Senate Bill 3223

(As Passed the Senate)

AN ACT TO AMEND CHAPTER 861, LOCAL AND PRIVATE LAWS OF 1983, AS LAST AMENDED BY CHAPTER 989, LOCAL AND PRIVATE LAWS OF 1997, TO INCREASE THE MEMBERSHIP OF THE CORINTH AREA TOURISM PROMOTION COUNCIL BY AUTHORIZING THE MAYOR AND BOARD OF ALDERMEN OF THE CITY OF CORINTH AND THE BOARD OF SUPERVISORS OF ALCORN COUNTY TO EACH APPOINT AN ADDITIONAL MEMBER; TO INCREASE THE AMOUNT OF THE BOND THAT MEMBERS OF THE COUNCIL MUST ENTER INTO AND TO REQUIRE EMPLOYEES OF THE COUNCIL TO ENTER INTO AND GIVE BOND IN THE SAME AMOUNT; AND FOR RELATED PURPOSES.

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

SECTION 1. Chapter 861, Local and Private Laws of 1983, as amended by Chapter 901, Local and Private Laws of 1988, as amended by Chapter 899, Local and Private Laws of 1992, as amended by Chapter 978, Local and Private Laws of 1993, as amended by Chapter 1002, Local and Private Laws of 1995, as amended by Chapter 989, Local and Private Laws of 1997, is amended as follows:

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

(a) "Council" means the Corinth Area Tourism Promotion Council.

(b) "Bed and breakfast," "hotel," "inn" and "motel" mean and include any establishment engaged in the business of furnishing or providing rooms intended or designed for dwelling, lodging or sleeping purposes to transient guests, where such establishment consists of two (2) or more guest rooms. "Bed and breakfast," "hotel," "inn" and "motel" shall not include or encompass any hospital, convalescent or nursing home, sanitarium, or any hotel-like facility operated by or in connection with a hospital or medical clinic providing rooms exclusively for patients and their families.

(c) "Restaurant" means and includes all places where prepared food and beverages are sold for consumption, whether such food is consumed on the premises or not. "Restaurant" shall not include any school, hospital, convalescent or nursing home, or any restaurant-like facility operated by or in connection with a school, hospital, medical clinic, convalescent or nursing home providing food for students, patients, visitors and their families.

(d) "Organization" means and includes all persons, business entities of any type recognized under the laws of the State of Mississippi, and any other civic, community, cultural or historic organizations.

(e) "Prepared food" means and includes any food prepared on the premises of a restaurant. This shall include fountain drinks but shall exclude food and beverages sold through vending machines and nonprepared groceries and beverages.

(f) "Beverage" means and includes all beverages, whether alcoholic or nonalcoholic.

(g) "Capital project" means and includes any project for which the primary purpose is to purchase, renovate, repair, construct or replace any real property, building or other facility, easement, equipment, fixture or other personal property, including any and all necessary and/or required preliminary activities.

(h) "Marketing and promotion" means and includes all activities whose primary purpose is to attract the attention of potential tourists, and shall include, but not be limited to, advertising via television, radio, magazine, newspaper, billboards, and all other communication mediums.

Section 2. (1) There is hereby created and established in Alcorn County, Mississippi, a council whose purpose is the promotion of tourism in said county. The organization so created shall be named the "Corinth Area Tourism Promotion Council."

(2) The council shall be domiciled in Alcorn County. It shall have authority to sue and be sued and to promulgate and enact all bylaws, rules and regulations necessary or advantageous to the purpose of the council.

(3) The council shall have jurisdiction and authority over all matters relating to establishing, promoting and developing tourism, along with related matters, in Alcorn County, Mississippi. The council is authorized to purchase, sell, own, lease, rent, option or otherwise furnish, equip and operate any and all real property, facilities and equipment necessary or useful in the promotion of tourism and to receive and expend, subject to the provisions of this act, revenues from any source.

(4) The council is authorized to employ personnel, obtain supplies, furnishings and other facilities necessary to administer the affairs and duties of the council and to pay for same out of the revenue provided by this act.

(5) The council is authorized to borrow money to pay its operating obligations that cannot be paid at maturity out of current revenue from the tax authorized herein, but the amount so borrowed shall in no case exceed the estimated income of the council as shown by the budget adopted prior to that time, and the tax income of the council, as shown by the budget, shall be dedicated and set aside to the payment of the certificates of indebtedness as they mature.

