SB3121 (As Introduced) - 1999 Regular Session

MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Hewes, Gollott, Woodfield, Cuevas, Moffatt, Robertson, Dickerson, Lee

Senate Bill 3121

AN ACT TO AUTHORIZE THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT (DECD) TO ACT ON BEHALF OF THE STATE AND TO TAKE ALL STEPS APPROPRIATE OR NECESSARY TO EFFECT THE SITING, DEVELOPMENT AND OPERATION OF MASTER PLANNED COMMUNITIES IN THE STATE; TO GRANT DECD CERTAIN ADDITIONAL POWERS WITH REGARD TO SUCH AUTHORITY; TO AUTHORIZE THE ISSUANCE OF $40,000,000.00 IN STATE GENERAL OBLIGATION BONDS UPON THE SELECTION OF THE STATE AS THE SITE OF A MASTER PLANNED COMMUNITY; TO PROVIDE THAT NOT MORE THAN 50% OF THE BONDS ISSUED PURSUANT TO THIS ACT MAY BE UTILIZED BY DECD FOR GRANTS TO AFFECTED PUBLIC ENTITIES TO DEFRAY THE COST OF FACILITIES RELATED TO THE PROJECT; TO PROVIDE THAT NOT LESS THAN 50% OF THE BONDS ISSUED PURSUANT TO THIS ACT SHALL BE UTILIZED BY DECD AS LOANS TO AFFECTED COUNTIES AND MUNICIPALITIES; TO CREATE THE MASTER PLANNED COMMUNITY CAPITAL IMPROVEMENTS LOAN FUND FOR THE PURPOSE OF MAKING LOANS TO COUNTIES AND MUNICIPALITIES THAT MAY BE UTILIZED BY THEM FOR THE CONSTRUCTION AND ACQUISITION OF ANY FACILITY RELATED TO THE PROJECT OR TO MAKE LOANS TO THE OWNER OR DEVELOPER OF THE PROJECT FOR SUCH PURPOSES; TO REQUIRE COUNTIES TO PLEDGE A PORTION OF THEIR HOMESTEAD EXEMPTION REIMBURSEMENT AS SECURITY FOR LOANS ISSUED TO THEM UNDER THIS ACT; TO REQUIRE MUNICIPALITIES TO PLEDGE A PORTION OF THE SALES TAX REVENUE TO WHICH THEY ARE ENTITLED AS SECURITY FOR LOANS ISSUED TO THEM UNDER THIS ACT; TO GRANT PUBLIC AGENCIES CERTAIN ADDITIONAL POWERS WITH REGARD TO SUCH PROJECTS; TO AMEND SECTIONS 19-9-5, 21-33-303, 27-33-77 AND 27-65-75, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO.

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

SECTION 1. As used in Sections 1 through 10 of this act, the words and phrases used herein shall have meanings as follows, unless the context clearly indicates a different meaning:

(a) "Affected public agency" means a public agency directly affected by the construction of a project or any facility related to the project, and within the legal boundaries of which all or a portion of the project or any facility related to the project is physically located.

(b) "Bonds" means general obligation bonds, interim notes, and other evidences of debt of the State of Mississippi issued pursuant to this act.

(d) "Facility related to the project" means and includes any facility owned or developed by any of the following, as the same may pertain to the project within the project area:

(i) Facilities to provide potable and water supply systems, sewage and waste disposal systems and water, natural gas and electric transmission systems, telecommunications and cable television to the site of the project;

(ii) Airports, airfields and air terminals;

(iii) Rail lines;

(iv) Highways, streets and other roadways;

(v) Public school buildings, classrooms and instructional facilities, including any functionally related facilities;

(vi) Parks, outdoor recreation facilities and athletic facilities;

(vii) Auditoriums, pavilions, campgrounds, art centers, cultural centers, folklore centers and other public facilities; and

(viii) Health care facilities, public or private.

(e) "Person" means any natural person, corporation, association, partnership, receiver, trustee, guardian, executor, administrator, fiduciary, governmental unit, public agency, political subdivision, or any other group acting as a unit, and the plural as well as the singular.

(f) "Project" means a master planned community consisting of an integrated commercial, industrial, recreational, educational, health care and residential development and improvements located on a project site of which not less than fifty percent (50%) of the housing units within such residential development is set aside for and devoted to retirees and which development is the product of a long-range, multi-phase development plan combining a complementary mix of land uses representing unifying characteristics and design elements and providing comprehensive planning and logical and staged implementation and development.

(g) "Project area" means the project site, together with any area or territory within the state lying within five (5) miles of any portion of the project site.

(h) "Project site" means a parcel of land consisting of not less than three thousand five hundred (3,500) acres upon which the project will be located and constructed.

(i) "Public agency" means:

(i) Any department, board, commission, institution or other agency or instrumentality of the state;

(ii) Any city, town, county or school district; and

(iii) Any department, commission, agency or instrumentality of the United States of America.

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

SECTION 2. DECD is empowered to take all steps appropriate or necessary to effect the siting, development and operation of the project within the state. If the state is selected as the site for the project, DECD is hereby designated and empowered to act on behalf of the state and to represent the state in the planning, financing, development, construction and operation of the project or any facility related to the project. DECD may take affirmative steps to coordinate fully all aspects of the submission of a siting proposal for the project and to coordinate fully the development of the project or any facility related to the project with private business, the United States government and other public agencies. All public agencies are encouraged to cooperate to the fullest extent possible to effectuate the duties of DECD.

SECTION 3. DECD, in addition to any and all powers now or hereafter granted to it, is empowered and shall exercise discretion and the use of these powers and authority set forth below depending on the circumstances of the project.

(a) To employ or contract with architects, engineers, attorneys, accountants, construction and financial experts and such other advisors, consultants and agents as may be necessary in its judgment and to fix and pay their compensation.

(b) To make such applications and enter into such contracts for financial assistance as may be appropriate under applicable federal or state law.

(c) To apply for, accept and utilize grants, gifts and other funds or aid from any source for any purpose contemplated by this act, and to comply, subject to the provisions of this act, with the terms and conditions thereof.

