MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Highways and Transportation; Finance
By: Senator(s) Simmons (13th)
AN ACT TO IMPOSE A TAX EQUAL TO 8% OF THE STATEWIDE AVERAGE WHOLESALE PRICE OF A GALLON OF MOTOR FUEL CALCULATED FOR THE APPLICABLE CALENDAR YEAR ON EACH GALLON OF MOTOR FUEL SOLD FOR CONSUMPTION IN VEHICLES OPERATED ON THE HIGHWAYS OF THIS STATE; TO PROVIDE THAT THE AMOUNT OF THE TAX SHALL BE ADDED TO THE APPLICABLE EXCISE TAX AND THAT THE COMMISSIONER OF REVENUE SHALL NOTIFY EACH DISTRIBUTOR OF MOTOR FUEL OF THE APPLICABLE TAX PER GALLON WHICH SHALL BE THE TAX IN EFFECT FOR THE TWELVE-MONTH PERIOD BEGINNING ON THE NEXT JANUARY FIRST; TO PROVIDE THE MANNER THAT THE TAX SHALL BE CALCULATED; TO PROVIDE FOR CERTAIN EXEMPTIONS FROM THE TAX; TO REQUIRE THE REVENUE COLLECTED FROM SUCH TAX TO BE DEPOSITED INTO THE TRANSPORTATION INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; TO AMEND SECTION 27-19-43, MISSISSIPPI CODE OF 1972, TO PLACE ADDITIONAL REGISTRATION FEES ON MOTOR VEHICLES AND TRAILERS REGISTERED IN THIS STATE AND PROVIDE THAT THE REVENUE FROM SUCH FEES BE DEPOSITED IN THE TRANSPORTATION INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; TO AMEND SECTION 1, CHAPTER 479, LAWS OF 2015, TO PROVIDE THAT AMOUNTS IN THE SPECIAL BOND SINKING FUND ESTABLISHED TO PAY THE ANNUAL DEBT SERVICE ON BONDS ISSUED FOR THE 2015 MISSISSIPPI DEFICIENT BRIDGE AND STATE AID ROAD SUPPLEMENTAL FUND THAT ARE IN EXCESS OF THE AMOUNT NEEDED TO FUND THE NEXT ANNUAL DEBT SERVICE ON SUCH BONDS SHALL BE DEPOSITED INTO THE TRANSPORTATION INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; TO CREATE THE TRANSPORTATION INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; TO PROVIDE FOR THE ALLOCATION OF MONEY IN THE FUND TO THE STATE HIGHWAY FUND, THE LOCAL SYSTEM ROAD PROGRAM, THE LOCAL SYSTEM BRIDGE REPLACEMENT AND REHABILITATION FUND, THE STATE AID ROAD FUND, THE MULTI-MODAL TRANSPORTATION IMPROVEMENT FUND, THE MISSISSIPPI DEVELOPMENT AUTHORITY, THE AIR CARRIER INCENTIVE PROGRAM FUND AND THE MISSISSIPPI HIGHWAY-RAILROAD GRADE CROSSING ACCOUNT; TO CREATE A NEW SECTION TO BE CODIFIED AS SECTION 65-18-8, MISSISSIPPI CODE OF 1972, TO CREATE THE LOCAL SYSTEM ROAD PROGRAM ADVISORY COMMITTEE; TO PROVIDE FOR THE MEMBERSHIP OF THE COMMITTEE; TO PROVIDE THAT THE COMMITTEE SHALL RECOMMEND FUNDING PRIORITIES IN EACH COUNTY TO THE STATE AID ENGINEER AND MAKE RECOMMENDATIONS REGARDING FUNDING OF THE LOCAL SYSTEM ROAD PROGRAM TO THE LEGISLATURE; TO CREATE A NEW SECTION TO BE CODIFIED AS SECTION 65-18-10, MISSISSIPPI CODE OF 1972, TO CREATE THE LOCAL SYSTEM ROAD PROGRAM FUND; TO PROVIDE THAT MONEY ALLOCATED BY THE STATE AID ENGINEER TO A COUNTY UNDER THIS SECTION AND THE REVENUE FROM THE AD VALOREM TAX AUTHORIZED TO BE LEVIED BY THIS SECTION SHALL BE UTILIZED SOLELY FOR THE LOCAL SYSTEM ROAD PROGRAM IN THE COUNTY UNDER THE DIRECTION OF THE STATE AID ENGINEER; TO PROVIDE THE FORMULA FOR ALLOCATION OF MONEY IN THE FUND TO COUNTIES; TO PROVIDE THAT IN ORDER TO PARTICIPATE IN THE LOCAL SYSTEM ROAD PROGRAM A COUNTY MUST ANNUALLY LEVY A SPECIAL AD VALOREM TAX, NOT TO EXCEED ONE MILL, UPON ALL TAXABLE PROPERTY LOCATED WITHIN THE COUNTY; TO PROVIDE THAT THE AVAILS OF THE SPECIAL LEVY SHALL BE USED EXCLUSIVELY FOR THE LOCAL SYSTEM ROAD PROGRAM; TO PROVIDE THAT THE MISSISSIPPI DEVELOPMENT AUTHORITY (MDA) SHALL ESTABLISH AN AIR CARRIER INCENTIVE PROGRAM TO MATCH FUNDS