MISSISSIPPI LEGISLATURE

2021 Regular Session

To: Ways and Means

By: Representative Lamar

House Bill 1364

(COMMITTEE SUBSTITUTE)

AN ACT TO AUTHORIZE THE ISSUANCE OF STATE REVENUE BONDS TO PROVIDE FUNDS FOR VARIOUS MISSISSIPPI DEPARTMENT OF TRANSPORTATION PROJECTS, TO PROVIDE FUNDS FOR THE 2021 MUNICIPALITIES ROAD AND BRIDGE FUND AND TO PROVIDE FUNDS FOR THE EMERGENCY ROAD AND BRIDGE REPAIR FUND; TO CREATE A SPECIAL BOND SINKING FUND FOR THE PURPOSE OF PAYING THE DEBT SERVICE OF BONDS ISSUED UNDER THIS ACT; TO PROVIDE THAT THE SPECIAL BOND SINKING FUND SHALL CONSIST OF A PORTION OF THE STATE GASOLINE EXCISE TAX REVENUE AND DIESEL FUEL EXCISE TAX REVENUE AND OTHER AMOUNTS AS MAY BE PAID BY APPROPRIATION OR OTHER AUTHORIZATION OF THE LEGISLATURE; TO CREATE IN THE STATE TREASURY A SPECIAL FUND TO BE KNOWN AS THE "2021 MUNICIPALITIES ROAD AND BRIDGE FUND"; TO PROVIDE THAT MONIES IN THE FUND SHALL BE UTILIZED BY THE MISSISSIPPI DEPARTMENT OF TRANSPORTATION TO PROVIDE GRANTS TO ASSIST MUNICIPALITIES IN PAYING COSTS ASSOCIATED WITH REPAIR, MAINTENANCE AND RECONSTRUCTION OF ROADS, STREETS AND BRIDGES IN MUNICIPALITIES; TO AMEND SECTION 27-55-11, MISSISSIPPI CODE OF 1972, TO TEMPORARILY INCREASE THE RATE OF THE GASOLINE EXCISE TAX; TO PROVIDE THAT BEGINNING ON JULY 1, 2031, AND EACH SUCCEEDING JULY 1 THEREAFTER, THE RATE OF THE GASOLINE EXCISE TAX SHALL BE INCREASED OR DECREASED BY A PERCENTAGE AMOUNT EQUAL TO THE LESSER OF ONE PERCENT OR THE UNITED STATES INFLATION RATE FOR THE PREVIOUS CALENDAR YEAR ENDING ON DECEMBER 31; TO AMEND SECTIONS 27-55-519 AND 27-55-521, MISSISSIPPI CODE OF 1972, TO TEMPORARILY INCREASE THE RATE OF THE SPECIAL FUEL EXCISE TAX ON DIESEL FUEL; TO PROVIDE THAT BEGINNING ON JULY 1, 2031, AND EACH SUCCEEDING JULY 1 THEREAFTER, THE RATE OF THE SUCH EXCISE TAXES SHALL BE INCREASED OR DECREASED BY A PERCENTAGE AMOUNT EQUAL TO THE LESSER OF ONE PERCENT OR THE UNITED STATES INFLATION RATE FOR THE PREVIOUS CALENDAR YEAR ENDING ON DECEMBER 31; TO PROVIDE THAT THE TEMPORARY EXCISE TAX INCREASES AUTHORIZED IN THIS ACT SHALL NOT BE LEVIED UNLESS A MAJORITY OF VOTERS VOTING AT A STATEWIDE SPECIAL ELECTION ON THE QUESTION OF THE TAX INCREASES VOTE IN FAVOR OF THE TAX INCREASES; TO PROVIDE FOR A STATEWIDE SPECIAL ELECTION ON THE QUESTION OF WHETHER THE TEMPORARY EXCISE TAX INCREASES AUTHORIZED BY THIS ACT SHALL BE LEVIED; TO AMEND SECTION 27-5-101, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE REVENUE DERIVED FROM THE TEMPORARY INCREASES OF THE GASOLINE EXCISE TAX AND SPECIAL FUEL EXCISE TAX ON DIESEL FUEL SHALL BE DEPOSITED INTO THE SPECIAL BOND SINKING FUND CREATED IN THIS ACT FOR THE PURPOSE OF PAYING THE DEBT SERVICE OF REVENUE BONDS ISSUED UNDER THIS ACT; TO BRING FORWARD SECTION 23-15-833, MISSISSIPPI CODE OF 1972, WHICH PROVIDES THE HOLDING OF SPECIAL ELECTIONS, FOR THE PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

SECTION 1. (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 the "2021 Mississippi Road and Bridge Improvements Fund" is created within the State Treasury, which fund shall consist of funds made available by the Legislature in any manner and funds from any other source designated for deposit into such fund. 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 for the following purposes:

1. Construction, reconstruction, repairs, upgrades and other improvements to Interstate 55 and U.S. Highway 51 in DeSoto County, Mississippi, beginning at or near the City of Hernando, Mississippi, and progressing north through the Mississippi Highway 302 Interchange;

2. Construction of various interchange and geometric improvements to Interstate 20 in Vicksburg, Mississippi;

3. Construction, reconstruction, repairs, upgrades and other improvements to Interstate 10 in Hancock County, Mississippi, extending from at or near the Louisiana state line to at or near the Diamondhead Interchange;

4. Construction, reconstruction, repairs, upgrades and other improvements to Interstate 10 in Hancock County, Mississippi, extending from at or near the Diamondhead Interchange to at or near the Wolf River;

5. Construction and development of Mississippi Highway 601 in Harrison County, Mississippi;

6. Construction of improvements to the Interstate 59/U.S. Highway 11 Interchange and the immediate adjacent network;

7. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 15 extending from at or near U.S. Highway 80 to at or near Muley Road;

8. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 15 extending from at or near Mississippi Highway 9 to at or near U.S. Highway 278;

9. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 15 extending from at or near the City of Pontotoc, Mississippi, to at or near King's Creek;

10. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 15 extending from at or near the Union County line to at or near the intersection with U.S. Highway 72 in the Town of Walnut, Mississippi;

11. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 16 as part of the Philadelphia Bypass project;

12. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 57 as part of the Vancleave Bypass project;

13. Construction, reconstruction, repairs, upgrades and other improvements to U.S. Highway 90 extending from at or near Mississippi Highway 609 to at or near Dolphin Drive;

14. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 19 extending from at or near Mississippi 492 to at or near Tucker, Mississippi(census-designated place);

15. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 16 extending from at or near the City of Canton, Mississippi, to at or near the City of Philadelphia, Mississippi;

16. Construction and development of the Reunion Parkway project from at or near Bozeman Road to at or near Parkway East in Madison County, Mississippi;

17. Construction, reconstruction, repairs, upgrades and other improvements to a portion of Mississippi Highway 7 extending south from at or near the boundary of the corporate limits of the City of Oxford, Mississippi, to the existing four-lane of such highway in the City of Water Valley, Mississippi;

18. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 4 extending westward from at or near Interstate 22, which shall include four-laning the portion of Mississippi Highway 4 extending from at or near Interstate 22 to at or near Interstate 55 and Mississippi Highway 740, and which shall include five-laning the portion of Mississippi Highway 4 extending westward from at or near Interstate 55 for approximately three (3) miles;

19. Construction of additional lanes for U.S. Highway 51 in Tate County, Mississippi, extending south from at or near West Main Street to at or near the Panola County, Mississippi, line, which shall include five-laning the portion of such highway north of Mississippi Highway 740;

20. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 12 extending east from at or near Interstate 55 through the City of Durant, Mississippi, to at or near the City of Kosciusko, Mississippi, which shall include four-laning such highway;

21. Construction, reconstruction, repairs, upgrades and other improvements to U.S. Highway 49 in Rankin County, Mississippi, and Simpson County, Mississippi;

22. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 24/48 extending from at or near McComb, Mississippi, to at or near Liberty, Mississippi, which may include four-laning such highway;

23. Construction, reconstruction, repairs, upgrades and other improvements to U.S. Highway 61 extending south from at or near the City of Leland, Mississippi, to the existing four-lane of such highway north of the City of Vicksburg, Mississippi, which may include the four-laning of such highway;

24. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 14 extending from at or near the City of Louisville, Mississippi, to at or near the City of Macon, Mississippi;

25. Construction, reconstruction, repairs, upgrades and other improvements to Mississippi Highway 27 extending from at or near Interstate 55 to at or near Interstate 20;

26. Completing a portion of U.S. Highway 61 in Claiborne County, Mississippi, as contemplated in the 1987 Four-Lane Highway Program, provided that there are no funds available from any other source for this project;

27. Not more than One Hundred Million Dollars ($100,000,000.00) shall be used to provide funds to assist counties in this state in paying costs associated with the repair, maintenance and/or reconstruction of roads, streets and bridges in counties, and such funds shall be distributed to the counties in the following proportions:

a. One-third (1/3) shall be allocated to all counties in equal shares,

b. One-third (1/3) shall be allocated to counties based on the proportion that the total number of rural road miles in a county bears to the total number of rural road miles in all counties of the state, and

c. One-third (1/3) shall be allocated to counties based on the proportion that the rural population of a county bears to the total rural population in all counties of the state, according to the latest federal decennial census.

For the purposes of this item 24, rural road miles and rural population in the counties shall be determined in the same manner as they are determined for the purposes of the distribution formula in Section 65-9-3, Mississippi Code of 1972.

(iii) Monies in the fund disbursed for projects described in subparagraph (ii) of this paragraph (a) also may be used to meet federal matching fund requirements for such projects.

The Mississippi Department of Transportation shall apply for and seek assistance from all available sources of federal funding for projects described in subparagraph (ii) of this paragraph (a), and if any federal funds become available for a project, the department must use the funds for the project.

(iv) The Mississippi Department of Transportation shall report annually to the Legislature regarding the status of the projects described in subparagraph (ii) of this paragraph (a), sources of funds available for the projects and sources of funds expended or to be expended for the projects, the amount of bonds that have been issued under this section for the projects and any projected need for the issuance of bonds for the projects, and estimated dates for completion of projects that have been commenced and estimated dates for commencement of projects that have not been commenced.

(b) Amounts deposited into such special fund shall be disbursed to pay the costs of the projects described in paragraph (a) of this subsection. Promptly after the commission has certified, by resolution duly adopted, that the projects described in paragraph (a) of this subsection 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.

(c) The Mississippi Transportation Commission is expressly authorized and empowered to receive and expend any local or other source funds in connection with the expenditure of funds provided for in this subsection. The expenditure of monies deposited into the special fund shall be under the direction of the Mississippi Transportation Commission, and such funds shall be paid by the State Treasurer upon warrants issued by the Department of Finance and Administration, which warrants shall be issued upon requisitions signed by the Executive Director of the Mississippi Department of Transportation, or his designee.

(3) For the purpose of providing for the payment of the principal of and interest upon bonds issued under this section, there is created a special bond sinking fund in the State Treasury. The special bond sinking fund shall consist of the monies deposited into the fund under Section 27-5-101(f), Mississippi Code of 1972, and such other amounts as may be paid into such fund by appropriation or other authorization by the Legislature. Except as otherwise provided in this section, monies in the special bond sinking fund shall be used to pay the debt service requirements of the bonds issued under this section. If the special bond sinking fund has a balance in excess of the amount needed to pay the debt obligations related to the bonds issued under this section, as determined in the resolution providing for the issuance of the bonds, the excess monies may be transferred into the special fund created in subsection (2) of this section. Unexpended amounts remaining in the special 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 special bond sinking fund shall be deposited into such sinking fund.

