MISSISSIPPI LEGISLATURE
2006 Regular Session
To: Ways and Means
By: Representative Brown, Holland
AN ACT TO AMEND SECTION 27-7-22.15, MISSISSIPPI CODE OF 1972, TO DELETE THE LIMIT ON THE MAXIMUM AMOUNT OF THE INCOME TAX CREDIT FOR CERTAIN REFORESTATION EXPENSES THAT MAY BE CLAIMED BY AN ELIGIBLE TAXPAYER DURING HIS LIFETIME; TO BRING FORWARD SECTION 27-7-17, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES VARIOUS STATE INCOME TAX DEDUCTIONS; TO CREATE A SPECIAL FUND IN THE STATE TREASURY TO BE KNOWN AS THE UNIVERSITY OF MISSISSIPPI MEDICAL CENTER ENHANCEMENT FUND; TO PROVIDE THAT MONIES IN THE SPECIAL FUND SHALL BE EXPENDED BY THE UNIVERSITY OF MISSISSIPPI MEDICAL CENTER, UPON APPROPRIATION, FOR THE OPERATION AND MAINTENANCE OF THE MEDICAL CENTER; TO AMEND SECTION 75-76-129, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A CERTAIN AMOUNT OF THE COLLECTIONS FROM GAMING TAXES AND FEES EACH FISCAL YEAR SHALL BE DEPOSITED INTO THE UNIVERSITY OF MISSISSIPPI MEDICAL CENTER ENHANCEMENT FUND AND THE TRAUMA CARE SYSTEMS FUND; TO PROVIDE THE UNIVERSITY OF MISSISSIPPI MEDICAL CENTER WITH CERTAIN SUBROGATION RIGHTS AGAINST THIRD PARTIES FOR THE AMOUNT OF UNCOMPENSATED CARE OR TREATMENT PROVIDED TO INDIVIDUALS FOR INJURIES, DISEASE OR SICKNESS CAUSED UNDER CIRCUMSTANCES CREATING A CAUSE OF ACTION AGAINST THOSE THIRD PARTIES; TO BRING FORWARD FOR THE PURPOSE OF AMENDMENT SECTIONS 27-25-505, 27-25-506 AND 29-7-3, MISSISSIPPI CODE OF 1972, WHICH PROVIDE FOR THE DISTRIBUTION OF OIL AND GAS SEVERANCE TAXES AMONG VARIOUS GOVERNMENTAL ENTITIES, PROVIDE THAT A PORTION OF THE STATE'S SHARE OF OIL AND GAS SEVERANCE TAXES COLLECTED SHALL BE DEPOSITED INTO THE EDUCATIONAL IMPROVEMENT TRUST FUND, AND SET FORTH PROCEDURES FOR THE LEASE OF STATE LANDS FOR OIL, GAS OR OTHER MINERALS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-22.15, Mississippi Code of 1972, is amended as follows:
27-7-22.15. (1) As used in this section, the following words and phrases shall have the meanings ascribed to herein unless the context clearly indicates otherwise:
(a) "Approved reforestation practices" means the following practices for establishing a crop of trees suitable for manufacturing into forest products:
(i) "Pine and hardwood tree planting practices" including the cost of seedlings, planting by hand or machine, and site preparation.
(ii) "Mixed-stand regeneration practices" to establish a mixed-crop of pine and hardwood trees by planting or direct seeding, or both, including the cost of seedlings, seed/acorns, planting, seeding and site preparation.
(iii) "Direct seeding practices" to establish a crop of pine or oak trees by directly applying seed/acorns to the site including the cost of seed/acorns, seeding and site preparation.
(iv) "Post-planting site preparation practices" to reduce or control undesirable competition within the first growing season of an established crop of trees.
Approved reforestation practices shall not include the establishment of orchards, Christmas trees or ornamental trees.
(b) "Eligible tree species" means pine and hardwood commercial tree species suitable for manufacturing into forest products.
(c) "Cost-share assistance" means partial financial payment for approved reforestation practices from the state government as authorized under Sections 49-19-201 through 49-19-227, or the federal government.
(d) "Eligible owner" means a private individual, group or association, but the term shall not mean private corporations which manufacture products or provide public utility services of any type or any subsidiary of such corporations.
(e) "Eligible lands" means nonindustrial private lands owned by a private individual, group or association, but shall not mean lands owned by private corporations which manufacture products or provide public utility services of any type or any subsidiary of such corporations.
(f) "Reforestation prescription or plan" means a written description of the approved reforestation practices that the eligible owner plans to use and includes a legal description and map of the area to be reforested, a list of the tree seedling or seed species to be used in the reforestation and the site preparation practices that will be utilized.
