MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Judiciary A; Appropriations
By: Representative Moak
AN ACT TO CREATE THE EUGENICS ASEXUALIZATION AND STERILIZATION COMPENSATION PROGRAM; TO PROVIDE THAT SUCH PROGRAM SHALL COMPENSATE THOSE WHO WERE INVOLUNTARILY STERILIZED FROM THE EARLY 1930S UNTIL 1963 BY THE STATE; TO PROVIDE CERTAIN DEFINITIONS; TO REQUIRE COMPENSATION BE PAID TO ELIGIBLE INDIVIDUALS UNDER THE PROGRAM; TO PROVIDE THAT INDIVIDUALS MAY OFFER PROOF TO THE TORT CLAIMS BOARD WHO SHALL MAKE ELIGIBILITY DETERMINATIONS FOR COMPENSATION FOR THE INDIVIDUALS; TO PROVIDE AN APPEALS PROCESS FOR THOSE DENIED COMPENSATION; TO CREATE THE DIVISION OF JUSTICE FOR STERILIZATION VICTIMS WITHIN THE OFFICE OF THE ATTORNEY GENERAL; TO PROVIDE THAT THE DIVISION SHALL ASSIST INDIVIDUALS WITH THEIR CLAIMS FOR COMPENSATION IN CERTAIN SITUATIONS; TO PROVIDE THAT ALL INQUIRIES OF ELIGIBILITY, CLAIMS AND PAYMENTS SHALL BE CONFIDENTIAL AND SHALL NOT BE PUBLIC RECORDS; TO EXCLUDE COMPENSATION RECEIVED UNDER THE PROGRAM FROM GROSS INCOME; TO REQUIRE THE DEPARTMENT OF HUMAN SERVICES TO DISREGARD ANY COMPENSATION AWARDED UNDER THIS ACT; TO REQUIRE THE DEPARTMENT TO AMEND ITS STATE PLAN SUBMITTED TO THE CENTERS FOR MEDICARE AND MEDICAID SERVICES TO ALLOW FOR INCOME, RESOURCE AND ASSET DISREGARD FOR COMPENSATION RECEIVED UNDER THE PROGRAM AS INCOME, RESOURCES OR ASSETS; TO CREATE WITHIN THE STATE TREASURY A SPECIAL FUND DESIGNATED AS THE "EUGENICS STERILIZATION COMPENSATION FUND"; TO PROVIDE CERTAIN FUNDING FOR THE DIVISION OF JUSTICE FOR STERILIZATION VICTIMS; TO AMEND SECTIONS 11-46-19 AND 27-7-17, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be cited as the "Eugenics Asexualization and Sterilization Compensation Program."
SECTION 2. For purposes of this act, the following words and terms shall have the meanings ascribed in this section unless the context clearly indicates otherwise:
(a) "Board" means the Mississippi Tort Claims Board.
(b) "Claimant" means an individual on whose behalf a claim is made for compensation as a qualified recipient under this act. An individual must be alive on June 30, 2014, in order to be a claimant.
(c) "Division" means the Division of Justice for Sterilization Victims within the Office of the Attorney General.
(d) "Involuntary" means in the case of the following:
(i) A minor child, either with or without the consent of the minor child's parent, guardian or other person standing in loco parentis.
(ii) An incompetent adult, with or without the consent of the incompetent adult's guardian or pursuant to a valid court order.
(iii) A competent adult, without the adult's informed consent, with the presumption being that the adult gave informed consent.
(e) "Qualified recipient" means an individual who was asexualized involuntarily or sterilized involuntarily under the authority of the State of Mississippi in accordance with Chapter 294, General Laws of 1928, between the time period of the early 1930s until 1963.
SECTION 3. (1) (a) A claimant determined to be a qualified recipient under this act shall receive a lump-sum compensation in the amount of Fifty Thousand Dollars ($50,000.00) from funds appropriated to the Eugenics Sterilization Compensation Fund, as created under Section 10 of this act, for such purpose. The Legislature shall appropriate or utilize any funds otherwise made available by the Legislature in any manner as well as funds from any other source during the 2014 Regular Session in the amount of Ten Million Dollars ($10,000,000) to the Eugenic Sterilization Compensation Fund to compensate the qualified recipients. Except as otherwise provided in this section, all payments to the recipients shall be made on June 30, 2016. The State Treasurer shall reduce the Ten Million Dollars ($10,000,000) by holding out a pro-rata amount per claimant for any cases in which there has not been a final determination of a claim on June 30, 2016. Payments made to persons determined to be qualified claimants after that date shall be made upon such determination, and if after final adjudication of all claims there remains a balance from the funds held out, they shall be paid pro-rata to all qualified claimants.
