MISSISSIPPI LEGISLATURE

2006 Regular Session

To: Ways and Means

By: Representative Fleming

House Bill 1611

AN ACT TO CREATE A STUDY COMMITTEE TO STUDY THE TAX SYSTEM OF THIS STATE AND TO MAKE RECOMMENDATIONS THEREON TO THE LEGISLATURE; TO REQUIRE THE BUDGET OF STATE AGENCIES BE REDUCED BY FIVE PERCENT IN FISCAL YEAR 2007; TO AMEND SECTION 27-7-5, MISSISSIPPI CODE OF 1972, TO REVISE THE TAX BRACKETS UNDER THE INCOME TAX LAW; TO AMEND SECTIONS 27-7-901 AND 27-7-903, MISSISSIPPI CODE OF 1972, TO INCREASE THE TAX LEVIED UPON AMOUNTS THAT ARE PAID OR CREDITED BY GAMING ESTABLISHMENTS TO THEIR PATRONS; TO AMEND SECTIONS 27-13-5 AND 27-13-7, MISSISSIPPI CODE OF 1972, TO INCREASE THE FRANCHISE TAX LEVY; TO AMEND SECTIONS 27-15-103 AND 27-15-109, MISSISSIPPI CODE OF 1972, TO INCREASE THE INSURANCE PREMIUM TAX; TO AMEND SECTION 27-19-43, MISSISSIPPI CODE OF 1972, TO INCREASE THE REGISTRATION FEE ON MOTOR VEHICLES; TO AMEND SECTION 27-65-17, MISSISSIPPI CODE OF 1972, TO INCREASE THE SALES TAX ON RETAIL SALES OF PRIVATE CARRIERS OF PASSENGERS AND LIGHT CARRIERS OF PROPERTY; TO REDUCE THE SALES TAX RATE ON RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS, BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF SUCH FOOD WERE PURCHASED WITH FOOD STAMPS, TO TWO PERCENT; TO AMEND SECTION 27-65-19, MISSISSIPPI CODE OF 1972, TO INCREASE THE SALES TAX ON SALES OF ELECTRICITY AND OTHER FUELS TO MANUFACTURERS, CUSTOM PROCESSORS OR PUBLIC SERVICE COMPANIES FOR INDUSTRIAL PURPOSES; TO AMEND SECTION 27-65-21, MISSISSIPPI CODE OF 1972, TO INCREASE THE CONTRACTOR'S TAX; TO AMEND SECTION 27-65-33, MISSISSIPPI CODE OF 1972, TO REMOVE THE DISCOUNT GIVEN FOR TIMELY FILING AND PAYING SALES TAXES; TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, TO INCREASE THE AMOUNT OF THE SALES TAX DIVERSION TO CITIES AND TO PROVIDE THAT THE ADDITIONAL SALES TAX ON MOTOR VEHICLES SHALL NOT BE DEPOSITED INTO THE MOTOR VEHICLE AD VALOREM TAX REDUCTION FUND; TO PROVIDE THAT ALL OF THE SALES TAX REVENUE COLLECTED ON RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS, BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF SUCH FOOD WERE PURCHASED WITH FOOD STAMPS, WITHIN A MUNICIPALITY SHALL BE ALLOCATED FOR DISTRIBUTION AND PAID TO SUCH MUNICIPALITY; TO INCREASE THE AMOUNT OF THE SALES TAX DIVERSIONS TO THE SCHOOL AD VALOREM TAX REDUCTION FUND AND THE EDUCATION ENHANCEMENT FUND; TO PROVIDE FOR THE PAYMENT OF A PERCENTAGE OF SALES TAX REVENUES GENERATED FROM BUSINESS ACTIVITIES OUTSIDE MUNICIPALITIES TO THE COUNTIES IN WHICH SUCH BUSINESS ACTIVITIES OCCURRED; TO AMEND SECTION 27-65-111, MISSISSIPPI CODE OF 1972, TO REMOVE THE SALES TAX EXEMPTION ON SALES OF MOTOR FUEL AND TO EXEMPT RETAIL SALES OF CERTAIN GROCERIES FROM SALES TAXATION; TO AMEND SECTION 27-67-5, MISSISSIPPI CODE OF 1972, TO INCREASE THE USE TAX; TO AMEND SECTION 27-67-31, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE ADDITIONAL USE TAX ON MOTOR VEHICLES SHALL NOT BE DEPOSITED INTO THE MOTOR VEHICLE AD VALOREM TAX REDUCTION FUND; TO AMEND SECTION 27-69-13, MISSISSIPPI CODE OF 1972, TO INCREASE THE EXCISE TAX LEVIED ON CIGARETTES; TO ELIMINATE THE DISCOUNT OR COMPENSATION PROVIDED TO DEALERS AS CONSIDERATION FOR THEIR SERVICES IN AFFIXING TOBACCO TAX STAMPS REQUIRED UNDER THE STATE TOBACCO TAX LAW; TO PROHIBIT ANY STATE AGENCY FROM PURCHASING EQUIPMENT, HIRING NEW EMPLOYEES, OR PROMOTING, RECLASSIFYING, REALLOCATING OR REALIGNING PAY GRADES WITH REGARD TO ANY OF ITS EMPLOYEES OR JOB POSITIONS DURING THE CURRENT FISCAL YEAR; TO ESTABLISH AN APPEAL PROCEDURE TO THE STATE FISCAL OFFICER FOR AGENCIES SEEKING TO TAKE ANY ACTION THAT OTHERWISE WOULD BE PROHIBITED BY THIS ACT; TO SET FORTH THE DEMONSTRATION OF THE EMERGENCY THAT MUST BE MADE BY THE AGENCY IN ITS APPEAL; TO PROVIDE THAT THE JOINT LEGISLATIVE BUDGET COMMITTEE SHALL BE NOTIFIED OF SUCH AN APPEAL AND THAT COMMITTEE MEMBERS MAY ATTEND THE HEARING ON SUCH AN APPEAL; TO ALLOW THE STATE FISCAL OFFICER, IN HIS DISCRETION, TO AUTHORIZE THE ACTION SOUGHT IN THE APPEAL; TO AMEND SECTION 25-9-116, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PRECEDING PROVISIONS; TO PROVIDE THAT DURING FISCAL YEAR 2007, STATE AGENCIES ARE NOT AUTHORIZED TO EXPEND FUNDS TO DO CERTAIN THINGS UNLESS SPECIFICALLY AUTHORIZED IN THE AGENCY'S APPROPRIATION BILL; TO AMEND SECTIONS 7-7-211 AND 7-7-213, MISSISSIPPI CODE OF 1972, TO INCREASE THE FEE CHARGED BY THE DEPARTMENT OF AUDIT FOR CONDUCTING A POSTAUDIT, PREAUDIT OR INVESTIGATION OF THE FINANCIAL AFFAIRS OF CERTAIN GOVERNMENTAL ENTITIES; TO BRING FORWARD SECTION 27-15-83, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR CERTAIN PRIVILEGE TAXES TO BE LEVIED ON INSURANCE COMPANIES; TO BRING FORWARD SECTION 27-15-85, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR PRIVILEGE TAXES TO BE LEVIED ON CERTAIN INCORPORATED INSURANCE AGENCIES AND INCORPORATED GENERAL AGENTS AND INCORPORATED SUPERVISING GENERAL AGENTS; TO BRING FORWARD SECTION 27-15-87, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR PRIVILEGE TAXES TO BE LEVIED ON CERTAIN FIRE, CASUALTY, LIABILITY, FIDELITY, SURETY, GUARANTY AND INLAND MARINE INSURANCE AGENTS AND INSURANCE SOLICITORS; TO BRING FORWARD SECTION 27-15-93, MISSISSIPPI CODE OF 1972, WHICH PROVIDES CERTAIN PRIVILEGE TAXES TO BE LEVIED ON INCORPORATED LIFE, HEALTH OR ACCIDENT INSURANCE AGENCIES, SUPERVISING GENERAL AGENTS AND LIFE INSURANCE AGENTS; TO BRING FORWARD SECTION 27-15-95, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR A PRIVILEGE TAX TO BE LEVIED ON CERTAIN PERSONS, OTHER THAN AN INCORPORATED INSURANCE AGENCY, WRITING HEALTH AND ACCIDENT OR INDUSTRIAL LIFE INSURANCE; TO BRING FORWARD SECTION 83-49-47, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR CERTAIN LICENSE FEES ON PERSONS ACTING AS AGENTS OR REPRESENTATIVES OF INSURERS WHO ESTABLISH PREPAID LEGAL SERVICES; TO BRING FORWARD SECTION 83-11-237, MISSISSIPPI CODE OF 1972, WHICH REQUIRES CERTAIN REGISTRATION FEES FOR AGENTS OF AUTOMOBILE CLUBS OPERATING IN THE STATE OF MISSISSIPPI; TO AMEND SECTION 27-19-44.4, MISSISSIPPI CODE OF 1972, TO IMPOSE AN ADDITIONAL FEE ON THE ISSUANCE OF PERSONALIZED MOTOR VEHICLE LICENSE TAGS AND CERTAIN DISTINCTIVE OR SPECIAL MOTOR VEHICLE LICENSE TAGS; TO BRING FORWARD SECTION 27-19-89, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR FINES FOR OVERWEIGHT VEHICLES UPON THE PUBLIC HIGHWAYS; TO BRING FORWARD SECTION 27-65-27, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR THE ISSUANCE OF PERMITS TO ENGAGE IN BUSINESS; TO AMEND SECTION 27-69-13, MISSISSIPPI CODE OF 1972, AND TO AMEND SECTION 27-69-31, MISSISSIPPI CODE OF 1972, TO ELIMINATE THE DISCOUNT OR COMPENSATION PROVIDED TO DEALERS AS COMPENSATION FOR THEIR SERVICES IN AFFIXING TOBACCO TAX STAMPS REQUIRED UNDER THE STATE TOBACCO TAX LAW; TO AMEND SECTION 27-69-75, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PRECEDING PROVISIONS; TO AMEND SECTION 27-71-11, MISSISSIPPI CODE OF 1972, TO INCREASE THE MARKUP ON THE COST OF ALCOHOLIC BEVERAGES; TO AMEND SECTION 27-71-303, MISSISSIPPI CODE OF 1972, TO INCREASE THE ANNUAL PRIVILEGE TAX ON RETAIL AND WHOLESALE SELLERS OF BEER AND LIGHT WINES; TO AMEND SECTION 39-5-5, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE DEPARTMENT OF ARCHIVES AND HISTORY TO CHARGE FEES FOR THE DEPARTMENT TO PERFORM RESEARCH ON BEHALF OF PERSONS OR ENTITIES; TO AMEND SECTION 41-3-18, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE STATE BOARD OF HEALTH SHALL CHARGE AN ADDITIONAL FEE FOR FOOD ESTABLISHMENT PERMITS AND PRIVATE WATER SUPPLY APPROVALS; TO AMEND SECTION 41-4-7, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE STATE BOARD OF MENTAL HEALTH TO CHARGE COUNTIES FOR SERVICES PROVIDED TO PATIENTS IN MENTAL HEALTH CRISIS INTERVENTION CENTERS; TO BRING FORWARD SECTIONS 41-7-71, 41-71-73 AND 41-71-79, MISSISSIPPI CODE OF 1972, WHICH PROVIDE FOR CHARGING THE COSTS OF PROVIDING CARE AND TREATMENT TO PERSONS AT STATE MENTAL INSTITUTIONS; TO AMEND SECTION 45-1-29, MISSISSIPPI CODE OF 1972, TO REQUIRE THE DEPARTMENT OF PUBLIC SAFETY TO SET AND COLLECT FEES FOR SERVICES RENDERED BY THE MISSISSIPPI CRIME LABORATORY IN AMOUNTS THAT WILL RECOVER THE COSTS TO THE CRIME LABORATORY; TO BRING FORWARD SECTION 49-17-30, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR THE ISSUANCE OF AN AIR OPERATING PERMIT UNDER THE FEDERAL CLEAN AIR ACT BY THE DEPARTMENT OF ENVIRONMENTAL QUALITY; TO AMEND SECTION 49-17-421, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE DEPARTMENT OF ENVIRONMENTAL QUALITY SHALL CHARGE AN ADDITIONAL FEE FOR UNDERGROUND STORAGE TANKS; TO PROVIDE THAT WHERE A FEE IS NOT SET BY LAW, THE DEPARTMENT OF ENVIRONMENTAL QUALITY SHALL CHARGE FEES FOR GENERAL PERMITS, OTHER PERMITS AND MONITORING ACTIVITIES; TO AMEND SECTIONS 51-3-31, 53-7-7, 53-7-21, 53-7-25, 53-7-27 AND 53-7-69, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE DEPARTMENT OF ENVIRONMENTAL QUALITY SHALL CHARGE FEES FOR CERTAIN ACTIVITIES UNDER ITS JURISDICTION; TO BRING FORWARD SECTION 55-3-33, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR CERTAIN POWERS AND DUTIES OF THE DEPARTMENT OF WILDLIFE, FISHERIES AND PARKS REGARDING PARKS OPERATED BY THE DEPARTMENT; TO AMEND SECTION 45-35-7, MISSISSIPPI CODE OF 1972, TO INCREASE THE FEE FOR IDENTIFICATION CARDS ISSUED BY THE DEPARTMENT OF PUBLIC SAFETY; TO AMEND SECTION 45-35-9, MISSISSIPPI CODE OF 1972, TO INCREASE THE FEE FOR THE ISSUANCE OF DUPLICATE IDENTIFICATION CARDS BY THE DEPARTMENT; TO AMEND SECTION 63-1-43, MISSISSIPPI CODE OF 1972, TO INCREASE THE FEES FOR REGULAR DRIVER'S LICENSES AND CLASS D COMMERCIAL DRIVER'S LICENSES; TO AMEND SECTIONS 63-1-21, 63-1-37, 63-1-46 AND 63-1-82, MISSISSIPPI CODE OF 1972, TO INCREASE THE FEES FOR THE ISSUANCE OF TEMPORARY DRIVING PERMITS, DUPLICATE COPIES OF DRIVERS' LICENSES OR TEMPORARY DRIVING PERMITS, REINSTATEMENT OF SUSPENDED DRIVERS' LICENSES, AND CLASS A, CLASS B AND CLASS C COMMERCIAL DRIVERS' LICENSES; TO BRING FORWARD SECTION 63-1-81, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR APPLICATION FEES FOR COMMERCIAL DRIVER'S LICENSES; TO BRING FORWARD SECTION 63-15-4, MISSISSIPPI CODE OF 1972, WHICH REQUIRES MOTOR VEHICLE OWNERS OR OPERATORS TO HAVE INSURANCE CARDS IN THEIR MOTOR VEHICLES; TO AMEND SECTION 63-21-63, MISSISSIPPI CODE OF 1972, TO INCREASE THE FEES FOR ISSUING AND PROCESSING MOTOR VEHICLE CERTIFICATES OF TITLE AND RELATED DOCUMENTS; TO CODIFY NEW SECTION 7-3-30, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE SECRETARY OF STATE SHALL PROVIDE FOR THE ANNUAL PUBLICATION OF A JUDICIARY DIRECTORY AND COURT CALENDAR, WHICH SHALL BE MADE AVAILABLE FOR SALE FOR NOT LESS THAN A SPECIFIED PRICE PER COPY; TO AMEND SECTION 25-7-81, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE SECRETARY OF STATE SHALL CHARGE AN ADDITIONAL FEE FOR THE COMMISSIONING OF NOTARIES PUBLIC; TO AMEND SECTION 79-4-1.22, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE SECRETARY OF STATE SHALL CHARGE ADDITIONAL FEES FOR FILING CERTAIN DOCUMENTS; TO AMEND SECTION 75-9-525, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE SECRETARY OF STATE SHALL CHARGE ADDITIONAL FILING FEES FOR SECURED TRANSACTIONS UNDER THE UNIFORM COMMERCIAL CODE; TO AMEND SECTION 75-63-65, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE SECRETARY OF STATE SHALL CHARGE FEES FOR CERTAIN ACTIONS RELATING TO SALES OF PRENEED CONTRACTS; TO AMEND SECTION 75-71-409, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE SECRETARY OF STATE SHALL CHARGE FEES FOR CERTAIN ACTIONS RELATING TO SECURITIES; TO AMEND SECTION 79-11-109, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE SECRETARY OF STATE SHALL CHARGE ADDITIONAL FEES FOR FILING CERTAIN DOCUMENTS; TO AMEND SECTION 79-11-504, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE SECRETARY OF STATE SHALL CHARGE ADDITIONAL FEES FOR CERTAIN ACTIONS RELATING TO CHARITABLE SOLICITATIONS; TO AMEND SECTION 79-29-1203, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE SECRETARY OF STATE SHALL CHARGE ADDITIONAL FEES FOR CERTAIN ACTIONS RELATING TO LIMITED LIABILITY COMPANIES; TO BRING FORWARD SECTION 75-76-131, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR THE ISSUANCE OF WORK PERMITS BY THE MISSISSIPPI GAMING COMMISSION BEFORE A PERSON MAY BE EMPLOYED AS A GAMING EMPLOYEE; TO AMEND SECTION 27-7-15, MISSISSIPPI CODE OF 1972, TO EXCLUDE OVERTIME COMPENSATION FROM THE DEFINITION OF 'GROSS INCOME' FOR PURPOSES OF THE STATE INCOME TAX LAW; TO AMEND SECTION 27-7-17, MISSISSIPPI CODE OF 1972, TO AUTHORIZE AN INCOME TAX DEDUCTION FOR TAXPAYERS WHO INCUR EXPENSES FOR MEDICAL CARE OR PRESCRIBED DRUGS, OR BOTH, FOR THE TAXPAYER, THE TAXPAYER'S SPOUSE OR DEPENDENTS, REGARDLESS OF THE AMOUNT OF SUCH EXPENSES INCURRED DURING A TAXABLE YEAR; TO AMEND SECTION 27-55-11, MISSISSIPPI CODE OF 1972, TO INCREASE THE GASOLINE EXCISE TAX BY TWO CENTS PER GALLON; TO AMEND SECTION 27-5-101, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE PROCEEDS OF SUCH INCREASE SHALL BE DEPOSITED INTO THE MISSISSIPPI HIGHWAY-RAILROAD GRADE CROSSING SAFETY ACCOUNT; TO AMEND SECTION 57-43-15, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO PROVIDE A STATE INCOME TAX CREDIT FOR CERTAIN HOUSEHOLD AND DEPENDENT CARE SERVICE EXPENSES NECESSARY FOR EMPLOYMENT WHICH ARE CLAIMED BY A TAXPAYER AS A FEDERAL DEPENDENT CARE INCOME TAX CREDIT; TO PROVIDE AN INCOME TAX CREDIT FOR TAXPAYERS WHO PAY TUITION TO A NONPUBLIC SCHOOL; TO PROVIDE AN INCOME TAX CREDIT FOR TAXPAYERS THAT INCUR COSTS FOR HOME SCHOOL PURPOSES; TO PROVIDE AN INCOME TAX CREDIT FOR TAXPAYERS WHO INCUR EXPENSES FOR TUTORIAL SERVICES FOR DEPENDENTS ENROLLED AS  STUDENTS IN MISSISSIPPI PUBLIC SCHOOLS; TO LIMIT THE AMOUNT OF THE INCOME TAX CREDIT THAT MAY BE CLAIMED BY A TAXPAYER; TO PROVIDE THAT THE STATE TAX COMMISSION SHALL DEVELOP A LIST OF TUTORIAL SERVICE EXPENSES FOR WHICH THE CREDIT MAY BE CLAIMED AND SHALL DEVELOP GUIDELINES FOR ADMINISTERING THE CREDIT AND HOW IT MAY BE OBTAINED; TO PROVIDE THAT A TAXPAYER MUST PROVIDE CERTAIN INFORMATION TO THE STATE TAX COMMISSION IN ORDER TO RECEIVE THE INCOME TAX CREDIT; TO PROVIDE A ONE PERCENT TAX UPON PROFESSIONAL SERVICE TRANSACTIONS WHICH ARE FOR MORE THAN $10,000.00; TO PROVIDE CERTAIN EXEMPTIONS FROM SUCH TAX; TO IMPOSE A TAX ON THE AMOUNT OF ANY FEES CHARGED TO USERS OF AUTOMATED TELLER MACHINES (ATM) AS TRANSACTION FEES FOR THE USE OF THE ATM; TO AMEND SECTIONS 27-103-125, 27-103-139, 27-103-211 AND 31-17-123, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT DURING EACH OF THE NEXT TEN FISCAL YEARS, THE GENERAL FUND REVENUE ESTIMATES THAT ARE USED FOR DETERMINING THE PROPOSED STATE BUDGET, LEGISLATIVE APPROPRIATIONS AND STATE AGENCY BUDGET REDUCTIONS SHALL NOT EXCEED THREE PERCENT OF THE AMOUNT OF THE GENERAL FUND REVENUES RECEIVED BY THE STATE FOR THE PRECEDING FISCAL YEAR; TO CREATE THE STATE POLICE IN THE DEPARTMENT OF PUBLIC SAFETY; TO PROVIDE FOR THE CHIEF OF THE STATE POLICE; TO PROVIDE THE JURISDICTION AND AUTHORITY OF THE STATE POLICE; TO PROVIDE FOR THE APPOINTMENT, TRAINING AND SALARY OF OFFICERS OF THE STATE POLICE; TO AMEND SECTIONS 27-3-13, 29-5-77, 37-101-15, 41-29-107, 49-1-12, 49-1-16, 49-1-44, 65-1-131, 69-29-1, 75-76-17 AND 77-1-21, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PRECEDING PROVISIONS; TO REPEAL SECTIONS 49-1-9, 49-1-13 AND 49-1-15, MISSISSIPPI CODE OF 1972, WHICH PROVIDE FOR CONSERVATION OFFICERS OF THE DEPARTMENT OF WILDLIFE, FISHERIES AND PARKS; TO AMEND SECTIONS 49-2-5 AND 49-2-7, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IN ANY STATE FISCAL YEAR IN WHICH THE LEGISLATURE DOES NOT APPROPRIATE SUFFICIENT FUNDS TO THE COMMISSION ON ENVIRONMENTAL QUALITY OR DEPARTMENT OF ENVIRONMENTAL QUALITY TO OPERATE A PROGRAM OR PROGRAMS THE COMMISSION OR DEPARTMENT CURRENTLY OPERATES, THEN THE COMMISSION OR DEPARTMENT SHALL NO LONGER OPERATE THAT PROGRAM OR PROGRAMS AND THE OPERATION OF SUCH PROGRAM OR PROGRAMS SHALL BE TRANSFERRED TO THE FEDERAL GOVERNMENT; AND FOR RELATED PURPOSES.

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

     SECTION 1.  The Legislature finds that tax revenues are not sufficient to fund essential functions of state government and without additional revenues to fund these functions, the health, safety, welfare and future of the citizens of the State of Mississippi will be compromised.  It is the intent of the Legislature that the additional General Fund revenue that is generated as a result of the passage of this act shall be utilized to:

          (a)  Maintain the current eligibility standards under the Medicaid program;

          (b)  Fund the Medicaid Poverty Level Aged and Disabled Group;

          (c)  Fund seven hundred fifty (750) slots under the Medicaid Assisted Living Waiver Program;

          (d)  Fund the Children's Health Insurance Program administered by the Department of Medicaid;

          (e)  Fund the Mississippi Adequate Education Program and teacher salaries as provided by law;

          (f)  Fund State Institutions of Higher Learning and Community and Junior Colleges;

          (g)  Fund the State and School Employees' Health Insurance Plan;

          (h)  Fund a six percent (6%) increase in state employee compensation;

          (i)  Fund mental health crisis centers; and

          (j)  Fund additional patrolmen for the Highway Safety Patrol. 

     SECTION 2.  (1)  There is created a study committee on the tax system of Mississippi.  The committee shall make a report of its findings and recommendations to the Legislature during the 2007 Regular Legislative Session, including any recommended legislation.

     (2)  The committee shall be composed of the following members:

          (a)  The President Pro Tempore of the Mississippi Senate;

          (b)  The Speaker Pro Tempore of the Mississippi House of Representatives;

          (c)  The Chairman of the Senate Appropriations Committee;

          (d)  The Chairman of the House Appropriations Committee;

          (e)  The Chairman of the Senate Finance Committee;

          (f)  The Chairman of the House Ways and Means Committee;

          (g)  The State Treasurer, or his designee;

          (h)  The Executive Director of the Department of Finance and Administration;

          (i)  The State Auditor, or his designee;

          (j)  One (1) member designated by the State Tax Commission;

          (k)  One (1) member designated by the State Board of Public Accountancy;

          (l)  One (1) member designated by the President of The Mississippi Bar from the Taxation Section of The Mississippi Bar;

          (m)  One (1) member designated by the Mississippi Supervisors Association;

          (n)  One (1) member designated by the Mississippi Municipal Association; and

          (o)  Three (3) representatives of the general public, one (1) designated by the Governor, one (1) by the Lieutenant Governor and one (1) by the Speaker of the House of Representatives.

     Appointments shall be made within thirty (30) days after the effective date of this act, and, within fifteen (15) days thereafter on a day to be designated jointly by the Lieutenant Governor and the Speaker of the House, the committee shall meet and organize by selecting from its membership a chairman and a vice chairman.  The vice chairman shall also serve as secretary and shall be responsible for keeping all records of the committee.  A majority of the members of the committee shall constitute a quorum.  In the selection of its officers and the adoption of rules, resolutions and reports, an affirmative vote of a majority of the committee shall be required.  All members shall be notified in writing of all meetings, such notices to be mailed at least five (5) days before the date on which a meeting is to be held.

     (3)  The committee shall study and make recommendations with respect to the imposition of state taxes and the granting of tax exemptions in all areas of taxation including, but not limited to, sales taxes, income taxes, privilege taxes, fuel taxes, diversions of taxes and the relationship between state and local taxes.

     (4)  Members of the committee who are not legislators, state officials or state employees shall be compensated at the per diem rate authorized by Section 25-3-69, and shall be reimbursed in accordance with Section 25-3-41 for mileage and actual expenses incurred in the performance of their duties.  Legislative members of the committee shall be paid from the contingent expense funds of their respective houses in the same manner as provided for committee meetings when the Legislature is not in session; however, no per diem or expense for attending meetings of the committee will be paid while the Legislature is in session.  No committee member may incur per diem, travel or other expenses unless previously authorized by vote, at a meeting of the committee, which action shall be recorded in the official minutes of the meeting.  Nonlegislative members shall be paid from any funds made available to the committee for that purpose.

     (5)  The committee shall utilize clerical and legal staff already employed by the Legislature and any other staff assistance made available to it.  To effectuate the purpose of this resolution, any department, division, board, bureau, commission or agency of the state or of any political subdivision thereof shall, at the request of the chairman of the committee, provide to the committee such facilities, assistance and data as will enable the committee properly to carry out its task.

     (6)  Upon presentation of its report to the 2007 Regular Legislative Session, the committee shall be dissolved.

     SECTION 3.  In fiscal year 2007, the budget of each state agency, as defined in Section 27-103-103, shall be reduced by five percent (5%) from the level it was funded in fiscal year 2006.

     SECTION 4.  Section 27-7-5, Mississippi Code of 1972, is amended as follows:

     27-7-5.  (1)  There is * * * assessed and levied, to be collected and paid as hereinafter provided, for the calendar year 1983 and fiscal years ending during the calendar year 1983 and all taxable years thereafter, upon the entire net income of every resident individual, corporation, association, trust or estate, in excess of the credits provided, a tax at the following rates:

     On the first Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, at the rate of four percent (4%);

     On the next Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, at the rate of five percent (5%); and

     On all taxable income in excess of Ten Thousand Dollars ($10,000.00), at the rate of six percent (6%).

     (2)  An S corporation, as defined in Section 27-8-3(1)(g), shall not be subject to the income tax imposed under this section.

     (3)  A like tax is * * * imposed to be assessed, collected and paid annually, except as hereinafter provided, at the rate specified in this section and as hereinafter provided, upon and with respect to the entire net income, from all property owned or sold, and from every business, trade or occupation carried on in this state by individuals, corporations, partnerships, trusts or estates, not residents of the State of Mississippi.

     (4)  In the case of taxpayers having a fiscal year beginning in the calendar year 1982 and ending after the first day of January 1983, the tax due for that taxable year shall be determined by:

          (a)  Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year 1982; and

          (b)  Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year 1983; and

          (c)  Applying to the tax computed under paragraph (a) the ratio that the number of months falling within the earlier calendar year bears to the total number of months in the fiscal year; and

          (d)  Applying to the tax computed under paragraph (b) the ratio that the number of months falling within the later calendar year bears to the total number of months within the fiscal year; and

          (e)  Adding to the tax determined under paragraph (c) the tax determined under paragraph (d) the sum of which shall be the amount of tax due for the fiscal year.

     SECTION 5.  Section 27-7-901, Mississippi Code of 1972, is amended as follows:

     27-7-901.  (1)  There is * * * levied, assessed and shall be collected a tax of five percent (5%) upon amounts that are paid or credited by gaming establishments licensed under the provisions of the Mississippi Gaming Control Act to their patrons.  The tax shall be collected by licensed gaming establishments and remitted to the State Tax Commission in the manner provided for by regulations promulgated by the Chairman of the State Tax Commission.

     (2)  As used in this section, "amounts that are paid or credited" means amounts or credits that are subject to the withholding or reporting requirements of the Internal Revenue Code.

     (3)  No credit shall be allowed under the Income Tax Law of 1952 for the tax collected by licensed gaming establishments under this section.

     SECTION 6.  Section 27-7-903, Mississippi Code of 1972, is amended as follows:

     27-7-903.  (1)  There is * * * levied and assessed upon patrons of gaming establishments located in this state that are not licensed under the provisions of the Mississippi Gaming Control Act, a tax of five percent (5%) of the amounts that are paid or credited to those patrons by the gaming establishment, which tax is the same in kind and rate as has heretofore been imposed under Section 27-7-901 upon the patrons of gaming establishments that are licensed under the Mississippi Gaming Control Act.  The legal incidence and duty to pay those taxes shall fall upon the patron.  The assessment of the tax is subject to any exemptions as may exist under federal or state law.  The State Tax Commission may enter into tax collection agreements regarding this tax.

     (2)  As used in this section, "amounts that are paid or credited" means amounts or credits that are subject to the withholding or reporting requirements of the Internal Revenue Code.

     (3)  No credit shall be allowed under the Income Tax Law of 1952 for the tax collected by gaming establishments under this section.

     SECTION 7.  Section 27-13-5, Mississippi Code of 1972, is amended as follows:

     27-13-5.  (1)  Franchise tax levy.  Except as otherwise provided in subsections (3), (4) and (5) of this section, there is hereby imposed, to be paid and collected as hereinafter provided, a franchise or excise tax upon every corporation, association or joint-stock company or partnership treated as a corporation under the income tax laws or regulations, organized or created for pecuniary gain, having privileges not possessed by individuals, and having authorized capital stock now existing in this state, or hereafter organized, created or established, under and by virtue of the laws of the State of Mississippi, equal to Five Dollars ($5.00) for each One Thousand Dollars ($1,000.00), or fraction thereof, of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.  In no case shall the franchise tax due for the accounting period be less than Twenty-five Dollars ($25.00).  It is the purpose of this section to require the payment to the State of Mississippi of this tax for the right granted by the laws of this state to exist as such organization, and to enjoy, under the protection of the laws of this state, the powers, rights, privileges and immunities derived from the state by the form of such existence.

     (2)  Annual report of domestic corporations.  Each domestic corporation shall file, within the time prescribed by Section 79-3-251, an annual report as required by the provisions of Section 79-3-249.

     (3)  A corporation that has negotiated a fee-in-lieu as defined in Section 57-75-5 shall not be subject to the tax levied by this section on such project; provided, however, that the fee-in-lieu payment shall be otherwise treated in the same manner as the payment of franchise taxes.

     (4)  An approved business enterprise as defined in the Growth and Prosperity Act shall not be subject to the tax levied by this section on the value of capital used, invested or employed by the approved business enterprise in a growth and prosperity county or supervisors district as provided in the Growth and Prosperity Act.

     (5)  A business enterprise operating a project as defined in Section 57-64-33, in a county that is a member of a regional economic development alliance created under the Regional Economic Development Act shall not be subject to the tax levied by this section on the value of capital used, invested or employed by the business enterprise in such a county as provided in Section 57-64-33.

     (6)  The tax levied by this chapter and paid by a business enterprise located in a redevelopment project area under Sections 57-91-1 through 57-91-11 shall be deposited into the Redevelopment Project Incentive Fund created in Section 57-91-9.

     SECTION 8.  Section 27-13-7, Mississippi Code of 1972, is amended as follows:

     27-13-7.  (1)  Franchise tax levy.  Except as otherwise provided in subsections (3), (4) and (5) of this section, there is hereby imposed, levied and assessed upon every corporation, association or joint-stock company, or partnership treated as a corporation under the Income Tax Laws or regulations as hereinbefore defined, organized and existing under and by virtue of the laws of some other state, territory or country, or organized and existing without any specific statutory authority, now or hereafter doing business or exercising any power, privilege or right within this state, as hereinbefore defined, a franchise or excise tax equal to Five Dollars ($5.00) of each One Thousand Dollars ($1,000.00), or fraction thereof, of the value of capital used, invested or employed within this state, except as hereinafter provided.  In no case shall the franchise tax due for the accounting period be less than Twenty-five Dollars ($25.00).  It is the purpose of this section to require the payment of a tax by all organizations not organized under the laws of this state, measured by the amount of capital or its equivalent, for which such organization receives the benefit and protection of the government and laws of the state.

     (2)  Annual report of foreign corporations.  Each foreign corporation authorized to transact business in this state shall file, within the time prescribed by Section 79-3-251, an annual report as required by the provisions of Section 79-3-249.

     (3)  A corporation that has negotiated a fee-in-lieu as defined in Section 57-75-5 shall not be subject to the tax levied by this section on such project; provided, however, that the fee-in-lieu payment shall be otherwise treated in the same manner as the payment of franchise taxes.

     (4)  An approved business enterprise as defined in the Growth and Prosperity Act shall not be subject to the tax levied by this section on the value of capital used, invested or employed by the approved business enterprise in a growth and prosperity county or supervisors district as provided in the Growth and Prosperity Act.

     (5)  A business enterprise operating a project as defined in Section 57-64-33, in a county that is a member of a regional economic development alliance created under the Regional Economic Development Act shall not be subject to the tax levied by this section on the value of capital used, invested or employed by the business enterprise in such a county as provided in Section 57-64-33.

     (6)  The tax levied by this chapter and paid by a business enterprise located in a redevelopment project area under Sections 57-91-1 through 57-91-11 shall be deposited into the Redevelopment Project Incentive Fund created in Section 57-91-9.

     SECTION 9.  Section 27-15-103, Mississippi Code of 1972, is amended as follows:

     27-15-103.  (1)  Except as otherwise provided in Section 83-61-11, in addition to the license tax now or hereafter provided by law, which tax shall be paid when the company enters or is admitted to do business in this state, there is * * * levied and imposed upon all foreign insurance companies and associations, including life insurance companies and associations, health, accident and industrial insurance companies and associations, fire and casualty insurance companies and associations, and all other foreign insurance companies and associations of every kind and description, an additional annual license or privilege tax of four percent (4%) of the gross amount of premium receipts received from, and on insurance policies and contracts written in, or covering risks located in this state, except for premiums received on policies issued to fund a deferred compensation plan qualified under Section 457 of the Federal Tax Code for federal tax exemption.  In determining the amount of premiums, there shall be deducted therefrom premiums received for reinsurance from companies authorized to do business in this state, cash dividends paid under policy contracts in this state, and premiums returned to policyholders and cancellations on accounts of policies not taken, and, in the case of mutual insurance companies (including interinsurance and reciprocal exchanges, but not including mutual life, accident, health or industrial insurance companies) any refund made or credited to the policyholder other than for losses.  The term "premium" as used in this section shall also include policy fees, membership fees, and all other fees collected by the companies.  No credit or deduction from gross premium receipts shall be allowed for any commission, fee or compensation paid to any agent, solicitor or representative. * * *  However, * * * any foreign insurance carrier selected to furnish service to the State of Mississippi under the State Employees Life and Health Insurance Plan shall not be required to pay the annual license or privilege tax on the premiums collected for coverage under the * * * plan.

 * * *

     (2)  The taxes * * * levied and imposed in this section for the calendar year 1982 and all calendar years thereafter shall be reduced by the net amount of income tax paid to this state for the preceding calendar year, provided, in no event may the credit be taken more than once.  The credit * * * authorized in this subsection shall, in no event, be greater than the premium tax due under this section; it being the purpose and intent of this paragraph that whichever of the annual insurance premium tax or the income tax is greater in amount shall be paid.

     SECTION 10.  Section 27-15-109, Mississippi Code of 1972, is amended as follows:

     27-15-109.  (1)  Except as otherwise provided in Section 83-61-11, there is * * * levied and imposed upon each domestic company doing business in this state an annual tax of four percent (4%) of the gross amount of premiums collected by the domestic company on insurance policies and contracts written in, or covering risks located in this state, except for premiums received on policies issued to fund a retirement, thrift or deferred compensation plan qualified under Section 401, Section 403 or Section 457 of the Federal Tax Code for federal tax exemption. * * *  However, * * * a domestic insurance company against which is levied additional premium tax under retaliatory laws of other states in which it does business, as a result of the tax increase provided by Sections 27-15-103 through 27-15-117, may deduct the total of the additional retaliatory tax from the state income tax due by it to the State of Mississippi.  The insurance carriers selected to furnish service to the State of Mississippi, under the State Employees Life and Health Insurance Plan, shall not be required to pay the premium tax levied against insurance companies under this section on the premiums collected for coverage under the state employees plan.

     (2)  Except as expressly provided by subsection (1) of this section, all of the provisions of Sections 27-15-103 through 27-15-117 shall be applicable to the domestic insurance companies.  However, the statement filed with the State Tax Commission by domestic insurance companies as provided in Section 27-15-107 shall include therein a sworn statement of all additional retaliatory premium taxes paid by them to other states as a result of the increase in premium taxes imposed by Sections 27-15-103 through 27-15-117, itemized by states to which paid.

 * * *

     SECTION 11.  Section 27-19-43, Mississippi Code of 1972, is amended as follows:

     27-19-43.  (1)  License tags, substitute tags and decals for individual fleets and for private carriers of passengers, school buses (excluding school buses owned by a school district in the state), church buses, taxicabs, ambulances, hearses, motorcycles and private carriers of property, and private commercial carriers of property of a gross weight of ten thousand (10,000) pounds and less, shall be sold and issued by the tax collectors of the several counties.

     (2)  Applications for license tags for motor vehicles in a corporate fleet registered under Section 27-19-66, and applications for all other license tags, substitute tags and decals shall be filed with the commission or the local tax collector of the respective counties and forwarded to the commission for issuance to the applicant.  All tags and decals for vehicles owned by the state or any agency or instrumentality thereof, and vehicles owned by a fire protection district, school district or a county or municipality, and all vehicles owned by a road, drainage or levee district shall be issued by the commission.

     (3)  In addition to the privilege taxes levied in this section, there shall be collected the following registration or tag fee:

          (a)  For the issuance of both a license tag and two (2) decals, a fee of Five Dollars ($5.00).

          (b)  For the issuance of up to two (2) decals only, a fee of Three Dollars and Seventy-five Cents ($3.75).

     No tag or decal shall be issued either by a tax collector or by the commission without the collection of the registration fee except substitute tags and decals and license tags for vehicles owned by the State of Mississippi.

     Beginning July 1, 1987, and until the date specified in Section 65-39-35, there shall be levied a registration fee of Five Dollars ($5.00) in addition to the regular registration fee imposed in paragraphs (a) and (b) of this subsection.  The additional registration fee shall be levied in the same manner as the regular registration fee.

     (4)  Beginning July 1, 2006, there shall be levied a registration fee of Ten Dollars ($10.00) in addition to the regular registration fee imposed in subsection (3) of this section.  The additional registration fee shall be levied in the same manner as the regular registration fee.

     SECTION 12.  Section 27-65-17, Mississippi Code of 1972, is amended as follows:

     27-65-17.  (1)  (a)  Except as otherwise provided in this section, upon every person engaging or continuing within this state in the business of selling any tangible personal property whatsoever there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross proceeds of the retail sales of the business.

          (b)  Retail sales of farm tractors shall be taxed at the rate of one percent (1%) when made to farmers for agricultural purposes.

          (c)  Retail sales of farm implements sold to farmers and used directly in the production of poultry, ratite, domesticated fish as defined in Section 69-7-501, livestock, livestock products, agricultural crops or ornamental plant crops or used for other agricultural purposes shall be taxed at the rate of three percent (3%) when used on the farm.  The three percent (3%) rate shall alsoapply to all equipment used in logging, pulpwood operations or tree farming which is either:

              (i)  Self-propelled, or

              (ii)  Mounted so that it is permanently attached to other equipment which is self-propelled or permanently attached to other equipment drawn by a vehicle which is self-propelled.