(2) Subject to the limitations provided in subsection (3) of this section, upon submission to the State Tax Commission of the written verification provided for in subsection (5) of this section and such other documentation as the State Tax Commission may require, any eligible owner who incurs costs for approved reforestation practices for eligible tree species on eligible lands shall be allowed a credit, in an amount equal to the lesser of fifty percent (50%) of the actual costs of the approved reforestation practices or fifty percent (50%) of the average cost of approved practices as established by the Mississippi Forestry Commission under Section 49-19-219, against the taxes imposed pursuant to this chapter for the tax year in which the costs are incurred.
(3) The credit provided for in this section shall not exceed the lesser of Ten Thousand Dollars ($10,000.00) or the amount of income tax imposed upon the eligible owner for the taxable year reduced by the sum of all other credits allowable to the eligible owner under this chapter, except credit for tax payments made by or on behalf of the eligible owner. Any unused portion of the credit may be carried forward for succeeding tax years. * * *
(4) If an eligible owner receives any state or federal cost share assistance funds to defray the cost of an approved reforestation practice, the cost of that practice on the same acre or acres within the same tax year is not eligible for the credit provided in this section unless the eligible owner's adjusted gross income is less than the federal earned income credit level.
(5) To be eligible for the tax credit, an eligible owner must have a reforestation prescription or plan prepared for the eligible lands by a graduate forester of a college, school or university accredited by the Society of American Foresters or by a registered forester under the Foresters Registration Law of 1977. The forester must verify in writing that the reforestation practices were completed and that the reforestation prescription or plan was followed.
SECTION 2. Section 27-7-17, Mississippi Code of 1972, is brought forward as follows:
27-7-17. In computing taxable income, there shall be allowed as deductions:
(1) Business deductions.
(a) Business expenses. All the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including a reasonable allowance for salaries or other compensation for personal services actually rendered; nonreimbursable traveling expenses incident to current employment, including a reasonable amount expended for meals and lodging while away from home in the pursuit of a trade or business; and rentals or other payments required to be made as a condition of the continued use or possession, for purposes of the trade or business of property to which the taxpayer has not taken or is not taking title or in which he had no equity. Expense incurred in connection with earning and distributing nontaxable income is not an allowable deduction. Limitations on entertainment expenses shall conform to the provisions of the Internal Revenue Code of 1986.
(b) Interest. All interest paid or accrued during the taxable year on business indebtedness, except interest upon the indebtedness for the purchase of tax-free bonds, or any stocks, the dividends from which are nontaxable under the provisions of this article; provided, however, in the case of securities dealers, interest payments or accruals on loans, the proceeds of which are used to purchase tax-exempt securities, shall be deductible if income from otherwise tax-free securities is reported as income. Investment interest expense shall be limited to investment income. Interest expense incurred for the purchase of treasury stock, to pay dividends, or incurred as a result of an undercapitalized affiliated corporation may not be deducted unless an ordinary and necessary business purpose can be established to the satisfaction of the commissioner. For the purposes of this paragraph, the phrase "interest upon the indebtedness for the purchase of tax-free bonds" applies only to the indebtedness incurred for the purpose of directly purchasing tax-free bonds and does not apply to any other indebtedness incurred in the regular course of the taxpayer's business. Any corporation, association, organization or other entity taxable under Section 27-7-23(c) shall allocate interest expense as provided in Section 27-7-23(c)(3)(I).
(c) Taxes. Taxes paid or accrued within the taxable year, except state and federal income taxes, excise taxes based on or measured by net income, estate and inheritance taxes, gift taxes, cigar and cigarette taxes, gasoline taxes, and sales and use taxes unless incurred as an item of expense in a trade or business or in the production of taxable income. In the case of an individual, taxes permitted as an itemized deduction under the provisions of subsection (3)(a) of this section are to be claimed thereunder.
(d) Business losses.
(i) Losses sustained during the taxable year not compensated for by insurance or otherwise, if incurred in trade or business, or nonbusiness transactions entered into for profit.
(ii) Limitations on losses from passive activities and rental real estate shall conform to the provisions of the Internal Revenue Code of 1986.
(e) Bad debts. Losses from debts ascertained to be worthless and charged off during the taxable year, if sustained in the conduct of the regular trade or business of the taxpayer; provided, that such losses shall be allowed only when the taxpayer has reported as income, on the accrual basis, the amount of such debt or account.