(b) Reasonable attorney's fees for bringing a claim under this act calculated at ten percent (10%) of the amount awarded under paragraph (a) of this subsection for preparing and filing the claim, twenty percent (20%) for litigating the claim if it is contested by the Torts Claim Board, and twenty-five percent (25%) if the claim is appealed, plus expenses. These fees shall not be deducted from the compensation due the claimant, nor is counsel entitled to receive additional fees from the claimant for a claim under this section.
(2) If any claimant dies during the pendency of a claim, or after being determined to be a qualified recipient, any payment shall be made to the estate of the decedent.
(3) A qualified recipient may assign compensation received pursuant to this section to a trust established for the benefit of the qualified recipient.
SECTION 4. (1) An individual shall be entitled to compensation as provided for in this act if a claim is submitted on behalf of that individual in accordance with this act on or before June 30, 2015, and that individual is subsequently determined by a preponderance of the evidence to be a qualified recipient, except that any competent adult who gave consent is not a qualified recipient unless that individual can show by a preponderance of the evidence that the consent was not informed.
(2) A claim under this act shall be submitted to the Tort Claims Board. The claim shall be in a form and supported by appropriate documentation and information as required by the board. A claim may be submitted on behalf of a claimant by a person lawfully authorized to act on the individual's or the individual's estate's behalf.
(3) The board shall determine the eligibility of a claimant to receive compensation as authorized under this section. The board shall notify the claimant in writing of the board's determination regarding the claimant's eligibility.
(4) The board shall adopt rules and procedures for the determination of eligibility and the processing of claims.
SECTION 5. (1) The executive director of the board shall make the initial determination of eligibility for compensation under this act. The executive director of the board shall review the claim and supporting documentation submitted on behalf of a claimant and shall make a determination of eligibly. In any case where the claimant was a competent adult when asexualized or sterilized, the burden is on the claimant to rebut the presumption that the claimant gave informed consent. If the claim is not approved, the executive director of the board shall set forth in writing the reasons for the disapproval and notify the claimant.
(2) A claimant whose claim is not approved under subsection (1) of this section may submit to the board additional documentation in support of the individual's claim and request a redetermination by the executive director of the board.
(3) A claimant whose claim is not approved under subsection (1) or (2) of this section shall have the right to request a hearing before the executive director of the board. The hearing shall be conducted in accordance with rules and procedures of the board. For claimants who are residents of this state, at the request of the claimant, the hearing shall be held in the county of residence of the claimant. For claimants who are not residents of this state, the hearing shall be held in Hinds County or at a location of mutual convenience as determined by the executive director of the board. The claimant shall have the right to be represented, including the right to be represented by counsel, present evidence, and call witnesses. The executive director of the board who hears the claim shall issue a written decision of eligibility which shall be sent to the claimant.
(4) Upon the issuance of a decision by the executive director of the board, as authorized under subsection (3) of this section, the claimant may file notice of appeal with the board within thirty (30) days of the date the decision of the executive director of the board is given. The appeal shall be heard by the board, sitting as the full board, on the basis of the record in the matter and upon oral argument. The full board may amend, set aside or strike out the decision of the executive director of the board and may issue its own findings of fact, conclusions of law and decision. The board shall notify all parities concerned in writing of its decision.
(5) A claimant may appeal the decision of the full board to the Chancery Court of, the First Judicial District of Hinds County, Mississippi, within thirty (30) days of the date of the decision of the full board is given.
(7) If at any stage of the proceedings the claimant is determined to be a qualified recipient, the board shall give notice to the claimant and the Department of Finance and Administration shall make payment of compensation to the qualified recipient or a trust specified as authorized under Section 3 of this act.
