House Bill 1358

AN ACT TO CREATE A PORT, TO BE NAMED BY THE GOVERNOR, TO BE LOCATED IN PRENTISS COUNTY, MISSISSIPPI; TO PROVIDE FOR THE MEMBERSHIP OF THE PORT COMMISSION; TO PROVIDE THE POWERS AND DUTIES OF THE PORT COMMISSION; TO AUTHORIZE THE PORT COMMISSION TO BORROW MONEY; TO PROVIDE THAT ALL LEASES SHALL BE EXEMPT FROM ALL STATE, COUNTY AND MUNICIPAL AD VALOREM TAXES; TO PROVIDE THAT THE COMMISSION MAY ACCEPT GRANTS OR LOANS FROM ANY PUBLIC OR PRIVATE AGENCY OR FROM ANY INDIVIDUAL; TO CREATE THE PRENTISS COUNTY AGRI-INDUSTRIAL PORT COMMISSION FUND; TO AUTHORIZE THE PORT COMMISSION TO ACQUIRE PROPERTY; TO AUTHORIZE THE PORT COMMISSION TO EMPLOY CERTAIN PERSONNEL AND ENTER INTO CONTRACTS; TO AUTHORIZE THE ISSUANCE OF STATE GENERAL OBLIGATION BONDS TO PROVIDE FUNDS TO THE PORT COMMISSION FOR THE PURPOSE OF PAYING ALL OR ANY PART OF THE COST OF THE ACQUISITION OF ANY STATE PORT, HARBOR, WATERWAY OR PART THEREOF LOCATED IN PRENTISS COUNTY, MISSISSIPPI, AND THE PLANNED DEVELOPMENT OF ANY PORT, HARBOR, WATERWAY OR PART THEREOF LOCATED IN PRENTISS COUNTY, MISSISSIPPI; TO PROVIDE THAT THE PRINCIPAL OF AND INTEREST ON THE BONDS WILL BE PAID PRIMARILY FROM CERTAIN NET REVENUES DEPOSITED INTO A BOND SINKING FUND; AND FOR RELATED PURPOSES.

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

SECTION 1. This act shall be known and may be cited as the "Prentiss County Agri-Industrial Port Law."

SECTION 2. It is hereby declared to be the public policy of the state to aid the industrial development and economy of the state through the acquisition, promotion, development, improvement and expansion of a port and attendant industrial sites in Prentiss County, Mississippi.

SECTION 3. (1) Sections 1 through 12 shall be construed liberally and broadly to effectuate the policy and purposes set out herein.

(2) Sections 1 through 12 of this act shall be deemed to be full and complete authority for the exercise of the powers herein granted, but Sections 1 through 12 of this act shall not be deemed to repeal or to be in derogation of any existing law of this state.

(3) The provisions of Sections 1 through 12 of this act shall not be construed to repeal, amend, limit, or restrict statutes heretofore or hereinafter enacted, providing for the establishment, support, financing, and maintenance of port commissions, authorities, or other local agencies having jurisdiction over harbors, ports, rivers, channels, and waterways, nor to be applicable to any bond issue, heretofore or hereafter issued for port or harbor purposes by any county or municipality in which the port is located, and the provisions hereof shall be supplemental and cumulative and shall not repeal, limit, or restrict the authority granted any public body or agency under any existing statute, except as herein otherwise expressly provided.

SECTION 4. There is hereby created an Agri-Industrial Port Commission (hereinafter referred to as the "commission") to be located in Prentiss County, Mississippi. The port created and developed pursuant to the provisions of this act shall be named by proclamation issued by the Governor. The commission shall be composed of five (5) residents of the first congressional district of Mississippi who shall also be qualified electors of the district. The commission shall have jurisdiction over the port, terminals, harbors and passes leading thereto, and all vessels, boats and wharves, common carriers, and public utilities therein, using the same. The port commission shall be appointed as follows: three (3) members shall be appointed by the Governor and two (2) shall be appointed by the Lieutenant Governor. Before entering upon the duties of the office, each of the commissioners shall take and subscribe to the oath of office required by Section 268 of the Constitution of the State of Mississippi. The commissioners shall hold office for a term of four (4) years from the date of their appointment and qualification and until their successor or successors shall be appointed and qualified as set out herein. Three (3) members of the port commission shall be necessary to constitute a quorum for the conducting of business. The commissioners shall work in conjunction with the United States Army Corp of Engineers located in Prentiss County, Mississippi, in developing the Port in Prentiss County, Mississippi, created and developed pursuant to the provisions of this act.

