Senate Bill 2702

AN ACT TO AMEND SECTION 69-2-19, MISSISSIPPI CODE OF 1972, TO EXTEND THE AUTHORITY FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE EMERGING CROPS FUND UNDER THE MISSISSIPPI FARM REFORM ACT; TO BRING FORWARD SECTIONS 69-2-21, 69-2-23, 69-2-25, 69-2-27, 69-2-29, 69-2-30, 69-2-31, 69-2-33, 69-2-35, 69-2-37 AND 69-2-39, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 69-2-19, Mississippi Code of 1972, is amended as follows:

69-2-19. (1) The Mississippi Development Authority is authorized, at one time, or from time to time, to declare by resolution the necessity for issuance of negotiable general obligation bonds of the State of Mississippi to provide funds for the Emerging Crops Fund established in Section 69-2-13. Upon the adoption of a resolution by the board, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by Sections 69-2-19 through 69-2-39, the authority shall deliver a certified copy of its resolution or resolutions to the State Bond Commission. Upon receipt of same, the State Bond Commission, in its discretion, shall act as the issuing agent, prescribe the form of the bonds, advertise for and accept bids, 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 amount of bonds issued under Sections 69-2-19 through 69-2-39 shall not exceed One Hundred Fourteen Million Dollars ($114,000,000.00) in the aggregate; however:

(a) An additional amount of bonds may be issued under Sections 69-2-19 through 69-2-39 in an amount not to exceed Two Million Dollars ($2,000,000.00), and the proceeds of any such additional bonds shall be used solely for the purposes described in Section 69-2-13(14); and

(b) An additional amount of bonds may be issued under Sections 69-2-19 through 69-2-39 in an amount not to exceed Seventeen Million Dollars ($17,000,000.00), and the proceeds of such additional bonds shall be used solely for the purposes described in Section 69-2-13(16).

(2) No bonds may be issued under Sections 69-2-19 through 69-2-39 after October 1, * * * ~~2023~~ 2027.

SECTION 2. Section 69-2-21, Mississippi Code of 1972, is brought forward as follows:

69-2-21. For the payment of such bonds and the interest thereon, the full faith, credit, and taxing power of the State of Mississippi are hereby irrevocably pledged. If the Legislature finds that there are sufficient funds available in the General Fund of the State Treasury to pay maturing principal and accruing interest of the bonds, and if the Legislature appropriates such available funds for the purpose of paying such maturing principal and accruing interest, then the maturing principal and accruing interest of the bonds shall be paid from appropriations made by the Legislature from the General Fund of the State Treasury. However, if there are not sufficient funds available in the General Fund of the State Treasury to pay the maturing principal and accruing interest of the bonds, or if such funds are available but the Legislature fails to appropriate a sufficient amount thereof to pay such maturing principal and accruing interest as the same becomes due, then there shall be levied annually upon all taxable property in the State of Mississippi an ad valorem tax at the rate sufficient to provide the funds required to pay the bonds at maturity and the interest on the bonds as it accrues.

SECTION 3. Section 69-2-23, Mississippi Code of 1972, is brought forward as follows:

69-2-23. Such bonds may be executed and delivered by the state at any time and from time to time, may be in such form and denominations and of such terms and maturities, may be in fully registered form or in bearer form registrable either as to principal or interest, or both, may bear such conversion privileges and be payable in such installments and at such time or times not exceeding twenty (20) years from the date thereof, may be payable at such place or places, whether within or without the State of Mississippi, may bear interest payable at such time or times and at such place or places and evidenced in such manner, and may contain such provisions not inconsistent herewith, all as shall be provided in the proceedings of the State Bond Commission under which the bonds are authorized to be issued. Such bonds shall not bear a greater overall maximum interest rate to maturity than that authorized by law for general obligation bonds. If deemed advisable by the State Bond Commission, there may be retained in the proceedings under which any such bonds are authorized to be issued an option to redeem all or any part thereof as may be specified in such proceedings, at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and briefly recited or referred to on the face of the bonds, but nothing herein contained shall be construed to confer on the state any right or option to redeem any bonds, except as may be provided in the proceedings under which they shall be issued. Any such bonds shall be sold on sealed bids at public sale, and for such price as the State Bond Commission determines to be in the best interest of the State of Mississippi, but no such sale shall be made at a price less than par value plus accrued interest to date of delivery of the bonds to the purchaser. The state may pay all expenses, premiums and commissions which the State Bond Commission may deem necessary or advantageous in connection with the issuance thereof, but solely from the proceeds of the bonds. The issuance by the state of one or more series of bonds shall not preclude it from issuing other series of bonds, but the proceedings under which any subsequent bonds may be issued shall recognize and protect any prior pledge made for any prior issuance of bonds.

SECTION 4. Section 69-2-25, Mississippi Code of 1972, is brought forward as follows:

69-2-25. No bond issued under Sections 69-2-19 through 69-2-39 of this chapter shall bear more than one (1) rate of interest; each bond shall bear interest from its date to its stated maturity date at the interest rate specified on the bonds; and all bonds of the same maturity shall bear the same rate of interest from date to maturity. All interest accruing on bonds shall be payable semiannually or annually, except the first interest coupon attached to any bond may be for any period not exceeding one (1) year. If bonds are issued in coupon form, no interest payment shall be evidenced by more than one (1) coupon, and neither cancelled nor supplemental coupons shall be permitted. If serial bonds, such bonds shall mature annually, and the first maturity date thereof shall not be more than five (5) years from the date of such bonds.

