MISSISSIPPI LEGISLATURE REGULAR SESSION 2019 By

H. B. No. 1228 *HR26/R1604* ~ OFFICIAL ~ G1/2

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To: Ways and Means

MISSISSIPPI LEGISLATURE REGULAR SESSION 2019 By: Representative Smith

HOUSE BILL NO. 1228

AN ACT TO AMEND SECTIONS 57-1-16, 57-1-18, 57-1-221, 1 57-1-421, 57-1-601, 57-1-701, 57-46-1, 57-61-25, 57-85-5, 57-93-1, 2 57-95-1, 57-111-1 AND 65-4-15, MISSISSIPPI CODE OF 1972, TO REVISE 3 THE PROCEDURE BY WHICH UP TO 3% OF BOND PROCEEDS IN VARIOUS FUNDS 4 MAY BE USED TO REIMBURSE THE MISSISSIPPI DEVELOPMENT AUTHORITY FOR 5 COSTS INCURRED IN THE ADMINISTRATION OF VARIOUS GRANT, LOAN AND 6 FINANCIAL INCENTIVE PROGRAMS, TO ALLOW THE MISSISSIPPI DEVELOPMENT 7 AUTHORITY TO APPLY THE PROCEEDS FOR REIMBURSEMENT ACROSS FUNDS AND 8 PROGRAMS; AND FOR RELATED PURPOSES. 9

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 10

SECTION 1. Section 57-1-16, Mississippi Code of 1972, is 11

amended as follows: 12

57-1-16. (1) As used in this section: 13

(a) "Extraordinary economic development opportunity" 14

means a new or expanded business or industry which maintains a 15

strong financial condition and minimal credit risk and creates 16

substantial employment, particularly in areas of high 17

unemployment. 18

(b) "Local economic development entities" means state 19

institutions of higher learning or public or private nonprofit 20

local economic development entities including, but not limited to, 21

H. B. No. 1228 *HR26/R1604* ~ OFFICIAL ~

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chambers of commerce, local authorities, commissions or other 22

entities created by local and private legislation or districts 23

created pursuant to Section 19-5-99. 24

(c) "MDA" means the Mississippi Development Authority. 25

(2) (a) There is hereby created in the State Treasury a 26

special fund to be designated as the ACE Fund, which shall consist 27

of money from any public or private source designated for deposit 28

into such fund. Unexpended amounts remaining in the fund at the 29

end of a fiscal year shall not lapse into the State General Fund, 30

and any interest earned on amounts in the fund shall be deposited 31

to the credit of the fund. The purpose of the fund shall be to 32

assist in maximizing extraordinary economic development 33

opportunities related to any new or expanded business or industry 34

or to assist a local unit of government as authorized in 35

subsection (5) of this section. Such funds may be used to make 36

grants to local economic development entities to assist any new or 37

expanding business or industry that meets the criteria provided in 38

this section when such assistance aids the consummation of a 39

project within the State of Mississippi, or to make grants to a 40

local unit of government as authorized in subsection (5) of this 41

section. 42

(b) Monies in the fund which are derived from the 43

proceeds of general obligation bonds may be used to reimburse 44

reasonable actual and necessary costs incurred by the MDA * * * 45

for the administration of the various grant, loan and financial 46


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incentive programs administered by the MDA. An accounting of 47

actual costs incurred for which reimbursement is sought shall be 48

maintained * * * by the MDA. Reimbursement of reasonable actual 49

and necessary costs * * * shall not exceed three percent (3%) of 50

the proceeds of bonds issued * * *. * * * Reimbursements made 51

under this subsection shall satisfy any applicable federal tax law 52

requirements. 53

(3) The MDA shall establish a grant program to make grants 54

from the ACE Fund created under this section. Local economic 55

development entities may apply to the MDA for a grant under this 56

section in the manner provided for in subsection (4) of this 57

section. Local units of government may apply to the MDA for a 58

grant under this section in the manner provided in subsection (5) 59

of this section. 60

(4) (a) Any business or industry desiring assistance from a 61

local economic development entity under this section shall submit 62

an application to the local economic development entity which 63

shall include, at a minimum: 64

(i) Evidence that the business or industry meets 65

the definition of an extraordinary economic development 66

opportunity; 67

(ii) A demonstration that the business or industry 68

is at an economic disadvantage by locating the new or expanded 69

project in the county; 70


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(iii) A description, including the cost, of the 71

requested assistance; 72

(iv) A description of the purpose for which the 73

assistance is requested; 74

(v) A two-year business plan; 75

(vi) Financial statements or tax returns for the 76

three (3) years immediately prior to the application; 77

(vii) Credit reports on all persons or entities 78

with a twenty percent (20%) or greater interest in the business or 79

industry; and 80

(viii) Any other information required by the MDA. 81

(b) The MDA shall require that binding commitments be 82

entered into requiring that: 83

(i) The minimum requirements of this section and 84

such other requirements as the MDA considers proper shall be met; 85

and 86

(ii) If such requirements are not met, all or a 87

portion of the funds provided by this section as determined by the 88

MDA shall be repaid. 89

(c) Upon receipt of the application from a business or 90

industry, the local economic development entity may apply to the 91

MDA for assistance under this section. Such application must 92

contain evidence that the business or industry meets the 93

definition of an extraordinary economic development opportunity, a 94

demonstration that the business or industry is at an economic 95


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disadvantage by locating the new or expanded project in the 96

county, a description, including the cost, of the requested 97

assistance, and a statement of what efforts have been made or are 98

being made by the business or industry for securing or qualifying 99

for other local, state, federal or private funds for the project. 100

(d) The MDA shall have sole discretion in the awarding 101

of ACE funds, provided that the business or industry and the local 102

economic development entity have met the statutory requirements of 103

this section. However, in making grants under this section, the 104

MDA shall attempt to provide for an equitable distribution of such 105

grants among each of the congressional districts of this state in 106

order to promote economic development across the entire state. 107

(5) (a) The MDA may make grants to local units of 108

government to assist the local unit of government in purchasing 109

real property for the benefit of an existing industry that commits 110

to maintain a minimum of one thousand three hundred (1,300) jobs 111

for a minimum of ten (10) years after the date the grant is made. 112

(b) Any local unit of government seeking a grant 113

authorized under this subsection shall apply to MDA. The 114

application shall contain such information as the MDA may require. 115

(c) The MDA shall require that binding commitments be 116


(i) The minimum requirements of this subsection 118

and such other requirements as the MDA considers proper shall be 119

met; and 120


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(6) The MDA shall promulgate rules and regulations, in 124

accordance with the Mississippi Administrative Procedures Law, for 125

the implementation of this section. However, before the 126

implementation of any such rules and regulations, they shall be 127

submitted to a committee consisting of five (5) members of the 128

Senate Finance Committee and five (5) members of the House of 129

Representatives Ways and Means Committee, appointed by the 130

respective committee chairmen. 131



57-1-18. (1) For the purposes of this section, the 134

following terms shall have the meanings ascribed in this section 135

unless the context clearly indicates otherwise: 136

(a) "Limited population county" means a county in the 137

State of Mississippi with a population of thirty thousand (30,000) 138

or less according to the most recent federal decennial census at 139

the time the county submits its application to the MDA under this 140

section. 141

(b) "MDA" means the Mississippi Development Authority. 142

(c) "Project" means highways, streets and other 143

roadways, bridges, sidewalks, utilities, airfields, airports, 144

acquisition of equipment, acquisition of real property, 145


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development of real property, improvements to real property, and 146

any other project approved by the MDA. 147

(d) "Small municipality" means a municipality in the 148

State of Mississippi with a population of ten thousand (10,000) or 149

less according to the most recent federal decennial census at the 150

time the municipality submits its application to the MDA under 151

this section. The term "small municipality" also includes a 152

municipal historical hamlet as defined in Section 17-27-5. 153


special fund to be designated as the "Small Municipalities and 155

Limited Population Counties Fund," which shall consist of funds 156

appropriated or otherwise made available by the Legislature in any 157

manner and funds from any other source designated for deposit into 158

such fund. Unexpended amounts remaining in the fund at the end of 159

a fiscal year shall not lapse into the State General Fund, and any 160

investment earnings or interest earned on amounts in the fund 161

shall be deposited to the credit of the fund. Monies in the fund 162

shall be used to make grants to small municipalities and limited 163

population counties or natural gas districts created by law and 164

contained therein to assist in completing projects under this 165

section. 166

(b) Monies in the fund which are derived from proceeds 167

of bonds issued under Sections 1 through 16 of Chapter 538, Laws 168

of 2002, Sections 1 through 16 of Chapter 508, Laws of 2003, 169

Sections 55 through 70 of Chapter 1, Laws of 2004 Third 170


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Extraordinary Session, Sections 1 through 16 of Chapter 482, Laws 171

