MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Economic Development; Accountability, Efficiency, Transparency
By: Senator(s) Horhn
AN ACT TO AMEND SECTIONS 57-103-1, 57-103-3, 57-103-5, 57-103-7, 57-103-9, 57-103-11, 57-83-1 AND 27-65-111 MISSISSIPPI CODE OF 1972, TO CHANGE REFERENCES IN THE LAW FROM THE MISSISSIPPI TECHNOLOGY ALLIANCE TO INNOVATE MISSISSIPPI; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 57-103-1, Mississippi Code of 1972, is amended as follows:
57-103-1. (1) There is
established under the direction of * * *
Innovate Mississippi a program to be known as the "Research and
Development Program" for the purpose of making assistance available for
seed and early stage capital to small and medium-sized Mississippi
businesses with high-growth potential that are engaged in research and
development activities with a Mississippi university, college and/or
community/junior college.
(2) (a) In order to be eligible for assistance under the program, a business must: (i) have its principal place of business based in Mississippi, (ii) produce or provide a product and/or service that is science or technology related, (iii) have completed its product and/or service development planning, and (iv) develop technology-based business opportunity in partnership with a Mississippi university, college and/or community/junior college.
(b) Any business
desiring to participate in the program must submit an application to * * * Innovate Mississippi. The
application must contain a technical brief and project plan for the commercialization
of the technology developed or proposed for development by the business and any
other information requested by * * * Innovate Mississippi. If the * * * Innovate Mississippi staff reviewing
the application determines that an application should be reviewed by the Seed
Fund Investment Board appointed by the * * * Innovate Mississippi Board of
Directors, the application shall be forwarded to the Seed Fund Investment
Board. If the Seed Fund Investment Board approves the application, * * * Innovate Mississippi shall
negotiate a contract with the business regarding any assistance provided to the
business under the program, the expenditure of assistance provided to the
business, repayment of assistance by the business, and any other matters to
which the parties may agree. Any such contract must provide for at least the
following: (i) that any assistance provided to the business will be on a
reimbursement basis in which the business will expend funds according to the
terms of the contract and submit invoices, receipts and other applicable
documentation and information to the MTA for reimbursement; (ii) that no funds
may be expended or used for patent prosecution, reorganization of the business,
or payment of any existing debt of the business outstanding or otherwise
incurred at the time the contract is entered into; (iii) that no funds may be
expended to reimburse expenses for work conducted or services provided by the
business, a university or a third-party consultant if those expenses
were incurred before the term of the contract; (iv) that at least fifty-one
percent (51%) of the funds received by the business must be expended with a
Mississippi university, college and/or community/junior college with which the
business has a contract for research and development or technology development
work or services; (v) that * * * Innovate Mississippi will pay
not more than ten percent (10%) of overhead expenses for the business and/or
the university, college and/or community/junior college; (vi) that the business
will provide matching funding of One Dollar ($1.00) for every One Dollar
($1.00) of assistance, with at least fifty percent (50%) of the match being in
cash and the remaining amount being from in-kind services, all of which must be
documented by time sheets, payroll receipts, invoices and other documentation
or information required by * * * Innovate Mississippi; and (vii)
that the business receiving assistance will retain ownership of any technology
developed by the business before the start of the project for which assistance
is received, and that rights to new intellectual property developed as a result
of the project will be subject to mutually agreed upon terms and conditions of
the collaborative research agreement executed by the business and the
university, college and/or community/junior college before the start of the
project. Assistance received by a business and not expended for purposes
required in the contract between the business and * * * Innovate Mississippi may be
expended for hiring third-party consultants to assist the business,
working capital, marketing, prototype development and equipment. The amount of
assistance that a business may receive under the program shall not exceed One
Hundred Thousand Dollars ($100,000.00) in any one (1) year and shall not exceed
Two Hundred Thousand Dollars ($200,000.00) in the aggregate.
(c) Except as
otherwise provided in this paragraph, a business receiving assistance under the
program shall be required to repay the assistance in the manner provided in
this paragraph. Repayment shall be made through the use of a convertible note
in which the business will repay one hundred percent (100%) of the amount of
assistance received if such repayment is made within thirty-six (36) months
from the date the assistance is received, with the amount to be repaid by the
business increasing at a rate determined by the parties in the contract up to
an amount not to exceed two hundred percent (200%) of the amount of assistance
if such repayment is made later than thirty-six (36) months from the date the
assistance is received but not later than sixty (60) months from the date the
assistance is received. * * *The MTA Innovate Mississippi shall have the option of
converting the amount of assistance awarded to the business into common stock
of the business or into a royalty in the gross sales of the business. Amounts
received as repayments shall be deposited into the special fund created in
subsection (3) of this section. Notwithstanding the preceding provisions of
this paragraph, if the business receiving assistance fails to meet certain
financial performance levels established in the contract between the business
and * * *
Innovate Mississippi and the contract does not activate any repayment
provisions, then * * * Innovate Mississippi will deem the assistance provided to
be a loss and the business receiving assistance shall not be required to repay
the assistance received.
