MISSISSIPPI LEGISLATURE

2006 Regular Session

To: Ways and Means

By: Representative Watson

House Bill 1650

AN ACT TO ESTABLISH THE CAPITAL SEED INVESTMENT PROGRAM-LEVEL 1 FOR THE PURPOSE OF MAKING ASSISTANCE AVAILABLE TO PROVIDE WORKING CAPITAL TO SUPPORT THE INITIAL CAPITALIZATION OF TECHNOLOGY BASED BUSINESSES IN MISSISSIPPI; TO PROVIDE THAT THE PROGRAM SHALL BE UNDER THE DIRECTION OF THE MISSISSIPPI TECHNOLOGY ALLIANCE; TO ESTABLISH REQUIREMENTS AND GUIDELINES FOR THE PROGRAM; TO ESTABLISH THE CAPITAL SEED INVESTMENT PROGRAM-LEVEL 2  FOR THE PURPOSE OF MAKING ASSISTANCE AVAILABLE TO PROVIDE WORKING CAPITAL TO SUPPORT THE CONTINUED CAPITALIZATION OF TECHNOLOGY BASED BUSINESSES IN MISSISSIPPI; TO PROVIDE THAT THE PROGRAM SHALL BE UNDER THE DIRECTION OF THE MISSISSIPPI TECHNOLOGY ALLIANCE; TO ESTABLISH REQUIREMENTS AND GUIDELINES FOR THE PROGRAM; TO ESTABLISH THE APPLIED RESEARCH PROGRAM FOR THE PURPOSE OF MAKING ASSISTANCE AVAILABLE FOR SEED AND EARLY STAGE CAPITAL TO SMALL AND MEDIUM SIZED MISSISSIPPI BUSINESSES WITH HIGH GROWTH POTENTIAL THAT ARE ENGAGED IN RESEARCH AND DEVELOPMENT ACTIVITIES WITH A MISSISSIPPI UNIVERSITY, COLLEGE AND/OR COMMUNITY/JUNIOR COLLEGE; TO PROVIDE THAT THE PROGRAM SHALL BE UNDER THE DIRECTION OF THE MISSISSIPPI TECHNOLOGY ALLIANCE; TO ESTABLISH REQUIREMENTS AND GUIDELINES FOR THE PROGRAM; TO ESTABLISH THE MISSISSIPPI UNIVERSITY COMMERCIALIZATION PROGRAM FOR THE PURPOSE OF MAKING FUNDS AVAILABLE TO ASSIST FACULTY MEMBERS OF STATE INSTITUTIONS OF HIGHER LEARNING AND COMMUNITY/JUNIOR COLLEGES IN THE COMMERCIALIZATION OF THEIR TECHNOLOGY INTO EMERGING BUSINESSES; TO PROVIDE THAT THE PROGRAM SHALL BE UNDER THE DIRECTION OF THE MISSISSIPPI TECHNOLOGY ALLIANCE; TO ESTABLISH REQUIREMENTS AND GUIDELINES FOR THE PROGRAM; TO AUTHORIZE THE ISSUANCE OF STATE GENERAL OBLIGATION BONDS FOR THE PURPOSE OF PROVIDING FUNDS FOR THE PROGRAMS CREATED IN THIS ACT; AND FOR RELATED PURPOSES.

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

     SECTION 1.  (1)  There is established under the direction of the Mississippi Technology Alliance ("MTA") a program to be known as the "Capital Seed Investment Program-Level 1" for the purpose of making assistance available to provide working capital to support the initial capitalization of technology based businesses in Mississippi.

     (2)  (a)  In order to be eligible for assistance under the program, a business must:  (i) have its principal place of business based in Mississippi, (ii) produce or provide a product and/or service that is science or technology related, (iii) have fewer than fifty (50) employees, and (iv) have completed its product and/or service development planning.

