HB0043_H_Cmte_Amend

Adopted

COMMITTEE AMENDMENT NO 1 PROPOSED TO

House Bill No. 43

BY: Committee

AMEND by inserting the following language after line 200 and renumbering the succeeding section:

"SECTION 3. Section 17-21-51, Mississippi Code of 1972, is amended as follows:

17-21-51. (1) The board of supervisors of any county and the governing authorities of any municipality (both referred to in this article as "governing authority") are hereby authorized and empowered, in their discretion, to borrow money, pursuant to the provisions of this article, for the following purposes:

(a) To accomplish any purpose for which such governing authorities are otherwise authorized by law to issue bonds, notes or certificates of indebtedness; and

(b) To provide working capital, fund debt service payments and other expenditures required by law and pay costs incurred by governing authorities as a result of a natural disaster. Such costs shall include, but not be limited to, debris removal and disposal, overtime wages paid to public employees, and the repair or replacement of public streets, roads and bridges, storm drains, water and sewer facilities and other public buildings, facilities and equipment. Money borrowed pursuant to this paragraph (b) may also be utilized as matching funds for federal or state disaster relief assistance.

(2) Except as otherwise provided in subsection (3) of this section, the total outstanding indebtedness incurred by a governing authority under this article at any one (1) time shall not exceed the greater of one percent (1%) of the assessed value of all taxable property located within the governing authority according to the last completed assessment for taxation or Two Hundred Fifty Thousand Dollars ($250,000.00) or, in the case of the governing authorities located in any county covered by the Presidential Declaration of Major Disaster for the State of Mississippi (FEMA-1604-DR) dated August 29, 2005, the greater of two percent (2%) of the assessed value of all the taxable property located within the governing authority according to the last completed assessment for taxation or Two Hundred Fifty Thousand Dollars ($250,000.00). The total outstanding indebtedness incurred by a governing authority as authorized under this subsection shall be included in computing the statutory limitation upon indebtedness which may be incurred by such governing authority.

(3) However, from and after August 29, 2005, through December 31, 2007, any borrowing pursuant to the provisions of this article by governing authorities located in any county covered by the Presidential Declaration of Major Disaster for the State of Mississippi (FEMA-1604-DR) dated August 29, 2005, shall not constitute an indebtedness of the governing authority within the meaning of this subsection or any other constitutional, statutory or municipal charter limitation or restriction.

SECTION 4. Section 17-21-53, Mississippi Code of 1972, is amended as follows:

17-21-53. (1) Before any money is borrowed under the provisions of this article, the governing authority shall adopt a resolution declaring the necessity for such borrowing and specifying the purpose for which the money borrowed is to be expended, the amount to be borrowed, the date or dates of the maturity thereof, and how such indebtedness is to be evidenced. The resolution shall be certified over the signature of the head of the governing authority.

(2) The borrowing shall be evidenced by negotiable notes or certificates of indebtedness of the governing authority which shall be signed by the head and clerk of such governing authority. All such notes or certificates of indebtedness shall be offered at public sale by the governing authority after not less than ten (10) days' advertising in a newspaper having general circulation within the governing authority. Each sale shall be made to the bidder offering the lowest rate of interest or whose bid represents the lowest net cost to the governing authority; however, the rate of interest shall not exceed that now or hereafter authorized in Section 75-17-101, Mississippi Code of 1972. No such notes or certificates of indebtedness shall be issued and sold for less than par and accrued interest. All notes or certificates of indebtedness shall mature in approximately equal installments of principal and interest over a period not to exceed five (5) years from the dates of the issuance thereof. Principal shall be payable annually, and interest shall be payable annually or semiannually; provided, however, that the first payment of principal or interest may be for any period not exceeding one (1) year. Provided, however, if negotiable notes are outstanding from not more than one (1) previous issue authorized under the provisions of this article, then the schedule of payments for a new or supplementary issue may be so adjusted that the schedule of maturities of all notes or series of notes hereunder shall, when combined, mature in approximately equal installments of principal and interest over a period of five (5) years from the date of the new or supplementary issue, or if a lower interest rate will thereby be secured on notes previously issued and outstanding, a portion of the proceeds of any issue authorized hereunder may be used to refund the balance of the indebtedness previously issued under the authority of this article. Such notes or certificates of indebtedness shall be issued in such form and in such denominations as may be determined by the governing authority and may be made payable at the office of any bank or trust company selected by the governing authority. In such case, funds for the payment of principal and interest due thereon shall be provided in the same manner provided by law for the payment of the principal and interest due on bonds issued by the governing authority.