Section 3. (1) The council shall be composed of nine (9) members who shall be known as directors. The directors shall serve without compensation and shall be appointed and qualified to take office within thirty (30) days after the effective date of Senate Bill No. 3281, 1995 Regular Session. The initial appointments to the council shall be for the following terms:

(a) Three (3) members of the council shall be nominated by the Corinth Area Restaurant Association. One (1) of these members shall be nominated for a term of one (1) year, one (1) member for two (2) years, and one (1) member for three (3) years. In the event that there is no Corinth Area Restaurant Association, then the Mayor and Board of Aldermen of the City of Corinth and the Board of Supervisors of Alcorn County shall jointly appoint three (3) members of the council * * *. One (1) of these members shall be appointed for a term of one (1) year, one (1) member for two (2) years, and one (1) member for three (3) years.

(b) Two (2) members of the council shall be nominated by the Corinth Area Hotel/Motel/Inn/Bed and Breakfast Association. One (1) member shall be nominated for a term of one (1) year and one (1) member for a term of two (2) years. In the event that there is no Corinth Area Hotel/Motel/Inn/Bed and Breakfast Association, then the Mayor and Board of Aldermen of the City of Corinth and the Board of Supervisors of Alcorn County shall jointly appoint two (2) members of the council * * *. One (1) member shall be appointed for a term of one (1) year and one (1) member for a term of two (2) years.

(c) (i) Through October 17, 2008, one (1) member of the council shall be appointed by the Mayor and Board of Aldermen of the City of Corinth for a term of three (3) years and one (1) member shall be appointed by the Mayor and Board of Alderman of the City of Corinth for a term to begin within fifteen (15) days after the effective date of Senate Bill No. 3223, 2007 Regular Session, and to end on October 17, 2008.

(ii) From and after October 18, 2008, two (2) members of the council shall be appointed by the Mayor and Board of Aldermen of the City of Corinth for a term of four (4) years.

(d) (i) Through October 17, 2007, one (1) member of the council shall be appointed by the Board of Supervisors of Alcorn County for a term of four (4) years and one (1) member shall be appointed by the Board of Supervisors of Alcorn County for a term to begin within fifteen (15) days after the effective date of Senate Bill No. 3223, 2007 Regular Session, and to end on October 17, 2007.

(ii) From and after October 18, 2008, two (2) members of the council shall be appointed by the Board of Supervisors of Alcorn County for a term of four (4) years.

(2) All nominations made under Sections 1(a) and 1(b) above, and all successive nominations to those positions on the council, shall be jointly approved and appointed by the Mayor and Board of Aldermen of the City of Corinth and the Board of Supervisors of Alcorn County.

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(3) All succeeding appointments shall be for a term of four (4) years from the date of expiration of the initial appointment. Any vacancy which may occur shall be filled in the same manner as the original appointment and shall be made for the unexpired term. Each director shall serve until his successor is appointed and qualified.

(4) Any director may be disqualified and removed from office for, any one (1) of the following reasons:

(a) Conviction of a felony; or

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

(c) Any breach of the duties of care and loyalty normally required of corporate directors under the laws of the State of Mississippi which is reckless or intentional.

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

A director may be removed for any of the reasons listed above by joint action of the Mayor and Board of Aldermen of the City of Corinth and the Board of Supervisors of Alcorn County.

(5) Before assuming the duties of office, each appointed director and each employee of the Corinth Area Tourism Promotion Council shall enter into and give bond in the sum of One Hundred Thousand Dollars ($100,000.00), to be approved by the Secretary of State of the State of Mississippi and conditioned upon the faithful performance of his duties. Such bond shall be payable to the State of Mississippi, and, in the event of a breach thereof, suit shall be brought only by the State of Mississippi for the benefit of the council. The premiums on said bond shall be paid from the funds received by the council under the provisions of this act.

(6) The directors so appointed shall elect from among themselves a chairman. In addition to the chairman, the council shall elect from its membership a vice-chairman, secretary and treasurer. The offices of secretary and treasurer may be combined if the council so elects. Elections for all these positions shall be held annually, within two (2) months prior to the appointment and qualification of the new council members.

(7) Five (5) directors shall constitute a quorum for the transaction of any and all business of the council.

Section 4. (1) For the purpose of providing funds for the promotion of tourism, there is hereby authorized a tax which may be designated as a "tourist promotion tax" to be levied upon every person engaging in or doing business in the City of Corinth, as specified herein.

(2) Such tax shall not exceed two percent (2%) of the gross revenue derived from the occupancy of inns, bed and breakfast establishments, and hotel and motel rooms located in the City of Corinth. The tax shall apply to all inns, bed and breakfast establishments, and hotels and motels as defined herein. For the purpose of calculating gross revenues derived from the occupancy of inns, bed and breakfast establishments, and hotel and motel rooms, the gross revenue, sales or income of all such establishments owned, operated or controlled by the same person, persons or corporation may be aggregated.

