House Bill 896

AN ACT TO ESTABLISH A LOCAL GOVERNMENTS MSWIN INFRASTRUCTURE AND EQUIPMENT REVOLVING LOAN PROGRAM FOR THE PURPOSE OF ASSISTING COUNTIES AND MUNICIPALITIES IN MAKING PURCHASES THAT ARE NEEDED TO BE ABLE TO PARTICIPATE IN THE MISSISSIPPI WIRELESS INFORMATION NETWORK (MSWIN); TO PROVIDE THAT THE PROGRAM SHALL BE ADMINISTERED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY; TO DEFINE "MSWIN PARTICIPATION PURCHASES" FOR THE PURPOSES OF THE LOAN PROGRAM; TO CREATE A SPECIAL FUND IN THE STATE TREASURY, DESIGNATED AS THE "LOCAL GOVERNMENTS MSWIN INFRASTRUCTURE AND EQUIPMENT REVOLVING LOAN FUND"; TO PRESCRIBE THE MANNER IN WHICH FUNDS UNDER THIS ACT MAY BE MADE AVAILABLE TO AND EXPENDED BY COUNTIES AND MUNICIPALITIES; TO PRESCRIBE THE POWERS AND DUTIES OF THE MISSISSIPPI DEVELOPMENT AUTHORITY UNDER THE PROVISIONS OF THIS ACT; TO PROVIDE FOR THE ISSUANCE OF NOT MORE THAN $20,000,000.00 IN STATE GENERAL OBLIGATION BONDS TO FUND THE LOCAL GOVERNMENTS CAPITAL IMPROVEMENTS REVOLVING LOAN FUND; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) There is established a Local Governments MSWIN Infrastructure and Equipment Revolving Loan Program to be administered by the Mississippi Development Authority for the purpose of assisting counties and municipalities in making purchases that are needed to be able to participate in the Mississippi Wireless Information Network (MSWIN).

(2) For purposes of this act, "MSWIN participation purchases" include any combination of the following:

(a) Network infrastructure purchases. Purchases that are necessary for a county or municipality to enhance the MSWIN coverage in a specific area of the state. These types of purchases include, but are not limited to, equipment, installation and engineering services and costs for maintenance of the equipment. Examples of this type of equipment include, but are not limited to, repeaters, antennas and lines, microwave backhaul, radio access network (RAN) and eNodeBs, and the average useful life of this equipment is fifteen (15) to twenty (20) years.

(b) Subscriber equipment. Purchases of end user devices that are necessary for a county or municipality to use the MSWIN network, and may include services for installation and costs for maintenance of the equipment. Examples of this type of equipment include, but are not limited to, P25-compatible two-way radios, batteries, chargers, modems, consoles, LTE handhelds and LTE tablets, and the average useful life of this equipment is five (5) to seven (7) years.

SECTION 2. (1) There is created a special fund in the State Treasury to be designated as the "Local Governments MSWIN Infrastructure and Equipment Revolving Loan Fund," which fund shall consist of such monies as provided in Sections 4 through 18 of this act. The fund shall be maintained in perpetuity for the purposes established in this act. 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 fund. Monies in the fund may not be used or expended for any purpose except as authorized under this act.

(2) A county or municipality may apply to the Mississippi Development Authority for a loan under the Local Governments MSWIN Infrastructure and Equipment Revolving Loan Program established under this act for making MSWIN participation purchases.

(3) (a) The Mississippi Development Authority shall establish a loan program by which loans, at the rate of interest provided for in paragraph (b) of this subsection, may be made available to counties and municipalities to assist counties and municipalities in making MSWIN participation purchases. Loans from the revolving fund may be made to counties and municipalities as set forth in a loan agreement in amounts not to exceed one hundred percent (100%) of the cost of eligible MSWIN participation purchases as established by the Mississippi Development Authority. The Mississippi Development Authority may require county or municipal participation or funding from other sources, or otherwise limit the percentage of costs covered by loans from the revolving fund. The Mississippi Development Authority may establish a maximum amount for any loan and/or a maximum amount for all loans made to any one (1) county or municipality, in order to provide for broad and equitable participation in the program.

(b) The rate of interest on loans made from the Local Governments MSWIN Infrastructure and Equipment Revolving Loan Fund for MSWIN participation purchases shall be at the rate of the lesser of two percent (2%) per annum, calculated according to the actuarial method, or the true interest cost on the most recent issue of state general obligation bonds occurring before the date such loan is made.

(4) A county that receives a loan from the revolving 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. A municipality that receives a loan from the revolving 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. Each loan agreement shall provide for (i) monthly payments, (ii) semiannual payments, or (iii) other periodic payments, the annual total of which shall not exceed the annual total for any other year of the loan by more than fifteen percent (15%). The loan agreement shall provide for the repayment of all funds received not later than the end of the maximum average useful life for the equipment purchased, as specified in subsection (2) of Section 1 of this act.