(3) For the prompt payment of notes or certificates of indebtedness at maturity, both principal and interest, the full faith, credit and resources of the issuing entity are pledged. If the issuing entity does not have available funds in an amount sufficient to provide for the payment of principal and interest according to the terms of such notes or certificates of indebtedness, then the governing authority shall annually levy a special tax upon all of its taxable property at a rate the avails of which will be sufficient to provide such payment. Funds derived from any such tax shall be paid into a sinking fund and used exclusively for the payment of principal of and interest on the notes or certificates of indebtedness. Until needed for expenditure, monies in the sinking fund may be invested in the same manner as the governing authority is elsewhere authorized by law to invest surplus funds.

(4) Notwithstanding the provisions of subsection (2) of this section, from and after August 29, 2005, through December 31, 2007, any governing authority located in any county covered by the Presidential Declaration of Major Disaster for the State of Mississippi (FEMA-1604-DR) dated August 29, 2005, may offer such notes or certificates of indebtedness at private or public sale at such price or prices, at such interest rate or rates, in such manner and at such times as may be agreed to by the governing authority and purchaser of the notes or certificates. Such notes or certificates of indebtedness shall mature over a period of not to exceed ten (10) years from the dates of issuance and may be structured to defer payment of principal and interest for a period not to exceed five (5) years.

SECTION 5. Section 31-15-7, Mississippi Code of 1972, is amended as follows:

31-15-7. Such refunding bonds shall bear such rate or rates of interest as may be determined by the governing body * * *; shall be in such denomination or denominations and form as may be determined by resolution or order of the governing authority; and shall be executed in behalf of the subdivision by such officer or officers thereof as may be determined in such resolution or order. The interest to accrue on such refunding bonds shall be represented by coupons to be attached thereto, which may be executed by the facsimile signature of such officer or officers. All such bonds shall be made to mature serially, beginning not more than five (5) years and running not longer than thirty (30) years after their date, with not less than one per cent (1%) of the total issue to mature each year during the first six (6) years, beginning in the fifth year, after the date of such bonds; not less than three per cent (3%) of the said total issue to mature annually during the next succeeding ten-year period of the life of such bonds; and not less than five per cent (5%) of said total issue to mature annually during the next succeeding ten-year period of the life of the bonds. However, from and after August 29, 2005, through December 31, 2007, any political subdivision located in a county covered by the Presidential Declaration of Major Disaster for the State of Mississippi (FEMA-1604-DR) dated August 29, 2005, may issue such refunding bonds as term or serial bonds at such price or prices, at such interest rate or rates, in such manner, at such times, and in accordance with such terms and provisions as may be agreed to by the governing authority of the political subdivision and the purchasers of the refunding bonds, and such issue of refunding bonds may provide that no principal or interest may be due for a period not to exceed five (5) years after the issue date.

SECTION 6. Section 31-15-9, Mississippi Code of 1972, is amended as follows:

31-15-9. The resolution or order providing for the issuance of such bonds may reserve unto the governing authority the right to call in, pay, and redeem such bonds in the inverse order of their numbers and maturities, prior to the maturity date or dates thereof on any interest payment date. Whenever it is desired to exercise the aforesaid right, if reserved in such resolution or order, the governing authority shall cause written notice thereof to be delivered to the bank or office at which such bonds are payable. Such notice shall be so delivered not less than thirty (30) days prior to the interest payment date designated for the redemption of such bonds, after which date so designated, no further interest shall accrue on the bonds so called for redemption. Such refunding bonds may be sold for not less than par and accrued interest, or may be exchanged at par for bonds and interest coupons to be refunded thereby.