(3) There is created in the
State Treasury a special fund, to be designated as the "Research and
Development Program Fund," which shall consist of funds appropriated or
otherwise made available by the Legislature. The fund shall be maintained by
the State Treasurer as a separate and special fund, separate and apart from the
General Fund of the state. 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 or investment earnings on amounts in the fund shall be deposited into
such fund. Monies in the fund shall be disbursed, in the discretion of the
Mississippi Development Authority, to provide funds to * * * Innovate Mississippi for the
purposes described in this section, or for the purposes described in Sections
57-103-3, 57-103-5, 57-103-7 and/or 57-103-9 if * * * Innovate Mississippi determines
that the funds are not needed for the purposes described in this section.
SECTION 2. Section 57-103-3, Mississippi Code of 1972, is amended as follows:
57-103-3. (1) There is
established under the direction of * * *
Innovate Mississippi a program to be known as the "Mississippi New
Technology Business Program-Level 1" for the purpose of making assistance
available to provide working capital to support the initial capitalization of
technology-based businesses in Mississippi.
(2) (a) In order to be
eligible for assistance under the program, a business must: (i) have its
principal place of business based in Mississippi, and be a startup business,
(ii) have rights to the intellectual property supporting the venture
opportunity for which assistance is requested, (iii) demonstrate compelling
evidence for rapid growth and high performance potential, (iv) be invited by * * * Innovate Mississippi to apply
for assistance based upon an agreeable scope of work.
(b) Any business
desiring to participate in the program must submit an application to * * * Innovate Mississippi. The
application must contain a description of the purposes for which the assistance
is requested, the amount of assistance requested and any other information
requested by * * *
Innovate Mississippi. If the * * * Innovate Mississippi staff reviewing
the application determines that an application should be reviewed by the Seed
Fund Investment Board appointed by * * * Innovate Mississippi Board of
Directors, the application shall be forwarded to the Seed Fund Investment
Board. If the Seed Fund Investment Board approves the application, * * * Innovate Mississippi shall
negotiate a contract with the business regarding any assistance provided to the
business under the program, the expenditure of the assistance provided to the
business, and any other matters to which the parties may agree. Any such
contract must provide for at least the following: (i) that any assistance
provided to the business will be on a reimbursement basis in which the business
will expend funds according to the terms of the contract and submit invoices,
receipts and other applicable documentation and information to * * * Innovate Mississippi for
reimbursement; (ii) that no funds may be expended or used for patent
prosecution, reorganization of the business, or payment of any existing debt of
the business outstanding or otherwise incurred at the time the contract is
entered into; (iii) that no funds may be expended to reimburse expenses for
work conducted or services provided by the business, a university or a third-party
consultant if those expenses were incurred before the term of the contract;
(iv) that the business receiving assistance will retain ownership of any
technology developed by the business regardless of whether the technology is
developed before or after the receipt of assistance; and (v) that the business
will provide matching funding of One Dollar ($1.00) for every One Dollar
($1.00) of assistance, with at least twenty-five percent (25%) of the match
being in cash and the remaining amount being from in-kind services, all of
which must be documented by time sheets, payroll receipts, invoices and other
documentation or information required by * * * Innovate Mississippi.
Assistance received by a business may be expended for hiring third-party
consultants to assist the business and for equipment. The amount of assistance
that a business may receive under the program shall not exceed Ten Thousand
Dollars ($10,000.00) and any award of assistance shall be made on a one-time
basis.
(c) Except as
otherwise provided in this paragraph, a business receiving assistance under the
program shall be required to repay the assistance in the manner provided in
this paragraph. Repayment shall be made through the use of a nonrecourse loan
in which the business will repay the loan upon the successful commercialization
of the product or service. The business will repay one hundred percent (100%)
of the amount of assistance received if such repayment is made within thirty-six
(36) months from the date the assistance is received, with the amount to be
repaid by the business increasing at a rate determined by the parties in the
contract up to an amount not to exceed two hundred percent (200%) of the amount
of assistance if such repayment is made later than thirty-six (36) months from
the date the assistance is received but not later than sixty (60) months from
the date the assistance is received. Amounts received as repayments shall be
deposited into the special fund created in subsection (3) of this section.
Notwithstanding the preceding provisions of this paragraph, if the business
receiving assistance fails to meet certain financial performance levels
established in the contract between the business and * * * Innovate Mississippi and the
contract does not activate any repayment provisions, then * * * Innovate Mississippi will deem
the assistance provided to be a loss and the business receiving assistance
shall not be required to repay the assistance received.
