MISSISSIPPI LEGISLATURE

2020 Regular Session

To: Transportation; Appropriations

By: Representative McGee

House Bill 1383

(As Passed the House)

AN ACT TO AMEND SECTION 65-4-5, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF HIGH ECONOMIC BENEFIT PROJECT FOR THE ECONOMIC DEVELOPMENT HIGHWAY ACT TO INCLUDE CERTAIN NEW INVESTMENTS TO ESTABLISH A PRIVATE REGIONAL OR NATIONAL HEADQUARTERS; TO AMEND SECTION 65-4-15, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT A MIXED-USE DEVELOPMENT THAT INCLUDES A RETAIL SPACE COMPONENT IS NOT PROHIBITED FROM RECEIVING MONIES AS A HIGH ECONOMIC BENEFIT PROJECT; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 65-4-5, Mississippi Code of 1972, is amended as follows:

     65-4-5.  (1)  The following words when used in this chapter shall have the meanings herein ascribed unless the context otherwise clearly requires:

          (a)  "Board" means the Mississippi Development Authority;

          (b)  "Department" means the Mississippi Department of Transportation;

          (c)  "High economic benefit project" means:

              (i)  Any new investment by a private company with capital investments in land, buildings, depreciable fixed assets and improvements of at least Seventy Million Dollars ($70,000,000.00);

              (ii)  Any new investment of at least Twenty Million Dollars ($20,000,000.00) by a private company having capital investments in this state in land, buildings, depreciable fixed assets and improvements of at least One Billion Dollars ($1,000,000,000.00) in the aggregate;

              (iii)  Public investment of at least One Hundred Million Dollars ($100,000,000.00) to take place over a specified period of time and in accordance with a master plan duly adopted by the controlling political subdivision;

              (iv)  Any new investments in land, buildings, depreciable fixed assets and improvements by two (2) private companies upon land that is adjacent whenever the new investments of both companies are at least Sixty Million Dollars ($60,000,000.00) in the aggregate, and such new investments by both private companies provide for the employment of at least five hundred (500) employees in the aggregate;

              (v)  Any project which would benefit from the construction of any highway bypass which would aid in economic development and would provide an alternate route to avoid an existing route which underpasses a railroad and which would aid in existing or proposed industry;

              (vi)  Any master planned community;

              (vii)  Any new investments in land, buildings, depreciable fixed assets and improvements by not more than three (3) private companies physically located within a one-half-mile radius of each other whenever the new investments of such companies are at least Sixty Million Dollars ($60,000,000.00) in the aggregate, and such new investments by such companies provide for the employment of at least three hundred (300) new employees in the aggregate;

              (viii)  Any new investments in land, buildings, depreciable fixed assets and improvements by two (2) or more private companies upon lands originally adjacent, but now divided by a four-lane state highway and bordered by a two-lane state highway, and the new investments of the companies are at least Fifty Million Dollars ($50,000,000.00) in the aggregate, and a portion of such new investment will be utilized for the construction of a hospital;

              (ix)  [Repealed]

              (x)  Any project as defined in Section 57-75-5(f)(xxi); however, the term "high economic benefit project" does not include the construction of Mississippi Highway 348;

              (xi)  Any project as defined in Section 17-25-17;

              (xii)  Any project which would allow access to a national intermodal facility with a minimum capital investment of One Hundred Million Dollars ($100,000,000.00) that is located within five (5) miles of the State of Mississippi and has direct access into an industrial park within the state * * *.;

              (xiii)  Any new investments in land, buildings and depreciable fixed assets and improvements by a private company of at least One Hundred Million Dollars ($100,000,000.00) over a specified period of time in accordance with a defined capital improvement project approved by the board * * *.;

              (xiv)  Any new investments in land, buildings, depreciable fixed assets and improvements of at least Fifteen Million Dollars ($15,000,000.00) by a private company to establish a private regional or national headquarters and such new investments provide for the employment of at least one hundred (100) new employees in the aggregate over a five (5) year period with those new employees earning an annual average salary, excluding benefits which are not subject to Mississippi income taxes, of at least one hundred fifty percent (150%) of the most recently published state average annual wage or the most recently published average annual wage of the county in which the qualified private regional or national headquarters is located, as determined by the Mississippi Department of Employment Security, whichever is less;

