MISSISSIPPI LEGISLATURE
2015 Regular Session
To: Ways and Means
By: Representatives Zuber, Barton, Guice, Monsour, Miles
AN ACT TO CREATE THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE MASTER PLAN ACT; TO AUTHORIZE THE MISSISSIPPI DEVELOPMENT AUTHORITY (MDA) TO CERTIFY A HEALTH CARE INDUSTRY ZONE MASTER PLAN COMMUNITY IF CERTAIN REQUIREMENTS ARE MET; TO PROVIDE THAT MUNICIPALITIES THAT HAVE HEALTH CARE MASTER PLANS MEETING THE REQUIREMENTS OF THIS ACT MAY ACQUIRE, OWN AND LEASE PROJECTS FOR THE PURPOSE OF TARGETING THE HEALTH CARE AND LIFE SCIENCE INDUSTRY; TO AUTHORIZE MUNICIPALITIES TO ISSUE BONDS FOR THE PURPOSES OF DEFRAYING THE COST OF ACQUIRING OR CONSTRUCTING BUILDINGS FOR SUCH PROJECTS OR ACQUIRING LAND FOR SUCH PROJECTS; TO CREATE THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE MASTER PLAN FUND; TO PROVIDE THAT THE PURPOSE OF THE FUND IS TO ASSIST IN MAXIMIZING HEALTH CARE INDUSTRY ZONE MASTER PLAN ECONOMIC DEVELOPMENT OPPORTUNITIES RELATED TO ANY NEW OR EXPANDED HEALTH CARE OR LIFE SCIENCE RELATED BUSINESS OR INDUSTRY; TO PROVIDE THAT MONEY IN THE FUND SHALL BE USED BY MISSISSIPPI DEVELOPMENT AUTHORITY TO MAKE GRANTS TO LOCAL ECONOMIC DEVELOPMENT ENTITIES TO ASSIST ANY NEW OR EXPANDING HEALTH CARE OR LIFE SCIENCE RELATED BUSINESS OR INDUSTRY THAT MEETS THE CRITERIA PROVIDED IN THIS SECTION WHEN THE ASSISTANCE AIDS THE CONSUMMATION OF A PROJECT WITHIN A HEALTH CARE INDUSTRY ZONE MASTER PLAN COMMUNITY; TO CREATE THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE MASTER PLAN REVOLVING LOAN FUND; TO PROVIDE THAT MONEY IN THE FUND SHALL BE DISBURSED BY MISSISSIPPI DEVELOPMENT AUTHORITY AS LOANS TO QUALIFIED HEALTH CARE FACILITIES OR BUSINESSES LOCATED IN A HEALTH CARE INDUSTRY ZONE MASTER PLAN COMMUNITY BY THE MISSISSIPPI DEVELOPMENT AUTHORITY FOR COSTS ASSOCIATED WITH ARCHITECTURAL SERVICES, ENGINEERING SERVICES, PROJECT MANAGEMENT SERVICES, AND OTHER PRE-CONSTRUCTION AND POST-CONSTRUCTION EXPENSES AND CONSTRUCTION COSTS FOR PUBLIC, PRIVATE, FOR-PROFIT AND NONPROFIT ENTITIES TO INITIATE NEW VENTURES OR EXPAND EXISTING VENTURES; TO PROVIDE THAT TO BE ELIGIBLE FOR A LOAN UNDER THIS SECTION, THE MISSISSIPPI DEVELOPMENT AUTHORITY MUST CERTIFY THAT THE QUALIFIED HEALTH CARE FACILITY OR BUSINESS FOR WHICH THE LOAN IS SOUGHT WILL CREATE A MINIMUM OF 25 NEW FULL-TIME JOBS AND/OR HAVE $10,000,000.00 OF CAPITAL INVESTMENT; TO CREATE THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE MASTER PLAN JOB TRAINING GRANT FUND; TO PROVIDE THAT THE MONEY IN THE FUND SHALL BE USED FOR THE PURPOSE OF MAKING JOB TRAINING GRANTS TO COMMUNITY AND JUNIOR COLLEGES, PUBLIC UNIVERSITIES AND LOCAL WORKFORCE INVESTMENT AREAS TO PAY A PORTION OF THE COSTS OF PROVIDING TRAINING OR RETRAINING FOR EMPLOYEES OF QUALIFIED HEALTH CARE INDUSTRY FACILITIES OR BUSINESSES LOCATING IN A COMMUNITY THAT HAS A CERTIFIED HEALTH CARE ZONE MASTER PLAN; TO PROVIDE THAT THE MISSISSIPPI DEVELOPMENT AUTHORITY SHALL ADMINISTER THE FUND; TO PROVIDE THAT THE FUND SHALL BE FUNDED BY A DIVERSION OF SALES TAX REVENUE; TO PROVIDE FOR THE AMOUNT OF THE GRANTS; TO CREATE THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE MASTER PLAN ADVANTAGE JOBS FUND; TO PROVIDE THAT THE MONEY IN THE FUND SHALL BE USED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY FOR THE PURPOSE OF MAKING THE INCENTIVE PAYMENTS TO QUALIFIED HEALTH CARE FACILITIES OR BUSINESSES; TO PROVIDE THAT A QUALIFIED HEALTH CARE FACILITY OR BUSINESS THAT PROVIDES AN AVERAGE ANNUAL SALARY, EXCLUDING BENEFITS WHICH ARE NOT SUBJECT TO MISSISSIPPI INCOME TAXES, OF AT LEAST 100% OF THE MOST RECENTLY PUBLISHED STATE AVERAGE ANNUAL WAGE OR THE MOST RECENTLY PUBLISHED AVERAGE ANNUAL WAGE OF THE COUNTY IN WHICH THE QUALIFIED HEALTH CARE FACILITY OR BUSINESS IS LOCATED AS DETERMINED BY THE MISSISSIPPI DEPARTMENT OF EMPLOYMENT SECURITY, WHICHEVER IS THE LESSER, AND CREATES AT LEAST 25 NEW DIRECT JOBS, IS ELIGIBLE FOR INCENTIVE PAYMENTS; TO PROVIDE THAT THE FUND SHALL BE FUNDED BY A DIVERSION OF THE WITHHOLDING TAX PAYMENTS MADE BY THE QUALIFIED HEALTH CARE FACILITY OR BUSINESS; TO PROVIDE THE AMOUNT OF THE INCENTIVE PAYMENTS; TO PROVIDE FOR AN INCOME TAX AND INSURANCE PREMIUM TAX CREDIT FOR TAXPAYERS THAT PAY A QUALIFIED COMMUNITY DEVELOPMENT ENTITY FOR QUALIFIED EQUITY INVESTMENTS IN A CERTIFIED HEALTH CARE ZONE MASTER PLAN COMMUNITY; TO PROVIDE THAT THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO A CERTAIN PERCENTAGE OF THE ADJUSTED PURCHASE PRICE PAID TO THE QUALIFIED COMMUNITY DEVELOPMENT ENTITY FOR THE QUALIFIED EQUITY INVESTMENT; TO PROVIDE THAT THE MAXIMUM AGGREGATE AMOUNT OF THE CREDITS THAT MAY BE ALLOCATED TO ALL TAXPAYERS IN ANY ONE STATE FISCAL YEAR SHALL NOT EXCEED $5,000,000.00 AND THAT THE CREDITS SHALL BE ALLOCATED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY; TO PROVIDE FOR THE RECAPTURE OF ALL OR A PORTION OF THE CREDIT UNDER CERTAIN CIRCUMSTANCES; TO AMEND SECTION 27-15-129, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE INVESTMENTS THAT MAY REDUCE A TAXPAYER'S INSURANCE PREMIUM TAX LIABILITY UNDER SUCH SECTION SHALL NOT INCLUDE ANY INVESTMENT FOR WHICH SUCH A CREDIT IS ALLOCATED UNDER THIS ACT; TO AUTHORIZE THE ISSUANCE OF STATE GENERAL OBLIGATION BONDS IN THE AMOUNT OF $5,000,000.00 TO PROVIDE FUNDS FOR THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE MASTER PLAN FUND; TO AUTHORIZE THE ISSUANCE OF STATE GENERAL OBLIGATION BONDS IN THE AMOUNT OF $5,000,000.00 TO PROVIDE FUNDS FOR THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE MASTER PLAN REVOLVING LOAN FUND; TO AMEND SECTIONS 27-7-312, 21-33-303 AND 27-65-75, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This chapter shall be known and may be cited as the "Mississippi Health Care Industry Zone Master Plan Act."
SECTION 2. It is the intent of the Legislature that:
(a) The State of Mississippi target the health care and life sciences industries as a means of diversifying the economy by providing measured incentives to support the establishment of qualified health care facilities or businesses for the purpose of creating quality jobs;
(b) The Mississippi Health Care Industry Zone Master Plan Act incentivize communities in the State of Mississippi to target the health care and life science industries as a means to create quality jobs;
(c) The Mississippi Health Care Industry Zone Master Plan Act help communities create physical framework master plans to support the recruitment of the health care and life science industries to the State of Mississippi and allow communities to receive informed recommendations and strategies for implementing its health care industry zone master plan and growing its local health care and life science economies as well as the economy of the State of Mississippi;
(d) In targeting the health care and life science industries, the Mississippi Development Authority shall concentrate on creating an environment in the State of Mississippi that produces jobs focused on health care and life science related research, development, and innovation;
(e) The amount of incentives provided under this act in connection with the recruitment of qualified health care facilities or businesses shall be directly related to the jobs created as a result of qualified health care facilities or businesses locating in communities with certified health care industry zone master plans in the State of Mississippi;
(f) The Mississippi Development Authority and the Department of Revenue shall work in collaboration to implement the provisions of this act and exercise all powers as authorized in this act; however, the application of this act or the offering of any of its incentives as to any particular qualified health care facility or business or industry shall be under the authority of the Mississippi Development Authority. The exercise of powers conferred by this act shall be deemed and held to be the performance of essential public purposes; and
(g) Nothing in this act shall be construed to constitute a guarantee or assumption by the State of Mississippi of any debt of any individual, company, corporation or association nor to authorize the credit of the State of Mississippi to be given, pledged or loaned to any individual, company, corporation or association. Also, nothing in this act gives any right to any qualified health care facility or business to the incentives contained herein unless the incentive is given by the Mississippi Development Authority pursuant to this chapter.