of 2006, Section 15 of Chapter 580, Laws of 2007, Section 1 of 172

Chapter 503, Laws of 2008, Section 42 of Chapter 557, Laws of 173

2009, Section 38 of Chapter 533, Laws of 2010, Section 41 of 174


2013, Section 4 of Chapter 530, Laws of 2014, Section 11 of 176


2016, or Section 5 of Chapter 452, Laws of 2018, may be used to 178

reimburse reasonable actual and necessary costs incurred by the 179

MDA * * * for the administration of the various grant, loan and 180

financial incentive programs administered by the MDA. An 181

accounting of actual costs incurred for which reimbursement is 182

sought shall be maintained * * * by the MDA. Reimbursement of 183

reasonable actual and necessary costs * * * shall not exceed three 184

percent (3%) of the proceeds of bonds issued * * *. * * * 185

Reimbursements under this subsection shall satisfy any applicable 186

federal tax law requirements. 187

(3) The MDA shall establish a grant program to make grants 188

to small municipalities and limited population counties from the 189

Small Municipalities and Limited Population Counties Fund. Grants 190

made under this section to a small municipality or a limited 191

population county shall not exceed Two Hundred Fifty Thousand 192

Dollars ($250,000.00) during any grant period established by the 193

MDA. A small municipality or limited population county may apply 194


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to the MDA for a grant under this section in the manner provided 195

for in this section. 196

(4) A small municipality or limited population county 197

desiring assistance under this section must submit an application 198

to the MDA. The application must include a description of the 199

project for which assistance is requested, the cost of the project 200

for which assistance is requested, the amount of assistance 201

requested and any other information required by the MDA. 202

(5) The MDA shall have all powers necessary to implement and 203

administer the program established under this section, and the 204

department shall promulgate rules and regulations, in accordance 205

with the Mississippi Administrative Procedures Law, necessary for 206

the implementation of this section. 207

(6) The MDA shall file an annual report with the Governor, 208

the Secretary of the Senate and the Clerk of the House of 209

Representatives not later than December 1 of each year, describing 210

all assistance provided under this section. 211




(a) "Approved business enterprise" means any project 215

that: 216

(i) Locates or expands in this state and creates a 217

minimum of two hundred fifty (250) new, full-time jobs with a 218


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total capital investment in the state of a minimum of Thirty 219

Million Dollars ($30,000,000.00) in Tier 1 or Tier 2 counties; 220

(ii) Locates or expands in this state and creates 221

a minimum of one hundred fifty (150) new, full-time jobs with a 222

total capital investment in the state of a minimum of Fifteen 223

Million Dollars ($15,000,000.00) in areas federally designated as 224

low-income census tracts; 225

(iii) Locates or expands in this state and creates 226

a minimum of one thousand (1,000) new, full-time jobs; 227

(iv) Is a manufacturer of high-end kitchen 228

appliances having at least four hundred (400) employees working at 229

its Mississippi facilities on January 1, 2015, and with a capital 230

investment of at least Five Million Dollars ($5,000,000.00) made 231

after July 1, 2014, through four (4) years after July 1, 2015, 232

that expands in this state, and retains a minimum of four hundred 233

(400) jobs; or 234

(v) Locates or expands in this state with 235

significant regional impact as determined by MDA. 236


(c) "Facility related to the project" means and 238

includes any of the following, as they may pertain to the project: 239

(i) Facilities to provide potable and industrial 240

water supply systems, sewage and waste disposal systems and water, 241

natural gas and electric transmission systems to the site of the 242

project; 243


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(ii) Building facilities and equipment necessary 244

to operate the facility; 245

(iii) Rail lines; 246

(iv) Airports, airfields, air terminals and port 247

facilities; 248

(v) Highways, streets and other roadways; and 249

(vi) Fire protection facilities, equipment and 250

elevated water tanks. 251

(d) "Project" means any industrial, commercial, 252

research and development, warehousing, distribution, 253

transportation, processing, mining, United States government or 254

tourism enterprise together with all real property required for 255

construction, maintenance and operation of the enterprise that is 256

approved by the MDA. 257

(2) (a) There is created a special fund in the State 258

Treasury to be known as the Mississippi Industry Incentive 259

Financing Revolving Fund which shall consist of * * * monies from 260

any source designated for deposit into the fund. Unexpended 261

amounts remaining in the fund at the end of a fiscal year shall 262

not lapse into the State General Fund, and any interest earned on 263

amounts in the fund shall be deposited to the credit of the 264

fund. * * * Monies in the fund shall be disbursed by the 265

Mississippi Development Authority for the purposes authorized in 266

subsection (3) of this section. 267


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(b) * * * Monies in the fund that * * * are derived 268

from the proceeds of general obligation bonds may be used to 269

reimburse reasonable actual and necessary costs incurred by the 270

MDA * * * for the administration of the various grant, loan and 271

financial incentive programs administered by the MDA. An 272

accounting of actual costs incurred for which reimbursement is 273

sought shall be maintained * * * by the MDA. Reimbursement of 274

reasonable actual and necessary costs * * * shall not exceed three 275

percent (3%) of the proceeds of bonds issued * * *. 276

Reimbursements made under this subsection shall satisfy any 277

applicable federal tax law requirements. 278

(3) The MDA shall establish a program to make grants or 279

loans from the Mississippi Industry Incentive Financing Revolving 280

Fund to local governments, including, but not limited to, 281

counties, municipalities, industrial development authorities and 282

economic development districts, and approved business enterprises 283

to construct or otherwise provide facilities related to the 284

project. Local governments are authorized to accept grants and 285

enter into loans authorized under the program, and to sell, lease 286

or otherwise dispose of a project or any property related to the 287

project in whole or in part. 288

(4) (a) Any business enterprise or local government 289

desiring a grant or loan under this section shall submit an 290

application to the MDA which shall include, at a minimum: 291


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(i) Evidence that the business or industry meets 292

the definition of an approved business enterprise; 293

(ii) A description, including the cost, of the 294


(iii) A description of the purpose for which the 296

assistance is requested; and 297

(iv) Any other information required by the MDA. 298

(b) The MDA shall require that binding commitments be 299




and 303




(c) Upon receipt of the application from a business 307

enterprise or local government for a grant or loan under this 308

section, the MDA shall determine whether the enterprise meets the 309

definition of an approved business enterprise and determine 310

whether to provide the assistance requested in the form of a grant 311

or a loan. 312

(d) The MDA shall have sole discretion in providing 313

grants or loans under this section. The terms of a grant or loan 314

provided under this section and the manner of repayment of any 315

loan shall be within the discretion of the MDA. Repayments of 316


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loans made under this section shall be deposited to the credit of 317

the Mississippi Industry Incentive Financing Revolving Fund until 318

the uncommitted balance in the fund reaches Fifty Million Dollars 319

($50,000,000.00). Once the uncommitted balance in the fund 320

reaches Fifty Million Dollars ($50,000,000.00), repayments of 321

loans under this section shall be deposited to the credit of Fund 322

No. 3951 in the State Treasury to pay debt service on bonds until 323

such time as the uncommitted balance in the fund falls below Fifty 324

Million Dollars ($50,000,000.00). 325

(e) The MDA shall notify the Chairman of the Senate 326

Finance Committee and the Chairman of the House Ways and Means 327

Committee of the approval of any grant or loan application thirty 328

(30) days prior to the disbursement of any * * * monies for the 329

loan or grant from the Mississippi Industry Incentive Financing 330

Revolving Fund. The notification shall identify the applicant and 331

the purposes for which the loan or grant is made. 332

(5) (a) Contracts, by local governments, including, but not 333

limited to, design and construction contracts, for the 334

acquisition, purchase, construction or installation of a project 335

shall be exempt from the provisions of Section 31-7-13 if: 336

(i) The MDA finds and records such finding on its 337

minutes, that because of availability or the particular nature of 338

a project, it would not be in the public interest or would less 339

effectively achieve the purposes of this section to enter into 340

such contracts on the basis of Section 31-7-13; and 341


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(ii) The approved business enterprise that is 342

involved in the project concurs in such finding. 343

(b) When the requirements of paragraph (a) of this 344

subsection are met: 345

(i) The requirements of Section 31-7-13 shall not 346

apply to such contracts; and 347

(ii) The contracts may be entered into on the 348

basis of negotiation. 349

(6) It is the policy of the MDA and the MDA is authorized to 350

accommodate and support any enterprise that receives a loan under 351

this section for a project defined in Section 17-25-23 that wishes 352

to have a program of diversity in contracting, and/or that wishes 353

to do business with or cause its prime contractor to do business 354

with Mississippi companies, including those companies that are 355

small business concerns owned and controlled by socially and 356

economically disadvantaged individuals. The term "socially and 357

economically disadvantaged individuals" shall have the meaning 358

ascribed to such term under Section 8(d) of the Small Business Act 359

(15 USCS 637(d)) and relevant subcontracting regulations 360

promulgated pursuant thereto; except that women shall be presumed 361

to be socially and economically disadvantaged individuals for the 362

purposes of this subsection. 363

(7) The MDA shall promulgate rules and regulations, in 364

accordance with the Mississippi Administrative Procedures Law, for 365



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57-1-421. (1) As used in this subsection: 369