(8) Decisions and determinations by the board favorable to the claimant shall be final and not subject to appeal by the state.
(9) Costs under this section shall be taxed to the state.
SECTION 6. (1) There is created the Division of Justice for Sterilization Victims within the Office of the Attorney General. The Attorney General shall determine the staffing needed to perform the duties prescribed under this section and needed funding for the division shall be adhered to as presribed under Section 11 of this act.
(2) At the request of a claimant or a claimant's legal representative, the division shall assist an individual who may be a qualified recipient to determine whether the individual qualifies for compensation under this act. The division may assist an individual filing a claim under this act and may collect documentation in support of the claim. With the claimant's consent, the division may represent and advocate for the claimant before the board and may assist the claimant with any good-faith further appeal of an adverse decision on a claim.
(3) The division shall plan and implement an outreach program to attempt to notify individuals who may be possible qualified recipients.
SECTION 7. Records of all inquirers of eligibility, claims, and payments under this act shall be confidential and not public records as prescribed under Section 12 of this act.
SECTION 8. (1) Any payment made under this section shall not be considered income or assets for purposes of determining the eligibility for, or the amount of any benefits or assistance under any state or local program financed, in whole or in part, with state funds.
(2) The Department of Human Services shall do the following:
(a) Provide income, resource and asset disregard to an applicant for or recipient of public assistance who receives compensation under this act. The amount of the income, resource and asset disregard shall be equal to the total compensation paid to the individuals from the Eugenics Sterilization Compensation Fund.
(b) Provide resource protection by reducing any subsequent recovery by the state from a deceased recipient's estate for payment of Medicaid-paid services by the amount of resource disregard given under paragraph (a) of this subsection.
(c) Adopt rules to implement the provisions of paragraphs (a) and (b) of this subsection.
(d) Submit to the Centers for Medicare and Medicaid Services by August 1, 2014, a State Plan Amendment for the Medical Assistance Program and a State Plan Amendment for the Children's Health Insurance Program to allow for income, resource and asset disregard for compensation payments under this act.
SECTION 9. Nothing in this act shall revive or extend any statute of limitations that may otherwise have expired prior to July 1, 2014. The state's liability arising from any cause of action related to any asexualazation or sterilization performed pursuant to Chapter 294, General Laws of 1928, shall be limited to the compensation authorized under this act.
SECTION 10. There is created within the State Treasury a special fund designated as the "Eugenics Sterilization Compensation Fund" which shall be used to pay the compensation authorized under Section 3 of this act. The fund shall be administered by the Department of Finance and Administration. Monies in the fund shall not be expended or transferred except in accordance with Section 3 of this act. Except as provided in Section 11 of this act, monies in the fund shall remain until all claims timely filed with the board as prescribed under this act have been finally adjudicated and all qualified recipients who timely submit claims are paid. The Department of Finance and Administration and its handling of the fund are subject to the oversight of the State Auditor.
SECTION 11. Of the funds appropriated to the Eugenics Sterilization Compensation Fund, the sum of One Hundred Twenty-three Thousand Seven Hundred Forty-eight Dollars ($123,748.00) shall be transferred to the Division of Justice for Sterilization Victims to pay the continued operations of the division for the 2015-2016 fiscal year.
SECTION 12. (1) Records in the custody of the state concerning the Eugenics Asexualization and Sterilization Compensation Program are confidential and shall be exempt from the Mississippi Public Records Act of 1983 and are not public records, including the records identifying the following:
(a) Individuals impacted by the program;
(b) Individuals or their guardians or authorized agents inquiring about the impact of the program on the individuals; or
(c) Individuals or their guardians or authorized agents inquiring about the potential impact of the program on others.
(2) Notwithstanding subsection (1) of this section, an individual impacted by the program or a guardian or authorized agent of that individual may obtain that individual's records under the program upon execution of a proper release authorization.
(3) Notwithstanding subsections (1) and (2) of this section, minutes or reports of those asexualized involuntary or sterilized involuntarily under the authority of the State of Mississippi in accordance with Chapter 294, General Laws of 1928, for which identifying information of the individuals impacted by such acts have been redacted, may be released to any person. As used under this section, "indentifying information" includes the name, street address, birthday and month, and any other information the state believes may lead to the identity of any individual impacted by the acts authorized under Chapter 294, General Laws of 1928, or of any relative of an individual impacted by such acts.
