MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Public Health and Welfare; Ways and Means

By: Representatives Clarke, Banks, Henderson (26th), Huddleston, Watson

AN ACT TO CREATE THE MISSISSIPPI QUALIFIED HEALTH CENTER ASSISTANCE ACT; TO ESTABLISH UNDER THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT THE MISSISSIPPI QUALIFIED HEALTH CENTER ASSISTANCE PROGRAM FOR THE PURPOSE OF MAKING GRANTS TO PLANNING AND DEVELOPMENT DISTRICTS FOR THEIR USE IN PROVIDING ASSISTANCE TO MISSISSIPPI QUALIFIED HEALTH CENTERS; TO ESTABLISH THE TERMS, CONDITIONS AND AMOUNT OF GRANTS TO PLANNING AND DEVELOPMENT DISTRICTS; TO ESTABLISH CRITERIA FOR ELIGIBILITY FOR ASSISTANCE; TO REQUIRE EACH PARTICIPATING PLANNING AND DEVELOPMENT DISTRICT TO ESTABLISH A REVIEW BOARD TO REVIEW ASSISTANCE APPLICATIONS AND ESTABLISH THE TERMS AND CONDITIONS UPON WHICH ASSISTANCE MAY BE PROVIDED; TO CREATE A SPECIAL FUND TO BE KNOWN AS THE MISSISSIPPI QUALIFIED HEALTH CENTER ASSISTANCE FUND INTO WHICH ALL MONEY RECEIVED FROM THE ISSUANCE OF BONDS PURSUANT TO THIS ACT SHALL BE DEPOSITED; TO PROVIDE FOR THE ISSUANCE OF $15,000,000.00 IN GENERAL OR LIMITED OBLIGATION BONDS OF THE STATE TO FUND THE PROGRAM; AND FOR RELATED PURPOSES.

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

SECTION 1. This act shall be known and may be cited as the Mississippi Qualified Health Center Assistance Act.

SECTION 2. It is the purpose of this act to promote increased access to primary health care services for underserved, rural and urban populations by authorizing the issuance of state bonds or notes for infrastructure improvements and for funding such assistance.

SECTION 3. The following words and phrases when used in this act shall have the meaning given to them in this section unless the context clearly indicates otherwise:

(a) "Assistance" means a loan to a Mississippi qualified health center by a planning and development district in accordance with this act.

(b) "DECD" means Mississippi Department of Economic and Community Development.

(c) "General Fund" means the General Fund of the State of Mississippi.

(d) "Infrastructure improvement" means improvement to a physical structure, building or property, including, but not limited to, site development, land acquisition, building construction, expansion, renovation, equipment acquisition, communication technology, parking lot expansion and/or repair.

(e) "Loan" means a loan by a planning and development district to a Mississippi qualified health center in accordance with this act.

(f) "Medically underserved area or population" means an area designated by the Secretary of Health of the United States Department of Health and Human Services as an area with a shortage of professional health services or a population group designated by the secretary as having a shortage of such services.

(g) "Mississippi qualified health center" means a public or nonprofit private entity which provides comprehensive primary care services that:

(i) Has a community board of directors of which the majority must be users of such centers;

(ii) Accepts patients despite their ability to pay and uses a sliding-fee-scale for such payments; and

(iii) Serves a designated medically underserved area or population as provided in Section 330 of the Public Health Services Act.

(h) "Planning and development districts" means an organized planning and development district in Mississippi.

(i) "Primary care" means the basic entry level of health services provided by health care practitioners or nonphysician practitioners which is generally provided in an outpatient setting.

(j) "Program" means the Mississippi Qualified Health Center Assistance Program established in this act.

(k) "Seller" means the State Bond Commission.

(l) "Sliding-fee-scale patient" means a patient receiving services from a Mississippi qualified health center who is not eligible for Medicaid, Medicare or any other type of governmental reimbursement for health care cost or receiving third-party payment via an employer.

SECTION 4. There is established, under the direction of DECD, a program to be known as the Mississippi Qualified Health Center Assistance Program for the purpose of making grants to the planning and development districts and making loans to Mississippi qualified health centers for their use in infrastructure improvements in accordance with this act.

SECTION 5. (1) Any planning and development district desiring to participate in the program shall make application for a grant to DECD in a form satisfactory to DECD.

