MISSISSIPPI LEGISLATURE

2017 Regular Session

To: Transportation; Revenue and Expenditure General Bills

By: Representative Gipson

House Bill 534

AN ACT TO BRING FORWARD SECTIONS 27-65-75, 65-9-1, 65-9-3, 65-9-5,  65-9-7, 65-9-9, 65-9-11, 65-9-13, 65-9-15, 65-9-17, 65-9-19, 65-9-21, 65-9-23, 65-9-25, 65-9-27, 65-9-29, 65-9-30, 65-9-31, 65-9-33, 65-18-1, 65-18-3, 65-18-5, 65-18-7, 65-18-9, 65-18-11, 65-18-13, 65-18-15, 65-18-17, 65-37-1, 65-37-3, 65-37-5, 65-37-7, 65-37-9, 65-37-11, 65-37-13 AND 65-37-15, MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE MISSISSIPPI OFFICE OF STATE AID ROAD CONSTRUCTION, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 27-65-75, Mississippi Code of 1972, is brought forward 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.  Except as otherwise provided in this paragraph (a), 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.  However, in the event the State Auditor issues a certificate of noncompliance pursuant to Section 21-35-31, the Department of Revenue shall withhold ten percent (10%) of the allocations and payments to the municipality that would otherwise be payable to the municipality under this paragraph (a) until such time that the department receives written notice of the cancellation of a certificate of noncompliance from the State Auditor.

     A municipal corporation, for the purpose of distributing the tax under this subsection, shall mean and include all incorporated cities, towns and villages.

     Monies allocated for distribution and credited to a municipal corporation under this paragraph may be pledged as security for a loan if the distribution received by the municipal corporation is otherwise authorized or required by law to be pledged as security for such a loan.

     In any county having a county seat that is not an incorporated municipality, the distribution provided under this subsection shall be made as though the county seat was an incorporated municipality; however, the distribution to the municipality shall be paid to the county treasury in which the municipality is located, and those funds shall be used for road, bridge and street construction or maintenance in the county.

          (b)  On or before August 15, 2006, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities on the campus of a state institution of higher learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocated for distribution to the state institution of higher learning or community or junior college and paid to the state institution of higher learning or community or junior college.

     (2)  On or before September 15, 1987, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, One Million One Hundred Twenty-five Thousand Dollars ($1,125,000.00) shall be allocated for distribution to municipal corporations as defined under subsection (1) of this section in the proportion that the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each such municipality during the preceding fiscal year bears to the total gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in municipalities statewide during the preceding fiscal year.  The Department of Revenue shall require all distributors of gasoline and diesel fuel to report to the department monthly the total number of gallons of gasoline and diesel fuel sold by them to consumers and retailers in each municipality during the preceding month.  The Department of Revenue shall have the authority to promulgate such rules and regulations as is necessary to determine the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each municipality.  In determining the percentage allocation of funds under this subsection for the fiscal year beginning July 1, 1987, and ending June 30, 1988, the Department of Revenue may consider gallons of gasoline and diesel fuel sold for a period of less than one (1) fiscal year.  For the purposes of this subsection, the term "fiscal year" means the fiscal year beginning July 1 of a year.

     (3)  On or before September 15, 1987, and on or before the fifteenth day of each succeeding month, until the date specified in Section 65-39-35, the proceeds derived from contractors' taxes levied under Section 27-65-21 on contracts for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97 shall, except as otherwise provided in Section 31-17-127, be deposited into the State Treasury to the credit of the State Highway Fund to be used to fund that highway program.  The Mississippi Department of Transportation shall provide to the Department of Revenue such information as is necessary to determine the amount of proceeds to be distributed under this subsection.

     (4)  On or before August 15, 1994, and on or before the fifteenth day of each succeeding month through July 15, 1999, from the proceeds of gasoline, diesel fuel or kerosene taxes as provided in Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) shall be deposited in the State Treasury to the credit of a special fund designated as the "State Aid Road Fund," created by Section 65-9-17.  On or before August 15, 1999, and on or before the fifteenth day of each succeeding month, from the total amount of the proceeds of gasoline, diesel fuel or kerosene taxes apportioned by Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an amount equal to twenty-three and one-fourth percent (23-1/4%) of those funds, whichever is the greater amount, shall be deposited in the State Treasury to the credit of the "State Aid Road Fund," created by Section 65-9-17.  Those funds shall be pledged to pay the principal of and interest on state aid road bonds heretofore issued under Sections 19-9-51 through 19-9-77, in lieu of and in substitution for the funds previously allocated to counties under this section.  Those funds may not be pledged for the payment of any state aid road bonds issued after April 1, 1981; however, this prohibition against the pledging of any such funds for the payment of bonds shall not apply to any bonds for which intent to issue those bonds has been published for the first time, as provided by law before March 29, 1981.  From the amount of taxes paid into the special fund under this subsection and subsection (9) of this section, there shall be first deducted and paid the amount necessary to pay the expenses of the Office of State Aid Road Construction, as authorized by the Legislature for all other general and special fund agencies.  The remainder of the fund shall be allocated monthly to the several counties in accordance with the following formula:

          (a)  One-third (1/3) shall be allocated to all counties in equal shares;

          (b)  One-third (1/3) shall be allocated to counties based on the proportion that the total number of rural road miles in a county bears to the total number of rural road miles in all counties of the state; and

          (c)  One-third (1/3) shall be allocated to counties based on the proportion that the rural population of the county bears to the total rural population in all counties of the state, according to the latest federal decennial census.

     For the purposes of this subsection, the term "gasoline, diesel fuel or kerosene taxes" means such taxes as defined in paragraph (f) of Section 27-5-101.

     The amount of funds allocated to any county under this subsection for any fiscal year after fiscal year 1994 shall not be less than the amount allocated to the county for fiscal year 1994.

     Any reference in the general laws of this state or the Mississippi Code of 1972 to Section 27-5-105 shall mean and be construed to refer and apply to subsection (4) of Section 27-65-75.

     (5)  One Million Six Hundred Sixty-six Thousand Six Hundred Sixty-six Dollars ($1,666,666.00) each month shall be paid into the special fund known as the "State Public School Building Fund" created and existing under the provisions of Sections 37-47-1 through 37-47-67.  Those payments into that fund are to be made on the last day of each succeeding month hereafter.

     (6)  An amount each month beginning August 15, 1983, through November 15, 1986, as specified in Section 6 of Chapter 542, Laws of 1983, shall be paid into the special fund known as the Correctional Facilities Construction Fund created in Section 6 of Chapter 542, Laws of 1983.

     (7)  On or before August 15, 1992, and each succeeding month thereafter through July 15, 2000, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited by the department into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35.  On or before August 15, 2000, and each succeeding month thereafter, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35 until such time that the total amount deposited into the fund during a fiscal year equals Forty-two Million Dollars ($42,000,000.00).  Thereafter, the amounts diverted under this subsection (7) during the fiscal year in excess of Forty-two Million Dollars ($42,000,000.00) shall be deposited into the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and shall not be subject to the percentage appropriation requirements set forth in Section 37-61-33.

     (8)  On or before August 15, 1992, and each succeeding month thereafter, nine and seventy-three one-thousandths percent (9.073%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the Education Enhancement Fund created under Section 37-61-33.

     (9)  On or before August 15, 1994, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, Two Hundred Fifty Thousand Dollars ($250,000.00) shall be paid into the State Aid Road Fund.

     (10)  On or before August 15, 1994, and each succeeding month thereafter through August 15, 1995, from the revenue collected under this chapter during the preceding month, Two Million Dollars ($2,000,000.00) shall be deposited into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

     (11)  Notwithstanding any other provision of this section to the contrary, on or before February 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(2) and the corresponding levy in Section 27-65-23 on the rental or lease of private carriers of passengers and light carriers of property as defined in Section 27-51-101 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

     (12)  Notwithstanding any other provision of this section to the contrary, on or before August 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1) on retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101 and the corresponding levy in Section 27-65-23 on the rental or lease of these vehicles, shall be deposited, after diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

     (13)  On or before July 15, 1994, and on or before the fifteenth day of each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-22 that is derived from activities held on the Mississippi State Fairgrounds Complex shall be paid into a special fund that is created in the State Treasury and shall be expended upon legislative appropriation solely to defray the costs of repairs and renovation at the Trade Mart and Coliseum.

