Senate Bill 3021

AN ACT TO AMEND CHAPTER 909, LOCAL AND PRIVATE LAWS OF 1999, WHICH CREATES THE JACKSON CONVENTION AND VISITORS BUREAU, TO INCREASE THE TAX IMPOSED ON THE PROCEEDS OF SALES OF RESTAURANTS, HOTELS AND MOTELS; TO REVISE THE PURPOSES FOR WHICH THE PROCEEDS OF THE TAX MAY BE USED; TO PROVIDE FOR AN ELECTION ON THE QUESTION OF IMPOSING THE TAX INCREASE; TO EXTEND THE REPEALER ON THE PROVISIONS OF LAW THAT CREATE THE JACKSON CONVENTION AND VISITORS BUREAU AND PRESCRIBE ITS POWERS AND DUTIES; AND FOR RELATED PURPOSES.

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

SECTION 1. Chapter 909, Local and Private Laws of 1999, is amended as follows:

Section 1. As used in this act, the following terms shall have the meanings ascribed to them in this section unless otherwise clearly indicated by the context in which they are used:

(a) "Bureau" means the Jackson Convention and Visitors Bureau.

(b) "Capital City Convention Center" means a convention center located in the City of Jackson, Mississippi.

(d) "Hotel" or "motel" means and includes a place of lodging that at any one time will accommodate transient guests on a daily or weekly basis and that is known to the trade as such, and which is located within the city limits of Jackson, Mississippi. Such terms shall not include a place of lodging with ten (10) or less rental units.

(e) "Mayor" means the Mayor of the City of Jackson, Mississippi.

(f) "Restaurant" means and includes all places where prepared food is sold and whose annual gross proceeds of sales or gross income for the preceding calendar year equals or exceeds One Hundred Thousand Dollars ($100,000.00), and which are located within the city limits of Jackson, Mississippi. For the purpose of calculating gross proceeds of sales or gross income, the sales or income of all establishments owned, operated or controlled by the same person, persons or corporation shall be aggregated.

Section 2. There is hereby created the Jackson Convention and Visitors Bureau to be constituted and appointed as provided in Section 3 of this act.

Section 3. (1) The Jackson Convention and Visitors Bureau shall consist of nine (9) members, who shall be appointed, qualify and take office within thirty (30) days of the enactment of this act, and the appointments to the bureau and the initial terms of the appointments shall be as follows:

(a) Two (2) hotel/motel members representing hotel or motel properties located within the city limits of Jackson, Mississippi, appointed by the Mayor with confirmation by the Council for terms of two (2) and four (4) years, respectively. These members and their successors shall be appointed by the Mayor with confirmation by the Council after being selected from a panel of two (2) names for each membership position submitted by the Central Mississippi Chapter of the Mississippi Hotel and Lodging Association.

(b) Two (2) restaurant members appointed by the Mayor with confirmation by the Council for terms of two (2) and four (4) years, respectively. These members and their successors shall be appointed by the Mayor with confirmation by the Council after being selected from a panel of two (2) names for each membership position submitted by the Jackson Chapter of the Mississippi Restaurant Association.

(c) One (1) member representing the business community in the City of Jackson appointed by the Mayor with confirmation by the Council for a term of two (2) years. This member and his successors shall be appointed by the Mayor with confirmation by the Council after being selected from a panel of two (2) names submitted by the Metro Jackson Chamber of Commerce. The names submitted by the Metro Jackson Chamber of Commerce shall be those of persons who represent businesses located within the city limits of Jackson, Mississippi.

(d) One (1) member representing the arts community in the City of Jackson appointed by the Mayor with confirmation by the Council for a term of two (2) years.

(e) One (1) member representing the education community in the City of Jackson appointed by the Mayor with confirmation by the Council for a term of four (4) years.

(f) One (1) member representing the attractions industry in the City of Jackson appointed by the Mayor with confirmation by the Council for a term of two (2) years.

(g) One (1) at-large member appointed by the Mayor with confirmation by the Council for a term of four (4) years.

(2) (a) All succeeding appointments shall be made for a term of four (4) years from the date of expiration of the initial appointment. Any vacancy which may occur shall be filled by the mayor within ninety (90) days after such vacancy occurs in the same manner as the original appointment and shall be made for the unexpired term. Each member of the bureau shall serve until his successor is appointed and qualified.

(b) No member of the bureau shall be an employee of the City of Jackson or Hinds County. No member of the bureau shall be an elected official.

(3) Any member may be disqualified and removed from office for any one (1) of the following reasons:

(a) Conviction of a felony; or

(b) Failure to attend three (3) consecutive meetings without just cause; or

If a member of the bureau is removed for one of the above reasons, the vacancy shall be filled in the manner prescribed in this section.