SECTION 3. As used in Sections 1 through 10 of this act:
(a) "Health care industry zone master plan" means an economic development plan used as a tool to facilitate health care job creation and wealth using measured planning strategies and clustering as an approach to recruit pharmaceutical companies, biologics companies, biotechnology companies, diagnostic imaging companies, medical supply companies, medical equipment companies or medicine and related manufacturing companies or processing companies, medical service providers, medical product distribution companies, lab testing facilities, research centers focused on the treatment or prevention of disease, or public or private advanced academic, training, and educational institutions training students for jobs that will serve the health care field or industry in the State of Mississippi as provided for in Section 4 of this act.
(b) "Health care industry zone master plan community" means a municipality, county, local government unit, master planned community meeting the requirements of Section 3 of this act and certified by MDA.
(c) "Qualified health care facility or business" means a health care facility or business that is not an assisted living facility that meets the requirements of Section 57-117-7 and locates in a certified health care industry zone master plan community as provided for in Section 4 of this act.
(d) "Health care industry zone" means a geographical area certified by the MDA as provided for in Section 57-117-5.
(e) "Master planned community" means a community as defined in Section 19-5-10.
(f) "MDA" means the Mississippi Development Authority.
(g) "Local government unit" means any county, incorporated city, town or village in the State of Mississippi.
(h) "Person" means a natural person, partnership, limited liability company, association, corporation, business trust or other business entity.
(i) "AICP planner" means a certified planner with experience in Mississippi who meets certain educational experience and examination requirements as prescribed by the American Planning Association.
(j) "Local economic development entities" means local government units, state institutions of higher learning, community colleges, public or private nonprofit local economic development entities including, but not limited to, chambers of commerce, local authorities, commissions, public utility districts or other entities created by local and private legislation or districts created pursuant to Section 19-5-99.
(k) "Extraordinary health care related economic development opportunity" means:
(i) A new or expanded qualified health care facility or business which maintains a strong financial condition and minimal credit risk and creates targeted employment within the health care or life science industry, particularly in areas of high unemployment; or
(ii) Research centers focused on the treatment or prevention of disease, public or private advanced academic, training, and educational institutions training students for jobs that will serve the health care field or industry, and college seeking to perform health care or life science related research and development and/or innovation public or private institutions of higher learning or community colleges seeking to perform health care or life science related research and development and/or innovation.
(l) "Project" means land, buildings, improvements, fixtures, machinery, equipment and furnishings, and all real and personal properties deemed necessary in connection therewith, or any part or combination of parts of the foregoing, whether or not now in existence, which shall be suitable for use by a qualified health care facility or business as provided for in Section 3 of this act.
(m) "Governing body" means the board or body in which the legislative powers of the municipality are vested, and as to
supervisors districts such board or body shall be the county board
of supervisors, acting with the consent of the member from the
district affected.
(n) "Mortgage" means a mortgage, indenture of trust, deed of trust or any other instrument securing bonds.
SECTION 4. (1) The MDA may certify a health care industry zone master plan community if the following requirements are met:
(a) The health care industry zone master plan community is located within:
(i) Three (3) contiguous counties which have certificates of need of more than three hundred seventy-five (375) acute care hospital beds; and/or
(ii) A county that has at least three hundred seventy-five (375) acute care hospital beds;
(b) The health care industry facility is located within a five-mile radius of:
(i) A facility with a certificate of need for hospital beds; and/or
(ii) A university or college that is:
1. Accredited by the Southern Association of Colleges and Schools and awards degrees and/or trains workers for jobs in health care or pharmaceutical fields of study and/or work, and
2. Located along or near Mississippi Highway 67 within a master planned community as defined in Section 19-5-10; and
(c) The local government unit or master planned community seeking certification from MDA has a health care industry zone master plan which consists of:
(i) An environmental scan and asset mapping of existing resources of the five-mile radius that the health care industry zone master plan contemplates as further defined by MDA rules and regulations;
(ii) A market demand analysis, target industry study and center of excellence determination as further defined by MDA rules and regulations;
(iii) Benchmarking and best practice models of similar communities or developments that serve as an example or approach to generating successful and positive health care industry of life science targeted economic development as further defined by MDA rules and regulations;
(iv) Health care industry zone or district parameter identification as further defined by MDA rules and regulations;
(v) Health care district and zone site master planning as further defined by MDA rules and regulations;
(vi) Overlay district regulatory outline as further defined by MDA rules and regulations;
(vii) Incentive opportunity identification as further defined by MDA rules and regulations;
(viii) Economic impact analysis as further defined by MDA rules and regulations;
(ix) Public relations/marketing and recruitment strategy as further defined by MDA rules and regulations;
(d) The zoning of the local government unit, if applicable, allows the construction or operation in the proposed health care industry zone master plan community of a qualified health care industry facility or business.
(2) The MDA may adopt and promulgate specific rules and regulations, in compliance with the Mississippi Administrative Procedures Law, as are necessary for the efficient and effective administration of this section in keeping with the purposes for which it is enacted.
SECTION 5. (1) Municipalities that also have health care zone master plans meeting the requirements of Section 3 of this act may acquire, own and lease projects for the purpose of targeting the health care and life science industry as a means of diversifying the economy by providing measured incentives to support the establishment of qualified health care facilities or businesses in order to create quality jobs. It is intended that each project be self-liquidating.
(2) In addition to any other powers which it may now have, a municipality that has a health care zone master plan meeting the requirements of Section 3 of this act shall have the following powers:
(a) To acquire, whether by construction, purchase, gift or lease, one or more projects, which shall be located within the geographical area meeting the requirements of Section 57-117-5. The authority granted under this paragraph shall not be exercised by a municipality until a resolution approving the project has been duly adopted and spread upon the official minutes of the board of supervisors of the county in which the municipality is located. A municipality may negotiate a contract for the acquisition, construction and erection of a project or any portion of a project:
(i) Where the municipality finds that, because of the secret nature of the project or any portion thereof, or because the project or any portion thereof will be used for the manufacture of products to be utilized by the United States of America in the national defense, public bidding thereon, pursuant to advertisement therefor, is not in the public interest; and provided, further, such finding is approved, through issuance of appropriate certificate or resolution of approval, by the MDA, or
(ii) Where the municipality finds that, because of the particular nature of the project or any portion thereof, it would be in the best public interest of the municipality so to negotiate, and such finding is approved, through issuance of appropriate certificate or resolution of approval, by the MDA.
(b) To lease or sell to others any or all of its projects for such rentals and upon such terms and conditions as the governing body may deem advisable and as shall not be in conflict with the provisions of this section.
(c) To issue bonds for the purposes of defraying the cost of acquiring or constructing buildings for any project and acquiring land therefore, and to secure the payment of bonds, as provided in this section. No municipality shall have the power to operate any project as a business or in any manner under this section except as a lessor of the project. The municipality issuing bonds to acquire a project under this section shall maintain a record of the location of projects for which the proceeds of the bonds are expended and the amount expended at each location. The record shall indicate the purpose, amount, date and recipient of each expenditure made out of the proceeds of the bonds. If a trustee has been named pursuant to Section 57-3-21, the trustee shall make timely reports to the clerk of the municipality setting forth the details required in this paragraph with respect to the expenditure of bond proceeds. The records shall be maintained as public records in the office of the clerk of the municipality and shall be available for inspection and duplication during the regular office hours of the municipality.
(d) To issue bonds for internal improvements of health care industry zone master plan communities, including, but not limited to, construction or contracting for the construction of streets, roads, site improvements, water, sewerage, drainage, pollution control and other related facilities necessary or required for qualified health care facilities or business.
(3) Before issuing any bonds for any of the purposes enumerated in this section, the governing body of the issuing municipality shall adopt a resolution declaring its intention so to do, stating the amount of bonds proposed to be issued and the purpose for which the bonds are to be issued, and the date upon which the governing body proposes to direct the issuance of the bonds. The resolution shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper published in the municipality. The first publication of the resolution shall be made not less than twenty-one (21) days prior to the date fixed in such resolution for the issuance of the bonds, and the last publication shall be made not more than seven (7) days prior to that date. If no newspaper is published in the municipality, then the notice shall be given by publishing the resolution for the required time in some newspaper having a general circulation in the municipality and, in addition, by posting a copy of such resolution for at least twenty-one (21) days next preceding the date fixed in the resolution at three (3) public places in such municipality. The publication of the resolution may be made as provided in Section 21-17-19. If ten percent (10%) of the qualified electors of the municipality, or fifteen hundred (1500), whichever is the lesser, shall file a written protest against the issuance of the bonds on or before the date specified in the resolution, then an election on the question of the bonds shall be called and held as is provided in Section 21-33-309. Notice of the election shall be signed by the clerk of the municipality and shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper published in the municipality. The first publication of such notice shall be made not less than twenty-one (21) days prior to the date fixed for the election, and the last publication shall be made not more than seven (7) days prior to that date. If no newspaper is published in the municipality, then the notice shall be given by publishing the notice for the required time in some newspaper having a general circulation in the municipality and published in the same or an adjoining county and, in addition, by posting a copy of the notice for at least twenty-one (21) days next preceding the election at three (3) public places in the municipality. If no protest is filed, then the bonds may be issued without an election on the question of the issuance of the bonds, at any time within a period of two (2) years after the date specified in the resolution. However, the governing body of any municipality in its discretion may nevertheless call an election on the question, in which event it shall not be necessary to publish the resolution declaring its intention to issue such bonds as provided in this subsection.
(4) Neither this subsection nor anything contained in this section shall be construed as a restriction or limitation upon any powers which a municipality or county might otherwise have under the laws of this state nor to limit or change the provisions of Sections 57-1-1 through 57-1-51, but shall be construed as cumulative; nor shall the bonds issued under this section be affected by or counted in connection with any statutory limitation upon the amount of bonds which otherwise may be issued by such municipality. The bonds herein authorized may be issued in addition to any bonds issued under Sections 57-1-1 through 57-1-51, and without regard to the amount of any other bonds issued or outstanding.
