House Bill 709

AN ACT TO AMEND SECTION 57-1-501, MISSISSIPPI CODE OF 1972, TO REVISE THE PURPOSES FOR WHICH MONIES IN THE ECONOMIC DEVELOPMENT AND INFRASTRUCTURE FUND MAY BE USED; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 57-1-501, Mississippi Code of 1972, is amended as follows:

57-1-501. (1) There is created in the State Treasury a special fund to be designated as the "Economic Development and Infrastructure Fund." The special fund shall consist of monies deposited into the fund from any source that is 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 to the credit of the fund. Monies in the fund shall be used by the Mississippi Development Authority for the purposes authorized in subsection (2) of this section.

(2) (a) The Mississippi Development Authority shall establish a program to provide grants:

(i) To assist with construction and repair of infrastructure in counties in this state where legal gaming is being conducted or is authorized and for structures designed to promote the gaming and entertainment industry in such counties * * *, ~~and~~;

(ii) To aid in increasing commercial air service at existing commercial service airports in counties in this state in which legal gaming is being conducted or is authorized by offering to assist Part 121 carriers through the following air service development methods: revenue guaranty, seat guaranty, seat cost mitigation, ground handling and marketing * * *.; and

(iii) To aid in increasing commercial air service at existing commercial service airports in this state, including any existing Federal Aviation Administration-certificated Part 139 commercial service airport within the State of Mississippi, by offering to assist Part 121 air carriers through air service development methods, including revenue guaranty, seat guaranty, seat cost mitigation, ground handling, marketing, and other incentive or risk-mitigation mechanisms authorized by rule, for the purpose of initiating, sustaining, or expanding new direct or nonstop commercial air service that supports economic development, workforce access, tourism, business retention, and business recruitment within the metropolitan area and the surrounding region.

(b) The Mississippi Development Authority shall establish a procedure for accepting and reviewing applications for grants under this section. In addition to any such procedure, the Mississippi Development Authority may consider the anticipated economic development impact to the municipal area, regional connectivity, and return on investment to the state, when reviewing applications for grants for purposes described in paragraph (a)(iii) of this subsection.

(c) If funds are available in the fund created under this section, not less than Two Million Five Hundred Thousand Dollars ($2,500,000.00) shall be used annually for grants provided for under paragraph (a)(ii) of this subsection (2). Thereafter, the funds may be used for grants provided for under paragraphs (a)(i) and (a)(iii) of this subsection (2). In addition, from monies deposited into the Economic Development and Infrastructure Fund during Fiscal Year 2027, not less than One Hundred Fifty Thousand Dollars ($150,000.00) shall be used for grants provided for under paragraph (a)(iii) of this subsection (2).

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

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