MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Economic Dev, Tourism and Parks; Finance

By: Senator(s) Simmons, Furniss, Horhn, Dearing, Carlton, Dickerson, Posey, Johnson (38th), Jordan (24th), Walls, Blackmon

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

SECTION 1. This act may be cited as the Economic Development Act of 1998.

SECTION 2. Sections 2 through 13 of this act may be cited as the Child Day Care Loan Guarantee Act of 1998.

SECTION 3. The purpose of this act is to encourage lenders to make loans available to child day care providers for the purpose of financing the development and expansion of child day care centers in less developed counties of the state and to increase the quality and availability of child day care and employment opportunities in these areas.

SECTION 4. As used in this act:

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

(b) "Designated entity" means an entity designated to administer the Child Day Care Loan Guarantee Fund pursuant to Section 6 of this act.

(c) "Child day care provider" means a person providing or planning to provide child day care.

(d) "Less developed counties" means those counties designated as less developed as provided for in Section 53-73-21, Mississippi Code of 1972.

(e) "Fund" means the Child Day Care Loan Guarantee Fund.

SECTION 5. There is created in the State Treasury a special fund to be known as the "Child Day Care Loan Guarantee Fund," into which shall be deposited such money as the Legislature may provide by appropriation and any other money received by DECD for the purposes of this act from any other source. Money in the fund shall be used to guarantee loans made by lenders to qualifying child day care providers to finance the development or expansion of child day care centers in less developed counties. The fund shall be administered by DECD or a designated entity and money in the fund shall be expended upon appropriation by the Legislature. Unexpended amounts remaining in the fund at the end of the state fiscal year shall not lapse into the State General Fund, and any interest earned on amount in the fund shall be deposited to the credit of the fund.

SECTION 6. DECD shall:

(a) Administer the fund or designate an appropriate entity to administer the fund.

(b) Develop a loan approval process and such process shall be managed in accordance with the policies DECD establishes.

(c) Monitor projects to ensure compliance with applicable state and federal laws, rules and relevant court decisions.

(d) Develop procedures for managing defaults and for enforcing the obligations of borrowers to repay loans.

SECTION 7. In making loan guarantees under this act, DECD or the designated entity shall give priority to child day care providers that serve or intend to serve less developed counties that demonstrate the greatest need for child day care services. DECD or the designated entity shall attempt to distribute the loan guarantees geographically among less developed counties.

SECTION 8. Loans that are eligible for guarantees under this act may be made only for the following reasons:

(a) The construction, purchase, lease or improvement of buildings or other facilities.

(b) The purchase or improvement of land.

(c) The purchase or lease of equipment, including vehicles.

(d) Start-up and operation costs.

(e) Initial operating expenses.

SECTION 9. Loan guarantees under this act shall be subject to the following restrictions:

(a) A loan guarantee shall not be granted in an amount greater than Seventy-five Thousand Dollars ($75,000.00).

(b) Not more than eighty percent (80%) of a loan shall be guaranteed.

(c) The aggregate amount of loan guarantees issued pursuant to this act shall not exceed five (5) times the amount deposited in the fund.

SECTION 10. In determining whether to grant a loan guarantee to a child day care provider who has a history of operating or owning a child day care center DECD or the designated entity shall use the following criteria:

(a) Quality of programming and staff.

(b) Ratio of children to staff.

(c) Quality of facilities.

(d) Degree of coordination with Head Start or other programs.

(e) Quality of administrative and financial management.

(f) History of compliance with child day care licensing or registration requirements.

(g) Ability to repay.

SECTION 11. DECD shall formulate criteria to be utilized in determining whether to grant a loan guarantee to a child day care provider that does not have a history of operating or owning a child day care center.

SECTION 12. An applicant for a guarantee under this act shall supply DECD or the designated entity with the following:

(a) A detailed description of the project.

(b) A disclosure of additional funds, if any, that are available to the applicant.

(c) Information that relates to the inability of the applicant to obtain adequate financing on reasonable terms through normal lending channels, such as a letter from a lender certifying that it would not grant credit without the loan guarantee.

(d) Credit references, if available, for the applicant.