EXPENDED BY AIRPORT AUTHORITIES FOR INCENTIVES APPROVED BY MDA INTENDED TO ATTRACT AIR CARRIERS AND EXPAND AIR CARRIER SERVICES; TO CREATE A SPECIAL FUND TO BE DESIGNATED AS THE "AIR CARRIER INCENTIVE PROGRAM FUND"; TO PROVIDE THAT MDA SHALL UTILIZE MONEY IN THE FUND TO MATCH FUNDS EXPENDED BY AIRPORT AUTHORITIES TO PROVIDE THE INCENTIVES AUTHORIZED; TO AMEND SECTIONS 27-65-75, 57-43-15, 65-18-9 AND 65-18-11, 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. (1) In addition to the excise taxes imposed on motor fuel by Sections 27-55-11, 27-55-519, 27-55-521, and 27-59-11, a tax equal to eight percent (8%) of the statewide average wholesale price of a gallon of motor fuel calculated for the applicable calendar year as provided in this section is imposed on each gallon of motor fuel sold for consumption in vehicles operated on the highways of this state. The calculation of the tax shall be rounded to the nearest one-tenth (1/10) of a cent. The applicable tax per gallon of motor fuel calculated under this subsection shall be added to the excise taxes imposed by Sections 27-55-11, 27-55-519, 27-55-521, and 27-59-11 to arrive at the total tax per gallon of motor fuel for the calendar year in question. The commissioner shall notify each distributor of the applicable tax per gallon which shall be the tax in effect for the twelve-month period beginning on the next January first.
(2) On or before September 1, 2016, and on or before October 1 of every year thereafter, the Commissioner of Revenue shall calculate the tax per gallon on motor fuel for the applicable calendar year based upon the average wholesale price of such fuel excluding federal and state excise taxes. The commissioner shall determine the average wholesale price per gallon by averaging the monthly gasoline and special fuel price information for the most current twelve-month period available for the State of Mississippi and published by the United States Energy Information Administration.
(3) Beginning with the October 1, 2017 calculation, if the average wholesale price fluctuates by more than or less than ten percent (10%) when compared to the prior year, the commissioner shall limit the average wholesale price per gallon increase or decrease to ten percent (10%) of the previous year result.
(4) The tax imposed by this section shall be administered and collected and any penalties and interest shall be imposed in the same manner as the taxes collected pursuant to Title 27, Chapter 55.
(5) The United States government, the State of Mississippi, counties, municipalities, school districts and all other political subdivisions of the state, and volunteer fire departments chartered under the laws of the State of Mississippi as nonprofit corporations shall be exempt from the tax levied by this section.
(6) On or before the fifteenth day of each month the revenue collected from the tax levied by this section during the preceding month shall be paid and distributed to the Transportation Repair, Renovation and Maintenance Fund created in Section 4 of this section.
(7) If the amount of revenue collected in any fiscal year from the tax levied by this section reaches Three Hundred and Sixty-five Million Dollars ($365,000,000.00), the collection of the tax levied by this section shall be suspended for the remainder of the fiscal year beginning with the month following the month in which collections reached such amount.