(2) The application must indicate that the planning and development district has established a Mississippi qualified health center assistance review board to review applications for assistance under the program and make recommendations thereon to the board of directors of the planning and development district in accordance with this act. The planning and development district shall provide such other assurances of their ability to administer and manage the program in accordance with this act as may be reasonably required by DECD.

SECTION 6. DECD shall grant funds under this act to a planning and development district in accordance with the following terms and conditions:

(a) Grant funds received by a planning and development district in accordance with this act shall be used by the planning and development district to establish a revolving assistance loan fund for the purpose of providing assistance to Mississippi qualified health centers in accordance with this act. Except as otherwise allowed in this act, all principal and interest payments by Mississippi qualified health centers in repayment of such loan assistance shall be eligible for and used by the planning and development district for additional assistance to Mississippi qualified health centers in accordance with this act.

(b) Each planning and development district meeting the criteria set forth in this act shall receive an initial grant not to exceed One Million Dollars ($1,000,000.00) for the purpose of establishing the program within the area it serves in accordance with this act. The total amount of the initial grants to planning and development districts shall not exceed Ten Million Dollars ($10,000,000.00). Each planning and development district receiving an initial grant shall have twelve (12) months with which to make binding commitments to provide assistance to Mississippi qualified health centers in the principal amount of the initial grant in accordance with this act. Grant funds not committed to provide assistance to Mississippi qualified health centers at the end of twelve (12) months after receipt thereof by the planning and development district shall be returned to DECD for placement in a pool to be redistributed by DECD to planning and development districts which have binding commitments to distribute as assistance all their initial grant funds and have pending applications for additional assistance in accordance with this act. Any planning and development district returning any such grant funds to DECD shall be required at the time such initial grant funds are returned to deliver to the State Treasury, for deposit in the General Fund, interest on the amount of such returned funds at the same rate as any bonds or notes of the State of Mississippi issued pursuant to this act to provide such grant funds.

(c) After all the initial grant funds have been provided as assistance to Mississippi qualified health centers in accordance with this act, DECD shall distribute additional grant funds to each planning and development district qualified under this act to receive and requesting such funds in whatever amount DECD deems appropriate and when needed by such planning and development districts to provide additional assistance to Mississippi qualified health centers in accordance with this act. The schedule for distributing such funds shall be determined by DECD. Funds distributed to planning and development districts pursuant to this paragraph (c) shall be in addition to funds distributed to planning and development districts pursuant to paragraph (b) of this section. The total amount of grants issued pursuant to this paragraph (c) shall not exceed Twelve Million Dollars ($12,000,000.00) for planning and development districts. Grant funds not committed to provide assistance to Mississippi qualified health centers at the end of twelve (12) months after receipt thereof by the planning and development district shall be returned to DECD for placement in a pool to be redistributed by DECD to planning and development districts which have binding commitments to distribute as assistance all their initial grant funds and have pending applications for additional assistance in accordance with this act. Any planning and development district returning any such grant funds to DECD shall be required at the time such initial grant funds are returned to deliver to the State Treasury, for deposit in the General Fund, interest on the amount of such returned funds at the same rate as any bonds or notes of the State of Mississippi issued pursuant to this act to provide such grant funds.

(d) A planning and development district participating in the program may utilize not more than fifty percent (50%) of its interest earned on assistance provided to Mississippi qualified health centers in accordance with this act for administration and management of the program, unless specifically authorized to utilize more by DECD; however, any interest earned on grant funds held by a planning and development district prior to the utilization of such grant funds to provide assistance to Mississippi qualified health centers shall be placed in the revolving assistance loan fund of the planning and development district and shall not be expended for administration or management costs.

(e) If a planning and development district participating in the program experiences losses from assistance provided pursuant to the program in excess of fifty percent (50%) of the amount of grant funds received by the planning and development district, the planning and development district shall repay the State of Mississippi the amount of such losses in excess of fifty percent (50%) by delivering that amount to the State Treasury for deposit in the General Fund.

(f) DECD shall assist each planning and development district participating in the program in connection with such planning and development district's compliance with this act.