(a) "Alternative fuel" means compressed natural gas and 370

liquefied natural gas, as defined in Section 27-59-3, and propane 371

fuel when used as a fuel in a motor vehicle or motor vehicles on 372

the highways of the state. 373

(b) "Alternative fuel school bus" means a school bus 374

propelled by alternative fuel either as a dedicated alternative 375

fuel vehicle, as a bi-fuel vehicle using alternative fuel as one 376

of its fuels, or as a dual-fuel vehicle using alternative fuel as 377

one of its fuels. 378

(c) "Conversion kit" means the fuel system equipment 379

necessary in order to retrofit a motor vehicle propelled by 380

gasoline, diesel or other fuel so that the motor vehicle may be 381

converted or modified into an alternative fuel motor vehicle. 382

(d) "Cost of qualified alternative fuel motor vehicle 383

fuel property" means any of the following: 384

(i) The actual cost per school bus paid by the 385

school district for the purchase and installation of qualified 386

alternative fuel motor vehicle fuel property described in 387

paragraph (l)(i) of this subsection. 388

(ii) The incremental cost per school bus paid by 389

the school district upon the purchase of an OEM alternative fuel 390

school bus for the qualified alternative fuel motor vehicle fuel 391


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property (including installation) described in paragraph (l)(ii) 392

of this subsection. 393

(iii) The cost of the qualified alternative fuel 394

motor vehicle fuel property described in paragraph (l)(iii) of 395

this subsection and its installation. 396

(iv) The cost of the qualified alternative fuel 397

motor vehicle fuel property described in paragraph (l)(iv) of this 398

subsection and its construction and installation. The cost 399

directly related to a refueling station shall not include costs 400

associated with exploration and development activities necessary 401

for severing natural resources from the soil or ground. 402

(e) "Fuel system equipment" means tanks, pumps, hoses, 403

injectors, electronic controls and related supplies, materials, 404

parts and components for the storage of alternative fuel as fuel 405

for an alternative fuel school bus, the delivery of alternative 406

fuel to the engine of an alternative fuel school bus, and the 407

exhaust from an alternative fuel school bus of gases from 408

combustion of alternative fuel used to propel an alternative fuel 409

school bus, excluding equipment necessary for operation of a 410

school bus on gasoline, diesel or any fuel other than alternative 411

fuel. 412

(f) "Incremental cost" means: 413

(i) The stated MSRP of the fuel system equipment 414

and its installation for an OEM alternative fuel school bus; or 415


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(ii) If no separate MSRP is stated, the difference 416

between the MSRP of the OEM alternative fuel school bus and the 417

MSRP of the same make and model of school bus manufactured without 418

the fuel system equipment but otherwise identically equipped. 419

When an OEM alternative fuel school bus is sold for less (or 420

more) than its MSRP, the amount determined in subparagraph (i) or 421

(ii) of this paragraph (f) shall be proportionately reduced (or 422

increased) by the same percentage as the discount (or premium) on 423

the MSRP, as applicable. 424

(g) "School district" means a public school district. 425

(h) "OEM alternative fuel motor vehicle" means an 426

alternative fuel school bus manufactured by the original vehicle 427

manufacturer (or its contractor) with the fuel system equipment 428

installed as original equipment by the manufacturer (or its 429

contractor) at the factory or at another installation site 430

approved by the manufacturer (or its contractor). 431

(i) "Motor vehicle" shall have the meaning ascribed to 432

such term in Section 27-59-3. 433

(j) "MSRP" means manufacturer's suggested retail price. 434

(k) "Original purchase" means the purchase directly 435

from a dealer at retail of a new OEM alternative fuel school bus 436

which has never been titled. 437

(l) "Qualified alternative fuel motor vehicle fuel 438

property" means any of the following: 439


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(i) A conversion kit which has not previously been 440

used to retrofit any motor vehicle and is installed and results in 441

a reduction in emissions. 442

(ii) The fuel system equipment on an OEM 443

alternative fuel school bus which results in a reduction in 444

emissions. 445

(iii) A refueling system installed at a 446

governmental entity location for the nonpublic refueling with 447

alternative fuel of the governmental entity's alternative fuel 448

school buses. 449

(iv) A refueling station located in the state and 450

operated by a school district for refueling of alternative fuel 451

motor vehicles owned by the school district. 452

(v) Upgrades to a refueling system included in 453

subparagraphs (iii) and (iv) of this paragraph (l). 454

(vi) Portable or mobile refueling systems. 455

(m) "Reduction in emissions" means a reduction in 456

atmospheric emissions from fuel consumption by an alternative fuel 457

motor vehicle as demonstrated by certification of the fuel system 458

equipment by the federal Environmental Protection Agency or the 459

Mississippi Department of Environmental Quality or any other test 460

or standard recognized by the Mississippi Department of 461

Environmental Quality. 462

(n) "Refueling system" means compressors (whether used 463

separately or in combination with cascade tanks), process piping, 464


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hoses, dispensing units at the point where alternative fuel is 465

delivered as a fuel, meters and other parts and equipment and 466

installation supplies and materials therefor that constitute a 467

refueling system capable of dispensing alternative fuel into fuel 468

tanks of alternative fuel motor vehicles for use as a fuel. 469

(o) "Refueling station" means property constituting a 470

facility operated for dispensing alternative fuel into fuel tanks 471

of alternative fuel motor vehicles, which shall include: 472

(i) A refueling system; and 473

(ii) A building or other structural components 474

constructed or installed as part of and directly related to such 475

refueling system. 476

(p) "Retrofit" means the installation of a conversion 477

kit in a school bus designed to operate on gasoline, diesel or 478

other fuel in order to convert or modify the bus vehicle into an 479

alternative fuel school bus. 480

(q) "School bus" means a vehicle owned by a school 481

district that is primarily used by the school district to 482

transport students. 483

(2) As used in this subsection: 484

(a) "Alternative fuel" means compressed natural gas and 485

liquefied natural gas, as defined in Section 27-59-3, and propane 486

fuel when used as a fuel in a motor vehicle or motor vehicles on 487

the highways of the state. 488


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(b) "Conversion kit" means the fuel system equipment 489

necessary in order to retrofit a motor vehicle propelled by 490

gasoline, diesel or other fuel so that the motor vehicle may be 491

converted or modified into an alternative fuel motor vehicle. 492

(c) "Cost of qualified alternative fuel motor vehicle 493

fuel property" means any of the following: 494

(i) The actual cost per vehicle paid by the 495

municipality for the purchase and installation of qualified 496

alternative fuel motor vehicle fuel property described in 497

paragraph (l)(i) of this subsection. 498

(ii) The incremental cost per vehicle paid by the 499

municipality upon the purchase of an OEM alternative fuel motor 500

vehicle for the qualified alternative fuel motor vehicle fuel 501

property (including installation) described in paragraph (l)(ii) 502

of this subsection. 503

(iii) The cost of the qualified alternative fuel 504

motor vehicle fuel property described in paragraph (l)(iii) of 505

this subsection and its installation. 506

(iv) The cost of the qualified alternative fuel 507

motor vehicle fuel property described in paragraph (l)(iv) of this 508

subsection and its construction and installation. The cost 509

directly related to a refueling station shall not include costs 510

associated with exploration and development activities necessary 511

for severing natural resources from the soil or ground. 512


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(d) "Fuel system equipment" means tanks, pumps, hoses, 513