SECTION 2. Section 27-19-43, Mississippi Code of 1972, is amended as follows:
27-19-43. (1) License tags, substitute tags and decals for individual fleets and for private carriers of passengers, school buses (excluding school buses owned by a school district in the state), church buses, taxicabs, ambulances, hearses, motorcycles and private carriers of property, and private commercial carriers of property of a gross weight of ten thousand (10,000) pounds and less, shall be sold and issued by the tax collectors of the several counties.
(2) Applications for license tags for motor vehicles in a corporate fleet registered under Section 27-19-66 and trailers in a fleet registered under Section 27-19-66.1, and applications for all other license tags, substitute tags and decals shall be filed with the department or the local tax collector of the respective counties and forwarded to the department for issuance to the applicant. All tags and decals for vehicles owned by the state or any agency or instrumentality thereof, and vehicles owned by a fire protection district, school district or a county or municipality, and all vehicles owned by a road, drainage or levee district shall be issued by the department.
(3) In addition to the
privilege taxes levied * * *
in this chapter, there shall be collected the following registration or
tag fee:
(a) For the issuance of both a license tag and two (2) decals, a fee of Five Dollars ($5.00).
(b) For the issuance of up to two (2) decals only, a fee of Three Dollars and Seventy-five Cents ($3.75).
(c) Additionally, the tax collector or the department, as the case may be, shall assess and collect a fee of Four Dollars ($4.00) upon each set of license tags and two (2) decals issued, or upon each set of two (2) decals issued, and that sum shall be deposited in the Mississippi Trauma Care Systems Fund established in Section 41-59-75, to be used for the purposes set out in that section.
No tag or decal shall be issued either by a tax collector or by the department without the collection of such registration fee except substitute tags and decals and license tags for vehicles owned by the State of Mississippi.
Beginning July 1, 1987, and until the date specified in Section 65-39-35, there shall be levied a registration fee of Five Dollars ($5.00) in addition to the regular registration fee imposed in paragraphs (a) and (b) of this subsection. Such additional registration fee shall be levied in the same manner as the regular registration fee.
(4) (a) Beginning July 1, 2016, there shall be levied a registration fee in addition to the regular registration fee imposed in subsection (3) of this section and in the same manner as the regular registration fee as follows:
(i) On each private carrier of passengers and light carrier of property............................................ $ 6.00
(ii) On each motorcycle or motorcycle
trailer................................................ $ 3.00
(iii) On each utility trailer.......... $ 30.00
(iv) On each school bus (excluding school buses owned by a school district in the state), church bus, taxicab,
ambulance, hearse, vehicle in a corporate fleet........ $ 30.00
(v) On each motor vehicle with a gross weight of more than six thousand (6,000) pounds up to and including ten thousand (10,000) pounds other than those vehicles listed in
subparagraph (iv) of this paragraph.................... $ 30.00
(vi) On each motor vehicle with a gross weight of more than ten thousand (10,000) pounds other than those vehicles listed in subparagraph (iv) of this paragraph and
on each semitrailer.................................... $60.00.
(b) As used in this subsection the term "light carrier of property" mean any motor vehicle with a gross weight of six thousand (6,000) pounds or less that is designed and constructed for the primary purpose of transporting property on the roads and highways.
(c) Revenue collected from the fee levied under this subsection shall be deposited into the Transportation Infrastructure Repair, Renovation and Maintenance Fund created in Section 4 of this act.
SECTION 3. Section 1 of Chapter 479, Laws of 2015, is amended as follows:
Section 1. (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 bond 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) (i) A special fund, to be designated the "2015 Mississippi Deficient Bridge and State Aid Road Supplemental Fund" is created within the State Treasury. 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.
(ii) Monies deposited into the fund shall be disbursed as follows:
1. Eighteen Million Dollars ($18,000,000.00) shall be utilized by the Department of Transportation to construct a bridge extending the I-20 South Frontage Road, running parallel to Old Highway 27, over the railroad in Vicksburg, Mississippi.
