MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Carlton

AN ACT TO CREATE THE "CHILD CARE FACILITIES DEMONSTRATION PROJECT REVOLVING LOAN FUND"; TO PROVIDE THAT THE MISSISSIPPI DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT SHALL ADMINISTER SUCH FUND AS A REVOLVING FUND FOR THE PURPOSE OF MAKING LOANS TO ASSIST ECONOMIC DEVELOPMENT ORGANIZATIONS IN COOPERATION WITH FIRMS, CORPORATIONS OR OTHER ENTITIES IN BUILDING CHILD CARE FACILITIES IN CERTAIN COUNTIES THROUGH A LOAN PROGRAM WHICH SHALL BE ESTABLISHED AND IMPLEMENTED BY THE DEPARTMENT; TO AUTHORIZE THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE STATE OF MISSISSIPPI IN THE AMOUNT OF THREE MILLION DOLLARS TO FUND THE DEPENDENT CARE FACILITIES REVOLVING LOAN FUND; AND FOR RELATED PURPOSES.

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

SECTION 1. The Legislature finds that in order to support welfare reform and promote economic development in the state, citizens of the state must participate in the work force to the fullest possible extent. One of the immediate concerns facing working families making the transition from welfare to the work force is the need for affordable quality child care available during their working hours. It is the purpose of this act to provide a means whereby employers in conjunction with local economic development organizations can assist employees in addressing their child care needs.

SECTION 2. As used in 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.

(d) "Consortium" means any local business entity or entities participating with the specified economic development organization in a targeted county.

(e) "Department" means the Mississippi Department of Economic and Community Development.

(f) "Economic development organization" means any economic development organization operated in any county and recognized by the Mississippi Department of Economic and Community Development.

SECTION 3. (1) There is created a special fund in the State Treasury to be designated the "Child Care Facilities Demonstration Project Revolving Loan Fund." The fund shall be administered by the department as a revolving fund for the purpose of making loans to assist economic development organizations in cooperation with firms, corporations or other entities in building child care facilities in the state through a loan program which shall be established and implemented by the department. The fund shall consist of the proceeds of bonds issued under this act, all loan repayments, penalties, and other fees and charges accruing to the fund, and any appropriations, donations, gifts, grants or loans which may be made thereto. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund. Any investment earnings on amounts deposited into the fund shall be used to pay debt service on bonds issued under this act.

(2) (a) The department shall have all powers necessary to implement and administer the program established under this section, and the department shall promulgate rules and regulations necessary for the implementation and administration of the program. In developing any such rules and regulations, the department shall ensure that:

(i) Funds provided under the program are used solely for construction-related expenses to establish child care facilities;

(ii) The building design of any facility will allow for other use of the facility should it no longer be used to provide child care;

(iii) The organization applying for assistance has the financial capacity to repay any loan received under the program;

(iv) Facilities established with funds under the program provide programs of child care that exceed the minimum standards established by the Department of Health for the operation of child care facilities;

(v) All facilities established under the program are of the same design, size and specifications as determined by the department;

(vi) Funds provided under the program are available to meet the child care needs of all families, including low-income families;

(vii) The application process used in the program is inclusive and recognizes the viability of both nonprofit and for-profit organizations and affords access to minority owned and/or operated enterprises; and

(viii) Funds provided under the program will be equally distributed throughout the state.

The department shall also require that each application for assistance under the program include the methodology by which an applicant will make child care affordable to employees unable to pay the full cost of such care, bid specifications for both the construction and operation of the facility which shall be in compliance with paragraph (b) of this subsection (2), and a business plan addressing the proposed operation of the facility.

(b) Any economic development organization that receives a loan from the department under this section for assistance in building a child care facility shall contract for the construction of the child care facility and contract for the operation of the child care facility as follows:

(i) The economic development organization shall contract with the lowest and best bidder to provide each of those services, after advertising for competitive sealed bids once each week for two (2) consecutive weeks in a regular newspaper published in the county in which the organization is located. The date published for the bid opening shall not be less than fifteen (15) working days after the last published notice. The notice of intention to let contracts shall state the time and place at which bids will be received, list the contracts to be made or types of services to be performed, and, if all plans and/or specifications are not published, refer to the plans and/or specifications on file. If there is no newspaper published in the county, then the notice shall be given by posting at the courthouse and at two (2) other public places in the county, and also by publication once each week for two (2) consecutive weeks in some newspaper having a general circulation in the county in the manner described in this subparagraph.

(ii) If any economic development organization accepts a bid other than the lowest bid actually submitted, it shall place on its minutes detailed calculations and narrative summary showing that the accepted bid was determined to be the lowest and best bid, including the dollar amount of the accepted bid and the dollar amount of the lowest bid.

(iii) Whenever bids are solicited as required in this paragraph (b) and only one (1) bid is received, the economic development organization may accept the bid if the bid is opened, it is within the funds allocated for the services to be provided, it is responsive to the solicitation and the contractor is capable of performing the contract in accordance with the solicitation.

SECTION 4. (1) The commission, at one 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 Section 3 of this act. Upon the adoption of a resolution by the department, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this section, the department 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 this act shall not exceed Three Million Dollars ($3,000,000.00).

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

SECTION 5. The principal of and interest on the bonds authorized under 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 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 this act have all the qualities and incidents of negotiable instruments under the provisions of the Mississippi Uniform Commercial Code, and in exercising the powers granted by this act, the commission shall not be required to and need not comply with the provisions of the Mississippi Uniform Commercial Code.

SECTION 8. The commission shall act as the issuing agent for the bonds authorized under 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 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 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 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 this act, the commission shall transfer the proceeds of any such sale or sales to the special fund created in Section 3 of this act. The proceeds of such bonds shall be disbursed solely upon the order of the department 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 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 this act. Any resolution providing for the issuance of bonds under the provisions 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 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 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 this act, or under such resolution, and may enforce and compel performance of all duties required by 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 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 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 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 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 2 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. This act shall take effect and be in force from and after its passage.