(g) Each planning and development district shall submit the following reports to DECD:

(i) An annual audit of grant funds received in connection with the program; and

(ii) A semiannual report on July 15 and January 15 of each year, describing all assistance provided to a Mississippi qualified health center pursuant to the program, such reports to include without limitation the following: a description of each Mississippi qualified health center receiving assistance; the project to be assisted and purpose of assistance; a description of each loan including the terms and conditions thereof and use of the loan funds assistance by Mississippi qualified health centers; history of the loan assistance pool, including principal amount loaned, interest earned, interest expended for administration and management, principal amount of equity investments, assistance funds available and losses; and a statement of improved access to primary care services as a result of the assistance program. Upon expiration of five (5) years from date of receipt of an initial grant in accordance with this act, upon satisfaction that such reports are no longer necessary or appropriate to maintain and ensure compliance with the program, DECD may permit a planning and development district to discontinue such semiannual reports.

(h) If DECD determines that a district has provided assistance to a Mississippi qualified health center in a manner inconsistent with the provisions of this act, then the amount of such assistance so provided shall be withheld by DECD from any additional grant funds to which the district becomes entitled under this act. If DECD determines, after notifying such district twice in writing and providing such district a reasonable opportunity to comply, that a planning and development district has consistently failed to comply with this act in connection with the program, DECD may declare such planning and development district entity in default under the program and, upon receipt of notice thereof from DECD, such planning and development district shall immediately cease providing assistance under the program, shall refund to DECD for distribution to other planning and development districts all funds held in its revolving loan assistance fund and, if required by DECD, shall convey to DECD all administrative and management control of assistance provided by it under the program.

SECTION 7. The planning and development districts shall deposit all grant funds received pursuant to this act in a revolving loan assistance fund and provide assistance therefrom to Mississippi qualified health centers in accordance with this act and the following criteria, terms and conditions:

(a) To be eligible for assistance under this act, Mississippi qualified health centers and the projects to be assisted must meet the following criteria:

(i) Assistance must be in connection with an identifiable project related to infrastructure improvement and the principal amount of all assistance may not exceed eighty percent (80%) of the total cost of the project;

(ii) Assistance may be used in connection with the purchase or lease of land, buildings, equipment and for working capital; however, no more than one-third (1/3) of the total assistance to a Mississippi qualified health center pursuant to this act or Fifty Thousand Dollars ($50,000.00), whichever is less, may be used for working capital;

(iii) Assistance may not be provided for speculative land or real estate investments;

(iv) Assistance may not be provided under this program to finance or satisfy any existing debt;

(v) Assistance may not be provided to a Mississippi qualified health center unless it specifically complies with a definition of a Mississippi qualified health center contained in Section 3 of this act; and

(vi) The project for which assistance is provided must create or retain full-time jobs, and the planning and development district must receive a certificate to that effect from the Mississippi qualified health center before any assistance is provided.

(b) The interest rate on loans shall not be less than five percent (5%) per annum or more than two percent (2%) above the rate on any bonds or notes issued pursuant to this act to provide the grant funds hereunder, plus the servicing fees established in this act.

(c) As security for any loan under the program, the planning and development district shall take a security interest in assets of the Mississippi qualified health center. Such security interests may be subordinate to other security interests in such assets.

(d) The maximum term of any loan under this program shall not exceed the following: fifteen (15) years if used to purchase or lease land or buildings, ten (10) years if used to purchase or lease equipment, five (5) years if used to provide working capital.

(e) In the event of a default by a Mississippi qualified health center on a loan under the program, the planning and development district shall foreclose and enforce its security interests and personal guarantees relating to such loan and take necessary and appropriate action to recover all principal and interest owed, and all amounts so recovered shall be deposited in the revolving loan assistance fund administered by the planning and development district. Any Mississippi qualified health center which defaults on a loan under the program shall not be eligible for any other loan under the program.

(f) When a planning and development district is providing assistance from an initial grant as described in Section 6(b) of this act, at least forty percent (40%) of such initial grant proceeds shall be used in connection with assistance for expansions of existing Mississippi qualified health centers.

(g) No Mississippi qualified health center shall receive assistance under this program in excess of Five Hundred Thousand Dollars ($500,000.00).

(h) All assistance applications must be reviewed by, and the terms and conditions of the assistance must be recommended to, the planning and development district by a Mississippi qualified health center assistance review board established by the planning and development district, consisting of the following members appointed by the planning and development district:

(i) Two (2) individuals with current experience in banking or finance;

(ii) Two (2) representatives of not-for-profit entities qualifying as Mississippi qualified health centers under this act;

(iii) One (1) senior officer of a private, not-for-profit entity not qualifying as a Mississippi qualified health center under this act or the executive director of a nonprofit economic development foundation;

(iv) One (1) individual who is a minority and who has current experience in banking or finance or who is the principal in a not-for-profit entity with a health care business related to that of a Mississippi qualified health center;

(v) One (1) individual who is a female and has current experience in banking or finance who is a principal of an organization with interests and services similar to a Mississippi qualified health center.