(4) (a) The commission, at one time, or from time to time, may declare by resolution the necessity for issuance of revenue 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, to provide funds for the 2021 Municipalities Road and Bridge Fund created in Section 2 of this act and to provide funds for the Emergency Road and Bridge Repair Fund created in Section 65-1-179, Mississippi Code of 1972. Upon the adoption of a resolution by the Mississippi Transportation Commission, declaring the necessity for the issuance of any part or all of the revenue bonds authorized by this subsection, the Mississippi Transportation Commission 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, 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 Two Billion Five Hundred Million Dollars ($2,500,000,000.00). Of the bonds authorized under this section, not more than Two Billion Three Hundred Million Dollars ($2,300,000,000.00) of such bonds may be issued to provide funds for all costs incurred or to be incurred for the purposes described in subsection (2) of this section, not more than One Hundred Million Dollars ($100,000,000.00) of such bonds may be issued to provide funds for the 2021 Municipalities Road and Bridge Fund created in Section 2 of this act, and not more than One Hundred Million Dollars ($100,000,000.00) of such bonds may be issued to provide funds for the Emergency Road and Bridge Repair Fund created in Section 65-1-179, Mississippi Code of 1972. No bonds shall be issued under this section after July 1, 2026.

(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 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.

(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 shall be revenue bonds of the state, the principal of and interest on which shall be payable solely from and shall be secured by the special bond sinking fund created in subsection (3) of this section. The bonds shall never constitute an indebtedness of the state within the meaning of any state constitutional provision or statutory limitation, and shall never constitute or give rise to a pecuniary liability of the state, or a charge against its general credit or taxing powers, and such fact shall be plainly stated on the face of each such bond. The bonds shall not be considered when computing any limitation of indebtedness of the state. All bonds issued under the authority of this section and all interest coupons applicable thereto shall be construed to be negotiable instruments, despite the fact that they are payable solely from a specified source.

(10) Upon the issuance and sale of bonds under the provisions of this section, the commission shall transfer not more than One Hundred Million Dollars ($100,000,000.00) of the proceeds of any such sale or sales to the 2021 Municipalities Road and Bridge Fund created in Section 2 of this act, shall transfer not more than One Hundred Million Dollars ($100,000,000.00) of the proceeds of any such sale or sales to the Emergency Road and Bridge Repair Fund created in Section 65-1-179, Mississippi Code of 1972, and shall transfer the remainder of 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 Mississippi Transportation Commission 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 2. (1) There is created in the State Treasury a special fund to be known as the "2021 Municipalities Road and Bridge Fund," into which shall be deposited funds appropriated by the Legislature or otherwise made available in any manner, and funds from any other source designated for deposit into such fund. 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 the fund. The expenditure of monies deposited into the fund shall be under the direction of the Mississippi Department of Transportation, and such funds shall be paid by the Mississippi Department of Transportation upon warrants issued by the Department of Finance and Administration.

(2) Monies in the fund shall be utilized by the Mississippi Department of Transportation, with the advice of the Emergency Road and Bridge Repair Fund Advisory Board created in Section 65-1-179, Mississippi Code of 1972, to provide grants to assist municipalities in this state in paying costs associated with repair, maintenance and/or reconstruction of roads, streets and bridges in municipalities. The Emergency Road and Bridge Repair Fund Advisory Board shall provide nonbinding advice to the Department of Transportation regarding the expenditure of monies in the special fund. A municipality desiring a grant under this section must submit an application to the Mississippi Department of Transportation. The application must include a description of the project or projects for which a grant is requested, the cost of the project or projects for which a grant is requested, the amount of grant funds requested and any other information required by the Mississippi Department of Transportation.

(3) The Mississippi Department of Transportation shall have all powers necessary to implement and administer the program established under this section, and the department shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.

SECTION 3. Section 27-55-11, Mississippi Code of 1972, is amended as follows:

27-55-11. (1) (a) (i) Any person in business as a distributor of gasoline or who acts as a distributor of gasoline, as defined in this article, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax equal to Eighteen Cents (18¢) per gallon until the date specified in Section 65-39-35, and Fourteen and Four-tenths Cents (14.4¢) per gallon thereafter, on all gasoline and blend stock stored, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, use on the highways, storage, distribution, or for any purpose. Beginning on July 1, 2031, and each succeeding July 1 thereafter, the rate of the excise tax levied under this subparagraph (i) shall be increased or decreased by a percentage amount equal to the lesser of one percent (1%) or the United States inflation rate for the previous calendar year ending on December 31 as certified by the Commissioner of Revenue. The United States inflation rate for a calendar year shall be the Consumer Price Index for the calendar year for urban consumers as calculated by the Bureau of Labor Statistics of the United States Department of Labor.

(ii) Subject to the provisions of this subparagraph (ii), in addition to the tax levied under subparagraph (i) of this paragraph (a), any person in business as a distributor of gasoline or who acts as a distributor of gasoline, as defined in this article, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax equal to Five Cents (5¢) per gallon through June 30, 2022, and equal to Ten Cents (10¢) per gallon from and after July 1, 2022, until the date specified in this subparagraph (ii) on all gasoline and blend stock stored, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, use on the highways, storage, distribution, or for any purpose. However, the tax authorized under this subparagraph (ii) shall not be levied unless the Secretary of State certifies that at the statewide special election held under Section 7 of this act a majority of the qualified electors voting in the election voted "Yes" on the question put before the voters at the election. If the Secretary of State makes such certification, the tax shall be levied from and after thirty (30) days following the date of the certification, and the tax shall end on the first day of the month immediately following the date upon which the State Treasurer certifies that the amount on deposit in the bond sinking fund created in Section 1(3) of this act, together with earnings on investments to accrue to such fund, is equal to or greater than the aggregate of the entire principal, redemption premium (if any), and interest due and to become due (until the final maturity date or earlier scheduled redemption date) on all revenue bonds issued under Section 1 of this act.