          (d)  Except as otherwise provided in subsection (3) of this section, retail sales of aircraft, automobiles, trucks, truck-tractors, semitrailers and mobile homes shall be taxed at the rate of three percent (3%).

          (e)  Sales of manufacturing machinery or manufacturing machine parts when made to a manufacturer or custom processor for plant use only when the machinery and machine parts will be used exclusively and directly within this state in manufacturing a commodity for sale, rental or in processing for a fee shall be taxed at the rate of one and one-half percent (1-1/2%).

          (f)  Sales of machinery and machine parts when made to a technology intensive enterprise for plant use only when the machinery and machine parts will be used exclusively and directly within this state for industrial purposes, including, but not limited to, manufacturing or research and development activities, shall be taxed at the rate of one and one-half percent (1-1/2%).  In order to be considered a technology intensive enterprise for purposes of this paragraph:

              (i)  The enterprise shall meet minimum criteria established by the Mississippi Development Authority;

              (ii)  The enterprise shall employ at least ten (10) persons in full-time jobs;

              (iii)  At least ten percent (10%) of the workforce in the facility operated by the enterprise shall be scientists, engineers or computer specialists;

              (iv)  The enterprise shall manufacture plastics, chemicals, automobiles, aircraft, computers or electronics; or shall be a research and development facility, a computer design or related facility, or a software publishing facility or other technology intensive facility or enterprise as determined by the Mississippi Development Authority;

              (v)  The average wage of all workers employed by the enterprise at the facility shall be at least one hundred fifty percent (150%) of the state average annual wage; and

              (vi)  The enterprise must provide a basic health care plan to all employees at the facility.

          (g)  Sales of materials for use in track and track structures to a railroad whose rates are fixed by the Interstate Commerce Commission or the Mississippi Public Service Commission shall be taxed at the rate of three percent (3%).

          (h)  Sales of tangible personal property to electric power associations for use in the ordinary and necessary operation of their generating or distribution systems shall be taxed at the rate of one percent (1%).

          (i)  Wholesale sales of beer shall be taxed at the rate of seven percent (7%), and the retailer shall file a return and compute the retail tax on retail sales but may take credit for the amount of the tax paid to the wholesaler on said return covering the subsequent sales of same property, provided adequate invoices and records are maintained to substantiate the credit.

          (j)  Wholesale sales of food and drink for human consumption to full service vending machine operators to be sold through vending machines located apart from and not connected with other taxable businesses shall be taxed at the rate of eight percent (8%).

          (k)  Sales of equipment used or designed for the purpose of assisting disabled persons, such as wheelchair equipment and lifts, that is mounted or attached to or installed on a private carrier of passengers or light carrier of property, as defined in Section 27-51-101, at the time when the private carrier of passengers or light carrier of property is sold shall be taxed at the same rate as the sale of such vehicles under this section.

     (2)  (a)  From and after January 1, 1995, retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101, shall be taxed an additional two percent (2%).

          (b)  From and after July 1, 2006, retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101, shall be taxed an additional one percent (1%).

     (3)  In lieu of the tax levied in subsection (1) of this section, there is levied on retail sales of truck-tractors and semitrailers used in interstate commerce and registered under the International Registration Plan (IRP) or any similar reciprocity agreement or compact relating to the proportional registration of commercial vehicles entered into as provided for in Section 27-19-143, a tax at the rate of three percent (3%) of the portion of the sale that is attributable to the usage of such truck-tractor or semitrailer in Mississippi.  The portion of the retail sale that is attributable to the usage of such truck-tractor or semitrailer in Mississippi is the retail sales price of the truck-tractor or semitrailer multiplied by the percentage of the total miles traveled by the vehicle that are traveled in Mississippi.  The tax levied pursuant to this subsection (3) shall be collected by the State Tax Commission from the purchaser of such truck-tractor or semitrailer at the time of registration of such truck-tractor or semitrailer.

     (4)  A manufacturer selling at retail in this state shall be required to make returns of the gross proceeds of such sales and pay the tax imposed in this section.

     (5)  Any person exercising any privilege taxable under Section 27-65-15 and selling his natural resource products at wholesale or to exempt persons shall pay the tax levied by said section in lieu of the tax levied by this section.

     (6)  From and after July 1, 2008, through June 30, 2019, in lieu of the tax levied in subsection (1) of this section, retail sales of food for human consumption not purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, but which would be exempt under Section 27-75-111(o) from the taxes imposed by this chapter if the food were purchased with food stamps, shall be taxed at the rate of two percent (2%).

     SECTION 13.  Section 27-65-19, Mississippi Code of 1972, is amended as follows:

     27-65-19.  (1)  (a)  Except as otherwise provided in this subsection, upon every person selling to consumers, electricity, current, power, potable water, steam, coal, natural gas, liquefied petroleum gas or other fuel, there is * * * levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross income of the business.  However, gross income from sales to consumers of electricity, current, power, natural gas, liquefied petroleum gas or other fuel for residential heating, lighting or other residential noncommercial or nonagricultural use, and sales of potable water for residential, noncommercial or nonagricultural use shall be excluded from taxable gross income of the business. * * *  Upon every such seller using electricity, current, power, potable water, steam, coal, natural gas, liquefied petroleum gas or other fuel for nonindustrial purposes, there is * * * levied, assessed and shall be collected a tax equal to seven percent (7%) of the cost or value of the product or service used.

 * * *

          (b)  Upon every person operating a telegraph or telephone business for the transmission of messages or conversations between points within this state, there is * * * levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross income of such business, with no deduction or allowance for any part of an intrastate rate charge because of routing across a state line.  Charges by one telecommunications provider to another telecommunications provider holding a permit issued under Section 27-65-27 for services that are resold by the other telecommunications provider, including, but not limited to, access charges, shall not be subject to the tax levied under this paragraph (b).  However, any sale of a prepaid telephone calling card or prepaid authorization number, or both, shall be deemed to be the sale of tangible personal property subject only to those taxes imposed by law on the sale of tangible personal property.  If the sale of a prepaid telephone calling card or prepaid authorization number does not take place at the vendor's place of business, it shall be conclusively determined to take place at the customer's shipping address.  The reauthorization of a prepaid telephone calling card or a prepaid authorization number shall be conclusively determined to take place at the customer's billing address.  Except for the provisions governing the sale of a prepaid telephone calling card or prepaid authorization number, this paragraph (b) shall not apply to persons providing mobile telecommunications services that are taxed under paragraph (d) of this section.

          (c)  Upon every person operating a telegraph or telecommunications business for the transmission of messages or conversations originating in this state or terminating in this state via interstate telecommunications, which are charged to the customer's service address in this state, regardless of where the amount is billed or paid, there is * * * levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross income received by the business from those interstate telecommunications.  However, a person, upon proof that he has paid a tax in another state on that event, shall be allowed a credit against the tax imposed in this paragraph (c) on interstate telecommunications charges to the extent that the amount of the tax is properly due and actually paid in the other state and to the extent that the rate of sales tax imposed by and paid to the other state does not exceed the rate of sales tax imposed by this paragraph (c).  Charges by one telecommunications provider to another telecommunications provider holding a permit issued under Section 27-65-27 for services that are resold by the other telecommunications provider, including, but not limited to, access charges, shall not be subject to the tax levied under this paragraph (c).  This paragraph (c) shall not apply to persons providing mobile telecommunications services that are taxed pursuant to paragraph (d) of this subsection.

          (d)  (i)  Upon every person providing mobile telecommunications services in this state, there is * * * levied, assessed and shall be collected:

                   1.  A tax equal to seven percent (7%) of the gross income received on those services from all charges for transmission of messages or conversations between points within any single state as they shall be construed to be within this state; and

                   2.  A tax equal to seven percent (7%) on the gross income received from all charges for services that originate in one state and terminate in any other state.

     Charges by one telecommunications provider to another telecommunications provider holding a permit issued under Section 27-65-27 for services that are resold by the other telecommunications provider, including, but not limited to, access charges, shall not be subject to the tax levied under this paragraph (d).

              (ii)  Subject to the provisions of 4 USCS 116(c), the tax levied by this paragraph (d) shall apply only to those charges for mobile telecommunications services subject to tax that are deemed to be provided to a customer by a home service provider under 4 USCS 117(a), if the customer's place of primary use is located within this state.

              (iii)  A home service provider shall be responsible for obtaining and maintaining the customer's place of primary use.  The home service provider shall be entitled to rely on the applicable residential or business street address supplied by the customer, if the home service provider's reliance is in good faith; and the home service provider shall be held harmless from liability for any additional taxes based on a different determination of the place of primary use for taxes that are customarily passed on to the customer as a separate itemized charge.  A home service provider shall be allowed to treat the address used for purposes of the tax levied by this chapter for any customer under a service contract in effect on August 1, 2002, as that customer's place of primary use for the remaining term of the service contract or agreement, excluding any extension or renewal of the service contract or agreement.  Month-to-month services provided after the expiration of a contract shall be treated as an extension or renewal of the contract or agreement.

     If the commissioner determines that the address used by a home service provider as a customer's place of primary use does not meet the definition of the term "place of primary use" as defined in this paragraph, the commissioner shall give binding notice to the home service provider to change the place of primary use on a prospective basis from the date of notice of determination; however, the customer shall have the opportunity, before that notice of determination, to demonstrate that the address satisfies that definition.

     The commission has the right to collect any taxes due directly from the home service provider's customer that has failed to provide an address that meets the definition of the term "place of primary use" that resulted in a failure of tax otherwise due being remitted.

              (iv)  For purposes of this paragraph (d):

                   1.  "Place of primary use" means the street address representative of where the customer's use of mobile telecommunications services primarily occurs, which shall be either the residential street address of the customer or the primary business street address of the customer.

                   2.  "Customer" means the person or entity that contracts with the home service provider for mobile telecommunications services.  For determining the place of primary use, in those instances in which the end user of mobile telecommunications services is not the contracting party, the end user of the mobile telecommunications services shall be deemed the customer.  The term "customer" shall not include a reseller of mobile telecommunications service, or a serving carrier under an arrangement to serve the customer outside the home service provider's licensed service area.

                   3.  "Home service provider" means the facilities-based carrier or reseller with which the customer contracts for the provision of mobile telecommunications services.

          (e)  (i)  For purposes of this paragraph (e), "bundled transaction" means a transaction that consists of distinct and identifiable properties or services that are sold for a single nonitemized price but that are treated differently for tax purposes.

              (ii)  In the case of a bundled transaction that includes telecommunications services taxed under this section in which the price of the bundled transaction is attributable to properties or services that are taxable and nontaxable, the portion of the price that is attributable to any nontaxable property or service shall be subject to the tax unless the provider can reasonably identify that portion from its books and records kept in the regular course of business.

              (iii)  In the case of a bundled transaction that includes telecommunications services subject to tax under this section in which the price is attributable to properties or services that are subject to the tax but the tax revenue from the different properties or services are dedicated to different funds or purposes, the provider shall allocate the price among the properties or services:

                   1.  By reasonably identifying the portion of the price attributable to each of the properties and services from its books and records kept in the regular course of business; or

                   2.  Based on a reasonable allocation methodology approved by the commission.

              (iv)  This paragraph (e) shall not create a right of action for a customer to require that the provider or the commission, for purposes of determining the amount of tax applicable to a bundled transaction, allocate the price to the different portions of the transaction in order to minimize the amount of tax charged to the customer.  A customer shall not be entitled to rely on the fact that a portion of the price is attributable to properties or services not subject to tax unless the provider elects, after receiving a written request from the customer in the form required by the provider, to provide verifiable data based upon the provider's books and records that are kept in the regular course of business that reasonably identifies the portion of the price attributable to the properties or services not subject to the tax.

     (2)  Persons making sales to consumers of electricity, current, power, natural gas, liquefied petroleum gas or other fuel for residential heating, lighting or other residential noncommercial or nonagricultural use or sales of potable water for residential, noncommercial or nonagricultural use shall indicate on each statement rendered to customers that those charges are exempt from sales taxes.

     (3)  There is * * * levied, assessed and shall be paid on transportation charges on shipments moving between points within this state when paid directly by the consumer, a tax equal to the rate applicable to the sale of the property being transported.  The tax shall be reported and paid directly to the State Tax Commission by the consumer.

     SECTION 14.  Section 27-65-21, Mississippi Code of 1972, is amended as follows:

     27-65-21.  (1)  (a)  (i)  Upon every person engaging or continuing in this state in the business of contracting or performing a contract or engaging in any of the activities, or similar activities, listed below for a price, commission, fee or wage, there is hereby levied, assessed and shall be collected a tax equal to four and one-half percent (4-1/2%) of the total contract price or compensation received, including all charges related to the contract such as finance charges and late charges, from constructing, building, erecting, repairing, grading, excavating, drilling, exploring, testing or adding to any building, highway, street, sidewalk, bridge, culvert, sewer, irrigation or water system, drainage or dredging system, levee or levee system or any part thereof, railway, reservoir, dam, power plant, electrical system, air conditioning system, heating system, transmission line, pipeline, tower, dock, storage tank, wharf, excavation, grading, water well, any other improvement or structure or any part thereof when the compensation received exceeds Ten Thousand Dollars ($10,000.00).  Such activities shall not include constructing, repairing or adding to property which retains its identity as personal property.  The tax imposed in this section is levied upon the prime contractor and shall be paid by him.

              (ii)  Amounts included in the contract price or compensation received representing the sale of manufacturing or processing machinery for a manufacturer or custom processor shall be taxed at the rate of one and one-half percent (1-1/2%) in lieu of the three and one-half percent (3-1/2%).

          (b)  The following shall be excluded from the tax levied by this section:

              (i)  The contract price or compensation received for constructing, building, erecting, repairing or adding to any building, electrical system, air conditioning system, heating system or any other improvement or structure which is used for or primarily in connection with a residence or dwelling place for human beings.  Such residences shall include homes, apartment buildings, condominiums, mobile homes, summer cottages, fishing and hunting camp buildings and similar buildings, but shall not include hotels, motels, hospitals, nursing or retirement homes, tourist cottages or other commercial establishments.

              (ii)  The portion of the total contract price attributable to design or engineering services if the total contract price for the project exceeds the sum of One Hundred Million Dollars ($100,000,000.00).

              (iii)  The contract price or compensation received to restore, repair or replace a utility distribution or transmission system that has been damaged due to ice storm, hurricane, flood, tornado, wind, earthquake or other natural disaster if such restoration, repair or replacement is performed by the entity providing the service at its cost.

          (c)  Sales of materials and services for use in the activities hereby excluded from taxes imposed by this section, except services used in activities excluded pursuant to paragraph (b)(iii) of this subsection, shall be subject to taxes imposed by other sections in this chapter.

     (2)  Upon every person engaging or continuing in this state in the business of contracting or performing a contract of redrilling, or working over, or of drilling an oil well or a gas well, regardless of whether such well is productive or nonproductive, for any valuable consideration, there is hereby levied, assessed and shall be collected a tax equal to three and one-half percent (3-1/2%) of the total contract price or compensation received when such compensation exceeds Ten Thousand Dollars ($10,000.00).

     The words, terms and phrases as used in this subsection shall have the meaning ascribed to them as follows:

     "Operator" -- One who holds all or a fraction of the working or operating rights in an oil or gas lease, and is obligated for the costs of production either as a fee owner or under a lease or any other form of contract creating working or operating rights.

     "Bottom-hole contribution" -- Money or property given to an operator for his use in the drilling of a well on property in which the payor has no interest.  The contribution is payable whether the well is productive or nonproductive.

     "Dry-hole contribution" -- Money or property given to an operator for his use in the drilling of a well on property in which the payor has no interest.  Such contribution is payable only in the event the well is found to be nonproductive.

     "Turnkey drilling contract" -- A contract for the drilling of a well which requires the driller to drill a well and, if commercial production is obtained, to equip the well to such stage that the lessee or operator may turn a valve and the oil will flow into a tank.

     "Total contract price or compensation received" -- As related to oil and gas well contractors, shall include amounts received as compensation for all costs of performing a turnkey drilling contract; amounts received or to be received under assignment as dry-hole money or bottom-hole money; and shall mean and include anything of value received by the contractor as remuneration for services taxable hereunder.  When the kind and amount of compensation received by the contractor is contingent upon production, the taxable amount shall be the total compensation receivable in the event the well is a dry hole.  The taxable amount in the event of production when the contractor receives a production interest of an undetermined value in lieu of a fixed compensation shall be an amount equal to the compensation to the contractor if the well had been a dry hole.

     (3)  When the work to be performed under any contract is sublet by the prime contractor to different persons, or in separate contracts to the same persons, each such subcontractor performing any part of said work shall be liable for the amount of the tax which accrues on account of the work performed by such person when the tax heretofore imposed has not been paid upon the whole contract by the prime contractor.

     When a person engaged in any business on which a tax is levied in Section 27-65-23, also qualifies as a contractor, and contracts with the owner of any project to perform any services in excess of Ten Thousand Dollars ($10,000.00) herein taxed, such person shall pay the tax imposed by this section in lieu of the tax imposed by Section 27-65-23.

     Any person entering into any contract over Seventy-five Thousand Dollars ($75,000.00) as defined in this section shall, before beginning the performance of such contract or contracts, either pay the contractors' tax in advance, together with any use taxes due under Section 27-67-5, or execute and file with the Chairman of the State Tax Commission a good and valid bond in a surety company authorized to do business in this state, or with sufficient sureties to be approved by the commissioner conditioned that all taxes which may accrue to the State of Mississippi under this chapter, or under Section 27-67-5 and Section 27-7-5, will be paid when due.  Such bonds shall be either (a) "job bonds" which guarantee payment when due of the aforesaid taxes resulting from performance of a specified job or activity regardless of date of completion; or (b) "blanket bonds" which guarantee payment when due of the aforesaid taxes resulting from performance of all jobs or activities taxable under this section begun during the period specified therein, regardless of date of completion.  The payments of the taxes due or the execution and filing of a surety bond shall be a condition precedent to the commencing work on any contract taxed hereunder.  Provided, that when any bond is filed in lieu of the prepayment of the tax under this section, that the tax shall be payable monthly on the amount received during the previous month, and any use taxes due shall be payable on or before the twentieth day of the month following the month in which the property is brought into Mississippi.

     Any person failing either to execute any bond herein provided, or to pay the taxes in advance, before beginning the performance of any contract shall be denied the right to perform such contract until he complies with such requirements, and the commissioner is hereby authorized to proceed either under Section 27-65-59, under Section 27-65-61 or by injunction to prevent any activity in the performance of such contract until either a satisfactory bond is executed and filed, or all taxes are paid in advance, and a temporary injunction enjoining the execution of such contract shall be granted without notice by any judge or chancellor now authorized by law to grant injunctions.

     Any person liable for a tax under this section may apply for and obtain a material purchase certificate from the commissioner which may entitle the holder to purchase materials and services that are to become a component part of the structure to be erected or repaired with no tax due.  Provided, that the contractor applying for the contractor's material purchase certificate shall furnish the State Tax Commission a list of all work sublet to others, indicating the amount of work to be performed, and the names and addresses of each subcontractor.

     SECTION 15.  Section 27-65-33, Mississippi Code of 1972, is amended as follows:

     27-65-33.  (1)  Except as otherwise provided in this section, the taxes levied by this chapter shall be due and payable on or before the twentieth day of the month next succeeding the month in which the tax accrues, except as otherwise provided.  Returns and payments placed in the mail must be postmarked by the due date in order to be considered timely filed, except when the due date falls on a weekend or holiday, returns and payments placed in the mail must be postmarked by the first working day following the due date in order to be considered timely filed.  The taxpayer shall make a return showing the gross proceeds of sales or the gross income of the business, and any and all allowable deductions, or exempt sales, and compute the tax due for the period covered.

 * * *

     (2)  A taxpayer required to collect sales taxes under this chapter and having an average monthly sales tax liability of at least Twenty Thousand Dollars ($20,000.00) for the preceding calendar year shall pay to the State Tax Commission on or before June 25, 2003, and on or before the twenty-fifth day of June of each succeeding year thereafter, an amount equal to at least seventy-five percent (75%) of such taxpayer's estimated sales tax liability for the month of June of the current calendar year, or an amount equal to at least seventy-five percent (75%) of the taxpayer's sales tax liability for the month of June of the preceding calendar year.  Payments required to be made under this subsection must be received by the State Tax Commission no later than June 25 in order to be considered timely made.  A taxpayer that fails to comply with the requirements of this subsection may be assessed a penalty in an amount equal to ten percent (10%) of the difference between any amount the taxpayer pays pursuant to this subsection and the taxpayer's actual sales tax liability for the month of June for which the estimated payment was required to be made.  Payments made by a taxpayer under this subsection shall not be considered to be collected for the purposes of any sales tax diversions required by law until the taxpayer files a return for the actual sales taxes collected during the month of June.  This subsection shall not apply to any agency, department or instrumentality of the United States, any agency, department, institution, instrumentality or political subdivision of the State of Mississippi, or any agency, department, institution or instrumentality of any political subdivision of the State of Mississippi.  Payments made pursuant to this subsection for the month of June 2003, shall be deposited by the State Tax Commission into the Budget Contingency Fund created under Section 27-103-301, and payments made pursuant to this subsection for the month of June of 2004, and each succeeding year thereafter, shall be deposited by the State Tax Commission into the State General Fund.

     (3)  All returns shall be sworn to by the taxpayer, if made by an individual, or by the president, vice president, secretary or treasurer of a corporation, or authorized agent, if made on behalf of a corporation.  If made on behalf of a partnership, joint venture, association, trust, estate, or in any other group or combination acting as a unit, any individual delegated by such firm shall swear to the return on behalf of the taxpayer.  The commissioner may prescribe methods by which the taxpayer may swear to his return.

     (4)  The commissioner may promulgate rules and regulations to require or permit filing periods of any duration, in lieu of monthly filing periods, for any taxpayer or group thereof.

     (5)  The commissioner may require the execution and filing by the taxpayer with the commissioner of a good and solvent bond with some surety company authorized to do business in Mississippi as surety thereon in an amount double the aggregate tax liability by such taxpayer for any previous three-month period within the last calendar year or estimated three (3) months' tax liability.  Said bond is to be conditioned for the prompt payment of such taxes as may be due for each such return.

     (6)  The commissioner, for good cause, may grant such reasonable additional time within which to make any return required under the provisions of this chapter as he may deem proper, but the time for filing any return shall not be extended beyond the twentieth of the month next succeeding the regular due date of the return without the imposition of interest at the rate of one percent (1%) per month or fractional part of a month from the time the return was due until the tax is paid.

     (7)  For persistent, willful or recurring failure to make any return and pay the tax shown thereby to be due by the time specified, there shall be added to the amount of tax shown to be due ten percent (10%) damages, or interest at the rate of one percent (1%) per month, or both.

     (8)  Any taxpayer may, upon making application therefor, obtain from the commissioner an extension of time for the payment of taxes due on credit sales until collections thereon have been made.  When such extension is granted, the taxpayer shall thereafter include in each monthly or quarterly report all collections made during the preceding month or quarter, and shall pay the taxes due thereon at the time of filing such report.  Such permission may be revoked or denied at the discretion of the commissioner when, in his opinion, a total sales basis will best reflect the taxable income or expedite examination of the taxpayer's records.

     (9)  Any taxpayer reporting credit sales before collection thereof has been made may take credit on subsequent returns or reports for bad debts actually charged off, if such amounts charged off have previously been included in taxable gross income or taxable gross proceeds of sales, as the case may be, and the tax paid thereon.  However, any amounts subsequently collected on accounts that have been charged off as bad debts shall be included in subsequent reports and the tax shall be paid thereon.

     (10)  In cases where an extension of time has been granted by the commissioner for payment of taxes due on credit sales and the taxpayer thereafter discontinues the business, such taxpayer shall be required to file with the commissioner within ten (10) days, or such further time as the commissioner may direct, from the date of the discontinuance of such business, a special report showing the amounts of any credit sales which have not been included in determining the measure of the tax previously paid and any other information with reference to credit sales as the commissioner may require.  The commissioner shall thereupon investigate the facts with reference to credit sales and the condition of the accounts, and shall determine, from the best evidence available, the value of all open accounts, notes or other evidence of debt arising from credit sales.  The value of all notes, open accounts and other evidence of debt, as thus determined by the commissioner, shall be used in determining the amount of the tax for which such taxpayer shall be liable.  When the amount of the tax shall have been ascertained, the taxpayer shall be required to pay the same within ten (10) days or such further time as the commissioner may allow, notwithstanding the fact that such note or accounts may still remain uncollected.

     SECTION 16.  Section 27-65-75, Mississippi Code of 1972, is amended 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 the municipality and paid to the municipal corporation.  On or before August 15, 1993, and each succeeding month thereafter through July 15, 2008, 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 the municipality and paid to the municipal corporation.  On or before August 15, 2008, and each succeeding month thereafter through July 15, 2019, 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, 27-65-17(6), 27-65-19(3) and 27-65-21, on business activities within a municipal corporation and all of the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(6) on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation.  On or before August 15, 2019, 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 the municipality and paid to the 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 a loan if the distribution received by the municipal corporation is otherwise authorized or required by law to be pledged as security for such a loan.

     In any county having a county seat that is not an incorporated municipality, the distribution provided under this subsection shall be made as though the county seat was an incorporated municipality; however, the distribution to the municipality shall be paid to the county treasury in which the municipality is located, and those funds shall be used for road, bridge and street construction or maintenance in the county.

     (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 highway program created under Section 65-3-97 shall, except as otherwise provided in Section 31-17-127, be deposited into the State Treasury to the credit of the State Highway Fund to be used to fund that 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 through July 15, 1999, 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.  On or before August 15, 1999, and on or before the fifteenth day of each succeeding month, from the total amount of the proceeds of gasoline, diesel fuel or kerosene taxes apportioned by Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an amount equal to twenty-three and one-fourth percent (23-1/4%) of those funds, whichever is the greater amount, shall be deposited in the State Treasury to the credit of the "State Aid Road Fund," created by Section 65-9-17.  Those 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 previously allocated to counties under this section.  Those 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 those bonds has been published, for the first time, as provided by law before March 29, 1981.  From the amount of taxes paid into the special fund under 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 the county for fiscal year 1994.

     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.  Those payments into that 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.

     (7)  On or before August 15, 1992, and each succeeding month thereafter through July 15, 2000, 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) shall be deposited by the commission into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35.  On or before August 15, 2000, and each succeeding month thereafter through July 15, 2008, 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), shall be deposited into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35 until such time that the total amount deposited into the fund during a fiscal year equals Forty-two Million Dollars ($42,000,000.00).  Thereafter, the amounts diverted under this subsection (7) during the fiscal year in excess of Forty-two Million Dollars ($42,000,000.00) shall be deposited into the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and shall not be subject to the percentage appropriation requirements set forth in Section 37-61-33.  On or before August 15, 2008, and each succeeding month thereafter through July 15, 2019, two and six-tenths percent (2.6%) 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) and 27-65-17(6), shall be deposited into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35 until such time that the total amount deposited into the fund during a fiscal year equals Forty-two Million Dollars ($42,000,000.00).  Thereafter, the amounts diverted under this subsection (7) during the fiscal year in excess of Forty-two Million Dollars ($42,000,000.00) shall be deposited into the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and shall not be subject to the percentage appropriation requirements set forth in Section 37-61-33.  On or before August 15, 2019, 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), shall be deposited into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35 until such time that the total amount deposited into the fund during a fiscal year equals Forty-two Million Dollars ($42,000,000.00).  Thereafter, the amounts diverted under this subsection (7) during the fiscal year in excess of Forty-two Million Dollars ($42,000,000.00) shall be deposited into the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and shall not be subject to the percentage appropriation requirements set forth in Section 37-61-33.

     (8)  On or before August 15, 1992, and each succeeding month thereafter through July 15, 2008, 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 under Section 37-61-33.  On or before August 15, 2008, and each succeeding month thereafter through July 15, 2019, ten and one-half percent (10.5%) 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 27-65-17(2) and 27-65-17(6), shall be deposited into the Education Enhancement Fund created under Section 37-61-33.  On or before August 15, 2019, 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 under 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)(a) 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 that is derived from activities held on the Mississippi state fairgrounds complex, shall be paid into a special fund that is created in the State Treasury and shall be expended upon legislative appropriation solely to defray the costs of repairs and renovation at the 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 that is derived from sales by cotton compresses or cotton warehouses and that 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 under Section 69-37-39.

     (15)  Notwithstanding any other provision of this section to the contrary, on or before September 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-19(1)(f) and (g)(i)2, shall be deposited, without diversion, into the Telecommunications Ad Valorem Tax Reduction Fund established in Section 27-38-7.

     (16)  On or before August 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a project as defined in Section 57-30-1 shall be deposited, after all diversions except the diversion provided for in subsection (1) of this section, into the Sales Tax Incentive Fund created in Section 57-30-3.

     (17)  Notwithstanding any other provision of this section to the contrary, on or before April 15, 2002, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under Section 27-65-23 on sales of parking services of parking garages and lots at airports shall be deposited, without diversion, into the special fund created under Section 27-5-101(d).

     (18)  On or before August 15, 2007, and each succeeding month thereafter through July 15, 2008, from the sales tax revenue collected during the preceding month under the provisions of this chapter, Two Million Five Hundred Thousand Dollars ($2,500,000.00) shall be deposited into the Special Funds Transfer Fund created in Section 4 of Chapter 556, Laws of 2003.

     (19)  (a)  On or before August 15, 2005, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and the revenue collected on the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall, except as otherwise provided in this subsection (19), be deposited, after all diversions, into the Redevelopment Project Incentive Fund as created in Section 57-91-9.

          (b)  For a municipality participating in the Economic Redevelopment Act created in Sections 57-91-1 through 57-91-11, the diversion provided for in subsection (1) of this section attributable to the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and attributable to the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall be deposited into the Redevelopment Project Incentive Fund as created in Section 57-91-9, as follows:

              (i)  For the first six (6) years in which payments are made to a developer from the Redevelopment Project Incentive Fund, one hundred percent (100%) of the diversion shall be deposited into the fund;

              (ii)  For the seventh year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, eighty percent (80%) of the diversion shall be deposited into the fund;

              (iii)  For the eighth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, seventy percent (70%) of the diversion shall be deposited into the fund;

              (iv)  For the ninth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, sixty percent (60%) of the diversion shall be deposited into the fund; and

              (v)  For the tenth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, fifty percent (50%) of the funds shall be deposited into the fund.

     (20)  On or before August 15, 2008, and each succeeding month thereafter through July 15, 2019, six and two-tenths percent (6.2%) 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, 27-65-17(6), 27-65-19(3) and 27-65-21, on business activities within a county but outside any municipal corporation, as defined in subsection (1) of this section, shall be allocated for distribution to and paid to the county in which the business activity occurred.  The amount paid to each county under this subsection (19) shall be in addition to any other funds allocated for distribution to the various counties under this section.

     (21)  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.

     (22)  It shall be the duty of the municipal officials of any municipality that expands its limits, or of any community that incorporates as a municipality, to notify the commissioner of that action thirty (30) days before the effective date.  Failure to so notify the commissioner shall cause the municipality to forfeit the revenue that 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 the municipality by withholding the necessary funds from any later payment to be made to the municipality.

     SECTION 17.  Section 27-65-111, Mississippi Code of 1972, is amended as follows:

     [Through June 30, 2007, this section shall read as follows]

     27-65-111.  The exemptions from the provisions of this chapter that are not industrial, agricultural or governmental, or that do not relate to utilities or taxes, or that are not properly classified as one of the exemption classifications of this chapter, shall be confined to persons or property exempted by this section or by the Constitution of the United States or the State of Mississippi.  No exemptions as now provided by any other section, except the classified exemption sections of this chapter set forth herein, shall be valid as against the tax herein levied. Any later exemption from the tax levied hereunder, except as indicated above, shall be provided by amendments to this section.

     No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21.

     The tax levied by this chapter shall not apply to the following:

          (a)  Sales of tangible personal property and services to hospitals or infirmaries owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are subject to and governed by Sections 41-7-123 through 41-7-127.

     Only sales of tangible personal property or services that are ordinary and necessary to the operation of those hospitals and infirmaries are exempted from tax.

          (b)  Sales of daily or weekly newspapers, and periodicals or publications of scientific, literary or educational organizations exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code of 1954, as it exists as of March 31, 1975, and subscription sales of all magazines.

          (c)  Sales of coffins, caskets and other materials used in the preparation of human bodies for burial.

          (d)  Sales of tangible personal property for immediate export to a foreign country.

          (e)  Sales of tangible personal property to an orphanage, old men's or ladies' home, supported wholly or in part by a religious denomination, fraternal nonprofit organization or other nonprofit organization.

          (f)  Sales of tangible personal property, labor or services taxable under Sections 27-65-17, 27-65-19 and 27-65-23, to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual.

          (g)  Sales to elementary and secondary grade schools, junior and senior colleges owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and that are exempt from state income taxation, provided that this exemption does not apply to sales of property or services that are not to be used in the ordinary operation of the school, or that are to be resold to the students or the public.

          (h)  The gross proceeds of retail sales and the use or consumption in this state of drugs and medicines:

              (i)  Prescribed for the treatment of a human being by a person authorized to prescribe the medicines, and dispensed or prescription filled by a registered pharmacist in accordance with law; or

              (ii)  Furnished by a licensed physician, surgeon, dentist or podiatrist to his own patient for treatment of the patient; or

              (iii)  Furnished by a hospital for treatment of any person under the order of a licensed physician, surgeon, dentist or podiatrist; or

              (iv)  Sold to a licensed physician, surgeon, podiatrist, dentist or hospital for the treatment of a human being; or

              (v)  Sold to this state or any political subdivision or municipal corporation thereof, for use in the treatment of a human being or furnished for the treatment of a human being by a medical facility or clinic maintained by this state or any political subdivision or municipal corporation thereof.

     "Medicines," as used in this paragraph (h), shall mean and include any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease and that is commonly recognized as a substance or preparation intended for that use; however, "medicines" do not include any auditory, prosthetic, ophthalmic or ocular device or appliance, any dentures or parts thereof or any artificial limbs or their replacement parts, articles that are in the nature of splints, bandages, pads, compresses, supports, dressings, instruments, apparatus, contrivances, appliances, devices or other mechanical, electronic, optical or physical equipment or article or the component parts and accessories thereof, or any alcoholic beverage or any other drug or medicine not commonly referred to as a prescription drug.

     Notwithstanding the preceding sentence of this paragraph (h), "medicines" as used in this paragraph (h), shall mean and include sutures, whether or not permanently implanted, bone screws, bone pins, pacemakers and other articles permanently implanted in the human body to assist the functioning of any natural organ, artery, vein or limb and which remain or dissolve in the body.

     "Hospital," as used in this paragraph (h), shall have the meaning ascribed to it in Section 41-9-3.

     Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on prescription within the meaning of this paragraph (h).

          (i)  Retail sales of automobiles, trucks and truck-tractors if exported from this state within forty-eight (48) hours and registered and first used in another state.

          (j)  Sales of tangible personal property or services to the Salvation Army and the Muscular Dystrophy Association, Inc.

          (k)  From July 1, 1985, through December 31, 1992, retail sales of "alcohol blended fuel" as that term is defined in Section 75-55-5.  The gasoline-alcohol blend or the straight alcohol eligible for this exemption shall not contain alcohol distilled outside the State of Mississippi.

          (l)  Sales of tangible personal property or services to the Institute for Technology Development.

          (m)  The gross proceeds of retail sales of food and drink for human consumption made through vending machines serviced by full line vendors from and not connected with other taxable businesses.

 * * *

          (n)  Retail sales of food for human consumption purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, from and after October 1, 1987, or from and after the expiration of any waiver granted under federal law, the effect of which waiver is to permit the collection by the state of tax on those retail sales of food for human consumption purchased with food stamps.

          (o)  Sales of cookies for human consumption by the Girl Scouts of America no part of the net earnings from which sales inures to the benefit of any private group or individual.

          (p)  Gifts or sales of tangible personal property or services to public or private nonprofit museums of art.

          (q)  Sales of tangible personal property or services to alumni associations of state-supported colleges or universities.

          (r)  Sales of tangible personal property or services to chapters of the National Association of Junior Auxiliaries, Inc.

          (s)  Sales of tangible personal property or services to domestic violence shelters that qualify for state funding under Sections 93-21-101 through 93-21-113.

          (t)  Sales of tangible personal property or services to the National Multiple Sclerosis Society, Mississippi Chapter.

          (u)  Retail sales of food for human consumption purchased with food instruments issued the Mississippi Band of Choctaw Indians under the Women, Infants and Children Program (WIC) funded by the United States Department of Agriculture.

          (v)  Sales of tangible personal property or services to a private company, as defined in Section 57-61-5, that is making those purchases with proceeds of bonds issued under Section 57-61-1 et seq., the Mississippi Business Investment Act.

          (w)  The gross collections from the operation of self-service, coin-operated car washing equipment and sales of the service of washing motor vehicles with portable high-pressure washing equipment on the premises of the customer.

          (x)  Sales of tangible personal property or services to the Mississippi Technology Alliance.

     [From and after July 1, 2007, this section shall read as follows:]

     27-65-111.  The exemptions from the provisions of this chapter that are not industrial, agricultural or governmental, or that do not relate to utilities or taxes, or that are not properly classified as one of the exemption classifications of this chapter, shall be confined to persons or property exempted by this section or by the Constitution of the United States or the State of Mississippi.  No exemptions as now provided by any other section, except the classified exemption sections of this chapter set forth herein, shall be valid as against the tax herein levied. Any later exemption from the tax levied hereunder, except as indicated above, shall be provided by amendments to this section.

     No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21.

     The tax levied by this chapter shall not apply to the following:

          (a)  Sales of tangible personal property and services to hospitals or infirmaries owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are subject to and governed by Sections 41-7-123 through 41-7-127.

     Only sales of tangible personal property or services that are ordinary and necessary to the operation of those hospitals and infirmaries are exempted from tax.

          (b)  Sales of daily or weekly newspapers, and periodicals or publications of scientific, literary or educational organizations exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code of 1954, as it exists as of March 31, 1975, and subscription sales of all magazines.

          (c)  Sales of coffins, caskets and other materials used in the preparation of human bodies for burial.

          (d)  Sales of tangible personal property for immediate export to a foreign country.

          (e)  Sales of tangible personal property to an orphanage, old men's or ladies' home, supported wholly or in part by a religious denomination, fraternal nonprofit organization or other nonprofit organization.

          (f)  Sales of tangible personal property, labor or services taxable under Sections 27-65-17, 27-65-19 and 27-65-23, to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual.

          (g)  Sales to elementary and secondary grade schools, junior and senior colleges owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are exempt from state income taxation, provided that this exemption does not apply to sales of property or services that are not to be used in the ordinary operation of the school, or that are to be resold to the students or the public.

          (h)  The gross proceeds of retail sales and the use or consumption in this state of drugs and medicines:

              (i)  Prescribed for the treatment of a human being by a person authorized to prescribe the medicines, and dispensed or prescription filled by a registered pharmacist in accordance with law; or

              (ii)  Furnished by a licensed physician, surgeon, dentist or podiatrist to his own patient for treatment of the patient; or

              (iii)  Furnished by a hospital for treatment of any person under the order of a licensed physician, surgeon, dentist or podiatrist; or

              (iv)  Sold to a licensed physician, surgeon, podiatrist, dentist or hospital for the treatment of a human being; or

              (v)  Sold to this state or any political subdivision or municipal corporation thereof, for use in the treatment of a human being or furnished for the treatment of a human being by a medical facility or clinic maintained by this state or any political subdivision or municipal corporation thereof.

     "Medicines," as used in this paragraph (h), shall mean and include any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease and that is commonly recognized as a substance or preparation intended for that use; however, "medicines" do not include any auditory, prosthetic, ophthalmic or ocular device or appliance, any dentures or parts thereof or any artificial limbs or their replacement parts, articles that are in the nature of splints, bandages, pads, compresses, supports, dressings, instruments, apparatus, contrivances, appliances, devices or other mechanical, electronic, optical or physical equipment or article or the component parts and accessories thereof, or any alcoholic beverage or any other drug or medicine not commonly referred to as a prescription drug.

     Notwithstanding the preceding sentence of this paragraph (h), "medicines" as used in this paragraph (h), shall mean and include sutures, whether or not permanently implanted, bone screws, bone pins, pacemakers and other articles permanently implanted in the human body to assist the functioning of any natural organ, artery, vein or limb and which remain or dissolve in the body.

