MISSISSIPPI LEGISLATURE
2018 Regular Session
To: Appropriations
By: Senator(s) Watson
AN ACT TO CREATE A PUBLIC BODY CORPORATE AND POLITIC TO BE DESIGNATED AS THE MISSISSIPPI COASTAL STRATEGIC INVESTMENT TRUST AND COASTAL STRATEGIC INVESTMENT FUND; TO PROVIDE THAT 80% OF ALL FUNDS RECEIVED AND TO BE RECEIVED BY THE STATE FROM THE BP ECONOMIC DAMAGES SETTLEMENT AGREEMENT, EXCEPT FOR THE AMOUNTS APPROPRIATED IN SENATE BILL NO. 2924, 2016 REGULAR SESSION, BE ASSIGNED TO THE MISSISSIPPI COASTAL STRATEGIC INVESTMENT FUND; TO PROVIDE FOR A BOARD OF TRUSTEES TO SERVE AS THE GOVERNING BODY OF THE COASTAL STRATEGIC INVESTMENT FUND; TO PROVIDE FOR THE COMPOSITION AND POWERS OF THE BOARD OF TRUSTEES; TO REQUIRE THAT THE BOARD OF TRUSTEES ESTABLISH CRITERIA AND RULES FOR APPLICATION FOR AND INVESTMENT OF FUNDS FOR ECONOMIC DEVELOPMENT PROJECTS OF REGIONAL SIGNIFICANCE TO CREATE NEW PERMANENT JOBS AND EXPANSION OF SALES AND INCOME TAX RECEIPTS FOR THE STATE TREASURY AND SALES AND PROPERTY TAX RECEIPTS FOR MUNICIPALITIES, COUNTIES AND SCHOOL DISTRICTS; TO PROVIDE THAT THE BOARD OF TRUSTEES MAY CONTRACT WITH A PRIVATE OR NONPROFIT ENTITY PURSUANT TO AN RFP FOR CERTAIN ADMINISTRATIVE SERVICES TO EVALUATE APPLICATIONS FROM LOCAL GOVERNMENTS, PUBLIC-PRIVATE PARTNERSHIPS AND BUSINESSES FOR PROJECTS THAT MAY BE FUNDED BY THE TRUST AND TO PROVIDE PROJECT MANAGEMENT FOR THE TRUST ACCORDING TO CRITERIA AND RULES ESTABLISHED BY THE BOARD OF TRUSTEES; TO AUTHORIZE THE TRUST TO EXECUTE CONTRACTS, LEASES, MORTGAGE OR PLEDGE PROPERTY AND ISSUE BONDS UNDER CERTAIN CONDITIONS, SECURED BY REVENUES THE TRUST MAY RECEIVE; TO PROVIDE FOR A COASTAL STRATEGIC INVESTMENT ADVISORY BOARD; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Legislative intent. It is declared by the Legislature that the funds received by the State of Mississippi's BP p.l.c. and related companies from and through the State of Mississippi's BP Economic Damages Settlement Agreement pertaining to civil actions brought against those companies by the State of Mississippi should be applied primarily toward economic restoration of the regional economy of the Mississippi Gulf Coast. It is the intent of the Legislature by this act to provide the manner and means necessary to carry out those purposes. By adoption of this act, the Legislature affirms its intention that out of the total of BP Economic Damages Settlement Agreement money deposited and to be deposited to the Budget Contingency Fund or any other fund, totaling Seven Hundred Fifty Million Dollars ($750,000,000.00) in varying receipts from FY20l6 through FY2033, less and except any amounts appropriated by Senate Bill No. 2924, 2016 Regular Session, and any amounts appropriated in the 2017 Regular Session, eighty percent (80%) of the total shall be deposited, as and when received, in and to the Mississippi Coastal Strategic Investment Fund, to be administered by the Board of Trustees of the Mississippi Coastal Strategic Investment Trust Fund.