injectors, electronic controls and related supplies, materials, 514

parts and components for the storage of alternative fuel as fuel 515

for an alternative fuel motor vehicle, the delivery of alternative 516

fuel to the engine of an alternative fuel motor vehicle, and the 517

exhaust from an alternative fuel motor vehicle of gases from 518

combustion of alternative fuel used to propel an alternative fuel 519

motor vehicle, excluding equipment necessary for operation of a 520

motor vehicle on gasoline, diesel or any fuel other than 521

alternative fuel. 522

(e) "Incremental cost" means: 523

(i) The stated MSRP of the fuel system equipment 524

and its installation for an OEM alternative fuel motor vehicle; or 525

(ii) If no separate MSRP is stated, the difference 526

between the MSRP of the OEM alternative fuel motor vehicle and the 527

MSRP of the same make and model of motor vehicle manufactured 528

without the fuel system equipment but otherwise identically 529

equipped. 530

When an OEM alternative fuel motor vehicle is sold for less 531

(or more) than its MSRP, the amount determined in subparagraph (i) 532

or (ii) of this paragraph (e) shall be proportionately reduced (or 533

increased) by the same percentage as the discount (or premium) on 534

the MSRP, as applicable. 535

(f) "Municipality" means an incorporated city, town or 536

village in the State of Mississippi. 537


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(g) "OEM alternative fuel motor vehicle" means an 538

alternative fuel motor vehicle manufactured by the original 539

vehicle manufacturer (or its contractor) with the fuel system 540

equipment installed as original equipment by the manufacturer (or 541

its contractor) at the factory or at another installation site 542

approved by the manufacturer (or its contractor). 543

(h) "Motor vehicle" shall have the meaning ascribed to 544

such term in Section 27-59-3. 545

(i) "MSRP" means manufacturer's suggested retail price. 546

(j) "Alternative fuel motor vehicle" means a motor 547

vehicle propelled by alternative fuel either as a dedicated 548

alternative fuel vehicle, as a bi-fuel vehicle using alternative 549

fuel as one of its fuels, or as a dual fuel vehicle using 550

alternative fuel as one of its fuels. 551

(k) "Original purchase" means the purchase directly 552

from a dealer at retail of a new OEM alternative fuel motor 553

vehicle which has never been titled. 554

(l) "Qualified alternative fuel motor vehicle fuel 555

property" means any of the following: 556

(i) A conversion kit which has not previously been 557

used to retrofit any motor vehicle and is installed and results in 558

a reduction in emissions. 559

(ii) The fuel system equipment on an OEM 560

alternative fuel motor vehicle which results in a reduction in 561

emissions. 562


19/HR26/R1604

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(iii) A refueling system installed at a 563

municipality location for the nonpublic refueling with alternative 564

fuel of the municipality's alternative fuel motor vehicles. 565

(iv) A refueling station located in the state and 566

operated by a municipality for refueling of alternative fuel motor 567

vehicles owned by the municipality. 568

(v) Upgrades to a refueling system included in 569

subparagraphs (iii) and (iv) of this paragraph (l). 570

(vi) Portable or mobile refueling systems. 571

(m) "Reduction in emissions" means a reduction in 572

atmospheric emissions from fuel consumption by an alternative fuel 573

motor vehicle as demonstrated by certification of the fuel system 574

equipment by the federal Environmental Protection Agency or the 575

Mississippi Department of Environmental Quality or any other test 576

or standard recognized by the Mississippi Department of 577

Environmental Quality. 578

(n) "Refueling system" means compressors (whether used 579

separately or in combination with cascade tanks), process piping, 580

hoses, dispensing units at the point where alternative fuel is 581

delivered as a fuel, meters and other parts and equipment and 582

installation supplies and materials therefor that constitute a 583

refueling system capable of dispensing alternative fuel into fuel 584

tanks of alternative fuel motor vehicles for use as a fuel. 585


19/HR26/R1604

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(o) "Refueling station" means property constituting a 586

facility operated for dispensing alternative fuel into fuel tanks 587

of alternative fuel motor vehicles, which shall include: 588

(i) A refueling system; and 589

(ii) A building or other structural components 590

constructed or installed as part of and directly related to such 591

refueling system. 592

(p) "Retrofit" means the installation of a conversion 593

kit in a motor vehicle designed to operate on gasoline, diesel or 594

other fuel in order to convert or modify such motor vehicle into 595

an alternative fuel motor vehicle. 596

(3) (a) The Mississippi Development Authority shall 597

establish a revolving loan program to provide loans to (i) school 598

districts for the purpose of assisting school districts with 599

paying the cost of qualified alternative fuel motor vehicle fuel 600

property and (ii) municipalities for the purpose of assisting 601

municipalities with paying the cost of qualified alternative fuel 602

motor vehicle fuel property. Loans made under this section shall 603

bear no interest. 604

(b) A school district or municipality desiring a loan 605

under this section must submit an application to the Mississippi 606

Development Authority. The application shall include: 607

(i) A description of the purpose for which the 608

loan is requested; 609

(ii) The amount of the loan requested; and 610


19/HR26/R1604

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(iii) Any other information required by the 611

Mississippi Development Authority. 612

(c) Repayments of loans made under this section shall 613

be deposited to the credit of the Mississippi Alternative Fuel 614

School Bus and Municipal Motor Vehicle Revolving Loan Fund. 615

(4) (a) There is created in the State Treasury a special 616

fund to be designated as the "Mississippi Alternative Fuel School 617

Bus and Municipal Motor Vehicle Revolving Loan Fund," which shall 618

consist of funds appropriated or otherwise made available by the 619

Legislature in any manner and funds from any other source 620

designated for deposit into such fund. Unexpended amounts 621

remaining in the fund at the end of a fiscal year shall not lapse 622

into the State General Fund, and any investment earnings or 623

interest earned on amounts in the fund shall be deposited to the 624

credit of the fund. Monies in the fund shall be used by the 625

Mississippi Development Authority for the purposes described in 626

this section. 627



reasonable actual and necessary costs incurred by the Mississippi 630

Development Authority * * * for the administration of the various 631

grant, loan and financial incentive programs administered by the 632

authority. * * * Reimbursements made under this subsection shall 633

satisfy any applicable federal tax law requirements. 634


19/HR26/R1604

PAGE 27 (BS\KW)

(5) The Mississippi Development Authority shall have all 635

powers necessary to implement and administer the program 636

established under this section, and the Mississippi Development 637

Authority shall promulgate rules and regulations, in accordance 638






following words shall have the following meanings ascribed in this 644

section, unless the context clearly otherwise requires: 645

(a) "MDA" means the Mississippi Development Authority. 646

(b) "Municipality" means any municipality with a 647

population of less than fifteen thousand (15,000) according to the 648

latest federal decennial census at the time the municipality 649

submits an application to the MDA under this section. 650

(c) "Revitalization zone" means an area in a 651

municipality officially designated by ordinance or resolution of 652

the governing authorities of the municipality as a revitalization 653

zone and approved and certified by the MDA as meeting the 654

requirements of this section. 655


fund to be designated as the "Mississippi Main Street Investment 657

Revolving Loan Fund" which shall consist of funds from any source 658

designated for deposit into the fund. Unexpended amounts 659


19/HR26/R1604

PAGE 28 (BS\KW)


into the State General Fund, and any interest earned on amounts in 661

the fund shall be deposited to the credit of the fund. Monies in 662

the fund shall be used by the MDA for the purposes authorized in 663

subsection (3) of this section. 664







maintained * * *. Reimbursement of reasonable actual and 671

necessary costs * * * shall not exceed three percent (3%) of the 672

proceeds of bonds issued * * *. Reimbursements made under this 673

subsection shall satisfy any applicable federal tax law 674

requirements. 675

(3) The MDA shall establish a program to make loans to 676

municipalities to assist with maintaining and improving the 677

viability of revitalization zones. The proceeds of a loan made to 678

a municipality under this section may be used for maintaining 679

and/or improving the viability of a revitalization zone through 680

means deemed appropriate by the governing authorities of the 681

municipality, including, but not limited to, making loans, grants 682

and/or other forms of assistance to any person or public or 683

private association or other entity for use for infrastructure 684


19/HR26/R1604

PAGE 29 (BS\KW)

projects, improvements to properties, signage and other purposes 685

related to maintaining and/or improving the viability of the 686

revitalization zone. 687

(4) (a) A municipality desiring a loan under this section 688

shall submit an application to the MDA seeking (i) approval and 689

certification of the proposed revitalization zone and (ii) a loan 690

for the purposes authorized in this section. The application 691

shall include, at a minimum: 692

1. The name of the proposed revitalization 693

zone, which shall include the name of the municipality in which 694

the revitalization zone is to be located, together with the words, 695

"revitalization zone"; 696

2. A description of the revitalization zone 697

by metes and bounds; 698

3. A map showing the parcels of real property 699

included in the revitalization zone and the present use of such 700

parcels; 701

4. A master plan for the revitalization zone 702

that has been approved by sixty percent (60%) of the property 703

owners within the zone at the time the municipality submits the 704

application; and 705

5. Any other information required by the MDA. 706

The governing authorities of a municipality may designate the 707

boundaries of a proposed revitalization zone by adoption of an 708


19/HR26/R1604

PAGE 30 (BS\KW)

