Senate Bill 3225

AN ACT TO AMEND CHAPTER 952, LOCAL AND PRIVATE LAWS OF 1991, AS LAST AMENDED BY CHAPTER 976, LOCAL AND PRIVATE LAWS OF 1994, TO AUTHORIZE THE HATTIESBURG CONVENTION COMMISSION TO USE THE DESIGN-BUILD METHOD OF CONSTRUCTION CONTRACTING; AND FOR RELATED PURPOSES.

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

SECTION 1. Chapter 952, Local and Private Laws of 1991, as amended by Chapter 854, Local and Private Laws of 1992, as amended by Chapter 976, Local and Private Laws of 1994, is amended as follows:

Section 1. As used in this act, the following words shall have the meanings ascribed to them in this section unless otherwise clearly indicated by the context in which they are used:

(a) "Commission" shall mean the Hattiesburg Convention Commission.

(b) "Restaurant" shall mean and include all places where prepared food and beverages are sold for consumption, whether such food is consumed on the premises or not. "Restaurant" as defined herein does not include any school, hospital, convalescent or nursing home, or any restaurant-like facility operated by or in connection with a school, hospital, medical clinic, convalescent or nursing home providing food for students, patients, visitors and their families, or any restaurant having annual gross sales of less than One Hundred Thousand Dollars ($100,000.00).

Section 2. (1) There is hereby created and established in the City of Hattiesburg, Mississippi, the Hattiesburg Convention Commission, whose purpose is the promotion of conventions and tourism jointly with the Hattiesburg Tourism Commission in the City of Hattiesburg.

(2) The commission shall be domiciled in the City of Hattiesburg. It shall have the authority to promulgate and enact all rules and regulations necessary or advantageous to the purpose of the commission.

Section 3. (1) The commission shall be composed of five (5) members who shall be known as commissioners. The commissioners shall serve without compensation and shall serve as follows:

Appointments shall be made by the mayor and ratified by the council of the City of Hattiesburg. Three (3) shall be appointed for a term of two (2) years and two (2) shall be appointed for terms of three (3) years. All succeeding appointments shall be made for a term of two (2) years from the date of expiration of the initial appointment. Any vacancy which occurs shall be filled in the same manner as the original appointment and shall be made for the unexpired term only. Each commissioner shall serve until his successor is appointed and qualifies. The commission may be expanded to seven (7) members at any time upon resolution duly adopted by the city council and approved by the mayor. The additional members shall be appointed by the mayor and ratified by the council and shall serve such terms as established by the city council by resolution duly adopted and approved by the mayor. At no time shall the composition of the commission consist of more than two (2) members who reside outside the corporate limits of the City of Hattiesburg.

(2) Any commissioner may be disqualified and removed from office for either of the following reasons:

(a) Conviction of a felony; or

(b) Failure to attend three (3) consecutive meetings without just cause.

If a commissioner is removed for any of the above reasons, the vacancy shall be filled in the manner prescribed in this section and shall be made for the unexpired term.

(3) Before assuming the duties of office, each commissioner shall take the oath prescribed by law and shall enter into and give bond, to be approved by the Secretary of State of the State of Mississippi, in the sum of Twenty-five Thousand Dollars ($25,000.00), conditioned upon the faithful performance of his duties. Such bond shall be payable to the State of Mississippi, and, in the event of a breach thereof, suit may be brought by the State of Mississippi for the benefit of the commission. The premiums on such bonds shall be paid from the funds received by the commission under the provisions of this act.

(4) A quorum shall consist of three (3) members of the commission. The commission shall elect a chairman, vice-chairman and secretary, all of whom shall be members of the commission, and shall adopt such rules and regulations as may govern the time and place for holding meetings, regular and special, and other rules and regulations not inconsistent with the provisions of this act.

Section 4. The commission shall have jurisdiction and authority over all matters relating to the establishment, development, construction, furnishing and equipping of convention and tourism-related facilities within the City of Hattiesburg, including the authority to enter into such contracts and agreements as may be necessary to carry out the intent of this act. The commission shall adhere to the provisions of the public purchases laws, public works contracts laws and public bid laws as provided by the laws of the State of Mississippi.

The commission is authorized to contract for the construction, furnishing, equipping and operation of any and all facilities necessary or useful in the promotion of tourism and conventions; to lease or rent such facilities; and to receive and expend, subject to the provisions of this act, revenues from any source.

The commission is authorized to use the design-build method of construction contracting under the same standards and conditions as provided for governing authorities in Section 31-7-13.1, Mississippi Code of 1972.

Section 5. (1) For the purpose of providing funds for the construction, furnishing, equipping, erection and operation of tourism and convention facilities, there is hereby levied, assessed and shall be collected from every person engaging in or doing business in the City of Hattiesburg, as specified herein, a tax which may be cited as a "convention promotion tax," which shall be in addition to all other taxes now imposed, as hereinafter provided.

(2) The funds derived from this tax will be supplemental to any funding received from the City of Hattiesburg, in the form of staffing, office facilities and operational overhead for the commission.

(3) Such tax shall be in an amount not to exceed two percent (2%) of the gross income of (a) restaurants, (b) on-premises alcoholic beverage retailer permittees, and (c) alcoholic beverage package retailer permittees.

(4) Persons liable for the tax imposed herein shall add the amount of tax to the sales price or gross income and, in addition thereto, shall collect, insofar as practicable, the amount of the tax due by them from the person receiving the services or goods at the time of payment therefor.

