Bill Text: MS SB2844 | 2025 | Regular Session | Introduced
Bill Title: TVA Service Area Utilities Grant Fund; establish, and fund with g.o. bonds and diversion of TVA payments in lieu of taxes.
Spectrum: Bipartisan Bill
Status: (Introduced) 2025-01-20 - Referred To Finance [SB2844 Detail]
Download: Mississippi-2025-SB2844-Introduced.html
MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Finance
By: Senator(s) Suber, Bryan
Senate Bill 2844
AN ACT TO CREATE THE TENNESSEE VALLEY AUTHORITY (TVA) SERVICE AREA UTILITIES GRANT FUND AS A SPECIAL FUND IN THE STATE TREASURY; TO DIRECT THE OFFICE OF ENERGY AT THE MISSISSIPPI DEVELOPMENT AUTHORITY (MDA) TO ESTABLISH THE TVA SERVICE AREA UTILITIES GRANT PROGRAM TO PROVIDE GRANTS TO LOCAL UTILITIES SERVICE PROVIDERS IN THE TVA SERVICE AREA IN MISSISSIPPI; TO PROVIDE THAT ELIGIBLE ENTITIES SHALL APPLY TO MDA'S OFFICE OF ENERGY FOR GRANT FUNDING; TO PROVIDE FOR THE DISTRIBUTION OF $25,000,000.00 IN THE SPECIAL FUND DERIVED FROM THE ISSUANCE OF STATE GENERAL OBLIGATION BONDS UNDER THIS ACT; TO PROVIDE FOR THE DISTRIBUTION OF FUTURE MONIES IN EXCESS OF THE FIRST $25,000,000.00 AS DETERMINED BY THE MDA; TO PROVIDE THAT NO MONIES MAY BE PROVIDED TO THE OKOLONA ELECTRIC DEPARTMENT, UNLESS IT SIGNS AN AGREEMENT COMMITTING TO SPENDING FROM OTHER SOURCES AN AMOUNT EQUAL TO HALF THE STATE GRANT TO IMPROVE DISTRIBUTION LINES OUTSIDE THE CITY OF OKOLONA; TO DIRECT THE MDA TO DECLARE BY RESOLUTION, AS SOON AS PRACTICABLE, THE NECESSITY FOR ISSUANCE OF STATE GENERAL OBLIGATION BONDS IN THE AMOUNT OF $25,000,000.00 FOR THE TVA SERVICE AREA UTILITIES GRANT FUND; TO AUTHORIZE THE MDA TO PROMULGATE RULES AND REGULATIONS TO IMPLEMENT THIS ACT; TO DIRECT THE MDA TO FILE AN ANNUAL REPORT WITH THE GOVERNOR AND THE LEGISLATURE DESCRIBING ALL ASSISTANCE PROVIDED UNDER THIS ACT; TO AUTHORIZE THE ISSUANCE OF STATE GENERAL OBLIGATION BONDS IN THE AMOUNT OF $25,000,000.00 TO PROVIDE MONIES FOR THE TVA SERVICE AREA UTILITIES GRANT FUND; TO AMEND SECTION 27-37-301, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT, OF THE PAYMENTS TO BE RECEIVED BY THE STATE OF MISSISSIPPI AND ITS COUNTIES FROM THE TENNESSEE VALLEY AUTHORITY IN LIEU OF TAXES UNDER THE TENNESSEE VALLEY AUTHORITY ACT OF 1933, AFTER THE PRINCIPAL, REDEMPTION PREMIUM AND INTEREST ON THE GENERAL OBLIGATION BONDS ISSUED UNDER SECTION 65-26-15 HAVE BEEN PAID IN FULL, THE 10% THAT HAS BEEN PAID INTO THE STATE GENERAL FUND SHALL HEREAFTER BE PAID INTO THE TVA SERVICE AREA UTILITIES GRANT FUND CREATED IN THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) For the purposes of this section, the following words and phrases shall have the meanings ascribed in this subsection unless the context clearly indicates otherwise:
(a) "Eligible entity" means a local utilities service provider in the TVA service area in Mississippi.
(b) "Eligible expenditures" means any expenses incurred by an eligible entity in its provision of utilities services, or expenses incurred in providing local matching funds for federal or state grants related to the provision of utilities services.
(c) "MDA" means the Mississippi Development Authority's Office of Energy.
(d) "TVA" means the Tennessee Valley Authority.