     "Hospital," as used in this paragraph (h), shall have the meaning ascribed to it in Section 41-9-3.

     Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on prescription within the meaning of this paragraph (h).

          (i)  Retail sales of automobiles, trucks and truck-tractors if exported from this state within forty-eight (48) hours and registered and first used in another state.

          (j)  Sales of tangible personal property or services to the Salvation Army and the Muscular Dystrophy Association, Inc.

          (k)  From July 1, 1985, through December 31, 1992, retail sales of "alcohol blended fuel" as that term is defined in Section 75-55-5.  The gasoline-alcohol blend or the straight alcohol eligible for this exemption shall not contain alcohol distilled outside the State of Mississippi.

          (l)  Sales of tangible personal property or services to the Institute for Technology Development.

          (m)  The gross proceeds of retail sales of food and drink for human consumption made through vending machines serviced by full line vendors from and not connected with other taxable businesses.

          (n)  The gross proceeds of sales of motor fuel.

          (o)  Retail sales of food for human consumption purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, from and after October 1, 1987, or from and after the expiration of any waiver granted under federal law, the effect of which waiver is to permit the collection by the state of tax on those retail sales of food for human consumption purchased with food stamps.

          (p)  Sales of cookies for human consumption by the Girl Scouts of America no part of the net earnings from which sales inures to the benefit of any private group or individual.

          (q)  Gifts or sales of tangible personal property or services to public or private nonprofit museums of art.

          (r)  Sales of tangible personal property or services to alumni associations of state-supported colleges or universities.

          (s)  Sales of tangible personal property or services to chapters of the National Association of Junior Auxiliaries, Inc.

          (t)  Sales of tangible personal property or services to domestic violence shelters that qualify for state funding under Sections 93-21-101 through 93-21-113.

          (u)  Sales of tangible personal property or services to the National Multiple Sclerosis Society, Mississippi Chapter.

          (v)  Retail sales of food for human consumption purchased with food instruments issued the Mississippi Band of Choctaw Indians under the Women, Infants and Children Program (WIC) funded by the United States Department of Agriculture.

          (w)  Sales of tangible personal property or services to a private company, as defined in Section 57-61-5, that is making those purchases with proceeds of bonds issued under Section 57-61-1 et seq., the Mississippi Business Investment Act.

          (x)  The gross collections from the operation of self-service, coin-operated car washing equipment and sales of the service of washing motor vehicles with portable high-pressure washing equipment on the premises of the customer.

          (y)  Sales of tangible personal property or services to the Mississippi Technology Alliance.

     SECTION 18.  Section 27-67-5, Mississippi Code of 1972, is amended as follows:

     27-67-5.  There is * * * levied, assessed and shall be collected from every person a tax for the privilege of using, storing or consuming, within this state, any tangible personal property possession of which is acquired in any manner.

          (a)  The use tax * * * imposed and levied by this section shall be collected at the same rates as imposed under Section 27-65-24, and Sections 27-65-17, 27-65-18, 27-65-19 and 27-65-25 computed on the purchase or sales price, or value, as defined in this article.

          (b)  From and after July 1, 2006, items taxed in paragraph (a) of this section shall be taxed an additional one percent (1%); however, this additional tax shall not apply to private carriers of passengers and light carriers of property, as defined in Section 27-51-101.

          (c)  It shall be the duty of the tax collectors of the several counties, or the State Tax Commissioner, as the case may be, to collect, remit and account for the tax on the use of all vehicles licensed or registered by the State of Mississippi for the first time, except when the Mississippi use tax was collected by an authorized out-of-state dealer at the time of purchase, or when the use thereof was exempt by Section 27-67-7.  The tax collector or the State Tax Commissioner shall give to the person registering the vehicle a receipt in a form prescribed and furnished by the State Tax Commission for the amount of tax collected.

     The tax collector or State Tax Commissioner is expressly prohibited from issuing a license tag to any applicant without collecting the tax levied by this article, unless positive proof is filed, together with the application for the license tag, that the Mississippi tax has been paid, or that the sale was exempt by Section 27-67-7.

     Persons not engaging and continuing in business so as to be registered for payment of sales and/or use tax may pay use tax due on the first use of boats, airplanes, equipment or other tangible personal property to county tax collectors who are * * * authorized to accept those payments on behalf of the commissioner. Receipts for all those payments shall be given to taxpayers in a form prescribed and furnished by the State Tax Commission.

     County tax collectors and the State Tax Commissioner shall be liable for the tax they are required * * * to collect, and taxes that are in fact collected under authority of this section; and failure to properly collect or maintain proper records shall not relieve them of liability for payment to the commissioner. Deficiencies in collection or payment shall be assessed against the tax collector or State Tax Commissioner in the same manner and subject to the same penalties and provisions for appeal as are deficiencies assessed against taxpayers.

     A dealer authorized to collect and remit the tax to the State Tax Commission shall give to the purchaser a receipt for the payment of the tax, in a form prescribed and furnished by the commissioner, which shall serve as proof of payment to the tax collector of the county in which the license is to be issued.

     Each tax collector of the several counties shall, on or before the twentieth day of each month, file a report with and pay to the commissioner all funds collected under the provisions of this article, less a commission of five percent (5%), which shall be retained by the tax collector as a commission for collecting that tax and be deposited in the county general fund.  The report required to be filed shall cover all collections made during the calendar month next preceding the date on which the report is due and filed.

     Any error in the report and remittance to the commissioner may be adjusted on a subsequent report.  If the error was in the collection by the tax collector, it shall be adjusted through the tax collector with the taxpayer before credit is allowed by the commissioner.

     All information relating to the collection of use tax by tax collectors and such records as the commissioner may require shall be preserved in the tax collector's office for a period of three (3) years for audit by the commissioner.

     SECTION 19.  Section 27-67-31, Mississippi Code of 1972, is amended as follows:

     27-67-31.  All administrative provisions of the sales tax law, and amendments thereto, including those that fix damages, penalties and interest for failure to comply with the provisions of the sales tax law, and all other requirements and duties imposed upon the taxpayer, shall apply to all persons liable for use taxes under the provisions of this article.  The commissioner shall exercise all power and authority and perform all duties with respect to taxpayers under this article as are provided in the sales tax law, except where there is conflict, then the provisions of this article shall control.

     The commissioner may require transportation companies to permit the examination of waybills, freight bills, or other documents covering shipments of tangible personal property into this state.

     On or before the fifteenth day of each month, the amount received from taxes, damages and interest under the provisions of this article during the preceding month shall be paid and distributed as follows:

          (a)  On or before July 15, 1994, through July 15, 2000, and each succeeding month thereafter, two and two hundred sixty-six one-thousandths percent (2.266%) of the total use tax revenue collected during the preceding month under the provisions of this article shall be deposited in the School Ad Valorem Tax Reduction Fund created under Section 37-61-35.  On or before August 15, 2000, and each succeeding month thereafter, two and two hundred sixty-six one-thousandths percent (2.266%) of the total use tax revenue collected during the preceding month under the provisions of this chapter shall be deposited into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35 until such time that the total amount deposited into the fund during a fiscal year equals Four Million Dollars ($4,000,000.00).  Thereafter, the amounts diverted under this paragraph (a) during the fiscal year in excess of Four Million Dollars ($4,000,000.00) shall be deposited into the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and shall not be subject to the percentage appropriation requirements set forth in Section 37-61-33.

          (b)  On or before July 15, 1994, and each succeeding month thereafter, nine and seventy-three one-thousandths percent (9.073%) of the total use tax revenue collected during the preceding month under the provisions of this article shall be deposited into the Education Enhancement Fund created under Section 37-61-33.

          (c)  On or before July 15, 1997, and on or before the fifteenth day of each succeeding month thereafter, the revenue collected under the provisions of this article imposed and levied as a result of Section 27-65-17(2)(a) 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 into the Motor Vehicle Ad Valorem Tax Reduction Fund created under Section 27-51-105.

          (d)  On or before July 15, 1997, and on or before the fifteenth day of each succeeding month thereafter and after the deposits required by paragraphs (a) and (b) of this section are made, the remaining revenue collected under the provisions of this article imposed and levied as a result of Section 27-65-17(1) 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 into the Motor Vehicle Ad Valorem Tax Reduction Fund created under Section 27-51-105.

          (e)  The remainder of the amount received from taxes, damages and interest under the provisions of this article shall be paid into the General Fund of the State Treasury by the commissioner.

     SECTION 20.  Section 27-69-13, Mississippi Code of 1972, is amended as follows:

     27-69-13.  There is * * * imposed, levied and assessed, to be collected and paid as hereinafter provided in this chapter, an excise tax on each person or dealer in cigarettes, cigars, stogies, snuff, chewing tobacco, and smoking tobacco, or substitutes therefor, upon the sale, use, consumption, handling or distribution in the State of Mississippi, as follows:

          (a)  (i)  On cigarettes, the rate of tax shall be Eighteen-twentieths of One Cent (18/20 of 1¢) on each cigarette sold with a maximum length of one hundred twenty (120) millimeters; any cigarette in excess of this length shall be taxed as if it were two (2) or more cigarettes.  * * * However, if the federal tax rate on cigarettes in effect on June 1, 1985, is reduced, then the rate as provided in this section shall be increased by the amount of the federal tax reduction.  Such tax increase shall take effect on the first day of the month following the effective date of such reduction in the federal tax rate.

              (ii)  In addition to the excise tax levied by paragraph (a)(i) of this subsection, there is levied, imposed and assessed an excise tax of Eighteen-twentieths of One Cent (18/20 of 1¢) on each cigarette sold with a maximum length of one hundred twenty (120) millimeters; any cigarette in excess of this length shall be taxed as if it were two (2) or more cigarettes.

          (b)  On cigars, cheroots, stogies, snuff, chewing and smoking tobacco and all other tobacco products except cigarettes, the rate of tax shall be fifteen percent (15%) of the manufacturer's list price.

     No stamp evidencing the tax * * * levied by this section on cigarettes shall be of a denomination of less than One Cent (1¢), and whenever the tax computed at the rates * * * prescribed in this section on cigarettes shall be a specified amount, plus a fractional part of One Cent (1¢), the package shall be stamped for the next full cent * * *.

     Every wholesaler shall purchase stamps as provided in this chapter, and affix the same to all packages of cigarettes handled by him as * * * provided in this section.

     The * * * tax levied by this section is levied upon the sale, use, gift, possession or consumption of tobacco within the State of Mississippi, and the impact of the tax levied by this chapter is * * * declared to be on the vendee, user, consumer or possessor of tobacco in this state; and when the tax is paid by any other person, the payment shall be considered as an advance payment and shall thereafter be added to the price of the tobacco and recovered from the ultimate consumer or user.

     SECTION 21.  (1)  Except as otherwise provided in this section, due to the severe budget concerns during the current fiscal year, the following provisions shall apply through June 30, 2006:

          (a)  No state agency is authorized to purchase any equipment as defined in Section 31-7-1.

          (b)  No state agency is authorized to hire any new employees, or promote, reclassify, reallocate or realign a pay grade with regard to any of its employees or job positions.  The State Personnel Board shall immediately suspend all hirings, promotions, reclassifications, reallocations and pay grade realignments of employees or job positions.

     (2)  If a state agency determines that it is necessary to take any action that otherwise would be prohibited under subsection (1) of this section before July 1, 2006, the agency may appeal to the State Fiscal Officer.  The State Fiscal Officer shall immediately notify the Joint Legislative Budget Committee of the state agency's appeal and the date upon which the State Fiscal Officer will hold a hearing on the appeal.  The State Fiscal Officer shall grant a hearing to the state agency on its appeal within fifteen (15) days after notice of the appeal is given to the State Fiscal Officer; however, if the Department of Mental Health or the State Veterans Affairs Board is seeking to hire new professional or paraprofessional employees who work directly with patients or clients involved with department or board facilities and programs as replacements for professional or paraprofessional employees who leave employment with the department or board, then the State Fiscal Officer shall grant a hearing to the department or board on its appeal within three (3) days after notice of the appeal is given to the State Fiscal Officer.  The hearing shall not be a public meeting; however, any member of the Joint Legislative Budget Committee may attend the hearing.  At the hearing, the state agency must demonstrate to the satisfaction of the State Fiscal Officer that a serious emergency exists of such magnitude that the essential mission of the agency cannot be carried out without taking an action that otherwise would be prohibited under subsection (1) of this section.  In making his decision, the State Fiscal Officer may consider the source of funds to be used by the state agency in taking that action.  If the state agency makes the demonstration required by this subsection, the State Fiscal Officer, in his discretion, may authorize the agency to take the action sought by the agency that otherwise would be prohibited under subsection (1) of this section.

     (3)  A state agency may take any action that otherwise would be prohibited under subsection (1)(b) of this section if all of the funds to be expended to fund that action are federal funds.

     (4)  For purposes of this section, the term "state agency" means any agency, board, commission or department of the State of Mississippi.

     SECTION 22.  Section 25-9-116, Mississippi Code of 1972, is amended as follows:

     [Through June 30, 2006, this section will read as follows:]

     25-9-116.   * * * The State Personnel Board shall institute an immediate suspension of all hirings, promotions, reclassifications, reallocations and pay grade realignments, as provided in Section 1 of this act.

     [From and after July 1, 2006, this section will read as follows:]

     25-9-116.  Upon recommendation of the State Fiscal Officer, after a determination that the state revenue and expenditure requires such action the State Personnel Board may institute an immediate suspension of all hirings, promotions, reclassifications, reallocations and pay grade realignments until such time as the State Fiscal Officer shall recommend that such action is no longer required.

     SECTION 23.  (1)  For the purposes of this section, the term "state agency" means an agency, board, commission or department of the State of Mississippi.

     (2)  For the period beginning on July 1, 2006, and through June 30, 2007, unless specifically authorized in the appropriation bill for a state agency, the state agency is not authorized to expend funds to do any of the following:

          (a)  Hire any new employees, or promote, reclassify, reallocate or realign a pay grade with regard to any of its employees or job positions;

          (b)  Purchase any equipment or furniture as defined in Section 31-7-1, or any computer or telecommunications equipment; and even if authorized in the appropriation bill, a state agency is not authorized to expend funds to purchase any sports-utility vehicle unless the purchase is approved by the Department of Finance and Administration;

          (c)  Contract with any person or entity for professional services or consulting services, or make payments under any such contract;

          (d)  Travel outside of the State of Mississippi;

          (e)  Publish or distribute any annual reports or other publications;

          (f)  Conduct public relations activities regarding the functions, programs or services of the state agency;

          (g)  Advertise the functions, programs or services of the state agency; however, the Mississippi Development Authority is authorized to expend funds for advertising to carry out the purposes of key programs administered by the authority; or

          (h)  Purchase cellular telephones for use of employees of the state agency, contract or enter an agreement with any person or entity to provide cellular telephone service for employees of the state agency, or make payments under any such contract or agreement; however, the prohibition in this paragraph (h) shall not apply to the Governor's Office, the Mississippi Development Authority or the law enforcement personnel of any state agency.

     SECTION 24.  Section 7-7-211, Mississippi Code of 1972, is amended as follows:

     7-7-211.  The department shall have the power and it shall be its duty:

          (a)  To identify and define for all public offices of the state and its subdivisions generally accepted accounting principles as promulgated by nationally recognized professional organizations and to consult with the State Fiscal Officer in the prescription and implementation of accounting rules and regulations;

          (b)  To prescribe, for all public offices of regional and local subdivisions of the state, systems of accounting, budgeting and reporting financial facts relating to those offices in conformity with legal requirements and with generally accepted accounting principles as promulgated by nationally recognized professional organizations; to assist such subdivisions in need of assistance in the installation of such systems; to revise such systems when deemed necessary, and to report to the Legislature at periodic times the extent to which each office is maintaining such systems, along with such recommendations to the Legislature for improvement as seem desirable;

          (c)  To study and analyze existing managerial policies, methods, procedures, duties and services of the various state departments and institutions upon written request of the Governor, the Legislature or any committee or other body empowered by the Legislature to make such request to determine whether and where operations can be eliminated, combined, simplified and improved;

          (d)  To postaudit each year and, when deemed necessary, preaudit and investigate the financial affairs of each and every department, institution, board, commission or other agency of each branch of state government, as part of the publication of a comprehensive annual financial report for the State of Mississippi.  In complying with the requirements of this subsection, the department shall have the authority to conduct all necessary audit procedures on an interim and year-end basis;

          (e)  To postaudit and, when deemed necessary, preaudit and investigate separately the financial affairs of (i) the offices, boards and commissions of county governments and any departments and institutions thereof and therein; (ii) public school districts, departments of education and junior college districts; and (iii) any other local offices or agencies which share revenues derived from taxes or fees imposed by the State Legislature or receive grants from revenues collected by governmental divisions of the state; the cost of such audits, investigations or other services to be paid as follows:  Such part shall be paid by the state from appropriations made by the Legislature for the operation of the State Department of Audit as may exceed the sum of Thirty-two Dollars and Fifty Cents ($32.50) per hour for the services of each staff person engaged in performing the audit or other service, which sum shall be paid by the county, district, department, institution or other agency audited out of its general fund or any other available funds from which such payment is not prohibited by law;

          (f)  To postaudit and, when deemed necessary, preaudit and investigate the financial affairs of the levee boards; agencies created by the Legislature or by executive order of the Governor; profit or nonprofit business entities administering programs financed by funds flowing through the State Treasury or through any of the agencies of the state, or its subdivisions; and all other public bodies supported by funds derived in part or wholly from public funds, except municipalities which annually submit an audit prepared by a qualified certified public accountant using methods and procedures prescribed by the department;

          (g)  To make written demand, when necessary, for the recovery of any amounts representing public funds improperly withheld, misappropriated and/or otherwise illegally expended by an officer, employee or administrative body of any state, county or other public office, and/or for the recovery of the value of any public property disposed of in an unlawful manner by a public officer, employee or administrative body, such demands to be made (i) upon the person or persons liable for such amounts and upon the surety on official bond thereof, and/or (ii) upon any individual, partnership, corporation or association to whom the illegal expenditure was made or with whom the unlawful disposition of public property was made, if such individual, partnership, corporation or association knew or had reason to know through the exercising of reasonable diligence that the expenditure was illegal or the disposition unlawful.  Such demand shall be premised on competent evidence, which shall include at least one (1) of the following:  (i) sworn statements, (ii) written documentation, (iii) physical evidence, or (iv) reports and findings of government or other law enforcement agencies.  Other provisions notwithstanding, a demand letter issued pursuant to this subsection shall remain confidential by the State Auditor until the individual against whom the demand letter is being filed has been served with a copy of such demand letter.  If, however, such individual cannot be notified within fifteen (15) days using reasonable means and due diligence, such notification shall be made to the individual's bonding company, if he or she is bonded.  Each such demand shall be paid into the proper treasury of the state, county or other public body through the office of the department in the amount demanded within thirty (30) days from the date thereof, together with interest thereon in the sum of one percent (1%) per month from the date such amount or amounts were improperly withheld, misappropriated and/or otherwise illegally expended.  In the event, however, such person or persons or such surety shall refuse, neglect or otherwise fail to pay the amount demanded and the interest due thereon within the allotted thirty (30) days, the State Auditor shall have the authority and it shall be his duty to institute suit, and the Attorney General shall prosecute the same in any court of the state to the end that there shall be recovered the total of such amounts from the person or persons and surety on official bond named therein; and the amounts so recovered shall be paid into the proper treasury of the state, county or other public body through the State Auditor.  In any case where written demand is issued to a surety on the official bond of such person or persons and the surety refuses, neglects or otherwise fails within one hundred twenty (120) days to either pay the amount demanded and the interest due thereon or to give the State Auditor a written response with specific reasons for nonpayment, then the surety shall be subject to a civil penalty in an amount of twelve percent (12%) of the bond, not to exceed Ten Thousand Dollars ($10,000.00), to be deposited into the State General Fund;

          (h)  To investigate any alleged or suspected violation of the laws of the state by any officer or employee of the state, county or other public office in the purchase, sale or the use of any supplies, services, equipment or other property belonging thereto; and in such investigation to do any and all things necessary to procure evidence sufficient either to prove or disprove the existence of such alleged or suspected violations.  The Department of Investigation of the State Department of Audit may investigate, for the purpose of prosecution, any suspected criminal violation of the provisions of this chapter.  For the purpose of administration and enforcement of this chapter, the enforcement employees of the Department of Investigation of the State Department of Audit shall be employees of the State Police and from and after July 1, 2006, shall have the powers of a law enforcement officer of this state, and shall be empowered to make arrests and to serve and execute search warrants and other valid legal process anywhere within the State of Mississippi.  All enforcement employees of the Department of Investigation of the State Department of Audit hired on or after July 1, 1993, shall be required to complete the Law Enforcement Officers Training Program and shall meet the standards of the program;

          (i)  To issue subpoenas, with the approval of, and returnable to, a judge of a chancery or circuit court, in termtime or in vacation, to examine the records, documents or other evidence of persons, firms, corporations or any other entities insofar as such records, documents or other evidence relate to dealings with any state, county or other public entity.  The circuit or chancery judge must serve the county in which the records, documents or other evidence is located; or where all or part of the transaction or transactions occurred which are the subject of the subpoena;

          (j)  In any instances in which the State Auditor is or shall be authorized or required to examine or audit, whether preaudit or postaudit, any books, ledgers, accounts or other records of the affairs of any public hospital owned or owned and operated by one or more political subdivisions or parts thereof or any combination thereof, or any school district, including activity funds thereof, it shall be sufficient compliance therewith, in the discretion of the State Auditor, that such examination or audit be made from the report of any audit or other examination certified by a certified public accountant and prepared by or under the supervision of such certified public accountant.  Such audits shall be made in accordance with generally accepted standards of auditing, with the use of an audit program prepared by the State Auditor, and final reports of such audits shall conform to the format prescribed by the State Auditor.  All files, working papers, notes, correspondence and all other data compiled during the course of the audit shall be  available, without cost, to the State Auditor for examination and abstracting during the normal business hours of any business day. The expense of such certified reports shall be borne by the respective hospital, or any available school district funds other than minimum program funds, subject to examination or audit.  The State Auditor shall not be bound by such certified reports and may, in his or their discretion, conduct such examination or audit from the books, ledgers, accounts or other records involved as may be appropriate and authorized by law;

          (k)  The State Auditor shall have the authority to contract with qualified public accounting firms to perform selected audits required in subsections (d), (e) and (f) of this section, if funds are made available for such contracts by the Legislature, or if funds are available from the governmental entity covered by subsections (d), (e) and (f).  Such audits shall be made in accordance with generally accepted standards of auditing, with the use of an audit program prepared by the State Auditor, and final reports of such audits shall conform to the format prescribed by the State Auditor.  All files, working papers, notes, correspondence and all other data compiled during the course of the audit shall be available, without cost, to the State Auditor for examination and abstracting during the normal business hours of any business day;

          (l)  The State Auditor shall have the authority to establish training courses and programs for the personnel of the various state and local governmental entities under the jurisdiction of the Office of the State Auditor.  The training courses and programs shall include, but not be limited to, topics on internal control of funds, property and equipment control and inventory, governmental accounting and financial reporting, and internal auditing.  The State Auditor is authorized to charge a fee from the participants of these courses and programs, which fee shall be deposited into the Department of Audit Special Fund. State and local governmental entities are authorized to pay such fee and any travel expenses out of their general funds or any other available funds from which such payment is not prohibited by law;

          (m)  Upon written request by the Governor or any member of the State Legislature, the State Auditor may audit any state funds and/or state and federal funds received by any nonprofit corporation incorporated under the laws of this state;

          (n)  To conduct performance audits of personal or professional service contracts by state agencies on a random sampling basis, or upon request of the State Personal Service Contract Review Board under Section 25-9-120(3);

          (o)  To annually postaudit the Chickasawhay Natural Gas District.  The Department of Audit shall charge the Chickasawhay Natural Gas District, audited by the authority of this paragraph, the sum of Thirty-two Dollars and Fifty Cents ($32.50) per hour for each hour of staff time devoted to the auditing of the district.  The Chickasawhay Natural Gas District shall pay for the audit fees from any sums available to the district for its general operations.

     SECTION 25.  Section 7-7-213, Mississippi Code of 1972, is amended as follows:

     7-7-213.  The costs of audits and other services required by Sections 7-7-201 through 7-7-215, except for those audits and services authorized by Section 7-7-211(k) which shall be funded by appropriations made by the Legislature from such funds as it deems appropriate, shall be paid from a special fund that is created in the State Treasury, to be known as the State Department of Audit Fund, into which will be paid each year the amounts received for performing audits required by law.  Except as provided in Section 7-7-211(d) * * *, the amounts to be charged for performing audits and other services shall be the actual cost, not to exceed  Thirty-two Dollars and Fifty Cents ($32.50) per hour for the services of each staff person engaged in performing the audit or other service.  In the event of failure by any unit of government to pay the charges authorized herein, the Department of Audit shall notify the State Fiscal Officer, and upon a determination that the charges are substantially correct, the State Fiscal Officer shall notify the defaulting unit of his determination.  If payment is not made within thirty (30) days after such notification, the State Fiscal Officer shall notify the State Treasurer and Department of Public Accounts that no further warrants are to be issued to the defaulting unit until the deficiency is paid.

     The cost of any service by the department not required of it under the provisions of the cited sections but made necessary by the willful fault or negligence of an officer or employee of any public office of the state shall be recovered (i) from such officer or employee and/or surety on official bond thereof and/or (ii) from the individual, partnership, corporation or association involved, in the same manner and under the same terms, when necessary, as provided the department for recovering public funds in Section 7-7-211.

     The State Auditor shall deliver a copy of any audit of the fiscal and financial affairs of a county to the chancery clerk of such county and shall deliver a notice stating that a copy of such audit is on file in the chancery clerk's office to some newspaper published in the county to be published.  If no newspaper is published in the county, a copy of such notice shall be delivered to a newspaper having a general circulation therein.

     SECTION 26.  Section 27-15-83, Mississippi Code of 1972, is brought forward as follows:

     27-15-83.  (1)  Upon each foreign insurance company licensed as a single line company defined under Section 83-19-1, the privilege tax is as follows:

          (a)  Fire and Allied Lines and/or

Industrial Fire.......................... $200.00

(b)  Casualty/Liability....................... $200.00

(c)  Fidelity and/or Surety................... $200.00

(d)  Workers' Compensation.................... $200.00

(e)  Boiler and Machinery..................... $200.00

(f)  Plate Glass.............................. $200.00

(g)  Aircraft................................. $200.00

(h)  Inland Marine and/or Ocean Marine........ $200.00

          (i)  Automobile Physical Damage/Automobile

Liability................................ $200.00

(j)  Homeowners/Farmowners.................... $200.00

(k)  Guaranty/Mortgage Guaranty............... $200.00

(l)  Trip Accident and Baggage................ $200.00

(m)  Legal.................................... $200.00

          (n)  Life and/or Accident and Health;

              Credit Life, Accident and Health;

              Industrial Life, Accident and Health;

and Variable Contracts................... $200.00

(o)  Title.................................... $200.00

(p)  Fraternal................................ $ 50.00

     (2)  For any combination of classifications of a foreign insurance company, the privilege tax for a multiple line company shall be Three Hundred Fifty Dollars ($350.00).

     (3)  Any stock, mutual, reciprocal or reinsurance company shall pay the appropriate privilege tax for each line of insurance the company is licensed to underwrite.

     (4)  For each domestic insurance which has its home office located in Mississippi, the privilege tax shall be one-half (1/2) of the fees listed in this section.

     (5)  Each insurance company or association which amends its privilege license shall pay a fee of Twenty-five Dollars ($25.00).

     SECTION 27.  Section 27-15-85, Mississippi Code of 1972, is brought forward as follows:

27-15-85.  (1)  Upon each incorporated insurance agency licensed to represent fire, casualty, liability, fidelity, surety, guaranty and inland marine insurance companies in municipalities of Classes 1, 2, 3 and 4... $100.00.

Upon each such incorporated insurance agency in municipalities of Classes 5, 6, 7 and elsewhere in the

state.................................................. $ 50.00.

     The license issued to such incorporated agency shall specify the type, types or kinds of insurance that such incorporated agency is licensed and qualified to transact.  Every person acting as agent or solicitor for any such agency shall qualify under the provisions of Laws, 2001, Chapter 510; and no person shall be exempt from the privilege tax placed on insurance agents by this section by reason of the fact that he is a stockholder or officer in any such incorporated agency, or by reason of the fact that he represents such an agency, but every agent or solicitor, except two (2) executive officers of such agency, shall pay the privilege tax herein imposed.

(2)  Upon each incorporated general agent, as defined in Section 83-17-1....................................................... $100.00.

(3)  Upon each incorporated "supervising general agent" for life, health and accident insurers as defined in Section

83-17-1................................................ $100.00.

     The privilege licenses issued under this section to "supervising general agents" shall not constitute authority to solicit business within the State of Mississippi, and shall be renewed annually at the time and in the manner prescribed by Section 83-17-25 on application forms which shall be furnished by the Commissioner of Insurance and shall show the name of the insurance company or companies such "supervising general agent" represents, and other additional information as may be required by the Commissioner of Insurance.

     SECTION 28.  Section 27-15-87, Mississippi Code of 1972, is brought forward as follows:

27-15-87.  Upon each fire, casualty, liability, fidelity, surety, guaranty and/or inland marine agent or solicitor when the total commission of the agency is in excess of Three Thousand Dollars ($3,000.00) annually.......... $50.00.

Upon each such agent or solicitor when the total commission of the agency does not exceed Three Thousand Dollars ($3,000.00) annually.. $25.00.

     Every agent or insurance solicitor for an agent, connected with any insurance agent, firm or corporation who solicits the sale of any of the above-named insurance, whether stock, mutual or reciprocal insurance carriers, directly or indirectly, shall be liable for the above tax.

     Whenever a solicitor is employed by any such agent or agency to solicit business for its account, to be placed in the companies represented by said agent or agency, such agent or agency shall make application as provided for in Section 83-17-75(6), andSection 83-17-217, Mississippi Code of 1972, and pay the above tax on such solicitor and such license issued to him shall authorize such solicitor to solicit insurance for the agency.

     At the time of the purchase of the license herein provided, every person, firm, corporation or solicitor shall file an affidavit with the Insurance Commissioner of the state stating the amount of commissions earned by said agency (whether such agency be conducted by a person, firm or corporation) during the past year, and this affidavit shall be filed at least once each year, and in the event that the commissioner has reason to believe that such affidavit is incorrect, then in such event, said Insurance Commissioner may refuse to accept said affidavit and demand further proof as to the clarification of said person, firm or corporation applying for said license.  If the applicant for said license was not engaged in the insurance business during the year preceding the application for said license, then, in such event, the affidavit shall show said fact, and the Insurance Commissioner shall issue to said applicant a yearly license at and for the sum of Twenty-five Dollars ($25.00) as above provided.

     SECTION 29.  Section 27-15-93, Mississippi Code of 1972, is brought forward as follows:

27-15-93.  (1)  Upon each incorporated insurance agency licensed to represent life, health or accident insurance

companies.............................................. $ 25.00.

     The license issued to such incorporated agency shall specify the type, types or kinds of insurance that such incorporated agency is licensed and qualified to transact.  Every person acting as agent for any such agency shall qualify under the provisions of Laws, 2001, Chapter 510; and no person shall be exempt from the privilege tax placed on insurance agents by this section by reason of the fact that he is a stockholder or officer in any such incorporated agency, or by reason of the fact that he represents such an agency, but every agent shall pay the privilege tax herein imposed.

(2)  Upon each incorporated supervising general agent, as defined in Section 83-17-1................................................... $100.00.

(3)  Upon each life insurance agent engaged exclusively in writing life insurance....................................................... $ 20.00.

     And any life insurance company that knowingly issues a policy where the application has been submitted to it by an agent or other person who has not paid all the taxes herein imposed upon each agent or person shall be liable for and pay to the state the sum of Fifty Dollars ($50.00) for each policy written.

     Provided, that any insurance agent who has paid the tax required as a life insurance agent, shall be permitted to write health, accident and industrial insurance without the payment of additional tax.

     SECTION 30.  Section 27-15-95, Mississippi Code of 1972, is brought forward as follows:

27-15-95.  Upon each person, other than an incorporated insurance agency taxed under Section 27-15-93, writing health and accident, or industrial life insurance........................................................ $20.00.

     SECTION 31.  Section 83-49-47, Mississippi Code of 1972, is brought forward as follows:

     83-49-47.  (1)  No person shall act as a representative of a sponsor or agent of a sponsor as defined in Section 83-17-1, Mississippi Code of 1972, without first having obtained a license from the commissioner to act as an agent or representative of a sponsor of prepaid legal services in this state.

     (2)  The annual license fee shall be Ten Dollars ($10.00).  The fee for said license shall be paid to the commissioner on or before March 1 of each year.

     (3)  Before any licensee changes his address, he shall return his license to the commissioner, who shall endorse the license indicating the change.

     (4)  Each person to whom the license or the renewal thereof may be issued shall file sworn answers, subject to the penalties of perjury, to such interrogatories as the commissioner may require.  The commissioner shall have authority, at any time, to require the applicant to disclose fully the identity of all stockholders, partners, officers and employees, and he may, in his discretion, refuse to issue or renew a license in the name of any firm, partnership or corporation if he is not satisfied that any officer, employee, stockholder or partner thereof who may materially influence the applicant's conduct meets the standards of this chapter.

     (5)  Upon the filing of an application and the payment of the license fee, the commissioner shall make an investigation of each applicant and shall issue a license if he finds the applicant is qualified in accordance with this chapter.  If the commissioner does not so find, he shall, within ninety (90) days after he has received such application, so notify the applicant and, at the request of the applicant, give the applicant a full hearing.

     (6)  The commissioner shall issue or renew a license applied for when he is satisfied that the person to be licensed:

          (a)  Is competent and trustworthy and intends to act in good faith as an agent or representative of a sponsor of prepaid legal services plans in this state;

          (b)  Has a good business reputation and has had experience, training or education so as to be qualified to act as an agent or representative of a sponsor of prepaid legal services plans.

     SECTION 32.  Section 83-11-237, Mississippi Code of 1972, is brought forward as follows:

     83-11-237.  (1)  An automobile club operating in this state pursuant to a certificate of authority issued hereunder shall, within thirty (30) days of the date of appointment, file with the commissioner a notice of appointment of a club agent by an automobile club to sell memberships in the automobile club to the public.  This notification shall be upon such form as the commissioner may prescribe, shall contain the name, address, age, sex, and social security number of such club agent, and also contain proof satisfactory to the commissioner that such applicant is of good reputation and that he has received training from the club or is otherwise qualified in the field of automobile club service contracts and the laws of this state pertaining thereto.  Upon termination of any club agent's appointment by an automobile club, such automobile club shall, within thirty (30) days thereafter, notify the commissioner of such termination.

     (2)  The registration fee for club agents shall be Five Dollars ($5.00) annually, and such registration shall be renewable on April 1 of each year unless sooner revoked or suspended.

     SECTION 33.  Section 27-19-44.4, Mississippi Code of 1972, is amended as follows:

     27-19-44.4.  (1)  Notwithstanding any other provision of law to the contrary, beginning with any registration year commencing on or after January 1, 2004, an additional fee of One Dollar ($1.00) is imposed for any distinctive or special license tag or plate authorized under this chapter regardless of whether such a distinctive or special license tag or plate was authorized before or after July 1, 2003.  The proceeds collected from the additional fee imposed under this subsection shall be deposited into the special fund created under Section 27-19-56.69(8).

     (2)  Notwithstanding any other provision of law to the contrary, beginning with any registration year beginning on or after July 1, 2006, an additional fee of Twenty Dollars ($20.00) is imposed for any distinctive or special license tag or plate authorized under this chapter, including personalized tags issued under Section 27-19-48, regardless of whether the license tag or plate was authorized before or after July 1, 2006.  The proceeds collected from the additional fee imposed under this subsection shall be deposited into the State General Fund.

     (3)  The fees imposed under this section shall be in addition to any other fees imposed under this chapter for a distinctive, special or personalized license tag or plate.

     (4)  The provisions of this section shall not apply to distinctive or special license tags or plates:

          (a)  Which are issued under Section 27-19-46, 27-19-51, 27-19-53, 27-19-54, 27-19-56.5, 27-19-56.12, 27-19-56.13, 27-19-56.33, 27-19-56.36, 27-19-56.38, 27-19-56.42, 27-19-56.48, 27-19-56.49, 27-19-56.50, 27-19-56.51, 27-19-56.62, 27-19-56.79,   27-19-56.85 or 27-19-169; or

          (b)  For which no additional fee is required to be paid.

     SECTION 34.  Section 27-19-89, Mississippi Code of 1972, is brought forward as follows:

     27-19-89.  (a)  If any nonresident owner or operator or other nonresident person eligible for a temporary permit as provided in Section 27-19-79, who has not elected to register and pay the annual privilege taxes prescribed, shall enter or go upon the public highways of the state and shall fail or refuse to obtain the permit required by Section 27-19-79, such person shall be liable, for the first such offense, for the full amount of the permit fee required, plus a penalty thereon of five hundred percent (500%).  For the second and all subsequent offenses, such person who fails or refuses to obtain such permits shall be liable for the pro rata part of the annual tax for the balance of the tag year for the maximum legal gross weight of the vehicle plus a penalty thereon of twenty-five percent (25%).  Any weight in excess of the maximum legal gross weight of the vehicle, or in excess of the maximum highway weight limit, shall be penalized according to subsection (c) of this section.  In either case the excess weight shall be removed by the operator before the vehicle can be allowed to proceed.  In order to constitute a "second or subsequent offense" under the provisions hereof, it shall not be necessary that the same or identical vehicle be involved, it being the declared purpose hereof to provide that such penalties shall run against the owner or operator rather than against the specified vehicle.  It is further provided that, in order for such owner or operator to become liable for the penalties herein provided, it shall not be necessary to show that such owner or operator was guilty of willfulness, gross negligence or wantonness, but the offense shall be complete upon the failure or refusal to obtain the required permit.

     (b)  If any person who has registered his vehicle in Mississippi shall operate such vehicle upon the public highways, having a gross weight greater than the licensed gross weight of such vehicle, and shall fail or refuse to obtain a permit therefor as required by Section 27-19-79, or if any person shall operate any such registered vehicle upon the public highways in a higher classification than that for which it is registered, and shall fail or refuse to obtain a permit therefor as required by Section 27-19-79, then such person shall be liable for the pro rata part of the annual tax for the balance of the tag year for the legal gross weight of such vehicle and in the classification in which same is being operated, plus a penalty thereon of twenty-five percent (25%), after having been given credit for the unexpired part of the privilege tax paid, as provided in Section 27-19-75.  In order that such owner or operator shall become liable for the penalties herein provided, it shall not be necessary to show that such owner or operator was guilty of willfulness, gross negligence or wantonness, but the offense shall be complete upon the failure or refusal to obtain the required permit.

     (c)  If any person shall operate upon a highway of this state a vehicle which has a greater vehicle gross weight than the maximum gross weight limit established by law for that highway and shall have failed to obtain an overload permit as required by Section 27-19-81, or if any person shall operate a vehicle with a greater load on any axle or axle grouping than allowed by law, then such person, owner or operator shall be assessed a penalty on such axle load weight or vehicle gross weight as exceeds the legal limit in accordance with the following schedule:

     AMOUNT IN EXCESS OF

     LEGAL HIGHWAY WEIGHT

     LIMITS IN POUNDS                  PENALTY

     1 to 999           $10.00 minimum penalty

     1,000 to 1,999     1¢ per pound in excess of legal limit

     2,000 to 2,999     2¢ per pound in excess of legal limit

     3,000 to 3,999     3¢ per pound in excess of legal limit

     4,000 to 4,999     4¢ per pound in excess of legal limit

     5,000 to 5,999     5¢ per pound in excess of legal limit

     6,000 to 6,999     6¢ per pound in excess of legal limit

     7,000 to 7,999     7¢ per pound in excess of legal limit

     8,000 to 8,999     8¢ per pound in excess of legal limit

     9,000 to 9,999     9¢ per pound in excess of legal limit

     10,000 to 10,999   10¢ per pound in excess of legal limit

     11,000 or more     11¢ per pound in excess of legal limit

     Any vehicle in violation of the tolerance allowed pursuant to Section 63-5-33(3) shall be fined pursuant to Section 27-19-89(c) for all weight in excess of the legal highway gross weight limit authorized for such vehicle or for all weight in excess of the legal tandem axle load weight limit of forty thousand (40,000) pounds and the legal single axle load limit of twenty thousand (20,000) pounds, whichever the case may be.

     The penalty to be assessed for operations of a vehicle with a greater load on any axle or axle grouping than the legal axle load weight limits shall be one-half (1/2) the penalty for operation in excess of the legal gross weight limit.