SECTION 13. Section 11-46-19, Mississippi Code of 1972, is amended as follows:
11-46-19. (1) The board shall have the following powers:
(a) To provide oversight over the Tort Claims Fund;
(b) To approve any award made from the Tort Claims Fund;
(c) To pay all necessary expenses attributable to the operation of the Tort Claims Fund from such fund;
(d) To assign litigated claims against governmental entities other than political subdivisions to competent attorneys unless such governmental entity has a staff attorney who is competent to represent the governmental entity and is approved by the board; the board shall give primary consideration to attorneys practicing in the jurisdiction where the claim arose in assigning cases; attorneys hired to represent a governmental entity other than a political subdivision shall be paid according to the department fee schedule;
(e) To approve all claimants' attorney fees in claims against the state;
(f) To employ on a full-time basis a staff attorney who shall possess the minimum qualifications required to be a member of The Mississippi Bar, and such other staff as it may deem necessary to carry out the purposes of this chapter; the employees in the positions approved by the board shall be hired by the director, shall be employees of the department, and shall be compensated from the Tort Claims Fund;
(g) To contract with one or more reputable insurance consulting firms as may be necessary;
(h) To purchase any policies of liability insurance and to administer any plan of self-insurance or policies of liability insurance required for the protection of the state against claims and suits brought under this chapter;
(i) To expend money from the Tort Claims Fund for the purchase of any policies of liability insurance and the payment of any award or settlement of a claim against the state under the provisions of this chapter or of a claim against any school district, junior college or community college district, or state agency, arising from the operation of school buses or other vehicles, under the provisions of Section 37-41-42;
(j) To cancel, modify or replace any policy or policies of liability insurance procured by the board;
(k) To issue certificates of coverage to governmental entities, including any political subdivision participating in any plan of liability protection approved by the board;
(l) To review and approve or reject any plan of liability insurance or self-insurance reserves proposed or provided by political subdivisions if such plan is intended to serve as security for risks of claims and suits against them for which immunity has been waived under this chapter;
(m) To administer disposition of claims against the Tort Claims Fund;
(n) To withhold issuance of any warrants payable from funds of a participating state entity should such entity fail to make required contributions to the Tort Claims Fund in the time and manner prescribed by the board;
(o) To develop a comprehensive statewide list of attorneys who are qualified to represent the state and any employee thereof named as a defendant in a claim brought under this chapter against the state or such employee;
(p) To develop a schedule of fees for paying attorneys defending claims against the state or an employee thereof;
(q) To adopt and promulgate such reasonable rules and regulations and to do and perform all such acts as are necessary to carry out its powers and duties under this chapter;
(r) To establish and assess premiums to be paid by governmental entities required to participate in the Tort Claims Fund;
(s) To contract with a third-party administrator to process claims against the state under this chapter;
(t) To annually submit its budget request to the Legislature as a state agency;
(u) To dispose of salvage obtained in settlement or payment of any claim at fair market value by such means and upon such terms as the board may think best; and
(v) To administer the Medical Malpractice Insurance Availability Plan under Section 83-48-5. The provisions of this paragraph (v) shall stand repealed from and after the transfer of the plan's assets and liabilities as provided in Section 83-48-6(i).
(2) Policies of liability insurance purchased for the protection of governmental entities against claims and suits brought under this chapter shall be purchased pursuant to the competitive bidding procedures set forth in Section 31-7-13.
(3) The department shall have the following powers and duties:
(a) To annually report to the Legislature concerning each comprehensive plan of liability protection established pursuant to Section 11-46-17(2). Such report shall include a comprehensive analysis of the cost of the plan, a breakdown of the cost to participating state entities, and such other information as the department may deem necessary.
(b) To provide the board with any staff and meeting facilities as may be necessary to carry out the duties of the board as provided in this chapter.
(c) To submit the board's budget request for the initial year of operation of the board in order to authorize expenditures for the 1993-1994 fiscal year and for the appropriation of such general funds as shall be required for the commencement of its activities.
