MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Hewes, Gollott, Woodfield, Cuevas, Moffatt, Robertson, Dickerson, Lee, Horhn

AN ACT TO PROVIDE FOR THE ISSUANCE OF $20,000,000.00 IN STATE GENERAL OBLIGATION BONDS TO ASSIST IN FUNDING IMPROVEMENTS TO RELOCATED/RECONSTRUCTED MISSISSIPPI 67 BETWEEN U.S. 49 AND I-110 AND TO PROVIDE THAT SUCH BONDS MAY BE ISSUED ONLY IF A MASTER PLANNED COMMUNITY INTENDS TO LOCATE IN CLOSE PROXIMITY TO SUCH HIGHWAY; TO AMEND SECTIONS 65-4-3 AND 65-4-5, MISSISSIPPI CODE OF 1972, TO AMEND THE ECONOMIC DEVELOPMENT HIGHWAY ACT TO REVISE THE DEFINITION OF THE TERM "HIGH ECONOMIC BENEFIT PROJECT" TO INCLUDE CERTAIN PLANNED COMMUNITIES; TO REVISE THE TERM "PRIVATE COMPANY" TO INCLUDE HOSPITAL DEVELOPERS OF CERTAIN PLANNED COMMUNITIES; TO AMEND SECTION 65-4-25, MISSISSIPPI CODE OF 1972, AS AMENDED BY SECTION 1 OF SENATE BILL NO. 3100, 1999 REGULAR SESSION, TO PROVIDE THAT OF THE BONDS ISSUED UNDER THE ECONOMIC DEVELOPMENT HIGHWAY ACT, $7,000,000.00 SHALL BE UTILIZED FOR CERTAIN HIGH ECONOMIC BENEFIT PROJECTS; AND FOR RELATED PURPOSES.

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

SECTION 1. As used in Sections 1 through 17 of this act, the words and phrases used herein shall have meanings as follows, unless the context clearly indicates a different meaning:

(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) "Commission" means the State Bond Commission.

(c) "Project" means a master planned community consisting of an integrated commercial, industrial, recreational, educational, health care and residential development and improvements located on a project site of which not less than fifty percent (50%) of the housing units within such residential development is set aside for and devoted to retirees and which development is the product of a long-range, multi-phase development plan combining a complementary mix of land uses representing unifying characteristics and design elements and providing comprehensive planning and logical and staged implementation and development.

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

SECTION 2. A special fund, to be designated the "Mississippi 67 Construction 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, and investment earnings on amounts in the fund shall be deposited into such fund. The expenditure of monies deposited into the fund shall be under the direction of the Department of Transportation, and such funds shall be paid by the State Treasurer upon warrants issued by the Department of Transportation. Monies deposited into such fund shall be utilized, in combination with funds from other sources, by the Department of Transportation for improvements to relocated/reconstructed Mississippi 67 between U.S. 49 and I-110, including, but not limited to, any necessary redesigning and the construction of interchanges with roads compatible to the design of the project.

SECTION 3. (1) Upon receipt of binding commitments in the form of a letter of intent to locate the project that indicates to the satisfaction of the Department of Transportation that a project will be located in close proximity to Mississippi 67 in Harrison County between U.S. 49 and I-110, the Transportation 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 2 of this act. Upon the adoption of a resolution by the Transportation Commission declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this section, the Transportation Commission 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 amount of bonds issued under this act shall not exceed Twenty Million Dollars ($20,000,000.00).

(2) Any investment earnings on amounts deposited into the special fund created in Section 2 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.

(3) Upon the completion or abandonment of the project described in Section 2 of this act, as evidenced by a resolution adopted by the Transportation Commission certifying that all such projects have been completed or abandoned, the balance, if any, remaining in the Mississippi 67 Construction Fund shall be promptly applied to pay debt service on bonds issued under Sections 1 through 17 of this act, in accordance with the proceedings authorizing the issuance of such bonds.

SECTION 4. The principal of and interest on the bonds authorized under Sections 1 through 17 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), 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 5. The bonds authorized by Sections 1 through 17 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 6. All bonds and interest coupons issued under the provisions of Sections 1 through 17 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 17 of this act, the commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.

SECTION 7. The commission shall act as the issuing agent for the bonds authorized under Sections 1 through 17 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 17 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 17 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 8. The bonds issued under the provisions of Sections 1 through 17 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 9. Upon the issuance and sale of bonds under the provisions of Sections 1 through 17 of this act, the commission shall transfer the proceeds of any such sale or sales to the special fund created in Section 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 10. The bonds authorized under Sections 1 through 17 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 17 of this act. Any resolution providing for the issuance of bonds under the provisions of Sections 1 through 17 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 11. The bonds authorized under the authority of Sections 1 through 17 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 12. Any holder of bonds issued under the provisions of Sections 1 through 17 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 17 of this act, or under such resolution, and may enforce and compel performance of all duties required by Sections 1 through 17 of this act to be performed, in order to provide for the payment of bonds and interest thereon.

