MISSISSIPPI LEGISLATURE
2017 Regular Session
To: Public Property
By: Representatives Turner, Sykes
AN ACT TO AMEND SECTION 47-5-64, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE DEPARTMENT OF CORRECTIONS, WITH THE CONCURRENCE OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION, TO LEASE PENITENTIARY LAND FOR AGRICULTURAL PURPOSES; TO PROVIDE THAT SUCH LEASES, INCLUDING RENEWALS, SHALL BE FOR NOT LESS THAN ONE YEAR BUT NOT MORE THAN THREE YEARS; TO AMEND SECTION 47-5-66, MISSISSIPPI CODE OF 1972, TO REQUIRE THE DEPARTMENT OF CORRECTIONS TO ADVERTISE THE LEASING OF THE LAND FOR TEN WORKING DAYS INSTEAD OF SEVEN DAYS; TO REQUIRE THAT CERTAIN ADVERTISING BE PUBLISHED IN THE MISSISSIPPI MARKET BULLETIN; TO REQUIRE THE DEPARTMENT OF CORRECTIONS TO COMPILE A BIDDERS LIST THAT CONTAINS NAMES OF BUSINESSES THAT MAY BE INTERESTED IN BIDDING ON SUCH LEASES AND TO REQUIRE NOTICES BE DIRECTLY SENT TO THOSE BUSINESSES REGARDING THE LEASES; TO INCREASE THE FEE-IN-LIEU OF AD VALOREM TAXES FROM $9.00 TO $13.00 PER ACRE; TO AMEND SECTION 49-5-13, MISSISSIPPI CODE OF 1972, TO REQUIRE THE DEPARTMENT OF WILDLIFE, FISHERIES AND PARKS TO ADVERTISE THE LEASING OF LAND FOR TEN WORKING DAYS INSTEAD OF SEVEN DAYS; TO REQUIRE CERTAIN ADVERTISING BE PUBLISHED IN THE MISSISSIPPI MARKET BULLETIN; TO REQUIRE THE DEPARTMENT OF WILDLIFE, FISHERIES AND PARKS TO COMPILE A BIDDERS LIST THAT CONTAINS NAMES OF BUSINESSES THAT MAY BE INTERESTED IN BIDDING ON SUCH LEASES AND TO REQUIRE NOTICES BE DIRECTLY SENT TO THOSE BUSINESSES REGARDING THE LEASES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 47-5-64, Mississippi Code of 1972, is amended as follows:
47-5-64. (1) The commissioner is hereby directed to determine the number of acres and location of land under the department's jurisdiction that are needed for security purposes, for Prison Agricultural Enterprises and for nonagricultural purposes. The commissioner shall designate and reserve such additional land for agricultural or nonagricultural enterprise projects of the department, as he deems necessary. The commissioner shall then recommend to the Department of Finance and Administration the number of acres of department land that should be leased to private entities and the desired term of the leases.
(2) The Department of Corrections,
subject to the concurrence of the Department of Finance and Administration,
is authorized to lease for agricultural purposes that Penitentiary land so
recommended for not less than * * * (one) (1) nor more than * * * three (3) years including
any renewals, with the approval of the Public Procurement Review Board.
(3) The Department of Corrections,
subject to the concurrence of the Department of Finance and Administration,
with the approval of the Governor * * * and the Secretary of State * * *,
is authorized to lease Penitentiary land for power generation projects or other
commercial or industrial projects at the same time that it leases the land as
prescribed in subsection (2) of this section. The Department of
Corrections, subject to the concurrence of the Department of Finance and
Administration is authorized to negotiate all aspects of leases or related
agreements executed under this subsection consistent with the following:
(a) The period of the lease term combined with the term of renewal shall not exceed forty (40) years.
(b) Any lease or renewal lease shall:
(i) Provide for periodic rent adjustments throughout the term of the lease; and
(ii) Require the lessee to provide a decommissioning and restoration bond or other security securing the lessee's obligation to remove all aboveground and underground facilities to a depth of at least three (3) feet underground and to restore the surface to a condition similar to its condition before the commencement of the lease.
(c) Any lease or renewal lease may provide for any combination of the following: base rent, bonuses, percentage of income payments, royalty payments or other terms and conditions that the Department of Finance and Administration deems necessary to maintain a fair and equitable return to the state and to protect the leased land throughout the term of the lease or renewal lease.
(d) Oil, gas and mineral rights in the leased land shall be reserved to the State of Mississippi.