SECTION 2. Definitions. For the purposes of this act, the following words shall have the meanings ascribed herein, unless the context otherwise requires:
(a) "Beneficiary" means every public-private partnership, individual, corporation, partnership, joint venture, association, trust, limited liability company, unincorporated organization, municipality, county, political subdivision of the state, public or private educational institution, public or private research institution, or other for-profit or not-for-profit entity to whom financial aid is provided pursuant to the provisions of this act.
(b) "BP Economic Damages Settlement Agreement" means the settlement of the litigation between the state and BP p.l.c. and related parties with respect to economic damages to the State of Mississippi arising out of the Deepwater Horizon Oil Spill.
(c) "Board" or "Board of Trustees" means the Board of Trustees of the Coastal Strategic Investment Trust Fund, and should said board be abolished, the board or entity succeeding the board in the performance of its functions, powers and duties.
(d) "Bonds" means bonds, notes or any other evidence of indebtedness.
(e) "Deepwater Horizon Oil Spill" means the oil spill occurring in the Gulf of Mexico caused by BP p.l.c. and related entities and other companies that began on April 20, 2010.
(f) "Public-private partnership" means any partnership, joint venture, or other business entity or public agency created by a combination of one or more privately owned businesses, educational institutions, or research institutions with one or more municipalities, counties, political subdivisions of the state, public educational institutions, or public research institutions.
(g) "Trust" means the Mississippi Coastal Strategic Investment Trust created pursuant to Section 3 of this act.
SECTION 3. Creation of the Trust. (1) (a) There is created an independent public body corporate and politic to be designated as the "Mississippi Coastal Strategic Investment Trust," hereafter in this act also referred to as "Trust." The Trust shall be a political subdivision of the state and not a state agency. The Trust is created solely to accomplish the purposes of the state under this act, and the exercise by the Trust of the powers conferred by this act shall be deemed and held to be the performance of an essential public function. The Trust and its corporate existence shall continue in perpetuity or until terminated by law; provided, however, that no such law of termination shall take effect so long as the Trust shall have bonds or other obligations outstanding, unless provision has been made for the full and complete payment thereof. Upon termination of the existence of the Trust, all its rights and properties shall pass to and be vested in the state.
(b) The Legislature hereby assigns all rights of the State of Mississippi to the receipt of each payment payable to the state pursuant to the State of Mississippi's BP Economic Damages Settlement Agreement, expected to total Seven Hundred Fifty Million Dollars ($750,000,000.00) in varying receipts beginning in FY2016 and continuing through FY2033, less and except any amounts appropriated by Senate Bill No. 2924, 2016 Regular Session, and any amounts appropriated in the 2017 Regular Session, as follows: (i) eighty percent (80%) to the Trust; and (ii) twenty percent (20%) to an account to be designated by the Legislature to be used by the state for workforce training, economic development and/or infrastructure projects in the state. The Trust is hereby granted absolute title to the Trust's respective shares of such payments, free of any liens, which shall be considered "general intangibles" for purpose of the Uniform Commercial Code as adopted in Mississippi. The Executive Director of the Department of Finance and Administration and the State Treasurer are hereby authorized to take all actions necessary and proper to disburse (i) all funds received prior to the effective date of this act from the BP Settlement Agreement, less and except any amounts appropriated by Senate Bill No. 2924, 2016 Regular Session, and any amounts appropriated in the 2017 Regular Session, in accordance with this act within thirty (30) days after the effective date of this act; and (ii) all funds received from the BP Settlement Agreement after the effective date of this act in accordance with this act within thirty (30) days after receipt of such funds by the state.
