mississippi Business Finance Corporation.

For the purpose of this subsection, the term "minority business enterprise" means a socially and economically disadvantaged small business concern, organized for profit, performing a commercially useful function which is owned and controlled by one or more minorities or minority business enterprises certified by the Mississippi Business Finance Corporation, at least fifty percent (50%) of whom are resident citizens of the State of Mississippi. For purposes of this subsection, the term "socially and economically disadvantaged small business concern" shall have the meaning ascribed to such term under the Small Business Act (15 USCS, Section 637(a)), or women, and the term "owned and controlled" means a business in which one or more minorities or minority business enterprises certified by the Mississippi Business Finance Corporation own sixty percent (60%) or, in the case of a corporation, sixty percent (60%) of the voting stock, and control sixty percent (60%) of the management and daily business operations of the business.

From and after July 1, 1999, monies not loaned or granted by the Business Finance Corporation to planning and development districts or qualified entities under this subsection, and monies not loaned by planning and development districts or qualified entities, shall be deposited to the credit of the sinking fund created and maintained in the State Treasury for the retirement of bonds issued under Section 69-2-19.

(5) The Mississippi Business Finance Corporation shall develop a program which will assist minority business enterprises by guaranteeing bid, performance and payment bonds which such minority businesses are required to obtain in order to contract with state agencies or political subdivisions. Monies for such program shall be drawn from the monies allocated under subsection (4) of this section to assist the financing of minority economic development and shall not exceed Two Million Dollars ($2,000,000.00) in the aggregate. The Mississippi Business Finance Corporation may promulgate rules and regulations for the operation of the program established pursuant to this subsection. For the purpose of this subsection (5) the term "minority business enterprise" has the meaning assigned such term in subsection (4) of this section.

(6) The Mississippi Business Finance Corporation may loan or grant to public entities and to nonprofit corporations funds to defray the expense of financing (or to match any funds available from other public or private sources for the expense of financing) projects in this state which are devoted to the study, teaching and/or promotion of regional crafts and which are deemed by the corporation to be significant tourist attractions. The monies loaned or granted shall be drawn from the Emerging Crops Fund and shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) in the aggregate.

(7) Through June 30, 1998, the Mississippi Business Finance Corporation shall make available to the Mississippi Department of Agriculture and Commerce funds for the purpose of establishing loan revolving funds and other methods of financing for agribusiness programs administered under the Mississippi Agribusiness Council Act of 1993. The monies made available by the Mississippi Business Finance Corporation shall be drawn from the Emerging Crops Fund and shall not exceed Seven Hundred Thousand Dollars ($700,000.00) in the aggregate. The Mississippi Department of Agriculture and Commerce shall establish control and auditing procedures for use of these funds. These funds will be used primarily for quick payment to farmers for vegetable and fruit crops processed and sold through vegetable processing plants associated with the Department of Agriculture and Commerce and the Mississippi State Extension Service.

(8) From and after July 1, 1996, the Mississippi Business Finance Corporation shall make available to the Mississippi Small Farm Development Center One Million Dollars ($1,000,000.00) to be used by the center to assist small entrepreneurs as provided in Section 37-101-25, Mississippi Code of 1972. The monies made available by the Mississippi Business Finance Corporation shall be drawn from the Emerging Crops Fund.

(9) The Mississippi Business Finance Corporation shall make available to the Mississippi Department of Agriculture and Commerce for disbursement, upon warrant or warrants issued by the State Fiscal Officer upon requisitions made by the Commissioner of Agriculture and Commerce, or his designee, to the Certified Cotton Growers Organization, as defined in Section 69-37-5, funds on a one-time basis in a lump sum, an amount not to exceed Two Million Dollars ($2,000,000.00) for the purpose of assisting in carrying out the purposes of the Mississippi Boll Weevil Management Act. The monies made available by the Mississippi Business Finance Corporation shall be drawn from the Emerging Crops Fund. This subsection (9) shall be repealed from and after June 30, 1999.

(10) Upon request by resolution of the Board of Directors of the Institute for Technology Development and the Mississippi Agribusiness Council, the Mississippi Business Finance Corporation shall make available to the Institute for Technology Development on a one-time basis, an amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00) from the cash balance of the Emerging Crops Fund to support the development of a cooperative program for agribusiness development with the Alternative Agriculture Research and Commercialization Program (AARC) of the United States Department of Agriculture.