(5) The State Auditor, upon request of the Mississippi Development Authority, shall audit the receipts and expenditures of a county or a municipality whose loan payments appear to be in arrears, and if he finds that the county or municipality is in arrears in such payments, he shall immediately notify the State Fiscal Officer, who shall withhold all future payments to the county of homestead exemption reimbursements under Section 27-33-77 and all sums allocated to the municipality under Section 27-65-75 until such time as the county or the municipality is again current in its loan payments as certified by the Mississippi Development Authority.

(6) MSWIN participation purchases that are made using funds from loans from the Local Governments MSWIN Infrastructure and Equipment Revolving Loan Fund shall be subject to review and/or approval of the Wireless Communication Commission created under Section 25-53-171, in accordance with the rules of the commission, if the amount of the purchase exceeds the minimum amount prescribed in the rules of the commission for review and/or approval.

(7) Evidences of indebtedness that are issued under this act shall not be deemed indebtedness within the meaning specified in Section 21-33-303 with regard to municipalities, and in Section 19-9-5 with regard to counties.

SECTION 3. In administering the provisions of this act, the Mississippi Development Authority shall have the following powers and duties:

(a) To supervise the use of all funds made available under this act for MSWIN participation purchases by counties and municipalities;

(b) To review and certify all MSWIN participation purchases for which funds are authorized to be made available under this act;

(c) To requisition monies in the Local Governments MSWIN Infrastructure and Equipment Revolving Loan Fund and distribute those monies on a individual purchase basis in accordance with the provisions of this act;

(d) To insure that the funds made available to a county or a municipality under this act provide for an equitable distribution of MSWIN participation purchases and funds among the counties and municipalities;

(e) To maintain an accurate record of all funds made available to counties and municipalities under this act and the costs for each MSWIN participation purchase;

(f) To prescribe any conditions for receiving a loan under this act, and prescribe the terms of repayment of loans made under this act, which may include, but not be limited to, requiring counties and municipalities to pay a service fee or fees in addition to the principal and interest on the loan, and/or purchasing insurance to cover damage to equipment purchased with the loan;

(g) To adopt and promulgate such rules and regulations as may be necessary or desirable for the purpose of implementing the provisions of this act; and

(h) To file annually with the Legislature a report detailing how monies in the Local Governments MSWIN Infrastructure and Equipment Revolving Loan Fund were spent during the preceding fiscal year in each county and municipality, the number of MSWIN participation purchases approved and made, and the cost of each purchase.

SECTION 4. (1) The State Bond Commission, at one time, or from time to time, may declare by resolution the necessity for issuance of general obligation bonds of the State of Mississippi to provide funds for all costs incurred or to be incurred for the purposes described in Section 2 of this act. Upon the adoption of a resolution by the Mississippi Development Authority, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this section, the Mississippi Development Authority shall deliver a certified copy of its resolution or resolutions to the State Bond Commission. Upon receipt of such resolution, the State Bond Commission, in its discretion, may act as the issuing agent, prescribe the form of the bonds, determine the appropriate method for sale of the bonds, advertise for and accept bids or negotiate the sale of the bonds, issue and sell the bonds so authorized to be sold and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The total amount of bonds issued under Sections 4 through 18 of this act shall not exceed Twenty Million Dollars ($20,000,000.00).

(2) Proceeds from the sale of bonds shall be deposited in the Local Governments MSWIN Infrastructure and Equipment Revolving Loan Fund. Any investment earnings on amounts deposited into the revolving loan fund shall be used to pay debt service on bonds issued under Sections 4 through 18 of this act, in accordance with the proceedings authorizing issuance of such bonds.

SECTION 5. The principal of and interest on the bonds authorized under Section 4 of this act shall be payable in the manner provided in this section. Such bonds shall bear such date or dates, be in such denomination or denominations, bear interest at such rate or rates (not to exceed the limits set forth in Section 75-17-101, Mississippi Code of 1972), be payable at such place or places within or without the State of Mississippi, shall mature absolutely at such time or times not to exceed twenty-five (25) years from date of issue, be redeemable before maturity at such time or times and upon such terms, with or without premium, shall bear such registration privileges, and shall be substantially in such form, all as determined by resolution of the State Bond Commission.

SECTION 6. The bonds authorized by Section 4 of this act shall be signed by the Chairman of the State Bond Commission, or by his facsimile signature, and the official seal of the commission shall be affixed thereto, attested by the Secretary of the State Bond Commission. The interest coupons, if any, to be attached to such bonds may be executed by the facsimile signatures of such officers. Whenever any such bonds have been signed by the officials designated to sign the bonds who were in office at the time of such signing but who may have ceased to be such officers before the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the signatures of such officers upon such bonds and coupons shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially signing such bonds had remained in office until their delivery to the purchaser, or had been in office on the date such bonds may bear. However, notwithstanding anything herein to the contrary, such bonds may be issued as provided in the Registered Bond Act of the State of Mississippi.