     (14)  On or before August 15, 1998, and each succeeding month thereafter through July 15, 2005, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39.  On or before August 15, 2007, and each succeeding month thereafter through July 15, 2010, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39 until all debts or other obligations incurred by the Certified Cotton Growers Organization under the Mississippi Boll Weevil Management Act before January 1, 2007, are satisfied in full.  On or before August 15, 2010, and each succeeding month thereafter through July 15, 2011, fifty percent (50%) of that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited into the special fund created under Section 69-37-39 until such time that the total amount deposited into the fund during a fiscal year equals One Million Dollars ($1,000,000.00).  On or before August 15, 2011, and each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited into the special fund created under Section 69-37-39 until such time that the total amount deposited into the fund during a fiscal year equals One Million Dollars ($1,000,000.00).

     (15)  Notwithstanding any other provision of this section to the contrary, on or before September 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-19(1)(d)(i)2, and 27-65-19(1)(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)  (a)  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.

          (b)  (i)  Except as otherwise provided in subparagraph (ii) of this paragraph, 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.

              (ii)  Subject to the provisions of Sections 27-65-51 and 27-65-53, if any funds have been erroneously disbursed to a municipality under subsection (1) of this section for a period of three (3) years or more, the maximum amount that may be recovered or withheld from the municipality is the total amount of funds erroneously disbursed for a period of three (3) years beginning with the date of the first erroneous disbursement.  However, if during such period, a municipality provides written notice to the Department of Revenue indicating the erroneous disbursement of funds, then the maximum amount that may be recovered or withheld from the municipality is the total amount of funds erroneously disbursed for a period of one (1) year beginning with the date of the first erroneous disbursement.

     SECTION 2.  Section 65-9-1, Mississippi Code of 1972, is brought forward as follows:

     65-9-1.  The board of supervisors of each county, now having full jurisdiction over all roads, ferries, and bridges in its respective county not maintained as state highways, is hereby fully authorized and empowered to construct and maintain the same (including designated state highways not yet taken over by the highway department); and all such roads under the jurisdiction of the several boards of supervisors are hereby designated, defined, and declared to be either (a) "feeder" or "local farm roads" or (b) "state aid roads."

     State aid roads are hereby defined as that group or class of roads composing the main collector and distributor routes feeding into local trade areas or into the state highway network, which are not designated as state highways by the Legislature, and particularly those essential to the conservation and development of natural resources, of economic and social value, and encouraging desirable land utilization, having in addition the following characteristics, to wit:  roads (including bridges and ferries) which

          (a)  Connect communities within the individual counties and with those of adjoining counties and/or which also connect with the state highway system to form a complete network of secondary or collector routes.

          (b)  Carry heavy volumes of traffic serving most of the following interests of the counties, to wit:

              (1)  Agricultural

              (2)  Business

              (3)  Educational

              (4)  Industrial

     The State Aid Engineer shall see that the criteria imposed herein are explicitly followed in the designation and in the construction of the state aid roads in each county.  The State Aid Engineer shall promulgate regulations pursuant to the Administrative Procedures Act to require the development of a network of intercounty roads and to provide for a review process within the state aid division for the designation of said state aid roads.  Such regulations shall also establish standards for state aid route designation.  The State Aid Engineer is hereby authorized and directed to withhold funds from such counties until the state aid roads therein are designated and constructed according to the characteristics set forth herein.

     All other roads under the jurisdiction of the several boards of supervisors are hereby declared to be "local farm roads" and not affected in anywise by this chapter.

     State aid roads in the several counties shall be eligible for state aid in the manner and under the terms and conditions hereinafter set out.  Local system roads (as defined in Section 65-18-3) in the several counties shall be eligible for state aid in the manner and under the terms and conditions set out in the Local System Road Program established in Sections 65-18-1 through 65-18-17.  State aid, by way of funds to be expended on state aid roads and local system roads (as defined in Section 65-18-3), shall consist of any sum or sums provided by the Legislature to supplement funds furnished by the several counties for the purpose of constructing, improving, widening, straightening, surfacing, or reconstructing roads on the state aid system or for the purpose of the construction, reconstruction and paving of roads on the Local System Road Program, and shall be available to the several counties in such proportion as may be fixed and determined by law.

     SECTION 3.  Section 65-9-3, Mississippi Code of 1972, is brought forward as follows:

     65-9-3.  (1)  There is hereby set up for designation by cooperative action of the state and counties a state aid system of roads (including bridges and ferries), as classified and defined in Section 65-9-1, which system shall be designated by the several boards of supervisors in their respective counties, with the consent and approval of the State Aid Engineer, to a total mileage not in excess of twenty-five thousand eight hundred fifty-seven and four-hundredths (25,857.04) miles not including any municipal streets, except that a state aid route may be extended into a municipality in order to make a convenient and orderly connection with the nearest paved or surfaced street or highway capable of carrying the traffic originating on or destined for such state aid route and thereby making a systematic connection with the highway and street systems of the state and its political subdivisions.  Such system may be modified or revised from time to time by mutual agreement between the said boards of supervisors and the State Aid Engineer.  Mileage on the state aid system shall be allocated to the several counties of the state in the following proportions:

          (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.

     (2)  If the number of miles allocated to any county in accordance with the formula specified in subsection (1) of this section for any fiscal year after fiscal year 1994 is less than the number of miles allocated to that county for fiscal year 1994,  then each county in that situation shall be allocated an additional number of miles that, when added to the number of miles allocated to the county in accordance with the formula specified in subsection (1) of this section, will be equal to the number of miles allocated to the county for fiscal year 1994.

     SECTION 4.  Section 65-9-5, Mississippi Code of 1972, is brought forward as follows:

     65-9-5.  There is hereby created within the Mississippi Department of Transportation an office to be called the Office of State Aid Road Construction, for the purpose and charged with the duty of administering this chapter.  The office shall be administered by a state aid engineer and such assistant engineers or other employees as may be provided in this chapter.  Whenever the term "Division of State Aid Road Construction" appears in the laws of this state, it shall mean the Office of State Aid Road Construction.

     All duties, powers and responsibilities for the administration and management of the Office of State Aid Road Construction shall be vested in and performed exclusively by the State Aid Engineer.

     All of the powers of the State Aid Engineer herein provided are with reference to the expenditures of state aid funds and are not intended to interfere in any way with the constitutional jurisdiction of any board of supervisors.  In order to obtain state aid funds, however, and whenever any state aid funds are being used, the provisions of this chapter shall have full force and effect.

     The State Aid Engineer shall adopt a complete, detailed and itemized budget for the Office of State Aid Road Construction, as may be required by the Legislative Budget Office, separate and apart from the budget of the Mississippi Department of Transportation.  Copies of the detailed budget shall be filed with the Governor, the Legislative Budget Office and the State Fiscal Management Board on or before April 30 of each year, and shall cover anticipated construction and administrative expenditures for the ensuing fiscal year.  No expenditures shall be made in excess of the budget amount approved and appropriated by the Legislature.

     SECTION 5.  Section 65-9-7, Mississippi Code of 1972, is brought forward as follows:

     65-9-7.  The Division of State Aid Road Construction of the Mississippi State Highway Department, is hereby authorized and empowered to own and operate seven passenger automobiles, the same to be purchased, owned, and operated in strict accordance with the provisions of Sections 25-1-77 through 25-1-93, Mississippi Code of 1972.