(2) By adoption of this act, the Legislature finds that any and all economic damages to the State of Mississippi resulting from the Deepwater Horizon Oil Spill resulted primarily from damages incurred by the people, businesses and governments in the Mississippi Gulf Coast economic region. The economic damages to the state were confined to lost sales, gaming, employment/income, fuel and other similar tax collections caused by the Deepwater Horizon Oil Spill. By assigning eighty percent (80%) of the entire remaining payments to be received by the state pursuant to the BP Economic Damages Settlement Agreement to the Trust to be used exclusively for economic development projects in the Mississippi Gulf Coast economic region, the Legislature expects that lost state tax collections caused by the Deepwater Horizon Oil Spill will, through economic restoration of the Mississippi Gulf Coast regional economy, be recaptured by the state and thereafter enlarged through restoring robust economic vitality and sustained business and industry growth throughout the Mississippi Gulf Coast regional economy that will thereby generate new tax revenue to the state in perpetuity.
SECTION 4. General powers of the Trust. The Board of Trustees shall have the powers, rights and duties of trustees as defined in the Mississippi Uniform Trust Code (Sections 91-8-101 through 91-8-1206, Mississippi Code of 1972), and in addition and supplementary thereto, the Trust shall also have and be able to exercise, through its Board of Trustees, all powers necessary or convenient to implement and carry out the purposes and provisions of this act, including, but not limited to, the following express powers:
(a) Sue and be sued, complain and defend, in the name of the Trust;
(b) Have an official seal, which may be altered by resolution, and to use it, or a facsimile of it, by impressing or affixing it or in any other manner reproducing it;
(c) Establish bank accounts in the name of the Trust in any qualified state depository into which the funds of the Trust shall be deposited and held except for such funds as are invested as permitted by this act;
(d) Contract for necessary goods and services, employ necessary personnel, and engage the services of consultants for administrative and technical assistance in carrying out its duties and responsibilities under this act;
(e) Enter into other contracts and/or agreements that the Board of Trustees determines to be necessary in carrying out its duties and responsibilities under this act;
(f) Receive and administer any gift, concession, loan or donation of any property or money, including, but not limited to, those made by the state or any agency or instrumentality thereof, and spend or lend the same or the income therefrom for any of its purposes and comply with all lawful conditions or requirements thereof;
(g) Provide to or on behalf of any beneficiary Trust funds under terms approved by the board;
(h) Pledge or assign any monies, revenues, fees or any other income, including all or part of the monies received or to be received from the Settlement Agreement;
(i) Borrow money and issue bonds or obligations of the Trust for any of its purposes, including, but not limited to, the financing of all or part of the costs and expenses of approved projects, and loan or otherwise provide funds to a beneficiary, including, but not limited to, the payment of all or part of any debt of said beneficiary or for any other purpose authorized by this act;
(j) In addition to its investments in Trust projects pursuant to this act, invest its funds in any of the investments permitted by Section 37-155-9, Mississippi Code of 1972, as amended, subject to the restrictions or limitations set forth therein and to applicable restrictions in any contract, resolution or indenture then in effect with respect to outstanding bonds of the Trust;
(k) Acquire through purchase, lease, donation or otherwise, any real or personal property, with or without improvements, with or without liens, and rights over lands, even though they are inferior to the full ownership thereof, in order to execute any of its powers and purposes;
(l) Retain, reacquire, or otherwise acquire the title to any real or personal property related to any Trust project that has been acquired with funds that the Trust has donated, granted, transferred or otherwise provided in favor of any beneficiary, and sell, lease, cede, donate, transfer or otherwise dispose of said real or personal property for those purposes that the board deems prudent and necessary to achieve the objectives of this act;
(m) Establish criteria, rules and procedures for accepting, reviewing and granting or denying applications for assistance under this act to achieve the objectives of this act. The board may sua sponte initiate projects by submitting applications that comply with the criteria, rules and procedures;
(n) Employ an administrator for the Trust pursuant to the Request for Proposals (RFP) procedure specified in Section 7 of this act.
SECTION 5. Board of Trustees. (1) There is hereby established a Board of Trustees of the Mississippi Coastal Strategic Investment Trust which will serve as the governing authority of the Trust. The board shall use the Trust's property exclusively for the purposes in this act.
