House Bill 1391

AN ACT TO AUTHORIZE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO TAKE ACTIONS IT DETERMINES TO BE APPROPRIATE IN ORDER TO PRESERVE THE STATE'S INTEREST IN CERTAIN AGRIBUSINESS ENTERPRISE PROJECTS AND ASSETS OF SUCH PROJECTS FOR WHICH THE STATE ENTERED INTO A LOAN GUARANTY OR OTHER AGREEMENT ON BEHALF OF UNDER THE EMERGING CROPS PROGRAM; TO PROVIDE THAT SUCH ACTIONS INCLUDE ACQUIRING, MARKETING, PROMOTING AND CONVEYING, SELLING, LEASING OR OTHERWISE TRANSFERRING OR DISPOSING OF SUCH PROJECT AND ASSETS; TO AUTHORIZE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO ACQUIRE SUCH PROJECT AND ASSETS FROM ANY ENTITY AND IN ANY MANNER IT DETERMINES TO BE APPROPRIATE AND TO CONVEY, SELL, LEASE OR OTHERWISE TRANSFER OR DISPOSE OF SUCH PROJECT AND ASSETS IN A SIMILAR MANNER; TO CREATE A SPECIAL FUND IN THE STATE TREASURY FROM WHICH THE MISSISSIPPI DEVELOPMENT AUTHORITY MAY EXPEND MONIES FOR SUCH PURPOSES; TO TRANSFER $5,000,000.00 FROM THE MISSISSIPPI LAND, WATER AND TIMBER RESOURCES FUND TO THE SPECIAL FUND CREATED IN THIS ACT; TO AMEND SECTIONS 57-1-55 AND 69-46-7, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT.

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

SECTION 1. (1) For the purposes of this section, the following terms shall have the meanings ascribed in this section unless the context clearly indicates otherwise:

(a) "MDA" means the Mississippi Development Authority.

(b) "Project" means any agribusiness enterprise for which the state, acting through the MDA, entered into a loan guaranty or other agreement on behalf of under Section 69-2-13(3)(b) and any assets of or related to the project for which the state has an interest by reason of such loan guaranty or other agreement.

(2) (a) There is hereby created in the State Treasury a special fund which shall consist of funds transferred to the fund under this act or otherwise made available by the Legislature in any manner and funds from any other source designated for deposit into such fund. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any investment earnings or interest earned on amounts in the fund shall be deposited to the credit of the fund. Monies in the fund shall be used by the MDA for the purposes provided in this section.

(b) The MDA may use monies in the special fund for the purpose of defraying costs incurred by the MDA in order to preserve the project and all or any assets of or related to the project for which the state has an interest by reason of its loan guaranty or any other agreement on behalf of the project. Such costs include, but are not limited to, (i) paying to a bank any interest accrued or that will accrue on the loan for which the state provided a guaranty or similar agreement; (ii) expenses necessary to preserve the operational integrity of the project, including, but not limited to, maintenance and security services, electricity and other utilities, regardless of whether such expenses are for past services or for ongoing and future services; (iii) reimbursing the bank for costs incurred by the bank in preserving the project; (iv) marketing and promoting the project and conveying, selling, leasing or otherwise transferring or disposing of the project and all or any assets of or related to the project for which the state has an interest by reason of its loan guaranty or any other agreement on behalf of the project; (iv) negotiating settlements for contracts regarding construction of the project and other contracts as determined by the MDA; and (v) other purposes determined by the MDA to be appropriate under this section.

(c) In addition to the authority provided in paragraph (b) of this subsection, the MDA may take any action it determines to be appropriate in order to preserve, acquire, market, promote, acquire, and/or convey, sell, lease or otherwise transfer or dispose of the project and any or all of the assets of or related to the project for which the state has an interest by reason of its loan guaranty or any other agreement. The MDA may acquire such project and assets from any entity, in any manner, and upon any terms and conditions it determines to be appropriate, and it may convey, sell, lease or otherwise transfer or dispose of such project and assets in a similar manner.