(d) To acquire by purchase or lease any public lands and public property, including sixteenth section lands and lieu lands, within the project area, which are necessary for the project or any facility related to the project. Sixteenth section lands or lieu lands acquired under this act shall be deemed to be acquired for the purposes of development thereon and such acquisition will serve a higher public interest in accordance with the purposes of this act.

(e) If DECD identifies any land owned by the state as being necessary for the location or use of the project or any facility related to the project, to recommend to the Legislature the conveyance of such land or any interest therein, as the Legislature deems appropriate.

(f) To make or cause to be made such examinations and surveys as may be necessary to the planning, design, construction and operation of the project or any facility related to the project.

(g) To negotiate the construction or reconstruction of and necessary relocation or rerouting of roads and highways and interchanges, railroad, telephone and telegraph lines and properties, electric power lines, pipelines and related facilities, or to require the anchoring or other protection of any of these, provided due compensation is paid to the owners thereof or agreement is had with such owners regarding the payment of the cost of such relocation, and to acquire by condemnation or otherwise easements or rights-of-way for such relocation or rerouting and to convey the same to the owners of the facilities being relocated or rerouted in connection with the purposes of this act.

(h) To negotiate the necessary relocation of cemeteries and to pay all reasonable costs thereof.

(i) To perform or have performed any and all acts and make all payments necessary to comply with all applicable federal laws, rules or regulations including, but not limited to, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 USC 4601, 4602, 4621 through 4638, and 4651 through 4655) and relocation rules and regulations promulgated by any agency or department of the federal government.

(j) To construct, extend, improve, maintain and reconstruct, or to cause through the owner or developer of the project, to be constructed, extended, improved, maintained and reconstructed, and to use and operate or convey to the owner or developer of the project any and all components of any facility related to the project, within the project area, necessary to the project and to the exercise of such powers, rights and privileges granted DECD.

(k) To incur or defray all or any designated portion of the cost of any component of the project or any facility related to the project acquired or constructed by any public agency.

(l) To acquire, purchase, lease, sell or convey any or all property or any facility related to the project acquired and constructed pursuant to this act upon such terms and conditions as DECD, the affected public agency and the owner or developer of the project may agree and to pay the costs of title search, perfection of title, title insurance and recording fees as may be required. DECD may provide in the instrument conveying such property a provision that such property shall revert to DECD if, as and when the property is declared by the owner or developer as the project to be no longer included.

(m) To enter into contracts with any person or public agency including, but not limited to, contracts authorized by this act, in furtherance of any of the purposes authorized by this act upon such consideration as DECD and such person or public agency may agree. Any such contract may extend over any period of time, notwithstanding any rule of law to the contrary, may be upon such terms as the parties thereto shall agree, and may provide that it shall continue in effect until bonds specified therein, refunding bonds issued in lieu of such bonds, and all other obligations specified therein are paid or terminated. Any such contract shall be binding upon the parties thereto according to its terms. Such contracts may include an agreement to reimburse the owner or developer of the project, its successors and assigns for any assistance provided by the owner or developer of the project in the acquisition of real property for the project or the acquisition and construction of any facility related to the project.

(n) In its discretion to establish and maintain reasonable rates and charges for the use of any facility within the project area owned or operated by DECD, if any, and from time to time to adjust such rates and to impose penalties for failure to pay such rates and charges when due.

(o) To adopt and enforce with the concurrence of the affected public agency all necessary and reasonable rules and regulations to carry out and effectuate the implementation of the project or any facility related to the project and any land use plan or zoning classification adopted for the project area including, but not limited to, rules, regulations and restrictions concerning mining, construction, excavation or any other activity the occurrence of which may endanger the structure or operation of the project or any facility related to the project. Such rules may be enforced within the project area and without the project area as necessary to protect the structure and operation of the project or any facility related to the project. DECD, acting jointly with the affected public agency, is authorized to plan or replan, zone or rezone, and make exceptions to any regulations, whether local or state, which are inconsistent with the design, planning, construction or operation of the project or any facility related to the project.

(p) To plan, design, coordinate and implement measures and programs to mitigate impacts on the natural environment caused by the project or any facility related to the project.

(q) To develop plans for technology transfer activities to ensure private sector conduits for exchange of information, technology and expertise related to the project to generate opportunities for commercial development within the state.

(r) To consult with the State Department of Education and other public agencies for the purpose of improving public schools and curricula within the project area.

(s) To consult with the State Board of Health and other public agencies for the purpose of constructing and improving medical centers, hospitals and public health centers in order to provide appropriate health care facilities within the project area.

(t) To consult with the Office of Minority Business Enterprise Development and other public agencies for the purpose of developing plans for technical assistance and loan programs to maximize the economic impact related to the project for minority business enterprises within the State of Mississippi.

(u) To promulgate rules and regulations necessary to effectuate the purposes of this act.

SECTION 4. (1) Upon notification to DECD by the owner and developer of the project that the state has been selected as the site for the project, the owner and developer of the project has acquired the project site and has delivered a master plan, business plan, feasibility study and such other information and material as may be required by DECD, the State Bond Commission shall have the power and is hereby authorized and directed, upon receipt of a declaration from DECD as hereinafter provided, to borrow money and issue general obligation bonds of the state in one or more series for the purposes herein set out. Upon such notification, DECD may thereafter from time to time declare the necessity for the issuance of general obligation bonds as authorized by this section and forward such declaration to the State Bond Commission, provided that before such notification, DECD may enter into agreements with the United States government, private companies and others that will commit DECD to direct the State Bond Commission to issue bonds for eligible undertakings set out in subsection (4) of this section. The declaration required by this section shall include findings on the part of DECD to the effect that, based upon the investigation of DECD into the merits of and feasibility of the project, the project is feasible and construction of the project is in the public interest.

(2) Upon receipt of any such declaration from DECD, the State Bond Commission shall verify that the state has been selected as the site of the project and that the owner or developer has acquired the project site and shall act as the issuing agent for the series of bonds directed to be issued in such declaration pursuant to authority granted in this section.

(3) Bonds issued under the authority of this section shall not in the aggregate exceed Forty Million Dollars ($40,000,000.00) of which not more than fifty percent (50%) may be used as grants to the affected public agency to defray the cost of facilities related to the project and not less than fifty percent (50%) shall be used as loans pursuant to Section 5 of this act. No bonds may be issued under this section after July 1, 2005.

All loans made by DECD pursuant to the act shall be made in compliance with Section 5 of this act.

(4) The proceeds from the sale of the bonds issued under this section may be applied for the purposes of:

(a) Making grants or loans to defray all or any designated portion of the costs incurred with respect to acquisition, planning, design, construction, installation, rehabilitation, improvement and relocation of any facility related to the project and with respect to state- and/or public agency-owned property, operation and maintenance of the project and any facility related to the project located within the project area, including costs of design and engineering, all costs incurred to provide land, easements and rights-of-way, relocation costs with respect to the project or any facility related to the project located within the project area; and costs associated with mitigation of environmental impacts;

(b) Providing for the payment of interest on the bonds;

(d) Paying underwriters' discount, original issue discount, accountants' fees, engineers' fees, attorneys' fees, rating agency fees and other fees and expenses in connection with the issuance of the bonds.

Such bonds shall be issued from time to time and in such principal amounts as shall be designated by DECD, not to exceed in the aggregate principal amounts the amount authorized in subsection (3) of this section. Proceeds from the sale of the bonds issued under this section may be invested, subject to federal limitations, pending their use, in such securities as may be specified in the resolution authorizing the issuance of the bonds or the trust indenture securing them, and the earning on such investment applied as provided in such resolution or trust indenture.

(5) The principal of and the interest on the bonds shall be payable in the manner hereinafter set forth. The bonds shall bear such date or dates; be in such denomination or denominations; bear interest at such rate or rates; be payable at such place or places within or without the state; mature at such time or times; be issued as taxable or tax-exempt obligations; be redeemable before maturity at such time or times and upon such terms, with or without premium; bear such registration privileges; and be substantially in such form; all as shall be determined by resolution of the State Bond Commission except that such bonds shall mature or otherwise be retired in annual installments beginning not more than five (5) years from the date thereof and extending not more than twenty-five (25) years from the date thereof. The bonds 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 imprinted on or affixed thereto, attested by the manual or facsimile signature of the Secretary of the State Bond Commission. Whenever any such bonds have been signed by the officials herein 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 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 the delivery of the same to the purchaser, or had been in office on the date such bonds may bear.

(6) All bonds issued under the provisions of this section shall be and are hereby declared to have all the qualities and incidents of negotiable instruments under the provisions of the Uniform Commercial Code and in exercising the powers granted by this act, the State Bond Commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.

(7) The State Bond Commission shall sell the 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 the bonds to the purchaser. The bonds shall bear interest at such rate or rates not exceeding the limits set forth in Section 75-17-101 as shall be fixed by the State Bond Commission. All interest accruing on such bonds so issued shall be payable semiannually or annually; provided that the first interest payment may be for any period of not more than one (1) year.

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

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

(8) State bonds issued under the provisions of this section shall be the general obligations of the state and backed by the full faith and credit of the state. The Legislature shall appropriate annually an amount sufficient to pay the principal of and the interest on such bonds as they become due. All bonds shall contain recitals on their faces substantially covering the foregoing provisions of this section.

(9) The State Treasurer is authorized 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 payable out of any funds appropriated by the Legislature under this section for such purpose, in such amounts as may be necessary to pay when due the principal of and interest on all bonds issued under the provisions of this section. 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.

(10) The bonds 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 this act. Any resolution providing for the issuance of general obligation bonds under the provisions of this section 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.

(11) In anticipation of the issuance of bonds hereunder, the State Bond Commission is authorized to negotiate and enter into any purchase, loan, credit or other agreement with any bank, trust company or other lending institution or to issue and sell interim notes for the purpose of making any payments authorized under this section. All borrowings made under this provision shall be evidenced by notes of the state which shall be issued from time to time, for such amounts not exceeding the amount of bonds authorized herein, in such form and in such denomination and subject to such terms and conditions of sale and issuance, prepayment or redemption and maturity, rate or rates of interest not to exceed the maximum rate authorized herein for bonds, and time of payment of interest as the State Bond Commission shall agree to in such agreement. Such notes shall constitute general obligations of the state and shall be backed by the full faith and credit of the state. Such notes may also be issued for the purpose of refunding previously issued notes; except that no notes shall mature more than three (3) years following the date of issuance of the first note hereunder and, provided further, that all outstanding notes shall be retired from the proceeds of the first issuance of bonds hereunder. The State Bond Commission is authorized to provide for the compensation of any purchaser of the notes by payment of a fixed fee or commission and for all other costs and expenses of issuance and service, including paying agent costs. Such costs and expenses may be paid from the proceeds of the notes.

(12) The bonds and interim notes authorized under the authority of this section may be validated in the First Judicial District of the Chancery Court of Hinds County, Mississippi, in the manner and with the force and effect provided now or hereafter by Chapter 13, Title 31, Mississippi Code of 1972, for the validation of county, municipal, school district and other bonds. The necessary papers for such validation proceedings shall be transmitted to the State Bond Attorney, and the required notice shall be published in a newspaper published in the City of Jackson, Mississippi.

(13) Any bonds or interim notes issued under the provisions of this act, a transaction relating to the sale or securing of such bonds or interim notes, their transfer and the income therefrom shall at all times be free from taxation by the state or any local unit or political subdivision or other instrumentality of the state, excepting inheritance and gift taxes.

(14) All bonds issued under this act shall be legal investments for trustees, other fiduciaries, 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 the state and all municipalities and other political subdivisions thereof for the purpose of securing the deposit of public funds.

(15) The Attorney General of the State of Mississippi shall represent the State Bond Commission in issuing, selling and validating bonds herein provided for, and the bond commission is hereby authorized and empowered to expend from the proceeds derived from the sale of the bonds authorized hereunder all necessary administrative, legal and other expenses incidental and related to the issuance of bonds authorized under this act.