(e) A five-year projected budget.

(f) A comprehensive business plan that includes the applicant's plans in the areas of:

(i) Debt reduction;

(ii) Marketing;

(iii) Staff training;

(iv) Facility improvement; and

(v) Program improvement.

(g) Such other information as DECD may require.

SECTION 13. Upon default by a borrower, the lender, consistent with its current collections policies, shall exercise reasonable diligence in its collection efforts before the fund shall be liable for the default.

SECTION 14. Sections 14 and 15 of this act may be cited as the "Community Development Corporation Grant Act of 1998."

SECTION 15. (1) As used in this section:

(a) "Community development corporation" means a nonprofit corporation:

(i) Tax-exempt pursuant to Section 501(c)(3) of the Internal revenue Code of 1986;

(ii) Whose primary mission is to develop and improve low-income communities and neighborhoods through economic and related development;

(iii) Whose activities and decisions are initiated, managed and controlled by the constituents of those local communities; and

(iv) Whose primary function is to act as deal-maker and packager of opportunities to become owners, managers and producers of small businesses, affordable housing and jobs designed to produce positive cash flow and curb blight in the target community.

(b) "DECD" means the Department of Economic and Community Development.

(c) "Fund" means the Community Development Grant Fund.

(2) There is created in the State Treasury a special fund to be known as the "Community Development Grant Fund" into which shall be deposited such money as the Legislature shall provide by appropriation and any money received by DECD from any other source for the purpose of providing grants pursuant to this section. Money in the fund shall be used to provide grants to community development corporations. The fund shall be administered by DECD, and money in the fund shall be expended upon appropriation by the Legislature. Unexpended amounts remaining in the fund and the end of the state fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund.

(3) DECD shall award grants to community development corporations from the fund to support the operations and activities of community development corporations. All community development corporations shall be eligible for grants. DECD shall establish and implement performance-based criteria for determining which community development corporations shall receive a grant and the amount of grants awarded.

SECTION 16. (1) As used in this section, "empowerment zones" or "enterprise communities" shall include those areas in Mississippi designated as such pursuant to 26 USCA 1391.

(2) Permanent business enterprises in areas designated as empowerment zones and enterprise communities, are allowed a tax credit for taxes imposed by Section 27-7-5, Mississippi Code of 1972, annually for each net new full-time employee job for five (5) years beginning with years two (2) through six (6) after the creation of the job in the following amounts:

(a) Five Hundred Dollars ($500.00) for employee jobs that are compensated at less than twenty-five percent (25%) more than the amount the federal minimum wage;

(b) One Thousand Dollars ($1,000.00) for employee jobs that are compensated at twenty-five percent (25%) or more than the amount of the federal minimum wage but less than fifty percent (50%) more than the amount federal minimum wage;

(c) One Thousand Five Hundred Dollars ($1,500.00) for employee jobs that are compensated at fifty percent (50%) or more than the amount of the federal minimum wage but less than seventy-five percent (75%) more than the amount federal minimum wage;

(d) Two Thousand Dollars ($2,000.00) for employee jobs that are compensated at seventy-five percent (75%) or more than the amount of the federal minimum wage but less than one hundred percent (100%) more than the amount federal minimum wage; and

(e) Two Thousand Five Hundred Dollars ($2,500.00) for employee jobs that are compensated at one hundred percent (100%) or more than the amount federal minimum wage.

(3) The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees subject to the Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. Only those permanent businesses that increase employment by ten (10) or more in empowerment zones or enterprise communities are eligible for the credit. Credit is not allowed during any of the five (5) years if the net employment increase falls below ten (10). The tax commission shall adjust the credit allowed each year for the net new employment fluctuations above the minimum level of ten (10).

(4) Tax credits for five (5) years for the taxes imposed by Section 27-7-5 shall be awarded for additional net new full-time jobs created by business enterprises qualified under this section. The tax commission shall adjust the credit allowed in the event of employment fluctuations during the additional five (5) years of credit.

