Bill Text: MS HB1512 | 2018 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: BP settlement funds; provide for distribution to applicants for assistance for projects.

Spectrum: Slight Partisan Bill (Republican 12-5)

Status: (Failed) 2018-02-27 - Died In Committee [HB1512 Detail]

Download: Mississippi-2018-HB1512-Comm_Sub.html

MISSISSIPPI LEGISLATURE

2018 Regular Session

To: Appropriations

By: Representatives Busby, Anderson, Baria, Barton, Bennett, DeLano, Guice, Haney, Ladner, Patterson, Read, Williams-Barnes, Willis, Zuber

House Bill 1512

(COMMITTEE SUBSTITUTE)

AN ACT TO CREATE A SPECIAL FUND IN THE STATE TREASURY TO BE DESIGNATED AS THE "GULF COAST RESTORATION FUND"; TO PROVIDE THAT THE MONIES IN THE GULF COAST RESTORATION FUND SHALL BE ADMINISTERED BY THE BOARD OF TRUSTEES OF THE GULF COAST RESTORATION FUND; TO PROVIDE THAT THE MONIES IN THE GULF COAST RESTORATION FUND SHALL BE USED, UPON APPROPRIATION BY THE LEGISLATURE, TO PROVIDE ASSISTANCE TO APPLICANTS FOR PROJECTS AUTHORIZED BY THIS ACT; TO ESTABLISH A BOARD OF TRUSTEES OF THE GULF COAST RESTORATION FUND, WHICH WILL SERVE AS THE ADMINISTERING BODY FOR THE FUND; TO PROVIDE FOR THE MEMBERSHIP OF THE BOARD OF TRUSTEES; TO PROVIDE THAT THE BOARD OF TRUSTEES SHALL ISSUE A REQUEST FOR PROPOSALS FOR THE SELECTION OF AN ADMINISTRATOR OF THE FUND; TO PROVIDE THAT THE PERSON SELECTED AS ADMINISTRATOR IS AUTHORIZED TO CARRY OUT ANY POWERS AND DUTIES DELEGATED BY THE BOARD OF TRUSTEES AND WILL HANDLE ALL OF THE DAY-TO-DAY MATTERS RELATING TO THE FUND; TO PROVIDE THAT THE BOARD OF TRUSTEES SHALL ESTABLISH CRITERIA, RULES AND PROCEDURES FOR ACCEPTING, REVIEWING AND GRANTING OR DENYING APPLICATIONS FOR ASSISTANCE UNDER THIS ACT; TO SPECIFY THE APPLICANTS WHO ARE ELIGIBLE FOR ASSISTANCE UNDER THIS ACT; TO PROVIDE THAT APPLICATIONS FOR ASSISTANCE UNDER THIS ACT WILL BE RECEIVED THROUGH WEB PORTALS SET UP BY THE BOARD OF TRUSTEES; TO PROVIDE THAT THE APPLICATIONS SHALL BE REVIEWED, EVALUATED AND SCORED BY THE BOARD OF TRUSTEES AND THEN PRESENTED TO THE LEGISLATIVE ADVISORY COMMITTEE FOR ITS EVALUATION AND RECOMMENDATIONS; TO ESTABLISH A LEGISLATIVE ADVISORY COMMITTEE FOR THE BOARD OF TRUSTEES OF THE FUND, WHICH WILL SERVE ONLY IN AN ADVISORY CAPACITY IN REVIEWING AND EVALUATING APPLICATIONS FOR ASSISTANCE UNDER THIS ACT; TO AUTHORIZE THE BOARD OF TRUSTEES TO MAKE LOANS, LOAN GUARANTEES, GRANTS AND ANY OTHER FINANCIAL ASSISTANCE UNDER THIS ACT TO APPLICANTS WHOSE PROJECTS ARE APPROVED FOR ASSISTANCE BY THE BOARD OF TRUSTEES; TO DIRECT THE BOARD OF TRUSTEES TO ESTABLISH AN APPLICATION PROCEDURE FOR ASSISTANCE UNDER THIS ACT AND A SCORING PROCESS FOR THE SELECTION OF PROJECTS THAT HAVE THE POTENTIAL TO GENERATE INCREASED ECONOMIC ACTIVITY IN THE COUNTIES INVOLVED, AND TO SPECIFY THE TYPES OF PROJECTS FOR WHICH ASSISTANCE MAY BE MADE; TO PROVIDE FOR FINANCIAL AUDITS AND OPERATIONAL AUDITS OF RECIPIENTS OF ASSISTANCE UNDER THIS ACT; TO DIRECT THE BOARD OF TRUSTEES TO FILE AN ANNUAL REPORT WITH THE GOVERNOR AND THE LEGISLATURE THAT INCLUDES DETAILED INFORMATION REGARDING RECEIPTS AND EXPENDITURES OF THE FUNDS RECEIVED AND PROVIDED AS ASSISTANCE UNDER THIS ACT; TO PROVIDE THAT FOR THE PURPOSES OF ADMINISTERING THE FUNDS RECEIVED, EXPENDED AND PROVIDED AS ASSISTANCE UNDER THIS ACT, THE BOARD OF TRUSTEES OF THE FUND SHALL BE CONSIDERED TO BE A PUBLIC BODY AND PUBLIC ENTITY, AND SHALL BE SUBJECT TO ALL APPLICABLE PROVISIONS OF STATE LAW APPLICABLE TO PUBLIC BODIES AND PUBLIC ENTITIES WITH REGARD TO THE FUNDS RECEIVED, EXPENDED AND PROVIDED AS ASSISTANCE UNDER THIS ACT; TO CREATE A SPECIAL FUND IN THE STATE TREASURY TO BE DESIGNATED AS THE "MISSISSIPPI DEVELOPMENT AUTHORITY KEY PROGRAMS FUND"; TO PROVIDE THAT THE MONIES IN THE SPECIAL FUND SHALL BE USED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY, UPON APPROPRIATION BY THE LEGISLATURE, TO PROVIDE ADDITIONAL FUNDING FOR THE SMALL MUNICIPALITIES AND LIMITED POPULATION COUNTIES GRANT PROGRAM, THE ACE FUND GRANT PROGRAM, THE MISSISSIPPI SITE DEVELOPMENT GRANT PROGRAM AND THE BUSINESS INVESTMENT PROGRAM; AND FOR RELATED PURPOSES.