(f) Depreciation. A reasonable allowance for exhaustion, wear and tear of property used in the trade or business, or rental property, and depreciation upon buildings based upon their reasonable value as of March 16, 1912, if acquired prior thereto, and upon cost if acquired subsequent to that date.
(g) Depletion. In the case of mines, oil and gas wells, other natural deposits and timber, a reasonable allowance for depletion and for depreciation of improvements, based upon cost, including cost of development, not otherwise deducted, or fair market value as of March 16, 1912, if acquired prior to that date, such allowance to be made upon regulations prescribed by the commissioner, with the approval of the Governor.
(h) Contributions or gifts. Except as otherwise provided in subsection (3)(a) of this section for individuals, contributions or gifts made by corporations within the taxable year to corporations, organizations, associations or institutions, including Community Chest funds, foundations and trusts created solely and exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inure to the benefit of any private stockholder or individual. This deduction shall be allowed in an amount not to exceed twenty percent (20%) of the net income. Such contributions or gifts shall be allowable as deductions only if verified under rules and regulations prescribed by the commissioner, with the approval of the Governor. Contributions made in any form other than cash shall be allowed as a deduction, subject to the limitations herein provided, in an amount equal to the actual market value of the contributions at the time the contribution is actually made and consummated.
(i) Reserve funds - insurance companies. In the case of insurance companies the net additions required by law to be made within the taxable year to reserve funds when such reserve funds are maintained for the purpose of liquidating policies at maturity.
(j) Annuity income. The sums, other than dividends, paid within the taxpayer year on policy or annuity contracts when such income has been included in gross income.
(k) Contributions to employee pension plans. Contributions made by an employer to a plan or a trust forming part of a pension plan, stock bonus plan, disability or death-benefit plan, or profit-sharing plan of such employer for the exclusive benefit of some or all of his, their, or its employees, or their beneficiaries, shall be deductible from his, their, or its income only to the extent that, and for the taxable year in which, the contribution is deductible for federal income tax purposes under the Internal Revenue Code of 1986 and any other provisions of similar purport in the Internal Revenue Laws of the United States, and the rules, regulations, rulings and determinations promulgated thereunder, provided that:
(i) The plan or trust be irrevocable.
(ii) The plan or trust constitute a part of a pension plan, stock bonus plan, disability or death-benefit plan, or profit-sharing plan for the exclusive benefit of some or all of the employer's employees and/or officers, or their beneficiaries, for the purpose of distributing the corpus and income of the plan or trust to such employees and/or officers, or their beneficiaries.
(iii) No part of the corpus or income of the plan or trust can be used for purposes other than for the exclusive benefit of employees and/or officers, or their beneficiaries.
Contributions to all plans or to all trusts of real or personal property (or real and personal property combined) or to insured plans created under a retirement plan for which provision has been made under the laws of the United States of America, making such contributions deductible from income for federal income tax purposes, shall be deductible only to the same extent under the Income Tax Laws of the State of Mississippi.
(l) Net operating loss carrybacks and carryovers. A net operating loss for any taxable year ending after December 31, 1993, and taxable years thereafter, shall be a net operating loss carryback to each of the three (3) taxable years preceding the taxable year of the loss. If the net operating loss for any taxable year is not exhausted by carrybacks to the three (3) taxable years preceding the taxable year of the loss, then there shall be a net operating loss carryover to each of the fifteen (15) taxable years following the taxable year of the loss beginning with any taxable year after December 31, 1991.
For any taxable year ending after December 31, 1997, the period for net operating loss carrybacks and net operating loss carryovers shall be the same as those established by the Internal Revenue Code and the rules, regulations, rulings and determinations promulgated thereunder as in effect at the taxable year end or on December 31, 2000, whichever is earlier.
A net operating loss for any taxable year ending after December 31, 2001, and taxable years thereafter, shall be a net operating loss carryback to each of the two (2) taxable years preceding the taxable year of the loss. If the net operating loss for any taxable year is not exhausted by carrybacks to the two (2) taxable years preceding the taxable year of the loss, then there shall be a net operating loss carryover to each of the twenty (20) taxable years following the taxable year of the loss beginning with any taxable year after the taxable year of the loss.
The term "net operating loss," for the purposes of this paragraph, shall be the excess of the deductions allowed over the gross income; provided, however, the following deductions shall not be allowed in computing same:
(i) No net operating loss deduction shall be allowed.
(ii) No personal exemption deduction shall be allowed.
(iii) Allowable deductions which are not attributable to taxpayer's trade or business shall be allowed only to the extent of the amount of gross income not derived from such trade or business.
