Senate Bill 2707

(As Sent to Governor)

AN ACT TO AMEND THE BUSINESS IMPROVEMENT DISTRICT ACT; TO AMEND SECTION 21-43-117, MISSISSIPPI CODE OF 1972, TO ALLOW MODIFICATION OF THE PROCESS FOR PLAN AMENDMENTS DURING THE TEN-YEAR PLAN PERIOD AND TO PROVIDE FOR DISBURSEMENT OF THE COLLECTED DISTRICT FUNDS; TO CREATE SECTION 21-43-118, MISSISSIPPI CODE OF 1972, TO REQUIRE ANNUAL MEETINGS OF THE DISTRICT AND PRESCRIBE METHODS TO AMEND THE DISTRICT PLAN; TO AMEND SECTION 21-43-119, TO CONFORM WITH PLAN AMENDMENT PROCEDURES; TO AMEND SECTION 21-43-129, MISSISSIPPI CODE OF 1972, TO ALLOW THE DISTRICT TO DETERMINE ITS FISCAL YEAR AND TO RECEIVE DISBURSEMENT OF FUNDS FROM THE TAX COLLECTOR; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 21-43-117, Mississippi Code of 1972, is amended as follows:

21-43-117. (1) For initial creation of the district, reauthorization of the district at the end of each ten-year period, * * * ~~amendment to the district plan within the ten‑year plan period~~ or modification of the boundaries of the district at the end of a ten-year period, the clerk of the municipality shall notify all property owners to be included in the proposed district of a public hearing to review the plan and receive comment about the process for accepting or rejecting the plan. Following a public hearing, the governing authority of the municipality shall set an election date not more than sixty (60) days from the date of the public hearing. The ballot shall clearly state the issue to be decided. Only property owners of record as of the date of initial notice given as provided in Section 21-43-111 shall be eligible to participate in any such election.

(2) Notice of an election to create, continue * * *~~, amend~~ or extend a district shall be:

(a) Mailed to each of the district property owners of record thirty (30) days prior to the election, and

(b) Published at least twice in a newspaper of general circulation in the municipality, the first publication shall be not less than ten (10), nor more than thirty (30) days before the date for the election. The notice shall include a copy of the plan, a ballot for the election and a notice about the time and date for the election.

(3) Not less than ten (10) nor more than thirty (30) days before the date set for the election, the governing authority of the municipality shall cause a copy of the plan and the ballot to be posted in the lobby of its city hall.

(4) Ballots shall be marked, signed and submitted by the eligible property owner to the clerk of the municipality by the date designated on the ballot.

(5) The clerk of the municipality shall notify the property owners in the district of the result.

(6) If the plan is approved by sixty percent (60%) of the participating eligible property owners, the mayor of the municipality shall review the initial district plan to ensure its compliance with the provisions of Sections 21-43-101 through 21-43-133.

(7) The * * * ~~municipality~~ tax collector shall disburse the proceeds collected from the assessment to the designated district management group within thirty (30) days after the assessment is due. At such time of any disbursement, the tax collector shall provide a listing of the property owners and payment amounts, including the date paid. The tax collector shall provide information upon request by the district related to any unpaid or sold parcels.

SECTION 2. The following shall be codified as Section 21-43-118, Mississippi Code of 1972:

21-43-118. (1) Once the ten-year period has commenced, the district shall hold an annual meeting for the purpose of reporting its plan activities to the district property owners.

(2) The district plan improvements may be amended during any of the annual meetings. Notice of intent to amend the plan shall be provided to the property owners as an addendum to a notice of the annual meeting which shall be provided not less than twenty (20) days prior to the meeting.

(3) Approval of the plan will be validated by a vote of fifty percent (50%) of the annual meeting participating property owners. Ballots shall be provided by the district prior to the commencement of the meeting.

(4) All district property owners shall be notified of the voting results of a proposed amended plan.

SECTION 3. Section 21-43-119, Mississippi Code of 1972, is amended as follows:

21-43-119. A district plan shall be deemed adopted and ready for implementation upon written ballot approval by sixty percent (60%) of the participating eligible property owners in the district. Reauthorization * * *~~, amendments~~ of the district plan or modification of boundaries shall also be subject to written ballot approval by sixty percent (60%) of the participating eligible property owners.

SECTION 4. Section 21-43-129, Mississippi Code of 1972, is amended as follows:

21-43-129. The proceeds of any assessment imposed pursuant to an approved district plan shall be * * * disbursed by the tax collector to the designated district management group on an agreed to scheduled basis. A business improvement district * * * ~~shall~~ may operate on the calendar year or on the same fiscal year as that of the municipality. None of the proceeds collected pursuant to Sections 21-43-101 through 21-43-133 shall be used for any purposes other than those set forth in the initially approved or amended district plan. Improvements provided by a district using district funds may be undertaken only when the service, events, project or activity undertaken is not for the sole benefit of any particular property owner or other private party.

SECTION 5. This act shall take effect and be in force from and after July 1, 2024.