ordinance or resolution that is spread upon its minutes and 709

describes the boundaries of the zone. 710

(b) The MDA shall review the application to confirm 711

that the revitalization zone meets the requirements of this 712

section. A revitalization zone may embrace two (2) or more 713

separate parcels of real property, and such property may be 714

publicly and/or privately owned. Each revitalization zone shall 715

be of such size and form as to include all properties that, in the 716

determination of the municipality and the MDA, constitute an 717

integral part of the revitalization zone. If the MDA determines 718

that the boundaries of the proposed revitalization zone exceed the 719

area that is reasonably deemed to be integral to the 720

revitalization zone, the MDA may reduce the boundaries of the 721

proposed area. 722

(c) The MDA shall establish a deadline for the 723

submitting of applications during a state fiscal year. Upon 724

expiration of the application deadline, the MDA shall review and 725

evaluate all completed applications and approve and select no more 726

than two (2) municipal revitalization zone projects in the state 727

during each state fiscal year. Upon the approval and selection of 728

a municipal revitalization zone project, the MDA shall certify the 729

revitalization zone. 730

(d) Repayments of loans made under this section shall 731

be deposited to the credit of the Mississippi Main Street 732

Investment Revolving Loan Fund. 733


19/HR26/R1604

PAGE 31 (BS\KW)


administer the program established under this section, and the MDA 735

shall promulgate rules and regulations, in accordance with the 736

Mississippi Administrative Procedures Law, necessary for the 737

implementation of this section. 738




following words and phrases shall have the meanings ascribed in 742

this subsection unless the context clearly indicates otherwise: 743

(a) "Eligible entity" means any (i) county, (ii) 744

municipality or (iii) public or private nonprofit local economic 745

development entity including, but not limited to, local 746

authorities, commissions, or other entities created by local and 747

private legislation or pursuant to Section 19-5-99. 748

(b) "Eligible expenditures" means: 749

(i) Fees for architects, engineers, environmental 750

consultants, attorneys, and such other advisors, consultants and 751

agents that MDA determines are necessary to complete site due 752

diligence associated with site development improvements located on 753

industrial property that is publicly owned; and/or 754

(ii) Contributions toward site development 755

improvements, as approved by MDA, located on industrial property 756

that is publicly owned. 757



19/HR26/R1604

PAGE 32 (BS\KW)

(d) "Site development improvements" means site 759

clearing, grading, and environmental mitigation; improvements to 760

drainage systems; easement and right-of-way acquisition; sewer 761

systems; transportation directly affecting the site, including 762

roads, bridges or rail; bulkheads; land reclamation; water supply 763

(storage, treatment and distribution); aesthetic improvements; the 764

dredging of channels and basins; or other improvements as approved 765

by MDA. 766


special fund to be designated as the "Mississippi Site Development 768

Grant Fund," which shall consist of funds made available by the 769

Legislature in any manner and funds from any other source 770

designated for deposit into such fund. Unexpended amounts 771




credit of the fund. Monies in the fund shall be used to make 775

grants to assist eligible entities as provided in this section. 776


of bonds issued under Section 2 of Chapter 390, Laws of 2017, or 778

Section 5 of Chapter 412, Laws of 2018, may be used to reimburse 779

reasonable actual and necessary costs incurred by MDA * * * for 780

the administration of the various grant, loan and financial 781

incentive programs administered by MDA. An accounting of actual 782

costs incurred for which reimbursement is sought shall be 783


19/HR26/R1604

PAGE 33 (BS\KW)

maintained * * * by MDA. Reimbursement of reasonable actual and 784

necessary costs * * * shall not exceed three percent (3%) of the 785

proceeds of bonds issued * * *. Reimbursements under this 786

subsection shall satisfy any applicable federal tax law 787

requirements. 788

(3) (a) MDA shall establish a program to make grants to 789

eligible entities to match local or other funds associated with 790

improving the marketability of publicly owned industrial property 791

for industrial economic development purposes and other property 792

improvements as approved by MDA. An eligible entity may apply to 793

MDA for a grant under this program in the manner provided for in 794

this section. An eligible entity desiring assistance under this 795

section must provide matching funds in an amount determined by 796

MDA. Matching funds may be provided in the form of cash and/or 797

in-kind services as determined by MDA. 798

(b) An eligible entity desiring assistance under this 799

section must submit an application to MDA. The application must 800

include: 801

(i) A description of the eligible expenditures for 802

which assistance is requested; 803

(ii) The amount of assistance requested; 804

(iii) The amount and type of matching funds to be 805

provided by the eligible entity; and 806

(iv) Any other information required by MDA. 807


19/HR26/R1604

PAGE 34 (BS\KW)

(c) Upon request by MDA, an eligible entity shall 808

provide MDA with access to all studies, reports, documents and/or 809

plans developed as a result of or related to an eligible entity 810

receiving assistance under this section. 811

(4) MDA shall have all powers necessary to implement and 812

administer the program established under this section, and the 813

department shall promulgate rules and regulations, in accordance 814



(5) MDA shall file an annual report with the Governor, the 817

Secretary of the Senate and the Clerk of the House of 818

Representatives not later than December 1 of each year, describing 819

all assistance provided under this section. 820



57-46-1. (1) (a) There is created a special fund in the 823

State Treasury to be known as the Mississippi Railroad 824

Improvements Fund which shall consist of monies from any source 825

designated for deposit into the fund. Unexpended amounts 826




credit of the fund. Monies in the fund shall be disbursed by the 830

Mississippi Development Authority (MDA) for the purposes 831

authorized in subsection (2) of this section. 832


19/HR26/R1604

PAGE 35 (BS\KW)

(b) Monies in the fund that are derived from the 833








the proceeds of bonds issued * * *. Reimbursements made under 841

this subsection shall satisfy any applicable federal tax law 842

requirements. 843

(2) The MDA shall establish a program to make grants from 844

the Mississippi Railroad Improvements Fund to assist in paying a 845

portion of the costs associated with the repair, rehabilitation, 846

construction, reconstruction, upgrading and improvement of 847

railroad lines and related facilities, including projects 848

necessary to ensure safety and structural integrity of rail lines, 849

rail beds and bridges. 850

(3) (a) An entity desiring a grant under this section shall 851

submit an application to the MDA which shall include, at a 852

minimum: 853

(i) A description, including the cost, of the 854


(ii) A description of the purpose for which the 856

assistance is requested; and 857


19/HR26/R1604

PAGE 36 (BS\KW)

(iii) Any other information required by the MDA. 858

(b) The MDA shall have sole discretion in providing 859

grants under this section. The terms of a grant shall be within 860

the discretion of the MDA. 861


administer the program established under this section, including 863

the establishing of requirements for matching funds and criteria 864

regarding the evaluation of applications for assistance. The MDA 865



implementation and administration of this section. 868



57-61-25. (1) The seller is authorized to borrow, on the 871

credit of the state upon receipt of a resolution from the 872

Mississippi Development Authority requesting the same, monies not 873

exceeding the aggregate sum of Three Hundred Sixty-two Million 874

Five Hundred Thousand Dollars ($362,500,000.00), not including 875

monies borrowed to refund outstanding bonds, notes or replacement 876

notes, as may be necessary to carry out the purposes of this 877

chapter. The rate of interest on any such bonds or notes which 878

are not subject to taxation shall not exceed the rates set forth 879

in Section 75-17-101, Mississippi Code of 1972, for general 880

obligation bonds. 881


19/HR26/R1604

PAGE 37 (BS\KW)

(2) As evidence of indebtedness authorized in this chapter, 882

general or limited obligation bonds of the state shall be issued, 883

from time to time, to provide monies necessary to carry out the 884

purposes of this chapter for such total amounts, in such form, in 885

such denominations payable in such currencies (either domestic or 886

foreign, or both) and subject to such terms and conditions of 887

issue, redemption and maturity, rate of interest and time of 888

payment of interest as the seller directs, except that such bonds 889

shall mature or otherwise be retired in annual installments 890

beginning not more than five (5) years from date thereof and 891

extending not more than thirty (30) years from date thereof. 892

(3) All bonds and notes issued under authority of this 893

chapter shall be signed by the chairman of the seller, or by his 894

facsimile signature, and the official seal of the seller shall be 895

affixed thereto, attested by the secretary of the seller. 896

(4) All bonds and notes issued under authority of this 897

chapter may be general or limited obligations of the state, and 898

the full faith and credit of the State of Mississippi as to 899

general obligation bonds, or the revenues derived from projects 900

assisted as to limited obligation bonds, are hereby pledged for 901

the payment of the principal of and interest on such bonds and 902

notes. 903

(5) Such bonds and notes and the income therefrom shall be 904

exempt from all taxation in the State of Mississippi. 905


19/HR26/R1604

PAGE 38 (BS\KW)