(2) (a) There is hereby created in the State Treasury a special fund to be designated as the "TVA Service Area Utilities Grant Fund," which shall consist of monies made available by the Legislature in any manner and funds from any other source designated for deposit into such fund. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any investment earnings or interest earned on amounts in the fund shall be deposited to the credit of the fund. Monies in the fund shall be used to make grants to assist eligible entities as provided in this section.
(b) Monies in the fund derived from proceeds of bonds issued under Section 2 of this act may be used to reimburse reasonable actual and necessary costs incurred by the MDA in providing assistance related to a project for which funding is provided under this section from the use of proceeds of such bonds. An accounting of actual costs incurred for which reimbursement is sought shall be maintained for each project by the MDA. Reimbursement of reasonable actual and necessary costs for a project shall not exceed three percent (3%) of the proceeds of bonds issued for such project. Monies authorized for a particular project may not be used to reimburse administrative costs for unrelated projects. Reimbursements under this subsection shall satisfy any applicable federal tax law requirements.
(3) (a) The MDA shall establish the TVA Service Area Utilities Grant Program to provide grants for eligible entities. An eligible entity may apply to the MDA for a grant under this program in the manner provided for in this section.
(b) An eligible entity desiring assistance under this section must submit an application to the MDA. The application must include:
(i) A description of the eligible expenditures for which assistance is requested;
(ii) The amount of assistance requested;
(iii) The amount and type of matching funds to be provided by the eligible entity; and
(iv) Any other information required by the MDA.
(c) Upon request by the MDA, an eligible entity shall provide the MDA with access to all studies, reports, documents and/or plans developed as a result of or related to an eligible entity receiving assistance under this section.
(d) Monies in the fund derived from proceeds of bonds issued under Section 2 of this act, other than those used in accordance with subsection (2)(b) of this section, shall be distributed to provide a ninety percent (90%) matching grant for any eligible entity whose service area, in whole or in part, was covered by the federal disaster declaration for severe storms, straight-line winds and tornadoes that occurred on March 24-25, 2023. Remaining monies shall be distributed pro rata to match grants received by other eligible entities in the current round, as of July 1, 2025, of the United States Department of Energy's Grid Resilience and Innovation Partnerships (GRIP) Program.
(e) Any excess monies in the fund after the distribution of the first Twenty-five Million Dollars ($25,000,000.00) may be distributed to eligible entities as determined by the MDA under its rules and regulations.
(f) Notwithstanding any other provision of this section, no monies may be provided to the Okolona Electric Department unless it signs an agreement committing to spending from other sources an amount equal to half the MDA grant under this section to improve distribution lines outside the City of Okolona, Mississippi, and agreeing to refund the monies to the MDA if such condition shall not have been met one (1) year from receipt of the MDA grant monies.
(4) The MDA is directed, as soon as practicable, to declare by resolution the necessity for issuance of the general obligation bonds of the State of Mississippi authorized in Section 2 of this act in the amount of Twenty-five Million Dollars ($25,000,000.00).
(5) The MDA shall have all powers necessary to implement and administer the program established under this section, and the MDA shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.
(6) The MDA shall file an annual report with the Governor, the Secretary of the Senate and the Clerk of the House of Representatives not later than December 1 of each year, describing all assistance provided under this section.
SECTION 2. (1) As used in this section, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:
(a) "Accreted value" of any bonds means, as of any date of computation, an amount equal to the sum of (i) the stated initial value of such bond, plus (ii) the interest accrued thereon from the issue date to the date of computation at the rate, compounded semiannually, that is necessary to produce the approximate yield to maturity shown for bonds of the same maturity.
(b) "State" means the State of Mississippi.
(c) "Commission" means the State Bond Commission.
(d) "MDA" means the Mississippi Development Authority's Office of Energy.
(2) (a) The MDA, at one time, or from time to time, may declare by resolution the necessity for issuance of general obligation bonds of the State of Mississippi to provide funds for the program authorized in Section 1 of this act. Upon the adoption of a resolution by the MDA declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this subsection, the MDA shall deliver a certified copy of its resolution or resolutions to the commission. Upon receipt of such resolution, the commission, in its discretion, may act as the issuing agent, prescribe the form of the bonds, determine the appropriate method for 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 total amount of bonds issued under this section shall not exceed Twenty-five Million Dollars ($25,000,000.00).
(b) The proceeds of bonds issued pursuant to this section shall be deposited into the TVA Service Area Utilities Grant Fund created in Section 1 of this act. Any investment earnings on bonds issued pursuant to this section shall be used to pay debt service on bonds issued under this section, in accordance with the proceedings authorizing issuance of such bonds.