Any taxpayer entitled to a carryback period as provided by this paragraph may elect to relinquish the entire carryback period with respect to a net operating loss for any taxable year ending after December 31, 1991. The election shall be made in the manner prescribed by the State Tax Commission and shall be made by the due date, including extensions of time, for filing the taxpayer's return for the taxable year of the net operating loss for which the election is to be in effect. The election, once made for any taxable year, shall be irrevocable for that taxable year.
(m) Amortization of pollution or environmental control facilities. Allowance of deduction. Every taxpayer, at his election, shall be entitled to a deduction for pollution or environmental control facilities to the same extent as that allowed under the Internal Revenue Code and the rules, regulations, rulings and determinations promulgated thereunder.
(n) Dividend distributions - real estate investment trusts. "Real estate investment trust" (hereinafter referred to as REIT) shall have the meaning ascribed to such term in Section 856 of the federal Internal Revenue Code of 1986, as amended. A REIT is allowed a dividend distributed deduction if the dividend distributions meet the requirements of Section 857 or are otherwise deductible under Section 858 or 860, federal Internal Revenue Code of 1986, as amended. In addition:
(i) A dividend distributed deduction shall only be allowed for dividends paid by a publicly traded REIT. A qualified REIT subsidiary shall be allowed a dividend distributed deduction if its owner is a publicly traded REIT.
(ii) Income generated from real estate contributed or sold to a REIT by a shareholder or related party shall not give rise to a dividend distributed deduction, unless the shareholder or related party would have received the dividend distributed deduction under this chapter.
(iii) A holding corporation receiving a dividend from a REIT shall not be allowed the deduction in Section 27-7-15(4)(t).
(iv) Any REIT not allowed the dividend distributed deduction in the federal Internal Revenue Code of 1986, as amended, shall not be allowed a dividend distributed deduction under this chapter.
The commissioner is authorized to promulgate rules and regulations consistent with the provisions in Section 269 of the federal Internal Revenue Code of 1986, as amended, so as to prevent the evasion or avoidance of state income tax.
(o) Contributions to college savings trust fund accounts. Contributions or payments to a Mississippi Affordable College Savings Program account are deductible as provided under Section 37-155-113. Payments made under a prepaid tuition contract entered into under the Mississippi Prepaid Affordable College Tuition Program are deductible as provided under Section 37-155-17.
(2) Restrictions on the deductibility of certain intangible expenses and interest expenses with a related member.
(a) As used in this subsection (2):
(i) "Intangible expenses and costs" include:
1. Expenses, losses and costs for, related to, or in connection directly or indirectly with the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange or any other disposition of intangible property to the extent such amounts are allowed as deductions or costs in determining taxable income under this chapter;
2. Expenses or losses related to or incurred in connection directly or indirectly with factoring transactions or discounting transactions;
3. Royalty, patent, technical and copyright fees;
4. Licensing fees; and
5. Other similar expenses and costs.
(ii) "Intangible property" means patents, patent applications, trade names, trademarks, service marks, copyrights and similar types of intangible assets.
(iii) "Interest expenses and cost" means amounts directly or indirectly allowed as deductions for purposes of determining taxable income under this chapter to the extent such interest expenses and costs are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, maintenance, management, ownership, sale, exchange or disposition of intangible property.
(iv) "Related member" means an entity or person that, with respect to the taxpayer during all or any portion of the taxable year, is a related entity, a component member as defined in the Internal Revenue Code, or is an entity or a person to or from whom there is attribution of stock ownership in accordance with Section 1563(e) of the Internal Revenue Code.
(v) "Related entity" means:
1. A stockholder who is an individual or a member of the stockholder's family, as defined in regulations prescribed by the commissioner, if the stockholder and the members of the stockholder's family own, directly, indirectly, beneficially or constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer's outstanding stock;
2. A stockholder, or a stockholder's partnership, limited liability company, estate, trust or corporation, if the stockholder and the stockholder's partnerships, limited liability companies, estates, trusts and corporations own, directly, indirectly, beneficially or constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer's outstanding stock;
3. A corporation, or a party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation, if the taxpayer owns, directly, indirectly, beneficially or constructively, at least fifty percent (50%) of the value of the corporation's outstanding stock under regulation prescribed by the commissioner;
4. Any entity or person which would be a related member under this section if the taxpayer were considered a corporation for purposes of this section.
(b) In computing net income, a taxpayer shall add back otherwise deductible interest expenses and costs and intangible expenses and costs directly or indirectly paid, accrued to or incurred, in connection directly or indirectly with one or more direct or indirect transactions with one or more related members.