(b) Any person in business as a distributor of aviation gasoline, or who acts as a distributor of aviation gasoline, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax equal to Six and Four-tenths Cents (6.4¢) per gallon on all aviation gasoline stored, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, storage, distribution or for any purpose.

(2) (a) The tax herein imposed and assessed shall be collected and paid to the State of Mississippi but once in respect to any gasoline. The basis for determining the tax liability shall be the correct invoiced gallons, adjusted to sixty (60) degrees Fahrenheit at the refinery or point of origin of shipment when such shipment is made by tank car or by motor carrier. The point of origin of shipment of gasoline transported into this state by pipelines shall be deemed to be that point in this state where such gasoline is withdrawn from the pipeline for storage or distribution, and adjustment to sixty (60) degrees Fahrenheit shall there be made. The basis for determining the tax liability on gasoline shipped into this state in barge cargoes and by pipeline shall be the actual number of gallons adjusted to sixty (60) degrees Fahrenheit unloaded into storage tanks or other containers in this state, such gallonage to be determined by measurement and/or gauge of storage tank or tanks or by any other method authorized by the * * *~~commission~~ department. The tank or tanks into which barge cargoes of gasoline are discharged, or into which gasoline transported by pipeline is discharged, shall have correct gauge tables listing capacity, such gauge tables to be prepared by some recognized calibrating agency and to be approved by the * * *~~commission~~ department.

(b) The tax levied herein shall accrue at the time gasoline is withdrawn from a refinery in this state except when withdrawal is by pipeline, barge, ship or vessel. The refiner shall pay to the * * *~~commission~~ department the tax levied herein when gasoline is sold or delivered to persons who do not hold gasoline distributor permits. The refiner shall report to the * * *~~commission~~ department all sales and deliveries of gasoline to bonded distributors of gasoline. The bonded distributor of gasoline who purchases, receives or acquires gasoline from a refinery in this state shall report such gasoline and pay the tax levied herein.

(c) Gasoline imported by common carrier shall be deemed to be received by the distributor of gasoline, and the tax levied herein shall accrue, when the car or tank truck containing such gasoline is unloaded by the carrier.

(d) With respect to distributors or other persons who bring, ship, have transported, or have brought into this state gasoline by means other than through a common carrier, the tax accrues and the tax liability attaches on the distributor or other person for each gallon of gasoline brought into the state at the time when and at the point where such gasoline is brought into the state.

(e) The tax levied herein shall accrue on blend stock at the time it is blended with gasoline. The blender shall pay to the commission the tax levied herein when blend stock is sold or delivered to persons who do not hold gasoline distributor permits. The blender shall report to the * * *~~commission~~ department all sales and deliveries of blend stock to bonded distributors of gasoline. The bonded distributor of gasoline who purchases, receives or acquires blend stock from a blender in this state shall report blend stock and pay the tax levied herein.

SECTION 4. Section 27-55-519, Mississippi Code of 1972, is amended as follows:

27-55-519. (1) Any person engaged in business as a distributor of special fuel or who acts as a distributor of special fuel, as defined in this article, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax on all special fuel stored, used, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, storage, distribution or for any purpose, adjusted to sixty (60) degrees Fahrenheit.

The excise tax shall become due and payable when:

(a) Special fuel is withdrawn from storage at a refinery, marine or pipeline terminal, except when withdrawal is by barge or pipeline.

(b) Special fuel imported by a common carrier is unloaded by that carrier unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.

(c) Special fuel imported by any person other than a common carrier enters the State of Mississippi unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.

(d) Special fuel is blended in this state unless such blending occurs in a refinery, marine or pipeline terminal.

(e) Special fuel is acquired tax free.

(2) The special fuel excise tax shall be as follows:

(a) (i) Eighteen Cents (18¢) per gallon on undyed diesel fuel until the date specified in Section 65-39-35 and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter; and

(ii) Subject to the provisions of this subparagraph (ii), in addition to the tax imposed under subparagraph (i) of this paragraph (a), there shall be an excise tax equal to Seven Cents (7¢) per gallon on undyed diesel fuel through June 30, 2022, and equal to Fourteen Cents (14¢) per gallon on undyed diesel fuel from and after July 1, 2022, until the date specified in this subparagraph (ii). However, the tax authorized under this subparagraph (ii) shall not be levied unless the Secretary of State certifies that at the statewide special election held under Section 7 of this act a majority of the qualified electors voting in the election voted "Yes" on the question put before the voters at the election. If the Secretary of State makes such certification, the tax shall be levied from and after thirty (30) days following the date of the certification, and the tax shall end on the first day of the month immediately following the date upon which the State Treasurer certifies that the amount on deposit in the bond sinking fund created in Section 1(3) of this act, together with earnings on investments to accrue to such fund, is equal to or greater than the aggregate of the entire principal, redemption premium (if any), and interest due and to become due (until the final maturity date or earlier scheduled redemption date) on all revenue bonds issued under Section 1 of this act;

(b) Five and Three-fourths Cents (5.75¢) per gallon on all special fuel except undyed diesel fuel and special fuel used as fuels in aircraft; and

Beginning on July 1, 2031, and each succeeding July 1 thereafter, the rate of the excise tax levied under paragraph (a)(i) of this subsection (2) shall be increased or decreased by a percentage amount equal to the lesser of one percent (1%) or the United States inflation rate for the previous calendar year ending on December 31 as certified by the Commissioner of Revenue. The United States inflation rate for a calendar year shall be the Consumer Price Index for the calendar year for urban consumers as calculated by the Bureau of Labor Statistics of the United States Department of Labor.

SECTION 5. Section 27-55-521, Mississippi Code of 1972, is amended as follows:

27-55-521. (1) An excise tax at the rate of Eighteen Cents (18¢) per gallon until the date specified in Section 65-39-35, Mississippi Code of 1972, and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter is levied on any person engaged in business as a distributor of special fuel or who acts as such who sells:

(a) Special fuel for use in performing contracts for construction, reconstruction, maintenance or repairs, where such contracts are entered into with the State of Mississippi, any political subdivision of the State of Mississippi, or any department, agency, institution of the State of Mississippi or any political subdivision thereof.

