MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Finance

By: Senator(s) Chamberlin

AN ACT TO AMEND SECTION 65-4-5, MISSISSIPPI CODE OF 1972, TO INCLUDE POWER PLANTS WITHIN THE DEFINITION OF PRIVATE COMPANY UNDER THE ECONOMIC DEVELOPMENT HIGHWAY ACT; TO AMEND SECTION 65-4-7, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE UTILIZATION OF ECONOMIC DEVELOPMENT HIGHWAY ACT FUNDS TO CONSTRUCT OR IMPROVE GAS, WATER OR SEWER FACILITIES IN CONNECTION WITH THE CONSTRUCTION OR IMPROVEMENT OF HIGHWAY SEGMENTS UNDER SUCH ACT; TO AMEND SECTIONS 65-4-9, 65-4-11, 65-4-13 AND 65-4-15, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

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

SECTION 1. 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; * * * (v) a developer with respect to any specific project which meets the criteria established in paragraph (c)(vi) of this subsection or (vi) any power plant.

(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 2. Section 65-4-7, Mississippi Code of 1972, is amended as follows:

65-4-7. Any political subdivision desiring the assistance of the state in order to construct or improve any highways or highway segments, or to construct or improve gas, water or sewer facilities in connection with the construction or improvement of such highways or highway segments, the primary purpose of such construction or improvement being to encourage a private company to engage in a high economic benefit project within the geographic boundaries of the political subdivision, may apply to the board for such approval and assistance. The application from the political subdivision shall include, but not be limited to:

(a) A description of the highways or highway segments requested to be constructed or improved;

(b) A description of the gas, water or sewer facilities requested to be constructed or improved;

(c) A certified resolution from the governing authorities of the political subdivision detailing the source and amount of funds which the political subdivision has committed or is willing to commit for construction or improvement of such highways or highway segments or gas, water or sewer facilities;

(d) A certified copy of a signed letter of intent from the private company to the political subdivision describing in detail the high economic benefit project in which it is committed to engage upon construction or improvement of the highways or highway segments or gas, water or sewer facilities within the political subdivision and the proposed timetable for completion of such project;

(e) Demonstration that the private company is financially sound and is likely to fulfill the commitments made in its letter of intent; and

(f) An estimate by the private company of the number, size and weight of motor vehicles and the frequency of travel of such vehicles upon the highways or highway segments requested to be constructed or improved after completion of the project by the private company.

(g) An estimate by the private company of its gas, water and sewer facility needs.

SECTION 3. Section 65-4-9, Mississippi Code of 1972, is amended as follows:

65-4-9. Upon receipt of an application by a political subdivision as provided under Section 65-4-7, Mississippi Code of 1972, the board shall review the application and may approve the application if it determines:

(a) The highways or highway segments or gas, water or sewer facilities for which the political subdivision is requesting assistance in constructing or improving are necessary and essential to ensure adequate and appropriate access to the proposed project or to ensure the gas, water and sewer needs of the proposed project are met for the purpose of encouraging its location within the geographical boundaries of the political subdivision;

(b) The project proposed by the private company meets the definition of a "high economic benefit project" as such term is defined in Section 65-4-5, Mississippi Code of 1972;

(c) The private company has demonstrated financial soundness and appears to have such assets and credit worthiness as to permit it to secure necessary funds to complete the project according to its commitments; and

(d) The costs for the construction or improvement of such highways or highway segments or the gas, water or sewer facilities to be funded hereunder will not exceed the funds available in the Economic Development Highway Fund created by Section 65-4-15, Mississippi Code of 1972.

SECTION 4. Section 65-4-11, Mississippi Code of 1972, is amended as follows:

65-4-11. Before approving any application under this chapter the board shall have the Mississippi Department of Transportation, or the political subdivision, if the political subdivision will have the construction or improvement performed, prepare and submit to it a detailed engineering study and report of all estimated costs associated with the construction and improvement of the highways and highway segments or the gas, water or sewer facilities requested by the application of the political subdivision along with the estimated annual costs necessary to be expended for maintenance of the highways or highway segments. If the political subdivision will have the construction or improvement performed on a state designated highway that will be maintained by the Mississippi Department of Transportation, the board shall not approve the application of such political subdivision for construction and improvement of highways or highway segments until the engineering study of all estimated cost associated with the construction and improvement of the highways and highway segments required in this section has been submitted by the board to the Mississippi Department of Transportation and has been certified by the Transportation Department to the board as proposing construction or improvement of highways and highway segments that meets Transportation Department standards for such work. If the political subdivision will have the construction or improvement performed on a highway that is not on the designated state highway system, the board shall not approve the application of such political subdivision until the engineering study required in this section has been submitted by the board to the Office of State Aid Road Construction and has been certified by the Office of State Aid Road Construction to the board as proposing construction or improvement of highways and highway segments that meets Office of State Aid Road Construction standards for such work.

The Mississippi Department of Transportation or the Office of State Aid Road Construction, as the case may be, may recommend modifications to the location and route of those highways and highway segments proposed in the application of the political subdivision if such modifications are more cost effective and would not have a substantially negative economic impact on the project of the private company.

SECTION 5. Section 65-4-13, Mississippi Code of 1972, is amended as follows:

65-4-13. If, after reviewing the application of the political subdivision and the report of the State Highway Department or political subdivision, the board determines that the application meets the requirements for approval and should be approved, the board shall notify the political subdivision and the department of its approval and contracts may be let. Upon certification by the board that monies currently available in the Economic Development Highway Fund are sufficient to defray the costs of the construction or improvement, then contracts with respect to such work may be executed by the * * * department or political subdivision and work necessary for the construction or improvement of the highways and highway segments or the gas, water or sewer facilities so approved shall commence by the * * * department or political subdivision, as determined by the Department of Economic and Community Development. If the construction or improvement of a highway or highway segment is by a political subdivision, the State Aid Engineer shall have such work inspected periodically during the progress of such construction or improvement to ensure that it meets the standards prescribed in Section 65-4-17, Mississippi Code of 1972. However, no application shall be approved by the board if the total costs for constructing or improving the proposed highways or highway segments or gas, water or sewer facilities to be funded hereunder, according to estimates in the report of the * * * department or political subdivision, will exceed monies currently available in the Economic Development Highway Fund created in Section 65-4-15, Mississippi Code of 1972.

SECTION 6. Section 65-4-15, Mississippi Code of 1972, is amended as follows:

65-4-15. There is hereby established a special fund in the State Treasury to be known as the "Economic Development Highway Fund" which shall consist of such monies as the Legislature shall appropriate thereto or such other monies as the Legislature may designate to be deposited therein. Any monies to the credit of such fund may be expended by the Mississippi Department of Transportation or political subdivision, as appropriate, upon approval of requisitions therefor by the Department of Economic and Community Development for any expenses incurred by the Transportation Department or political subdivision in constructing and improving highways and highway segments or gas, water or sewer facilities which have been approved by the Department of Economic and Community Development under the provisions of this chapter. The Office of State Aid Road Construction shall be entitled to reimbursement from monies in the fund, upon approval by the Department of Economic and Community Development of requisitions therefor by the State Aid Engineer, for the actual expenses incurred by the office in administering and providing engineering services to political subdivisions. Monies remaining unexpended to the credit of such special fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on the investment of monies in the special fund shall be deposited to the credit of the fund.

SECTION 7. This act shall take effect and be in force from and after July 1, 2000.