     SECTION 6.  Section 65-9-9, Mississippi Code of 1972, is brought forward as follows:

     65-9-9.  The State Aid Engineer shall be appointed by the Governor for a term of two (2) years, subject to removal pursuant to Section 25-9-101 et seq. by the Governor at any time; provided, however, upon the expiration of the term of the State Aid Engineer serving on July 1, 1985, the State Aid Engineer shall be appointed by the Governor for a term of four (4) years.  The State Aid Engineer shall be a registered engineer with at least eight (8) years' experience as a county road or highway engineer and a thorough knowledge of rural road problems.  He shall be paid a salary equal to that paid assistant chief engineers of the Mississippi Department of Transportation as established by the department's personnel and merit system, plus travel expenses actually incurred by him in the discharge of his duties; and he shall, each month, make a detailed report to the Governor of such expenses.  He shall be authorized to employ assistant state aid engineers, together with such other engineers, employees, and other assistants as may be necessary to carry out the terms of this chapter, all of whom may be removed at any time by the State Aid Engineer.  The compensation of all such engineers, employees, and assistants shall be comparable to the salaries of like employees of the Mississippi Department of Transportation.

     The State Aid Engineer, before entering upon the discharge of his duties, shall give bond in the sum of Twenty-five Thousand Dollars ($25,000.00) in some surety company authorized to do business in this state, which bond shall be conditioned for the faithful performance of his duties; and likewise each assistant state aid engineer shall give bond in the sum of Ten Thousand Dollars ($10,000.00) conditioned for the faithful performance of his duties.  The State Aid Engineer is hereby authorized to require other assistants who are charged with responsible duties to likewise give bond in amounts not to exceed Ten Thousand Dollars ($10,000.00) each, conditioned for the faithful performance of their duties.

     The salaries of the State Aid Engineer and his assistants and of all other employees of the Office of State Aid Road Construction, and all other expenses incurred by the Office of State Aid Road Construction in carrying out the provisions of this chapter, including the premiums of bonds of the State Aid Engineer, assistant state aid engineers, and other assistants, shall be paid from the State Aid Road Fund in the State Treasury prior to allocation to the several counties, by requisition drawn by the State Aid Engineer directed to the Department of Finance and Administration, which will issue its warrant to the State Treasurer in the sum and for the purpose stated in the requisition.  The State Aid Engineer shall, each month, make a detailed report to the Governor of all expenditures so made.

     SECTION 7.  Section 65-9-11, Mississippi Code of 1972, is brought forward as follows:

     65-9-11.  It shall be the duty of the State Aid Engineer to advise with the boards of supervisors of the several counties on all matters of policy, use of funds, priority of construction, uniform standards for state aid roads, safeguards in accounting methods, and other related matters and to cooperate with the several boards of supervisors on all matters connected with the laying out and construction of the state aid system of county roads.  The State Aid Engineer shall promulgate, as soon as practicable, such uniform and reasonable rules and regulations as he may deem necessary to effectuate a proper designation of state aid roads to be constructed in each county, the methods for determining priority of construction, the making of surveys, and the preparation of plans and specifications for the construction of state aid roads, and to provide a uniform system of accounting in the expenditure of state aid road funds.  The State Aid Engineer, after conferring with the Chief Engineer of the State Highway Department, shall prepare and promulgate uniform design standards and specifications for the construction of the state aid road system, which said uniform design standards and specifications may be modified or amended from time to time as the State Aid Engineer may deem necessary.  Such standards may be in one or more classifications, according to types and kinds of roads.  After such uniform design standards and specifications have been prepared and approved by the State Aid Engineer, the boards of supervisors shall apply the same to all new construction of state aid roads in their counties and, unless not practicable and feasible, to reconstruction of old roads on the state aid road system; but no deviation from such uniform standards and specifications shall be made without the approval of the State Aid Engineer. 

     It shall also be the duty of the State Aid Engineer to advise and cooperate with the boards of supervisors in the selection and designation of the county roads which are to be made a part of the state aid road system, as provided in this chapter, and to approve or disapprove the selection of roads to be made a part of the state aid road system by the boards of supervisors. 

     The State Aid Engineer shall finally approve or disapprove all contracts advertised and let by any board of supervisors for the construction or reconstruction of state aid roads and he shall approve or disapprove any or all force account estimates for such construction.  If disapproved, he shall give a notice to said county of his disapproval and state each reason, and he shall give the said county time to cure the defects, or such parts thereof as may be necessary to cure, so that the county may receive its share of state aid. 

     All proposals covering work to be performed by any county with its own forces on state aid roads and all force account estimates submitted for approval shall be on forms prepared for the purpose by the State Aid Engineer.  Such forms shall be in such detail and based upon such cost accounting rules and regulations as may be prescribed from time to time by the State Aid Engineer, but in no event shall the purchase of any road machinery or other general equipment out of the state aid road funds be allowed or permitted by such rules and regulations.  Force account estimates may include a reasonable rental for machinery or equipment, and the reasonableness of the rental so estimated and as actually paid shall be subject at all times to modification, revision, approval, or disapproval of the State Aid Engineer and under the cost accounting rules and regulations promulgated by him. 

     The State Aid Engineer and such assistants as he may designate shall supervise and inspect all state aid road projects as the work progresses.  Upon final completion of any such project, the State Aid Engineer shall cause a final inspection to be made of such project for the purpose of determining whether such project has been completed satisfactorily in accordance with the plans and specifications; and if satisfactorily completed, the State Aid Engineer shall approve payment of the final estimate on such project.  No progress or final estimate, either on a contract or a force account project, shall be paid unless approved in such manner by the State Aid Engineer, and on all such contracts or force account projects a percentage of not less than two and one-half percent (2-1/2%) nor more than ten percent (10%) of each estimate thereon paid shall be retained until final acceptance of such project; provided, however, the amount retained by the prime contractor from each payment due the subcontractor shall not exceed the percentage withheld from the prime contractor.

     SECTION 8.  Section 65-9-13, Mississippi Code of 1972, is brought forward as follows:

     65-9-13.  Any county shall be entitled to receive state aid and to expend state aid monies in conjunction with monies furnished by said county on state aid roads in such county on projects approved for construction in such county, provided:

          (a)  The state aid system in such county has been designated and approved as herein provided. 

          (b)  The county has employed a county engineer to act for and on behalf of the county as a whole, who shall be a registered professional engineer, and such other competent technical assistants as may from time to time be deemed necessary by the board of supervisors of said county. 

          (c)  An annual program shall have been filed by the county engineer with the division of state aid road construction and approved by the State Aid Engineer, and in accordance with the uniform design standards and specifications set up by the State Aid Engineer; such program may be modified or revised in whole or in part by the State Aid Engineer, with the agreement of the county involved. 

          (d)  Such county has complied with all rules and regulations promulgated by the State Aid Engineer. 

     SECTION 9.  Section 65-9-15, Mississippi Code of 1972, is brought forward as follows:

     65-9-15.  Nothing herein shall prevent any county from employing, by agreement with not more than four (4) other counties, the same engineer to act as county engineer for each and all of said counties so agreeing.  Each county engineer shall give bond, with sufficient surety, to be payable, conditioned and approved as provided by law, in a penalty not less than Fifty Thousand Dollars ($50,000.00).  If a county engineer is engineer for two (2) or more counties, the same bond shall serve as said engineer's bond in and for each county, respectively, and the premium on said bond and the salary and expenses of such engineer and assistants shall be divided between and paid by the counties for whom he is so employed in such proportions as may be agreed upon by said counties.  In the event any county is unable to obtain the services of a competent engineer, the Transportation Commission may loan such county an engineer, if available, for a specified period of time, by granting such engineer a leave of absence for such period without loss of any benefits accruing to him by reason of length of service; and such time so spent on such leave of absence shall be counted as part of such engineer's length of service with the Department of Transportation.  The salary of such engineer so loaned shall be paid by the county or the counties to whom he is loaned.

     The salary and other expenses, including the premium on all bonds, of the county engineer and his assistants shall be paid by the county or counties employing such county engineer and assistants.  Any salary limitations or ceiling heretofore placed by law on the salary of a county engineer is hereby removed as to county engineers employed under the terms of this chapter.  In lieu of salary and other expenses, any county may employ a registered civil engineer on a fee basis for furnishing complete engineering services on state aid projects.  Engineering costs, including the salaries or fees of the county engineer, incurred on state aid projects may be paid from state aid funds allocated to said county or counties, with the methods of payments to be approved by the State Aid Engineer under regulations promulgated by the State Aid Engineer; however, unless the project is being partially funded with federal funds, no such costs shall be paid to the county from state aid funds prior to the approval for advertisement for bids for a project by the State Aid Engineer.  If the project is being partially funded with federal funds, the State Aid Engineer may approve payment of a portion of such costs from state aid funds prior to the approval for advertisement for bids.

