2004 Regular Session
To: Ways and Means
By: Representative Brown, Ishee, Mayo
AN ACT TO CREATE A NEW CODE SECTION TO PROHIBIT THE LEGISLATURE FROM AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS, IN ANY FISCAL YEAR, IN EXCESS OF FIVE PERCENT OF THE TAX REVENUE COLLECTED BY THE STATE TAX COMMISSION AND DEPOSITED IN THE GENERAL FUND IN THE PRECEDING FISCAL YEAR; TO AUTHORIZE SUCH BONDED INDEBTEDNESS TO BE EXCEEDED UNDER CERTAIN CIRCUMSTANCES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) As used in this section:
(a) "General obligation bonds" means bonds of the State of Mississippi, to the repayment of which, both as to principal and interest, the full faith, credit and taxing power of the State of Mississippi are irrevocably pledged until the principal and interest is paid in full.
(b) "State" means the State of Mississippi and any of its direct agencies, but shall not include political subdivisions and other local districts.
(2) The Legislature shall not authorize the issuance of general obligation bonds in any fiscal year in an amount that will cause the state to incur a general obligation bonded indebtedness that is in excess of five percent (5%) of the tax revenue collected by the State Tax Commission and deposited into the General Fund in the preceding fiscal year.
(3) In case of an emergency, the bonded indebtedness limitation provided for in this section may be exceeded upon adoption of a concurrent resolution by an affirmative vote of two-thirds (2/3) of the elected membership of each house of the Legislature authorizing the issuance of general obligation bonds in excess of the limitation provided for in this section. Nothing in this subsection shall be construed to authorize the bonded indebtedness of the state to exceed the limitation on bonded indebtedness provided for in Section 115, Mississippi Constitution of 1890.
SECTION 2. This act shall take effect and be in force from and after its passage.