The board of supervisors may accept county bonds, consolidated school district bonds, rural separate school district bonds or separate road district bonds, as the case may be, at not more than par and interest accruing thereon at the rate fixed in the bonds to be refunded in exchange for said refunding county bonds, consolidated school district bonds, rural separate school district bonds or separate road district bonds, as the case may be. In accepting any bond in exchange for, or in payment of, any such refunding bond, no bond shall be accepted in such exchange or payment that is secured by the property of a smaller or different district, or other subdivision, than that securing the refunding bonds so issued. However, from and after August 29, 2005, through December 31, 2007, refunding bonds issued, sold or exchanged by any political subdivision located in a county covered by the Presidential Declaration of Major Disaster for the State of Mississippi (FEMA-1604-DR) dated August 29, 2005, may be issued, sold or exchanged for any price or prices and accrued interest as determined by any such political subdivision.

SECTION 7. Section 31-15-17, Mississippi Code of 1972, is amended as follows:

31-15-17. (1) Sections 31-15-1 through 31-15-27, without reference to any other statute, shall be deemed full and complete authority for the issuance of refunding bonds by political subdivisions of the state, and shall be construed as an additional and alternative method therefor. None of the present restrictions, requirements, conditions, or limitations of law applicable to the issuance of bonds by political subdivisions of this state shall apply to the issuance and sale or exchange of bonds under the aforesaid sections, and no proceedings shall be required for the issuance of such bonds other than those provided for and required herein. All powers necessary to be exercised by the governing authority of any such political subdivision in order to carry out the provisions of said sections are hereby conferred.

(2) From and after August 29, 2005, through December 31, 2007, any political subdivision located in any county covered by the Presidential Declaration of Major Disaster for the State of Mississippi (FEMA-1604-DR) dated August 29, 2005, which has issued (and there remain outstanding) any tax increment, special assessment or other special or limited obligation bonds prior to August 29, 2005, may, as an alternative to issuance of refunding bonds pursuant to Sections 31-15-1 through 31-15-27, make principal and interest payments as same accrue and mature on any outstanding tax increment, special assessment or other special or limited obligation bonds issued by such political subdivisions prior to August 29, 2005, from any available funds of the political subdivision, without regard to any limitations and restrictions as to the security and source of payment otherwise imposed by statute or law or that may be provided in the issuing documents of such tax increment, special assessment or other special or limited obligation bonds.

SECTION 8. Section 31-15-21, Mississippi Code of 1972, is amended as follows:

31-15-21. Any bonds heretofore or hereafter issued under authority of Sections 21-27-11, 21-27-23, 21-27-41 through 21-27-43, or revenue bonds payable from funds other than the proceeds of ad valorem taxes heretofore or hereafter issued under authority of any other law of the State of Mississippi may be refunded upon surrender, whether such bonds are due, optional, or not yet matured. Such refunding bonds shall be negotiable, shall be authorized by resolution adopted by the board or governing body which shall have authorized the bonds that are being refunded, and may either be delivered in exchange for the bonds to be refunded or sold at not less than par and the proceeds applied to the retirement of such bonds. However, from and after August 29, 2005 through December 31, 2007, such refunding bonds issued, sold or exchanged by any political subdivision located in a county covered by the Presidential Declaration of Major Disaster for the State of Mississippi (FEMA-1604-DR) dated August 29, 2005, may be issued, sold or exchanged at such price or prices, and accrued interest, as may be determined by any such political subdivision.

SECTION 9. Section 31-15-25, Mississippi Code of 1972, is amended as follows:

31-15-25. Such refunding bonds shall be payable from the same sources of revenue and so far as possible shall be secured in the same manner and by the same covenants and agreements as were the bonds refunded. All provisions of the law under which the bonds refunded were issued, which provide for the security of such bonds and the requirements for fixing rates sufficient to operate the project acquired or improved and to pay principal of and interest on the bonds, shall remain in effect and shall be fully applicable to the refunding bonds issued hereunder. In no event shall taxes be levied for the payment of such bonds, and they shall recite on their face that they are payable only from revenues. However, from and after August 29, 2005, through December 31, 2007, payment of principal and interest on any refunding bonds issued, sold or exchanged pursuant to Sections 31-15-21 through 31-15-27 by any county or municipality covered by the Presidential Declaration of Major Disaster for the State of Mississippi (FEMA-1604-DR) dated August 29, 2005, may, in the discretion of the issuing county or municipality, be further secured by the irrevocable pledge of the full faith, credit and resources of the county or municipality, and in such event, the governing body of the county or municipality issuing the refunding bonds, shall annually levy a tax upon all taxable property therein sufficient to pay the principal of and the interest on such refunding bonds as the same matures and accrues.