     SECTION 10.  Section 65-9-17, Mississippi Code of 1972, is brought forward as follows:

     65-9-17.  (1)  When any county shall have met the requirements of this chapter and shall have become eligible for state aid, the State Aid Engineer, as soon as practicable, shall notify such county in writing of such eligibility and that its proportionate part of any state funds allocated to it for state aid may be utilized for construction in the manner provided by law, and such notice shall also be given in writing to the Department of Finance and Administration and to the State Treasurer.

     (2)  State aid funds shall be allocated to each county for use on state aid system roads or roads on the Local System Road Program in accordance with the provisions of Section 27-65-75.

     (3)  State aid funds may be credited to a county in advance of the normal accrual to finance certain state aid improvements, subject to the approval of the State Aid Engineer and subject further to the following limitations:

          (a)  That the maximum amount of state aid funds that may be advanced to any county shall not exceed ninety percent (90%) of the state aid funds estimated to accrue to such county during the remainder of the term of office of the board of supervisors of such county.

          (b)  That no advance credit of funds will be made to any county when the unobligated balance in the State Aid Road Fund is less than One Million Dollars ($1,000,000.00).

          (c)  That such advance crediting of funds be effected by the State Aid Engineer at the time of the approval of the plans and specifications for the proposed improvements.

     It is the intent of this provision to utilize to the fullest practicable extent the balance of state aid funds on hand at all times.

     (4)  State aid funds shall be available to such county to the following extent and in the following manner:

          (a)  On state aid projects, other than those on or off the federal aid secondary system to be partially financed with federal funds, state aid funds credited to such county in the State Aid Road Fund shall be available to cover the cost of such project.  Upon the awarding of a contract for such state aid project, the board of supervisors of any county will, by an official order of the board, authorize the State Aid Engineer to set up the project fund for such project from that county's state aid fund in the State Treasury.  The amount of the project fund will cover the estimated cost of the project, including the contractor's payments and any other costs authorized under this chapter to be paid from state aid funds.  Withdrawals from the project fund will be made by requisitions prepared by the State Aid Engineer, based on estimates and other supporting statements and documents prepared or approved by the county engineer, such requisitions, accompanied by such estimates and statements, to be directed to the Department of Finance and Administration, which will issue warrants in payment thereof.  Requisitions may be drawn to cover the final cost of the project accepted by the boards of supervisors of the counties affected and the State Aid Engineer, even though such cost exceeds the aforesaid estimated project fund.  Whenever, in the opinion of the State Aid Engineer, it should appear that any such estimate or statement of account has been improperly allowed or that any road construction project is not proceeding in accordance with the plans, specifications and standards set up therefor, then, in such event, due notice in writing shall be given the board of supervisors of such county and the contractor on such project, if any, stating the reason why such account should not have been allowed or why such project is not progressing satisfactorily; and if, within thirty (30) days from the date of such notice in writing, such error or default is not corrected to the satisfaction of the State Aid Engineer, all state aid funds theretofore allocated to such eligible county shall be immediately withdrawn and notice given the Department of Finance and Administration and the State Treasurer that such county has become ineligible therefor.  Such county shall remain ineligible until it again becomes eligible by satisfying the State Aid Engineer as to its eligibility.

          (b)  On state aid projects on the federal aid secondary system which are to be partially financed with federal funds, state aid funds credited to such county in the State Aid Road Fund shall be available to cover the sponsor's share of the cost of such project.  At the same time, the State Treasurer, on order from the board of supervisors, shall transfer an amount up to one hundred percent (100%) of such cost from the credit of such county in the State Aid Road Fund to the credit of such county in the State Highway Fund, earmarked for such project.

          (c)  State aid road funds credited to a county in the State Aid Road Fund shall also be available to cover the sponsor's cost of any other project of such county which is partially financed with federal funds available through federal "safer off-system" road funds and/or other federal road funds allocated to the counties as provided for in accordance with Section 65-9-29(2).  On order from the board of supervisors of such county, the State Treasurer shall transfer an amount up to one hundred percent (100%) of such cost from the credit of such county in the State Aid Road Fund to the credit of such county in the State Highway Fund, earmarked for such project.

          (d)  Up to one-third (1/3) of state aid road funds credited to a county in the State Aid Road Fund may be available to match federal bridge replacement monies or other federal funds, or both, to construct, replace, inspect or post bridges and to conduct pavement management surveys on county roads which are not on the state aid system.  To implement such projects, the State Treasurer shall, as requested in an order from the board of supervisors of the county, make transfers out of the credit of such county in the State Aid Road Fund.

          (e)  Up to twenty-five percent (25%) of the state aid road funds credited to a county in the State Aid Road Fund may be available for projects authorized under the Local System Road Program.  Withdrawals from the fund for the Local System Road Program will be made by requisitions prepared by the State Aid Engineer, based on estimates and other supporting statements and documents prepared or approved by the county engineer; such requisitions, accompanied by such estimates and statements, to be directed to the Department of Finance and Administration, which will issue warrants in payment thereof.  Requisitions may be drawn to cover the final cost of the local system road project accepted by the boards of supervisors of the counties affected and the State Aid Engineer even though such cost exceeds the aforesaid estimated project fund.  Whenever, in the opinion of the State Aid Engineer, it should appear that any such estimate or statement of account has been improperly allowed or that any road construction project is not proceeding in accordance with the plans, specifications and standards set up therefor, then, in such event, due notice in writing shall be given the board of supervisors of such county and the contractor on such project, if any, stating the reason why such account should not have been allowed or why such project is not progressing satisfactorily; and if, within thirty (30) days from the date of such notice in writing, such error or default is not corrected to the satisfaction of the State Aid Engineer, all state aid funds theretofore allocated to such eligible county shall be immediately withdrawn and notice given the Department of Finance and Administration and the State Treasurer that such county has become ineligible therefor.  Such county shall remain ineligible until it again becomes eligible by satisfying the State Aid Engineer as to its eligibility.

     (5)  The State Treasurer is hereby authorized to continue to receive and deposit all funds from the federal government made available by it, either by existing law or by any law which may be passed hereafter, to the credit of the State Highway Fund, and the Treasurer shall notify the commission of the amounts so received.

     All accounts against the above-mentioned funds shall be certified to by the Executive Director of the Mississippi Department of Transportation, who shall request the Department of Finance and Administration to issue its warrant on the State Treasurer for the amount of the accounts; and the Treasurer shall pay same if sufficient funds are available, all in the manner prescribed herein or as may be required by law.

     (6)  The board of supervisors of each county is hereby authorized and empowered to pay funds into the State Treasury in the manner above set out, and to use and expend such funds for the purposes set out in this chapter.  For the purpose of providing such funds, the board of supervisors is hereby authorized and empowered to use and expend any county road and bridge funds, including revenue received from any gasoline taxes paid to such county, or any funds available in the General Fund, or to issue road and bridge bonds of such county in any lawful amount in the manner and method and subject to the restrictions, limitations and conditions, and payable from the same sources of revenue, now provided by law.

     SECTION 11.  Section 65-9-19, Mississippi Code of 1972, is brought forward as follows:

     65-9-19.  Contracts for the construction of state aid road projects shall be advertised and let by the board of supervisors of any county desiring so to do, in the manner now required by law but subject to the approval of the State Aid Engineer; however, during the last six months of the boards of supervisors' terms of office, no contracts for state aid projects shall be awarded unless construction programs embracing such projects shall have been adopted by the boards and approved by the State Aid Engineer in writing prior to July 1 of said year.  Before advertising for bids, detailed plans and specifications covering the work proposed to be done shall be prepared and filed in the chancery clerk's office of the interested county and in the office of the State Aid Engineer; and copies shall be subject to inspection by any party during all office hours, and shall be made available to all prospective bidders upon such reasonable terms and conditions as may be required by the State Aid Engineer.  All plans and specifications shall be initially prepared by the county engineer, subject to the approval or disapproval of the State Aid Engineer.  All rights of way necessary for such projects shall be acquired and paid for by the boards of supervisors in the manner now provided by law for the acquisition of rights of way, including gift, purchase, deed, dedication, and eminent domain; however, the cost of such rights of way shall not be considered to be a part of the cost of any project within the meaning of Section 65-9-17.  The acts of the boards of supervisors in heretofore acquiring rights of way for such projects, and all rights of way heretofore acquired for such projects are hereby ratified, confirmed, and validated.

