Bill Text: MS SB2343 | 2012 | Regular Session | Introduced
Bill Title: MS Industry Incentive Financing Revolving Fund; loan repayments used to pay debt service if the balance exceeds $50,000,000.00.
Spectrum: Bipartisan Bill
Status: (Failed) 2012-04-30 - Died In Conference [SB2343 Detail]
Download: Mississippi-2012-SB2343-Introduced.html
MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Finance
By: Senator(s) Fillingane
Senate Bill 2343
AN ACT TO AMEND SECTION 57-1-221, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT REPAYMENTS OF LOANS MADE FROM THE MISSISSIPPI INDUSTRY INCENTIVE FINANCING REVOLVING FUND SHALL BE DEPOSITED TO THE CREDIT OF THE MISSISSIPPI INDUSTRY INCENTIVE FINANCING REVOLVING FUND UNTIL THE BALANCE IN THE FUND REACHES $50,000,000.00; TO PROVIDE THAT ONCE THE BALANCE IN THE FUND REACHES $50,000,000.00, REPAYMENTS OF SUCH LOANS SHALL BE DEPOSITED TO THE CREDIT OF FUND NO. 3951 IN THE STATE TREASURY TO PAY DEBT SERVICE ON BONDS UNTIL SUCH TIME AS THE BALANCE IN THE FUND FALLS BELOW $50,000,000.00; TO REQUIRE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO NOTIFY THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE OF THE APPROVAL OF ANY GRANT OR LOAN APPLICATION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 57-1-221, Mississippi Code of 1972, is amended as follows:
57-1-221. (1) As used in this section:
(a) "Approved business enterprise" means any project that:
(i) Locates or expands in this state and creates a minimum of two hundred fifty (250) new, full-time jobs with a total capital investment in the state of a minimum of Thirty Million Dollars ($30,000,000.00) in Tier 1 or Tier 2 counties;
(ii) Locates or expands in this state and creates a minimum of one hundred fifty (150) new, full-time jobs with a total capital investment in the state of a minimum of Fifteen Million Dollars ($15,000,000.00) in areas federally designated as low-income census tracts;
(iii) Locates or expands in this state and creates a minimum of one thousand (1,000) new, full-time jobs; or
(iv) Locates or expands in this state with significant regional impact as determined by MDA.
(b) "MDA" means the Mississippi Development Authority.
(c) "Facility related to the project" means and includes any of the following, as they may pertain to the project:
(i) Facilities to provide potable and industrial water supply systems, sewage and waste disposal systems and water, natural gas and electric transmission systems to the site of the project;
(ii) Building facilities and equipment necessary to operate the facility;
(iii) Rail lines;
(iv) Airports, airfields, air terminals and port facilities;
(v) Highways, streets and other roadways; and
(vi) Fire protection facilities, equipment and elevated water tanks.
(d) "Project" means any industrial, commercial, research and development, warehousing, distribution, transportation, processing, mining, United States government or tourism enterprise together with all real property required for construction, maintenance and operation of the enterprise that is approved by the MDA.
(2) (a) There is created a special fund in the State Treasury to be known as the Mississippi Industry Incentive Financing Revolving Fund which shall consist of money 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 interest earned on amounts in the fund shall be deposited to the credit of the fund. Money in the fund shall be disbursed by the Mississippi Development Authority for the purposes authorized in subsection (3) of this section.
(b) Money in the fund that is derived from the proceeds of general obligation bonds may be used to reimburse reasonable actual and necessary costs incurred by the MDA in providing grants or loans under this section through the use of general obligation bonds. An accounting of actual costs incurred for which reimbursement is sought shall be maintained for each grant or loan by the MDA. Reimbursement of reasonable actual and necessary costs for assistance shall not exceed three percent (3%) of the proceeds of bonds issued for such assistance. Reimbursements made under this subsection shall satisfy any applicable federal tax law requirements.
(3) The MDA shall establish a program to make grants or loans from the Mississippi Industry Incentive Financing Revolving Fund to local governments, including, but not limited to, counties, municipalities, industrial development authorities and economic development districts, and approved business enterprises to construct or otherwise provide facilities related to the project.
(4) (a) Any business enterprise or local government desiring a grant or loan under this section shall submit an application to the MDA which shall include, at a minimum:
(i) Evidence that the business or industry meets the definition of an approved business enterprise;
(ii) A description, including the cost, of the requested assistance;
(iii) A description of the purpose for which the assistance is requested; and
(iv) Any other information required by the MDA.
(b) The MDA shall require that binding commitments be entered into requiring that:
(i) The minimum requirements of this section and such other requirements as the MDA considers proper shall be met; and
(ii) If such requirements are not met, all or a portion of the funds provided by this section as determined by the MDA shall be repaid.
(c) Upon receipt of the application from a business enterprise or local government for a grant or loan under this section, the MDA shall determine whether the enterprise meets the definition of an approved business enterprise and determine whether to provide the assistance requested in the form of a grant or a loan.
(d) The MDA shall have sole discretion in providing grants or loans under this section. The terms of a grant or loan provided under this section and the manner of repayment of any loan shall be within the discretion of the MDA. Repayments of loans made under this section shall be deposited to the credit of the Mississippi Industry Incentive Financing Revolving Fund until the balance in the fund reaches Fifty Million Dollars ($50,000,000.00). Once the balance in the fund reaches Fifty Million Dollars ($50,000,000.00), repayments of loans under this section shall be deposited to the credit of Fund No. 3951 in the State Treasury to pay debt service on bonds until such time as the balance in the fund falls below Fifty Million Dollars ($50,000,000.00).
(e) The MDA shall notify the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee of the approval of any grant or loan application thirty (30) days prior to the disbursement of any money for the loan or grant from the Mississippi Industry Incentive Financing Revolving Fund. The notification shall identify the applicant and the purposes for which the loan or grant is made.
(5) (a) Contracts, by local governments, including, but not limited to, design and construction contracts, for the acquisition, purchase, construction or installation of a project shall be exempt from the provisions of Section 31-7-13 if:
(i) The MDA finds and records such finding on its minutes, that because of availability or the particular nature of a project, it would not be in the public interest or would less effectively achieve the purposes of this section to enter into such contracts on the basis of Section 31-7-13; and
(ii) The approved business enterprise that is involved in the project concurs in such finding.
(b) When the requirements of paragraph (a) of this subsection are met:
(i) The requirements of Section 31-7-13 shall not apply to such contracts; and
(ii) The contracts may be entered into on the basis of negotiation.
(6) It is the policy of the MDA and the MDA is authorized to accommodate and support any enterprise that receives a loan under this section for a project defined in Section 17-25-23 that wishes to have a program of diversity in contracting, and/or that wishes to do business with or cause its prime contractor to do business with Mississippi companies, including those companies that are small business concerns owned and controlled by socially and economically disadvantaged individuals. The term "socially and economically disadvantaged individuals" shall have the meaning ascribed to such term under Section 8(d) of the Small Business Act (15 USCS 637(d)) and relevant subcontracting regulations promulgated pursuant thereto; except that women shall be presumed to be socially and economically disadvantaged individuals for the purposes of this subsection.
(7) The MDA shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, for the implementation of this section.
SECTION 2. This act shall take effect and be in force from and after July 1, 2012.