(5) Such tax shall be collected by and paid to the State Tax Commission on a form prescribed by the * * * ~~State Tax Commission~~ Department of Revenue, in the same manner that state sales taxes are computed, collected and paid; and the full enforcement provisions of Chapter 65, Title 27, Mississippi Code of 1972, shall apply as necessary to the implementation and administration of this act.

(6) The proceeds of such tax shall be paid to the City of Hattiesburg on or before the fifteenth day of the month following the month in which they were collected.

(7) The proceeds of the tax shall not be considered by the City of Hattiesburg as general fund revenues, but shall be dedicated solely for the purpose of carrying out projects, programs and activities which are designated by the commission and which are designed to attract conventions and tourists into the City of Hattiesburg.

Section 6. Before the taxes authorized by this act shall be imposed, the governing authorities of the city shall adopt a resolution declaring their intention to levy the tax, setting forth the amount of such tax and establishing the date on which this tax initially shall be levied and collected. This date shall be not less than the first day of the second month from the date of adoption of the resolution.

The resolution shall be published in a local newspaper at least twice during the period from the adoption of the resolution to the effective date of the taxation prescribed in this act, with the last publication being made no later than ten (10) days prior to the effective date of such taxation.

The resolution shall be no less than one-fourth (1/4) page in size and the type used shall be no smaller than eighteen (18) point and surrounded by a one-fourth (1/4) inch solid black border. The resolution may not be placed in that portion of the newspaper where legal notices and classified advertisements appear.

If, within the time of giving notice, twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified electors of the City of Hattiesburg shall file a written petition against the levy of such tax, then such tax shall not be levied unless authorized by a majority of the qualified electors of the city voting at an election to be called and held for that purpose.

Section 7. The commission shall adopt its first budget of receipts and expenditures to cover the period beginning with the effective date of the tax and ending with the end of the city's fiscal year; and, thereafter, the budget shall be on the same fiscal basis as the budget of the city. The commission shall annually prepare and submit to the city council its proposed budget for the forthcoming fiscal year in the form and manner required by the council. Such budget shall be considered, and a budget approved by the council, not later than the fifteenth of September of each year.

Section 8. Accounting for receipts and expenditures of the funds herein described shall be made separately from the accounting of receipts and expenditures of the general fund and any other funds of the city. The records reflecting the receipts and expenditures of the funds prescribed herein shall be audited annually by an independent certified public accountant, and the accountant shall make a written report of his audit to the governing authorities of the city, the director of finance of the city and to the commission. Such audit shall be made and completed as soon as practicable after the close of the fiscal year, and the expenses of such audit may be paid from the funds derived pursuant to Section 5 of this act.

Section 9. Upon the written request of the commission, the governing authorities of the City of Hattiesburg are authorized to issue, from time to time, negotiable revenue bonds of the city for the purposes set forth in Section 4 of this act, and to pay for costs of issuing the bonds (including bond insurance, credit enhancements, rating agency fees and legal fees and expenses), in an aggregate principal amount not to exceed Twenty Million Dollars ($20,000,000.00), which bonds may be secured by all or any portion of the tax revenue generated in Section 5 of this act, along with such other security as shall be provided by the city. The bonds issued pursuant to this act shall not be included within the limitation on municipal indebtedness. Such bonds, as provided for in this section, may be secured by the tax revenues generated from food and beverage sales. The full faith and credit of the City of Hattiesburg is not pledged on behalf of these revenue bonds.

Section 10. All bonds issued as hereinabove provided shall be issued and the proceeds managed in accordance with the terms and provisions of Sections 21-33-307 through 21-33-323, Mississippi Code of 1972. Additionally, the resolution of the governing authorities stating the amount of bonds proposed to be issued and the purpose for which the bonds are to be issued shall be published in a newspaper in the form of no less than one-fourth (1/4) page in size and the type used shall be no smaller than eighteen (18) point and surrounded by a one-fourth (1/4) inch solid black border. The resolution may not be placed in that portion of the newspaper where legal notices and classified advertisements appear. The bonds shall be sold in accordance with the provisions of Section 31-19-25, Mississippi Code of 1972, or at private sale, and for such price as determined to be for the best interest of the City of Hattiesburg at the discretion of the mayor and the city council, but no sale shall be made at a price of less than ninety-eight percent (98%) of par, plus accrued interest.

Section 11. This act, without reference to any other statute not referred to herein, shall be deemed to be full and complete authority for the borrowing of money and the issuing of bonds as authorized by the governing authorities and shall be construed as an additional and alternate method therefor.

Section 12. Any bonds issued under the provisions of this act may be validated in the manner provided by law.

Section 13. The governing authorities of the City of Hattiesburg are further authorized and empowered to adopt any and all lawful resolutions, orders or ordinances; execute and deliver such agreements, contracts, indentures and certificates; and do and perform any and all other acts and things necessary and requisite to issue the bonds and carry out the purposes of this act.

Section 14. No member of the Legislature, elected official or appointed official, or any partner or associate of any member of the Legislature, elected official or appointed official, shall derive any income from the issuance of any bonds under this act contrary to the provisions of Section 109, Mississippi Constitution of 1890, or Article 3, Chapter 4, Title 25, Mississippi Code of 1972.

SECTION 2. This act shall take effect and be in force from and after its passage.