          (b)  Any business desiring to participate in the program must submit an application to the MTA.  The application must contain a description of the purposes for which the assistance is requested, the amount of assistance requested and any other information requested by the MTA.  If the MTA staff reviewing the application determine that an application should be reviewed by the MTA Board of Directors, the application shall be forwarded to the board.  If the MTA Board of Directors approves the application, the MTA shall negotiate a contract with the business regarding any assistance provided to the business under the program, the expenditure of the assistance provided to the business, and any other matters to which the parties may agree.  Any such contract must provide for at least the following:  (i) that any assistance provided to the business will be on a reimbursement basis in which the business will expend funds according to the terms of the contract and submit invoices, receipts and other applicable documentation and information to the MTA for reimbursement; (ii) that no funds may be expended or used for patent prosecution, reorganization of the business, salaries or other compensation, or payment of any existing debt of the business outstanding or otherwise incurred at the time the contract is entered into; (iii) that no funds may be expended to reimburse expenses for work conducted or services provided by the business, a university or a third party consultant if those  expenses were incurred before the term of the contract; and (iv) that the business receiving assistance will retain ownership of any technology developed by the business regardless of whether the technology is developed before or after the receipt of assistance.  Assistance received by a business may be expended for hiring third party consultants to assist the business and for equipment.  The amount of assistance that a business may receive under the program shall not exceed Twenty-five Thousand Dollars ($25,000.00) and any award of assistance shall be made on a one time basis. 

     (3)  There is created in the State Treasury a special fund, to be designated as the "Capital Seed Investment Program-Level 1 Fund," which shall consist of funds appropriated or otherwise made available by the Legislature.  The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state.  Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited into such fund.  Monies in the fund shall be disbursed, in the discretion of the Mississippi Development Authority, to provide funds to the MTA for the purposes described in this section.

     SECTION 2.  (1)  There is established under the direction of  the Mississippi Technology Alliance ("MTA") a program to be known as the "Capital Seed Investment Program-Level 2" for the purpose of making assistance available to provide working capital to support the continued capitalization of technology based businesses in Mississippi.

     (2)  (a)  In order to be eligible for assistance under the program, a business must:  (i) have its principal place of business based in Mississippi, (ii) produce or provide a product and/or service that is science or technology related, (iii) have fewer than fifty (50) employees, and (iv) have completed its product and/or service development planning.

          (b)  Any business desiring to participate in the program must submit an application to the MTA.  However, before submitting an application, an applicant must have an initial consultation with MTA staff to determine whether the business is eligible for assistance under the program.  If the MTA staff determine that the business is eligible for funding under the program, the business may submit an application to the MTA.  The application must contain a description of the purposes for which the assistance is requested, the amount of assistance requested and any other information requested by the MTA.  If the MTA staff reviewing the application determine that an application should be reviewed by the MTA Board of Directors, the application shall be forwarded to the board.  If the MTA Board of Directors approves the application, the MTA shall negotiate a contract with the business regarding any assistance provided to the business under the program, the expenditure of the assistance provided to the business, and any other matters to which the parties may agree.  Any such contract must provide for at least the following:  (i) that any assistance provided to the business will be on a reimbursement basis in which the business will expend funds according to the terms of the contract and submit invoices, receipts and other applicable documentation and information to the MTA for reimbursement; (ii) that no funds may be expended or used for patent prosecution, reorganization of the business, or payment of any existing debt of the business outstanding or otherwise incurred at the time the contract is entered into; (iii) that no funds may be expended to reimburse expenses for work conducted or services provided by the business, a university or a third party consultant if those expenses were incurred before the term of the contract; and (iv) that the business receiving assistance will retain ownership of any technology developed by the business regardless of whether the technology is developed before or after the receipt of assistance.  Assistance received by a business may be expended for hiring third party consultants to assist the business, salaries, marketing, prototype development and equipment.  The amount of assistance that a business may receive under the program shall not exceed Fifty Thousand Dollars ($50,000.00) in any one (1) year and shall not exceed One Hundred Thousand Dollars ($100,000.00) in the aggregate. 

