MCA Chapter 4

MCA Chapter 4
in effect

Miss. Code Ann. § 65-4-1 Short title.

This chapter shall be known and may be cited as the “Economic Development Highway Act.”

Miss. Code Ann. § 65-4-3 Purpose.

It is the purpose of this chapter to promote, attract and secure industrial and other significant development in the state through the construction and improvement of highways in areas of the state which demonstrate actual and immediate potential for the creation or expansion of major industry or other significant development which is heavily dependent upon the use of and direct access to primary highways.

Miss. Code Ann. § 65-4-5 Definitions.

The following words when used in this chapter shall have the meanings herein ascribed unless the context otherwise clearly requires: “Board” means the Mississippi Development Authority; “Department” means the Mississippi Department of Transportation; “High economic benefit project” means: Any new investment by a private company with capital investments in land, buildings, depreciable fixed assets and improvements of at least Seventy Million Dollars ($70,000,000.00); Any new investment of at least Twenty Million Dollars ($20,000,000.00) by a private company having capital investments in this state in land, buildings, depreciable fixed assets and improvements of at least One Billion Dollars ($1,000,000,000.00) in the aggregate; Public investment of at least One Hundred Million Dollars ($100,000,000.00) to take place over a specified period of time and in accordance with a master plan duly adopted by the controlling political subdivision; Any new investments in land, buildings, depreciable fixed assets and improvements by two (2) private companies upon land that is adjacent whenever the new investments of both companies are at least Sixty Million Dollars ($60,000,000.00) in the aggregate, and such new investments by both private companies provide for the employment of at least five hundred (500) employees in the aggregate; Any project which would benefit from the construction of any highway bypass which would aid in economic development and would provide an alternate route to avoid an existing route which underpasses a railroad and which would aid in existing or proposed industry; Any master planned community; Any new investments in land, buildings, depreciable fixed assets and improvements by not more than three (3) private companies physically located within a one-half-mile radius of each other whenever the new investments of such companies are at least Sixty Million Dollars ($60,000,000.00) in the aggregate, and such new investments by such companies provide for the employment of at least three hundred (300) new employees in the aggregate; Any new investments in land, buildings, depreciable fixed assets and improvements by two (2) or more private companies upon lands originally adjacent, but now divided by a four-lane state highway and bordered by a two-lane state highway, and the new investments of the companies are at least Fifty Million Dollars ($50,000,000.00) in the aggregate, and a portion of such new investment will be utilized for the construction of a hospital; [Repealed] Any project as defined in Section 57-75-5(f)(xxi); however, the term “high economic benefit project” does not include the construction of Mississippi Highway 348; Any project as defined in Section 17-25-17; Any project which would allow access to a national intermodal facility with a minimum capital investment of One Hundred Million Dollars ($100,000,000.00) that is located within five (5) miles of the State of Mississippi and has direct access into an industrial park within the state. Any new investments in land, buildings and depreciable fixed assets and improvements by a private company of at least One Hundred Million Dollars ($100,000,000.00) over a specified period of time in accordance with a defined capital improvement project approved by the board. However, if the initial investments that a private company made in order to meet the definition of a high economic benefit project under this paragraph (c)(i) and in order to be approved for such project exceeded Fifty Million Dollars ($50,000,000.00), or if subsequent to being approved for the initial project the same company and/or one or more other private companies made additional capital investments exceeding Fifty Million Dollars ($50,000,000.00) in aggregate value in land, buildings, depreciable fixed assets and improvements physically attached to or forming a part of the initially planned site development, then an amount equal to fifty percent (50%) of all such investments that exceeds Fifty Million Dollars ($50,000,000.00) shall be subtracted from the Sixty Million Dollars ($60,000,000.00) in aggregate value of new investments required under this paragraph (c)(vii); “Political subdivision” means one or more counties or incorporated municipalities in the state, or a state-owned port located in a county bordering on the Gulf of Mexico; “Private company” means: Any agricultural, aquacultural, maricultural, processing, distribution, warehousing, manufacturing, transportation, tourism or research and development enterprise; Any air transportation and maintenance facility, regional shopping mall, hospital, large hotel, resort or movie industry studio; The federal government with respect to any specific project which meets the criteria established in paragraph (c)(i) of this subsection; Any existing or proposed industry in regard to a project described in paragraph (c)(v) of this subsection; A developer with respect to any specific project which meets the criteria established in paragraph (c)(vi) of this subsection; or A tourism project approved by the board; “Master planned community” shall have the same meaning as that term is defined in Section 19-5-10. The Mississippi Department of Transportation is hereby authorized to purchase rights-of-way and construct and maintain roads and highways authorized to be constructed pursuant to this chapter.

