House Bill 1092

AN ACT TO AMEND SECTION 65-4-7, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE MISSISSIPPI DEPARTMENT OF TRANSPORTATION TO APPLY FOR ASSISTANCE FROM THE ECONOMIC DEVELOPMENT HIGHWAY FUND TO CONSTRUCT OR IMPROVE HIGHWAYS OR HIGHWAY SEGMENTS TO ENCOURAGE A PRIVATE COMPANY TO ENGAGE IN A HIGH ECONOMIC BENEFIT PROJECT; TO AMEND SECTIONS 65-4-9, 65-4-11, 65-4-13 AND 65-4-15, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 65-4-7, Mississippi Code of 1972, is amended as follows:

65-4-7. If a political subdivision or the department desires assistance from the Economic Development Highway Fund in order to construct or improve any highways or highway segments, the primary purpose of such construction or improvement being to encourage a private company to engage in a high economic benefit project within the geographic boundaries of the political subdivision, if the application is being made by a political subdivision, or the state if the application is being made by the department, the political subdivision or the department may apply to the Mississippi Development Authority for * * * assistance. The application * * * shall include, but not be limited to:

(a) A description of the highways or highway segments requested to be constructed or improved;

(b) A certified resolution from the governing authorities of the political subdivision or the Mississippi Transportation Commission detailing the source and amount of funds which the political subdivision or the department has committed or is willing to commit for construction or improvement of the highways or highway segments;

(c) A certified copy of a signed letter of intent from the private company to the political subdivision or the department describing in detail the high economic benefit project for which it is committed to engage in construction or improvement of the highways or highway segments within the political subdivision, if the application is from a political subdivision, or within the state, if the application is from the department, and the proposed timetable for completion of the project;

(d) Demonstration that the private company is financially sound and is likely to fulfill the commitments made in its letter of intent; and

(e) An estimate by the private company of the number, size and weight of motor vehicles and the frequency of travel of those vehicles upon the highways or highway segments requested to be constructed or improved after completion of the project by the private company.

SECTION 2. Section 65-4-9, Mississippi Code of 1972, is amended as follows:

65-4-9. Upon receipt of an application * * * as provided under Section 65-4-7, * * * the Mississippi Development Authority shall review the application and may approve the application if it determines:

(a) The highways or highway segments for which the political subdivision or the department is requesting assistance in constructing or improving are necessary and essential to ensure adequate and appropriate access to the proposed project for the purpose of encouraging its location within the geographical boundaries of the political subdivision, if the application is from the political subdivision, or within the state, if the application is from the department;

(b) The project proposed by the private company is a high economic benefit project * * *;

(c) The private company has demonstrated financial soundness and appears to have * * * assets and credit worthiness as to permit it to secure necessary funds to complete the project according to its commitments; and

(d) The costs for the construction or improvement of the highways or highway segments to be funded under this chapter will not exceed the funds available in the Economic Development Highway Fund * * *.

SECTION 3. Section 65-4-11, Mississippi Code of 1972, is amended as follows:

65-4-11. Before approving any application under this chapter, the Mississippi Development Authority shall have the * * * department * * * or the political subdivision, if the political subdivision will have the construction or improvement performed, prepare and submit to it a detailed engineering study and report of all estimated costs associated with the construction and improvement of the highways and highway segments requested by the application * * * along with the estimated annual costs necessary to be expended for maintenance of the highways and highway segments. If the political subdivision will have the construction or improvement performed on a state designated highway that will be maintained by the * * * department * * *, the Mississippi Development Authority shall not approve the application of the political subdivision until the engineering study required in this section has been submitted by the Mississippi Development Authority to the * * * department * * * and has been certified by the * * * department to the Mississippi Development Authority as proposing construction or improvement of highways and highway segments that meet department standards for that work. If the political subdivision will have the construction or improvement performed on a highway that is not on the designated state highway system, the MDA shall not approve the application of the political subdivision until the engineering study required in this section has been submitted by the Mississippi Development Authority to the Office of State Aid Road Construction and has been certified by the Office of State Aid Road Construction to the Mississippi Development Authority as proposing construction or improvement of highways and highway segments that meet Office of State Aid Road Construction standards for that work.

The * * * department * * * or the Office of State Aid Road Construction, as the case may be, may recommend modifications to the location and route of those highways and highway segments proposed in the application of the political subdivision if the modifications are more cost effective and would not have a substantially negative economic impact on the project of the private company.

SECTION 4. Section 65-4-13, Mississippi Code of 1972, is amended as follows:

65-4-13. If, after reviewing the application of the department or political subdivision and the report of the department or political subdivision, the Mississippi Development Authority determines that the application meets the requirements for approval and should be approved, the Mississippi Development Authority shall notify the political subdivision and/or the Mississippi Transportation Commission of its approval and contracts may be let. Upon certification by the Mississippi Development Authority that monies currently available in the Economic Development Highway Fund are sufficient to defray the costs of the construction or improvement, then contracts with respect to the work may be executed by the * * * department or political subdivision and work necessary for the construction or improvement of the highways and highway segments so approved shall commence by the * * * department * * * or political subdivision, as determined by the Mississippi Development Authority. If the construction or improvement is by a political subdivision, the State Aid Engineer shall have the work inspected periodically during the progress of * * * construction or improvement to ensure that it meets the standards prescribed in Section 65-4-17. No application shall be approved by the Mississippi Development Authority if the total costs for constructing or improving the proposed highways or highway segments to be funded * * *, according to estimates in the report of the department or political subdivision, will exceed monies currently available in the Economic Development Highway Fund * * *.

SECTION 5. Section 65-4-15, Mississippi Code of 1972, is amended as follows:

65-4-15. (1) There is hereby established a special fund in the State Treasury to be known as the "Economic Development Highway Fund" which shall consist of such monies as the Legislature shall appropriate to the fund or such other monies as the Legislature may designate to be deposited in the fund. Any monies to the credit of the fund may be expended by the * * * department * * * or political subdivision, as appropriate, upon approval of requisitions therefor by the Mississippi Development Authority for any expenses incurred by the * * * department or political subdivision in constructing and improving highways and highway segments which have been approved by the Mississippi Development Authority under the provisions of this chapter. * * *

No monies to the credit of the fund may be expended for the construction and improvement of highways for high economic benefit projects that are being developed for the primary purpose of conducting retail sales * * *. The Office of State Aid Road Construction shall be entitled to reimbursement from monies in the fund, upon approval by the Mississippi Development Authority of requisitions therefor by the State Aid Engineer, for the actual expenses incurred by the office in administering and providing engineering services to political subdivisions. Monies remaining unexpended to the credit of the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on * * * monies in the * * * fund shall be deposited to the credit of the fund.

(2) Monies in the Economic Development Highway Fund which are derived from proceeds of bonds issued under this chapter after July 1, 2003, may be used to reimburse reasonable actual and necessary costs incurred by the Mississippi Development Authority in providing assistance * * * related to a project for which funding is provided from the use of proceeds of those bonds. An accounting of actual costs incurred for which reimbursement is sought shall be maintained for each project by the Mississippi Development Authority. Reimbursement of reasonable actual and necessary costs for a project shall not exceed three percent (3%) of the proceeds of bonds issued for such a project. Monies authorized for a particular project may not be used to reimburse administrative costs for unrelated projects. Reimbursements to the Mississippi Development Authority under this subsection shall satisfy any applicable federal tax law requirements.

SECTION 6. This act shall take effect and be in force from and after its passage.