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

     SECTION 1.  (1)  There is created in the State Treasury a special fund to be designated as the "Gulf Coast Restoration Fund" ("the fund").  The fund shall consist of funds required to be deposited into the fund by Section 27-103-302, funds appropriated or otherwise made available by the Legislature in any manner, and funds from any other 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)  Monies in the Gulf Coast Restoration Fund shall be administered by the Board of Trustees of the Gulf Coast Restoration Fund established in Section 2 of this act, and shall be used, upon appropriation by the Legislature, to provide assistance to applicants for projects authorized by this act.

     SECTION 2.  (1)  There is established a Board of Trustees of the Gulf Coast Restoration Fund, which will serve as the administering body for the fund.

     (2)  The board of trustees shall consist of nine (9) members as follows:

          (a)  One (1) member who is a resident of Hancock County, Mississippi.  The member shall be appointed by a majority vote of the Board of Supervisors of Hancock County, Mississippi.  A member appointed under this paragraph (a) shall be appointed for an initial term of one (1) year.  Upon the expiration of an initial term of office, the appointing officials shall appoint successors for terms of five (5) years from the expiration date of the previous term.  A member appointed under this paragraph (a) may be removed from the board of trustees by a unanimous vote of the appointing officials or may be removed by a majority vote of the appointing officials upon receipt of a petition for removal signed by not less than seven (7) members of the board of trustees.  A member appointed under this paragraph (a) shall be eligible for reappointment.