Miss. Code Ann. § 65-4-7 Application for assistance to construct or improve highways to encourage economic development.

Any political subdivision desiring the assistance of the state in order to construct or improve any highways or highway segments, the primary purpose of such construction or improvement being to encourage a private company to engage in a high economic benefit project within the geographic boundaries of the political subdivision, may apply to the board for such approval and assistance. The application from the political subdivision shall include, but not be limited to: A description of the highways or highway segments requested to be constructed or improved; A certified resolution from the governing authorities of the political subdivision detailing the source and amount of funds which the political subdivision has committed or is willing to commit for construction or improvement of such highways or highway segments; A certified copy of a signed letter of intent from the private company to the political subdivision describing in detail the high economic benefit project in which it is committed to engage upon construction or improvement of the highways or highway segments within the political subdivision and the proposed timetable for completion of such project; Demonstration that the private company is financially sound and is likely to fulfill the commitments made in its letter of intent; and An estimate by the private company of the number, size and weight of motor vehicles and the frequency of travel of such vehicles upon the highways or highway segments requested to be constructed or improved after completion of the project by the private company.

Miss. Code Ann. § 65-4-9 Review and approval of application.

Upon receipt of an application by a political subdivision as provided under Section 65-4-7, Mississippi Code of 1972, the board shall review the application and may approve the application if it determines: The highways or highway segments for which the political subdivision is requesting assistance in constructing or improving are necessary and essential to ensure adequate and appropriate access to the proposed project for the purpose of encouraging its location within the geographical boundaries of the political subdivision; The project proposed by the private company meets the definition of a “high economic benefit project” as such term is defined in Section 65-4-5, Mississippi Code of 1972; The private company has demonstrated financial soundness and appears to have such assets and credit worthiness as to permit it to secure necessary funds to complete the project according to its commitments; and The costs for the construction or improvement of such highways or highway segments to be funded hereunder will not exceed the funds available in the Economic Development Highway Fund created by Section 65-4-15, Mississippi Code of 1972.

Miss. Code Ann. § 65-4-11 Report and recommendations of Department of Transportation with respect to proposed highway construction or improvement project.

Before approving any application under this chapter the board shall have the Mississippi Department of Transportation, or the political subdivision if the political subdivision will have the construction or improvement performed, prepare and submit to it a detailed engineering study and report of all estimated costs associated with the construction and improvement of the highways and highway segments requested by the application of the political subdivision along with the estimated annual costs necessary to be expended for maintenance thereof. If the political subdivision will have the construction or improvement performed on a state designated highway that will be maintained by the Mississippi Department of Transportation, the board shall not approve the application of such political subdivision until the engineering study required in this section has been submitted by the board to the Mississippi Department of Transportation and has been certified by the Transportation Department to the board as proposing construction or improvement of highways and highway segments that meets Transportation Department standards for such work. If the political subdivision will have the construction or improvement performed on a highway that is not on the designated state highway system, the board shall not approve the application of such political subdivision until the engineering study required in this section has been submitted by the board to the Office of State Aid Road Construction and has been certified by the Office of State Aid Road Construction to the board as proposing construction or improvement of highways and highway segments that meets Office of State Aid Road Construction standards for such work. The Mississippi Department of Transportation or the Office of State Aid Road Construction, as the case may be, may recommend modifications to the location and route of those highways and highway segments proposed in the application of the political subdivision if such modifications are more cost effective and would not have a substantially negative economic impact on the project of the private company.