SECTION 7. All bonds and interest coupons issued under the provisions of Sections 4 through 18 of this act have all the qualities and incidents of negotiable instruments under the provisions of the Uniform Commercial Code, and in exercising the powers granted by this chapter, the State Bond Commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.

SECTION 8. The State Bond Commission shall act as issuing agent for the bonds authorized under Section 4 of this act, prescribe the form of the bonds, determine the appropriate method for sale of the bonds, advertise for and accept bids or negotiate the sale of the bonds, issue and sell the bonds so authorized to be sold, pay all fees and costs incurred in such issuance and sale, and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The State Bond Commission is authorized and empowered to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under Sections 4 through 18 of this act from the proceeds derived from the sale of such bonds. The State Bond Commission may sell such bonds on sealed bids at public sale or may negotiate the sale of the bonds for such price as it may determine to be for the best interest of the State of Mississippi. All interest accruing on such bonds so issued shall be payable semiannually or annually.

If such bonds are sold by sealed bids at public sale, notice of the sale shall be published at least one time, not less than ten (10) days before the date of sale, and shall be so published in one or more newspapers published or having a general circulation in the City of Jackson, Mississippi, selected by the commission.

The State Bond Commission, when issuing any bonds under the authority of Sections 4 through 18 of this act, may provide that bonds, at the option of the State of Mississippi, may be called in for payment and redemption at the call price named therein and accrued interest on such date or dates named therein.

SECTION 9. The bonds issued under the provisions of Sections 4 through 18 of this act are general obligations of the State of Mississippi, and for the payment thereof the full faith and credit of the State of Mississippi is irrevocably pledged. If the funds appropriated by the Legislature are insufficient to pay the principal of and the interest on such bonds as they become due, then the deficiency shall be paid by the State Treasurer from any funds in the State Treasury not otherwise appropriated. All such bonds shall contain recitals on their faces substantially covering the provisions of this section.

SECTION 10. Upon the issuance and sale of bonds under the provisions of Sections 4 through 18 of this act, the State Bond Commission shall transfer the proceeds of any such sale or sales to the Local Governments MSWIN Infrastructure and Equipment Revolving Loan Fund. The proceeds of such bonds shall be disbursed solely upon the order of the Mississippi Development Authority under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds.

SECTION 11. The bonds authorized under Sections 4 through 18 of this act may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions and things that are specified or required by Sections 4 through 18 of this act. Any resolution providing for the issuance of bonds under the provisions of Sections 4 through 18 of this act shall become effective immediately upon its adoption by the State Bond Commission, and any such resolution may be adopted at any regular or special meeting of the State Bond Commission by a majority of its members.

SECTION 12. The bonds authorized under the authority of Sections 4 through 18 of this act may be validated in the Chancery Court of the First Judicial District of Hinds County, Mississippi, in the manner and with the force and effect provided by Chapter 13, Title 31, Mississippi Code of 1972, for the validation of county, municipal, school district and other bonds. The notice to taxpayers required by such statutes shall be published in a newspaper published or having a general circulation in the City of Jackson, Mississippi.

SECTION 13. Any holder of bonds issued under the provisions of Sections 4 through 18 of this act or of any of the interest coupons pertaining thereto may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights granted under Sections 4 through 18 of this act, or under such resolution, and may enforce and compel performance of all duties required by Sections 4 through 18 of this act to be performed, in order to provide for the payment of bonds and interest thereon.

SECTION 14. All bonds issued under the provisions of Sections 4 through 18 of this act shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi, and such bonds shall be legal securities that may be deposited with and shall be received by all public officers and bodies of this state and all municipalities and political subdivisions for the purpose of securing the deposit of public funds.

SECTION 15. Bonds issued under the provisions of Sections 4 through 18 of this act and income from the bonds shall be exempt from all taxation in the State of Mississippi.

SECTION 16. The proceeds of the bonds issued under Sections 4 through 18 of this act shall be used solely for the purposes provided in this act, including the costs incident to the issuance and sale of such bonds.

SECTION 17. The State Treasurer is authorized to certify to the Department of Finance and Administration the necessity for warrants, and the State Fiscal Officer is authorized and directed to issue such warrants, in such amounts as may be necessary to pay when due the principal of, premium, if any, and interest on, or the accreted value of, all bonds issued under Sections 4 through 18 of this act; and the State Treasurer shall forward the necessary amount to the designated place or places of payment of such bonds in ample time to discharge such bonds, or the interest thereon, on the due dates thereof.

SECTION 18. Sections 4 through 18 of this act shall be deemed to be full and complete authority for the exercise of the powers granted in those sections, but Sections 4 through 18 of this act shall not be deemed to repeal or to be in derogation of any existing law of this state.

SECTION 19. This act shall take effect and be in force from and after July 1, 2014.