(c) The adjustments required by this subsection shall not apply to such portion of interest expenses and costs and intangible expenses and costs that the taxpayer can establish meets one (1) of the following:
(i) The related member directly or indirectly paid, accrued or incurred such portion to a person during the same income year who is not a related member; or
(ii) The transaction giving rise to the interest expenses and costs or intangible expenses and costs between the taxpayer and related member was done primarily for a valid business purpose other than the avoidance of taxes, and the related member is not primarily engaged in the acquisition, use, maintenance or management, ownership, sale, exchange or any other disposition of intangible property.
(d) Nothing in this subsection shall require a taxpayer to add to its net income more than once any amount of interest expenses and costs or intangible expenses and costs that the taxpayer pays, accrues or incurs to a related member.
(e) The commissioner may prescribe such regulations as necessary or appropriate to carry out the purposes of this subsection including, but not limited to, clarifying definitions of terms, rules of stock attribution, factoring and discount transactions.
(3) Individual nonbusiness deductions.
(a) The amount allowable for individual nonbusiness itemized deductions for federal income tax purposes where the individual is eligible to elect, for the taxable year, to itemize deductions on his federal return except the following:
(i) The deduction for state income taxes paid or other taxes allowed for federal purposes in lieu of state income taxes paid;
(ii) The deduction for gaming losses from gaming establishments;
(iii) The deduction for taxes collected bylicensed gaming establishments pursuant to Section 27-7-901;
(iv) The deduction for taxes collected by gaming establishments pursuant to Section 27-7-903.
(b) In lieu of the individual nonbusiness itemized deductions authorized in paragraph (a), for all purposes other than ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, an optional standard deduction of:
(i) Three Thousand Four Hundred Dollars ($3,400.00) through calendar year 1997, Four Thousand Two Hundred Dollars ($4,200.00) for the calendar year 1998 and Four Thousand Six Hundred Dollars ($4,600.00) for each calendar year thereafter in the case of married individuals filing a joint or combined return;
(ii) One Thousand Seven Hundred Dollars ($1,700.00) through calendar year 1997, Two Thousand One Hundred Dollars ($2,100.00) for the calendar year 1998 and Two Thousand Three Hundred Dollars ($2,300.00) for each calendar year thereafter in the case of married individuals filing separate returns;
(iii) Three Thousand Four Hundred Dollars ($3,400.00) in the case of a head of family; or
(iv) Two Thousand Three Hundred Dollars ($2,300.00) in the case of an individual who is not married.
In the case of a husband and wife living together, having separate incomes, and filing combined returns, the standard deduction authorized may be divided in any manner they choose. In the case of separate returns by a husband and wife, the standard deduction shall not be allowed to either if the taxable income of one of the spouses is determined without regard to the standard deduction.
(c) A nonresident individual shall be allowed the same individual nonbusiness deductions as are authorized for resident individuals in paragraph (a) or (b) of this subsection; however, the nonresident individual is entitled only to that proportion of the individual nonbusiness deductions as his net income from sources within the State of Mississippi bears to his total or entire net income from all sources.
(4) Nothing in this section shall permit the same item to be deducted more than once, either in fact or in effect.
SECTION 3. (1) There is created in the State Treasury a special fund to be known as the University of Mississippi Medical Center Enhancement Fund, which shall consist of the monies required to be deposited into the special fund under Section 75-76-129 and any other funds that may be authorized or otherwise made available to be deposited into the special fund.
(2) Monies in the special fund shall be expended by the University of Mississippi Medical Center, upon appropriation by the Legislature, for the operation and maintenance of the medical center.
(3) Unexpended amounts remaining in the special fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the special fund shall be deposited to the credit of the special fund.
(4) It is the intent of the Legislature that the monies in the special fund shall not be used to reduce the amount of the general fund appropriation to the University of Mississippi Medical Center below the amount appropriated to the medical center from general funds during the previous fiscal year, but instead shall be used to increase the total amount of money that is appropriated to the medical center each year.
SECTION 4. Section 75-76-129, Mississippi Code of 1972, is amended as follows:
[Through June 30, 2022, this section shall read as follows:]
75-76-129. (1) On or before the last day of each month all taxes, fees, interest, penalties, damages, fines or other monies collected by the State Tax Commission during that month under the provisions of this chapter, with the exception of (a) the local government fees imposed under Section 75-76-195, and (b) an amount equal to Three Million Dollars ($3,000,000.00) of the revenue collected pursuant to the fee imposed under Section 75-76-177(1)(c), shall be paid by the State Tax Commission to the State Treasurer to be deposited in the State General Fund, except as otherwise provided in subsection (2) of this section. The local government fees shall be distributed by the State Tax Commission pursuant to Section 75-76-197. An amount equal to Three Million Dollars ($3,000,000.00) of the revenue collected during that month pursuant to the fee imposed under Section 75-76-177(1)(c) shall be deposited by the State Tax Commission into the bond sinking fund created in Section 65-39-3.