          (b)  One (1) member who is a resident of Hancock County, Mississippi.  The member shall be appointed by a majority vote of the mayors of the municipalities located in Hancock County, Mississippi.  A member appointed under this paragraph (b) shall be appointed for an initial term of two (2) years.  Upon the expiration of an initial term of office, the appointing officials shall appoint successors for terms of five (5) years from the expiration date of the previous term.  A member appointed under this paragraph (b) may be removed from the board of trustees by a unanimous vote of the appointing officials or may be removed by a majority vote of the appointing officials upon receipt of a petition for removal signed by not less than seven (7) members of the board of trustees.  A member appointed under this paragraph (b) shall be eligible for reappointment.

          (c)  One (1) member who is a resident of Harrison County, Mississippi.  The member shall be appointed by a majority vote of the Board of Supervisors of Harrison County, Mississippi.  A member appointed under this paragraph (c) shall be appointed for an initial term of one (1) year.  Upon the expiration of an initial term of office, the appointing officials shall appoint successors for terms of five (5) years from the expiration date of the previous term.  A member appointed under this paragraph (c) may be removed from the board of trustees by a unanimous vote of the appointing officials or may be removed by a majority vote of the appointing officials upon receipt of a petition for removal signed by not less than seven (7) members of the board of trustees.  A member appointed under this paragraph (c) shall be eligible for reappointment.

          (d)  One (1) member who is a resident of Harrison County, Mississippi.  The member shall be appointed by a majority vote of the mayors of the municipalities located in Harrison County, Mississippi.  A member appointed under this paragraph (d) shall be appointed for an initial term of two (2) years.  Upon the expiration of an initial term of office, the appointing officials shall appoint successors for terms of five (5) years from the expiration date of the previous term.  A member appointed under this paragraph (d) may be removed from the board of trustees by a unanimous vote of the appointing officials or may be removed by a majority vote of the appointing officials upon receipt of a petition for removal signed by not less than seven (7) members of the board of trustees.  A member appointed under this paragraph (d) shall be eligible for reappointment.

          (e)  One (1) member who is a resident of Jackson County, Mississippi.  The member shall be appointed by a majority vote of the Board of Supervisors of Jackson County, Mississippi.  A member appointed under this paragraph (e) shall be appointed for an initial term of one (1) year.  Upon the expiration of an initial term of office, the appointing officials shall appoint successors for terms of five (5) years from the expiration date of the previous term.  A member appointed under this paragraph (e) may be removed from the board of trustees by a unanimous vote of the appointing officials or may be removed by a majority vote of the appointing officials upon receipt of a petition for removal signed by not less than seven (7) members of the board of trustees.  A member appointed under this paragraph (e) shall be eligible for reappointment.

          (f)  One (1) member who is a resident of Jackson County, Mississippi.  The member shall be appointed by a majority vote of the mayors of the municipalities located in Jackson County, Mississippi.  A member appointed under this paragraph (f) shall be appointed for an initial term of two (2) years.  Upon the expiration of an initial term of office, the appointing officials shall appoint successors for terms of five (5) years from the expiration date of the previous term.  A member appointed under this paragraph (f) may be removed from the board of trustees by a unanimous vote of the appointing officials or may be removed by a majority vote of the appointing officials upon receipt of a petition for removal signed by not less than seven (7) members of the board of trustees.  A member appointed under this paragraph (f) shall be eligible for reappointment.

          (g)  Three (3) members appointed by the Governor as follows:

              (i)  One (1) member who is a resident of Hancock County, Mississippi;

              (ii)  One (1) member who is a resident of Harrison County, Mississippi; and

              (iii)  One (1) member who is a resident of Jackson County, Mississippi.

     Of the members appointed by the Governor, one (1) member shall be appointed for an initial term of one (1) year, one (1) member shall be appointed for an initial term of two (2) years and one (1) member shall be appointed for an initial term of three (3) years.  Upon the expiration of an initial term of office, the Governor shall appoint successors for terms of five (5) years from the expiration date of the previous term.  A member appointed under this paragraph (g) shall serve at the will and pleasure of the Governor and may be removed from the board of trustees by the Governor.  A member appointed under this paragraph (g) shall be eligible for reappointment.