          (c)  A business receiving assistance that exceeds Twenty-five Thousand Dollars ($25,000.00), whether received entirely under the program established under this section or as a cumulative total of assistance received under this program and the program established under Section 1 of this act, shall be required to repay the entire amount of assistance received.  Repayment shall be made through the use of a convertible note in which the business will repay two hundred percent (200%) of the amount of assistance received, and the MTA shall have the option of converting the amount of assistance into common stock of the business.  However, the MTA may execute that option only if the business has exceeded performance requirements outlined in its business plan.  As an alternative, a business may make the repayment with a convertible debt instrument with an interest rate agreed upon by the parties.  Amounts received as repayments shall be used by the MTA to provide additional assistance under the program established under this section.

     (3)  There is created in the State Treasury a special fund, to be designated as the "Capital Seed Investment Program-Level 2 Fund," which shall consist of funds appropriated or otherwise made available by the Legislature.  The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state.  Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited into such fund.  Monies in the fund shall be disbursed, in the discretion of the Mississippi Development Authority, to provide funds to the MTA for the purposes described in this section. 

     SECTION 3.  (1)  There is established under the direction of  the Mississippi Technology Alliance ("MTA") a program to be known as the "Applied Research Program" for the purpose of making assistance available for seed and early stage capital to small and medium sized Mississippi businesses with high growth potential that are engaged in research and development activities with a Mississippi university, college and/or community/junior college.      (2)  (a)  In order to be eligible for assistance under the program, a business must:  (i) have its principal place of business based in Mississippi, (ii) produce or provide a product and/or service that is science or technology related, (iii) have completed its product and/or service development planning, and (iv) develop technology in partnership with a Mississippi university, college and/or community/junior college.

          (b)  Any business desiring to participate in the program must submit an application to the MTA.  The application must contain a technical brief and project plan for the commercialization of the technology developed or proposed for development by the business and any other information requested by the MTA.  If the MTA staff reviewing the application determine that an application should be reviewed by the MTA Board of Directors, the application shall be forwarded to the board.  If the MTA Board of Directors approves the application, the MTA shall negotiate a contract with the business regarding any assistance provided to the business under the program, the expenditure of assistance provided to the business, repayment of assistance by the business, and any other matters to which the parties may agree.  Any such contract must provide for at least the following: (i) that any assistance provided to the business will be on a reimbursement basis in which the business will expend funds according to the terms of the contract and submit invoices, receipts and other applicable documentation and information to the MTA for reimbursement; (ii) that no funds may be expended or used for patent prosecution, reorganization of the business, or payment of any existing debt of the business outstanding or otherwise incurred at the time the contract is entered into; (iii) that no funds may be expended to reimburse expenses for work conducted or services provided by the business, a university or a third party consultant if those expenses were incurred before the term of the contract; (iv) that at least fifty-one percent (51%) of the funds received by the business must be expended with a Mississippi university, college and/or community/junior college with which the business has a contract for research and development or technology development work or services; (v) that the MTA will pay not more than ten percent (10%) of overhead expenses for the business and/or the university, college and/or community/junior college; (vi) that the business will provide matching funding of One Dollar ($1.00) for every One Dollar ($1.00) of assistance, with at least twenty-five percent (25%) of the match being in cash and the remaining amount being from in-kind services, all of which must be documented by time sheets, payroll receipts, invoices and other documentation or information required by the MTA; and (vii) that the business receiving assistance will retain ownership of any technology developed by the business regardless of whether the technology is developed before or after the receipt of assistance.  Assistance received by a business and not expended for purposes required in the contract between the business and the MTA may be expended for hiring third party consultants to assist the business, working capital, marketing, prototype development and equipment.  The amount of assistance that a business may receive under the program shall not exceed One Hundred Thousand Dollars ($100,000.00) in any one (1) year and shall not exceed Two Hundred Thousand Dollars ($200,000.00) in the aggregate. 