(2) During each fiscal year beginning with fiscal year 2007, after the State Treasurer has deposited into the State General Fund an amount equal to the total amount that was deposited into the State General Fund under this section during fiscal year 2005, all such monies collected thereafter during the fiscal year that otherwise would be deposited into the State General Fund under subsection (1) of this section shall be deposited into the following funds:
(a) The first Eighty Million Dollars ($80,000,000.00) of the monies collected shall be deposited into the University of Mississippi Medical Center Enhancement Fund created by Section 3 of this act; and
(b) Any remaining monies collected shall be deposited into the Mississippi Trauma Care Systems Fund created by Section 41-59-75.
[From and after July 1, 2022, this section shall read as follows:]
75-76-129. (1) On or before the last day of each month, all taxes, fees, interest, penalties, damages, fines or other monies collected by the State Tax Commission during that month under the provisions of this chapter, with the exception of the local government fees imposed under Section 75-76-195, shall be paid by the State Tax Commission to the State Treasurer to be deposited in the State General Fund, except as otherwise provided in subsection (2) of this section. The local government fees shall be distributed by the State Tax Commission pursuant to Section 75-76-197.
(2) During each fiscal year beginning with fiscal year 2007, after the State Treasurer has deposited into the State General Fund an amount equal to the total amount that was deposited into the State General Fund under this section during fiscal year 2005, all such monies collected thereafter during the fiscal year that otherwise would be deposited into the State General Fund under subsection (1) of this section shall be deposited into the following funds:
(a) The first Eighty Million Dollars ($80,000,000.00) of the monies collected shall be deposited into the University of Mississippi Medical Center Enhancement Fund created by Section 3 of this act; and
(b) The next Ten Million Dollars ($10,000,000.00) of the monies collected shall be designated to the University of Mississippi Medical Center for the Mississippi Burn Center to be located at the University of Mississippi Medical Center for the purpose of establishing and/or operating said burn center.
(c) Any remaining monies collected shall be deposited into the Mississippi Trauma Care Systems Fund created by Section 41-59-75.
SECTION 5. (1) If an individual receives care or treatment from the University of Mississippi Medical Center (UMMC) or any hospital for injuries, disease, sickness or other medical condition caused under circumstances creating a cause of action in favor of the individual against any person, firm or corporation, and UMMC or any hospital does not receive full compensation from the individual or any third party for all expenses incurred for providing that care or treatment to the individual, then UMMC or any hospital is entitled to recover from any proceeds that may result from the exercise of any rights of recovery that the individual may have against any such person, firm or corporation in an amount equal to the extent of money owed to UMMC or any hospital for treatment provided to the individual. The individual who received care or treatment from UMMC or any hospital shall execute and deliver instruments and papers to do whatever is necessary to secure those rights. UMMC or any hospital may compromise or settle any such claim and execute a release of any claim it has by virtue of this section. In determining whether to pursue through litigation or settle a claim, UMMC or any hospital may consider matters including, but not limited to, (a) the amount of the lien for medical services and any expected recovery by such individual from any third party, (b) the potential costs of litigation, (c) the extent of injuries for which the individual receives care or treatment from UMMC or any hospital, and (d) the likelihood of recovery from any nonsettling party.
(2) The acceptance by an individual of care or treatment from UMMC or any hospital for injuries, disease or sickness caused under circumstances creating a cause of action in favor of the individual against any person, firm or corporation shall not affect the right of the individual or his or her legal representative to recover UMMC's or any hospital's interest as an element of damages in any action at law;however, a copy of the pleadings shall be certified to UMMC or any hospital at the time of the institution of suit, and proof of that notice shall be filed of record in that action. UMMC or any hospital may, at any time before the trial on the facts, join in that action or may intervene in that action to protect its interest. Any individual receiving care or treatment from UMMC or any hospital and/or his attorney is responsible for ensuring that UMMC or any hospital is reimbursed for care or treatment for injuries, disease or sickness for which the individual receives compensation under settlement from a third party under the terms of Sections 5 and 6 of this act. Any amount recovered by an individual or his or her legal representative shall be applied as follows:
(a) The amount of UMMC's or any hospital's interest on behalf of the individual for the uncompensated care or treatment provided to the individual, or such pro rata amount as may be arrived at by the legal representative of UMMC or any hospital and the individual's attorney; and
(b) Any excess shall be forwarded to the individual or if he has an attorney, then the attorney.