(3) Such tax shall also include, but not exceed, two percent (2%) of the gross revenue derived from the sale of prepared food and beverages by restaurants within the City of Corinth. Where fifty percent (50%) or more of the gross revenue of a restaurant derives from the sale of prepared food, the tax shall be assessed upon the gross revenue derived from the sale of all foods and beverages served by such restaurant. Where less than fifty percent (50%) of the gross revenue of a restaurant derives from the sale of prepared food, the tax shall only be assessed upon the gross revenue derived from the sale of prepared foods. This tax shall apply to all restaurants as defined herein. For the purpose of calculating the gross revenue derived from the sale of prepared foods and beverages, the gross revenue, sales or income of all restaurants, located within the city limits of the City of Corinth owned, operated or controlled by the same person, persons, corporation or other business entity may be aggregated.

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

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

(6) The proceeds of such tax, less three percent (3%) to be retained by the State Tax Commission to defray the costs of collections, shall be paid to the City of Corinth and Alcorn County jointly on or before the fifteenth day of the month following the month in which collected and shall be deposited into a joint city and county account.

(7) The proceeds of said tax shall not be considered by the city or county as general fund revenues, but shall be dedicated to and used by the council solely for the purpose of carrying out programs and activities designed to attract tourists to the city and surrounding area.

(8) The tax herein authorized shall be supplemental to and in addition to all other taxes which the City of Corinth may now or hereafter levy and shall not be construed to limit or restrict any presently existing taxing authority.

Section 5. (1) The council shall adopt a budget of receipts and expenditures which shall be reviewed and approved by the Mayor and Board of Aldermen of the City of Corinth and the Board of Supervisors of Alcorn County. The first budget shall cover the period beginning with the effective date of the tax and ending with the end of the fiscal year of the city and county. Thereafter, the budget shall be on the same fiscal basis as the city and county budgets. The city and county shall pay to the council from the joint city and county account established in Section 4(8), monthly, or at such other interval as the Mayor and Board of Aldermen of the City of Corinth and the Board of Supervisors of Alcorn County shall jointly establish, an amount equal to the approved budget of the council. For at least the first five (5) years after the effective date of the tax, no less than fifty percent (50%) of the budgeted expenditures shall be designated for a "capital project" or "capital projects" including, but not limited to, the planning, studying, designing, constructing, furnishing and equipping of a multipurpose building and/or the financing thereof. Without limiting the generality of the foregoing, at least fifty percent (50%) of the budgeted expenditures may be used to directly pay for planning, studying, designing, constructing, furnishing and equipping of a multipurpose building and/or the financing of the building and/or may be used for retirement of any indebtedness created for the purpose of planning, studying, designing, constructing, furnishing and equipping of a multipurpose building and/or the financing of a multipurpose building including, but not limited to, the retirement of bonds issued for said purpose or for repayment of funds borrowed for said purpose. Fifty percent (50%) of the budgeted expenditures shall continue to be used for retirement of any such indebtedness as long as such indebtedness, or any renewal thereof, remains outstanding, in whole or in part. Thereafter, not less than fifty percent (50%) of the budgeted expenditures shall be allocated to marketing and promotion as defined herein. These allocation requirements may be suspended during any fiscal year by an affirmative recommendation of at least five (5) council members and approval of the Mayor and Board of Aldermen of the City of Corinth and the Board of Supervisors of Alcorn County. Any such suspension shall only be effective for the fiscal year in which it is approved, but the exercise of this power in any one fiscal year shall not prevent the exercise of this power in any successive fiscal years.

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(2) The council shall employ a certified public accountant or an accounting firm composed of certified public accountants to review the monthly receipts and expenditures of the council and to prepare monthly financial reports reflecting said receipts and expenditures and allocating them to the appropriate budgetary categories. These monthly reports shall be reviewed by the council and shall be available for public inspection at the office of the council during regular business hours.

(3) The books of the council shall be audited annually by an independent certified public accountant, who may or may not be the same accountant who prepares the monthly financial reports, and said accountant shall make a written report of his audit to the council, which will thereupon submit copies of the report to the city, county and State Auditor. Such audit shall be made and completed as soon as practicable after the close of the fiscal year and shall reflect whether the council has met the budgetary requirements set forth herein. Copies of the report of said audit shall be filed with the city, county and State Auditor within fifteen (15) days after receipt thereof by the council.

(4) Organizations seeking funding from the council for capital projects, events, marketing or tourism promotion shall submit a written application to the council therefor. Said application shall include the name of the organization, a description of the project, event or promotion to be supported, the specific dollar amount requested, the projected tourism impact of the project, event or promotion, and any other information which the council may require. Said application shall also provide that the council, in its discretion, may either have sufficient access to the project, event or promotion to prepare a tracking report of the tourism impact or may require the organization to collect the data necessary for preparation of such a tracking report.

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