(4) The board shall determine the eligibility of claimants who may receive compensation under the Eugenics Asexualization and Sterilization Compensation Program. In carrying out its duties, as prescribed under this subsection, the board shall adopt all necessary rules and procedures for eligibility determinations under the program.
SECTION 14. Section 27-7-15, Mississippi Code of 1972, is amended as follows:
27-7-15. (1) For the purposes of this article, except as otherwise provided, the term "gross income" means and includes the income of a taxpayer derived from salaries, wages, fees or compensation for service, of whatever kind and in whatever form paid, including income from governmental agencies and subdivisions thereof; or from professions, vocations, trades, businesses, commerce or sales, or renting or dealing in property, or reacquired property; also from annuities, interest, rents, dividends, securities, insurance premiums, reinsurance premiums, considerations for supplemental insurance contracts, or the transaction of any business carried on for gain or profit, or gains, or profits, and income derived from any source whatever and in whatever form paid. The amount of all such items of income shall be included in the gross income for the taxable year in which received by the taxpayer. The amount by which an eligible employee's salary is reduced pursuant to a salary reduction agreement authorized under Section 25-17-5 shall be excluded from the term "gross income" within the meaning of this article.
(2) In determining gross income for the purpose of this section, the following, under regulations prescribed by the commissioner, shall be applicable:
(a) Dealers in property. Federal rules, regulations and revenue procedures shall be followed with respect to installment sales unless a transaction results in the shifting of income from inside the state to outside the state.
(b) Casual sales of property.
(i) Prior to January 1, 2001, federal rules, regulations and revenue procedures shall be followed with respect to installment sales except they shall be applied and administered as if H.R. 3594, the Installment Tax Correction Act of 2000 of the 106th Congress, had not been enacted. This provision will generally affect taxpayers, reporting on the accrual method of accounting, entering into installment note agreements on or after December 17, 1999. Any gain or profit resulting from the casual sale of property will be recognized in the year of sale.
(ii) From and after January 1, 2001, federal rules, regulations and revenue procedures shall be followed with respect to installment sales except as provided in this subparagraph (ii). Gain or profit from the casual sale of property shall be recognized in the year of sale. When a taxpayer recognizes gain on the casual sale of property in which the gain is deferred for federal income tax purposes, a taxpayer may elect to defer the payment of tax resulting from the gain as allowed and to the extent provided under regulations prescribed by the commissioner. If the payment of the tax is made on a deferred basis, the tax shall be computed based on the applicable rate for the income reported in the year the payment is made. Except as otherwise provided in subparagraph (iii) of this paragraph (b), deferring the payment of the tax shall not affect the liability for the tax. If at any time the installment note is sold, contributed, transferred or disposed of in any manner and for any purpose by the original note holder, or the original note holder is merged, liquidated, dissolved or withdrawn from this state, then all deferred tax payments under this section shall immediately become due and payable.
(iii) If the selling price of the property is reduced by any alteration in the terms of an installment note, including default by the purchaser, the gain to be recognized is recomputed based on the adjusted selling price in the same manner as for federal income tax purposes. The tax on this amount, less the previously paid tax on the recognized gain, is payable over the period of the remaining installments. If the tax on the previously recognized gain has been paid in full to this state, the return on which the payment was made may be amended for this purpose only. The statute of limitations in Section 27-7-49 shall not bar an amended return for this purpose.
(c) Reserves of insurance companies. In the case of insurance companies, any amounts in excess of the legally required reserves shall be included as gross income.
(d) Affiliated companies or persons. As regards sales, exchanges or payments for services from one to another of affiliated companies or persons or under other circumstances where the relation between the buyer and seller is such that gross proceeds from the sale or the value of the exchange or the payment for services are not indicative of the true value of the subject matter of the sale, exchange or payment for services, the commissioner shall prescribe uniform and equitable rules for determining the true value of the gross income, gross sales, exchanges or payment for services, or require consolidated returns of affiliates.
(e) Alimony and separate maintenance payments. The federal rules, regulations and revenue procedures in determining the deductibility and taxability of alimony payments shall be followed in this state.
(f) Reimbursement for expenses of moving. There shall be included in gross income (as compensation for services) any amount received or accrued, directly or indirectly, by an individual as a payment for or reimbursement of expenses of moving from one (1) residence to another residence which is attributable to employment or self-employment.