(b) Dyed diesel fuel or kerosene to a state or local governmental entity for use on the highways in a motor vehicle.

Beginning on July 1, 2031, and each succeeding July 1 thereafter, the rate of the excise tax levied on diesel fuel under this subsection (1) shall be increased or decreased by a percentage amount equal to the lesser of one percent (1%) or the United States inflation rate for the previous calendar year ending on December 31 as certified by the Commissioner of Revenue. The United States inflation rate for a calendar year shall be the Consumer Price Index for the calendar year for urban consumers as calculated by the Bureau of Labor Statistics of the United States Department of Labor.

(2) An excise tax at the rate of Eighteen Cents (18¢) per gallon until the date specified in Section 65-39-35, Mississippi Code of 1972, and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter is levied on any person who:

(a) Uses dyed diesel fuel or kerosene in a motor vehicle on the highways of this state in violation of Section 27-55-539.

(b) Purchases or acquires undyed diesel fuel or kerosene for nonhighway use and subsequently uses such diesel fuel or kerosene in a motor vehicle on the highways of this state.

Beginning on July 1, 2031, and each succeeding July 1 thereafter, the rate of the excise tax levied on diesel fuel under this subsection (2) shall be increased or decreased by a percentage amount equal to the lesser of one percent (1%) or the United States inflation rate for the previous calendar year ending on December 31 as certified by the Commissioner of Revenue. The United States inflation rate for a calendar year shall be the Consumer Price Index for the calendar year for urban consumers as calculated by the Bureau of Labor Statistics of the United States Department of Labor.

(3) (a) Subject to the provisions of this paragraph (a), in addition to the tax levied under subsection (1) of this section, an excise tax at the rate of Seven Cents (7¢) per gallon through June 30, 2022, and at the rate of Fourteen Cents (14¢) per gallon from and after July 1, 2022, is levied until the date specified in this paragraph (a) on any person engaged in business as a distributor of special fuel or who acts as such who sells:

(i) Diesel fuel for use in performing contracts for construction, reconstruction, maintenance or repairs, where such contracts are entered into with the State of Mississippi, any political subdivision of the State of Mississippi, or any department, agency, institution of the State of Mississippi or any political subdivision thereof.

(ii) Dyed diesel fuel to a state or local governmental entity for use on the highways in a motor vehicle.

(iii) Diesel fuel, for use on the highway.

However, the tax authorized under this paragraph (a) shall not be levied unless the Secretary of State certifies that at the statewide special election held under Section 7 of this act a majority of the qualified electors voting in the election voted "Yes" on the question put before the voters at the election. If the Secretary of State makes such certification, the tax shall be levied from and after thirty (30) days following the date of the certification, and the tax shall end on the first day of the month immediately following the date upon which the State Treasurer certifies that the amount on deposit in the bond sinking fund created in Section 1(3) of this act, together with earnings on investments to accrue to such fund, is equal to or greater than the aggregate of the entire principal, redemption premium (if any), and interest due and to become due (until the final maturity date or earlier scheduled redemption date) on all revenue bonds issued under Section 1 of this act.

(b) Subject to the provisions of this paragraph (b), in addition to the tax levied under subsection (2) of this section, an excise tax at the rate of Seven Cents (7¢) per gallon through June 30, 2022, and at the rate of Fourteen Cents (14¢) per gallon from and after July 1, 2022, is levied until the date specified in this paragraph (b) on any person who:

(i) Uses dyed diesel fuel in a motor vehicle on the highways of this state in violation of Section 27-55-539.

(ii) Purchases or acquires undyed diesel fuel for nonhighway use and subsequently uses such diesel fuel in a motor vehicle on the highways of this state.

(iii) Purchases or acquires diesel fuel, for use in performing contracts as specified in this section.

However, the tax authorized under this paragraph (b) shall not be levied unless the Secretary of State certifies that at the statewide special election held under Section 7 of this act a majority of the qualified electors voting in the election voted "Yes" on the question put before the voters at the election. If the Secretary of State makes such certification, the tax shall be levied from and after thirty (30) days following the date of the certification, and the tax shall end on the first day of the month immediately following the date upon which the State Treasurer certifies that the amount on deposit in the bond sinking fund created in Section 1(3) of this act, together with earnings on investments to accrue to such fund, is equal to or greater than the aggregate of the entire principal, redemption premium (if any), and interest due and to become due (until the final maturity date or earlier scheduled redemption date) on all revenue bonds issued under Section 1 of this act.

SECTION 6. Section 27-5-101, Mississippi Code of 1972, is amended as follows:

[With regard to any county which is exempt from the provisions of Section 19-2-3, this section shall read as follows:]

27-5-101. Unless otherwise provided in this section, on or before the fifteenth day of each month, all gasoline, diesel fuel or kerosene taxes which are levied under the laws of this state and collected during the previous month shall be paid and apportioned by the * * *~~State Tax Commission~~ Department of Revenue as follows:

(a) (i) Except as otherwise provided in Section 31-17-127, from the gross amount of gasoline, diesel fuel or kerosene taxes produced by the state, there shall be deducted an amount equal to one-sixth (1/6) of principal and interest certified by the State Treasurer to the * * *~~State Tax Commission~~ Department of Revenue to be due on the next semiannual bond and interest payment date, as required under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue on a parity with the bonds issued under authority of said Chapter 130. The State Treasurer shall certify to the * * *~~State Tax Commission~~ Department of Revenue on or before the fifteenth day of each month the amount to be paid to the "Highway Bonds Sinking Fund" as provided by said Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, on a parity with the bonds issued under authority of said Chapter 130; and the * * *~~State Tax Commission~~ Department of Revenue shall, on or before the twenty-fifth day of each month, pay into the State Treasury for credit to the "Highway Bonds Sinking Fund" the amount so certified to him by the State Treasurer due to be paid into such fund each month. The payments to the "Highway Bonds Sinking Fund" shall be made out of gross gasoline, diesel fuel or kerosene tax collections before deductions of any nature are considered; however, such payments shall be deducted from the allocation to the Mississippi Department of Transportation under paragraph (c) of this section.