(3) The principal of and interest on the bonds authorized under this section shall be payable in the manner provided in this subsection. Such bonds shall bear such date or dates, be in such denomination or denominations, bear interest at such rate or rates (not to exceed the limits set forth in Section 75-17-101), be payable at such place or places within or without the State of Mississippi, shall mature absolutely at such time or times not to exceed twenty-five (25) years from date of issue, be redeemable before maturity at such time or times and upon such terms, with or without premium, shall bear such registration privileges, and shall be substantially in such form, all as shall be determined by resolution of the commission.
(4) The bonds authorized by this section shall be signed by the chairman of the commission, or by his facsimile signature, and the official seal of the commission shall be affixed thereto, attested by the secretary of the commission. The interest coupons, if any, to be attached to such bonds may be executed by the facsimile signatures of such officers. Whenever any such bonds shall have been signed by the officials designated to sign the bonds who were in office at the time of such signing but who may have ceased to be such officers before the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the signatures of such officers upon such bonds and coupons shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially signing such bonds had remained in office until their delivery to the purchaser, or had been in office on the date such bonds may bear. However, notwithstanding anything herein to the contrary, such bonds may be issued as provided in the Registered Bond Act of the State of Mississippi.
(5) All bonds and interest coupons issued under the provisions of this section have all the qualities and incidents of negotiable instruments under the provisions of the Uniform Commercial Code, and in exercising the powers granted by this section, the commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.
(6) The commission shall act as the issuing agent for the bonds authorized under this section, prescribe the form of the bonds, determine the appropriate method for 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, pay all fees and costs incurred in such issuance and sale, and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The commission is authorized and empowered to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under this section from the proceeds derived from the sale of such bonds. The commission shall 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 for the best interest of the State of Mississippi. All interest accruing on such bonds so issued shall be payable semiannually or annually.
If the bonds are to be sold on sealed bids at public sale, notice of the sale of any such bonds shall be published at least one time, not less than ten (10) days before the date of sale, and shall be so published in one or more newspapers published or having a general circulation in the City of Jackson, Mississippi, selected by the commission.
The commission, when issuing any bonds under the authority of this section, may provide that bonds, at the option of the State of Mississippi, may be called in for payment and redemption at the call price named therein and accrued interest on such date or dates named therein.
(7) The bonds issued under the provisions of this section are general obligations of the State of Mississippi, and for the payment thereof the full faith and credit of the State of Mississippi is irrevocably pledged. If the funds appropriated by the Legislature are insufficient to pay the principal of and the interest on such 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 provisions of this subsection.
(8) Upon the issuance and sale of bonds under this section, the commission shall transfer the proceeds of any such sale or sales to the TVA Service Area Utilities Grant Fund created in Section 1 of this act. The proceeds of such bonds shall be disbursed solely upon the order of the MDA under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds.
(9) The bonds authorized under this section may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions and things which are specified or required by this section. Any resolution providing for the issuance of bonds under the provisions of this section shall become effective immediately upon its adoption by the commission, and any such resolution may be adopted at any regular or special meeting of the commission by a majority of its members.
(10) The bonds authorized under the authority of this section may be validated in the Chancery Court of the First Judicial District of Hinds County, Mississippi, in the manner and with the force and effect provided by Chapter 13, Title 31, Mississippi Code of 1972, for the validation of county, municipal, school district and other bonds. The notice to taxpayers required by such statutes shall be published in a newspaper published or having a general circulation in the City of Jackson, Mississippi.
(11) Any holder of bonds issued under the provisions of this section or of any of the interest coupons pertaining thereto may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights granted under this section, or under such resolution, and may enforce and compel performance of all duties required by this section to be performed, in order to provide for the payment of bonds and interest thereon.
(12) All bonds issued under the provisions of this section shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi, and such bonds shall be legal securities which may be deposited with and shall be received by all public officers and bodies of this state and all municipalities and political subdivisions for the purpose of securing the deposit of public funds.
(13) Bonds issued under the provisions of this section and income therefrom shall be exempt from all taxation in the State of Mississippi.
(14) The proceeds of the bonds issued under this section shall be used solely for the purposes therein provided, including the costs incident to the issuance and sale of such bonds.
(15) The State Treasurer is authorized, without further process of law, to certify to the Department of Finance and Administration the necessity for warrants, and the Department of Finance and Administration is authorized and directed to issue such warrants, in such amounts as may be necessary to pay when due the principal of, premium, if any, and interest on, or the accreted value of, all bonds issued under this section; 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.