(2) The Board of Trustees shall consist of nine (9) members as follows:
(a) Three (3) members appointed by the Governor as follows:
(i) One (1) member who shall be a resident of Hancock County, Mississippi;
(ii) One (1) member who shall be a resident of Harrison County, Mississippi; and
(iii) One (1) member who shall be 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 (a) 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 (a) shall be eligible for reappointment.
(b) One (1) member who shall be a resident of Hancock County, Mississippi. Such member shall be appointed by a majority vote of the Board of Supervisors of Hancock County, Mississippi. A member appointed under this paragraph (b) 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 (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 shall be a resident of Hancock County, Mississippi. Such 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 (c) 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 (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 shall be a resident of Harrison County, Mississippi. Such member shall be appointed by a majority vote of the Board of Supervisors of Harrison County, Mississippi. A member appointed under this paragraph (d) 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 (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 shall be a resident of Harrison County, Mississippi. Such 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 (e) 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 (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 shall be a resident of Jackson County, Mississippi. Such member shall be appointed by a majority vote of the Board of Supervisors of Jackson County, Mississippi. A member appointed under this paragraph (f) 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 (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) One (1) member who shall be a resident of Jackson County, Mississippi. Such 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 (g) 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 (g) 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 (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 chairman of the board and one (1) member to serve as vice chairman of the board. The vice chairman shall act as chairman in the absence of or upon the disability of the chairman or if there is a vacancy in the office of chairman.
(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 appropriated from the Mississippi Coastal Strategic Investment Trust for that purpose.
(6) The board and its members in their individual capacity, as well as the officials, agents and employees of the Trust, shall not incur civil liability for any action taken in good faith in the performance of their duties and responsibilities, pursuant to the provisions of this act, and they shall be compensated for all the costs they incur in relation to any claim for which they enjoy immunity according to these provisions. The board and its members in their individual capacity, as well as the officials, agents or employees of the Trust, shall be fully compensated for any civil liability adjudicated under the laws of the state and the laws of the United States of America, provided their actions and decisions have been made in good faith within the framework of their functions. For the defense of the board and its members against all such claims of civil liability, the state shall provide legal representation through the Office of the Attorney General and shall assume payment regarding any judgment against any member of the board who is sued for damages in his/her individual capacity when the cause of action is based on alleged violations of the civil rights of the defendant, or due to actions or omissions incurred in good faith in the course of his/her work and within the framework of his/her functions.
SECTION 6. Powers of the board. All powers of the Trust are vested in and shall be exercised by or under the authority of the Board of Trustees, and the business and affairs of the Trust shall be managed by or under the direction of the Board of Trustees. The Board of Trustees shall have all powers necessary or convenient to implement and carry out the purposes and provisions of this act, including, but not limited to, the following express powers:
(a) Act as governing authority of the Trust;
(b) Draft, adopt, amend and repeal bylaws, rules and regulations to govern its activities and those of the Trust; determine the eligibility of the proponents of projects to be benefited by the Trust funds and its internal operations; exercise and perform the powers and duties granted and imposed thereto by this act; authorize the accounting and disbursement of funds and other administrative operations in establishing the Trust;
(c) Establish the public policy and the objectives of the Trust in harmony with this act and approve the necessary operating standards and regulations;
(d) The Board of Trustees shall establish criteria, rules and procedures for accepting, reviewing and granting or denying applications for assistance consistent with this act. The board may sua sponte initiate projects by submitting applications that comply with the criteria, rules and procedures;
(e) Enter into agreements to achieve the objectives provided in this act, including, but not limited to, agreements for administration as provided in Section 7 of this act;
(f) The rules and regulations of the board are exempt from the Administrative Procedures Act.
