MISSISSIPPI LEGISLATURE

2007 Regular Session

To: Ports, Harbors and Airports

By: Representative Broomfield, Bailey, Burnett, Fleming, Guice, Hamilton (109th), Hines, Johnson, Simpson, Wells-Smith

House Bill 944

(As Passed the House)

AN ACT TO AMEND SECTION 61-3-21, MISSISSIPPI CODE OF 1972, TO INCREASE THE MAXIMUM LEASE TERM AGREEMENTS FROM 40 YEARS TO 75 YEARS THAT AIRPORT AUTHORITIES MAY ENTER INTO LEASE AGREEMENTS FOR CERTAIN PURPOSES; TO AMEND SECTION 61-5-11, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 61-3-21, Mississippi Code of 1972, is amended as follows:

     61-3-21.  (1)  In connection with the operation of an airport or air navigation facility owned or controlled by an authority, the authority may enter into contracts, leases and other arrangements for terms not to exceed seventy-five (75) years with any persons:  (a) granting the privilege of using or improving the airport or air navigation facility or any portion or facility thereof or space therein for commercial purposes; (b) conferring the privilege of supplying goods, commodities, things, services or facilities at the airport or air navigation facility; and (c) making available services to be furnished by the authority or its agents at the airport or air navigation facility.

     In each case the authority may establish the terms and conditions and fix the charges, rentals or fees for the privileges or services, which shall be reasonable and uniform for the same class of privilege or service and which shall be established with due regard to the property and improvements used and the expenses of operation to the authority.  In no case shall the public be deprived of its rightful, equal and uniform use of the airport, air navigation facility or portion or facility thereof.

     (2)  Except as may be limited by the terms and conditions of any grant, loan or agreement authorized by Section 61-3-25, Mississippi Code of 1972, an authority may, by contract, lease or other arrangements, upon a consideration fixed by it, grant to any qualified person for a term not to exceed seventy-five (75) years, the privilege of operating, as agent of the authority or otherwise, any airport owned or controlled by the authority.  However, no person shall be granted any authority to operate an airport other than as a public airport or to enter into any contracts, leases or other arrangements in connection with the operation of the airport which the authority might not have undertaken under subsection (1) of this section.

     (3)  All contracts, leases and other arrangements entered into pursuant to this section are deemed to serve a public and governmental purpose as a matter of public necessity; therefore, all such contracts, leases, and other arrangements and all structures, improvements and other facilities erected, installed, constructed or located in connection therewith on an airport or air navigation facility owned or controlled by an authority, or any portion of facility thereof or space therein, shall be free and exempt from all state, county and municipal ad valorem taxes on real property and personal property for so long as may otherwise be lawful, and the charges, rentals and fees received by an authority in connection with such contracts, leases and other arrangements shall be deemed to be in lieu of said taxes.

     SECTION 2.  Section 61-5-11, Mississippi Code of 1972, is amended as follows:

     61-5-11.  (1)  In operating an airport or air navigation facility owned, leased or controlled by a municipality, such municipality may, except as may be limited by the terms and conditions of any grant, loan or agreement pursuant to Section 61-5-15, enter into contracts, leases and other arrangements for a term not exceeding seventy-five (75) years with any persons:

          (a)  Granting the privilege of using or improving such airport or air navigation facility or any portion or facility thereof, or space therein for commercial purposes; or

          (b)  Conferring the privilege of supplying goods, commodities, things, services or facilities at such airport or air navigation facility; or

          (c)  Making available services to be furnished by the municipality or its agents at such airport or air navigation facility.

     In each case the municipality may establish the terms and conditions and fix the charges, rentals or fees for the privileges or services, which shall be reasonable and uniform for the same class of privilege or service and shall be established with due regard to the property and improvements used and the expenses of operation to the municipality.

     (2)  Except as may be limited by the terms and conditions of any grant, loan or agreement pursuant to Section 61-5-15, a municipality may by contract, lease or other arrangement, upon a consideration fixed by it, grant to any qualified person for a term not to exceed seventy-five (75) years the privilege of operating, as agent of the municipality or otherwise, any airport owned or controlled by the municipality.  However, no person shall be granted any authority to operate an airport other than as a public airport or to enter into any contracts, leases or other arrangements in connection with the operation of the airport which the municipality might not have undertaken under subsection (1) of this section.

     (3)  All contracts, leases and other arrangements entered into pursuant to this section are deemed to serve a public and governmental purpose as a matter of public necessity; therefore, all such contracts, leases and other arrangements, and all structures, improvements and other facilities erected, installed, constructed or located in connection therewith on an airport or air navigation facility owned or controlled by a municipality, or any portion or facility thereof or space therein, shall be free and exempt from all state, county and municipal ad valorem taxes on real property and personal property for so long as may otherwise be lawful, and the charges, rentals and fees received by a municipality in connection with such contracts, leases and other arrangements shall be deemed to be in lieu of said taxes.

     SECTION 3.  This act shall take effect and be in force from and after May 31, 2007.