(5) (a) For the development of projects under this section, the governing body of any municipality that has a health care zone master plan meeting the requirements of Section 3 of this act, may, upon receipt of a resolution duly adopted by the governing body, issue, secure and manage its bonds in the manner prescribed by Section 21-33-301 et seq. The bonds shall be sold in accordance with the provisions of Section 31-19-25. The full faith, credit and resources of the municipality shall be irrevocably pledged for the payment of the principal of and interest on the bonds issued under this section. Any income derived from the sale or lease of the property authorized to be acquired under this section shall be applied in one or more of the following manners: (i) the retirement of bonds authorized to be issued under this section; (ii) further improvement or development of infrastructure related to the health care industry zone master plan community; or (iii) payment into the general fund of the municipality to be used for any lawful purpose. Any amounts so paid into the general fund shall be included in the computation of total receipts and subject to the restrictions of Section 27-39-321. The governing body may covenant with or for the benefit of the registered owners of any bonds issued under this section with respect to the application of any or all of such income and shall, by resolution adopted before or promptly after receipt of any such income, determine, in its discretion subject only to the restrictions set forth above and any covenants made to or for the benefit of any registered owners of bonds issued under this section, the manner in which such income shall be applied.
(b) The bonds authorized by this section and the income therefrom shall be exempt from all taxation in the State of Mississippi; however, any lessee or purchaser shall not be exempt from ad valorem taxes on sites and improvements to sites unless otherwise provided by the general laws of this state, and purchases required to establish the project and financed by bond proceeds shall not be exempt from taxation in the State of Mississippi.
(6) Any funds received from the sale of bonds issued under this section, including accrued interest thereon, which are not required for immediate disbursement for the purpose for which the bonds were issued, may be invested at the direction of the qualified health facility or business in any one or more of the following:
(a) Bonds or other obligations of the United States;
(b) Bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States;
(c) Direct obligations issued by the United States of America or obligations guaranteed in full as to principal and interest by the United States of America, maturing or subject to a repurchase agreement with a qualified state depository bank maturing on or before the date when the funds will be required for disbursement;
(d) Certificates of deposit issued by qualified depositories of the State of Mississippi as approved by the State Treasurer;
(e) Prime commercial paper;
(f) Bankers' acceptances drawn on and accepted by commercial banks;
(g) Any other investment authorized by any bank, savings bank, savings and loan association, insurance company or similar institutional investor, or combination thereof, which, at the time of authorization, is the owner of all of the bonds.
(7) The principal of, redemption premium, if any, and interest on any bonds issued under the authority of this section may be secured by a pledge of the revenues derived from the lease or sale of the project, may be secured by a mortgage covering all or any part of the project or any additional property granted as security for the bonds, may be secured by a pledge of the lease of such project and may be secured by such additional security as the governing body shall require. The proceedings under which the bonds are authorized to be issued or any such mortgage may contain any agreements and provisions customarily contained in instruments securing bonds, including, without limitation, the generality of the foregoing provisions respecting the fixing and collection of rents for any projects, covered by such proceedings or mortgage, the terms to be incorporated in the lease of the project, the maintenance and insurance of the project, to include the establishment of an escrow or reserve fund for deposits of advance insurance premiums, the creation and maintenance of special funds from revenues from the project, and rights and remedies available in event of default to the bondholders or to the trustee under a mortgage, all as the governing body shall deem advisable and as shall not be in conflict with the provisions of this section. However, in making such agreements or provisions, a municipality shall not have the power to obligate itself except with respect to the project and application of revenues from the project and shall not have the power to incur a pecuniary liability or a charge upon its general credit or against its taxing powers. The proceedings authorizing any bonds under this section and any mortgage securing the bonds may provide that, in the event of default in payment of principal of, or the interest on, the bonds, or in the performance of any agreement contained in the proceedings or mortgage, the payment and performance may be enforced by mandamus or by the appointment of a receiver in equity with power to charge and collect rents and to apply the revenues from the project in accordance with such proceedings or the provisions of such mortgage. Any such mortgage may provide also that, in the event of default in such payment or the violation of any agreement contained therein, it may be foreclosed either by sale at public outcry or by proceedings in equity, and may provide that any trustee under such mortgage or the holder of any of the bonds secured by the mortgage may become the purchaser at any foreclosure sale if the trustee is the highest bidder therefor. No breach of any such agreement shall impose any pecuniary liability upon a municipality or any charge upon its general credit or against its taxing powers. The trustee or any trustees under any mortgage or any depository specified by the mortgage may be such persons or corporations as the governing body shall designate, including nonresidents of Mississippi and banks or trust companies incorporated under the laws of the United States or the laws of other states of the United States. When any municipal property acquired under the authority of this section becomes vacant, through unforeseen circumstances, such as default by the lessee, the municipality may exercise the authority contained in Sections 19-7-7 and 21-37-45 to have this property insured and the cost of insurance paid out of the municipal treasury until such a time as the property is again leased.
(8) (a) Prior to the leasing of any project, the governing body must determine and find the following:
(i) The amount necessary in each year to pay the principal of and the interest on the bonds proposed to be issued to finance the project;
(ii) The amount necessary to be paid each year into any reserve funds, which amounts may include deposits in escrow or reserve amounts as advance sums for the payment of insurance, which the governing body may deem it advisable to establish in connection with the retirement of the proposed bonds and the maintenance of the project; and
(iii) Unless the terms under which the project is to be leased provide that the lessee shall maintain the project and carry all proper insurance with respect thereto, the estimated cost of maintaining the project in good repair and keeping it properly insured.
(b) The determinations and findings of the governing body required to be made in paragraph (a) of this subsection shall be set forth in the proceedings under which the proposed bonds are to be issued. Prior to the issuance of the bonds, the municipality shall lease the project to a lessee under an agreement conditioned upon completion of the project and providing for payment to the municipality of such rentals as, upon the basis of such determinations and findings, will be sufficient (i) to pay the principal of and interest on the bonds issued to finance the project, (ii) to build up and maintain any reserve deemed by the governing body to be advisable in connection therewith, and (iii) unless the agreement of lease obligated the lessee to pay for the maintenance and insurance of the project, to pay the cost of maintaining the project in good repair and keeping it properly insured. The lease shall be made upon such other terms and conditions and for the time which may be determined by the municipality and may contain provisions authorizing the purchase of the entire project or any portion of the project by the industry or its assignee after all bonds (if any) issued thereunder have been paid in full, for such consideration and upon such terms and conditions as the municipality may determine.
(9) Any bonds issued under this section and at any time outstanding may at any time and from time to time be refunded by a municipality by the issuance of its refunding bonds in such amount as the governing body may deem necessary but not exceeding an amount sufficient to refund the principal of the bonds to be refunded, together with any unpaid interest on the bonds and any premiums and commissions necessary to be paid in connection therewith. Any refunding may be effected whether the bonds to be refunded shall have been matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds of the refunding bonds for the payment of the bonds to be refunded thereby, or by exchange of the refunding bonds for the bonds to be refunded thereby, provided that the holders of any bonds so to be refunded shall not be compelled without their consent to surrender their bonds for payment or exchange prior to the date on which they are payable or, if they are called for redemption, prior to the date on which they are by their terms subject to redemption. Any refunding bonds issued under the authority of this section shall be payable solely from the revenues out of which the bonds to be refunded hereby were payable, and shall be subject to the provisions contained in Section 57-3-11, and may be secured in accordance with the provisions of Section 57-3-21.
(10) (a) The proceeds from the sale of any bonds issued under authority of this section shall be applied only for the purpose for which the bonds were issued. However, any accrued interest and premium received in any sale shall be applied to the payment of the principal of or the interest on the bonds sold; and, if for any reason, any portion of the proceeds shall not be needed for the purpose for which the bonds were issued, then the unneeded portion of the proceeds shall be applied to the payment of the principal of or the interest on the bonds.
(b) The cost of acquiring any project shall be deemed to include the following:
(i) The actual cost of the construction of any part of a project which may be constructed, including equipment, machinery, facilities, attorney's, architect's and engineer's fees;
(ii) Abstracts, cost of preparing and recording warranty deeds; the purchase price of any part of a project that may be acquired by purchase;
(iii) The deposit into a reserve or escrow fund advance payments for insurance, in the event that the prospective lessee shall be in default of any payments and the municipality has to take over the operation of said project;
(iv) All expenses in connection with the authorization, sale and issuance of the bonds to finance such acquisition; and
(v) The interest on the bonds for a reasonable time prior to construction, during construction, and for not exceeding six (6) months after completion of construction.
(c) Proceeds of the bonds shall be placed in the municipal treasury or with the trustee named in the mortgage or indentured trust as provided in Section 57-3-21 as a special fund and shall be used for no other purpose than the purpose set forth in the original resolution, and any officer diverting or assisting to divert any such fund to any other purpose than the purpose originally set forth in the resolution of the governing body of the municipality shall be guilty of a misdemeanor, shall be punished accordingly, and shall also be liable both personally and on his official bond for the diversion, together with the costs of collection and reasonable attorney's fees.
(d) The MDA is authorized to employ necessary competent attorneys to proceed by action for injunction or mandamus to require compliance with the original resolution by any officer or municipality.
(11) No municipality shall have the power to pay out of its general funds or otherwise contribute any part of the costs of acquiring a project, but, the entire cost of acquiring any project must be paid out of the proceeds from the sale of bonds issued under the authority of this section. This provision shall not be construed to prevent a municipality from accepting donation of property to be used as a part of any project or money to be used for defraying any part of the cost of any project.
(12) Bonds issued under the provisions of this section shall be legal investments for savings banks and insurance companies organized under the laws of this state.
(13) In any suit, action or proceeding involving the validity or enforceability of any bond issued under this section, or the security therefor, any bond reciting in substance that it has been issued by the municipality in connection with a health care zone master plan community, shall be conclusively deemed to have been issued for that purpose and the project shall be conclusively deemed to have been planned, located and carried out in accordance with the provisions of this section.
SECTION 6. (1) There is created in the State Treasury a special fund designated as the "Mississippi Health Care Industry Zone Master Plan Fund" which shall consist of money from any public or private source designated for deposit into the fund. 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 and investment earnings on amounts in the fund shall be deposited to the credit of the fund. The purpose of the fund shall be to assist in maximizing health care industry zone master plan economic development opportunities related to any new or expanded health care or life science related business or industry. Monies in the fund shall be used to make grants to local economic development entities to assist any new or expanding health care or life science related business or industry that meets the criteria provided in this section when the assistance aids the consummation of a project within a health care industry zone master plan community.
(2) Monies in the Mississippi Health Care Industry Zone Master Plan Fund which is derived from the proceeds of general obligation bonds may be used to reimburse reasonable actual and necessary costs incurred by the MDA in providing assistance under this section through the use of general obligation bonds. An accounting of actual costs incurred for which reimbursement is sought shall be maintained for each grant by the MDA. Reimbursement of reasonable actual and necessary costs for a grant shall not exceed three percent (3%) of the proceeds of bonds issued for such grant. Monies authorized for a particular grant may not be used to reimburse administrative costs for unrelated grants. Reimbursements made under this subsection shall satisfy any applicable federal tax law requirements.