SECTION 10. (1) (a) There is established an emergency aid to local governments loan program to be administered by the Department of Finance and Administration, referred to in this section as "department," for the purpose of assisting counties, incorporated municipalities and public school districts that suffer revenue losses as a result of a natural disaster for which a state of emergency has been duly proclaimed. Loan proceeds distributed to counties, incorporated municipalities and public school districts shall be considered to be, and shall be utilized by recipient in the same manner as, governmental, enterprise or internal service fund type revenues, specifically for essential government services.

(b) The department may contract for facilities and staff needed to administer this section, including routine management, as it deems necessary. The department may advertise for or solicit proposals from public or private sources, or both, for administration of this section or any services required for administration of this section or any portion thereof. It is the intent of the Legislature that the department endeavor to ensure that the costs of administration of this section are as low as possible.

(2) (a) There is created a special fund in the State Treasury to be designated as the "Emergency Aid to Local Governments Fund," referred to in this section as "fund," which fund shall consist of money transferred from the Disaster Recovery Fund created in Section 31-17-123 and money designated for deposit therein from any source including, but not limited to, appropriations, bond proceeds, grants, gifts, donations or funds from any source, public or private. The fund shall be credited with all repayments of principal and interest derived from loans made from the fund. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the State General Fund. Monies in the fund may not be used or expended for any purpose except as authorized under this section.

(b) The department shall establish a loan program by which loans may be made available to counties, incorporated municipalities and public school districts, to assist those counties, incorporated municipalities and public school districts. Any governmental entity in the current fiscal year that demonstrates a projected revenue loss equal to or exceeding one-third (1/3) of its governmental fund type revenues in the fiscal year prior to the occurrence of the natural disaster eligible under this section may qualify for a loan. The interest rate on loans made under this section may vary from time to time and from loan to loan, and shall be at or below market interest rates as determined by the department. The department shall act as quickly as is practicable and prudent in deciding on any loan request that it receives.

(c) The aggregate amount of any loans received under this section by a county, incorporated municipality or school district shall not exceed one hundred percent (100%) of the difference between the revenue received by a county, incorporated municipality or public school district from governmental fund type revenues that are used to fund essential services in the fiscal year prior to the occurrence of the natural disaster and the estimated revenue from such sources after the occurrence of the natural disaster plus available cash reserves or fund balances at the fiscal year end, as determined by the department. The State Bond Commission shall set the maximum amount of any loan made under this section at an amount that will ensure the equitable distribution of the amounts available for loans to the eligible governmental entities affected by the natural disaster.

(d) A county or school district that receives a loan from the fund shall pledge for repayment of the loan any part of the homestead exemption annual tax loss reimbursement to which it may be entitled under Section 27-33-77, as may be required by the department. An incorporated municipality that receives a loan from the fund or the emergency fund shall pledge for repayment of the loan any part of the sales tax revenue distribution to which it may be entitled under Section 27-65-75 or any part of the homestead exemption annual tax loss reimbursement to which it may be entitled under Section 27-33-77, as may be required by the department. All recipients of such loans shall establish a dedicated source of revenue for repayment of the loan. Before any county, incorporated municipality or school district shall receive any loan, it shall have executed with the department a loan agreement evidencing that loan, a copy of which shall be filed by the department with the State Tax Commission. The loan agreement shall not be construed to prohibit any recipient from prepaying any part or all of the funds received. The repayment schedule in each loan agreement shall provide for (i) monthly payments, (ii) semiannual payments or (iii) other periodic payments. The loan agreement shall provide for the repayment of all funds received from the fund within not more than three (3) years. The State Tax Commission shall, at the direction of the department, withhold semiannually from counties, incorporated municipalities and public school districts and monthly from incorporated municipalities, from the amount to be remitted to the county, municipality or public school district, the sum necessary to pay all or a portion of the periodic payments for the loan.

