MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Ways and Means

By: Representatives Williams, Guice, Scott (80th)

AN ACT TO AUTHORIZE THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE STATE OF MISSISSIPPI FOR THE PURPOSE OF CAPITAL IMPROVEMENTS FOR INSTITUTIONS OF HIGHER LEARNING; TO AUTHORIZE THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE STATE OF MISSISSIPPI FOR THE PURPOSE OF CAPITAL IMPROVEMENTS AT COMMUNITY AND JUNIOR COLLEGES; TO AMEND SECTION 2, CHAPTER 538, LAWS OF 1997, AS AMENDED BY CHAPTER 529, LAWS OF 1998, TO REVISE THE USE OF PROCEEDS OF STATE GENERAL OBLIGATION BONDS ISSUED FOR THE PURPOSE OF CAPITAL IMPROVEMENTS FOR THE UNIVERSITY OF SOUTHERN MISSISSIPPI; AND FOR RELATED PURPOSES.

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

SECTION 1. As used in Sections 1 through 18 of this act, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:

(a) "Accreted value" of any bond means, as of any date of computation, an amount equal to the sum of (i) the stated initial value of such bond, plus (ii) the interest accrued thereon from the issue date to the date of computation at the rate, compounded semiannually, that is necessary to produce the approximate yield to maturity shown for bonds of the same maturity.

(b) "State" means the State of Mississippi.

(c) "Commission" means the State Bond Commission.

SECTION 2. (1) (a) A special fund, to be designated as the "1999 IHL Capital Improvements Fund," is created within the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. 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 into such fund.

(b) Monies deposited into the fund shall be disbursed, in the discretion of the Department of Finance and Administration, to pay the costs of capital improvements, renovation and/or repair of existing facilities, furnishings and/or equipping facilities for public facilities for agencies or their successors as hereinafter described:

NAME PROJECT AMOUNT

INSTITUTIONS OF HIGHER LEARNING

Alcorn State University $ 4,000,000.00

Improvements to water, waste

and mechanical systems $ 4,000,000.00

Delta State University $ 4,000,000.00

Phase I of construction of

a classroom and

administration building. $ 4,000,000.00

Jackson State University $ 7,000,000.00

Phase I of construction of

a school of business

building. . . . . . . . $ 7,000,000.00

Mississippi University for Women $ 4,000,000.00

Restoration of campus

landmarks. . . . . . . . $ 4,000,000.00

Mississippi State University $10,000,000.00

Construction of a landscape

architecture building. . $ 3,000,000.00

Renovations of Lee Hall

Auditorium. . . . . . . $ 2,000,000.00

Phase II of north entrance

road construction. . . . $ 1,000,000.00

Renovation of Bowen Hall. . . $ 3,500,000.00

Repair and renovation of

campus facilities . . . $ 500,000.00

Mississippi State University/

Mississippi Agriculture and

Forestry Experiment Station $ 3,000,000.00

Construction of a furniture

testing laboratory. . . $ 3,000,000.00

Mississippi Valley State University $ 4,000,000.00

Preplanning for an

athletic complex. . . . $ 500,000.00

Renovation of the Business

Education Building. . . $ 3,500,000.00

University Medical Center $ 1,000,000.00

Repair and renovation of a

classroom facility. . . $ 1,000,000.00

University of Mississippi $ 10,000,000.00

Phase II of construction of

a performing arts

center. . . . . . . . . $ 10,000,000.00

University of Southern Mississippi $ 10,000,000.00

Preplanning of a student

services building. . . . $ 500,000.00

Renovation of the Polymer

Science Research

Center. . . . . . . . . $ 6,000,000.00

General renovations and

repairs. . . . . . . . . $ 3,500,000.00

University of Southern Mississippi/

University of Southern Mississippi/

Gulf Park Campus $ 3,000,000.00

Phase II of construction of

new buildings and

campus infrastructure. . $ 3,000,000.00

University of Mississippi

Advanced Education Center

in Tupelo $ 1,800,000.00

Construction, equipping, furnishing,

repair and renovation of the

Advanced Education Center. . . $ 1,800,000.00

TOTAL $61,800,000.00

(2) Amounts deposited into such special fund shall be disbursed to pay the costs of projects described in subsection (1) of this section. Promptly after the commission has certified, by resolution duly adopted, that the projects described in subsection (1) of this section shall have been completed, abandoned, or cannot be completed in a timely fashion, any amounts remaining in such special fund shall be applied to pay debt service on the bonds issued under this act, in accordance with the proceedings authorizing the issuance of such bonds and as directed by the commission.