(5) The sale, merger, acquisition, reorganization, bankruptcy or relocation from one county to another county within the state of any business enterprise may not create new eligibility in any succeeding business entity, but any unused tax credit may be transferred and continued by any transferee of the business enterprise. The tax commission shall determine whether or not qualifying net increases or decreases have occurred or proper transfers of credit have been made, and may require reports, promulgate regulations and hold hearings as needed for substantiation and qualification.

(6) Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) years from the close of the tax year in which the qualified jobs were established, but the credit established by this section taken in any one (1) tax year must be limited to an amount not greater than fifty percent (50%) of the taxpayer's state income tax liability which is attributable to income derived from operations in the state of that year.

(7) No business enterprise for the transportation, handling, storage processing or disposal of hazardous waste is eligible to receive the tax credit provided in this section.

(8) The credit allowed under this section shall not be used by any business enterprise or corporation other than the business enterprise actually qualifying for the credit.

(9) The tax credit provided for in this section shall be in addition to any tax credits provided for in Section 57-73-21.

(10) This section shall stand repealed from and after January 1, 2005.

SECTION 17. Section 57-73-21, Mississippi Code of 1972, is amended as follows:

57-73-21. (1) 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, the State Tax Commission shall rank and designate the state's counties as provided in this section. The twenty-eight (28) counties in this state having * * * the highest unemployment rate * * * for the most recent thirty-six-month period, * * * are designated less developed areas. The twenty-seven (27) counties in the state with * * * the next highest unemployment rate * * * for the most recent thirty-six-month period * * * are designated moderately developed areas. The twenty-seven (27) counties in the state with * * * the lowest unemployment rate * * * for the most recent thirty-six-month period * * * are designated developed areas. Counties designated by the Tax Commission qualify for the appropriate tax credit for jobs as provided in subsections (2), (3) and (4) of this section. The designation by the Tax Commission is effective for the tax years of permanent business enterprises which begin after the date of designation. For companies which plan an expansion in their labor forces, the Tax Commission shall prescribe certification procedures to ensure that the companies can claim credits in future years without regard to whether or not a particular county is removed from the list of less developed or moderately developed areas.

(2) Permanent business enterprises primarily engaged in manufacturing, processing, warehousing, distribution, wholesaling and research and development, or permanent business enterprises designated by rule and regulation of the Department of Economic and Community Development as air transportation and maintenance facilities, final destination or resort hotels having a minimum of one hundred fifty (150) guest rooms, recreational facilities that impact tourism, movie industry studios, or telecommunications enterprises, in counties designated by the Tax Commission as less developed areas are allowed a job tax credit for taxes imposed by Section 27-7-5 equal to Four Thousand Dollars ($4,000.00) annually for each net new full-time employee job for five (5) years beginning with years two (2) through six (6) after the creation of the job. The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees subject to the Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. Only those permanent businesses that increase employment by ten (10) or more in a less developed area are eligible for the credit. Credit is not allowed during any of the five (5) years if the net employment increase falls below ten (10). The Tax Commission shall adjust the credit allowed each year for the net new employment fluctuations above the minimum level of ten (10).

(3) Permanent business enterprises primarily engaged in manufacturing, processing, warehousing, distribution, wholesaling and research and development, or permanent business enterprises designated by rule and regulation of the Department of Economic and Community Development as air transportation and maintenance facilities, final destination or resort hotels having a minimum of one hundred fifty (150) guest rooms, recreational facilities that impact tourism, movie industry studios, or telecommunications enterprises, in counties that have been designated by the Tax Commission as moderately developed areas are allowed a job tax credit for taxes imposed by Section 27-7-5 equal to One Thousand Dollars ($1,000.00) annually for each net new full-time employee job for five (5) years beginning with years two (2) through six (6) after the creation of the job. The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees subject to Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. Only those permanent businesses that increase employment by fifteen (15) or more in areas that have not been designated less developed areas are eligible for the credit. The credit is not allowed during any of the five (5) years if the net employment increase falls below fifteen (15). The Tax Commission shall adjust the credit allowed each year for the net new employment fluctuations above the minimum level of fifteen (15).