(d) The MDA shall file a report with the Secretary of the Senate and the Clerk of the House of Representatives not later than July 1, 2005, and not later than the first day of each month thereafter describing all actions taken by the MDA under this section.

SECTION 2. The State Treasurer shall transfer to the special fund created in Section 1(2) of this act, Five Million Dollars ($5,000,000.00) from the Mississippi Land, Water and Timber Resources Fund created in Section 69-46-7.

SECTION 3. Section 57-1-55, Mississippi Code of 1972, is amended as follows:

57-1-55. (1) The Mississippi Development Authority shall have the following general powers and duties: To develop and manage programs which enhance the climate for economic growth through assistance to private sector businesses, local communities and individuals, and through an extensive national and international marketing effort.

(2) The Mississippi Development Authority shall have the following general powers and duties with respect to economic development:

(a) To plan, supervise and direct an active program of solicitation of industries to locate within the state;

(b) To prepare, maintain and disseminate information which is needed by companies in evaluating site locations;

(d) To encourage new or expanding industries, which will add to the economy, to locate within the state;

(e) To maintain a coordinated liaison function with other development groups, including state and federal agencies, and planning and development districts, utility companies, chambers of commerce and railroads;

(f) To assist communities and counties within the state in preparation for economic growth;

(g) To assist new and existing business and industry and encourage their development and expansion;

(h) To plan and conduct a nationwide advertising program promoting the state to prospective industry. Any contract entered into for such purposes shall be advertised, bid and accepted in accordance with the same procedure as prescribed for the advertisement and acceptance of bids for the purchase of commodities and contracts for public purchases under Chapter 7, Title 31, Mississippi Code of 1972;

(i) To work with economic development agencies of the federal government in areas of industrial development and provide information to industrial prospects regarding the availability of federal funds and assistance;

(j) To work with the Department of Corrections, pursuant to the provisions of Section 47-5-501 et seq., in identifying and evaluating acceptable industries and businesses and in acting as an agent of the Department of Corrections by communicating with such concerns and aggressively soliciting their participation in the Correctional Industries Work Program;

(k) To perform related work as required;

(l) To disseminate information about financial and other programs of the Mississippi Development Authority that will assist in the creation or expansion of industries processing wood products in this state;

(m) To market processed and raw agricultural products domestically and abroad;

(n) To aid in the establishment of business incubation centers by private business interests, not for profit corporations, and/or governmental entities. The department may provide funds by contract for the establishment of business incubation centers and may contract for space in which business incubation centers will be located. Business incubation centers are defined as facilities and support services that encourage the establishment of successful small businesses by providing a short-term sheltered environment. The department may solicit and accept grants and other financial aid or support from private or public sources to aid in the development of business incubation centers. In addition, advice and assistance to established business incubation centers may be provided by the department; and

(o) To employ licensed real estate brokers and appraisers necessary for the industrial development of any real estate under the ownership or control of the Mississippi Development Authority. Any contract entered into for such purposes shall be advertised, bid and accepted in accordance with the same procedure as prescribed for the advertisement and acceptance of bids for the purchase of commodities and contracts for public purchases under Chapter 7, Title 31, Mississippi Code of 1972.

(p) To take any action authorized under Section 1 of House Bill No. 1391, 2005 Regular Session, or as otherwise may be provided by law.

