MISSISSIPPI LEGISLATURE

2023 Regular Session

To: Forestry; Finance

By: Senator(s) McCaughn, Hickman

Senate Bill 2525

(As Sent to Governor)

AN ACT TO CREATE THE MISSISSIPPI FORESTRY FACILITY GRANT FUND AND PROGRAM TO BE USED FOR UTILITY, INFRASTRUCTURE AND TRANSPORTATION PROJECTS WITH A $10,000,000.00 INVESTMENT; TO PROVIDE THAT SUCH FUNDS SHALL BE ADMINISTERED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY; TO PRESCRIBE CERTAIN CONDITIONS ON ALLOCATIONS FROM THE FUND; TO PRESCRIBE ELIGIBLE COSTS FROM WHICH MONIES FROM THE FUND MAY BE ALLOCATED; TO AUTHORIZE COOPERATIVE AGREEMENTS FOR THE IMPLEMENTATION OF SUCH GRANTS; TO AMEND SECTION 57-1-55, MISSISSIPPI CODE OF 1972, IN CONFORMITY WITH THE PRECEDING PROVISIONS; AND FOR RELATED PURPOSES.

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

     SECTION 1.  This act shall be known and may be cited as the "Forestry Facility Grant Program."  The Forestry Facility Grant Program will authorize the Mississippi Development Authority, through appropriations by the Legislature, to make grants available to designated forestry facility projects that lead to the expansion of Mississippi's forestry products industry.

     SECTION 2.  (1)  For the purposes of this section:

          (a)  "Under public control" means held or controlled by the public, or held by a public option.

          (b)  "Growth-to-drain" means a one and five (1.5) growth to one (1) drain ratio of trees within a fifty-mile radius of the facility, which can be verified by the Mississippi Forestry Commission.

     (c)  "Eligible recipients" shall mean a forestry facility project that satisfies the criteria as outlined in this section, and has applied for grant funding to install utility, infrastructure and transportation projects only.  A recipient will be found to be ineligible for a grant, if their project seeks to use grant funding for construction of their facility or project.

     (d)  "The committee" means a committee consisting of the Executive Director of the Mississippi Development Authority, Chief of Economic Development, the MDA Forest Products expert, an appointee from the Governor's office and an appointee from the Lieutenant Governor's office, that is tasked with approving grant recipients in accordance with this section.

(2)  Eligible applicants include municipalities, county governments, existing forestry product facilities and regional economic development entities.  To apply, applicants must submit their proposals to the Mississippi Development Authority (MDA).  The MDA shall accept applications from eligible recipients, prioritize these applications and submit suggested recipients to the committee by no later than December 1.  Beginning July 1, 2024, and each year thereafter, the committee shall review the submitted list and choose to award grants to the eligible recipients through the Mississippi Development Authority.  The MDA will consider and prioritize projects in relation to the following criteria:

          (a)  The project has a minimum investment of Ten Million Dollars ($10,000,000.00);

          (b)  The project site utilizes at least fifty (50) acres of land under public control;

          (c)  Applicant proposes to use funds for the purpose of utility, infrastructure and/or transportation development;

          (d)  The project produces a high level of public benefit;

          (e)  The project demonstrates best practices and complies with the required growth-to-drain ratio;

          (f)  The project will comply with and expand upon existing infrastructure in the community;

          (g)  The distribution of geographic size and location of the project; and

          (h)  The applicant can demonstrate the ability of the proposed project to be completed on time.

     (3)  The Mississippi Development Authority shall provide grant funds to the forestry facility projects as approved by the committee upon completion of the project.  Award amounts shall not exceed seventy-five percent (75%) of the total infrastructure project cost.  Grantees shall not receive compensation for expenses related to the construction of their project.

     (4)  Eligible costs of grant funds include the acquisition of land and any improvements thereon, the installation of power lines, gas lines, water systems, sewage systems, roads, railroads and other infrastructure-related projects that are necessary for project completion and/or expansion, and complying with existing community needs and infrastructure.

(5)  Grants may be awarded for both existing projects and development of prospective sites.  In the latter case, the project shall be made to help establish or complete a forestry products project.

     (6)  Public grantees must adhere to Mississippi state procedures and guidelines as it relates to the implementation and financing of the approved project.  Grantees must also submit any and all audit financial statements as required by the State of Mississippi.