2. Twenty Million Dollars ($20,000,000.00) shall be deposited into the State Aid Road Fund.
3. The remainder shall be utilized, in the discretion of the Mississippi Transportation Commission, to pay the costs of repair, rehabilitation, replacement, construction and/or reconstruction of the bridges on state maintained highways that are on a list of deficient bridges compiled by the Mississippi Department of Transportation as of July 1, 2015. Bridges on the list will be determined based on National Bridge Inspection Standards set by the Federal Highway Administration. In expending the funds authorized in this item 3, the Mississippi Transportation Commission should give preference to bridges within and approaching those counties in this state where legal gaming is being conducted or is authorized.
(b) Amounts deposited into such special fund shall be disbursed to pay the costs of the projects described in paragraph (a) of this subsection. Promptly after the commission has certified, by resolution duly adopted, that the projects described in paragraph (a) of this subsection shall have been completed, abandoned, or cannot be completed in a timely fashion, any amounts remaining in such special fund shall be applied to pay debt service on the bonds issued under this section, in accordance with the proceedings authorizing the issuance of such bonds and as directed by the commission.
(c) The Mississippi Transportation Commission is expressly authorized and empowered to receive and expend any local or other source funds in connection with the expenditure of funds provided for in this subsection. The expenditure of monies deposited into the special fund shall be under the direction of the Mississippi Transportation Commission, and such funds shall be paid by the State Treasurer upon warrants issued by the Department of Finance and Administration, which warrants shall be issued upon requisitions signed by the Executive Director of the Mississippi Department of Transportation, or his designee.
(3) For the purpose of
providing for the payment of the principal of and interest upon bonds issued
under this section, there is created a special bond sinking fund in the State
Treasury. The special bond sinking fund shall consist of the monies deposited
into the fund under Section 75-76-129, Mississippi Code of 1972, and such other
amounts as may be paid into such fund by appropriation or other authorization
by the Legislature. Except as otherwise provided in this section, monies in
the special bond sinking fund shall be used to pay the debt service
requirements of the bonds issued under this section. If the special bond
sinking fund has a balance in excess of the amount needed to pay the next
maximum annual debt service requirement of the bonds issued under this section,
the excess monies may be transferred into the * * * Transportation
Infrastructure Repair, Renovation and Maintenance Fund created in Section 4 of
this act. Unexpended amounts remaining in the special bond sinking 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 special bond sinking
fund shall be deposited into such sinking fund.
(4) (a) The commission, at one time, or from time to time, may declare by resolution the necessity for issuance of revenue bonds of the State of Mississippi to provide funds for all costs incurred or to be incurred for the purposes described in subsection (2) of this section. Upon the adoption of a resolution by the Mississippi Transportation Commission, declaring the necessity for the issuance of any part or all of the revenue bonds authorized by this subsection, the Mississippi Transportation Commission 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 Two Hundred Million Dollars ($200,000,000.00).
(b) Any investment earnings on amounts deposited into the special fund created in subsection (2) of 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.
(5) 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 (20) 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.
(6) 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.
(7) 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.
(8) The commission shall act as 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 may sell such bonds on sealed bids at public sale or may negotiate the sale of the bonds for such price as it may determine to be for the best interest of the State of Mississippi. All interest accruing on such bonds so issued shall be payable semiannually or annually.
If such bonds are sold by sealed bids at public sale, notice of the sale shall be published at least one time, not less than ten (10) days before the date of sale, and shall be so published in one or more newspapers published or having a general circulation in the City of Jackson, Mississippi, selected by the commission.
The 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.
(9) The bonds issued under the provisions of this section shall be revenue bonds of the state, the principal of and interest on which shall be payable solely from and shall be secured by the special bond sinking fund created in subsection (3) of this section. The bonds shall never constitute an indebtedness of the state within the meaning of any state constitutional provision or statutory limitation, and shall never constitute or give rise to a pecuniary liability of the state, or a charge against its general credit or taxing powers, and such fact shall be plainly stated on the face of each such bond. The bonds shall not be considered when computing any limitation of indebtedness of the state. All bonds issued under the authority of this section and all interest coupons applicable thereto shall be construed to be negotiable instruments, despite the fact that they are payable solely from a specified source.