SECTION 4. Section 69-46-7, Mississippi Code of 1972, is amended as follows:

69-46-7. (1) (a) The Mississippi Land, Water and Timber Resources Board may accept and expend funds appropriated or otherwise made available by the Legislature and funds from any other source in order to carry out the provisions of the Mississippi Land, Water and Timber Resources Act. Such funds shall be deposited into a special fund hereby established in the State Treasury to be known as the "Mississippi Land, Water and Timber Resources Fund." Unexpended amounts derived from bond proceeds or private funds, or both, remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any investment earnings or interest earned on such amounts in the fund shall be deposited to the credit of the fund. All other unexpended amounts remaining in the fund at the end of a fiscal year shall lapse into the State General Fund. Five Million Dollars ($5,000,000.00) of the monies in the fund shall be transferred to the special fund created in Section 1 of House Bill No. 1391, 2005 Regular Session, as provided in Section 2 of House Bill No. 1391, 2005 Regular Session. The board may provide to the Mississippi Department of Agriculture and Commerce not more than Two Hundred Fifty Thousand Dollars ($250,000.00), in the aggregate, of monies in the fund that are derived from proceeds of bonds issued under Sections 1 through 16 ofChapter 538, Laws of 2001, and/or Sections 1 through 16 of Chapter 542, Laws of 2002, for the purpose of providing additional funds to defray costs incurred by the department in assisting the board in carrying out the provisions of the Mississippi Land, Water and Timber Resources Act. However, the Mississippi Department of Agriculture and Commerce may not use any portion of such funds for the purpose of hiring any person as an employee as defined in Section 25-3-91(c). The Mississippi Department of Agriculture may escalate its budget and expend such funds, when provided by the board, in accordance with rules and regulations of the Department of Finance and Administration in a manner consistent with the escalation of federal funds. The board may provide to the Mississippi Development Authority not more than Two Hundred Fifty Thousand Dollars ($250,000.00), in the aggregate, of monies in the fund that are derived from proceeds of bonds issued under Sections 1 through 16 of Chapter 538, Laws of 2001, and/or Sections 1 through 16 of Chapter 542, Laws of 2002, for the purpose of providing additional funds to defray costs incurred by the Mississippi Development Authority in assisting the board in carrying out the provisions of the Mississippi Land, Water and Timber Resources Act. However, the Mississippi Development Authority may not use any portion of such funds for the purpose of hiring any person as an employee as defined in Section 25-3-91(c). The Mississippi Development Authority may escalate its budget and expend such funds, when provided by the board, in accordance with rules and regulations of the Department of Finance and Administration in a manner consistent with the escalation of federal funds.

(b) (i) The Mississippi Land, Water and Timber Resources Board may provide to the Mississippi Department of Agriculture and Commerce not more than One Hundred Twenty-five Thousand Dollars ($125,000.00), in the aggregate, of monies in the fund that are derived from proceeds of bonds issued under Sections 1 through 16 of Chapter 505, Laws of 2003, and One Hundred Twenty-five Thousand Dollars ($125,000.00), in the aggregate, of monies in the fund that are derived from proceeds of bonds issued under Sections 72 through 87 of Chapter 1, Laws of 2004 Third Extraordinary Session, for the purpose of providing additional funds to defray costs incurred by the department in assisting the board in carrying out the provisions of the Mississippi Land, Water and Timber Resources Act. However, the Mississippi Department of Agriculture and Commerce may not use any portion of such funds for the purpose of hiring any person as an employee as defined in Section 25-3-91(c). The Mississippi Department of Agriculture and Commerce may escalate its budget and expend such funds, when provided by the board, in accordance with rules and regulations of the Department of Finance and Administration in a manner consistent with the escalation of federal funds.

(ii) The Mississippi Land, Water and Timber Resources Board may provide to the Mississippi Development Authority not more than One Hundred Twenty-five Thousand Dollars ($125,000.00), in the aggregate, of monies in the fund that are derived from proceeds of bonds issued under Sections 1 through 16 of Chapter 505, Laws of 2003, and One Hundred Twenty-five Thousand Dollars ($125,000.00), in the aggregate, of monies in the fund that are derived from proceeds of bonds issued under Sections 72 through 87 of Chapter 1, Laws of 2004 Third Extraordinary Session, for the purpose of providing additional funds to defray costs incurred by the Mississippi Development Authority in assisting the board in carrying out the provisions of the Mississippi Land, Water and Timber Resources Act. However, the Mississippi Development Authority may not use any portion of such funds for the purpose of hiring any person as an employee as defined in Section 25-3-91(c). The Mississippi Development Authority may escalate its budget and expend such funds, when provided by the board, in accordance with rules and regulations of the Department of Finance and Administration in a manner consistent with the escalation of federal funds.