SECTION 5. There is hereby vested in the commission the duty to implement such declared public policy as herein provided. Wide latitude and discretion shall be vested in the commission in the exercise of its powers and duties, and the enumeration of specific rights, powers, and duties of the commission, when followed by general powers, shall not be construed in the restrictive sense.

SECTION 6. (1) The commission shall have power to acquire, purchase, install, lease, construct, own, hold, maintain, equip, use, control, and operate ports, harbors, waterways, channels, wharves, piers, docks, quays, elevators, tipples, compresses, bulk loading and unloading facilities, warehouses, floating dry docks, graving docks, marine railways, tugboats, machinery and equipment, and water, air and rail terminals, and roadways and approaches thereto, and other structures and facilities needful for the convenient use of the same in the aid of commerce, including the dredging, deepening, extending, widening, or enlarging of any ports, harbors, rivers, channels, and waterways, the damming of inland waterways, the establishment of water basins, the acquisition and development of industrial sites and the reclaiming of submerged lands.

(2) The commission shall have the power to borrow money from any source, public or private, for any of its corporate purposes and to give such security as may be required in connection therewith and to enter into a joint agreement with the boards of supervisors of any county, or the governing authority of any municipality, or both acting jointly, to issue revenue bonds of such county or municipality, or both, acting jointly, which bonds may be payable out of any revenues of the commission, including grants or contributions from the federal government or other sources. Such revenue bonds may be issued without an election on resolution of the board of supervisors, governing body of the municipality, or both acting jointly, and shall not be subject to any limitation as to amount, and shall not be included or computed in the statutory limitation of indebtedness of any such county or municipality.

(3) All leases which may be executed by the commission for port, harbor, commercial or industrial improvements, and all structures and all improvements and other permanent facilities erected, installed or located by such lessees, or their successors or assignees within the limits of any port, harbor or part thereof, may be free and exempt from all state, county and municipal ad valorem taxes if so stipulated in such lease, and for such period as may be fixed in such lease, not to exceed such periods of time as are now authorized or may be hereafter authorized by law.

SECTION 7. The commission, in addition to the monies which may be received by it from the sale of bonds, the proceeds of a loan, and from the collection of revenues, rents and earnings derived under the provisions of Sections 1 through 12 of this act, may accept from any public or private agency, or from any individual grants or loans for or in aid of the construction of any planned development, or for the payment of bonds, and to receive and accept contributions from any source, of money or property or other things of value to be held, used and applied only for the purposes for which such grants, loans or contributions may be made.

SECTION 8. The agreement between the commission and the participating county or other authorized agency shall provide that a fair and proportionate part of the expense of the commission administering Sections 1 through 12 of this act shall be considered a part of the cost of the development or operation of the planned development, and such costs shall be paid into a separate state fund in the State Treasury, to be known as the "Prentiss County Agri-Industrial Port Commission Fund." Such fund shall be used by the commission for the promotion, development, construction, improvement, expansion, maintenance, advertising, and general advancement of the state harbors, ports, rivers, channels, and waterways and may be expended on requisition of the commission for such purposes and such other purposes as in the opinion of the commission is to the best interest of the ports, harbors, and waterways of this state and especially Prentiss County, Mississippi. The salaries of all officers, employees, or agents of the commission, performing duties required by Sections 1 through 12 of this act, and all other expenses incidental to the port, harbor, or waterway operation of the commission shall be fixed by the commission and payable out of this fund. The commission may contract with one or more state inland port authorities, or any city, county or other authorized port or harbor agency for any joint activity or for the joint employment of personnel with the expense of the activity or salary of such personnel to be paid by the commission from operational funds provided by the contracting parties.

SECTION 9. The commission is authorized to set aside, or lease all or portions of any lands, roads, docks, sheds, warehouses, elevators, compresses, floating dry docks, graving docks, marine railways, tugboats, or any other necessary or useful improvements constructed or acquired by it to individuals, firms, or corporations, public or private, for port, harbor, commercial or industrial purposes for a period not to exceed ninety-nine (99) years, or to execute a conveyance of sale on such terms and conditions and with such safeguards as would best promote and protect the public interest. Any industrial lease of lands or conveyance of sale may be executed upon such terms and conditions and for such monetary rental or other consideration as may be found adequate and approved by the commission in orders or resolutions authorizing the same. Any covenants and agreements of the lessee or purchaser to make expenditures in determined amounts, and within such time or times, for improvements to be erected upon the land by such lessee or purchaser and to conduct thereon industrial and/or other operations in such aggregate payroll amounts and for such period of time as may be determined and defined in such lease or conveyance, and to give preference in employment where practical to residents of the State of Mississippi and to qualified residents of the city and the county in which such port or harbor is located, shall, if included in such lease or conveyance, constitute and be deemed sufficient consideration for the execution of any such lease or conveyance in the absence of monetary rental or other considerations; any such instrument may contain reasonable provisions giving the lessee the right to remove its improvements upon the termination of the lease.