(10) 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 special fund created in subsection (2) of this section. The proceeds of such bonds shall be disbursed solely upon the order of the Mississippi Transportation Commission under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds.
(11) 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.
(12) 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.
(13) 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.
(14) 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.
(15) Bonds issued under the provisions of this section and income therefrom shall be exempt from all taxation in the State of Mississippi.
(16) The proceeds of the bonds issued under this section shall be used solely for the purposes herein provided, including the costs incident to the issuance and sale of such bonds.
(17) 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.
(18) This section shall be deemed to be full and complete authority for the exercise of the powers herein granted, but this section shall not be deemed to repeal or to be in derogation of any existing law of this state.
SECTION 4. There is created in the State Treasury a special fund to be designated as the "Transportation Infrastructure Repair, Renovation and Maintenance Fund." The fund shall consist of money required to be deposited into the fund by Section 1 of this act, Section 27-19-43(4) and any other money the Legislature designates for deposit into the fund. Money in the fund shall not lapse and any interest and investment earnings on amounts in the fund shall be deposited to the credit of the fund. Upon appropriation by the Legislature, money in the fund at the end of each fiscal year shall be allocated as follows:
(a) Seventy-eight and one-half percent (78.5%) shall be deposited into the State Highway Fund to be utilized solely for repair, renovation and rehabilitation of roads, highways and bridges maintained by the Mississippi Department of Transportation.
(b) Seven and one-half percent (7.5%) shall be deposited into the Local System Road Program Fund created in Section 65-18-10.
(c) Five and two-tenths percent (5.2%) shall be deposited into the Local System Bridge Replacement and Rehabilitation Fund created in Section 65-37-13.
(d) Four and two-tenths percent (4.2%) shall be deposited into the State Aid Road Fund.
(e) Three percent (3%) shall be deposited into the Multi-Modal Transportation Improvement Fund created in Section 65-1-705.
(f) Eight-tenths of one percent (.8%) shall be allocated to the Mississippi Development Authority to be utilized for signage to promote tourism.
(g) Five-tenths of one percent (.5%) shall be deposited into the Air Carrier Incentive Program Fund created in Section 7 of this act.
(h) Three-tenths of one percent (.3%) shall be deposited into the Mississippi Highway-Railroad Grade Crossing Safety Account created by Section 57-43-15.
SECTION 5. The following shall be codified as Section 65-18-8, Mississippi Code of 1972:
65-18-8. (1) There is created the Local System Road Program Advisory Committee which shall consist of the following members:
(a) The President of the Mississippi Association of Supervisors, or his or her designee;
(b) The President of the Mississippi Municipal League, or his or her designee;
(c) A professional engineer who with experience in construction of roads and bridges appointed by the Board of Licensure for Professional Engineers and Surveyors for a term of four (4) years;
(d) The Executive Director of the Mississippi Department of Transportation, or his or her designee;
(e) The State Aid Engineer, or his or her designee;
(f) One (1) member appointed by the Governor;
(g) One (1) member appointed by the Lieutenant Governor; and
(h) One (1) member appointed by the Speaker of the House of Representatives.
(2) The terms of members appointed under subsection (1)(f), (g) and (h) shall be concurrent with the term of office of the appointing authority. In the event of a vacancy on the advisory committee, a successor shall be appointed to fill the unexpired term in the same manner as the original appointment. Those members whose terms expire shall continue to serve until their successor is appointed and qualified.
(3) The advisory committee shall elect a chairman and vice chairman at its first meeting, and election of officers shall take place annually thereafter.
(4) The advisory committee shall meet at least quarterly at a time and place determined by the committee.
(5) Members of the committee who are not state officials or state employees shall be compensated at the per diem rate authorized by Section 25-3-69 and shall be reimbursed in accordance with Section 25-3-41 for mileage and actual expenses incurred in the performance of their duties. No committee member may incur per diem, travel or other expenses unless previously authorized by vote, at a meeting of the committee, which action shall be recorded in the official minutes of the meeting.
(6) The committee shall recommend funding priorities in each county to the State Aid Engineer and make recommendations regarding funding of the Local System Road Program to the Legislature.