(16) There is hereby created a special fund in the State Treasury to be known as the Mississippi Master Planned Community Fund wherein shall be deposited the proceeds of the bonds issued under this act and all monies received by DECD to carry out the purposes of this act. Expenditures authorized herein shall be paid by the State Treasurer upon warrants drawn from the fund, and the Department of Finance and Administration shall issue warrants upon requisitions signed by the Director of DECD.

(17) (a) There is hereby created the Mississippi Master Planned Community Sinking Fund from which the principal of and interest on such bonds shall be paid by appropriation and from the repayment of loans authorized by Section 4(3) of this act. All monies paid into the sinking fund not used to pay accruing bonds and interest shall be invested by the State Treasurer in such securities as are provided by law for the investment of the sinking funds of the state.

(b) In the event that all or any part of the bonds and notes are purchased, they shall be canceled and returned to the loan and transfer agent as canceled and paid bonds and notes and thereafter all payments of interest thereon shall cease and the canceled bonds, notes and coupons, together with any other canceled bonds, notes and coupons, shall be destroyed as promptly as possible after cancellation but not later than two (2) years after cancellation. A certificate evidencing the destruction of the canceled bonds, notes and coupons shall be provided by the loan and transfer agent to the seller.

(c) The State Treasurer shall determine and report to the Department of Finance and Administration and Legislative Budget Office by September 1 of each year the amount of money necessary for the payment of the principal of and interest on outstanding obligations for the following fiscal year and the times and amounts of the payments. It shall be the duty of the Governor to include in every executive budget submitted to the Legislature full information relating to the issuance of bonds and notes under the provisions of this act and the status of the sinking fund for the payment of the principal of and interest on the bonds and notes.

SECTION 5. (1) DECD shall utilize money in the Mississippi Master Planned Community Fund created in Section 4 of this act that is not utilized for grants for the purpose of making loans to counties and municipalities that may be utilized by such counties and municipalities for the construction and acquisition of any facility related to the project or to make loans to the owner or developer of the project for such purposes.

(2) (a) There is created a special fund in the State Treasury to be designated as the Master Planned Community Capital Improvements Loan Fund, into which DECD shall deposit money from the Master Planned Community Fund that is not utilized, or intended to be utilized, for grants pursuant to this act. The fund shall be maintained for the purpose of making loans to affected counties or municipalities to defray the cost of facilities related to the project or to make loans to owners and developers of the project to assist them in defraying the cost of facilities related to the project. 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 by this act.

(b) The Master Planned Community Capital Improvements Loan Fund shall be divided into the Taxable Capital Improvements Loan Subaccount and the Nontaxable Capital Improvements Loan Subaccount. Funds allocated to the Nontaxable Capital Improvements Loan Subaccount shall be utilized to provide loans for facilities related to the project that would qualify for the issuance of bonds whose interest is exempt from income taxation under the provisions of the Internal Revenue Code of 1986. Funds allocated to the Taxable Capital Improvements Loan Subaccount shall be utilized to provide loans for any eligible facilities related to the project that would not qualify for the issuance of bonds whose interest is exempt from income taxation under the provisions of the Internal Revenue Code of 1986.

(2) Any affected county or municipality may apply to DECD for a loan under the capital improvements loan program established under this section.

(3) (a) DECD shall establish a loan program by which loans, at the rate of interest provided for in paragraph (b) of this subsection, may be made available to affected counties or municipalities to assist owners or developers of a project to defray the cost of facilities related to the project. Loans may be made to counties or municipalities as set forth in a loan agreement in amounts not to exceed one hundred percent (100%) of eligible project costs of facilities related to the project as established by DECD. DECD may require county or municipal participation or funding from other sources, or otherwise limit the percentage of costs covered by loans from the fund. DECD may establish a maximum amount for any loan in order to provide for broad and equitable participation in the program.

(b) The rate of interest on loans made from the Master Planned Community Capital Improvements Loan Fund for construction of facilities related to the project shall be made at such rates of interest as shall be determined by DECD but in no event less than three percent (3%) per annum.

(4) A county that receives a loan from the 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. Additionally, all loans shall be secured by a letter of credit, other credit enhancement facility, guaranty, lien and/or mortgage as may be determined by and acceptable to DECD. Each loan agreement shall provide for approximately equal annual payments of principal and interest over the term of the loan. The loan agreement shall provide for the repayment of all funds received within not more than twenty (20) years from the date of project completion.

(5) Evidences of indebtedness and loans which are issued or made pursuant to this act 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 6. (1) Any owner or developer of a project desiring assistance from DECD under this act shall submit to DECD and the public agency a letter of intent to locate a project in the state. The letter of intent shall, at a minimum, include or have as an attachment:

(a) A summary of the economic impact of the project on the state and the public agency.

(b) A detailed itemization of facilities related to the project required to be constructed, along with the estimated cost of each.

(c) A statement that construction of identified facilities related to the project are necessary for the efficient and cost-effective operation of the project, together with supporting financial and engineering documentation.

(d) A master plan, business plan and feasibility study in form and content acceptable to DECD.

(e) Demonstration that the owner or developer of a project is financially sound and capable of fulfilling its commitments made in connection with the project.

(f) Any commitment to pay rental on, or to make loan repayments related to the facilities related to the project constructed with funds loaned to a county or municipality under this act along with a description of the proposed security for such loans.

(g) Such other information as may be required by DECD.

(2) Upon receipt of the letter of intent from an owner or developer of a project, an affected public agency may apply to the department for a grant or an affected county or municipality may apply to the department for a loan. The application from the affected public agency shall include but not be limited to:

(a) A statement of the purpose of the proposed loan or grant, including a list of eligible improvements and the cost of each.

(b) A statement showing the sources of funding for the project, including the owner or developer of the project or governmental unit's investment in the project and any public and other private sources of funding.

(c) A certified copy of the signed commitment from the owner or developer of a project that it has acquired a qualified project site and that it will construct the project.

(d) Evidence that the project will be expeditiously carried out and completed as planned.

(e) A demonstration that insufficient local capital improvement funds at reasonable rates and terms are available within the necessary time to provide the needed improvement. This includes local funds available through issuance of bonds or other means, state funds available through existing programs, and available federal program funds such as community development block grant funds, urban development action grant funds, and economic development administration funds.