(4) Permanent business enterprises primarily engaged in manufacturing, processing, warehousing, distribution, wholesaling and research and development, or permanent business enterprises designated by rule and regulation of the Department of Economic and Community Development as air transportation and maintenance facilities, final destination or resort hotels having a minimum of one hundred fifty (150) guest rooms, recreational facilities that impact tourism, movie industry studios, or telecommunications enterprises, in counties designated by the Tax Commission as developed areas are allowed a job tax credit for taxes imposed by Section 27-7-5 equal to Five Hundred Dollars ($500.00) annually for each net new full-time employee job for five (5) years beginning with years two (2) through six (6) after the creation of the job. The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees subject to Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. Only those permanent businesses that increase employment by twenty (20) or more in developed areas are eligible for the credit. The credit is not allowed during any of the five (5) years if the net employment increase falls below twenty (20). The Tax Commission shall adjust the credit allowed each year for the net new employment fluctuations above the minimum level of twenty (20).

(5) In addition to the credits authorized in subsections (2), (3) and (4), an additional Five Hundred Dollars ($500.00) credit for each net new full-time employee shall be allowed for any company establishing or transferring its national or regional headquarters from within or outside the State of Mississippi. A minimum of thirty-five (35) jobs must be created to qualify for the additional credit. The State Tax Commission shall establish criteria and prescribe procedures to determine if a company qualifies as a national or regional headquarters for purposes of receiving the credit awarded in this subsection.

(6) In addition to the credits authorized in subsections (2), (3), (4) and (5), any job requiring research and development skills (chemist, engineer, etc.) shall qualify for an additional Five Hundred Dollars ($500.00) credit for each net new full-time employee.

(7) Tax credits for five (5) years for the taxes imposed by Section 27-7-5 shall be awarded for additional net new full-time jobs created by business enterprises qualified under subsections (2), (3), (4), (5) and (6) of this section. The Tax Commission shall adjust the credit allowed in the event of employment fluctuations during the additional five (5) years of credit.

(8) The sale, merger, acquisition, reorganization, bankruptcy or relocation from one county to another county within the state of any business enterprise may not create new eligibility in any succeeding business entity, but any unused job tax credit may be transferred and continued by any transferee of the business enterprise. The Tax Commission shall determine whether or not qualifying net increases or decreases have occurred or proper transfers of credit have been made and may require reports, promulgate regulations, and hold hearings as needed for substantiation and qualification.

(9) Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) years from the close of the tax year in which the qualified jobs were established but the credit established by this section taken in any one (1) tax year must be limited to an amount not greater than fifty percent (50%) of the taxpayer's state income tax liability which is attributable to income derived from operations in the state for that year.

(10) No business enterprise for the transportation, handling, storage, processing or disposal of hazardous waste is eligible to receive the tax credits provided in this section.

(11) The credits allowed under this section shall not be used by any business enterprise or corporation other than the business enterprise actually qualifying for the credits.

(12) The tax credits provided for in this section shall be in addition to any tax credits described in Sections 57-51-13(b), 57-53-1(1)(a) and 57-54-9(b) and granted pursuant to official action by the Department of Economic Development prior to July 1, 1989, to any business enterprise determined prior to July 1, 1989, by the Department of Economic Development to be a qualified business as defined in Section 57-51-5(f) or Section 57-54-5(d) or a qualified company as described in Section 57-53-1, as the case may be; however, from and after July 1, 1989, tax credits shall be allowed only under either this section or Sections 57-51-13(b), 57-53-1(1)(a) and Section 57-54-9(b) for each net new full-time employee.

(13) As used in this section, the term "telecommunications enterprises" means entities engaged in the creation, display, management, storage, processing, transmission or distribution for compensation of images, text, voice, video or data by wire or by wireless means, or entities engaged in the construction, design, development, manufacture, maintenance or distribution for compensation of devices, products, software or structures used in the above activities. Companies organized to do business as commercial broadcast radio stations, television stations or news organizations primarily serving in-state markets shall not be included within the definition of the term "telecommunications enterprises."