(3) In the case of taxpayers other than residents, gross income includes gross income from sources within this state.
(4) The words "gross income" do not include the following items of income which shall be exempt from taxation under this article:
(a) The proceeds of life insurance policies and contracts paid upon the death of the insured. However, the income from the proceeds of such policies or contracts shall be included in the gross income.
(b) The amount received by the insured as a return of premium or premiums paid by him under life insurance policies, endowment, or annuity contracts, either during the term or at maturity or upon surrender of the contract.
(c) The value of property acquired by gift, bequest, devise or descent, but the income from such property shall be included in the gross income.
(d) Interest upon the
obligations of the United States or its possessions, or securities issued under
the provisions of the Federal Farm Loan Act of * * * 1916, or bonds issued by the War
Finance Corporation, or obligations of the State of Mississippi or political
subdivisions thereof.
(e) The amounts received through accident or health insurance as compensation for personal injuries or sickness, plus the amount of any damages received for such injuries or such sickness or injuries, or through the War Risk Insurance Act, or any law for the benefit or relief of injured or disabled members of the military or naval forces of the United States.
(f) Income received by any religious denomination or by any institution or trust for moral or mental improvements, religious, Bible, tract, charitable, benevolent, fraternal, missionary, hospital, infirmary, educational, scientific, literary, library, patriotic, historical or cemetery purposes or for two (2) or more of such purposes, if such income be used exclusively for carrying out one or more of such purposes.
(g) Income received by a domestic corporation which is "taxable in another state" as this term is defined in this article, derived from business activity conducted outside this state. Domestic corporations taxable both within and without the state shall determine Mississippi income on the same basis as provided for foreign corporations under the provisions of this article.
(h) In case of insurance companies, there shall be excluded from gross income such portion of actual premiums received from an individual policyholder as is paid back or credited to or treated as an abatement of premiums of such policyholder within the taxable year.
(i) Income from dividends that has already borne a tax as dividend income under the provisions of this article, when such dividends may be specifically identified in the possession of the recipient.
(j) Amounts paid by the United States to a person as added compensation for hazardous duty pay as a member of the Armed Forces of the United States in a combat zone designated by Executive Order of the President of the United States.
(k) Amounts received as retirement allowances, pensions, annuities or optional retirement allowances paid under the federal Social Security Act, the Railroad Retirement Act, the Federal Civil Service Retirement Act, or any other retirement system of the United States government, retirement allowances paid under the Mississippi Public Employees' Retirement System, Mississippi Highway Safety Patrol Retirement System or any other retirement system of the State of Mississippi or any political subdivision thereof. The exemption allowed under this paragraph (k) shall be available to the spouse or other beneficiary at the death of the primary retiree.
(l) Amounts received as retirement allowances, pensions, annuities or optional retirement allowances paid by any public or governmental retirement system not designated in paragraph (k) or any private retirement system or plan of which the recipient was a member at any time during the period of his employment. Amounts received as a distribution under a Roth Individual Retirement Account shall be treated in the same manner as provided under the Internal Revenue Code of 1986, as amended. The exemption allowed under this paragraph (l) shall be available to the spouse or other beneficiary at the death of the primary retiree.
(m) National Guard or Reserve Forces of the United States compensation not to exceed the aggregate sum of Five Thousand Dollars ($5,000.00) for any taxable year through the 2005 taxable year, and not to exceed the aggregate sum of Fifteen Thousand Dollars ($15,000.00) for any taxable year thereafter.
(n) Compensation received for active service as a member below the grade of commissioned officer and so much of the compensation as does not exceed the maximum enlisted amount received for active service as a commissioned officer in the Armed Forces of the United States for any month during any part of which such members of the Armed Forces (i) served in a combat zone as designated by Executive Order of the President of the United States or a qualified hazardous duty area as defined by federal law, or both; or (ii) was hospitalized as a result of wounds, disease or injury incurred while serving in such combat zone. For the purposes of this paragraph (n), the term "maximum enlisted amount" means and has the same definition as that term has in 26 USCS 112.
(o) The proceeds
received from federal and state forestry * * * incentive programs.