(e) This subsection does not authorize the sale or transfer of title to any state lands.
* * *
( * * *f) Any monies derived from leasing
lands under this subsection shall be deposited to the Prison Agricultural
Enterprise Fund as provided in Section 47-5-66.
SECTION 2. Section 47-5-66, Mississippi Code of 1972, is amended as follows:
47-5-66. (1) Except as
provided in Section 47-5-64(3), it shall be the duty of the Department of * * * Corrections, * * * subject to the approval of the
Public Procurement Review Board, to lease lands at public contract upon the
submission of two (2) or more sealed bids to the Department of * * * Corrections
after having advertised the land for rent in newspapers of general circulation
published in Jackson, Mississippi; Memphis, Tennessee; the county in which the
land is located; and contiguous counties each for a period of not less
than two (2) successive weeks and in at least two (2) issues of the
Mississippi Market Bulletin. The * * * last
publication shall be made not * * * less than * * * ten (10) working days before * * * the date bids are to be
received. In addition to such advertisement, the Department of Corrections
shall compile and maintain a list of the names of businesses that may be
interested in competing for such leases and send notices directly to those
businesses. Businesses that fail to respond to four (4) consecutive bid
invitations may be removed from the applicable bidders list after notice to the
bidder. During the bidding period, the Department of Corrections shall schedule
and provide access to the land to be leased to prospective bidders for
inspection. The Department of * * *
Corrections may reject any and all bids. If all bids on a tract or
parcel of land are rejected, the Department of Corrections, subject to the
concurrence of the Department of Finance and Administration may then
advertise for new bids on that tract or parcel of land. Successful bidders
shall take possession of their leaseholds at the time authorized by the
Department of * * * Corrections. However, rent shall be due
no later than the day upon which the lessee shall assume possession of the
leasehold, and shall be due on the anniversary date for each following year of
the lease. The Department of * * * Corrections
may provide in any lease that rent shall be paid in full in advance or paid in
installments, as may be necessary or appropriate. In addition, the Department
of * * * Corrections may accept, and the lease may
provide for, assignments of federal, state or other agricultural support
payments, growing crops or the proceeds from the sale thereof, promissory
notes, or any other good and valuable consideration offered by any lessee to
meet the rent requirements of the lease. If a promissory note is offered by a
lessee, it shall be secured by a first lien on the crop of the lessee, or the
proceeds from the sale thereof. The lien shall be filed pursuant to Article 9
of the Uniform Commercial Code and Section 1324 of the Food Security Act of
1985, as enacted or amended. If the note is not paid at maturity, it shall
bear interest at the rate provided for judgments and decrees in Section 75-17-7
from its maturity date until the note is paid. The note shall provide for the
payment of all costs of collection and reasonable attorney's fees if default is
made in the payment of the note. The payment of rent by promissory note or any
means other than cash in advance shall be subject to the approval of the * * * Department of
Corrections.
(2) There is created a special fund to be designated as the "Prison Agricultural Enterprises Fund" and to be used for the purpose of conducting, operating and managing the agricultural and nonagricultural enterprises of the department. Any monies derived from the leasing of Penitentiary lands, from the sales of timber as provided in Section 47-5-56, from the prison's agricultural enterprises or earmarked for the Prison Industries Fund shall be deposited to the special fund. However, a fee-in-lieu of ad valorem taxes, including taxes levied for school purposes equal to fifteen percent (15%) of the monies derived from the leasing of Penitentiary lands under Section 47-5-64(3) shall be deposited to a special fund by the Department of Corrections to be sent to the Sunflower County Consolidated School District to be distributed annually on a student pro rata basis to the public schools located in Sunflower County by the Department of Finance and Administration.
(3) All profits derived from prison industries shall be placed in a special fund in the State Treasury to be known as the "Prison Industries Fund," to be appropriated each year by the Legislature to the nonprofit corporation, which is required to be organized under the provisions of Section 47-5-535, for the purpose of operating and managing the prison industries.
(4) The state shall have the rights and remedies for the security and collection of the rents given by law to landlords.