(3) The Department of Finance and Administration, acting through the Bureau of Building, Grounds and Real Property Management, is expressly authorized and empowered to receive and expend any local or other source funds in connection with the expenditure of funds provided for in this section. The expenditure of monies deposited into the special fund shall be under the direction of the Department of Finance and Administration, and such funds shall be paid by the State Treasurer upon warrants issued by such department, which warrants shall be issued upon requisitions signed by the Executive Director of the Department of Finance and Administration or his designee.

(4) Any amounts allocated to an institution of higher learning that are in excess of that needed to complete the projects at such institution of higher learning that are described in subsection (1) of this section may be used for general repairs and renovations of the institution of higher learning to which such amount is allocated.

SECTION 3. (1) (a) A special fund, to be designated as the "1999 Community and Junior Colleges Capital Improvements Fund" is created within the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. 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 may not be used or expended for any purpose except as authorized under this act.

(b) Monies deposited into the fund shall be disbursed, in the discretion of the Department of Finance and Administration, to pay the costs of construction of new facilities and addition to or renovation of existing facilities, or community and junior college campuses as recommended by the State Board of Community and Junior Colleges. The amount to be expended at each community and junior college is as follows:

Coahoma . . . . . . . . . . . . . . . . $ 626,750.00

Copiah-Lincoln. . . . . . . . . . . . . 881,750.00

East Central. . . . . . . . . . . . . . 806,000.00

East Mississippi. . . . . . . . . . . . 710,000.00

Hinds . . . . . . . . . . . . . . . . . 1,735,250.00

Holmes. . . . . . . . . . . . . . . . . 857,000.00

Itawamba. . . . . . . . . . . . . . . . 966,500.00

Jones . . . . . . . . . . . . . . . . . 1,258,250.00

Meridian. . . . . . . . . . . . . . . . 881,000.00

Mississippi Delta . . . . . . . . . . . 923,000.00

Mississippi Gulf Coast. . . . . . . . . 1,561,250.00

Northeast Mississippi . . . . . . . . . 985,250.00

Northwest Mississippi . . . . . . . . . 1,123,250.00

Pearl River . . . . . . . . . . . . . . 936,500.00

Southwest Mississippi . . . . . . . . . 748,250.00

(2) Amounts deposited into such special fund shall be disbursed to pay the costs of projects described in subsection (1) of this section. Promptly after the commission has certified, by resolution duly adopted, that the projects described in subsection (1) shall have been completed, abandoned, or cannot be completed in a timely fashion, any amounts remaining in such special fund shall be applied to pay debt service on the bonds issued under Sections 1 through 18 of this act, in accordance with the proceedings authorizing the issuance of such bonds and as directed by the commission.

(3) The Department of Finance and Administration, acting through the Bureau of Building, Grounds and Real Property Management, is expressly authorized and empowered to receive and expend any local or other source funds in connection with the expenditure of funds provided for in this section. The expenditure of monies deposited into the special fund shall be under the direction of the Department of Finance and Administration, and such funds shall be paid by the State Treasurer upon warrants issued by such department, which warrants shall be issued upon requisitions signed by the Executive Director of the Department of Finance and Administration or his designee.

SECTION 4. (1) The commission, at one (1) time, or from time to time, may declare by resolution the necessity for issuance of general obligation bonds of the State of Mississippi to provide funds for all costs incurred or to be incurred for the purposes described in Sections 2 and 3 of this act. Upon the adoption of a resolution by the Department of Finance and Administration, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this section, the Department of Finance and Administration shall deliver a certified copy of its resolution or resolutions to the commission. Upon receipt of such resolution, the commission, in its discretion, may 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 total amount of bonds issued under Sections 1 through 18 of this act shall not exceed Seventy-six Million Eight Hundred Thousand Dollars ($76,800,000.00).

(2) The proceeds of the bonds issued pursuant to Sections 1 through 18 of this act shall be deposited into the following special funds in not more than the following amounts:

(a) The 1999 IHL Capital Improvements Fund created pursuant to Section 2 of this act $61,800,000.00.