SECTION 7. Administration. (1) The Trust shall be administered by an individual or private entity selected by the Board of Trustees. The Board of Trustees shall issue a Request for Proposals (RFP) under which the individual or entity may submit a contract for the administrative structure of the Trust and the administration of its services which shall include a provision for a director or chief executive officer and shall include a provision for the location of the administrative offices of the Trust.
(2) The Chief Executive Officer of the Trust is empowered, by agreement with the Board of Trustees, to appoint personnel to provide services to the Trust and to the Chief Executive Officer of the Trust. Any private or nonprofit entity, or any successor entity, may, by agreement with the Board of Trustees, provide facilities, equipment and personnel services for the Trust and the Chief Executive Officer of the Trust and by agreement with the Board of Trustees shall be compensated by the Trust for those expenses incurred specifically for facilities, equipment and personnel services to assist the Trust with the provisions of this act.
(3) The administrative offices of the Trust, under the direction of the Board of Trustees and the Chief Executive Officer of the Trust, may, by agreement with the Board of Trustees, perform the following services for the Trust, according to the rules and regulations of the Trust, for a fixed fee for each proposed project, provided such fees are limited to an amount sufficient only to cover costs incurred by the administrative offices for such services not to exceed three percent (3%) of the project grant:
(a) Receive and evaluate applications and applicants;
(b) Review proposed Trust projects for compliance with criteria set by the board;
(c) Administer award agreements with Beneficiaries, including recordkeeping, project supervision and monitoring of Trust projects for compliance with terms of the awards.
SECTION 8. Trust projects. (1) The Trust is empowered, on such terms and conditions as it may determine, to make equity investments (but only with a put option), construction and permanent loans, gap loans, loan guarantees, loan loss reserve guarantees, revenue guarantees, loans with delayed or contingent repayment schedules, and any other financial assistance that is reasonably expected to be recaptured by the Trust, in and to Beneficiaries whose projects are approved by the board for assistance. For assistance to trust projects under this act, the Board of Trustees shall establish criteria, rules and procedures for accepting, reviewing and granting or denying applications, for terms and conditions of financial assistance, including, but not limited to, interest (if any), security (if any), and for physical location or locations of real and personal property of trust projects, to achieve the purposes of this act. Public infrastructure projects may qualify as trust projects, if the project meets Trust criteria for financial assistance that is reasonably expected to be recaptured by the Trust. The board may sua sponte initiate projects by submitting applications that comply with the criteria, rules and procedures. Among other criteria that shall be considered by the Board of Trustees, applications for equity investments, loans, loan guarantees, revenue guarantees, loan loss reserve guarantees, and any other financial assistance that is reasonably expected to be recaptured by the Trust for projects under this act should describe the project's ability to leverage additional funds and financial assistance, should provide a benefit/cost analysis and return-on-investment calculation that would reasonably demonstrate, in the discretion of the board, that the likely economic impact of the project-generated tax collections by Mississippi state and local governments would be greater than the initial dollars invested by the Trust. Projects should have a reasonably significant economic impact on the regional economy of the Mississippi Gulf Coast and should be reasonably transformative in nature, thus allowing the invested funds to be capital investments in economic recovery and growth opportunities for the Mississippi Gulf Coast regional economy and the economy of the state. No proposed project shall be approved if the total "soft costs" of such proposed project (i.e., planning, design, internal project management, financing and professional fees and the like) exceed ten percent (10%) of the cost of the project; provided, however, if upon sufficient and reasonable evidence submitted by the applicant (beneficiary), the board finds and determines that total soft costs for a project must exceed ten percent (10%) of the project in order for the project to be feasible and financeable and that "but for" soft costs exceeding ten percent (10%) of the project the project cannot reasonably be completed, the board may authorize specific soft costs in a total amount not to exceed twenty-five percent (25%) of the project. The board shall establish criteria for a beneficiary's procurement of professional services in connection with the project, regardless of whether Trust funds are used to pay such costs.