(iii) The Mississippi Land, Water and Timber Resources Board may provide to the Department of Audit not more than Fifty Thousand Dollars ($50,000.00), in the aggregate, of monies in the fund that are derived from proceeds of bonds issued under Sections 1 through 16 of Chapter 505, Laws of 2003, and Fifty Thousand Dollars ($50,000.00), in the aggregate, of monies in the fund that are derived from proceeds of bonds issued under Sections 72 through 87 of Chapter 1, Laws of 2004 Third Extraordinary Session, for the purpose of providing additional funds to defray costs incurred by the department in assisting the board in carrying out the provisions of the Mississippi Land, Water and Timber Resources Act. However, the Department of Audit may not use any portion of such funds for the purpose of hiring any person as an employee as defined in Section 25-3-91(c). The Department of Audit may escalate its budget and expend such funds, when provided by the board, in accordance with rules and regulations of the Department of Finance and Administration in a manner consistent with the escalation of federal funds.

(2) The Mississippi Land, Water and Timber Resources Board shall set aside One Million Dollars ($1,000,000.00) of the monies in the Mississippi Land, Water and Timber Resources Fund that are derived from proceeds of bonds issued under Sections 1 through 16 of Chapter 505, Laws of 2003, for the purpose of providing funds to the Mississippi Department of Agriculture and Commerce for use in making payments to ethanol producers under Section 69-51-5 during the state fiscal year beginning July 1, 2003, and ending June 30, 2004. Any monies set aside which are not used for such purposes during the fiscal year shall no longer be set aside for such purposes after the end of the fiscal year. In addition, if the Commissioner of Agriculture and Commerce determines during such fiscal year that no ethanol producer will be eligible for such payments during the fiscal year, the commissioner shall inform the board of his determination and the monies set aside shall no longer be set aside for such purposes. The Mississippi Department of Agriculture and Commerce may escalate its budget and expend funds, when provided by the board under this subsection (2), in accordance with rules and regulations of the Department of Finance and Administration in a manner consistent with the escalation of federal funds.

(3) In anticipation of the issuance of bonds authorized for the purpose of providing funds for the Mississippi Land, Water and Timber Resources Fund, the State Bond Commission is authorized to negotiate and enter into any purchase, loan, credit or other agreement with any bank, trust company or other lending institution or to issue and sell interim notes for the purpose of carrying out the provisions of the Mississippi Land, Water and Timber Resources Act. All borrowings made under this subsection (3) shall be evidenced by notes of the State of Mississippi, which shall be issued from time to time, for such amounts, in such form and in such denomination and subject to such terms and conditions of sale and issuance, prepayment or redemption and maturity, rate or rates of interest not to exceed the maximum rate authorized for bonds in Section 75-17-101, and time of payment of interest as the State Bond Commission shall agree to in such agreement. Such notes shall constitute general obligations of the State of Mississippi, and shall be backed by the full faith and credit of the state. Such notes may also be issued for the purpose of refunding previously issued notes. No note shall mature more than three (3) years following the date of its issuance. The State Bond Commission is authorized to provide for the compensation of any purchaser of the notes by payment of a fixed fee or commission and for all other costs and expenses of issuance and service, including paying agent costs. Such costs and expenses may be paid from the proceeds of the notes. Borrowings made under the provisions of this subsection (3) shall not exceed the aggregate sum of Five Million Dollars ($5,000,000.00) outstanding at any one time.

SECTION 5. This act shall take effect and be in force from and after its passage.