     In instances where both the legal highway gross weight limit and the legal axle load weight limit(s) are exceeded, the fine that shall be levied shall be either the penalty amount for the excess vehicle gross weight or the total of the penalty amounts of all overloaded axles, whichever is the larger amount.

     Notwithstanding any other provisions of this section to the contrary, the fine assessed against the holder of a harvest permit for exceeding a gross vehicle weight of eighty-four thousand (84,000) pounds shall be Five Cents (5¢) per pound and Fifteen Cents (15¢) per pound for exceeding a gross vehicle weight of one hundred thousand (100,000) pounds.

     Notwithstanding any other provision of this subsection (c) to the contrary, upon an appeal to the Appeals Board of the Mississippi Transportation Commission by an owner or operator of a vehicle hauling without a harvest permit any of the products or materials described in subsection (3) of Section 63-5-33 and upon whom a penalty has been assessed under this subsection (c) for exceeding the legal weight limit(s) on a highway having a legal weight limit of eighty thousand (80,000) pounds or less, the appeals board shall reduce the penalty assessed against such owner/operator to an amount not to exceed ten percent (10%) of the amount which would otherwise be due without the reduction authorized under this paragraph.  A reduction shall not be authorized under this paragraph if the gross weight of the vehicle for which an owner/operator has been charged with a violation of this section exceeds eighty-four thousand (84,000) pounds; and, in any event, no reduction shall be authorized under this paragraph unless a penalty assessed under this section is appealed to the appeals board and unless the board determines, based upon its records, that such owner/operator has not been granted a penalty reduction under this paragraph within a period of twelve (12) months immediately preceding the date of filing an appeal with the board for a penalty reduction under this paragraph.

     (d)  If any nonresident owner or operator who has not registered his vehicle and paid the annual privilege taxes prescribed shall operate his vehicle upon the highways of this state when such vehicle has a greater gross weight than permitted by law for the highway traveled upon, and for which such excess gross weight a permit was not or could not be procured from the transportation department as required by Section 27-19-81, such person shall be liable upon his second and all subsequent offenses for the pro rata part of the annual tax for the balance of the tag year for the legal gross weight of the vehicle, and in addition thereto the penalty fee on the excess weight as specified in subsection (c) of this section.  In order that such owner or operator shall become liable for the penalties herein provided, it shall not be necessary that the same or identical vehicle be involved, it being the declared purpose hereof to provide that such penalties shall run against the owner or operator rather than against the specific vehicle.

     (e)  All fines and penalties imposed and collected by the Mississippi Department of Transportation for violations of the maximum legal vehicle weight limits authorized on the highways of this state shall be deposited into a special fund that is created in the State Treasury.  Monies in the fund shall be allocated and distributed quarterly, beginning September 30, 1994, to each county of the state based on the amount of such fines and penalties imposed and collected in the county during the immediately preceding three (3) months.  Monies distributed to the counties under this subsection shall be deposited in each county's road and bridge fund and may be expended, upon approval of the board of supervisors, for any purpose for which county road and bridge fund monies lawfully may be expended.

     SECTION 35.  Section 27-65-27, Mississippi Code of 1972, is brought forward as follows:

     27-65-27.  (1)  Any person who engages, or who intends to engage, in any business or activity which will subject such person to a privilege tax imposed by this chapter, shall apply to the commissioner for a permit to engage in and to conduct any business or activity upon the condition that he shall pay the tax accruing to the State of Mississippi under the provisions of this chapter, and shall keep adequate records of such business or activity as required by this chapter.  By making an application for a permit issued pursuant to this section, a person agrees, regardless of his presence in this state, to:

          (a)  Be subject to the jurisdiction of this state for purposes of taxation;

          (b)  Collect and remit all taxes levied under this chapter on the type of business or activity to be conducted by the applicant;

          (c)  Be subject to all the provisions of this chapter.  

     (2)  Upon receipt of the permit, the applicant shall be duly licensed under this chapter to engage in and conduct the business or activity.  The permit shall continue in force so long as the person to whom it is issued shall continue in the same business at the same location, unless revoked by the commissioner for cause.

     (3)  The commissioner shall require of every person desiring to engage in business within this state who maintains no permanent place of business within this state, of every person desiring to engage in the business of making sales of mobile homes, a cash bond or an approved surety bond in an amount sufficient to cover twice the estimated tax liability for a period of three (3) months.  However, the bond shall in no case be less than One Hundred Dollars ($100.00) and the tax may be prepaid in lieu of filing bond if the amount is approved by the commissioner.  This bond shall be filed with the commissioner prior to the issuance of a permit to do business and before any such person may engage in business within this state.  Failure to comply with the provision will subject such person to the penalties provided by this chapter.

     (4)  The commissioner is authorized to deny the application for a permit or revoke the permit of any person who has failed or is failing to comply with any of the provisions of this chapter.  The commissioner may also deny the application for a permit or revoke the permit of any person who has failed to satisfy all of the finally determined tax liabilities owed by that person.  As used in this subsection, "finally determined tax liabilities" means any state tax, fee, penalty and/or interest owed by a person to the Mississippi State Tax Commission where the assessment of the liability has been made against that person as provided by law and such assessment is not subject to any further timely filed administrative or judicial review.  Revocation of such permit, or engaging or continuing in business after such permit is revoked or engaging in business without a permit, shall subject the person to all the penalties imposed by this chapter.

     (5)  Any person liable for the tax who fails to obtain a permit from the commissioner, or who continues in business after such permit has been revoked, or who fails to make his returns for taxation as provided, or who fails to keep adequate records and invoices provided by this chapter, or who fails or refuses to permit inspection of such records, or who fails to pay any taxes due hereunder, shall forfeit his rights to do business in this state until he complies with all the provisions of this chapter and until he enters into a bond, with sureties, to be approved by the commissioner, in an amount not to exceed twice the amount of all taxes estimated to become due under this chapter by the person for any period of three (3) months, conditioned to comply with the provisions of this chapter, and pay all taxes legally due by him.

     (6)  If any person is engaged in or continuing in this state in any business or activity without obtaining a permit, or after the permit has been revoked, or without filing a required bond, or without keeping and allowing inspection of all records required by this chapter, or without making a return, or returns, and without paying all taxes due by him hereunder, it shall be the duty of the commissioner to proceed by injunction to prevent the continuance of the business.  Any temporary injunction enjoining the continuance of the business shall be granted without notice by a judge or chancellor now authorized to grant injunctions.

     SECTION 36.  Section 27-69-31, Mississippi Code of 1972, is amended as follows:

     27-69-31.  Except as otherwise provided in this section, dealers subject to the provisions of this chapter shall be allowed, as compensation for their services in affixing the stamps herein required, a sum equal to eight percent (8%) of the face value of the stamps purchased by them, provided that the commission shall allow no discount on the purchase of stamps by wholesalers of an aggregate amount of less than One Hundred Dollars ($100.00), and by retailers of an aggregate amount of less than Fifty Dollars ($50.00) in any one order.

     It is further provided that the commissioner may, in his discretion, either reduce the compensation allowed, or disallow any compensation for the affixing of stamps, for failure of such dealer to comply with any provisions of the law or rules and regulations promulgated by the commissioner.

     From and after July 1, 2006, there shall be no compensation or discount allowed under this section.

     SECTION 37.  Section 27-69-75, Mississippi Code of 1972, is amended as follows:

     27-69-75.  All taxes levied by this chapter shall be payable to the commissioner in cash, or by personal check, cashier's check, bank exchange, post office money order or express money order, and shall be deposited by the commissioner in the State Treasury on the same day collected.  No remittance other than cash shall be a final discharge of liability for the tax herein assessed and levied, unless and until it has been paid in cash to the commissioner.

     All tobacco taxes collected, including tobacco license taxes, shall be deposited into the State Treasury to the credit of the General Fund.

     Wholesalers who are entitled to purchase stamps * * * may have consigned to them, without advance payment, such stamps, if and when such wholesaler shall give to the commissioner a good and sufficient bond executed by some surety company authorized to do business in this state, conditioned to secure the payment for the stamps so consigned.  The commissioner shall require payment for such stamps not later than thirty (30) days from the date the stamps were consigned.

     SECTION 38.  Section 27-71-11, Mississippi Code of 1972, is amended as follows:

     27-71-11.  The commission shall from time to time by resolution request the State Bond Commission to provide sufficient funds required to maintain an adequate alcoholic beverage inventory.  Those funds shall be provided under the provisions of Chapter 557, Laws of 1966.

     The commission shall add to the cost of all alcoholic beverages a markup of thirty percent (30%), inclusive of the three percent (3%) markup imposed by Section 27-71-7(2).

     The commission shall sell alcoholic beverages at uniform prices throughout the state.

     SECTION 39.  Section 27-71-303, Mississippi Code of 1972, is amended as follows:

     27-71-303.  Upon each person approved for a permit to engage in the business of selling light wines or beer there is * * * imposed, levied and assessed, to be collected and paid as * * * provided in this section, annual privilege taxes in the following amounts:

          (a)  Retailers--for each place of

business.............................. $   100.00

          (b)  Wholesalers or distributors--for each

county................................. $  250.00

          (c)  Manufacturers--for each place of

business............................... $1,000.00

          (d)  Brewpubs--for each place of

business............................... $1,000.00

     Upon each person operating an airline, bus, boat or railroad car upon which light wines or beer may be sold, there is * * * imposed, levied and assessed, to be collected and paid, annual privilege taxes of One Hundred Dollars ($100.00) for each airplane, bus, boat or railroad car so operated in this state.

      * * * However, the amount of the privilege tax to be paid for a permit issued for a period of less than twelve (12) months shall be that proportionate amount of the annual privilege tax that the number of months, or part of a month, remaining until its expiration date bears to twelve (12) months, but in no case shall the privilege tax be less than Ten Dollars ($10.00).

     SECTION 40.  Section 39-5-5, Mississippi Code of 1972, is amended as follows:

     39-5-5.  The duties and powers of the Board of Trustees of the Department of Archives and History shall include, in addition to other duties and powers granted or prescribed by law, the following:

          (a)  To determine the location of places of historical interest within the state;

          (b)  To make a survey of buildings of all types throughout the state which are in danger of destruction, without proper care, and which in the opinion of the board of trustees should be preserved for historical purposes;

          (c)  To contact the proper authorities of the United States national cemeteries and military parks to determine whether or not the record of Mississippi troops is adequately commemorated;

          (d)  To acquire, preserve, restore or operate any real or personal property deemed significant for historical, architectural, archaeological or cultural reasons, to expend funds for such purposes, to enter into contracts or agreements with any agency of the United States or any person, firm, corporation or association for such purposes and to do any and all things which may be necessary or desirable to carry out such purposes;

          (e)  To participate with any agency of the United States, any other governmental agency or any person, firm, corporation, association or group in mutual or cooperative programs or projects within the duties and powers of the board of trustees;

          (f)  To accept grants or donations of money or property, real or personal, from any agency of the United States, any other governmental agency or any person, firm, corporation, association or group.  However, the board of trustees shall not be required, except by specific act of the Legislature, to accept any property without its consent; * * *

          (g)  To provide suitable markers with adequate descriptions of the historical sites to which they refer, for places of historical interest and to provide suitable markers on the highways and roads of this state showing the direction and distance to the historical sites; and

          (h)  To charge reasonable fees for the department to perform research on behalf of persons or entities.  All fees charged under the authority of this paragraph shall be deposited into the State General Fund.

     SECTION 41.  Section 41-3-18, Mississippi Code of 1972, is amended as follows:

     41-3-18.  (1)  The board shall assess fees in the following amounts and for the following purposes:

          (a)  Food establishment annual permit fee, based on the assessment factors of the establishment as follows:

Assessment Category 1......................... $ 15.00

Assessment Category 2........................... 30.00

Assessment Category 3........................... 70.00

Assessment Category 4 ......................... 100.00

Assessment Category 5 ......................... 150.00

(b)  Private water supply approval fee........ $ 10.00

     The board may develop such reasonable standards, rules and regulations to clearly define each assessment category.  Assessment categories shall be based upon the factors to the public health implications of the category and type of food preparation being utilized by the food establishment, utilizing the model Food Code of 1995, or as may be amended by the federal Food and Drug Administration.

     The fee authorized under paragraph (a) of this section shall not be assessed for food establishments operated by public schools, public junior and community colleges, or state agencies or institutions, including without limitation, the state institutions of higher learning and the State Penitentiary.

     The fee authorized under paragraph (b) of this section shall not be assessed for private water supplies used by foster homes licensed by the Department of Human Services.

     (2)  In addition to the fees charged under subsection (1) of this section, the board shall charge a fee of Twenty-five Dollars ($25.00) for food establishment permits and private water supply approvals.  The fees collected under this subsection shall be deposited into the State General Fund.

     SECTION 42.  Section 41-4-7, Mississippi Code of 1972, is amended as follows:

     41-4-7.  The State Board of Mental Health shall have the following powers and duties:

          (a)  To appoint a full-time Executive Director of the Department of Mental Health, who shall be employed by the board and shall serve as executive secretary to the board.  The first director shall be a duly licensed physician with special interest and competence in psychiatry, and shall possess a minimum of three (3) years' experience in clinical and administrative psychiatry.  Subsequent directors shall possess at least a master's degree or its equivalent, and shall possess at least ten (10) years' administrative experience in the field of mental health.  The salary of the executive director shall be determined by the board;

          (b)  To set up state plans for the purpose of controlling and treating any and all forms of mental and emotional illness, alcoholism, drug misuse and developmental disabilities;

          (c)  To supervise, coordinate and establish standards for all operations and activities of the state related to mental health and providing mental health services, including, but not limited to:  the requirement that no person be approved for treatment that is paid for by funds made available through the department who has not had a treatment plan established as a result of having been seen by a licensed physician, licensed clinical psychologist or a psychiatric/mental health nurse practitioner, and that physician, clinical psychologist or psychiatric/mental health nurse practitioner in accordance with an established nurse practitioner-physician protocol signing these plans stating that he/she has personally evaluated the client and that the treatment plan is medically necessary.  A physician,  clinical psychologist or psychiatric/mental health nurse practitioner in accordance with an established nurse practitioner-physician protocol shall recertify each client's record at least semiannually (except for persons with a diagnosis of mental retardation/developmental disability, which shall be completed annually), and more often if medically indicated by physically visiting the client and certifying same in the record.  The board shall have the authority to develop and implement all standards and plans and shall have the authority to establish appropriate actions, including financially punitive actions, to ensure enforcement of these established standards, in accordance with the Administrative Procedures Law (Section 25-43-1 et seq.);

          (d)  To enter into contracts with any other state or federal agency, or with any private person, organization or group capable of contracting, if it finds such action to be in the public interest;

          (e)  To collect reasonable fees for its services; however, if it is determined that a person receiving services is unable to pay the total fee, the department shall collect any amount such person is able to pay;

          (f)  To certify, coordinate and establish minimum standards and establish minimum required services for regional mental health and mental retardation commissions and other community service providers for community or regional programs and services in mental health, mental retardation, alcoholism, drug misuse, developmental disabilities, compulsive gambling, addictive disorders and related programs throughout the state.  Such regional mental health and mental retardation commissions and other community service providers shall submit an annual operational plan to the State Department of Mental Health for approval or disapproval based on the minimum standards and minimum required services established by the department for certification.  If the department finds deficiencies in the plan of any regional commission or community service provider based on the minimum standards and minimum required services established for certification, the department shall give the regional commission or community service provider a six-month probationary period to bring its standards and services up to the established minimum standards and minimum required services.  After the six-month probationary period, if the department determines that the regional commission or community service provider still does not meet the minimum standards and minimum required services established for certification, the department may remove the certification of the commission or provider.  However, the department shall not mandate a standard or service, or decertify a regional commission or community service provider for not meeting a standard or service, if the standard or service does not have funding appropriated by the Legislature or have a funding source from the State Department of Mental Health or a local funding source.  The State Board of Mental Health shall promulgate rules and regulations necessary to implement the provisions of this paragraph (f), in accordance with the Administrative Procedures Law (Section 25-43-1 et seq.);

          (g)  To establish and promulgate reasonable minimum standards for the construction and operation of state and all Department of Mental Health certified facilities, including reasonable minimum standards for the admission, diagnosis, care, treatment, transfer of patients and their records, and also including reasonable minimum standards for providing day care, outpatient care, emergency care, inpatient care and follow-up care, when such care is provided for persons with mental or emotional illness, mental retardation, alcoholism, drug misuse and developmental disabilities;

          (h)  To assist community or regional programs consistent with the purposes of this chapter by making grants and contracts from available funds;

          (i)  To establish and collect reasonable fees for necessary inspection services incidental to certification or compliance;

          (j)  To accept gifts, trusts, bequests, grants, endowments or transfers of property of any kind;

          (k)  To receive monies coming to it by way of fees for services or by appropriations;

          (l)  To serve as the single state agency in receiving and administering any and all funds available from any source for the purpose of service delivery, training, research and education in regard to all forms of mental illness, mental retardation, alcoholism, drug misuse and developmental disabilities, unless such funds are specifically designated to a particular agency or institution by the federal government, the Mississippi Legislature or any other grantor;

          (m)  To establish mental health holding centers for the purpose of providing short-term emergency mental health treatment,  places for holding persons awaiting commitment proceedings or awaiting placement in a state mental health facility following commitment, and for diverting placement in a state mental health facility.  These mental health holding facilities shall be readily accessible, available statewide, and be in compliance with emergency services' minimum standards.  They shall be comprehensive and available to triage and make appropriate clinical disposition, including the capability to access inpatient services or less restrictive alternatives, as needed, as determined by medical staff.  Such facility shall have medical, nursing and behavioral services available on a twenty-four-hour-a-day basis.  The board may provide for all or part of the costs of establishing and operating the holding centers in each district from such funds as may be appropriated to the board for such use, and may participate in any plan or agreement with any public or private entity under which the entity will provide all or part of the costs of establishing and operating a holding center in any district.  The board may charge the county of residence of a patient in any of the facilities for the services provided to the patient, not exceeding Twenty-five Dollars ($25.00) per day;

          (n)  To certify/license case managers, mental health therapists, mental retardation therapists, mental health/retardation program administrators, addiction counselors and others as deemed appropriate by the board.  Persons already professionally licensed by another state board or agency are not required to be certified/licensed under this section by the Department of Mental Health.  The department shall not use professional titles in its certification/licensure process for which there is an independent licensing procedure.  Such certification/licensure shall be valid only in the state mental health system, in programs funded and/or certified by the Department of Mental Health, and/or in programs certified/licensed by the State Department of Health that are operated by the state mental health system serving the mentally ill, mentally retarded, developmentally disabled or persons with addictions, and shall not be transferable;

          (o)  To develop formal mental health worker qualifications for regional mental health and mental retardation commissions and other community service providers.  The State Personnel Board shall develop and promulgate a recommended salary scale and career ladder for all regional mental health/retardation center therapists and case managers who work directly with clients.  The State Personnel Board shall also develop and promulgate a career ladder for all direct care workers employed by the State Department of Mental Health;

          (p)  The employees of the department shall be governed by personnel merit system rules and regulations, the same as other employees in state services;

          (q)  To establish such rules and regulations as may be necessary in carrying out the provisions of this chapter, including the establishment of a formal grievance procedure to investigate and attempt to resolve consumer complaints;

          (r)  To grant easements for roads, utilities and any other purpose it finds to be in the public interest;

          (s)  To survey statutory designations, building markers and the names given to mental health/retardation facilities and proceedings in order to recommend deletion of obsolete and offensive terminology relative to the mental health/retardation system;

          (t)  To ensure an effective case management system directed at persons who have been discharged from state and private psychiatric hospitals to ensure their continued well-being in the community;

          (u)  To develop formal service delivery standards designed to measure the quality of services delivered to community clients, as well as the timeliness of services to community clients provided by regional mental health/retardation commissions and other community services providers;

          (v)  To establish regional state offices to provide mental health crisis intervention centers and services available throughout the state to be utilized on a case-by-case emergency basis.  The regional services director, other staff and delivery systems shall meet the minimum standards of the Department of Mental Health;

          (w)  To require performance contracts with community mental health/mental retardation service providers to contain performance indicators to measure successful outcomes, including diversion of persons from inpatient psychiatric hospitals, rapid/timely response to emergency cases, client satisfaction with services and other relevant performance measures;

          (x)  To enter into interagency agreements with other state agencies, school districts and other local entities as determined necessary by the department to ensure that local mental health service entities are fulfilling their responsibilities to the overall state plan for behavioral services;

          (y)  To establish and maintain a toll-free grievance reporting telephone system for the receipt and referral for investigation of all complaints by clients of state and community mental health/retardation facilities;

          (z)  To establish a peer review/quality assurance evaluation system that assures that appropriate assessment, diagnosis and treatment is provided according to established professional criteria and guidelines;

          (aa)  To develop and implement state plans for the purpose of assisting with the care and treatment of persons with Alzheimer's disease and other dementia.  This plan shall include education and training of service providers, care-givers in the home setting and others who deal with persons with Alzheimer's disease and other dementia, and development of adult day care, family respite care and counseling programs to assist families who maintain persons with Alzheimer's disease and other dementia in the home setting.  No agency shall be required to provide any services under this section until such time as sufficient funds have been appropriated or otherwise made available by the Legislature specifically for the purposes of the treatment of persons with Alzheimer's and other dementia;

          (bb)  Working with the advice and consent of the administration of Ellisville State School, to enter into negotiations with the Economic Development Authority of Jones County for the purpose of negotiating the possible exchange, lease or sale of lands owned by Ellisville State School to the Economic Development Authority of Jones County.  It is the intent of the Mississippi Legislature that such negotiations shall ensure that the financial interest of the persons with mental retardation served by Ellisville State School will be held paramount in the course of these negotiations.  The Legislature also recognizes the importance of economic development to the citizens of the State of Mississippi and Jones County, and encourages fairness to the Economic Development Authority of Jones County.  Any negotiations proposed which would result in the recommendation for exchange, lease or sale of lands owned by Ellisville State School must have the approval of the State Board of Mental Health.  The State Board of Mental Health may and has the final authority as to whether or not these negotiations result in the exchange, lease or sale of the properties it currently holds in trust for citizens with mental retardation served at Ellisville State School.

     If the State Board of Mental Health authorizes the sale of lands owned by Ellisville State School, as provided for under this paragraph (bb), the monies derived from the sale shall be placed into a special fund that is created in the State Treasury to be known as the "Ellisville State School Client's Trust Fund."  The principal of the trust fund shall remain inviolate and shall never be expended.  Any interest earned on the principal may be expended solely for the benefits of clients served at Ellisville State School.  The State Treasurer shall invest the monies of the trust fund in any of the investments authorized for the Mississippi Prepaid Affordable College Tuition Program under Section 37-155-9, and those investments shall be subject to the limitations prescribed by Section 37-155-9.  Unexpended amounts remaining in the trust fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the trust fund shall be deposited to the credit of the trust fund.  The administration of Ellisville State School may use any interest earned on the principal of the trust fund, upon appropriation by the Legislature, as needed for services or facilities by the clients of Ellisville State School.  Ellisville State School shall make known to the Legislature, through the Legislative Budget Committee and the respective Appropriations Committees of the House and Senate, its proposed use of interest earned on the principal of the trust fund for any fiscal year in which it proposes to make expenditures thereof.  The State Treasurer shall provide Ellisville State School with an annual report on the Ellisville State School Client's Trust Fund to indicate the total monies in the trust fund, interest earned during the year, expenses paid from the trust fund and such other related information.

     Nothing in this section shall be construed as applying to or affecting mental health/retardation services provided by hospitals as defined in Section 41-9-3(a), and/or their subsidiaries and divisions, which hospitals, subsidiaries and divisions are licensed and regulated by the Mississippi State Department of Health unless such hospitals, subsidiaries or divisions voluntarily request certification by the Mississippi State Department of Mental Health.

     All new programs authorized under this section shall be subject to the availability of funds appropriated therefor by the Legislature;

          (cc)  Working with the advice and consent of the administration of Boswell Regional Center, to enter into negotiations with the Economic Development Authority of Simpson County for the purpose of negotiating the possible exchange, lease or sale of lands owned by Boswell Regional Center to the Economic Development Authority of Simpson County.  It is the intent of the Mississippi Legislature that such negotiations shall ensure that the financial interest of the persons with mental retardation served by Boswell Regional Center will be held paramount in the course of these negotiations.  The Legislature also recognizes the importance of economic development to the citizens of the State of Mississippi and Simpson County, and encourages fairness to the Economic Development Authority of Simpson County.  Any negotiations proposed which would result in the recommendation for exchange, lease or sale of lands owned by Boswell Regional Center must have the approval of the State Board of Mental Health.  The State Board of Mental Health may and has the final authority as to whether or not these negotiations result in the exchange, lease or sale of the properties it currently holds in trust for citizens with mental retardation served at Boswell Regional Center.  In any such exchange, lease or sale of such lands owned by Boswell Regional Center, title to all minerals, oil and gas on such lands shall be reserved, together with the right of ingress and egress to remove same, whether such provisions be included in the terms of any such exchange, lease or sale or not.

     If the State Board of Mental Health authorizes the sale of lands owned by Boswell Regional Center, as provided for under this paragraph (cc), the monies derived from the sale shall be placed into a special fund that is created in the State Treasury to be known as the "Boswell Regional Center Client's Trust Fund."  The principal of the trust fund shall remain inviolate and shall never be expended.  Any earnings on the principal may be expended solely for the benefits of clients served at Boswell Regional Center.  The State Treasurer shall invest the monies of the trust fund in any of the investments authorized for the Mississippi Prepaid Affordable College Tuition Program under Section 37-155-9, and those investments shall be subject to the limitations prescribed by Section 37-155-9.  Unexpended amounts remaining in the trust fund at the end of a fiscal year shall not lapse into the State General Fund, and any earnings on amounts in the trust fund shall be deposited to the credit of the trust fund.  The administration of Boswell Regional Center may use any earnings on the principal of the trust fund, upon appropriation by the Legislature, as needed for services or facilities by the clients of Boswell Regional Center.  Boswell Regional Center shall make known to the Legislature, through the Legislative Budget Committee and the respective Appropriations Committees of the House and Senate, its proposed use of the earnings on the principal of the trust fund for any fiscal year in which it proposes to make expenditures thereof.  The State Treasurer shall provide Boswell Regional Center with an annual report on the Boswell Regional Center Client's Trust Fund to indicate the total monies in the trust fund, interest and other income earned during the year, expenses paid from the trust fund and such other related information.

     Nothing in this section shall be construed as applying to or affecting mental health/retardation services provided by hospitals as defined in Section 41-9-3(a), and/or their subsidiaries and divisions, which hospitals, subsidiaries and divisions are licensed and regulated by the Mississippi State Department of Health unless such hospitals, subsidiaries or divisions voluntarily request certification by the Mississippi State Department of Mental Health.

     All new programs authorized under this section shall be subject to the availability of funds appropriated therefor by the Legislature;

          (dd)  Notwithstanding any other section of the code, the Board of Mental Health shall be authorized to fingerprint and perform a criminal history record check on every employee or volunteer.  Every employee and volunteer shall provide a valid current social security number and/or driver's license number which shall be furnished to conduct the criminal history record check.  If no disqualifying record is identified at the state level, fingerprints shall be forwarded to the Federal Bureau of Investigation for a national criminal history record check;

          (ee)  The Department of Mental Health shall have the authority for the development of a consumer friendly single point of intake and referral system within its service areas for persons with mental illness, mental retardation, developmental disabilities or alcohol or substance abuse who need assistance identifying or accessing appropriate services.  The department will develop and implement a comprehensive evaluation procedure ensuring that, where appropriate, the affected person or their parent or legal guardian will be involved in the assessment and planning process.  The department, as the point of intake and as service provider, shall have the authority to determine the appropriate institutional, hospital or community care setting for persons who have been diagnosed with mental illness, mental retardation, developmental disabilities and/or alcohol or substance abuse, and may provide for the least restrictive placement if the treating professional believes such a setting is appropriate, if the person affected or their parent or legal guardian wants such services, and if the department can do so with a reasonable modification of the program without creating a fundamental alteration of the program.  The least restrictive setting could be an institution, hospital or community setting, based upon the needs of the affected person or their parent or legal guardian;

          (ff)  To have the sole power and discretion to enter into, sign, execute and deliver long-term or multiyear leases of real and personal property owned by the Department of Mental Health to and from other state and federal agencies and private entities deemed to be in the public's best interest.  Any monies derived from such leases shall be deposited into the funds of the Department of Mental Health for its exclusive use.  Leases to private entities shall be approved by the Department of Finance and Administration and all leases shall be filed with the Secretary of State.

     SECTION 43.  Section 41-7-71, Mississippi Code of 1972, is brought forward as follows:

     41-7-71.  It is hereby declared to be the policy of the State of Mississippi that a patient or resident in a state institution whose estate is sufficient, or, if not, who has (a) a spouse; or (b) one or more parent(s) if said patient or resident is under the age of twenty-one (21) years and unmarried, who is(are) financially able to pay all or any part of the cost of such hospitalization or treatment, shall be required to pay for all or part of his or her maintenance in such institution.  No resident of this state shall be refused admission to or treatment in any of the institutions enumerated in Section 41-7-73 because of his inability to pay all or any of said costs.  It shall be the duty of the director or the governing board, as appropriate, of the admitting institution to ascertain the financial ability of the patient or resident and to establish an amount to be paid monthly based on current ability to pay, with a continuing claim for the difference in the amount paid and the maximum charges assessed that could be made as determined pursuant to Section 41-7-79.

     SECTION 44.  Section 41-7-73, Mississippi Code of 1972, is brought forward as follows:

     41-7-73.  The term "state institution" or "state institutions" as used in Sections 41-7-71 through 41-7-95 shall include the following:  Mississippi State Hospital at Whitfield, Ellisville State School, East Mississippi State Hospital at Meridian, Mississippi Children's Rehabilitation Center, North Mississippi Regional Center, Hudspeth Regional Center, South Mississippi Regional Center, North Mississippi State Hospital at Tupelo,South Mississippi State Hospital at Purvis, University of Mississippi Hospital, Boswell Regional Center, the Juvenile Rehabilitation Center at Brookhaven, the Specialized Treatment Facility for the Emotionally Disturbed in Harrison County, and the Central Mississippi Residential Center at Newton.

     SECTION 45.  Section 41-7-79, Mississippi Code of 1972, is brought forward as follows:

     41-7-79.  Each state institution shall have the power to assess and collect charges from patients, patients' estates and from all persons legally liable for the cost of care of such patients in such state institution.  The maximum charges which may be made shall be based on the estimated cost of operating the institution, and such costs shall include a reasonable amount for depreciation.  The director or the governing board of each institution, as appropriate, shall investigate or cause to be investigated the financial ability of each patient, his or her estate, and all other persons legally liable for the cost or care of the patient, and the charges assessed shall be in accordance with the ability of the person assessed to pay.

     The Director of the Mississippi Children's Rehabilitation Center or the governing board of the center, as appropriate, upon conclusion of the investigation of the financial ability of each patient and all other persons legally liable for the cost of care of the patient, shall assess a fee against each patient based on the financial ability of such patient or others legally liable for such patient to pay.  The fee shall be adjustable and commensurate with the patient's financial ability to pay.  In order to receive the benefits of the sliding scale fee each patient is required to provide for the Children's Rehabilitation Center sufficient financial information in order to allow the center to make a determination as to whether or not a reduced fee is appropriate. The center shall not utilize such fee scale for any patient unless the patient has a need for additional treatment, and has no insurance covering his treatment or such insurance is exhausted. The Children's Rehabilitation Center shall make every effort to collect the total charges from a patient, the patient's estate and from all persons legally liable for the cost of care of the patient before it may utilize a sliding fee scale for the patient.

     After three (3) good faith attempts have been made to collect a remaining balance of such charges, and upon the recommendation of the Children's Rehabilitation Center fiscal officer, said balance may be declared uncollectible and worthless, and no longer listed as an asset.

     In the determination of ability to pay, the director or governing board shall not work an undue hardship on any patient or person legally responsible for such a patient.  The value of a homestead shall not be considered in determining the ability to pay.  The number of dependents of a patient or the party legally responsible for such patient shall be considered in determining ability to pay.  The value of real and/or personal property may also be considered.

     The director or the governing board, as appropriate, shall have authority to enter into agreements with the patients or others legally liable whereby periodic payments can be made on said accounts.  The director or governing board may accept notes, secured or open, or any other evidences of indebtedness.

     The director or the governing board, as appropriate, of each state institution shall have the right to institute suits where necessary or advisable, and it shall be the duty of the Attorney General to institute such suits either in the name of the institution or in the name of the State of Mississippi.  Except in matters involving the administration of estates, the probate of wills or the appointment of guardians or conservators, venue for such suits shall lie in the county in which the institution is located, and the venue shall not be subject to change.

     SECTION 46.  Section 45-1-29, Mississippi Code of 1972, is amended as follows:

     45-1-29.  (1)  The Mississippi Crime Laboratory shall be funded separately from the Department of Public Safety.  Any appropriated funds shall be maintained in an account separate from any funds of the Department of Public Safety and shall never be commingled with any funds of the department.  However, nothing in this section shall be construed to prohibit the utilization of the combined resources of the Mississippi Crime Laboratory, the Division of Support Services of the Department of Public Safety or the Mississippi Justice Information Center to efficiently carry out the mission of the Department of Public Safety.

     (2)  Grants and donations to the crime laboratory may be accepted from individuals, the federal government, firms, corporations, foundations and other interested organizations and societies.

     (3)  The Commissioner of Public Safety shall establish and the Division of Support Services of the Department of Public Safety shall collect for services rendered proper fees commensurate with the services rendered by the crime laboratory, which fees shall be in amounts that will recover the costs to the crime laboratory of providing those services.  Those fees shall be deposited into a special fund in the State Treasury to the credit of the crime laboratory and expended in accordance with applicable rules and regulations of the Department of Finance and Administration.  Those fees may be used for any authorized expenditure of the crime laboratory except expenditures for salaries, wages and fringe benefits.

     SECTION 47.  Section 49-17-30, Mississippi Code of 1972, is brought forward as follows:

     49-17-30.  (1)  As a condition of any air operating permit required under Title V of the federal Clean Air Act, the owner or operator of any stationary source shall pay to the Department of Environmental Quality an annual permit fee.  The commission shall establish the amount of each fee to cover the costs of the Title V program as provided in Section 49-17-14.

     (2)  To facilitate the proper administration of the Title V program, the commission is authorized to assess and collect fees from Title V program permittees.  The commission is further authorized to promulgate such rules and regulations as are necessary for the development and administration of the Title V program and the assessment and collection of Title V program fees.

          (a)  For purposes of fee assessment and collection, the maximum emission rate of each pollutant used in the calculation of fees shall be four thousand (4,000) tons per year per facility.

          (b)  For purposes of fee assessment and collection, the permit holder shall elect for actual or allowable emissions to be used in determining the annual quantity of emissions unless the commission determines by order that the method chosen by the applicant for calculating actual emissions fails to reasonably represent actual emissions.  Such order of the commission shall be subject to appeal in the manner provided in Section 49-17-41. Actual emissions shall be calculated using emission monitoring data or direct emissions measurements for the pollutant(s); mass balance calculations such as the amounts of the pollutant(s) entering and leaving process equipment and where mass balance calculations can be supported by direct measurement of process parameters, such direct measurement data shall be supplied; published emission factors such as those relating release quantities to throughput or equipment type (e.g., air emission factors); or other approaches such as engineering calculations (e.g., estimating volatilization using published mathematical formulas) or best engineering judgments where such judgments are derived from process and/or emission data which supports the estimates of maximum actual emissions.

     If the commission determines that there is not sufficient information available on a facility's emissions, the determination of the fee shall be based upon the permitted allowable emissions until such time as an adequate determination of actual emissions is made.

          (c)  A minimum annual fee of Two Hundred Fifty Dollars ($250.00) shall be assessed to and collected from the owner or operator of each facility that is required to hold a Title V permit.  The maximum annual fee shall be Two Hundred Fifty Thousand Dollars ($250,000.00) per facility.

     (3)  (a)  Prior to the date of full implementation of the Title V program in Mississippi, the fee assessed shall be Four Dollars ($4.00) per ton of emissions of each air pollutant for which fees can be assessed under the Title V program, not to exceed Fifty Thousand Dollars ($50,000.00) per facility.

          (b)  Following the date of full implementation of the Title V program in Mississippi, the fee schedule for Title V permit fees for any subsequent calendar year shall be set by order of the commission in an amount sufficient to cover the reasonable costs of development and administration of the Title V program. The commission's order shall follow:

              (i)  Receipt of the report and recommendations of the Advisory Council; and

              (ii)  A public hearing to be held not earlier than thirty (30) days following receipt by the commission of the report and recommendations of the Advisory Council.  The commission may proceed with entry of the order on fees if the Advisory Council fails to submit its report in a timely manner.  The order of the commission may be appealed in the manner set forth in Section 49-17-41.  The determination of the fee shall be by order of the commission and shall not be considered the promulgation of a regulation by the commission.  The record of the public hearing shall be included in the record upon which the order is based and shall become a part of the appellate records for all appeals taken from the order of the commission establishing or modifying Title V permit fees.  Any undisputed amount due from an appellant must be paid according to the appellant's payment schedule during the pendency of the appeal.

     (4)  Any person required to pay the Title V permit fee set forth under this chapter who disagrees with the calculation or applicability of the person's fee may petition the commission in writing for a hearing in accordance with Section 49-17-35.  Such hearing shall be in accordance with Section 49-17-33.  Any disputed portion of the fee for which a hearing has been requested will not incur any penalty or interest from and after the receipt by the commission of the hearing petition.  The decision of the commission may be appealed in the manner set forth in Section 49-17-41.

     (5)  All fees collected pursuant to this section shall be deposited into the "Air Operating Permit Program Fee Trust Fund" established in Section 49-17-14.

     SECTION 48.  Section 49-17-421, Mississippi Code of 1972, is amended as follows:

     49-17-421.  (1)  The commission may assess and collect a tank regulatory fee in an amount sufficient to administer Sections 49-17-401 through 49-17-435 but not to exceed One Hundred Dollars ($100.00) per tank per year from the owner of each underground storage tank in use in Mississippi on July 1, 1988, or brought into use after that date, as provided in the Mississippi Underground Storage Tank Act of 1988 (Sections 49-17-401 through 49-17-435).  The tank regulatory fee assessed under this section is a debt due by the owner of each underground storage tank in use in Mississippi on July 1, 1988, or brought into use after that date.  The tank regulatory fee shall be due July 1 of each year.  If any part of the tank regulatory fee is not paid within thirty (30) days after the due date, a penalty of fifty percent (50%) of the amount due shall accrue at once and be added to the fee, unless the owner of the underground storage tank demonstrates to the commission that the failure to make timely payment was unavoidable due to financial hardship or otherwise beyond the control of the owner.  Monies collected under this section shall be deposited in a special fund which is created in the State Treasury.  Unexpended amounts remaining in the special fund at the end of the fiscal year shall not lapse into the General Fund and any interest earned on amounts in the special fund shall be credited to the special fund by the Treasurer.  The fund may receive monies from any available public or private source, including, but not limited to, collection of fees, interest, grants, taxes, public or private donations and judicial actions.  Monies in this special fund shall be expended by annual appropriation approved by the Legislature to administer Sections 49-17-401 through 49-17-435.

     (2)  In addition to the fees imposed under subsection (1) of this section, the department shall impose a fee of Fifty Dollars ($50.00) per tank per year for each underground storage tank in use in Mississippi on July 1, 1988, or brought into use after that date, as provided in the Mississippi Underground Storage Tank Act of 1988 (Sections 49-17-401 through 49-17-435).  The fees collected under this subsection shall be deposited in the State Treasury to the credit of the department.

     SECTION 49.  (1)  Beginning on July 1, 2006, in all instances where no provision of law sets a fee, the Department of Environmental Quality shall charge a fee of One Hundred Dollars ($100.00) for any general permit that it issues to any permittee.  For any other permit or any activity associated with the monitoring of the activities of a permittee, where no provision of law sets a permit or monitoring fee, the department shall charge all permittees a fee of Two Hundred Fifty Dollars ($250.00).  Fees for permits shall be collected at the time of the issuance of the permits.  Monitoring fees shall be collected after completion of the monitoring activity. 

     (2)  The department shall charge each animal feeding operation and confined animal feeding operation a one-time fee of One Hundred Dollars ($100.00).

     (3)  The fees collected under this section shall be deposited in the State Treasury to the credit of the department.

     SECTION 50.  Section 51-3-31, Mississippi Code of 1972, is amended as follows:

     51-3-31.  Any person desiring to use water for a beneficial purpose shall apply to the board for a permit for such use on a form prescribed by the board for such purpose.  The application shall be accompanied by a fee of Two Hundred Fifty Dollars ($250.00).  The application shall provide such information as deemed appropriate by the board to its decision to issue such permit.  The fees and applications required by this section also shall apply to renewals of permits and any modifications to permits.  The board shall not charge any fees under this section to animal feeding operations or confined animal feeding operations.