     SECTION 12.  Section 65-9-21, Mississippi Code of 1972, is brought forward as follows:

     65-9-21.  The board of supervisors is further authorized and empowered to paint center line safety stripes on all state aid roads heretofore or hereafter constructed in the several counties, by the use of its own crews and facilities or by public contract.  The striping shall be applied of the materials and in the manner as the State Aid Engineer shall require.  The board, subject to the approval of the State Aid Engineer, may include such striping in the same contract for the completion of the state aid road itself, or by a separately advertised and awarded contract.  Funds necessary to carry out this section shall be as provided in the construction of the state aid road itself.  The State Aid Engineer is authorized to promulgate and adopt reasonable regulations he may deem necessary and requisite in carrying out the provisions of this section.

     SECTION 13.  Section 65-9-23, Mississippi Code of 1972, is brought forward as follows:

     65-9-23.  Such accounting controls and safeguards, including those already provided in this chapter, may be required of each board of supervisors as, in the discretion of the State Aid Engineer, may be deemed necessary; but general and uniform rules and regulations thereasto shall be first promulgated by said State Aid Engineer, only with the advice and approval of the State Auditor. 

     SECTION 14.  Section 65-9-25, Mississippi Code of 1972, is brought forward as follows:

     65-9-25.  It shall be the duty of the several boards of supervisors to properly maintain all state aid roads in their respective counties after construction of any such roads with state aid monies.  It shall be the duty of the State Aid Engineer and his assistants to make annual maintenance inspections of completed projects, and such other periodic maintenance inspections as the State Aid Engineer shall deem necessary.  If essential maintenance is not properly and regularly carried on, in the opinion of the State Aid Engineer, then notice thereof shall be given in writing to the board in default, and if such maintenance is not done and continued within sixty (60) days from date of such notice, then, and in such event, the State Aid Engineer may proceed to have done the necessary maintenance and repair work on such road and charge the same to any funds in the State Aid Road Fund in the State Treasury allocated to such county.  If such failure to maintain continues, then such county shall be no longer eligible for state aid until proper maintenance is resumed by it, and notice of such withdrawal of state aid shall be duly given the State Treasurer; however, such ineligibility shall not affect payment from the State Aid Road Fund of progress or final estimates on contracts awarded prior to notice of such ineligibility, nor shall that ineligibility in any way affect the payment of principal and interest on state aid road bonds issued by any such county.

     State aid roads which have been hard surfaced through the use of state aid funds or federal aid funds shall be eligible for state aid funds to provide one or more seal courses, as required. State aid roads in which the grading and drainage structures were constructed under state aid projects and which have been subsequently hard surfaced by the county through the use of county funds under the supervision of the county engineer shall likewise be eligible for state aid funds to provide one or more seal courses as required, provided that the hard surfacing and underlying base were constructed in accordance with the then prevailing state aid standards and specifications.  The county shall furnish the State Aid Engineer with sufficient engineering data, including borings and tests, if necessary, to substantiate the required thickness and quality of the base and surfacing.  The correction of base defects and pavement breaks may be made part of the plans and contract documents for each sealing project.

     State aid roads which were constructed in accordance with the then prevailing state aid standards and specifications shall be eligible for state aid funds for maintenance, repair and reconstruction, subject to the prior written approval of such work by the State Aid Engineer and subject to the work being completed in accordance with the prior written approval.

     SECTION 15.  Section 65-9-27, Mississippi Code of 1972, is brought forward as follows:

     65-9-27.  Whenever any county is ineligible for state aid under the provisions of this chapter for a continuous period of four (4) years, then such county shall forfeit and no longer be entitled to any part of the funds in the State Aid Road Fund theretofore allocated to it; and the balance of such funds so theretofore allocated to it shall be reallocated pro rata between all other eligible counties in the same relative proportions as those specified in any law providing state aid road funds.

     SECTION 16.  Section 65-9-29, Mississippi Code of 1972, is brought forward as follows:

     65-9-29.  (1)  Federal aid secondary funds allocated to Mississippi and to be expended on the federal aid secondary system roads shall be expended as follows:

          (a)  Effective only upon the passage of an act of the Legislature providing state aid funds, federal aid secondary funds allocated to Mississippi and to be expended on the federal aid secondary system shall be divided between the Mississippi Department of Transportation and the several counties, so that fifty percent (50%) will be matched by the Mississippi Department of Transportation and expended on the federal aid secondary system roads on the state highway system, and fifty percent (50%) matched by the counties with state aid funds and expended on the federal aid secondary roads of the state aid road system.

          (b)  Such division will be made upon allocation by the Administrator of the Federal Highway Administration after the Department of Transportation provides for the matching of the percent of such allotment as covered by federal act and available for financing in part the Mississippi Department of Transportation's Division of Highway Planning.  The expenditure of all federal aid secondary funds shall be through and under the Department of Transportation, subject to and in accordance with all rules and regulations and applicable laws of the federal government.

          (c)  The amount of funds allocated to each county for use on State Aid System roads shall be apportioned among the counties of this state by the Mississippi Transportation Commission subject to and in accordance with applicable federal law, rules and regulations, and limited to such counties as recommended by the State Aid Engineer.  The Mississippi Transportation Commission is authorized to finance from its own funds the preliminary surveys, engineering and plans for all work involving funds expended on federal aid secondary projects on the state aid road system, and the rights-of-way required for state aid system roads constructed with federal aid secondary funds shall be provided by the county receiving such aid from its funds other than state aid funds.  The Mississippi Transportation Commission shall program federal aid secondary funds made available to the counties under this act on such projects and limited to such counties as recommended by the State Aid Engineer.

     (2)  Federal "safer off-system" funds, and/or any other available federal road funds, except the federal aid secondary funds hereinabove provided for separately, allocated to Mississippi and to be expended on county roads, but not on the designated state highway system, shall be expended as follows:

          (a)  Federal "safer off-system" funds and/or any such other available federal road funds shall be matched with available state aid funds and expended on such county roads.

          (b)  The expenditure of such federal "safer off-system" funds and all such other available federal road funds shall be through and under the Mississippi Department of Transportation, subject to, and in accordance with, all rules and regulations and applicable laws of the federal government.

          (c)  The amount of such federal "safer off-system" funds and/or all such other available federal road funds allocated to each county for use on such county roads shall be apportioned among the counties of this state by the Mississippi Transportation Commission in accordance with the formula in the manner provided in Section 65-9-3, Mississippi Code of 1972.  The Mississippi Transportation Commission will program such federal "safer off-system" funds and all such other available federal road funds made available to the counties on such projects and limited to such counties as recommended by the State Aid Engineer.

     (3)  Federal aid off-system highway funds allocated to Mississippi, (except federal aid secondary funds and federal "safer off-system" funds provided for separately in subsections (1) and (2) of this section), including federal bridge replacement funds and other special grants made available for expenditure of county roads, shall be expended as follows:

          (a)  Federal aid off-system highway funds expended on state aid roads shall be matched with available state aid funds and/or other available local funds, or as otherwise provided in Section 65-1-70, Mississippi Code of 1972.

          (b)  Federal aid off-system highway funds available for expenditure on roads not on the state aid system and not eligible for inclusion on the state aid system shall be matched with available local funds, or as otherwise provided in Section 65-9-17 or Section 65-1-70, Mississippi Code of 1972.

          (c)  The expenditure of all federal off-system highway funds on county roads shall be programmed by the Mississippi Transportation Commission, subject to and in accordance with applicable federal law, rules and regulations, and limited to such county projects as recommended by the State Aid Engineer.  The State Aid Engineer is authorized to assign state aid personnel to administer off-system construction projects and other special federal aid program requirements in the same manner and under the same provisions and conditions as other projects authorized under this chapter.