Miss. Code Ann. § 65-4-13 Notice of approval of application; approval prohibited where cost of project exceeds available funds.

If, after reviewing the application of the political subdivision and the report of the State Highway Department or political subdivision, the board determines that the application meets the requirements for approval and should be approved, the board shall notify the political subdivision and the State Highway Commission of its approval and contracts may be let. Upon certification by the board that monies currently available in the Economic Development Highway Fund are sufficient to defray the costs of the construction or improvement, then contracts with respect to such work may be executed by the highway department or political subdivision and work necessary for the construction or improvement of the highways and highway segments so approved shall commence by the State Highway Department or political subdivision, as determined by the Department of Economic and Community Development. If the construction or improvement is by a political subdivision, the State Aid Engineer shall have such work inspected periodically during the progress of such construction or improvement to ensure that it meets the standards prescribed in Section 65-4-17, Mississippi Code of 1972. However, no application shall be approved by the board if the total costs for constructing or improving the proposed highways or highway segments to be funded hereunder, according to estimates in the report of the State Highway Department or political subdivision, will exceed monies currently available in the Economic Development Highway Fund created in Section 65-4-15, Mississippi Code of 1972.

Miss. Code Ann. § 65-4-15 Economic Development Highway Fund.

There is hereby established a special fund in the State Treasury to be known as the “Economic Development Highway Fund” which shall consist of such monies as the Legislature shall appropriate thereto or such other monies as the Legislature may designate to be deposited therein. Any monies to the credit of such fund may be expended by the Mississippi Department of Transportation or political subdivision, as appropriate, upon approval of requisitions therefor by the Mississippi Development Authority for any expenses incurred by the Transportation Department or political subdivision in constructing and improving highways and highway segments which have been approved by the Mississippi Development Authority under the provisions of this chapter. From and after July 1, 2004, no monies to the credit of the fund may be expended for the construction and improvement of highways for high economic benefit projects that are being developed for the primary purpose of conducting retail sales unless the Mississippi Development Authority has received an application for the project prior to July 1, 2004. With regard to a high economic benefit project as defined in Section 65-4-5(1)(c)(xiii) for which the Mississippi Development Authority approved and allocated monies in the fund before January 1, 2016, for constructing or improving a highway or highway segment related to the high economic benefit project, the Mississippi Development Authority may reallocate such monies from the original highway or highway segment purpose and allocate the funds for constructing or improving another highway or highway segment provided that such highway or highway segment is located within three (3) miles of the high economic benefit project for which the Mississippi Development Authority originally allocated and approved the monies. The Office of State Aid Road Construction shall be entitled to reimbursement from monies in the fund, upon approval by the Mississippi Development Authority of requisitions therefor by the State Aid Engineer, for the actual expenses incurred by the office in administering and providing engineering services to political subdivisions. Monies remaining unexpended to the credit of such special fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on the investment of monies in the special fund shall be deposited to the credit of the fund. Monies in the Economic Development Highway Fund which are derived from proceeds of bonds issued under this chapter after July 1, 2003, may be used to reimburse reasonable actual and necessary costs incurred by the Mississippi Development Authority for the administration of the various grant, loan and financial incentive programs administered by the authority.An accounting of actual costs incurred for which reimbursement is sought shall be maintained by the Mississippi Development Authority. Reimbursement of reasonable actual and necessary costs shall not exceed three percent (3%) of the proceeds of bonds issued. Reimbursements to the Mississippi Development Authority under this subsection shall satisfy any applicable federal tax law requirements.

Miss. Code Ann. § 65-4-17 Standards for construction or improvement of highways and highway segments; entity responsible for maintaining highways constructed or improved.

