Senate Bill 2865

AN ACT TO AMEND SECTION 57-80-7, MISSISSIPPI CODE OF 1972, TO REQUIRE SPECIFICATION BY A COUNTY APPLYING FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY AS TO THE ECONOMIC INCENTIVE OR INCENTIVES MOTIVATING THE APPLICATION; TO ALLOW THE COUNTY TO MAKE SUBSEQUENT APPLICATION FOR A DIFFERENT KIND OF INCENTIVE; TO AMEND SECTION 57-80-9, MISSISSIPPI CODE OF 1972, TO ALLOW APPROVED BUSINESS ENTERPRISES IN GROWTH AND PROSPERITY COUNTIES, OR APPROVED BUSINESS ENTERPRISES IN ELIGIBLE SUPERVISOR'S DISTRICTS NEAR COUNTIES MEETING CERTAIN CRITERIA, TO NEGOTIATE WITH THE APPLICABLE LOCAL GOVERNING AUTHORITIES FOR RELIEF FROM THE MISSISSIPPI HEALTH CARE CERTIFICATE OF NEED LAW OF 1979; TO PROVIDE THAT SUCH RELIEF, IF APPROVED, SHALL LAST FOR 10 YEARS OR UNTIL DECEMBER 31, 2033, WHICHEVER OCCURS FIRST; TO ENUMERATE CONDITIONS APPLYING TO THIS INCENTIVE; TO SPECIFY THAT THE INCENTIVE IS NONTRANSFERABLE; TO REQUIRE THAT ANY BUSINESS ENTERPRISE RECEIVING THE INCENTIVE BE IN FULL COMPLIANCE WITH ALL STATE AND LOCAL TAX LAWS AND RELATED ORDINANCES AND RESOLUTIONS; TO REQUIRE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO ENTER AN AGREEMENT WITH THE APPROVED BUSINESS ENTERPRISE CONTAINING PERFORMANCE REQUIREMENTS DURING THE TERMS OF THE INCENTIVE, AND TO PROVIDE FOR TERMINATION OF THE INCENTIVE IF THE REQUIREMENTS ARE NOT MET; TO DIRECT THE MISSISSIPPI DEVELOPMENT AUTHORITY TO FORWARD THE AGREEMENT TO THE APPLICABLE COUNTY, MUNICIPALITY, AGENCY, DEPARTMENT OR OTHER ENTITY SO THAT THE INCENTIVE CAN BE IMPLEMENTED; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 57-80-7, Mississippi Code of 1972, is amended as follows:

57-80-7. (1) From and after December 31, 2000, the following counties may apply to the MDA for the issuance of a certificate of public convenience and necessity:

(a) Any county of this state which has an annualized unemployment rate that is at least two hundred percent (200%) of the state's unemployment rate as of December 31 of any year after December 31, 2000, as determined by the Mississippi Department of Employment Security's most recently published data;

(b) Any county of this state in which thirty percent (30%) or more of the population of the county is at or below the federal poverty level according to the official data compiled by the United States Census Bureau as of August 30, 2000, for counties that apply before December 31, 2002, or the most recent official data compiled by the United States Census Bureau for counties that apply from and after December 31, 2002; or

(2) (a) The application, at a minimum, must contain ( * * *ai) the Mississippi Department of Employment Security's most recently published figures that reflect the annualized unemployment rate of the applying county as of December 31 or the most recent official data by the United States Census Bureau required by subsection (1) of this section, as the case may be, and ( * * *bii) an order or resolution of the county consenting to the designation of the county as a growth and prosperity county.

(b) The county must indicate whether its application for the issuance of a certificate of public convenience and necessity is being made for purpose of allowing only the tax exemptions authorized in this chapter, only the incentives authorized in Section 57-80-9(2), or both the tax exemptions and the incentives. If a county applies for and is issued a certificate of public convenience and necessity allowing only the tax exemptions authorized in this chapter or only the incentives authorized in Section 57-80-9(2), it may apply at a later date for the purpose of allowing the tax exemptions or other incentives, as the case may be, for which it did not previously apply and receive a certificate of public convenience and necessity.

(c) A county issued a certificate of public convenience and necessity before July 1, 2020, may submit an application for the purpose of allowing the incentives authorized in Section 57-80-9(2).

(3) Any municipality of a designated growth and prosperity county or within an eligible supervisors district and not more than eight (8) miles from the boundary of the county that meets the criteria of subsection (1)(b) of this section may by order or resolution of the municipality consent to participation in the Growth and Prosperity Program.

(4) No incentive or tax exemption shall be given under this chapter without the consent of the affected county or municipality.