(3) There is created in the
State Treasury a special fund, to be designated as the "Mississippi New
Technology Business Program-Level 1 Fund," which shall consist of funds
appropriated or otherwise made available by the Legislature. The fund shall be
maintained by the State Treasurer as a separate and special fund, separate and
apart from the General Fund of the state. 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 or investment earnings on amounts in the fund shall be
deposited into such fund. Monies in the fund shall be disbursed, in the
discretion of the Mississippi Development Authority, to provide funds to * * * Innovate Mississippi for the
purposes described in this section, or for the purposes described in Sections
57-103-1, 57-103-5, 57-103-7 and/or 57-103-9 if * * * Innovate Mississippi determines
that the funds are not needed for the purposes described in this section.
SECTION 3. Section 57-103-5, Mississippi Code of 1972, is amended as follows:
57-103-5. (1) There is
established under the direction of the * * *
Innovate Mississippi a program to be known as the "Mississippi New
Technology Business Program-Level 2" for the purpose of making assistance
available to provide working capital to support the continued capitalization of
technology-based businesses in Mississippi.
(2) (a) In order to be
eligible for assistance under the program, a business must: (i) have its
principal place of business based in Mississippi, and be a start-up,
seed-stage or early stage business, (ii) have rights to the intellectual
property supporting the venture opportunity for which assistance is requested,
(iii) have a business plan demonstrating economic feasibility; (iv) have an
accredited investor match, (v) have formed or have agreed to form a
collaborative agreement with a Mississippi institution of higher learning, (vi)
be invited by * * *
Innovate Mississippi to apply for assistance based upon an acceptable
commercialization strategy, and (vii) be willing to execute a performance-level-based
agreement with * * *
Innovate Mississippi.
(b) Any business
desiring to participate in the program must submit an application to * * * Innovate Mississippi. The
application must contain a description of the purposes for which the assistance
is requested, the amount of assistance requested and any other information
requested by * * *
Innovate Mississippi. If * * * Innovate Mississippi staff
reviewing the application determines that an application should be reviewed by
the Seed Fund Investment Board appointed by the * * * Innovate Mississippi Board of
Directors, the application shall be forwarded to the Seed Fund Investment
Board. If the Seed Fund Investment Board approves the application, * * * Innovate Mississippi shall
negotiate a contract with the business regarding any assistance provided to the
business under the program, the expenditure of the assistance provided to the
business, and any other matters to which the parties may agree. Any such
contract must provide for at least the following: (i) that any assistance
provided to the business will be on a reimbursement basis in which the business
will expend funds according to the terms of the contract and submit invoices,
receipts and other applicable documentation and information to * * * Innovate Mississippi for
reimbursement; (ii) that no funds may be expended or used for patent
prosecution, reorganization of the business, or payment of any existing debt of
the business outstanding or otherwise incurred at the time the contract is
entered into; (iii) that no funds may be expended to reimburse expenses for
work conducted or services provided by the business, a university or a third-party
consultant if those expenses were incurred before the term of the contract;
(iv) that the business receiving assistance will retain ownership of any
technology developed by the business regardless of whether the technology is
developed before or after the receipt of assistance; and (v) that the business
will provide matching funding of One Dollar ($1.00) for every One Dollar
($1.00) of assistance, with at least fifty percent (50%) of the match being
from an accredited investor or strategic investment partner, as determined by * * * Innovate Mississippi, and the
remaining amount being from in-kind services, all of which must be documented
by time sheets, payroll receipts, invoices and other documentation or
information required by * * *the MTA Innovate Mississippi. Assistance received by a
business may be expended for hiring third-party consultants to assist
the business and for equipment. The amount of assistance that a business may
receive under the program shall not exceed One Hundred Thousand Dollars
($100,000.00) in any one (1) year and shall not exceed Two Hundred Thousand
Dollars ($200,000.00) in the aggregate.
(c) Except as
otherwise provided in this paragraph, a business receiving assistance under the
program shall be required to repay the assistance in the manner provided in
this paragraph. Repayment shall be made through the use of a convertible note
in which the business will repay one hundred percent (100%) of the amount of
assistance received if such repayment is made within thirty-six (36) months
from the date the assistance is received, with the amount to be repaid by the
business increasing at a rate determined by the parties in the contract up to
an amount not to exceed two hundred percent (200%) of the amount of assistance
if such repayment is made later than thirty-six (36) months from the date the
assistance is received but not later than sixty (60) months from the date the
assistance is received. * * *The MTA Innovate Mississippi shall have the option of
converting the amount of assistance awarded to the business into common stock
of the business or into a royalty in the gross sales of the business. Amounts
received as repayments shall be deposited into the special fund created in
subsection (3) of this section. Notwithstanding the preceding provisions of
this paragraph, if the business receiving assistance fails to meet certain
financial performance levels established in the contract between the business
and * * *
Innovate Mississippi and the contract does not activate any repayment
provisions, then * * * Innovate Mississippi will deem the assistance provided to
be a loss and the business receiving assistance shall not be required to repay
the assistance received.