(3) The MDA shall establish the Mississippi Health Care Industry Zone Master Plan Grant Program to make grants from the Mississippi Health Care Industry Zone Master Plan Grant Fund created under this section. Local economic development entities may apply to the MDA for a grant under this section.
(4) Any qualified health care facility or business desiring assistance from a local economic development entity under this section shall submit an application to the local economic development entity which shall include, at a minimum:
(a) Evidence that the qualified health care facility or business meets the definitions provided for in Sections 57-117-5 and 57-117-7, and is located in a health care industry zone master plan community as defined under Section 3 of this act;
(b) A demonstration that the qualified health care facility or business targets an extraordinary health care related economic development opportunity;
(c) A description, including the cost, of the requested assistance;
(d) A description of the purpose for which the assistance is requested;
(e) A two-year business plan;
(f) Financial statements or tax returns for the three (3) years immediately prior to the application if applicable;
(g) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the business or industry if applicable;
(h) If the applicant is a public or private institution of higher learning or community college seeking to perform health care or life science related research and development and/or innovation, a detailed business plan and market analysis of the early stage technology commercialization process and the projected spin-off;
(i) Any other information required by the MDA.
(5) The MDA shall require that binding commitments be entered into requiring that:
(a) The minimum requirements of this section and such other requirements as the MDA considers proper shall be met; and
(b) If such requirements are not met, all or a portion of the funds provided by this section as determined by the MDA shall be repaid.
(6) Upon receipt of the application from a qualified health care facility or business, the local economic development entity may apply to the MDA for assistance under this section. The application shall contain evidence that the qualified health care facility or business meets the definition of an extraordinary health care related economic development opportunity, a description, including the cost, of the requested assistance, and a statement of what efforts have been made or are being made by the business or industry for securing or qualifying for other local, state, federal or private funds for the project.
(7) The MDA must certify that a qualified health care facility or business desiring assistance under this section will create at least twenty-five (25) new full-time jobs and/or have Ten Million Dollars ($10,000,000.00) of capital investment in order for the qualified health care facility or business to be eligible for a grant from the Mississippi Health Care Industry Zone Master Plan Grant Fund. Monies from the fund may be used for costs associated with architectural services, engineering services, project management services, other pre-construction and post-construction expenses and construction costs for public, private, for-profit and nonprofit entities to initiate new ventures or expand existing ventures in health care or life science industry.
(8) The MDA shall have sole discretion in the awarding of grants under this section if the business or industry and the local economic development entity have met the statutory requirements of this section.
(9) The MDA shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, for the implementation of this section.
SECTION 7. (1) There is created in the State Treasury a special fund to be designated as the "Mississippi Health Care Industry Zone Master Plan Revolving Loan Fund," which shall consist of money from any source designated for deposit into the fund. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any investment earnings and interest earned on amounts in the fund shall be deposited to the credit of the fund. Monies in the fund shall be disbursed as loans to qualified health care facilities or businesses by the MDA for the purposes authorized in subsection (5) of this section.
(2) Monies in the fund that is derived from the proceeds of general obligation bonds may be used to reimburse reasonable actual and necessary costs incurred by the MDA in providing loans under this section through the use of general obligation bonds. An accounting of actual costs incurred for which reimbursement is sought shall be maintained for each loan by the MDA. Reimbursement of reasonable actual and necessary costs for assistance shall not exceed three percent (3%) of the proceeds of bonds issued for such assistance. Reimbursements made under this subsection shall satisfy any applicable federal tax law requirements.
(3) The MDA shall establish a program to make loans from the Mississippi Health Care Industry Zone Master Plan Revolving Loan Fund to qualified health care facilities or businesses or local government units. Local government units are authorized to enter into loans authorized under this section and to utilize the funds for the purposes authorized in subsection (5) of this section to construct or otherwise provide facilities related to a qualified health care facility or business. A qualified health care facility or business that enters into a loan under this section shall utilize the funds for the purposes provided for in subsection (5) of this section.
(4) Any qualified health care facility or business, or local economic development entity desiring a loan under this section shall submit an application to the MDA which shall include, at a minimum:
(a) Evidence that the qualified health care facility or business meets the definitions provided for in Sections 57-117-5 and 57-117-7, and is located in a health care industry zone master plan community;
(b) A description, including the cost, of the requested assistance;
(c) If the application is by a public or private institution of higher learning seeking to perform health care or life science related research and development and/or innovation, a detailed business plan and market analysis of the early stage technology commercialization process and the projected spin-off.
(d) A description of the purpose for which the assistance is requested;
(e) Binding commitments that all of the requirements of this section are met and any other requirements that the MDA may consider proper are met; and
(f) Any other pertinent information required by the MDA.
(5) To be eligible for a loan under this section, the MDA must certify that the qualified health care facility or business for which the loan is sought will create a minimum of twenty-five (25) new full-time jobs and/or have Ten Million Dollars ($10,000,000.00) of capital investment. Money from loans made under this section may be used for costs associated with architectural services, engineering services, project management services, and other pre-construction and post-construction expenses and construction costs for public, private, for-profit and nonprofit entities to initiate new ventures or expand existing ventures in the health care or life science industry.
(6) Upon receipt of the application from a qualified health care facility or business for a loan under this section, the MDA shall determine whether the qualified health care facility or business meets all applicable requirements of this section or any other requirements that the MDA may mandate and determine whether to provide the assistance requested.
(7) The MDA shall have sole discretion in providing loans under this section. The terms of a loan provided under this section and the manner of repayment of any loan shall be within the discretion of the MDA. Repayments of loans made under this section shall be deposited to the credit of the Mississippi Health Care Industry Zone Master Plan Revolving Loan Fund until the uncommitted balance in the fund reaches Fifty Million Dollars ($50,000,000.00). Once the uncommitted balance in the fund reaches Fifty Million Dollars ($50,000,000.00), repayments of loans under this section shall be deposited to the credit of a fund in the State Treasury to pay debt service on bonds until such time as the uncommitted balance in the fund falls below Fifty Million Dollars ($50,000,000.00).
(8) The MDA shall notify the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee of the approval of any loan application thirty (30) days prior to the disbursement of any monies for the loan from the Mississippi Health Care Industry Zone Master Plan Revolving Loan Fund. The notification shall identify the applicant and the purposes for which the loan is made.
(9) The MDA shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, for the implementation of this section.
SECTION 8. (1) There is created in the State Treasury a special fund to be designated as the "Mississippi Health Care Industry Zone Master Plan Job Training Grant Fund" into which shall be deposited the monies required to be deposited into such fund pursuant to Section 27-65-75(23). The monies in the fund shall be used for the purpose of making job training grants to community and junior colleges, public universities and local workforce investment areas to pay a portion of the costs of providing training or retraining for employees of qualified health care industry facilities or businesses locating in a community that has a certified health care zone master plan under Section 4 of this act. The fund shall be administered by the MDA. 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 or investment earnings on the amounts in the fund shall be deposited to the credit of the fund. The MDA may use not more than one percent (1%) of interest earned or investment earnings, or both, on amounts in the fund for administration and management of the incentive program authorized under this section.
(2) Subject to the provisions of this section, health care zone master plan job training grants may be made by the MDA to a community or junior college, public university or local workforce investment area to pay costs incurred in training or retraining employees for qualified health care industry facilities or businesses locating in communities that have certified health care zone master plans. A qualified health care industry facility or business that chooses to utilize a job training grant under this section shall not be eligible for the job tax credit. The election to utilize a job training grant shall be made by the qualified health care industry facility or business before the creation of any jobs. The grant payments may be made during a five-year period beginning with years two (2) through six (6) after the creation of at least twenty-five (25) jobs. The amount of the grants authorized by this section shall be seventy-five percent (75%) of the costs of training or retraining employees not to exceed:
(a) One Thousand Dollars ($1,000.00) per job in counties designated as Tier One areas under Section 57-73-21;
(b) One Thousand Five Hundred Dollars ($1,500.00) per job in counties designated as Tier Two under Section 57-73-21; and
(c) Two Thousand Dollars ($2,000.00) per job in counties designated as Tier Three areas under Section 57-73-21.
(3) The MDA shall require that the business enterprise shall enter into binding commitments requiring that:
(a) A minimum number of twenty-five (25) jobs shall be created; and
(b) That if the minimum number of jobs are not maintained, all or a portion of the grant funds paid under this section, as determined by the MDA, shall be repaid.
(4) The MDA shall cease making job training grant payments if it determines the required number of jobs are not being maintained by the qualified health care facility or business.
(5) The MDA shall develop, implement and administer the Mississippi Health Care Industry Zone Master Plan Job Training Grant Program authorized under this section and shall promulgate rules and regulations necessary for the development, implementation and administration of the program.
(6) A qualified health care facility or business desiring to utilize job training grants under this section must submit requests for job training grants to the MDA. The MDA shall review the request and determine if the business enterprise is eligible and if a payment shall be made from the fund. The liability of the State of Mississippi to make the job training grants authorized under this section shall be limited to the balance contained in the fund.
SECTION 9. (1) There is created in the State Treasury a special fund to be known as the Mississippi Health Care Industry Zone Master Plan Advantage Jobs Fund, into which shall be deposited withholding tax revenue required to be deposited into such fund pursuant to Section 27-7-312. The monies in the fund shall be used for the purpose of making the incentive payments authorized under this section.
(2) The Mississippi Health Care Industry Zone Master Plan Advantage Jobs Incentive Fund shall be administered by the Department of Revenue, and monies in the fund, less three percent (3%) to be retained by the Department of Revenue to pay the reasonable and necessary expenses of the Department of Revenue in administering its duties under this chapter, shall be expended pursuant to the approved application. Amounts in the fund at the end of any fiscal year that are not necessary to make future incentive payments shall be paid into the General Fund.
(3) The liability of the State of Mississippi to make the incentive payments authorized under this section shall be limited to the balance contained in the fund.
(4) (a) Except as otherwise provided in this section, a qualified health care facility or business that meets the qualifications specified in this section may receive quarterly incentive payments for a period not to exceed ten (10) years from the Department of Revenue pursuant to the provisions of this section in an amount which shall be equal to ninety percent (90%) of the amount of actual income tax withheld for each net new direct job created, but in no event more than four percent (4%) of the total annual salary paid for new direct jobs during that period, excluding benefits which are not subject to Mississippi income taxes.