(16) This section shall be deemed to be full and complete authority for the exercise of the powers therein granted, but this section shall not be deemed to repeal or to be in derogation of any existing law of this state.
SECTION 3. Section 27-37-301, Mississippi Code of 1972, is amended as follows:
27-37-301. (1) Except as otherwise provided in subsection (4) of this section, the payments received and to be received by the State of Mississippi and counties therein from the Tennessee Valley Authority in lieu of taxes under Section 13 of the Tennessee Valley Authority Act of 1933, as amended, for the fiscal year ended June 30, 1957, and each fiscal year thereafter shall be shared and apportioned among the State of Mississippi and the counties and municipalities of Mississippi in which the Tennessee Valley Authority owns or operates power property on the following basis:
(a) From payments made for each such fiscal year by the Authority directly to the State of Mississippi, the state shall retain for the benefit of its General Fund an amount equal either to twelve and two-tenths percent (12-2/10%) of the total combined payments for such fiscal year by the Authority to the state and to counties therein, or to the former annual ad valorem property taxes levied by the state on power property (including reservoir land allocated to power purposes) purchased and operated by the Tennessee Valley Authority based upon the average of two (2) years of such taxes next prior to purchase as determined by the Tennessee Valley Authority under the provisions of Section 13 of the Tennessee Valley Authority Act, as amended, whichever is greater.
(b) After transfer to the State General Fund of the amount specified in subsection (a) hereof, the remainder of the payments made for each such fiscal year by the Authority directly to the State of Mississippi shall be distributed among counties and municipalities in which the Authority had power property (including reservoir land allocated to power purposes) at the end of the preceding fiscal year in such manner that the sum of such remainder plus the total of payments for the same fiscal year by the Authority directly to counties of the state shall be apportioned among said counties and municipalities by the same ratio that the book value of the Authority's power property in each county and in each municipality, respectively, bore as of the end of such preceding fiscal year to the total of the book value of the Authority's power properties in all counties within the state (including properties in municipalities within such counties) plus the book value of the Authority's power properties located in all municipalities within the state. The apportionment above provided for, however, shall be subject to the following qualifications, and the payment distribution thereunder shall be subject to such adjustment as may be necessary to meet the conditions set out in the paragraphs below:
(i) Notwithstanding any other provisions of this article all payments in lieu of taxes by the Tennessee Valley Authority directly to any county for any fiscal year shall be retained by such county. Such direct payments shall be deducted from the amount finally apportioned to such county under this subsection (b) before distribution of the balance, if any, of such county's payment share for the particular fiscal year from the state government.
(ii) With respect to any particular fiscal year, no municipality of the state shall receive less than the former annual ad valorem property taxes levied by such municipality on power property purchased and operated by the Tennessee Valley Authority, based upon the average of two (2) years of such taxes next prior to purchase as determined by the Tennessee Valley Authority under the provisions of Section 13 of the Tennessee Valley Authority Act, as amended.
(iii) If the initially apportioned payment share of any county or municipality is less than the minimum tax replacement amount to which such county or municipality may be entitled under paragraphs (i) and (ii) above, then the amount due to such county or municipality shall be increased to conform with such requirements, and the previously apportioned shares of all other counties and municipalities shall be reduced pro rata so that the total of such reductions shall equal the total of increases necessary to meet the minimum payment requirements of this paragraph.
(2) From and after May 25, 1976, the funds from the Authority authorized for deposit in the General Fund, as provided by subsection (1)(a) of this section, shall be deposited directly into the Tennessee-Tombigbee Waterway Bridge Bond Retirement Fund created by Section 65-26-9. Except as otherwise provided in subsection (4) of this section, when an amount equal to twenty-five percent (25%) of the total costs as to the principal of and the interest on the bonds issued under the authority of subsection (1) of Section 65-26-15 shall have been paid, such funds shall again be deposited into the State General Fund and the provisions of subsection (3)(a) of Section 65-26-19 which pledged such funds from the Authority for payment of the bonds shall stand repealed.
(3) From and after May 25, 1976, any increase in funds from the Authority, authorized for distribution to the Counties of Alcorn, Chickasaw, Clay, Itawamba, Kemper, Lee, Lowndes, Monroe, Noxubee, Pontotoc, Prentiss and Tishomingo by Chapter 26 of Title 65 over the amount received in 1975, shall be deposited directly into the Tennessee-Tombigbee Waterway Bridge Bond Retirement Fund created by Section 65-26-9 until terminated by the provisions of Chapter 26 of Title 65.