As used in this paragraph, "minority" shall mean individuals who are Asian, Black, Hispanic or Native American as defined in Section 31-7-13(u).

All members of such Mississippi qualified health center assistance review boards shall be residents of the area served by the planning and development district. Mississippi qualified health center assistance review boards shall meet at least quarterly and shall meet anytime there are at least two (2) assistance applications, pending that require review.

(i) If the Mississippi qualified health center assistance review board recommends that assistance be provided, the planning and development district may either approve and provide the assistance on the exact terms and conditions recommended by the Mississippi qualified health center assistance review board or determine not to provide such assistance. Under no circumstances may the planning and development district provide such assistance on any terms or conditions not approved and recommended by the Mississippi qualified health center assistance review board. If the planning and development district determines not to provide assistance that the Mississippi qualified health center assistance review board has recommended to be provided, the board of directors of such district or the governing body shall place in its minutes an explanation of the reasons for such refusal. If the Mississippi qualified health center assistance review board recommends against providing the assistance, the board of directors of the planning and development district may not determine to provide such assistance under any terms and conditions.

SECTION 8. The planning and development districts are authorized to engage legal counsel, accountants, financial advisors, appraisers, consultants and others as needed in connection with providing assistance to Mississippi qualified health centers pursuant to this act, and to charge the costs of these services to the Mississippi qualified health centers receiving such assistance or charge the proceeds of such assistance therefor. To the extent required by DECD, such professional services shall be engaged on a statewide program basis.

SECTION 9. (1) DECD shall adopt and publish the eligibility criteria for planning and development districts to participate in this program as set forth in this act, a timetable and process for review of applications from planning and development districts and program report forms, all in accordance with this act, and such other rules and regulations as may be necessary and appropriate in carrying out its responsibilities under this act; however, planning and development districts shall have sole authority over the approval of assistance and the management of the assistance needed under this act.

(2) The Mississippi Association of Planning and Development Districts shall prepare and adopt such uniform applications, forms, procedures and requirements for use in connection with the program as they deem necessary and appropriate.

SECTION 10. No assistance shall be provided to a Mississippi qualified health center under this act unless the Mississippi qualified health center certifies to the planning and development district, in a form satisfactory to DECD, that it will not discriminate against any employee or against any applicant for employment because of race, religion, color, national origin, sex or age.

SECTION 11. (1) There is created a special fund in the State Treasury to be known as the Mississippi Qualified Health Center Assistance Fund out of which grants and expenditures authorized in connection with the program shall be disbursed. All monies received by issuance of bonds to carry out the purposes of this act shall be deposited into the Mississippi Qualified Health Center Assistance Fund.

(2) All funds repaid to the State Treasury under this act or designated hereunder for repayment of any bonds issued under this act shall be delivered to the State Treasurer for deposit in the General Fund.

SECTION 12. (1) All bonds issued under the authority of this act shall be redeemed at maturity, together with all interest due, from time to time, on the bonds, and these principal and interest payments shall be paid from the General Fund.

(2) In the event that all or any part of the bonds and notes are purchased, they shall be canceled and returned to the loan and transfer agent as canceled and paid bonds and notes; and thereafter all payments of interest thereon shall cease and the canceled bonds, notes and coupons, together with any other canceled bonds, notes and coupons, shall be destroyed as promptly as possible after cancellation but no later than two (2) years after cancellation. A certificate evidencing the destruction of the canceled bonds, notes and coupons shall be provided by the loan and transfer agent to the seller.

(3) The State Treasurer shall determine and report to the Department of Finance and Administration and Legislative Budget Office by September 1 of each year the amount of money necessary for payment of the principal and interest on outstanding obligations for the following fiscal year and the times and amounts of the payments. It shall be the duty of the Governor to include in every executive budget submitted to the Legislature full information relating to the issuance of bonds and notes under the provisions of this act and the status of the General Fund for the payment of the principal and interest on the bonds and notes.