SECTION 18. Section 57-1-303, Mississippi Code of 1972, is amended as follows:

57-1-303. (1) * * * There is created a special fund in the State Treasury to be designated as the "Local Governments Capital Improvements Revolving Loan Fund," which fund shall consist of such monies as provided in Sections 57-1-307 through 57-1-335. The fund shall be maintained in perpetuity for the purposes established in Sections 57-1-301 through 57-1-335. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund. Monies in the fund may not be used or expended for any purpose

except as authorized under Sections 57-1-301 through 57-1-335.

(2) A county or an incorporated municipality may apply to the Department of Economic and Community Development for a loan under the local governments capital improvements revolving loan program established under Sections 57-1-301 through 57-1-335.

(3) * * * The Department of Economic and Community Development shall establish a loan program by which loans, at a rate of interest not to exceed one percent (1%) less than the federal reserve discount rate, may be made available to counties and incorporated municipalities to assist counties and incorporated municipalities in making capital improvements. Loans from the revolving fund may be made to counties and municipalities as set forth in a loan agreement in amounts not to exceed one hundred percent (100%) of eligible project costs as established by the Department of Economic and Community Development. The Department of Economic and Community Development may require county or municipal participation or funding from other sources, or otherwise limit the percentage of costs covered by loans from the revolving fund. The Department of Economic and Community Development may establish a maximum amount for any loan in order to provide for broad and equitable participation in the program.

(4) A county that receives a loan from the revolving fund shall pledge for repayment of the loan any part of the homestead exemption annual tax loss reimbursement to which it may be entitled under Section 27-33-77. An incorporated municipality that receives a loan from the revolving fund shall pledge for repayment of the loan any part of the sales tax revenue distribution to which it may be entitled under Section 27-65-75. Each loan agreement shall provide for (i) monthly payments, (ii) semiannual payments, or (iii) other periodic payments, the annual total of which shall not exceed the annual total for any other year of the loan by more than fifteen percent (15%). The loan agreement shall provide for the repayment of all funds received within not more than fifteen (15) years from the date of project completion.

(5) The State Auditor, upon request of the Department of Economic and Community Development, shall audit the receipts and expenditures of a county or an incorporated municipality whose loan payments appear to be in arrears, and if he finds that the county or municipality is in arrears in such payments, he shall immediately notify the Executive Director of the Department of Finance and Administration who shall withhold all future payments to the county of homestead exemption reimbursements under Section 27-33-77 and all sums allocated to the county or the municipality under Section 27-65-75 until such time as the county or the municipality is again current in its loan payments as certified by the Department of Economic and Community Development.

(6) Evidences of indebtedness which are issued pursuant to this chapter shall not be deemed indebtedness within the meaning specified in Section 21-33-303 with regard to cities or incorporated towns, and in Section 19-9-5 with regard to counties.

SECTION 19. 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 Sixty Million Dollars ($260,000,000.00), 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 20. 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 Eight Million Dollars ($8,000,000.00) 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 * * *.

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 21. The following provision 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 focus of such program shall be to assist chronically unemployed persons in less developed counties in overcoming barriers that may block successful employment. 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) As used in this section the term "less developed counties" shall mean the counties designated as such under Section 57-73-21, Mississippi Code of 1972.

SECTION 22. The following provision shall be codified as Section 51-61-43, 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 23. (1) The Mississippi Transportation Commission, at one time or from time to time, may declare the necessity for issuance of general obligation bonds of the State of Mississippi to provide funds for constructing, equipping and furnishing a hospitality station, as provided in Section 65-31-1, Mississippi Code of 1972, to be located in the vicinity of the intersection of U.S. Highway 49 and U.S. Highway 61 in Coahoma County, Mississippi, which is approximately seventeen and two tenths (17.2) miles north of Clarksdale, Mississippi.

(2) Upon the declaration of the Mississippi Transportation Commission of the necessity for the issuance of any part or all of the general obligation bonds authorized by this section, the Mississippi Transportation Commission shall deliver a certified copy of its declaration to the State Bond Commission. Upon receipt of such declaration, the State Bond Commission, in its discretion, may 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.

(3) The amount of bonds issued under Sections 23 through 36 of this act shall not exceed Two Million Five Hundred Thousand Dollars ($2,500,000.00).