(4) (a) When the principal of, redemption premium, if any, and interest on the general obligation bonds issued under Section 65-26-15 have been paid in full, the payments to be received thereafter by the State of Mississippi and counties therein from the Tennessee Valley Authority in lieu of taxes under Section 13 of the Tennessee Valley Authority Act of 1933, as amended, for each fiscal year shall be apportioned and paid as follows:
(i) Ten percent
(10%) of such payments shall be paid into * * * the TVA Service Area
Utilities Grant Fund created in Section 1 of this act.
(ii) Twelve and one-half percent (12-1/2%) of such payments shall be paid to Tishomingo County.
(iii) Seventy-seven and one-half percent (77-1/2%) of such payments shall be paid to the counties and municipalities in the state within the service area of the Tennessee Valley Authority in the proportion that the amount of sales of power service to retail consumers by the Tennessee Valley Authority, or any facility distributing such power, for the next preceding fiscal year in each county, excluding municipalities therein, and in each municipality, bears to the total sales of such power service for said fiscal year to retail consumers statewide.
(iv) Notwithstanding any provision of this subsection (4) to the contrary, from the amount determined to be distributed to each county, including municipalities therein, under this subsection, the State Tax Commission shall withhold twenty-five percent (25%) of such allocation and distribute same to all school districts within the county in the proportion that the number of teacher units allotted to each school district within the county bears to the total teacher units allotted to all school districts within the county.
(v) Notwithstanding any provision of this subsection (4) to the contrary, the amount which would otherwise be allocated to the Town of Burnsville by the distribution in fiscal year 1987 and each fiscal year thereafter shall be increased to the amount it actually received from the distribution in fiscal year 1985 by payment out of the amount which would otherwise be distributed to the County of Tishomingo.
(b) (i) For the first fiscal year only in which distribution of Tennessee Valley Authority in lieu tax payments is made pursuant to this subsection (4), One Million Dollars ($1,000,000.00) shall be paid into the appropriate fund for expenditure by the Yellow Creek State Inland Port Authority, subject to the approval of the Mississippi Board of Economic Development, for capital improvements and economic development.
(ii) An additional distribution of Tennessee Valley Authority in lieu tax payments pursuant to this subsection (4) shall be made to Union County and Benton County for the following fiscal years in the manner hereinafter provided:
A. For fiscal year 1987, a payment equal to eighty percent (80%) of the difference between the amount paid to the county and municipalities therein on or about October 17, 1986, and the amount which the county and municipalities therein would otherwise be entitled to receive based on a pro rata calculation of sales of power service to retail consumers within the county, including municipalities therein.
From the amount determined to be allocated to each municipality under subsection (4)(a)(iii) within the two (2) respective counties, sixty percent (60%) thereof shall be paid to the county.
B. For fiscal year 1988, a payment equal to sixty percent (60%) of the difference between the amount paid to the county and municipalities therein on or about October 17, 1986, and the amount which the county and municipalities therein would otherwise be entitled to receive based on a pro rata calculation of sales of power service to retail consumers within the county, including municipalities therein.
From the amount determined to be allocated to each municipality under subsection (4)(a)(iii) within the two (2) respective counties, forty percent (40%) thereof shall be paid to the county.
C. For fiscal year 1989, a payment equal to forty percent (40%) of the difference between the amount paid to the county and municipalities therein on or about October 17, 1986, and the amount which the county and municipalities therein would otherwise be entitled to receive based on a pro rata calculation of sales of power service to retail consumers within the county, including municipalities therein.
From the amount determined to be allocated to each municipality under subsection (4)(a)(iii) within the two (2) respective counties, twenty percent (20%) thereof shall be paid to the county.
(iii) Monies remaining after the allocations in items (i) and (ii) of this paragraph (b) have been made shall then be distributed as provided in subsection (4)(a)(i), (ii) and (iii) above, without affecting the initial calculation of the apportionment to Union County and Benton County, including any municipalities therein.
(5) Distributions required by this section shall be made as soon as practicable following receipt by the state of Tennessee Valley Authority payments in lieu of taxes; however, distributions need not be made more frequently than monthly. The amounts held by the State Fiscal Management Board on April 20, 1987, shall be distributed as soon as practicable following April 20, 1987.
SECTION 4. This act shall take effect and be in force from and after July 1, 2025.