(b) The 1999 Community and Junior Colleges Capital Improvements Fund created pursuant to Section 3 of this

act $15,000,000.00.

(3) Any investment earnings on amounts deposited into the special funds created in Sections 2 and 3 of this act shall be used to pay debt service on bonds issued under Sections 1 through 18 of this act, in accordance with the proceedings authorizing issuance of such bonds.

SECTION 5. The principal of and interest on the bonds authorized under Sections 1 through 18 of this act shall be payable in the manner provided in this section. Such bonds shall bear such date or dates, be in such denomination or denominations, bear interest at such rate or rates (not to exceed the limits set forth in Section 75-17-101, Mississippi Code of 1972), be payable at such place or places within or without the State of Mississippi, shall mature absolutely at such time or times not to exceed twenty-five (25) years from date of issue, be redeemable before maturity at such time or times and upon such terms, with or without premium, shall bear such registration privileges, and shall be substantially in such form, all as shall be determined by resolution of the commission.

SECTION 6. The bonds authorized by Sections 1 through 18 of this act shall be signed by the chairman of the commission, or by his facsimile signature, and the official seal of the commission shall be affixed thereto, attested by the secretary of the commission. The interest coupons, if any, to be attached to such bonds may be executed by the facsimile signatures of such officers. Whenever any such bonds shall have been signed by the officials designated to sign the bonds who were in office at the time of such signing but who may have ceased to be such officers before the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the signatures of such officers upon such bonds and coupons shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially signing such bonds had remained in office until their delivery to the purchaser, or had been in office on the date such bonds may bear. However, notwithstanding anything herein to the contrary, such bonds may be issued as provided in the Registered Bond Act of the State of Mississippi.

SECTION 7. All bonds and interest coupons issued under the provisions of Sections 1 through 18 of this act have all the qualities and incidents of negotiable instruments under the provisions of the Uniform Commercial Code, and in exercising the powers granted by Sections 1 through 18 of this act, the commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.

SECTION 8. The commission shall act as the issuing agent for the bonds authorized under Sections 1 through 18 of this act, prescribe the form of the bonds, advertise for and accept bids, issue and sell the bonds so authorized to be sold, pay all fees and costs incurred in such issuance and sale, and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The commission is authorized and empowered to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under Sections 1 through 18 of this act from the proceeds derived from the sale of such bonds. The commission shall sell such bonds on sealed bids at public sale, and for such price as it may determine to be for the best interest of the State of Mississippi, but no such sale shall be made at a price less than par plus accrued interest to the date of delivery of the bonds to the purchaser. All interest accruing on such bonds so issued shall be payable semiannually or annually; however, the first interest payment may be for any period of not more than one (1) year.

Notice of the sale of any such bonds shall be published at least one (1) time, not less than ten (10) days before the date of sale, and shall be so published in one or more newspapers published or having a general circulation in the City of Jackson, Mississippi, and in one or more other newspapers or financial journals with a national circulation, to be selected by the commission.

The commission, when issuing any bonds under the authority of Sections 1 through 18 of this act, may provide that bonds, at the option of the State of Mississippi, may be called in for payment and redemption at the call price named therein and accrued interest on such date or dates named therein.

SECTION 9. The bonds issued under the provisions of Sections 1 through 18 of this act are general obligations of the State of Mississippi, and for the payment thereof the full faith and credit of the State of Mississippi is irrevocably pledged. If the funds appropriated by the Legislature are insufficient to pay the principal of and the interest on such bonds as they become due, then the deficiency shall be paid by the State Treasurer from any funds in the State Treasury not otherwise appropriated. All such bonds shall contain recitals on their faces substantially covering the provisions of this section.

SECTION 10. Upon the issuance and sale of bonds under the provisions of Sections 1 through 18 of this act, the commission shall transfer the proceeds of any such sale or sales to the special funds created in Sections 2 and 3 of this act in the amounts provided for in Section 4(2) of this act. The proceeds of such bonds shall be disbursed solely upon the order of the Department of Finance and Administration under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds.

SECTION 11. The bonds authorized under Sections 1 through 18 of this act may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions and things which are specified or required by Sections 1 through 18 of this act. Any resolution providing for the issuance of bonds under the provisions of Sections 1 through 18 of this act shall become effective immediately upon its adoption by the commission, and any such resolution may be adopted at any regular or special meeting of the commission by a majority of its members.