     A person appointed to fill a vacancy on the board of trustees shall be appointed in the same manner as for a regular appointment.

     (3)  Members of the board of trustees shall serve without compensation, but shall be reimbursed for each day's official duties of the board at the same per diem as established by Section 25-3-69, and actual travel and expenses as established by Section 25-3-41.

     (4)  The board of trustees shall annually elect one (1) member to serve as chair of the board and one (1) member to serve as vice chair of the board.  The vice chair shall act as chairman in the absence of or upon the disability of the chair or if there is a vacancy in the office of chair.

     (5)  All expenses of the board of trustees in carrying out its duties and responsibilities under this section, including the payment of per diem and expenses of the members of the board, shall be paid from funds in the Gulf Coast Restoration Fund.      SECTION 3.  (1)  The board of trustees of the fund shall issue a request for proposals for the selection of an administrator of the Gulf Coast Restoration Fund, and shall select the person submitting the best and most cost competitive proposal as the administrator of the fund.  The person selected as administrator is authorized to carry out any powers and duties delegated to the administrator by the board of trustees and shall handle all of the day-to-day matters relating to the fund.

     (2)  The board of trustees of the fund shall establish criteria, rules and procedures for accepting, reviewing and granting or denying applications for assistance under this act.

     (3)  Applicants who are eligible for assistance under this act from the board of trustees of the fund include, but are not limited to, local units of government, nongovernmental organizations, and institutions of higher learning, community colleges, local ports, airports, and public-private partnerships.

     (4)  Applications for assistance under this act will be received through web portals set up by the board of trustees of the fund.  The application packets shall be available on the web portals for download, completion and submittal.  The applications shall be reviewed, evaluated and scored by the administrator and the board of trustees and then presented to the legislative advisory committee for its evaluation and recommendations.  Each applicant must include in the application the "soft costs" and professional fees associated with the proposed project, such as planning, design, internal project management, financing, and legal, engineering and other professional fees.

     SECTION 4.  For the board of trustees of the fund, there is established a legislative advisory committee comprised of the members of the House of Representatives and the members of the Senate who represent any part of Hancock, Harrison and Jackson Counties.  The legislative advisory committee shall serve only in an advisory capacity in reviewing and evaluating applications for assistance under this act from the fund and may not take any action to approve or disapprove a decision of the board of trustees regarding the providing or denying of assistance.  The legislative advisory committee shall meet regularly to review and evaluate the projects being considered for funding by the board of trustees.  After having a reasonable time to review and evaluate an application for assistance from the fund, the legislative advisory committee shall return the application for assistance with its recommendations to the board of trustees, which shall have the final decision regarding the application for assistance.

     SECTION 5.  (1)  The board of trustees of the fund is empowered, on such terms and conditions as it may determine, to make loans, loan guarantees, grants and any other financial assistance under this act to applicants whose projects are approved for assistance by the board of trusteesFor providing assistance to projects under this section, the board of trustees shall establish criteria, rules and procedures for accepting, reviewing and granting or denying applications, and for terms and conditions of financial assistance under this act.  The board of trustees shall provide assistance only for projects that are primarily located in Hancock, Harrison or Jackson County.

     (2)  The board of trustees of the fund shall establish an application procedure for assistance under this act and a scoring process for the selection of projects that have the potential to generate increased economic activity in the counties involved, giving priority to: 

          (a)  Projects that will have a significant positive impact on the tax base, private sector job creation and private sector investment;

          (b)  Projects that support workforce development and training programs that result in both private and public sector job readiness;

          (c)  Projects that enhance the quality of life/place and business environment of a community or region, including tourism and recreational opportunities;

          (d)  Projects that expand high growth industries or establish new high growth industries in the region;

          (e)  Projects that leverage or further enhance key regional assets, including educational institutions, research facilities, and military bases;

          (f)  Infrastructure projects in existing industrial parks;

          (g)  Infrastructure projects for business retention and development; and

          (h)  Local match requirements for federal and state funded projects that enhance the economic competitiveness of a community.

