Bill Text: MS HB1505 | 2012 | Regular Session | Introduced
Bill Title: Wind farms; authorize Secretary of State to lease or rent certain state lands for establishment of for power generation.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Failed) 2012-03-06 - Died In Committee [HB1505 Detail]
Download: Mississippi-2012-HB1505-Introduced.html
MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Energy; Public Property
By: Representative Hines
House Bill 1505
AN ACT TO AMEND SECTION 29-1-107, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE SECRETARY OF STATE TO LEASE OR RENT ANY AVAILABLE STATE PRISON LANDS FOR THE PURPOSE OF ESTABLISHING WIND FARMS FOR WIND POWER GENERATION PROJECTS; TO PRESCRIBE THE TERMS OF THE LEASES AND THE DISTRIBUTION OF FUNDS RECEIVED FOR SUCH LEASES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 29-1-107, Mississippi Code of 1972, is amended as follows:
29-1-107. (1) The Secretary of State with the approval of the Governor shall, as far as practicable, rent or lease all lands belonging to the state, except as otherwise provided by law for a period of not exceeding one (1) year, and account for the rents therefrom in the same manner as money received from the sale of state lands, provided that no state land shall be rented or leased to individuals, corporations, partnerships, or association of persons for hunting or fishing purposes. Property belonging to the state in municipalities, even though it may have been subdivided into lots, blocks, divisions, or otherwise escheated or was sold to the state by such description, may likewise be leased or rented by the Secretary of State under the terms provided above for other state lands, and the rents accounted for in the same manner. The state shall have all the liens, rights and remedies accorded to landlords in Sections 89-7-1 through 89-7-125; said leases and rental contracts shall automatically terminate on the date provided in said leases or contracts.
(2) (a) The Secretary of State, with the approval of the Governor, may rent or lease surface lands, tidelands or submerged lands owned or controlled by the State of Mississippi lying in or adjacent to the Mississippi Sound or Gulf of Mexico or streams emptying therein, for a period not exceeding forty (40) years for rental payable to the state annually. However, the term of any lease of state public trust tidelands to a person possessing a license under the Mississippi Gaming Control Act shall be governed by the provisions of subsection (4) of this section.
(b) The lessee under such agreement may construct such necessary items for marking channels, docking, wharfing, mooring or fleeting vessels which shall be in aid of navigation and not obstructions thereto.
(c) A lessee of record may be given the option to renew for an additional period not to exceed twenty-five (25) years; however, the term of a renewal for a lease of state public trust tidelands to a person possessing a gaming license under the Mississippi Gaming Control Act shall be governed by the provisions of subsection (4) of this section. The holder of a lease of Public Trust Tidelands, at the expiration thereof, shall have a prior right, exclusive of all other persons, to re-lease as may be agreed upon between the holder of the lease and the Secretary of State.
(d) Leases shall provide for review and rent adjustments at each fifth anniversary tied either to the All Urban Consumer Price Index-All Items (CPI) or to an appraisal which deducts the value of any improvements by the lessee which substantially enhance the value of the land. In the case where the initial rental was based on the value set by the ad valorem tax rolls, then the rent review and adjustment clause shall be likewise based on the value set by such tax rolls. In the event that the lessor and lessee cannot agree on a rental amount, the lease may be cancelled at the option of the lessor. The lessee shall, within thirty (30) days after execution of a sublease or assignment, file a copy thereof, including the total consideration therefor, with the Secretary of State. This paragraph shall not apply to a lease of state public trust tidelands or submerged lands to a person possessing a gaming license under the Mississippi Gaming Control Act who operates a gaming establishment on such tidelands.
(3) Provided, however, the current occupants of public trust tidelands that were developed after the determinable mean high-water line nearest the effective date of the Coastal Wetlands Protection Law shall pay an annual rental based on the fair market value as determined by the assessed valuation of the property. The holder of a lease of Public Trust Tidelands, at the expiration thereof, shall have a prior right, exclusive of all other persons, to re-lease as may be agreed upon between the holder of the lease and the Secretary of State.
(4) (a) This subsection shall apply to any person possessing a license under the Mississippi Gaming Control Act who operates a gaming establishment in any of the three (3) most southern counties of the state.
(b) The following shall apply to all leases of state public trust tidelands executed by such a licensee:
(i) Every lease executed after August 29, 2005, shall be for a period of thirty (30) years for rental payable to the state annually.
(ii) By operation of this section, any lease executed before August 29, 2005, may, at the option of the lessee, either remain at the term stated in the original execution of the lease or be converted to a thirty-year term lease, beginning on such date after August 29, 2005, that the lessee either resumes or begins permanent gaming activities as approved by the Mississippi Gaming Commission, and the lessee shall be required to comply with all other provisions of the lease. Should the lessee choose to operate in a structure that is not on state public trust tidelands and that is on property contiguous to tidelands leased by the lessee, the lessee shall be required to comply with all other provisions of the lease and shall be exempt from the assessment provided for in paragraph (c) of this subsection. Easements for and rights-of-way for public streets and highways shall not be construed to interrupt the contiguous nature of a parcel of property. In the event that a lessee does not elect either to remain bound by the original term of the lease or to convert the lease to a thirty-year term, the Secretary of State may lease the state public trust tidelands that are the subject of the lease to any other person or entity.