     However, if the initial investments that a private company made in order to meet the definition of a high economic benefit project under this paragraph (c)(i) and in order to be approved for such project exceeded Fifty Million Dollars ($50,000,000.00), or if subsequent to being approved for the initial project the same company and/or one or more other private companies made additional capital investments exceeding Fifty Million Dollars ($50,000,000.00) in aggregate value in land, buildings, depreciable fixed assets and improvements physically attached to or forming a part of the initially planned site development, then an amount equal to fifty percent (50%) of all such investments that exceeds Fifty Million Dollars ($50,000,000.00) shall be subtracted from the Sixty Million Dollars ($60,000,000.00) in aggregate value of new investments required under this paragraph (c)(vii);

          (d)  "Political subdivision" means one or more counties or incorporated municipalities in the state, or a state-owned port located in a county bordering on the Gulf of Mexico;

          (e)  "Private company" means:

              (i)  Any agricultural, aquacultural, maricultural, processing, distribution, warehousing, manufacturing, transportation, tourism or research and development enterprise;

              (ii)  Any air transportation and maintenance facility, regional shopping mall, hospital, large hotel, resort or movie industry studio;

              (iii)  The federal government with respect to any specific project which meets the criteria established in paragraph (c)(i) of this subsection;

              (iv)  Any existing or proposed industry in regard to a project described in paragraph (c)(v) of this subsection;

              (v)  A developer with respect to any specific project which meets the criteria established in paragraph (c)(vi) of this subsection; or

              (vi)  A tourism project approved by the board;

          (f)  "Master planned community" shall have the same meaning as that term is defined in Section 19-5-10.

     (2)  The Mississippi Department of Transportation is hereby authorized to purchase rights-of-way and construct and maintain roads and highways authorized to be constructed pursuant to this chapter.

     SECTION 2.  Section 65-4-15, Mississippi Code of 1972, is amended as follows:

     65-4-15.  (1)  There is hereby established a special fund in the State Treasury to be known as the "Economic Development Highway Fund" which shall consist of such monies as the Legislature shall appropriate thereto or such other monies as the Legislature may designate to be deposited therein.  Any monies to the credit of such fund may be expended by the Mississippi Department of Transportation or political subdivision, as appropriate, upon approval of requisitions therefor by the Mississippi Development Authority for any expenses incurred by the Transportation Department or political subdivision in constructing and improving highways and highway segments which have been approved by the Mississippi Development Authority under the provisions of this chapter.  From and after July 1, 2004, no monies to the credit of the fund may be expended for the construction and improvement of highways for high economic benefit projects that are being developed for the primary purpose of conducting retail sales unless the Mississippi Development Authority has received an application for the project prior to July 1, 2004; however, the primary purpose is not conducting retail sales if the project is a mixed-use development for which retail space is one component.  With regard to a high economic benefit project as defined in Section 65-4-5(1)(c)(xiii) for which the Mississippi Development Authority approved and allocated monies in the fund before January 1, 2016, for constructing or improving a highway or highway segment related to the high economic benefit project, the Mississippi Development Authority may reallocate such monies from the original highway or highway segment purpose and allocate the funds for constructing or improving another highway or highway segment provided that such highway or highway segment is located within three (3) miles of the high economic benefit project for which the Mississippi Development Authority originally allocated and approved the monies.  The Office of State Aid Road Construction shall be entitled to reimbursement from monies in the fund, upon approval by the Mississippi Development Authority of requisitions therefor by the State Aid Engineer, for the actual expenses incurred by the office in administering and providing engineering services to political subdivisions.  Monies remaining unexpended to the credit of such special fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on the investment of monies in the special fund shall be deposited to the credit of the fund.

     (2)  Monies in the Economic Development Highway Fund which are derived from proceeds of bonds issued under this chapter after July 1, 2003, may be used to reimburse reasonable actual and necessary costs incurred by the Mississippi Development Authority for the administration of the various grant, loan and financial incentive programs administered by the authority.  An accounting of actual costs incurred for which reimbursement is sought shall be maintained by the Mississippi Development Authority.  Reimbursement of reasonable actual and necessary costs shall not exceed three percent (3%) of the proceeds of bonds issued.  Reimbursements to the Mississippi Development Authority under this subsection shall satisfy any applicable federal tax law requirements.

     SECTION 3.  This act shall take effect and be in force from and after July 1, 2020.