Bill Text: MS HB587 | 2011 | Regular Session | Introduced

Mississippi House Bill 587 (Prior Session Legislation)

Introduced

Bill Title: Dairy Stabilization Grant Program; create to provide grant assistance to certain milk producers.

Spectrum: Bipartisan Bill

Status: (Failed) 2011-02-23 - Died In Committee [HB587 Detail]

Download: Mississippi-2011-HB587-Introduced.html

MISSISSIPPI LEGISLATURE

2011 Regular Session

To: Agriculture; Appropriations

By: Representatives Dedeaux, Cockerham, Currie, Holland, Johnson, Moak, Morgan, Pigott, Ward

House Bill 587

AN ACT TO PROVIDE FOR THE CREATION OF THE DAIRY STABILIZATION GRANT PROGRAM; TO PROVIDE THAT THE DAIRY STABILIZATION GRANT PROGRAM SHALL BE ADMINISTERED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY; TO PROVIDE THAT RECIPIENTS OF GRANT FUNDS SHALL BE LIMITED TO MILK PRODUCERS WHO HAVE PREVIOUSLY RECEIVED A MILK PRODUCERS TRANSPORTATION COST ASSISTANCE LOAN; TO ESTABLISH THE MINIMUM APPLICATION REQUIREMENTS FOR MILK PRODUCERS APPLYING FOR A DAIRY STABILIZATION GRANT; TO PROVIDE THAT THE MAXIMUM GRANT AMOUNT RECEIVED BY A MILK PRODUCER SHALL NOT EXCEED THE AMOUNT OF THE ORIGINAL LOAN; TO IMPOSE CERTAIN RESTRICTIONS ON THE USE OF GRANT FUNDS; TO AUTHORIZE THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE STATE OF MISSISSIPPI FOR THE PURPOSE OF PROVIDING FUNDS FOR THE DAIRY STABILIZATION GRANT FUND; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) (a) There is created in the State Treasury a special fund to be designated as the Dairy Stabilization Grant Fund, which shall consist of money from any public or private source or any available and eligible special funds 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 interest earned on amounts in the fund shall be deposited to the credit of the fund. The purpose of the fund is to assist milk producers in the continued operation and maintenance of any existing dairy business or industry. Monies in the fund may be used to make grants to resident dairy producers that meet the criteria provided in this section, to assist any existing dairy business in its continued operation and maintenance.

(b) Monies in the fund that are derived from the proceeds of general obligation bonds may be used to reimburse reasonable actual and necessary costs incurred by the Mississippi Development Authority in administering the grant program under this section. A specific accounting of the actual costs incurred by a dairy producer, and for which reimbursement is sought under a grant, shall be maintained for each grant by the Mississippi Development Authority. Reimbursement of reasonable actual and necessary costs for a grant shall not exceed three percent (3%) of the proceeds of bonds issued for the grant. Monies authorized for a particular grant may not be used to reimburse administrative cost for unrelated grants. Reimbursements made under this subsection shall satisfy any applicable federal tax law requirements.

(2) The Mississippi Development Authority, using only existing staff and resources, shall establish the Dairy Stabilization Grant Program to make grants from the fund created under subsection (1) of this section. All eligible residents of this state who are engaged in the business of producing milk (milk producers), and who also made application for and received financial assistance under the Milk Producers Transportation Cost Assistance Loan Fund established under Section 69-34-1, may apply to the Mississippi Development Authority for a grant under this section in the manner provided in subsection (3) of this section.

(3) (a) Any eligible resident dairy producer desiring grant assistance under this section shall submit an application to the Mississippi Development Authority which shall include, at a minimum:

(i) Evidence that the dairy business or industry was a previous recipient of a Milk Producers Transportation Cost Assistance Loan;

(ii) A demonstration that the dairy business or industry is experiencing economic hardship in its continued operation and maintenance of dairy production;

(iii) A description, including the cost, of the requested assistance;

(iv) A description of the purpose for which the assistance is requested;

(v) A statement of what efforts have been made or are being made by the dairy business or industry for securing or qualifying for other local, state, federal or private funds for the business;

(vi) A two-year business plan;

(vii) Financial statements or tax returns for the three (3) years immediately before the application;

(viii) Credit reports pertaining to all persons or entities possessing a twenty percent (20%) or greater interest in the dairy business or industry; and

(ix) Any other information required by the Mississippi Development Authority.