SECTION 12. The bonds authorized under the authority of Sections 1 through 18 of this act may be validated in the Chancery Court of the First Judicial District of Hinds County, Mississippi, in the manner and with the force and effect provided by Chapter 13, Title 31, Mississippi Code of 1972, for the validation of county, municipal, school district and other bonds. The notice to taxpayers required by such statutes shall be published in a newspaper published or having a general circulation in the City of Jackson, Mississippi.

SECTION 13. Any holder of bonds issued under the provisions of Sections 1 through 18 of this act or of any of the interest coupons pertaining thereto may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights granted under Sections 1 through 18 of this act, or under such resolution, and may enforce and compel performance of all duties required by Sections 1 through 18 of this act to be performed, in order to provide for the payment of bonds and interest thereon.

SECTION 14. All bonds issued under the provisions of Sections 1 through 18 of this act shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi, and such bonds shall be legal securities which may be deposited with and shall be received by all public officers and bodies of this state and all municipalities and political subdivisions for the purpose of securing the deposit of public funds.

SECTION 15. Bonds issued under the provisions of Sections 1 through 18 of this act and income therefrom shall be exempt from all taxation in the State of Mississippi.

SECTION 16. The proceeds of the bonds issued under Sections 1 through 18 of this act shall be used solely for the purposes herein provided, including the costs incident to the issuance and sale of such bonds.

SECTION 17. The State Treasurer is authorized, without further process of law, to certify to the Department of Finance and Administration the necessity for warrants, and the Department of Finance and Administration is authorized and directed to issue such warrants, in such amounts as may be necessary to pay when due the principal of, premium, if any, and interest on, or the accreted value of, all bonds issued under Sections 1 through 18 of this act; and the State Treasurer shall forward the necessary amount to the designated place or places of payment of such bonds in ample time to discharge such bonds, or the interest thereon, on the due dates thereof.

SECTION 18. Sections 1 through 18 of this act shall be deemed to be full and complete authority for the exercise of the powers herein granted, but this act shall not be deemed to repeal or to be in derogation of any existing law of this state.

SECTION 19. Section 2, Chapter 538, Laws of 1997, as amended by Chapter 529, Laws of 1998, is amended as follows:

Section 2. (1) (a) A special fund, to be designated as the "1997 IHL and Community and Junior Colleges Capital Improvements Fund," is created within the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. 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 may not be used or expended for any purpose except as authorized under Sections 2 through 17 of this act.

(b) Monies deposited into the fund shall be disbursed, in the discretion of the Department of Finance and Administration, to pay the costs of capital improvements, renovation and/or repair of existing facilities, furnishings and/or equipping facilities for agencies or their successors as hereinafter described:

