MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Kirby, Thames

AN ACT TO CREATE A NEW CODE SECTION TO BE CODIFIED AS SECTION 31-17-5, MISSISSIPPI CODE OF 1972, TO PROHIBIT THE STATE FROM INCURRING GENERAL OBLIGATION BONDED INDEBTEDNESS IN EXCESS OF 60% OF THE TAX REVENUE COLLECTED BY THE STATE TAX COMMISSION AND DEPOSITED IN THE GENERAL FUND IN ANY ONE OF THE FOUR PRECEDING FISCAL YEARS, WHICHEVER YEAR MIGHT BE HIGHER; TO REQUIRE ALL GENERAL OBLIGATION BONDS TO BE ISSUED AND SOLD BY THE STATE BOND COMMISSION; TO PROHIBIT THE STATE BOND COMMISSION FROM SELLING ANY BONDS WHICH, IF ISSUED OR SOLD, WILL CAUSE THE STATE TO INCUR BONDED INDEBTEDNESS IN EXCESS OF THE LIMITATION PROVIDED FOR IN THIS ACT; TO AUTHORIZE SUCH BONDED INDEBTEDNESS TO BE EXCEEDED UNDER CERTAIN CIRCUMSTANCES; AND FOR RELATED PURPOSES.

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

SECTION 1. The following provision shall be codified as Section 31-17-5, Mississippi Code of 1972:

31-17-5. (1) As used in this section:

(a) "General obligation bonds" means bonds of the State of Mississippi, to the repayment of which, both as to principal and interest, the full faith, credit and taxing power of the State of Mississippi are irrevocably pledged until the principal and interest is paid in full.

(b) "State" means the State of Mississippi and any of its direct agencies, but shall not include political subdivisions and other local districts.

(2) The state shall not issue general obligation bonds in an amount that will cause the state to incur a general obligation bonded indebtedness that is in excess of sixty percent (60%) of the tax revenue collected by the State Tax Commission and deposited into the General Fund in any one (1) of the four (4) preceding fiscal years, whichever year might be higher.

(3) The State Bond Commission shall issue and sell all general obligation bonds. The State Bond Commission shall not issue or sell any general obligation bonds which if issued or sold will cause the state to incur a bonded indebtedness in excess of the limitation provided for in this section.

(4) In case of an emergency, the bonded indebtedness limitation provided for in this section may be exceeded upon adoption of a concurrent resolution by an affirmative vote of three-fourths (3/4) of the elected membership of each house of the Legislature approving a bonded indebtedness in excess of the limitation provided for in this section. Nothing in this subsection shall be construed to authorize the bonded indebtedness of the state to exceed the limitation on bonded indebtedness provided for in Section 115, Mississippi Constitution of 1890.

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