(f) A demonstration that insufficient private funds are available at reasonable rates and terms within the necessary time to fund eligible improvements on property owned by the owner or developer of the project.

(3) In considering grant and loan applications the department shall take into consideration the number of net new full-time equivalent jobs that will be provided and the amount of additional state and local tax revenue to be directly generated by the construction and development of the project.

(4) A public agency may apply to the department for a grant under the terms and provisions of this act, and the department may award grants to a public agency subject to limitations contained in this act.

(5) (a) A public agency is authorized to negotiate a contract for the acquisition, construction and erection of a facility related to the project where a public agency finds that, because of the particular nature of a project or any portion thereof, it would be in the best public interest of the public agency to negotiate and DECD approves such finding in writing.

(b) Contracts by an owner or developer of a project for the acquisition, construction or erection of a facility related to the project which receives assistance under this act shall be effected in the manner prescribed by law for public contracts, unless DECD makes a written finding that, because of special circumstances with respect to the facility related to the project or any portion thereof, it would better serve the public interest or more effectively achieve the purposes of this act to enter into such contracts based on negotiation.

(6) A public agency is authorized upon such terms and conditions as the public agency may deem advisable, provided such terms and conditions shall not be in conflict with the provisions of this act, to:

(a) Acquire, whether by construction, purchase, gift or lease, all or any portion of a facility related to a project hereunder;

(b) Lease or sell to any person all or any portion of a facility related to a project hereunder; and

(7) All agreements between a public agency and an owner or developer of a project related directly or indirectly to all or any portion of a facility related to the project to be funded in whole or in part under this act are subject to approval by DECD.

SECTION 7. For the purpose of aiding in the planning, design, undertaking and carrying out of the project or any facility related to the project, any public agency is authorized and empowered upon such terms, with or without consideration, as it may determine:

(a) To enter into agreements, which may extend over any period of time, with DECD and/or the owner or developer of the project respecting action to be taken by such public agency with respect to the acquisition, planning, construction, improvement, operation, maintenance or funding of the project or any facility related to the project, and which agreements may include:

(i) The appropriation or payment of funds to DECD or to a trustee in amounts which shall be sufficient to enable DECD to defray any designated portion or percentage of the expenses of administering, planning, designing, constructing, acquiring, improving, operating and maintaining the project or any facility related to the project;

(ii) The appropriation or payment of funds to DECD or to a trustee to pay interest and principal (whether at maturity or upon sinking fund redemption) on bonds issued pursuant to this act and to fund reserves for debt service, for operation and maintenance and for renewals and replacements, and to fulfill requirements of any covenant with respect to debt service contained in any resolution, trust indenture or other security agreement relating to the bonds issued pursuant to this act; and

(iii) The furnishing of other assistance in connection with the project or facility related to the project;

(b) To dedicate, sell, donate, convey or lease any property or interest in property to DECD or the owner or developer of the project or grant easements, licenses or other rights or privileges therein to DECD or the owner or developer of the project;

(c) To incur the expense of any public improvements made or to be made by such public agency in exercising the powers granted in this section;

(d) To lend, grant or contribute funds to DECD;

(e) To cause public buildings and public facilities, including roadways and the rights-of-way and easements therefor, parks, playgrounds, recreational areas, community meeting facilities, water, sewer or drainage facilities, or any other works which it is otherwise empowered to undertake, to be furnished to or with respect to the project or any facility related to the project;

(f) To furnish, dedicate, close, vacate, pave, install, upgrade or improve highways, streets, roads, sidewalks, airports, railroads or ports;

(g) To plan or replan, zone or rezone any parcel of land within the public agency or make exceptions from land use, building and zoning regulations; and

(h) To cause administrative and other services to be furnished to DECD and/or the owner or developer of the project, including services pertaining to the acquisition of real property and the furnishing of relocation assistance.

Any contract between a public agency entered into with DECD and/or the owner or developer of the project pursuant to any of the powers granted by this act shall be binding upon the public agency according to its terms, and such public agency shall have the power to enter into such contracts as in the discretion of the governing authorities thereof would be to the best interest of the people of such public agency. Such contracts may include, within the discretion of such governing authorities as defined under Section 1(i)(ii) of this act, a pledge of the full faith and credit of such public agency for the performance thereof. If at any time title to or possession of the project or any such facility related to the project is held by any public body or governmental agency other than DECD, including any agency or instrumentality of the United States of America, the agreements referred to in this section shall inure to the benefit of and may be enforced by such public body or governmental agency.

SECTION 8. DECD shall not undertake to develop any project or facility related to the project within a county, municipality and/or school district without the concurrence of the affected county, municipality and/or school district.

SECTION 9. (1) (a) DECD shall set a goal to expend not less than ten percent (10%) of the total amounts expended by DECD on planning, construction, training, research, development, testing, evaluation, personal services, procurement, and for the operation and maintenance of any facilities or activities controlled by DECD, with minority small business concerns owned and controlled by socially and economically disadvantaged individuals. For the purpose of determining the total amounts expended with such minority small business concerns, credit shall be given for that portion of any prime contract entered into with DECD which inures to the benefit of such minority small business concern as a subcontractor thereunder.

(b) For the purposes of this section, the term "socially and economically disadvantaged individuals" shall have the meaning ascribed to such term under Section 8(d) of the Small Business Act (15 U.S.C.S., Section 637(d)) and relevant subcontracting regulations promulgated pursuant thereto.

(i) Which is at least fifty-one percent (51%) owned by one or more socially and economically disadvantaged individuals; or, in the case of any publicly owned businesses, at least fifty-one percent (51%) of the stock of which is owned by one or more socially and economically disadvantaged individuals; and

(ii) Whose management and daily business operations are controlled by one or more of such individuals.

(d) For the purpose of this section, the term "small business concern" shall mean "small business" as the latter term is defined in Section 57-10-155, Mississippi Code of 1972.

(2) In order to comply in a timely manner with its minority small business participation mandate, DECD shall set an annual goal to expend not less than ten percent (10%) of its aggregate yearly expenditures with minority small business concerns.