(e) Any county, incorporated municipality or public school district which receives a loan from the state for that purpose but which is not eligible to pledge for repayment under the provisions of paragraph (d) of this subsection, shall repay that loan by making payments each month to the State Treasurer through the Department of Finance and Administration for and on behalf of the department according to Section 7-7-15, to be credited to the fund in lieu of pledging homestead exemption annual tax loss reimbursement or sales tax revenue distribution.

Loan repayments shall be according to a repayment schedule contained in each loan agreement as provided in paragraph (d) of this subsection.

(f) The State Auditor, upon request of the department, shall audit the receipts and expenditures of acounty, an incorporated municipality or a school district if loan repayments appear to be in arrears, and if the Auditor finds that the county, incorporated municipality or school district is in arrears in those repayments, the Auditor shall immediately notify the executive director of the department who may take any action as may be necessary to enforce the terms of the loan agreement, including liquidation and enforcement of the security given for repayment of the loan, and the executive director of the department may, in his discretion, notify the State Tax Commission to withhold all future payments to the county or school district of homestead exemption annual tax loss reimbursements under Section 27-33-77 and all sums allocated to the incorporated municipality under Section 27-65-75, until such time as the county, incorporated municipality or public school district is again current in its loan repayments as certified by the department.

(g) All monies deposited in the fund shall be used only for providing the loans authorized under this section. In addition, any amounts in the fund may be used to defray the reasonable costs of administering the fund. The department is authorized to use amounts available to it from the fund to contract for those facilities and staff needed to administer and provide routine management for the funds and loan program.

(3) In administering this section the department shall have the following powers and duties:

(a) To supervise the use of all funds made available under this section;

(b) To promulgate rules and regulations, to make variances and exceptions thereto, and to establish procedures in accordance with this section for the implementation of the loan program;

(d) To maintain, in accordance with generally accepted government accounting standards, an accurate record of all monies in the fund made available to counties, incorporated municipalities and public school districts under this section;

(e) To file annually with the Legislature a report detailing how monies in the fund were spent during the preceding fiscal year in each county, incorporated municipality and public school district.

(4) The State Bond Commission, at one time, or from time to time, may declare the necessity for funds for the purposes provided in this section, including the costs incident to the administration of the loan program. Upon approval by the State Bond Commission, the department is authorized to transfer the necessary amount from the Disaster Recovery Fund created in Section 31-17-123 to the fund in ample time to discharge those loans and incidental costs.

(5) The department is authorized, without further process of law, to certify the necessity for warrants and is authorized and directed to issue such warrants, in such amounts as may be necessary to make loans under the program authorized by this section.

(6) After any state funds in the fund are no longer needed for the particular purpose for which they were appropriated, deposited or transferred into the fund, the department shall transfer those state funds back to the particular fund or funds in the State Treasury from which they were appropriated or transferred into the fund, upon certification of the State Fiscal Officer that the state funds are not currently needed."

AMEND FURTHER the title on line 37 by inserting the following after the semicolon:

