2007 Regular Session
To: Oil, Gas and Other Minerals
By: Representative Reeves, Walley, Staples, Guice
AN ACT TO CREATE THE MISSISSIPPI GULF PRODUCING STATES TRUST FUND; TO PROVIDE THAT MONEY IN THE TRUST FUND SHALL BE APPROPRIATED BY THE LEGISLATURE TO ASSIST IN THE DEVELOPMENT, REHABILITATION AND PRESERVATION OF COASTAL RESOURCES, PREPAREDNESS AND FOR OTHER PURPOSES CONSISTENT WITH THIS ACT AND THE "Gulf of Mexico Energy Security Act of 2006" being a part of the "Tax Relief and Health Care Act of 2006," PUBLIC LAW NO. 109-432, THAT PROVIDES FOR THE DISPOSITION AND ALLOCATION OF Qualified Outer Continental Shelf Revenues TO GULF PRODUCING STATES AND COASTAL POLITICAL SUBDIVISIONS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. There is created the "Mississippi Gulf Producing States Trust Fund," hereafter referred to as the "trust fund" to be held as a separate fund within the State Treasury to be administered by the Department of Marine Resources, hereinafter referred to as the "department." The fund shall consist of monies received by the state from monies allocated to it pursuant to the "Gulf of Mexico Energy Security Act of 2006" being a part of the "Tax Relief and Health Care Act of 2006" (Public Law No. 109-432). The principal of the fund shall remain inviolate and shall be invested as provided by law. Interest earned on the principal therein shall be credited by the treasurer to the fund. Only the interest and income derived from investment of principal of the trust fund may be expended. Unexpended and unencumbered amounts in the trust fund at the end of each fiscal year shall not lapse.
SECTION 2. (1) The interest and income derived from the monies in the trust shall be appropriated by the Legislature directly to the department as administrator of the trust fund, which shall formulate a plan of spending subject to approval of the Commission on Marine Resources to be effectuated in a manner consistent to ensure compliance with all federal laws and regulations for one or more of the following purposes:
(a) Projects and activities for the purposes of coastal protection, including conservation, coastal restoration, hurricane protection and infrastructure directly affected by coastal wetland losses.
(b) Mitigation of damage to fish, wildlife or natural resources.
(c) Implementation of a federally approved marine, coastal or comprehensive conservation management plan.
(d) Mitigation of the impact of outer continental shelf activities through the funding of onshore infrastructure projects.
(e) Not more than three percent (3%) of the amounts received for planning assistance and the administrative costs of complying with this act.
(2) Allocation of funds received from revenues generated from the lease of properties on the Outer-Continental Shelf shall be deposited to the credit of the department in amounts as follows:
(a) In the first year of funds disbursement, fifty percent (50%) of the amount of incoming payments, interest and investment income;
(b) In the second year of funds disbursement, forty percent (40%) of the amount of incoming payments, interest and investment income;
(c) In the third year of funds disbursement, thirty percent (30%) of the amount of incoming payments, interest and investment income;
(d) In the fourth year of funds disbursement, twenty percent (20%) of the amount of incoming payments, interest and investment income;
(e) In the fifth year of funds disbursement, ten percent (10%) of the amount of incoming payments, interest and investment income; and
(f) In the sixth and subsequent years thereto of funds disbursement, one hundred percent (100%) of funds received shall be deposited in the fund until the trust funds reaches a balance of Five Hundred Million Dollars ($500,000,000.00), at which time the Legislature may disburse twenty-five percent (25%) of incoming funds together with interest and investment income for use in accordance with Section 2(1) of this act.
(3) In the event that any provision of this act shall be in conflict with any federal laws or regulations, then federal laws or regulations shall control.
SECTION 3. This act shall take effect and be in force from and after July 1, 2007.