SECTION 24. The principal of and interest on the bonds authorized under Sections 23 through 36 of this act shall be payable in the manner provided in this section. Such bonds shall bear such date or dates, be in such denomination or denominations, bear interest at such rate or rates not exceeding the limits set forth in Section 75-17-101, Mississippi Code of 1972, be payable at such place or places within or without the State of Mississippi, shall mature absolutely at such time or times not to exceed twenty (20) years from date of issue, be redeemable before maturity at such time or times and upon such terms, with or without premium, shall bear such registration privileges, and shall be substantially in such form, all as determined by resolution of the State Bond Commission.

SECTION 25. The bonds authorized under Sections 23 through 36 of this act shall be signed by the Chairman of the State Bond Commission, or by his facsimile signature, and the official seal of the State Bond Commission shall be affixed thereto, attested by the Secretary of the State Bond Commission. The interest coupons, if any, to be attached to such bonds may be executed by the facsimile signatures of such officers. Whenever any such bonds shall have been signed by the officials designated to sign the bonds who were in office at the time of such signing but who may have ceased to be such officers before the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the signatures of such officers upon such bonds and coupons shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially signing such bonds had remained in office until their delivery to the purchaser, or had been in office on the date such bonds may bear. However, notwithstanding anything in this act to the contrary, such bonds may be issued as provided in the Registered Bond Act of the State of Mississippi.

SECTION 26. All bonds and interest coupons issued under the provisions of Sections 23 through 36 of this act have all the qualities and incidents of negotiable instruments under the provisions of the Mississippi Uniform Commercial Code, and in exercising the powers granted by Sections 23 through 36 of this act, the State Bond Commission shall not be required to and need not comply with the provisions of the Mississippi Uniform Commercial Code.

SECTION 27. The State Bond Commission shall act as the issuing agent for the bonds authorized under Sections 23 through 36 of this act, prescribe the form of the bonds, advertise for and accept bids, issue and sell the bonds so authorized to be sold, pay all fees and costs incurred in such issuance and sale, and do all other things necessary and advisable in connection with the issuance and sale of the bonds. The State Bond Commission may pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under Sections 23 through 36 of this act from the proceeds derived from the sale of the bonds. The State Bond Commission shall sell such bonds on sealed bids at public sale, and for such price as it may determine to be for the best interest of the State of Mississippi, but no such sale may be made at a price less than par plus accrued interest to the date of delivery of the bonds to the purchaser. All interest accruing on such bonds so issued shall be payable semiannually or annually; however, the first interest payment may be for any period of not more than one (1) year.

Notice of the sale of any such bond shall be published at least one (1) time, not less than ten (10) days before the date of sale, and shall be so published in one or more newspapers published or having a general circulation in the City of Jackson, Mississippi, and in one or more other newspapers or financial journals with a national circulation, to be selected by the State Bond Commission.

The State Bond Commission, when issuing any bonds under the authority of Sections 23 through 36 of this act, may provide that the bonds, at the option of the State of Mississippi, may be called in for payment and redemption at the call price named therein and accrued interest on such date or dates named therein.

SECTION 28. The bonds issued under the provisions of Sections 23 through 36 of this act are general obligations of the State of Mississippi, and for the payment thereof the full faith and credit of the State of Mississippi is irrevocably pledged. If the funds appropriated by the Legislature are insufficient to pay the principal of and the interest on such bonds as they become due, then the deficiency shall be paid by the State Treasurer from any funds in the State Treasury not otherwise appropriated. All such bonds shall contain recitals on their faces substantially covering the provisions of this section.

SECTION 29. The State Treasurer is authorized to certify to the State Fiscal Officer the necessity for warrants, and the State Fiscal Officer is authorized and directed to issue such warrants, in such amounts as may be necessary to pay when due the principal of, premium, if any, and interest on, or the accreted value of, all bonds issued under Sections 23 through 36 of this act; and the State Treasurer shall forward the necessary amount to the designated place or places of payment of such bonds in ample time to discharge such bonds, or the interest on the bonds, on their due dates.