(2) The Trust shall establish an application procedure for awards and a scoring process for the selection of projects and programs that have the potential to generate increased economic activity in the disproportionately affected counties, giving priority to projects and programs that:
(a) Generate maximum estimated economic benefits, based on tools and models not generally employed by economic input-output analyses, including cost-benefit, return-on-investment, or dynamic scoring techniques to determine how the long-term economic growth potential of the disproportionately affected counties may be enhanced by the investment.
(b) Increase household income in the disproportionately affected counties above national average household income.
(c) Expand high growth industries or establish new high growth industries in the region. Industries that are supported must have strong growth potential in the disproportionately affected counties. An industry's growth potential is defined based on a detailed review of the current industry trends nationally and the necessary supporting asset base for that industry in the disproportionately affected counties region.
(d) Leverage or further enhance key regional assets, including educational institutions, research facilities, and military bases.
(e) Partner with local governments to provide funds, infrastructure, land, or other assistance for the project.
(f) Have investment commitments from private equity or private venture capital funds.
(g) Provide or encourage seed stage investments in start-up companies.
(h) Provide advice and technical assistance to companies on restructuring existing management, operations, or production to attract advantageous business opportunities.
(i) Benefit the environment in addition to the economy.
(j) Provide outcome measures for programs of excellence support, including terms of intent and metrics.
(3) The Trust may make awards as applications are received or may establish application periods for selection. Awards may not be used to finance one hundred percent (100%) of any project or program. The Trust may require a one-to-one private-sector match or higher for an award, if applicable and deemed prudent by the board of directors. An awardee may not receive all of the earnings or available principal in any given year.
(4) A contract executed by the Trust with an awardee 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 awards in the event the award was based upon fraudulent information or the awardee is not meeting the performance requirements of the award. Awardees must regularly report to the Trust the status of the project or program on a schedule determined by the corporation.
SECTION 9. Financial controls and reports. (1) All monies of the Trust not invested in a trust project or projects shall be deposited in qualified state depositories and maintained in a separate account or accounts in the name of the Trust. Disbursements shall be made according to the regulations and budgets approved by the Trust.
(2) The Trust shall establish, according to generally accepted public accounting principles, the accounting system required for the proper control and recording of all deposit accounts, invested funds, other assets and liabilities, income and expenses belonging to, managed, incurred or controlled by the Trust. The accounting procedures of the Trust shall be maintained in such a way that the accounts may be properly identified and kept separately, as advisable, in relation to the various types of businesses, projects and activities of the Trust.
(3) The Trust shall be audited annually, at the expense of the Trust, by the State Auditor or by an independent auditor approved by the State Auditor.
(4) The Trust shall render a report to the Legislature which shall include the following:
(a) A copy of the annual audit and a complete report of the activities of the Trust for the previous fiscal year.
(b) A complete and detailed list of all assistance granted, contracts executed and transactions conducted during the fiscal year corresponding to the report.
(c) The report for the previous fiscal year shall be submitted by the board to the Legislature with one hundred eighty (180) days of the end of such fiscal year.
SECTION 10. Bonds. (1) The Trust may negotiate and execute contracts, leases and all other necessary or convenient instruments and agreements with any person, in order to exercise the powers and functions conferred upon the Trust by this act. The Trust may also mortgage or pledge any property to pay the principal and the interest on any bonds issued by the Trust or bonds issued by a beneficiary, and pledge all or part of the revenues the Trust may receive, including, but not limited to, the funds proceeding from the BP Settlement Agreement.
(2) The Trust is hereby authorized to issue bonds from time to time for such principal amounts which in the opinion of the board are needed to provide sufficient funds to finance the activities, purposes or ends of the Trust, including, but not limited to, all expenses for the development and design of infrastructure and other improvements related to Trust projects, to repay obligations of, or provide financial assistance to the state and its political subdivisions and instrumentalities that provide the infrastructure and other improvements related to Trust projects, to pay interest on its bonds for the period determined by the Trust, and to pay such other expenses of the Trust or Beneficiaries including, but not limited to, working capital, which are incidental, necessary or convenient to achieve its corporate purposes and powers, and to pay any expenses for the issuance of, and establish reserves to secure, said bonds. The Trust may also issue bonds to acquire obligations of any beneficiary.