"TO AMEND SECTIONS 17-21-51 AND 17-21-53, MISSISSIPPI CODE OF 1972, TO REVISE THE PURPOSES FOR WHICH COUNTIES AND MUNICIPALITIES LOCATED IN COUNTIES COVERED BY THE PRESIDENTIAL DECLARATION OF MAJOR DISASTER FOR THE STATE OF MISSISSIPPI DATED AUGUST 29, 2005, MAY ISSUE CERTAIN NEGOTIABLE NOTES AND CERTIFICATES OF INDEBTEDNESS; TO PROVIDE THAT SUCH NOTES AND CERTIFICATES MAY BE OFFERED AT PUBLIC OR PRIVATE SALE; TO INCREASE THE MAXIMUM TOTAL INDEBTEDNESS THAT SUCH COUNTIES AND MUNICIPALITIES MAY INCUR AND TO EXEMPT SUCH NOTES AND CERTIFICATES FROM CERTAIN DEBT LIMITATIONS; TO REVISE THE MAXIMUM MATURITY FOR SUCH NOTES AND CERTIFICATES; TO AMEND SECTIONS 31-15-7, 31-15-9, 31-15-17, 31-15-21 and 31-15-25, MISSISSIPPI CODE OF 1972, TO REVISE THE MAXIMUM INTEREST RATE FOR REFUNDING BONDS ISSUED BY POLITICAL SUBDIVISIONS; TO REVISE THE TERMS UNDER WHICH REFUNDING BONDS MAY BE ISSUED BY POLITICAL SUBDIVISIONS LOCATED IN COUNTIES COVERED BY THE PRESIDENTIAL DECLARATION OF MAJOR DISASTER FOR THE STATE OF MISSISSIPPI DATED AUGUST 29, 2005; TO PROVIDE THAT ANY SUCH POLITICAL SUBDIVISION THAT HAS ISSUED TAX INCREMENT, SPECIAL ASSESSMENT OR OTHER SPECIAL OR LIMITED OBLIGATION BONDS BEFORE AUGUST 29, 2005, MAY AS AN ALTERNATIVE TO ISSUING REFUNDING BONDS, MAKE PRINCIPAL AND INTEREST PAYMENTS ON SUCH BONDS FROM ANY AVAILABLE FUNDS OF THE POLITICAL SUBDIVISION; TO PROVIDE THAT REFUNDING BONDS OF COUNTIES AND MUNICIPALITIES COVERED BY SUCH PRESIDENTIAL DECLARATION OF MAJOR DISASTER, MAY BE SECURED BY THE PLEDGE OF THE FULL FAITH, CREDIT AND RESOURCES OF THE COUNTY OR MUNICIPALITY; TO ESTABLISH AN EMERGENCY AID TO LOCAL GOVERNMENTS LOAN PROGRAM FOR THE PURPOSE OF ASSISTING COUNTIES, INCORPORATED MUNICIPALITIES AND PUBLIC SCHOOL DISTRICTS THAT SUFFER REVENUE LOSSES AS A RESULT OF A NATURAL DISASTER FOR WHICH A STATE OF EMERGENCY HAS BEEN DULY PROCLAIMED; TO PROVIDE THAT THE PROGRAM SHALL BE ADMINISTERED BY THE DEPARTMENT OF FINANCE AND ADMINISTRATION; TO CREATE THE EMERGENCY AID TO LOCAL GOVERNMENTS LOAN FUND; TO ESTABLISH THE MAXIMUM AMOUNT OF ANY LOAN UNDER THIS PROGRAM; TO PROVIDE THAT A COUNTY OR SCHOOL DISTRICT THAT RECEIVES A LOAN FROM THE FUND SHALL PLEDGE FOR REPAYMENT OF THE LOAN ANY PART OF THE HOMESTEAD EXEMPTION ANNUAL TAX LOSS REIMBURSEMENT TO WHICH IT MAY BE ENTITLED; TO PROVIDE THAT AN INCORPORATED MUNICIPALITY THAT RECEIVES A LOAN FROM THE FUND OR THE EMERGENCY FUND SHALL PLEDGE FOR REPAYMENT OF THE LOAN ANY PART OF THE SALES TAX REVENUE DISTRIBUTION TO WHICH IT MAY BE ENTITLED; TO GRANT TO THE DEPARTMENT OF FINANCE AND ADMINISTRATION CERTAIN POWERS AND DUTIES WITH REGARD TO THIS ACT; TO AUTHORIZE THE STATE BOND COMMISSION TO DECLARE THE NECESSITY FOR GENERAL FUNDS TO FUND THE LOANS UNDER THIS PROGRAM; TO AUTHORIZE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO MAKE TRANSFERS FROM THE GENERAL FUND TO THE LOAN FUND FOR THE PURPOSE OF FUNDING THE LOANS UNDER THIS PROGRAM; TO AUTHORIZE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO ISSUE WARRANTS TO MAKE LOANS UNDER THIS PROGRAM; TO PROVIDE FOR THE DISPOSITION OF ANY UNNEEDED STATE FUNDS IN THE LOAN FUND;"