(3) There is created in the
State Treasury a special fund, to be designated as the "Mississippi New
Technology Business Program-Level 2 Fund," which shall consist of funds
appropriated or otherwise made available by the Legislature. The fund shall be
maintained by the State Treasurer as a separate and special fund, separate and
apart from the General Fund of the state. 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 or investment earnings on amounts in the fund shall be
deposited into such fund. Monies in the fund shall be disbursed, in the
discretion of the Mississippi Development Authority, to provide funds to * * * Innovate Mississippi for the
purposes described in this section, or for the purposes described in Sections
57-103-1, 57-103-3, 57-103-7 and/or 57-103-9 if * * * Innovate Mississippi determines
that the funds are not needed for the purposes described in this section.
SECTION 4. Section 57-103-7, Mississippi Code of 1972, is amended as follows:
57-103-7. (1) There is
established under the direction of * * *
Innovate Mississippi a program to be known as the "Rural Innovation
Program-Level 1" for the purpose of making assistance available to provide
working capital to support the initial capitalization of technology-based
businesses in rural Mississippi.
(2) (a) In order to be
eligible for assistance under the program, a business must: (i) have its
principal place of business based in a rural county in Mississippi, (ii)
produce or provide a product and/or service that is science or technology
related, (iii) have fewer than one hundred fifty (150) employees, and (iv) have
completed its product and/or service development planning. For the purposes of
this paragraph, a "rural county" shall be a county designated as such
by * * * Innovate
Mississippi.
(b) Any business
desiring to participate in the program must submit an application to * * * Innovate Mississippi. The
application must contain a description of the purposes for which the assistance
is requested, the amount of assistance requested and any other information
requested by * * *
Innovate Mississippi. If the * * * Innovate Mississippi staff reviewing
the application determines that an application should be reviewed by the Seed
Fund Investment Board appointed by * * * Innovate Mississippi Board of
Directors, the application shall be forwarded to the Seed Fund Investment
Board. If the Seed Fund Investment Board approves the application, * * * Innovate Mississippi shall
negotiate a contract with the business regarding any assistance provided to the
business under the program, the expenditure of the assistance provided to the
business, and any other matters to which the parties may agree. Any such
contract must provide for at least the following: (i) that any assistance
provided to the business will be on a reimbursement basis in which the business
will expend funds according to the terms of the contract and submit invoices,
receipts and other applicable documentation and information to * * * Innovate Mississippi for
reimbursement; (ii) that no funds may be expended or used for patent
prosecution, reorganization of the business, or payment of any existing debt of
the business outstanding or otherwise incurred at the time the contract is
entered into; (iii) that no funds may be expended to reimburse expenses for
work conducted or services provided by the business, a university or a third-party
consultant if those expenses were incurred before the term of the contract;
(iv) that the business receiving assistance will retain ownership of any
technology developed by the business regardless of whether the technology is
developed before or after the receipt of assistance; and (v) that the business
will provide matching funding of One Dollar ($1.00) for every One Dollar
($1.00) of assistance, with at least twenty-five percent (25%) of the match
being in cash and the remaining amount being from in-kind services, all of
which must be documented by time sheets, payroll receipts, invoices and other
documentation or information required by * * * Innovate Mississippi.
Assistance received by a business may be expended for hiring third-party
consultants to assist the business and for equipment. The amount of assistance
that a business may receive under the program shall not exceed Ten Thousand
Dollars ($10,000.00) and any award of assistance shall be made on a one-time
basis.
(c) Except as
otherwise provided in this paragraph, a business receiving assistance under the
program shall be required to repay the assistance in the manner provided in
this paragraph. Repayment shall be made through the use of a nonrecourse loan
in which the business will repay the loan upon the successful commercialization
of the product or service. The business will repay one hundred percent (100%)
of the amount of assistance received if such repayment is made within thirty-six
(36) months from the date the assistance is received, with the amount to be
repaid by the business increasing at a rate determined by the parties in the
contract up to an amount not to exceed two hundred percent (200%) of the amount
of assistance if such repayment is made later than thirty-six (36) months from
the date the assistance is received but not later than sixty (60) months from
the date the assistance is received. Amounts received as repayments shall be
deposited into the special fund created in subsection (3) of this section.
Notwithstanding the preceding provisions of this paragraph, if the business
receiving assistance fails to meet certain financial performance levels
established in the contract between the business and * * * Innovate Mississippi and the
contract does not activate any repayment provisions, then * * * Innovate Mississippi will deem
the assistance provided to be a loss and the business receiving assistance
shall not be required to repay the assistance received.
