Bill Text: MS HB1247 | 2020 | Regular Session | Introduced
Bill Title: Low interest revolving loan program; establish to provide low interest loans to qualified individuals.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2020-03-03 - Died In Committee [HB1247 Detail]
Download: Mississippi-2020-HB1247-Introduced.html
MISSISSIPPI LEGISLATURE
2020 Regular Session
To: Appropriations
By: Representative Karriem
House Bill 1247
AN ACT TO ESTABLISH A REVOLVING LOAN PROGRAM FOR THE PURPOSE OF PROVIDING LOW INTEREST LOANS TO QUALIFIED INDIVIDUALS; TO PROVIDE THAT THE PROGRAM WILL BE ADMINISTERED BY THE MISSISSIPPI HOME CORPORATION; TO PRESCRIBE THE POWERS AND DUTIES OF THE CORPORATION IN ADMINISTERING THE PROGRAM; TO REQUIRE THE CORPORATION TO ESTABLISH AN OFFICE IN EACH OF THE STATE'S FOUR CONGRESSIONAL DISTRICTS FOR THE PURPOSE OF RECEIVING APPLICATIONS UNDER THE PROGRAM; TO CREATE A SPECIAL FUND IN THE STATE TREASURY TO BE DESIGNATED THE "LOW INTEREST REVOLVING LOAN FUND"; TO PROVIDE THAT THE REVOLVING FUND WILL BE CREDITED WITH ALL REPAYMENTS OF PRINCIPAL AND INTEREST DERIVED FROM LOANS MADE FROM THE REVOLVING FUND; TO AUTHORIZE THE CORPORATION TO MAKE LOANS FROM THE REVOLVING FUND TO QUALIFIED INDIVIDUALS AS SET FORTH IN A LOAN AGREEMENT IN AN AMOUNT OF NOT MORE THAN $1,500.00 PER LOAN; TO PROVIDE THAT THE FUND SHALL CONSIST OF INITIAL TRANSFERS BY THE STATE FISCAL OFFICER OF SIX MILLION DOLLARS FROM THE STATE GENERAL FUND, WITH A TRANSFER OF TWO MILLION DOLLARS IN EACH OF THE FISCAL YEARS 2022, 2023 AND 2024; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) There is established a revolving loan program for the purpose of providing low interest loans to qualified individuals. The program shall be administered by the Mississippi Home Corporation, referred to in this section as "corporation."
(2) In administering the program established under this section, the corporation shall have the following powers and duties:
(a) Determine the qualifications for individuals who apply for a loan under the program;
(b) Promulgate rules and regulations, make variances and exceptions thereto, and establish procedures in accordance with this section, for the implementation of the program;
(c) Ensure that the funds made available under this section are distributed among applicants under a priority system established by the corporation;
(d) Maintain in accordance with generally accepted government accounting standards an accurate record of all monies in the revolving fund made available to individuals under this section;
(e) Establish policies, procedures and requirements concerning financial capability to repay loans that may be used in approving loans available under this section; and
(f) Establish an office in each of the state's four congressional districts for the purpose of receiving applications under the program.
(3) There is created a special fund in the State Treasury to be designated as the "Low Interest Revolving Loan Fund," referred to in this section as the "revolving fund." The revolving fund shall consist of those monies as provided in subsection (9) of this section and any appropriations, bond proceeds, grants, gifts, donations and any other funds from any source, public or private, designated for deposit into the fund. The revolving fund shall be credited with all repayments of principal and interest derived from loans made from the revolving fund. The revolving fund shall be maintained in perpetuity for the purposes established in this section. Unexpended amounts remaining in the revolving fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the revolving fund shall be deposited to the credit of the fund. Monies in the revolving fund may not be used or expended for any purpose except as authorized under this section, and may be expended only in amounts appropriated by the Legislature. Any monies in the revolving fund may be used to match any federal funds that are available for the same or related purposes for which funds are used and expended under this section. Any federal funds shall be used and expended only in accordance with federal laws, rules and regulations governing the expenditure of those funds.
(4) The corporation may make loans from the revolving fund to qualified individuals as set forth in a loan agreement in an amount of not more than One Thousand Five Hundred Dollars ($1,500.00) per loan. The interest rate on those loans may vary from time to time and from loan to loan, and will be below market interest rates as determined by the corporation. The corporation shall act as quickly as is practicable and prudent in deciding on any loan application that it receives.
(5) An individual receiving a loan from the revolving fund must establish a dedicated source of revenue from employment for repayment of the loan. Before an individual may receive a loan, he or she must have executed with the corporation a loan agreement evidencing that loan. The loan agreement shall not be construed to prohibit any recipient from prepaying any part or all of the funds received. The repayment schedule in each loan agreement shall provide for monthly payments. The loan agreement shall provide for the repayment of all funds received from the revolving fund within not more than one (1) year.
(6) An individual who receives a loan from the revolving fund shall repay that loan by making payments each month to the State Treasurer through the Department of Finance and Administration for and on behalf of the corporation according to Section 7-7-15, to be credited to the revolving fund. Loan repayments shall be according to a repayment schedule contained in each loan agreement as provided in subsection (4) of this section.
(7) The State Auditor, upon request of the corporation, shall audit the receipts and expenditures of an individual whose loan repayments appear to be in arrears, and if the Auditor finds that he or she is in arrears in those repayments, the Auditor shall immediately notify the corporation, which may take any action as may be necessary to enforce the terms of the loan agreement, until such time as the individual is again current in his or her loan repayments as certified by the Auditor.
(8) Except as otherwise provided in this section, all monies deposited in the revolving fund, including loan repayments and interest earned on those repayments, shall be used only for providing loans to qualified individuals in accordance with the provisions of this section as the corporation deems appropriate. However, any amounts in the revolving fund may be used by the corporation to defray the reasonable costs of administering the revolving fund and conducting activities under this section, subject to appropriation by the Legislature.
(9) In addition to any money that may be appropriated to it, the revolving fund shall consist of initial transfers by the State Fiscal Officer of Six Million Dollars ($6,000,000.00) from the State General Fund, with a transfer of Two Million Dollars ($2,000,000.00) in each of the fiscal years 2022, 2023 and 2024.
(10) The corporation may adopt rules and regulations as necessary to administer this act.
SECTION 2. This act shall take effect and be in force from and after July 1, 2020.