(3) DECD shall:

(a) Monitor the minority small business concerns assistance programs prescribed in this section.

(b) Review and determine the business capabilities of minority small business concerns.

(c) Establish standards for a certification procedure for minority small business concerns seeking to do business with DECD.

(d) Provide technical assistance services to minority small business concerns. Such technical assistance shall include, but not be limited to:

(i) Research;

(ii) Assistance in obtaining bonds;

(iii) Bid preparation;

(iv) Certification of business concerns;

(v) Marketing assistance; and

(vi) Joint venture and capital development.

(e) Develop alternative bidding and contracting procedures for minority small business concerns in conjunction with the Department of Finance and Administration.

(f) Utilize such alternative bidding and contracting procedures in lieu of those prescribed in Title 31, Chapters 5 and 7, Mississippi Code of 1972, when contracting with minority small business concerns that have qualified to bid for contracts and have satisfied any other disclosure provisions required by DECD.

(g) Be authorized to accept in lieu of any bond otherwise required from minority small business concerns or small business concerns contracting with DECD, in an amount equal to one hundred percent (100%) of the total cost of the contracted project, any combination of the following:

(i) Cash;

(ii) Certificates of deposit from any bank or banking corporation insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation;

(iii) Federal treasury bills;

(iv) Letters of credit issued by a bank as that term is defined in Section 81-3-1, Mississippi Code of 1972; or

(v) Surety bonds issued by an insurance company licensed and qualified to do business in the State of Mississippi.

(h) Be authorized, in its discretion, to waive any bond required on any project which does not exceed a total dollar value of One Hundred Thousand Dollars ($100,000.00). A retainage shall be held by DECD in an amount not to exceed fifteen percent (15%) from each draw according to American Institute of Architects (AIA) standards. Upon satisfactory completion of such project, ten percent (10%) of the total cost of the contract shall be held in an interest-bearing escrow account for one (1) year. Funds deposited in such escrow account shall stand as a surety for any defects in workmanship or materials detected within twelve (12) months of completion. The balance of all monies so escrowed including accrued interest shall be paid to the contractor at the end of such twelve-month period.

(i) Be empowered to prove an incentive of bimonthly payments to any prime contractors utilizing minority small business concerns as subcontractors on twenty-five percent (25%) or more of the total dollar value of any single project or contract.

(j) Submit an annual report on its progress concerning minority small business contracts to the Legislature by January 30 of each year.

(k) Take all steps necessary to implement the provisions of this section.

SECTION 10. The provisions of this act are cumulative of other statutes now or hereafter enacted relating to DECD and DECD may exercise all presently held powers in the furtherance of this act. If any section, paragraph, sentence, clause, phrase or any part of the provisions of this act is declared to be unconstitutional or void, or for any reason is declared to be invalid or of no effect, the remaining sections, paragraphs, sentences, clauses and phrases shall in no manner be affected thereby but shall remain in full force and effect.

SECTION 11. Section 19-9-5, Mississippi Code of 1972, is amended as follows:

19-9-5. No county shall hereafter issue bonds secured by a pledge of its full faith and credit for the purposes authorized by law in an amount which, when added to the then outstanding bonds of such county, shall exceed either (a) fifteen percent (15%) of the assessed value of the taxable property within such county according to the last completed assessment for taxation, or (b) fifteen percent (15%) of the assessment upon which taxes were levied for its fiscal year ending September 30, 1984, whichever is greater.

However, any county in the state which shall have experienced washed-out or collapsed bridges on the public roads of the county for any cause or reason may hereafter issue bonds for bridge purposes as now authorized by law in an amount which, when added to the then outstanding general obligation bonds of such county, shall not exceed either (a) twenty percent (20%) of the assessed value of the taxable property within such county according to the last completed assessment for taxation, or (b) fifteen percent (15%) of the assessment upon which taxes were levied for its fiscal year ending September 30, 1984, whichever is greater.

Provided further, in computing such indebtedness, there may be deducted all bonds or other evidences of indebtedness heretofore or hereafter issued, for the construction of hospitals, ports or other capital improvements which are payable primarily from the net revenue to be generated from such hospital, port or other capital improvement, which revenue shall be pledged to the retirement of such bonds or other evidences of indebtedness, together with the full faith and credit of the county. However, in no case shall any county contract any indebtedness payable in whole or in part from proceeds of ad valorem taxes which, when added to all of the outstanding general obligation indebtedness, both bonded and floating, shall exceed either (a) twenty percent (20%) of the assessed value of all taxable property within such county according to the last completed assessment for taxation, or (b) fifteen percent (15%) of the assessment upon which taxes were levied for its fiscal year ending September 30, 1984, whichever is greater. Nothing herein contained shall be construed to apply to contract obligations in any form heretofore or hereafter incurred by any county which are subject to annual appropriations therefor, * * * to bonds heretofore or hereafter issued by any county for school purposes, or to bonds issued by any county under the provisions of Sections 57-1-1 through 57-1-51, or to any indebtedness incurred pursuant to Section 5 of Senate Bill No. ____, 1999 Regular Session.

SECTION 12. Section 21-33-303, Mississippi Code of 1972, is amended as follows:

21-33-303. No municipality shall hereafter issue bonds secured by a pledge of its full faith and credit for the purposes authorized by law in an amount which, when added to the then outstanding bonded indebtedness of such municipality, shall exceed either (a) fifteen percent (15%) of the assessed value of the taxable property within such municipality, according to the last completed assessment for taxation, or (b) ten percent (10%) of the assessment upon which taxes were levied for its fiscal year ending September 30, 1984, whichever is greater. In computing such indebtedness, there may be deducted all bonds or other evidences of indebtedness, heretofore or hereafter issued, for school, water, sewerage systems, gas, and light and power purposes and for the construction of special improvements primarily chargeable to the property benefited, or for the purpose of paying the municipality's proportion of any betterment program, a portion of which is primarily chargeable to the property benefited. However, in no case shall any municipality contract any indebtedness which, when added to all of the outstanding general obligation indebtedness, both bonded and floating, shall exceed either (a) twenty percent (20%) of the assessed value of all taxable property within such municipality according to the last completed assessment for taxation or (b) fifteen percent (15%) of the assessment upon which taxes were levied for its fiscal year ending September 30, 1984, whichever is greater. Nothing herein contained shall be construed to apply to contract obligations in any form heretofore or hereafter incurred by any municipality which are subject to annual appropriations therefor, or to bonds heretofore issued by any municipality for school purposes, or to contract obligations in any form heretofore or hereafter incurred by any municipality which are payable exclusively from the revenues of any municipally-owned utility, or to bonds issued by any municipality under the provisions of Sections 57-1-1 through 57-1-51, or to any special assessment improvement bonds issued by any municipality under the provisions of Sections 21-41-1 through 21-41-53, or to any indebtedness incurred pursuant to Section 5 of Senate Bill No. ____, 1999 Regular Session.