SECTION 5. Section 69-2-27, Mississippi Code of 1972, is brought forward as follows:

69-2-27. Notice of the sale of any such bonds shall be published at least one time which shall be made not less than ten (10) days prior to the date of sale, and shall be so published in one or more newspapers having a general circulation in the City of Jackson selected by the State Bond Commission.

SECTION 6. Section 69-2-29, Mississippi Code of 1972, is brought forward as follows:

69-2-29. All bonds shall be executed on behalf of the state by the manual or facsimile signature of the Chairman of the State Bond Commission and shall be countersigned by the manual or facsimile signature of the Secretary of the State Bond Commission. All coupons shall be executed on behalf of the state by the facsimile signatures of the Chairman and Secretary of the State Bond Commission. If the officers whose signatures or countersignatures appear on the bonds or interest coupons shall cease to be such officers before delivery of the bonds, such signatures or countersignatures shall nevertheless be valid and sufficient for all purposes, the same as if they had remained in office until such delivery, or had been in office on the date such bonds may bear.

SECTION 7. Section 69-2-30, Mississippi Code of 1972, is brought forward as follows:

69-2-30. (1) In lieu of the issuance of bonds pursuant to the authority granted in Section 69-2-19, Mississippi Code of 1972, the State Bond Commission is authorized and empowered, if more economically feasible, to borrow funds in an aggregate principal amount not to exceed the amount specified in Section 69-2-19, Mississippi Code of 1972. The Bond Commission, to evidence such loan, may issue and sell the negotiable coupon notes of the State of Mississippi, which notes may be issued in series, from time to time, as the proceeds thereof are needed. The notes shall be in such form and shall have such details as may be provided by the commission, except that the notes of each series shall be issued with final maturity not more than five (5) years from the date of such series. For the prompt payment of such notes at maturity, both principal and interest, the same pledges may be made as are authorized for the repayment of bonds in Section 69-2-21, Mississippi Code of 1972.

(2) The notes herein authorized shall be sold from time to time by the Bond Commission as the need for the proceeds thereof may arise, and the Bond Commission shall advertise and accept bids therefor and issue and sell such notes at a price which will result in the lowest interest rate on the best terms obtainable for the state.

(3) The Bond Commission in providing for the issuance of the notes herein authorized shall have discretion in fixing the terms and details thereof and may provide for the issuance of such notes in such form, executed in such manner, and payable at such place or places, and containing such terms, covenants and provisions as the Bond Commission may provide.

SECTION 8. Section 69-2-31, Mississippi Code of 1972, is brought forward as follows:

69-2-31. Upon the issuance and sale of bonds or notes, the State Bond Commission shall transfer the proceeds of any such sale or sales to the Emerging Crops Fund. The proceeds of such bonds or notes shall be disbursed solely upon the order of the department under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds or notes.

SECTION 9. Section 69-2-33, Mississippi Code of 1972, is brought forward as follows:

69-2-33. Except as otherwise authorized in Section 7-5-39, the Attorney General of the State of Mississippi shall represent the department in issuing, selling and validating bonds or notes authorized under Sections 69-2-19 through 69-2-39 of this chapter, and the department is authorized to pay from the proceeds derived from the sale of such bonds or notes, or from other funds available to the department, the reasonable cost of approving attorney's fees, validating, printing and cost of delivery of such bonds or notes.

SECTION 10. Section 69-2-35, Mississippi Code of 1972, is brought forward as follows:

69-2-35. Bonds or notes issued under Sections 69-2-19 through 69-2-39 of this chapter shall be legal investments for commercial banks, trust companies, savings and loan associations, and insurance companies organized under the laws of this state.

SECTION 11. Section 69-2-37, Mississippi Code of 1972, is brought forward as follows:

69-2-37. All bonds or notes issued under Sections 69-2-19 through 69-2-39 of this chapter and the income therefrom shall be exempt from all taxation in the State of Mississippi except gift, transfer and inheritance taxes.

SECTION 12. Section 69-2-39, Mississippi Code of 1972, is brought forward as follows:

69-2-39. Sections 69-2-19 through 69-2-39 of this chapter, without reference to any statute not referred to herein, shall be deemed to be full and complete authority for the issuance of such bonds or notes, and shall be construed as an additional and alternative method therefor, and none of the present restrictions, requirements, conditions or limitations of law applicable to the issuance or sale of bonds, notes or other obligations by the state shall apply to the issuance and sale of bonds or notes under Sections 69-2-19 through 69-2-39 of this chapter, and no proceedings shall be required for the issuance of such bonds or notes other than those provided for and required herein, and all powers necessary to be exercised in order to carry out the provisions of Sections 69-2-13 through 69-2-37 of this chapter are hereby conferred.

SECTION 13. This act shall take effect and be in force from and after July 1, 2023.