(6) The bonds may be issued as coupon bonds or registered as 906

to both principal and interest, as the seller may determine. If 907

interest coupons are attached, they shall contain the facsimile 908

signature of the chairman and secretary of the seller. 909

(7) The seller is authorized to provide, by resolution, for 910

the issuance of refunding bonds for the purpose of refunding any 911

debt issued under the provisions of this chapter and then 912

outstanding, either by voluntary exchange with the holders of the 913

outstanding debt or to provide funds to redeem and the costs of 914

issuance and retirement of the debt, at maturity or at any call 915

date. The issuance of the refunding bonds, the maturities and 916

other details thereof, the rights of the holders thereof and the 917

duties of the issuing officials in respect to the same shall be 918

governed by the provisions of this section, insofar as they may be 919

applicable. 920

(8) As to bonds issued hereunder and designated as taxable 921

bonds by the seller, any immunity of the state to taxation by the 922

United States government of interest on bonds or notes issued by 923

the state is hereby waived. 924

(9) The proceeds of bonds issued under this chapter after 925

April 9, 2002, may be used to reimburse reasonable actual and 926

necessary costs incurred by the Mississippi Development 927

Authority * * * for the administration of the various grant, loan 928

and financial incentive programs administered by the authority. 929

An accounting of actual costs incurred for which reimbursement is 930


19/HR26/R1604

PAGE 39 (BS\KW)

sought shall be maintained * * * by the Mississippi Development 931

Authority. Reimbursement of reasonable actual and necessary 932

costs * * * shall not exceed three percent (3%) of the proceeds of 933

bonds issued * * *. * * * Reimbursements under this subsection 934

shall satisfy any applicable federal tax law requirements. 935




following words and phrases shall have the meanings ascribed in 939

this section unless the context clearly indicates otherwise: 940


(b) "Project" means construction, rehabilitation or 942

repair of buildings; sewer systems and transportation directly 943

affecting the site of the proposed rural business; sewer 944

facilities, acquisition of real property, development of real 945

property, improvements to real property, and any other project 946

approved by the Mississippi Development Authority. 947

(c) "Rural business" means a new or existing business 948

located or to be located in a rural community or a business or 949

industry located or to be located within five (5) miles of a rural 950

community. "Rural business" does not include gaming businesses or 951

utility businesses. 952

(d) "Rural community" means a county in the State of 953

Mississippi that meets the population criteria for the term 954

"limited population county" as provided in Section 57-1-18. 955


19/HR26/R1604

PAGE 40 (BS\KW)

"Rural community" also means a municipality in the State of 956

Mississippi that meets the population criteria for the term "small 957

municipality" as provided in Section 57-1-18. 958


fund to be designated as the "Mississippi Rural Impact Fund," 960

which shall consist of funds appropriated or otherwise made 961

available by the Legislature in any manner and funds from any 962

other source designated for deposit into such fund. Unexpended 963


not lapse into the State General Fund, and any investment earnings 965

or interest earned on amounts in the fund shall be deposited to 966

the credit of the fund. Monies in the fund shall be used to make 967

grants and loans to rural communities and loan guaranties on 968

behalf of rural businesses to assist in completing projects under 969

this section. 970


of bonds issued after April 15, 2003, may be used to reimburse 972







the proceeds of bonds issued * * *. Reimbursements under this 979


19/HR26/R1604

PAGE 41 (BS\KW)

paragraph (b) shall satisfy any applicable federal tax law 980

requirements. 981

(c) The MDA may use monies in the fund to pay for the 982

services of architects, engineers, attorneys and such other 983

advisors, consultants and agents that the MDA determines are 984

necessary to review loan and grant applications and to implement 985

and administer the program established under this section. 986

(d) The State Auditor may conduct performance and 987

compliance audits under this chapter according to Section 988

7-7-211(o) and may bill the oversight agency. 989

(3) The MDA shall establish a program to make grants and 990

loans to rural communities and loan guaranties on behalf of rural 991

businesses from the Mississippi Rural Impact Fund. A rural 992

community may apply to the MDA for a grant or loan under this 993

section in the manner provided for in this section. A rural 994

business may apply to the MDA for a loan guaranty under this 995

section in the manner provided in this section. 996

(4) A rural community desiring assistance under this section 997

must submit an application to the MDA. The application must 998

include a description of the project for which assistance is 999

requested, the cost of the project for which assistance is 1000

requested and any other information required by the MDA. A rural 1001

business desiring assistance under this section must submit an 1002

application to the MDA. The application must include a 1003

description of the purpose for which assistance is requested and 1004


19/HR26/R1604

PAGE 42 (BS\KW)

any other information required by the MDA. The MDA may waive any 1005

requirements of the program established under this section in 1006

order to expedite funding for unique projects. 1007


administer the program established under this section, and the MDA 1009



implementation of this section. 1012




(a) "Existing industry" means a manufacturing 1016

enterprise that has been operating in this state for not less than 1017

two (2) consecutive years that meets minimum criteria established 1018

by the Mississippi Development Authority. 1019

(b) "Long-term fixed assets" means assets that: 1020

(i) Through new technology will improve an 1021

enterprise's productivity and competitiveness; and 1022

(ii) Meet criteria established by the Mississippi 1023

Development Authority. 1024


(2) (a) There is established the Mississippi Existing 1026

Industry Productivity Loan Program to be administered by the MDA 1027

for the purpose of providing loans to: 1028


19/HR26/R1604

PAGE 43 (BS\KW)

(i) Existing industries to deploy long-term fixed 1029

assets that through new technology will improve productivity and 1030

competitiveness; 1031

(ii) Existing industries for the purchase or 1032

refinancing of land, buildings or equipment; and 1033

(iii) Counties or incorporated municipalities to 1034

assist existing industries in deploying long-term fixed assets 1035

that through new technology will improve productivity and 1036

competitiveness and to assist existing industries through the 1037

purchase of land, buildings and equipment. 1038

(b) (i) An existing industry that accepts a loan under 1039

this program shall not reduce employment by more than twenty 1040

percent (20%) through the use of the long-term fixed assets for 1041

which the loan is granted. 1042

(ii) An existing industry that accepts assistance 1043

from a county or incorporated municipality through a loan made 1044

under this program shall not reduce employment by more than twenty 1045

percent (20%) through the use of the long-term fixed assets for 1046

which the assistance is granted. 1047

(c) An existing industry desiring a loan under this 1048

section must submit an application to the MDA. The application 1049

shall include: 1050



(ii) The amount of the loan requested; 1053


19/HR26/R1604

PAGE 44 (BS\KW)

(iii) The estimated total cost of the project; 1054

(iv) A two-year business plan for the project; 1055

(v) Financial statements or tax returns for the 1056

existing industry for the two (2) years immediately prior to the 1057

application; 1058

(vi) Credit reports on all persons or entities 1059

with a twenty percent (20%) or greater interest in the enterprise; 1060

and 1061

(vii) Any other information required by the MDA. 1062

(d) A county or incorporated municipality desiring a 1063

loan under this section must submit an application to the MDA. 1064

The application shall include: 1065



(ii) The amount of the loan requested; 1068


(iv) A statement showing the sources of funding 1070

for the project; 1071

(v) A two-year business plan for the project; 1072


existing industry for the two (2) years immediately prior to the 1074

application; 1075


with a twenty percent (20%) or greater interest in the existing 1077

industry; 1078


19/HR26/R1604

PAGE 45 (BS\KW)

(viii) Any commitment by the existing industry to 1079

pay rental on, or to make loan repayments related to, the 1080

assistance; and 1081

(ix) Any other information required by the MDA. 1082

(e) The MDA shall require that binding commitments be 1083




and 1087




(f) The rate of interest on loans under this section 1091

shall be set by the MDA. 1092

(g) The MDA shall have all powers necessary to 1093

implement and administer the program established under this 1094

section, and the MDA shall promulgate rules and regulations, in 1095

accordance with the Mississippi Administrative Procedures Law, 1096

necessary for the implementation of this section. However, in 1097

making loans under this section, the MDA shall attempt to provide 1098

for an equitable distribution of such loans among each of the 1099

congressional districts of this state in order to promote economic 1100

development across the entire state. 1101


fund to be designated as the "Mississippi Existing Industry 1103


19/HR26/R1604

PAGE 46 (BS\KW)