(b) A qualified health care facility or business that provides an average annual salary, excluding benefits which are not subject to Mississippi income taxes, of at least one hundred percent (100%) of the most recently published state average annual wage or the most recently published average annual wage of the county in which the qualified health care facility or business is located as determined by the Mississippi Department of Employment Security, which ever is the lesser, meets the definitions provided for in Sections 57-117-5 and 57-117-7, and is located in a health care industry master plan community as defined in Section 3 of this act.
(5) The qualified health care facility or business may elect the date upon which the ten-year period will begin and may elect to begin receiving incentive payments as early as the second quarter after that date. Incentive payments shall be calculated on all jobs above the existing number of jobs as of the date the MDA determines that the applicant is qualified to receive incentive payments. In the event that the qualified business or industry falls below the number of existing jobs at the time of determination that the applicant is qualified to receive the incentive payment, the incentive payment shall cease until the qualified business or industry once again exceeds that number. If after forty-eight (48) months, the qualified health care facility or business has failed to create at least twenty-five (25) new direct jobs, incentive payments shall cease and the qualified health care facility or business shall not be qualified to receive further incentive payments.
(6) In order to receive incentive payments, a qualified health care facility or business shall apply to the MDA. The application shall be on a form prescribed by the MDA and shall contain such information as may be required by the MDA to determine if the applicant is qualified.
(7) The qualified health care facility or business must meet its job creation commitment within twenty-four (24) months of the approval of the application.
(8) The MDA shall determine if the applicant is qualified to receive incentive payments.
(9) Upon approval of an application, the MDA shall notify the Department of Revenue and shall provide it with a copy of the approved application and the minimum job and salary requirements. The Department of Revenue may require the qualified health care facility or business to submit such additional information as may be necessary to administer the provisions of this chapter. The qualified health care facility or business shall report to the Department of Revenue periodically to show its continued eligibility for incentive payments. The qualified health care facility or business may be audited by the Department of Revenue to verify such eligibility.
(10) As soon as practicable after the end of a calendar quarter for which a qualified health care facility or business has qualified to receive an incentive payment, the qualified health care facility or business shall file a claim for the payment with the Department of Revenue and shall specify the actual number of new direct jobs created and maintained by the business or industry for the calendar quarter and the gross payroll thereof. The Department of Revenue shall verify the actual number of new direct jobs created and maintained by the business or industry and compliance with the average annual wage requirement. If the qualified health care facility or business files a claim for an incentive payment during an additional incentive period provided under this act, the Department of Revenue shall verify the actual number of new direct jobs created and maintained by the qualified health care facility or business and compliance with the average annual wage requirements for the qualified health care facility or business under this section. If the Department of Revenue is not able to provide such verification utilizing all available resources, the Department of Revenue may request such additional information from the qualified health care facility or business as may be necessary.
(11) The qualified health care facility or business must meet the average annual wage and job requirements of this section for four (4) consecutive calendar quarters prior to payment of the first incentive payment. If the qualified health care facility or business does not maintain the average annual wage or job requirements of this section at any time during the ten-year period after the date the first payment was made, the incentive payments shall not be made and shall not be resumed until such time as the actual verified number of new direct jobs created and maintained by the qualified health care facility or business and the average annual wage equals or exceeds the requirements of this chapter for one (1) calendar quarter.
(12) A qualified health care facility or business that has qualified pursuant to this chapter may receive payments only in accordance with the provision under which it initially applied and was approved. If a qualified health care facility or business that is receiving incentive payments expands, it may apply for additional incentive payments based on the new gross payroll for new direct jobs anticipated from the expansion only.
(13) As soon as practicable after verification of the qualified health care facility or business meeting the requirements of this section and all rules and regulations, the Department of Finance and Administration, upon requisition of the Department of Revenue, shall issue a warrant drawn on the Mississippi Health Care Industry Zone Master Plan Advantage Jobs Fund to the qualified health care facility or business in the amount of the incentive payment as determined pursuant to this section for the calendar quarter.
(14) The MDA shall develop, implement and administer the Mississippi Health Care Industry Zone Master Plan Advantage Job Program authorized under this section and shall promulgate rules and regulations necessary for the development, implementation and administration of the program.
SECTION 10. (1) As used in this section:
(a) "Adjusted purchase price" means the investment in the qualified community development entity for the qualified equity investment, substantially all of the proceeds of which are used to make qualified low-income community investments in Mississippi. For the purposes of calculating the amount of qualified low-income community investments held by a qualified community development entity, an investment will be considered held by a qualified community development entity even if the investment has been sold or repaid; provided that the qualified community development entity reinvests an amount equal to the capital returned to or recovered by the qualified community development entity from the original investment, exclusive of any profits realized, in another qualified low-income community investment in Mississippi, including any federal Indian reservation located within the geographical boundary of Mississippi within twelve (12) months of the receipt of such capital. A qualified community development entity will not be required to reinvest capital returned from the qualified low-income community investments after the sixth anniversary of the issuance of the qualified equity investment, the proceeds of which were used to make the qualified low-income community investment, and the qualified low-income community investment will be considered held by the qualified community development entity through the seventh anniversary of the qualified equity investment's issuance.
(b) "Applicable percentage" means eight percent (8%) for each of the first through third credit allowance dates for purposes of the taxes imposed by Section 27-7-5 or the taxes imposed by Sections 27-15-103, 27-15-109 and 27-15-123.
(c) "Credit allowance date" means, with respect to any qualified equity investment:
(i) The later of:
1. The date upon which the qualified equity investment is initially made; or
2. The date upon which the Mississippi Development Authority issues a certificate under subsection (4) of this section; and
(ii) Each of the subsequent two (2) anniversary dates of the date determined as provided for in subparagraph (i) of this paragraph.
(d) "Qualified community development entity" shall have the meaning ascribed to such term in Section 45D of the Internal Revenue Code of 1986, as amended, if the entity has entered into an Allocation Agreement with the Community Development Financial Institutions Fund of the United States Department of the Treasury with respect to credits authorized by Section 45D of the Internal Revenue Code of 1986, as amended.
(e) "Qualified active low-income community business" shall have the meaning ascribed to such term in Section 45D of the Internal Revenue Code of 1986, as amended.
(f) "Qualified equity investment" shall have the meaning ascribed to such term in Section 45D of the Internal Revenue Code of 1986, as amended. The investment does not have to be designated as a qualified equity investment by the Community Development Financial Institutions Fund of the United States Treasury to be considered a qualified equity investment under this section but otherwise must meet the definition under the Internal Revenue Code. In addition to meeting the definition in Section 45D of the Internal Revenue Code of 1986 such investment must also:
(i) Have been acquired after January 1, 2007, at its original issuance solely in exchange for cash;
(ii) Invested in a certified health care zone master plan community as provided for in Section 4 of this act; and
(iii) Have been allocated by the Mississippi Development Authority.
For the purposes of this section, such investment shall be deemed a qualified equity investment on the later of the date such qualified equity investment is made or the date on which the Mississippi Development Authority issues a certificate under subsection (4) of this section allocating credits based on such investment.
(g) "Qualified low-income community investment" shall have the meaning ascribed to such term in Section 45D of the Internal Revenue Code of 1986, as amended; provided, however, that the maximum amount of qualified low-income community investments issued for a single qualified active low-income community business in a certified health care zone master plan community as provided for in Section 4 of this act, on an aggregate basis with all of its affiliates, that may be included for purposes of allocating any credits under this section shall not exceed Five Million Dollars ($5,000,000.00), in the aggregate, whether issued by one (1) or several qualified community development entities.
(2) A taxpayer that holds a qualified equity investment on the credit allowance date shall be entitled to a credit applicable against the taxes imposed by Sections 27-7-5, 27-15-103, 27-15-109 and 27-15-123 during the taxable year that includes the credit allowance date. The amount of the credit shall be equal to the applicable percentage of the adjusted purchase price paid to the qualified community development entity for the qualified equity investment. The amount of the credit that may be utilized in any one (1) tax year shall be limited to an amount not greater than the total tax liability of the taxpayer for the taxes imposed by the above-referenced sections. The credit shall not be refundable or transferable. Any unused portion of the credit may be carried forward for seven (7) taxable years beyond the credit allowance date on which the credit was earned. The maximum aggregate amount of qualified equity investments that may be allocated by the Mississippi Development Authority to be used in a certified health care zone master plan community as provided for in Section 4 of this act may not exceed an amount that would result in taxpayers claiming in any one (1) state fiscal year credits in excess of Five Million Dollars ($5,000,000.00), exclusive of credits that might be carried forward from previous taxable years; however, a maximum of one-third (1/3) of this amount may be allocated as credits for taxes imposed by Sections 27-15-103, 27-15-109 and 27-15-123. Any taxpayer claiming a credit under this section against the taxes imposed by Sections 27-7-5, 27-15-103, 27-15-109 and 27-15-123 shall not be required to pay any additional tax under Section 27-15-123 as a result of claiming such credit. The Mississippi Development Authority shall allocate credits to be used in a certified health care zone master plan community as provided for in Section 4 of this act within the limit as provided for in subsection (4) of this section.
(3) Tax credits authorized by this section that are earned by a partnership, limited liability company, S corporation or other similar pass-through entity, shall be allocated among all partners, members or shareholders, respectively, either in proportion to their ownership interest in such entity or as the partners, members or shareholders mutually agree as provided in an executed document. Such allocation shall be made each taxable year of such pass-through entity which contains a credit allowance date.
(4) The qualified community development entity shall apply for credits with the Mississippi Development Authority on forms prescribed by the Mississippi Development Authority. The qualified community development entity must pay an application fee of One Thousand Dollars ($1,000.00) to the Mississippi Development Authority at the time the application is submitted. In the application, the qualified community development entity shall certify to the Mississippi Development Authority the dollar amount of the qualified equity investments made or to be made in certified health care industry zone master plan communities, including in any federal Indian reservation located within the state's geographical boundary, during the first twelve-month period following the initial credit allowance date. The Mississippi Development Authority shall allocate credits based on the dollar amount of qualified equity investments as certified in the application. Once the Mississippi Development Authority has allocated credits to a qualified community development entity, if the corresponding qualified equity investment has not been issued as of the date of such allocation, then the corresponding qualified equity investment must be issued not later than one hundred twenty (120) days from the date of such allocation. If the qualified equity investment is not issued within such time period, the allocation shall be cancelled and returned to the Mississippi Development Authority for reallocation. Upon final documentation of the qualified low-income community investments, if the actual dollar amount of the investments is lower than the amount estimated, the Mississippi Development Authority shall adjust the tax credit allowed under this section. The Department of Revenue may recapture all of the credit allowed under this section if:
(a) Any amount of federal tax credits available with respect to a qualified equity investment that is eligible for a tax credit under this section is recaptured under Section 45D of the Internal Revenue Code of 1986, as amended; or
(b) The qualified community development entity redeems or makes any principal repayment with respect to a qualified equity investment prior to the seventh anniversary of the issuance of the qualified equity investment; or
(c) The qualified community development entity fails to maintain at least eighty-five percent (85%) of the proceeds of the qualified equity investment in qualified low-income community investments in Mississippi at any time prior to the seventh anniversary of the issuance of the qualified equity investment. Any credits that are subject to recapture under this subsection shall be recaptured from the taxpayer that actually claimed the credit. The Mississippi Development Authority shall not allocate any credits under this section after January 1, 2018.
