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 57-73-21, 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 and Community College 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 and Community College Grant Fund.

(2) There is created in the State Treasury a special fund to be known as the "Community Development and Community College 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 and public community colleges. 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. DECD shall award grants to public community colleges to assist community colleges in funding industrial training programs. All community development corporations and public community colleges shall be eligible for grants. DECD shall establish and implement performance-based criteria for determining which community development corporations and public community colleges 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) 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.

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

(9) 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 Two Thousand Dollars ($2,000.00) 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; provided, however, that the job tax credit allowed pursuant to this subsection for each net new full-time employee job created on or after July 1, 1998, shall be Four Thousand Dollars ($4,000.00). 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 57-61-25, 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 Thirty-seven Million Dollars ($237,000,000.00), 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 19. 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 20. 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 21. 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 22. The following provision shall be codified as Section 51-61-45, Mississippi Code of 1972:

57-61-45. Notwithstanding any provision of this chapter to the contrary, the Department of Economic and Community Development shall utilize not more than Two Million Dollars ($2,000,000.00) out of the proceeds of bonds issued in this chapter to provide a grant to provide funds for the Community Development and Community College Grant Fund established in Section 15 of Senate Bill No. 3026, 1998 Regular Session.

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

SECTION 23. The provisions of Sections 16 and 17 of this act shall apply to taxable years beginning on or after July 1, 1998.

SECTION 24. As used in Sections 24 through 41 of this act, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:

(a) "Accreted value" of any bond means, as of any date of computation, an amount equal to the sum of (i) the stated initial value of such bond, plus (ii) the interest accrued thereon from the issue date to the date of computation at the rate, compounded semiannually, that is necessary to produce the approximate yield to maturity shown for bonds of the same maturity.

(b) "State" means the State of Mississippi.

(c) "Commission" means the State Bond Commission.

SECTION 25. (1) The purpose of Sections 24 through 41 of this act is to provide the necessary funding for the acquisition, construction, equipping and furnishing of the Advanced Center for Technology Partnerships in Hattiesburg, Mississippi. The development of the center is a joint and cooperative effort of Pearl River Community College, Jones County Junior College, the University of Southern Mississippi, other postsecondary institutions, area public school systems, local business, industry, economic development and government entities. Pearl River Community College, Jones County Junior College, University of Southern Mississippi and other universities and colleges may offer courses at the Advanced Technology Partnership Center.

The mission of the center is to:

(a) Act as a center for business/industrial training and lifelong learning by providing professional development programs, workshops, training sessions and conferences as well as credit and noncredit courses (academic and continuing education units);

(b) Act as a center for "cutting edge" and under-used technology development and training;

(c) Be a resource and assistance center for community and economic development;

(d) Be a resource center for faculty (teachers), staff development and students in the area of advanced technology, both under-used and futuristic, and business/industry trends and needs;

(e) Be a comprehensive industrial training center for new and future workforce entrants, and retraining of workforce by coordinating existing and new services;

(f) Be a center with a network system which provides a coalition of partners that can reflect the trend of bridging resources within a community with international resources;

(g) Be an advanced skills center that focuses on an innovative economic development collaboration of educators, government and private sector partners; and

(h) Be a training, research and development service and public relations arm of Pearl River Community College, Jones County Junior College and the University of Southern Mississippi.

(2) The center shall be located in Hattiesburg, Mississippi, on the University of Southern Mississippi property and shall be administered by the University of Southern Mississippi in cooperation with Jones County Junior College and Pearl River Community College, public school systems, local business, industry, economic development and government entities.

SECTION 26. (1) A special fund, to be designated the "1998 Advanced Center for Technology Partnerships Fund," is created within the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state, and investment earnings on amounts in the fund shall be deposited into such fund. The expenditure of monies deposited into the fund shall be under the direction of the Department of Finance and Administration, and such funds shall be paid by the State Treasurer upon warrants issued by the Department of Finance and Administration. Monies deposited into such fund shall be allocated and disbursed according to the provisions of Sections 24 through 41 of this act.

(2) Monies deposited into the fund shall be disbursed to pay the costs of the development, acquisition, construction, equipping and furnishing of the Advanced Center for Technology Partnerships. Monies in the fund shall be allocated and disbursed, through the Department of Finance and Administration, to pay the costs associated with the development, acquisition, construction, equipping and furnishing of the center. Five Hundred Thousand Dollars ($500,000.00) each for year one will be used for development.

