House Bill 820

(As Passed the House)

AN ACT TO AMEND SECTION 27-25-506, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT BEGINNING WITH FISCAL YEAR 2009, ALL AMOUNTS OF THE STATE'S SHARE OF OIL AND GAS SEVERANCE TAXES SHALL BE DEPOSITED INTO THE EDUCATION IMPROVEMENT TRUST FUND; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-25-506, Mississippi Code of 1972, is amended as follows:

27-25-506. There is created a special fund in the State Treasury into which the state's share of proceeds collected under Sections 27-25-505 and 27-25-705 shall be deposited.

The state's share of all oil and gas severance taxes derived from oil and gas resources under state-owned lands or from severed state-owned minerals shall be deposited into the State Treasury to the credit of the trust fund created in Section 206A, Mississippi Constitution of 1890. The following amounts of the remainder of tax collections apportioned to the state shall be deposited to the credit of the trust fund created in Section 206A, Mississippi Constitution of 1890:

(a) For fiscal year 1994, all amounts collected in excess of Thirty-five Million Dollars ($35,000,000.00);

(b) For fiscal year 1995, all amounts collected in excess of Thirty-two Million Five Hundred Thousand Dollars ($32,500,000.00);

(d) For fiscal year 1997, all amounts collected in excess of Twenty-seven Million Five Hundred Thousand Dollars ($27,500,000.00);

(e) For fiscal year 1998, all amounts collected in excess of Twenty-five Million Dollars ($25,000,000.00);

(f) For fiscal year 1999, all amounts collected in excess of Twenty Million Dollars ($20,000,000.00);

(g) For fiscal year 2000, all amounts collected in excess of Fifteen Million Dollars ($15,000,000.00);

(h) For fiscal year 2001 through December 31, 2000, all amounts collected and transferred in excess of Ten Million Dollars ($10,000,000.00); and

(i) For fiscal year 2005, all amounts collected in excess of Ten Million Dollars ($10,000,000.00); and

(j) For fiscal year 2009 and thereafter, an increase of annual increments in the amount of Ten Million Dollars ($10,000,000.00) shall be deposited to the credit of the trust. These annual increments shall occur until all such tax collections apportioned to the state shall be deposited to the credit of the trust fund.

The monies collected under paragraphs (a) through (i) of this section that are not deposited into the trust fund shall be deposited into the State General Fund. For fiscal year 2005, the monies not deposited into the State General Fund shall be deposited into the Budget Contingency Fund created in Section 27-103-301. * * *

SECTION 2. This act shall take effect and be in force from and after its passage.