(5) Each qualified community development entity that receives qualified equity investments to make qualified low-income community investments in certified health care industry zone master plan communities must annually report to the Mississippi Development Authority the North American Industry Classification System Code, the county, the dollars invested, the number of jobs assisted and the number of jobs assisted with wages over one hundred percent (100%) of the federal poverty level for a family of four (4) of each qualified low-income community investment.
(6) The Mississippi Development Authority shall file an annual report on all qualified low-income community investments with the Governor, the Clerk of the House of Representatives, the Secretary of the Senate and the Secretary of State describing the North American Industry Classification System Code, the county, the dollars invested, the number of jobs assisted and the number of jobs assisted with wages over one hundred percent (100%) of the federal poverty level for a family of four (4) of each qualified low-income community investment. The annual report will be posted on the Mississippi Development Authority's Internet website.
(7) (a) The purpose of this subsection is to authorize the creation and establishment of public benefit corporations for financing arrangements regarding public property and facilities.
(b) As used in this subsection:
(i) "New Markets Tax Credit transaction" means any financing transaction which utilizes either this section or Section 45D of the Internal Revenue Code of 1986, as amended.
(ii) "Public benefit corporation" means a nonprofit corporation formed or designated by a public entity to carry out the purposes of this subsection.
(iii) "Public entity or public entities" includes utility districts, regional solid waste authorities, regional utility authorities, community hospitals, regional airport authorities, municipal airport authorities, community and junior colleges, educational building corporations established by or on behalf of the state institutions of higher learning, school districts, planning and development districts, county economic development districts, master planned communities, urban renewal agencies, local economic development entities any other regional or local economic development authority, agency or governmental entity, and any other regional or local industrial development authority, agency or governmental entity.
(iv) "Public property or facilities" means any property or facilities owned or leased by a public entity or public benefit corporation.
(c) Notwithstanding any other provision of law to the contrary, public entities are authorized pursuant to this subsection to create one or more public benefit corporations or designate an existing corporation as a public benefit corporation for the purpose of entering into financing agreements and engaging in New Markets Tax Credit transactions, which shall include, without limitation, arrangements to plan, acquire, renovate, construct, lease, sublease, manage, operate and/or improve new or existing public property or facilities located within the boundaries or service area of the public entity. Any financing arrangement authorized under this subsection shall further any purpose of the public entity and may include a term of up to fifty (50) years.
(d) Notwithstanding any other provision of law to the contrary and in order to facilitate the acquisition, renovation, construction, leasing, subleasing, management, operating and/or improvement of new or existing public property or facilities to further any purpose of a public entity, public entities are authorized to enter into financing arrangements in order to transfer public property or facilities to and/or from public benefit corporations, including, without limitation, sales, sale-leasebacks, leases and lease-leasebacks, provided such transfer is related to any New Markets Tax Credit transaction furthering any purpose of the public entity. Any such transfer under this paragraph (d) and the public property or facilities transferred in connection therewith shall be exempted from any limitation or requirements with respect to leasing, acquiring, and/or constructing public property or facilities.
(e) With respect to a New Markets Tax Credit transaction, public entities and public benefit corporations are authorized to enter into financing arrangements with any governmental, nonprofit or for-profit entity in order to leverage funds not otherwise available to public entities for the acquisition, construction and/or renovation of properties transferred to such public benefit corporations. The use of any funds loaned by or contributed by a public benefit corporation or borrowed by or otherwise made available to a public benefit corporation in such financing arrangement shall be dedicated solely to (i) the development of new properties or facilities and/or the renovation of existing properties or facilities or operation of properties or facilities, and/or (ii) the payment of costs and expenditures related to any such financing arrangements, including, but not limited to, funding any reserves required in connection therewith, the repayment of any indebtedness incurred in connection therewith, and the payment of fees and expenses incurred in connection with the closing, administration, accounting and/or compliance with respect to the New Markets Tax Credit transaction.
(f) A public benefit corporation created pursuant to this subsection shall not be a political subdivision of the state but shall be a nonprofit corporation organized and governed under the provisions of the laws of this state and shall be a special purpose corporation established to facilitate New Markets Tax Credit transactions consistent with the requirements of this section.
(g) Neither this subsection nor anything herein contained is or shall be construed as a restriction or limitation upon any powers which the public entity or public benefit corporation might otherwise have under any laws of this state, and this subsection is cumulative to any such powers. This subsection does and shall be construed to provide a complete additional and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to powers conferred by other laws.
(8) The Mississippi Development Authority shall promulgate rules and regulations to implement the provisions of this section.
SECTION 11. Section 27-15-129, Mississippi Code of 1972, is amended as follows:
27-15-129. (1) The amount of premium tax payable pursuant to Sections 27-15-103, 27-15-109, 27-15-119 and 83-31-45, Mississippi Code of 1972, shall be reduced from the amount otherwise fixed in such sections if the payer files a sworn statement with the required annual report showing as of the beginning of the reporting period that at least the following amounts of the total admitted assets of the payer were invested and maintained in qualifying Mississippi investments as hereinafter defined in subsection (2) of this section over the period covered by such report:
Percentage of Total Admitted Percentage of Premium
Assets in Qualifying Tax Payable
Mississippi Investments
1% 99%
2% 98%
3% 97%
4% 96%
5% 95%
6% 94%
7% 93%
8% 92%
9% 91%
10% 80%
15% 70%
20% 60%
25% 50%
(2) For the purpose of this section, "a qualifying Mississippi investment" is hereby defined as follows:
(a) Certificates of deposit issued by any bank or savings and loan association domiciled in this state;
(b) Bonds of this state or bonds of municipal, school, road or levee districts, or other political subdivisions of this state;
(c) Loans evidenced by notes and secured by deeds of trust on property located in this state;
(d) Real property located in this state;
(e) Policy loans to residents of Mississippi, or other loans to residents of this state, or to corporations domiciled in this state;
(f) Common or preferred stock, bonds and other evidences of indebtedness of corporations domiciled in this state; and
(g) Cash on deposit in any bank or savings and loan association domiciled in this state.
"A qualifying Mississippi investment" shall not include any investment for which a credit is allocated under Section 10 of this act, Section 57-105-1 and/or Section 57-115-1 et seq.
(3) If the credits, or any part thereof, authorized by the preceding provisions of this section shall be held by a court of final jurisdiction to be unconstitutional and void for any reason or to make the annual premium taxes levied by Sections 27-15-103, 27-15-109, 27-15-119 and 83-31-45, Mississippi Code of 1972, unlawfully discriminatory or otherwise invalid under the Fourteenth Amendment or the Commerce Clause of the Constitution of the United States or under any state or other federal constitutional provisions, it is hereby expressly declared that such fact shall in no way affect the validity of the annual premium taxes levied thereby, and that such provisions would have been enacted even though the Legislature had known this credit section would be held invalid.
(4) This section shall apply to taxes accruing and investments existing from and after July 1, 1985.
SECTION 12. (1) As used in this section, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:
(a) "Accreted value" of any bonds means, as of any date of computation, an amount equal to the sum of (i) the stated initial value of such bond, plus (ii) the interest accrued thereon from the issue date to the date of computation at the rate, compounded semiannually, that is necessary to produce the approximate yield to maturity shown for bonds of the same maturity.
(b) "State" means the State of Mississippi.
(c) "Commission" means the State Bond Commission.
(2) (a) The Mississippi Development Authority, 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 the program authorized in Section 4 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 subsection, the Mississippi Development Authority shall deliver a certified copy of its resolution or resolutions to the commission. Upon receipt of such resolution, the 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 this section shall not exceed Five Million Dollars ($5,000,000.00). No bonds authorized under this section shall be issued after July 1, 2019.
(b) The proceeds of bonds issued pursuant to this section shall be deposited into the Mississippi Health Care Industry Zone Master Plan Fund created pursuant to Section 6 of this act. Any investment earnings on bonds issued pursuant to this section shall be used to pay debt service on bonds issued under this section, in accordance with the proceedings authorizing issuance of such bonds.
(3) The principal of and interest on the bonds authorized under this section shall be payable in the manner provided in this subsection. 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 shall be determined by resolution of the commission.
(4) The bonds authorized by this section shall be signed by the chairman of the commission, or by his facsimile signature, and the official seal of the commission shall be affixed thereto, attested by the secretary of the 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 shall 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.
(5) All bonds and interest coupons issued under the provisions of this section 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 section, the commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.
(6) The commission shall act as the issuing agent for the bonds authorized under this section, 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 commission is authorized and empowered to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under this section from the proceeds derived from the sale of such bonds. The commission shall sell such bonds on sealed bids at public sale or may negotiate the sale of the bonds, and 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 the bonds are to be sold on sealed bids at public sale, notice of the sale of any such bonds shall be published at least one (1) 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 commission, when issuing any bonds under the authority of this section, 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.
(7) The bonds issued under the provisions of this section 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 subsection.
(8) Upon the issuance and sale of bonds under the provisions of this section, the commission shall transfer the proceeds of any such sale or sales to the Mississippi Health Care Industry Zone Master Plan Fund created in Section 6 of this act. 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.
(9) The bonds authorized under this section may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions and things which are specified or required by this section. Any resolution providing for the issuance of bonds under the provisions of this section shall become effective immediately upon its adoption by the commission, and any such resolution may be adopted at any regular or special meeting of the commission by a majority of its members.
(10) The bonds authorized under the authority of this section 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.
(11) Any holder of bonds issued under the provisions of this section 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 this section, or under such resolution, and may enforce and compel performance of all duties required by this section to be performed, in order to provide for the payment of bonds and interest thereon.