(11) The Mississippi Business Finance Corporation shall make available to the Mississippi Forestry Commission on a one-time basis a lump sum amount not to exceed Five Hundred Thousand Dollars ($500,000.00) to be drawn from the Emerging Crop Fund and used for the commission's Reforestation Cost-Share Program. This subsection (11) shall be repealed from and after June 30, 1999.

SECTION 14. Section 69-2-15, Mississippi Code of 1972, is brought forward as follows:

69-2-15. (1) Any lender which has made a loan to a farmer to finance the nonland capital costs of establishing production of an emerging crop on land in Mississippi may make application to the department for payment of the interest on the loan during the period from beginning of production to harvest or initial sale of the product, which payment shall be made from the fund. The maximum amount of interest loans from the fund for the benefit of any one (1) farmer shall be Fifty Thousand Dollars ($50,000.00). During the period that the department pays the interest on a loan, the maximum rate of interest which may be charged on the loan by the lender shall be four percent (4%) per annum above the New York prime rate. By payment of the interest on a loan, neither the department nor the State of Mississippi shall be a guarantor of the loan, but the state shall have a lien junior to any lien that the lender may have on the loan.

(2) If a farmer defaults on the interest loan the Attorney General of the State of Mississippi shall take the necessary legal action, as soon as practicable, to recover the monies due and owing to the State of Mississippi. A suit against a defaulting party under this section may be brought in the county in which the lender is located, or in any Hinds County court.

SECTION 15. Section 69-2-17, Mississippi Code of 1972, is brought forward as follows:

69-2-17. (1) Repayment of the interest loan from the fund shall be deferred for a period of time not more than five (5) years or the time when the emerging crop should reach maturity. The schedule for repayment of the interest loan shall be a period of time equal to two (2) times the period that interest is paid on the loan for that emerging crop from the fund. No interest shall be charged on interest loans from the fund, and only the amount actually loaned from the fund shall be required to be repaid.

(2) Repayment of interest loans from the fund shall be made to the lender, which shall remit the amounts collected to the department for deposit into the fund. However, if the repayment period for an interest loan exceeds the time for repayment of the principal loan amount to the lender, when the final principal payment is made to the lender all subsequent interest loan payments shall be made by the farmer, directly to the department to be deposited into the fund.

(3) The lender shall notify the department, as soon as possible, of any change in the principal loan status, release of collateral or any other matter that may adversely affect the security of the state's loan.

SECTION 16. Section 69-2-19, Mississippi Code of 1972, is brought forward as follows:

69-2-19. The State Department of Economic and Community Development is authorized, at one (1) time or from time to time, to declare by resolution the necessity for issuance of negotiable general obligation bonds of the State of Mississippi to provide funds for the Emerging Crops Fund established in Section 69-2-13. Upon the adoption of a resolution by the board, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by Sections 69-2-19 through 69-2-39, the department shall deliver a certified copy of its resolution or resolutions to the State Bond Commission. Upon receipt of same, the State Bond Commission, in its discretion, shall act as the issuing agent, prescribe the form of the bonds, advertise for and accept bids, issue and sell the bonds so authorized to be sold, and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The amount of bonds issued under Sections 69-2-19 through 69-2-39 shall not exceed Ninety-five Million Dollars ($95,000,000.00) in the aggregate. No bonds may be issued under Sections 69-2-19 through 69-2-39 after October 1, 1997.

SECTION 17. Section 69-2-31, Mississippi Code of 1972, is brought forward as follows:

69-2-31. Upon the issuance and sale of bonds or notes, the State Bond Commission shall transfer the proceeds of any such sale or sales to the Emerging Crops Fund. The proceeds of such bonds or notes shall be disbursed solely upon the order of the department under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds or notes.

SECTION 18. Section 69-2-33, Mississippi Code of 1972, is brought forward as follows:

69-2-33. The Attorney General of the State of Mississippi shall represent the department in issuing, selling and validating bonds or notes authorized under Sections 69-2-19 through 69-2-39 of this chapter, and the department is authorized to pay from the proceeds derived from the sale of such bonds or notes, or from other funds available to the department, the reasonable cost of approving attorney's fees, validating, printing and cost of delivery of such bonds or notes.

SECTION 19. This act shall take effect and be in force from and after its passage.