(3) No compromise of any claim by the individual or his or her legal representative shall be binding upon or affect the rights of UMMC or any hospital against the third party unless UMMC or any hospital has entered into the compromise. Any compromise effected by the individual or his or her legal representative with the third party in the absence of advance notification to and approved by UMMC or any hospital shall constitute conclusive evidence of the liability of the third party, and UMMC or any hospital, in litigating its claim against the third party, shall be required only to prove the amount and correctness of its claim relating to the injury, disease or sickness. If the individual or his or her legal representative fails to notify UMMC or any hospital of the institution of legal proceedings against a third party for which UMMC or any hospital has a cause of action, the facts relating to negligence and the liability of the third party, if judgment is rendered for the individual, shall constitute conclusive evidence of liability in a later action maintained by UMMC or any hospital and only the amount and correctness of UMMC's or any hospital's claim relating to injuries, disease or sickness shall be tried before the court. UMMC or any hospital shall be authorized in bringing that action against the third party and his or her insurer jointly or against the insurer alone for the amount owed it.
(4) Nothing in this section shall be construed to diminish or otherwise restrict the subrogation rights of UMMC or any hospital against a third party for the amount due for care or treatment provided by UMMC or any hospital to an individual as a result of injuries, disease or sickness caused under circumstances creating a cause of action in favor of the individual against such a third party.
SECTION 6. (1) An individual, by accepting care or treatment from UMMC for injuries, disease or sickness caused under circumstances creating a cause of action in favor of the individual against any person, firm or corporation, shall, to the extent that UMMC provides care or treatment to the individual, be deemed to have made an assignment to UMMC of any and all rights and interests in any third-party benefits, hospitalization or indemnity contract or any cause of action, past, present or future, against the person, firm or corporation for the amount of the uncompensated care or treatment provided by UMMC to the individual, as set out in Section 5 of this act. The individual shall be deemed, without the necessity of signing any document, to have appointed UMMC as his or her true and lawful attorney-in-fact in his or her name, place and stead in collecting from the person, firm or corporation any and all amounts due and owing UMMC for care or treatment provided by UMMC to the individual.
(2) Whenever UMMC submits a claim to an insurer on behalf of an individual for whom an assignment of rights has been received, or whose rights have been assigned by the operation of law, the insurer must respond within forty-five (45) days of receipt of a claim by forwarding payment or issuing a notice of denial directly to UMMC. UMMC shall be authorized to endorse any and all, including, but not limited to, multi-payee checks, drafts, money orders or other negotiable instruments representing recoveries of payments for care or treatment that are received by UMMC.
(3) Court orders or agreements for payment of uncompensated care or treatment provided by UMMC shall direct those payments to UMMC, which shall be authorized to endorse any and all checks, drafts, money orders or other negotiable instruments representing recoveries of payments for care or treatment that are received by UMMC.
SECTION 7. Section 27-25-505, Mississippi Code of 1972, is brought forward as follows:
[With regard to any county which is exempt from the provisions of Section 19-2-3, this section shall read as follows:]
27-25-505. All taxes herein levied and collected by the State Tax Commission shall be paid into the State Treasury on the same day collected. The commissioner shall apportion all such tax collections to the state and to the county in which the oil was produced, in accordance with the following schedule and so certify such apportionment to the State Treasurer at the end of each month:
On the first Six Hundred Thousand Dollars ($600,000.00) or any part thereof, sixty-six and two-thirds percent (66-2/3%) to the state and thirty-three and one-third percent (33-1/3%) to the county.
On the next Six Hundred Thousand Dollars ($600,000.00) or any part thereof, ninety percent (90%) to the state and ten percent (10%) to the county through June 30, 1989; eighty-five percent (85%) to the state and fifteen percent (15%) to the county from July 1, 1989, through June 30, 1990; and eighty percent (80%) to the state and twenty percent (20%) to the county for each fiscal year thereafter.
Above and exceeding One Million Two Hundred Thousand Dollars ($1,200,000.00), ninety-five percent (95%) to the state and five percent (5%) to the county through June 30, 1989; ninety percent (90%) to the state and ten percent (10%) to the county from July 1, 1989, through June 30, 1990; and eighty-five percent (85%) to the state and fifteen percent (15%) to the county for each fiscal year thereafter.