          (c)  A business receiving assistance under the program shall be required to repay the assistance in the manner provided in this paragraph.  Repayment shall be made through the use of a convertible note in which the business will repay two hundred percent (200%) of the amount of assistance received, and the MTA shall have the option of converting the amount of assistance into common stock of the business.  However, the MTA may execute that option only if the business has exceeded performance requirements outlined in its business plan.  As an alternative, a business may make the repayment with a convertible debt instrument with an interest rate agreed upon by the parties.  Amounts received as repayments shall be used by the MTA to provide additional assistance under the program established under this section.

     (3)  There is created in the State Treasury a special fund, to be designated as the "Applied Research Program Fund," which shall consist of funds appropriated or otherwise made available by the Legislature.  The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state.  Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited into such fund.  Monies in the fund shall be disbursed, in the discretion of the Mississippi Development Authority, to provide funds to the MTA for the purposes described in this section.

     SECTION 4.  (1)  There is established under the direction of the Mississippi Technology Alliance ("MTA") a program to be known as the "Mississippi University Commercialization Program" for the purpose of making funds available to assist faculty members of state institutions of higher learning and community/junior colleges in the commercialization of their technology into emerging businesses.

     (2)  (a)  In order to be eligible for assistance under the program, a person must be a faculty member at a state institution of higher learning or community/junior college and have a business that is developing proprietary technologies which have commercial potential and which are in the prototype development stage.

          (b)  Any person desiring to participate in the program must submit an application to the MTA.  However, before submitting an application, the person must have an initial consultation with the MTA staff to determine if the potential applicant's business plan is eligible for funding under the program.  If the MTA staff determine that such a business plan is eligible for funding under the program, the person may submit an application to the MTA which must contain a description of the purposes for which assistance is requested, the amount of assistance requested and any other information required by the MTA.  If the MTA staff reviewing the application determine that an application should be reviewed by the MTA Board of Directors, the application shall be forwarded to the board.  If the MTA Board of Directors approves the application, the MTA shall negotiate a contract with the person regarding any assistance provided, to the person under the program, the expenditure of the assistance provided, repayment of assistance by the person, and any other matters to which the parties may agree.  Any such contract must provide for at least the following:  (i) that any assistance provided to the person will be on a reimbursement basis in which the person will expend funds according to the terms of the contract and submit invoices, receipts and other applicable documentation and information to the MTA for reimbursement; (ii) that no funds may be expended or used for patent prosecution, reorganization of the business, or payment of any existing debt outstanding or otherwise incurred at the time the contract is entered into; (iii) that no funds may be expended to reimburse expenses for work conducted or services provided by the person, a university or a third party consultant if those expenses were incurred before the term of the contract; (iv) that the MTA will pay not more than ten percent (10%) of overhead expenses related to a project for which assistance is requested; and (v) that the person receiving assistance will retain ownership of any technology developed by the applicant regardless of whether the technology is developed before or after the receipt of assistance.  Assistance received under the program may be expended for hiring third party consultants to assist the person, working capital, marketing, prototype development and equipment.  The amount of assistance that a person may receive under the program shall not exceed Fifty Thousand Dollars ($50,000.00) in any one (1) year and shall not exceed One Hundred Fifty Thousand Dollars ($150,000.00) in the aggregate.

          (c)  Except as otherwise provided in this paragraph, a person receiving assistance under the program shall be required to repay the assistance in the manner provided in this paragraph.  Repayment shall be made through the use of a convertible note in which the person will repay two hundred percent (200%) of the amount of assistance received, and the MTA shall have the option of converting the amount of assistance into common stock of the person's business.  However, the MTA may execute that option only if the person has exceeded performance requirements outlined in his business plan.  As an alternative, a person may make the repayment with a convertible debt instrument with an interest rate agreed upon by the parties.  Amounts received as repayments shall be used by the MTA to provide additional assistance under the program established under this section.  Notwithstanding the preceding provisions of this paragraph, if the recipient of assistance fails to meet certain financial performance levels established in the contract between the recipient and the MTA and the contract does not activate any repayment provisions, then the MTA will deem the assistance provided to be a loss and the recipient shall not be required to repay the assistance received.