     SECTION 17.  Section 65-9-30, Mississippi Code of 1972, is brought forward as follows:

     65-9-30.  (1)  The State Aid Engineer shall maintain an accurate record of all federal aid secondary funds, federal "safer off-system" funds, and all other available federal road funds allocated to the counties in accordance with the percentages set out in Section 65-9-3.  He shall likewise maintain an accurate account of all state aid funds apportioned to the counties in accordance with the percentages and provisions set out in Section 27-65-75. 

     (2)  The State Aid Engineer is hereby authorized to utilize state aid funds, and federal aid secondary funds allocated to the counties as provided for in accordance with Section 65-9-29, and federal "safer off-system" funds, and/or any other available federal road funds allocated to Mississippi and to be expended on county roads, and allocated to the counties as provided for in accordance with Section 65-9-29, in such amounts as he deems necessary for an orderly and effective programming of all funds available to the counties, including an interchange of one (1) type of funds for another type of funds when necessary; provided, however, that each county shall receive, not less than annually, its pro rata share of the combined funds so allocated; and further provided that the authority of the county boards of supervisors to otherwise adopt construction programs is in no way circumvented.

     SECTION 18.  Section 65-9-31, Mississippi Code of 1972, is brought forward as follows:

     65-9-31.  All work done under the provisions of Sections 19-9-51 through 19-9-77, Mississippi Code of 1972, shall be done by contractors who qualify under the provisions of Sections 31-3-1 through 31-3-23, Mississippi Code of 1972, except with the consent of the State Aid Road Engineer.

     SECTION 19.  Section 65-9-33, Mississippi Code of 1972, is brought forward as follows:

     65-9-33.  In addition to any authority granted to the Division of State Aid Road Construction in Chapter 9, Title 65, Mississippi Code of 1972, and notwithstanding any general prohibition contained therein with respect to the administration by the division of certain federal funds on designated state highways, the division is authorized and empowered to administer a project utilizing available federal funds to reconstruct that portion of designated Mississippi Highway 182 in Lowndes County, Mississippi, that spans the Tombigbee River on Federal Aid Urban Route Number 9539, jurisdiction for the maintenance of which is, on March 12, 1990, vested in Lowndes County pursuant to an agreement executed by the county, the State Highway Commission and the City of Columbus.

     SECTION 20.  Section 65-18-1, Mississippi Code of 1972, is brought forward as follows:

     65-18-1.  This chapter shall be known and may be cited as the "Local System Road Program."

     SECTION 21.  Section 65-18-3, Mississippi Code of 1972, is brought forward as follows:

     65-18-3.  For the purposes of this chapter, the term "local system road" means a road that is included on the county road system as designated under Section 65-7-4 that (a) is functionally classified as a local rural road in accordance with policies on geometric design of highways and streets adopted and published by the American Association of State Highway and Transportation Officials; (b) provides access to the state aid system, the federal aid system or the designated state highway system; and (c) has an average daily traffic count of four hundred (400) vehicles or less.  The term "local system road" includes all drainage related structures except bridges that are included on the National Bridge Inspection Inventory maintained by the Office of State Aid Road Construction.  The term "local system road" does not include a road or highway on the designated state highway system or on the state aid road system.

     SECTION 22.  Section 65-18-5, Mississippi Code of 1972, is brought forward as follows:

     65-18-5.  (1)  There is established a Local System Road Program which shall be administered by the State Aid Engineer for the purpose of assisting the counties of this state in the construction, reconstruction and paving of local system roads.

     (2)  Routes on which projects are performed under this chapter are not eligible for inclusion on the state aid system except in accordance with the provisions of Section 65-9-1 et seq.

     SECTION 23.  Section 65-18-7, Mississippi Code of 1972, is brought forward as follows:

     65-18-7.  The Local System Road Program shall be administered by the State Aid Engineer.  In administering the program, the State Aid Engineer shall have the following powers and duties:

          (a)  To supervise the use of all funds made available for the purposes of this chapter for use on local system roads in the State of Mississippi;

          (b)  To allocate to each county that county's share of all monies made available under the provisions of this chapter but only when the county has complied with the provisions of this chapter and only when the county is eligible for the allocation of monies under the Local System Road Program;

          (c)  To keep and compile records of all expenditures on local system roads to which money is disbursed under the provisions of this chapter, which records must be kept separate and apart from other state aid records;

          (d)  To approve the construction of local system roads, including roadbeds, grades and drainage, before authorizing the release of funds under this chapter;

          (e)  To establish such rules and regulations as the State Aid Engineer determines as necessary to implement the provisions of the Local System Road Program; and

          (f)  To report to the Legislature, no later than January 1 of each year, on the Local System Road Program.  Such report shall include what projects were approved and constructed, the number of miles constructed or improved and the cost per mile for such construction and improvement.

     SECTION 24.  Section 65-18-9, Mississippi Code of 1972, is brought forward as follows:

     65-18-9.  (1)  The State Aid Engineer shall allocate annually the amount of the state aid road allocation of a county that is requested by such county for use in the construction, reconstruction and paving of local system roads in the county if the county has met the requirements of this chapter; provided, however, that the State Aid Engineer shall not allocate more than twenty-five percent (25%) of the annual state aid road allocation of a county for such purposes.

     (2)  The State Aid Engineer shall allocate annually the amount of the Local System Bridge Replacement and Rehabilitation Program allocation of a county that is requested by such county for use in the construction, reconstruction and paving 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.

     (3)  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 25.  Section 65-18-11, Mississippi Code of 1972, is brought forward 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 or any of its state aid road funds for the Local System Road Program, a county must meet the following conditions:

          (a)  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

          (b)  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 or paving 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 26.  Section 65-18-13, Mississippi Code of 1972, is brought forward as follows:

     65-18-13.  All rights-of-way and adjustments for utilities necessary for Local System Road Program projects must be acquired or performed by the boards of supervisors in the manner provided by law for the acquisition of rights-of-way, including gift, purchase, deed, dedication and eminent domain; however, no part of the cost of such rights-of-way may be paid from Local System Road Program funds.

     SECTION 27.  Section 65-18-15, Mississippi Code of 1972, is brought forward as follows:

     65-18-15.  Contracts for the construction of local system road projects must be advertised and let by the board of supervisors of the county in the manner required by law.  Before advertising for bids, plans and specifications covering the proposed work shall be prepared by the county engineer and filed in the chancery clerk's office of the county.  Copies of the plans and specifications shall be subject to inspection during regular office hours and shall be made available to all prospective bidders upon such terms and conditions as may be required by the board and its county engineer.

     SECTION 28.  Section 65-18-17, Mississippi Code of 1972, is brought forward as follows:

     65-18-17.  It shall be the duty of the several boards of supervisors to properly maintain all local system roads in their respective counties after construction of any such roads under this chapter.  It shall be the duty of the State Aid Engineer and his assistants to make annual maintenance inspections of completed projects, and such other periodic maintenance inspections as the State Aid Engineer shall deem necessary.  If essential maintenance is not properly and regularly carried on, in the opinion of the State Aid Engineer, then notice thereof shall be given in writing to the board in default, and if such maintenance is not done and continued within sixty (60) days from date of such notice, then, and in such event, the State Aid Engineer may proceed to have done the necessary maintenance and repair work on such road and charge the same to any funds allocated to such county under the provisions of the Local System Road Program.  If such failure to maintain continues, then such county shall be no longer eligible for monies under the Local System Road Program until proper maintenance is resumed by it, and notice of such withdrawal of local system road funds shall be duly given the State Treasurer; however, such ineligibility shall not affect payment under the Local System Road Program of progress or final estimates on contracts awarded before notice of such ineligibility.