(a) The bonds issued by the Trust may be made payable from the total or part of the gross or net revenues and from other revenues derived by the Trust which may include the some or all of the payments under the Settlement Agreement assigned to the Trust, all as provided in the indenture or resolution under which the bonds are issued. The principal of and interest on the bonds issued by the Trust may be secured by pledging any Trust revenues, which may include some or all of the payments under the Settlement Agreement made available to the Trust, all as provided in the indenture or resolution under which the bonds are issued.
(b) The bonds may be authorized by means of a resolution or resolutions of the board. The same may be issued in, series, bear such a date or dates, become due in the term or terms not to exceed twenty (20) years from their respective dates of issue and accrue interest, if any, at such interest rate or rates (which may be fixed or variable), that do not exceed the maximum rate then allowed by law.
(c) The proceeds of the sale of every bond issue shall be disbursed in the manner and under the restrictions, if any, provided by the Trust in the resolution or resolutions authorizing the issue of bonds or in the indenture or agreement which secures said bonds.
(d) The Trust bonds bearing the signature of the Trust officials who exercise the duties of their office on the date the bonds are signed shall constitute valid and binding obligations even when prior to the delivery and payment of said bonds, any or all officials whose signatures or facsimiles thereof appear in the same have ceased being officials of the Trust. Neither the members of the Board of the Trust nor any person granting the bonds shall be personally liable for said bonds, nor shall they he subject to any civil liability whatsoever for the issue of said bonds.
(e) The Trust bonds may be validated pursuant to applicable provisions of Section 37-155-9, Mississippi Code of 1972, as amended.
(3) The Trust is hereby authorized to issue refinancing bonds of the Trust in order to refinance those bonds in effect and outstanding at that time, and which have been issued under the provisions of this act, including the payment of any redemption premium with regard to the same and any interest accrued or to be accrued as of the date of redemption or maturity of said bonds and, should the Trust deem it advisable, for any of the purposes for which it can issue bonds.
(4) At the discretion of the Trust, any bonds issued under the provisions of this act may be secured by an indenture by and between the Trust and any bank or trust company operating in the state.
(5) The State of Mississippi is committed to and agrees with the holders of any bonds issued under this act and with the persons and entities that enter into contracts with the Trust pursuant to the provisions of this act, that:
(a) It shall irrevocably order the Executive Director of the Department of Finance and Administration and the State Treasurer to transfer the portion of the BP Settlement Agreement payments assigned to the Trust according to the provisions of Section 3(1)(b) of this act, directly in favor of the Trust or its assignee;
(b) It shall defend the rights of the Trust and its assignees to receive said payments assigned to the Trust;
(c) It shall not amend, or acquiesce in the amendment of, the BP Settlement Agreement in a way that may materially alter the rights of the bondholders or of those persons and entities that enter into contracts with the Trust;
(d) It shall not limit or alter the rights of the Trust to meet the terms of its agreements with said bondholders or with contracting persons or entities; and
(e) It shall not limit or alter the rights hereby assigned and conferred to the Trust until all bonds of the Trust and the interest thereon have been fully satisfied and said contracts have been totally complied with and honored by the Trust. The Trust, in its capacity as the agent of the state, is hereby authorized to include this promise of the State of Mississippi in said bonds or contracts.
(6) The bonds of the Trust shall constitute lawful investments and may be accepted as collateral for fiduciary, trust and public funds, whose investment or deposit is under the authority or the control of the state or of any official or officials thereof or any political subdivision thereof.