Any highways or highway segments authorized to be constructed or improved by the Mississippi Department of Transportation or political subdivision under the provisions of this chapter shall be constructed or improved to bear a load limit of at least eighty thousand (80,000) pounds. For any project approved from and after April 12, 1993, if at the time the project is approved the highways or highway segments to be constructed or improved are a part of the designated state highway system, then maintenance on such highways or highway segments after completion of the project shall be performed by the Mississippi Department of Transportation and shall be constructed to Transportation Department standards. For any project approved from and after April 12, 1993, if at the time the project is approved the highways or highway segments to be constructed or improved are not part of the designated state highway system, the maintenance on such highways or highway segments after completion of the project shall be performed by the political subdivision and shall be constructed to Office of State Aid Road Construction standards.

Miss. Code Ann. § 65-4-19 Transfer of funds; definitions.

The State Highway Commission, acting through the Director of the State Highway Department, is hereby authorized and directed as follows: on each transfer date, the State Highway Commission shall transfer from the State Highway Fund into the appropriate fund specified below the sum equal to the investment account surplus for such transfer date. During fiscal year 1989, the investment account surplus sums available for transfer shall be transferred into the Economic Development Highway Fund created by Section 65-4-15, until Two Million Dollars ($2,000,000.00) in the aggregate has been transferred to that fund, and any additional investment account surplus sums available for transfer not exceeding Twenty-five Million Dollars ($25,000,000.00) in the aggregate shall be transferred into the State General Fund. During fiscal year 1990 and thereafter, any investment account surplus sums available for transfer shall be transferred into the Economic Development Highway Fund. As used in Sections 65-4-19, 65-4-21 and 65-4-23, the following terms shall have the following meanings: “Investment account surplus” means, with respect to each transfer date, the amount specified in item (ii) of the definition of transfer date, as set forth below. “Transfer date” means the second business day following the delivery to the Director of the State Highway Department of a certificate signed by the State Treasurer to the effect: (i) that, pursuant to Section 4(c) of Chapter 39, Extraordinary Session of 1969 (as amended by Section 1 of Chapter 418, Laws of 1976, as amended by Section 1 of Chapter 478, Laws of 1978, and as amended by Section 1 of Chapter 469, Laws of 1985), the State Bond Commission of the State of Mississippi has restructured the investments held in the investment account established pursuant to such Section 4(c) and relating to the State’s Highway Revenue Refunding Bonds, Series 1985; (ii) that, as a result of such restructuring and pursuant to such Section 4(c), the State Bond Commission has declared a specified sum held in such investment account as being surplus (i.e., as being the investment account surplus for such transfer date); (iii) that the State Bond Commission has applied such investment account surplus to deposit into the bond fund relating to the State’s Highway Revenue Refunding Bonds, Series 1985, in order to reduce on a dollar for dollar basis the amount of gasoline excise taxes which must be deposited in such bond fund, or to retention in such investment account in order to reduce on a dollar for dollar basis the amount of gasoline excise taxes which must be deposited in such investment account, or to any combination of such deposit and retention; (iv) that any portion of the investment account surplus deposited in such bond fund has been invested pending its disbursement to pay principal of or interest on such bonds; (v) that any portion of the investment account surplus retained in such investment account has been invested pending its disbursement to purchase U.S. government obligations which are scheduled to be held in such investment account; and (vi) that provision has been made for all interest earnings on investments of such investment account surplus, pending its disbursement to pay principal of or interest on such bonds, or pending its disbursement to purchase U.S. government obligations scheduled to be held in such investment account, as the case may be, to be paid into the State Highway Fund.

Miss. Code Ann. § 65-4-21 Payment into fund; warrant.

On each transfer date the Director of the State Highway Department shall make requisition upon the State Fiscal Management Board and thereupon the State Fiscal Management Board shall issue its warrant to the State Treasurer, who shall immediately pay the same into the appropriate fund specified in Section 65-4-19 as provided by law.

Miss. Code Ann. § 65-4-23 Conflict of interests.

No member of the Legislature, elected official or appointed official, or any partner or associate of any member of the Legislature, elected official or appointed official, or member of their family, shall derive any income or thing of value from the restructuring of any investments held in the investment account established pursuant to Section 4(c) of Chapter 39, Extraordinary Session of 1969, as amended, and relating to the State’s Highway Revenue Refunding Bonds, Series 1985.