NAME PROJECT AMOUNT

INSTITUTIONS OF HIGHER LEARNING $ 75,300,000.00

Alcorn State University $ 5,950,000.00

Construction of a

fire station. . . . . . .$ 700,000.00

Renovations to Revels Hall . .$ 3,000,000.00

Purchase of equipment and

furniture for the

Extension Building . . . $ 1,000,000.00

General repairs and

renovations and purchase

of generators . . . . . .$ 1,250,000.00

Delta State University $ 5,500,000.00

Phase I of construction of

a Physical Education and

Physical Fitness Center .$ 4,000,000.00

General repairs and

renovations . . . . . . .$ 1,500,000.00

Jackson State University $ 12,100,000.00

Phase II of renovations to

Just Hall . . . . . . . .$ 5,000,000.00

Preplanning for School of

Business building . . . .$ 100,000.00

Construction of transitional

student housing . . . . $ 7,000,000.00

Mississippi University for Women $ 5,500,000.00

Renovation of Orr Hall, Columbus

Hall and Shattuck Hall and

general repairs and

renovations . . . . . . .$ 5,500,000.00

Mississippi State University $ 12,750,000.00

Renovations to Hilbun Hall. . $ 4,500,000.00

Historical restoration of

Montgomery Hall to its

original design . . . . $ 5,250,000.00

Construction of a central

cooling plant. . . . . . $ 3,000,000.00

Mississippi State University/

Mississippi Agriculture and

Forestry Experiment Station $ 1,750,000.00

Phase II of construction of

the Central Mississippi

Research and Extension

Building . . . . . . . . $ 1,000,000.00

Phase I of construction of

the Gulf Coast

Research and Extension

Building. . . . . . . . .$ 750,000.00

Mississippi Valley State University $ 5,750,000.00

Phase III of construction of

an Administration

Building . . . . . . . . $ 4,000,000.00

Phase II repair and renovation

of a dining hall and

other repairs . . . . $ 1,750,000.00

University Medical Center . . . . . . . . . . . $ 1,000,000.00

Phase I of restorations to a

classroom facility . . . $ 1,000,000.00

University of Mississippi . . . . . . . . . . . $ 13,000,000.00

Phase III of restorations of

the Lyceum Building . . .$ 4,000,000.00

Matching funds for

Biological Field

Station grant . . . . . .$ 1,500,000.00

Renovations and repairs,

furniture, and/or equipment

for the following buildings:

Faser Hall, Paul B. Johnson

Commons, School of Education

Building, Old Chemistry

Building, Conner Hall,

Bondurant Hall, Fulton Chapel

and Turner Center . . . .$ 7,500,000.00

University of Southern Mississippi $ 9,000,000.00

Completion of renovations of

the Walker Science

Building . . . . . . . . $ 3,000,000.00

Food Service Facility

Addition and renovation

to University Union

Building . . . . . . . . $ 5,000,000.00

High Performance Advanced

Visualization Center at the

John C. Stennis Center . . . $ 1,000,000.00

University of Southern Mississippi/

Gulf Coast Research Lab $ 250,000.00

Repairs and renovations to

campus facilities . . . .$ 250,000.00

University of Southern Mississippi/

Gulf Park Campus $ 250,000.00

Repairs and renovations to

campus facilities . . . $ 250,000.00

Mississippi School for

Mathematics and Science $ 1,000,000.00

University of Mississippi

Advanced Education Center

in Tupelo $ 1,500,000.00

Site development and road

system paving for the Tupelo

Regional Education Park

and equipment for the Advanced

Education Center. . . . . $ 1,500,000.00

COMMUNITY AND JUNIOR COLLEGES $ 25,000,000.00

Coahoma. . . . . . . . . .$ 1,075,069.00

Copiah-Lincoln . . . . . . 1,446,046.00

East Central . . . . . . . 1,262,196.00

East Mississippi . . . . . 1,146,061.00

Hinds . . . . . . . . . . 2,871,705.00

Holmes . . . . . . . . . . 1,397,990.00

Itawamba . . . . . . . . . 1,621,523.00

Jones . . . . . . . . . . 2,092,252.00

Meridian . . . . . . . . . 1,505,388.00

Mississippi Delta . . . . 1,529,416.00

Mississippi Gulf Coast . . 2,674,749.00

Northeast Mississippi . . 1,723,097.00

Northwest Mississippi . . 1,868,357.00

Pearl River . . . . . . . 1,544,707.00

Southwest Mississippi. . . 1,241,444.00

The community and junior college funds may be used for construction of new facilities and additions to or renovation of existing facilities on community and junior college campuses as recommended by the State Board for Community and Junior Colleges. The amount to be expended at each institution is as set out above.

(2) Amounts deposited into such special fund shall be disbursed to pay the costs of projects described in subsection (1) of this section. Promptly after the commission has certified, by resolution duly adopted, that the projects described in subsection (1) shall have been completed, abandoned, or cannot be completed in a timely fashion, any amounts remaining in such special fund shall be applied to pay debt service on the bonds issued under Sections 2 through 17 of this act, in accordance with the proceedings authorizing the issuance of such bonds and as directed by the commission.

(3) The Department of Finance and Administration, acting through the Bureau of Building, Grounds and Real Property Management, is expressly authorized and empowered to receive and expend any local or other source funds in connection with the expenditure of funds provided for in this section. The expenditure of monies deposited into the special fund shall be under the direction of the Department of Finance and Administration, and such funds shall be paid by the State Treasurer upon warrants issued by such department, which warrants shall be issued upon requisitions signed by the Executive Director of the Department of Finance and Administration or his designee.

(4) The Department of Finance and Administration is authorized to pay for construction, repair, renovation, furnishing and equipping of facilities and the purchase of real property.

SECTION 20. This act shall take effect and be in force from and after its passage.