(5) Lands leased for
agricultural purposes under Section 47-5-64(2) shall be subject to a fee-in-lieu
of ad valorem taxes, including taxes levied for school purposes. The fee-in-lieu
shall be * * * Thirteen Dollars ($13.00) per acre. Upon the
execution of the agricultural leases to private entities as authorized by
Section 47-5-64(2), the Department of * * * Corrections
shall collect the in lieu fee and shall forward the fees to the tax collector
in which the land is located. The tax collector shall disburse the fees to the
appropriate county or municipal governing authority on a pro rata basis. The
sum apportioned to a school district shall not be less than the school
district's pro rata share based upon the proportion that the millage imposed
for the school district by the appropriate levying authority bears to the
millage imposed by the levying authority for all other county or municipal
purposes. Any funds obtained by the corporation as a result of sale of goods
and services manufactured and provided by it shall be accounted for separate
and apart from any funds received by the corporation through appropriation from
the State Legislature. All nonappropriated funds generated by the corporation
shall not be subject to appropriation by the State Legislature.
(6) Any land leased, as provided under Section 47-5-64(2), shall not be leased for an amount less than would be received if such land were to be leased under any federal loan program. In addition, all leases shall be subject to the final approval of the Public Procurement Review Board before such leases are to become effective.
SECTION 3. Section 49-5-13, Mississippi Code of 1972, is amended as follows:
49-5-13. (1) The commission may adopt rules and regulations regulating public hunting and fishing in any wildlife conservation management projects or wildlife conservation hunting and fishing refuges constructed under this chapter, and may prescribe and collect fees for the privilege of hunting and fishing in such projects and shall have general authority to operate such wildlife conservation management areas or refuges.
(2) The commission may adopt such rules and regulations that may be necessary for the management and control of such wildlife conservation management areas or refuges.
(3) The Department of Wildlife, Fisheries and Parks, subject to the concurrence of the Department of Finance and Administration may lease any lands other than woodlands owned by the state within wildlife conservation management areas as long as such lands are not within the boundaries of the used portions of such areas and so long as such lands are leased as provided for in subsections (4) and (5) of this section. The rental from any such lease is to be paid to the commission and expended as hereinafter provided.
(4) The commission shall
recommend to the Department of Finance and Administration the number of acres
of land within wildlife conservation management areas which should be leased to
private entities. The Department of Wildlife, Fisheries and Parks, subject
to the concurrence of the Department of Finance and Administration shall
have the authority to lease for agricultural purposes that land so recommended
for not less than one (1) nor more than * * * three (3) years. The
Department * * * Wildlife, Fisheries and Parks shall lease
the lands for cash rent only. The Department of * * * Wildlife,
Fisheries and Parks shall reserve and exclude from any such lands the
hunting rights on the lands at all times after the crops are harvested and
until the lands are again planted.
(5) It shall be the duty of
the Department of * * * Wildlife, Fisheries and Parks, subject
to the approval of the Public Procurement Review Board to lease such lands
at public contract upon the submission of two (2) or more sealed bids to the
Department of * * * Wildlife, Fisheries and Parks after having
advertised such land for rent in a newspaper of general circulation published
in the county in which the land is located, or if no newspaper be published in
said county, then in a newspaper having a general circulation therein, each
for a period of not less than two (2) successive weeks and in at least two
(2) issues of the Mississippi Market Bulletin. The * * * last
publication shall be made not * * * less than * * * ten (10) working days * * * before the date bids
are to be received. In addition to such advertisement, the Department
of Wildlife, Fisheries and Parks shall compile and maintain a list of the names
of businesses that may be interested in competing for such leases and send
notices directly to those businesses. Businesses that fail to respond to four
(4) consecutive bid invitations may be removed from the applicable bidders list
after notice to the bidder. During the bidding period, the Department of
Wildlife, Fisheries and Parks shall schedule and provide access to the land to be
leased to prospective bidders for inspection. The Department of * * * Wildlife,
Fisheries and Parks shall have the authority to reject any and all bids.
If all bids on a tract or parcel of land are rejected, the Department of Wildlife,
Fisheries and Parks, subject to the concurrence of the Department of
Finance and Administration may then advertise for new bids on that tract or
parcel of land. Successful bidders shall take possession of their leaseholds
at such time authorized by the Department of * * * Wildlife,
Fisheries and Parks. Provided, however, rent shall be due no later than
the day upon which the lessee shall assume possession of the leasehold, and
shall be due on the anniversary date for each following year of the lease. The
Department of * * * Wildlife, Fisheries and Parks shall have
the rights and remedies for the security and collection of such rents given by
law to landlords. Upon the execution of the leases as authorized by this
section, the leased land shall be liable to be taxed as other lands are taxed
during the continuance of the lease, but in case of sale thereon for taxes,
only the title of the leaseholder or his heirs or assigns shall pass by the
sale.
SECTION 4. This act shall take effect and be in force from and after July 1, 2017.