(p) The amount representing the difference between the increase of gross income derived from sales for export outside the United States as compared to the preceding tax year wherein gross income from export sales was highest, and the net increase in expenses attributable to such increased exports. In the absence of direct accounting, the ratio of net profits to total sales may be applied to the increase in export sales. This paragraph (p) shall only apply to businesses located in this state engaging in the international export of Mississippi goods and services. Such goods or services shall have at least fifty percent (50%) of value added at a location in Mississippi.
(q) Amounts paid by the federal government for the construction of soil conservation systems as required by a conservation plan adopted pursuant to 16 USCS 3801 et seq.
(r) The amount deposited in a medical savings account, and any interest accrued thereon, that is a part of a medical savings account program as specified in the Medical Savings Account Act under Sections 71-9-1 through 71-9-9; provided, however, that any amount withdrawn from such account for purposes other than paying eligible medical expense or to procure health coverage shall be included in gross income.
(s) Amounts paid by the Mississippi Soil and Water Conservation Commission from the Mississippi Soil and Water Cost-Share Program for the installation of water quality best management practices.
(t) Dividends received by a holding corporation, as defined in Section 27-13-1, from a subsidiary corporation, as defined in Section 27-13-1.
(u) Interest, dividends, gains or income of any kind on any account in the Mississippi Affordable College Savings Trust Fund, as established in Sections 37-155-101 through 37-155-125, to the extent that such amounts remain on deposit in the MACS Trust Fund or are withdrawn pursuant to a qualified withdrawal, as defined in Section 37-155-105.
(v) Interest, dividends or gains accruing on the payments made pursuant to a prepaid tuition contract, as provided for in Section 37-155-17.
(w) Income resulting from transactions with a related member where the related member subject to tax under this chapter was required to, and did in fact, add back the expense of such transactions as required by Section 27-7-17(2). Under no circumstances may the exclusion from income exceed the deduction add-back of the related member, nor shall the exclusion apply to any income otherwise excluded under this chapter.
(x) Amounts that are subject to the tax levied pursuant to Section 27-7-901, and are paid to patrons by gaming establishments licensed under the Mississippi Gaming Control Act.
(y) Amounts that are subject to the tax levied pursuant to Section 27-7-903, and are paid to patrons by gaming establishments not licensed under the Mississippi Gaming Control Act.
(z) Interest, dividends, gains or income of any kind on any account in a qualified tuition program and amounts received as distributions under a qualified tuition program shall be treated in the same manner as provided under the United States Internal Revenue Code, as amended. For the purposes of this paragraph (z), the term "qualified tuition program" means and has the same definition as that term has in 26 USCS 529.
(aa) The amount deposited in a health savings account, and any interest accrued thereon, that is a part of a health savings account program as specified in the Health Savings Accounts Act created in Sections 83-62-1 through 83-62-9; however, any amount withdrawn from such account for purposes other than paying qualified medical expenses or to procure health coverage shall be included in gross income, except as otherwise provided by Sections 83-62-7 and 83-62-9.
(bb) Amounts received as qualified disaster relief payments shall be treated in the same manner as provided under the United States Internal Revenue Code, as amended.
(cc) Amounts received as a "qualified Hurricane Katrina distribution" as defined in the United States Internal Revenue Code, as amended.
(dd) Amounts received by an individual which may be excluded from income as foreign earned income for federal income tax purposes.
(ee) Amounts received by a qualified individual, directly or indirectly, from an employer or nonprofit housing organization that are qualified housing expenses associated with an employer-assisted housing program. For purposes of this paragraph (ee):
(i) "Qualified individual" means any individual whose household income does not exceed one hundred twenty percent (120%) of the area median gross income (as defined by the United States Department of Housing and Urban Development), adjusted for household size, for the area in which the housing is located.
(ii) "Nonprofit housing organization" means an organization that is organized as a not-for-profit organization under the laws of this state or another state and has as one (1) of its purposes:
1. Homeownership education or counseling;
2. The development of affordable housing; or
3. The development or administration of employer-assisted housing programs.
(iii) "Employer-assisted housing program" means a separate written plan of any employer (including, without limitation, tax-exempt organizations and public employers) for the exclusive benefit of the employer's employees to pay qualified housing expenses to assist the employer's employees in securing affordable housing.