Productivity Loan Fund," which shall consist of funds appropriated 1104

or otherwise made available by the Legislature in any manner and 1105

funds from any other source designated for deposit into such fund. 1106

Unexpended amounts remaining in the fund at the end of a fiscal 1107

year shall not lapse into the State General Fund, and any 1108


shall be deposited to the credit of the fund. Monies in the fund 1110

shall be used by the MDA for the purposes described in this 1111

section. 1112








and necessary costs shall not exceed three percent (3%) of the 1120

proceeds of bonds that are deposited into the fund. * * * 1121



(c) (i) There is hereby created the Mississippi 1124

Existing Industry Productivity Loan Program Bond Sinking Fund from 1125

which the principal and interest on bonds whose proceeds are 1126

deposited into the Mississippi Existing Industry Productivity Loan 1127

Fund and utilized to provide loans authorized under this section, 1128


19/HR26/R1604

PAGE 47 (BS\KW)

shall be repaid. Unexpended amounts remaining in the bond sinking 1129

fund at the end of a fiscal year shall not lapse into the State 1130

General Fund, and any interest earned or investment earnings on 1131

amounts in the bond sinking fund shall be deposited into the bond 1132

sinking fund. At any time when the funds required to pay the 1133

principal and interest on bonds whose proceeds are deposited into 1134

the Mississippi Existing Industry Productivity Loan Fund and are 1135

utilized to provide loans under this section are more than the 1136

amount available in the bond sinking fund, the Legislature shall 1137

appropriate the balance of the funds necessary to pay the 1138

principal and interest on such bonds. 1139

(ii) Money repaid on loans authorized under this 1140

section that are derived from the proceeds of bonds deposited into 1141

the Mississippi Existing Industry Productivity Loan Fund shall be 1142

deposited into the Mississippi Existing Industry Productivity Loan 1143

Program Bond Sinking Fund. 1144

(4) (a) A county that receives a loan under this section 1145

shall pledge for repayment of the loan any part of the homestead 1146

exemption annual tax loss reimbursement to which it may be 1147

entitled under Section 27-33-77. An incorporated municipality 1148

that receives a loan under this section shall pledge for repayment 1149

of the loan any part of the sales tax revenue distribution to 1150

which it may be entitled under Section 27-65-75. Each loan 1151

agreement shall provide for monthly payments, semiannual payments 1152

or other periodic payments, the annual total of which shall not 1153


19/HR26/R1604

PAGE 48 (BS\KW)

exceed the annual total for any other year of the loan by more 1154

than fifteen percent (15%). The loan agreement shall provide for 1155

the repayment of all funds received within not more than twenty 1156

(20) years from the date of project completion. 1157

(b) The State Auditor, upon request of the MDA, shall 1158

audit the receipts and expenditures of a county or an incorporated 1159

municipality whose loan payments appear to be in arrears, and if 1160

he finds that the county or municipality is in arrears in such 1161

payments, he shall immediately notify the Executive Director of 1162

the Department of Finance and Administration who shall withhold 1163

all future payments to the county of homestead exemption 1164

reimbursements under Section 27-33-77 and all sums allocated to 1165

the county or the municipality under Section 27-65-75 until such 1166

time as the county or the municipality is again current in its 1167

loan payments as certified by the MDA. In addition, the State 1168

Auditor may conduct performance and compliance audits under this 1169

chapter according to Section 7-7-211(o) and may bill the oversight 1170

agency. 1171

(c) Evidences of indebtedness which are issued pursuant 1172

to this chapter shall not be deemed indebtedness within the 1173

meaning specified in Section 21-33-303 with regard to cities or 1174

incorporated towns, and in Section 19-9-5 with regard to counties. 1175





19/HR26/R1604

PAGE 49 (BS\KW)

(a) "At-risk industry" means any enterprise that has 1179

been operating in this state for not less than three (3) 1180

consecutive years that has lost jobs or is at risk to lose jobs 1181

because such jobs have been outsourced. 1182


(c) "Outsource" means to send out work or jobs of a 1184

certain provider or manufacturer of the State of Mississippi to an 1185

overseas provider or manufacturer or a provider or manufacturer 1186

located outside the boundaries of the United States or any 1187

territory of the United States. 1188

(2) (a) There is established the Mississippi Job Protection 1189

Act to be administered by the MDA for the purpose of providing 1190

grants and loans to: 1191

(i) At-risk industries to be used for job 1192

retention and to improve productivity and competitiveness; and 1193

(ii) Counties and incorporated municipalities to 1194

provide assistance to at-risk industries to be used for job 1195

retention and to improve productivity and competitiveness. 1196

(b) (i) An at-risk industry that accepts a grant or 1197

loan under this program shall not reduce employment by more than 1198

twenty percent (20%). 1199

(ii) An at-risk industry that accepts assistance 1200

from a county or incorporated municipality through a loan or grant 1201

made under this section shall not reduce employment by more than 1202

twenty percent (20%). 1203


19/HR26/R1604

PAGE 50 (BS\KW)

(c) An at-risk industry desiring a grant or loan under 1204

this section must submit an application to the MDA. The 1205

application shall include: 1206


grant or loan is requested; 1208

(ii) The amount of the grant or loan requested; 1209


(iv) A two-year business plan for the project; 1211

(v) Financial statements or tax returns for the 1212

at-risk industry for the two (2) years immediately prior to the 1213

application; 1214

(vi) Credit reports on all persons or entities 1215

with a twenty percent (20%) or greater interest in the at-risk 1216

industry; and 1217

(vii) Any other information required by the MDA. 1218

(d) A county or incorporated municipality desiring a 1219

grant or loan under this section must submit an application to the 1220

MDA. The application shall include: 1221



(ii) The amount of the grant or loan requested; 1224


(iv) A statement showing the sources of funding 1226

for the project; 1227

(v) A two-year business plan for the project; 1228


19/HR26/R1604

PAGE 51 (BS\KW)


at-risk industry for the two (2) years immediately prior to the 1230

application; 1231


with a twenty percent (20%) or greater interest in the at-risk 1233

industry; 1234

(viii) Any commitment by the at-risk industry to 1235

pay rental on, or to make loan repayments related to, the 1236

assistance; and 1237

(ix) Any other information required by the MDA. 1238

(e) The MDA shall require that binding commitments be 1239




and 1243




(f) The amount of a grant or loan under this section 1247

shall not exceed fifty percent (50%) of the total cost of the 1248

project. 1249

(g) The MDA shall have all powers necessary to 1250

implement and administer the program established under this 1251

section, and the MDA shall promulgate rules and regulations, in 1252


19/HR26/R1604

PAGE 52 (BS\KW)

accordance with the Mississippi Administrative Procedures Law, 1253

necessary for the implementation of this section. 1254

(3) Grants under this section shall not exceed Two Hundred 1255

Thousand Dollars ($200,000.00). 1256


fund to be designated as the "Mississippi Job Protection Act 1258

Fund," which shall consist of funds appropriated or otherwise made 1259

available by the Legislature in any manner and funds from any 1260

other source designated for deposit into such fund. Unexpended 1261


not lapse into the State General Fund, and any investment earnings 1263

or interest earned on amounts in the fund shall be deposited to 1264

the credit of the fund. Monies in the fund shall be used by the 1265

MDA for the purposes described in this section. 1266








and necessary costs shall not exceed three percent (3%) of the 1274

proceeds of bonds issued under Sections 40 through 55 of Chapter 1275

1, Laws of Third Extraordinary Session of 2005. * * * 1276


19/HR26/R1604

PAGE 53 (BS\KW)