Miss. Code Ann. § 65-4-25 Resolution to issue general obligation bonds for Economic Development Highway Fund.

The Mississippi Development Authority, acting through its executive director, is authorized, at one time or from time to time, to declare by resolution the necessity for issuance of negotiable general obligation bonds of the State of Mississippi to provide funds for the Economic Development Highway Fund established in Section 65-4-15, Mississippi Code of 1972. Upon the adoption of a resolution by the Executive Director of the Mississippi Development Authority, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by Sections 65-4-25 through 65-4-45, Mississippi Code of 1972, the executive director shall deliver a certified copy of his resolution or resolutions to the State Bond Commission. Upon receipt of the resolution, the State Bond Commission, in its discretion, shall act as the issuing agent, prescribe the form of the bonds, determine the appropriate method for the sale of the bonds, advertise for and accept bids or negotiate the sale of the bonds, issue and sell the bonds so authorized to be sold, and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The principal amount of bonds issued under Sections 65-4-25 through 65-4-45, Mississippi Code of 1972, shall not exceed Three Hundred Seventy-seven Million Five Hundred Thousand Dollars ($377,500,000.00) in the aggregate. However, an additional amount of bonds may be issued under Sections 65-4-25 through 65-4-45, Mississippi Code of 1972, in an amount not to exceed Seven Million Dollars ($7,000,000.00), and the proceeds of any such additional bonds issued shall be used to provide funding for a high economic benefit project as defined in Section 65-4-5(1)(c)(vi), Mississippi Code of 1972.

Miss. Code Ann. § 65-4-27 Payment of principal and interest on bonds.

For the payment of the principal of and interest on the bonds issued under Sections 65-4-25 through 65-4-45, the full faith, credit, and taxing power of the State of Mississippi are hereby irrevocably pledged. If the funds appropriated by the Legislature be insufficient to pay the principal of and interest on the bonds as they become due, then the deficiency shall be paid by the State Treasurer from any funds in the State Treasury not otherwise appropriated. All such bonds shall contain recitals on their faces substantially covering the foregoing provisions of this section.

Miss. Code Ann. § 65-4-29 Terms of bonds; option to redeem; issuance and sale.

Such bonds as are authorized to be issued under Sections 65-4-25 through 65-4-45 may be executed and delivered by the state at any time and from time to time, may be in such form and denominations and of such terms and maturities, may be in fully registered form or in bearer form registrable either as to principal or interest, or both, may bear such conversion privileges and be payable in such installments and at such time or times not exceeding twenty (20) years from the date thereof, may be payable at such place or places, whether within or without the State of Mississippi, may bear interest payable at such time or times and at such place or places and evidenced in such manner, and may contain such provisions not inconsistent herewith, all as shall be provided in the proceedings of the State Bond Commission under which the bonds are authorized to be issued. Such bonds shall not bear a greater overall maximum interest rate to maturity than that authorized by Section 75-17-101. If deemed advisable by the State Bond Commission, there may be retained in the proceedings under which any such bonds are authorized to be issued an option to redeem all or any part thereof as may be specified in such proceedings, at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and briefly recited or referred to on the face of the bonds, but nothing herein contained shall be construed to confer on the state any right or option to redeem any bonds, except as may be provided in the proceedings under which they shall be issued. The State Bond Commission may sell such bonds on sealed bids at public sale or may negotiate the sale of the bonds for such price as it may determine to be in the best interest of the State of Mississippi. The state may pay all expenses, premiums and commissions which the State Bond Commission may deem necessary or advantageous in connection with the issuance thereof, but solely from the proceeds of the bonds. The issuance by the state of one or more series of bonds shall not preclude it from issuing other series of bonds, but the proceedings under which any subsequent bonds may be issued shall recognize and protect any prior pledge made for any prior issuance of bonds.

Miss. Code Ann. § 65-4-31 Interest rates.