(ii) From collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5 there shall be deducted:

1. An amount as provided in Section 27-65-75(4) to the credit of a special fund designated as the "Office of State Aid Road Construction."

2. An amount equal to the tax collections derived from Two Cents (2¢) per gallon of the gasoline excise tax for distribution to the State Highway Fund to be used exclusively for the construction, reconstruction and maintenance of highways of the State of Mississippi or the payment of interest and principal on bonds when specifically authorized by the Legislature for that purpose.

3. The balance shall be deposited in the State Treasury to the credit of the State Highway Fund.

(b) Subject to the provisions that said basis of distribution shall in nowise affect adversely the amount specifically pledged in paragraph (a) of this section to be paid into the "Highway Bonds Sinking Fund," the following shall be deducted from the amount produced by the state tax on gasoline, diesel fuel or kerosene tax collections, excluding collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5:

(i) Twenty percent (20%) of such amount which shall be earmarked and set aside for the construction, reconstruction and maintenance of the highways and roads of the state, provided that if such twenty percent (20%) should reduce any county to a lesser amount than that received in the fiscal year ending June 30, 1966, then such twenty percent (20%) shall be reduced to a percentage to provide that no county shall receive less than its portion for the fiscal year ending June 30, 1966;

(ii) The amount allowed as refund on gasoline or as tax credit on diesel fuel or kerosene used for agricultural, maritime, industrial, domestic, and nonhighway purposes;

(iii) Five percent (5%) of such amount shall be paid to the State Highway Fund;

(iv) The amount or portion thereof authorized by legislative appropriation to the Fisheries and Wildlife Fund created under Section 59-21-25;

(v) The amount for deposit into the special aviation fund under paragraph (d) of this section; and

(vi) The remainder shall be divided on a basis of nine-fourteenths (9/14) and five-fourteenths (5/14) (being the same basis as Four and One-half Cents (4-1/2¢) and Two and One-half Cents (2-1/2¢) is to Seven Cents (7¢) on gasoline, and six and forty-three one-hundredths (6.43) and three and fifty-seven one-hundredths (3.57) is to Ten Cents (10¢) on diesel fuel or kerosene). The amount produced by the nine-fourteenths (9/14) division shall be allocated to the * * * ~~Transportation~~ Department of Transportation and paid into the State Treasury as provided in this section and in Section 27-5-103 and the five-fourteenths (5/14) division shall be returned to the counties of the state on the following basis:

1. In each fiscal year, each county shall be paid each month the same percentage of the monthly total to be distributed as was paid to that county during the same month in the fiscal year which ended April 9, 1960, until the county receives One Hundred Ninety Thousand Dollars ($190,000.00) in such fiscal year, at which time funds shall be distributed under the provisions of paragraph (b)(vi)4 of this section.

2. If after payments in 1 above, any county has not received a total of One Hundred Ninety Thousand Dollars ($190,000.00) at the end of the fiscal year ending June 30, 1961, and each fiscal year thereafter, then any available funds not distributed under 1 above shall be used to bring such county or counties up to One Hundred Ninety Thousand Dollars ($190,000.00) or such funds shall be divided equally among such counties not reaching One Hundred Ninety Thousand Dollars ($190,000.00) if there is not sufficient money to bring all the counties to said One Hundred Ninety Thousand Dollars ($190,000.00).

3. When a county has been paid an amount equal to the total which was paid to the same county during the fiscal year ended April 9, 1960, such county shall receive no further payments during the then current fiscal year until the last month of such current fiscal year, at which time distribution will be made under 2 above, except as set out in 4 below.

4. During the last month of the current fiscal year, should it be determined that there are funds available in excess of the amount distributed for the year under 1 and 2 above, then such excess funds shall be distributed among the various counties as follows:

One-third (1/3) of such excess to be divided equally among the counties;

One-third (1/3) of such excess to be paid to the counties in the proportion which the population of each county bears to the total population of the state according to the last federal census;

One-third (1/3) of such excess to be paid to the counties in the proportion which the number of square miles of each county bears to the total square miles in the state.

5. It is the declared purpose and intent of the Legislature that no county shall be paid less than was paid during the year ended April 9, 1960, unless the amount to be distributed to all counties in any year is less than the amount distributed to all counties during the year ended April 9, 1960.

The Municipal Aid Fund as established by Section 27-5-103 shall not participate in any portion of any funds allocated to any county hereunder over and above One Hundred Ninety Thousand Dollars ($190,000.00).

In any county having countywide road or bridge bonds, or supervisors district or district road or bridge bonds outstanding, which exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county or district, it shall be the duty of the board of supervisors to set aside not less than sixty percent (60%) of such county's share or district's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than thirty-five percent (35%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road or bridge bonds as they mature.

In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than twenty percent (20%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road and bridge bonds as they mature.

In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which do not exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than ten percent (10%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

The portion of any such county's share of the gasoline, diesel fuel or kerosene taxes thus set aside for the payment of the principal and interest of road or bridge bonds, as provided for in this section, shall be used first in paying the currently maturing installments of the principal and interest of such countywide road or bridge bonds, if there be any such countywide road or bridge bonds outstanding, and secondly, in paying the currently maturing installments of principal and interest of district road or bridge bonds outstanding. It shall be the duty of the board of supervisors to pay bonds and interest maturing in each supervisors district out of the supervisors district's share of the gasoline, diesel fuel or kerosene taxes of such district.

The remaining portion of such county's share of the gasoline, diesel fuel or kerosene taxes, after setting aside the portion above provided for the payment of the principal and interest of bonds, shall be used in the construction and maintenance of any public highways, bridges, or culverts of the county, including the roads in special or separate road districts, in the discretion of the board of supervisors, or in paying the interest and principal of county road and bridge bonds or district road and bridge bonds, in the discretion of the board of supervisors.

