Senate Bill 2001

(As Sent to Governor)

AN ACT TO CREATE THE PROJECT POPPY FUND AS A SPECIAL FUND IN THE STATE TREASURY FOR THE PURPOSE OF PROVIDING GRANTS OR LOANS TO FUND CERTAIN PROJECTS, AS DEFINED IN SECTION 57-75-5(f)(xxxii), MISSISSIPPI CODE OF 1972, FOR THE MANUFACTURE AND ASSEMBLY OF BATTERY CELLS FOR ELECTRIC COMMERCIAL VEHICLES AND INDUSTRIAL APPLICATIONS, CERTAIN OTHER INDUSTRIAL FACILITIES AND RELATED PORT IMPROVEMENT PROJECTS; TO PROVIDE THAT MONIES APPROPRIATED OUT OF THE FUND MAY BE USED TO REIMBURSE ACTUAL OVERSIGHT COSTS AND ENGINEERING EXPENSES UP TO A CERTAIN AMOUNT; TO REQUIRE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO FILE A REPORT ON THE FUND TO CERTAIN PUBLIC OFFICIALS; TO DIRECT THE STATE TREASURER, IN CONJUNCTION WITH THE STATE FISCAL OFFICER, TO TRANSFER FUNDS OUT OF THE CAPITAL EXPENSE FUND TO THE PROJECT POPPY FUND CREATED IN THIS ACT; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) There is created a special fund in the State Treasury to be known as the "Project Poppy Fund" which shall consist of monies from any source designated for deposit into the fund. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any investment earnings or interest earned on amounts in the fund shall be deposited to the credit of the fund.

(2) (a) Monies in the fund shall be disbursed by the Mississippi Development Authority for the purpose of providing grants or loans to fund certain projects, as defined in Section 57-75-5(f)(xxxii), Mississippi Code of 1972, for the manufacture and assembly of battery cells for electric commercial vehicles and industrial applications. Any state agency that receives funds from the Mississippi Development Authority for certain projects, as defined in Section 57-75-5(f)(xxxii), may accept, budget, receive and expend these funds in accordance with rules and regulations of the Department of Finance and Administration in the manner consistent with the escalation of federal funds.

(b) In addition to the purposes in paragraph (a) of this subsection, monies appropriated out of the fund may be used to reimburse reasonable actual and necessary oversight costs and engineering expenses incurred by the Mississippi Development Authority in providing grants or loans under this section. The Mississippi Development Authority shall maintain an accounting of actual costs and expenses incurred for which reimbursement is sought for each grant or loan. Reimbursement of reasonable actual and necessary costs and expenses for assistance shall not exceed one and twenty-five one-hundredths percent (1.25%) of the monies appropriated out of the fund. Reimbursements made under this paragraph shall satisfy any applicable federal tax law requirements.

(3) On or before January 5 of each year, the Mississippi Development Authority shall file an accounting of and report on funds disbursed from the Project Poppy Fund, including an accounting of the actual costs and expenses incurred by the Mississippi Development Authority and the number and amount of grants and loans. The report shall be filed with the Speaker of the House, the Lieutenant Governor, the Chairs of the Appropriations Committees of the Senate and the House, the Chair of the Finance Committee of the Senate, the Chair of the Ways and Means Committee of the House and the Governor.

SECTION 2. Upon the effective date of this act, the State Treasurer, in conjunction with the State Fiscal Officer, shall transfer the sum of One Hundred Seventeen Million Six Hundred Fourteen Thousand Dollars ($117,614,000.00) from the Capital Expense Fund (Fund No. 6499C00000) to the Project Poppy Fund created in Section 1 of this act.

SECTION 3. This act shall take effect and be in force from and after its passage.