SECTION 6. The following shall be codified as Section 65-18-10, Mississippi Code of 1972:
65-18-10. (1) There is created in the State Treasury a special fund to be designated as the "Local System Road Program Fund" into which shall be deposited the money designated for deposit in the fund by Section 4 of this act and any other money designated for deposit in the fund by the Legislature. Money in the fund shall not lapse and any interest or investment earnings on amounts in the fund shall be deposited to the credit of the fund.
(2) Money allocated by the State Aid Engineer to a county under this section and the revenue from the ad valorem tax authorized to be levied by this section shall be utilized solely for the Local System Road Program in the county under the direction of the State Aid Engineer. The State Aid Engineer shall allocate the money in the fund to each county in the state in accordance with the following formula:
(i) One-half (1/2) shall be allocated to all counties in equal shares; and
(ii) One-half (1/2) shall be allocated to counties based on the percentage that the total number of rural road miles in a county bears to the total number of rural road miles in all counties in the state.
(3) In order to participate in the Local System Road Program a county shall annually levy a special tax, not to exceed one (1) mill ad valorem tax, upon all taxable property located within the county. The avails of the special levy shall be used exclusively for the Local System Road Program as provided for in this section. The levy shall not be reimbursable under the homestead exemption law.
SECTION 7. (1) The Mississippi Development Authority (MDA) shall establish an air carrier incentive program to match funds expended by airport authorities for incentives approved by MDA intended to attract air carriers and expand air carrier services. Program incentives may include:
(a) Funding for advertising costs associated with the introduction of new flights on unserved routes and/or new airline entrant brands beginning service at the airport; and
(b) Funding of landing fee rebates intended to attract new flights on unserved routes and/or new airline entrant brands to begin service at the airport.
(2) There is created in the State Treasury a special fund to be designated as the "Air Carrier Incentive Program Fund" into which shall be deposited the money designated for deposit in the fund by Section 4 of this act and any other money designated for deposit in the fund by the Legislature. Money in the fund shall not lapse and any interest or investment earnings on amounts in the fund shall be deposited to the credit of the fund. Upon appropriation by the Legislature, MDA shall utilize money in the fund to match funds expended by airport authorities to provide the incentives authorized by this section.
SECTION 8. 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 * * * funds paid into the special fund under this
subsection * * *,
subsection (9) of this section and Section 4 of this act, 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) 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.
(24) 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 9. Section 57-43-15, Mississippi Code of 1972, is amended as follows:
57-43-15. (1) There is established within the Railroad Revitalization Fund a new account to be entitled the Mississippi Highway-Railroad Grade Crossing Safety Account. The account shall be administered by the Mississippi Department of Transportation and shall consist of:
(a) Such monies as are transferred to it on July 1, 2001, from the Mississippi Grade Crossing Closure Account;
(b) Thirty-five
percent (35%) of collections from the locomotive fuel tax imposed under Section
27-59-307 for the previous year; * * *
(c) Monies transferred
to it from the Railroad Revitalization Fund, pursuant to the provisions of
Section 2 of Chapter 497, Laws of 2009 * * *; and
(d) Monies allocated to it from the Transportation Infrastructure Repair, Renovation and Maintenance Fund, pursuant to the provisions of Section 4 of this act.
Unexpended amounts remaining
in the account at the end of a fiscal year shall not lapse into the State
General Fund; and any interest * * * and investment earnings on
amounts in the account shall be deposited to the credit of the account.
(2) The Mississippi Transportation Commission, after consulting with the railroads operating in Mississippi, shall promulgate rules to ensure equitable allocation of the funds described in subsection (1) of this section to projects throughout the state, and shall consider the proportionate number of main line track miles of each railroad and the number of public roadway/railroad grade crossings on each railroad's main line. Expenditure of monies from the Mississippi Highway-Railroad Grade Crossing Safety Account shall be limited to the following purposes:
(a) Financial aid for closure of public roadway/railroad grade crossings;
(b) Realignment of construction costs of roadways being rerouted to facilitate a closure of a public roadway/railroad grade crossing;
(c) Monies to match federal or other funds for a grade separation eliminating an at-grade crossing of a public roadway and railroad;
(d) Installation, maintenance or upgrade of highway-railroad grade crossing signals, at the discretion of the Mississippi Transportation Commission, based upon the Federal Railroad Administration ranking of all Mississippi highway-railroad grade crossings. Not less than ten percent (10%) of the monies necessary to defray the costs of such installations must be federal funds;
(e) Separation of grades of highway/railroad crossings;
(f) Improvement of any grade crossing including the necessary roadway approaches thereto of any railroad across a public road highway;
(g) Construction, reconstruction, repair or replacement of the grade crossing surface structure; and
(h) Installation of an automatic advance warning signal alerting a motorist that a grade crossing is ahead.