SECTION 30. Upon the issuance and sale of bonds under Sections 23 through 36 of this act, the State Bond Commission shall deposit the proceeds of any such sale or sales in a special fund created in the State Treasury to be known as the "Coahoma County Hospitality Station Fund." The proceeds of such bonds shall be used solely for the purposes provided in Sections 23 through 36 of this act, including the costs incident to the issuance and sale of such bonds. The costs incident to the issuance and sale of such bonds shall be disbursed by warrant upon requisition of the State Bond Commission, signed by the chairman of the commission. The remaining monies in the fund shall be expended solely under the direction of the Mississippi Transportation Commission under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds, and such funds shall be paid by the State Treasurer upon warrants issued by the State Fiscal Officer.

SECTION 31. The bonds authorized under Sections 23 through 36 of this act may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions and things that are specified or required by Sections 23 through 36 of this act. Any resolution providing for the issuance of bonds under Sections 23 through 36 of this act shall become effective immediately upon its adoption by the State Bond Commission, and any such resolution may be adopted at any regular or special meeting of the State Bond Commission by a majority of its members.

SECTION 32. The bonds authorized under the authority of Sections 23 through 36 of this act may be validated in the Chancery Court of the First Judicial District of Hinds County, Mississippi, in the manner and with the force and effect provided by Chapter 13, Title 31, Mississippi Code of 1972, for the validation of county, municipal, school district and other bonds. The notice to taxpayers required by such statutes shall be published in a newspaper published or having a general circulation in the City of Jackson, Mississippi.

SECTION 33. Any holder of bonds issued under Sections 23 through 36 of this act or of any of the interest coupons pertaining to the bonds may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce all rights granted under Sections 23 through 36 of this act, or under such resolution, and may enforce and compel performance of all duties required by Sections 23 through 36 of this act to be performed, in order to provide for the payment of bonds and interest on the bonds.

SECTION 34. All bonds issued under Sections 23 through 36 of this act shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi, and such bonds shall be legal securities that may be deposited with and shall be received by all public officers and bodies of this state and all municipalities and political subdivisions for the purpose of securing the deposit of public funds.

SECTION 35. Bonds issued under Sections 23 through 36 of this act and income from the bonds shall be exempt from all taxation in the State of Mississippi.

SECTION 36. Sections 23 through 36 of this act shall be deemed to be full and complete authority for the exercise of the powers granted, but Sections 23 through 36 of this act shall not be deemed to repeal or to be in derogation of any existing law of this state.

SECTION 37. Section 65-31-1, Mississippi Code of 1972, is amended as follows:

65-31-1. (1) The Mississippi Transportation Commission is hereby authorized to locate, design, construct, operate, and maintain hospitality stations on trunkline highways at or near points of entry into this state from other states. In carrying out the provisions of this chapter, the Mississippi Transportation Commission shall have authority to employ such engineers, architects, skilled and unskilled labor as may be determined necessary by the commission, for the preparation of plans for such hospitality stations and their proper location, design, construction, maintenance and operation. * * *

(2) Except as to the hospitality station described in subsection (3) of this section, prior to the locating of * * * hospitality stations the Mississippi Transportation Commission shall afford the opportunity for a public hearing in the county wherein such hospitality station is to be located for the purpose of receiving testimony regarding the most feasible and advantageous location for such hospitality station, at which hearing all interested persons may appear and present testimony in regard thereto. A notice of such proposed location shall be given in some newspaper published or having general circulation in the county wherein such hospitality station is proposed to be located. Should a public hearing be requested thereon, notice by publication shall be given at least ten (10) days prior to the date upon which public hearing is to be held and written notice thereof shall likewise be given, within said time, to the governing authorities of all municipalities within such county and the governing authority of such county.

(3) The Mississippi Transportation Commission shall have the transportation department construct a hospitality station in the vicinity of the intersection of U.S. Highway 49 and U.S. Highway 61 in Coahoma County, Mississippi.

(4) Each hospitality station constructed under the provisions of this chapter shall be maintained and kept in a neat and attractive condition.

SECTION 38. This act shall take effect and be in force from and after July 1, 1998.