(b) The Mississippi Development Authority shall require that binding commitments be entered into requiring that:

(i) The minimum requirements of this section and any other requirements as the Mississippi Development Authority considers proper shall be met; and

(ii) If those requirements are not met, then all or a portion of the funds provided by this section as determined by the Mississippi Development Authority shall be repaid.

(c) The Mississippi Development Authority, after consulting with the Department of Agriculture and Commerce, shall have sole discretion in the awarding of Dairy Stabilization Grant Program funds, provided that the dairy business or industry has met the statutory requirements of this section. However, in making grants under this section, the Mississippi Development Authority shall attempt to provide for an equitable distribution of dairy stabilization grants among each of the five (5) congressional districts of this state as those districts existed on January 1, 1996.

(5) The maximum grant amount that may be issued to a milk producer under this section shall not exceed one hundred percent (100%) of the amount of the original loan received under the Milk Producers Transportation Cost Assistance Loan Program. The receipt of a Dairy Stabilization Grant by a milk producer does not abrogate or cancel the outstanding amount remaining due and owing on any previous loan under the Milk Producers Transportation Cost Assistance Loan Program Grant funds shall not be used to subsidize the repayment of any debt to the State of Mississippi in violation of Section 258, Mississippi Constitution of 1890.

(6) The Mississippi Development Authority shall have all powers necessary to implement and administer the program established under this section, and shall promulgate rules and regulations consistent with the Mississippi Administrative Procedures Law necessary for the implementation of this section.

SECTION 2. (1) As used in this section, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:

(a) "Accreted value" of any bonds means, as of any date of computation, an amount equal to the sum of (i) the stated initial value of such bond, plus (ii) the interest accrued thereon from the issue date to the date of computation at the rate, compounded semiannually, that is necessary to produce the approximate yield to maturity shown for bonds of the same maturity.

(b) "State" means the State of Mississippi.

(2) (a) The commission, at one time, or from time to time, may declare by resolution the necessity for issuance of general obligation bonds of the State of Mississippi to provide funds for the Dairy Stabilization Grant Fund created in Section 1 of this act. Upon the adoption of a resolution by the Mississippi Development Authority, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this section, the Mississippi Development Authority shall deliver a certified copy of its resolution or resolutions to the commission. Upon receipt of such resolution, the commission, in its discretion, may act as the issuing agent, prescribe the form of the bonds, determine the appropriate method for sale of the bonds, advertise for and accept bids or negotiate the sale of the bonds, issue and sell the bonds so authorized to be sold and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The total amount of bonds issued under this section shall not exceed Ten Million Dollars ($10,000,000.00). No bonds authorized under this section shall be issued after July 1, 2012.

(b) The proceeds of bonds issued under this section shall be deposited into the Dairy Stabilization Grant Fund created in Section 1 of this act. Any investment earnings on bonds issued under this section shall be used to pay debt service on bonds issued under this section, in accordance with the proceedings authorizing issuance of such bonds.

(3) The principal of and interest on the bonds authorized under this section shall be payable in the manner provided in this section. Such bonds shall bear such date or dates, be in such denomination or denominations, bear interest at such rate or rates (not to exceed the limits set forth in Section 75-17-101, Mississippi Code of 1972), be payable at such place or places within or without the State of Mississippi, shall mature absolutely at such time or times not to exceed twenty-five (25) years from date of issue, be redeemable before maturity at such time or times and upon such terms, with or without premium, shall bear such registration privileges, and shall be substantially in such form, all as shall be determined by resolution of the commission.

(4) The bonds authorized by this section shall be signed by the chairman of the commission, or by his facsimile signature, and the official seal of the commission shall be affixed thereto, attested by the secretary of the commission. The interest coupons, if any, to be attached to such bonds may be executed by the facsimile signatures of such officers. Whenever any such bonds shall have been signed by the officials designated to sign the bonds who were in office at the time of such signing but who may have ceased to be such officers before the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the signatures of such officers upon such bonds and coupons shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially signing such bonds had remained in office until their delivery to the purchaser, or had been in office on the date such bonds may bear. However, notwithstanding anything herein to the contrary, such bonds may be issued as provided in the Registered Bond Act of the State of Mississippi.