SECTION 2. Section 57-80-9, Mississippi Code of 1972, is amended as follows:

57-80-9. (1) (a) Upon the issuance by the MDA of its certificate of public convenience and necessity, designating certain counties as growth and prosperity counties, any approved business enterprise in any such a growth and prosperity county or any approved business enterprise located within an eligible supervisors district within eight (8) miles of the boundary of the county that meets the criteria of Section 57-80-7(1)(b) shall be exempt from all local taxes levied by the county and all state taxes for a period of ten (10) years or until December 31, 2029, whichever occurs first, and upon consent of any municipality within such county or within such supervisors district and not more than eight (8) miles from the boundary of the county that meets the criteria of Section 57-80-7(1)(b), shall be exempt from all local taxes levied by such municipality for a period of ten (10) years or until December 31, 2033, whichever occurs first; however, if the business enterprise is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the business enterprise is unable to utilize the exemption from state taxes, the MDA may extend the duration of the exemption from state taxes for not more than two (2) years or until December 31, 2033, whichever occurs first. Any business enterprise that has property or equipment purchased utilizing the state tax exemption that is damaged or destroyed as a result of the disaster may purchase replacement equipment and component building materials exempt from sales and use tax.

( * * *2b) The following conditions, along with any other conditions the MDA shall promulgate from time to time by rule or regulation, shall apply to such exemptions: ( * * *ai) any exemption provided under this chapter is nontransferable and cannot be applied, used or assigned to any other person or business or tax account; ( * * *bii) no approved business enterprise may claim or use the exemption granted under this chapter unless that enterprise is in full compliance with all state and local tax laws, and related ordinances and resolutions; and ( * * *ciii) the approved business enterprise must enter into an agreement with the MDA which sets out, at a minimum the performance requirements of the approved business enterprise during the term of the exemption and provisions for the recapture of all or a portion of the taxes exempted if the performance requirements of the approved business enterprise are not met.

( * * *3c) Upon entering into such an agreement, the MDA shall forward such agreement to the Department of Revenue and the affected local taxing authorities so that the exemption can be implemented. The Department of Revenue shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, for the implementation of both local and state exemptions granted under this chapter.

(2) (a) Upon the issuance by the MDA of a certificate of public convenience and necessity designating certain counties as growth and prosperity counties, any approved business enterprise in any growth and prosperity county, or any approved business enterprise located within an eligible supervisor's district within eight (8) miles of the boundary of a county that meets the criteria of Section 57-80-7(1)(b), shall be eligible to request and negotiate with the board of supervisors or municipal governing authorities, as the case may be, with regard to relief from the Mississippi Health Care Certificate of Need Law of 1979, Sections 41-7-171 through 41-7-209, Mississippi Code of 1972.

If the board of supervisors or municipal governing authorities agree to approve the request for incentives of the approved business enterprise and adopt a resolution or ordinance approving the request, then any or all of the applicable provisions of such sections of law shall not apply to the approved business enterprise for a period of ten (10) years or until December 31, 2033, whichever occurs first.

(b) The following conditions, along with any other conditions the MDA shall promulgate from time to time by rule or regulation, shall apply to incentives under this subsection (2):

(i) Any incentive provided under this subsection (2) is nontransferable and cannot be applied, used or assigned to any other person or business;

(ii) No approved business enterprise may claim or use the incentive under this subsection (2) unless that enterprise is in full compliance with all state and local tax laws and related ordinances and resolutions; and

(iii) The approved business enterprise must enter into an agreement with the MDA setting out, at a minimum, the performance requirements of the approved business enterprise during the term of the incentive, and providing for the termination of the incentive if the performance requirements of the approved business enterprise are not met.

(c) Upon entering into such an agreement, the MDA shall forward the agreement to the applicable county, municipality, agency, department or other entity so that the incentive can be implemented.

( * * *43) Any business enterprise that relocates its present operation and jobs to a growth and prosperity county or an eligible supervisors district and not more than eight (8) miles from the boundary of the county that meets the criteria of Section 57-80-7(1)(b) from another county in the state shall not receive any of the tax exemptions or other incentives granted in this chapter.

( * * *54) If the annualized unemployment rate in a growth and prosperity county falls below one hundred fifty percent (150%) of the state's annualized unemployment rate for three (3) consecutive calendar years and less than thirty percent (30%) of the population of the county is at or below the federal poverty level according to the most recent official data compiled by the United States Census Bureau as of December 31 of the third of such consecutive calendar years, the tax exemptions and other incentives authorized under this chapter may not be granted to additional business enterprises.

SECTION 3. This act shall take effect and be in force from and after July 1, 2020.