(iv) "Qualified housing expenses" means:
1. With respect to rental assistance, an amount not to exceed Two Thousand Dollars ($2,000.00) paid for the purpose of assisting employees with security deposits and rental subsidies; and
2. With respect to homeownership assistance, an amount not to exceed the lesser of Ten Thousand Dollars ($10,000.00) or six percent (6%) of the purchase price of the employee's principal residence that is paid for the purpose of assisting employees with down payments, payment of closing costs, reduced interest mortgages, mortgage guarantee programs, mortgage forgiveness programs, equity contribution programs, or contributions to home buyer education and/or homeownership counseling of eligible employees.
(ff) For the 2010 taxable year and any taxable year thereafter, amounts converted in accordance with the United States Internal Revenue Code, as amended, from a traditional Individual Retirement Account to a Roth Individual Retirement Account. The exemption allowed under this paragraph (ff) shall be available to the spouse or other beneficiary at the death of the primary retiree.
(gg) Compensation received by a taxpayer during the taxable year from the Eugenics Sterilization Compensation Fund as a qualified recipient under the Eugenics Asexulation and Sterilization Program as authorized under House Bill No. 2014, Regular Session. This paragraph shall stand repealed from and after December 31, 2016.
(5) Prisoners of war, missing in action-taxable status.
(a) Members of the Armed Forces. Gross income does not include compensation received for active service as a member of the Armed Forces of the United States for any month during any part of which such member is in a missing status, as defined in paragraph (d) of this subsection, during the Vietnam Conflict as a result of such conflict.
(b) Civilian employees. Gross income does not include compensation received for active service as an employee for any month during any part of which such employee is in a missing status during the Vietnam Conflict as a result of such conflict.
(c) Period of conflict. For the purpose of this subsection, the Vietnam Conflict began February 28, 1961, and ends on the date designated by the President by Executive Order as the date of the termination of combatant activities in Vietnam. For the purpose of this subsection, an individual is in a missing status as a result of the Vietnam Conflict if immediately before such status began he was performing service in Vietnam or was performing service in Southeast Asia in direct support of military operations in Vietnam. "Southeast Asia," as used in this paragraph, is defined to include Cambodia, Laos, Thailand and waters adjacent thereto.
(d) "Missing status" means the status of an employee or member of the Armed Forces who is in active service and is officially carried or determined to be absent in a status of (i) missing; (ii) missing in action; (iii) interned in a foreign country; (iv) captured, beleaguered or besieged by a hostile force; or (v) detained in a foreign country against his will; but does not include the status of an employee or member of the Armed Forces for a period during which he is officially determined to be absent from his post of duty without authority.
(e) "Active service" means active federal service by an employee or member of the Armed Forces of the United States in an active duty status.
(f) "Employee" means one who is a citizen or national of the United States or an alien admitted to the United States for permanent residence and is a resident of the State of Mississippi and is employed in or under a federal executive agency or department of the Armed Forces.
(g) "Compensation" means (i) basic pay; (ii) special pay; (iii) incentive pay; (iv) basic allowance for quarters; (v) basic allowance for subsistence; and (vi) station per diem allowances for not more than ninety (90) days.
(h) If refund or
credit of any overpayment of tax for any taxable year resulting from the
application of subsection (5) of this section is prevented by the operation of
any law or rule of law, such refund or credit of such overpayment of tax may,
nevertheless, be made or allowed if claim therefor is filed with the * * * Department of Revenue
within three (3) years after the date of the enactment of this subsection.
(i) The provisions of this subsection shall be effective for taxable years ending on or after February 28, 1961.
(6) A shareholder of an S corporation, as defined in Section 27-8-3(1)(g), shall take into account the income, loss, deduction or credit of the S corporation only to the extent provided in Section 27-8-7(2).
SECTION 15. Except for adjudications on claims that have not been finalized under the Eugenics Asexualization and Sterilization Compensation Program, Sections 1 through 11 of this act shall stand repealed on June 30, 2016.
SECTION 16. Section 14 of this act shall take effect and be in force from and after January 1, 2014, and Sections 1 thorough 13 of this act shall take effect and be in force from and after July 1, 2014.