     (3)  There is created in the State Treasury a special fund, to be designated as the "Mississippi University Commercialization Program Fund," which shall consist of funds appropriated or otherwise made available by the Legislature.  The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state.  Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited into such fund.  Monies in the fund shall be disbursed, in the discretion of the Mississippi Development Authority, to provide funds to the MTA for the purposes described in this section.  

     SECTION 5.  As used in Sections 5 through 20 of this act, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:

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

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

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

     SECTION 6.  (1)  The Mississippi Development Authority, at one time, or from time to time, may declare by resolution the necessity for issuance of general obligation bonds of the State of Mississippi to provide funds for the programs authorized in Sections 1, 2, 3 and 4 of this act.  Upon the adoption of a resolution by the Mississippi Development Authority, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this section, the Mississippi Development Authority shall deliver a certified copy of its resolution or resolutions to the commission.  Upon receipt of such resolution, the commission, in its discretion, may act as the issuing agent, prescribe the form of the bonds, advertise for and accept bids, issue and sell the bonds so authorized to be sold and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds.  The total amount of bonds issued under Sections 5 through 20 of this act shall not exceed Four Million Five Hundred Thousand Dollars ($4,500,000.00).

     (2)  (a)  The proceeds of bonds issued pursuant to Sections 5 through 20 of this act shall be deposited into the following special funds in not more than the following amounts:

(i)  The Capital Seed Investment Program-Level 1 Fund created pursuant to Section 1 of this act......................... $  500,000.00.

(ii)  The Capital Seed Investment Program-Level 2 Fund created pursuant to Section 2 of this act......................... $1,500,000.00.

(iii)  The Applied Research Program Fund created pursuant to Section 3 of this act...................................... $1,500,000.00.

(iv)  The Mississippi University Commercialization Program Fund created pursuant to Section 4 of this

act.............................................. $1,000,000.00.

          (b)  Any investment earnings on bonds issued pursuant to Sections 5 through 20 of this act shall be used to pay debt service on bonds issued under this act, in accordance with the proceedings authorizing issuance of such bonds.

     SECTION 7.  The principal of and interest on the bonds authorized under Sections 5 through 20 of this act shall be payable in the manner provided in this section.  Such bonds shall bear such date or dates, be in such denomination or denominations, bear interest at such rate or rates (not to exceed the limits set forth in Section 75-17-101, Mississippi Code of 1972), be payable at such place or places within or without the State of Mississippi, shall mature absolutely at such time or times not to exceed twenty-five (25) years from date of issue, be redeemable before maturity at such time or times and upon such terms, with or without premium, shall bear such registration privileges, and shall be substantially in such form, all as shall be determined by resolution of the commission.

     SECTION 8.  The bonds authorized by Sections 5 through 20 of this act shall be signed by the chairman of the commission, or by his facsimile signature, and the official seal of the commission shall be affixed thereto, attested by the secretary of the commission.  The interest coupons, if any, to be attached to such bonds may be executed by the facsimile signatures of such officers.  Whenever any such bonds shall have been signed by the officials designated to sign the bonds who were in office at the time of such signing but who may have ceased to be such officers before the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the signatures of such officers upon such bonds and coupons shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially signing such bonds had remained in office until their delivery to the purchaser, or had been in office on the date such bonds may bear.  However, notwithstanding anything herein to the contrary, such bonds may be issued as provided in the Registered Bond Act of the State of Mississippi.

     SECTION 9.  All bonds and interest coupons issued under the provisions of Sections 5 through 20 of this act have all the qualities and incidents of negotiable instruments under the provisions of the Uniform Commercial Code, and in exercising the powers granted by Sections 5 through 20 of this act, the commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.

     SECTION 10.  The commission shall act as the issuing agent for the bonds authorized under Sections 5 through 20 of this act, prescribe the form of the bonds, advertise for and accept bids, issue and sell the bonds so authorized to be sold, pay all fees and costs incurred in such issuance and sale, and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds.  The commission is authorized and empowered to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under Sections 5 through 20 of this act from the proceeds derived from the sale of such bonds.  The commission shall sell such bonds on sealed bids at public sale, and for such price as it may determine to be for the best interest of the State of Mississippi, but no such sale shall be made at a price less than par plus accrued interest to the date of delivery of the bonds to the purchaser.  All interest accruing on such bonds so issued shall be payable semiannually or annually; however, the first interest payment may be for any period of not more than one (1) year.

