MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Smith, Horhn, Johnson (19th)

AN ACT TO AMEND SECTION 57-1-307, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT AN ADDITIONAL $10,000,000.00 IN STATE GENERAL OBLIGATION BONDS MAY BE ISSUED UNDER THE LOCAL GOVERNMENTS CAPITAL IMPROVEMENTS REVOLVING LOAN PROGRAM; TO PROVIDE THAT ANY SUCH ADDITIONAL AMOUNT OF BONDS SO ISSUED SHALL BE UTILIZED SOLELY TO PROVIDE LOANS FOR CAPITAL IMPROVEMENTS THAT WOULD QUALIFY FOR THE ISSUANCE OF BONDS WHOSE INTEREST IS EXEMPT FROM INCOME TAXATION UNDER THE PROVISIONS OF THE INTERNAL REVENUE CODE; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 57-1-307, Mississippi Code of 1972, is amended as follows:

57-1-307. (1) The State Bond 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 57-1-303. Upon the adoption of a resolution by the Department of Economic and Community Development, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this section, the Department of Economic and Community Development shall deliver a certified copy of its resolution or resolutions to the State Bond Commission. Upon receipt of such resolution, the State Bond 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 57-1-307 through 57-1-335 shall not exceed Ninety-five Million Dollars ($95,000,000.00); provided, however, that an additional amount of bonds may be issued under Sections 57-1-307 and 57-1-335 in an amount not to exceed Ten Million Dollars ($10,000,000.00), and the proceeds of any such additional amount of bonds so issued shall be utilized solely to provide loans for capital improvements that would qualify for the issuance of bonds whose interest is exempt from income taxation under the provisions of the Internal Revenue Code.

(2) Proceeds from the sale of bonds shall be deposited in the special fund created in Section 57-1-303. Any investment earnings on amounts deposited into the special fund created in Section 57-1-303 shall be used to pay debt service on bonds issued under Sections 57-1-307 through 57-1-335, in accordance with the proceedings authorizing issuance of such bonds.

SECTION 2. This act shall take effect and be in force from and after July 1, 1999.