(12) All bonds issued under the provisions of this section 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 which 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.
(13) Bonds issued under the provisions of this section and income therefrom shall be exempt from all taxation in the State of Mississippi.
(14) The proceeds of the bonds issued under this section shall be used solely for the purposes therein provided, including the costs incident to the issuance and sale of such bonds.
(15) The State Treasurer is authorized, without further process of law, to certify to the Department of Finance and Administration the necessity for warrants, and the Department of Finance and Administration 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 this section; 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.
(16) This section shall be deemed to be full and complete authority for the exercise of the powers therein granted, but this section shall not be deemed to repeal or to be in derogation of any existing law of this state.
SECTION 13. (1) As used in this section, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:
(a) "Accreted value" of any bonds means, as of any date of computation, an amount equal to the sum of (i) the stated initial value of such bond, plus (ii) the interest accrued thereon from the issue date to the date of computation at the rate, compounded semiannually, that is necessary to produce the approximate yield to maturity shown for bonds of the same maturity.
(b) "State" means the State of Mississippi.
(c) "Commission" means the State Bond Commission.
(2) (a) The Mississippi Development Authority, 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 the program authorized in Section 7 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 subsection, the Mississippi Development Authority shall deliver a certified copy of its resolution or resolutions to the commission. Upon receipt of such resolution, the 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 this section shall not exceed Five Million Dollars ($5,000,000.00). No bonds authorized under this section shall be issued after July 1, 2019.
(b) The proceeds of bonds issued pursuant to this section shall be deposited into the Mississippi Health Care Industry Zone Master Plan Revolving Loan Fund created pursuant to Section 7 of this act. Any investment earnings on bonds issued pursuant to this section shall be used to pay debt service on bonds issued under this section, in accordance with the proceedings authorizing issuance of such bonds.
(3) The principal of and interest on the bonds authorized under this section shall be payable in the manner provided in this subsection. 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 shall be determined by resolution of the commission.
(4) The bonds authorized by this section shall be signed by the chairman of the commission, or by his facsimile signature, and the official seal of the commission shall be affixed thereto, attested by the secretary of the 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 shall 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.
(5) All bonds and interest coupons issued under the provisions of this section 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 section, the commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.
(6) The commission shall act as the issuing agent for the bonds authorized under this section, 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 commission is authorized and empowered to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under this section from the proceeds derived from the sale of such bonds. The commission shall sell such bonds on sealed bids at public sale or may negotiate the sale of the bonds, and 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 the bonds are to be sold on sealed bids at public sale, notice of the sale of any such bonds shall be published at least one (1) 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 commission, when issuing any bonds under the authority of this section, 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.
(7) The bonds issued under the provisions of this section 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 subsection.
(8) Upon the issuance and sale of bonds under the provisions of this section, the commission shall transfer the proceeds of any such sale or sales to the Mississippi Health Care Industry Zone Master Plan Revolving Loan Fund created in Section 7 of this act. 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.
(9) The bonds authorized under this section may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions and things which are specified or required by this section. Any resolution providing for the issuance of bonds under the provisions of this section shall become effective immediately upon its adoption by the commission, and any such resolution may be adopted at any regular or special meeting of the commission by a majority of its members.
(10) The bonds authorized under the authority of this section 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.
(11) Any holder of bonds issued under the provisions of this section 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 this section, or under such resolution, and may enforce and compel performance of all duties required by this section to be performed, in order to provide for the payment of bonds and interest thereon.
(12) All bonds issued under the provisions of this section 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 which 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.
(13) Bonds issued under the provisions of this section and income therefrom shall be exempt from all taxation in the State of Mississippi.
(14) The proceeds of the bonds issued under this section shall be used solely for the purposes therein provided, including the costs incident to the issuance and sale of such bonds.
(15) The State Treasurer is authorized, without further process of law, to certify to the Department of Finance and Administration the necessity for warrants, and the Department of Finance and Administration 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 this section; 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.
(16) This section shall be deemed to be full and complete authority for the exercise of the powers therein granted, but this section shall not be deemed to repeal or to be in derogation of any existing law of this state.
SECTION 14. Section 27-7-312, Mississippi Code of 1972, is amended as follows:
27-7-312. (1) Of the revenue collected under the provisions of this article from the new direct jobs of a qualified business or industry as defined in Section 57-62-5 of the Mississippi Advantage Jobs Act, an amount equal to the estimated amount of the quarterly incentive payment for which such qualified business or industry is eligible shall be deposited into the Mississippi Advantage Jobs Incentive Payment Fund created pursuant to Section 57-62-1 et seq., on or before the twentieth day of the month following the close of each calendar quarter.
(2) Of the revenue collected under the provisions of this article from the qualified jobs of a qualified business or industry as defined in Section 57-99-1, an amount equal to the estimated amount of the quarterly incentive payment for which such qualified business or industry is eligible shall be deposited into the MMEIA Withholding Rebate Fund created pursuant to Section 57-99-5, on or before the twentieth day of the month following the close of each calendar quarter.
(3) Of the revenue collected under the provisions of this article from the qualified jobs of a qualified business or industry as defined in Section 57-100-1, an amount equal to the estimated amount of the quarterly incentive payment for which such qualified business or industry is eligible shall be deposited into the Existing Industry Withholding Rebate Fund created pursuant to Section 57-100-5, on or before the twentieth day of the month following the close of each calendar quarter.
(4) Of the revenue collected under the provisions of this article from the qualified jobs of a qualified business or industry as defined in Section 57-99-21, an amount equal to the estimated amount of the quarterly incentive payment for which such qualified business or industry is eligible shall be deposited into the MMEIA Rebate Fund created pursuant to Section 57-99-25, on or before the twentieth day of the month following the close of each calendar quarter.
(5) Of the revenue collected under the provisions of this article from the qualified jobs of a qualified health care facility or business that qualifies for the incentive payments under Section 9 of this act, an amount equal to the estimated amount of the quarterly incentive payment for which such qualified business or industry is eligible shall be deposited into the Mississippi Health Care Industry Zone Master Plan Advantage Jobs Fund created pursuant to Section 9 of this act, on or before the twentieth day of the month following the close of each calendar quarter.
SECTION 15. Section 21-33-303, Mississippi Code of 1972, is amended as follows:
21-33-303. No municipality shall hereafter issue bonds secured by a pledge of its full faith and credit for the purposes authorized by law in an amount which, when added to the then outstanding bonded indebtedness of such municipality, shall exceed either (a) fifteen percent (15%) of the assessed value of the taxable property within such municipality, according to the last completed assessment for taxation, or (b) ten percent (10%) of the assessment upon which taxes were levied for its fiscal year ending September 30, 1984, whichever is greater. In computing such indebtedness, there may be deducted all bonds or other evidences of indebtedness, heretofore or hereafter issued, for school, water, sewerage systems, gas, and light and power purposes and for the construction of special improvements primarily chargeable to the property benefited, or for the purpose of paying the municipality's proportion of any betterment program, a portion of which is primarily chargeable to the property benefited. However, in no case shall any municipality contract any indebtedness which, when added to all of the outstanding general obligation indebtedness, both bonded and floating, shall exceed either (a) twenty percent (20%) of the assessed value of all taxable property within such municipality according to the last completed assessment for taxation or (b) fifteen percent (15%) of the assessment upon which taxes were levied for its fiscal year ending September 30, 1984, whichever is greater. Nothing herein contained shall be construed to apply to contract obligations in any form heretofore or hereafter incurred by any municipality which are subject to annual appropriations therefor, or to bonds heretofore issued by any municipality for school purposes, or to contract obligations in any form heretofore or hereafter incurred by any municipality which are payable exclusively from the revenues of any municipally owned utility, or to bonds issued by any municipality under the provisions of Sections 57-1-1 through 57-1-51, or to any special assessment improvement bonds issued by any municipality under the provisions of Sections 21-41-1 through 21-41-53, or to any indebtedness incurred under Section 55-23-8, or to any indebtedness incurred under Section 5 of this act.
All bonds issued prior to July 1, 1990, pursuant to this chapter by any municipality for the purpose of the constructing, replacing, renovating or improving wastewater collection and treatment facilities in order to comply with an administrative order of the Mississippi Department of Natural Resources issued pursuant to the Federal Water Pollution Control Act and amendments thereto, are hereby exempt from the limitation imposed by this section if the governing body of the municipality adopts an order, resolution or ordinance to the effect that the rates paid by the users of such facilities shall be increased to the extent necessary to provide sufficient funds for the payment of the principal of and interest on such bonds as each respectively becomes due and payable as well as the necessary expenses in connection with the operation and maintenance of such facilities.
SECTION 16. Section 27-65-75, Mississippi Code of 1972, is amended as follows:
27-65-75. On or before the fifteenth day of each month, the revenue collected under the provisions of this chapter during the preceding month shall be paid and distributed as follows:
(1) (a) On or before August 15, 1992, and each succeeding month thereafter through July 15, 1993, eighteen percent (18%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation. On or before August 15, 1993, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation.
A municipal corporation, for the purpose of distributing the tax under this subsection, shall mean and include all incorporated cities, towns and villages.
Monies allocated for distribution and credited to a municipal corporation under this paragraph may be pledged as security for a loan if the distribution received by the municipal corporation is otherwise authorized or required by law to be pledged as security for such a loan.
In any county having a county seat that is not an incorporated municipality, the distribution provided under this subsection shall be made as though the county seat was an incorporated municipality; however, the distribution to the municipality shall be paid to the county treasury in which the municipality is located, and those funds shall be used for road, bridge and street construction or maintenance in the county.
(b) On or before August 15, 2006, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities on the campus of a state institution of higher learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocated for distribution to the state institution of higher learning or community or junior college and paid to the state institution of higher learning or community or junior college.
(2) On or before September 15, 1987, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, One Million One Hundred Twenty-five Thousand Dollars ($1,125,000.00) shall be allocated for distribution to municipal corporations as defined under subsection (1) of this section in the proportion that the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each such municipality during the preceding fiscal year bears to the total gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in municipalities statewide during the preceding fiscal year. The Department of Revenue shall require all distributors of gasoline and diesel fuel to report to the department monthly the total number of gallons of gasoline and diesel fuel sold by them to consumers and retailers in each municipality during the preceding month. The Department of Revenue shall have the authority to promulgate such rules and regulations as is necessary to determine the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each municipality. In determining the percentage allocation of funds under this subsection for the fiscal year beginning July 1, 1987, and ending June 30, 1988, the Department of Revenue may consider gallons of gasoline and diesel fuel sold for a period of less than one (1) fiscal year. For the purposes of this subsection, the term "fiscal year" means the fiscal year beginning July 1 of a year.
