Bill Text: MS SB2675 | 2017 | Regular Session | Introduced
Bill Title: Mississippi Gulf Coast Economic Restoration Trust; create.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2017-01-31 - Died In Committee [SB2675 Detail]
Download: Mississippi-2017-SB2675-Introduced.html
MISSISSIPPI LEGISLATURE
2017 Regular Session
To: Appropriations
By: Senator(s) Tindell
Senate Bill 2675
AN ACT TO CREATE A PUBLIC BODY CORPORATE AND POLITIC TO BE DESIGNATED AS THE MISSISSIPPI GULF COAST ECONOMIC RESTORATION TRUST, WHICH IS DESIGNED TO BE A PILOT PROJECT FOR CREATION OF A PERPETUAL TRUST; TO PROVIDE THAT $25,000,000.00 OF THE FUNDS RECEIVED FROM THE BP ECONOMIC DAMAGES SETTLEMENT AGREEMENT BE APPROPRIATED TO THE MISSISSIPPI GULF COAST ECONOMIC RESTORATION TRUST; TO PROVIDE FOR A BOARD OF TRUSTEES TO SERVE AS THE GOVERNING BODY OF THE MISSISSIPPI GULF COAST ECONOMIC RESTORATION TRUST; 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 THE MISSISSIPPI DEPARTMENT OF MARINE RESOURCES FOR CERTAIN ADMINISTRATIVE SERVICES; TO PROVIDE FOR AN ECONOMIC RECOVERY ADVISORY BOARD; AND FOR OTHER 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 from 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 a pilot project to explore the best practices, manner and means necessary to carry out those purposes.
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 Trust, 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 Gulf Coast Economic Restoration 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 Gulf Coast Economic Restoration 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 following sum is appropriated out of any money to the credit of the Budget Contingency Fund out of the funds already received from the BP Settlement Agreement, and allocated in a manner as determined by the Treasurer's office, to defray the expense of the Mississippi Gulf Coast Economic Restoration Trust Fund........... $25,000,000.00.
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 as 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 lend 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; and
(n) Employ an Executive Director of the Trust, whose administrative office shall be located in the same building as the Executive Director of the Department of Marine Resources, which shall provide clerical and support services and facilities to the Executive Director of the Trust.
SECTION 5. Board of Trustees. (1) There is hereby established a Board of Trustees of the Trust which will serve as the governing authority of the Trust. The board shall use the Trust's property exclusively for the purposes defined in this act.
(2) The Board of Trustees of the Trust shall consist of three (3) members ("Trustees"). No Trustee shall be an elected official. The Trustees shall be appointed as follows:
(a) One (1) member shall be appointed by written consent of a supermajority of the President of the Hancock County Board of Supervisors and the mayors of the incorporated municipalities within Hancock County, with the supermajority defined as a number equal to the sum of one (1) plus the total number of incorporated municipalities within Hancock County minus one (1);
(b) One (1) member shall be appointed by written consent of a supermajority of the President of the Harrison County Board of Supervisors and the mayors of the incorporated municipalities within Harrison County, with the supermajority defined as a number equal to the sum of one (1) plus the total number of incorporated municipalities within Harrison County minus one (1);
(c) One (1) member shall be appointed by written consent of a supermajority of the President of the Jackson County Board of Supervisors and the mayors of the incorporated municipalities within Jackson County, with the supermajority defined as a number equal to the sum of one (1) plus the total number of incorporated municipalities within Jackson County minus one (1).
(3) All initial appointments shall be made no later than thirty (30) days after the effective date of this act, and no later than fifteen (15) days after the effective date of this act, the respective Presidents of the Boards of Supervisors of each county shall call a meeting and preside at the meeting of the President of the Board and all the mayors within the county for the purpose of considering the initial appointment of a Trustee from that county. The meeting of the President of the Board and the Mayors may continue from day to day until a selection is made. The vote shall be recorded by a written statement of consent of the required number to select the Trustee, and the statement shall be delivered to the Secretary of State to issue an official commission to the Trustee. The Board of Trustees shall annually elect one (1) member to serve as chairman of the board. The Board of Trustees shall meet as soon as practicable after appointments have been made, upon the call of the chairman, and shall organize for business.
(4) All actions of the Board of Trustees shall require unanimous consent of the three (3) members of the Board of Trustees.
(5) The term of office of the members of the Board of Trustees shall be for four (4) years, with the first term beginning on the thirty-first (31st) day after the effective date of this act. No later than thirty (30) days prior to the expiration of the initial term and each quadrennial term thereafter, the appointment of members of the Board of Trustees shall be made in the same manner as the initial appointments. Members shall be eligible for reappointment at the expiration of their terms. Vacancies shall be filled in the same manner as regular appointments to complete the remainder of the term of the member being replaced.
(6) 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, Mississippi Code of 1972, and actual travel and expenses as established by Section 25-3-41, Mississippi Code of 1972. All expenses of the Board of Trustees in carrying out its duties and responsibilities under this act, including the payment of per diem and expenses of the members of the board, shall be paid from the Trust.
(7) 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 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; and 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 under 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 with the Department of Marine Resources 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 Executive Director of the Trust shall be selected by and employed by the Board of Trustees. The Executive Director shall execute and supervise any contract needed for the operations of the Trust, subject to the rules, regulations and procedures established by the Board of Trustees. The Executive Director of the Trust shall have an office in the administrative offices of the Department of Marine Resources.
(2) The Executive Director of the Department of Marine Resources is empowered, by agreement with the Board of Trustees, to appoint personnel of the Department of Marine Resources to provide services to the Trust and to the Executive Director of the Trust. The Department of Marine Resources, or any successor entity, may, by agreement with the board, provide facilities, equipment and personnel services for the Trust and the Executive Director 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 Department of Marine Resources, under the direction of the Board of Trustees and the Executive Director 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 Department of Marine Resources for such services:
(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. 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 may 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. The Board of Trustees shall make reasonable efforts to assist projects that, in the aggregate, will yield a reasonable return on investment to the Trust in order to establish and maintain the Trust as a perpetual, economic development revolving fund. 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.
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 within one hundred eighty (180) days of the end of such fiscal year.
SECTION 10. Economic Recovery Advisory Board. There shall be an Economic Recovery Advisory Board ("Advisory Board") to make nonbinding, advisory reports and recommendations to the Board of Trustees, subject to rules and regulations established by the Board of Trustees. The Advisory Board shall be appointed for four-year terms coterminous with the members of the Board of Trustees and during the same time periods for the appointments of the Trustees. The Advisory Board shall be appointed by the Board of Trustees of the Trust, and the number of members of the Advisory Board shall be determined by the Board of Trustees.
SECTION 11. Effective date. This act shall take effect and be in force from and after its passage.
SECTION 12. This act shall take effect and be in force from and after its passage.