     Local system roads that have been hard surfaced through the use of local system road funds shall be eligible for local system road funds to provide one or more seal courses, as required.  Local system roads in which the grading and drainage structures were constructed under the Local System Road Program and which have been subsequently hard surfaced by the county through the use of county funds under the supervision of the county engineer shall likewise be eligible for local system road funds to provide one or more seal courses as required, provided that the hard surfacing and underlying base were constructed in accordance with the then prevailing local system road standards and specifications.  The county shall furnish the State Aid Engineer with sufficient engineering data, including borings and tests, if necessary, to substantiate the required thickness and quality of the base and surfacing.  The correction of base defects and pavement breaks may be made part of the plans and contract documents for each sealing project.

     Local system roads that were constructed in accordance with the then prevailing local system road standards and specifications shall be eligible for local system road funds for maintenance, repair and reconstruction, subject to the prior written approval of such work by the State Aid Engineer and subject to the work being completed in accordance with the prior written approval.

     SECTION 29.  Section 65-37-1, Mississippi Code of 1972, is brought forward as follows:

     65-37-1.  (1)  There is established a local system bridge replacement and rehabilitation program to be administered by the State Aid Engineer for the purpose of assisting counties and municipalities in the replacement and rehabilitation of certain bridges located on local road systems in the counties and in incorporated municipalities within the counties.  In order to be eligible under this program, a bridge must be eligible for replacement or rehabilitation as determined by the National Bridge Inspection Standards sufficiency rating and must be included on the latest annual official bridge inventory maintained by the Office of State Aid Road Construction, excluding bridge inventories on the State Aid Road System, the municipal urban system or the rural major collector system. 

     (2)  In the replacement or rehabilitation of bridges pursuant to this chapter, consideration may be given to utilizing timber products on some projects, provided that such projects using timber products will be comparable in cost to, and can be constructed to meet current standards for, similar projects using concrete and steel. 

     (3)  The provisions of this chapter shall not be construed to permit routes on which projects are performed under this chapter to be eligible for inclusion on the state aid system except in accordance with the provisions of Sections 65-9-1 et seq.

     SECTION 30.  Section 65-37-3, Mississippi Code of 1972, is brought forward as follows:

     65-37-3.  (1)  For the purposes of this section, the following terms shall have the meanings ascribed to them in this subsection:

          (a)  "Deficient bridge" means a bridge that is eligible for replacement or rehabilitation as determined by the National Bridge Inspection Standards sufficiency rating and that is included on the latest annual official bridge inventory prepared by the Office of State Aid Road Construction as a bridge having a sufficiency rating of fifty (50) or less, excluding bridges on the state aid road system, the municipal urban system and the rural major collector system. 

          (b)  "Local system road miles" means all highways, roads and streets within a county, including highways, roads and streets within incorporated municipalities of the county, that are not included on the designated state highway system. 

     (2)  From the funds on deposit and credited to the Local System Bridge Replacement and Rehabilitation Fund created in Section 65-37-13, each county shall be allocated a percentage of such funds as they become available, which percentage shall be based:

          (a)  One-half (1/2) on the proportion that the total number of deficient bridges in the county bears to the total number of deficient bridges in all counties of the state; and

          (b)  One-half (1/2) on the proportion that the total number of local system road miles in the county bears to the total number of local system road miles in all counties of the state.

     SECTION 31.  Section 65-37-5, Mississippi Code of 1972, is brought forward as follows:

     65-37-5.  In administering the provisions of this chapter, the State Aid Engineer shall have the following powers and duties:

          (a)  To supervise the use of all funds made available under this chapter for local bridge replacement and rehabilitation projects on local road systems;

          (b)  To review and certify all projects for which funds are authorized to be made available under this chapter for local bridge replacement and rehabilitation projects on local road systems;

          (c)  To requisition monies in the Local System Bridge Replacement and Rehabilitation Fund and pay and distribute those monies on a project-by-project basis in accordance with the allocation formula established by Section 65-37-3;

          (d)  To insure that each four-year plan submitted by a county to the State Aid Engineer and the funds allocated to a county under this chapter provide for an equitable distribution of projects and funds among the county and incorporated municipalities located therein based upon the number and costs of deficient bridges in both the county and the municipalities;

          (e)  To establish and require specific designs and standards to be followed by the counties in replacing and rehabilitating bridges under this chapter, which designs and standards shall equal or exceed the design and standards prescribed for bridges on the State Aid Road System;

          (f)  To maintain an accurate record of all local bridge replacement and rehabilitation funds allocated to counties and of the number of bridges replaced or rehabilitated, their location and the costs for each project.  Such records shall be kept separate from other records of the Office of State Aid Road Construction;

          (g)  To periodically notify the counties of bridges eligible for replacement and rehabilitation under the provisions of this chapter;

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

          (i)  To file annually with the Legislature a report detailing how monies in the Local System Bridge Replacement and Rehabilitation Fund were spent during the preceding fiscal year in each county, including in the incorporated municipalities of each county, the number of projects approved and constructed, the length of bridges completed and the cost per foot of each bridge constructed. 

     SECTION 32.  Section 65-37-7, Mississippi Code of 1972, is brought forward as follows:

     65-37-7.  (1)  In order for a county to be eligible for the expenditure of funds under the provisions of Sections 65-37-1 through 65-37-15, the board of supervisors of the county shall meet the following conditions:

          (a)  On or before January 1, 1995, and on or before January 1 of each year thereafter, the board of supervisors shall present to the State Aid Engineer on a form to be prepared by the State Aid Engineer, a four-year plan of bridge replacement and rehabilitation for the county.  The plan shall identify the project or projects and shall contain a detailed plan prepared and approved by the engineer for the county.  The plan shall specify the condition of the existing bridges included in the project, the drainage requirements, the type of replacement or rehabilitation to be made and the design and specifications therefor.  Four-year plans may be modified each year or more often as necessary provided that the modifications are submitted to the State Aid Engineer.

          (b)  The county shall agree to employ a qualified engineer and such other technical experts as may be necessary to perform all engineering services required for the projects.  The engineer shall be required to inspect the construction of the projects and to approve all estimate payments made on the projects.

          (c)  The county and municipalities shall agree to construct, at their own expense, the base and surface of all approaches providing necessary connections to each bridge project within their respective jurisdictions, including the base and surface for culvert projects whenever fill material is placed as part of the contract.

          (d)  The county and municipalities shall agree to acquire all rights-of-way and relocate or make adjustments to public utilities for each bridge project within their respective jurisdictions as may be necessary in the manner provided by law for the acquisition of rights-of-way and the uniform policy for accommodation of utility facilities within the rights-of-way of state aid roads as adopted by the State Aid Engineer under authority of Section 65-9-1 et seq.  Rights-of-way may be acquired by gift, purchase, deed, dedication or eminent domain.  The only costs that may be paid from funds provided under Sections 65-37-1 through 65-37-15 for right-of-way acquisition shall be the actual cost paid by the county to the landowner for the land acquired as certified to the State Aid Engineer by the attorney for the board of supervisors.  The only cost that may be paid from funds provided under Sections 65-37-1 through 65-37-15 for utility adjustments shall be the actual cost paid by the county for utility adjustments pursuant to contract let by the county as certified to the State Aid Engineer by order of the board of supervisors.

     (2)  A county shall not be eligible for the expenditure of monies allocated to it under Sections 65-37-1 through 65-37-15 and the State Aid Engineer shall not certify the use or expenditure of such monies on any bridge that has a sufficiency rating of greater than fifty (50), as determined by National Bridge Inspection standards, unless the State Aid Engineer certifies that all bridges on the local road system within the county for which funds may be made available under Sections 65-37-1 through 65-37-15 have a sufficiency rating of greater than fifty (50) or that all such bridges in the county with a sufficiency rating of less than fifty (50) are currently under contract for replacement or rehabilitation.  When the State Aid Engineer certifies that all such bridges of a 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, then that county shall be eligible for the expenditure of funds allocated to it under Sections 65-37-1 through 65-37-15 for:

          (a)  The maintenance and replacement of other drainage related structures in accordance with designs and standards prescribed for such projects by the Office of State Aid Road Construction;

          (b)  The Local System Road Program established pursuant to Sections 65-18-1 through 65-18-17; and

          (c)  The matching of federal funds for expenditure on state aid roads and bridge replacement in accordance with Section 65-9-29.