(3) There is created in the
State Treasury a special fund, to be designated as the "Rural Innovation
Program-Level 1 Fund," which shall consist of funds appropriated or
otherwise made available by the Legislature. The fund shall be maintained by
the State Treasurer as a separate and special fund, separate and apart from the
General Fund of the state. 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 or investment earnings on amounts in the fund shall be deposited into
such fund. Monies in the fund shall be disbursed, in the discretion of the
Mississippi Development Authority, to provide funds to * * * Innovate Mississippi for the
purposes described in this section, or for the purposes described in Sections
57-103-1, 57-103-3, 57-103-5 and/or 57-103-9 if * * * Innovate Mississippi determines
that the funds are not needed for the purposes described in this section.
SECTION 5. Section 57-103-9, Mississippi Code of 1972, is amended as follows:
57-103-9. (1) There is
established under the direction of * * *
Innovate Mississippi a program to be known as the "Rural Innovation
Program-Level 2" for the purpose of making assistance available to provide
working capital to support the continued capitalization of technology-based
businesses in rural Mississippi.
(2) (a) In order to be
eligible for assistance under the program, a business must: (i) have its
principal place of business based in a rural county in Mississippi, (ii)
produce or provide a product and/or service that is science or technology
related, (iii) have fewer than one hundred fifty (150) employees, and (iv) have
completed its product and/or service development planning. For the purposes of
this paragraph, a "rural county" shall be a county designated as such
by * * * Innovate
Mississippi.
(b) Any business
desiring to participate in the program must submit an application to * * * Innovate Mississippi. The
application must contain a description of the purposes for which the assistance
is requested, the amount of assistance requested and any other information
requested by * * *
Innovate Mississippi. If * * * Innovate Mississippi staff
reviewing the application determines that an application should be reviewed by
the Seed Fund Investment Board appointed by * * * Innovate Mississippi Board of
Directors, the application shall be forwarded to the Seed Fund Investment
Board. If the Seed Fund Investment Board approves the application, * * * Innovate Mississippi shall
negotiate a contract with the business regarding any assistance provided to the
business under the program, the expenditure of the assistance provided to the
business, and any other matters to which the parties may agree. Any such
contract must provide for at least the following: (i) that any assistance
provided to the business will be on a reimbursement basis in which the business
will expend funds according to the terms of the contract and submit invoices, receipts
and other applicable documentation and information to * * * Innovate Mississippi for
reimbursement; (ii) that no funds may be expended or used for patent
prosecution, reorganization of the business, or payment of any existing debt of
the business outstanding or otherwise incurred at the time the contract is
entered into; (iii) that no funds may be expended to reimburse expenses for
work conducted or services provided by the business, a university or a third-party
consultant if those expenses were incurred before the term of the contract;
(iv) that the business receiving assistance will retain ownership of any
technology developed by the business regardless of whether the technology is
developed before or after the receipt of assistance; and (v) that the business
will provide matching funding of One Dollar ($1.00) for every One Dollar
($1.00) of assistance, with at least fifty percent (50%) of the match being
from an accredited investor or strategic investment partner, as determined by * * * Innovate Mississippi, and the
remaining amount being from in-kind services, all of which must be documented
by time sheets, payroll receipts, invoices and other documentation or
information required by * * *the MTA Innovate Mississippi. Assistance received by a
business may be expended for hiring third-party consultants to assist
the business and for equipment. The amount of assistance that a business may
receive under the program shall not exceed One Hundred Thousand Dollars
($100,000.00) in any one (1) year and shall not exceed Two Hundred Thousand
Dollars ($200,000.00) in the aggregate.
(c) Except as
otherwise provided in this paragraph, a business receiving assistance under the
program shall be required to repay the assistance in the manner provided in
this paragraph. Repayment shall be made through the use of a convertible note
in which the business will repay one hundred percent (100%) of the amount of
assistance received if such repayment is made within thirty-six (36) months
from the date the assistance is received, with the amount to be repaid by the
business increasing at a rate determined by the parties in the contract up to
an amount not to exceed two hundred percent (200%) of the amount of assistance
if such repayment is made later than thirty-six (36) months from the date the
assistance is received but not later than sixty (60) months from the date the
assistance is received. * * *The MTA Innovate Mississippi shall have the option of
converting the amount of assistance awarded to the business into common stock
of the business or into a royalty in the gross sales of the business. Amounts
received as repayments shall be deposited into the special fund created in
subsection (3) of this section. Notwithstanding the preceding provisions of
this paragraph, if the business receiving assistance fails to meet certain
financial performance levels established in the contract between the business
and * * *
Innovate Mississippi and the contract does not activate any repayment
provisions, then * * * Innovate Mississippi will deem the assistance provided to
be a loss and the business receiving assistance shall not be required to repay
the assistance received.