SECTION 27. (1) The Department of Finance and Administration, at one (1) time or from time to time, may declare by resolution the necessity for issuance of general obligation bonds of the State of Mississippi to provide funds for all costs incurred or to be incurred for the purposes described in Sections 25 and 26 of this act. Upon the adoption of a resolution by the Department of Finance and Administration declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this section, the Department of Finance and Administration shall deliver a certified copy of its resolution or resolutions to the State Bond Commission. Upon receipt of such resolution the 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. The amount of bonds issued under Sections 24 through 41 of this act shall not exceed Eight Million Dollars ($8,000,000.00).

(2) Any investment earnings on amounts deposited into the 1998 Advanced Center for Technology Partnerships Fund created in Section 26 of this act shall be used to pay debt service on bonds issued under Sections 24 through 41 of this act, in accordance with the proceedings authorizing issuance of such bonds.

(3) Upon the completion or abandonment of the project described in Sections 25 and 26 of this act, as evidenced by a resolution adopted by the Department of Finance and Administration certifying that all such projects have been completed or abandoned, the balance, if any, remaining in the 1998 Advanced Center for Technology Partnerships Fund shall be promptly applied to pay debt service on bonds issued under Sections 24 through 41 of this act, in accordance with the proceedings authorizing the issuance of such bonds.

SECTION 28. The principal of and interest on the bonds authorized under Sections 24 through 41 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 to exceed the limits set forth in Section 75-17-101), 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-five (25) 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 shall be determined by resolution of the commission.

SECTION 29. The bonds authorized by Sections 24 through 41 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 commission shall be affixed thereto, attested by the secretary of the 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 herein to the contrary, such bonds may be issued as provided in the Registered Bond Act of the State of Mississippi.

SECTION 30. All bonds and interest coupons issued under the provisions of Sections 24 through 41 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 24 through 41 of this act, the commission shall not be required to and need not comply with the provisions of the Mississippi Uniform Commercial Code.

SECTION 31. The commission shall act as the issuing agent for the bonds authorized under Sections 24 through 41 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 any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The commission is authorized and empowered to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under Sections 24 through 41 of this act from the proceeds derived from the sale of such bonds. The 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 shall 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 commission.

The commission, when issuing any bonds under the authority of Sections 24 through 41 of this act, may provide that 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 32. The bonds issued under the provisions of Sections 24 through 41 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 33. Upon the issuance and sale of bonds under the provisions of Sections 24 through 41 of this act, the commission shall transfer the proceeds of any such sale or sales to the 1998 Advanced Center for Technology Partnerships Fund created in Section 26 of this act. The proceeds of such bonds shall be disbursed solely upon the order of the Department of Finance and Administration under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds.

SECTION 34. The bonds authorized under Sections 24 through 41 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 which are specified or required by Sections 24 through 41 of this act. Any resolution providing for the issuance of bonds under the provisions of Sections 24 through 41 of this act shall become effective immediately upon its adoption by the commission, and any such resolution may be adopted at any regular or special meeting of the commission by a majority of its members.

SECTION 35. The bonds authorized under the authority of Sections 24 through 41 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 36. Any holder of bonds issued under the provisions of Sections 24 through 41 of this act or of any of the interest coupons pertaining thereto may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights granted under Sections 24 through 41 of this act, or under such resolution, and may enforce and compel performance of all duties required by Sections 24 through 41 of this act to be performed, in order to provide for the payment of bonds and interest thereon.

SECTION 37. All bonds issued under the provisions of Sections 24 through 41 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 which 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 38. Bonds issued under the provisions of Sections 24 through 41 of this act and income therefrom shall be exempt from all taxation in the State of Mississippi.

SECTION 39. The proceeds of the bonds issued under Sections 24 through 41 of this act shall be used solely for the purposes herein provided, including the costs incident to the issuance and sale of such bonds.

SECTION 40. The State Treasurer is authorized, without further process of law, to certify to the Department of Finance and Administration the necessity for warrants, and the Department of Finance and Administration 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 24 through 41 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 thereon, on the due dates thereof.

SECTION 41. The provisions of Sections 24 through 41 of this act shall be deemed to be full and complete authority for the exercise of the powers therein granted, but Sections 24 through 41 of this act shall not be deemed to repeal or to be in derogation of any existing law of this state.

SECTION 42. This act shall take effect and be in force from and after July 1, 1998.