(3) On or before September 15, 1987, and on or before the fifteenth day of each succeeding month, until the date specified in Section 65-39-35, the proceeds derived from contractors' taxes levied under Section 27-65-21 on contracts for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97 shall, except as otherwise provided in Section 31-17-127, be deposited into the State Treasury to the credit of the State Highway Fund to be used to fund that highway program. The Mississippi Department of Transportation shall provide to the Department of Revenue such information as is necessary to determine the amount of proceeds to be distributed under this subsection.
(4) On or before August 15, 1994, and on or before the fifteenth day of each succeeding month through July 15, 1999, from the proceeds of gasoline, diesel fuel or kerosene taxes as provided in Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) shall be deposited in the State Treasury to the credit of a special fund designated as the "State Aid Road Fund," created by Section 65-9-17. On or before August 15, 1999, and on or before the fifteenth day of each succeeding month, from the total amount of the proceeds of gasoline, diesel fuel or kerosene taxes apportioned by Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an amount equal to twenty-three and one-fourth percent (23-1/4%) of those funds, whichever is the greater amount, shall be deposited in the State Treasury to the credit of the "State Aid Road Fund," created by Section 65-9-17. Those funds shall be pledged to pay the principal of and interest on state aid road bonds heretofore issued under Sections 19-9-51 through 19-9-77, in lieu of and in substitution for the funds previously allocated to counties under this section. Those funds may not be pledged for the payment of any state aid road bonds issued after April 1, 1981; however, this prohibition against the pledging of any such funds for the payment of bonds shall not apply to any bonds for which intent to issue those bonds has been published for the first time, as provided by law before March 29, 1981. From the amount of taxes paid into the special fund under this subsection and subsection (9) of this section, there shall be first deducted and paid the amount necessary to pay the expenses of the Office of State Aid Road Construction, as authorized by the Legislature for all other general and special fund agencies. The remainder of the fund shall be allocated monthly to the several counties in accordance with the following formula:
(a) One-third (1/3) shall be allocated to all counties in equal shares;
(b) One-third (1/3) shall be allocated to counties based on the proportion that the total number of rural road miles in a county bears to the total number of rural road miles in all counties of the state; and
(c) One-third (1/3) shall be allocated to counties based on the proportion that the rural population of the county bears to the total rural population in all counties of the state, according to the latest federal decennial census.
For the purposes of this subsection, the term "gasoline, diesel fuel or kerosene taxes" means such taxes as defined in paragraph (f) of Section 27-5-101.
The amount of funds allocated to any county under this subsection for any fiscal year after fiscal year 1994 shall not be less than the amount allocated to the county for fiscal year 1994.
Any reference in the general laws of this state or the Mississippi Code of 1972 to Section 27-5-105 shall mean and be construed to refer and apply to subsection (4) of Section 27-65-75.
(5) One Million Six Hundred Sixty-six Thousand Six Hundred Sixty-six Dollars ($1,666,666.00) each month shall be paid into the special fund known as the "State Public School Building Fund" created and existing under the provisions of Sections 37-47-1 through 37-47-67. Those payments into that fund are to be made on the last day of each succeeding month hereafter.
(6) An amount each month beginning August 15, 1983, through November 15, 1986, as specified in Section 6 of Chapter 542, Laws of 1983, shall be paid into the special fund known as the Correctional Facilities Construction Fund created in Section 6 of Chapter 542, Laws of 1983.
(7) On or before August 15, 1992, and each succeeding month thereafter through July 15, 2000, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited by the department into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35. On or before August 15, 2000, and each succeeding month thereafter, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35 until such time that the total amount deposited into the fund during a fiscal year equals Forty-two Million Dollars ($42,000,000.00). Thereafter, the amounts diverted under this subsection (7) during the fiscal year in excess of Forty-two Million Dollars ($42,000,000.00) shall be deposited into the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and shall not be subject to the percentage appropriation requirements set forth in Section 37-61-33.
(8) On or before August 15, 1992, and each succeeding month thereafter, nine and seventy-three one-thousandths percent (9.073%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the Education Enhancement Fund created under Section 37-61-33.
(9) On or before August 15, 1994, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, Two Hundred Fifty Thousand Dollars ($250,000.00) shall be paid into the State Aid Road Fund.
(10) On or before August 15, 1994, and each succeeding month thereafter through August 15, 1995, from the revenue collected under this chapter during the preceding month, Two Million Dollars ($2,000,000.00) shall be deposited into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.
(11) Notwithstanding any other provision of this section to the contrary, on or before February 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(2) and the corresponding levy in Section 27-65-23 on the rental or lease of private carriers of passengers and light carriers of property as defined in Section 27-51-101 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.
(12) Notwithstanding any other provision of this section to the contrary, on or before August 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1) on retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101 and the corresponding levy in Section 27-65-23 on the rental or lease of these vehicles, shall be deposited, after diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.
(13) On or before July 15, 1994, and on or before the fifteenth day of each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-22 that is derived from activities held on the Mississippi State Fairgrounds Complex shall be paid into a special fund that is created in the State Treasury and shall be expended upon legislative appropriation solely to defray the costs of repairs and renovation at the Trade Mart and Coliseum.
(14) On or before August 15, 1998, and each succeeding month thereafter through July 15, 2005, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39. On or before August 15, 2007, and each succeeding month thereafter through July 15, 2010, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39 until all debts or other obligations incurred by the Certified Cotton Growers Organization under the Mississippi Boll Weevil Management Act before January 1, 2007, are satisfied in full. On or before August 15, 2010, and each succeeding month thereafter through July 15, 2011, fifty percent (50%) of that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited into the special fund created under Section 69-37-39 until such time that the total amount deposited into the fund during a fiscal year equals One Million Dollars ($1,000,000.00). On or before August 15, 2011, and each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited into the special fund created under Section 69-37-39 until such time that the total amount deposited into the fund during a fiscal year equals One Million Dollars ($1,000,000.00).
(15) Notwithstanding any other provision of this section to the contrary, on or before September 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-19(1)(d)(i)2, and 27-65-19(d)(i)3 shall be deposited, without diversion, into the Telecommunications Ad Valorem Tax Reduction Fund established in Section 27-38-7.
(16) (a) On or before August 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a project as defined in Section 57-30-1 shall be deposited, after all diversions except the diversion provided for in subsection (1) of this section, into the Sales Tax Incentive Fund created in Section 57-30-3.
(b) On or before August 15, 2007, and each succeeding month thereafter, eighty percent (80%) of the sales tax revenue collected during the preceding month under the provisions of this chapter from the operation of a tourism project under the provisions of Sections 57-26-1 through 57-26-5, shall be deposited, after the diversions required in subsections (7) and (8) of this section, into the Tourism Project Sales Tax Incentive Fund created in Section 57-26-3.
(17) Notwithstanding any other provision of this section to the contrary, on or before April 15, 2002, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under Section 27-65-23 on sales of parking services of parking garages and lots at airports shall be deposited, without diversion, into the special fund created under Section 27-5-101(d).
(18) [Repealed]
(19) (a) On or before August 15, 2005, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and the revenue collected on the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall, except as otherwise provided in this subsection (19), be deposited, after all diversions, into the Redevelopment Project Incentive Fund as created in Section 57-91-9.
(b) For a municipality participating in the Economic Redevelopment Act created in Sections 57-91-1 through 57-91-11, the diversion provided for in subsection (1) of this section attributable to the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and attributable to the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall be deposited into the Redevelopment Project Incentive Fund as created in Section 57-91-9, as follows:
(i) For the first six (6) years in which payments are made to a developer from the Redevelopment Project Incentive Fund, one hundred percent (100%) of the diversion shall be deposited into the fund;
(ii) For the seventh year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, eighty percent (80%) of the diversion shall be deposited into the fund;
(iii) For the eighth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, seventy percent (70%) of the diversion shall be deposited into the fund;
(iv) For the ninth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, sixty percent (60%) of the diversion shall be deposited into the fund; and
(v) For the tenth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, fifty percent (50%) of the funds shall be deposited into the fund.
(20) On or before January 15, 2007, and each succeeding month thereafter, eighty percent (80%) of the sales tax revenue collected during the preceding month under the provisions of this chapter from the operation of a tourism project under the provisions of Sections 57-28-1 through 57-28-5 shall be deposited, after the diversions required in subsections (7) and (8) of this section, into the Tourism Sales Tax Incentive Fund created in Section 57-28-3.
(21) (a) On or before April 15, 2007, and each succeeding month thereafter through June 15, 2013, One Hundred Fifty Thousand Dollars ($150,000.00) of the sales tax revenue collected during the preceding month under the provisions of this chapter shall be deposited into the MMEIA Tax Incentive Fund created in Section 57-101-3.
(b) On or before July 15, 2013, and each succeeding month thereafter, One Hundred Fifty Thousand Dollars ($150,000.00) of the sales tax revenue collected during the preceding month under the provisions of this chapter shall be deposited into the Mississippi Development Authority Job Training Grant Fund created in Section 57-1-451.
(22) Notwithstanding any other provision of this section to the contrary, on or before August 15, 2009, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-201 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.
(23) On or before August 15, 2015, and each succeeding month thereafter, Fifty Thousand Dollars ($50,000.00) of the sales tax revenue collected during the preceding month under the provisions of this chapter shall be deposited into the Mississippi Health Care Industry Zone Master Plan Job Training Grant Fund created in Section 8 of this act.
( * * *24) The remainder of the amounts
collected under the provisions of this chapter shall be paid into the State
Treasury to the credit of the General Fund.
( * * *25) It shall be the duty of the
municipal officials of any municipality that expands its limits, or of any
community that incorporates as a municipality, to notify the commissioner of
that action thirty (30) days before the effective date. Failure to so notify
the commissioner shall cause the municipality to forfeit the revenue that it
would have been entitled to receive during this period of time when the
commissioner had no knowledge of the action. If any funds have been
erroneously disbursed to any municipality or any overpayment of tax is
recovered by the taxpayer, the commissioner may make correction and adjust the
error or overpayment with the municipality by withholding the necessary funds
from any later payment to be made to the municipality.
SECTION 17. Section 10 of this act shall take effect and be in force from and after January 1, 2015, and the remainder of this act shall take effect and be in force from and after July 1, 2015.