     (7)  There is created in the State Treasury a special fund to be known as the "Forestry Facility Grant Program Fund," from which shall be established with a sum of Ten Million Dollars ($10,000,000.00).  Awards authorized under the Forestry Facility Grant Program shall be disbursed by the Mississippi Development Authority.  The fund shall consist of monies appropriated by the Legislature and funds received as grants, endowments or gifts from the federal government, its agencies and instrumentalities and funds from any other available sources, public or private.  Any unexpended monies remaining in the fund, including interest thereon, at the end of each fiscal year, shall not lapse to the State General Fund, but shall remain in the fund.

     (8)  The Director of the Mississippi Development Authority shall establish, administer, manage, and make expenditures and allocations of grant funds and shall establish guidelines for applications, evaluations and awards of grant funds.  The MDA shall utilize no more than two percent (2%) of funds awarded to the program for administrative expenses.

     (9)  To carry out this act, the Mississippi Development Authority may enter into cooperative agreements with entities in the public and private sectors, including:

          (a)  Primary forestry product mills and residual forest products facilities;

          (b)  Companies in a recognized forestry-related industry;

          (c)  State and local agencies; and

          (d)  Nonprofit organizations for economic development.

     (10)  The Mississippi Development Authority may require that recipients seek and secure technical assistance from the Mississippi Forestry Commission.  The Mississippi Forestry Commission will provide administrative support to local forestry project grantees to ensure proper growth-to-drain criteria as defined herein.

     SECTION 3.  Section 57-1-55, Mississippi Code of 1972, is amended as follows:

     57-1-55.  (1)  The * * * Department of Economic and Community Development Mississippi Development Authority shall have the following general powers and duties:  To develop and manage programs which enhance the climate for economic growth through assistance to private sector businesses, local communities and individuals, and through an extensive national and international marketing effort.

     (2)  The * * * Department of Economic and Community Development Mississippi Development Authority shall have the following general powers and duties with respect to economic development:

          (a)  To plan, supervise and direct an active program of solicitation of industries to locate within the state;

          (b)  To prepare, maintain and disseminate information which is needed by companies in evaluating site locations;

          (c)  To consult with, advise and assist prospective industries wishing to locate within the state;

          (d)  To encourage new or expanding industries, which will add to the economy, to locate within the state;

          (e)  To maintain a coordinated liaison function with other development groups, including state and federal agencies, and planning and development districts, utility companies, chambers of commerce and railroads;

          (f)  To assist communities and counties within the state in preparation for economic growth;

          (g)  To assist new and existing business and industry and encourage their development and expansion;

          (h)  To plan and conduct a nationwide advertising program promoting the state to prospective industry.  Any contract entered into for such purposes shall be advertised, bid and accepted in accordance with the same procedure as prescribed for the advertisement and acceptance of bids for the purchase of commodities and contracts for public purchases under Chapter 7, Title 31, Mississippi Code of 1972;

          (i)  To work with economic development agencies of the federal government in areas of industrial development and provide information to industrial prospects regarding the availability of federal funds and assistance;

          (j)  To work with the Department of Corrections, pursuant to the provisions of Section 47-5-501 et seq., in identifying and evaluating acceptable industries and businesses and in acting as an agent of the Department of Corrections by communicating with such concerns and aggressively soliciting their participation in the Correctional Industries Work Program;

          (k)  To perform related work as required;

          (l)  To disseminate information about financial and other programs of the * * * Department of Economic and Community Development Mississippi Development Authority that will assist in the creation or expansion of industries processing wood products in this state;

          (m)  To market processed and raw agricultural products domestically and abroad;

          (n)  To aid in the establishment of business incubation centers by private business interests, not-for-profit corporations, and/or governmental entities.  The department may provide funds by contract for the establishment of business incubation centers and may contract for space in which business incubation centers will be located.  Business incubation centers are defined as facilities and support services that encourage the establishment of successful small businesses by providing a short-term sheltered environment.  The department may solicit and accept grants and other financial aid or support from private or public sources to aid in the development of business incubation centers.  In addition, advice and assistance to established business incubation centers may be provided by the department; * * * and

          (o)  To employ licensed real estate brokers and appraisers necessary for the industrial development of any real estate under the ownership or control of the * * * Department of Economic and Community Development Mississippi Development Authority.  Any contract entered into for such purposes shall be advertised, bid and accepted in accordance with the same procedure as prescribed for the advertisement and acceptance of bids for the purchase of commodities and contracts for public purchases under Chapter 7, Title 31, Mississippi Code of 1972 * * *.; and

          (p)  The Mississippi Development Authority will establish, administer, manage, make expenditures and allocations from the Forestry Facility Grant Program under the provisions of Section 2 of this act.

     SECTION 4.  This act shall take effect and be in force from and after July 1, 2023.