(c) (i) There is hereby created the Mississippi Job 1279

Protection Act Bond Sinking Fund from which the principal and 1280

interest on bonds whose proceeds are deposited into the 1281

Mississippi Job Protection Act Fund and utilized to provide loans 1282

authorized under this section, shall be repaid. Unexpended 1283

amounts remaining in the bond sinking fund at the end of a fiscal 1284

year shall not lapse into the State General Fund, and any interest 1285

earned or investment earnings on amounts in the bond sinking fund 1286

shall be deposited into the bond sinking fund. At any time when 1287

the funds required to pay the principal and interest on bonds 1288

whose proceeds are deposited into the Mississippi Job Protection 1289

Act Fund and are utilized to provide loans under this section are 1290

more than the amount available in the bond sinking fund, the 1291

Legislature shall appropriate the balance of the funds necessary 1292

to pay the principal and interest on such bonds. 1293

(ii) Money repaid on loans authorized under this 1294

section that are derived from the proceeds of bonds deposited into 1295

the Mississippi Job Protection Act Fund shall be deposited into 1296

the Mississippi Job Protection Act Bond Sinking Fund. 1297

(5) (a) A county that receives a loan under this section 1298

shall pledge for repayment of the loan any part of the homestead 1299

exemption annual tax loss reimbursement to which it may be 1300

entitled under Section 27-33-77. An incorporated municipality 1301


19/HR26/R1604

PAGE 54 (BS\KW)

that receives a loan under this section shall pledge for repayment 1302

of the loan any part of the sales tax revenue distribution to 1303

which it may be entitled under Section 27-65-75. Each loan 1304

agreement shall provide for monthly payments, semiannual payments 1305

or other periodic payments, the annual total of which shall not 1306

exceed the annual total for any other year of the loan by more 1307

than fifteen percent (15%). The loan agreement shall provide for 1308

the repayment of all funds received within not more than twenty 1309

(20) years from the date of project completion. 1310

(b) The State Auditor, upon request of the MDA, shall 1311

audit the receipts and expenditures of a county or an incorporated 1312

municipality whose loan payments appear to be in arrears, and if 1313

he finds that the county or municipality is in arrears in such 1314

payments, he shall immediately notify the Executive Director of 1315

the Department of Finance and Administration who shall withhold 1316

all future payments to the county of homestead exemption 1317

reimbursements under Section 27-33-77 and all sums allocated to 1318

the county or the municipality under Section 27-65-75 until such 1319

time as the county or the municipality is again current in its 1320

loan payments as certified by the MDA. The State Auditor may 1321

conduct performance and compliance audits under this chapter 1322

according to Section 7-7-211(o) and may bill the oversight agency. 1323

(c) Evidences of indebtedness which are issued pursuant 1324

to this section shall not be deemed indebtedness within the 1325


19/HR26/R1604

PAGE 55 (BS\KW)

meaning specified in Section 21-33-303 with regard to cities or 1326

incorporated towns, and in Section 19-9-5 with regard to counties. 1327





(b) "Program" means the Mississippi Small Business and 1332

Existing Forestry Industry Enterprise Participating Loan Program 1333

established in this section. 1334

(c) "Small business" means any commercial enterprise 1335

with less than one hundred (100) full-time employees, less than 1336

Seven Million Dollars ($7,000,000.00) in gross revenues or less 1337

than Seven Hundred Fifty Thousand Dollars ($750,000.00) in net 1338

annual profit after taxes. 1339

(d) "Existing forestry industry enterprise" means a 1340

manufacturing enterprise that: 1341

(i) Has its principal place of business in this 1342

state; 1343

(ii) Has been operating in this state for not less 1344

than three (3) consecutive years preceding the date of submitting 1345

an application for assistance under this section; 1346

(iii) Performs the initial processing of pine logs 1347

and/or hardwood logs in the production of lumber products or is 1348

engaged in the production of poles and/or timbers; and 1349


19/HR26/R1604

PAGE 56 (BS\KW)

(iv) Has employed an average of not less than 1350

fifteen (15) employees based on the most recent thirty-six-month 1351

period preceding the date that the enterprise submits an 1352

application for assistance under this section. 1353

The term "existing forestry industry enterprise" does not include 1354

any (a) enterprise with the primary business of producing chips or 1355

(b) pulp manufacturer and/or paper manufacturer. 1356

(2) The MDA shall establish a program of loans to be made to 1357

small businesses and existing forestry industry enterprises for 1358

the purpose of encouraging the extension of conventional financing 1359

and the issuance of letters of credit to small businesses and 1360

existing forestry industry enterprises by private institutions. 1361

Money to make the loans under the program shall be drawn by the 1362

MDA from the Small Business Participating Loan Program Revolving 1363

Fund. The amount of a loan to any single small business or 1364

existing forestry industry enterprise under the program shall not 1365

exceed fifty percent (50%) of the total cost of the project for 1366

which financing is sought. Interest shall be charged on the loans 1367

at a rate equal to one percent (1%) above the current published 1368

prime rate. The term of any loan made under this section shall 1369

not exceed five (5) years. Repayments of loans made by the MDA 1370

under the program shall be deposited to the credit of the Small 1371

Business and Existing Forestry Industry Enterprise Participating 1372

Loan Program Revolving Fund. Small businesses may utilize loan 1373

proceeds for buildings, equipment and working capital. An 1374


19/HR26/R1604

PAGE 57 (BS\KW)

existing forestry industry enterprise that receives a loan under 1375

this section may use the loan proceeds for the purpose of 1376

providing working capital, acquiring machinery and equipment, 1377

making upgrades and improvements to machinery and equipment, 1378

acquiring raw materials and any other purposes approved by the 1379

MDA. 1380

(3) There is created a special fund in the State Treasury to 1381

be known as the Small Business and Existing Forestry Industry 1382

Enterprise Participating Loan Program Revolving Fund which shall 1383

consist of money from any source designated for deposit into the 1384

fund. Unexpended amounts remaining in the fund at the end of a 1385

fiscal year shall not lapse into the State General Fund, and any 1386


shall be deposited to the credit of the fund. Money in the fund 1388

shall be disbursed by the Mississippi Development Authority for 1389

the purposes authorized in subsection (2) of this section. 1390

(4) Money in the fund that is derived from the proceeds of 1391

general obligation bonds may be used to reimburse reasonable 1392

actual and necessary costs incurred by the MDA * * * for the 1393

administration of the various grant, loan and financial incentive 1394

programs administered by the MDA. An accounting of actual costs 1395

incurred for which reimbursement is sought shall be 1396



the proceeds of bonds issued * * *. Reimbursements made under 1399


19/HR26/R1604

PAGE 58 (BS\KW)

this subsection shall satisfy any applicable federal tax law 1400

requirements. 1401



65-4-15. (1) There is hereby established a special fund in 1404

the State Treasury to be known as the "Economic Development 1405

Highway Fund" which shall consist of such monies as the 1406

Legislature shall appropriate thereto or such other monies as the 1407

Legislature may designate to be deposited therein. Any monies to 1408

the credit of such fund may be expended by the Mississippi 1409

Department of Transportation or political subdivision, as 1410

appropriate, upon approval of requisitions therefor by the 1411

Mississippi Development Authority for any expenses incurred by the 1412

Transportation Department or political subdivision in constructing 1413

and improving highways and highway segments which have been 1414

approved by the Mississippi Development Authority under the 1415

provisions of this chapter. From and after July 1, 2004, no 1416

monies to the credit of the fund may be expended for the 1417

construction and improvement of highways for high economic benefit 1418

projects that are being developed for the primary purpose of 1419

conducting retail sales unless the Mississippi Development 1420

Authority has received an application for the project prior to 1421

July 1, 2004. With regard to a high economic benefit project as 1422

defined in Section 65-4-5(1)(c)(xiii) for which the Mississippi 1423

Development Authority approved and allocated monies in the fund 1424


19/HR26/R1604

PAGE 59 (BS\KW)

before January 1, 2016, for constructing or improving a highway or 1425

highway segment related to the high economic benefit project, the 1426

Mississippi Development Authority may reallocate such monies from 1427

the original highway or highway segment purpose and allocate the 1428

funds for constructing or improving another highway or highway 1429

segment provided that such highway or highway segment is located 1430

within three (3) miles of the high economic benefit project for 1431

which the Mississippi Development Authority originally allocated 1432

and approved the monies. The Office of State Aid Road 1433

Construction shall be entitled to reimbursement from monies in the 1434

fund, upon approval by the Mississippi Development Authority of 1435

requisitions therefor by the State Aid Engineer, for the actual 1436

expenses incurred by the office in administering and providing 1437

engineering services to political subdivisions. Monies remaining 1438

unexpended to the credit of such special fund at the end of a 1439

fiscal year shall not lapse into the State General Fund, and any 1440

interest earned on the investment of monies in the special fund 1441

shall be deposited to the credit of the fund. 1442

(2) Monies in the Economic Development Highway Fund which 1443

are derived from proceeds of bonds issued under this chapter after 1444

July 1, 2003, may be used to reimburse reasonable actual and 1445

necessary costs incurred by the Mississippi Development 1446

Authority * * * for the administration of the various grant, loan 1447

and financial incentive programs administered by the authority. 1448

An accounting of actual costs incurred for which reimbursement is 1449


19/HR26/R1604

PAGE 60 (BS\KW)

ST: Mississippi Development Authority; revise reimbursement procedure to allow across funds and administered programs.

sought shall be maintained * * * by the Mississippi Development 1450

Authority. Reimbursement of reasonable actual and necessary 1451

costs * * * shall not exceed three percent (3%) of the proceeds of 1452

bonds issued * * *. * * * Reimbursements to the Mississippi 1453

Development Authority under this subsection shall satisfy any 1454


SECTION 14. This act shall take effect and be in force from 1456

and after July 1, 2019. 1457

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