(3) The Mississippi Department of Transportation shall consider all requests from the state's diagnostic review of public roadway/railroad grade crossings and from individual railroads for expenditure of funds for the purposes described in subsection (2) of this section, and shall establish uniform criteria and guidelines relating to such crossings and the expenditure of funds.
SECTION 10. Section 65-18-9, Mississippi Code of 1972, is amended as follows:
65-18-9. * * * ( * * *1) The State Aid Engineer shall
allocate annually, according to the formula provided for in Section 65-18-10,
the * * *
funds in the Local System Bridge Replacement and Rehabilitation Program * * * Fund to a county * * * for use in the
construction, reconstruction * * *, paving and maintenance of
local system roads in the county if:
(a) The State Aid Engineer has certified, pursuant to Section 65-37-7, that all the local system bridges within the county have a sufficiency rating of greater than fifty (50) or that all such bridges within the county with a sufficiency rating of fifty (50) or less are currently under contract for replacement or rehabilitation; and
(b) The county has met the requirements of this chapter.
( * * *2) The State Aid Engineer shall
establish specific designs and standards to be followed by such counties in the
construction, reconstruction and paving of local system roads. The specific
designs and standards shall be based upon policies on geometric design of local
rural roads, highways and streets adopted and published by the American
Association of State Highway and Transportation Officials.
SECTION 11. Section 65-18-11, Mississippi Code of 1972, is amended as follows:
65-18-11. (1) In order for
a county to be eligible to utilize its Local System Bridge Replacement and
Rehabilitation Program allocation * * *, a county must meet the following conditions:
(a) The county has levied the ad valorem tax authorized in Section 65-18-10.
( * * *b) The county has employed a county
engineer, together with such other technical assistance as is necessary to
carry out the duties of this chapter, the same as provided under the provisions
of Section 65-9-15, for its state aid road system and, through its official
minutes, has authorized the county engineer to perform the necessary
engineering services connected with the Local System Road Program. The county
engineer shall prepare the necessary plans and designs for all construction
projects, including state aid projects and projects provided under this
chapter. He also shall provide engineering supervision for the construction of
such projects and shall approve all estimate payments made on the projects.
Engineering cost for any project performed under the Local System Road Program
may be paid from any funds allocated to a county under the program; however,
the maximum fee paid to an engineer shall not exceed twelve percent (12%) of
the final construction cost. No such cost shall be reimbursed to the county
before the letting of the project; and
( * * *c) The county has presented a plan for
the construction, reconstruction and paving of a local system road which plan
has been made and approved by the county engineer of the county, showing the
specific road or project to be improved, stating the condition of the existing
roadbed, drainage and bridges and outlining the type of construction or
reconstruction to be made and the designs and specifications therefor,
including the paving of the road and the sources of revenue to be used and the
sources and types of material to be used thereon. The plan shall be presented
to the State Aid Engineer for the initial approval of the beginning of a
project to receive monies.
(2) After the initial
approval of the plan and plans as specified in subsection (1)(b) of this
section has been made by the State Aid Engineer, the county shall be eligible
to receive all funds made available to the county under the Local System Road
Program to be used exclusively for the construction, reconstruction * * *, paving or maintenance of the
local system road. The project may be done either by contract or by using
county equipment and employees. It shall be according to the original plan or
any amendments thereto which have been approved by the State Aid Engineer. The
board may use county equipment and employees if the construction can be
accomplished at a more reasonable cost than can be achieved by contract.
SECTION 12. This act shall take effect and be in force from and after its passage.