Bill Text: MS SB2592 | 2016 | Regular Session | Introduced
Bill Title: Agricultural leases of prison lands; revise advertising and bidding procedure.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-02-23 - Died In Committee [SB2592 Detail]
Download: Mississippi-2016-SB2592-Introduced.html
MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Accountability, Efficiency, Transparency
By: Senator(s) Polk
Senate Bill 2592
AN ACT TO AMEND SECTION 47-5-66, MISSISSIPPI CODE OF 1972, TO REVISE THE ADVERTISING AND BIDDING PROCEDURE FOR AGRICULTURAL LEASES OF PRISON LANDS; TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO COMPILE AND MAINTAIN A LIST OF BUSINESSES THAT MAY BE INTERESTED IN COMPETING FOR SUCH LEASES AND TO SEND NOTICES TO THOSE BUSINESSES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 47-5-66, Mississippi Code of 1972, is amended as follows:
47-5-66. (1) Except as
provided in Section 47-5-64(3), it shall be the duty of the Department of
Finance and Administration, with the approval of the Public Procurement Review
Board, to lease lands at public contract upon the submission of two (2) or more
sealed bids to the Department of Finance and Administration after having
advertised the land for rent in newspapers of general circulation published in
Jackson, Mississippi; Memphis, Tennessee; the county in which the land is
located; and contiguous counties each for a period of not less than two
(2) successive weeks and in at least two (2) issued of the Mississippi
Market Bulletin. The * * *first publication shall be made not less than ten (10) days before the
date of the public contract, and the last publication shall be made
not * * * less
than * * * ten
(10) working days before * * * the date bids are to be received.
In addition to such advertisement, the Department of Finance and
Administration shall compile and maintain a list of the names of businesses
that may be interested in competing for such leases and send notices directly
to those businesses. Businesses that fail to respond to four (4) consecutive
bid invitations may be removed from the applicable bidders list after notice to
the bidder. During the bidding period, the Department of Corrections shall
schedule and provide access to the land to be leased to prospective bidders for
inspection. The Department of Finance and Administration may reject any
and all bids. If all bids on a tract or parcel of land are rejected, the
Department of Finance and Administration may then advertise for new bids on
that tract or parcel of land. Successful bidders shall take possession of
their leaseholds at the time authorized by the Department of Finance and
Administration. However, rent shall be due no later than the day upon which
the lessee shall assume possession of the leasehold, and shall be due on the
anniversary date for each following year of the lease. The Department of
Finance and Administration may provide in any lease that rent shall be paid in
full in advance or paid in installments, as may be necessary or appropriate.
In addition, the Department of Finance and Administration may accept, and the
lease may provide for, assignments of federal, state or other agricultural
support payments, growing crops or the proceeds from the sale thereof,
promissory notes, or any other good and valuable consideration offered by any
lessee to meet the rent requirements of the lease. If a promissory note is
offered by a lessee, it shall be secured by a first lien on the crop of the
lessee, or the proceeds from the sale thereof. The lien shall be filed
pursuant to Article 9 of the Uniform Commercial Code and Section 1324 of the
Food Security Act of 1985, as enacted or amended. If the note is not paid at
maturity, it shall bear interest at the rate provided for judgments and decrees
in Section 75-17-7 from its maturity date until the note is paid. The note
shall provide for the payment of all costs of collection and reasonable
attorney's fees if default is made in the payment of the note. The payment of
rent by promissory note or any means other than cash in advance shall be
subject to the approval of the Public Procurement Review Board, which shall
place the approval of record in the minutes of the board.
(2) There is created a special fund to be designated as the "Prison Agricultural Enterprises Fund" and to be used for the purpose of conducting, operating and managing the agricultural and nonagricultural enterprises of the department. Any monies derived from the leasing of Penitentiary lands, from the sales of timber as provided in Section 47-5-56, from the prison's agricultural enterprises or earmarked for the Prison Industries Fund shall be deposited to the special fund. However, fifteen percent (15%) of the monies derived from the leasing of Penitentiary lands under Section 47-5-64(3) shall be deposited to a special fund to be distributed annually on a student pro rata basis to the public schools located in Sunflower County by the Department of Finance and Administration.
(3) All profits derived from prison industries shall be placed in a special fund in the State Treasury to be known as the "Prison Industries Fund," to be appropriated each year by the Legislature to the nonprofit corporation, which is required to be organized under the provisions of Section 47-5-535, for the purpose of operating and managing the prison industries.
(4) The state shall have the rights and remedies for the security and collection of the rents given by law to landlords.
(5) Lands leased for agricultural purposes under Section 47-5-64(2) shall be subject to a fee-in-lieu of ad valorem taxes, including taxes levied for school purposes. The fee-in-lieu shall be Nine Dollars ($9.00) per acre. Upon the execution of the agricultural leases to private entities as authorized by Section 47-5-64(2), the Department of Finance and Administration shall collect the in lieu fee and shall forward the fees to the tax collector in which the land is located. The tax collector shall disburse the fees to the appropriate county or municipal governing authority on a pro rata basis. The sum apportioned to a school district shall not be less than the school district's pro rata share based upon the proportion that the millage imposed for the school district by the appropriate levying authority bears to the millage imposed by the levying authority for all other county or municipal purposes. Any funds obtained by the corporation as a result of sale of goods and services manufactured and provided by it shall be accounted for separate and apart from any funds received by the corporation through appropriation from the State Legislature. All nonappropriated funds generated by the corporation shall not be subject to appropriation by the State Legislature.
(6) Any land leased, as provided under Section 47-5-64(2), shall not be leased for an amount less than would be received if such land were to be leased under any federal loan program. In addition, all leases shall be subject to the final approval of the Public Procurement Review Board before such leases are to become effective.
SECTION 2. This act shall take effect and be in force from and after July 1, 2016.