SECTION 13. All bonds issued under the provisions of Sections 1 through 17 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 14. Bonds issued under the provisions of Sections 1 through 17 of this act and income therefrom shall be exempt from all taxation in the State of Mississippi.

SECTION 15. The proceeds of the bonds issued under Sections 1 through 17 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 16. 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 17 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 17. Sections 1 through 17 of this act shall be deemed to be full and complete authority for the exercise of the powers therein granted, but Sections 1 through 17 of this act shall not be deemed to repeal or to be in derogation of any existing law of this state.

SECTION 18. Section 65-4-3, Mississippi Code of 1972, is amended as follows:

65-4-3. It is the purpose of this chapter to promote, attract and secure industrial and other significant development in the state through the construction and improvement of highways in areas of the state which demonstrate actual and immediate potential for the creation or expansion of major industry or other significant development which is heavily dependent upon the use of and direct access to primary highways.

SECTION 19. Section 65-4-5, Mississippi Code of 1972, is amended as follows:

65-4-5. (1) The following words when used in this chapter shall have the meanings herein ascribed unless the context otherwise clearly requires:

(a) "Board" means the Mississippi Department of Economic and Community Development;

(b) "Department" means the Mississippi Department of Transportation;

(c) "High economic benefit project" means (i) any new investment by a private company with capital investments in land, buildings, depreciable fixed assets and improvements of at least Fifty Million Dollars ($50,000,000.00); (ii) any new investment of at least Twenty Million Dollars ($20,000,000.00) by a private company having capital investments in this state in land, buildings, depreciable fixed assets and improvements of at least One Billion Dollars ($1,000,000,000.00) in the aggregate; (iii) public investment of at least One Hundred Million Dollars ($100,000,000.00) to take place over a specified period of time and in accordance with a master plan duly adopted by the controlling political subdivision; (iv) any new investments in land, buildings, depreciable fixed assets and improvements by two (2) private companies upon land that is adjacent whenever the new investments of both companies is at least Sixty Million Dollars ($60,000,000.00) in the aggregate, and such new investments by both private companies provide for the employment of at least five hundred (500) employees in the aggregate; * * * (v) any project which would benefit from the construction of any highway bypass which would aid in economic development and would provide an alternate route to avoid an existing route which underpasses a railroad and which would aid in existing or proposed industry; or (vi) any master planned community consisting of an integrated commercial, industrial, recreational, educational, health care and residential development and improvements located on a project site of which not less than fifty percent (50%) of the housing units within such residential development is set aside for and devoted to retirees and which development is the product of a long-range, multi-phase development plan combining a complementary mix of land uses representing unifying characteristics and design elements and providing comprehensive planning and logical and staged implementation and development;

(d) "Political subdivision" means one or more counties or incorporated municipalities in the state, or a state-owned port located in a county bordering on the Gulf of Mexico;

(e) "Private company" means (i) any agricultural, aquacultural, maricultural, processing, distribution, warehousing, manufacturing or research and development enterprise; (ii) any air transportation and maintenance facility, regional shopping mall, hospital, large hotel, resort or movie industry studio; (iii) the federal government with respect to any specific project which meets the criteria established in paragraph (c)(i) of this subsection; * * * (iv) any existing or proposed industry in regard to a project described in paragraph (c)(v) of this subsection; or (v) a developer with respect to any specific project which meets the criteria established in paragraph (c)(vi) of this subsection.

(2) The Mississippi Department of Transportation is hereby authorized to purchase rights-of-way and construct and maintain roads and highways authorized to be constructed pursuant to this chapter.

SECTION 20. Section 65-4-25, Mississippi Code of 1972, as amended by Section 1 of Senate Bill No. 3100, 1999 Regular Session, is amended as follows:

65-4-25. The Mississippi Department of Economic and Community Development, acting through its executive director, is authorized, at one time or from time to time, to declare by resolution the necessity for issuance of negotiable general obligation bonds of the State of Mississippi to provide funds for the Economic Development Highway Fund established in Section 65-4-15, Mississippi Code of 1972. Upon the adoption of a resolution by the Executive Director of the Mississippi Department of Economic and Community Development, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by Sections 65-4-25 through 65-4-45, Mississippi Code of 1972, the executive director shall deliver a certified copy of his resolution or resolutions to the State Bond Commission. Upon receipt of same, the State Bond Commission, in its discretion, shall 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 principal amount of bonds issued under Sections 65-4-25 through 65-4-45, Mississippi Code of 1972, shall not exceed One Hundred Thirty-five Million Dollars ($135,000,000.00) in the aggregate. However, an additional amount of bonds may be issued under Sections 65-4-25 through 65-4-45, Mississippi Code of 1972, in an amount not to exceed Seven Million Dollars ($7,000,000.00), and the proceeds of any such additional bonds issued shall be used to provide funding for a high economic benefit project as defined in Section 65-4-5(1)(c)(vi), Mississippi Code of 1972.

SECTION 21. This act shall take effect and be in force from and after July 1, 1999.