All bonds issued prior to July 1, 1990, pursuant to this chapter by any municipality for the purpose of the constructing, replacing, renovating or improving wastewater collection and treatment facilities in order to comply with an administrative order of the Mississippi Department of Natural Resources issued pursuant to the Federal Water Pollution Control Act and amendments thereto, are hereby exempt from the limitation imposed by this section if the governing body of the municipality adopts an order, resolution or ordinance to the effect that the rates paid by the users of such facilities shall be increased to the extent necessary to provide sufficient funds for the payment of the principal of and interest on such bonds as each respectively becomes due and payable as well as the necessary expenses in connection with the operation and maintenance of such facilities.

SECTION 13. Section 27-33-77, Mississippi Code of 1972, is amended as follows:

27-33-77. Beginning with the 1985 supplemental roll, and for each succeeding year's roll thereafter, the amount of tax loss to be reimbursed because of exemptions provided for in this article shall be Fifty Dollars ($50.00) each for county taxes exempted and school taxes exempted for a total of One Hundred Dollars ($100.00) per applicant qualifying for homestead exemption under this article.

The reimbursement received by the county shall be distributed by the county treasurer to the general fund. Such reimbursement may be pledged as security for any loan received by the county under Section 5 of Senate Bill No. ____ 1999 Regular Session, or received by the county for the purpose of capital improvements as authorized under Section 57-1-303, or for the purpose of loans as authorized under Section 57-44-7, or for the purpose of water systems improvements as authorized under Section 41-3-16.

Provided further, that tax losses sustained by municipalities because of exemptions granted to homeowners described in subsection (2) of Section 27-33-67 shall be reimbursed up to the amount of the actual exemption allowed, not to exceed Two Hundred Dollars ($200.00) per qualified applicant.

SECTION 14. Section 27-65-75, Mississippi Code of 1972, is amended as follows:

[Until July 1, 2002, this section reads as follows:]

27-65-75. On or before the fifteenth day of each month, the revenue collected under the provisions of this chapter during the preceding month shall be paid and distributed as follows:

(1) On or before August 15, 1992, and each succeeding month thereafter through July 15, 1993, eighteen percent (18%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to such municipality and paid to such municipal corporation. On or before August 15, 1993, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to such municipality and paid to such municipal corporation.

A municipal corporation, for the purpose of distributing the tax under this subsection, shall mean and include all incorporated cities, towns and villages.

Monies allocated for distribution and credited to a municipal corporation under this subsection may be pledged as security for any loan received by the municipal corporation for the purpose of capital improvements as authorized under Section 57-1-303, or loans as authorized under Section 57-44-7, or water systems improvements as authorized under Section 41-3-16, or loans as authorized under Section 5 of Senate Bill No. ____, 1999 Regular Session.

In any county having a county seat which is not an incorporated municipality, the distribution provided hereunder shall be made as though the county seat was an incorporated municipality; however, the distribution to such municipality shall be paid to the county treasury wherein the municipality is located and such funds shall be used for road, bridge and street construction or maintenance therein.

(2) On or before September 15, 1987, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month One Million One Hundred Twenty-five Thousand Dollars ($1,125,000.00) shall be allocated for distribution to municipal corporations as defined under subsection (1) of this section in the proportion that the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each such municipality during the preceding fiscal year bears to the total gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in municipalities statewide during the preceding fiscal year. The State Tax Commission shall require all distributors of gasoline and diesel fuel to report to the commission monthly the total number of gallons of gasoline and diesel fuel sold by them to consumers and retailers in each municipality during the preceding month. The State Tax Commission shall have the authority to promulgate such rules and regulations as is necessary to determine the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each municipality. In determining the percentage allocation of funds under this subsection for the fiscal year beginning July 1, 1987, and ending June 30, 1988, the State Tax Commission may consider gallons of gasoline and diesel fuel sold for a period of less than one (1) fiscal year. For the purposes of this subsection, the term "fiscal year" means the fiscal year beginning July 1 of a year.

(3) On or before September 15, 1987, and on or before the fifteenth day of each succeeding month, until the date specified in Section 65-39-35, the proceeds derived from contractors' taxes levied under Section 27-65-21 on contracts for the construction or reconstruction of highways designated under the Four-Lane Highway Program created under Section 65-3-97 shall be deposited into the State Treasury to the credit of the State Highway Fund to be used to fund such Four-Lane Highway Program. The Mississippi Department of Transportation shall provide to the State Tax Commission such information as is necessary to determine the amount of proceeds to be distributed under this subsection.