     All fees received by the board under this section shall be deposited in the State Treasury to the credit of the Department of Environmental Quality.

     SECTION 51.  Section 53-7-7, Mississippi Code of 1972, is amended as follows:

     53-7-7.  (1)  Except as provided in this section, it is unlawful to commence an operation or operate a surface mine without a permit or coverage under a general permit as provided by this chapter.

     (2)  Except as expressly provided in this section, this chapter shall not apply to:

          (a)  Excavations made by the owner of land for the owner's own use and not for commercial purposes, where the materials removed do not exceed one thousand (1,000) cubic yards per year and where one (1) acre or less of land is affected;

          (b)  Excavations made by a public agency on a one-time basis for emergency use at an emergency site if:

              (i)  The excavation lies in the vicinity of the emergency site and affects less than one-fourth (1/4) acre of mined surface area;

              (ii)  The landowner has signed a statement giving approval for the removal of the materials; and

              (iii)  The public agency notifies the department as required by the commission within two (2) working days of the removal of the materials.

          (c)  Operations for any materials on any affected area conducted before April 15, 1978, but this chapter shall apply to any additional land which the operation extended to or encompassed after April 15, 1978;

          (d)  Operations for any materials that affected four (4) acres or less and were greater than one thousand three hundred twenty (1,320) feet from any other affected area if:

              (i)  The operation began before July 1, 2002; and

              (ii)  The operator notified the commission of the commencement, expansion or resumption of the operation before July 1, 2002; and

          (e)  Operations for any materials that affect four (4) acres or less, are greater than one thousand three hundred twenty (1,320) feet from any other affected area and commenced after July 1, 2002, if the operator notifies the department at least seven (7) calendar days before commencement or expansion of the operation as required in regulations adopted by the commission.  The seven-day notice prior to mining requirement shall be waived and the operator may begin mining immediately after notifying the department if:

              (i)  The operator agrees, in the notification, to reclaim the mine site in accordance with the minimum standards adopted by the commission; or

              (ii)  The exempted operation is conducted for Mississippi Department of Transportation projects or state aid road construction projects funded in whole or in part by public funds.

     (3)  Exempt operations under paragraph (e) that are conducted for the MDOT projects or state aid road construction projects shall be reclaimed in accordance with the requirements of the Mississippi Standard Specifications for Road and Bridge Construction, Mississippi Department of Transportation or Division of State Aid Road Construction, as applicable.  Any operator failing to reclaim as required under this subsection may be subject to the penalties provided in Section 53-7-59(2).

     (4)  If a landowner refuses to allow the operator to complete reclamation in accordance with minimum standards or interferes with or authorizes a third party to disturb or interfere with reclamation in accordance with minimum standards, the landowner shall assume the exempt notice and shall be responsible for any reclamation.

     (5)  All operations exempted under Sections 53-7-7(2)(d) and 53-7-7(2)(e) shall be subject to the prohibitions on mining in certain areas contained in Sections 53-7-49 and 53-7-51 and may be subject to the penalties in Section 53-7-59(2) for any violation of those sections.

     (6)  Any operator conducting operations exempted under Section 53-7-7(2)(b) or 53-7-7(2)(e) failing to notify the department in accordance with the regulations of the commission,  may be subject to penalties provided in Section 53-7-59(2).  Any operator exempted under Section 53-7-7(2)(e) who agrees in the notification to reclaim and fails to reclaim in accordance with that paragraph may be subject to penalties provided in Section 53-7-59(2).

     (7)  The department shall collect from every operator granted an exemption the amount of One Hundred Dollars ($100.00) from any operator whose mining operations are exempted under the authority of this section.  The department shall charge an annual monitoring fee of One Hundred Dollars ($100.00) to any exempted and nonexempted operators to help defray the costs of monitoring surface mining activity.  All fees collected under this subsection shall be deposited in the State Treasury to the credit of the department.

     SECTION 52.  Section 53-7-21, Mississippi Code of 1972, is amended as follows:

     53-7-21.  (1)  Unless exempted under Section 53-7-7, no operator shall engage in surface mining without having first obtained coverage under a general permit or having obtained from the Permit Board a permit for each operation.  The permit or coverage under a general permit shall authorize the operator to engage in surface mining upon the area of land described in the application for a period of either five (5) years or longer period of time as deemed appropriate by the Permit Board from the date of issuance or until reclamation of the affected area is completed and the reclamation bond is finally released, whichever comes first.

     (2)  Each operator holding a permit shall annually, before the anniversary date of the permit, file with the department a certificate of compliance in which the operator, under oath, shall declare that the operator is following the approved mining and reclamation plan and is abiding by this chapter and the rules and regulations adopted under this chapter.

     (3)  The department shall charge all permit holders an annual permit monitoring fee of One Hundred Twenty-five Dollars ($125.00).  All fees collected under this subsection shall be deposited in the State Treasury to the credit of the department.

     SECTION 53.  Section 53-7-25, Mississippi Code of 1972, is amended as follows:

     53-7-25.  (1)  Each application for a surface mining permit and for coverage under a general permit shall be accompanied by an application fee in accordance with a published fee schedule adopted by the commission.  The application fee shall not be less than One Hundred Dollars ($100.00) plus Ten Dollars ($10.00) per acre included in the application.  The total application fee shall not exceed Five Hundred Dollars ($500.00).  The commission, in considering regulations on the fee schedule, shall recognize the difference in the various materials, taking into consideration the commercial value of the material and the nature and size of operation necessary to extract it.

     (2)  All state agencies, political subdivisions of the state, and local governing bodies shall be exempt from all fees required by this chapter.

     (3)  Upon submission of the certificate of compliance required under Section 53-7-21, each operator shall pay a fee of Fifty Dollars ($50.00).

     (4)  In addition to the fees provided for in this section, the department shall charge a fee of One Hundred Dollars ($100.00) for any permit issued and for the renewal of permits.  All funds collected under this subsection shall be deposited in the State Treasury to the credit of the department.

     SECTION 54.  Section 53-7-27, Mississippi Code of 1972, is amended as follows:

     53-7-27.  (1)  Before commencing any operation for which a permit is required, each applicant for a permit shall submit to the Permit Board an application, a proposed initial reclamation plan and a performance bond in an amount proposed to be sufficient by the applicant to reclaim the permit area.

     (2)  The application shall be in the form prescribed by the commission and shall contain the following information:

          (a)  A legal description of the tract or tracts of land in the affected area and one or more maps or plats of adequate scale to clearly portray the location of the affected area.  The description shall contain sufficient information so that the affected area may be located and distinguished from other lands and shall identify the access from the nearest public road;

          (b)  The approximate location and depth of the deposit in the permit area and the total number of acres in the permit area;

          (c)  The name, address and management officers of the permit applicant and any affiliated persons who shall be engaged in the operations;

          (d)  The name and address of any person holding legal and equitable interests of record, if reasonably ascertainable, in the surface estate of the permit area and in the surface estate of land located within five hundred (500) feet of the exterior limits of the permit area;

          (e)  The name and address of any person residing on the property of the permit area at the time of application;

          (f)  Current or previous surface mining permits held by the applicant, including any revocations, suspensions or bond forfeitures;

          (g)  The type and method of operation, the engineering techniques and the equipment that is proposed to be used, including mining schedules, the nature and expected amount of overburden to be removed, the depth of excavations, a description of the permit area, the anticipated hydrologic consequences of the mining operation, and the proposed use of explosives for blasting, including the nature of the explosive, the proposed location of the blasting and the expected effect of the blasting;

          (h)  A notarized statement showing the applicant's legal right to surface mine the affected area;

          (i)  The names and locations of all lakes, rivers, reservoirs, streams, creeks and other bodies of water in the vicinity of the contemplated operations which may be affected by the operations and the types of existing vegetative cover on the area affected thereby and on adjoining lands within five hundred (500) feet of the exterior limits of the affected area;

          (j)  A topographical survey map showing the surface drainage plan on and away from the permit area;

          (k)  The surface location and extent of all existing and proposed waste and spoil piles, cuts, pits, tailing dumps, ponds, borrow pits, evaporation and settling basins, roads, buildings, access ways, workings and installations sufficient to provide a reasonably clear and accurate portrayal of the existing surface conditions and the proposed mining operations;

          (l)  If the surface and mineral estates, or any part of those estates, in land covered by the application, have been severed and are owned by separate owners, the applicant shall provide a notarized statement subscribed to by each surface owner and lessee of those lands, unless the lease or other conveyance to the applicant specifically states the material to be mined by the operator granting consent for the applicant to initiate and conduct surface mining, exploration and reclamation activities on the land;

          (m)  Except for governmental agencies, a certificate of insurance certifying that the applicant has in force a public liability insurance policy issued by an insurance company authorized to conduct business in the State of Mississippi covering all operations of the applicant in this state and affording bodily injury protection and property damage protection in an amount not less than the following:

              (i)  One Hundred Thousand Dollars ($100,000.00) for all damages because of bodily injury sustained by one (1) person as the result of any one (1) occurrence, and Three Hundred Thousand Dollars ($300,000.00) for all damages because of bodily injury sustained by two (2) or more persons as the result of any one (1) occurrence; * * * 

              (ii)  One Hundred Thousand Dollars ($100,000.00) for all claims arising out of damage to property as the result of any one (1) occurrence including completed operations; and

              (iii)  In any case where the department releases any permittee from the obligation of having the insurance or bond required by this paragraph (m), the department shall charge the permittee One Hundred Dollars ($100.00).  The fees collected under this subparagraph (iii) shall be deposited in the State Treasury to the credit of the department.

     The policy shall be maintained in full force and effect during the term of the permit, including the length of all reclamation operations.

          (n)  A copy of a proposed initial reclamation plan prepared under Section 53-7-31; and

          (o)  Any other information needed to clarify the required parts of the application.

     SECTION 55.  Section 53-7-69, Mississippi Code of 1972, is amended as follows:

     53-7-69.  (1)  There is created in the State Treasury a fund to be designated as the "Surface Mining and Reclamation Fund," referred to hereinafter as the "fund."  There is created in the fund an account designated as the "Land Reclamation Account" and an account designated as the "Surface Mining Program Operations Account."

     (2)  The fund shall be treated as a special trust fund. Interest earned on the principal therein shall be credited by the Treasurer to the fund.

     (3)  The fund may receive monies from any available public or private sources, including, but not limited to, collection of fees, interest, grants, taxes, public and private donations, judicial actions, penalties and forfeited performance bonds.  Any monies received from penalties, forfeited performance bonds, judicial actions and the interest thereon, less enforcement and collection costs, shall be credited to the Land Reclamation Account.  Except as otherwise provided by law, any monies received from the collection of fees, grants, taxes, public or private donations and the interest thereon shall be credited to the Surface Mining Program Operations Account.

     (4)  The commission shall expend or utilize monies in the fund by an annual appropriation by the Legislature as provided herein.  Monies in the Land Reclamation Account may be used to defray any costs of reclamation of land affected by mining operations.  Monies in the Surface Mining Program Operations Account may be used to defray the reasonable direct and indirect costs associated with the administration and enforcement of this chapter.

     (5)  Proceeds from the forfeiture of performance bonds or deposits and penalties recovered shall be available to be expended to reclaim, in accordance with this chapter, lands with respect to which the performance bonds or deposits were provided and penalties assessed.  If the commission expends monies from the fund for which the cost of reclamation exceeded the proceeds from the forfeiture of performance bonds or deposits, the commission may seek to recover any monies expended from the fund from any responsible party.

     SECTION 56.  Section 55-3-33, Mississippi Code of 1972, is brought forward as follows:

     55-3-33.  (1)  The Mississippi Department of Wildlife, Fisheries and Parks shall have the power and authority, and it shall be its duty to:

          (a)  Take charge and have full jurisdiction and control over all state parks, which parks shall be operated for the purpose of providing outdoor recreational activities and enjoyment for the citizens of the State of Mississippi and for the purpose of attracting visitors to the state.

          (b)  Set up a uniform accounting procedure for the state parks and prescribe the manner in which books, records and accounts shall be kept, which procedure shall account for all moneys taken in and expended by the various parks and shall provide for periodic audits of such books.

          (c)  Accept gifts, bequests of money or other property, real or personal, to be used for the purpose of advancing the recreation and conservation interests in state parks.  The department is authorized, subject to approval by the State Legislature, to purchase property, real or personal, to be used for state park purposes.

          (d)  Contract with the State Transportation Commission, any municipality or board of supervisors of the state for locating, constructing and maintaining roads and other improvements in state parks and for payment of a part of the costs thereof; however, no county or municipality more than twenty-five (25) miles distant from a state park may contract for, or do, or pay for any such work for a state park other than the International Gardens of Mississippi.  Any county or municipality authorized to assist financially under the provisions of Sections 55-3-31 through 55-3-51 is authorized, in the discretion of its respective governing authority, to set aside, appropriate and expend moneys from the General Fund for the purpose of defraying such expense after a mandatory election is held on the question within the county or municipality.

          (e)  Designate employees as peace officers with power to make arrests for infraction of the rules and regulations of the department.  Such officers are authorized to carry weapons and to enforce the laws of the State of Mississippi within the confines of a state park.

          (f)  Enforce and delegate the responsibility to enforce all reasonable rules and regulations governing the occupancy and use of lands and waters in state parks under its jurisdiction, supply recreational and conservation facilities and charge fees for the use of same; review all rates and charges for facilities and accommodations furnished at the various state parks annually, making such charges as are justified; and establish fees for entrance to state parks.

     Each park shall retain from revenues generated therein, a sum sufficient to pay necessary expenses of operation, but in no event to be less than seventy-five percent (75%) of such revenues.

     (2)  The department shall have the authority to lease to any entity, sell and convey or otherwise transfer to any county or municipality, or close any state park or historical site within its jurisdiction which received a General Fund subsidy in Fiscal Year 1985 in excess of Two Dollars ($2.00) per visitor to such state park or historical site; provided, however, that this authority shall not include the authority to sell, lease or convey any park that was not in operation under the jurisdiction of the department for a full fiscal year prior to fiscal year 1986.

     (3)  The department may execute agreements with rails-to-trails and recreational districts by which the department will assume responsibility for the operation and maintenance of trails developed under Sections 55-25-1 through 55-25-15.

     SECTION 57.  Section 45-35-7, Mississippi Code of 1972, is amended as follows:

     45-35-7.  (1)  Except as provided in subsection (3) of this section, each applicant for an original identification card issued pursuant to this chapter who is entitled to issuance of such a card shall be issued a four-year card.  Each card shall expire at midnight on the last day of the cardholder's birth month.

     (2)  Except as providedinsubsection (3) of this section, all renewal identification cards shall be for four-year periods and may be renewed any time during the birth month of the cardholder upon application and payment of the required fee.

     (3)  (a)  Any applicant who is blind, as defined in Section 43-6-1, upon payment of the fee prescribed in this section, shall be issued an original identification card which shall remain valid for a period of ten (10) years.  All renewal identification cards issued to such persons shall also be valid for a period of ten (10) years.

          (b)  Any applicant who is not a United States citizen and who does not possess a social security number issued by the United States government, upon payment of the fee prescribed in this section, shall be issued an original identification card which shall remain valid for a period of one (1) year from date of issuance.  All renewal identification cards issued to such persons shall also be valid for a period of one (1) year from date of issuance.

     (4)  A fee of Seventeen Dollars ($17.00) shall be collected for the issuance of an original or renewal identification card plus the applicable photograph fee as provided in subsection (5) of this section.  The fee of Seventeen Dollars ($17.00) shall be deposited into the State General Fund.  The photograph fee shall be deposited into a special photograph fee account or the State General Fund as provided under subsection (5) of this section.

     (5)  The Commissioner of Public Safety, by rule or regulation, shall establish an identification card photograph fee which shall be the actual cost of the photograph rounded off to the next highest dollar.  Monies collected for the photograph fee shall be deposited into a special photograph fee account which the Department of Public Safety shall use to pay the actual cost of producing the photographs.  Any monies collected in excess of the actual costs of the photography shall be deposited to the General Fund of the State of Mississippi.

     (6)  Any person who, for medical reasons, surrenders his unexpired driver's license, and any person whose unexpired driver's license is suspended for medical reasons by the Commissioner of Public Safety under Section 63-1-53(e), may be issued an identification card without payment of a fee.  The identification card shall be valid for a period of four (4) years from its date of issue.  All renewals of such card shall be subject to the fees prescribed in subsections (4) and (5) of this section.

     (7)  The department shall maintain a record of all identification cards issued, except for those cards cancelled, surrendered or denied renewal.

     (8)  (a)  Any male who is at least eighteen (18) years of age but less than twenty-six (26) years of age and who applies for an identification card or a renewal of an identification card under this chapter shall be registered in compliance with the requirements of Section 3 of the Military Selective Service Act, 50 USCS Appx 451 et seq., as amended.

          (b)  The department shall forward in an electronic format the necessary personal information of the applicant to the Selective Service System.  The applicant's submission of the application shall serve as an indication that the applicant either has already registered with the Selective Service System or that he is authorizing the department to forward to the Selective Service System the necessary information for registration.  The commissioner shall notify the applicant on, or as a part of, the application that his submission of the application will serve as his consent to registration with the Selective Service System, if so required.  The commissioner also shall notify any male applicant under the age of eighteen (18) that he will be registered upon turning age eighteen (18) as required by federal law.

     SECTION 58.  Section 45-35-9, Mississippi Code of 1972, is amended as follows:

     45-35-9.  (1)  If an identification card issued under this chapter is lost, destroyed or mutilated, or a new name is required, the person to whom it was issued may obtain a duplicate by furnishing satisfactory proof of such fact to the department. The same identifying data shall be furnished for a duplicate as for an original card.  A fee of Five Dollars ($5.00) plus the applicable photograph fee shall be collected for the first  duplicate card issued and a fee of Eight Dollars ($8.00) plus the applicable photograph fee shall be collected for the second and each subsequent duplicate copy.  However, whenever a duplicate copy of an identification card is issued only because a new name is required and the previously issued identification card is returned to the department, the fee for the issuance of such duplicate shall be Three Dollars ($3.00) plus the applicable photograph fee, regardless of whether the duplicate is the first, second or subsequent duplicate copy.  All fees collected under this section, except photograph fees, shall be deposited into the State General Fund.  Photograph fees collected under this section shall be deposited into a special photograph fee account or into the State General Fund in the same manner as photograph fees collected from the issuance of drivers' licenses under Section 63-1-43.

     (2)  Any person who loses an identification card and who, after obtaining a duplicate, finds the original card shall promptly surrender the original card to the department.

     SECTION 59.  Section 63-1-43, Mississippi Code of 1972, is amended as follows:

     63-1-43.  (1)  The fee for receiving the application and issuing the regular driver's or operator's license and the fee for renewing the license shall be:

          (a)  Twenty-four Dollars ($24.00) plus the applicable photograph fee for each applicant for a four-year license;

          (b)  Nine Dollars ($9.00) plus the applicable photograph fee for each applicant for a one-year license, except as provided in paragraph (c) of this subsection; and

          (c)  Fourteen Dollars ($14.00) plus the applicable photograph fee for a one-year license for each applicant who is not a United States citizen and who does not possess a social security number issued by the United States government.

     All originals and renewals of regular operators' licenses shall be in compliance with Section 63-1-47.

     (2)  The fee for receiving the application and issuing a motorcycle endorsement shall be Five Dollars ($5.00).  Motorcycle endorsements shall be valid for the same period of time as the applicant's operator's license.

     (3)  The fee for receiving the application and issuing a restricted motorcycle operator's license and the fee for renewing such license shall be:

          (a)  Eleven Dollars ($11.00) plus the applicable photograph fee for a four-year license; and

          (b)  Eight Dollars ($8.00) plus the applicable photograph fee for a one-year license.

     All originals and renewals of restricted motorcycle licenses shall be valid for the same period of time that an original regular driver's license may be issued to such person in compliance with Section 63-1-47.

     (4)  From and after January 1, 1990, every person who makes application for an original license or a renewal license to operate a vehicle as a common carrier by motor vehicle, taxicab, passenger coach, dray, contract carrier or private commercial carrier as such terms are defined in Section 27-19-3, except for those vehicles for which a Class A, B or C license is required under Article 2 of this chapter, shall, in lieu of the regular driver's license above provided for, apply for and obtain a Class D commercial driver's license.  Except as otherwise provided in subsection (5) of this section, the fee for the issuance of a Class D commercial driver's license shall be Twenty-nine Dollars ($29.00) plus the applicable photograph fee for a period of four (4) years;however, except as required under Article 2 of this chapter, no driver of a pickup truck shall be required to have a commercial license regardless of the purpose for which the pickup truck is used.

     Except as otherwise provided in subsection (5) of this section, all originals and renewals of commercial licenses issued under this section shall be valid for a period of four (4) years, in compliance with Section 63-1-47.  Only persons who operate the above-mentioned vehicles in the course of the regular and customary business of the owner shall be required to obtain a Class D commercial operator's license, and persons operating such vehicles for private purposes or in emergencies shall not be required to obtain such license.

     (5)  The original and each renewal of a commercial driver's license issued under this section to a person who is not a United States citizen and who does not possess a social security number issued by the United States government shall be issued for a period of one (1) year for a fee of Eight Dollars ($8.00) plus the applicable photograph fee and shall expire one (1) year from the date of issuance.  Such person may renew a commercial license issued under this section within thirty (30) days of expiration of the license.

     (6)  The Commissioner of Public Safety, by rule or regulation, shall establish a driver's license photograph fee which shall be the actual cost of the photograph rounded off to the next highest dollar.  Monies collected for the photograph fee shall be deposited into a special photograph fee account which the Department of Public Safety shall use to pay the actual cost of producing the photographs.  Any monies collected in excess of the actual costs of the photography shall be deposited to the General Fund of the State of Mississippi.

     SECTION 60.  Section 63-1-21, Mississippi Code of 1972, is amended as follows:

     63-1-21.  (1)  Every applicant for a new or original driver's or operator's license, except persons holding an out-of-state license, shall first obtain a temporary driving permit upon the payment of a fee of Five Dollars ($5.00) to the Department of Public Safety and upon the successful completion of the examination provided for in Section 63-1-33 and the payment of the fee for such examination provided for in Section 63-1-43.

     (2)  A temporary driving permit entitles the holder, provided the permit is in his immediate possession, to drive a motor vehicle other than a motorcycle on the highways of the State of Mississippi only when accompanied by a licensed operator who is at least twenty-one (21) years of age and who is actually occupying the seat beside the driver.  A temporary driving permit may be issued to any applicant who is at least fifteen (15) years of age.  A temporary driving permit shall be valid for a period of one (1) year from the date of issue.

     (3)  An intermediate license allows unsupervised driving from 6:00 a.m. to 10:00 p.m.  At all other times the intermediate licensee must be supervised by a parent, guardian or other person age twenty-one (21) years or older who holds a valid driver's license under this article and who is actually occupying the seat beside the driver.

     (4)  The fee for issuance of an intermediate license shall be Five Dollars ($5.00).

     Except as otherwise provided by Section 63-1-6, every applicant for a restricted motorcycle operator's license or a motorcycle endorsement shall first obtain a temporary motorcycle driving permit upon the payment of a fee of One Dollar ($1.00) to the Department of Public Safety, and upon the successful completion of the examination provided for in Section 63-1-33, and payment of the fee for the examination provided for in Section 63-1-43.  All applicants for such temporary permit shall (a) be at least fifteen (15) years of age; (b) operate a motorcycle only under the direct supervision of a person at least twenty-one (21) years of age who possesses either a valid driver's or operator's license with a motorcycle endorsement or a valid restricted motorcycle operator's license; (c) be prohibited from transporting a passenger on a motorcycle; (d) be prohibited from operating a motorcycle upon any controlled access highway; and (e) be prohibited from operating a motorcycle during the hours of 6:00 p.m. through 6:00 a.m.  Temporary motorcycle driving permits shall be valid for the same period of time and may be renewed upon the same conditions as temporary driving permits issued for vehicles other than motorcycles.

     SECTION 61.  Section 63-1-37, Mississippi Code of 1972, is amended as follows:

     63-1-37.  If a license or temporary driving permit issued under the provisions of this article is lost or destroyed, the licensee shall obtain from the commissioner a duplicate copy thereof and shall pay a fee in the amount of Five Dollars ($5.00) plus the applicable photograph fee for the first duplicate copy and a fee in the amount of Eight Dollars ($8.00) plus the applicable photograph fee for the second and each subsequent duplicate copy.  The license or permit shall be marked "Duplicate."

     All fees collected under this section, except photograph fees, shall be deposited into the State General Fund.  Photograph fees collected under this section shall be deposited under the provisions of Section 63-1-43.

     SECTION 62.  Section 63-1-46, Mississippi Code of 1972, is amended as follows:

     63-1-46.  (1)  A fee of Fifty Dollars ($50.00) shall be charged for the reinstatement of a license issued under this article to every person whose license has been validly suspended, revoked or cancelled.  This fee shall be in addition to the fee provided for in Section 63-1-43.

     (2)  The funds received under the provisions of subsection (1) of this section shall be deposited into the State General Fund in accordance with Section 45-1-23.

     (3)  In addition to the fee provided for in subsection (1) of this section, an additional fee of Seventy-five Dollars ($75.00) shall be charged for the reinstatement of a license issued under this article to every person whose license has been suspended or revoked under the provisions of the Mississippi Implied Consent Law or as a result of a conviction of a violation of the Uniform Controlled Substances Law under the provisions of Section 63-1-71.

     (4)  The funds received under the provisions of subsection (3) of this section shall be placed in a special fund that is created in the State Treasury.  Monies in such special fund may be expended solely to contribute to the Disability and Relief Fund for members of the Mississippi Highway Safety Patrol such amounts as are necessary to make sworn agents of the Mississippi Bureau of Narcotics who were employed by such bureau before December 1, 1990, and who were later employed as enforcement troopers by the Department of Public Safety, full members of the retirement system for the Mississippi Highway Safety Patrol with full credit for the time they were employed as sworn agents for the Mississippi Bureau of Narcotics.  The Board of Trustees of the Public Employees' Retirement System shall certify to the State Treasurer the amounts necessary for the purposes described above.  The State Treasurer shall monthly transfer from the special fund created under this subsection the amounts deposited in such special fund to the Disability and Relief Fund for members of the Mississippi Highway Safety Patrol until such time as the certified amount has been transferred.  At such time as the certified amount has been transferred, the State Treasurer shall transfer any funds remaining in the special fund created under this subsection to the State General Fund and shall then dissolve such special fund.  This subsection (4) shall stand repealed at such time when the State Treasurer transfers funds and dissolves the special fund account in accordance with the provisions of this subsection.

     (5)  The procedure for the reinstatement of a license issued under this article that has been suspended for being out of compliance with an order for support, as defined in Section 93-11-153, and the payment of any fees for the reinstatement of a license suspended for that purpose, shall be governed by Section 93-11-157 or 93-11-163, as the case may be.

     SECTION 63.  Section 63-1-81, Mississippi Code of 1972, is brought forward as follows:

     63-1-81.  (1)  Each application for a commercial driver's license or commercial driver instruction permit shall include the following:

          (a)  The full name and the current mailing and residential address of the applicant;

          (b)  A physical description of the applicant, including sex, height, weight, eye and hair color;

          (c)  The applicant's date of birth;

          (d)  The applicant's social security number unless the application is for a nonresident commercial driver's license;

          (e)  The applicant's signature;

          (f)  The applicant's color photograph;

          (g)  All certifications required by applicable federal regulations;

          (h)  Any other information which the Commissioner of Public Safety, by rule or regulation, determines necessary and essential; and

          (i)  The consent of the applicant to release driving record information.

     (2)  Whenever a person who has applied for or who has been issued a license or permit under this article moves from the address listed in the application or on the permit or license, or whenever the name of a licensee changes by marriage or otherwise, such person, within thirty (30) days thereafter, shall notify, in writing, the Department of Public Safety, Driver Services Division, and inform the department of his or her previous address and new address and of his or her former name and new name.  The department shall not change the name of a licensee or permittee on his or her license or permit unless the applicant appears in person at an office of the department and provides a certified copy of his or her marriage license, court order, birth certificate or divorce decree changing the licensee's or permittee's name.

     (3)  The fee for accepting and processing an application for a commercial driver instruction permit shall be Ten Dollars ($10.00).

     (4)  The fee for accepting and processing an application for a Class A, B or C commercial driver's license shall be Twenty-five Dollars ($25.00).

     (5)  No person who has been a resident of this state for thirty (30) days may drive a commercial motor vehicle under the authority of a commercial driver's license issued by another jurisdiction.  Any violation of this subsection shall be punishable as provided by Section 63-1-69, Mississippi Code of 1972.

     (6)  Any person who knowingly falsifies information or certifications required under subsection (1) of this section shall be subject to the penalties prescribed in Section 63-1-59, Mississippi Code of 1972, and shall be subject to suspension of his commercial driver's instruction permit or commercial driver's license in accordance with Section 63-1-51, Mississippi Code of 1972.

     (7)  Each application or filing made under this section shall include the social security number(s) of the applicant in accordance with Section 93-11-64, Mississippi Code of 1972.

     (8)  (a)  Any male who is at least eighteen (18) years of age but less than twenty-six (26) years of age and who applies for a commercial license or renewal of a commercial license under this article shall be registered in compliance with the requirements of Section 3 of the Military Selective Service Act, 50 USCS Appx 451 et seq., as amended.

          (b)  The department shall forward in an electronic format the necessary personal information of the applicant to the Selective Service System.  The applicant's submission of the application shall serve as an indication that the applicant either has already registered with the Selective Service System or that he is authorizing the department to forward to the Selective Service System the necessary information for registration.  The commissioner shall notify the applicant on, or as a part of, the  application that his submission of the application will serve as his consent to registration with the Selective Service System, if so required.  The commissioner also shall notify any male applicant under the age of eighteen (18) that he will be registered upon turning age eighteen (18) as required by federal law.

     SECTION 64.  Section 63-1-82, Mississippi Code of 1972, is amended as follows:

     63-1-82.  (1)  Each commercial driver's license shall be marked "Commercial Driver's License" or "CDL" and shall, to the maximum extent practicable, be tamper proof.  Each such license shall include thereon, but not be limited to, the following information:

          (a)  The name and residential address of the licensee;

          (b)  The licensee's color photograph;

          (c)  A physical description of the licensee, including his sex, height, weight, eye and hair color;

          (d)  The licensee's date of birth;

          (e)  Except for a nonresident commercial driver's license, the licensee's social security number; and any other identifying information which the Commissioner of Public Safety, by rule or regulation, determines necessary and essential for the purposes of complying with the provisions of this article;

          (f)  The licensee's signature;

          (g)  The class or type of commercial motor vehicle or vehicles which the licensee is authorized to drive together with any endorsements or restrictions;

          (h)  The name of this state; and

          (i)  The dates between which the license is valid.

     (2)  The holder of a valid commercial driver's license may drive all vehicles in the class for which that license is issued and all lesser classes of vehicles, including any vehicle for which an operator's license or commercial driver's license issued under Article 1 of this chapter authorizes a person to drive. However, vehicles which require an endorsement may not be driven unless the proper endorsement appears on the license.

     (3)  Commercial driver's licenses may be issued with the following classifications:

          (a)  Class A.  Any combination of vehicles with a gross vehicle weight rating of twenty-six thousand one (26,001) pounds or more, provided the gross vehicle weight rating of the vehicle or vehicles being towed is in excess of ten thousand (10,000) pounds;

          (b)  Class B.  Any single vehicle with a gross vehicle weight rating of twenty-six thousand one (26,001) pounds or more, and any such vehicle towing a vehicle not in excess of ten thousand (10,000) pounds;

          (c)  Class C.  Any single vehicle with a gross vehicle weight rating of less than twenty-six thousand one (26,001) pounds or any such vehicle towing a vehicle with a gross vehicle weight rating not in excess of ten thousand (10,000) pounds comprising:

              (i)  Vehicles designed to transport sixteen (16) or more passengers, including the driver; and

              (ii)  Vehicles used in the transportation of hazardous materials which are required to be placarded under the Hazardous Materials Transportation Act, 49 USCS Appx., Section 1801 et seq.; and

          (d)  Class D.  All other vehicles or combination of vehicles which are not included in Class A, Class B or Class C and for which a commercial license is required to be issued as provided by Section 63-1-43, Mississippi Code of 1972.

     (4)  Commercial driver's licenses may be issued with the following endorsements and restrictions:

          (a)  "H" authorizes the driver to drive a vehicle transporting hazardous materials;

          (b)  "K" restricts the driver to vehicles not equipped with air brakes;

          (c)  "T" authorizes driving double and triple trailers;

          (d)  "P" authorizes driving vehicles carrying passengers;

          (e)  "N" authorizes driving tank vehicles;

          (f)  "X" represents a combination of hazardous materials and tank vehicle endorsements;

          (g)  "S" authorizes driving school buses operated for the purpose of transporting pupils to and from school or to school-related functions; and

          (h)  "F" restricts driving which requires a commercial license to intrastate driving only.

     (5)  Before issuing a commercial driver's license, the Commissioner of Public Safety shall obtain driving record information through the Commercial Driver License Information System.

     (6)  Within ten (10) days after issuing a commercial driver's license, the Commissioner of Public Safety shall notify the Commercial Driver License Information System of that fact, providing all information required to ensure identification of the person.

     (7)  The fee charged for the issuance of each original and each renewal of a Class A, B or C commercial driver's license shall be Forty-three Dollars ($43.00) plus the applicable photograph fee.  In addition, a fee of Five Dollars ($5.00) shall be charged for each endorsement entered on a commercial driver's license under subsection (4) of this section.

     (8)  If a commercial driver instruction permit or commercial driver's license is lost or destroyed, or if the holder of a commercial driver's license changes his name, mailing address or residence, an application for a duplicate permit or license shall be made as provided by Section 63-1-37, Mississippi Code of 1972.

     (9)  All commercial driver's licenses issued under the provisions of this article shall be issued for a period of not more than four (4) years and shall expire at midnight on the last day of the licensee's month of birth.

     (10)  Every person applying for renewal of a commercial driver's license shall complete the application form required by Section 63-1-81, Mississippi Code of 1972, providing updated information and required certifications and paying the appropriate fees.  If the applicant wishes to retain a hazardous materials endorsement, the written test for a hazardous materials endorsement must be taken and passed.

     (11)  A fee of Thirty-seven Dollars ($37.00), plus actual costs involved in conducting background record checks of applicants before issuing renewal, transfer or upgrade of a commercial driver's license with a hazardous material endorsement for the purpose of determining that the applicant does not pose a security threat warranting denial of such endorsement, shall be charged in addition to all other fees for the issuance of each original and each renewal of a Class A, B or C commercial driver's license.  The fees collected under this subsection shall be deposited into a special fund in the State Treasury.  Monies in the fund may be expended, upon legislative appropriation, solely for the purpose of paying administrative costs and expenses incurred by the department in performing background checks.

     (12)  The Commissioner of Public Safety, by rule or regulation, shall establish a driver's license photograph fee which shall be the actual cost of the photograph rounded off to the next highest dollar.  Monies collected for the photograph fee shall be deposited into a special photograph fee account which the Department of Public Safety shall use to pay the actual cost of producing the photographs.  Any monies collected in excess of the actual costs of the photography shall be deposited to the General Fund of the State of Mississippi.

     SECTION 65.  Section 63-15-4, Mississippi Code of 1972, is brought forward as follows:

     63-15-4.  (1)  The following vehicles are exempted from the requirements of this section:

          (a)  Vehicles exempted by Section 63-15-5;

          (b)  Vehicles for which a bond or a certificate of deposit of money or securities in at least the minimum amounts required for proof of financial responsibility is on file with the department;

          (c)  Vehicles that are self-insured under Section 63-15-53; and

          (d)  Implements of husbandry.

     (2)  (a)  Every motor vehicle operated in this state shall have an insurance card maintained in the vehicle as proof of liability insurance that is in compliance with the liability limits required by Section 63-15-3(j).  The insured parties shall be responsible for maintaining the insurance card in each vehicle.

          (b)  An insurance company issuing a policy of motor vehicle liability insurance as required by this section shall furnish to the insured an insurance card for each vehicle at the time the insurance policy becomes effective.

     (3)  Upon stopping a motor vehicle at a roadblock where all passing motorists are checked as a method to enforce traffic laws or upon stopping a motor vehicle for any other statutory violation, a law enforcement officer, who is authorized to issue traffic citations, shall verify that the insurance card required by this section is in the motor vehicle.  However, no driver shall be stopped or detained solely for the purpose of verifying that an insurance card is in the motor vehicle unless the stop is part of such roadblock.

     (4)  Failure of the owner or the operator of a motor vehicle to have the insurance card in the motor vehicle is a misdemeanor and, upon conviction, is punishable by a fine of Five Hundred Dollars ($500.00) and suspension of driving privilege for a period of one (1) year or until the owner of the motor vehicle shows proof of liability insurance that is in compliance with the liability limits required by Section 63-15-3(j).  Fraudulent use of an insurance card shall be punishable in accordance with Section 97-7-10.  The funds from such fines shall be deposited in the State General Fund in the State Treasury.  However, if such fines are levied in a municipal court, twenty-five percent (25%) of the funds from such fines shall be deposited in the general fund of the municipality.  If such fines are levied in any of the courts of the county, twenty-five percent (25%) of the funds from such fines shall be deposited in the general fund of the county.

     (5)  If, at the hearing date or the date of payment of the fine, the motor vehicle owner shows proof of motor vehicle liability insurance in the amounts required by Section 63-15-3(j), the fine shall be reduced to One Hundred Dollars ($100.00).  If the owner shows proof that such insurance was in effect at the time of citation, the case shall be dismissed as to the defendant with prejudice and all court costs shall be waived against the defendant.

     SECTION 66.  Section 63-21-63, Mississippi Code of 1972, is amended as follows:

     63-21-63.  There shall be paid to the State Tax Commission for issuing and processing documents required by this chapter, fees for motor vehicles according to the following schedule:

(a)  Each application for certificate of title issued under Section 63-21-9(2).................................................... $14.00;

(b)  Each application for certificate of title not issued under Section 63-21-9(2).................................................. 14.00;

          (c)  Each application for replacement or

corrected certificate of title.......................... 14.00;

          (d)  Each suspension or revocation of

certificate of title.................................... 14.00;

(e)  Each notice of security interest......... 14.00;

(f)  Each release of security interest........ 14.00;

(g)  Each assignment by lienholder............ 14.00;

          (h)  Each application for information as to

the status of the title of a vehicle.................... 14.00.

     The designated agent may add the sum of One Dollar ($1.00) to each document processed for which a fee is charged to be retained as his commission for services rendered.  All other fees collected shall be remitted to the State Tax Commission.

     If more than one (1) transaction be involved in any application on a single vehicle and if supported by all required documents, the fee charged by the State Tax Commission and by the designated agent for processing and issuing shall be considered as only one (1) transaction.

     SECTION 67.  The following shall be codified as Section 7-3-30, Mississippi Code of 1972:

     7-3-30.  The Secretary of State shall provide for the annual publication of a Judiciary Directory and Court Calendar, which shall be made available for sale for not less than Two Dollars and Fifty Cents ($2.50) per copy, plus the actual cost of shipping and handling.  The Secretary of State shall pay the proceeds of those sales into the State General Fund.

     SECTION 68.  Section 25-7-81, Mississippi Code of 1972, is amended as follows:

     25-7-81.  (1)  The Secretary of State shall charge the following fees:

(a)  For every commission issued by him to persons appointed by the Governor as a commissioner of this state in any other state, territory, or district of the United States, or in any foreign country................. $10.00

(b)  For recording charter of a corporation for literary, religious, benevolent, fraternal, or scientific purposes, and not for pecuniary profits, directly or

indirectly............................................... 20.00

(c)  For commission of each notary public...... 25.00

(d)  For commission of each commissioner of

deeds.................................................... 10.00

     (2)  In addition to the fees charged under subsection (1)(c) of this section, the Secretary of State shall charge a fee of Ten Dollars ($10.00) for the commissioning of notaries public, which shall be deposited into the State General Fund.