(5) All bonds and interest coupons issued under the provisions of this section have all the qualities and incidents of negotiable instruments under the provisions of the Uniform Commercial Code, and in exercising the powers granted by this section, the commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.

(6) The commission shall act as issuing agent for the bonds authorized under this section, prescribe the form of the bonds, determine the appropriate method for sale of the bonds, advertise for and accept bids or negotiate sale of the bonds, issue and sell the bonds so authorized to be sold, pay all fees and costs incurred in such issuance and sale, and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The commission is authorized and empowered to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under this section from the proceeds derived from the sale of such bonds. The commission may sell such bonds on sealed bids at public sale or may negotiate the sale of the bonds for such price as it may determine to be for the best interest of the State of Mississippi. All interest accruing on such bonds so issued shall be payable semiannually or annually.

If such bonds are sold by sealed bids at public sale, notice of the sale shall be published at least one time, not less than ten (10) days before the date of sale, and shall be so published in one or more newspapers published or having a general circulation in the City of Jackson, Mississippi, selected by the commission.

The commission, when issuing any bonds under the authority of this section, may provide that bonds, at the option of the State of Mississippi, may be called in for payment and redemption at the call price named therein and accrued interest on such date or dates named therein.

(7) The bonds issued under the provisions of this section are general obligations of the State of Mississippi, and for the payment thereof the full faith and credit of the State of Mississippi is irrevocably pledged. If the funds appropriated by the Legislature are insufficient to pay the principal of and the interest on such bonds as they become due, then the deficiency shall be paid by the State Treasurer from any funds in the State Treasury not otherwise appropriated. All such bonds shall contain recitals on their faces substantially covering the provisions of this section.

(8) Upon the issuance and sale of bonds under the provisions of this section, the commission shall transfer the proceeds of any such sale or sales to the Dairy Stabilization Grant Fund created in Section 1 of this act, and the proceeds of such bonds shall be disbursed for the purposes provided in Section 1 of this act.

(9) The bonds authorized under this section may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions and things which are specified or required by this section. Any resolution providing for the issuance of bonds under the provisions of this section shall become effective immediately upon its adoption by the commission, and any such resolution may be adopted at any regular or special meeting of the commission by a majority of its members.

(10) The bonds authorized under the authority of this section may be validated in the Chancery Court of the First Judicial District of Hinds County, Mississippi, in the manner and with the force and effect provided by Chapter 13, Title 31, Mississippi Code of 1972, for the validation of county, municipal, school district and other bonds. The notice to taxpayers required by such statutes shall be published in a newspaper published or having a general circulation in the City of Jackson, Mississippi.

(11) Any holder of bonds issued under the provisions of this section or of any of the interest coupons pertaining thereto may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights granted under this section, or under such resolution, and may enforce and compel performance of all duties required by this section to be performed, in order to provide for the payment of bonds and interest thereon.

(12) All bonds issued under the provisions of this section shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi, and such bonds shall be legal securities which may be deposited with and shall be received by all public officers and bodies of this state and all municipalities and political subdivisions for the purpose of securing the deposit of public funds.

(13) Bonds issued under the provisions of this section and income therefrom shall be exempt from all taxation in the State of Mississippi.

(14) The proceeds of the bonds issued under this section shall be used solely for the purposes herein provided, including the costs incident to the issuance and sale of such bonds.

(15) The State Treasurer is authorized, without further process of law, to certify to the Department of Finance and Administration the necessity for warrants, and the Department of Finance and Administration is authorized and directed to issue such warrants, in such amounts as may be necessary to pay when due the principal of, premium, if any, and interest on, or the accreted value of, all bonds issued under this section; and the State Treasurer shall forward the necessary amount to the designated place or places of payment of such bonds in ample time to discharge such bonds, or the interest thereon, on the due dates thereof.

(16) This section shall be deemed to be full and complete authority for the exercise of the powers therein granted, but this section of this act shall not be deemed to repeal or to be in derogation of any existing law of this state.

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