(4) On or before August 15, 1994, and on or before the fifteenth day of each succeeding month, from the proceeds of gasoline, diesel fuel or kerosene taxes as provided in Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) shall be deposited in the State Treasury to the credit of a special fund designated as the "State Aid Road Fund," created by Section 65-9-17. Such funds shall be pledged to pay the principal of and interest on state aid road bonds heretofore issued under Sections 19-9-51 through 19-9-77, in lieu of and in substitution for the funds heretofore allocated to counties under this section. Such funds may not be pledged for the payment of any state aid road bonds issued after April 1, 1981; however, this prohibition against the pledging of any such funds for the payment of bonds shall not apply to any bonds for which intent to issue such bonds has been published, for the first time, as provided by law prior to March 29, 1981. From the amount of taxes paid into the special fund pursuant to this subsection and subsection (9) of this section, there shall be first deducted and paid the amount necessary to pay the expenses of the Office of State Aid Road Construction, as authorized by the Legislature for all other general and special fund agencies. The remainder of the fund shall be allocated monthly to the several counties in accordance with the following formula:

(a) One-third (1/3) shall be allocated to all counties in equal shares;

(b) One-third (1/3) shall be allocated to counties based on the proportion that the total number of rural road miles in a county bears to the total number of rural road miles in all counties of the state; and

(c) One-third (1/3) shall be allocated to counties based on the proportion that the rural population of the county bears to the total rural population in all counties of the state, according to the latest federal decennial census.

For the purposes of this subsection, the term "gasoline, diesel fuel or kerosene taxes" means such taxes as defined in paragraph (f) of Section 27-5-101.

The amount of funds allocated to any county under this subsection for any fiscal year after Fiscal Year 1994 shall not be less than the amount allocated to such county for Fiscal Year 1994. Monies allocated to a county from the State Aid Road Fund for Fiscal Year 1995 or any fiscal year thereafter that exceed the amount of funds allocated to that county from the State Aid Road Fund for Fiscal Year 1994, first must be expended by the county for replacement or rehabilitation of bridges on the state aid road system that have a sufficiency rating of less than twenty-five (25), according to National Bridge Inspection standards before such monies may be approved for expenditure by the State Aid Road Engineer on other projects that qualify for the use of state aid road funds.

Any reference in the general laws of this state or the Mississippi Code of 1972 to Section 27-5-105 shall mean and be construed to refer and apply to subsection (4) of Section 27-65-75.

(5) One Million Six Hundred Sixty-six Thousand Six Hundred Sixty-six Dollars ($1,666,666.00) each month shall be paid into the special fund known as the "State Public School Building Fund" created and existing under the provisions of Sections 37-47-1 through 37-47-67. Such payments into said fund are to be made on the last day of each succeeding month hereafter.

(6) An amount each month beginning August 15, 1983, through November 15, 1986, as specified in Section 6 of Chapter 542, Laws of 1983, shall be paid into the special fund known as the Correctional Facilities Construction Fund created in Section 6 of Chapter 542, Laws of 1983.

(8) On or before August 15, 1992, and each succeeding month thereafter, nine and seventy-three one-thousandths percent (9.073%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2) shall be deposited into the Education Enhancement Fund created pursuant to Section 37-61-33.

(9) On or before August 15, 1994, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, Two Hundred Fifty Thousand Dollars ($250,000.00) shall be paid into the State Aid Road Fund.

(10) On or before August 15, 1994, and each succeeding month thereafter through August 15, 1995, from the revenue collected under this chapter during the preceding month, Two Million Dollars ($2,000,000.00) shall be deposited into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(11) Notwithstanding any other provision of this section to the contrary, on or before February 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(2) and the corresponding levy in Section 27-65-23 on the rental or lease of private carriers of passengers and light carriers of property as defined in Section 27-51-101 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(12) Notwithstanding any other provision of this section to the contrary, on or before August 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1) on retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101 and the corresponding levy in Section 27-65-23 on the rental or lease of these vehicles, shall be deposited, after diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(13) On or before July 15, 1994, and on or before the fifteenth day of each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-22, which is derived from activities held on the Mississippi state fairgrounds complex, shall be paid into a special fund hereby created in the State Treasury and shall be expended pursuant to legislative appropriations solely to defray the costs of repairs and renovation at such Trade Mart and Coliseum.

(14) On or before August 15, 1998, and each succeeding month thereafter through July 15, 2005, that portion of the avails of the tax imposed in Section 27-65-23 which is derived from sales by cotton compresses or cotton warehouses and which would otherwise be paid into the General Fund, shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created pursuant to Section 69-37-39.

(15) The remainder of the amounts collected under the provisions of this chapter shall be paid into the State Treasury to the credit of the General Fund.

(16) It shall be the duty of the municipal officials of any municipality which expands its limits, or of any community which incorporates as a municipality, to notify the commissioner of such action thirty (30) days before the effective date. Failure to so notify the commissioner shall cause such municipality to forfeit the revenue which it would have been entitled to receive during this period of time when the commissioner had no knowledge of the action. If any funds have been erroneously disbursed to any municipality or any overpayment of tax is recovered by the taxpayer, the commissioner may make correction and adjust the error or overpayment with such municipality by withholding the necessary funds from any subsequent payment to be made to the municipality.

[From and after July 1, 2002, this section reads as follows:]

27-65-75. On or before the fifteenth day of each month, the revenue collected under the provisions of this chapter during the preceding month shall be paid and distributed as follows:

A municipal corporation, for the purpose of distributing the tax under this subsection, shall mean and include all incorporated cities, towns and villages.

(a) One-third (1/3) shall be allocated to all counties in equal shares;

For the purposes of this subsection, the term "gasoline, diesel fuel or kerosene taxes" means such taxes as defined in paragraph (f) of Section 27-5-101.

Any reference in the general laws of this state or the Mississippi Code of 1972 to Section 27-5-105 shall mean and be construed to refer and apply to subsection (4) of Section 27-65-75.

(7) On or before August 15, 1992, and each succeeding month thereafter, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), not to exceed the Fiscal Year 1997 appropriated level shall be deposited by the commission into the School Ad Valorem Tax Reduction Fund created pursuant to Section 37-61-35, with the balance to be transferred to the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and not subject to the percentage set asides set forth in Section 37-61-33.

(12) Notwithstanding any other provision of this section to the contrary, on or before August 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1) on retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101, shall be deposited, after diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(15) The remainder of the amounts collected under the provisions of this chapter shall be paid into the State Treasury to the credit of the General Fund.

SECTION 15. This act shall take effect and be in force from and after its passage and shall stand repealed from and after July 1, 2005, unless prior to such date the Executive Director of the Department of Economic and Community Development files an affidavit with the Secretary of State certifying that the State of Mississippi has been selected as the site of a project.