In any county having no countywide road or bridge bonds or district road or bridge bonds outstanding, all such county's share of the gasoline, diesel fuel or kerosene taxes shall be used in the construction, reconstruction, and maintenance of the public highways, bridges, or culverts of the county as the board of supervisors may determine.

In every county in which there are county road bonds or seawall or road protection bonds outstanding which were issued for the purpose of building bridges or constructing public roads or seawalls, such funds shall be used in the manner provided by law.

(c) From the amount produced by the nine-fourteenths (9/14) division allocated to the * * * ~~Transportation~~ Department of Transportation, there shall be deducted:

(i) The amount paid to the State Treasurer for the "Highway Bonds Sinking Fund" under paragraph (a) of this section;

(ii) Any amounts due counties in accordance with Section 65-33-45 which have outstanding bonds issued for seawall or road protection purposes, issued under provisions of Chapter 319, Laws of 1924, and amendments thereto;

(iii) Except as otherwise provided in Section 31-17-127, the remainder shall be paid by the * * *~~State Tax Commission~~ Department of Revenue to the State Treasurer on the fifteenth day of each month next succeeding the month in which the gasoline, diesel fuel or kerosene taxes were collected to the credit of the State Highway Fund.

The funds allocated for the construction, reconstruction, and improvement of state highways, bridges, and culverts, or so much thereof as may be necessary, shall first be used in conjunction with funds supplied by the federal government for such purposes and allocated to the * * * ~~State Transportation~~ Department of Transportation to be expended on the state highway system. It is specifically provided hereby that the necessary portion of such funds hereinabove allocated to the * * * ~~State Transportation~~ Department of Transportation may be used for the prompt payment of principal and interest on highway bonds heretofore issued, including such bonds issued or to be issued under the provisions of Chapter 312, Laws of 1956, and amendments thereto.

Nothing contained in this section shall be construed to reduce the amount of such gasoline, diesel fuel or kerosene excise taxes levied by the state, allotted under the provisions of Title 65, Chapter 33, Mississippi Code of 1972, to counties in which there are outstanding bonds issued for seawall or road protection purposes issued under the provisions of Chapter 319, Laws of 1924, and amendments thereto; the amount of said gasoline, diesel fuel or kerosene excise taxes designated in this section for the payment of bonds and interest authorized and issued or to be issued under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, shall, in such counties, be considered as being paid "into the State Treasury to the credit of the State Highway Fund" within the meaning of Section 65-33-45 in computing the amount to be paid to such counties under the provisions of said section, and this section shall be administered in connection with Title 65, Chapter 33, Mississippi Code of 1972, and Sections 65-33-45, 65-33-47 and 65-33-49 dealing with seawalls, as if made a part of this section.

(d) The proceeds of the Five and One-fourth Cents (5.25¢) of the tax per gallon on oils used as a propellant for jet aircraft engines, and Six and Four-tenths Cents (6.4¢) of the tax per gallon on aviation gasoline and the tax of One Cent (1¢) per gallon for each gallon of gasoline for which a refund has been made pursuant to Section 27-55-23 because such gasoline was used for aviation purposes, shall be paid to the State Treasury into a special fund to be used exclusively, pursuant to legislative appropriation, for the support and development of aeronautics as defined in Section 61-1-3.

(e) State highway funds in an amount equal to the difference between Forty-two Million Dollars ($42,000,000.00) and the annual debt service payable on the state's highway revenue refunding bonds, Series 1985, shall be expended for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97.

(f) The proceeds of the excise taxes levied on gasoline in Section 27-55-11(1)(a)(ii), on undyed diesel fuel in Section 27-55-519(2)(a)(ii) and on diesel fuel in Section 27-55-521(3) shall be deposited into the bond sinking fund created in Section 1(3) of this act.

( * * *fg) "Gasoline, diesel fuel or kerosene taxes" as used in this section shall be deemed to mean and include state gasoline, diesel fuel or kerosene taxes levied and imposed on distributors of gasoline, diesel fuel or kerosene, and all state excise taxes derived from any fuel used to propel vehicles upon the highways of this state, when levied by any statute.

[With regard to any county which is required to operate on a countywide system of road administration as described in Section 19-2-3, this section shall read as follows:]

(a) (i) Except as otherwise provided in Section 31-17-127, from the gross amount of gasoline, diesel fuel or kerosene taxes produced by the state, there shall be deducted an amount equal to one-sixth (1/6) of principal and interest certified by the State Treasurer to the * * *~~State Tax Commission~~ Department of Revenue to be due on the next semiannual bond and interest payment date, as required under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue on a parity with the bonds issued under authority of said Chapter 130. The State Treasurer shall certify to the * * *~~State Tax Commission~~ Department of Revenue on or before the fifteenth day of each month the amount to be paid to the "Highway Bonds Sinking Fund" as provided by said Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, on a parity with the bonds issued under authority of said Chapter 130; and the * * *~~State Tax Commission~~ Department of Revenue shall, on or before the twenty-fifth day of each month, pay into the State Treasury for credit to the "Highway Bonds Sinking Fund" the amount so certified to him by the State Treasurer due to be paid into such fund each month. The payments to the "Highway Bonds Sinking Fund" shall be made out of gross gasoline, diesel fuel or kerosene tax collections before deductions of any nature are considered; however, such payments shall be deducted from the allocation to the * * * ~~Transportation~~ Department of Transportation under paragraph (c) of this section.

1. An amount as provided in Section 27-65-75(4) to the credit of a special fund designated as the "Office of State Aid Road Construction."