No bond issued under Sections 65-4-25 through 65-4-45 shall bear more than one (1) rate of interest; each bond shall bear interest from its date to its stated maturity date at the interest rate specified on the bonds; and all bonds of the same maturity shall bear the same rate of interest from date to maturity. All interest accruing on bonds shall be payable semiannually or annually. If bonds are issued in coupon form, no interest payment shall be evidenced by more than one (1) coupon, and neither cancelled nor supplemental coupons shall be permitted. If serial bonds, such bonds shall mature annually, and the first maturity date thereof shall not be more than five (5) years from the date of such bonds.

Miss. Code Ann. § 65-4-33 Notice of sale.

If the bonds issued under Sections 65-4-25 through 65-4-45 are to be sold on sealed bids at public sale, notice of the sale shall be published at least two (2) times, the first of which shall be made not less than ten (10) days prior to the date of sale, and shall be so published in one or more newspapers having a general circulation in the City of Jackson selected by the State Bond Commission.

Miss. Code Ann. § 65-4-35 Execution of bonds and interest coupons.

All bonds issued under Sections 65-4-25 through 65-4-45 shall be executed on behalf of the state by the manual or facsimile signature of the Chairman of the State Bond Commission and shall be countersigned by the manual or facsimile signature of the Secretary of the State Bond Commission. All coupons shall be executed on behalf of the state by the facsimile signatures of the Chairman and Secretary of the State Bond Commission. If the officers whose signatures or countersignatures appear on the bonds or interest coupons shall cease to be such officers before delivery of the bonds, such signatures or countersignatures shall nevertheless be valid and sufficient for all purposes, the same as if they had remained in office until such delivery, or had been in office on the date such bonds may bear.

Miss. Code Ann. § 65-4-37 Disbursement of proceeds; payment of costs.

Upon the issuance and sale of bonds under Sections 65-4-25 through 65-4-45, the State Bond Commission shall transfer the proceeds of any such sale or sales to the Economic Development Highway Fund. The proceeds of such bonds shall be disbursed solely upon the order of the Executive Director of the Mississippi Department of Economic Development under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds. The State Bond Commission is authorized to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under Sections 65-4-25 through 65-4-45 from the proceeds derived from the sale of such bonds.

Miss. Code Ann. § 65-4-39 Authority to request and issue warrants to pay principal and interest when due.

The State Treasurer is hereby authorized, without further process of law, to certify to the Fiscal Management Board the necessity for warrants, and the board is hereby authorized and directed to issue such warrants payable out of any funds authorized by Sections 65-4-25 through 65-4-45 for such purpose, in such amounts as may be necessary to pay when due the principal of and interest on all bonds issued under the provisions of Sections 65-4-25 through 65-4-45; and the State Treasurer shall forward the necessary amount to the designated place or places of payment of such bonds in ample time to discharge such bonds, or the interest thereon, on the due dates thereof.

Miss. Code Ann. § 65-4-41 Bonds to be legal investments.

Bonds issued under Sections 65-4-25 through 65-4-45 shall be legal investments for commercial banks, trust companies, savings and loan associations and insurance companies organized under the laws of this state.

Miss. Code Ann. § 65-4-43 Taxation.

All bonds issued under Sections 65-4-25 through 65-4-45 and the income therefrom shall be exempt from all taxation within the State of Mississippi, except gift, transfer and inheritance taxes.

Miss. Code Ann. § 65-4-45 Relationship with other laws.

Sections 65-4-25 through 65-4-45, without reference to any other statute, shall be deemed to be full and complete authority for the issuance of such bonds, and shall be construed as an additional and alternative method therefor, and none of the present restrictions, requirements, conditions or limitations of law applicable to the issuance or sale of bonds, notes or other obligations by the state shall apply to the issuance and sale of bonds under Sections 65-4-25 through 65-4-45, and no proceedings shall be required for the issuance of such bonds other than those provided for and required in Sections 65-4-25 through 65-4-45, and all powers necessary to be exercised in order to carry out the provisions of Sections 65-4-25 through 65-4-45 are hereby conferred.