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

     The commission, when issuing any bonds under the authority of Sections 5 through 20 of this act, may provide that bonds, at the option of the State of Mississippi, may be called in for payment and redemption at the call price named therein and accrued interest on such date or dates named therein.

     SECTION 11.  The bonds issued under the provisions of Sections 5 through 20 of this act are general obligations of the State of Mississippi, and for the payment thereof the full faith and credit of the State of Mississippi is irrevocably pledged.  If the funds appropriated by the Legislature are insufficient to pay the principal of and the interest on such bonds as they become due, then the deficiency shall be paid by the State Treasurer from any funds in the State Treasury not otherwise appropriated.  All such bonds shall contain recitals on their faces substantially covering the provisions of this section.

     SECTION 12.  Upon the issuance and sale of bonds under the provisions of Sections 5 through 20 of this act, the commission shall transfer the proceeds of any such sale or sales to the special funds created in Sections 1, 2, 3 and 4 of this act in the amounts provided for in Section 6(2) of this act.  The proceeds of such bonds shall be disbursed as provided for in Sections 1, 2, 3 and 4 of this act under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds.

     SECTION 13.  The bonds authorized under Sections 5 through 20 of this act may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions and things which are specified or required by Sections 5 through 20 of this act.  Any resolution providing for the issuance of bonds under the provisions of Sections 5 through 20 of this act shall become effective immediately upon its adoption by the commission, and any such resolution may be adopted at any regular or special meeting of the commission by a majority of its members.

     SECTION 14.  The bonds authorized under the authority of Sections 5 through 20 of this act may be validated in the Chancery Court of the First Judicial District of Hinds County, Mississippi, in the manner and with the force and effect provided by Chapter 13, Title 31, Mississippi Code of 1972, for the validation of county, municipal, school district and other bonds.  The notice to taxpayers required by such statutes shall be published in a newspaper published or having a general circulation in the City of Jackson, Mississippi.

     SECTION 15.  Any holder of bonds issued under the provisions of Sections 5 through 20 of this act or of any of the interest coupons pertaining thereto may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights granted under Sections 5 through 20 of this act, or under such resolution, and may enforce and compel performance of all duties required by Sections 5 through 20 of this act to be performed, in order to provide for the payment of bonds and interest thereon.

     SECTION 16.  All bonds issued under the provisions of Sections 5 through 20 of this act shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi, and such bonds shall be legal securities which may be deposited with and shall be received by all public officers and bodies of this state and all municipalities and political subdivisions for the purpose of securing the deposit of public funds.

     SECTION 17.  Bonds issued under the provisions of Sections 5 through 20 of this act and income therefrom shall be exempt from all taxation in the State of Mississippi.

     SECTION 18.  The proceeds of the bonds issued under Sections 5 through 20 of this act shall be used solely for the purposes therein provided, including the costs incident to the issuance and sale of such bonds.

     SECTION 19.  The State Treasurer is authorized, without further process of law, to certify to the Department of Finance and Administration the necessity for warrants, and the Department of Finance and Administration is authorized and directed to issue such warrants, in such amounts as may be necessary to pay when due the principal of, premium, if any, and interest on, or the accreted value of, all bonds issued under Sections 5 through 20 of this act; and the State Treasurer shall forward the necessary amount to the designated place or places of payment of such bonds in ample time to discharge such bonds, or the interest thereon, on the due dates thereof.

     SECTION 20.  Sections 5 through 20 of this act shall be deemed to be full and complete authority for the exercise of the powers therein granted, but Sections 5 through 20 of this act shall not be deemed to repeal or to be in derogation of any existing law of this state.

     SECTION 21.  This act shall take effect and be in force from and after its passage.