3. The balance shall be deposited in the State Treasury to the credit of the State Highway Fund.

(b) Subject to the provisions that said basis of distribution shall in nowise affect adversely the amount specifically pledged in paragraph (a) of this section to be paid into the "Highway Bonds Sinking Fund," the following shall be deducted from the amount produced by the state tax on gasoline, diesel fuel or kerosene tax collections, excluding collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon, that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5:

(ii) The amount allowed as refund on gasoline or as tax credit on diesel fuel or kerosene used for agricultural, maritime, industrial, domestic and nonhighway purposes;

(iii) Five percent (5%) of such amount shall be paid to the State Highway Fund;

(iv) The amount or portion thereof authorized by legislative appropriation to the Fisheries and Wildlife Fund created under Section 59-21-25;

(v) The amount for deposit into the special aviation fund under paragraph (d) of this section; and

One-third (1/3) of such excess to be divided equally among the counties;

One-third (1/3) of such excess to be paid to the counties in the proportion which the population of each county bears to the total population of the state according to the last federal census;

One-third (1/3) of such excess to be paid to the counties in the proportion which the number of square miles of each county bears to the total square miles in the state.

In any county having road or bridge bonds outstanding which exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than sixty percent (60%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

In any county having such road or bridge bonds outstanding which exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than thirty-five percent (35%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road or bridge bonds as they mature.

In any county having such road or bridge bonds outstanding which exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than twenty percent (20%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road and bridge bonds as they mature.

In any county having such road or bridge bonds outstanding which do not exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than ten percent (10%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

In any county having no road or bridge bonds outstanding, all such county's share of the gasoline, diesel fuel or kerosene taxes shall be used in the construction, reconstruction and maintenance of the public highways, bridges or culverts of the county, as the board of supervisors may determine.

(c) From the amount produced by the nine-fourteenths (9/14) division allocated to the * * * ~~Transportation~~ Department of Transportation, there shall be deducted:

(i) The amount paid to the State Treasurer for the "Highway Bonds Sinking Fund" under paragraph (a) of this section;

The funds allocated for the construction, reconstruction and improvement of state highways, bridges and culverts, or so much thereof as may be necessary, shall first be used in conjunction with funds supplied by the federal government for such purposes and allocated to the * * * ~~Transportation~~ Department of Transportation to be expended on the state highway system. It is specifically provided hereby that the necessary portion of such funds hereinabove allocated to the * * * ~~Transportation~~ Department of Transportation may be used for the prompt payment of principal and interest on highway bonds heretofore issued, including such bonds issued or to be issued under the provisions of Chapter 312, Laws of 1956, and amendments thereto.

SECTION 7. (1) (a) There shall be a statewide special election held on Tuesday, June 8, 2021, for the purpose of determining whether or not the following will be implemented as provided in this act by amendments to Sections 27-55-11, 27-55-519 and 27-55-521, Mississippi Code of 1972,: Temporary increases to the rates of the excise taxes on gasoline and diesel fuel provided in Sections 27-55-11, 27-55-519 and 27-55-521, Mississippi Code of 1972, with the revenue derived from such increased tax rates to be deposited into a bond sinking fund to be used for the purpose of retiring revenue bonds issued by the State of Mississippi for the purpose of providing funds for various road and bridge improvements projects in this state.

(b) The special election shall be conducted in the same manner as regular general elections are held. The question put before the voters at the statewide special election shall read on the ballots as follows:

"PLEASE VOTE 'YES' OR 'NO'

The following shall be implemented as provided by amendments to Sections 27-55-11, 27-55-519 and 27-55-521, Mississippi Code of 1972, as provided in House Bill No. , 2021 Regular Session:

Temporary increases to the rates of the gasoline and diesel fuel excise taxes provided in Sections 27-55-11, 27-55-519 and 27-55-521, Mississippi Code of 1972, for the purpose of providing funds for various road and bridge improvements projects throughout the State of Mississippi in order to enhance road and bridge safety and to provide for more efficient travel on and use of roads and bridges.

'YES': ________ 'NO': ________"

(c) If a majority of the qualified electors voting in the election vote "Yes" on the question, then the following shall be implemented as provided in this act by amendments to Sections 27-55-11, 27-55-519 and 27-55-521, Mississippi Code of 1972:

Temporary increases to the rates of the excise taxes on gasoline and diesel provided in Sections 27-55-11, 27-55-519 and 27-55-521, Mississippi Code of 1972, with the revenue derived from such increased excise tax rates to be deposited into a bond sinking fund to be used for the purpose of retiring revenue bonds issued by the State of Mississippi for the purpose of providing funds for various road and bridge improvements projects in this state.

(2) The county election commissioners shall transmit to the Secretary of State, in the same manner as the vote for state officers is transmitted, a statement of the total number of votes cast for each choice on the question in the statewide special election. The Secretary of State shall tabulate the returns and certify the results to the Governor and to each house of the Legislature.

SECTION 8. Section 23-15-833, Mississippi Code of 1972, is brought forward as follows:

23-15-833. Except as otherwise provided by law, the first Tuesday after the first Monday in November of each year shall be designated the regular special election day, and on that day an election shall be held to fill any vacancy in county, county district, and district attorney elective offices, and any vacancy in the office of circuit judge or chancellor.

All special elections, or elections to fill vacancies, shall in all respects be held, conducted and returned in the same manner as general elections, except that where no candidate receives a majority of the votes cast in the election, a runoff election shall be held three (3) weeks after the election. The two (2) candidates who receive the highest popular votes for the office shall have their names submitted as the candidates to the runoff and the candidate who leads in the runoff election shall be elected to the office. When there is a tie in the first election of those receiving the next highest vote, these two (2) and the one receiving the highest vote, none having received a majority, shall go into the runoff election and whoever leads in the runoff election shall be entitled to the office.

In those years when the regular special election day shall occur on the same day as the general election, the names of candidates in any special election and the general election shall be placed on the same ballot, but shall be clearly distinguished as general election candidates or special election candidates. At any time a special election is held on the same day as a party primary election, the names of the candidates in the special election may be placed on the same ballot, but shall be clearly distinguished as special election candidates or primary election candidates.

SECTION 9. This act shall take effect and be in force from and after its passage.