SECTION 10. The commission, in the performance of its duties, may employ such personnel and make all contracts and purchases incidental to or necessary for the advancement, promotion, development, establishment, insurance, maintenance, repair, improvement and operation of any ports, harbors, rivers, channels and waterways, including, if required for its protection, retirement benefits, workers' compensation insurance and other employee benefits for the benefit of any of its employees. The commission shall make such contracts or purchases in accordance with state purchasing laws. Contracts let for any port, harbor, river, channel or waterway improvements shall be advertised as required by law for the letting of public contracts, and such contracts shall be awarded to the lowest and best bidder, who shall make such bond as shall be required by the commission, conditioned for the faithful prosecution and completion of the work according to such contract, such bond to be furnished by a corporate surety company qualified to do business in this state. However, the commission may negotiate and enter into contracts with responsible lessees for the construction of facilities by lessees, such as those referred to in Section 6 of this act, and the acquisition thereof by the commission upon such terms and conditions and for such amounts as may be approved by the commission. Where the rentals provided in the lease will be sufficient to fully repay the cost of the particular facility or where the monetary consideration for a deed is sufficient to fully repay the cost of land acquired for industrial operations described in the deed, contracts for construction, repairs, maintenance and operation of the facility or for the sale of the land may be negotiated and consummated without the necessity of advertising and obtaining competitive bids. The commission is granted the power to sue and be sued in its own name.

SECTION 11. For the acquiring of rights-of-way, land and property, including existing easements, restrictive covenants and reversionary estates necessary for the purpose herein authorized, the commission shall have the right and power to acquire the same by purchase, negotiation or condemnation, and, should it elect to exercise the right of eminent domain, it may proceed in the manner provided by the general laws of the State of Mississippi for procedure by any county, municipality or corporation organized under the laws of this state, or in any other manner provided by law. The power of eminent domain shall apply not only as to all property of private persons or corporations, but also as to property already devoted to public use, including leaseholds, excepting interests in property owned by levee boards, drainage districts, or other flood control agencies. However, the commission shall have no authority to acquire without the consent of the owner thereof any property operated and used for port, harbor or industrial purposes or such purposes as the commission is authorized to acquire and use property for, unless an actual necessity therefor be alleged and proven. The commission is authorized to accept donations of lands, rights therein, monies and materials required for the maintenance or development of any port or harbor. The commission may exchange any property or properties acquired under the authority of Sections 1 through 12 of this act for other property or properties usable in carrying out the powers hereby conferred, and also remove from lands needed for its purposes and reconstruct on other locations, buildings, utilities, terminals, railroads or other structures upon the payment of just compensation, if it is necessary so to do, in order to carry out any of its plans for port development. The title to all land or property acquired under the authority of Sections 1 through 12 of this act shall vest in the State of Mississippi. Nothing contained in this section shall be construed to authorize the taking by eminent domain of any private property except for necessary public use, such right of eminent domain to be limited to the acquisition of railroad rights-of-way, road rights-of-way and land for industrial use only.

SECTION 12. (1) For the purposes of this act, "net revenues" shall be defined in the agreement between the State Bond Commission and the port commission.

(2) All net revenues, rents and earnings from the operation or maintenance of any port commission-owned port or harbor, or any part thereof, shall be set aside exclusively for the payment of any bonds issued by the state for such port or harbor, or any part thereof, and shall be expended by the commission exclusively for the payment of such bonds as provided in Section 13 of this act, and if not such bonds be outstanding, then by the port commission for the improvement, operation, advancement, development, maintenance and advertising of the port to which such funds have accrued.

SECTION 13. (1) As used in this section, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:

(a) "Accreted value" of any bond 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.

(2) (a) (i) A special fund, to be designated as the "2019 Prentiss County Agri-Industrial Port Fund," is created within the State Treasury. 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.