     (3)  (a)  Except as otherwise provided in paragraph (d) of this subsection (3), when a county has failed to expend the monies allocated to it under the Local System Bridge Replacement and Rehabilitation Program, as described in Sections 65-37-1 through 65-37-15, for an uninterrupted period of two (2) successive fiscal years, the county shall forfeit and no longer be entitled to the outstanding cumulative balance on hand of the monies that were allocated to it under the program before that period of time. 

          (b)  The county is eligible to receive funds allocated to it in fiscal years occurring after that period of time that caused a forfeiture under the provisions of paragraph (a) of this subsection (3), unless it so forfeits monies again under that provision.

          (c)  Monies forfeited each fiscal year under the provisions of this subsection (3) shall be reallocated annually among only those counties that are determined by the State Aid Engineer to have Local System Bridge Replacement and Rehabilitation Program projects that are ready for construction but are not being undertaken due to lack of funds.

          (d)  Before a forfeiture of funds may occur under the provisions of paragraph (a) of this subsection (3), the State Aid Engineer shall give written notice to the board of supervisors of the county at least ninety (90) days before the forfeiture, and for good cause shown, he may allow the county an additional twelve (12) months to expend the funds subject to the forfeiture.

     SECTION 33.  Section 65-37-9, Mississippi Code of 1972, is brought forward as follows:

     65-37-9.  Engineering costs for any project performed under Sections 65-37-1 through 65-37-15, including the salaries or fees of the engineer, may be paid from the Local Bridge Replacement Rehabilitation Fund allocations to a county; however, the maximum fee paid to an engineer from the fund shall not exceed twelve percent (12%) of the final construction cost, with the methods of payment to be approved by the State Aid Engineer under regulations promulgated by the State Aid Engineer.  No such costs shall be paid to an engineer before the letting of the project.

     SECTION 34.  Section 65-37-11, Mississippi Code of 1972, is brought forward as follows:

     65-37-11.  (1)  The board of supervisors of each county and the governing authorities of each municipality shall be responsible for properly maintaining all bridges replaced or repaired in their respective jurisdictions under the provisions of Sections 65-37-1 through 65-37-15.

     (2)  The State Aid Engineer and his assistants shall make annual maintenance inspections of completed bridge projects and such other periodic inspections as the State Aid Engineer deems necessary.  If at any time the State Aid Engineer is of the opinion that a county or municipality has not provided proper maintenance as required by subsection (l) of this section, he shall give written notice thereof to the board of supervisors of the county or the governing authorities of the municipality of default and direct such maintenance as may be necessary to be performed.  If within sixty (60) days of the receipt of such notice the board of supervisors or governing authorities have not performed such maintenance as may be necessary, then the county or municipality shall not thereafter be eligible to participate in the Local System Bridge Replacement and Rehabilitation Program.

     (3)  Whenever any county fails to be eligible for the expenditure of monies allocated to it under the provisions of Sections 65-37-1 through 65-37-15 for a continuous period of two (2) years because it has failed to properly maintain bridges under the Local System Bridge Replacement and Rehabilitation Program, then the county shall forfeit and no longer be entitled to any part of the monies in the Local System Bridge Replacement and Rehabilitation Fund theretofore allocated to it.  The balance of the monies theretofore allocated to it shall be reallocated pro rata among all other eligible counties in accordance with the formula established in Section 65-37-3.

     SECTION 35.  Section 65-37-13, Mississippi Code of 1972, is brought forward as follows:

     65-37-13.  (1)  There is created in the State Treasury a special fund to be designated as the "Local System Bridge Replacement and Rehabilitation Fund."  The fund shall consist of monies that the Legislature appropriates under subsection (2) of this section, the proceeds of bonds issued under Section 10 of Chapter 557, Laws of 2009, and any other monies that the Legislature may designate for deposit into the fund.  Monies in the fund may be expended upon legislative appropriation in accordance with the provisions of Sections 65-37-1 through 65-37-15.

     (2)  (a)  During each regular legislative session held in calendar years 1995, 1996, 1997 and 1998, if the official General Fund revenue estimate for the succeeding fiscal year for which appropriations are being made reflects a growth in General Fund revenues of three percent (3%) or more for that succeeding fiscal year, then the Legislature shall appropriate Twenty-five Million Dollars ($25,000,000.00) from the State General Fund for deposit into the Local System Bridge Replacement and Rehabilitation Fund.

          (b)  During the regular legislative session held in calendar year 1999, if the official General Fund revenue estimate for the succeeding fiscal year for which appropriations are being made reflects a growth in General Fund revenues of two percent (2%) or more for the succeeding fiscal year, then the Legislature shall appropriate Ten Million Dollars ($10,000,000.00) from the State General Fund for deposit into the Local System Bridge Replacement and Rehabilitation Fund.

          (c)  Except as otherwise provided in this paragraph (c), during each regular legislative session held in calendar years 2001 through 2017, if the official General Fund revenue estimate for the succeeding fiscal year for which appropriations are being made reflects a growth in General Fund revenues of two percent (2%) or more for the succeeding fiscal year, then the Legislature shall appropriate Twenty Million Dollars ($20,000,000.00) from the State General Fund for deposit into the Local System Bridge Replacement and Rehabilitation Fund.  However, during the regular legislative sessions held in calendar years 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2014, 2015 and 2016 the Legislature shall not be required to appropriate funds for deposit into the Local System Bridge Replacement and Rehabilitation Fund.

     (3)  Monies that are deposited into the fund under the provisions of this section may be expended upon requisition therefor by the State Aid Engineer in accordance with the provisions of Sections 65-37-1 through 65-37-15.  The Office of State Aid Road Construction shall be entitled to reimbursement from monies in the fund, upon requisitions therefor by the State Aid Engineer, for the actual expenses incurred by the office in administering the provisions of the Local System Bridge Replacement and Rehabilitation Program.  Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund.

     (4)  Monies in the Local System Bridge Replacement and Rehabilitation Fund shall be allocated and become available for distribution to counties in accordance with the formula prescribed in Section 65-37-3 beginning January 1, 1995, on a project-by-project basis.  Monies in the Local System Bridge Replacement and Rehabilitation Fund may not be used or expended for any purpose except as authorized under Sections 65-37-1 through 65-37-15.

     (5)  Monies in the Local System Bridge Replacement and Rehabilitation Fund may be credited to a county in advance of the normal accrual to finance certain projects, subject to the approval of the State Aid Engineer and subject further to the following limitations:

          (a)  That the maximum amount of such monies that may be advanced to any county shall not exceed ninety percent (90%) of the funds estimated to accrue to such county during the remainder of the term of office of the board of supervisors of such county;

          (b)  That no advance credit of funds will be made to any county when the unobligated balance in the Local System Bridge Replacement and Rehabilitation Fund is less than One Million Dollars ($1,000,000.00); and

          (c)  That such advance crediting of funds be effected by the State Aid Engineer at the time of the approval of the plans and specifications for the proposed projects.

     It is the intent of this provision to utilize to the fullest practicable extent the balance of monies in the Local System Bridge Replacement and Rehabilitation Fund on hand at all times.

     SECTION 36.  Section 65-37-15, Mississippi Code of 1972, is brought forward as follows:

     65-37-15.  Notwithstanding any other provisions of this chapter, when all deficient bridges of a county which have a sufficiency rating of less than fifty (50) have been replaced or are under contract for replacement or rehabilitation, then monies in the Local System Bridge Replacement and Rehabilitation Fund created under Section 65-37-13, that are allocated to a particular county may be expended for the purpose of paying the principal, interest and debt service on any bonds, notes or obligations issued or incurred by that county before the effective date of this chapter for the purpose of replacing or rehabilitating any bridge or drainage-related structure on any highway, road or street under the jurisdiction of that county, upon presentation to the State Aid Engineer of a resolution duly adopted and entered on the minutes of the board of supervisors of such county requesting such expenditure and reciting in the resolution such information as may be necessary for the State Aid Engineer to determine that the county is eligible for expenditure of funds under the provisions of this section.

     SECTION 37.  This act shall take effect and be in force from and after July 1, 2017.