     SECTION 69.  Section 79-4-1.22, Mississippi Code of 1972, is amended as follows:

     79-4-1.22.  (a)  The Secretary of State shall collect the following fees when the documents described in this subsection are delivered to him for filing:

              Document                                   Fee

(1)  Articles of incorporation...............   $50.00

          (2)  Application for use of indistinguishable

name....................................     5.00

(3)  Application for reserved name...........    25.00

(4)  Notice of transfer of reserved name.....    25.00

(5)  Application for registered name.........    50.00

(6)  Application for renewal of registered

     name....................................    50.00

          (7)  Corporation's statement of change of

              registered agent or registered office

or both.................................    10.00

          (8)  Agent's statement of change of registered

office for each affected corporation....    10.00

not to exceed a total of................ 1,000.00

(9)  Agent's statement of resignation........   No fee

(10)  Amendment of articles of incorporation.    50.00

(11)  Restatement of articles of incorporation   50.00

 with amendment of articles.............    50.00

(12)  Articles of merger or share exchange...    50.00

(13)  Articles of dissolution................    25.00

(14)  Articles of revocation of dissolution..    25.00

(15)  Certificate of administrative dissolution  No fee

          (16)  Application for reinstatement following

 administrative dissolution.............    50.00

(17)  Certificate of reinstatement...........   No fee

(18)  Certificate of judicial dissolution....   No fee

(19)  Application for certificate of authority  500.00

          (20)  Application for amended certificate of

 authority..............................    50.00

(21)  Application for certificate of withdrawal  l25.00

          (22)  Certificate of revocation of authority to

 transact business......................   No fee

          (23)  Application for reinstatement following

 administrative revocation..............   100.00

(24)  Certificate of reinstatement...........   No fee

(25)  Annual report..........................    25.00

(26)  Articles of correction.................    50.00

          (27)  Application for certificate of existence

 or authorization.......................    25.00

          (28)  Any other document required or permitted

 to be filed by Section 79-4-1.01 et seq...   25.00

     (b)  The Secretary of State shall collect a fee of Twenty-five Dollars ($25.00) each time process is served on him under Section 79-4-1.01 et seq.  The party to a proceeding causing service of process is entitled to recover this fee as costs if he prevails in the proceeding.

     (c)  The Secretary of State shall collect the following fees for copying and certifying the copy of any filed document relating to a domestic or foreign corporation:

          (1)  One Dollar ($1.00) a page for copying; and

          (2)  Ten Dollars ($10.00) for the certificate.

     (d)  The Secretary of State may collect a filing fee greater than the fee set out herein, not to exceed the actual costs of processing such filing, if the form for such filing prescribed by the Secretary of State has not been used.

     (e)  In addition to any other fees charged under this section, the Secretary of State shall charge the following fees:

(1)  Articles of incorporation...............   $25.00

(2)  Agent's statement of resignation........   $25.00

(3)  Annual report...........................   $25.00

     The fees collected under this subsection (e) shall be deposited into the State General Fund.

     SECTION 70.  Section 75-9-525, Mississippi Code of 1972, is amended as follows:

     [Until December 31, 2007, this section shall read as follows:]

     75-9-525.  (a)  Except as otherwise provided in subsection (e), the fee for filing and indexing a record under this part, other than an initial financing statement of the kind described in subsection (b) is the amount specified in subsection (c), if applicable, plus:

          (1)  Ten Dollars ($10.00) if the record is communicated in writing and is in the standard form prescribed by the Secretary of State;

          (2)  Thirteen Dollars ($13.00) if the record is communicated in writing and is not in the standard form prescribed by the Secretary of State; and

          (3)  Eight Dollars ($8.00) if the record is communicated by another medium authorized by filing-office rule.

     In addition to the fees charged in paragraphs (1), (2) and (3) of this subsection (a), a fee of Ten Dollars ($10.00) shall be charged on all transactions described in paragraphs (1) and (2), and a fee of Eight Dollars ($8.00) shall be charged on all transactions described in paragraph (3).  The fees collected under this paragraph shall be deposited into the State General Fund.      (b)  Except as otherwise provided in subsection (e), the fee for filing and indexing an initial financing statement of the following kind is the amount specified in subsection (c), if applicable, plus:

          (1)  Thirteen Dollars ($13.00) if the financing statement indicates that it is filed in connection with a public-finance transaction;

          (2)  Ten Dollars ($10.00) if the financing statement indicates that it is filed in connection with a manufactured-home transaction.

     In addition to the fees charged in paragraphs (1) and (2) of this subsection (b), a fee of Ten Dollars ($10.00) shall be charged on all transactions described in paragraphs (1) and (2) of this subsection (b).  The fees collected under this paragraph shall be deposited into the State General Fund.

     (c)  Except as otherwise provided in subsection (e), if a record is communicated in writing, the fee for each additional debtor name more than one (1) required to be indexed is Four Dollars ($4.00). 

     In addition to the fee charged in this subsection (c), a fee of Sixteen Dollars ($16.00) shall be charged on all transactions described in this subsection.  The fees collected under this paragraph shall be deposited into the State General Fund.

     (d)  The fee for responding to a request for information from the filing office, including for issuing a certificate showing whether there is on file any financing statement naming a particular debtor, is:

          (1)  Five Dollars ($5.00) if the request is communicated in writing on the standard form prescribed by the Secretary of State;

          (2)  Ten Dollars ($10.00) if the request is communicated in writing and is not in the standard form prescribed by the Secretary of State;

          (3)  Three Dollars ($3.00) if the request is communicated by another medium authorized by filing-office rule; and

          (4)  An additional fee of Two Dollars ($2.00) shall be paid by the requesting party for each financing statement listed on the filing officer's certificate, the aggregate of which shall be billed to the requesting party at the time the filing officer's certificate is issued.

     In addition to the fees charged in paragraphs (1), (2), (3) and (4) of this subsection (d), a fee of Five Dollars ($5.00) shall be charged on all transactions described in paragraphs (1), (2), (3) and (4) of this subsection.  The fees collected under this paragraph shall be deposited into the State General Fund.

     (e)  This section does not require a fee to the chancery clerk with respect to a record of a mortgage which is effective as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut under Section 75-9-502(c).  However, the recording and satisfaction fees to the chancery clerk that otherwise would be applicable under Section 25-7-9 to the record of the mortgage apply.

     [From and after December 31, 2007, this section shall read as follows:]

     75-9-525.  (a)  Except as otherwise provided in subsection (e), the fee for filing and indexing a record under this part, other than an initial financing statement of the kind described in subsection (b) is the amount specified in subsection (c), if applicable, plus:

          (1)  Five Dollars ($5.00) if the record is communicated in writing and is in the standard form prescribed by the Secretary of State;

          (2)  Eight Dollars ($8.00) if the record is communicated in writing and is not in the standard form prescribed by the Secretary of State; and

          (3)  Three Dollars ($3.00) if the record is communicated by another medium authorized by filing-office rule.

     In addition to the fees charged in paragraphs (1), (2) and (3) of this subsection (a), a fee of Ten Dollars ($10.00) shall be charged on all transactions described in paragraphs (1) and (2), and a fee of Eight Dollars ($8.00) shall be charged on all transactions described in paragraph (3).  The fees collected under this paragraph shall be deposited into the State General Fund.      (b)  Except as otherwise provided in subsection (e), the fee for filing and indexing an initial financing statement of the following kind is the amount specified in subsection (c), if applicable, plus:

          (1)  Eight Dollars ($8.00) if the financing statement indicates that it is filed in connection with a public-finance transaction;

          (2)  Five Dollars ($5.00) if the financing statement indicates that it is filed in connection with a manufactured-home transaction.

     In addition to the fees charged in paragraphs (1) and (2) of this subsection (b), a fee of Ten Dollars ($10.00) shall be charged on all transactions described in paragraphs (1) and (2) of this subsection (b).  The fees collected under this paragraph shall be deposited into the State General Fund.

     (c)  Except as otherwise provided in subsection (e), if a record is communicated in writing, the fee for each additional debtor name more than one (1) required to be indexed is Four Dollars ($4.00).

     In addition to the fee charged in this subsection (c), a fee of Sixteen Dollars ($16.00) shall be charged on all transactions described in this subsection.  The fees collected under this paragraph shall be deposited into the State General Fund.

     (d)  The fee for responding to a request for information from the filing office, including for issuing a certificate showing whether there is on file any financing statement naming a particular debtor, is:

          (1)  Five Dollars ($5.00) if the request is communicated in writing on the standard form prescribed by the Secretary of State;

          (2)  Ten Dollars ($10.00) if the request is communicated in writing and is not in the standard form prescribed by the Secretary of State;

          (3)  Three Dollars ($3.00) if the request is communicated by another medium authorized by filing-office rule; and

          (4)  An additional fee of Two Dollars ($2.00) shall be paid by the requesting party for each financing statement listed on the filing officer's certificate, the aggregate of which shall be billed to the requesting party at the time the filing officer's certificate is issued.

     In addition to the fees charged in paragraphs (1), (2), (3) and (4) of this subsection (d), a fee of Five Dollars ($5.00) shall be charged on all transactions described in paragraphs (1), (2), (3) and (4) of this subsection.  The fees collected under this paragraph shall be deposited into the State General Fund.

     (e)  This section does not require a fee to the chancery clerk with respect to a record of a mortgage which is effective as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut under Section 75-9-502(c).  However, the recording and satisfaction fees to the chancery clerk that otherwise would be applicable under Section 25-7-9 to the record of the mortgage apply.

     SECTION 71.  Section 75-63-65, Mississippi Code of 1972, is amended as follows:

     75-63-65.  (1)  Any establishment or organization which engages in the business of selling preneed merchandise and/or services shall register with the Secretary of State and shall pay a registration fee.  A separate registration is required for each separate corporation or business entity.  The establishment or organization shall pay to the Secretary of State for the registration of the main establishment or organization a fee of Three Hundred Fifty Dollars ($350.00).

     (2)  Any person who engages in the business of selling preneed contracts shall register with the Secretary of State.

     (3)  The Secretary of State shall establish regulations to register each establishment or organization selling preneed merchandise or services.  No establishment or organization shall be registered to sell preneed merchandise or services that the establishment or organization cannot lawfully provide at the time of a person's death.  The Secretary of State shall also maintain a record of all individuals who are registered to sell preneed merchandise or services through the registered establishment.

     (4)  The Secretary of State shall establish regulations to register each person selling preneed contracts, including the establishment through which the seller will be selling.  No person shall be registered to sell preneed contracts without indicating the establishment for which he or she is selling.

     (5)  The Secretary of State shall develop and furnish the forms necessary for the registration of establishments and individuals selling preneed contracts.

     (6)  The Secretary of State shall charge the following fees under this article:

(a)  Renewal of registration for establishments and organizations  $50.00

(b)  Registration of agents.................... $20.00

(c)  Renewal of registration for agents........ $20.00

(d)  Filing of sales reports................... $50.00

     The fees collected under this subsection shall be deposited into the State General Fund.

     SECTION 72.  Section 75-71-409, Mississippi Code of 1972, is amended as follows:

     75-71-409.  (1)  (a)  At the time the registration of a securities offering or notification of a securities offering pursuant to Section 75-71-408(a) is filed, every person filing such registration or notification shall pay a filing fee of one-tenth of one percent (1/10 of 1%) of the dollar amount to be registered, with the minimum fee to be One Hundred Fifty Dollars ($150.00) and the maximum fee to be One Thousand Dollars ($1,000.00).

          (b)  When a registration is withdrawn before the effective date or a preeffective stop order is entered under Sections 75-71-425 through 75-71-431, the Secretary of State shall retain the greater of One Hundred Fifty Dollars ($150.00) or forty percent (40%) of the fee.

          (c)  The Secretary of State may by rule or otherwise set a fee for changing the name of an issuer or offering filed with his office.

     (2)  The Secretary of State shall charge the following fees under this chapter:

          (a)  Initial registration statements - processing

fee..................................................... $100.00

          (b)  Renewal fee in addition to initial

offering................................................ $100.00

     The fees collected under this subsection shall be deposited into the State General Fund.

     SECTION 73.  Section 79-11-109, Mississippi Code of 1972, is amended as follows:

     79-11-109.  (1)  Except as otherwise provided in subsection (4) of this section, the Secretary of State shall collect the following fees when the documents described in this subsection are delivered for filing:

             Document                                        Fee

(a)  Articles of incorporation...............   $50.00

          (b)  Application for use of indistinguishable name

.......................................................    25.00

(c)  Application for reserved name...........    25.00

(d)  Notice of transfer of reserved name.....    25.00

(e)  Application for registered name.........    50.00

(f)  Application for renewal of registered name   50.00

(g)  Corporation's statement of change of registered agent or registered office or both.........................................    10.00

(h)  Agent's statement of change of registered office for each affected corporation............................................    10.00

Not to exceed a total of..................... 1,000.00

(i)  Agent's statement of resignation........   No Fee

(j)  Amendment of articles of incorporation..    50.00

(k)  Restatement of articles of incorporation with amendments   50.00

(l)  Articles of merger......................    50.00

(m)  Articles of dissolution.................    25.00

(n)  Articles of revocation of dissolution...    25.00

(o)  Certificate of administrative dissolution  No Fee

(p)  Application for reinstatement following administrative dissolution   50.00

(q)  Certificate of reinstatement............   No Fee

(r)  Certificate of judicial dissolution.....   No Fee

(s)  Application for certificate of authority  100.00

(t)  Application for amended certificate of

authority...............................................   50.00

(u)  Application for certificate of withdrawal  25.00

          (v)  Certificate of revocation of authority to

transact business....................................... No Fee

(w)  Status report............................   25.00

(x)  Articles of correction...................   50.00

          (y)  Application for certificate of existence or

authorization...........................................   25.00

          (z)  Any other document required or permitted

to be filed by Sections 79-11-101 et seq................   25.00

     (2)  Except as otherwise provided in subsection (4) of this section, the Secretary of State shall collect a fee of Twenty-five Dollars ($25.00) upon being served with process under Sections 79-11-101 et seq.  The party to a proceeding causing service of process is entitled to recover the fee paid the Secretary of State as costs if the party prevails in the proceeding.

     (3)  Except as otherwise provided in subsection (4) of this section, the Secretary of State shall collect the following fees for copying and certifying the copy of any filed document relating to a domestic or foreign corporation:

          (a)  One Dollar ($1.00) a page for copying; and

          (b)  Ten Dollars ($10.00) for the certificate.

     (4)  The Secretary of State may collect a filing fee greater than the fee set forth in subsections (1), (2) and (3) in an amount not to exceed twice the fee set forth in subsections (1), (2) and (3) of processing the filing, if the form prescribed by the Secretary of State for such filing has not been used.

     (5)  In addition to any other fees charged in this section, the Secretary of State shall charge the following fees:

(a)  Articles of incorporation................. $25.00

          (b)  Corporation's statement of change

of registered agent or registered office or both......... $25.00

     The fees collected under this subsection shall be deposited into the State General Fund.

     SECTION 74.  Section 79-11-504, Mississippi Code of 1972, is amended as follows:

     79-11-504.  (1)  The Secretary of State shall have the authority to:

          (a)  Promulgate rules of procedure and regulations necessary for the administration of Sections 79-11-501 through 79-11-529, subject to the provisions of the Mississippi Administrative Procedures Law.

          (b)  Honor written requests from interested person for interpretative opinions regarding registration and exemptions from registration.

          (c)  Publish and disseminate information to the public concerning persons subject to Sections 79-11-501 through 79-11-529.

          (d)  Perform any other functions and duties which may be necessary to carry out the provisions of Sections 79-11-501 through 79-11-529.

     (2)  The Secretary of State shall charge the following fees under Sections 79-11-501 through 79-11-529:

(a)  Registration of exempt organizations..... $50.00

(b)  Registration of solicitors............... $50.00

(c)  Renewal of solicitors registration....... $50.00

(d)  Filing of solicitation campaign notices.. $50.00

          (e)  Issuing opinion letters--charitable and

fundraising............................................. $100.00

     The fees collected under this subsection shall be deposited into the State General Fund.

     SECTION 75.  Section 79-29-1203, Mississippi Code of 1972, is amended as follows:

     79-29-1203.  (1)  The Secretary of State shall charge and collect a fee for:

          (a)  Filing of Reservation of Limited Liability Company Name, Twenty-Five Dollars ($25.00).

          (b)  Filing of Change of Address of Registered Agent, Twenty-Five Dollars ($25.00).

          (c)  Filing of Resignation of Registered Agent, Five Dollars ($5.00).

          (d)  Filing of Certificate of Formation, Fifty Dollars ($50.00).

          (e)  Filing of Amendment to Certificate of Formation, Fifty Dollars ($50.00).

          (f)  Filing of Certificate of Dissolution, Twenty-Five Dollars ($25.00).

          (g)  Filing of Certificate of Cancellation, Twenty-Five Dollars ($25.00).

          (h) Filing of Restated Certificate of Formation or Amended and Restated Certificate of Formation, Twenty-Five Dollars ($25.00).

          (i)  Filing of Certificate of Withdrawal, Twenty-Five Dollars ($25.00).

          (j)  Filing of Application for Registration of Foreign Limited Liability Company, Two Hundred Fifty Dollars ($250.00).

          (k)  Filing of Certificate Correcting Application for Registration of Foreign Limited Liability Company, Fifty Dollars ($50.00).

          (l)  Filing of Certificate of Cancellation of Registration of Foreign Limited Liability Company, Twenty-Five Dollars ($25.00).

          (m)  Any other document required or permitted to be filed under this chapter, Twenty-Five Dollars ($25.00).

     (2)  In addition to any other fees charged under this section, the Secretary of State shall charge the following fees:

(a)  For filing a certificate of formation..... $25.00

(b)  For filing annual reports................. $75.00

     The fees collected under this subsection shall be deposited into the State General Fund.

     SECTION 76.  Section 75-76-131, Mississippi Code of 1972, is brought forward as follows:

     75-76-131.  (1)  The executive director shall:

          (a)  Ascertain and keep himself informed of the identity, prior activities and present location of all gaming employees in the State of Mississippi; and

          (b)  Maintain confidential records of such information.

     (2)  No person may be employed as a gaming employee unless he is the holder of a work permit issued by the commission.

     (3)  A work permit issued to a gaming employee must have clearly imprinted thereon a statement that it is valid for gaming purposes only.

     (4)  Application for a work permit is to be made to the executive director and may be granted or denied for any cause deemed reasonable by the commission.  Whenever the executive director denies such an application, he shall include in the notice of the denial a statement of the facts upon which he relied in denying the application.

     (5)  Any person whose application for a work permit has been denied by the executive director may, not later than sixty (60) days after receiving notice of the denial or objection, apply to the commission for a hearing before a hearing examiner.  A failure of a person whose application has been denied to apply for a hearing within sixty (60) days or his failure to appear at a hearing conducted pursuant to this section shall be deemed to be an admission that the denial or objection is well founded and precludes administrative or judicial review.  At the hearing, the hearing examiner appointed by the commission shall take any testimony deemed necessary.  After the hearing the hearing examiner shall within thirty (30) days after the date of the hearing announce his decision sustaining or reversing the denial of the work permit or the objection to the issuance of a work permit.  The executive director may refuse to issue a work permit if the applicant has:

          (a)  Failed to disclose, misstated or otherwise attempted to mislead the commission with respect to any material fact contained in the application for the issuance or renewal of a work permit;

          (b)  Knowingly failed to comply with the provisions of this chapter or the regulations of the commission at a place of previous employment;

          (c)  Committed, attempted or conspired to commit any crime of moral turpitude, embezzlement or larceny or any violation of any law pertaining to gaming, or any crime which is inimical to the declared policy of this state concerning gaming;

          (d)  Been identified in the published reports of any federal or state legislative or executive body as being a member or associate of organized crime, or as being of notorious and unsavory reputation;

          (e)  Been placed and remains in the constructive custody of any federal, state or municipal law enforcement authority;

          (f)  Had a work permit revoked or committed any act which is a ground for the revocation of a work permit or would have been a ground for revoking his work permit if he had then held a work permit; or

          (g)  For any other reasonable cause.

     The executive director shall refuse to issue a work permit if the applicant has committed, attempted or conspired to commit a crime which is a felony in this state or an offense in another state or jurisdiction which would be a felony if committed in this state.

     (6)  Any applicant aggrieved by the decision of the hearing examiner may, within fifteen (15) days after the announcement of the decision, apply in writing to the commission for review of the decision.  Review is limited to the record of the proceedings before the hearing examiner.  The commission may sustain or reverse the hearing examiner's decision.  The commission may decline to review the hearing examiner's decision, in which case the hearing examiner's decision becomes the final decision of the commission.  The decision of the commission is subject to judicial review.

     (7)  All records acquired or compiled by the commission relating to any application made pursuant to this section and all lists of persons to whom work permits have been issued or denied and all records of the names or identity of persons engaged in the gaming industry in this state are confidential and must not be disclosed except in the proper administration of this chapter or to an authorized law enforcement agency.  Any record of the commission which shows that the applicant has been convicted of a crime in another state must show whether the crime was a misdemeanor, gross misdemeanor, felony or other class of crime as classified by the state in which the crime was committed.  In a disclosure of the conviction, reference to the classification of the crime must be based on the classification in the state where it was committed.

     (8)  A work permit expires unless renewed within ten (10) days after a change of place of employment or if the holder thereof is not employed as a gaming employee within the jurisdiction of the issuing authority for more than ninety (90) days.

     (9)  Notice of any objection to or denial of a work permit by the executive director as provided pursuant to this section is sufficient if it is mailed to the applicant's last known address as indicated on the application for a work permit.  The date of mailing may be proven by a certificate signed by the executive director or his designee that specifies the time the notice was mailed.  The notice is presumed to have been received by the applicant five (5) days after it is deposited with the United States Postal Service with the postage thereon prepaid.

     SECTION 77.  Section 27-7-15, Mississippi Code of 1972, is amended as follows:

     27-7-15.  (1)  For the purposes of this article, except as otherwise provided, the term "gross income" means and includes the income of a taxpayer derived from salaries, wages, fees or compensation for service, of whatever kind and in whatever form paid, including income from governmental agencies and subdivisions thereof; or from professions, vocations, trades, businesses, commerce or sales, or renting or dealing in property, or reacquired property; also from annuities, interest, rents, dividends, securities, insurance premiums, reinsurance premiums, considerations for supplemental insurance contracts, or the transaction of any business carried on for gain or profit, or gains, or profits, and income derived from any source whatever and in whatever form paid.  The amount of all such items of income shall be included in the gross income for the taxable year in which received by the taxpayer.  The amount by which an eligible employee's salary is reduced pursuant to a salary reduction agreement authorized under Section 25-17-5 shall be excluded from the term "gross income" within the meaning of this article.

     (2)  In determining gross income for the purpose of this section, the following, under regulations prescribed by the commissioner, shall be applicable:

          (a)  Dealers in property.  Federal rules, regulations and revenue procedures shall be followed with respect to installment sales unless a transaction results in the shifting of income from inside the state to outside the state.

          (b)  Casual sales of property.

              (i)  Prior to January 1, 2001, federal rules, regulations and revenue procedures shall be followed with respect to installment sales except they shall be applied and administered as if H.R. 3594, the Installment Tax Correction Act of 2000 of the 106th Congress, had not been enacted.  This provision will generally affect taxpayers, reporting on the accrual method of accounting, entering into installment note agreements on or after December 17, 1999.  Any gain or profit resulting from the casual sale of property will be recognized in the year of sale.

              (ii)  From and after January 1, 2001, federal rules, regulations and revenue procedures shall be followed with respect to installment sales except as provided in this subparagraph (ii).  Gain or profit from the casual sale of property shall be recognized in the year of sale.  When a taxpayer recognizes gain on the casual sale of property in which the gain is deferred for federal income tax purposes, a taxpayer may elect to defer the payment of tax resulting from the gain as allowed and to the extent provided under regulations prescribed by the commissioner.  If the payment of the tax is made on a deferred basis, the tax shall be computed based on the applicable rate for the income reported in the year the payment is made.  Except as otherwise provided in subparagraph (iii) of this paragraph (b), deferring the payment of the tax shall not affect the liability for the tax.  If at any time the installment note is sold, contributed, transferred or disposed of in any manner and for any purpose by the original note holder, or the original note holder is merged, liquidated, dissolved or withdrawn from this state, then all deferred tax payments under this section shall immediately become due and payable.

              (iii)  If the selling price of the property is reduced by any alteration in the terms of an installment note, including default by the purchaser, the gain to be recognized is recomputed based on the adjusted selling price in the same manner as for federal income tax purposes.  The tax on this amount, less the previously paid tax on the recognized gain, is payable over the period of the remaining installments.  If the tax on the previously recognized gain has been paid in full to this state, the return on which the payment was made may be amended for this purpose only.  The statute of limitations in Section 27-7-49 shall not bar an amended return for this purpose.

          (c)  Reserves of insurance companies.  In the case of insurance companies, any amounts in excess of the legally required reserves shall be included as gross income.

          (d)  Affiliated companies or persons.  As regards sales, exchanges or payments for services from one to another of affiliated companies or persons or under other circumstances where the relation between the buyer and seller is such that gross proceeds from the sale or the value of the exchange or the payment for services are not indicative of the true value of the subject matter of the sale, exchange or payment for services, the commissioner shall prescribe uniform and equitable rules for determining the true value of the gross income, gross sales, exchanges or payment for services, or require consolidated returns of affiliates.

          (e)  Alimony and separate maintenance payments.  The federal rules, regulations and revenue procedures in determining the deductibility and taxability of alimony payments shall be followed in this state.

          (f)  Reimbursement for expenses of moving.  There shall be included in gross income (as compensation for services) any amount received or accrued, directly or indirectly, by an individual as a payment for or reimbursement of expenses of moving from one residence to another residence which is attributable to employment or self-employment.

     (3)  In the case of taxpayers other than residents, gross income includes gross income from sources within this state.

     (4)  The words "gross income" do not include the following items of income which shall be exempt from taxation under this article:

          (a)  The proceeds of life insurance policies and contracts paid upon the death of the insured.  However, the income from the proceeds of such policies or contracts shall be included in the gross income.

          (b)  The amount received by the insured as a return of premium or premiums paid by him under life insurance policies, endowment, or annuity contracts, either during the term or at maturity or upon surrender of the contract.

          (c)  The value of property acquired by gift, bequest, devise or descent, but the income from such property shall be included in the gross income.

          (d)  Interest upon the obligations of the United States or its possessions, or securities issued under the provisions of the Federal Farm Loan Act of July 17, 1916, or bonds issued by the War Finance Corporation, or obligations of the State of Mississippi or political subdivisions thereof.

          (e)  The amounts received through accident or health insurance as compensation for personal injuries or sickness, plus the amount of any damages received for such injuries or such sickness or injuries, or through the War Risk Insurance Act, or any law for the benefit or relief of injured or disabled members of the military or naval forces of the United States.

          (f)  Income received by any religious denomination or by any institution or trust for moral or mental improvements, religious, Bible, tract, charitable, benevolent, fraternal, missionary, hospital, infirmary, educational, scientific, literary, library, patriotic, historical or cemetery purposes or for two (2) or more of such purposes, if such income be used exclusively for carrying out one or more of such purposes.

          (g)  Income received by a domestic corporation which is "taxable in another state" as this term is defined in this article, derived from business activity conducted outside this state.  Domestic corporations taxable both within and without the state shall determine Mississippi income on the same basis as provided for foreign corporations under the provisions of this  article.

          (h)  In case of insurance companies, there shall be excluded from gross income such portion of actual premiums received from an individual policyholder as is paid back or credited to or treated as an abatement of premiums of such policyholder within the taxable year.

          (i)  Income from dividends that has already borne a tax as dividend income under the provisions of this article, when such dividends may be specifically identified in the possession of the recipient.

          (j)  Amounts paid by the United States to a person as added compensation for hazardous duty pay as a member of the Armed Forces of the United States in a combat zone designated by Executive Order of the President of the United States.

          (k)  Amounts received as retirement allowances, pensions, annuities or optional retirement allowances paid under the federal Social Security Act, the Railroad Retirement Act, the Federal Civil Service Retirement Act, or any other retirement system of the United States government, retirement allowances paid under the Mississippi Public Employees' Retirement System, Mississippi Highway Safety Patrol Retirement System or any other retirement system of the State of Mississippi or any political subdivision thereof.  The exemption allowed under this paragraph (k) shall be available to the spouse or other beneficiary at the death of the primary retiree.

          (l)  Amounts received as retirement allowances, pensions, annuities or optional retirement allowances paid by any public or governmental retirement system not designated in paragraph (k) or any private retirement system or plan of which the recipient was a member at any time during the period of his employment.  Amounts received as a distribution under a Roth Individual Retirement Account shall be treated in the same manner as provided under the Internal Revenue Code of 1986, as amended.  The exemption allowed under this paragraph (l) shall be available to the spouse or other beneficiary at the death of the primary retiree.

          (m)  Compensation not to exceed the aggregate sum of Five Thousand Dollars ($5,000.00) for any taxable year received by a member of the National Guard or Reserve Forces of the United States as payment for inactive duty training, active duty training and state active duty.

          (n)  Compensation received for active service as a member below the grade of commissioned officer and so much of the compensation as does not exceed the maximum enlisted amount received for active service as a commissioned officer in the Armed Forces of the United States for any month during any part of which such members of the Armed Forces (i) served in a combat zone as designated by Executive Order of the President of the United States or a qualified hazardous duty area as defined by federal law, or both; or (ii) was hospitalized as a result of wounds, disease or injury incurred while serving in such combat zone.  For the purposes of this paragraph (n), the term "maximum enlisted amount" means and has the same definition as that term has in 26 USCS 112.

          (o)  The proceeds received from federal and state forestry incentives programs.

          (p)  The amount representing the difference between the increase of gross income derived from sales for export outside the United States as compared to the preceding tax year wherein gross income from export sales was highest, and the net increase in expenses attributable to such increased exports.  In the absence of direct accounting the ratio of net profits to total sales may be applied to the increase in export sales.  This paragraph (p) shall only apply to businesses located in this state engaging in the international export of Mississippi goods and services.  Such goods or services shall have at least fifty percent (50%) of value added at a location in Mississippi.

          (q)  Amounts paid by the federal government for the construction of soil conservation systems as required by a conservation plan adopted pursuant to 16 USCS 3801 et seq.

          (r)  The amount deposited in a medical savings account, and any interest accrued thereon, that is a part of a medical savings account program as specified in the Medical Savings Account Act under Sections 71-9-1 through 71-9-9; provided, however, that any amount withdrawn from such account for purposes other than paying eligible medical expense or to procure health coverage shall be included in gross income.

          (s)  Amounts paid by the Mississippi Soil and Water Conservation Commission from the Mississippi Soil and Water Cost-Share Program for the installation of water quality best management practices.

          (t)  Dividends received by a holding corporation, as defined in Section 27-13-1, from a subsidiary corporation, as defined in Section 27-13-1.

          (u)  Interest, dividends, gains or income of any kind on any account in the Mississippi Affordable College Savings Trust Fund, as established in Sections 37-155-101 through 37-155-125, to the extent that such amounts remain on deposit in the MACS Trust Fund or are withdrawn pursuant to a qualified withdrawal, as defined in Section 37-155-105.

          (v)  Interest, dividends or gains accruing on the payments made pursuant to a prepaid tuition contract, as provided for in Section 37-155-17.

          (w)  Income resulting from transactions with a related member where the related member subject to tax under this chapter was required to, and did in fact, add back the expense of such transactions as required by Section 27-7-17(2).  Under no circumstances may the exclusion from income exceed the deduction add-back of the related member, nor shall the exclusion apply to any income otherwise excluded under this chapter.

          (x)  Amounts that are subject to the tax levied pursuant to Section 27-7-901, and are paid to patrons by gaming establishments licensed under the Mississippi Gaming Control Act.

          (y)  Amounts that are subject to the tax levied pursuant to Section 27-7-903, and are paid to patrons by gaming establishments not licensed under the Mississippi Gaming Control Act.

          (z)  Interest, dividends, gains or income of any kind on any account in a qualified tuition program and amounts received as distributions under a qualified tuition program shall be treated in the same manner as provided under the United States Internal Revenue Code, as amended.  For the purposes of this paragraph (z), the term "qualified tuition program" means and has the same definition as that term has in 26 USCS 529.

          (aa)  The amount deposited in a health savings account, and any interest accrued thereon, that is a part of a health savings account program as specified in the Health Savings Accounts Act created in Sections 83-62-1 through 83-62-9; however, any amount withdrawn from such account for purposes other than paying qualified medical expenses or to procure health coverage shall be included in gross income, except as otherwise provided by Sections 83-62-7 and 83-62-9.

          (bb)  Amounts received as qualified disaster relief payments shall be treated in the same manner as provided under the United States Internal Revenue Code, as amended.

          (cc)  Amounts received as a "qualified Hurricane Katrina distribution" as defined in the United States Internal Revenue Code, as amended.

          (dd)  Amounts received as overtime compensation required by the Fair Labor Standards Act of 1938 (29 USCS Section 201 et seq.), as amended.

     (5)  Prisoners of war, missing in action-taxable status.

          (a)  Members of the Armed Forces.  Gross income does not include compensation received for active service as a member of the Armed Forces of the United States for any month during any part of which such member is in a missing status, as defined in paragraph (d) of this subsection, during the Vietnam Conflict as a result of such conflict.

          (b)  Civilian employees.  Gross income does not include compensation received for active service as an employee for any month during any part of which such employee is in a missing status during the Vietnam Conflict as a result of such conflict.

          (c)  Period of conflict.  For the purpose of this subsection, the Vietnam Conflict began February 28, 1961, and ends on the date designated by the President by Executive Order as the date of the termination of combatant activities in Vietnam.  For the purpose of this subsection, an individual is in a missing status as a result of the Vietnam Conflict if immediately before such status began he was performing service in Vietnam or was performing service in Southeast Asia in direct support of military operations in Vietnam.  "Southeast Asia," as used in this paragraph, is defined to include Cambodia, Laos, Thailand and waters adjacent thereto.

          (d)  "Missing status" means the status of an employee or member of the Armed Forces who is in active service and is officially carried or determined to be absent in a status of (i) missing; (ii) missing in action; (iii) interned in a foreign country; (iv) captured, beleaguered or besieged by a hostile force; or (v) detained in a foreign country against his will; but does not include the status of an employee or member of the Armed Forces for a period during which he is officially determined to be absent from his post of duty without authority.

          (e)  "Active service" means active federal service by an employee or member of the Armed Forces of the United States in an active duty status.

          (f)  "Employee" means one who is a citizen or national of the United States or an alien admitted to the United States for permanent residence and is a resident of the State of Mississippi and is employed in or under a federal executive agency or department of the Armed Forces.

          (g)  "Compensation" means (i) basic pay; (ii) special pay; (iii) incentive pay; (iv) basic allowance for quarters; (v)  basic allowance for subsistence; and (vi) station per diem allowances for not more than ninety (90) days.

          (h)  If refund or credit of any overpayment of tax for any taxable year resulting from the application of subsection (5)  of this section is prevented by the operation of any law or rule of law, such refund or credit of such overpayment of tax may, nevertheless, be made or allowed if claim therefor is filed with the State Tax Commission within three (3) years after the date of the enactment of this subsection.

          (i)  The provisions of this subsection shall be effective for taxable years ending on or after February 28, 1961.

     (6)  A shareholder of an S corporation, as defined in Section 27-8-3(1)(g), shall take into account the income, loss, deduction or credit of the S corporation only to the extent provided in Section 27-8-7(2).

     SECTION 78.  Section 27-7-17, Mississippi Code of 1972, is amended as follows:

     27-7-17.  In computing taxable income, there shall be allowed as deductions:

     (1)  Business deductions.

          (a)  Business expenses.  All the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including a reasonable allowance for salaries or other compensation for personal services actually rendered; nonreimbursable traveling expenses incident to current employment, including a reasonable amount expended for meals and lodging while away from home in the pursuit of a trade or business; and rentals or other payments required to be made as a condition of the continued use or possession, for purposes of the trade or business of property to which the taxpayer has not taken or is not taking title or in which he had no equity.  Expense incurred in connection with earning and distributing nontaxable income is not an allowable deduction.  Limitations on entertainment expenses shall conform to the provisions of the Internal Revenue Code of 1986.

          (b)  Interest.  All interest paid or accrued during the taxable year on business indebtedness, except interest upon the indebtedness for the purchase of tax-free bonds, or any stocks, the dividends from which are nontaxable under the provisions of this article; provided, however, in the case of securities dealers, interest payments or accruals on loans, the proceeds of which are used to purchase tax-exempt securities, shall be deductible if income from otherwise tax-free securities is reported as income.  Investment interest expense shall be limited to investment income.  Interest expense incurred for the purchase of treasury stock, to pay dividends, or incurred as a result of an undercapitalized affiliated corporation may not be deducted unless an ordinary and necessary business purpose can be established to the satisfaction of the commissioner.  For the purposes of this paragraph, the phrase "interest upon the indebtedness for the purchase of tax-free bonds" applies only to the indebtedness incurred for the purpose of directly purchasing tax-free bonds and does not apply to any other indebtedness incurred in the regular course of the taxpayer's business.  Any corporation, association, organization or other entity taxable under Section 27-7-23(c) shall allocate interest expense as provided in Section 27-7-23(c)(3)(I).

          (c)  Taxes.  Taxes paid or accrued within the taxable year, except state and federal income taxes, excise taxes based on or measured by net income, estate and inheritance taxes, gift taxes, cigar and cigarette taxes, gasoline taxes, and sales and use taxes unless incurred as an item of expense in a trade or business or in the production of taxable income.  In the case of an individual, taxes permitted as an itemized deduction under the provisions of subsection (3)(a) of this section are to be claimed thereunder.

          (d)  Business losses.

              (i)  Losses sustained during the taxable year not compensated for by insurance or otherwise, if incurred in trade or business, or nonbusiness transactions entered into for profit.

              (ii)  Limitations on losses from passive activities and rental real estate shall conform to the provisions of the Internal Revenue Code of 1986.

          (e)  Bad debts.  Losses from debts ascertained to be worthless and charged off during the taxable year, if sustained in the conduct of the regular trade or business of the taxpayer; provided, that such losses shall be allowed only when the taxpayer has reported as income, on the accrual basis, the amount of such debt or account.

          (f)  Depreciation.  A reasonable allowance for exhaustion, wear and tear of property used in the trade or business, or rental property, and depreciation upon buildings based upon their reasonable value as of March 16, 1912, if acquired prior thereto, and upon cost if acquired subsequent to that date.

          (g)  Depletion.  In the case of mines, oil and gas wells, other natural deposits and timber, a reasonable allowance for depletion and for depreciation of improvements, based upon cost, including cost of development, not otherwise deducted, or fair market value as of March 16, 1912, if acquired prior to that date, such allowance to be made upon regulations prescribed by the commissioner, with the approval of the Governor.

          (h)  Contributions or gifts.  Except as otherwise provided in subsection (3)(a) of this section for individuals, contributions or gifts made by corporations within the taxable year to corporations, organizations, associations or institutions, including Community Chest funds, foundations and trusts created solely and exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inure to the benefit of any private stockholder or individual.  This deduction shall be allowed in an amount not to exceed twenty percent (20%) of the net income.  Such contributions or gifts shall be allowable as deductions only if verified under rules and regulations prescribed by the commissioner, with the approval of the Governor.  Contributions made in any form other than cash shall be allowed as a deduction, subject to the limitations herein provided, in an amount equal to the actual market value of the contributions at the time the contribution is actually made and consummated.

          (i)  Reserve funds - insurance companies.  In the case of insurance companies the net additions required by law to be made within the taxable year to reserve funds when such reserve funds are maintained for the purpose of liquidating policies at maturity.

          (j)  Annuity income.  The sums, other than dividends, paid within the taxpayer year on policy or annuity contracts when such income has been included in gross income.

          (k)  Contributions to employee pension plans.  Contributions made by an employer to a plan or a trust forming part of a pension plan, stock bonus plan, disability or death-benefit plan, or profit-sharing plan of such employer for the exclusive benefit of some or all of his, their, or its employees, or their beneficiaries, shall be deductible from his, their, or its income only to the extent that, and for the taxable year in which, the contribution is deductible for federal income tax purposes under the Internal Revenue Code of 1986 and any other provisions of similar purport in the Internal Revenue Laws of the United States, and the rules, regulations, rulings and determinations promulgated thereunder, provided that:

              (i)  The plan or trust be irrevocable.

              (ii)  The plan or trust constitute a part of a pension plan, stock bonus plan, disability or death-benefit plan, or profit-sharing plan for the exclusive benefit of some or all of the employer's employees and/or officers, or their beneficiaries, for the purpose of distributing the corpus and income of the plan or trust to such employees and/or officers, or their beneficiaries.

              (iii)  No part of the corpus or income of the plan or trust can be used for purposes other than for the exclusive benefit of employees and/or officers, or their beneficiaries.

     Contributions to all plans or to all trusts of real or personal property (or real and personal property combined) or to insured plans created under a retirement plan for which provision has been made under the laws of the United States of America, making such contributions deductible from income for federal income tax purposes, shall be deductible only to the same extent under the Income Tax Laws of the State of Mississippi.