(7) It is hereby resolved and declared that the purpose for which the Trust was created and for which it shall exercise its powers are public purposes for the benefit of the people of the state, and that the exercise of the powers conferred under this act constitute essential government functions. The Trust shall therefore be exempt from the payment of all taxes imposed by the state or its political subdivisions. Interest on the bonds issued by the Trust under the provisions of this act, and any profits obtained from their sale, shall he and remain at all times exempted from the payment of all taxes imposed by the state or any of its political subdivisions.
(8) The bonds issued by the Trust shall not constitute a debt of the state nor of any of its instrumentalities or political subdivisions other than the Trust and neither the state nor its instrumentalities or political subdivisions shall be liable for the same, and said bonds shall be only payable from those funds pledged for their payment by the Trust.
(9) The Board of Trustees shall establish criteria, rules and regulations for competitive procurement of professional services and issuance costs pertaining to all bonds and financial instruments issued or made by the Trust, and shall use commercially reasonable and prudent judgment to minimize issuance costs through competitive selection processes consistent with state law.
SECTION 11. Coastal Strategic Investment Advisory Board. (1) There is established a Coastal Strategic Investment Legislative Advisory Review Board comprised of the following persons: (a) the members of the House of Representatives representing House Districts 93, 95, 107, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121 and 122, respectively; and (b) the members of the Senate representing Senate Districts 46, 47, 48, 49, 50, 51 and 52, respectively. The legislative advisory board shall serve only in an advisory capacity in reviewing recommendations for assistance made by the Chief Executive Officer of the Trust and may not take any action to approve or disapprove a recommendation for assistance. After having a reasonable time to review a recommendation for assistance made by the Chief Executive Officer of the Trust, the legislative advisory board shall return the recommendation to the Chief Executive Officer of the Trust and the Chief Executive Officer of the Trust shall forward the recommendation for assistance to the Board of Trustees.
(2) The Board of Trustees shall review a recommendation for assistance prepared by the Chief Executive Officer of the Trust and determine whether the applicant should receive assistance under Section 7 of this act. In order to approve a recommendation for assistance, not less than seven (7) members of the Board of Trustees must vote in favor of such approval. If the Board of Trustees determines that an applicant should receive assistance and votes to approve a recommendation for assistance, then the Board of Trustees shall prepare an approval of recommendation for assistance. An approval of recommendation for assistance by the Board of Trustees shall provide the purpose for which the assistance is to be provided, the type of assistance to be provided in the form of applicable loan or grant funds, the amount of assistance to be provided, whether the applicant must provide matching funds and any other information determined necessary by the Board of Trustees. The Board of Trustees shall provide its approval of recommendation for assistance to the Chief Executive Officer of the Trust and the Chief Executive Officer of the Trust shall use funds from the Mississippi Coastal Strategic Investment Fund for the purpose of providing the assistance.
(3) The Chief Executive Officer of the Trust shall establish a procedure to monitor performance and ensure conformity to the original commitments for all recipients of assistance under this act. The Chief Executive Officer of the Trust shall require performance measures for each award of assistance to ensure a return on a project is achieved. The Chief Executive Officer of the Trust shall take all actions necessary, including, but not limited to, suspension of disbursement of assistance, to ensure any assistance awarded meets or exceeds any original application of assistance.
(4) The Chief Executive Officer of the Trust 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 under this act used for administration of the Mississippi Coastal Strategic Investment Fund;
(b) Overview of applications reviewed and a detailed description of applications approved by the Board of Trustees for assistance for the current year;
(c) Schedule of all applications awarded funds 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; and
(d) Statement from the Chief Executive Officer of the Trust regarding effectiveness and efficiency of the Mississippi Coastal Strategic Investment Fund and documenting any recommendations to ensure goals of the fund are achieved. The Chief Executive Officer of the Trust shall also provide any areas of concern with past, present, and future administration of the fund.
(5) The Chief Executive Officer of the Trust shall have all powers necessary to implement and administer the provisions of this section.
SECTION 12. This act shall take effect and be in force from and after its passage.