     (3)  The board of trustees of the fund may provide assistance under this act as applications are received or may establish application periods for selection.  Assistance provided under this act may not be used to finance one hundred percent (100%) of any project.

     (4)  Contracts executed by the board of trustees of the fund with recipients of assistance under this act must include provisions requiring a performance report on the contracted activities, must account for the proper use of funds provided under the contract, and must include provisions for recovery of assistance if the assistance was based upon fraudulent information or the recipient of the assistance is not meeting the performance requirements of the assistance.  Recipients of assistance under this act must regularly report to the board of trustees the status of the project on a schedule determined by the board of trustees.

     SECTION 6.  (1)  The scope of a financial audit of recipients of assistance under this act shall include funds related to any year in which the recipient receives assistance under this act.  The scope of review for these funds shall include, but is not limited to, compliance with state and federal laws related to the receipt and expenditure of those funds.

     (2)  Once every two (2) years, the State Auditor shall conduct an operational audit of the recipients of assistance under this act to evaluate the performance of the recipient in administering laws, policies and procedures governing the expenditure of the assistance in an efficient and effective manner.  The scope of review shall include, but is not limited to, evaluating internal controls, internal audit functions, reporting and performance requirements required for use of the assistance, and compliance with state and federal law.  The audit shall include any funds that the recipient received from assistance under this act.

     (3)  In addition to the rules of the State Auditor, the State Auditor shall adopt rules for the form and conduct all financial audits performed by independent certified public accountants and for audits of recipients of assistance under this act.

     (4)  The State Auditor may report findings to the Secretary of the Treasury of the United States in addition to the reporting requirements under state law.

     (5)  The costs of the audits performed as provided in this section may be paid from the Gulf Coast Restoration Fund.

     SECTION 7.  The board of trustees of the fund shall file an annual report with the Governor, the Secretary of the Senate and the Clerk of the House of Representatives not later than December 1 of each year, including detailed information regarding at least the following specific areas:

          (a)  Receipts and expenditures of the funds received and provided as assistance under this act;

          (b)  Overview of applications reviewed and a detailed description of applications approved for assistance for the current year; and

          (c)  Schedule of all applications for which assistance was provided under this act detailing status of progress, start date, anticipated completion date, benchmark achievements, and any modifications to the original application after receipt of assistance.

     SECTION 8.  For the purposes of administering the funds received, expended and provided as assistance under this act, (a) the board of trustees of the fund shall be considered to be a public body and public entity, and shall be subject to all applicable provisions of state law applicable to public bodies and public entities with regard to the funds received, expended and provided as assistance under this act, and (b) the administrator of the fund shall be considered to be a public officer, and shall be subject to all applicable provisions of state law applicable to public officers with regard to the funds received, expended and provided as assistance under this act.

     SECTION 9.  (1)  There is created in the State Treasury a special fund to be designated as the "Mississippi Development Authority Key Programs Fund."  The special fund shall consist of funds required to be deposited into the special fund by Section 27-103-302, funds appropriated or otherwise made available by the Legislature in any manner, and funds from any other source designated for deposit into the special fund.  Unexpended amounts remaining in the special 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 special fund shall be deposited to the credit of the special fund.

     (2)  Monies in the special fund shall be used by the Mississippi Development Authority, upon appropriation by the Legislature, to provide additional funding for the following programs:

          (a)  Small Municipalities and Limited Population Counties Fund grant program established under Section 57-1-18;

          (b)  ACE Fund grant program established under Section 57-1-16;

          (c)  Mississippi Site Development Grant Fund program established under Section 57-1-701; and

          (d)  Business Investment Program established under Section 57-61-1 et seq.

     SECTION 10.  This act shall take effect and be in force from and after July 1, 2018, and shall stand repealed on June 30, 2018.

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