          (l)  Net operating loss carrybacks and carryovers.  A net operating loss for any taxable year ending after December 31, 1993, and taxable years thereafter, shall be a net operating loss carryback to each of the three (3) taxable years preceding the taxable year of the loss.  If the net operating loss for any taxable year is not exhausted by carrybacks to the three (3) taxable years preceding the taxable year of the loss, then there shall be a net operating loss carryover to each of the fifteen (15) taxable years following the taxable year of the loss beginning with any taxable year after December 31, 1991.

     For any taxable year ending after December 31, 1997, the period for net operating loss carrybacks and net operating loss carryovers shall be the same as those established by the Internal Revenue Code and the rules, regulations, rulings and determinations promulgated thereunder as in effect at the taxable year end or on December 31, 2000, whichever is earlier.

      A net operating loss for any taxable year ending after December 31, 2001, and taxable years thereafter, shall be a net operating loss carryback to each of the two (2) taxable years preceding the taxable year of the loss.  If the net operating loss for any taxable year is not exhausted by carrybacks to the two (2) taxable years preceding the taxable year of the loss, then there shall be a net operating loss carryover to each of the twenty (20) taxable years following the taxable year of the loss beginning with any taxable year after the taxable year of the loss.

     The term "net operating loss," for the purposes of this paragraph, shall be the excess of the deductions allowed over the gross income; provided, however, the following deductions shall not be allowed in computing same:

              (i)  No net operating loss deduction shall be allowed.

              (ii)  No personal exemption deduction shall be allowed.

              (iii)  Allowable deductions which are not attributable to taxpayer's trade or business shall be allowed only to the extent of the amount of gross income not derived from such trade or business.

     Any taxpayer entitled to a carryback period as provided by this paragraph may elect to relinquish the entire carryback period with respect to a net operating loss for any taxable year ending after December 31, 1991.  The election shall be made in the manner prescribed by the State Tax Commission and shall be made by the due date, including extensions of time, for filing the taxpayer's return for the taxable year of the net operating loss for which the election is to be in effect.  The election, once made for any taxable year, shall be irrevocable for that taxable year.

          (m)  Amortization of pollution or environmental control facilities.  Allowance of deduction.  Every taxpayer, at his election, shall be entitled to a deduction for pollution or environmental control facilities to the same extent as that allowed under the Internal Revenue Code and the rules, regulations, rulings and determinations promulgated thereunder.

          (n)  Dividend distributions - real estate investment trusts.  "Real estate investment trust" (hereinafter referred to as REIT) shall have the meaning ascribed to such term in Section 856 of the federal Internal Revenue Code of 1986, as amended.  A REIT is allowed a dividend distributed deduction if the dividend distributions meet the requirements of Section 857 or are otherwise deductible under Section 858 or 860, federal Internal Revenue Code of 1986, as amended.  In addition:

              (i)  A dividend distributed deduction shall only be allowed for dividends paid by a publicly traded REIT.  A qualified REIT subsidiary shall be allowed a dividend distributed deduction if its owner is a publicly traded REIT.

              (ii)  Income generated from real estate contributed or sold to a REIT by a shareholder or related party shall not give rise to a dividend distributed deduction, unless the shareholder or related party would have received the dividend distributed deduction under this chapter.

              (iii)  A holding corporation receiving a dividend from a REIT shall not be allowed the deduction in Section 27-7-15(4)(t).

              (iv)  Any REIT not allowed the dividend distributed deduction in the federal Internal Revenue Code of 1986, as amended, shall not be allowed a dividend distributed deduction under this chapter.

     The commissioner is authorized to promulgate rules and regulations consistent with the provisions in Section 269 of the federal Internal Revenue Code of 1986, as amended, so as to prevent the evasion or avoidance of state income tax.

          (o)  Contributions to college savings trust fund accounts.  Contributions or payments to a Mississippi Affordable College Savings Program account are deductible as provided under Section 37-155-113.  Payments made under a prepaid tuition contract entered into under the Mississippi Prepaid Affordable College Tuition Program are deductible as provided under Section 37-155-17.

     (2)  Restrictions on the deductibility of certain intangible expenses and interest expenses with a related member.

          (a)  As used in this subsection (2):

              (i)  "Intangible expenses and costs" include:

                   1.  Expenses, losses and costs for, related to, or in connection directly or indirectly with the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange or any other disposition of intangible property to the extent such amounts are allowed as deductions or costs in determining taxable income under this chapter;

                   2.  Expenses or losses related to or incurred in connection directly or indirectly with factoring transactions or discounting transactions;

                   3.  Royalty, patent, technical and copyright fees;

                   4.  Licensing fees; and

                   5.  Other similar expenses and costs.

              (ii)  "Intangible property" means patents, patent applications, trade names, trademarks, service marks, copyrights and similar types of intangible assets.

              (iii)  "Interest expenses and cost" means amounts directly or indirectly allowed as deductions for purposes of determining taxable income under this chapter to the extent such interest expenses and costs are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, maintenance, management, ownership, sale, exchange or disposition of intangible property.

              (iv)  "Related member" means an entity or person that, with respect to the taxpayer during all or any portion of the taxable year, is a related entity, a component member as defined in the Internal Revenue Code, or is an entity or a person to or from whom there is attribution of stock ownership in accordance with Section 1563(e) of the Internal Revenue Code.

              (v)  "Related entity" means:

                   1.  A stockholder who is an individual or a member of the stockholder's family, as defined in regulations prescribed by the commissioner, if the stockholder and the members of the stockholder's family own, directly, indirectly, beneficially or constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer's outstanding stock;

                   2.  A stockholder, or a stockholder's partnership, limited liability company, estate, trust or corporation, if the stockholder and the stockholder's partnerships, limited liability companies, estates, trusts and corporations own, directly, indirectly, beneficially or constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer's outstanding stock;

                   3.  A corporation, or a party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation, if the taxpayer owns, directly, indirectly, beneficially or constructively, at least fifty percent (50%) of the value of the corporation's outstanding stock under regulation prescribed by the commissioner;

                   4.  Any entity or person which would be a related member under this section if the taxpayer were considered a corporation for purposes of this section.

          (b)  In computing net income, a taxpayer shall add back otherwise deductible interest expenses and costs and intangible expenses and costs directly or indirectly paid, accrued to or incurred, in connection directly or indirectly with one or more direct or indirect transactions with one or more related members.

          (c)  The adjustments required by this subsection shall not apply to such portion of interest expenses and costs and intangible expenses and costs that the taxpayer can establish meets one (1) of the following:

              (i)  The related member directly or indirectly paid, accrued or incurred such portion to a person during the same income year who is not a related member; or

              (ii)  The transaction giving rise to the interest expenses and costs or intangible expenses and costs between the taxpayer and related member was done primarily for a valid business purpose other than the avoidance of taxes, and the related member is not primarily engaged in the acquisition, use, maintenance or management, ownership, sale, exchange or any other disposition of intangible property.

          (d)  Nothing in this subsection shall require a taxpayer to add to its net income more than once any amount of interest expenses and costs or intangible expenses and costs that the taxpayer pays, accrues or incurs to a related member.

          (e)  The commissioner may prescribe such regulations as necessary or appropriate to carry out the purposes of this subsection, including, but not limited to, clarifying definitions of terms, rules of stock attribution, factoring and discount transactions.

     (3)  Individual nonbusiness deductions.

          (a)  The amount allowable for individual nonbusiness itemized deductions for federal income tax purposes where the individual is eligible to elect, for the taxable year, to itemize deductions on his federal return except the following:

              (i)  The deduction for state income taxes paid or other taxes allowed for federal purposes in lieu of state income taxes paid;

              (ii)  The deduction for gaming losses from gaming establishments;

              (iii)  The deduction for taxes collected bylicensed gaming establishments pursuant to Section 27-7-901;

              (iv)  The deduction for taxes collected by gaming establishments pursuant to Section 27-7-903.

          (b)  In lieu of the individual nonbusiness itemized deductions authorized in paragraph (a), for all purposes other than ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, an optional standard deduction of:

              (i)  Three Thousand Four Hundred Dollars ($3,400.00) through calendar year 1997, Four Thousand Two Hundred Dollars ($4,200.00) for the calendar year 1998 and Four Thousand Six Hundred Dollars ($4,600.00) for each calendar year thereafter in the case of married individuals filing a joint or combined return;

              (ii)  One Thousand Seven Hundred Dollars ($1,700.00) through calendar year 1997, Two Thousand One Hundred Dollars ($2,100.00) for the calendar year 1998 and Two Thousand Three Hundred Dollars ($2,300.00) for each calendar year thereafter in the case of married individuals filing separate returns;

              (iii)  Three Thousand Four Hundred Dollars ($3,400.00) in the case of a head of family; or

              (iv)  Two Thousand Three Hundred Dollars ($2,300.00) in the case of an individual who is not married.

     In the case of a husband and wife living together, having separate incomes, and filing combined returns, the standard deduction authorized may be divided in any manner they choose.  In the case of separate returns by a husband and wife, the standard deduction shall not be allowed to either if the taxable income of one of the spouses is determined without regard to the standard deduction.

          (c)  An individual eligible for the itemized deductions authorized in paragraph (a) of this subsection (3) or the standard deduction authorized in paragraph (b) of this subsection (3) may claim a deduction for expenses incurred for medical care or prescribed drugs, or both, for the individual, the individual's  spouse or dependents, regardless of the amount of such expenses incurred during the taxable year.  An individual may not claim a deduction for expenses that are compensated for by insurance or otherwise.  For the purposes of this paragraph (c), the terms "medical care" and "prescribed drugs" have the same definitions as those terms have in 26 USCS 213.

          (d)  A nonresident individual shall be allowed the same individual nonbusiness deductions as are authorized for resident individuals in * * * this subsection; however, the nonresident individual is entitled only to that proportion of the individual nonbusiness deductions as his net income from sources within the State of Mississippi bears to his total or entire net income from all sources.

     (4)  Nothing in this section shall permit the same item to be deducted more than once, either in fact or in effect.

     SECTION 79.  Section 27-55-11, Mississippi Code of 1972, is amended as follows:

     27-55-11.  Any person in business as a distributor of gasoline or who acts as a distributor of gasoline, as defined in this article, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax equal to Eighteen Cents (18¢) per gallon until the date specified in Section 65-39-35, and Sixteen and Four-tenths Cents (16.4¢) per gallon thereafter, on all gasoline and blend stock stored, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, use on the highways, storage, distribution, or for any purpose.

     Any person in business as a distributor of aviation gasoline, or who acts as a distributor of aviation gasoline, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax equal to Six and Four-tenths Cents (6.4¢) per gallon on all aviation gasoline stored, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, storage, distribution or for any purpose.

     The excise taxes collected under this section shall be paid and distributed in accordance with Section 27-5-101.

     The tax herein imposed and assessed shall be collected and paid to the State of Mississippi but once in respect to any gasoline.  The basis for determining the tax liability shall be the correct invoiced gallons, adjusted to sixty (60) degrees Fahrenheit at the refinery or point of origin of shipment when such shipment is made by tank car or by motor carrier.  The point of origin of shipment of gasoline transported into this state by pipelines shall be deemed to be that point in this state where such gasoline is withdrawn from the pipeline for storage or distribution, and adjustment to sixty (60) degrees Fahrenheit shall there be made.  The basis for determining the tax liability on gasoline shipped into this state in barge cargoes and by pipeline shall be the actual number of gallons adjusted to sixty (60) degrees Fahrenheit unloaded into storage tanks or other containers in this state, such gallonage to be determined by measurement and/or gauge of storage tank or tanks or by any other method authorized by the commission.  The tank or tanks into which barge cargoes of gasoline are discharged, or into which gasoline transported by pipeline is discharged, shall have correct gauge tables listing capacity, such gauge tables to be prepared by some recognized calibrating agency and to be approved by the commission.

     The tax levied herein shall accrue at the time gasoline is withdrawn from a refinery in this state except when withdrawal is by pipeline, barge, ship or vessel.  The refiner shall pay to the commission the tax levied herein when gasoline is sold or delivered to persons who do not hold gasoline distributor permits.  The refiner shall report to the commission all sales and deliveries of gasoline to bonded distributors of gasoline.  The bonded distributor of gasoline who purchases, receives or acquires gasoline from a refinery in this state shall report such gasoline and pay the tax levied herein.

     Gasoline imported by common carrier shall be deemed to be received by the distributor of gasoline, and the tax levied herein shall accrue, when the car or tank truck containing such gasoline is unloaded by the carrier.

     With respect to distributors or other persons who bring, ship, have transported, or have brought into this state gasoline by means other than through a common carrier, the tax accrues and the tax liability attaches on the distributor or other person for each gallon of gasoline brought into the state at the time when and at the point where such gasoline is brought into the state.

     The tax levied herein shall accrue on blend stock at the time it is blended with gasoline.  The blender shall pay to the commission the tax levied herein when blend stock is sold or delivered to persons who do not hold gasoline distributor permits. The blender shall report to the commission all sales and deliveries of blend stock to bonded distributors of gasoline.  The bonded distributor of gasoline who purchases, receives or acquires blend stock from a blender in this state shall report blend stock and pay the tax levied herein.

     SECTION 80.  Section 27-5-101, Mississippi Code of 1972, is amended as follows:

     [With regard to any county which is exempt from the provisions of Section 19-2-3, this section shall read as follows:]

     27-5-101.  Unless otherwise provided in this section, on or before the fifteenth day of each month, all gasoline, diesel fuel or kerosene taxes which are levied under the laws of this state and collected during the previous month shall be paid and apportioned by the State Tax Commission as follows:

          (a)  (i)  Except as otherwise provided in Section 31-17-127, from the gross amount of gasoline, diesel fuel or kerosene taxes produced by the state, there shall be deducted an amount equal to one-sixth (1/6) of principal and interest certified by the State Treasurer to the State Tax Commission to be due on the next semiannual bond and interest payment date, as required under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue on a parity with the bonds issued under authority of said Chapter 130.  The State Treasurer shall certify to the State Tax Commission on or before the fifteenth day of each month the amount to be paid to the "Highway Bonds Sinking Fund" as provided by said Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, on a parity with the bonds issued under authority of said Chapter 130; and the State Tax Commission shall, on or before the twenty-fifth day of each month, pay into the State Treasury for credit to the "Highway Bonds Sinking Fund" the amount so certified to him by the State Treasurer due to be paid into such fund each month.  The payments to the "Highway Bonds Sinking Fund" shall be made out of gross gasoline, diesel fuel or kerosene tax collections before deductions of any nature are considered; however, such payments shall be deducted from the allocation to the Mississippi Department of Transportation under paragraph (c) of this section.

              (ii)  From collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5 there shall be deducted:

                   1.  An amount as provided in Section 27-65-75(4) to the credit of a special fund designated as the "Office of State Aid Road Construction."

                   2.  An amount equal to the tax collections derived from Two Cents (2¢) per gallon of the gasoline excise tax for distribution to the State Highway Fund to be used exclusively for the construction, reconstruction and maintenance of highways of the State of Mississippi or the payment of interest and principal on bonds when specifically authorized by the Legislature for that purpose.

                   3.  The balance shall be deposited in the State Treasury to the credit of the State Highway Fund.

          (b)  Subject to the provisions that said basis of distribution shall in nowise affect adversely the amount specifically pledged in paragraph (a) of this section to be paid into the "Highway Bonds Sinking Fund," the following shall be deducted from the amount produced by the state tax on gasoline, diesel fuel or kerosene tax collections, excluding collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5:

              (i)  Twenty percent (20%) of such amount which shall be earmarked and set aside for the construction, reconstruction and maintenance of the highways and roads of the state, provided that if such twenty percent (20%) should reduce any county to a lesser amount than that received in the fiscal year ending June 30, 1966, then such twenty percent (20%) shall be reduced to a percentage to provide that no county shall receive less than its portion for the fiscal year ending June 30, 1966;

              (ii)  The amount allowed as refund on gasoline or as tax credit on diesel fuel or kerosene used for agricultural, maritime, industrial, domestic, and nonhighway purposes;

              (iii)  Five percent (5%) of such amount shall be paid to the State Highway Fund;

              (iv)  The amount or portion thereof authorized by legislative appropriation to the Fisheries and Wildlife Fund created under Section 59-21-25;

              (v)  The amount for deposit into the special aviation fund under paragraph (d) of this section; and

              (vi)  The remainder shall be divided on a basis of nine-fourteenths (9/14) and five-fourteenths (5/14) (being the same basis as Four and One-half Cents (4-1/2¢) and Two and One-half Cents (2-1/2¢) is to Seven Cents (7¢) on gasoline, and six and forty-three one-hundredths (6.43) and three and fifty-seven one-hundredths (3.57) is to Ten Cents (10¢) on diesel fuel or kerosene).  The amount produced by the nine-fourteenths (9/14) division shall be allocated to the Transportation Department and paid into the State Treasury as provided in this section and in Section 27-5-103 and the five-fourteenths (5/14) division shall be returned to the counties of the state on the following basis:

                   1.  In each fiscal year, each county shall be paid each month the same percentage of the monthly total to be distributed as was paid to that county during the same month in the fiscal year which ended April 9, 1960, until the county receives One Hundred Ninety Thousand Dollars ($190,000.00) in such fiscal year, at which time funds shall be distributed under the provisions of paragraph (b)(vi)4 of this section.

                   2.  If after payments in 1 above, any county has not received a total of One Hundred Ninety Thousand Dollars ($190,000.00) at the end of the fiscal year ending June 30, 1961, and each fiscal year thereafter, then any available funds not distributed under 1 above shall be used to bring such county or counties up to One Hundred Ninety Thousand Dollars ($190,000.00) or such funds shall be divided equally among such counties not reaching One Hundred Ninety Thousand Dollars ($190,000.00) if there is not sufficient money to bring all the counties to said One Hundred Ninety Thousand Dollars ($190,000.00).

                   3.  When a county has been paid an amount equal to the total which was paid to the same county during the fiscal year ended April 9, 1960, such county shall receive no further payments during the then current fiscal year until the last month of such current fiscal year, at which time distribution will be made under 2 above, except as set out in 4 below.

                   4.  During the last month of the current fiscal year, should it be determined that there are funds available in excess of the amount distributed for the year under 1 and 2 above, then such excess funds shall be distributed among the various counties as follows:

                        One-third (1/3) of such excess to be divided equally among the counties;

                        One-third (1/3) of such excess to be paid to the counties in the proportion which the population of each county bears to the total population of the state according to the last federal census;

                        One-third (1/3) of such excess to be paid to the counties in the proportion which the number of square miles of each county bears to the total square miles in the state.

                   5.  It is the declared purpose and intent of the Legislature that no county shall be paid less than was paid during the year ended April 9, 1960, unless the amount to be distributed to all counties in any year is less than the amount distributed to all counties during the year ended April 9, 1960.

     The Municipal Aid Fund as established by Section 27-5-103 shall not participate in any portion of any funds allocated to any county hereunder over and above One Hundred Ninety Thousand Dollars ($190,000.00).

     In any county having countywide road or bridge bonds, or supervisors district or district road or bridge bonds outstanding, which exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county or district, it shall be the duty of the board of supervisors to set aside not less than sixty percent (60%) of such county's share or district's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

     In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than thirty-five percent (35%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road or bridge bonds as they mature.

     In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than twenty percent (20%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road and bridge bonds as they mature.

     In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which do not exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than ten percent (10%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

     The portion of any such county's share of the gasoline, diesel fuel or kerosene taxes thus set aside for the payment of the principal and interest of road or bridge bonds, as provided for in this section, shall be used first in paying the currently maturing installments of the principal and interest of such countywide road or bridge bonds, if there be any such countywide road or bridge bonds outstanding, and secondly, in paying the currently maturing installments of principal and interest of district road or bridge bonds outstanding.  It shall be the duty of the board of supervisors to pay bonds and interest maturing in each supervisors district out of the supervisors district's share of the gasoline, diesel fuel or kerosene taxes of such district.

     The remaining portion of such county's share of the gasoline, diesel fuel or kerosene taxes, after setting aside the portion above provided for the payment of the principal and interest of bonds, shall be used in the construction and maintenance of any public highways, bridges, or culverts of the county, including the roads in special or separate road districts, in the discretion of the board of supervisors, or in paying the interest and principal of county road and bridge bonds or district road and bridge bonds, in the discretion of the board of supervisors.

     In any county having no countywide road or bridge bonds or district road or bridge bonds outstanding, all such county's share of the gasoline, diesel fuel or kerosene taxes shall be used in the construction, reconstruction, and maintenance of the public highways, bridges, or culverts of the county as the board of supervisors may determine.

     In every county in which there are county road bonds or seawall or road protection bonds outstanding which were issued for the purpose of building bridges or constructing public roads or seawalls, such funds shall be used in the manner provided by law.

          (c)  From the amount produced by the nine-fourteenths (9/14) division allocated to the Transportation Department, there shall be deducted:

              (i)  The amount paid to the State Treasurer for the "Highway Bonds Sinking Fund" under paragraph (a) of this section;

              (ii)  Any amounts due counties in accordance with Section 65-33-45 which have outstanding bonds issued for seawall or road protection purposes, issued under provisions of Chapter 319, Laws of 1924, and amendments thereto;

              (iii)  Beginning August 15, 2002, and on or before the fifteenth day of each month thereafter, an amount equal to one-sixth (1/6) of the principal and interest certified by the State Treasurer to the State Tax Commission to be due on the next semiannual bond and interest payment date for the bonds issued under Sections 65-39-5 through 65-39-33.  On or before the twenty-fifth day of each month the State Tax Commission shall pay into the State Treasury for credit to the Gaming Counties Bond Sinking Fund created in Section 65-39-3, the amount so certified by the State Treasurer;

              (iv)  Except as otherwise provided in Section 31-17-127, the remainder shall be paid by the State Tax Commission to the State Treasurer on the fifteenth day of each month next succeeding the month in which the gasoline, diesel fuel or kerosene taxes were collected to the credit of the State Highway Fund.

     The funds allocated for the construction, reconstruction, and improvement of state highways, bridges, and culverts, or so much thereof as may be necessary, shall first be used in conjunction with funds supplied by the federal government for such purposes and allocated to the State Transportation Department to be expended on the state highway system.  It is specifically provided hereby that the necessary portion of such funds hereinabove allocated to the State Transportation Department may be used for the prompt payment of principal and interest on highway bonds heretofore issued, including such bonds issued or to be issued under the provisions of Chapter 312, Laws of 1956, and amendments thereto.

     Nothing contained in this section shall be construed to reduce the amount of such gasoline, diesel fuel or kerosene excise taxes levied by the state, allotted under the provisions of Title 65, Chapter 33, Mississippi Code of 1972, to counties in which there are outstanding bonds issued for seawall or road protection purposes issued under the provisions of Chapter 319, Laws of 1924, and amendments thereto; the amount of said gasoline, diesel fuel or kerosene excise taxes designated in this section for the payment of bonds and interest authorized and issued or to be issued under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, shall, in such counties, be considered as being paid "into the State Treasury to the credit of the State Highway Fund" within the meaning of Section 65-33-45 in computing the amount to be paid to such counties under the provisions of said section, and this section shall be administered in connection with Title 65, Chapter 33, Mississippi Code of 1972, and Sections 65-33-45, 65-33-47 and 65-33-49 dealing with seawalls, as if made a part of this section.

          (d)  The proceeds of the Five and One-fourth Cents (5.25¢) of the tax per gallon on oils used as a propellant for jet aircraft engines, and Six and Four-tenths Cents (6.4¢) of the tax per gallon on aviation gasoline and the tax of One Cent (1¢) per gallon for each gallon of gasoline for which a refund has been made pursuant to Section 27-55-23 because such gasoline was used for aviation purposes, shall be paid to the State Treasury into a special fund to be used exclusively, pursuant to legislative appropriation, for the support and development of aeronautics as defined in Section 61-1-3.

          (e)  State highway funds in an amount equal to the difference between Forty-two Million Dollars ($42,000,000.00) and the annual debt service payable on the state's highway revenue refunding bonds, Series 1985, shall be expended for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97.

          (f)  Beginning forty-five (45) days after the date specified in Section 65-39-35, and on or before the fifteenth day of the succeeding month and each month thereafter, the proceeds of Two Cents (2¢) per gallon of the tax on gasoline and blend stock levied under Section 27-55-11 shall be deposited into the Mississippi Highway-Railroad Grade Crossing Safety Account, created in Section 57-43-15.

          (g)  "Gasoline, diesel fuel or kerosene taxes" as used in this section shall be deemed to mean and include state gasoline, diesel fuel or kerosene taxes levied and imposed on distributors of gasoline, diesel fuel or kerosene, and all state excise taxes derived from any fuel used to propel vehicles upon the highways of this state, when levied by any statute.

     [With regard to any county which is required to operate on a countywide system of road administration as described in Section 19-2-3, this section shall read as follows:]

     27-5-101.  Unless otherwise provided in this section, on or before the fifteenth day of each month, all gasoline, diesel fuel or kerosene taxes which are levied under the laws of this state and collected during the previous month shall be paid and apportioned by the State Tax Commission as follows:

          (a)  (i)  Except as otherwise provided in Section 31-17-127, from the gross amount of gasoline, diesel fuel or kerosene taxes produced by the state, there shall be deducted an amount equal to one-sixth (1/6) of principal and interest certified by the State Treasurer to the State Tax Commission to be due on the next semiannual bond and interest payment date, as required under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue on a parity with the bonds issued under authority of said Chapter 130.  The State Treasurer shall certify to the State Tax Commission on or before the fifteenth day of each month the amount to be paid to the "Highway Bonds Sinking Fund" as provided by said Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, on a parity with the bonds issued under authority of said Chapter 130; and the State Tax Commission shall, on or before the twenty-fifth day of each month, pay into the State Treasury for credit to the "Highway Bonds Sinking Fund" the amount so certified to him by the State Treasurer due to be paid into such fund each month.  The payments to the "Highway Bonds Sinking Fund" shall be made out of gross gasoline, diesel fuel or kerosene tax collections before deductions of any nature are considered; however, such payments shall be deducted from the allocation to the Transportation Department under paragraph (c) of this section.

              (ii)  From collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5 there shall be deducted:

                   1.  An amount as provided in Section 27-65-75(4) to the credit of a special fund designated as the "Office of State Aid Road Construction."

                   2.  An amount equal to the tax collections derived from Two Cents (2¢) per gallon of the gasoline excise tax for distribution to the State Highway Fund to be used exclusively for the construction, reconstruction and maintenance of highways of the State of Mississippi or the payment of interest and principal on bonds when specifically authorized by the Legislature for that purpose.

                   3.  The balance shall be deposited in the State Treasury to the credit of the State Highway Fund.

          (b)  Subject to the provisions that said basis of distribution shall in nowise affect adversely the amount specifically pledged in paragraph (a) of this section to be paid into the "Highway Bonds Sinking Fund," the following shall be deducted from the amount produced by the state tax on gasoline, diesel fuel or kerosene tax collections, excluding collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon, that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5:

              (i)  Twenty percent (20%) of such amount which shall be earmarked and set aside for the construction, reconstruction and maintenance of the highways and roads of the state, provided that if such twenty percent (20%) should reduce any county to a lesser amount than that received in the fiscal year ending June 30, 1966, then such twenty percent (20%) shall be reduced to a percentage to provide that no county shall receive less than its portion for the fiscal year ending June 30, 1966;

              (ii)  The amount allowed as refund on gasoline or as tax credit on diesel fuel or kerosene used for agricultural, maritime, industrial, domestic and nonhighway purposes;

              (iii)  Five percent (5%) of such amount shall be paid to the State Highway Fund;

              (iv)  The amount or portion thereof authorized by legislative appropriation to the Fisheries and Wildlife Fund created under Section 59-21-25;

              (v)  The amount for deposit into the special aviation fund under paragraph (d) of this section; and

              (vi)  The remainder shall be divided on a basis of nine-fourteenths (9/14) and five-fourteenths (5/14) (being the same basis as Four and One-half Cents (4-1/2¢) and Two and One-half Cents (2-1/2¢) is to Seven Cents (7¢) on gasoline, and six and forty-three one-hundredths (6.43) and three and fifty-seven one-hundredths (3.57) is to Ten Cents (10¢) on diesel fuel or kerosene).  The amount produced by the nine-fourteenths (9/14) division shall be allocated to the Transportation Department and paid into the State Treasury as provided in this section and in Section 27-5-103 and the five-fourteenths (5/14) division shall be returned to the counties of the state on the following basis:

                   1.  In each fiscal year, each county shall be paid each month the same percentage of the monthly total to be distributed as was paid to that county during the same month in the fiscal year which ended April 9, 1960, until the county receives One Hundred Ninety Thousand Dollars ($190,000.00) in such fiscal year, at which time funds shall be distributed under the provisions of paragraph (b)(vi)4 of this section.

                   2.  If after payments in 1 above, any county has not received a total of One Hundred Ninety Thousand Dollars ($190,000.00) at the end of the fiscal year ending June 30, 1961, and each fiscal year thereafter, then any available funds not distributed under 1 above shall be used to bring such county or counties up to One Hundred Ninety Thousand Dollars ($190,000.00) or such funds shall be divided equally among such counties not reaching One Hundred Ninety Thousand Dollars ($190,000.00) if there is not sufficient money to bring all the counties to said One Hundred Ninety Thousand Dollars ($190,000.00).

                   3.  When a county has been paid an amount equal to the total which was paid to the same county during the fiscal year ended April 9, 1960, such county shall receive no further payments during the then current fiscal year until the last month of such current fiscal year, at which time distribution will be made under 2 above, except as set out in 4 below.

                   4.  During the last month of the current fiscal year, should it be determined that there are funds available in excess of the amount distributed for the year under 1 and 2 above, then such excess funds shall be distributed among the various counties as follows:

                        One-third (1/3) of such excess to be divided equally among the counties;

                        One-third (1/3) of such excess to be paid to the counties in the proportion which the population of each county bears to the total population of the state according to the last federal census;

                        One-third (1/3) of such excess to be paid to the counties in the proportion which the number of square miles of each county bears to the total square miles in the state.

                   5.  It is the declared purpose and intent of the Legislature that no county shall be paid less than was paid during the year ended April 9, 1960, unless the amount to be distributed to all counties in any year is less than the amount distributed to all counties during the year ended April 9, 1960.

     The Municipal Aid Fund as established by Section 27-5-103 shall not participate in any portion of any funds allocated to any county hereunder over and above One Hundred Ninety Thousand Dollars ($190,000.00).

     In any county having road or bridge bonds outstanding which exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than sixty percent (60%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

     In any county having such road or bridge bonds outstanding which exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than thirty-five percent (35%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road or bridge bonds as they mature.

     In any county having such road or bridge bonds outstanding which exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than twenty percent (20%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road and bridge bonds as they mature.

     In any county having such road or bridge bonds outstanding which do not exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than ten percent (10%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

     The portion of any such county's share of the gasoline, diesel fuel or kerosene taxes thus set aside for the payment of the principal and interest of road or bridge bonds, as provided for in this section, shall be used in paying the currently maturing installments of the principal and interest of such road or bridge bonds, if there be any such road or bridge bonds outstanding.

     The remaining portion of such county's share of the gasoline, diesel fuel or kerosene taxes, after setting aside the portion above provided for the payment of the principal and interest of bonds, shall be used in the construction and maintenance of any public highways, bridges or culverts of the county, in the discretion of the board of supervisors.

     In any county having no road or bridge bonds outstanding, all such county's share of the gasoline, diesel fuel or kerosene taxes shall be used in the construction, reconstruction and maintenance of the public highways, bridges or culverts of the county, as the board of supervisors may determine.

     In every county in which there are county road bonds or seawall or road protection bonds outstanding which were issued for the purpose of building bridges or constructing public roads or seawalls, such funds shall be used in the manner provided by law.

          (c)  From the amount produced by the nine-fourteenths (9/14) division allocated to the Transportation Department, there shall be deducted:

              (i)  The amount paid to the State Treasurer for the "Highway Bonds Sinking Fund" under paragraph (a) of this section;

              (ii)  Any amounts due counties in accordance with Section 65-33-45 which have outstanding bonds issued for seawall or road protection purposes, issued under provisions of Chapter 319, Laws of 1924, and amendments thereto; and

              (iii)  Beginning August 15, 2002, and on or before the fifteenth day of each month thereafter, an amount equal to one-sixth (1/6) of the principal and interest certified by the State Treasurer to the State Tax Commission to be due on the next semiannual bond and interest payment date for the bonds issued under Sections 65-39-5 through 65-39-33.  On or before the twenty-fifth day of each month the State Tax Commission shall pay into the State Treasury for credit to the Gaming Counties Bond Sinking Fund created in Section 65-39-3, the amount certified by the State Treasurer;

              (iv)  Except as otherwise provided in Section 31-17-127, the remainder shall be paid by the State Tax Commission to the State Treasurer on the fifteenth day of each month next succeeding the month in which the gasoline, diesel fuel or kerosene taxes were collected to the credit of the State Highway Fund.

     The funds allocated for the construction, reconstruction and improvement of state highways, bridges and culverts, or so much thereof as may be necessary, shall first be used in conjunction with funds supplied by the federal government for such purposes and allocated to the Transportation Department to be expended on the state highway system.  It is specifically provided hereby that the necessary portion of such funds hereinabove allocated to the Transportation Department may be used for the prompt payment of principal and interest on highway bonds heretofore issued, including such bonds issued or to be issued under the provisions of Chapter 312, Laws of 1956, and amendments thereto.

     Nothing contained in this section shall be construed to reduce the amount of such gasoline, diesel fuel or kerosene excise taxes levied by the state, allotted under the provisions of Title 65, Chapter 33, Mississippi Code of 1972, to counties in which there are outstanding bonds issued for seawall or road protection purposes issued under the provisions of Chapter 319, Laws of 1924, and amendments thereto; the amount of said gasoline, diesel fuel or kerosene excise taxes designated in this section for the payment of bonds and interest authorized and issued or to be issued under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, shall, in such counties, be considered as being paid "into the State Treasury to the credit of the State Highway Fund" within the meaning of Section 65-33-45 in computing the amount to be paid to such counties under the provisions of said section, and this section shall be administered in connection with Title 65, Chapter 33, Mississippi Code of 1972, and Sections 65-33-45, 65-33-47 and 65-33-49 dealing with seawalls, as if made a part of this section.

          (d)  The proceeds of the Five and One-fourth Cents (5.25¢) of the tax per gallon on oils used as a propellant for jet aircraft engines, and Six and Four-tenths Cents (6.4¢) of the tax per gallon on aviation gasoline and the tax of One Cent (1¢) per gallon for each gallon of gasoline for which a refund has been made pursuant to Section 27-55-23 because such gasoline was used for aviation purposes, shall be paid to the State Treasury into a special fund to be used exclusively, pursuant to legislative appropriation, for the support and development of aeronautics as defined in Section 61-1-3.

          (e)  State highway funds in an amount equal to the difference between Forty-two Million Dollars ($42,000,000.00) and the annual debt service payable on the state's highway revenue refunding bonds, Series 1985, shall be expended for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97.

          (f)  Beginning forty-five (45) days after the date specified in Section 65-39-35, and on or before the fifteenth day of the succeeding month and each month thereafter, the proceeds of Two Cents (2¢) per gallon of the tax on gasoline and blend stock levied under Section 27-55-11 shall be deposited into the Mississippi Highway-Railroad Grade Crossing Safety Account, created in Section 57-43-15.

          (g)  "Gasoline, diesel fuel or kerosene taxes" as used in this section shall be deemed to mean and include state gasoline, diesel fuel or kerosene taxes levied and imposed on distributors of gasoline, diesel fuel or kerosene, and all state excise taxes derived from any fuel used to propel vehicles upon the highways of this state, when levied by any statute.

     SECTION 81.  Section 57-43-15, Mississippi Code of 1972, is amended as follows:

     57-43-15.  (1)  There is established within the Railroad Revitalization Fund a new account to be entitled the Mississippi Highway-Railroad Grade Crossing Safety Account.  The account shall be administered by the Mississippi Department of Transportation and shall consist of (a) such monies as are transferred to it on July 1, 2001, from the Mississippi Grade Crossing Closure Account; * * * (b) thirty-five percent (35%) of collections from the locomotive fuel tax imposed under Section 27-59-307 for the previous year; and (c) monies deposited into the account under Section 27-5-101(f).  Unexpended amounts remaining in the account at the end of a fiscal year shall not lapse into the State General Fund; and any interest earned on amounts in the account shall be deposited to the credit of the account.

     (2)  The Mississippi Department of Transportation, in cooperation with the railroads operating in Mississippi, shall promulgate rules to ensure equitable allocation of the funds described in subsection (1) of this section to projects throughout the state, and shall consider the proportionate number of main line track miles of each railroad and the number of public roadway/railroad grade crossings on each railroad's main line.  Expenditure of monies from the Mississippi Highway-Railroad Grade Crossing Safety Account shall be limited to the following purposes:

          (a)  Financial aid for closure of public roadway/railroad grade crossings;

          (b)  Realignment of construction costs of roadways being rerouted to facilitate a closure of a public roadway/railroad grade crossing;

          (c)  Monies to match federal or other funds for a grade separation eliminating an at-grade crossing of a public roadway and railroad; and

          (d)  Installation or upgrade of highway-railroad grade crossing signals, at the discretion of the Mississippi Transportation Commission, based upon the Federal Railroad Administration ranking of all Mississippi highway-railroad grade crossings.  Not less than ten percent (10%) of the monies necessary to defray the costs of such installations must be federal funds.

     (3)  The Mississippi Department of Transportation shall consider all requests from the state's diagnostic review of public roadway/railroad grade crossings and from individual railroads for expenditure of funds for the purposes described in subsection (2) of this section, and shall establish uniform criteria and guidelines relating to such crossings and the expenditure of funds.

     SECTION 82.  (1)  For any taxpayer allowed to claim a federal income tax credit under 26 USCS Section 21 for household and dependent care service expenses necessary for gainful employment, a credit shall be allowed against the taxes imposed under this chapter in the manner prescribed in this section.  The amount of the credit shall be equal to the lesser of the amount of the federal credit allowed under 26 USCS Section 21 claimed for such expenses by the taxpayer on the taxpayer's federal income tax return or the amount of income tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer.  In the case of married individuals filing separate returns, each person may claim an amount not to exceed one-half (1/2) of the tax credit that would have been allowed for a joint return.  

     (2)  To obtain the credit provided for in this section, a taxpayer must claim the federal credit allowed under 26 USCS Section 21 on the taxpayer's federal income tax return and must provide a copy of such return and any other information required by the State Tax Commission.

     SECTION 83.  (1)  For any taxpayer who pays tuition to a nonpublic school, a credit against the taxes imposed by this chapter shall be allowed in the amount provided in subsection (2) of this section.  For the purposes of this section:

          (a)  "Tuition" means the monthly, semester, annual or other term charge and all required fees imposed as a condition of enrollment in a primary or secondary nonpublic school; and

          (b)  "Nonpublic school" means an institution for the teaching of children in the primary or secondary, or both, grades, consisting of a physical plant (whether owned or leased), instructional staff and students, and which is in session each school year and maintains educational standards equivalent to the standards established by the State Department of Education for the state schools as outlined in the Approval Requirements of the State Board of Education for Nonpublic Schools.  The term "nonpublic school" includes, but is not necessarily limited to, private, church and parochial schools.

     (2)  The income tax credit provided in subsection (1) of this section shall be equal to one-third (1/3) of the amount of the tuition paid to a nonpublic school during the taxable year, not to exceed the amount of income tax due the State of Mississippi from the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under the state income tax laws, except credit for tax payments made by or on behalf of the taxpayer.  In the case of married individuals filing separate returns, each person may claim an amount not to exceed one-half (1/2) of the tax credit which would have been allowed for a joint return.  Any unused portion of the credit may be carried forward for the next five (5) succeeding tax years.

     (3)  Any amount of tuition payments made by a taxpayer which is applied toward the credit provided in this section may not be used as a deduction by the taxpayer for state income tax purposes. 

     SECTION 84.  (1)  For any taxpayer who is a parent, guardian or custodian of a home school student, a credit against the taxes imposed by this chapter shall be allowed in the amount provided in subsection (2) of this section.  For the purposes of this section, the term "home school student" means a compulsory-school-age child taught by private teachers, parents, guardians or custodians in a legitimate home instruction program as defined under the Mississippi Compulsory School Attendance Law (Section 37-13-91).

     (2)  The income tax credit provided in subsection (1) of this section shall be equal to one-third (1/3) of the amount of the costs incurred by the taxpayer for educational supplies and materials necessary for the home school student to participate in a home instruction program during the taxable year, not to exceed the amount of income tax due the State of Mississippi from the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under the state income tax laws, except credit for tax payments made by or on behalf of the taxpayer.  In the case of married individuals filing separate returns, each person may claim an amount not to exceed one-half (1/2) of the tax credit which would have been allowed for a joint return.  Any unused portion of the credit may be carried forward for the next five (5) succeeding tax years.