(4) Except as otherwise provided by law, the rate of interest on any assistance made using funds from the Mississippi Qualified Health Center Assistance Fund shall be in accordance with Section 7 of this act. Notwithstanding the provisions of any other law to the contrary, the interest rate charged shall not be set such that the aggregate of the interest, penalties and other payments to the planning and development districts in connection with such assistance made using funds from the Mississippi Qualified Health Center Assistance Fund will cause the bonds issued pursuant to this act to be deemed arbitrage bonds pursuant to Section 148 of the Internal Revenue Code of 1986 and the regulations promulgated thereunder. In the case of assistance initially funded from the proceeds of notes and subsequently funded from renewal bonds and notes, the interest rate to be charged for the assistance shall be established in accordance with Section 7 of this act upon the sale of bonds or notes, as the case may be, for such assistance.

SECTION 13. (1) The seller is authorized to borrow, on the credit of the state, money not exceeding the aggregate sum of Fifteen Million Dollars ($15,000,000.00), not including money borrowed to refund outstanding bonds, notes or replacement notes, as may be necessary to carry out the purposes of this act. The rate of interest on any such bonds or notes which are not subject to taxation shall not exceed the rates set forth in Section 75-17-101, for general obligation bonds.

(2) As evidence of indebtedness authorized in this act, general or limited obligation bonds of the state shall be issued from time to time to provide monies necessary to carry out the purposes of this act for such total amount, in such form, in such denominations, payable in such currencies (either domestic or foreign or both), and subject to such terms and conditions of issue, redemption and maturity, rate of interest and time of payment of interest as the seller directs, except that such bonds shall mature or otherwise be retired in annual installments beginning not more than five (5) years from the date thereof and extending not more than twenty (20) years from the date thereof.

(3) All bonds and notes issued under authority of this act shall be signed by the chairman of the seller or by his facsimile signature, and the official seal of the seller shall be affixed thereto, attested by the secretary of the seller.

(4) All bonds and notes issued under authority of this act may be general or limited obligation of the state, and the full faith and credit of the State of Mississippi as to general obligation bonds, or the revenue derived from projects assisted as to limited obligation bonds, are pledged for the payment of the principal of and interest on such bonds and notes.

(5) Such bonds and notes and the income therefrom shall be exempt from all taxation in the State of Mississippi.

(6) The bonds may be issued as coupon bonds or registered as to both principal and interest as the seller may determine. If interest bonds are attached, they shall contain the facsimile signature of the chairman and the secretary of the seller.

(7) As to bonds issued hereunder and designated as taxable bonds by the seller, any immunity of the state to taxation by the United States Government of interest on bonds or notes issued by the state is waived.

SECTION 14. (1) Whenever bonds are issued, they shall be offered for sale at not less than par value and accrued interest and shall be sold by the seller at public or private sale, from time to time, in such manner and at such price as may be determined by the seller to be most advantageous.

(2) Any portion of any bond issue so offered and not sold or subscribed for at public sale may be disposed of by private sale by the seller in such manner and at such prices not less than par and accrued interest, as the seller shall direct.

(3) When bonds are issued from time to time, the bonds of each issue shall constitute a separate series to be designated by the seller or may be combined for sale as one (1) series with other general obligation bonds of the State of Mississippi.

(4) Until permanent bonds can be prepared, the seller may in its discretion issue, in lieu of permanent bonds, temporary bonds in such form and with such privileges as to registration and exchange for permanent bonds as may be determined by the seller.

(5) Pending their application to the purposes authorized, bond proceeds held or deposited by the State Treasurer may be invested or reinvested as are other funds in the custody of the State Treasurer in the manner provided by law. All earnings received from the investment or deposit of such funds shall be paid into the State Treasury to the credit of the Mississippi Qualified Health Center Assistance Fund.

(6) The State Treasurer shall prepare the necessary registry book to be kept in the office of the duly authorized loan and transfer agent of the state for the registration of any bonds, at the request of owners thereof, according to the terms and conditions of issue directed by the seller.

(7) All costs and expenses in connection with the issue of, sale and registration of the bonds and notes in connection with this act, and all costs and expenses in connection with implementation of the program and development of application forms, procedures and requirements for use in connection with the program may be paid from the proceeds of bonds and notes issued under this act.

(8) The seller may provide in the resolution authorizing the issuance of such bonds for the employment of one or more persons or firms to assist in the sale of the bonds; to enter into contracts with financial institutions located either within or without the State of Mississippi to act as registrar, paying agents, transfer agents or otherwise; for rating of the bonds; and to purchase insurance.