(3) There is created in the
State Treasury a special fund, to be designated as the "Rural Innovation
Program-Level 2 Fund," which shall consist of funds appropriated or
otherwise made available by the Legislature. The fund shall be maintained by
the State Treasurer as a separate and special fund, separate and apart from the
General Fund of the state. 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 or investment earnings on amounts in the fund shall be deposited into
such fund. Monies in the fund shall be disbursed, in the discretion of the
Mississippi Development Authority, to provide funds to * * * Innovate Mississippi for the
purposes described in this section, or for the purposes described in Sections
57-103-1, 57-103-3, 57-103-5 and/or 57-103-7 if * * * Innovate Mississippi determines
that the funds are not needed for the purposes described in this section.
SECTION 6. Section 57-103-11, Mississippi Code of 1972, is amended as follows:
57-103-11. (1) There is
created in the State Treasury a special fund, to be designated as the " * * * Innovate
Mississippi Administration Fund," which shall consist of funds
appropriated or otherwise made available by the Legislature. The fund shall be
maintained by the State Treasurer as a separate and special fund, separate and
apart from the General Fund of the state. 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 or investment earnings on amounts in the fund shall be
deposited into such fund. Monies in the fund shall be disbursed, in the
discretion of the Mississippi Development Authority, to provide funds to defray
the costs incurred by * * * Innovate Mississippi in the
implementation and administration of the programs created in Sections 57-103-1
through 57-103-9.
(2) (a) Before January 1,
2010, the * * * Innovate Mississippi shall devise and implement
a performance monitoring system consisting of the following:
(i) Objectives and benchmarks for each program;
(ii) Performance measures for each program; and
(iii) A definition of the return on investment that is appropriate and accurate for every program.
(b) From and after
January 1, 2011, * * * Innovate Mississippi shall
report annually to the Mississippi Development Authority and the Legislature as
to its success in meeting its program objectives and performance measures
required by this subsection (2).
(c) The Mississippi
Development Authority may not disburse any funds to the * * * Innovate
Mississippi, unless it has met the reporting requirements of this subsection
(2).
SECTION 7. Section 57-83-1, Mississippi Code of 1972, is amended as follows:
57-83-1. The President of
the Senate and the Speaker of the House of Representatives shall each appoint
three (3) members of their respective legislative houses to serve as members of * * * Innovate
Mississippi, Liaison Committee. The members of such committee shall be
entitled (a) to attend meetings of * * * Innovate
Mississippi, Board of Directors, (b) to receive all budgets, reports,
audits and all financial and other information distributed to the Directors of * * * Innovate
Mississippi, (c) to meet and confer with the directors and staff of * * * Innovate
Mississippi, and (d) to perform such other activities as may be necessary
or proper in discharging their responsibilities of liaison with their
respective houses of the Legislature. The members of the Liaison Committee
shall have no jurisdiction or vote on any matter within the jurisdiction of * * * Innovate
Mississippi. The members of the committee shall prepare and submit an
annual report to the Legislature no later than December 15 of each calendar
year setting forth the activities and financial condition of * * * Innovate
Mississippi, and their perspective and comments on the activities of * * * Innovate
Mississippi. The report shall also contain recommendations regarding
policy or legislative changes for consideration by the Legislature. The
members of the * * * Innovate Mississippi, Liaison Committee
shall be bound by the same limitations as to confidentiality of information
regarding products, processes or the internal affairs of private businesses, as
are imposed upon the Officers and Directors of * * * Innovate
Mississippi. When the Legislature is not in session, members shall be paid
per diem and all actual and necessary expenses, including mileage expenses,
from their respective contingent expense funds at the rate authorized for
committee meetings when the Legislature is not in session; however, no per diem
and expenses will be paid when the Legislature is in session. The terms of the
members of the Liaison Committee shall expire at the end of their terms of
office.
SECTION 8. Section 27-65-111, Mississippi Code of 1972, is amended as follows:
27-65-111. The exemptions from the provisions of this chapter which are not industrial, agricultural or governmental, or which do not relate to utilities or taxes, or which are not properly classified as one (1) of the exemption classifications of this chapter, shall be confined to persons or property exempted by this section or by the Constitution of the United States or the State of Mississippi. No exemptions as now provided by any other section, except the classified exemption sections of this chapter set forth herein, shall be valid as against the tax herein levied. Any subsequent exemption from the tax levied hereunder, except as indicated above, shall be provided by amendments to this section.
No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21, Mississippi Code of 1972.
The tax levied by this chapter shall not apply to the following:
(a) Sales of tangible personal property and services to hospitals or infirmaries owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are subject to and governed by Sections 41-7-123 through 41-7-127.
Only sales of tangible personal property or services which are ordinary and necessary to the operation of such hospitals and infirmaries are exempted from tax.
(b) Sales of daily or weekly newspapers, and periodicals or publications of scientific, literary or educational organizations exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code of 1954, as it exists as of March 31, 1975, and subscription sales of all magazines.
(c) Sales of coffins, caskets and other materials used in the preparation of human bodies for burial.