(ii) Monies deposited into the fund shall be disbursed, in the discretion of the Department of Finance and Administration, to the port commission for the purpose of paying all or any part of the cost of the acquisition of any state port, harbor, waterway or part thereof located in Prentiss County, Mississippi, and the planned development of any port, harbor, waterway or part thereof located in Prentiss County, Mississippi.

(b) Amounts deposited into such special fund shall be disbursed to pay the costs of the projects described in paragraph (a) of this subsection (2). Promptly after the commission has certified, by resolution duly adopted, that the projects described in paragraph (a) of this subsection (2) shall have been completed, abandoned, or cannot be completed in a timely fashion, any amounts remaining in such special fund shall be applied to pay debt service on the bonds issued under this section, in accordance with the proceedings authorizing the issuance of such bonds and as directed by the commission.

(3) For the purposes of providing for the payment of the principal of and interest on bonds issued under this section, there is created in the State Treasury a special fund to be known as the "2019 Prentiss County Agri-Industrial Port Bond Sinking Fund." The bond sinking fund shall consist of monies deposited into the fund under Section 12 of this act, and such other amounts as may be paid into the bond sinking fund by appropriation or other authorization by the Legislature. Monies in the bond sinking fund shall be used to pay the debt service requirements of the bonds issued under this section. Unexpended amounts remaining in the bond sinking 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 bond sinking fund shall be deposited into the bond sinking fund.

(4) (a) The commission, 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 all costs incurred or to be incurred for the purposes described in subsection (2) of this section. Upon the adoption of a resolution by the Department of Finance and Administration, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this subsection, the department 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 issuing agent, prescribe the form of the bonds, determine the appropriate method for sale of the bonds, advertise for and accept bids or negotiate the sale of the bonds, 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 this section shall not exceed Twenty Million Dollars ($20,000,000.00); however, not more than Five Million Dollars ($5,000,000.00) of such bonds may be issued before July 1, 2020. No bonds shall be issued under this section after July 1, 2024.

(b) Any investment earnings on amounts deposited into the special fund created in subsection (2) of this section shall be used to pay debt service on bonds issued under this section, in accordance with the proceedings authorizing issuance of such bonds.

(5) The principal of and interest on the bonds authorized under this section shall be payable in the manner provided in this subsection. 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 (20) 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.

(6) The bonds authorized by this section shall be signed by the chair of the commission, or by his or her 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.

(7) All bonds and interest coupons issued under the provisions of this section have all the qualities and incidents of negotiable instruments under the provisions of the Uniform Commercial Code, and in exercising the powers granted by this section, the commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.

(8) The commission shall act as issuing agent for the bonds authorized under this section, prescribe the form of the bonds, determine the appropriate method for sale of the bonds, advertise for and accept bids or negotiate the sale of the bonds, 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 this section from the proceeds derived from the sale of such bonds. The commission may sell such bonds on sealed bids at public sale or may negotiate the sale of the bonds for such price as it may determine to be for the best interest of the State of Mississippi. All interest accruing on such bonds so issued shall be payable semiannually or annually.

If such bonds are sold by sealed bids at public sale, notice of the sale 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, selected by the commission.

The commission, when issuing any bonds under the authority of this section, 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.

(9) The bonds issued under the provisions of this section 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. The principal of and the interest on the bonds shall be payable primarily from the bond sinking fund created in subsection (3) of this section. If the funds available in the bond sinking fund and any 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 subsection.

(10) Upon the issuance and sale of bonds under the provisions of this section, the commission shall transfer the proceeds of any such sale or sales to the special fund created in subsection (2) of this section. The proceeds of such bonds shall be disbursed solely upon the order of the Department of Finance and Administration under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds.

(11) The bonds authorized under this section 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 this section. Any resolution providing for the issuance of bonds under the provisions of this section 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.

(12) The bonds authorized under the authority of this section 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.

(13) Any holder of bonds issued under the provisions of this section 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 this section, or under such resolution, and may enforce and compel performance of all duties required by this section to be performed, in order to provide for the payment of bonds and interest thereon.

(14) All bonds issued under the provisions of this section 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.

(15) Bonds issued under the provisions of this section and income therefrom shall be exempt from all taxation in the State of Mississippi.

(16) The proceeds of the bonds issued under this section shall be used solely for the purposes herein provided, including the costs incident to the issuance and sale of such bonds.

(17) 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 this section; 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.

(18) This section shall be deemed to be full and complete authority for the exercise of the powers herein granted, but this section shall not be deemed to repeal or to be in derogation of any existing law of this state.

SECTION 14. This act shall take effect and be in force from and after July 1, 2019.