SECTION 15. (1) Pending the issuance of bonds of the state as authorized under this act, the seller is authorized in accordance with the provisions of this act and on the credit of the state, to make temporary borrowings not to exceed two (2) years in anticipation of the issue of bonds in order to provide funds in such amounts as may, from time to time, be deemed advisable prior to the issue of bonds. In order to provide for and in connection with such temporary borrowings, the seller is authorized in the name and on behalf of the state to enter into any purchase, loan or credit agreement or agreements, or other agreement or agreements with any financial institution or persons in the United States having power to enter into the same, which agreements may contain such provisions not inconsistent with the provisions of this act as may be authorized by the seller.

(2) All temporary borrowings made under this section shall be evidenced by notes of the state which shall be issued, from time to time, for such amounts not exceeding in the aggregate the applicable statutory and constitutional debt limitation, in such form and in such denominations and subject to terms and conditions of sale and issue, prepayment or redemption and maturity, rate or rates of sale and time of payment of interest as the seller shall authorize and direct and in accordance with this act. Such authorization and direction may provide for the subsequent issuance of replacement notes to refund, upon issuance thereof, such notes, and may specify such other terms and conditions with respect to the notes and replacement notes thereby authorized for issuance as the seller may determine and direct.

(3) When the authorization and direction of the seller provide for the issuance of replacement notes, the seller is authorized in the name and on behalf of the state to enter into agreements with any financial institutions or persons in the United States having the power to enter into the same:

(a) To purchase or underwrite an issue or series of issues of notes.

(b) To enter into any purchase, loan or credit agreements, and to draw monies pursuant to any such agreements on the terms and conditions set forth therein and to issue notes as evidence of borrowings made under any such agreements.

(c) To appoint or act as issuing and paying agent or agents with respect to notes.

(d) To do such other acts as may be necessary or appropriate to provide for the payment, when due, of the principal of and interest on such notes.

Such agreements may provide for the compensation of any purchasers or underwriters of notes or replacement notes by payment of a fixed fee or commission at the time of issuance thereof, and for all other costs and expenses, including fees for agreements related to the notes issuing and paying agent costs. Costs and expenses of issuance may be paid from the proceeds of the notes.

(4) When the authorization and direction of the seller provides for the issuance of replacement notes, it shall, at or prior to the time of delivery of these notes or replacement notes, determine the principal amounts, dates of issue, interest rate or rates, rates of discount, denominations and all other terms and conditions relating to the issuance. The State Treasurer shall perform all acts and things necessary to pay or cause to be paid, when due, all principal of and interest on the notes being refunded by replacement notes and to assure that the same may draw upon any monies available for that purpose pursuant to any purchase loan or credit agreements established with respect thereto, all subject to the authorization and direction of the seller.

(5) Outstanding notes evidencing such borrowings may be funded and retired by the issuance and sale of the bonds of the state as hereinafter authorized. The refunding bonds must be issued and sold not later than a date two (2) years after the date of issuance of the first notes evidencing such borrowings to the extent that payment of such notes has not otherwise been made or provided for by sources other than proceeds of replacement notes.

(6) The proceeds of all such temporary borrowing shall be paid to the State Treasurer to be held and disposed of in accordance with the provisions of Section 11 of this act.

SECTION 16. (1) The proceeds realized from the sale of bonds and notes under this act, other than refunding bonds and replacement notes, shall be paid to the State Treasurer and deposited into the Mississippi Qualified Health Center Assistance Fund and specifically dedicated to the purposes enumerated in this act.

(2) All nonfederal funds which may become available for the purposes of this act shall be deposited into the Mississippi Qualified Health Center Assistance Fund and shall be allocated for the purposes of this act.

(3) The proceeds of the sale of refunding bonds and replacement notes shall be applied solely to the payment of the principal of and the accrued interest on and premium, if any, and costs of redemption of the bonds and notes for which such obligations have been issued.

SECTION 17. The Attorney General of the State of Mississippi shall represent the seller in issuing, selling and validating bonds or notes herein provided for, and the seller is hereby authorized and empowered to expend from the proceeds derived from the sale of the bonds or notes authorized hereunder all necessary administrative, legal and other expenses incidental and related to the issuance of bonds or notes authorized under this act.

SECTION 18. This act shall take effect and be in force from and after July 1, 1999.