(d) Sales of tangible personal property for immediate export to a foreign country.
(e) Sales of tangible personal property to an orphanage, old men's or ladies' home, supported wholly or in part by a religious denomination, fraternal nonprofit organization or other nonprofit organization.
(f) Sales of tangible personal property, labor or services taxable under Sections 27-65-17, 27-65-19 and 27-65-23, to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual.
(g) Sales to elementary and secondary grade schools, junior and senior colleges owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are exempt from state income taxation, provided that this exemption does not apply to sales of property or services which are not to be used in the ordinary operation of the school, or which are to be resold to the students or the public.
(h) The gross proceeds of retail sales and the use or consumption in this state of drugs and medicines:
(i) Prescribed for the treatment of a human being by a person authorized to prescribe the medicines, and dispensed or prescription filled by a registered pharmacist in accordance with law; or
(ii) Furnished by a licensed physician, surgeon, dentist or podiatrist to his own patient for treatment of the patient; or
(iii) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, surgeon, dentist or podiatrist; or
(iv) Sold to a licensed physician, surgeon, podiatrist, dentist or hospital for the treatment of a human being; or
(v) Sold to this state or any political subdivision or municipal corporation thereof, for use in the treatment of a human being or furnished for the treatment of a human being by a medical facility or clinic maintained by this state or any political subdivision or municipal corporation thereof.
"Medicines," as used in this paragraph (h), shall mean and include any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease and which is commonly recognized as a substance or preparation intended for such use; provided that "medicines" do not include any auditory, prosthetic, ophthalmic or ocular device or appliance, any dentures or parts thereof or any artificial limbs or their replacement parts, articles which are in the nature of splints, bandages, pads, compresses, supports, dressings, instruments, apparatus, contrivances, appliances, devices or other mechanical, electronic, optical or physical equipment or article or the component parts and accessories thereof, or any alcoholic beverage or any other drug or medicine not commonly referred to as a prescription drug.
Notwithstanding the preceding sentence of this paragraph (h), "medicines" as used in this paragraph (h), shall mean and include sutures, whether or not permanently implanted, bone screws, bone pins, pacemakers and other articles permanently implanted in the human body to assist the functioning of any natural organ, artery, vein or limb and which remain or dissolve in the body.
"Hospital," as used in this paragraph (h), shall have the meaning ascribed to it in Section 41-9-3, Mississippi Code of 1972.
Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on prescription within the meaning of this paragraph (h).
(i) Retail sales of automobiles, trucks and truck-tractors if exported from this state within forty-eight (48) hours and registered and first used in another state.
(j) Sales of tangible personal property or services to the Salvation Army and the Muscular Dystrophy Association, Inc.
(k) From July 1, 1985, through December 31, 1992, retail sales of "alcohol blended fuel" as such term is defined in Section 75-55-5. The gasoline-alcohol blend or the straight alcohol eligible for this exemption shall not contain alcohol distilled outside the State of Mississippi.
(l) Sales of tangible personal property or services to the Institute for Technology Development.
(m) The gross proceeds of retail sales of food and drink for human consumption made through vending machines serviced by full line vendors from and not connected with other taxable businesses.
(n) The gross proceeds of sales of motor fuel.
(o) Retail sales of food for human consumption purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, from and after October 1, 1987, or from and after the expiration of any waiver granted pursuant to federal law, the effect of which waiver is to permit the collection by the state of tax on such retail sales of food for human consumption purchased with food stamps.
(p) Sales of cookies for human consumption by the Girl Scouts of America no part of the net earnings from which sales inures to the benefit of any private group or individual.
(q) Gifts or sales of tangible personal property or services to public or private nonprofit museums of art.
(r) Sales of tangible personal property or services to alumni associations of state-supported colleges or universities.
(s) Sales of tangible personal property or services to National Association of Junior Auxiliaries, Inc., and chapters of the National Association of Junior Auxiliaries, Inc.
(t) Sales of tangible personal property or services to domestic violence shelters which qualify for state funding under Sections 93-21-101 through 93-21-113.
(u) Sales of tangible personal property or services to the National Multiple Sclerosis Society, Mississippi Chapter.
(v) Retail sales of food for human consumption purchased with food instruments issued the Mississippi Band of Choctaw Indians under the Women, Infants and Children Program (WIC) funded by the United States Department of Agriculture.
(w) Sales of tangible personal property or services to a private company, as defined in Section 57-61-5, which is making such purchases with proceeds of bonds issued under Section 57-61-1 et seq., the Mississippi Business Investment Act.
(x) The gross collections from the operation of self-service, coin-operated car washing equipment and sales of the service of washing motor vehicles with portable high-pressure washing equipment on the premises of the customer.
(y) Sales of tangible
personal property or services to * * * Innovate
Mississippi.
(z) Sales of tangible personal property to nonprofit organizations that provide foster care, adoption services and temporary housing for unwed mothers and their children if the organization is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code.