The state's share of all oil severance taxes collected pursuant to this section shall be deposited as provided for in Section 27-25-506.
The State Treasurer shall remit the county's share of said funds on or before the twentieth day of the month next succeeding the month in which such collections were made, for division among the municipalities and taxing districts of the county. He shall accompany his remittance with a report to the county receiving such funds prepared by the commissioner showing from whom said tax was collected. Upon receipt of said funds, the board of supervisors of said county shall allocate the same to the municipalities and to the various maintenance and bond and interest funds of the county, school districts, supervisors districts and road districts, as hereinafter provided.
When there shall be any oil producing properties within the corporate limits of any municipality, then such municipality shall participate in the division of the tax returned to the county in which the municipality is located, in the proportion which the tax on production of oil from any properties located within the municipal corporate limits bears to the tax on the total production of oil in the county. In no event, however, shall the amount allocated to municipalities exceed one-third (1/3) of the tax produced in the municipality and returned to the county. Any amount received by any municipality as a result of the allocation herein provided shall be used only for such purposes as are authorized by law.
The balance remaining of any amount of tax returned to the county after the allocation to municipalities shall be divided among the various maintenance and bond interest funds of the county, school districts, supervisors districts and road districts, in the discretion of the board of supervisors, and such board shall make the division in consideration of the needs of the various taxing districts. The funds so allocated shall be used only for purposes as are authorized by law.
[With regard to any county which is required to operate on a countywide system of road administration as described in Section 19-2-3, this section shall read as follows:]
27-25-505. All taxes herein levied and collected by the State Tax Commission shall be paid into the State Treasury on the same day collected. The commissioner shall apportion all such tax collections to the state and to the county in which the oil was produced, in accordance with the following schedule and so certify such apportionment to the State Treasurer at the end of each month:
On the first Six Hundred Thousand Dollars ($600,000.00) or any part thereof, sixty-six and two-thirds percent (66-2/3%) to the state and thirty-three and one-third percent (33-1/3%) to the county.
On the next Six Hundred Thousand Dollars ($600,000.00) or any part thereof, ninety percent (90%) to the state and ten percent (10%) to the county through June 30, 1989; eighty-five percent (85%) to the state and fifteen percent (15%) to the county from July 1, 1989, through June 30, 1990; and eighty percent (80%) to the state and twenty percent (20%) to the county for each fiscal year thereafter.
Above and exceeding One Million Two Hundred Thousand Dollars ($1,200,000.00), ninety-five percent (95%) to the state and five percent (5%) to the county through June 30, 1989; ninety percent (90%) to the state and ten percent (10%) to the county from July 1, 1989, through June 30, 1990; and eighty-five percent (85%) to the state and fifteen percent (15%) to the county for each fiscal year thereafter.
The state's share of all oil severance taxes collected pursuant to this section shall be deposited as provided for in Section 27-25-506.
The State Treasurer shall remit the county's share of said funds on or before the twentieth day of the month next succeeding the month in which such collections were made, for division among the municipalities and taxing districts of the county. He shall accompany his remittance with a report to the county receiving such funds prepared by the commissioner showing from whom said tax was collected. Upon receipt of said funds, the board of supervisors of said county shall allocate the same to the municipalities and to the various maintenance and bond and interest funds of the county and school districts, as hereinafter provided.
When there shall be any oil producing properties within the corporate limits of any municipality, then such municipality shall participate in the division of the tax returned to the county in which the municipality is located, in the proportion which the tax on production of oil from any properties located within the municipal corporate limits bears to the tax on the total production of oil in the county. In no event, however, shall the amount allocated to municipalities exceed one-third (1/3) of the tax produced in the municipality and returned to the county. Any amount received by any municipality as a result of the allocation herein provided shall be used only for such purposes as are authorized by law.
The balance remaining of any amount of tax returned to the county after the allocation to municipalities shall be divided among the various maintenance and bond interest funds of the county and school districts, in the discretion of the board of supervisors, and such board shall make the division in consideration of the needs of the various taxing districts. The funds so allocated shall be used only for purposes as are authorized by law.
SECTION 8. It is the intent of the Legislature that the University Medical Center shall undertake a study to provide a method to provide health care for state employees and public school teachers and state university and public community college employees covered by Mississippi state insurance coverage without charging copayments for catastrophic care provided to the aforesaid individuals if said is financially feasible.
SECTION 9. Sections 1 and 2 of this act shall take effect and be in force from and after January 1, 2006; and Sections 3 through 9 of this act shall take effect and be in force from and after July 1, 2006.