Senate Bill 2339

AN ACT ENTITLED "THE MISSISSIPPI BETTER BUSINESS CLOSURE-RELOCATION ACT OF 2020" TO DISCOURAGE NEW OR CURRENT EMPLOYERS FROM CLOSING A BUSINESS AND RELOCATING TO ANOTHER JURISDICTION WITHOUT FULFILLING THEIR OBLIGATIONS AFTER RECEIVING ANY GOVERNMENTAL SUPPORT OR BENEFITS FROM THE STATE OF MISSISSIPPI; TO REQUIRE AN EMPLOYER THAT INTENDS TO RELOCATE A BUSINESS OR OPERATING FACILITY TO NOTIFY THE MISSISSIPPI DEPARTMENT OF REVENUE AND TO PROVIDE A CIVIL PENALTY FOR NONCOMPLIANCE; TO DIRECT THE DEPARTMENT OF REVENUE TO DISTRIBUTE THE RELOCATION LIST TO AFFECTED STATE AGENCIES; TO PROVIDE THAT ANY SUCH EMPLOYER IN THE RELOCATION LIST SHALL BE INELIGIBLE FOR STATE GRANTS, STATE GUARANTEED LOANS OR STATE TAX BENEFITS FOR FIVE YEARS WITH CERTAIN EXCEPTIONS; TO AMEND SECTIONS 31-7-15 AND 31-7-47, MISSISSIPPI CODE OF 1972, TO CONFORM COMMODITY AND PUBLIC CONSTRUCTION PREFERENCE PROVISIONS IN CONFORMITY TO THIS ACT; AND FOR RELATED PURPOSES.

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

SECTION 1. Short title. This act may be cited as "The Mississippi Better Business Closure-Relocation Act of 2020."

SECTION 2. Definitions. As used in this act:

(a) The term "employer" means any organization or enterprising entity engaged in commercial industrial or professional activities employing:

(i) Fifty (50) or more employees, excluding part-time employees; or

(ii) Fifty (50) or more employees who in the aggregate work at least one thousand five hundred (1,500) hours per week (exclusive of hours of overtime).

(b) The term "agency" means a state executive agency.

(c) The term "part-time employee' means an employee who is employed for an average of fewer than twenty (20) hours per week or who has been employed for fewer than six (6) of the twelve (12) months preceding the date on which notice is required.

(d) The term "director" means the Executive Director of the Mississippi Department of Revenue.

SECTION 3. Businesses that move out of state or overseas. (1) Notice requirement. An employer that intends to relocate a business, or one or more facilities of operating units within a business from Mississippi to another state or foreign country, shall notify the Executive Director of the Mississippi Department of Revenue at least one hundred twenty (120) days before such relocation.

(2) Penalty. An employer that violates subsection (1) of this section shall be subject to a civil penalty not to exceed an amount of Ten Thousand Dollars ($10,000.00) for each day of such violation, except that the director may reduce such amount for just cause shown.

(3) The Executive Director of the Mississippi Department of Revenue shall compile a semiannual list of all employers that relocate a business, or one or more facilities or operating from the State of Mississippi to another state or foreign country.

(4) The director shall distribute the list required in subsection (1) of this section to all state agencies administering state guaranteed loans or grants or state tax benefits as determined by the director, including the Mississippi Development Authority and the Mississippi Department of Revenue.

SECTION 4. Grants or guaranteed loans. (1) Ineligibility. Except as provided in subsection (2) of this section and notwithstanding any other provision of law, an employer that appears on the list described in Section 3 of this act shall be ineligible for any direct or indirect state grants, state guaranteed loans or tax benefit for five (5) years after the date such list is published.

(2) Reversion. Except as provided in subsection (3) of this section and notwithstanding any other provision of law, an employer that appears on the list described in Section 3 of this act shall remit the unamortized value of any grant, guaranteed loans, tax benefits, or any other governmental support it has previously received to the Mississippi Department of Revenue for transfer into the State General Fund.

(3) Exceptions. The Executive Director of the Mississippi Department of Revenue, in consultation with the appropriate agency providing a loan or grant, may waive the ineligibility requirement provided under subsection (1) of this section if the employer applying for such loan or grant demonstrates that a lack of such loan or grant would:

(a) Result in substantial job loss in the State of Mississippi; or

(b) Harm the environment.

SECTION 5. In-state procurement. The head of each agency shall ensure that all state-business-related businesses and customer service work be performed by resident contractors or their agents or subcontractors. Nonresident contractors who currently perform such work outside the State of Mississippi shall have two (2) years following the passage of this act to comply with this section; provided, that if any such grandfathered contractors add employees who will perform work on such contracts, those new employees shall immediately be employed within the State of Mississippi.

SECTION 6. State benefits for workers. No provision of this act shall be construed to permit withholding or denial of payments, compensation, or benefits under any other state law (including state unemployment compensation, disability payments, or worker retraining or readjustment funds) to workers employed by employers that relocate to another state or foreign country.

SECTION 7. Section 31-7-15, Mississippi Code of 1972, is amended as follows:

31-7-15. (1) Whenever two (2) or more competitive bids are received, one or more of which relates to commodities grown, processed or manufactured within this state, and whenever all things stated in such received bids are equal with respect to price, quality and service, the commodities grown, processed or manufactured within this state shall be given preference. A similar preference shall be given to commodities grown, processed or manufactured within this state whenever purchases are made without competitive bids, and when practical the Department of Finance and Administration may by regulation establish reasonable preferential policies for other commodities, giving preference to resident suppliers of this state.

(2) Any foreign manufacturing company with a factory in the state and with over fifty (50) employees working in the state shall have preference over any other foreign company where both price and quality are the same, regardless of where the product is manufactured.

(3) On or before January 1, 1991, the Department of Finance and Administration shall adopt bid and product specifications to be utilized by all state agencies that encourage the procurement of commodities made from recovered materials. Preference in awarding contracts for commodities shall be given to commodities offered at a competitive price.

(4) Each state agency is required to procure products made from recovered materials when those products are available at a competitive price. For purposes of this subsection, "competitive price" means a price not greater than ten percent (10%) above the lowest and best bidder. A decision not to procure products made from recovered materials must be based on a determination that such procurement:

(a) Is not available within a reasonable period of time; or

(b) Fails to meet the performance standards set forth in the applicable specifications; or

(5) Whenever economically feasible, each state agency is required to purchase products manufactured or sold by the Mississippi Industries for the Blind.

(6) Each state agency shall comply with the provisions of this act relating to the ineligibility of state benefits for entities doing business with the State of Mississippi which close or relocate.

SECTION 8. Section 31-7-47, Mississippi Code of 1972, is amended as follows:

31-7-47. In the letting of public contracts, preference shall be given to resident contractors, and a nonresident bidder domiciled in a state, city, county, parish, province, nation or political subdivision having laws granting preference to local contractors shall be awarded Mississippi public contracts only on the same basis as the nonresident bidder's state, city, county, parish, province, nation or political subdivision awards contracts to Mississippi contractors bidding under similar circumstances. Resident contractors actually domiciled in Mississippi, be they corporate, individuals or partnerships, are to be granted preference over nonresidents in awarding of contracts in the same manner and to the same extent as provided by the laws of the state, city, county, parish, province, nation or political subdivision of domicile of the nonresident.

Each state agency shall comply with the provisions of this act relating to the ineligibility for state benefits for entities doing business with the State of Mississippi which close or relocate to another jurisdiction.

SECTION 9. This act shall take effect and be in force from and after July 1, 2020.