(aa) Sales of tangible personal property to nonprofit organizations that provide residential rehabilitation for persons with alcohol and drug dependencies if the organization is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code.
(bb) Retail sales of an article of clothing or footwear designed to be worn on or about the human body if the sales price of the article is less than One Hundred Dollars ($100.00) and the sale takes place during a period beginning at 12:01 a.m. on the last Friday in July and ending at 12:00 midnight the following Saturday. This paragraph (bb) shall not apply to:
(i) Accessories including jewelry, handbags, luggage, umbrellas, wallets, watches, backpacks, briefcases, garment bags and similar items carried on or about the human body, without regard to whether worn on the body in a manner characteristic of clothing;
(ii) The rental of clothing or footwear; and
(iii) Skis, swim fins, roller blades, skates and similar items worn on the foot.
From and after January 1, 2010, the governing authorities of a municipality, for retail sales occurring within the corporate limits of the municipality, may suspend the application of the exemption provided for in this paragraph (bb) by adoption of a resolution to that effect stating the date upon which the suspension shall take effect. A certified copy of the resolution shall be furnished to the Department of Revenue at least ninety (90) days prior to the date upon which the municipality desires such suspension to take effect.
(cc) The gross proceeds of sales of tangible personal property made for the sole purpose of raising funds for a school or an organization affiliated with a school.
As used in this paragraph (cc), "school" means any public or private school that teaches courses of instruction to students in any grade from Kindergarten through Grade 12.
(dd) Sales of durable medical equipment and home medical supplies when ordered or prescribed by a licensed physician for medical purposes of a patient. As used in this paragraph (dd), "durable medical equipment" means equipment, including repair and replacement parts for the equipment, which:
(i) Can withstand repeated use;
(ii) Is primarily and customarily used to serve a medical purpose;
(iii) Generally is not useful to a person in the absence of illness or injury; and
(iv) Is not worn in or on the body.
(ee) Sales of tangible personal property or services to Mississippi Blood Services.
(ff) (i) Subject to the provisions of this paragraph (ff), retail sales of firearms, ammunition and hunting supplies if sold during the annual Mississippi Second Amendment Weekend holiday beginning at 12:01 a.m. on the first Friday in September and ending at 12:00 midnight the following Sunday. For the purposes of this paragraph (ff), "hunting supplies" means tangible personal property used for hunting, including, and limited to, archery equipment, firearm and archery cases, firearm and archery accessories, hearing protection, holsters, belts and slings. Hunting supplies does not include animals used for hunting.
(ii) This paragraph (ff) shall apply only if one or more of the following occur:
1. Title to and/or possession of an eligible item is transferred from a seller to a purchaser; and/or
2. A purchaser orders and pays for an eligible item and the seller accepts the order for immediate shipment, even if delivery is made after the time period provided in subparagraph (i) of this paragraph (ff), provided that the purchaser has not requested or caused the delay in shipment.
(gg) Sales of nonperishable food items to charitable organizations that are exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code and operate a food bank or food pantry or food lines.
(hh) Sales of tangible personal property or services to The United Way of the Pine Belt Region, Inc.
(ii) Sales of tangible personal property or services to the Mississippi Children's Museum.
(jj) Sales of tangible personal property or services to the Jackson Zoological Park.
(kk) Sales of tangible personal property or services to the Hattiesburg Zoo.
(ll) Gross proceeds from sales of food, merchandise or other concessions at an event held solely for religious or charitable purposes at livestock facilities, agriculture facilities or other facilities constructed, renovated or expanded with funds for the grant program authorized under Section 18, Chapter 530, Laws of 1995.
(mm) Sales of tangible personal property and services to the Diabetes Foundation of Mississippi and the Mississippi Chapter of the Juvenile Diabetes Research Foundation.
(nn) Sales of potting soil, mulch, or other soil amendments used in growing ornamental plants which bear no fruit of commercial value when sold to commercial plant nurseries that operate exclusively at wholesale and where no retail sales can be made.
(oo) Sales of tangible personal property or services to the University of Mississippi Medical Center Research Development Foundation.
(pp) Sales of tangible personal property or services to Keep Mississippi Beautiful, Inc., and all affiliates of Keep Mississippi Beautiful, Inc.
(qq) Sales of tangible personal property or services to the Friends of Children's Hospital.
(rr) Sales of tangible personal property or services to the Pinecrest Weekend Snackpacks for Kids located in Corinth, Mississippi.
(ss) Sales of hearing aids when ordered or prescribed by a licensed physician, audiologist or hearing aid specialist for the medical purposes of a patient.
(tt) Sales exempt under the Facilitating Business Rapid Response to State Declared Disasters Act of 2015 (Sections 27-113-1 through 27-113-9).
SECTION 9. This act shall take effect and be in force from and after its passage.