Section 4. Before entering upon the duties of the office, each appointed member of the bureau shall enter into and give bond to be approved by the Secretary of State of Mississippi in the sum of Twenty-five Thousand Dollars ($25,000.00) conditioned upon the faithful performance of his duties. Such bond shall be payable to the State of Mississippi and, in the event of a breach thereof, suit may be brought by the State of Mississippi for the benefit of the bureau.

Section 5. When the members of the bureau shall have been appointed and qualified as set forth herein, they shall establish quarters and conduct a meeting after giving not less than ten (10) days' notice of the time and place of such meeting by registered mail, postage prepaid, directed to each appointed member of the bureau at his regular address given the Secretary of State at the time of his qualification and posting bond. At such meeting a quorum shall consist of a majority of the members of the bureau and a majority of those members attending shall elect a president and secretary, both of whom shall be members of the bureau, and adopt such rules and regulations as may govern the time and place for holding subsequent meetings, regular and special, and other rules and regulations not inconsistent with the provisions of this act.

The bureau is further authorized to contract for the employment of personnel, supplies, furnishings and other facilities necessary to administer the affairs and duties of the bureau and to pay for same out of the revenue provided by this act.

Section 6. The bureau shall have jurisdiction and authority over all matters relating to the establishment, promotion and development of tourism and conventions and related matters within the City of Jackson, Mississippi.

The bureau is authorized to contract for the furnishing, equipping and operation of any and all facilities necessary or useful in the promotion of tourism and conventions, to receive and expend, subject to the provisions of this act, revenues from any source.

Section 7. (1) For the purpose of providing funds for the promotion of tourism and conventions, there is hereby levied, assessed and shall be collected from every person engaging in or doing business in the City of Jackson, Mississippi, as specified herein, a tax which may be cited as a "tourist and convention tax," which shall be in addition to all other taxes now imposed, as hereinafter provided.

(2) Such tax shall be one percent (1%) of the gross proceeds of sales of restaurants, hotels and motels, including, but not limited to, sales of beer and alcoholic beverages sold to be consumed on the premises. However, subject to the provisions of Section 8 of this act, such tax may be increased to a rate not to exceed three percent (3%) of such gross proceeds of sales of restaurants, hotels and motels.

(3) Persons liable for the tax imposed herein shall add the amount of tax to the sales price or gross proceeds of sales, and in addition thereto shall collect, insofar as practicable, the amount of the tax due by him from the person receiving the services or goods at the time of payment therefor.

(4) Such tax shall be collected by and paid to the State Tax Commission on a form prescribed by the State Tax Commission, in the same manner that state sales taxes are computed, collected and paid; and the full enforcement provisions and all other provisions of Chapter 65, Title 27, Mississippi Code of 1972, shall apply as necessary to the implementation and administration of this act.

(5) The proceeds of such tax, less three percent (3%) thereof which shall be retained by the State Tax Commission to defray the cost of collection, shall be paid to the city on or before the fifteenth day of the month following the month in which collected by the State Tax Commission. The city, in turn, shall remit the funds to the bureau not later than ten (10) days after receiving the funds from the State Tax Commission.

(6) (a) Except as otherwise provided in paragraph (b) of this subsection, the proceeds of the tax shall not be considered by the city as general fund revenues and shall be dedicated solely for the purpose of carrying out programs and activities which are designated by the Jackson Convention and Visitors Bureau and which are designed to attract conventions and tourists into Jackson, Mississippi.

(b) If the tax increase authorized in Senate Bill No. 3021, 2003 Regular Session, is approved at an election held under the provisions of Section 8(2) of this act, then the proceeds of the tax shall be used in the following manner:

(i) One third (1/3) of the proceeds of the tax shall be dedicated and used solely for the purpose of carrying out programs and activities which are designated by the bureau and which are designed to attract conventions and tourists into the City of Jackson, Mississippi;

(ii) One third (1/3) of the proceeds of the tax shall be dedicated and used as set forth in subparagraph (i) of this paragraph (b), and additionally, for the purpose of paying the cost of administration, operation, repair, maintenance and promotion of the Capital City Convention Center; and

(iii) One third (1/3) of the proceeds of the tax shall be separated from all other funds of the city and shall be dedicated and used solely by the city for the purpose of paying a portion of the construction cost or long-term debt incurred by the city to provide the funds necessary to defray the costs of acquiring land, if necessary, and designing, constructing and equipping the Capital City Convention Center.

(7) As a condition of the receipt of any funds provided by the bureau for the support of any event, the person or organization receiving such funds shall provide the bureau with a written accounting of all expenditures of such funds. Such accounting shall be made available to the public under the provisions of the Mississippi Public Records Act of 1983.