(iii) Leases shall provide for review and rent adjustments at each annual anniversary tied to the All Urban Consumer Price Index-All Items (CPI). In the case of the renewal of a lease after the expiration of the original thirty-year term under this subsection, each renewal shall be for a term of thirty (30) years. The base rate to which the CPI shall apply for purposes of executing the subsequent lease shall be negotiated by the lessee with the Secretary of State.
(c) (i) Except as otherwise provided in this paragraph, any person possessing a license under the Mississippi Gaming Control Act who does not lease public trust tidelands from the state or any of its political subdivisions, and who operates a gaming establishment in any of the three (3) most southern counties of the state, shall pay an annual in-lieu tidelands assessment to the Public Trust Tidelands Assessments Fund (hereinafter referred to as "fund") created in Section 29-15-10, in the amount and manner provided for in this paragraph.
For calendar year 2006, the annual in-lieu tidelands assessment paid by the licensee to the fund shall be:
1. Four Hundred Thousand Dollars ($400,000.00), if the capital investment in the part of the structure in which licensed gaming activities are conducted is Fifty Million Dollars ($50,000,000.00) or less.
2. Four Hundred Fifty Thousand Dollars ($450,000.00), if the capital investment in the part of the structure in which licensed gaming activities are conducted is equal to or more than Fifty Million Dollars ($50,000,000.00) but less than Sixty Million Dollars ($60,000,000.00).
3. Five Hundred Thousand Dollars ($500,000.00), if the capital investment in the part of the structure in which licensed gaming activities are conducted is equal to or more than Sixty Million Dollars ($60,000,000.00) but less than Seventy-five Million Dollars ($75,000,000.00).
4. Six Hundred Thousand Dollars ($600,000.00), if the capital investment in the part of the structure in which licensed gaming activities are conducted is equal to or more than Seventy-five Million Dollars ($75,000,000.00) but less than One Hundred Million Dollars ($100,000,000.00).
5. Seven Hundred Thousand Dollars ($700,000.00), if the capital investment in the part of the structure in which licensed gaming activities are conducted is equal to or more than One Hundred Million Dollars ($100,000,000.00) but less than One Hundred Twenty-five Million Dollars ($125,000,000.00).
6. Seven Hundred Fifty Thousand Dollars ($750,000.00), if the capital investment in the part of the structure in which licensed gaming activities are conducted is equal to or more than One Hundred Twenty-five Million Dollars ($125,000,000.00).
For each calendar year thereafter, the Secretary of State shall review and adjust the value of the capital investment and the annual in-lieu tidelands assessment due. Such review and adjustment shall be tied to the CPI.
(ii) This paragraph shall not apply to a gaming licensee if the licensee conducts gaming in a structure that is located on property that is leased from the Mississippi State Port at Gulfport or any political subdivision of the state, or to a licensee who conducts gaming in a structure that is located on property that is leased to the licensee jointly by the State of Mississippi and the City of Biloxi; however, with regard to property owned by a political subdivision of the state, this exception shall only apply to property owned by the political subdivision on August 29, 2005, if legal gaming could have been conducted on such property on that date.
(iii) This paragraph shall not apply to a gaming licensee if the licensee conducts gaming in a structure that is located on property that is not leased from the State of Mississippi and/or a political subdivision of the State of Mississippi and is not on state public trust tidelands, and if the licensee conducted gaming on that property before August 29, 2005.
(5) (a) The Secretary of State, with the approval of the Governor, may rent or lease any available state lands for wind power generation projects. The Secretary of State is authorized to negotiate all aspects of such leases and to make any ancillary agreements as may be reasonably necessary to ensure a fair and equitable return to the state.
(b) The primary term and any renewal term of said lease combined shall not exceed fifty (50) years.
(c) Any lease, whether a new lease or renewal lease, executed under this section shall contain provisions for the periodic adjustment of rentals throughout the term of the lease. Leases may provide for a base rent, bonus, percentage of income, royalty or any combination thereof, along with other methods deemed necessary and reasonably calculated to maintain a fair and equitable return to the state throughout the term of any lease or renewal.
(d) Any lease or renewal lease executed pursuant to this act shall contain such other terms and provisions as the Secretary of State, in his discretion, deems practical and necessary to protect the leased land and the interests of the state. The land may be leased for other uses and for wind power general projects simultaneously. If a lease is entered into for the purpose of a wind power generation project, appropriate lease terms shall be included to provide for the mutual accommodation and protection of the respective rights of the holders of the lease for any other uses and for the wind power generation project lease.
(e) Oil, gas and mineral rights in the leased land shall be reserved to the State of Mississippi, and no provision of any lease may provide otherwise.
(f) Nothing in this subsection shall be construed to authorize the sale or transfer of title to any state prison lands leased for wind power generation projects.
(g) Any monies derived from leasing lands under this subsection shall be deposited to the General Fund except where the Legislature has designated monies derived from leasing specific state lands to be deposited in a special fund. The Secretary of State is authorized to charge fees and expenses, not to exceed costs, incurred in administering this act and leases executed hereunder. Where monies derived from leasing have been designated to be paid into a special fund, the agency having charge of the special fund is authorized to pay to the Secretary of State those fees and expenses from the special fund.
SECTION 2. This act shall take effect and be in force from and after July 1, 2012.