     (3)  Any amount of costs incurred by a taxpayer for such purposes which is applied toward the credit provided in this section may not be used as a deduction by the taxpayer for state income tax purposes.

     SECTION 85.  (1)  For any taxpayer who incurs expenses for tutorial services for a dependent of the taxpayer enrolled as a student in a Mississippi public school, a credit against the taxes imposed by this chapter shall be allowed in the amount provided in this section.  If a taxpayer incurs expenses for tutorial services for more than one (1) dependent enrolled in a Mississippi public school, the taxpayer may claim the credit for the aggregate amount of such expenses.  However, the maximum aggregate income tax credit that may be claimed by a taxpayer for a taxable year shall not exceed the lesser of Three Thousand Dollars ($3,000.00) or the amount of income tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under the state income tax laws, except credit for tax payments made by or on behalf of the taxpayer.  In the case of married individuals filing separate returns, each person may claim an amount not to exceed one-half (1/2) of the tax credit that would have been allowed for a joint return.   

     (2)  The State Tax Commission shall develop a list of tutorial service expenses for which the credit may be claimed and shall develop guidelines for administering the credit and how it may be obtained.

     (3)  To obtain the credit provided for in this section, a taxpayer must provide to the State Tax Commission proof of the expenses incurred for which the credit is claimed and any other information required by the State Tax Commission.

     SECTION 86.  (1)  There is levied, assessed and shall be collected a tax of one percent (1%) upon the service transactions of all professions regulated in Title 73, Mississippi Code of 1972, which are for more than Ten Thousand Dollars ($10,000.00).

     (2)  Transactions for professional services for Ten Thousand Dollars ($10,000.00) or less and professional medical service transactions are exempt from the tax levied by this section.

     SECTION 87.  There is imposed a tax of one percent (1%) of the amount of any fee charged to a user of an automated teller machine (ATM) as a transaction fee for the use of the ATM.  The tax shall be collected from the user by the owner of the ATM at the time of the transaction.  The owner of the ATM shall remit the proceeds of the tax collected each month to the State Tax Commission not later than the fifteenth day of the following month, and the Tax Commission shall deposit the proceeds of the tax into the State General Fund.

     SECTION 88.  Section 27-103-125, Mississippi Code of 1972, is amended as follows:

     27-103-125.  The proposed budget of each state agency shall show the amounts required for operating expenses separately from the amounts required for permanent improvements.  The overall budget shall show, separately by each source, the estimated amount of general fund revenue and of special fund revenues of general fund agencies.  The total proposed expenditures in Part 1 of the overall budget shall not exceed the amount of estimated revenues  that will be available in the general and special funds for appropriation or use during the succeeding fiscal year, including any balances that will be on hand in the general and special funds at the close of the then current fiscal year.  The total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed ninety-eight percent (98%) of the amount of general fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year.  However, for fiscal year 2006 only, the total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year.  The general fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee; however, for the purposes of this section, during the period beginning July 1, 2006, and ending June 30, 2016, the general fund revenue estimate for each succeeding fiscal year shall not exceed three percent (3%) of the amount of the general fund revenues received by the state for the preceding fiscal year.  Unencumbered balances in general funds that will be available and on hand at the close of the current fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund under Section 27-103-203.  The Legislative Budget Office may recommend additional taxes or sources of revenue if in its judgment those additional funds are necessary to adequately support the functions of the state government.

     SECTION 89.  Section 27-103-139, Mississippi Code of 1972, is amended as follows:

     27-103-139.  On or before November 15 preceding each regular session of the Legislature, except the first regular session of a new term of office, the Governor shall submit to the members of the Legislature, the Legislative Budget Office or the members-elect, as the case may be, and to the executive head of each state agency a balanced budget for the succeeding fiscal year.  The budget submitted shall be prepared in a format that will include performance measurement data associated with the various programs operated by each agency.  The total proposed expenditures in the balanced budget shall not exceed the amount of estimated revenues that will be available for appropriation or use during the succeeding fiscal year, including any balances that will be on hand at the close of the then current fiscal year, as determined by the revenue estimate jointly adopted by the Governor and the Legislative Budget Committee.  The total proposed expenditures from the State General Fund in the balanced budget shall not exceed ninety-eight percent (98%) of the amount of general fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year.  However, for fiscal year 2006 only, the total proposed expenditures from the State General Fund in the balanced budget shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year.  The general fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee; however, for the purposes of this section, during the period beginning July 1, 2006, and ending June 30, 2016, the general fund revenue estimate for each succeeding fiscal year shall not exceed three percent (3%) of the amount of the general fund revenues received by the state for the preceding fiscal year.  Unencumbered balances in general funds that will be available and on hand at the close of the fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund and the Education Enhancement Fund under Section 27-103-203.

     The revenues used in preparing the balanced budget shall be only those revenues that will be available under the general laws of the state as they exist when the balanced budget is prepared, and shall not include any proposed revenues that would become available only after the enactment of new legislation.  If the Governor has any recommendations for additional proposed expenditures or proposed revenues that are not included in his balanced budget, he shall submit those recommendations in a supplement that is separate from his balanced budget, and whenever the Governor recommends any such additional proposed expenditures, he also shall recommend proposed revenues that are sufficient to fund the additional proposed expenditures, providing specific details regarding the sources and the total amount of those proposed revenues.

     The Governor may employ a budget officer for the purpose of receiving information from the State Fiscal Officer and preparing his recommendations on the budget.  If the Governor determines that information received from the State Fiscal Officer is not sufficient to enable him to prepare his budget recommendations, he may request an appropriation from the Legislature to provide additional staff within the Governor's Office for that purpose.  At the first regular session after his election for Governor, the Governor shall submit any budget recommendations plus the required revenue source recommendations no later than January 31 of that year.

     SECTION 90.  Section 27-103-211, Mississippi Code of 1972, is amended as follows:

     27-103-211.  The total sum appropriated by the Legislature from the State General Fund for any fiscal year shall not exceed ninety-eight percent (98%) of the general fund revenue estimate for that fiscal year developed by the Tax Commission and the University Research Center and adopted by the Joint Legislative Budget Committee, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year; however, for the purposes of this section, during the period beginning July 1, 2006, and ending June 30, 2016, the general fund revenue estimate for each fiscal year shall not exceed three percent (3%) of the amount of the general fund revenues received by the state for the preceding fiscal year.  The unencumbered balances in general funds that will be available and on hand at the close of the fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund under Section 27-103-203.  However, for fiscal year 2006 only, the total sum appropriated by the Legislature from the State General Fund shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for that fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year.

     SECTION 91.  Section 27-104-13, Mississippi Code of 1972, is amended as follows:

     27-104-13.  (1)  The State Fiscal Officer may disapprove or reduce and revise the estimates of general funds and state-source special funds for any general fund or special fund agency and for the "administration and other expenses" budget of the Mississippi Department of Transportation, in an amount not to exceed five percent (5%), if at any time he finds that funds will not be available within the period for which the budget is drawn, or if at any time he finds that the requested expenditures, or any part thereof, are not authorized by law, and that action shall be reported to the Legislative Budget Office. 

     The State Fiscal Officer may, upon his determination of need based upon a finding that funds will not be available within the period for which the budget is drawn, transfer funds as provided in Section 27-103-203, from the Working Cash-Stabilization Reserve Fund to the General Fund to supplement the general fund revenue.     If the estimates of general funds and state-source special funds of all general fund and special fund agencies and of the "administration and other expenses" budget of the Mississippi Department of Transportation have been reduced by five percent (5%), additional reductions may be made, but shall consist of a uniform percentage reduction of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation. 

     Any state-source special funds reduced under the provisions of this subsection (1) shall be transferred to the State General Fund upon requisitions for warrants signed by the respective agency head, and the transfer shall be made within a reasonable period to be determined by the State Fiscal Officer.

     (2)  The State Tax Commission and University Research Center, utilizing all available revenue forecast data, shall annually develop a general fund revenue estimate to be adopted by the Legislative Budget Office as of the date of sine die adjournment.  For the purposes of this subsection, during the period beginning July 1, 2006, and ending June 30, 2016, the general fund revenue estimate for each fiscal year shall not exceed three percent (3%) of the amount of the general fund revenues received by the state for the preceding fiscal year.

     If, at the end of October, or at the end of any month thereafter of any fiscal year, the revenues received for the fiscal year fall below ninety-eight percent (98%) of the Legislative Budget Office general fund revenue estimate at the date of sine die adjournment, the State Fiscal Officer shall reduce allocations of general funds and state-source special funds to general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation, in an amount necessary to keep expenditures within the sum of actual general fund receipts, including any transfers to the General Fund from the Working Cash-Stabilization Reserve Fund for the fiscal year. 

     The State Fiscal Officer may, upon his determination of need based on the revenue shortfall, transfer funds as provided in Section 27-103-203 from the Working Cash-Stabilization Reserve Fund to the General Fund to supplement the general fund revenue.  State-source special funds in an amount equal to any reduction made under the provisions of this subsection (2) shall be transferred to the State General Fund upon requisitions for warrants signed by the respective agency head, and the transfer shall be made within a reasonable period to be determined by the State Fiscal Officer.

     No agency's allocation shall be reduced in an amount to exceed five percent (5%); however, if the allocations of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation have been reduced by five percent (5%), any additional reductions required to be made under this subsection (2) shall consist of a uniform percentage reduction of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation.  Any receipt from loans authorized by Sections 31-17-101 through 31-17-123 shall not be included as revenue receipts. 

     The State Fiscal Officer shall immediately send notice of any action taken under authority of this subsection (2) to the Legislative Budget Office.

     The provisions of this subsection (2) requiring the State Fiscal Officer to reduce allocations of general funds and state-source special funds to general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation shall be suspended during the period from the effective date of this act through June 30, 2006.

     (3)  For the purpose of this section, the term "state-source special funds"means any special funds in any agency derived from any source, but shall not include the following special funds:  special funds derived from federal sources, from local or regional political subdivisions, from agricultural commodity assessments, or from donations; special funds held in a fiduciary capacity for the benefit of specific persons or classes of persons; self-generated special funds of the state institutions of higher learning or the state community or junior colleges; special funds of Mississippi Industries for the Blind, the State Port at Gulfport, Yellow Creek Inland Port, Pat Harrison Waterway District, Pearl River Basin Development District, Pearl River Valley Water Management District, Tombigbee River Valley Water Management District, Yellow Creek Watershed Authority, or Coast Coliseum Commission; special funds of the Department of Wildlife, Fisheries and Parks derived from the issuance of hunting or fishing licenses; and special funds generated by agencies whose primary function includes the establishment of standards and the issuance of licenses for the practice of a profession within the State of Mississippi.

     SECTION 92.  (1)  There is hereby created a law enforcement unit of the Department of Public Safety to be known as the State Police.  The Commissioner of Public Safety shall appoint a Chief of the State Police who shall be qualified and experienced in law enforcement and who has served for not less than five (5) years as a law enforcement officer in a supervisory position.  The chief shall be furnished a vehicle to perform his duties of overseeing the State Police throughout the state.  The chief shall enter into bond in an amount determined by the commissioner.  The primary duty of the chief shall be directing the enforcement of the laws of the state and the laws and regulations of the Mississippi
Department of Transportation, the Public Service Commission, the State Tax Commission, the Department of Wildlife, Fisheries and Parks, the Capitol Police, the Gaming Commission, the Mississippi Agricultural and Livestock Theft Bureau, the Board of Trustees of State Institutions of Higher Learning, the Department of Audit and the Bureau of Narcotics.  The salary of the chief shall be fixed by the commissioner.

     (2)  The chief is hereby authorized and directed to appoint as many officers as may be required to efficiently enforce the laws under the jurisdiction of the State Police as provided in subsection (1) of this section.  These officers shall be located in different sections of the state where there services are most needed.  The salary of the officers of the State Police shall be as determined by the State Personnel Board, or its successor.

     (3)  The chief and the officers of the State Police shall be designated law enforcement officers, as defined in Section 45-6-3, and shall be subject to all training and certification requirements of the Board on Law Enforcement Officer Standards and Training.

     (4)  Any officer of an existing law enforcement agency who was exempt from training and certification requirements by such agency shall be exempt from such requirements under this act.

     SECTION 93.  Section 27-3-13, Mississippi Code of 1972, is amended as follows:

     27-3-13.  The chairman of the commission is hereby empowered to employ a secretary to the commission, and such accountants, appraisers, inspectors, timber estimators, engineers, valuation experts, clerical help, stenographers, and such other assistants and/or attorneys as he may deem necessary to the proper discharge of the duties of the State Tax Commission, to prescribe their duties and to fix the compensation of each employee.  Such employees may be used interchangeably in the administration of the various duties imposed by law upon the commission in its several departments.  The State Police shall enforce any laws administered by the commission.  Temporary employees of the classes enumerated above may be employed as hereinabove, when in the opinion of the chairman a seasonal press of business requires, except that such temporary employees shall be retained no longer than is necessary to the discharge of the duties imposed by law upon the commission.

     SECTION 94.  Section 29-5-77, Mississippi Code of 1972, is amended as follows:

     29-5-77.  The State Police shall have jurisdiction relative to the enforcement of all laws of the State of Mississippi on the properties set forth in Section 29-5-2, the Court of Appeals Building, the Mississippi Department of Transportation Building and the Public Employees' Retirement System Building.  The State Police shall, through any person or persons appointed by the Department of Finance and Administration, or through the Department of Public Safety when requested by the Department of Finance and Administration, make arrests for any violation of any law of the State of Mississippi on those grounds of or within those properties.  The State Police shall enforce the provisions of Sections 29-5-57 through 29-5-67, 29-5-71 through 29-5-77, and 29-5-81 through 29-5-95, and prescribe such rules and regulations as are necessary therefor.

 * * *

     Subject to the approval of the Board of Trustees of State Institutions of Higher Learning, the Board of Trustees and the State Police shall be authorized to enter into a contract for the State Police to supply the security personnel with jurisdiction to enforce all laws of the State of Mississippi on the property of the Board of Trustees located at the corner of Ridgewood Road and Lakeland Drive in the City of Jackson.

     The State Police and the Department of Agriculture are authorized to enter into a contract for the State Police to have jurisdiction and enforce all laws of the State of Mississippi on the property of the Department of Agriculture located at 121 North Jefferson Street and the new Farmer's Market Building located at the corner of High and Jefferson Streets in the City of Jackson, Hinds County, Mississippi.  It is the intent of the Legislature that the State Police will not post any security personnel at such buildings, but will provide regular vehicle patrols and responses to security system alarms.

     SECTION 95.  Section 37-101-15, Mississippi Code of 1972, is amended as follows:

     37-101-15.  (a)  The Board of Trustees of State Institutions of Higher Learning shall succeed to and continue to exercise control of all records, books, papers, equipment, and supplies, and all lands, buildings, and other real and personal property belonging to or assigned to the use and benefit of the board of trustees formerly supervising and controlling the institutions of higher learning named in Section 37-101-1.  The board shall have and exercise control of the use, distribution and disbursement of all funds, appropriations and taxes, now and hereafter in possession, levied and collected, received, or appropriated for the use, benefit, support, and maintenance or capital outlay expenditures of the institutions of higher learning, including the authorization of employees to sign vouchers for the disbursement of funds for the various institutions, except where otherwise specifically provided by law.

     (b)  The board shall have general supervision of the affairs of all the institutions of higher learning, including the departments and the schools thereof.  The board shall have the power in its discretion to determine who shall be privileged to enter, to remain in, or to graduate therefrom.  The board shall have general supervision of the conduct of libraries and laboratories, the care of dormitories, buildings, and grounds; the business methods and arrangement of accounts and records; the organization of the administrative plan of each institution; and all other matters incident to the proper functioning of the institutions.  The board shall have the authority to establish minimum standards of achievement as a prerequisite for entrance into any of the institutions under its jurisdiction, which standards need not be uniform between the various institutions and which may be based upon such criteria as the board may establish.

     (c)  The board shall exercise all the powers and prerogatives conferred upon it under the laws establishing and providing for the operation of the several institutions herein specified.  The board shall adopt such bylaws and regulations from time to time as it deems expedient for the proper supervision and control of the several institutions of higher learning, insofar as such bylaws and regulations are not repugnant to the Constitution and laws, and not inconsistent with the object for which these institutions were established.  The board shall have power and authority to prescribe rules and regulations for policing the campuses and all buildings of the respective institutions, to authorize the arrest of all persons violating on any campus any criminal law of the state, and to have such law violators turned over to the civil authorities.  The law enforcement officers employed on any campus shall be officers of the State Police.

     (d)  For all institutions specified herein, the board shall provide a uniform system of recording and of accounting approved by the State Department of Audit.  The board shall annually prepare, or cause to be prepared, a budget for each institution of higher learning for the succeeding year which must be prepared and in readiness for at least thirty (30) days before the convening of the regular session of the Legislature.  All relationships and negotiations between the State Legislature and its various committees and the institutions named herein shall be carried on through the board of trustees.  No official, employee or agent representing any of the separate institutions shall appear before the Legislature or any committee thereof except upon the written order of the board or upon the request of the Legislature or a committee thereof.

     (e)  For all institutions specified herein, the board shall prepare an annual report to the Legislature setting forth the disbursements of all monies appropriated to the respective institutions.  Each report to the Legislature shall show how the money appropriated to the several institutions has been expended, beginning and ending with the fiscal years of the institutions, showing the name of each teacher, officer, and employee, and the salary paid each, and an itemized statement of each and every item of receipts and expenditures.  Each report must be balanced, and must begin with the former balance.  If any property belonging to the state or the institution is used for profit, the reports shall show the expense incurred in managing the property and the amount received therefrom.  The reports shall also show a summary of the gross receipts and gross disbursements for each year and shall show the money on hand at the beginning of the fiscal period of the institution next preceding each session of the Legislature and the necessary amount of expense to be incurred from said date to January 1 following.  The board shall keep the annual expenditures of each institution herein mentioned within the income derived from legislative appropriations and other sources, but in case of emergency arising from acts of providence, epidemics, fire or storm with the written approval of the Governor and by written consent of a majority of the senators and of the representatives it may exceed the income.  The board shall require a surety bond in a surety company authorized to do business in this state, of every employee who is the custodian of funds belonging to one or more of the institutions mentioned herein, which bond shall be in a sum to be fixed by the board in an amount that will properly safeguard the said funds, the premium for which shall be paid out of the funds appropriated for said institutions.

     (f)  The board shall have the power and authority to elect the heads of the various institutions of higher learning and to contract with all deans, professors, and other members of the teaching staff, and all administrative employees of said institutions for a term of not exceeding four (4) years.  The board shall have the power and authority to terminate any such contract at any time for malfeasance, inefficiency, or contumacious conduct, but never for political reasons.  It shall be the policy of the board to permit the executive head of each institution to nominate for election by the board all subordinate employees of the institution over which he presides.  It shall be the policy of the board to elect all officials for a definite tenure of service and to reelect during the period of satisfactory service.  The board shall have the power to make any adjustments it thinks necessary between the various departments and schools of any institution or between the different institutions.

     (g)  The board shall keep complete minutes and records of all proceedings which shall be open for inspection by any citizen of the state.

     (h)  The board shall have the power to contract, on a shared-savings, lease or lease-purchase basis, for energy efficiency services and/or equipment as prescribed in Section 31-7-14, not to exceed ten (10) years.

     (i)  The Board of Trustees of State Institutions of Higher Learning, for and on behalf of Jackson State University, is hereby authorized to convey by donation or otherwise easements across portions of certain real estate located in the City of Jackson, Hinds County, Mississippi, for right-of-way required for the Metro Parkway Project.

     (j)  In connection with any international contract between the board or one of the state's institutions of higher learning and any party outside of the United States, the board or institution that is the party to the international contract is hereby authorized and empowered to include in the contract a provision for the resolution by arbitration of any controversy between the parties to the contract relating to such contract or the failure or refusal to perform any part of the contract.  Such provision shall be valid, enforceable and irrevocable without regard to the justiciable character of the controversy.  Provided, however, that in the event either party to such contract initiates litigation against the other with respect to the contract, the arbitration provision shall be deemed waived unless asserted as a defense on or before the responding party is required to answer such litigation.

     SECTION 96.  Section 41-29-107, Mississippi Code of 1972, is amended as follows:

     41-29-107.  (1)  The State Police shall enforce the provisions of this chapter.  The State Police shall have a director who shall be appointed by the Chief of the State Police.  The director may assign to the appropriate offices of the department such powers and duties deemed appropriate to carry out the lawful functions of the department.

     (2)  The director is empowered to employ or appoint necessary agents.  The director may also employ such secretarial, clerical and administrative personnel, including a duly licensed attorney, as necessary for the operation of the department, and shall have such quarters, equipment and facilities as needed.  The salary and qualifications of the attorney authorized by this section shall be fixed by the director, but the salary shall not exceed the salary authorized for an assistant attorney general who performs similar duties.

     (3)  The director and agents so appointed shall be citizens of the United States and of the State of Mississippi, and of good moral character.  The agents shall be not less than twenty-one (21) years of age at the time of such appointment.  In addition thereto, those appointed shall have satisfactorily completed at least two (2) years of college studies.  However, two (2) years of satisfactory service as a law enforcement officer and the completion of the prescribed course of study at a school operated by the Bureau of Narcotics and Dangerous Drugs, United States Justice Department, shall satisfy one (1) year of such college studies, and four (4) years of satisfactory service as a law enforcement officer and the completion of the prescribed course of study at such federal bureau school as stated heretofore shall fully satisfy the two (2) years of college requirement.

     During the period of the first twelve (12) months after appointment, any employee of the State Police enforcing this chapter shall be subject to dismissal at the will of the director.  After twelve (12) months service, no such employee * * * shall be subject to dismissal unless charges have been filed with the director, showing cause for dismissal of the employee of the State Police.  A date shall be set for hearing before the director and the employee notified in writing of the date of such hearing and of the charges filed.  The hearing shall be held not less than ten (10) days after notification to the employee.  After the hearing, at which the employee shall be entitled to legal counsel, a written order of the director shall be necessary for dismissal and the decision shall be final.  Any such order of the director shall be a public record and subject to inspection as such.

     (4)  The Commissioner of Public Safety may assign members of the Mississippi Highway Safety Patrol, regardless of age, to assist in the enforcement of this chapter; however, when any highway patrolman or other employee, agent or official of the Mississippi Department of Public Safety is assigned to duty with, or is employed, for the enforcement of this chapter, he shall not be subject to assignment or transfer to any other office or department within the Mississippi Department of Public Safety except by the commissioner.  Any highway patrolman assigned to duty regarding the enforcement of this chapter shall retain his status as a highway patrolman, but shall be under the supervision of the director.  For purposes of seniority within the Highway Safety Patrol and for purposes of retirement under the Mississippi Highway Safety Patrol Retirement System, highway patrolmen assigned to enforcement of this chapter will be credited as if performing duty with the Highway Safety Patrol.  The commissioner may assign employees of the Highway Safety Patrol to assist in the enforcement of this chapter; however, any employees so assigned must meet all established requirements for the duties to which they are assigned.

     (5)  The director may enter into agreements with bureaus or departments of other states or of the United States for the exchange or temporary assignment of agents for special undercover assignments and for performance of specific duties.

     (6)  The director may assign agents charged with enforcing this chapter to such duty and to request and accept agents from such other bureaus or departments for such duty.

     (7)  (a)  All funds, property and/or PINs belonging to the Mississippi Bureau of Narcotics are transferred to the State Police on July 1, 2006.  Any funds, property or PINs that are appropriated to or otherwise received by the bureau, or appropriated to, transferred to or otherwise received by the State Police for the use of the State Police, shall be budgeted and maintained by the department as funds of the department.  Personnel occupying PINs transferred from the bureau to the department shall serve on a probationary basis during the twelve (12) months after July 1, 2004.

          (b)  In transferring the responsibilities of the Mississippi Bureau of Narcotics to the State Police, the commissioner and the director * * * shall develop and implement written security precautions that shall be observed by all affected employees.  The commissioner and the director shall review, modify and approve the plan before the effective date of the merger of responsibilities of the bureau and the State Police.

     SECTION 97.  Section 49-1-12, Mississippi Code of 1972, is amended as follows:

     49-1-12.  (1)  The term "conservation officer" means a law enforcement officer of the State Police.

     (2)  Wherever the terms "warden," "game warden," or "game and fish warden" appear, the same shall mean an officer of the State Police.

     SECTION 98.  Section 49-1-16, Mississippi Code of 1972, is amended as follows:

     49-1-16.  (a)  There is hereby created a Conservation Officers' Reserve Unit, hereinafter termed "the reserve," to assist the conservation officers in the performance of their duties.  The reserve shall consist of volunteers who are approved by the Chief of the State Police or his designated representative, and the members of the reserve shall serve without pay.  Reserve officers shall be in such numbers as determined by the enforcement needs, with the maximum strength of reserve officers limited to the same number as conservation officers.

     (b)  In order to be eligible for membership in the reserve, an applicant must be twenty-one (21) years of age, be a high school graduate or its equivalent, be in good physical condition, have a Mississippi driver's license, be in good standing with the community, be available for training and duty, not be a member of any police, auxiliary police, civil defense, or private security agency, have never been convicted of a felony, and have one (1) of the following:

          (i)  An honorable discharge or honorable separation certificate from one (1) of the United States military services;

          (ii)  Three (3) years of responsible post-high school work experience that required the ability to deal effectively with individuals and groups of persons;

          (iii)  Successful completion of sixty (60) semester hours at an accredited college or university; or

          (iv)  Such qualifications as are outlined in this section for enforcement officers.

     Members of the immediate family of conservation officers shall not be eligible for the reserve unless a special waiver is granted by the commission.

     Upon acceptance into the reserve, members shall receive a temporary appointment for one (1) year.  During this year of temporary status, members must successfully complete the required training and must qualify on the same firearms course as conservation officers.

     (c)  The reserve shall be under the leadership and direction of the Chief of the State Police, who may designate an officer to coordinate the actions of the reserve.  The training of the reserve shall be conducted by a State Police officer.  The reserve shall meet at least once each month for the purpose of training and transacting such business as may come before it.  The chief * * * shall be notified in writing of all meetings of the reserve and the time and place of such meetings shall be recorded with the chief * * *.  The chief * * * shall prepare a reserve officer's manual with the advice and consent of the commission.  The manual shall include, but is not limited to, the following:  activities and operations, training, administration and duties.  During active service, the reserve shall be under the direction of the chief * * * or his designated representative.  When a reserve officer is on active duty and assigned to a specific conservation officer, he shall be under the direct supervision of that officer.  Reserve officers serve at the discretion of the chief * * * and may be dismissed by him * * *.  Reserve officers shall furnish their own uniforms and other personal equipment if the State Police does not provide such items.

     (d)  The chief may, by regulation, require members of the Conservation Officers' Reserve Unit to attend officer reserve training programs conducted by county or municipal agencies or at the Mississippi Law Enforcement Officers Training Academy at the expense of the State Police if the chief deems such training necessary or desirable.

     (e)  The State Police may issue uniforms to such reserve officers and may authorize the issuance of any state equipment necessary for the reserve officers to adequately assist law enforcement officers.  The chief is authorized to develop a reserve officer identification system to accomplish the issuance of such items in accordance with the State Auditor guidelines.

     (f)  In the event the chief shall determine that a member of the Conservation Officers' Reserve Unit may attend a training program as authorized under the provisions of this section, the chief shall require that any such reserve officer shall sign an agreement, prior to attending a training program, which shall stipulate that if the reserve officer accepts employment from any other public or private law enforcement agency within three (3) years after completion of his training program, the reserve officer or the respective hiring law enforcement agency shall reimburse the State Police for the total cost of his training program.  By October 1 of each year, the chief shall provide the Game and Fish Committee of the Mississippi House of Representatives and the Wildlife and Marine Resources Committee of the Mississippi Senate a listing which contains each name and the respective cost of training each reserve officer received during the previous year.

     SECTION 99.  Section 49-1-44, Mississippi Code of 1972, is amended as follows:

     49-1-44.  In addition to the regulations of the commission and the statutes relating to protection and preservation of wildlife and the environment, conservation officers of the State Police are hereby authorized to assist in the detection and apprehension of violators of the laws of this state which pertain to theft of cattle, to enforce and apprehend violators of the laws of this state which pertain to unauthorized dumping of garbage, obstructing streams and littering, as set forth specifically in Sections 97-15-13, 97-15-21, 97-15-23, 97-15-25, 97-15-27, 97-15-29, 97-15-31, 97-15-39, 97-15-41, 97-15-43, 97-15-45, 97-17-53, 97-17-79, 97-17-81 and 97-17-83, but not limited thereto, and in addition to any other powers and duties otherwise delegated or assigned to conservation officers of the State Police.

     SECTION 100.  Section 65-1-131, Mississippi Code of 1972, is amended as follows:

     65-1-131.  (1)  The Chief of the State Police may appoint and commission qualified persons as security officers of the Mississippi Department of Transportation.  Any such security officer so appointed shall be a full-time employee of the State Police and shall not be employed by any privately owned guard or security service, and shall at all times be answerable and responsible to the Chief of the State Police.

     (2)  A security officer appointed and commissioned as provided in subsection (1) of this section shall, before entering upon his duties as such officer, take the oath of office prescribed by Section 268, Mississippi Constitution of 1890, which shall be endorsed upon his commission.  The commission, with the oath endorsed upon it, shall be entered in the official minute book of the Transportation Commission.

     (3)  A security officer appointed and commissioned pursuant to the provisions of subsection (1) of this section, shall, while engaged in the performance of his duties, carry on his person a badge identifying him as a security officer of the Mississippi Department of Transportation and an identification card issued by the Transportation Commission.  When in uniform, each such security officer shall wear his badge in plain view.

     (4)  A security officer appointed and commissioned under subsection (1) of this section may exercise the same powers of arrest and the right to bear firearms that may be exercised by any state, municipal or other police officer in this state, * * *  with emphasis to violations of law which are committed on or within buildings, property or facilities owned by or under the jurisdiction of the Transportation Commission or the Transportation Department.  Any right granted under this subsection in no way relieves the requirements of appropriate affidavit and warrant for arrest from the appropriate jurisdiction and authority pursuant to the laws of this state.

     (5)  On behalf of each person who is employed as a security officer under subsection (1) of this section and who is trained as a security officer at the Mississippi Law Enforcement Officers' Training Academy, the State Police shall be required to pay to the academy at least an amount equal to the per student cost of operation of said academy as tuition.

     SECTION 101.  Section 69-29-1, Mississippi Code of 1972, is amended as follows:

     69-29-1.  (1)  (a)  There is established the Mississippi Agricultural and Livestock Theft Bureau.

          (b)  The Chief of the State Police shall appoint a director of the Mississippi Agricultural and Livestock Theft Bureau.  Such director shall have at least five (5) years of law enforcement experience.  Such director shall be responsible solely to the supervision of the Chief of the State Police and to no other person or entity.  Such director may be discharged only for just cause shown.

          (c)  The State Police may employ nine (9) agricultural and livestock theft investigators, one (1) from each highway patrol district, and each investigator is required to reside within the highway patrol district from which he or she is selected.  Each investigator shall be certified as a law enforcement officer, successfully completing at least a nine-week training course, in accordance with Section 45-6-11.  The curriculum for the training of constables shall not be sufficient for meeting the certification requirements of this paragraph.  In the selection of investigators under this section, preference shall be given to persons who have previous law enforcement experience.

          (d)  The director appointed under this section, under the direction, control and supervision of the Chief of the State Police, and the investigators provided under this section shall perform only the duties described in subsection (2) of this section and shall not be assigned any other duties.

     (2)  The director appointed under this section and the investigators provided by the State Police under this section shall have the following powers, duties and authority:

          (a)  To enforce all of the provisions of Sections 69-29-9 and 69-29-11, and particularly those portions requiring persons transporting livestock to have a bill of sale in their possession; to make investigations of violations of such sections and to arrest persons violating same;

          (b)  To enforce all of the laws of this state enacted for the purpose of preventing the theft of livestock, poultry, timber and agricultural, aquacultural and timber products and implements; to make investigations of violations thereof and to arrest persons violating same;

          (c)  To cooperate with all regularly constituted law enforcement officers relative to the matters herein set forth;

          (d)  To serve warrants and other process emanating from any court of lawful jurisdiction, including search warrants, in all matters herein set forth;

          (e)  To carry proper credentials evidencing their authority, which shall be exhibited to any person making demand therefor;

          (f)  To make arrests without warrant in all matters herein set forth in cases where same is authorized under the constitutional and general laws of this state;

          (g)  To handle the registration of brands of cattle and livestock;

          (h)  To investigate, prevent, apprehend and arrest those persons anywhere in the state who are violating any of the laws administered by the Department of Agriculture and Commerce, including, but not limited to, all agriculture-related crimes;

          (i)  To access and examine records of any person, business or entity that harvests, loads, carries, receives or manufactures timber products as defined in this section.  Each such person or entity shall permit the director or any investigator provided by the State Police to examine records of the sale, transfer or purchase of timber or timber products, including, but not limited to, contracts, load tickets, settlement sheets, drivers' logs, invoices, checks and any other records or documents related to an ongoing investigation of the Mississippi Agricultural and Livestock Theft Bureau.

     (3)  The State Police shall furnish such investigators with such vehicles, equipment and supplies as may be necessary.  All expenses of same, and all other expenses incurred in the administration of this section, shall be paid from such appropriation as may be made by the Legislature.

     (4)  The State Tax Commission and its agents and employees shall cooperate with such investigators by furnishing to them information as to any possible or suspected violations of any of the laws mentioned herein, including specifically Section 69-29-27, and in any other lawful manner.

     (5)  The conservation officers of the Department of Wildlife, Fisheries and Parks are authorized to cooperate with and assist the agricultural and livestock theft investigators in the enforcement and apprehension of violators of laws regarding agricultural and livestock theft.

     (6)  The Mississippi Forestry Commission employees are excluded from any timber and timber products theft investigative responsibilities except when technical expertise is needed and requested through the State Forester or his designee.

     (7)  For the purposes of this section, "timber product" means timber of all kinds, species or sizes, including, but not limited to, logs, lumber, poles, pilings, posts, blocks, bolts, cordwood and pulpwood, pine stumpwood, pine knots or other distillate wood, crossties, turpentine (crude gum), pine straw, firewood and all other products derived from timber or trees that have a sale or commercial value.

     SECTION 102.  Section 75-76-17, Mississippi Code of 1972, is amended as follows:

     75-76-17.  (1)  From and after July 1, 2006, there are hereby created, for supervision by the Chief of the State Police, two (2) divisions which are entitled the Enforcement Division and the Investigation Division of the State Police which shall be responsible for enforcing the provisions of this chapter excluding an audit division.

     (2)  The Chief of the State Police shall employ division directors that possess training and experience in the fields of investigation, law enforcement, law or gaming. 

     SECTION 103.  Section 77-1-21, Mississippi Code of 1972, is amended as follows:

     77-1-21.  For the purpose of enforcing the provisions of the Mississippi Motor Carrier Regulatory Law of 1938, the Chief of the State Police is hereby authorized to employ, in addition to personnel already employed by the commission, one (1) chief enforcement officer and twenty-one (21) inspectors, the salaries of whom shall be fixed by the Chief of the State Police.  The chief enforcement officer and the inspectors shall devote their full time to the performance of their duties and shall take an oath faithfully to perform the duties of their position.  The chief shall require bonds to be carried on such employees as the chief may deem necessary, the cost thereof to be paid by the State Police.  The chief enforcement officer and inspectors shall be qualified by experience and training in law enforcement or investigative work, and shall attend and satisfactorily complete an appropriate course of instruction established by the Commissioner of Public Safety at the law enforcement officers training academy.  The chief enforcement officer and the inspectors herein referred to shall be selected after an examination as to physical and mental fitness.  Such employees shall be citizens of the United States and the State of Mississippi, and of good moral character.  All such members of staff shall be appointed by the chief and shall be subject to removal at any time by the chief.

     SECTION 104.  Sections 49-1-9, 49-1-13 and 49-1-15, Mississippi Code of 1972, which provide for conservation officers of the Department of Wildlife, Fisheries and Parks, are repealed.

     SECTION 105.  Section 49-2-5, Mississippi Code of 1972, is amended as follows:

     49-2-5.  (1)  There is hereby created the Mississippi Commission on Environmental Quality, to be composed of seven (7) persons appointed by the Governor, with the advice and consent of the Senate, for a term of seven (7) years.  One (1) person shall be appointed from each congressional district as constituted January 1, 1978, and two (2) members shall be appointed from the state at large.  The initial terms of the members from congressional districts shall be for one (1), two (2), three (3), four (4) and five (5) years respectively, and the initial terms of the members from the state at large shall be one (1) for six (6) years and one (1) for seven (7) years.  Thereafter, all terms shall be for seven (7) years.  The members serving on the predecessor Commission on Natural Resources on June 30, 1989, shall continue to serve as members of the successor Commission on Environmental Quality until the expiration of the term of their appointment to the predecessor commission.

     (2)  The commission shall elect from its membership a chairman who shall preside over meetings and a vice chairman who shall preside in the absence of the chairman or when the chairman shall be excused.

     (3)  The commission shall adopt rules and regulations governing times and places for meetings, and governing the manner of conducting its business.  Each member of the commission shall take the oath prescribed by Section 268 of the Constitution and shall enter into bond in the amount of Thirty Thousand Dollars ($30,000.00) to be approved by the Secretary of State, conditioned according to law and payable to the State of Mississippi before assuming the duties of office.  Any member who shall not attend three (3) consecutive regular meetings of the commission shall be subject to removal by a majority vote of the commission members.

     (4)  The members of the commission shall receive no annual salary, but shall receive per diem compensation as authorized by law for each day devoted to the discharge of official duties, and shall be entitled to reimbursement for all actual and necessary expenses incurred in the discharge of their duties, including mileage as authorized by law.

     The commission shall be composed of persons with extensive knowledge of or practical experience in at least one (1) of the matters of jurisdiction of the commission.

     (5)  The commission is authorized and empowered to use and expend any funds received by it from any source for the purposes of this chapter.  Such funds shall be expended in accordance with the statutes governing the expenditure of state funds.

     (6)  In any state fiscal year in which the State Legislature does not appropriate sufficient funds to the department to operate a certain program or programs that the department currently operates, then the department shall no longer operate that program or programs and the operation of that program or programs shall be transferred to the federal government.  If the operation of any program or programs of the department is transferred to the federal government, then in the sections of law applicable to that program or programs, the term "department" or "commission" or "board" or "office" shall be construed to mean the appropriate agency of the federal government, unless the context requires otherwise.

     SECTION 106.  Section 49-2-7, Mississippi Code of 1972, is amended as follows:

     49-2-7.  The Department of Environmental Quality shall be the Mississippi Department of Natural Resources with the exception of the Office of Parks and Recreation, and shall retain all powers and duties granted by law to the Mississippi Department of Natural Resources with the exception of the Office of Parks and Recreation, and wherever the term "Mississippi Department of Natural Resources" appears in any law the same shall mean the Department of Environmental Quality.  The Executive Director of the Department of Environmental Quality may assign to the appropriate offices any powers and duties deemed appropriate to carry out the lawful duties of the department.

     The department shall be composed of the following offices:

          (a)  Office of Geology and Energy Resources;

          (b)  Office of Land and Water Resources; and

          (c)  Office of Pollution Control.

     Each office shall be composed of the administrative units set forth in the consolidation plan adopted by the commission, subject to changes by the executive director, with approval of the commission, as hereinafter set forth.

     The department is designated as the single state department to receive and expend any federal funds being received or expended by any agency transferred to the department by Chapter 484, Laws of 1978, and to receive and expend any federal funds made available for matters within the jurisdiction of the department.

     In any state fiscal year in which the State Legislature does not appropriate sufficient funds to the commission to operate a certain program or programs that the commission currently operates, then the commission shall no longer operate that program or programs and the operation of that program or programs shall be transferred to the federal government.  If the operation of any program or programs of the commission is transferred to the federal government, then in the sections of law applicable to that program or programs, the term "department" or "commission" or "board" or "office" shall be construed to mean the appropriate agency of the federal government, unless the context requires otherwise.

     The department shall be responsible for conserving, managing, developing and protecting the natural resources of the State of Mississippi within the jurisdiction of the department, with the exception of functions of the Office of Recreation and Parks.  The department shall coordinate all functions of state government related to natural resources within the jurisdiction of the department.  The department shall not exercise any of its authority or powers granted under the provisions of this section in a manner which would be inconsistent with the provisions of Section 29-1-1.

     SECTION 107.  This act shall take effect and be in force from and after July 1, 2006, except for Sections 1, 2, 21 and 22, which shall take effect and be in force from and after the passage of this act.