Section 8. (1) (a) Except as otherwise provided in subsection (2) of this section, before the taxes authorized by this act shall be imposed, the governing authorities of the City of Jackson shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of such tax and establishing the date on which this tax initially shall be levied and collected. This date shall be not less than the first day of the second month from the date of adoption of the resolution.

(b) The resolution shall be published in a local newspaper at least twice during the period from the adoption of the resolution to the effective date of the taxation prescribed in this act, with the last publication being made no later than ten (10) days prior to the effective date of such taxation. A certified copy of the resolution shall be furnished to the State Tax Commission at least thirty (30) days prior to the date on which the tax shall be initially levied and collected.

(2) Before the tax rate in effect on the effective date of Senate Bill No.3021, 2003 Regular Session, may be increased, the governing authorities of the City of Jackson shall adopt a resolution declaring their intention to increase the tax, setting forth the amount of the tax increase and the date on which the tax increase initially shall be levied and collected and calling for an election to be held on the question. The date of the election shall be the first Tuesday after the first Monday in November 2003. Notice of the election shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the City of Jackson, with the first publication of the notice to be made not less than twenty-one (21) days before the election and the last publication to be made not more than seven (7) days before the election. At the election, all qualified electors of the City of Jackson may vote, and the ballots used in such election shall have printed thereon a brief statement of the amount and purposes of the proposed tax increase and the words "FOR THE TAX INCREASE" and, on a separate line, "AGAINST THE TAX INCREASE", and the voters shall vote by placing a cross (x) or a check (√) opposite their choice on the proposition. When the results of any such election have been canvassed and certified, the governing authorities may increase the tax beginning on the date set in the resolution, if at least three-fifths (3/5) of the qualified electors who vote in the election vote in favor of the tax increase. At least thirty (30) days before the effective date of the tax increase approved as provided in this subsection (2), the governing authorities shall furnish to the State Tax Commission a certified copy of the resolution evidencing the tax increase.

(3) If the tax increase authorized in Senate Bill No.3021, 2003 Regular Session, is rejected by the qualified electors of the city pursuant to an election held under the provisions of subsection (2) of this section, the currently existing tourism tax, as authorized under Chapter 909, Local and Private Laws of 1999, shall continue in full force and effect.

Section 9. Before the expenditure of funds herein prescribed, a budget reflecting the anticipated receipts and expenditures for such purposes as promotion, advertising and operation shall be approved by the bureau. The first budget of receipts and expenditures shall cover the period beginning with the effective date of the tax and ending with the end of the city's fiscal year, and thereafter the budget shall be on the same fiscal basis as the budget of the City of Jackson.

Section 10. Accounting for receipts and expenditures of the funds herein described shall be the responsibility of the bureau and shall be made separately from the accounting of receipts and expenditures of the general fund and any other funds of the municipality to which it is originally paid. The records reflecting the receipts and expenditures of the funds prescribed herein shall be audited annually by an independent certified public accountant, and such accountant shall make a written report of his audit to the City Clerk of Jackson and to the bureau. The complete audit shall be made available by the bureau to any person who requests a copy, under the provisions of Sections 25-61-1 through 25-61-17, Mississippi Code of 1972, also known as the "Mississippi Public Records Act of 1983." The audit shall be made and completed as soon as practicable after the close of the fiscal year, and the expenses of such audit may be paid from the funds derived pursuant to Section 7 of this act. The State Auditor of Public Accounts shall have the authority to conduct audits of the bureau.

Section 11. The bureau shall not contract with any person who is related to an employee of the bureau within the third degree or who is the spouse of an employee of the bureau, nor shall the bureau contract with a business entity of which an employee of the bureau is an officer, director, owner, partner or employee, or is a holder of more than ten percent (10%) of the fair market value, or from which an employee of the bureau or his relative within the third degree derives more than One Thousand Dollars ($1,000.00) in annual income, or over which an employee of the bureau or his relative within the third degree exercises control.

Section 12. No motor vehicle owned or leased by the bureau shall be operated by any member or employee of the bureau except in the performance of his official duties directly related to the business of the bureau. Any violation of this prohibition may be punished by removal from office or employment.

Section 13. The bureau shall be subject to Sections 25-61-1 through 25-61-17, Mississippi Code of 1972, also known as the "Mississippi Public Records Act of 1983."

Section 14. This act shall take effect and be in force from and after its passage and shall stand repealed from and after July 1, 2028.

SECTION 2. The governing authorities of the City of Jackson shall submit this act, immediately upon approval by the Governor, or upon approval by the Legislature subsequent to a veto, to the Attorney General of the United States or to the United States District Court for the District of Columbia in accordance with the provisions of the Voting Rights Act of 1965, as amended and extended.

SECTION 3. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended.