Miss. Admin. Code Title 6 — Economic Development

MISSISSIPPI DEVELOPMENT AUTHORITY MISSISSIPPI DEVELOPMENT AUTHORITY

Part 1 Financial Resources

Chapter 1 Job Protection Program

6 Miss. Admin. Code Pt. 1, R. 1.1 Qualified Companies Eligible for the Job Protection Program

A company must qualify as an at-risk industry to receive assists under the Job Protection Program. An at-risk industry (“At-Risk Industry”) is a company that has been operating in the State for not less than three (3) consecutive years. The company must have lost jobs or is at-risk of losing jobs because they have been outsourced. These jobs or the work to be performed by the company have been sent to an overseas provider or manufacturer located outside of the United States. The company must be financially sound, present evidence that the company can repay any debt and must not have defaulted on any previous loan from the State or Federal Government.

History

• Source: Miss. Code Ann. § 57-9-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 1.2 Eligible Projects

Loan funds may be used for land, building and depreciable fixed assets. Loan proceeds may not be used for working capital, debt refinancing or rolling stock.

History

• Source: Miss. Code Ann. § 57-9-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 1.3 Financing Restrictions for the Job Protection Program

Job Protection Program assistance maybe in the form of a grant, loan, or a loan and grant combination. However, the amount of grant, loan, or a loan and grant combination, shall not exceed fifty percent (50%) of the total cost of the project. The maximum grant amount is $200,000. The maximum loan amount is $800,000 while the minimum amount loaned is $200,000. The maximum grant and loan combination is $800,000. The term on the loan shall be ten (10) years maximum or the determined useful life of the project to be financed. The rate of interest will be based on the most recent twenty (20) year general obligation bond issued by the State. Other State finance programs, to include Community Development Block Grants, may not be used to finance the remaining cost of the project. A. Conditions. An existing company that accepts a grant or loan shall not reduce employment by more than twenty percent (20%) through the use of the project for which the grant or loan is provided. The company must inject a minimum of ten percent (10%) equity into the project. The company must document to the satisfaction of MDA that it is an At-Risk Industry. B. Loan Repayments. Principal and interest payments will be due on a monthly basis, with a fixed amount to be paid over the life of the loan. C. Security. Each loan will be secured by a lien of such type that provides adequate security for MDA to recover its investment in case of default on the loan. Liens may be in the form of personal guarantees, liens on the equipment installed or security interest in other assets. It should be noted MDA will require a one percent (1%) good faith deposit on all projects. Individuals or entities with twenty percent (20%) or more ownership in the company will be required to provide personal guaranties and life insurance.

History

• Source: Miss. Code Ann. § 57-9-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 1.4 Application Requirements

The application to be submitted by a company must include: A. Documentation that the Company is an At-Risk Industry; B. The purpose of the proposed loan including a list of eligible items and the cost of each; C. Documentation on how the financing of the project will improve productivity and competitiveness; E. The estimated cost of the total project with a detailed breakdown of all public or private sources of funding; F. The time schedule for implementation and completion of the project, evidencing an expeditious completion of the project; G. Submit company balance sheets, income statements and statements of cash flow for the previous three (3) fiscal years and current statements dated within ninety (90) days of application or three (3) years of tax returns; H. A two (2) year business plan for the project; I. List of principal stockholders, partners, or parties who have ownership of twenty percent (20%) or more.

History

• Source: Miss. Code Ann. § 57-9-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 1.5 Additional Application Requirements

MDA may require additional information as needed. Two (2) copies of the application must be submitted.

History

• Source: Miss. Code Ann. § 57-9-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 1.6 Establishment of Process for Disbursement of Funds, Reimbursements and Loan Closings

Based upon the terms and conditions established by MDA, MDA will prepare all security and loan documents, including but not limited to, the Loan Agreement and Promissory Note, (collectively "Loan Documents"). Prior to disbursement of any funds, all Loan Documents must be fully executed. The Borrower will also be responsible for paying for all costs associated with the closing of the loan, including document preparation, title searches and filing fees. A. Grant Closings. MDA will provide all documents needed to close the grant upon full approval and presentation of all required information B. Reimbursement Process. The MDA will release loan and grant funds on a reimbursement or services rendered basis for approved eligible costs of the project as incurred. The At-Risk Industry shall certify to MDA that the expenses were incurred and were in accordance with the project as approved by MDA. Funds will be released periodically upon receipt of supporting documentation from the Borrower based upon a schedule established by MDA.

History

• Source: Miss. Code Ann. § 57-9-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 1.7 Responsibility for Audits and Waivers

Loans and grants made under the Job Protection Loan Program are subject to audit by the State Department of Audit.

History

• Source: Miss. Code Ann. § 57-9-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 1.8 Waiver

These guidelines may be amended by MDA at anytime. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

History

• Source: Miss. Code Ann. § 57-9-1 (Rev. 2008)

Chapter 2 Advantage Jobs Incentive Program

6 Miss. Admin. Code Pt. 1, R. 2.1 Purpose

The Mississippi Advantage Jobs Incentive Program (“Advantage Jobs”) provides for a cash rebate to qualified employers for a period of up to ten years. This program is designed to assist qualified companies that promise significant development of the economy of the State of Mississippi (State) through the creation of quality jobs.

History

• Source: Miss. Code Ann. § 57-62-13 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 2.2 Participation

To receive this incentive, interested companies must submit an application to the Mississippi Development Authority (“MDA”). Upon approval, an Advantage Jobs Incentive Certificate (“Certificate”) will be issued that documents the terms of the rebate program. Once the approved company has met all requirements, the Mississippi State Tax Commission (“Tax Commission”) must be notified. After four quarters of program compliance, the Tax Commission will begin to make rebate payments to the company. Payments will continue for ten years, assuming that all requirements are maintained.

History

• Source: Miss. Code Ann. § 57-62-15 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 2.3 Eligible Companies

In order to receive benefits under the Advantage Jobs program, a company must be able to demonstrate that the creation of proposed jobs will provide a direct benefit to the State. To qualify, the company must meet the following requirements: A. Any business except retail and gaming establishments that provide an average annual wage of 125% of the county or state wage, whichever is less. The enterprise must create and maintain a minimum of 10 new full-time jobs in a Tier Three county, or 25 new full- time jobs in a Tier One or Two county; B. Data or information processing enterprises that provide an average annual wage of 100% of the county or state wage, whichever is less. The enterprise must create at least 100 new full-time jobs in a Tier Three county or 200 new full-time jobs in a Tier One or Two county; C. Manufacturing and distribution enterprises that provide an annual average wage of 110% of the county or state wage, whichever is less. The enterprise must invest at least $20,000,000 in land, buildings, and equipment and create at least 20 new, full-time jobs in a Tier Three county or 50 new full-time jobs in a Tier One or Two county; D. Research and development enterprises that provide an annual average wage of 150% of the state or county wage, whichever is less. The enterprise must create at least 10 new, full-time jobs; or

E. Technology intensive enterprises that provide an annual average wage of 150% of the state wage. The enterprise must create at least 10 new, full-time jobs.

History

• Source: Miss. Code Ann. § 57-62-15 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 2.4 Qualifications

The average annual wage is the total employee earnings subject to Mississippi personal income taxes, including bonuses and overtime. All jobs at the approved facility must be included in the calculation of the company’s average wage when determining whether the wages paid meet the required state or county thresholds. All jobs are also included in the calculation to determine whether program requirements are being met. The new jobs may be created due to a new business enterprise or an expansion of an existing business, as long as the company meets the minimum criteria set forth by the MDA. To qualify, the jobs must not have existed in this state before the date of approval by the MDA of the Advantage Jobs application. Additionally, any business entity that qualifies for the Advantage Jobs Incentive Program must also: A. Provide, or plan to provide to any new employees, a basic health benefit plan. Such plan must be in effect within 180 days of receiving any incentives. B. Meet jobs creation and wage requirements within twenty-four (24) months of the issuance of an Advantage Jobs Incentive Certificate (“Certificate”). C. Provide the Mississippi Development Authority with a performance agreement that outlines how the rebate will be used.

History

• Source: Miss. Code Ann. § 57-62-9 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 2.5 Ineligible Industries

The following industries do not qualify for the Advantage Jobs Incentive Program: A. Gaming: any gaming company that is regulated and/or subject to regulation by the State Gaming Commission cannot receive the Advantage Jobs Incentive. B. Retail: any business or industry that buys a product and resells it without changing the form of the product is considered a retail establishment and cannot receive the Advantage Jobs Incentive. C. Professional Services: professional establishments that provide services such as legal, medical, financial, or accounting with offices open to the public do not qualify for this incentive. D. Telecommunications: any business that operates as a commercial broadcast radio station, television station, or news organization primarily serving in-state markets is not qualified to participate on the rebate program.

History

• Source: Miss. Code Ann. § 57-62-9 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 2.6 Net Economic Benefit

The amount of the Advantage Jobs rebate is tied directly to the net economic benefit received by the state. This net benefit is shown as a Mississippi percentage of payroll that, based on the number of jobs and average annual salary estimates provided by the company, is allowable given the economic impact of the project. The net economic benefit is the lesser of:

A. The qualified employees’ state personal income tax withholding; B. A cost/benefit analysis prepared by MDA (the net benefit rate and the cumulative estimated net direct state benefit); or C. A legal maximum of 4%. Once the company has met all eligibility requirements, it must notify the Tax Commission. The Tax Commission will insure that the company has complied with all program requirements for four quarters.

History

• Source: Miss. Code Ann. § 57-62-9 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 2.7 Rebate Payments

After the company has remained in compliance for four consecutive quarters, rebate payments will begin. The amount of rebate paid is calculated by multiplying the amount placed in the fund by: A. 90% if the annual average wage is at least 175% of the county or state wage, whichever is less; B. 80% if the annual average wage is at least 125% and less than 175% of the county or state wage, whichever is less; or C. 70% if the annual average wage is less than 125% of the county or state wage, whichever is less. If the business or industry does not maintain jobs and salary requirements at any point after the date the first rebate payment is made, incentive payments will stop and will not resume until all requirements are again met or exceeded for one calendar quarter, to the satisfaction of the Mississippi State Tax Commission.

History

• Source: Miss. Code Ann. § 57-62-15 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 2.8 Acquisition of Existing Facilities and Net Economic Benefit

In connection with the acquisition of assets or facilities existing within the State at or prior to the acquisition date, no benefit under the Advantage Jobs Program will be available, except under the following circumstances: A. A formal decision to close the existing facility by the seller must have been announced by means of a notice (“WARN Notice”) delivered in the manner prescribed in the Workers Adjustment and Relocation Act, 29 U.S.C. Section 2101 and following. Other substantially similar formal, verifiable evidence that confirms a decision to close the existing facility may also be considered; and B. The purchaser must provide a letter to the MDA stating that without the benefits available under and pursuant to the Advantage Jobs program, the purchaser would be unwilling to purchase the facility or assets; and C. The equity owners of the seller may not have effective voting control, directly or indirectly, of the purchaser for a period of not less than ten (10) years, and under no circumstances may the equity owners of the seller during such period own more that twenty-five percent (25%) of the equity interest of the purchaser. The Advantage Jobs benefits offered, if any: (a) shall be based on the facts and circumstance of each case, (b) shall be subject to review and approval by the Executive Director of MDA and (c) shall be subject to any conditions imposed by the Executive Director in addition to or in lieu of the conditions stated above.

History

• Source: Miss. Code Ann. § 57-62-15 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 2.9 Advantage Jobs Application Process

All Advantage Jobs program documents may be obtained from MDA. To apply, three (3) copies of a completed Advantage Jobs Application (“Application”) must be submitted to MDA. A shall conduct a cost benefit analysis as prescribed by the Act. MDA has the sole discretion to qualify a company for benefits under the Advantage Jobs Program. Upon approval of an Application, MDA will issue an Advantage Jobs Incentive Certificate (“Certificate”). Such Certificate will establish the minimum average salary (“Salary Base”), number of jobs (“Job Base”), and the estimated net direct state benefit allowed. Once the approved company has met all requirements including jobs and salaries, qualified companies must file a claim with the Mississippi State Tax Commission. The company must specify the actual number of full-time jobs created and maintained by the company and provide the gross payroll in order to receive payment. The company must provide all information necessary to substantiate that requirements are being met to the satisfaction of the State Tax Commission. The company will be required to provide periodic reports to show continued eligibility and may be subject to audit. After four consecutive quarters of program compliance, rebates will begin to be paid by the Mississippi State Tax Commission. A qualified company may receive quarterly incentive payments for up to 10 years from the Tax Commission. The company will have 24 months from the date of the Certificate to meet the terms established under such Certificate.

History

• Source: Miss. Code Ann. § 57-62-15 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 2.10 Amendments and Waivers

Advantage Jobs is administered by the Mississippi Development Authority (“MDA”) and the Mississippi State Tax Commission (“Tax Commission”) pursuant to Section 57-62-1 et seq., Mississippi Code of 1972, as amended. These guidelines may be amended by MDA at anytime. MDA, in its discretion, may temporarily waive any requirement of these guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State laws.

History

• Source: Miss. Code Ann. § 57-62-15 (Rev. 2008)

Chapter 3 Mississippi Existing Industry Productivity Loan Program

6 Miss. Admin. Code Pt. 1, R. 3.1 Purpose

The Mississippi Existing Industry Productivity Loan Program (“Existing Industry Loan Program”), administered by the Mississippi Development Authority (“MDA”) is designed for making loans to existing industries or to local governmental entities to assist existing industries to deploy long-term fixed assets through new technology, which will improve productivity and competitiveness and for purchasing or refinancing land, buildings or equipment. Funding for this program is derived from state general obligation bonds.

History

• Source: Miss. Code Ann. § 57-93-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 3.2 Eligible Projects

Loan funds can be used to finance long-term fixed assets (“Fixed Assets”) or refinance land, buildings and equipment, provided that the company can demonstrate

that refinancing is necessary to maintain or expand the facility. This financing is for are assets which, through new technology, will improve productivity and competitiveness of the company. The benefits of such asset will have to be documented. Loan proceeds may not be used for working capital or rolling stock.

History

• Source: Miss. Code Ann. § 57-93-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 3.3 Qualified Borrower A

Companies - To obtain assistance under the Existing Industry Loan Program, the company must be a manufacturing enterprise that has operated in the State for not less than two (2) consecutive years. A manufacturing enterprise is one that is exclusively or predominately engaged in activities of an industrial or commercial nature wherein labor or skill is applied by hand or machinery, to materials belonging to the manufacturer so that a new, different, or more useful article is produced for sale. The company must be financially sound, present evidence that the company can repay the debt, and must not have defaulted on any previous loan from the State or Federal Government. B. Qualified Borrowers – Local Government Entities. Counties or incorporated municipalities may apply for a loan fund to assist a manufacturing enterprise in deploying long-term fixed assets.

History

• Source: Miss. Code Ann. § 57-93-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 3.4 Loan Conditions

An existing company that accepts a loan shall not reduce employment by more than twenty percent (20%) through the use of the long term fixed assets for which the loan is provided. The company must inject a minimum of up to ten percent (10%) equity into the project.

History

• Source: Miss. Code Ann. § 57-93-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 3.5 Loan Terms

The maximum amount of a loan shall not exceed $2,000,000 while the minimum amount is $250,000. The term of the loan shall be the determined useful life of the asset to be financed or twenty (20) years, whichever is less. The rate of interest on a loan will be at a fixed rate. The base rate will be 200 basis points over the Wall Street Journal Prime Rate with a floor of three percent; however, the rate of interest can be adjusted an additional 200 basis points above or below the base rate depending on the credit risk e.g. (collateral, loan terms, company's financials) associated with each loan.

History

• Source: Miss. Code Ann. § 57-93-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 3.6 Loan Repayment

Principal and interest payments will be due on a monthly basis, with a fixed amount to be paid over the life of the loan.

History

• Source: Miss. Code Ann. § 57-93-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 3.7 Liens

Each loan will be secured by a lien to provide adequate security for MDA to recover its investment in case of default on the loan. Liens may be in the form of personal

guarantees, liens on the equipment installed or a security interest in other assets. It should be noted MDA will require a one percent (1%) good faith deposit on all loan applications. Individuals or entities with twenty percent (20%) or more ownership in the company will be required to provide personal guaranties and life insurance. Local governmental entities applying for loans under this section shall pledge for repayment its homestead exemption annual tax loss reimbursement or sales tax revenue, respectfully.

History

• Source: Miss. Code Ann. § 57-93-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 3.8 Requirements for Loan Application Submission by a Company

The application to be submitted by a company must include: A. The purpose of the proposed loan including a list of eligible items and the cost of each; B. Documentation on how the financing of the Fixed Assets will improve productivity and competitiveness; C. The estimated cost of the total project with a detailed breakdown of all public or private sources of funding; D. The time schedule for implementation and completion of the project, evidencing an expeditious completion of the project; E. Company balance sheets, income statements and statements of cash flow for the previous three (3) fiscal years and current statements dated within ninety (90) days of application and/or three (3) years of tax returns; F. A two (2) year business plan for the project; G. List of principal stockholders, partners, or parties who have ownership of twenty percent (20%) or more.

History

• Source: Miss. Code Ann. § 57-93-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 3.9 Requirements for Loan Application Submission by a Local Government Entity

The applications submitted by a local government entity must include the same information for the company that would be submitted if the company applied plus the following: A. Certified proof of publication of the Resolution of Intention of the government entity to apply for an Existing Industry Loan Program. The Resolution must be published once a week for at least four (4) consecutive weeks in a newspaper having general circulation in the county. B. Upon receiving the results of the publication of the Resolution of Intention, the government entity will need to provide MDA with an execution Resolution of No Protest. C. Most recent audited financial statements. MDA may require additional information as needed. Two copies of the application must be submitted.

History

• Source: Miss. Code Ann. § 57-93-1 (Re. 2008)

6 Miss. Admin. Code Pt. 1, R. 3.10 Process for Disbursement and Reimbursement of Funds

Based upon the terms and conditions established by MDA, MDA will prepare all security and loan documents, including but not limited to, the Loan Agreement and Promissory Note, (collectively “Loan Documents”).

Prior to disbursement of any funds, all Loan Documents must be fully executed. The Borrower will also be responsible for paying for all costs associated with the closing of the loan, including document preparation, title searches and filing fees.

History

• Source: Miss. Code Ann. § 57-93-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 3.11 Reimbursement Process

The MDA will release loan funds on a reimbursement or services rendered basis for approved eligible costs of the project as incurred. The Borrower shall certify to MDA that the expenses were incurred and were in accordance with the project as approved by MDA. Funds will be released periodically upon receipt of supporting documentation from the Borrower based upon a schedule established by MDA.

History

• Source: Miss. Code Ann. § 57-93-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 3.12 Audit

Loans made under the Existing Industry Loan Program are subject to audit by the State Department of Audit.

History

• Source: Miss. Code Ann. § 57-93-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 3.13 Waiver

These guidelines may be amended by MDA at anytime. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

History

• Source: Miss. Code Ann. § 57-93-1 (Rev. 2008)

Chapter 4 Agribusiness Enterprise Loan Program

6 Miss. Admin. Code Pt. 1, R. 4.1 Purpose

The Agribusiness Enterprise Loan Program ("ABE"), to be administered by the Mississippi Development Authority ("MDA"), is a loan program designed to encourage the extension of conventional financing and the issuance of letters of credit, by private institutions, to agribusiness enterprises in the State of Mississippi ("State"). MDA will provide interest-free loans to qualified borrowers engaged in the production, manufacturing, and processing of agribusiness related goods and services. The following guidelines set out the requirements under the program, and MDA reserves the right to make changes to these guidelines and to waive any restriction not set by statute.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.2 Definitions

A. Agribusiness means any aqua cultural, horticultural, greenhouse production or agricultural related industrial, manufacturing, research and development or processing enterprise located in the State and owned by a resident of the State. The agribusiness must be creditworthy and demonstrate the ability to repay the loan and must not have defaulted on any previous loan from the State or Federal Government.

B. Lender means any commercial bank, savings bank, federal land bank, farm credit bank, agricultural credit association or other farm credit agency, which is domiciled or qualified to do business in the State.

History

• Source: Miss. Code Ann. § 69-2-9.

6 Miss. Admin. Code Pt. 1, R. 4.3 Guaranties

Each Agribusiness Enterprise Loan ("ABE Loan") must be 100% guaranteed to MDA by an eligible Lender.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.4 Application Process

An eligible Lender must originate the ABE Loan application for an agribusiness.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.5 Servicing Agreement

The Lender must provide MDA with a Servicing Agreement Letter to be accepted upon approval of the ABE Loan.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.6 Loan Closing Documents

The Lender must provide, in writing, all required information for the preparation of ABE Loan closing documents. All closing documents must be properly executed and returned to MDA immediately. All exhibits to the closing documents must be filed and copies sent to MDA no later than thirty (30) days from the date of closing.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.7 Loan Servicing Fees

The Lender may charge an agribusiness a servicing fee, which may not exceed one percent (1%) of the ABE Loan amount. The fee will be a one- time charge collected when the ABE Loan is closed. The fee may be paid directly by the agribusiness, deducted from the ABE Loan proceeds, or financed as part of the Lender's loan. The Lender shall also be responsible for collecting and remitting to MDA, at loan closing, a servicing fee which represents one percent (1%) of the ABE Loan. The Lender shall be responsible for servicing the ABE Loan, which will include all repayments to MDA. The Lender will also enforce the terms and conditions of all closing documents executed for the ABE Loan.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.8 Loan Proceeds

ABE Loan proceeds may be used to finance buildings and equipment and for costs associated with the purchase of land (appraisals, title searches, etc.). However, proceeds cannot be used to purchase land. ABE funds to new or existing poultry farms for the construction of new or additional houses will be governed by terms, conditions, and requirements pursuant to Terms and Conditions for Loan Proceeds pursuant

to Rule 3.2.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.9 Terms and Conditions for Loan Proceeds

The following terms, conditions and requirements must be satisfied by the terms of each poultry farm loan for the construction of new or additional poultry houses for said loan to be eligible for participation in this ABE program:

A. All live birds must be weighed by a bonded weighmaster on certified scales. Said procedure may be witnessed by a producer or family member with proper identification. This subsection A does not apply to loans for pullet and breeder houses. B. All feed must be weighed by a bonded weighmaster on certified scales. Said procedure may be witnessed by a producer or family member with proper identification. C. Producers shall be provided by Processor with copies of all documentation that impact producer's settlement payment. Said documentation shall include, but not be limited to: 1. Producer's copy of USDA Form 9061-2; 2. Loading ticket, at time of catching, containing truck number, trailer number, number of birds per coop, and number of full coops; 3. Copy of weight tickets for live birds; 4. Copy of medication charges either at delivery or with settlement payments; and 5. Copy of sample computation of payment formula, which shall use producer's actual figures. 6. This subsection C does not apply to loans for pullet and breeder houses. D. Processor must use all available means to ensure proper handling of birds from farm to plant and processor will be responsible for damage or theft caused by catching crew to producer's equipment of facilities. E. Equipment changes, on equipment in good working order, shall be the basis for density cuts or termination of a contract only when the health and safety of the birds are an issue F. Equipment changes required on processor approved equipment that is in good working order shall only be made when accompanied by processor incentives.

G. Processors shall test, upon request of producers, new equipment that producers wish to add to the processor approved equipment list. H. Producers and their immediate family who are employed by the processor in live production shall not be ranked with other contract producers. I. A producer's settlement payment shall not be affected by his membership in any organization or association. J. Upon request by a producer, the processor shall furnish to the producer a copy of any veterinary report related to producer's flock within forty-eight (48) hours of receipt of said report, where such report is available. K. Processor shall share with producer all known information and causes which are connected to problematic situations that affect farm management, including parent stock and age. L. Processor shall provide to producer information on feed delivery procedures. M. When requested, feed delivery trucks will be sealed at the plant with corresponding, numbered seals that will be listed on the feed delivery ticket. The grower may request that he be notified by telephone before the truck leaves the feed mill. The seal will not be broken unless the grower is not available at the time of scheduled delivery. N. The processor shall provide the applicable written guidelines for broiler, pullet or breeder management.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.10 Use of Loan Proceeds

No loan proceeds shall be used to pay off any existing debt for loan consolidation purposes; to finance acquisition, construction, improvement, or operation of real property which is primarily for sale or investment; to provide or free funds for speculation in any kind of property or as a loan to owners; nor to provide working capital.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.11 Maximum Loan Amount

The amount of a loan to any single agribusiness shall not exceed twenty percent (20%) of the total cost of the project or $250,000, whichever is less. Upgrades for the retrofitting of poultry houses shall not exceed thirty percent (30%) of the total cost of the project or $250,000, whichever is less. Land purchases will not be considered in the total cost of the project when determining an ABE Loan. In addition, an existing agribusiness (one that has been in business for a minimum of the previous twenty- four (24) months at the time of application) upon use of their initial $250,000, is eligible to receive an ABE Loan or loans. For the purpose of assisting such agribusiness to make upgrades, renovations, repairs and

other improvements to their equipment, facilities and operations, which shall not exceed $250,000 or thirty percent (30%) of the total cost of the project for which financing is sought, whichever is less. The maximum aggregate amount of ABE loans to any one existing agribusiness shall not be more than $500,000.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.12 Interest on an ABE Loan

No interest will be charged on an ABE Loan. Only the amount actually loaned to an agribusiness shall be required to be repaid to the State.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.13 Term of the ABE Loan

The term of the ABE Loan shall match the term of the Lender's loan, up to the maximum maturity of fifteen (15) years.

History

• Source: Miss. Code Ann. § 69 2-13.

6 Miss. Admin. Code Pt. 1, R. 4.14 Disbursements

Disbursements of ABE funds will be made to Lenders on behalf of borrowers after project construction is completed. Requests for payment must be submitted on the MDA Request for Payment Form, which will be provided by MDA.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.15 Repayment of Funds

All repayments of ABE funds to MDA shall match the repayments of the borrower to the Lender and shall be submitted upon the terms stated in the Lender's Authorization forms.

A. If a Lender collects payments on more than one ABE Loan, MDA will allow a lump sum payment on all outstanding loans. An itemized list of the source of funds, including ABE Loan numbers, must accompany this payment. Lenders must submit all collections for a one-month period by the fifth of the following month.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.16 Agreements Required for ABE loans

ABE Loans are subject to an agreement, providing that any and all outstanding obligations may be accelerated and payments called for if, during the term of the loan, any change of ownership or control of the agribusiness concern occurs without the prior written consent of MDA, or if any adverse change occurs without notification to MDA.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.17 Notification of Prepayment

The Lender shall notify MDA in writing of any prepayments of the Lender's loan. If the Lender's loan is to be paid in full, the MDA portion

of the loan must be paid off first. MDA and the Lender must determine the application of partial payments.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.18 Prohibition Against the Sale, Assignment or Conveyance of Loan and Note

The Lender's Loan and Note is prohibited from being sold, assigned, conveyed, sub-participated, subdivided, encumbered or otherwise transferred.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.19 Default

MDA will consider any loan that has become delinquent, in amount equal to the required annual payment, to be in default.

History

• Source: Miss. Code Ann. § 69-2-13.

6 Miss. Admin. Code Pt. 1, R. 4.20 Compliance with Federal Immigration Laws and Mississippi Employment Protection Act

Companies are required to ensure compliance with the Mississippi Employment Protection Act ( 'MEPA ). Miss. Code. Ann.§ 71-11-3 et seq.. and must register and participate in the status verification system for all newly hired employees. The term "employee" as used herein means any person that is hired to perform work within the State of Mississippi. As used herein. "status verification system" means the Illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program, or any other successor electronic verification system replacing the E-Verify Program. Companies must maintain records of such compliance and, upon request of the State of Mississippi and approval of the Social Security Administration or Department of Homeland Security, where required. to provide a copy of each such verification to the State. Any person assigned to perform services must meet the employment eligibility requirements of all federal and state immigration laws. Any breach may subject the company to the following: (a) termination of the Agreement and ineligibility for any state or public contract in Mississippi for up to three (3) years. with notice of such cancellation/termination being made public, or (b) the loss of any license, permit, certification or other document granted to the company by an agency. department or governmental entity for the right to do business in Mississippi for up to one (1) year. or (c) both. In the event of such termination/cancellation, the company would also be liable for any additional costs incurred by the State due to contract cancellation or loss of license or permit.

Adopted: September 12, 2025

History

• Source: Miss. Code Ann. § 71-11-3: Miss. Code Ann.§ 57-1-371: Miss. Code Ann.§ 57-1-373.

Chapter 5 Workforce Training Fund

6 Miss. Admin. Code Pt. 1, R. 5.1 Purpose

The Mississippi Development Authority (MDA) Workforce Training Fund was established by the State Legislature during the Second Extraordinary Session in 2010. The purpose of the MDA Workforce Training Funds is to provide workforce training through state

institutions of higher learning, community and junior colleges, and Workforce Investment Network job centers, referred to in this document as Training Providers, to meet workforce training needs not met by other resources. The funds shall be used to effectively retain and keep businesses competitive through skills training and upgrades for new and existing full-time employees. The program is structured to be flexible to meet the training objectives of a business or a group of businesses. Training Providers are encouraged to use these grants in connection with training funded from Federal, State, and other sources.

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.2 Eligible Applicants

Applications for assistance must be submitted by a state institution of higher learning, a public community or junior college, or the administrative entity for a Workforce Investment Area on behalf of a Workforce Investment Network (WIN) Job Center (Training Providers).

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.3 Eligible Businesses

A. Existing - For-profit businesses that have been in operation for a minimum of one year prior to the application date, are current on all federal and state tax obligations, and are financially viable are eligible to apply. B. New - For-profit businesses that have been in operation for less than one year prior to the application date, are current on all federal and state tax obligations, are financially viable and have an adequate two-year business plan are eligible to apply.

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.4 Eligible Projects

Eligible projects must meet critical training needs of a specific business (Requesting Business) to train new or existing employees in skills necessary for the operation of the business. MDA Workforce Training funds should be used to maximize existing training resources available through the Workforce Enhancement Training Funds, the Workforce Investment Act and other sources. The training provider and affected business or group of businesses must demonstrate that the training is not eligible for or has exhausted funding through these or other existing programs. Applications must include documentation that the requested funding is not available from other training resources. The MDA Workforce Training Fund shall be available for, but not limited to, the following industry sectors: A. Aerospace B. Clean and Renewable Energy C. Data Services D. Defense E. Logistics F. Manufacturing and Processing G. Tourism

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.5 Funds Ineligible for Certain Projects

MDA Workforce Training Funds may not be used to provide the following: A. Proprietary management training packages such as DDI, VitalEdu, Achieveglobal, Plexus, ISO-9000, QS-9000, ISO-14000-01, Zig Ziglar, Phi Theat Kappa Leadership, and Stephen Covey; and B. Training to a gaming enterprise

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.6 Project Requirements

The following types of training may be funded: A. Occupational skills training designed to meet the special requirements of a business or a group of businesses and conducted with employer commitment to continue to retain all trained individuals upon successful completion of the training; B. Educational training including, but not limited to, workplace literacy, basic skills, soft skills, and English as a second language; C. Training in strategies to improve efficiency of business operations An applicant must demonstrate the planned effect of the proposed training on business operations and identify any transferable skills to be acquired by the employees.

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.7 Application Requirements

A. Any business or industry desiring additional training assistance from a state institution of higher learning, a public community or junior college, or the administrative entity for a Workforce Investment Area on behalf of a Workforce Investment Network (WIN) Job Center, hereafter referred to as Training Providers, under this section shall work with the Training Provider to complete and submit an application consisting of the information listed below. Applications to MDA will be made by the Training Provider and shall include the items requested below. The standard cover sheet included with application; 1. A letter from the Requesting Business to the Training Provider that request the training and describes how the training will meet a critical need to train new or existing employees in skills necessary for the operation of the business; 2. A description of the need and purpose for which the training assistance is requested; 3. A description of how the proposed training is consistent with MDA’s workforce training priorities described on page 2 of the guidelines at section 2.c; 4. A description of the training to be delivered, the training objectives and how the funds will be used to meet the objectives; 5. A statement of the number and types of jobs to be trained, identifying the number of new and the number of existing employees to receive training; 6. A detailed description and supporting documentation of the steps taken to access or utilize other esources and documentation that such resources are not available to meet the need; 7. A detailed description of the total training project costs, supported by a line-item cost estimate;

8. A proposed schedule for the planning, provision and completion 9. Any other information required by MDA B. The MDA shall have sole discretion in the awarding of WTF funds, provided that the application has met the statutory requirements of this section and that funds are available. C. An electronic and one paper copy of the application must be submitted to MDA. MDA will evaluate the application to determine if the project meets the program Criteria. Please allow a minimum of 30 days for the application to be reviewed and the Grant Agreement to be finalized. D. A grant agreement will be executed between the Training Provider and MDA. The Grant Agreement cannot be executed until all required conditions in these guidelines have been met and all documentation has been received. E. If adequate funding is not available from other sources, the Requesting Business will work with the applicable Community or Junior College, Workforce Investment Board or Institution of Higher Learning to complete the MDA Workforce Training Application.

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.8 Maximum Dollar Amount

The maximum amount for MDA Workforce Training Funds that may be provided for any one project is $100,000.

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.9 Reimbursement Training Expenses

A. Instructor or trainer salaries or tuition B. Curriculum development C. Textbooks/manuals D. Wage reimbursements: WIN Job Center, on-the-job training, and internships only.

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.10 Conditions

A Grant Agreement will be executed between the Training Provider and MDA. The Grant Agreement cannot be executed until all required conditions in these guidelines of the application are met and all documentation is received.

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.11 Process

MDA will release Workforce Training funds on a reimbursement basis for approved eligible costs of the project as incurred. Funds will be released upon receipt of the Workforce Training Reimbursement Requisition and supporting documentation from the Training Provider. Funds may not be drawn down more frequently than once per month. Training Provider has three months from the last date training as agreed to in the Grant Agreement to request reimbursement for training project costs.

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.12 Monitoring and Auditing

MDA may monitor all projects to ensure compliance with the original application and the Grant Agreement. Funds provided under MDA Workforce Training Funds are subject to audit by the State Department of Audit.

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.13 Project Performance

The State Workforce Investment Board (SWIB) has created a centralized location for workforce and economic information of the state. The SWIB Data Center provides access to high-quality, timely, and relevant information that supports everyday decision making and strategic planning in Mississippi. MDA Workforce Training Funds program performance shall be tracked in that center. The training provider must maintain and transfer reliable project participant information and datasets into the SWIB Data Center as prescribed in the Grant Agreement.

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 5.14 Waiver

These guidelines may be amended by MDA at any time. MDA, at its discretion, may waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State law.

History

• Source: Miss. Code Ann. § 57-1-401 (Rev. 2008)

Chapter 6 Farish Street Historic District Loan Program

6 Miss. Admin. Code Pt. 1, R. 6.1 Guidelines

The Farish Street Historic District Loan Program (“FSLP”), administered by the Mississippi Development Authority (“MDA”), is designed to make grants available to the Central Mississippi Planning and Development District (“CMPDD”) for the purpose of making low interest loans to persons or entities to develop certain property in the Farish Street Historic District (“District”).

History

• Source: Senate Bill 3194, 1999 Regular Session, Section 2(3)(a), as amended by Chapter 533 Laws of 2010.

6 Miss. Admin. Code Pt. 1, R. 6.2 Eligibility

To be eligible for funding under the program, a person or entity must submit an application provided by the Mississippi Department of Archives and History (“MDAH”) along with plans for the proposed project to MDAH for review. MDAH must determine that the proposed project conforms to the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings. MDAH shall also obtain a positive opinion regarding the proposed project from the Farish Street Neighborhood Historic District Foundation (“the Foundation”). Upon approval of a project (“the Project”), MDAH shall notify CMPDD of its approval in writing.

History

• Source: Senate Bill 3194, 1999 Regular Session, Sections 2(3)(a), 3(1)(a)-(e), 3(2)as amended by Chapter 533 Laws of 2010.

6 Miss. Admin. Code Pt. 1, R. 6.3 Requirements

FSLP proceeds are limited to the development of commercial and culturally significant property located in the District, to include new building construction and/or the rehabilitation of historic buildings. The proceeds of the loan may be used to pay costs incurred by such person or entities for acquisition; construction; demolition; design, engineering, architectural, consulting and other services; and other costs approved by the Mississippi Development Authority (MDA). Loan proceeds may not be used for the purchase of land or buildings unless a specific project is planned on that property. FSLP funds may be used to finance up to 90% of the total costs associated with the Project. The borrower must inject a minimum of 10% equity into the Project in the form of cash or tangible assets, which may be used to cover ineligible project costs. The interest rate to be charged is one-percent (1%) below the Federal Reserve Discount Rate. Should interest rates change from the date of loan commitment from CMPDD to the date of closing, the interest rate quoted in the commitment will prevail. The maximum repayment term for a loan cannot exceed 20 years and is based on the loan amount and the projected revenues from the investment property or cash flow of the business. If property is being leased, the term of the loan cannot exceed the term of the lease. Personal and/or corporate guaranties will be required as deemed appropriate by the CMPDD and MDA. Applicants must be creditworthy and demonstrate the ability to repay the loan. Applicants must be in compliance with all state and federal regulatory agencies and must not be in default on any previous debt or obligation to the State or Federal Government.

History

• Source: Senate Bill 3194, 1999 Regular Session, Section 2, as amended by Chapter 533 Laws of 2010.

6 Miss. Admin. Code Pt. 1, R. 6.4 When Not Available

FSLP loans are not available under the following circumstances: A. To pay off existing debt for consolidation purposes; B. If the direct or indirect purpose or result would be to pay off creditors of applicants who are inadequately secured or in a position to sustain a loss; C. If the assistance would, directly or indirectly, provide or replenish funds for payment, distribution, or as a loan to owners, partners, or stockholders of the applicant and would not change the ownership interest of the business; D. A charitable institution or nonprofit enterprise; E. A newspaper, magazine, radio, television broadcasting company, or similar enterprise through which editorial opinions are expressed; or F. Entities engaged in the business of lending, directly or indirectly. The FSLP is designed to provide permanent financing and may not be used for interim financing of building construction and/or rehabilitation of commercial property.

History

• Source: Senate Bill 3194, 1999 Regular Session, as amended by Chapter 533 Laws of 2010.

6 Miss. Admin. Code Pt. 1, R. 6.5 Contacts

An individual or business interested in applying for a loan should first contact the City of Jackson (“the City”) Department of Planning and Development. The City will provide coordination between the applicant, MDAH, and the Foundation. An opinion regarding the Project shall be rendered by the Foundation and provided to MDAH.

History

• Source: Senate Bill 3194, 1999 Regular Session, as amended by Chapter 533 Laws of 2010.

6 Miss. Admin. Code Pt. 1, R. 6.6 Meeting the Prospective Buyer

Upon notification of MDAH's approval, CMPDD shall meet with the prospective borrower to review the Project. If the Project meets the program guidelines and the proposal appears to be economically feasible, a Financial Application will be provided for completion.

History

• Source: Senate Bill 3194, 1999 Regular Session, as amended by Chapter 533 Laws of 2010.

6 Miss. Admin. Code Pt. 1, R. 6.7 Review

A completed Financial Application, with the required attachments, must be submitted to CMPDD for consideration. The CMPDD Board of Directors will review and approve or reject the Project. For projects approved by CMPDD, the application and supporting documentation will be submitted to MDA for final review.

History

• Source: Senate Bill 3194, 1999 Regular Session, as amended by Chapter 533 Laws of 2010.

6 Miss. Admin. Code Pt. 1, R. 6.8 Financial Application Overview

The following information must be furnished with a completed Financial Application: A. Description of the proposed project to include its intended use after completion (i.e. lease, sublease or occupy); B. Projected budget for rehabilitation or construction and cost estimates to substantiate uses of funds; C. If borrower is to occupy the property: (i) Copy of lease, if applicable; (ii) Business plan to include projected balance sheets, income statements, and cashflow statements for two (2) years. D. If borrower will be leasing the property: (i) Copy of the lease and any sub-lease(s); (ii) Projected cash flow statements of leased property for the two (2) year period after project completion; (iii) Personal financial statement of lessee/sub-lessee and financial statements of any affiliated businesses of same; (iv) Business plan of lessee/sub-lessee to include projected balance sheets, income statements and cash flow statements for a two (2) year period E. Balance sheets and income statements of any affiliated businesses of the borrower (through ownership or management control) for the past two (2) years F. Current personal financial statement for each applicant or for corporate borrowers, each principal with 20% or more ownership Upon approval by MDA and CMPDD, a commitment letter will be issued to the applicant. FSLP loan proceeds will be disbursed upon project completion.

History

• Source: Senate Bill 3194, 1999 Regular Session, as amended by Chapter 533 Laws of 2010.

6 Miss. Admin. Code Pt. 1, R. 6.9 General

CMPDD will close and service all loans. Borrowers will be required to make monthly payments of principal and interest, based upon an amortization schedule provided by CMPDD. On the 15th day of each month, CMPDD shall remit a check to MDA, for all principal loan payments made during the month, along with an itemized breakdown of each payment. Interest received in the form of repayments and investment interest earned may be retained by

CMPDD to cover administrative costs.

History

• Source: Senate Bill 3194, 1999 Regular Session, as amended by Chapter 533 Laws of 2010.

6 Miss. Admin. Code Pt. 1, R. 6.10 Loan Closing

After a loan closes, CMPDD shall provide evidence to MDA that all collateral and security documents have been filed and perfected, including, but not limited to, adequate hazard insurance, life insurance on the borrower(s) and other insurance such as general liability coverage.

History

• Source: Senate Bill 3194, 1999 Regular Session, as amended by Chapter 533 Laws of 2010.

6 Miss. Admin. Code Pt. 1, R. 6.11 Default Loans

CMPDD shall adopt and follow a prudent collection schedule. In the event of a default, CMPDD shall take all necessary and appropriate actions to recover the principal and interest due including enforcing personal guaranties. All defaulted loans shall be reported to appropriate credit bureau(s).

History

• Source: Senate Bill 3194, 1999 Regular Session, as amended by Chapter 533 Laws of 2010.

6 Miss. Admin. Code Pt. 1, R. 6.12 Reporting Requirements

CMPDD will be required to file a status report with MDA semiannually. These reports will reflect information as of the last day of each semiannual period and will be due by June 15 and December 15 of each year.

History

• Source: Senate Bill 3194, 1999 Regular Session, as amended by Chapter 533 Laws of 2010.

6 Miss. Admin. Code Pt. 1, R. 6.13 Waiver

These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public c purpose of the Act and is not prohibited by State law.

History

• Source: Senate Bill 3194, 1999 Regular Session, as amended by Chapter 533 Laws of 2010.

Chapter 7 Small Business and Existing Forestry Industry Loan Program

6 Miss. Admin. Code Pt. 1, R. 7.1 Guidelines

The Small Business and Existing Forestry Industry Loan Program (SBEFI), to be administered by the Mississippi Development Authority (MDA), is a loan program designed to encourage the extension of conventional financing and the issuance of letters of credit, by private institutions, to qualified enterprises in the State of Mississippi (the State). MDA will provide low-interest loans to qualified borrowers engaged in qualified small businesses or the existing forestry industry. The following guidelines set out the requirements under the program, and MDA reserves the right to make changes to these guidelines and to waive any restriction not set by statute.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.2 Qualified Participants

Small Business/Existing Forestry Industry Loans may be made to the following participants: A. Small Businesses: commercial enterprises with less than:

(i) 100 full time employees; (ii) Seven Million dollars in gross revenues; or (iii) Seven hundred fifty thousand dollars in profit after taxes. B. Existing Forestry Industry Enterprises: manufacturing enterprises with its principle place of business in the state that: (i) Have been operational in the state for a minimum of three years; (ii) Perform the initial processing of logs for the production of lumber, poles, or timber; and (iii) Has maintained an average of at least fifteen employees within the past thirty- six months of application. (iv) Exception: Does not include enterprises with the primary business of producing chips, or pulp manufacturer and/or paper manufacturer. (v) Has employed an average of not less than fifteen (15) full time employees based on the most recent thirty-six-month period.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.3 Financial Institution Defined

An eligible Financial Institution is any commercial bank, savings bank, federal land bank, farm credit bank, agricultural credit association or other farm credit agency, which is domiciled or qualified to do business in the State.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.4 Participation Requirements

An eligible Financial Institution must originate the SBEFI Loan application for an eligible business on the form attached hereto as Exhibit C; along with a cover letter (Exhibit D). The Financial Institution must provide MDA with a Servicing Agreement Letter (Exhibit A) to be accepted upon approval of the SBEFI Loan. The Financial Institution must provide, in writing, all required information for the preparation of SBEFI Loan closing documents. All closing documents must be properly executed and returned to MDA immediately. All exhibits to the closing documents must be filed and copies sent to MDA no later than thirty (30) days from the date of closing. The Financial Institution may charge the business a servicing fee, which may not exceed one percent (1%) of the SBEFI Loan amount. The fee will be a one-time charge collected when the SBEFI Loan is closed. The fee may be paid directly by the business, deducted from the SBEFI Loan proceeds, or financed as part of the Financial Institution's loan. The Financial Institution shall also be responsible for collecting and remitting to MDA, at loan closing, a servicing fee which represents one percent (1%) of the SBEFI Loan. The fee will be a one-time charge and may be paid by the agribusiness, deducted from the SBEFI Loan proceeds, or financed as a part of the Financial Institution's loan. The Financial Institution shall be responsible for servicing the SBEFI Loan, which will include all repayments to MDA. The Financial Institution will also enforce the terms and conditions of all closing documents executed for the SBEFI Loan.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.5 Use of Loan Proceeds

SBEFI Loan proceeds for Small Businesses may be used for buildings, provide working capital, acquire machinery and equipment. SBEFI Loan proceeds for

Existing Forestry Industry Enterprises may be used to provide working capital, acquire machinery and equipment, make upgrades and improvements to machinery and equipment, and acquire raw materials.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.6 Restrictions on Use of Loan Proceeds

No loan proceeds shall be used to pay off any existing debt for loan consolidation purposes; to finance acquisition, construction, improvement, or operation of real property which is primarily for sale or investment; to provide or free funds for speculation in any kind of property or as a loan to owners.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.7 Loan Limits

The amount of a loan to any single SBEFI shall not exceed fifty percent (50%) of the total cost of the project or $1,000,000, whichever is less. The minimum amount for an SBEFI loan will not be less than $250,000.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.8 Interest

Interest shall be charge on the SBEFI loan at a rate equal to one percent (1%) above the current published prime rate at the time of SMFI loan approval by the MDA.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.9 Term Limit

The term of the SBEFI Loan shall match the term of the Financial Institution's loan, up to the maximum maturity of five (5) years.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.10 Disbursements

Disbursements of SBEFI funds will be made to Financial Institutions on behalf of borrowers. Requests for payment must be submitted on the MDA Request for Payment Form (Exhibit B).

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.11 Repayments

All repayments of SBEFI funds to MDA shall match the repayments of the borrower to the Financial Institution and shall be submitted upon the terms stated in the Lender's Authorization forms.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.12 Lump Sum Payments

If a Financial Institution collects payments on more than one SBEFI Loan, MDA will allow a lump sum payment on all outstanding loans. An itemized list of the source of funds, including SBEFI Loan numbers, must accompany this payment. Financial Institutions must submit all collections for a one-month period by the fifth of the following month.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.13 Agreement Terms

SBEFI Loans are subject to an agreement, providing that any and all outstanding obligations may be accelerated and payments called for if, during the term of the loan, any change of ownership or control of the business concern occurs without the prior written consent of MDA, or if any adverse change occurs without notification to MDA.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.14 Prepayments

The Financial Institution shall notify MDA in writing of any prepayments of the Financial Institution's loan. If the Financial Institution's loan is to be paid in full, the MDA portion of the loan must be paid off first. MDA and the Financial Institution shall receive partial payments on a pro-rata basis.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.15 Nontransferability

The Financial Institution's Loan and Note is prohibited from being sold assigned, conveyed, subparticipated, subdivided, encumbered or otherwise transferred.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.16 Default

MDA will consider any loan that has become delinquent, in amount equal to the required payment, to be in default.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.17 Audit

Loans made under the MSFI loan program are subject to audit by the State Department of Audit.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 7.18 Waiver

These guidelines may be amended by MDA at anytime. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

History

• Source: Miss. Code Ann. § 57-111-1 (Supp. 2008)

Chapter 8 Mississippi Freight Rail Service Projects Revolving Loan/Grant Program

6 Miss. Admin. Code Pt. 1, R. 8.1 Guidelines

The Mississippi Freight Rail Service Projects Revolving Loan/Grant Program (“RAIL”) administered by the Mississippi Development Authority (“MDA”) is designed for making loans and grants to municipalities and/or counties (the “Applicant”) to finance freight rail service projects in the State of Mississippi (“State”). Counties and municipalities are encouraged to use these funds in connection with other state and federal

programs. Funding for loans/grants to applicants is derived from the issuance of State bonds. RAIL was enacted by the State Legislature during the Regular 1995 Session.

History

• Source: Miss. Code Ann. § 57-44-7 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 8.2 Eligibility

The governing authority of a municipality or county must submit the application for assistance. The municipality or county may use the RAIL funds to provide loans to railroad corporations for freight rail service projects. Projects which are eligible for assistance must be for freight rail service projects in Mississippi's counties and municipalities and are as follows: A. A project which involves the acquisition, construction, installation, operation, modification, renovation, or rehabilitation of any freight rail service facilities. B. A project which may include any fixtures, machinery, or equipment used in conjunction with any such facilities. C. Any project for any freight transportation purpose.

History

• Source: Miss. Code Ann. § 57-44-7 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 8.3 Allowable Costs

A. Construction costs (including reasonable and customary site work for buildings, right- of-ways, easements, etc.). B. Up to eight percent (8%) of the principal loan amount for design work, i.e., engineer or architect. Engineering and/or architectural costs above 8% will be paid from other funding sources.

History

• Source: Miss. Code Ann. § 57-44-7 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 8.4 Project Requirements

A. The Applicant must be an incorporated municipality or a county. B. The Applicant may not purchase an existing building or facility for more than the appraised value. C. The Applicant may not acquire buildings or facilities from individuals, companies, or corporations with RAIL funds, and subsequently lease them to the seller or previous owner. D. The Applicant or railroad corporation will be required to retain title on all freight rail service improvements until the loan has been repaid. E. Any interest earned on the RAIL funds must be used on the project or returned to the state.

History

• Source: Miss. Code Ann. § 57-44-7 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 8.5 Application Requirements

A. The Applicant's certified public accountant, auditor or fiscal officer must verify on official letterhead that the financials reflect the Applicant's ability to repay the loan. The verification must include the source of repayment, i.e., surcharge or other verifiable means of repayment.

B. The most current annual audit of the Applicant and the latest financial summary reflecting any additional long-term debt or any changes in their financial position since the last annual audit was prepared must be furnished to the Community Services Division of the Mississippi Development Authority. C. The Applicant must give public notice, as required. (All applicants must use the attached Public Notice and it must have been published within the last six months prior to submittal of the loan application.) D. Once the publication process is complete, a certified copy of the minutes of the Applicant must be submitted showing their decision to proceed with the loan. E. The Applicant must submit cost verifications, which must be on engineer's, contractor's, or architect's original letterhead and signed by the firm's representative. F. Official certification of preliminary project plans and specifications from the project engineer and the operating railroad indicating that the project meets American Railway Engineering and Maintenance-of-Way Association (AREMA) and Federal Railroad Administration (FRA) standards and other necessary compliance requirements must be submitted. G. If applicable, the Applicant will be required to submit three different appraisals no more than three months prior to loan closing on buildings or facilities to be purchased. H. Applicants must fulfill the requirements of the standard application, which must be submitted to MDA for review and acceptance. I. If applicable, the Applicant must provide an award letter or other documentation verifying funding sources.

History

• Source: Miss. Code Ann. § 57-44-7 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 8.6 General

The cumulative maximum loan amount for any eligible local unit of government during a calendar year is $1,000,000. The terms of any loan must be reasonable, and shall not exceed 15 years. The loan amount allowed will be determined by the Applicant's ability to repay the loan within acceptable terms. The rate of interest on a RAIL loan shall be one percent (1%) below the Federal Reserve Discount Rate at the time of loan approval. The Applicant will be required to expend all RAIL funds within one year from the date of loan approval, unless a waiver is granted upon good cause shown. Projects shall not exceed two years. If the funds are not expended within two years, the loan will be adjusted to the actual disbursements and the remaining funds to be drawn will be recalled.

History

• Source: Miss. Code Ann. § 57-44-7 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 8.7 Penalties

Local governments which fail to meet repayment obligations shall cause all or part of their sales tax allocation and/or homestead exemption reimbursement to be withheld and may be subject to other penalties. If the project has not begun within 90 days following loan approval, the rate of interest on the loan will be subject to increase, if the Federal Discount Rate increases.

History

• Source: Miss. Code Ann. § 57-44-7 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 8.8 Delinquent Notice Process

Each month, invoices will be sent to communities with an active RAIL loan status. Payments are due on the first of each month. Failure to submit timely payments may result in the following procedures: A. If a community is 60 days delinquent, CSD may issue a letter stating the catch-up amount, terms of their loan agreement and explain the process for turning collection over to the State Auditor. B. If a community is 90 days delinquent, CSD may issue the same letter with the new catch-up amount. C. If a community is 120 days delinquent, CSD may issue the same letter with the new catch-up amount. D. If a community is 150 days delinquent, CSD may issue a letter stating in 30 days if catch-up payment amount has not been received, then CSD will turn the community over to the state auditor. E. If a community is 180 days delinquent, CSD may request the State Auditor to audit the receipts and expenditures of the loan. If the State Auditor finds that the county or municipality is in arrears in payments, he shall immediately notify the Executive Director of the Department of Finance and Administration who shall withhold all future payments to the county of homestead exemption reimbursements under Section 27-33-77 and all sums allocated to the county or the municipality under Section 27-65-75 until such time as the county or the municipality is again current in its loan payments as certified by the Mississippi Development Authority.

History

• Source: Miss. Code Ann. § 57-44-7 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 8.9 Eligibility

Projects that are eligible for assistance must be for freight rail service projects relating to the upgrading of railroad grade crossings. Only projects approved by the Mississippi Department of Transportation (“MDOT”) shall be eligible for RAIL grants. The project approval process will be initiated by MDOT via a four-party agreement.

History

• Source: Miss. Code Ann. § 57-44-7 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 8.10 General Grant Terms

The maximum amount of RAIL grant funds that may be provided for any one project is $250,000.

History

• Source: Miss. Code Ann. § 57-44-7 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 8.11 Reimbursement Process

The State will release RAIL funds on a reimbursement basis for approved eligible costs of the project as incurred. The Applicant shall certify to MDA during construction that the expenses were incurred and were in accordance with the plans approved by MDA. Funds will be released periodically upon receipt of supporting documentation from the Applicant. Funds may not be drawn down more frequently than monthly.

History

• Source: Miss. Code Ann. § 57-44-7 (Supp. 2008)

6 Miss. Admin. Code Pt. 1, R. 8.12 Audit

Funds provided under RAIL are subject to audit by the State Department of Audit.

History

• Source: Miss. Code Ann. § 57-44-7 (Supp. 2008)

Chapter 9 ACE Program

6 Miss. Admin. Code Pt. 1, R. 9.1 Purpose

The Advantage Mississippi Initiative was outlined and developed by Governor Ronnie Musgrove and enacted into law in August of 2000. The Advantage Mississippi Initiative is a blueprint to expand prosperity throughout our entire State. This Initiative includes not only new business incentives but comprehensive programmatic changes designed to enhance Mississippi's competitive position in the nation and the world. The Mississippi Ace Fund (“Ace Fund”), administered by the Mississippi Development Authority (“MDA”) is a program designed for making grants to Economic Development Entities (“Local Sponsors”) to assist in funding extraordinary economic development opportunities to promote economic growth in the State of Mississippi (“State”). Local Sponsors are encouraged to use these grants in connection with other State and federal programs. Funding for grants to Local Sponsors is derived from monies contributed to the Ace Fund by private and public sources.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.2 Local Sponsors Applicant

Applications for assistance must be submitted by public or private nonprofit local economic development entities, including, but not limited to, chambers of commerce, local authorities, commissions or other entities created by local and private legislation or districts created pursuant to Section 19-5-99.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.3 Eligible Projects

Projects, which are eligible for assistance, must be related to the construction, renovation, or expansion of a new or expanded industry. Examples include construction of infrastructure, moving costs and other “transitional” costs.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.4 Ineligible Projects

Ace funds may not be used for working capital nor to provide funds related to a gaming enterprise.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.5 Intended Beneficiaries

Eligible Projects should benefit the following types of industries: A. Manufacturing and processing; B. Large distribution facility; C. Service support to agriculture, aquaculture, and mariculture; D. Service support to manufacturing and processing; E. Telecommunications and data processing; F. Corporate headquarters and operations centers; G. Research and development;

H. Tourism

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.6 Extraordinary Economic Development Opportunity

To be eligible for grants through the Ace Fund, a business or industry project must be classified as an “extraordinary economic development opportunity” and demonstrate that the business or industry is at an economic disadvantage by locating or expanding in the designated location.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.7 Extraordinary Economic Development Opportunity Defined

An “extraordinary economic development opportunity” is defined as follows:

New Jobs or Capital Investment Tier Three Counties 50 1,000,000 Tier One and Two Counties 100 2,000,000

Economic disadvantage may be determined by locating in a tier three county, or by proving that capital or operating expenses are increased by locating or expanding in a particular location, or by proving that shortages exist in necessary human and physical infrastructure at the location.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.8 Matching Funds

A local public or private fund, or in-kind match, is strongly encouraged.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.9 No Separate Application Form

The application submitted by a Local Sponsor must include: A. The purpose of the proposed grant including a list of proposed expenditures and the cost of each. B. The estimated cost of the total project, a description of the Local Sponsor's investment in the project, and all public or private sources of funding. C. A statement of the number and types of jobs created. D. Evidence that economic disadvantage exists for the designated location. E. The time schedule for implementation and completion of the project. F. Evidence, if any, of local match. G. A statement of the efforts that have been made by the business or industry to secure other local, state, federal or private funds for the project. H. Current employment levels at the project site and estimated increase, if any, as a result of financing the project. Three (3) copies of the application must be submitted to MDA. MDA will evaluate the application to determine if the project meets the program criteria.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.10 Maximum Amount Allowed

The maximum amount of ACE funds, which may be provided for any one project, is $150,000. In most circumstances the Local Sponsor will be required to expend local funds before the State injects any proceeds into the project.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.11 Conditions for Disbursement of Funds

A Grant Agreement will be executed between the Local Sponsor and MDA. The Grant Agreement cannot be executed until all required conditions in these guidelines have been met and all documentation received.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.12 Reimbursement Process

MDA will release Ace funds on a reimbursement basis for approved eligible costs of the project as incurred. Funds will be released upon receipt of the Ace Form of Requisition and supporting documentation from the Local Sponsor. Funds may not be drawn down more frequently than monthly. Local Sponsors have one year from the date of the Grant Agreement to request reimbursement for Ace project costs.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.13 Audit

Funds provided under Ace are subject to audit by the State Department of Audit.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 9.14 Waiver

These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State law.

History

• Source: Miss. Code Ann. § 57-1-16 (Rev. 2008)

Chapter 10 Economic Development Highway Grant Program

6 Miss. Admin. Code Pt. 1, R. 10.1 Purpose

The purpose of this program is to promote industrial and other significant development in the State of Mississippi (“State”) through the construction and/or improvement of highways in areas, which demonstrate actual and immediate potential for the creation, or expansion of major industries or other significant development. The highway or highway segment to be constructed (“Highway Project”) must be necessary to ensure adequate and appropriate access to a proposed company project for the purpose of encouraging its location within a political subdivision. The Economic Development Highway Act, Miss. Code Ann. Section 65-4-1, et seq., (“the Act”), authorizes the Mississippi Development Authority (“MDA”) to assist political subdivisions with Highway Projects which encourage private companies to engage in high economic benefit projects within their area.

History

• Source: Miss. Code Ann. § 65-4-1 et seq.(Rev. 2005)

6 Miss. Admin. Code Pt. 1, R. 10.2 Local Entity Defined

Local Entity means one or more counties or incorporated municipalities in the State or a State-owned port located in a county bordering the Gulf of Mexico.

History

• Source: Miss. Code Ann. § 65-4-1 et seq. (Rev. 2005)

6 Miss. Admin. Code Pt. 1, R. 10.3 High Economic Benefit Project Defined

A high economic benefit project (“Company Project”) is a proposed project by a company which meets one of the following capital investment criteria: A. Any new capital investment by a private company in land, building, depreciable fixed assets and improvements of at least fifty million dollars ($50,000,000) in the State. B. Any new investment in land, building, depreciable fixed assets, and improvements of at least twenty million dollars ($20,000,000) by a private company which already has investments in the State of at least one billion dollars ($1,000,000,000) in the aggregate. C. Any public investment of at least one hundred million dollars ($100,000,000) to take place over a specified period of time and in accordance with a master plan.

History

• Source: Miss. Code Ann. § 65-4-1 et seq. (Rev. 2005)

6 Miss. Admin. Code Pt. 1, R. 10.4 Eligibility

Private companies which are eligible for assistance under the Economic Development Highway Program (“EDH”) are: A. Agricultural Enterprises. An enterprise which is engaged in business related to farming, agricultural endeavors or other related business and services supporting the development of agriculture. Farming operations are not eligible. B. Industrial Enterprises. An enterprise other than mercantile, commercial or retail enterprises. (Example: warehouse and terminal facilities, and computer or clerical operation centers) C. Manufacturing Enterprises. An enterprise which is engaged in the giving of new shapes, new qualities or new combinations to products by the application of skill and labor. ( Example: automobile parts manufacturer.) D. Research and Development Enterprises. An enterprise for the discovery of new and the refinement of known substances, processes, products, theories and ideas. (Example: pharmaceutical research lab.) This does not include activities directed primary to the accumulation or analysis of commercial, financial or mercantile data. E. Large Hotel or Resort. An enterprise for the guidance or management of tourists and the encouragement of the State's tourist industry. The investment criteria would be based on the construction, improvement or acquisition of hotels and/or motels, infrastructure r elated to the resort development and/or land acquisition. Casino boat facilities are not allowed to be included as part of the capital investment. F. Maricultural Enterprises. An enterprise for the cultivation of the natural produces found in salt water. (Example: salt water fish production.) G. Aquaculture Enterprises. An enterprise for the cultivation of the natural produces found in fresh water. (Example: production of living organisms found in fresh water lakes, ponds and streams.)

H. Regional Shopping Malls. A regional shopping mall with a minimum capital investment of $50,000,000 and having a significant impact on a wide area of the State. I. Hospital. A major medical hospital facility with a minimum capital investment of $50,000,000 and having a significant impact on employment and health services. Other types of enterprises, which may qualify for assistance, are distribution facilities, warehousing facilities, air transportation and maintenance facilities, movie industry studios, or the federal government.

History

• Source: Miss. Code Ann. § 65-4-1 et seq. (Rev. 2005)

6 Miss. Admin. Code Pt. 1, R. 10.5 Preliminary Steps

Prior to submitting an application for assistance under the EDH Program, the Local Entity must receive a commitment from the Governor or MDA, and the type of construction regulations to be used must be identified. The Mississippi Department of Transportation (“MDOT”), MDA, the Office of State Aid (“State Aid”), and the Local Entity jointly make this decision based on location, anticipated use, and future road construction plans.

History

• Source: Miss. Code Ann. § 65-4-1 et seq. (Rev. 2005)

6 Miss. Admin. Code Pt. 1, R. 10.6 Highway Project Construction Options

There are three options for Highway Project construction: construction by MDOT; construction by a Local Entity on a state designated highway; and construction by a Local Entity on a non-state designated highway. The application process and construction regulations for each are as follows: A. Construction by the Department of Transportation: (i) The Local Entity where the Highway Project is located must submit three (3) copies of an application to MDA providing the following information: (ii). A description of the Highway Project including estimates of all cost related to construction and annual maintenance. (iii). A certified resolution from the governing authority of the Local Entity detailing the source and amount of funds which the Local Entity has committed, or is willing to commit, for the Highway Project and a request for MDOT to do the construction. (iv). A certified copy of a signed letter of intent from the private company to the Local Entity describing in detail the following: (a). The Company Project (b). The proposed timetable for completion of the Company Project (c). The number of jobs to be created (d). The dollar investment to be made by the company (e). A guarantee from the company of the investment at the Company Project location (v). A demonstration that the company is financially sound and appears to have assets and creditworthiness to secure necessary funds to complete the Company Project. (vi). An estimate by the company of the number, size, and weight of motor vehicles and frequency of travel of such vehicles upon the Highway Project. (vii) A statement from the company that the proposed Highway Project design will meet the company's needs.

(viii). MDA will forward a copy of the application to MDOT for their evaluation. (ix). MDOT will provide MDA with an estimate of how much the Highway Project will cost and request a certification that EDH Funds are available for the project. (x). Upon approval by MDA, MDOT will be responsible for all Highway Project design, engineering and construction. (xi). Any changes or modifications to the approved plans, which would affect the cost of the Highway Project, must be approved by MDOT and MDA (xii). MDOT will certify to MDA when all charges are final and the Highway Project is officially completed. B. Construction by a Local Entity on a State Designated Highway. In accordance with an agreement between MDA and MDOT, State Aid assists in the administration of these projects: (i). The Local Entity must submit four (4) copies of an engineering study based on an RWD-600, which sets out the criteria for the design and meets the requirements of the Act. The engineering study shall also contain an estimate of costs based on the design criteria. These documents shall be sent to State Aid for review and forwarding to MDOT and MDA. (ii). MDOT, after evaluating the engineering study and the RWD-600 based on typical average cost per mile for similar projects, will provide State Aid with its comments or approval. (iii). State Aid will notify the Local Entity and MDA that the design criteria has been approved or needs revision. Upon final approval by MDOT and notification to MDA of such approval, the Local Entity may proceed with the application. (iv). The Local Entity must prepare and submit to MDA two (2) copies of an (v). application, which provides the following information: (a). A description of the Highway Project, including an estimate of the annual maintenance cost. (b). A certified resolution from the governing authorities of the Local Entity detailing the source and amount of funds which the Local Entity has committed, or is willing to commit, for the Highway Project and a statement of intent to perform the highway construction. (c). A certified copy of a signed letter of intent from the private company to the Local Entity describing in detail the following: (i). The Company Project (ii). The proposed timetable for completion of the Company Project (iii).The number of jobs to be created (iv). The dollar investment to be made by the company A guarantee from the company of the investment at the Company Project location (d). A demonstration that the company is financially sound and appears to have assets and creditworthiness to secure necessary funds to complete the project. (e). An estimate by the company of the number, size, and weight of motor vehicles and frequency of travel of such vehicles upon the Highway Project.

(f). A statement from the company that the proposed Highway Project design will meet the company's needs. C. MDA will consider the application and determine if it meets the program requirements. All parties will be notified of MDA's action. NOTE: Engineering and other costs incurred prior to submission and approval of completed applications will be the responsibility of the Local Entity. D. State Aid will submit a Program Form to the Local Entity and request that a program be executed by the Local Entity and returned to State Aid. This program will be reviewed and approved by State Aid and copies submitted to MDOT and MDA. E. The project engineer will be selected by the Local Entity and shall be entitled to compensation based on the EDH Program Engineer Fee Schedule. The project engineer will be responsible for coordinating the project between State Aid, MDA, MDOT and the Local Entity during all phases of plan development and construction. F. An engineering contract will be entered into by MDA, State Aid, the Local Entity and the project engineer. Upon approval by State Aid, copies will be submitted to all parties. NOTE: All costs associated with preliminary and construction engineering incurred after approval of the program and engineering contract are eligible for MDA participation. G. The project engineer will be responsible for plan development and all regulatory permits. Plan preparation will be based on the latest approved specifications as developed and approved by State Aid. H. The project engineer will submit three (3) sets of preliminary plans to State Aid for distribution and review prior to scheduling a field inspection (PS&E). I. Following review of plans, State Aid will require any necessary revisions to be made and, upon satisfactory review, schedule a field inspection. The field inspection party will include representatives from State Aid; Construction Division, MDOT; Roadway Design Division, MDOT; District, MDOT; the project engineer; and representatives from the Local Entity. J. The project engineer will be responsible for making any revisions resulting from the field inspection and will return five (5) sets of revised full-scale plans to State Aid. K. The Local Entity will comply with the National Environmental Policy Act, and all submittals shall be made to State Aid for review and approval. L. The Local Entity will be responsible for acquisition of rights-of-way in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act, both state and federal. M. Following review of full-scale plans, State Aid, in conjunction with MDOT, will schedule and conduct an office review with all representatives in item 11 above. N. The project engineer will make any revisions resulting from the office review and submit completed construction plans (small scale), preliminary estimate, and necessary documents to State Aid. O. Upon approval of all right-of-way certifications and regulatory permits, State Aid will authorize the Local Entity to advertise for receipt of bids. Bids will be evaluated and contracts awarded in accordance with governing statutes. Work will begin when the award of a contract is approved and the project fund is established by MDA. MDA will determine if funding is within the budget based on the contract amount at the time of letting (MDA commitment and county funding).

P. Monthly estimates, with quantities measured in accordance with the contract provisions, will be submitted to State Aid. State Aid will check each estimate and submit it to MDA. Q. Engineering estimates will be submitted on a monthly basis and, after review by State Aid, will be submitted to MDA. (See Disbursement of Funds section.) R. The project engineer will review and recommend to State Aid any construction change order or supplemental agreement that will increase funding above the contract amount and forward such recommendation to State Aid for its approval. State Aid will review and forward its recommendation to MDOT, when appropriate. MDOT will review and recommend to MDA approval for changing the contract amount above the original construction bids and/or any engineering agreement cost. MDA will notify State Aid of its concurrence with changes to contracts. S. Final inspection of the completed highway project will be made by State Aid, MDOT, and the Local Entity. T. Construction by a Local Entity on a Non-State Designated Highway. Highway Projects to be constructed on non-state designated highways will be built to State Aid Road Construction Standards and will be administered by State Aid. (i). The Local Entity must submit three (3) copies of an application and engineering study to MDA.

History

• Source: Miss. Code Ann. § 65-4-1 et seq. (Rev. 2005)

6 Miss. Admin. Code Pt. 1, R. 10.7 Application Requirements

The application should provide the following information: A. A description of the Highway Project. B. A certified resolution from the governing authorities of the Local Entity detailing the source and amount of funds which the Local Entity has committed, or is willing to commit, for the Highway Project and a statement of intent to perform the highway construction. C. A certified copy of a signed letter of intent from the private company to the Local Entity describing in detail the following: (i). The Company Project (ii). The proposed timetable for completion of the Company Project (iii) The number of jobs to be created (iv). The dollar investment to be made by the company (v). A guarantee from the company of the investment at the Company Project location D. A demonstration that the company is financially sound and appears to have assets and creditworthiness to secure necessary funds to complete the project. E. An estimate by the company of the number, size, and weight of motor vehicles and frequency of travel of such vehicles upon the Highway Project. F. A statement from the company that the proposed Highway Project design will meet the company's needs.

Rule10.8 Requirements for Engineering Study

A. The engineering study should establish the proposed road design and alignment, and meet State Aid Road Construction Standards. The engineering study must provide a breakdown of all costs based on the design criteria. B. MDA will forward the application and engineering study to State Aid for their evaluation. State Aid will contact the Local Entity with any questions or comments it may have concerning the design. C. State Aid, after evaluating the engineering study, will provide MDA with its approval of the proposed plan and cost estimate. D. MDA will consider the application and determine if it meets the program requirements. All parties will be notified of MDA's action. NOTE: Engineering and other costs incurred prior to submission and approval of completed applications will be the responsibility of the Local Entity. E. State Aid will submit a Program Form to the Local Entity and request that a program be executed by the Local Entity and returned to State Aid. This program will be reviewed and approved by State Aid and copies submitted to MDA. F. The project engineer will be selected by the Local Entity and shall be entitled to compensation based on the EDH Program Engineer Fee Schedule (See Exhibit A). The project engineer will be responsible for coordinating the project between State Aid, MDA, and the Local Entity during all phases of plan development and construction. NOTE: All costs associated with preliminary and construction engineering incurred after approval of the program and the engineering contract are eligible for MDA participation. G. The project engineer will be responsible for plan development and all regulatory permits. Plan preparation will be based on the latest approved specifications as developed and approved by State Aid for State Aid Projects. H. The project engineer will submit one (1) set of preliminary plans to State Aid for distribution and review prior to scheduling a field inspection (PS&E). I. Following review of plans, State Aid will require any necessary revisions to be made and, upon satisfactory review, schedule a field inspection. The field inspection party will include representatives from State Aid, the project engineer, and the Local Entity. J. The project engineer will be responsible for making any revisions resulting from the field inspection and will return one (1) set of revised full-scale plans to State Aid for office review. K. The project engineer will make any revisions resulting from the office review and submit completed construction plans (small scale), preliminary estimate, and necessary documents to State Aid. L. Upon approval of all right-of-way certifications and regulatory permits, State Aid will authorize the Local Entity to advertise for receipt of bids. Bids will be evaluated and contracts awarded in accordance with governing statutes. Work will begin when the award of a contract is approved and the project fund is established by MDA. MDA will determine if funding is within the budget based on the contract amount at the time of letting (MDA commitment and county funding). (i). Monthly estimates, with quantities measured in accordance with the contract provisions, will be submitted to State Aid. State Aid will check each estimate and submit it to MDA. (ii). Engineering estimates will be submitted on a monthly basis and, after review by State Aid, will be submitted to MDA. (See Disbursement of Funds section.)

M. The project engineer will review and recommend to State Aid any construction change order or supplemental agreement that will increase funding above the contract amount and forward such recommendation to State Aid for its approval. State Aid will review and forward its recommendation to MDA. MDA will notify State Aid of their concurrence in all changes to contracts. N. Final inspection of the completed highway project will be made by State Aid, MDA, and the Local Entity. O. State Aid will certify to MDA that all charges are final and establish a date upon which the Highway Project is officially closed. P. MDA will notify the Local Entity of the project completion and of the date the Local Entity will become responsible for maintenance.

History

• Source: Miss. Code Ann. § 65-4-1 et seq. (Rev. 2005)
• Source: Miss. Code Ann. § 65-4-1 et seq. (Rev. 2005)

6 Miss. Admin. Code Pt. 1, R. 10.9 Maintenance

Upon approval of the application by MDA, if the Highway Project is a part of the designated state highway system, the maintenance after completion of the project shall be performed by MDOT. If the Highway Project is not part of the designated state highway system, the maintenance after completion shall be performed by whichever entity was authorized to do the construction or improvement.

History

• Source: Miss. Code Ann. § 65-4-1 et seq. (Rev. 2005)

6 Miss. Admin. Code Pt. 1, R. 10.10 Disbursement Procedures

MDA will make disbursements on Highway Projects according to the following procedures: A. Construction by the Department of Transportation: (i). No cost incurred will be considered an eligible cost until the Highway Project is approved by MDA. (ii). Committed funds, in the form of cash expenditures by the Local Entity, will be injected before EDH Funds are used (if applicable). All local funds, whether in the form of cash expenditures or other injections, must be supported by written documentation and approved by MDOT. Written documentation will be forwarded to MDA for approval and filing. (iii) MDOT will submit all requests for payments to MDA for approval and reimbursement. (iv). MDA will process all payments on a monthly basis. (v). Payment will be paid directly to MDOT. B. Construction by a Local Entity: (i). No cost incurred will be considered an eligible cost until the Highway Project is approved by MDA. (ii). Committed funds in the form of cash expenditures by the Local Entity will be injected before EDH Funds are used. All local funds, whether in the form of cash expenditures or other injections, must be supported by written documentation and approved by State Aid. (iii). The project engineer will verify all invoices and project costs and submit these documents (engineering estimates) to a designated county or city official (chancery clerk, city clerk, purchasing clerk, etc.) who has been authorized by the

local governing authority to certify and request disbursement of EDH funds. The appropriate documentation will then be forwarded to State Aid for payment approval. (iv). MDA will process all payments on a monthly basis and pay the project engineer or the Local Entity.

History

• Source: Miss. Code Ann. § 65-4-1 et seq. (Rev. 2005)

Chapter 11 Mississippi Tourism Rebate Program

6 Miss. Admin. Code Pt. 1, R. 11.1 Purpose

The Mississippi Tourism Rebate Program, administered by the Mississippi Development Authority (MDA) is a program designed to provide a Rebate to qualified Applicants of new tourism-oriented projects within the State of Mississippi. The Mississippi Tourism Rebate Program allows a portion of the sales tax paid by visitors to the eligible tourism- oriented enterprise project to be paid to the Applicant to reimburse the Applicant for eligible costs incurred during the construction of the project.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008); Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.2 Eligible Project

Eligibility to receive assistance through the Mississippi Tourism Rebate Program will be determined by capital investment, type of attraction and the location of the tourism-oriented enterprise in the State as provided in Section 57-26-1 et. seq., Mississippi Code of 1972, as amended. Eligible Projects must meet the following minimum criteria: A. Tourist attractions with a minimum private investment of not less than $10,000,000.00. Attractions that qualify are: (i). Theme parks (ii). Water parks (iii). Entertainment parks or outdoor adventure parks (iv). Cultural or historical interpretive educational centers or museums (v). Motor speedways (vi). Indoor or outdoor entertainment centers or complexes (vii). Convention centers (vii). Professional sports facilities (viii).Spas (ix). Attractions created around a natural phenomenon or scenic landscape, and (x). Marinas open to the public; B. Hotels with a minimum private investment of $40,000,000.00 in land, buildings, architecture, engineering, fixtures, equipment, furnishings, amenities and other related soft costs approved by the Mississippi Development Authority. The facility must have a minimum private investment of One Hundred Fifty Thousand Dollars ($150,000.00) per guest room. The room investment may be included in the minimum total private investment of $40,000,000.00; C. Public golf courses with a minimum private investment of $10,000,000.00; D. A full service hotel with a minimum private investment of $15,000,000 in land, buildings, architecture, engineering, fixtures, equipment, furnishings, amenities and other related soft costs approved by the Mississippi Development Authority. The facility must

have a minimum private investment of Two Hundred Thousand Dollars ($200,000) per guest room or suite, a minimum of twenty-five (25) guest rooms or suites and guest amenities such as restaurants, spas and other amenities as determined by the Mississippi Development Authority. The room investment may be included in the minimum total private investment of $15,000,000; E. A tourism attraction located within an “entertainment district” as defined in Section 17-29-3 et. seq., Mississippi Code of 1972, as amended. The attraction must be open to the public, have seating to accommodate at least forty (40) persons, is open at least five (5) days per week from at least 6:00pm until midnight, serves food and beverages, and provides live entertainment at least three (3) nights per week; for information regarding “entertainment districts” please refer to Section 17 Chapter 29 of the Mississippi Code of 1972, as amended, at the following website, http://michie.com/mississippi/lpext.dll?f=templates&fn=main-h.htm&cp=, or; F. Resort Developments with a minimum investment of $100,000,000 and which consist of a hotel with a minimum of 200 guest rooms with a private investment of $200,000 per guest room. The development must also include guest amenities such as restaurants, golf courses, spas, entertainment activities, and other amenities. G. A tourism attraction located within a historic district where the district is listed in the National Register of Historic Places, where the tourism attraction is open to the public, has seating to accommodate at least forty (40) persons, is open at least (5) days per week from at least 6:00 pm until midnight, serves food and beverages, and provides live entertainment at least three nights per week.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), House Bill 1358, 2014 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.2.1 Ineligible Project

No certificate designating an entity as an approved participant and authorizing the approved applicant to participate in the incentive program shall be issued from and after July 1, 2014, for tourism projects that are cultural retail attractions, or from and after July 1, 2016, for other tourism projects.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), House Bill 1358, 2014 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.3 Exceptions

The following activities cannot be qualified as an eligible project for the Tourism Rebate Program: A. Expansions of any existing projects previously approved by MDA; B. Facilities that are primarily developed for retail sales that are not certified as a Resort Development by MDA. Pro shops, souvenir shops, gift shops, concessions, and similar retail activities may be included within the definition of the project.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.4 Eligible Applicants

In order to receive benefits under the Mississippi Tourism Rebate Program, an Applicant must meet the following requirements: A. The applicant must be a corporation, limited liability company, partnership, sole proprietorship, business trust or other legal entity authorized to do business in the State. B. In the event that the applicant is licensed by the State Gaming Commission, only

eligible costs in excess of the required non-gaming development will be included as eligible costs. C. The applicant must plan to own all the components of the tourism project in order for the costs of the components to be included in the initial capital investment requirements or as a facility from which sales tax will be rebated. D. The municipality and/or the taxing district where the tourism-oriented enterprise will be located must support and approve the facility. Such approval must be in the form of a resolution of the governing authority acknowledging support of the project and acknowledging that 80% of the sales tax collected from the project will be diverted to the Sales Tax Rebate Fund for a period of up to ten (10) years for projects approved on or before on or before June 30, 2013 and up to fifteen (15) years for projects approved on or after July 1, 2013 and will not be available for the standard city diversions. E. Retail related to a Resort Development must consist primarily of upscale brands or their equivalent. Retail not eligible for rebate includes: (i). Department stores (ii). Convenience stores (iii).Grocery stores (iv).Liquor and Tobacco Stores (v). Discount stores, (vi). Multiplex Theaters, (vii). Facilities that perform cleaning, repairing, or alteration services, or (viii) Facilities that perform personal services such as tanning, nail and beauty salon F. Approval of retail facilities will be approved on a case-by-case basis by the executive director of MDA.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.5 Types of Costs That May Be Included

The actual costs incurred by the applicant may be included in the total costs that are required to meet Mississippi Tourism Rebate Program initial capital investment requirements. Eligible costs related to the following are allowed:

A. Land acquisition; B. Construction; C. Engineering; D. Design; E. Costs of contract bonds and insurances; F. Installation of utilities paid by the Applicant (including project-specific off-site extensions); G. Equipping of the attraction; H. Infrastructure paid by the Applicant; and I. Other costs comparable to those described above can be approved on a case-by-case basis.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.6 Capital Investment Exemptions

Costs for advertising, marketing, inventory, or

working capital are not included in calculating the capital investment. In no instance will costs related to gaming activities be treated as eligible project costs.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.7 Verifying Costs

Upon completion of the project, the Applicant must submit a summary of project costs to MDA. This summary must be independently verified by a Certified Public Accountant, or another independent third party approved by the MDA. The Applicant will pay the costs for this verification.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.8 Determining Amount of Sales Tax to be Diverted to the Applicant

MDA, with the assistance of the Mississippi Department of Revenue, will determine the amount of sales tax collected at the tourism-oriented enterprise that may be diverted to the applicant. The amount of Rebate payments will be equal to 80% of the amount of sales tax revenue collected from businesses owned by the project. These payments will be limited to 30% of the approved project costs funded from private sources or for a rebate term of ten (10) years for projects approved on or before June 30, 2013 and up to fifteen (15) years for projects approved on or after July 1, 2013, whichever threshold occurs first.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.9 Rebate Process

To begin the rebate process, after the project costs are submitted, the Applicant must provide the MDA with a listing of all Sales Tax Accounts and Account Numbers related to the project. The Mississippi Department of Revenue will be provided these accounts and will begin making the required diversions into the Tourism Project Sales Tax Incentive Fund the month following notification. Rebate Payments from the fund will be made each January and July to Applicants that are eligible for rebates.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.10 Application Process

All Mississippi Tourism Rebate Program documents may be obtained from MDA. The applicant must submit a completed application and a non-refundable application fee of $5,000 to MDA to initiate the review process. MDA will make a preliminary review of the application to determine if the tourism project meets the basic program requirements. Items that must be submitted with the application are: A. Plans and a detailed description of the proposed project; B. A summary of the anticipated project costs, along with supporting documentation to support the cost estimates; C. The method of financing to be used for the project, including financing terms; D. An independent study that identifies the projected number of out-of-state visitors and provides the ratio of in-state to out-of state visitors anticipated; and E. A resolution from the local governmental unit that acknowledges that no city diversion will be received on the sales tax collections and that the community supports the project location and plan.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.11 Approval Process

Upon determination that all program requirements are met, a Mississippi Tourism Rebate Program Certificate (Mississippi Tourism Rebate Program Certificate) will be issued. The provision of each Certificate will include: A. The amount of the approved project costs and the maximum rebate available. B. A date by which the applicant must complete the tourism project (the Completion Date). C. A rebate term of ten (10) years for projects approved on or before June 30, 2013 or fifteen (15) years for projects approved on or after July 1, 2013 from the completion date or the date on which 30% of the approved project costs has been rebated to the applicant, whichever threshold is met first.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.12 Certification

Within three (3) months after the Completion Date, the Applicant must document the actual cost of the tourism project through a certification (Completion Certificate) of such costs by an independent certified public accountant or other independent party acceptable to the MDA. The Completion Date must be within 24 months following the Mississippi Tourism Rebate Program Certificate date, unless an extension is granted. The Approved Project Costs allowed for the tourism project will be the lesser of the actual costs as certified or the approved project cost provided on the application. Approved project costs may not increase regardless of the actual costs incurred by the project.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.13 Mississippi Tourism Rebate Agreement

After MDA receives the Completion Certificate and the actual project costs are confirmed, a Mississippi Tourism Rebate Agreement shall be executed between the applicant and MDA. Such agreement shall specify: A. The approved tourism project will not receive a rebate, if in any calendar year following the Completion Date, the tourism project is not operating and open to the public on a regular and consistent basis. B. The Agreement shall not be transferable or assignable by the applicant without the written consent of the Executive Director of MDA. C. The approved applicant will supply MDA with such reports and certifications as the MDA may request demonstrating to the satisfaction of the Director that the approved applicant is in compliance with the provisions of the Act and Agreement. D. The approved Applicant is responsible for supplying all sales tax account numbers for the project to the MDA. No rebate payments will be made for the project until one month after receipt of the account numbers by MDA. The Applicant must supply account numbers that are added or changed in order to receive rebate payments from the accounts.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.14 Mississippi Department of Revenue

MDA will notify the Mississippi Department of

Revenue of the approved tourism project through the issuance of the Mississippi Tourism Rebate Program Certificate. Upon full execution of the Tourism Rebate Agreement, MDA will provide a copy to the Department of Revenue and the Department of Revenue shall deposit eligible sales tax collections into the Mississippi Tourism Rebate Program Sales Tax Rebate Fund.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.15 Determination of Benefits

MDA shall determine, based on the Completion Certificate, the maximum amount of benefits the Applicant may receive. MDA shall make benefit payments in January and July of each year until the full credit is reached or for ten (10) years for projects approved on or before June 30, 2013 and up to fifteen (15) years for projects approved on or after July 1, 2013, whichever occurs first.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.16 Amendment and Waiver

These guidelines may be amended by MDA at anytime. MDA, in its discretion, may temporarily waive any requirement of these guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State laws.

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

6 Miss. Admin. Code Pt. 1, R. 11.17 Additional/Contact Information

Additional information related to the program and these program guidelines may be obtained by contacting:

Mississippi Development Authority Mississippi Tourism Rebate Program Financial Resources Division Post Office Box 849 Jackson, Mississippi 39205 (601) 359-3552

History

• Source: Miss. Code Ann. § 57-26-1 et seq. (Rev. 2008), Senate Bill 2463, 2013 Regular Session

Chapter 12 Growth and Prosperity Program

6 Miss. Admin. Code Pt. 1, R. 12.1 Purpose

The Advantage Mississippi Initiative was outlined and developed by Governor Ronnie Musgrove and enacted into law in August 2000. The Advantage Mississippi Initiative is a blueprint to expand prosperity throughout our entire State. This Initiative includes not only new business incentives but comprehensive programmatic changes designed to enhance Mississippi's competitive position in the nation and the world. The Growth and Prosperity Program (“GAP”), administered by the Mississippi Development Authority (“MDA”), is a program designed for designating certain counties as GAP counties and making incentives available to private companies that locate or expand in those economically challenged areas of the state.

History

• Source: Miss. Code Ann. § 57-80-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 12.2 Eligible Counties and Other Entities

A county or entity must fall into one or more of the following categories to qualify under the GAP Program: A. Counties: (i). Counties which have an annualized unemployment rate that is at least two hundred percent (200%) of the state's unemployment rate as of December 31 of any year from 2000 through 2005, as determined by the Mississippi Employment Security Commission's (“MESC”) most recently published data and/or; (ii). Counties that apply before December 31, 2002, are eligible if thirty percent (30%) or more of the population of the county is, at or below, the federal poverty level. Eligibility will be based on the official data compiled by the United States Census Bureau as of August 30, 2000. (iii). Counties that apply after December 31, 2002, are eligible if thirty percent (30%) or more of the population of the county is at, or below, the federal poverty level according to the most recent official data compiled by the United States Census Bureau. (iv). Supervisors Districts (As They Exist on January 1, 2001) (v). Districts are eligible if thirty percent (30%) or more of the population, as of June 30, 2000 is at, or below, the federal poverty level according to the official data compiled by the United States Census Bureau as of June 30, 2000, or the official 1990 census poverty rate data. The official 1990 census poverty rate data shall not be used to make determination after December 31, 2002. (vi). Must be contiguous to a county that has been certified a GAP county by MDA. To receive the incentive(s) offered by GAP, an approved business enterprise must be located within eight (8) miles of the boundary of a certified GAP county. B. Municipality: (i). Any municipality within a certified GAP county.

History

• Source: Miss. Code Ann. § 57-80-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 12.3 Eligible Business Enterprises

The following types of new or expanding businesses are eligible to participate under the GAP Program: A. Manufacturing, processing, assembling, storing, warehousing, servicing, distributing or selling of any products or goods, including products of agriculture; B. Enterprises for research and development, including, but not limited to, scientific laboratories; or C. Other businesses or industries that will further the public purposes of the GAP Act as determined on a case-by-case basis by MDA, and that create a minimum of ten (10) jobs.

History

• Source: Miss. Code Ann. § 57-80-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 12.4 Exemptions

Retail or gaming businesses or electrical generation facilities are not considered eligible business enterprises.

History

• Source: Miss. Code Ann. § 57-80-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 12.5 Government Entity Application Information

There is no separate application form. Two copies of the application information must be submitted to MDA. MDA will evaluate this information to determine if the government entity meets the program criteria The application presented by a county or other entity must include: A. A statement indicating which criteria the county is using to be deemed qualified. B. A supervisor's district must use the poverty level criteria and should include a map showing the GAP County with which they are associated and the basis for the districts' eligibility. C. A certified copy of an order or resolution of the Board of Supervisors consenting to the designation of the county or a supervisor's district as a GAP entity. The order or resolution should also contain language that the Board of Supervisors understands, that once designated a GAP county, any and all MDA approved business enterprise will receive up to a ten-year ad valorem tax exemption. Such exemption does not include the school tax or taxes imposed to pay the cost of providing fire and police protection. D.Any municipality within a certified GAP county must apply to MDA to be certified as a GAP community. The Municipality must be located in a Certified GAP county and must provide a certified order or resolution containing the same information as required above for county Board of Supervisors.

History

• Source: Miss. Code Ann. § 57-80-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 12.6 Business Enterprise Application Information

There is no separate application form. Two copies of the business enterprise application information must be submitted to MDA. MDA will evaluate this information to determine if the business is eligible to be designated a GAP Business. Business enterprises seeking to be approved by MDA must submit the following: A. A complete description of the proposed business enterprise setting out the business or activity to be conducted. Included in this description should be the name, address, and telephone number of the contact person. B. A statement of the number of new jobs to be created in the GAP County. C. A statement that the project and the jobs contemplated in the GAP county are not being transferred from another county in the state. D. A statement that the business enterprise is in full compliance with all state and local laws, and related ordinances and resolutions (building permits, fees, taxes, prior commitments in county, etc.). E. A statement of the total investment planned for the project and the sources of the financing. F. A list of any and all other incentives awarded or applied for relative to this project. G. A statement that the business enterprise is willing to enter into an agreement with H. MDA establishing the business setting; performance requirements; and provisions for the recapture of all, or a portion, of the taxes exempted, if the performance requirements are not met. I. Provide a map showing where in the GAP County or supervisor's district they are located or locating. J. Any and all other information that the MDA may reasonably require on a case-by-case

basis.

History

• Source: Miss. Code Ann. § 57-80-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 12.7 Certification

Upon approval of a business enterprise and/or a government entity, MDA shall forward a certificate of convenience and necessity to the Mississippi State Tax Commission.

History

• Source: Miss. Code Ann. § 57-80-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 12.8 Controlling Regulations

Rules and regulations of the Mississippi State Tax Commission shall control the implementation of both the local and state tax exemptions granted under the Act.

History

• Source: Miss. Code Ann. § 57-80-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 12.9 Length of Exemption

Any exemption granted will be for a period of ten (10) years or until December 31, 2015, whichever occurs first.

History

• Source: Miss. Code Ann. § 57-80-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 12.10 Decertification

If the annualized unemployment rate in a certified GAP County falls below one hundred fifty percent (150%) of the state's annualized unemployment rate for three consecutive calendar years, the tax exemptions authorized under the GAP Act will not be granted to additional business enterprises. Tax exemptions previously granted to approved business enterprises shall continue as if the county continued to be eligible.

History

• Source: Miss. Code Ann. § 57-80-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 12.11 Waiver

These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State

History

• Source: Miss. Code Ann. § 57-80-1 et seq. (Rev. 2008)

Chapter 13 Amended Mississippi Airport Revitalization Revolving Loan Program

6 Miss. Admin. Code Pt. 1, R. 13.1 Rule 13.1

Purpose. The Mississippi Airport Revitalization Revolving Loan Program (“Airport Loan Program”), administered by the Mississippi Development Authority (“MDA”), is designed for making loans to airport authorities (“Local Sponsors”) for the construction and/or the improvement of airport facilities located in the state of Mississippi (the “State”). Funding for loans to Local Sponsors is derived from the issuance of State bonds or notes. The Airport Loan Program was enacted by the State Legislature during the Regular 1993 Session.

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.2 Local Sponsors

Local Sponsors considered to be eligible applicants are county and municipal airports authorized to operate in the State. In order to obtain assistance under the Airport Loan Program, a Local Sponsor's governing authority (the “Governing Authority”) must submit an application to MDA.

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.3 Eligible Projects

Projects which are eligible for assistance must be directly related to the airport facility and are limited to construction, expansion, improvements, rehabilitation, or repair of: A. Drainage systems B. Energy facilities (power generation and distribution) C. Sewer systems (pipe treatment) D. Transportation facilities directly affecting the site, including roads, sidewalks, bridges, rail lines, rivers, pipelines, or runways E. Buildings F. Water supply systems (storage, treatment, and distribution) G. Equipment necessary for airport operation H. Land improvements

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.4 Exemptions

Loan funds may not be used for working capital by the airport facility, nor to provide facilities for utilization by a gambling vessel.

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.5 General Loan Terms

The maximum which may be loaned from Airport loan funds to finance any one project is $1,000,000. Airport loan funds may be used for one hundred percent (100%) project financing. The maximum term will be for up to ten (10) years with an interest rate of one percent (1%) per annum.

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 1, R. 13.6 Payment

The principal and interest will be paid on an annual basis and will be used to fund future loans under the Airport Loan Program.

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.7 Local Sponsor Application

The application to be submitted by a Local Sponsor must include: A. The purpose of the proposed loan including a list of eligible items and the cost of each; B. The estimated cost of the total project, a description of the Local Sponsor's investment in the project, and all public or private sources of funding;

C. The time schedule for implementation and completion of the project, evidencing an expeditious completion of the project; D. A statement of intention to operate the project for a time period equal to the term of the loan; E. Certified proofs of publication of the Resolution of Intention of the Governing Authority to apply for Airport Loan funds. (Examples of the Resolution, which must be published once a week for at least four (4) consecutive weeks in a newspaper having general circulation in the county, may be found as Exhibit A or B. Upon receiving the results of the publication of the Resolution of Intention, the Governing Authority will need to provide MDA with an executed Resolution of No Protest. F. A statement of willingness to comply with nondiscrimination and equal employment opportunity requirements; and G. Current employment levels at the project site and estimated increases, if any, as a result of financing the project.

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.8 Evaluation

Two (2) copies of the application must be submitted to MDA. MDA will evaluate the application to determine if the project meets the program criteria and what terms and conditions the loan should bear.

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.9 Liens

If applicable, MDA may require a lien on the improvements made at an airport for the benefit of a private company. The private company must be willing to grant a lien or to provide collateral, e.g., a letter of credit, corporate or personnel guarantees, in an amount and manner to be determined by MDA.

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.10 Penalties

Local Sponsors who fail to meet repayment obligations shall cause all or part of the Local Sponsor's Governing Authority's sales tax allocation and/or homestead exemption reimbursement to be withheld or shall be subject to such other penalties as MDA may prescribe.

History

• Source: Miss. Code Ann. § 57-61-15(7) (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.11 Disbursement Process

A Loan Agreement and Promissory Note (the “Loan Documents”) will be executed between the Local Sponsor, the Governing Authority, and MDA. The Loan Documents are required for disbursement of funds and cannot be executed until all required conditions in these guidelines have been met.

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.12 Reimbursement Process

The State will release loan funds on a reimbursement basis for approved eligible costs of the project as incurred. The Local Sponsor shall certify to MDA

during construction that the expenses were incurred and were in accordance with the plans approved by MDA. Funds will be released periodically upon receipt of supporting documentation from the Local Sponsor. Funds may not be drawn down more frequently than monthly.

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.13 Audit

Loans made under the Airport Loan Program are subject to audit by the State Department of Audit.

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.14 Waiver

These guidelines may be amended by MDA at anytime. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

History

• Source: Miss. Code Ann. § 57-61-41 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 13.15 Compliance with Federal Immigration Laws and Mississippi Employment Protection Act

Local Sponsors and/or Project contractors are required to ensure compliance with the Mississippi Employment Protection Act (“MEPA”), Miss. Code. Ann. § 71-11-3 et seq., and must ensure that the Local Sponsor and/or Project contractors register and participate in the status verification system for all newly hired employees. The term "employee” as used herein means any person that is hired to perform work within the State of Mississippi. As used herein, "status verification system" means the Illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program, or any other successor electronic verification system replacing the E-Verify Program. Local Sponsor and/or Project contractors must maintain records of such compliance and, upon request of the State of Mississippi and approval of the Social Security Administration or Department of Homeland Security, where required, to provide a copy of each such verification to the State. Any person assigned to perform services must meet the employment eligibility requirements of all federal and state immigration laws. Any breach may subject the company to the following: (a) termination of the Agreement and ineligibility for any state or public contract in Mississippi for up to three (3) years, with notice of such cancellation/termination being made public, or (b) the loss of any license, permit, certification or other document granted to the company by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year, or (c) both. In the event of such termination/cancellation, the Local Sponsor and/or Project contractor would also be liable for any additional costs incurred by the State due to contract cancellation or loss of license or permit.

Adopted: May 3, 2021

History

• Source: Miss. Code Ann. § 71-11-3; Miss. Code Ann. § 57-1-371; Miss. Code Ann. § 57-1-373.

Chapter 14 Mississippi Small Enterprise Development (SED) Finance Act

6 Miss. Admin. Code Pt. 1, R. 14.1 Introduction

The Small Enterprise Development Program (“SED”), administered by the Mississippi Business Finance Corporation (“MBFC”), is a program designed for the purpose of making loans to qualified private companies (“Borrower”), in order to finance the location or expansion of projects, as defined below, which will result in increased employment and investment in small communities. Funding for the SED program is derived from the issuance of taxable or tax exempt general obligation bonds (“Bonds”) of the State of Mississippi (“State”). SED was enacted by the State Legislature during the 1988 Regular Session.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.2 Small Community

Small community is defined as any county, city, or town with a population of 50,000 or less and any area within five (5) miles of such town or city, determined according to the most recent Federal Decennial Census.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.3 Borrower

In order to qualify for a loan under SED, the Borrower must meet the following requirements: A. The assistance must be requested by a private company located or to be located within the State which is an agricultural, aquacultural, horticultural, industrial, manufacturing, or research and development enterprise or enterprises, or the lessor of such enterprise (a “Qualified Project” or a “Project”); B. The Borrower must be able to demonstrate that the assistance will result in creation and maintenance of a minimum of ten (10) net new full-time equivalent jobs; C. The Borrower must meet the financing eligibility requirements then imposed by State and federal laws; The Borrower must have a viable and attainable business plan and the ability to timely repay the loan; D. The Borrower must meet the definition of “principal user and related parties” as set forth by the Internal Revenue Code of 1986; E. The Borrower may not have in excess of forty million dollars ($40,000,000) in tax- exempt bonds issued and outstanding for its benefit within the United States; F. The Borrower must certify, in a form satisfactory to MBFC, that it will not discriminate against any employee or any applicant for employment because of race, religion, color, national origin, sex, or age; and G. The Borrower must meet all other requirements set forth in the Act and the program guidelines.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.4 Projects

In order to be considered eligible for assistance, a Project must: A. Be located in a small community within the State; (i). (NOTE: Twenty percent (20%) of the total program funding may be used in communities which do not fall within the definition of small community.); B. Be approved for financing by MBFC; C. The principal user must meet the requirements of an eligible Borrower; and D. Otherwise meet the requirements under the Act and the program guidelines.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.5 Working Capital

No portion of the proceeds of the loan may be used to provide working capital to the Borrower.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.6 Maximum Loan Amount

The maximum amount of an SED loan, when added to all capital expenditures of the Borrower and certain facility users and related persons made in the small community in which the Project is located, cannot exceed $10,000,000, during the period commencing three (3) years prior to the date of the issuance of the Bonds and ending three (3) years thereafter.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.7 Costs

Under State and federal laws, the proceeds of a loan may be used by a Borrower to finance the following (“Eligible Costs”): A. The acquisition of raw land to the extent of twenty-five percent (25 %) of the loan proceeds; B. Acquisition, construction, rehabilitation, improvement, and expansion of buildings and other improvements; (i). (NOTE: The loan may not be used to acquire an existing building unless an amount equal to fifteen percent (15%) of the building cost, separate and apart from land costs, is used for renovation or improvement purposes.); B. Acquisition of new machinery and equipment; and (i). (NOTE: Except under limited circumstances, loans may not be used for the acquisition of used equipment.) C. Capitalized interest and, if approved by MBFC, necessary reserve funds. Any cost incurred prior to approval by MBFC will not be eligible for reimbursement with Bond proceeds. Most expenses incurred thereafter can be reimbursed provided they are cost related to the Project. Cost of issuance is not an Eligible Cost reimbursable out of the proceeds of a loan.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.8 Letter of Credit

The SED program gives all financial institutions in Mississippi meeting MBFC criteria an opportunity to issue letters of credit to support local economic development efforts. Financial institutions will be required to furnish year-end statements for the past three (3) years and its most recent call report to MBFC.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.9 General

The proceeds from the issuance of Bonds will be loaned to the Borrower to be applied to the payment of Eligible Costs of the Project. Such loan made by MBFC will not exceed two million dollars ($2,000,000) in the aggregate to any one Borrower, and the term shall

not exceed fifteen (15) years. The rate on the loan will be a fixed rate of interest equal to the net interest rate on the Bonds plus annual fees as hereinafter defined.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.10 Limits

The loan cannot be used to refinance existing debt, (except for Eligible Costs of the Project incurred subsequent to the date of inducement such as a construction loan), and shall not exceed ninety percent (90%) of the fair market value of the real and/or personal property acquired or constructed with the loan proceeds as determined by certified appraisal. The loan will be secured by a first mortgage lien on the Project and a direct pay letter of credit.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.11 Loan Agreement

To evidence each loan, MBFC, a Servicing Trustee, and the Borrower will enter into a loan agreement (“Loan Agreement”) under which the Borrower will agree to make payments in such amounts, in the manner and at such times as MBFC shall determine which payment shall be sufficient to pay the principal and interest on the Bonds and the annual fees of MBFC. Before entering into the Loan Agreement, the Borrower will be required to indemnify MBFC and the State in connection with the issuance of the Bonds and the loan (“Indemnity Letter”). The debt service on the Bonds and all expenses related to the issuance of the Bonds shall be paid by Borrowers participating in the program. The Borrower shall have the right under the Loan Agreement to make an advance prepayment of the loan upon such terms and conditions as MBFC may allow.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.12 General

A financial institution (“Financial Institution”) issuing a letter of credit must be approved by MBFC. The letter of credit must be an irrevocable direct pay letter of credit in an amount of one hundred three percent (103%) of the loan plus two hundred ten (210) days interest thereon. The Financial Institution must allow for the assignment of the letter of credit by the Borrower. The letter of credit, to be delivered at the closing of the Borrower's loan, will be for a term of not less than five (5) years and will consist of semi-annual interest and annual principal payments.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.13 Limits

The annual cost of the letter of credit shall not exceed two percent (2%) of the outstanding principal balance of the loan plus two hundred ten (210) days interest. If a letter of credit is not renewed upon expiration, MBFC shall draw upon the letter of credit for full payment of the outstanding principal and accrued interest of the loan, including any penalties or other costs.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.14 Reimbursement Agreement

The Financial Institution issuing the letter of credit will enter into a reimbursement agreement (“LOC Agreement”) with the Borrower whereunder the

Borrower will agree, among other things, to repay the Financial Institution for any amounts it has advanced and other costs associated with the letter of credit.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.15 Reimbursement Agreement Prerequisite

As a prerequisite to the LOC Agreement, the Borrower may be required to provide the Financial Institution the following: A. Certain positive and/or negative financial covenants; B. Grant liens or security interests in assets of the Borrower or its affiliates or stockholders; C. Personal and/or corporate guarantees; and D. Such other assurances as may be mutually agreed upon.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.16 General

SED Program documents may be obtained from MBFC. Three (3) copies of the completed application, along with the non-refundable application fee, must be filed by the Borrower with the MBFC staff in order to initiate the review process. Other documents which must accompany the application are a letter of intent from a Financial Institution to issue a letter of credit and an Indemnity Letter executed by the Borrower. If the application is denied by the staff, the Borrower will be advised.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.17 Approval

Upon approval of the application by the staff, the Borrower will be informed of the date of presentation of the Project to the MBFC Board of Directors (the “Board”). The staff recommendation will be in the form of an inducement resolution outlining the scope of the Project. The Borrower will be notified of the action taken by the Board.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.18 Obligations of the State

It should be noted, however, that under the terms of the Indemnity Letter, neither the State nor MBFC has any obligation, financial or otherwise, to any Borrower or other person for the failure of the State to issue, sell, or deliver its Bonds.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.19 Application Fee

The Borrower will be required to pay to MBFC, concurrently with the submission of the application, a nonrefundable application fee in the amount of five hundred dollars ($500). The Borrower may also expect to pay a processing fee to the issuer of the letter of credit in such amount as is customarily charged by such institution for reviewing and processing applications.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.20 Closing Costs

Closing costs include the cost of legal services, financial advisor fees, or other professional services employed by MBFC in reviewing or closing the loan and in relation to the State's issuance of Bonds which is estimated to be three percent (3 %) of the loan amount. Prior to the sale of the Bonds, the Borrower will be required to provide a good faith deposit which represents two percent (2%) of the loan amount. Such deposit will be applied toward the Borrower's pro rata share of the costs set forth herein.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.21 Annual Fees

Annual fees are composed of: A. MIBFC Servicing Fee, which equals one-eighth (1/8) of one percent (1 %) of the outstanding principal balance of the loan, will be collected annually on the principal payment due date. The Servicing Trustee will invoice each Borrower for this fee. B. Servicing Trustee Fee is estimated to be one-eighth (1/8) of one percent (1 %) of the outstanding principal balance of the loan. The Servicing Trustee will collect this fee on the annual principal payment date. C. Letter of Credit Bank Fee, which is negotiable, cannot exceed two percent (2 %) of the outstanding balance of the loan and will be based on a schedule and amount initially agreed upon by the Borrower. These fees cannot be paid out of loan proceeds.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.22 General

All loan and mortgage documents shall be executed and delivered prior to disbursement of any SED funds.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.23 Reimbursement Process

MBFC will release loan funds on a reimbursement basis for Eligible Costs of the Project as incurred. Funds will be released periodically upon receipt of documentation in support thereof from the Borrower or delivery of a certificate of completion of the Borrower. Requests for SED funds will be submitted to the Servicing Trustee for verification of compliance with the terms of the loan documents. These requests must be submitted to the Servicing Trustee between the first and the fifth of the month in order for the Borrower to receive SED funds within the same monthly time period. MBFC will process the approved request within a two-week period and funds will be disbursed to the Servicing Trustee for reimbursement to the Borrower.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.24 Loan Assignments

A loan may be assigned and assumed by a different Borrower upon the transfer or conveyance of a Project, provided that, (a) the new Borrower assumes all of the obligations of the assigning Borrower under the Loan Agreement and all other applicable documents; (b) the new Borrower at the time of such assignment qualifies under existing provisions of the Act, federal laws, and program guidelines; and (c) the assignment and assumption is approved by the issuer of the letter of credit and MBFC.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 14.25 Program Guideline Amendments and Waivers

These guidelines may be amended by MBFC at any time. MBFC, in its discretion, may temporarily waive any requirement of these guidelines to the extent that the result of such waiver is to promote the public purposes of the Act and is not prohibited by State or federal laws.

History

• Source: Miss. Code Ann. § 57-71-1 et. seq. (Rev. 2008)

Chapter 15 Port Revitalization Revolving Loan Program

6 Miss. Admin. Code Pt. 1, R. 15.1 Purpose

The Mississippi Port Revitalization Revolving Loan Program (“Port Loan Program”), administered by the Mississippi Development Authority (“MDA”) is designed for making loans to state, county, or municipal port authorities (“Local Sponsors”) for the improvement of port facilities to promote commerce and economic growth in the state of Mississippi (the “State”). Funding for loans to Local Sponsors is derived from the issuance of State bonds or notes. The Port Loan Program was enacted by the State Legislature during the Regular 1992 Session.

History

• Source: Miss. Code Ann. § 57-61-41 (Rev. 2008).

6 Miss. Admin. Code Pt. 1, R. 15.2 Local Sponsors

Local Sponsors considered to be eligible applicants are state, county, and municipal ports authorized to operate in the State. In order to obtain assistance under the Port Loan Program, a Local Sponsor's governing authority (the “Governing Authority”) must submit an application to MDA, which will forward copies of such application to members of the Water Resources Council Committee for review. Within fourteen (14) days of receipt of the application, the Water Resources Council Committee will make a written recommendation to MDA specifically outlining their assessment of the application.

History

• Source: Miss. Code Ann. § 57-61-41 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 15.3 Eligible Projects

Projects which are eligible for assistance must be directly related to the port facility and are limited to construction, expansion, improvements, rehabilitation, or repair of: A. Dock and channel sites to include dredging B. Drainage systems C. Energy facilities (power generation and distribution) D. Sewer systems (pipe treatment) E. Transportation facilities directly affecting the site, including roads, sidewalks, bridges, rail lines, rivers, or pipelines F. Building G. Water supply systems (storage, treatment, and distribution) H. Marine structures I. Equipment necessary for port operation J. Land improvements

History

• Source: Miss. Code Ann. § 57-61-41 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 15.4 Limits

Loan funds may not be used for working capital by the port facility, nor to provide facilities for utilization by a gambling vessel.

History

• Source: Miss. Code Ann. § 57-61-41 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 15.5 Local Sponsor Application

The application to be submitted by a Local Sponsor must include: A. The purpose of the proposed loan including a list of eligible items and the cost of each; B. The estimated cost of the total project, a description of the Local Sponsor's investment in the project, and all public or private sources of funding; C. The time schedule for implementation and completion of the project, evidencing an expeditious completion of the project; D. A statement of intention to operate the project for a time period equal to the term of the loan; E. Certified proofs of publication of the Resolution of Intention of the Governing Authority to apply for Port Loan funds. (Examples of the Resolution, which must be published once a week for at least four (4) consecutive weeks in a newspaper having general circulation in the county, may be found as Exhibit A or B. Upon receiving the results of the publication of the Resolution of Intention, the Governing Authority will need to provide MDA with an executed Resolution of No Protest.) F. A statement that the specific improvements are necessary for the efficient and cost- effective operation of the port and/or the project, together with supporting financial and engineering documentation; G. A statement of willingness to comply with nondiscrimination and equal employment opportunity requirements; and H. Current employment levels at the project site and estimated increases, if any, as a result of financing the project.

History

• Source: Miss. Code Ann. § 57-61-41 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 15.6 Evaluation

Four (4) copies of the application must be submitted to MDA. MDA will evaluate the application and the Water Resources Council Committee's recommendation to determine if the project meets the program criteria and what terms and conditions the loan should bear.

History

• Source: Miss. Code Ann. § 57-61-41 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 15.7 General Loan Terms

The maximum amount, which may be loaned from Port Loan Funds to finance any one project, is $1,000,000. Port Loan Funds may be used for one hundred percent (100%) project financing. The maximum term will be for up to ten (10) years with an interest rate of one percent (1%) per annum.

History

• Source: Miss. Code Ann. § 57-61-41 (Rev. 2008).

6 Miss. Admin. Code Pt. 1, R. 15.8 Principal and Interest

The principal and interest will be paid on an annual basis and will be used to fund future loans under the Port Loan Program.

History

• Source: Miss. Code Ann. § 57-61-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 15.9 Liens

If applicable, MDA may require a lien on the improvements made at a port for the benefit of a private company. The private company must be willing to grant a lien or to provide collateral, e.g., a letter of credit, corporate or personnel guarantees, in an amount and manner to be determined by MDA.

History

• Source: Miss. Code Ann. § 57-61-1 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 15.10 Penalties

Local Sponsors who fail to meet repayment obligations shall cause all or part of the Local Sponsor's Governing Authority's sales tax allocation and/or homestead exemption reimbursement to be withheld or shall be subject to such other penalties as MDA may prescribe.

History

• Source: Miss. Code Ann. § 57-61-41 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 15.11 General

A Loan Agreement and Promissory Note (the “Loan Documents”) will be executed between the Local Sponsor, the Governing Authority, and MDA. The Loan Documents are required for disbursement of funds and cannot be executed until all required conditions in these guidelines have been met.

History

• Source: Miss. Code Ann. § 57-61-41 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 15.12 Reimbursement Process

The State will release loan funds on a reimbursement basis for approved eligible costs of the project as incurred. The Local Sponsor shall certify to MDA during construction that the expenses were incurred and were in accordance with the plans approved by MDA. Funds will be released periodically upon receipt of supporting documentation from the Local Sponsor. Funds may not be drawn down more frequently than monthly.

History

• Source: Miss. Code Ann. § 57-61-41 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 15.13 Audit

Loans made under the Port Loan Program are subject to audit by the State Authority of Audit.

History

• Source: Miss. Code Ann. § 57-61-41 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 15.14 Waiver

These guidelines may be amended by MDA at anytime. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

History

• Source: Miss. Code Ann. § 57-61-41 (Rev. 2008)

6 Miss. Admin. Code Pt. 1, R. 15.15 Compliance with Federal Immigration Laws and Mississippi Employment Protection Act

Local Sponsors and/or Project contractors are required to ensure compliance with the Mississippi Employment Protection Act (“MEPA”), Miss. Code. Ann. § 71-11-3 et seq., and must ensure that the Local Sponsor and/or Project contractors register and participate in the status verification system for all newly hired employees. The term "employee” as used herein means any person that is hired to perform work within the State of Mississippi. As used herein, "status verification system" means the Illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program, or any other successor electronic verification system replacing the E-Verify Program. Local Sponsor and/or Project contractors must maintain records of such compliance and, upon request of the State of Mississippi and approval of the Social Security Administration or Department of Homeland Security, where required, to provide a copy of each such verification to the State. Any person assigned to perform services must meet the employment eligibility requirements of all federal and state immigration laws. Any breach may subject the company to the following: (a) termination of the Agreement and ineligibility for any state or public contract in Mississippi for up to three (3) years, with notice of such cancellation/termination being made public, or (b) the loss of any license, permit, certification or other document granted to the company by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year, or (c) both. In the event of such termination/cancellation, the Local Sponsor and/or Project contractor would also be liable for any additional costs incurred by the State due to contract cancellation or loss of license or permit.

Adopted: May 3, 2021 Part 1 Chapter 16: The Mississippi Motion Picture Production Tax Incentive Program

History

• Source: Miss. Code Ann. § 71-11-3; Miss. Code Ann. § 57-1-371; Miss. Code Ann. § 57-1-373.

6 Miss. Admin. Code Pt. 1, R. 16.1 Purpose

The Mississippi Motion Picture Incentive Program provides a cash rebate on eligible expenditures, payroll, and fringes. This program is available for nationally distributed motion pictures, television programs, DVDs, documentaries, short films, commercials for network or cable broadcast, video games, and stand-alone post production and includes animation, interactive media, 3D applications, cinematics, visual effects, and motion capture. National distribution includes theatrical, broadcast, direct to DVD/video, festival screening, streaming video, and internet delivery.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.2 Minimum Investment

There is a $50,000 minimum Mississippi investment (local spend) per project. There is a $10 million per project rebate cap. There is a $20 million annual rebate cap. There is no minimum requirement for production days or percentage of production spend. At least 20% of the production crew on payroll must be Mississippi residents.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 16.3 Utilization of Mississippi Motion Picture Incentive Program/Mississippi Film Logo

Utilization of the Mississippi Motion Picture Incentive Program must be acknowledged on screen,

and a Mississippi Film logo must be included in the end credits. Graphic will be provided. Additionally, cities and/or counties where filming took place must be acknowledged.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.4 Mississippi Investment Rebate A

A production is eligible for a 25% rebate of their base investment (local spend) in Mississippi. The base investment is based on production expenditures in Mississippi. As a general rule, Mississippi spend is defined as expenditures made to companies based in Mississippi, including cast and crew non-payroll expenditures (i.e., per diems and housing allowances). B. Payments made for airfares directly related to the project in Mississippi where travel is to/from airports in Mississippi, Baton Rouge, New Orleans, Memphis, or Mobile are qualified spend only if reservations are made through a Mississippi-based travel agent or agency. C. The rental or purchase of equipment and production-specific goods and services is qualified spend only if secured in the following instances: (i) directly from a Mississippi production company/vendor; or (ii) through a Mississippi production company/vendor providing equipment rented from an out-of-state company or a Mississippi vendor regularly engaged in the business of providing specific goods and services (“like-for-like”), provided an industry standard mark-up has been added; or (iii) from an out-of-state equipment company that has established a staffed local office or has contracted with a local representative in Mississippi. The motion picture production company must not supply any assistance or instruction to the local vendor in providing and/or securing any services or tangible personal property from out of state. Please note that all payments must be delivered to the vendor’s Mississippi location. Payments sent out of state, generally, are not eligible for the rebate.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.5 Non-Resident Payroll and Fringes Rebate

A production is eligible for a 25% cash rebate on payroll and fringes paid to non-resident cast and crew whose wages are subject to Mississippi income tax withholding and for that portion of their salary for the project up to and including $5 million. For purposes of this program, payroll means salary, wages, or other compensation including related benefits paid to employees upon which Mississippi income tax is due and has been withheld. Fringes mean costs paid by a motion picture production company for employee benefits that are not subject to state income tax. Fringes may include, but are not limited to, payments by an employer for unemployment insurance, Federal Insurance Contribution Act (FICA), workers' compensation insurance, pension and welfare benefits, and health insurance premiums. Payments to loan outs qualify if 5% Mississippi income tax is withheld.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.6 Resident Payroll and Fringes Rebate

A production is eligible for a 30% cash rebate on payroll and fringes paid to resident cast and crew whose wages are subject to Mississippi income tax withholding and for that portion of their salary for the project up to and including $5 million. (The employee must live in Mississippi or maintain a permanent home here and spend more than 6 months

each year in the state.) For purposes of this program, payroll means salary, wages, or other compensation including related benefits paid to employees upon which Mississippi income tax is due and has been withheld. Fringes mean costs paid by a motion picture production company for employee benefits that are not subject to state income tax. Fringes may include, but are not limited to, payments by an employer for unemployment insurance, Federal Insurance Contribution Act (FICA), workers' compensation insurance, pension and welfare benefits, and health insurance premiums. Payments to loan outs qualify if 5% Mississippi income tax is withheld.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.7 Honorably Discharged Veteran Payroll Rebate

A production is eligible for an additional 5% cash rebate on payroll paid to any member of the cast or crew who is an honorably discharged veteran of the United States Armed Forces.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.8 Stand-Alone Post and ADR/Voiceover/Recording Not Originated in Mississippi

Regarding stand-alone post and ADR/voiceover/recording for production not originated in Mississippi: the voiceover talent payroll rebate cannot be more than three (3) times the production spend for the session in Mississippi. (For example, if the total production spend, including all production payroll, is $15,000, the rebate on the talent payroll cannot exceed $45,000.) For more information or clarification, please contact the Mississippi Film Office.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.9 Sales and Use Tax Reduced Rates

In addition to the Mississippi Motion Picture Incentive Program, Mississippi offers a sales and use tax reduction on eligible rentals/purchases to encourage film production in the state. Production equipment and machinery used directly in the filming and/or editing of a project may be taxed at the reduced rate of 1.5%, as stated in Miss. Code Ann. Section 27-65-11 and Section 27-65-17. The following production equipment is eligible for this reduced rate: A. Audio equipment B. Camera equipment C. Editing equipment D. Lighting equipment E. Projection equipment F. Sound equipment G. Computer equipment used for animation, editing, or special effects

Rule 16.10. Registration with Mississippi Department of Revenue. A production must register for a use tax number and a Direct Pay Permit online through the Mississippi Department of Revenue website, www.dor.ms.gov, in order to access the reduced tax rate. All relevant Department of Revenue documents must be completed, submitted to the Department of Revenue, and approved by the Department of Revenue before sales and use tax reductions can be taken. A production may register immediately upon being approved into the Mississippi Motion Picture Incentive Program by

the Mississippi Development Authority (MDA).

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)
• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.11 Application

The production company must submit an application to the Mississippi Film Office/Mississippi Development Authority (MDA) Required with the application are: A. The script and a one page synopsis (if a feature/television project), the storyboard (if a commercial) or the treatment (if a documentary). B. The proposed budget.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.12 Name of the Production Company

The production company name on the application is the name that will be listed on the certificate issued by MDA. The production company name on the application and certificate must match the name to be used on production expenditures, billings, and invoices for those expenses to be eligible for the rebate, and the entity applying for the rebate must have the same Federal Tax ID Number as the entity that will incur and pay production costs. A. It is possible for a company to work under a “doing business as” name or DBA, but the entity on the application and the DBA must have the same Federal Tax ID Number; the dba cannot be a separate legal entity.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.13 Submission of Application

The application must be submitted before the beginning of production for the Mississippi portion of the project. It is suggested the application be submitted to the Mississippi Film Office at least one month prior to the start of pre-production.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.14 Application Review

The Mississippi Film Office and MDA’s Financial Resources Division review the application for requisite information and determine whether it meets the program’s requirements. Based on submitted budget information, the MDA establishes a maximum rebate figure at this time. The date the Film Office and Financial Resources Division complete review of the application and determine the production meets the program’s requirements will be the eligibility date for all expenses related to the production. This date will be noted in a letter from the Film Office. Rebates will not be given on any expenditure made prior to the date on this letter.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.15 Public Announcement of Project

Once the production is prepared to publicly announce the project and has its funding in place, the production company must notify the Mississippi Film Office. The production then is placed on the agenda of a public meeting of the MDA Board for official MDA approval and is issued a certificate by MDA.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.16 Changes in Information Submitted in the Application

If any information submitted in the application changes, the production company must notify the Film Office; official MDA approval of a production company for the Mississippi Motion Picture Incentive Program is subject to the representations made by the production company in the application.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.17 Request for Upward Revision of Rebate

Any upward revision of the original rebate estimate must be requested in writing to the Mississippi Film Office and submitted prior to the completion of production in Mississippi. A revised budget must be submitted to substantiate the revision.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.18 Refund

Upon completion of the Mississippi portion of the project, the production company must supply the Mississippi Department of Revenue and the Mississippi Film Office with documentation to substantiate the rebate request. The Department of Revenue will provide sample templates for the submission of spend and payroll. Extensive documentation must be maintained and submitted during the rebate submission process. It is recommended that the Department of Revenue be contacted concerning proper rebate documentation practices before expenses are incurred. A link to the incentive book containing details of the rebate submission process can be found on the Department of Revenue website at www.dor.ms.gov.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.19 Audit by Mississippi Department of Revenue

The Mississippi Department of Revenue will audit the submission in house and will attempt to deliver a first review of the rebate request within 90 days after submission of all required and requested documentation.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.20 Nonpayment of Vendors

In the event the production company fails to pay vendors, employees, or independent contractors in a timely fashion, the audit and review process may be delayed until those issues are resolved.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.21 Additional Requirements

A. During pre-production, the production must submit to the Mississippi Film Office blank copies of the production’s Certificate of Insurance, the Location Agreement, and any talent releases and crew deal memos. Other relevant forms may also be requested. B. No later than a week before the start of principal photography in Mississippi, the production must supply the Mississippi Film Office with the following information: (i) Crew list (ii) Cast list

(iii) Location list (iv) Vendor list (v) Day out of days (vi) Shooting schedule (vii) Shooting script C. Additionally, the director and deputy director of the Film Office must be added to the distribution list for all call sheets and all script revisions. D. Upon completion of production, final versions of the above lists must be submitted to the Film Office. E. These guidelines are only intended to summarize the Mississippi Motion Picture Incentive Program process. For additional information relating to the incentive application and to production in Mississippi, please contact the Mississippi Film Office at: (i) 601-359-6564 bblack@mississippi.org (ii) 601-359-3422 wemling@mississippi.org F. For Department of Revenue Guidelines and additional information and clarification relating to the rebate process, submission of spend and payroll, and eligible spend, please contact: (i) Sam Portera Mississippi Department of Revenue 601-923-7317 sam.portera@dor.ms.gov

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

6 Miss. Admin. Code Pt. 1, R. 16.22 Amendment/Waiver of the Guidelines

These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of these guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State laws.

History

• Source: Miss. Code Ann. § 57-89-1 et seq. (Rev. 2014)

Chapter 17 Amended Visit Mississippi Tourism Matching Grants Program

6 Miss. Admin. Code Pt. 1, R. 17.1 Purpose

The goal of the program is to generate increased travel into and/or within Mississippi, have broad appeal targeting markets beyond the local area and make an economic impact on the area through tourism promotion. Visit Mississippi Tourism Matching Grants Program administered by the Mississippi Development Authority / Visit Mississippi.

History

• Source: Miss. Code Ann. § 57-1-60 et seq. (1972), as amended.

6 Miss. Admin. Code Pt. 1, R. 17.2 Eligibility Requirements

Eligible applicants for funding are Mississippi Convention and Visitors Bureaus or Chambers of Commerce with designated Tourism Council or Commission or established Tourism Councils with the primary objective of promoting tourism. In addition, an applicant organization that receives grant funding must

be the responsible party for placement of advertising.

History

• Source: Miss. Code Ann. § 57-1-60 et seq. (1972), as amended.

6 Miss. Admin. Code Pt. 1, R. 17.3 Auditing

For auditing purposes, we must have an established tourism entity designated as a financial base for the payment of the grant monies.

History

• Source: Miss. Code Ann. § 57-1-60 et seq. (1972), as amended.

6 Miss. Admin. Code Pt. 1, R. 17.4 Items Eligible for Funding Consideration

Projects eligible for funding consideration include only those directly related to the promotional efforts targeted to markets outside your immediate area (over 100-mile radius or out of state). The following are the only projects eligible and applicable costs after submission and approval of the applicant's final report, which must be submitted to the Director of Visit Mississippi within 60 working days of the project's completion. A. Advertising through mass media, including newspapers, magazines, radio, television, billboards and internet advertising, including social media (eligible for up to 50% of the project cost. PLEASE NOTE THAT ADVERTISING IN THE MISSISSIPPI TOUR GUIDE IS INELIGIBLE FOR SUBMISSION.

History

• Source: Miss. Code Ann. § 57-1-60 et seq. (1972), as amended.

6 Miss. Admin. Code Pt. 1, R. 17.5 Process and Selection Criteria

The selection process will be carried out by a five- member committee made up of the president (or his designee) of the Mississippi Hotel & Lodging Association, the Mississippi Restaurant Association and the Mississippi Tourism Association, plus two additional members appointed by the Director of Visit Mississippi.

A. All projects for consideration must be submitted to Visit Mississippi by 5:00 pm on the application deadline date, which will be set by the grant committee. The committee will meet after the given application deadline to review projects. All grant recipients must be notified in writing of the eligibility of their submitted project 40 working days after submission to Visit Mississippi. All projects must be completed within one year from the date of approval. **NOTE: FUNDING WILL BE AVAILABLE ONLY AFTER PROJECT COMPLETION (Reimbursable Grant).

B. Each applicant will be judged objectively and solely on the merits of the project through the approved Performance Evaluation Expenditure Review (PEER) Rating System. The decisions rendered by the Grant Committee are final and are not appealable to the State Tourism Director.

History

• Source: Miss. Code Ann. § 57-1-60, et seq (1972), as amended.

6 Miss. Admin. Code Pt. 1, R. 17.6 Checklist for Project Requirements

All projects receiving a grant must adhere to the following rules. If any of these rules are not followed, a project will be deemed ineligible for consideration, and the Director of Visit Mississippi will withhold monies to

the project. The rules are: A. Display Visit Mississippi’s logo and grant phrase. All funded projects must display the Visit Mississippi logo. All radio ads must use the grant phrase, "This project is partially funded by Visit Mississippi." Projects will receive NO funding if the logo/grant phrase is not included on the project(s). B. Display organizations' contact information. All funded projects must list the contact information such as address, telephone number and/or website for general inquiries. C. Copy should generate interest in local tourism offerings (product). Ineligible material includes quality of life, industrial/retirement recruitment, and will not be funded. D. Grant monies cannot be used to match state-generated or appropriated funds. E. If organization receives state appropriated funds, then the organization is ineligible for match grant funds under this program.

History

• Source: Miss. Code Ann. § 57-1-60, et seq (1972), as amended.

6 Miss. Admin. Code Pt. 1, R. 17.7 Attachments for Application

The following material must be attached/included with the application: A. Potential for economic return. Number II in the Matching Grant Application. All applications must identify target audiences and demonstrate potential for economic return. (**NOTE: IF THIS IS A REPEAT PROJECT, PLEASE REPORT RESULTS IN SECTION V OF THE TOURISM MATCHING GRANTS APPLICATION) B. Project distribution/media plan/marketing plan. Number IV in the Matching Grants Application. All applications must identify means of distribution (how will your target audience receive your information). Utilizing paid media, you list the name of the publication, the size of the ad, dates ad will run and actual ad cost. This is necessary whether newspaper, radio, television, magazine, billboard or digit6al/online advertising (website banner ads, Facebook ads, Twitter ads, Instagram ads, etc.) is used. Because the Visit Mississippi Tourism Matching Grants Program is designed to bring new visitors into an area, local advertising is ineligible. Your marketing plan must reflect the project's strength and appeal in bringing new visitors into your area. Include Advertising Placement Schedule. C. Project Research. Number Vin the Matching Grants Application. All applicants must provide methods for research tracking measurement of each project's results. Research results must be submitted to Visit Mississippi within one year of project completion. The procedure used to research the effectiveness of your advertising and promotional efforts must be included. **Examples: *To use redeemable coupon in print and/or paid media, you would put a different tracking code on each of the coupons. When the coupon is redeemed, you could identify the medium that was used and determine which medium produced the best results. *You can ask callers where they heard or saw your advertisement.

*You can conduct consumer intercept surveys on site. *Specific landing page on your website to which you drive consumers. D. Verifiable research data. If funding permits, this program will be available next year. Please keep in mind that all repeat projects will require verifiable research data. Cost per inquiry may be considered a factor. E. Professional fees. Visit Mississippi will not be responsible for any professional fees incurred in this project. This includes production costs and commissions. F. Authorizing signatures. All submitted projects must bear the signature of the authorizing officer of the organization and/or the Chief Financial Officer.

History

• Source: Miss. Code Ann. § 57-1-60, et seq (1972), as amended.

6 Miss. Admin. Code Pt. 1, R. 17.8 General Grant Fulfillment Information

A. Notification of the grant awards. All projects approved for funding must receive written confirmation from Visit Mississippi within 40 working days. (No oral approvals will be allowed). B. Modifications to grant projects. If a project changes during the development stages, then a letter is to be written to Visit Mississippi for approval before modification. The letter is to state what has been approved for funding, the requested change, the reasons for the change and any alterations in cost. Project changes must be submitted to Visit Mississippi for approval prior to modification. Any modification to a grant resulting in a cost increase up to 10 percent more than the original designated amount may be approved by the grant coordinator. C. Acceptance letter. The letter of acceptance must be returned to the Visit Mississippi within 15 working days after notification of grant approval. D. Final reports. Completed grant reports must be received by Visit Mississippi within one year of grant award date or the project may be rejected for funding.

History

• Source: Miss. Code Ann. § 57-1-60, et seq (1972), as amended.

6 Miss. Admin. Code Pt. 1, R. 17.9 Final Report Checklist (Grant Applicant/Grant Coordinator)

A. Is backup documentation arranged in same order as listed on original application? B. Is copy of vendor's invoice included? Eligible/applicable expenditures should be highlighted - sales tax not eligible. C. Is copy of the canceled checks (front and back) or Bank Statement providing proof of payment included and attached to invoices? D. Is one original advertisement/tear sheet, tape or brochure included? If a project is completed with ineligible material (quality of life, industrial/retirement recruitment) included, then it will NOT be funded. E. Is the Visit Mississippi logo/grant phrase included on the project? The Visit Mississippi Director will withhold funds if the logo is not included. F. Is the signature of the Director or Chief Financial Officer of the applicant, verifying the project has been completed, included? G. Is the sample invoice for receipt of payment complete and included? H. Is a written description of the event or project and the impact or contribution it had on

tourism included? (Media, billboard advertisements include description, name or media, location and dates ads ran). I. The above items must be checked off and included in the final report submitted to Visit Mississippi in order for projects to be processed for final payment.

History

• Source: Miss. Code Ann. § 57-1-60 et seq. (1972),as amended.

6 Miss. Admin. Code Pt. 1, R. 17.10 Awarding of Funds

Approved projects will receive all of the funded amount (up to 50 percent of total eligible costs) after submission and approval of the applicant's final report, which must be submitted to the Visit Mississippi Director of Tourism within one year of the grant award date. All funds awarded must be matched on a dollar-for-dollar basis by the applicant. Matching contributions must be in hard cash, not in-kind contributions. The match must be budgeted and allocated funds earmarked to the proposal. Applying organizations will be accountable for all monies awarded and responsible for submission and tracking of all research and measurement of completed project results. The tourism organization receiving a grant from Visit Mississippi, as well as any organization participating in this grant, will be subject to audit by the State Auditor’s Office. If the completed project cost is higher than the estimate, the organization will receive the amount originally approved when the awards were made on project proposals. If the total cost of the completed project is less than the provided estimate, the organization will be awarded the designated percentage of the lesser amount. (Example: if a project with a total estimated cost of $4,000 received an award of 50 percent or $2,000 and the actual cost was $3,000, then the project would receive 50 percent of the final cost, or $1,500.00.)

Rule 17. 11. Sample Invoice Information. The following information listed in quotations must be retyped on documents with your letterhead. Fill in the information for your project and include it in your final report. It must: A. Be titled "Invoice for Payment"; B. Include "Contact Name"; C. Include Organization Name" (as listed on the tax ID form), D. Include "Mailing Address", E. Include "City, State, Zip", F. Include "Project Title", G. Include "Project Code"(This number is listed in the letter of confirmation from Visit Mississippi), H. Include "Estimated cost of project listed on the application". I. Include "Actual Cost of the Project" (Only approved expenditures relating to grant project from original application), and J. Include "Match Grant Amount Due" (If project cost is less than estimate, you may receive only the designated percentage of the actual cost; if the project cost exceeds the estimate, you may receive only the original grant amount awarded). K. Contact Visit Mississippi Tourism Matching Grants Program for additional information.

History

• Source: Miss. Code Ann. § 57-1-60 et seq. (1972), as amended.
• Source: Miss. Code Ann. § 57-1-60, et seq (1972), as amended.

6 Miss. Admin. Code Pt. 1, R. 17.12 Contact Information

For more information on the Visit Mississippi Tourism Matching Grants program, please contact:

Yvonne Layton at 601-359-2781 or by email at ylayton@mississippi.org

Date Rules Adopted: June 9, 2020.

Chapter 18 Mississippi Rail Grant Program Rule 18.1 Purpose. The Mississippi Rail Grant Program (RAIL), as authorized and codified in the Mississippi Railroad Improvements Fund -- Miss. Code Ann. §57-46-1 (Rev. 2014) -- and administered by the Mississippi Development Authority (MDA), is designed for making grants to railroads ("Applicant") to finance projects to promote economic growth in the State of Mississippi ("State"). Funding for grants to Applicant is derived from appropriations or funds otherwise made available by the State Legislature.

6 Miss. Admin. Code Pt. 1, R. 18.2 Eligible Applicants

Any entity owning or operating a rail line in Mississippi that wishes to apply for a grant must submit an application to MDA. An eligible applicant is defined as follows: A. Regional Rail Authority – a publically owned entity established to provide rail service for a defined region within the state. B. Privately Owned Rail Service Provider – a company that owns or operates a rail line in Mississippi that provides rail service within the state.

Miss. Code Ann. §57-46-1 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 18.3 Eligible Projects

Eligible projects shall have a direct connection to economic development or aid in the creation of jobs. Eligible projects must identify specific repairs or improvements to a line that would make the line more competitive when providing services to industry in Mississippi.

Miss. Code Ann. §57-46-1 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 18.4 Key Points

RAIL funds may not be used for working capital, for general expenditures, which would normally be covered under an applicant’s general operation budget, or for administrative expenses. A. A limited amount of funds may be used for engineering/architectural cost. The amount of these professional services will be limited to an amount not to exceed 10% of the RAIL grant award amount. B. The RAIL Program is a competitive program. C. All funds awarded must be spent for improvements within the scope of the original project description as stated in the grant application.

D. Additionally, if grant recipients complete their project for less than the grant amount awarded, the excess funds can be requested for additional project work as long as there is no change from the scope of the original project. E. In no case, however, will an approved applicant be allowed to use excess grant funds to pay for project costs that vary from the original project description. F. All requested changes and variances from the original application should be made in writing and will be reviewed by MDA on a case-by-case basis.

Miss. Code Ann. §57-46-1 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 18.5 How to Apply for the Program

To apply for the Rail Grant Program, a completed application that is submitted by an Applicant must include: A. Purpose of the proposed grant including a list of eligible items and the cost of each; The estimated cost of the total project, a description of the Applicant's investment in the project, and all public or private sources of funding that have been secured and that will be utilized exclusively for the project; B. Time schedule for implementation and completion of the project, evidencing an expeditious completion of the project; C. A statement that the specific improvements are necessary for economic development or job creation; D. Engineering documentation; (Must be on the engineer’s letterhead, with his stamp/seal and signature) E. Current employment levels at the project site and estimated increase, if any, as a result of financing the project; F. One (1) copy of the application must be submitted to the Financial Resources Division of MDA, Rail Grant Program, Post Office Box 849, Jackson, Mississippi 39205 or hand-delivered to the 15th floor of the Woolfolk Office Building.

Miss. Code Ann. §57-46-1 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 18.6 General Grant Terms

A. The program intent is to stimulate growth and economic development through rail transportation infrastructure in the State. B. The amount of each grant awarded will be based on the applicant’s ability to participate in the project, the degree of need for the improvements, the lack of availability of other funding sources, the timeframe required to perform the improvements, the economic impact of the project on the community, and other criteria MDA develops. C. Each application will be evaluated on its own merit to meet the intent of the program. D. Each applicant must certify that they will perform standard maintenance and continue operations with reasonable customer pricing for a minimum of three years after the project is completed. E. In the event that the line is sold during the first three (3) years after the date of the final disbursement, the grant must be repaid to the State. F. A minimum match of 50%is required for Class 1 lines, and a 25% match is required for all other lines.

G. Failure to comply with Grant terms may result in repayment of grant funds. H. A deadline for applications will be published by MDA each calendar year. Miss. Code Ann. §57-46-1 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 18.7 Conditions for Disbursement of Funds

A Memorandum of Understanding will be executed between the Applicant and MDA.

Miss. Code Ann. §57-46-1 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 18.8 Reimbursement Process

A. MDA will release RAIL program funds on a reimbursement basis for approved eligible costs of the project as incurred. B. The Applicant shall certify to MDA during construction that the expenses were incurred and were in accordance with the plans and application approved by MDA. C. Funds will be released upon receipt of the RAIL Program Form of Requisition and supporting documentation from the Applicant. D. Funds may only be drawn down once a month. E. Applicants have two (2) years from the date of the Memorandum of Understanding to request reimbursement for RAIL project costs.

Miss. Code Ann. §57-46-1 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 18.9 Additional Information

Program inquires and applications should be directed to: A. Mississippi Development Authority Financial Resources Division Post Office Box 849 Jackson, Mississippi 39205 Telephone: (601) 359-2415 ~ Fax: (601) 359-3619 B. These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such action is to promote the public purpose of the Act and is not prohibited by State law.

Miss. Code Ann. §57-46-1 (Rev. 2014).

Chapter 19 Mississippi Air Service Development Program Guidelines

6 Miss. Admin. Code Pt. 1, R. 19.1 Purpose

The Mississippi Air Service Development Program Act, (“ASDP”) administered by the Mississippi Development Authority ("MDA"), is designed for making grants to commercial service airports to aid commercial airports in achieving their goals and objectives to enhance commercial air service and economic development in the State of Mississippi (the "State"). Funding for grants under the ASDP is derived from state funds. The ASDP was enacted by the State Legislature during the Regular 2014 Session.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.2 Eligible Applicants

Only commercial service airports (“Grantee”) which have scheduled air carriers that hold a Federal Aviation Administration (FAA) Part 121 Certificate and that provide scheduled air service at Mississippi airports that maintain FAA Part 139 Certification may apply for funding under this program.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.3 Eligible Expenditures

The fund shall be used to provide grants to commercial service airports, as provided in this section, for one or more of the following air service development goals: (a) Adding air service to a new destination; (b) Adding frequencies to current services; (c) Lowering fares/introducing new competitive service; (d) Upgauging aircraft; and (e) Adding a new FAA Part 121 commercial air carrier.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.4 Eligible Projects

Eligible projects for grants shall include marketing and advertising of new service and routes and additional frequencies and for other risk abatement plans. For the purposes of this program, marketing and advertising is defined as development, production and placement of advertising or promotional items and other promotional expenditures. Risk abatement plans include other expenditures in direct support of the new service or carrier such as improvements to the airport’s terminal may be approved at the discretion of the MDA Executive Director. Use of grant funds to purchase airline passenger seats is prohibited.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.5 Grant Amounts

The amount of a grant shall be based on a formula of Ten Dollars ($10.00) per seat per day calculation, not to exceed an annual total of Five Hundred Thousand Dollars ($500,000.00) per grant per airport. The calculation will be established using the air carrier’s monthly activity report. In no instance will any combination of grants exceed Five Hundred Thousand Dollars ($500,000.00) per year per airport.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.6 Matching Funds

Each grant shall require a forty percent (40%) match, which may be provided by private sources and/or public sources. Of the forty percent (40%) match prescribed under this subsection, only one-half (1/2) of the match may derive from in-kind sources. Cash matches can include discounts of standard airport fees (such as a landing fee) or other cash contributions whether by the airport, another public source or private sources provided that the cash contributions are directly associated with the new air service or carrier directly related to new or additional air services that are subject of a grant. In-kind match sources include donated services or waived fees and may be taken from third party private or public sources; however,

they must be verifiable and necessary and reasonable for proper and efficient recruitment of the new air service or carrier.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.7 Disbursements

Grants shall be disbursed by the Mississippi Development Authority within twelve (12) consecutive months as follows: (a) Thirty-five percent (35%) at the end of the first three (3) months of service; (b) Twenty-five percent (25%) at the end of the second three (3) months of service; (c) Twenty-five percent (25%) at the end of the third three (3) months of service; and (d) Fifteen percent (15%) at the end of the fourth three (3) months of service.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.8 Time Requirement for Expenditures

Each grant shall be expended within twelve (12) consecutive months from the date the grant is awarded. An airport grant recipient shall only utilize grant funds in accordance with FAA regulation.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.9 Ineligible Expenditures

Grant funds may not be used to purchase airline passenger seats.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.10 Discontinuance of Service or Route

If the air service or carrier discontinues the new service or route that was the subject of the grant during the 12-month grant period, MDA shall cease all unexpended disbursements incurred after the service was discontinued and move to terminate the grant agreement.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.11 Conditions for Disbursement of Funds

A Grant Agreement will be executed between the Grantee and MDA. The Grant Agreement cannot be executed until all required conditions in these guidelines have been met and all documentation received.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.12 Reimbursement Process

MDA will release ASDP funds on a reimbursement basis for approved eligible costs of the project as incurred. Payments will be only paid directly to the Grantee with proof of payment of eligible costs. Funds will be released upon receipt of the ASDP Form of Requisition and supporting documentation from the Grantee. Funds may not be drawn down more frequently than ever three months.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.13 Required Reports

Grant recipients shall submit to MDA a final report within 45 days of the final disbursement of grant funds under the agreement. The report shall describe in full detail the results of the grant including but not limited to: (a) New airline added; (b) New destinations or additional frequency added; (c) New seats added to the market; (d) Impact on fares in the market; (e) Financial impact on the airport.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.14 Audit

Funds provided under ASDP are subject to audit by the State Department of Audit.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.15 Waiver

These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State law.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.16 Additional Information

Program inquiries and applications should be directed to:

Mississippi Air Service Development Grant Program Mississippi Development Authority Post Office Box 849 Jackson, Mississippi 39205 Telephone: (601) 359-3552

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

6 Miss. Admin. Code Pt. 1, R. 19.17 Application Requirement

Three (3) copies of the application must be submitted to MDA. MDA will evaluate the application to determine if the project meets the program criteria.

History

• Source: Miss. Code Ann. §57-1-471 (Rev. 2014).

Chapter 20 Mississippi Air Service Growth Program (MASGP)

6 Miss. Admin. Code Pt. 1, R. 20.1 General Authorization and Purpose

In the 2016 legislative session, the Mississippi State Legislature passed HB 1074 creating the “Economic Development and Infrastructure Fund” in order to support infrastructure and transportation needs in counties in which legal gaming is conducted or authorized. Specifically, the law directs the Mississippi Development Authority (MDA) to provide grants: A. To assist with construction and repair of infrastructure in counties where legal

gaming is being conducted or is authorized and for structures designed to promote the gaming and entertainment industry in such counties, and B. To aid in increasing commercial air service at existing commercial service airports in counties in this state in which legal gaming is being conducted or is authorized by offering to assist Part 121 carriers through the following air service development methods: revenue guaranty, seat guaranty, seat cost mitigation, ground handling and marketing.

House Bill 1074, 2016 Regular Session

6 Miss. Admin. Code Pt. 1, R. 20.2 Legislative Funding Allocation

The Legislature directed MDA to allocate not less than $2,500,000 annually of funds deposited into the “Economic Development and Infrastructure Fund” for increasing air service in eligible counties. HB 1074 defines eligible air service expansion activities as: A. Revenue Guaranty B. Seat Guaranty C. Seat Cost Mitigation D. Ground handling cost mitigation E. Marketing

House Bill 1074, 2016 Regular Session

6 Miss. Admin. Code Pt. 1, R. 20.3 Mississippi Air Service Growth Program Purpose

The Mississippi Air Service Growth Program (MASGP), administered by the Mississippi Development Authority (MDA), is designed for making grants to Commercial Airlines to aid in increasing commercial air service at existing commercial service airports in counties in the state in which legal gaming is being conducted or is authorized. Funding for this program is derived from appropriations or funds otherwise made available by the State Legislature.

House Bill 1074, 2016 Regular Session

6 Miss. Admin. Code Pt. 1, R. 20.4 Eligible Applicants

Any Certified Part 121 Air Carrier that provides additional or new air service to and/or from a commercial service airport in counties in Mississippi in which legal gaming is being conducted or is authorized that have FAR Part 121 air service at the time of the enactment of the program.

House Bill 1074, 2016 Regular Session

6 Miss. Admin. Code Pt. 1, R. 20.5 Definitions

A. “Additional Service” is defined as an increase in the number of flights over the highest monthly frequency on passenger service between the commercial service airport and an existing market over the previous twelve (12) months of service, including seasonal service. B. “Airport” refers to existing commercial service airports in counties in the state in which legal gaming is being conducted or is authorized. C. “Approved Carrier” is an Applicant that has received a grant agreement from MDA.

D. “Applicant” shall mean a Commercial Airline providing Additional Service or New Service that may have entered into agreements with Mississippi Entities and is applying to MDA under this grant program. E. “Commercial Airline” is a Part 121 Air Carrier. F. “Expenses Actual” or “Actual Expenses” is defined as the total expense the Applicant incurs in operating the Additional Service and/or New Service at the Airport. G. “Expenses Projected” or “Projected Expenses” is defined as the total expense the Applicant reasonably expects to incur in operating the proposed Additional Service and/or New Service at the Airport. H. “Grant Period” refers to a period of up to twenty-four (24) months covered under the grant agreement in which MDA is liable for a guaranty or reimbursement of eligible expenses. The Grant Period will begin on a date agreed to in the grant agreement. Based upon the specifics of the grant agreement, the Applicant may provide seasonal service for several months during this period. I. “Mississippi Entities” or “Mississippi Entity” for the purpose of this program shall refer to one or more gaming entities, community organizations, or other entities that will contract with a Part 121 air carrier to guarantee or otherwise entice the Applicant to an Airport. J. “Minimum Gross Operating Revenue” is the minimum revenue the Applicant reasonably expects to earn to cover its Expenses Projected related to the operation of the proposed Additional Service and/or New Service at the Airport. K. “New Service” is defined as a new destination served by a Commercial Airline for passenger service from the Airport, including seasonal service. The service could not have been in place at the Airport by the same Applicant for a minimum of two years prior to application date. L. “Return on Investment” is defined as the projected financial impact on a community in additional tax revenue, direct and indirect jobs, and additional community impacts if New Service or Additional Service is brought to the Airport. M. “Revenue Actual” or “Actual Revenue” is defined as the total revenue the Applicant realizes from all sources, including any discounts, credits, waivers of fees or the like in operating the proposed Additional Service and/or New Service at the Airport. N. “Revenue Projected” or “Projected Revenue” is defined as the total revenue the Applicant reasonably expects to realize from all sources, including any discounts, credits, waivers of fees or the like in operating the proposed Additional Service and/or New Service at the Airport.

House Bill 1074, Regular Session 2016 Rule 20.6 Grant Programs. MDA may award grants to qualified Applicants for several activities allowed for by HB 1074. MDA has categorized the eligible activities into two categories. A. MASGP Category 1 Grants. Category 1 grants are of such a nature that an Applicant can only participate in one of these programs at a time. The Applicant must select the Category 1 grant that best serves their needs and apply for only one during a twenty- four (24) month grant period. Applicant can combine the Category 1 grant with either or both of the Category 2 grants, as necessary. (i) Revenue Guaranty (i) Seat Guaranty

(ii) Seat Cost Mitigation B. MASGP Category 2 Grants. Applicant may receive grants under both Category 2 grant options concurrently. Any Category 1 grant may be paired with either or both Category 2 grants, as necessary. (i) Ground handling cost mitigation (ii) Marketing

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.7 Grant Agreement

MDA and the Applicant will enter into a grant agreement prior to the beginning of the Additional Service or New Service beginning. The Grant Period will be for a term of up to twenty-four (24) months beginning on a date agreed to in the grant agreement. MDA, in its sole discretion, may agree to one optional twelve (12) month extension to the grant agreement after the initial Grant Period. Based upon the specifics of the grant agreement, the Applicant may provide seasonal service for several months during the Grant Period.

House Bill 1074, Regular Session 2016 Rule 20.8 Separate Grant Agreements for Each Eligible Activity. Applicants will be required to enter into a separate grant agreement for each eligible activity they wish to participate in. Applicant may participate in multiple grant activities at the same time, subject to categorical restrictions discussed above and availability of funds. Applicants will be required to adhere to all applicable state and federal law, as well as any existing programmatic guidelines or forthcoming guidelines published by MDA in accordance with proper administrative procedures.

House Bill 1074, Regular Session 2016 Rule 20.9 Amount of Grant Award. The amount of each grant awarded will be based on the Applicant’s ability to participate in the project, the degree of need for the air service as determined by the community, the economic impact of the New Service and/or Additional Service on the community, and the availability of funds.

House Bill 1074, Regular Session 2016 Rule 20.10 Failure to Comply with Grant Terms. Failure to comply with grant agreement terms may result in denial of a request for payment under the grant program and/or a request for repayment of grant funds.

House Bill 1074, Regular Session 2016 Rule 20.11 Purpose of the Program. The purpose of the program is to increase air service capacity, frequency, and options for commercial air service passengers and have a long term impact on the local economy. Therefore, the Applicant must commit to making every effort to meet flight and/or passenger load commitments in order to meet revenue projections.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.12 Maintenance of New or Additional Service

In addition, the Applicant agrees to maintain the New Service and/or Additional Service throughout the term of the Grant Period at the levels agreed to under the terms of the agreement. If the Applicant discontinues the service or makes substantial changes to the flight schedule, aircraft, or other material details in the grant agreement, MDA reserves the right to deny a request for payment and/or terminate the grant agreement.

House Bill 1074, Regular Session 2016 Rule 20.13 Audit. Funds provided under the program may be subject to audit by the State Department of Audit, MDA, or other applicable state entity.

House Bill 1074, Regular Session 2016 Rule 20.14 Amendment of Rules. These guidelines may be amended by MDA at any time, subject to the Administrative Procedures Act. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State law.

House Bill 1074, Regular Session 2016 Rule 20.15 Revenue Guaranty Program. MDA may provide a Revenue Guaranty to the Applicant to ensure a Minimum Gross Operating Revenue, subject to the terms of this program as outlined herein and as may otherwise be stated in the grant agreement (hereinafter “Revenue Guaranty”). A Revenue Guaranty is a Category 1 grant and therefore cannot be paired with a Seat Guaranty or a Cost Mitigation grant.

House Bill 1074, Regular Session 2016 Rule 20.16 Minimum Gross Operating Revenue. MDA and the Applicant will negotiate a mutually agreed upon Minimum Gross Operating Revenue target based on documented and supported market projections.

House Bill 1074, Regular Session 2016 Rule 20.17 Revenue Guarantees. Revenue Guarantees supported through this program will be subject to a dollar cap negotiated within the grant agreement. MDA will consider the type of service, duration and frequency of service, Return on Investment, and other factors when determining the dollar cap.

House Bill 1074, Regular Session 2016 Rule 20.18 Application Process for Revenue Guaranty Program. The Applicant must provide all documentation requested by MDA pertaining to the New Service and/or Additional Service. This information will include, but is not limited to: A. Name of the Part 121 Air Carrier

B. Name and location of the commercial service airport C. Additional or new destination to be serviced by the Applicant as a result of the grant. D. Projected start date of New Service and/or Additional Service E. Frequency of flights being proposed F. Increase over current flight frequency G. Projected passenger load for New Service and/or Additional Service H. Increase over existing passenger counts I. Justification of the market demand for New Service and/or Additional Service J. Letter of support from the Mississippi airport or community with Return on Investment for the community K. Applicant financials as reported to the US Department of Transportation L. Projected gross revenues based on the number of flights and/or passengers as well as additional revenues Applicant reasonably expects to achieve through operating the service. M. Aircraft type to provide the New Service and/or Additional Service, with seating capacity N. Minimum Gross Operating Revenue Guaranty requested with justification O. Copies of agreement(s) between the Applicant and Mississippi Entities for guaranteed service, marketing and other incentives House Bill 1074, Regular Session 2016 Rule 20.19 Additional Considerations for Grant Evaluation under the Revenue Guaranty Program. MDA may take into account the Applicant’s history of reliability in providing scheduled air service when evaluating the grant application.

House Bill 1074, Regular Session 2016 Rule 20.20 Reporting Requirements for Revenue Guaranty Program. The Applicant shall submit a quarterly report to MDA during the term of the grant agreement that will provide monthly information on the status of the Additional Service and/or New Service. This report will include the following: A. Projected v. Actual additional flights B. Projected v. Actual additional passengers C. Projected Revenues v. Actual Revenues D. A statement describing the reason(s) for any shortfall in revenues, as well as supporting documentation. E. A statement explaining how the Approved Carrier is addressing the reason(s) for any shortfall in Projected Revenue. House Bill 1074, Regular Session 2016 Rule 20.21 Reporting Time Limitations for Revenue Guaranty Program. Reports shall be submitted no later than thirty (30) days following the end of the quarter and in a manner prescribed by MDA.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.22 Payment Requirements under Revenue Guaranty Program

The Approved Carrier shall provide MDA with adequate documentation to quantify the Actual Revenue of the New Service and/or Additional Service covered by the agreement. MDA reserves the right to request additional documentation in order to confirm that information. MDA and the Applicant shall jointly agree on Actual Revenue and the actual amount of shortfall, if applicable, prior to any payment being made. In the event that Projected Revenues were not met during that period, MDA will make a payment to the Applicant in the amount of the difference between the Projected Revenue and Actual Revenue.

House Bill 1074, Regular Session 2016 Rule 20.23 Method to Apply for Payment under the Revenue Guaranty Program. An Approved Carrier may apply to MDA for a payment under the grant program at the end of each twelve (12) month period (not to exceed two requests in any twenty-four (24) month period), if the Approved Carrier did not achieve its Minimum Gross Operating Revenue during the previous twelve (12) month period. For those Approved Carriers only providing seasonal service, MDA may negotiate a more frequent payment plan but shall not make a payment more than twice in a twelve (12) month period. Applicant has a maximum of six (6) months from the end of the Grant Period to make a final Request for Payment.

House Bill 1074, Regular Session 2016 Rule 20.24 Use of Required Form for Payment Requests under Revenue Guaranty Program. An Approved Carrier shall request payment on the guaranty in a form required by MDA.

House Bill 1074, Regular Session 2016 Rule 20.25 MDA’s Obligation to Honor Guaranty. MDA is only obligated to honor the guaranty on actual flights flown.

House Bill 1074, Regular Session 2016 Rule 20.26 Maximum Amount of Time MDA is Allowed to Make Payments. State law permits MDA a maximum of forty-five (45) days to make a payment to the Applicant once all documentation and a proper Request for Payment has been received.

House Bill 1074, Regular Session 2016; Miss. Code Ann. §31-7-305(2) (Rev. 2010).

6 Miss. Admin. Code Pt. 1, R. 20.27 Seat Guaranty

The Applicant may seek from MDA a guaranty of the number of seats constituting the difference between the air service provider’s required seat block commitment and what the Mississippi Entities can commit to purchase or guarantee (hereinafter “Seat Guaranty”). A Seat Guaranty is a Category 1 grant and therefore cannot be paired with a Revenue Guaranty or a Cost Mitigation grant.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.28 Guaranty Contingent upon Certain Applicant Agreements

MDA’s guaranty will be contingent upon the Applicant and at least one Mississippi entity entering into an agreement whereby the Mississippi entity has guaranteed a seat block. MDA’s seat guaranty will be in addition to any block of seats guaranteed by Mississippi Entities in order to reach the total number of guaranteed seats required by the Applicant. A. The MDA guaranty will be capped at ten percent (10%) of the available seats on the aircraft identified by the Applicant in its grant application used for the New Service or Additional Service. B. Seat Guarantees supported through this program will be subject to a dollar cap negotiated within the grant agreement. MDA will consider the type of service, size of aircraft, duration and frequency of service, Return on Investment, and other factors when determining the dollar cap. C. In the event that the Applicant cannot fill the required seats with the passenger loads from its New Service or Additional Service, MDA will make a payment on its portion of the seat guaranty subject to the guidelines below.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.29 Application for Seat Guaranty Program

The Applicant must provide all documentation requested by MDA pertaining to the New Service and/or Additional Service. This information will include, but is not limited to: A. Name of the Part 121 Air Carrier B. Name and location of the commercial service airport C. Additional or new destination to be serviced by the Applicant as a result of the grant D. Projected start date of New Service and/or Additional Service E. Frequency of flights being proposed F. Increase over current flight frequency G. Projected passenger load requirement for New Service and/or Additional Service H. Increase over existing passenger counts I. Justification of the market demand for New Service and/or Additional Service J. Letter of support from the Mississippi airport or community with Return on Investment for the community K. Applicant financials as reported to the US Department of Transportation L. Aircraft to service the New Service and/or Additional Service, with seating capacity M. Copies of agreement(s) between the Applicant and Mississippi Entities for guaranteed service, marketing and other incentives N. Number / Percent of seats guaranteed by all Mississippi Entities O. Requested number of seats to be guaranteed by MDA, with associated costs House Bill 1074, Regular Session 2016 Rule 20.30 Additional Considerations for Grant Evaluation under the Seat Guaranty Program. MDA may take into account the Applicant’s history of reliability in providing scheduled air service when evaluating the grant application.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.31 Reporting Requirements for Seat Guaranty Program

The Applicant shall submit a quarterly report to MDA during the term of the grant agreement that will provide monthly information on the status of the New Service and/or Additional Service. This report will include the following: A. Projected v. Actual additional flights B. Projected v. Actual additional passengers C. Projected v. Actual passenger loads House Bill 1074, Regular Session 2016 Rule 20.32 Reporting Time Limitations for Seat Guaranty Program. Reports shall be submitted no later than thirty (30) days following the end of the quarter and in a manner prescribed by MDA.

House Bill 1074, Regular Session 2016 Rule 20.33 Payment Requirements under Seat Guaranty Program. The Applicant shall provide MDA with adequate documentation to quantify the passenger loads of the New Service and/or Additional Service covered by the agreement. MDA reserves the right to request additional documentation in order to confirm that information. MDA and the Applicant shall jointly agree on actual passenger loads and the actual amount of shortfall, if applicable, prior to any payment being made. In the event that seat projections were not met during that period, MDA will make a payment to the Applicant in the amount of the costs of the seats guaranteed.

House Bill 1074, Regular Session 2016 Rule 20.34 Method to Apply for Payment under the Seat Guaranty Program. An Approved Carrier may apply to MDA for a payment under the Seat Guaranty program at the end of each twelve (12) month period (not to exceed two requests in any twenty-four (24) month period), if the Approved Carrier did not fill the required number of seats negotiated in the grant agreement during the previous twelve (12) month period. For those Approved Carriers only providing seasonal service, MDA may negotiate a more frequent payment plan but shall not make a payment more than twice in a twelve (12) month period. Applicant has a maximum of six (6) months from the end of the Grant Period to make a final Request for Payment.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.35 Use of Required Form for Payment Requests under Seat Guaranty Program

An Approved Carrier shall request payment on the guaranty in a form required by MDA.

House Bill 1074, Regular Session

6 Miss. Admin. Code Pt. 1, R. 20.36 MDA’s Obligation to Honor Guaranty under Seat Guaranty Program

MDA is only obligated to honor the guaranty on actual flights flown.

House Bill 1074, Regular Session

6 Miss. Admin. Code Pt. 1, R. 20.37 Maximum Amount of Time MDA is Allowed to Make Payments under Seat Guaranty Program

State law permits MDA a maximum of forty-five (45) days to make a payment to the Applicant once all documentation and a proper Request for Payment has been received.

House Bill 1074, Regular Session; Miss. Code Ann. §31-7-305(2) (Rev. 2010)

6 Miss. Admin. Code Pt. 1, R. 20.38 Seat Cost Mitigation

MDA may assist Applicants in meeting the required per-seat fare minimums for New Service and/or Additional Service. In the event that a Mississippi Entity negotiates an agreement with an Applicant to bring Additional Service or New Service to the state but the Mississippi Entity cannot meet the necessary minimum fares required by the Applicant, MDA may enter into a grant agreement with the Applicant to cover the difference between what the Mississippi Entity can commit to pay and what the Applicant requires (hereinafter “Seat Cost Mitigation”). Seat Cost Mitigation is a Category 1 grant and therefore cannot be paired with a Revenue Guaranty or Seat Guaranty.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.39 Limitations on Amount of Seat Cost Mitigation

MDA will not agree to cover more than twenty-five percent (25%) of the per-seat fare cost. Seat Cost Mitigation grants will be subject to a dollar cap negotiated within the grant agreement. MDA will consider the type of service, size of aircraft, duration and frequency of service, Return on Investment, and other factors when determining the dollar cap.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.40 Application Process for Seat Cost Mitigation

The Applicant must provide all documentation requested by MDA pertaining to the New Service and/or Additional Service. This information will include, but is not limited to: A. Name of the Part 121 Air Carrier B. Name and location of the commercial service airport C. Additional or new destination to be serviced by the Applicant as a result of the grant D. Projected start date of New Service and/or Additional Service E. Frequency of flights being proposed F. Increase over current flight frequency G. Projected passenger load for New Service and/or Additional Service H. Increase over existing passenger counts I. Justification of the market demand for New Service and/or Additional Service J. Letter of support from the Mississippi airport or community with Return on Investment for the community K. Applicant financials as reported to the US Department of Transportation L. Aircraft type to provide the New Service and/or Additional Service, with seating capacity M. Number / Percent of seats guaranteed by all entities N. Total seat cost mitigation budget request, with justification O. Copies of agreement(s) between the Applicant and Mississippi Entities for guaranteed service, marketing and other incentives

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.41 Additional Considerations for Grant Evaluation of Seat Cost Mitigation

MDA may take into account the Applicant’s history of reliability in providing scheduled air service when evaluating the grant application.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.42 Reporting Requirements for Seat Cost Mitigation

The Applicant shall submit a quarterly report to MDA during the term of the grant agreement that will provide monthly information on the status of the New Service and/or Additional Service. This report will include the following: A. Projected v. Actual additional flights B. Projected v. Actual additional passengers C. Projected v. Actual seat costs

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.43 Time Limitations on Submission of Reports for Seat Cost Mitigation

Reports shall be submitted no later than thirty (30) days following the end of the quarter and in a manner prescribed by MDA.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.44 Method to Submit Request for Reimbursement under Seat Cost Mitigation

The Applicant shall submit a Request for Payment to MDA requesting a reimbursement for the portion of the seat fare that MDA has committed to pay in accordance with the terms of the grant agreement. The Request for Payment must be accompanied by adequate documentation. MDA reserves the right to request additional documentation if necessary. MDA and the Applicant shall jointly agree on the actual amount of seat cost mitigation needs, if applicable, prior to any payment being made.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.45 Method to Apply for Payment under the Seat Cost Mitigation

An Approved Carrier may apply to MDA for a payment under the Seat Cost Mitigation program at the end of each twelve (12) month period (not to exceed two requests in any twenty-four (24) month period), if the Approved Carrier did not receive the seat fares negotiated in the grant agreement during the previous twelve (12) month period. For those Approved Carriers only providing seasonal service, MDA may negotiate a more frequent payment plan but shall not make a payment more than twice in a twelve (12) month period. Applicant has a maximum of six (6) months from the end of the Grant Period to make a final Request for Payment.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.46 Use of Required Form for Payment Requests under Seat Cost Mitigation

An Approved Carrier shall request payment on the guaranty in a form required by MDA.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.47 MDA’s Obligation to Honor Guaranty under Seat Cost Mitigation

MDA is only obligated to make payments on actual flights flown.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.48 MDA’s Obligation to Honor Guaranty Payments under Seat Cost Mitigation

State law permits MDA a maximum of forty-five (45) days to make a payment to the Applicant once all documentation and a proper Request for Payment has been received.

House Bill 1074, Regular Session 2016; Miss. Code Ann. §31-7-305(2) (Rev. 2010)

6 Miss. Admin. Code Pt. 1, R. 20.49 Ground Handling Fees

Eligible Applicants may apply to MDA to defray the costs associated with utilizing an Airport in a county in which legal gaming is conducted or authorized. Approved Carriers may utilize third party ground handling firms and be reimbursed for those contractual costs with appropriate documentation. Ground handling fees include but are not limited to: A. Ground Handling Services Above Wing: (i) Customer Service Personnel (ii) Passenger check in and ticketing (iii) Passenger boarding (iv) Skycaps and other special services (v) Baggage services (vi) Lost and found services (vii) Turn Clean / RON Clean (viii) Provision of ice (ix) Dispose of refuse (x) Provide Ground Security Coordinator and LCRO A. Ground Handling Services Below Wing: (i) Aircraft pushback and towing (ii) Aircraft marshalling (iii) Aircraft loading and unloading (iv) Aircraft De-icing (v) Lavatory servicing (vi) Provision of potable water B. Turn Price – allowable reimbursement expenses: (i) Two customer service agents (ii) Three ramp agents (iii) One supervisor / Ground Service Security Coordinator and LCRO (iv) Above and Below Wing services with use of ACAS ground equipment (v) Air to ground communications

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.50 Grant Fund Cap for Ground Handling Fees

Grant funds are capped at not more than fifty percent (50%) of the total ground handling fees incurred by the Approved Carrier for the New Service and/or Additional Service during the twenty-four (24) month period, or $350,000, whichever is less. House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.51 Application Process for Ground Handling Fees

The Applicant must provide all documentation requested by MDA pertaining to the New Service and/or Additional Service. This information will include, but is not limited to: A. Name of the Part 121 Air Carrier B. Name and location of the commercial service airport C. Additional or new destination to be serviced by the Applicant as a result of the grant D. Projected start date of New Service and/or Additional Service E. Frequency of flights being proposed F. Increase over current flight frequency G. Projected passenger load for New Service and/or Additional Service H. Increase over existing passenger counts I. Justification of the market demand for New Service and/or Additional Service J. Letter of support from the Mississippi airport or community with Return on Investment for the community K. Applicant financials as reported to the US Department of Transportation L. Aircraft type to service provide the New Service and/or Additional Service, with seating capacity M. Total ground handling costs budget based on the New Service and/or Additional Service, with documentation N. Requested grant funds budget to offset ground handling fees O. Copy of agreement(s) agreements between the Applicant and Mississippi entity for guaranteed service House Bill 1074, Regular Session 2016 Rule 20.52 Reporting Requirements for Ground Handling Fees. The Applicant shall submit a quarterly report to MDA during the term of the grant agreement that will provide monthly information on the status of the New Service and/or Additional Service. This report will include the following: A. Projected v. Actual additional flights B. Projected v. Actual additional passengers C. Projected v. Actual ground handling fees House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.53 Reporting Requirements for Ground Handling Fees

Reports shall be submitted no later than thirty (30) days following the end of the quarter and in a manner prescribed by MDA.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.54 Requirements for Payment Reimbursement Requests for Ground Handling Fees

The Request for Payment for reimbursement of ground handling fees must be accompanied by documentation of actual invoices, bills, labor hours, payroll, or other documentation that details the costs incurred in the eligible categories. In addition, documentation showing that the Approved Carrier has paid those fees should accompany the request.

6 Miss. Admin. Code Pt. 1, R. 20.55 Method to Apply for Payment for Ground Handling

An Approved Carrier may apply to MDA for a payment under the program at the end of each twelve (12) month period (not to exceed two requests in any twenty-four (24) month period). For those Approved Carriers only providing seasonal service, MDA may negotiate a more frequent payment plan but shall not make a payment more than twice in a twelve (12) month period. Applicant has a maximum of six (6) months from the end of the Grant Period to make a final Request for Payment.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.56 Use of Required Form for Payment Requests for Ground Handling Fees

An Approved Carrier shall request payment on the guaranty in a form required by MDA.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.57 MDA’s Obligation to Honor Guaranty for Ground Handling Fees

MDA is only obligated to make payments on actual flights flown.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.58 MDA’s Obligation to Honor Payments for Ground Handling Fees

State law permit MDA a maximum of forty-five (45) days to make a payment to the Applicant once all documentation and a proper Request for Payment has been received.

House Bill 1074, Regular Session 2016; Miss. Code Ann. §31-7-305(2) (Rev. 2010)

6 Miss. Admin. Code Pt. 1, R. 20.59 Marketing

This program allows for cost matching to the Approved Carrier of marketing and related direct promotional expenses that promote the New Service and/or Additional Service to local and other audiences. Marketing and promotional expenses include ad placement costs for television, digital, radio, print, outdoor, direct mail, or other approved media. Printing costs are allowable. Ad development fees and commissions are not eligible.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.60 MDA Matching Funds

MDA will match on a 1 to 1 basis, up to $200,000 during the twenty-four (24) month period, the funds contributed by the Approved Carrier and/or Mississippi Entities toward the promotion of the New Service and/or Additional Service covered under the grant agreement. MDA will only make a payment to the Approved Carrier or the advertising agency directly contracted by the Approved Carrier. MDA will match on a 1 to 1 basis the total contribution of all parties toward the Approved Carrier or its advertising agency based on adequate

documentation, as approved by MDA. For example, if the Approved Carrier contributes $75,000 and other Mississippi Entities contribute $75,000 toward marketing the New Service and/or Additional Service through the Approved Carrier’s advertising agency, then MDA may match $150,000 to increase the advertising agency’s campaign to $300,000 total.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.61 Marketing and Advertising Promotion Targets

Marketing and advertising must specifically promote the New Service and/or Additional Service covered under the grant agreement and should fairly represent all of the amenities that the Mississippi community has to offer. Preferably, other Mississippi Entities are marketing the service as well. Generic airline marketing costs will not be considered for matching.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.62 Requirements for All Ads

All ads supported through this program must contain Mississippi attribution. For television, print, outdoors, and digital ads, the Visit Mississippi logo and website www.visitmississippi.org must be included. For radio and television, the following phrase must be included: “This advertisement is partially funded by the State of Mississippi. Visit www.visitmississippi.org for more information.”

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.63 Application Process for Marketing

The Applicant must provide all documentation requested by MDA pertaining to the New Service and/or Additional Service. This information will include, but is not limited to: A. Name of the Part 121 Air Carrier B. Name and location of the commercial service airport C. Additional or new destination to be serviced by the Applicant as a result of the grant D. Projected start date of New Service and/or Additional Service E. Frequency of flights being proposed F. Increase over current flight frequency G. Projected passenger load for New Service and/or Additional Service H. Increase over existing passenger counts I. Justification of the market demand for New Service and/or Additional Service J. Letter of support from the Mississippi airport or community with Return on Investment for the community K. Applicant financials as reported to the US Department of Transportation L. Aircraft type to service provide the New Service and/or Additional Service, with seating capacity M. Total advertising and marketing costs based on the New Service and/or Additional Service, with documentation N. Requested grant funds to offset advertising and marketing fees O. Other funding or in-kind support from the Mississippi Entities, including the Airport, local tourism promotion agency, or other entity P. Media plan which includes the following:

(i) Means of distribution (print, radio, outdoor, digital, etc.) (ii) Description of the ad buy (impacted markets, dates the ads will run, etc.) (iii)Advertising copy (iv) Size of the ad buy

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.64 Monthly Reporting Requirements for Marketing

The Approved Carrier shall submit a quarterly report to MDA during the term of the grant agreement that will provide monthly information on the status of the New Service and/or Additional Service. This report will include the following: A. Projected v. Actual additional flights B. Projected v. Actual additional passengers C. Marketing placement report by Approved Carrier House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.65 Time Limitations on Submission of Reports for Marketing

Reports shall be submitted no later than thirty (30) days following the end of the quarter and in a manner prescribed by MDA.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.66 Required Analytic Reports for Marketing

In addition, Approved Carriers must provide an analytic report on the reach and impact of the advertising and marketing campaign at the end of the Grant Period. The methodology behind the analytics must be included in this report.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.67 Method to Submit Request for Reimbursement for Marketing

The Approved Carrier may submit a Request for Payment form for matching of advertising and marketing fees as required by MDA. The Request for Payment must be accompanied by documentation of actual invoices, bills, or other documentation that details the costs incurred in the eligible categories. In addition, documentation showing that the Approved Carrier has incurred or paid those fees should accompany the request.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.68 45 Method to Apply for Payment for Marketing

An Approved Carrier may apply to MDA for a payment under the Marketing program at the end of each twelve (12) month period (not to exceed two requests in any twenty-four (24) month period). For those Approved Carriers only providing seasonal service, MDA may negotiate a more frequent payment plan but shall not make a payment more than twice in a twelve (12) month period. Applicant has a maximum of six (6) months from the end of the Grant Period to make a final Request for Payment.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.69 MDA’s Obligation to Honor Payments for Marketing

State law permit MDA a maximum of forty-five (45) days to make a payment to the Applicant once all documentation and a proper Request for Payment form has been received.

House Bill 1074, Regular Session 2016; Miss. Code Ann. §31-7-305(2) (Rev. 2010)

6 Miss. Admin. Code Pt. 1, R. 20.70 Grant Selection Process for Mississippi Air Service Growth Program

The only funds available for the Mississippi Air Service Grant Program are those specifically appropriated into the program by the Legislature. As such, there may be limited funds available. MDA reserves the right to use a competitive selection process when making decisions on allocation of funds.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.71 Evaluation of Application for Mississippi Air Service Growth Program

MDA will evaluate each application based on the completeness of the application and required documentation. MDA reserves the right to reject an application that does not meet the statutory requirements, guidelines, or program goals, or fails to adequately address all requested information in the application process.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.72 Priority Given to Certain Eligible Applicants

Priority will be given to those eligible Applicants that can demonstrate the following: A. Commitment to long term service at the eligible Airport B. Positive Return on Investment by generating additional tourism visitors, a growth in local tax and gaming revenue, increasing in productivity for local business travelers, promotion of Mississippi as a destination, or other factors C. The degree of need for the air service D. A sound business plan and a history of meeting customer needs House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.73 Requirement to Submit Certain Number of Copies of Application

Two (2) copies of the application must be submitted to the Financial Resources Division of MDA, Air Service Grant Program, Post Office Box 849, Jackson, Mississippi, 39205, or hand-delivered to the 15 th Floor of the Woolfolk Office Building, Jackson, Mississippi.

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.74 Staff Review of Applications

MDA staff will review the application and supporting material and will make a decision. MDA reserves the right to modify the requested amount

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.75 Additional Information

Program inquires and applications should be directed to: A. Mississippi Development Authority Financial Resources Division

Post Office Box 849 Telephone: (601) 359-2415 ~ Fax: (601) 359-3619Jackson, Mississippi 39205

House Bill 1074, Regular Session 2016

6 Miss. Admin. Code Pt. 1, R. 20.76 Amendment and/or Waiver of Guidelines

These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such action is to promote the public purpose of the enacting legislation and is not prohibited by state law.

House Bill 1074, Regular Session 2016

Chapter 21 Mississippi Ports Improvements Fund Grant Program Rule 21.1 Purpose. The Mississippi Ports Improvements Grant Program ("PORTS Program"), administered by the Mississippi Development MDA ("MDA") is designed to assist in paying a portion of the costs associated with the repair, rehabilitation, construction, reconstruction, upgrading and improvement of existing port facilities, including projects necessary to ensure safety and structural integrity of such facilities, at state, county, or municipal port authorities ("Entity") in the state of Mississippi (the "State"). The PORTS Program was enacted by the State Legislature during the 2019 Regular Legislative Session.

6 Miss. Admin. Code Pt. 1, R. 21.2 Eligible Entities

Entities considered to be eligible applicants are state, county, and municipal ports authorized to operate in the State. In order to obtain assistance under the Ports Grant Program, an Entity’s governing board (the "Governing Board") must submit an application to MDA, which will forward copies of such application to members of the Ports Improvements Fund Advisory Committee for review. Within thirty (30) days of receipt of the application, the Ports Improvements Fund Advisory Committee will make a written recommendation to MDA specifically outlining their assessment of the application.

History

• Source: Miss. Code Ann. § 57-1-731.

6 Miss. Admin. Code Pt. 1, R. 21.3 Eligible Projects

Projects which are eligible for assistance must be directly related to the port facility and are limited to repair, rehabilitation, construction, reconstruction, upgrading and improvement of existing facilities.

A. PORTS Program grant funds may not be used for working capital, for general expenditures, which would normally be covered under an applicant’s general operation budget, nor to provide facilities for utilization by a gambling vessel. B. A limited amount of funds may be used for engineering/architectural cost. The amount of these professional services will be limited to an amount not to exceed 10% of the PORTS grant award amount. C. All funds awarded must be spent for improvements within the scope of the original project description as stated in the grant application.

D. Additionally, if grant recipients complete their project for less than the grant amount awarded, the excess funds can be requested for additional project work as long as there is no change from the scope of the original project. E. In no case, however, will an approved applicant be allowed to use excess grant funds to pay for project costs that vary from the original project description. F. All requested changes and variances from the original application should be made in writing and will be reviewed by MDA on a case-by-case basis.

History

• Source: Miss. Code Ann. § 57-1-731.

6 Miss. Admin. Code Pt. 1, R. 21.4 Application Requirements

To apply for the PORTS Program, a completed application that is submitted by an Entity must include:

A. Purpose of the proposed grant including a list of eligible items and the cost of each; B. The estimated cost of the total project, a description of the Applicant's investment in the project, and all public or private sources of funding that have been secured and that will be utilized exclusively for the project; C. Time schedule for implementation and completion of the project, evidencing an expeditious completion of the project; D. Engineering documentation (Must be on the engineer’s letterhead, with the engineer’s stamp/seal and signature); E. Current employment levels at the project site and estimated increase, if any, as a result of financing the project; F. One (1) copy of the application must be submitted to the Financial Resources Division of MDA, Ports Grant Program, Post Office Box 849, Jackson, Mississippi 39205 or hand- delivered to the 15th floor of the Woolfolk Office Building, 501 N West St, Jackson, MS 39201.

History

• Source: Miss. Code Ann. § 57-1-731.

6 Miss. Admin. Code Pt. 1, R. 21.5 Ports Improvements Fund Advisory Committee

The Ports Improvements Fund Advisory Committee shall have a membership consisting of:

A. Six (6) directors of ports, appointed by the President of the Mississippi Ports Council, or his or her designee, as follows: 1. Two (2) directors of coastal ports 2. Two (2) directors of inland river ports located on the Mississippi River 3. Two (2) directors of inland ports located on the Tennessee-Tombigbee Waterway; and B. The Executive Director of MDA, or his or her designee.

History

• Source: Miss. Code Ann. § 57-1-731.

6 Miss. Admin. Code Pt. 1, R. 21.6 General Grant Terms

A. The program intent is to stimulate growth and economic development through port infrastructure in the State. B. The amount of each grant awarded will be based on the applicant’s ability to participate in the project, the degree of need for the improvements, the lack of availability of other funding sources, the timeframe required to perform the improvements, the economic impact of the project on the community, and other criteria MDA develops. C. Each application will be evaluated on its own merit to meet the intent of the program. D. Each applicant must certify that they will perform standard maintenance for a minimum of three years after the project is completed. E. A minimum of 10% of the total project cost is required as match on all grant awards. F. Failure to comply with Grant terms may result in repayment of grant funds. G. The terms of a grant shall be within the discretion of the MDA.

History

• Source: Miss. Code Ann. § 57-1-731.

6 Miss. Admin. Code Pt. 1, R. 21.7 Conditions for Disbursement of Funds

A grant agreement will be executed between the Entity and MDA prior to disbursement of grant funds. Only project costs incurred after execution of the grant agreement will be eligible for reimbursement with grant funds.

History

• Source: Miss. Code Ann. § 57-1-731.

6 Miss. Admin. Code Pt. 1, R. 21.8 Reimbursement Process

A. MDA will release PORTS program funds on a reimbursement basis for approved eligible costs of the project as incurred. B. The Entity shall certify to MDA during construction that the expenses were incurred and were in accordance with the plans and application approved by MDA. C. Funds will be released upon receipt of the PORTS Program Form of Requisition and supporting documentation from the Entity. D. Funds may only be drawn down once a month E. Applicants have two (2) years from the date of the grant agreement to request reimbursement for project costs.

History

• Source: Miss. Code Ann. § 57-1-731.

6 Miss. Admin. Code Pt. 1, R. 21.9 Audit

Grants made under the PORTS Grant Program are subject to audit by MDA and the Office of the State Auditor.

History

• Source: Miss. Code Ann. § 57-1-731.

6 Miss. Admin. Code Pt. 1, R. 21.10 Waiver

These Rules and Regulations may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

History

• Source: Miss. Code Ann. § 57-1-731.

6 Miss. Admin. Code Pt. 1, R. 21.11 Compliance with Federal Immigration Laws and Mississippi Employment Protection Act

The Entity and/or Project contractors are required to ensure compliance with the Mississippi Employment Protection Act (“MEPA”), Miss. Code. Ann. § 71-11-3 et seq., and must ensure that the Entity and/or Project contractors register and participate in the status verification system for all newly hired employees. The term "employee” as used herein means any person that is hired to perform work within the State of Mississippi. As used herein, "status verification system" means the Illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program, or any other successor electronic verification system replacing the E- Verify Program. Entity and/or Project contractors must maintain records of such compliance and, upon request of the State of Mississippi and approval of the Social Security Administration or Department of Homeland Security, where required, to provide a copy of each such verification to the State. Any person assigned to perform services must meet the employment eligibility requirements of all federal and state immigration laws. Any breach may subject the Entity to the following: (a) termination of the Agreement and ineligibility for any state or public contract in Mississippi for up to three (3) years, with notice of such cancellation/termination being made public, or (b) the loss of any license, permit, certification or other document granted to the company by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year, or (c) both. In the event of such termination/cancellation, the Entity and/or Project contractor would also be liable for any additional costs incurred by the State due to contract cancellation or loss of license or permit.

Miss. Code Ann. § 57-1-731.

Program inquiries should be directed to:

Mississippi Development Authority Financial Resources Division Post Office Box 849 Jackson, Mississippi 39205 Telephone: (601) 359-3449

Adopted: May 24, 2022

History

• Source: Miss. Code Ann. § 71-11-3; Miss. Code Ann. § 57-1-371; Miss. Code Ann. § 57-1-373;

Chapter 22 Mississippi Industry Incentive Financing Revolving Fund Program

6 Miss. Admin. Code Pt. 1, R. 22.1 Program Objective

The Mississippi Industry Incentive Financing Revolving Fund ("Industry Incentive Program") is administered by the Mississippi Development Authority ("MDA") and is designed to make grants or loans to local governments including, but not limited to, counties, municipalities, industrial development authorities and economic development districts, and approved business enterprises to construct or otherwise provide facilities related to a specific Project. Local governments are authorized to accept grants and enter into loans authorized

under the program, and to sell, lease or otherwise dispose of a Project or any property related to the Project in whole or in part. The terms of a grant or loan and the manner of repayment of any loan shall be within the discretion of the MDA.

History

• Source: Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.2 Program Terms

(1) “Approved business enterprise” means any Project that:

(a) Locates or expands in this state, including any federal Indian reservation located within the geographical boundary of this state, and creates a minimum of two hundred fifty (250) new, full-time jobs with a total capital investment in the state of a minimum of Thirty Million Dollars ($30,000,000.00) in Tier 1 or Tier 2 Counties; (b) Locates or expands in this state, including any federal Indian reservation located within the geographical boundary of this state, and creates a minimum of one hundred fifty (150) new, full-time jobs with a total capital investment in the state of a minimum of Fifteen Million Dollars ($15,000,000.00) in areas federally designated as low-income census tracts; (c) Locates or expands in this state, including any federal Indian reservation located within the geographical boundary of this state, and creates a minimum of one thousand (1,000) new, full-time jobs; (d) Locates or expands in this state, including any federal Indian reservation located within the geographical boundary of this state, with significant regional impact solely determined by MDA.

(2) “Capital Investment” means the direct expenditure of money by the approved business for a new establishment or an addition to an existing establishment, including the purchasing or improving of real property and tangible personal property, whose useful life exceeds one year, and which is used in the conduct of the business. The valuation of an economic impact analysis does not qualify as a “Capital Investment.”

(3) “Facility related to the Project” means and includes any of the following, as they may pertain to the Project:

(a) Facilities to provide potable and industrial water supply systems, sewage and waste disposal systems and water, natural gas, and electric transmission systems to the site of the Project; (b) Building facilities and equipment necessary to operate the facility; (c) Rail lines; (d) Airports, airfields, air terminals and port facilities;

(e) Highways, streets and other roadways; (f) Fire protection facilities, equipment, and elevated water tanks.

(4) “Project” means any industrial, commercial, research and development, warehousing, distribution, transportation, processing, mining, United States government or tourism enterprise together with all real property required for construction, maintenance and operation of the enterprise that is approved by the MDA. The Project or business may also not be engaged in producing or distributing medical cannabis as defined in the Mississippi Medical Cannabis Act.

(5) “Tier 1 and Tier 2 counties” means areas designated in accordance with Miss. Code Ann. § 57-73-21. The state’s eighty-two counties are divided between three tiers with Tier 1 (twenty-seven) counties having a combination of the lowest unemployment and highest per capita income and Tier 2 (twenty-seven) counties having a combination of the next lowest unemployment and next highest per capita income.

History

• Source: Miss. Code Ann. § 57-1-221; Miss. Code Ann. § 57-73-21.

6 Miss. Admin. Code Pt. 1, R. 22.3 Eligibility Criteria

To be eligible, a business must qualify as an approved business enterprise to receive assistance under the Industry Incentive Program. An Approved Business Enterprise means any Project that:

(a) Locates or expands in this state, including any federal Indian reservation located within the geographical boundary of this state, and creates a minimum of 250 new, full-time jobs with a total capital investment in the state of a minimum of $30,000,000 in Tier 1 or Tier 2 counties; or (b) Locates or expands in this state, including any federal Indian reservation located within the geographical boundary of this state, and creates a minimum of 150 new, full-time jobs with a total capital investment of $15,000,000 in areas federally designated as low-income census tracts; or (c) Locates or expands in this state, including any federal Indian reservation located within the geographical boundary of this state, and creates a minimum of 1,000 new, full-time jobs; or (d) Locates or expands in this state, including any federal Indian reservation located within the geographical boundary of this state, with significant regional impact as determined by MDA.

The business must be financially sound, present evidence that the business can repay any debt, and must not have defaulted on any previous loan from the State or Federal Government.

History

• Source: Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.4 Eligible Projects

Eligible companies may utilize the Industry Incentive Program for the following Projects: (a) Facilities to provide portable and industrial water supply systems, sewage and waste disposal systems and water, natural gas, and electric transmission systems to the site of the Project; (b) Building facilities and equipment necessary to operate the facility; (c) Rail lines; (d) Airports, airfields, air terminals and port facilities; (e) Highways, streets and other roadways; (f) Fire protection facilities, equipment, and elevated water tanks.

Loan or grant proceeds may not be used for working capital, debt refinancing or rolling stock. Engineering, Architectural, Project Management and other soft costs shall not exceed 10% of the MDA grant or loan amount.

History

• Source: Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.5 Bidding Requirements

Contracts, by local governments, including, but not limited to, design and construction contracts, for the acquisition, purchase, construction or installation of a Project may be exempt from the bidding requirement provisions of Miss. Code Ann. § 31-7-13 and may entered into on the basis of negotiation if:

(a) MDA finds and records such finding on its minutes, that because of availability or the particular nature of a project, it would not be in the public interest or would less effectively achieve the purposes of this section to enter into such contracts on the basis of Section 31- 7-13; (b) The approved business enterprise that is involved in the project concurs in such finding.

History

• Source: Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.6 Loan Repayment

The timing of principal and interest payments will be determined by MDA through the application process, with a fixed amount to be paid over the life of the loan.

History

• Source: Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.7 Liens and Collateral

At the discretion of MDA, a loan may need to be secured by a lien of such type that provides adequate security for MDA to recover its investment in case of default on the loan. Liens may be in the form of personal guarantees, liens on the equipment installed or security interest in other assets. It should be noted MDA may require a one percent (1%) good faith deposit on all Projects.

Individuals or entities with twenty percent (20%) or more ownership in the business may be required to provide personal guaranties and life insurance.

History

• Source: Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.8 Application

One copy of the application are to be submitted by a business and must include:

(a) Documentation that the Entity is an Approved Business Enterprise; (b) Purpose of the proposed loan or grant including a list of eligible items and the estimated cost of each; (c) Documentation on how the financing of the Project will improve productivity and competitiveness; (d) Estimated cost of the total Project with a detailed breakdown of all public or private sources of funding; (e) Time schedule for implementation and completion of the Project, evidencing an expeditious completion of the Project; (f) Submit business balance sheets, income statements and statements of cash flow for the previous three (3) fiscal years and current statements dated within ninety (90) days of application or three (3) years of tax returns; (g) A two (2) year business plan for the Project; and (h) List of principal stockholders, partners, or parties who have ownership of twenty percent (20%) or more. A credit report may be required for each. (i) MDA may require additional information as needed.

History

• Source: Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.9 Loan Closing

Based upon the terms and conditions established by MDA, MDA will prepare all security and loan documents, including but not limited to, the Loan Agreement and Promissory Note, (collectively "Loan Documents"). Prior to disbursement of any funds, all Loan Documents must be fully executed. The Borrower will also be responsible for paying all costs associated with the closing of the loan, including attorneys’ fees, document preparation, title searches, title insurance and filing fees.

History

• Source: Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.10 Grant Closing

MDA will provide all documents needed to close the grant upon full approval and presentation of all required information.

History

• Source: Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.11 Reimbursement Process

The MDA will release loan and grant funds on a reimbursement or services rendered basis for approved eligible costs of the Project as incurred.

The Approved business enterprise and/or local government shall certify to MDA that the expenses were incurred and were in accordance with the Project as approved by MDA. Funds will be released periodically upon receipt of supporting documentation from the Approved business enterprise and/or local government based upon a schedule established by MDA. Internal labor will not be reimbursable.

History

• Source: Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.12 Register with the Secretary of State

All eligible businesses, required by State law, must be licensed to do business in the State by the Secretary of State’s Office.

History

• Source: Miss. Code Ann. § 79-4-15.02; Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.13 Compliance with Federal and State Laws

A business is required to ensure compliance with the Mississippi Employment Protection Act (“MEPA”), Miss. Code. Ann. § 71-11-3 et seq., and must ensure that the entity registers and participates in the status verification system for all newly hired employees. Under MEPA, the term "employee” means any person that is hired to perform work within the State of Mississippi. As used in MEPA, "status verification system" means the Illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program, or any other successor electronic verification system replacing the E-Verify Program. The business must maintain records of such compliance and, upon request of the State of Mississippi and approval of the Social Security Administration or Department of Homeland Security, where required, to provide a copy of each such verification to the State. Any person assigned to perform services must meet the employment eligibility requirements of all federal and state immigration laws. Any breach may subject the business to the following: (a) termination of the Agreement and ineligibility for any assistance, grant or state or public contract in Mississippi for up to three (3) years, with notice of such cancellation/termination being made public, or (b) the loss of any license, permit, certification or other document granted to the business by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year, or (c) both. In the event of such termination/cancellation, the business is also liable for any additional costs incurred by the State.

Compliance with the equal pay provisions of the Federal Equal Pay Act of 1963, the Americans with Disabilities Act of 1990, and the fair pay provisions of the Civil Rights Act of 1964 is required for any entity applying for a job-based incentive authorized by Mississippi Code.

History

• Source: Miss. Code. Ann. § 71-11-3; Miss. Code Ann. § 57-1-371; Miss. Code Ann. § 57-1-373.

6 Miss. Admin. Code Pt. 1, R. 22.14 Audit

Loans and grants made under the Industry Incentive Program are subject to audit by MDA or the Office of the State Auditor. MDA and/or the Office of the State Auditor shall have the right to inspect books, records, plans and other data related to the Project.

History

• Source: Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.15 Organizational Changes

The sale, merger, acquisition, reorganization, bankruptcy or relocation from one (1) county to another county within the state of any business enterprise may not create new eligibility in any succeeding business entity.

6 Miss. Admin. Code Pt. 1, R. 22.16 Amendment and Waiver

These Rules and Regulations may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of these Rules and Regulations to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State laws.

History

• Source: Miss. Code Ann. § 57-1-221.

6 Miss. Admin. Code Pt. 1, R. 22.17 Certification

In applying to MDA, the business and/or local government certifies that all documents, instruments and information delivered to MDA by the business and/or local government does not contain any untrue statements of a material fact or omit to state a material fact in light of the circumstances under which they were made not misleading. The business and/or local government also certifies that it has disclosed, in writing, to MDA all facts that might reasonably be expected to result in a material adverse effect upon the businesses’ and/or local government’s ability either to conduct its business or to carry out any agreement with the State. The business and/or local government or its agents may not knowingly and willfully make or use a document or writing containing any false, fictitious, or fraudulent statement or entry in any application, correspondence, or communication with MDA. If there has been an inadequate or inaccurate disclosure of information, MDA’s approval or certification may be invalidated or revoked. Any financial benefit as a result may be required to be paid back to the state.

History

• Source: Miss. Code Ann. § 57-1-221, Miss. Code. Ann. §§ 97-7-10, 97-7-11, 97-7-13.

6 Miss. Admin. Code Pt. 1, R. 22.18 Debarment and Suspension Policy

To protect the public trust and interest imposed upon the MDA, if it appears that the business and/or its agent’s conduct, as determined by MDA, creates a reasonable belief that a particular act or omission that is covered by this policy has occurred, the MDA shall implement such discretionary actions known as debarment and suspension.

Program inquiries and applications should be directed to:

Mailing Address: Physical Address: Mississippi Industry Incentive Finance Program 501 North West Street Business Incentives Division 15 th Floor Mississippi Development Authority Jackson, Mississippi 39201 P.O Box 849 Jackson, Mississippi 39205-0849 Telephone: (601) 359-2058

Adopted: September 25, 2024

History

• Source: Miss. Code Ann. § 57-113-21; Miss. Code Ann. § 57-73-21.

Part 2 Minority and Small Business

Chapter 1 Minority Surety Bond Guarantee Program

6 Miss. Admin. Code Pt. 2, R. 1.1 Overview

Mississippi Code Section 69-2- 13(5) directs the Mississippi Development Authority (MDA) “to develop a program which will assist minority business enterprises by guaranteeing bid, performance, and payment bonds which such minority businesses are required to obtain in order to contract with federal and state agencies or political subdivisions of the state.” A Loss Reserve Fund of $2,000,000 was appropriated with authority for an additional $1,000,000 to guaranty private surety bonds guaranteed under the Minority Surety Bond Guaranty Program.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 1.2 Purpose

The Minority Surety Bond Guaranty Program strives to increase minority participation in construction and building trades contracts with federal, state, and local units of government, and their subsidiaries. Often minority firms are unable to compete for this business because they cannot obtain the bid, performance, and payment bonds required for government contracts. The Minority Surety Bond Guaranty Program assists these firms through surety bond guaranties and technical assistance to internal management. The goal of the Minority Surety Bond Guaranty Program is to help minority and women contractors establish a bond line with a surety company with a partial guarantee from the state. This will provide to the contractors an opportunity to form a relationship with a surety company thereby enabling them to obtain bond lines without a state guarantee. With successful completion of contracts guaranteed under the program, coupled with management and technical assistance directed by the program administrator and others, it is projected that minority contractors will grow in experience, management skills and the financial stability sufficient to obtain surety bonding on their own.*

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 1.3 Contractors

A contractor/applicant must meet the following criteria: A. Be in the construction or building trades business. B. Be a certified business enterprise, Minority-Owned Business Enterprise (MBE) or Woman-Owned Business Enterprise (WBE) through the Minority and Small Business Development Division (MSBDD) of MDA. C. Have been in business at least one year prior to application. D. Have its principal place of business located in the state of Mississippi. E. Meet experience and financial standards appropriate to the contract. F. Agree to subcontract no more than seventy-five (75%) of a qualified contract. G. Show reasonable evidence of inability to secure bonding in the general market. H. At the discretion of the Surety Bonding Committee, agree to attend instructional courses designed by the Mississippi Development Authority's Minority & Small Business Development Division and the selected surety company to meet general requirements

leading to independence in securing bonding and contractor licensing. The committee may waive all or selected courses based on an assessment of the level of competency of the participant The classes will be conducted over a 13-week period (one 3 hour class per week). The courses will be conducted by professionals in the related fields of expertise and include the following:

Week 1: Business Planning and Organization Week 2: Risk Management Week 3: Estimating Week 4: Dispute Management Week 5: Scheduling Week 6: Occupational Safety Week 7: Finance and Business Management Week 8: Conflict Resolution Week 9: Contract Management Week 10: Surety Bonding Week 11: Equipment Management Week 12: Written Communication Week 13: General Contractors State Licensing Preparation Optional: Contractor Exam Review

The courses will be available statewide through utilizing the resources of the Mississippi Community Colleges and Universities and other resource partners. The courses will be provided at a nominal cost to the participant. For course completion, no more than three absences will be permitted, not including the optional session (Exam Review).

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 1.4 Types of Bonds

A. Bid Bond: Guarantees that the bidder on a contract will enter into the contract and furnish the required payment and performance bond. B. Payment and Performance Bond: Guarantees payment from the contractor to the person who furnishes labor, material, equipment and/or supplies for use in the performance of the contract. The bond also guarantees that the contractor will perform the contract in accordance with its terms.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 1.5 Qualifying Governmental Agencies

Examples of governmental agencies whose construction contracts qualify: A. Federal Agencies: (i). U.S Post Office (ii). U. S. Army Corp of Engineers (iii). Department of Housing and Urban Development (iv). U.S. Military B. State Agencies:

(i). Universities and Community Colleges (ii). Department of Transportation (iii). Bureau of Buildings, Grounds, and Real Property Management C. Local Governments and Subsidiaries: (i). Cities, towns and counties (ii). Public housing authorities (iii). Public Schools (iv). Public Facilities (v). Roads and Bridges (vi). Other Related Public Infrastructure

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 1.6 Guaranty Amounts

For a Mississippi Development Authority approved firm, the Minority Surety Bond Guaranty Program offers bond guaranties up to $175,000 for a company new to the program. After reevaluation, the maximum guaranty amount increases to $250,000 in the company's second year of participation providing that there has been no default and the company remains eligible. The Mississippi Development Authority may guarantee up to ninety (90%) of specified bond amounts up to the applicable maximum.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 1.7 Costs

There is no charge for bid bonds through the Mississippi Development Authority or the surety company. For payment and performance bonds, there is an administrative charge of .6% per thousand dollars to Mississippi Development Authority.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 1.8 Default

The definition of surety losses is the responsibility of the Surety and the Mississippi Development Authority as detailed in applicable Bond Guaranty Agreement documents.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 1.9 Application

To apply for bonding assistance through the Minority Surety Bond Guaranty Program, a business will first contact the Minority & Small Business Development Division or one of the Mississippi Contract Procurement Center Regional Offices for applications and/or technical assistance in submitting certification and bonding applications. Bonding applications are then forwarded to participating Underwriters and Sureties. The application packages will include the following and must be submitted for each bonding request: A. Bond Application B. Project Data Sheet C. Complete Submission of Document Check List Items

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

Chapter 2 Minority Enterprise Division Appeals Procedure

6 Miss. Admin. Code Pt. 2, R. 2.1 Scope

This procedure is the exclusive method for seeking administrative review of adverse action taken by Minority Business Enterprise Division, a division of the Mississippi Development Authority.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 2.2 Appealable Actions

An applicant/participant may appeal the following adverse actions taken by MBED - a denial of program admission and/or a denial of renewal of program admission. However, an adverse action is only appealable if MBED's decision is based solely on a negative finding of social disadvantage, economic disadvantage, ownership, control or any combination of these four criteria. An adverse action that is based, even in part, on failure to meet any other eligibility criterion is not appealable and is the final decision of the agency.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 2.3 Notice

The applicant/participant shall be advised in writing of the grounds on which MBED based its action. The notice will be sent by certified mail return receipt requested. The notice of action shall also include a statement indicating that the applicant/participant has the right to request reconsideration or if applicable, to appeal the action under the provisions of Section 2 above.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 2.4 Request

An applicant/participant may request reconsideration by MBED of any adverse action regardless of whether the adverse action is appealable under Section 2 above. Such request must be in writing to the Director of Minority Business Enterprise Division, Mississippi Development Authority, P.O. Box 849, Jackson, Mississippi 39205-0849. The Director of MBED must receive the request for reconsideration within twenty (20) calendar days from the date the Notice of Adverse Action was mailed. The request must specify the matter(s) to be reconsidered and include any additional information the applicant/participant wishes to be considered.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 2.5 Review

Upon receipt of a request for reconsideration, MBED will review the request and any information provided, conduct further inquiry if necessary, including but not limited to an in-person discussion with the applicant/participant, and submit its decision in writing, certified mail return receipt requested, to the applicant/participant within fifteen (15) days. A timely received request for reconsideration tolls the twenty (20) day time period for appeal of an adverse action. Upon receipt of an adverse reconsideration decision, the applicant/participant may submit a petition for appeal if the decision is based on appealable matters pursuant to Section 2 above.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 2.6 Procedure for Petition for Appeal

A. The applicant/participant petitioning for appeal, must file its petition in writing with the Director of Minority Business Enterprise Division, Mississippi Development Authority, P. O. Box 849, Jackson, Mississippi 39205-0849 not later than twenty (20) calendar days from the date the notice of adverse action was mailed; or within twenty (20) calendar days from the date the decision on a Request for Reconsideration under Section 4 above was mailed The petitioner must specify within its petition for appeal the grounds upon which administrative review of the decision is sought. The petition must clearly indicate the type of remedy requested and name the contact representative for the petitioner. A hearing shall be held only if the petitioner specifically requests a hearing in its petition for appeal. If no petition for review of an appealable adverse action is filed within the above stated time, the decision shall become final. B. MBED shall acknowledge the receipt of the request for appeal within seven (7) calendar days of receipt. Such acknowledgement shall designate the review officer. C. Filing of a petition for appeal shall not stay the effect of the MBED's adverse action.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 2.7 Review Officer

The review officer shall be an independent and impartial officer other than, and not accountable to, any person authorized to make decisions that are subject to appeal under the provisions of this section. The review officer may, however, be an employee of the MDA.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 2.8 Procedure for Hearing on Appeal

A. The petitioner may refute the grounds on which MBED based its action in person and/or by written documentation submitted to the review officer. In order to be considered, all written documentation of the petitioner and MBED must be filed with the review officer with a copy to the opposite party not later than thirty (30) calendar days after the mailing of the acknowledgement of appeal. B. The petitioner may retain legal counsel at its own expense. A hearing shall be held by the review officer in addition to, or in lieu of, a review of written information submitted by the petitioner only if so specified in the petition of appeal. The review officer shall set a hearing date which date shall not be later than thirty (30) calendar days from the date of mailing of the acknowledgement of appeal, unless the parties agree to a later date. Failure of the petitioner or its counsel to appear at a scheduled hearing shall constitute waiver of the hearing. A representative of MBED shall be allowed to attend the hearing to present evidence, respond to the petitioner's testimony and to answer questions posed by the review officer. C. Any hearing shall be conducted in such a manner that all parties have a fair and reasonable opportunity to present witnesses and other evidence pertinent to the issues. In conducting the hearing, the review officer shall not be bound by common law or by statutory rules of evidence or by technical or formal rules of procedures, but may conduct the hearing in such a manner as best to ascertain the rights of the parties. However,

hearsay evidence (if presented) shall not be the sole basis for the determination of facts by the review officer. The review officer may also ask questions to clarify issues, limit the examination or cross-examination of witnesses to keep the hearing focused on the issue, and recess/reconvene the hearing if necessary. D. If any party to the appeal wishes to have stenographic notes of the proceedings, that party shall be solely responsible for payment of a court reporter for that service; the review officer shall, on request, engage a court reporter for this purpose. An audio tape recording shall be made of the proceedings and may be duplicated and/or transcribed at the expense of either party requesting it. E. It shall be the responsibility of each party to secure the attendance of such witnesses as deemed necessary to present the case; any expense connected with that attendance shall be borne by the party responsible for the attendance of that witness. The review officer shall not have power to subpoena witnesses or documents.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 2.9 Recommendation

After conducting de novo review of the materials submitted by the parties and of the evidence taken at the hearing, if any, the review officer shall make a written recommendation to the Executive Director of the Mississippi Development Authority (MDA). The written recommendation will be issued to the Executive Director within twenty days (20) after the hearing is completed or, if no hearing is held, after submission of any written documentation permitted by Section 7(a) above. The recommendation of the review officer shall contain specific reason(s) why the denial or termination decision should be upheld or overturned. A copy of the recommendation will be sent to petitioner and to the Director of MBED by certified mail return receipt requested.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 2.10 Executive Director Review

A. After review solely on the record, the Executive Director may adopt the recommendation of the review officer or may issue a differing decision. The Executive Director will issue his decision within fifteen (15) calendar days of receipt of the recommendation of the review officer. A decision adopting the recommendation of the review officer need not contain any additional reasoning. B. The decision of the Executive Director shall be sent by certified mail return receipt requested to the petitioner and to the Director of MBED. The decision of the Executive Director is final.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 2.11 Remand

In the event an appealable adverse action is overturned as a result of an appeal the Executive Director of MDA may direct, the disposition to be made by MBED of the application, renewal or termination; or the application may be remanded to MBED for further action consistent with the decision of the Executive Director. MBED will indicate what steps, if any, must be taken to complete or reinstate certification.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

6 Miss. Admin. Code Pt. 2, R. 2.12 Immunity

Nothing in the appeal procedure shall be construed as a waiver of the immunities from suit conferred upon the State of Mississippi, MDA, or any of its employees, officers, agents or designees, under the Eleventh Amendment of the United States Constitution and the Constitution and laws of the State of Mississippi.

History

• Source: Miss. Code Ann. § 69-2- 13(5) (Rev. 2005)

Chapter 3 Minority Business Enterprise Loan (MBE) and Micro-Loan (MBEM) Programs

6 Miss. Admin. Code Pt. 2, R. 3.1 MBE Overview

The Mississippi Business Enterprise Loan Program, administered by the Mississippi Development Authority, combines state and private lending sources to assist new and existing minority business in gaining access to needed capital in the form of direct low- interest rate loans. The State of Mississippi amount ranges from $35,001 to $250,000 with the potential of $500,000 with 50% match from another lending source or entity.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.2 Eligibility

To be eligible for funding under the program, the Minority Business Enterprise must be a socially and economically disadvantaged small business concern. The business must be organized for profit, perform a commercially useful function and be owned or controlled by one or more minorities or women.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.3 Definitions

For purposes of this program, the term “socially and economically disadvantaged small business concern” shall have the meaning ascribed to such term under the Small Business Act (15 U.S.C.S., Section 637 (A)) and shall include all women. MBE Loan applicants, regardless of race or gender, must be determined to be socially and economically disadvantaged due to diminished capital and credit opportunities as compared to others in the same business area that are not socially disadvantaged.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.4 Ability to Repay

All applicants must be credit worthy and demonstrate the ability to repay the loan, must be in compliance with all state and federal regulatory agencies, and must not be in default on any previous loans from the state or federal government. No minority business will be eligible if it is: A. A charitable institution or nonprofit organization B. A newspaper, magazine, radio, television broadcasting company or similar enterprise through which editorial opinions are expressed C. Engaged in the business of lending, directly or indirectly

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.5 Proper Use of Loan Proceeds

MBE loan proceeds may be used to finance costs associated with the creation or expansion of a minority business, including fixed assets, working capital, start-up costs, rental payments, interest expense during construction and professional fees related to the project.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.6 Borrower Investment Requirement for a New Business

When loan proceeds are used to start a new business or to purchase an existing business, the total project cost is the amount required to establish or acquire that business. The borrower must inject a minimum of five percent (5%) equity into the project in the form, of cash of tangible assets such as land, building or equipment.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.7 Borrower Requirements to Expand an Existing Business

When loan proceeds are used to expand an existing business, the total project cost will be the total funds required to complete the proposed expansion. Assets owned by the business prior the expansion are not to be included in the project cost, unless it can be clearly documented that assets acquired prior to the application were purchased as a part of the expansion project. Existing business assets may be used as collateral for the loan.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.8 When Loans are Unavailable

MBE loans are not available under the following circumstances: A. To pay off existing debts for consolidation purposes; B. If the direct or indirect purpose or result would be to pay off creditors of applicants who are inadequately secured or in a position to sustain a loss; C. If the assistance would, directly or indirectly, provide or replenish funds for payment, distribution, or as a loan to owners, partners, or stockholders of the Minority Business and would not change the ownership interest of the business (does not apply to ordinary compensation for services rendered in the course of business); D. If the loan funds would provide or free funds for speculation in any kind of property; E. If the assistance would finance the acquisition, construction, improvement or operation of real property which is to be held primarily for sale or investment, or; F. If the assistance would finance vehicles.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.9 Terms of MBE Loan(s)

The maximum term of the MBE loan shall be seven (7) years for working capital, ten (10) years for machinery and equipment, and fifteen (15) years for land and building. If loan proceeds are to be used for a combination of working capital, machinery and equipment, or land and building, then a blended term may be used that is proportionate to the use of the funds and to the collateral securing the loan.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.10 Proper Use of MBE Loan Funds

MBE loan funds may be used to fund fifty percent (50%) of total project that consist of borrowed costs or $250,000, whichever is less. The minimum total project eligible for consideration is $15,001. Any project requests of $35,000 or less may be eligible for funding under the Minority Micro-Loan Program as outlined below. A combination of state funds may be used to finance project costs; however, the combination of these funds may not exceed 50% of the total project that is borrowed.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.11 Interest Rate on MBE Loan(s)

The minimum interest rate, which may be charged to the minority business on MDA’s portion of the MBE loan, is two percent (2%) below the Federal Reserve Discount Rate, and the maximum is two percent (2%) above the discount rate. Should the interest rate change from the date of commitment to the date of closing, the interest rate quoted in the commitment will prevail.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.12 Collateral on MBE Loan(s)

Collateral on MBE loans made by the qualified entity should normally be subordinated to the senior lender.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.13 Fees on MBE Loan(s)

The qualified entity may charge an origination fee of up to 1% on the first $250,000 loaned. Additional fees paid by the borrower in connection with the closing of the MBE loan are limited to attorney fees and other associated closing costs that may not exceed $750. These fees may be paid from proceeds. Should extenuating circumstances cause fees to exceed these stated amounts, written justification should be provided along with the settlement sheet.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.14 MBEM Overview

The Mississippi Business Enterprise Micro-Loan Program provides a funding source for businesses needing financing for small projects. Loan amounts for projects range from $2,000 to $35,000 with an owner’s equity injection (i.e. cash, tangible equity such as land, building(s) or equipment) of five percent (5%).

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.15 Terms of MBEM Loan(s)

The terms allowed are determined by the loan amount and should relate to the type of collateral offered. Terms should not exceed three (3) years for loans of $2,000 to $5,000, four (4) years for loans of $5,001 to $10,000, five (5) years for loans of $10,001 to $15,000, and seven (7) years for loans of $15,001 to $35,000.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.16 Proper Use of MBE Micro-Loan Funds

MBE Micro-Loan funds may be used to finance up to 100% of total projects of $2,000 to $35,000. All borrowers must have at least 5% equity in the project. These funds are not intended to be used as gap financing and proceeds shall not be utilized with any other financing.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.17 Interest Rate on MBE Micro-Loan(s)

The interest rate to be charged is four percent (4%) over the Federal Reserve Discount Rate, fixed for the term of the loan. Should the interest rate change from the date of commitment to the date of closing, the interest rate quoted in the commitment will prevail.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.18 Collateral on MBE Mircro-Loan(s)

Collateral shall include a first lien on all assets acquired with loan proceeds. Collateral may also include liens on other business and/or personal assets as deemed necessary to adequately secure the loan.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.19 Qualified Entity Involvement in Approval of MBE Mircro-Loans

The qualified entity's Board of Directors may choose to appoint an in-house loan committee comprised of staff members of the Qualified Entity to approve micro-loan applications. MDA will require a copy of the board minutes authorizing the in-house committee prior to the submission of loan applications.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.20 Fees on MBE Micro-Loan

The qualified entity may charge an origination fee of up to 1% of the loan amount. At the option of the qualified entity, a minimum fee of $100 may be established. Additional fees paid by the borrower in connection with the closing of the MBE Micro-Loan are limited to attorney fees and other associated closing costs. These fees may be paid from loan proceeds.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.21 Application Submission

Applications may be submitted by mail or facsimile to MDA. A credit report and a personal financial statement of each owner of the minority business must accompany the application. All other documentation as indicated on the application form shall be retained on file with the qualified entity.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.22 Application Requirements

All qualified entities will provide applicants under this program an application packet that includes the MBE loan application, a summary of the loan

program criteria, eligibility requirements, a summary of the application process, loan closing procedures, and applicable fees. All MBE loan requests shall be submitted to MDA on the approved Minority Business Enterprise Loan Application. This application is intended to be completed by the qualified entity with information provided by the applicant. The qualified entity’s board or designated loan committee shall first have approved all loans submitted to MDA for consideration. At a minimum, the composition of the Board of Directors shall include an individual with current banking experience, an individual owning a for-profit, commercial enterprise, a minority individual with current experience in banking or business ownership and a female with current banking or business ownership experience.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.23 Notification of Approval

When an application has been approved, MDA will notify the Qualified Entity in writing. Upon receiving MDA'S approval, the qualified entity may submit a request for payment form. MBE loan proceeds not disbursed by the Qualified Entity within sixty (60) days of receipt must be returned unless an extension is granted by MDA or be subject to interest penalties.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.24 Reporting Requirements

Each qualified entity will be required to file status reports with MDA as of December 31 and June 30 of each year summarizing project information and fund uses. These reports are due on January 31 and July 30.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 3.25 Audits

An independent audit of grant funds received in connection with this program shall be submitted to MDA annually. This audit shall include a reconciliation of all bank accounts where MBE funds are being held on deposit.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

Chapter 4 Mississippi Capital Access Contract Loan Program (MS CAP)

6 Miss. Admin. Code Pt. 2, R. 4.1 Overview

The Mississippi Capital Access Program, administered by the Mississippi Development Authority (MDA), is designed to increase the availability of financing for borrowers who for various reasons might have difficulty in obtaining conventional loans. The essential element of the program is a loan secured by proceeds of a public contract (“Contract Loan”). The loan will be made on the basis of a construction contract with a public entity having been awarded to the borrower.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.2 Definitions

For the purpose of this program, the “socially and economically disadvantaged” shall have the meaning ascribed to such term under the Small Business Act (15 U.S.C., Section 637[a] and shall include woman. Businesses qualifying as minority or women

owned must sign a notarized affidavit indicating ownership.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.3 Proper Use of CAP Loans

Contract loans may be used for cost associated with a construction project or construction related contract being used as collateral for each loan. A properly notarized “letter to redirect funds” may be substituted in lieu of a contract with certain governmental agencies. Such letters must be pre-approved by the Mississippi Development Authority. In the event the contract involves a subcontractor, the subcontractor may also apply for the Capital Access Contract Loan. In this case, the prime contractor or other qualified entities must agree to pay the subcontractor’s loan amount directly to the lending institution. The maximum amount that may be loaned to anyone borrower is the greater of $75,000.00 or 75% of the contract amount. This loan program has a limit of three loans per borrower. The loan may not be used in conjunction with any other State finance program. The Mississippi Development Authority may at its discretion require control of use and disbursement of funds on these loans. The applicant will be responsible for the cost of all fees associated with the loan.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.4 Improper Use of CAP Loans

Capital Access Contract Loans are not available under the following circumstances: A. To pay off existing debt for consolidation purposes; B. If the direct or indirect purpose or result would be to pay off creditors of applicants who are inadequately secured or in a position to sustain a loss; C. If the assistance would, directly or indirectly, provide or replenish funds for payment, distribution, or a loan to owner, partners, or stockholders of the Small Business and would not change the ownership interest of the business (does not apply to ordinary compensation for services rendered in the course of business); D. If the loan funds would provide funds for speculation in a any kind of property; or if the assistance would finance the acquisition, construction, improvement, or operation of real property which is to be held primarily for sale or investment; E. If the loan is for construction or purchase of residential housing. Each loan made under the Capital Access Contract Loan Program must be approved by the Mississippi Development Authority.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.5 Eligibility

An eligible Financial Institution is any commercial bank, savings bank, or association domiciled or qualified to do business in the State and other types of financial institutions, including but not limited to Small Business Investment Corporations, (Hereafter referred to as “Financial Institution”). For the purpose this loan program, the participating Financing Institutions will be those that have qualified to participate in the Capital Access Loan Program.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.6 Eligible Businesses

Businesses, which are eligible to participate in the Capital Access Program, must fall into one of the following categories: A. A Small Business, which is defined as any independently owned and operated for- profit, commercial enterprise domiciled in the State with less than 50 full-time employees. Owner(s) must have completed the Model Contractor Development Program or completed the small business training programs offered through the Entrepreneur Center; or B. A Small Disadvantaged Business, which is publicly owned with at least 51 % of its stock unconditionally owned by one or more socially and economically disadvantaged individuals, and whose management and daily operation is controlled by one or more such individuals; or C. A Minority Business that meets the definition of a minority or woman owned business. A minority or woman owned business is a business enterprise, which is socially and economically disadvantaged and owned and operated by one or more women or eligible minorities. The business must be organized for profit and perform a commercially useful function.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.7 Sole Proprietorship Restriction

If the Small Business is a sole proprietorship, the owner must be a resident citizen of the State of Mississippi and if the business is a corporation or partnership, at least 51 % of the owners must be resident citizens of Mississippi.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.8 Ability to Repay

The small business must be credit-worthy and demonstrate the ability to repay the loan, the ability to successfully fulfill the contract being used as collateral, must be in compliance with all state and federal regulatory agencies, and must not be in default on any previous debt or obligation with the state or federal government.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.9 Ineligible Small Businesses

Small Businesses that are not eligible for assistance under this program are: A. Charitable institution or nonprofit enterprise; or B. Newspaper, magazine, radio, television broadcasting company, or similar enterprise through which editorial opinions are expressed; or C. Businesses engaged in lending, directly or indirectly; D. Immediate relatives of any current staff or board members of a Financial Institution. E. Immediate relative is defined as a spouse, parent, child or sibling of the applicant.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.10 Use of Loan Proceeds

MS CAP may be used to finance costs associated with the creation or expansion of a Small Business, including fixed assets, working capital, start-up costs, rental payments, interest expense during construction, and professional fees related to the

project. The maximum amount that may be loaned to anyone borrower is $150,000. The Loan may not be used in conjunction with any other State finance program.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.11 Restriction on Use

The Financial Institution s ets the terms and conditions of the MS CAP loan. However, the funds cannot be used to pay off: A. Existing debt and/or creditors; or B. Consolidation purposes; C. Construction or purchase of residential housing; or real property that is held primarily for sale or investment. Each MS CAP Loan must be approved by MDA to qualify for the program.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.12 Contribution Outline

A. Small Business A minimum of 1.5% of the loan amount; A maximum of 3.5% B. Financial Institutions Will match the amount deposited by the Small Business (The Financial Institution may recover all or part of its contribution from the Small Business in the form of loan proceeds or cash injection) C. Capital Access Program Will match the total amount contributed by the Financial Institution and the Small Business.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.13 Loan Terms

The interest rate on this loan program shall be 0%. The length of the secured contract shall dictate the length of the loan.

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 2, R. 4.14 Applications

Interested borrowers should contact a participating financial institution and for any additional information pertaining to the Mississippi Capital Access Program, please contact: MISSISSIPPI DEVELOPMENT AUTHORITY Financial Resources Division Post Office Box 849 Jackson, MS 39205 Telephone: (601) 359-3552 or Fax: (601) 359-3619

History

• Source: Miss. Code Ann. § 57-69-5 (Rev. 2008)

Part 3 Energy

Chapter 1 Mississippi Energy Investment Loan Program

6 Miss. Admin. Code Pt. 3, R. 1.1 Purpose

The Mississippi Energy Investment Program (“Energy Investment Program”), administered by the Mississippi Development Authority (“MDA”) is designed for making loans to qualified borrowers (the “Borrower”) to promote development and demonstration of efficient, environmentally acceptable and commercially feasible technologies, techniques and processes while effectively utilizing the state’s existing alternative and conventional energy resources to foster economic and social growth. Funding for the loans to the Borrower is derived from the appropriated funds which were a part of the Petroleum Violation Escrow Fund, M.D.L. 378 Oil Overcharge funds. The Energy Investment Program was enacted pursuant to Section 57-39-43, Miss. Code of 1972, as amended, and In Re: The Department of Energy Stripper Well Exemption Litigation, United States District Court, Kansas, M.D.L. No. 378, 1986 (jointly the “Act”).

History

• Source: Miss. Code Ann. § 57-39-43 (Rev. 2008)

6 Miss. Admin. Code Pt. 3, R. 1.2 Eligibility

In order to obtain assistance under the Energy Investment Program, the applicant must be declared financially sound and capable of repaying the loan and must meet one of the following criteria: A. Corporation; B. Partnership; C. Hospital (Public and private “non-profit”); D. Institutions of higher learning; E. Community Colleges; F. Schools (public or private); G. Local Government entities; H. Sole Proprietors

History

• Source: Miss. Code Ann. § 57-39-43 (Rev. 2008)

6 Miss. Admin. Code Pt. 3, R. 1.3 Eligible Projects

Eligible projects include retrofits and energy design process developments. The improvement must promote the development and demonstration of efficient, environmentally acceptable and commercially feasible technology and processes, and must also utilize Mississippi’s existing energy resources, public utilities and/or developing resources to foster economic growth. In order for a project to be eligible to receive such assistance, the project must qualify pursuant to the two (2) phase eligibility requirements provided below: A. Phase 1 Structural Eligibility: The structure, which is to be the target for the installation of energy efficiency measures will be financed with the proceeds of a loan, shall be considered eligible only if it is an existing structure that is at least one (1) year old, owned, occupied and used by the Borrower and, is not: (i). Classified as condemned or scheduled for demolition; or, (ii). Leased or rented by the applicant from another party unless the landlord has

given the tenant written permission to proceed with the installation; or, (iii). Encumbered by a real estate transaction or purchase option; or, (iv). Included on the National Register of Historic Landmarks and Sites maintained by the U.S. Secretary of the interior or , if included, has received approval of the Mississippi Department of History and Archives to perform the work; or, (v). Encumbered by subordinated mortgages, mechanics, or materialmen’s, and/or any other types of liens that would prevent MDA from obtaining a security interest. B. Phase 2 Eligible Retrofit Measures: Loans will be made available only for the purchase and installation of energy conservation measures that have been identified and recommended by an energy technical analysis. The combined simple payback of all the energy conservation measures being installed cannot exceed ten (10) years. The Energy Analysis can be performed by MDA, utility companies or a qualified engineer. Only projects recommended by the Energy Analysis will be considered for funding. An energy conservation measure is one that is primarily intended to reduce energy consumption or allow the use of an alternative energy source. Loans cannot be used to finance projects that were completed prior to, or in the process of being installed, at the time of an application. Neither may a loan be used to finance “cosmetic” or rehabilitative improvements unless energy savings are justifiable. C. Categories Eligible for Funding. Two categories of energy efficiency projects are eligible for funding. The categories are defined as Retrofit Projects and Energy Efficient Processes. D. Retrofit Projects. Eligible energy conservation measures include, but are not limited to, the following: (i). insulation; (ii). storm windows and doors, multi-glazed and other specially treated windows and door systems; (iii). automatic energy control systems/energy management systems; (iv). equipment to operate variable steam, hydraulic, and ventilating systems; (v). solar heating and cooling systems, and electric generating systems; (vi). furnace or utility plant and distribution system modifications to include burners, furnaces, boilers, and ignition systems; (vii). caulking and weather-stripping; (viii.) lighting fixtures and lamps; (ix). energy recovering systems; (x). cogeneration systems; (xi). Renewable energy systems; (xii) Heating and cooling systems; and/or (xiii). other measures that can be shown to save energy or reduce energy demand. E. Energy Efficient Process. This category includes the implementation of equipment that enhances the efficiency of any industrial process by reducing energy consumption or allowing for the use of alternative energy sources. Examples of such projects include: (i). kilns; (ii). boilers – natural gas or wood; (iii). billet ovens; (iv). optimizing saws; (v). refrigeration systems;

(vi). Variable steam and hydraulic equipment

History

• Source: Miss. Code Ann. § 57-39-43 (Rev. 2008)

6 Miss. Admin. Code Pt. 3, R. 1.4 General Loan Terms

The maximum amount, which may be loaned from the Energy Investment Program to finance any one (1) project, Five Hundred Thousand Dollars ($500,000). The fixed rate of interest which shall be set at the time the application is approved, will be two percent (2.0%) below the New York Prime Rate with a term not to exceed ten (10) years. The term and the repayment schedule will be established by MDA.

History

• Source: Miss. Code Ann. § 57-39-43 (Rev. 2008)

6 Miss. Admin. Code Pt. 3, R. 1.5 Liens and Collateral

Each loan will be secured by a lien of such type that provides adequate security for MDA to recover its investment in case of default on the loan. Liens may be in the form of personal guarantees, liens on the equipment, measures installed or security interest in other assets or a combination of the afore-mentioned. Personal guarantees of all principles owning 20% or more of the business is required. It should be noted MDA will require a one percent (1%) good faith deposit on projects involving real estate pledged as collateral. In the case of projects for local government entities and public schools, MDA will require a pledge and assignment of tax revenues collected by such entity.

History

• Source: Miss. Code Ann. § 57-39-43 (Rev. 2008)

6 Miss. Admin. Code Pt. 3, R. 1.6 Borrower Application Process

The application to be submitted by a Borrower must include: A. The purpose of the proposed loan including a list of eligible items and the cost of each; B. The estimated cost of the total project with a detailed breakdown of all public and private sources of funding; C. The time schedule for implementation and completion of the project, evidencing an expeditious completion of the project; D. Submit company balance sheets, income statements and statements of cash flow for E. the previous three (3) fiscal years and current statements dated within ninety (90) days F. of application; G. Detailed project description, including pictures. H. For local government entities and public schools: (i). Certified proof of publication of the Resolution of Intention of the government entity to apply for an Energy Investment Program loan. The Resolution must be published once a week for at least four (4) consecutive weeks in a newspaper having general circulation in the county; (ii). Upon receiving the results of the publication of the Resolution of Intention, the government entity will need to provide MDA with an execution Resolution of No Protest; (iii). Opinion of counsel from the public schools and/or local government entity addressing the authority to borrow under the Energy Investment Program and to pledge a tax base as collateral for such loan; and

(iv). Most recent audited financial statements I. Two (2) copies of the application must be submitted to MDA. As part of the application process, MDA will perform a technical analysis. A technical analysis evaluates the ability of the Borrower to conserve energy or to improve the efficiency of a process through the installation of energy saving measures of the use of an alternative energy source. The technical analysis must clearly explain the measures to be undertaken and detail the energy savings and other revenue benefits attributable to the project. MDA will evaluate the application to determine if the project meets the program criteria and what terms and conditions the loan shall bear.

History

• Source: Miss. Code Ann. § 57-39-43 (Rev. 2008)

6 Miss. Admin. Code Pt. 3, R. 1.7 Loan Closing

Based upon the terms and conditions established by MDA, MDA will prepare all security and loan documents, including but not limited to, the Loan Agreement and Promissory Note, (collectively “Loan Documents”). Prior to disbursement of any funds, all Loan Documents must be fully executed. At the time of the closing, the Borrower will be responsible for providing to MDA a one percent (1%) closing/servicing fee and the cost of Energy Analysis. The Cost of the Energy Analysis for the borrower will be capped at $3,500. Additional cost, if applicable, will be the responsibility of MDA. The Borrower will also be responsible for paying for all costs associated with the closing of the loan, including searches and filing fees.

History

• Source: Miss. Code Ann. § 57-39-43 (Rev. 2008)

6 Miss. Admin. Code Pt. 3, R. 1.8 Reimbursement Process

The MDA will release loan funds on a reimbursement or services rendered basis for approved eligible costs of the project as incurred. The Borrower shall certify to MDA that the expenses were incurred and were in accordance with the project as approved by MDA. Funds will be released periodically upon receipt of supporting documentations from the Borrower based upon a scheduled established by MDA.

History

• Source: Miss. Code Ann. § 57-39-43 (Rev. 2008)

6 Miss. Admin. Code Pt. 3, R. 1.9 Audit

Loans made under the Energy Investment Program are subject to audit by the State Department of Audit.

History

• Source: Miss. Code Ann. § 57-39-43 (Rev. 2008)

6 Miss. Admin. Code Pt. 3, R. 1.10 Waiver

These guidelines may be amended by MDA at anytime. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

History

• Source: Miss. Code Ann. § 57-39-43 (Rev. 2008)

6 Miss. Admin. Code Pt. 3, R. 1.11 Inquiries and Applications

Program inquiries and applications should be directed to the following mailing address: A. Mississippi Development Authority Mississippi Energy Investment Program Energy and Natural Resources Division

Post Office Box 849 Jackson, Mississippi 39205-0849 Telephone: (601) 359-6000 Fax: (601) 359-6642 Website: www.mississippi.org

History

• Source: Miss. Code Ann. § 57-39-43 (Rev. 2008)

Chapter 2 Mississippi Alternative Fuel School Bus and Municipal Motor Vehicle Loan Fund

6 Miss. Admin. Code Pt. 3, R. 2.1 Overview and Purpose

The Mississippi Alternative Fuel School Bus and Municipal Motor Vehicle Revolving Loan Fund, administered by the Mississippi Development Authority (“MDA”) is designed to assist public school districts and municipalities in paying initial costs incurred for the purchase of alternative fuel school buses and motor vehicles, the conversion of school buses and motor vehicles to utilize alternative fuels and the purchase of alternative fuel system equipment and facilities.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.2 Program Requirements

In order to obtain assistance under the Mississippi Alternative Fuel School Bus and Municipal Motor Vehicle Revolving Loan Fund, the applicant must be declared financially sound and capable of repaying the loan and must be one of the following entities: A. Public School District (K-12) B. Municipality

History

• Source: House Bill 1685, Section 1, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.3 Equipment and Technology

Equipment and technology eligible for projects through the loan program are restricted to the following stipulations: A. Alternative fuel gases, per Regular Session 2013 HB 1685 are: i. propane gas; ii. compressed natural gas; and iii. liquefied natural gas. B. Original Equipment Manufactured Alternative Fuel Vehicles (AFVs) must be new, dedicated or bi-fuel, on-road school bus or motor vehicle. Motor vehicles include light- to heavy-duty weights. C. After-Market Retrofits are limited to gasoline or diesel powered school buses or motor vehicles for bi-fuel or dedicated fuel conversion. Retrofits must be new vehicle systems and must be EPA certified. Documentation must be submitted with application. D. Refueling Infrastructure projects can include new dispensing facilities, or additional equipment or upgrades and improvements to existing AFV refueling sites: i. Tanks, pumps, hoses, injectors, electronic controls and related supplies, materials, parts and components for the storage of alternative fuels;

ii. Facility upgrades or building modifications that are necessary to accommodate alternative fuels for fleet garages and other maintenance/service centers; iii. Projects may be proposed that include multiple fuel types; and iv. Eligible infrastructure costs must be limited to the development of the refueling capability and related service/support for alternative fuel and/or advance technology vehicles. E. Refueling system purchased through the loan program must be installed at a governmental entity location for nonpublic use per Regular Session 2013 HB 1685.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.4 Eligible Projects

Funds may be used to cover 100% of incremental cost to purchase an alternative fuel vehicle, to convert a conventional vehicle to accept alternative fuels, and to purchase alternative fuel system equipment and facilities. If requesting funding for any one project below, the applicant must show the complementary project has already been completed or funded, or provide the plans for such, with certification acceptable to MDA.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.5 New OEM Purchases

Incremental cost shall be calculated based on the difference between the cost of the AFV and the cost of a comparable conventional model, verified by manufacturer estimate, after all other applicable manufacturer and cash equivalent incentives are applied. Those AFVs with no conventional model must be compared to a model of same manufacturer with similar specifications. This conventional model must be verified by the manufacturer.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.6 Repower/Recharge/Retrofits/Conversions

For vehicle conversions, the incremental cost shall be based on the cost of the new fuel system plus installation and labor after all other applicable rebates and cash equivalent incentives are applied. Vehicle retrofits are limited to EPA compliant vehicle systems. Funds are not available for non-fuel system upgrades such as transmissions and exhaust systems. Eligible projects include retrofits and energy design process developments.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.7 Alternative Fuel System Equipment and Facilities

The incremental cost of fueling system property shall be based on the cost of the new fuel system plus construction and installation after all other applicable rebates and cash equivalent incentives are applied.

6 Miss. Admin. Code Pt. 3, R. 2.8 Applications

The application to be submitted by a borrower must include: A. The purpose of the proposed loan including a list of eligible items and the cost of each; B. Detailed project description, including pictures for facility projects; C. The estimated cost of the total project with a detailed breakdown of all public and private

sources of funding; D. The time schedule for implementation and completion of the project, evidencing an expeditious completion of the project; E. Certified proof of publication of the Resolution of Intention of the Applicant to apply for a loan. The Resolution must be published once a week for at least four (4) consecutive weeks in a newspaper having general circulation in the county; F. Upon receiving the results from publishing the Resolution of Intention, the Applicant must provide MDA with an execution Resolution of No Protest; G. Opinion of counsel from the public schools and/or local Applicant addressing the authority to borrow under the Loan Program and to pledge a tax base as collateral for such loan; and H. Most recent audited financial statements. I. Two (2) copies of the application must be submitted to MDA.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.9 Competitive Stipulations

Because funds are limited, applications will be accepted quarterly until allotted funds are expended or the 2017 bond sale deadline. To ensure funds are distributed effectively, applications will first receive an initial eligibility review, and then will be reviewed by a selection committee. This committee will score and rank the applications using the following factors: A. Project Evaluation and Team Experience -- 25 points i. Project staff demonstrated ability to successfully complete project and history of successfully meeting deadlines; ii. The degree to which the project concept demonstrates a sound methodology and approach that ensures all alternative fuel vehicles can be fueled by the alternative fuel; iii. A schedule is in place to complete the work proposed; iv. A policy will be in place to ensure drivers use the designated alternative fuel 75% of the time; v. The degree to which the application consists of eligible activities; and vi. The composition, qualifications and experience of the project team, including previous execution of similar projects. B. Rule 2.10 Economic Impact -- 25 points i. Demonstrates how project will impact or involve community; ii. The project will involve 10 or more vehicles; and iii. Demonstrates an opportunity for other fleets to expand its alternative fuel use. C. Environmental Benefit Points -- 30 Points i. Demonstrates a reduction in environmental emissions: Nitrogen oxide, Carbon Monoxide and other GHGs. a. 15-45% b. 45-79% c. 80-100% ii. Demonstrates a significant amount of petroleum consumption that will be avoided.

a. 25% b. 50% c. 75% or more

D. Financial Analysis Points -- 20 Points i. The cost-effectiveness of the project; ii. The submission of a feasible, justified project budget, broken down by category; iii. The project’s ability to obtain a positive return on investment over the lifetime of the project; iv. Product warranties; and v. Driver training. E. Project Leveraging – 25 Points i. Although matching is not required, extra points will be awarded to those projects that document leverage contributions in the total project cost. Cost share commitments to the total project from the applicant will be rated on a sliding scale basis as shown below: Amount Leveraged Possible Points 10% to 24% 5 25% to 49% 10 50% or greater 25 F. All requested changes and variances from the original application should be made in writing and will be reviewed by MDA on a case-by-case basis.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.10 General Loan Terms

Below are the maximum amounts which may be loaned from the Mississippi Alternative Fuel School Bus and Municipal Motor Vehicle Revolving Loan Fund to finance any one (1) project. Because loan periods differ, two (2) separate loans will be required for purchase of vehicles or retrofits and refueling infrastructure. The term and the repayment schedule will be established by MDA. The fixed rate of interest shall be zero percent (0.0%). A. Refueling Infrastructure: Five Hundred Thousand Dollars ($500,000); a term not to exceed fifteen (15) years. B. Vehicle Purchases and Retrofits: Three Hundred Thousand Dollars ($300,000); a term not to exceed seven (7) years.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.11 Penalties

In the event of a default on the loan, the municipality or school district shall be prohibited from participating in future loan programs or from receiving future loan proceeds administered by MDA until such time as the default is remedied and/or brought current.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.12 Default

The following event shall be considered default whenever used in these guidelines and shall mean the following: Failure by borrower to pay or cause to be paid when due, any loan payment required under the General Loan Terms and the loan agreement, and such failure continues for twelve consecutive (12) months.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.13 Delinquent Notice Process

Each loan agreement shall provide for (i) monthly payments, (ii) semi-annual payments, or (iii) other periodic payments. Invoices will be sent to the entity with an active loan, based upon the payment schedule. Payments are due on the first day of the month in which payments are scheduled to be made. Failure to submit timely payments may result in the following procedures: A. 30 days delinquent- The entity will receive a formal letter from MDA stating the minimum amount due to return the loan to good standing, the collection process with the office of the State Auditor and terms of the loan agreement. B. 60 days delinquent, MDA may issue the same letter with the new minimum amount due. C. 90 days delinquent, MDA may issue the same letter with the latest minimum due. D. 120 days delinquent- The entity will receive a formal warning letter from MDA allotting 30 days to bring the loan payments up to date before the entity is turned over to the state auditor. E. 180 days delinquent- MDA may request the State Auditor to audit the receipts and expenditures of the loan (Section 57-1-303(5)). If the State Auditor finds that the entity is in arrears in payments, the entity shall be denied eligibility in all future loan financing programs with MDA until such time as the entity is again current in its loan payments.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.14 Loan Closing

Based upon the terms and conditions established by MDA, MDA will prepare all loan documents, including but not limited to, the Loan Agreement and Promissory Note, (collectively “Loan Documents”). Prior to disbursement of any funds, all Loan Documents must be fully executed.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.15 Fees

At the time of the closing, the borrower will be responsible for providing to MDA a one percent (1%) origination fee. The Applicant will also be responsible for paying for all costs associated with the closing of the loan.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.16 Reimbursement Process

MDA will release loan funds on a reimbursement or services rendered basis for approved eligible costs of the project as incurred. The borrower shall certify to MDA that the expenses were incurred and were in accordance with the project as approved by MDA. Funds will be released periodically upon receipt of supporting documentations from the borrower based upon a schedule established by MDA.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.17 Audit

Loans made under the Revolving Loan Fund are subject to audit by the Mississippi Office of the State Auditor. Additionally, MDA will monitor all projects to ensure compliance with the original application submitted.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.18 Waiver

These guidelines may be amended by MDA at anytime. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

History

• Source: House Bill 1685, 2013 Regular Session.

6 Miss. Admin. Code Pt. 3, R. 2.19 Additional Information

Program inquiries and application should be directed to:

Mailing Address: Mississippi Development Authority Energy and Natural Resources Division P. O. Box 849 Jackson, Mississippi 39205-0849 Telephone: (601) 359-3449 Fax: (601) 359-6642 www.mississippi.org

Delivery Address: E. T. Woolfolk State Office Building, MDA – Energy and Natural Resources Division, 6 th Floor 501 North West Street Jackson, Mississippi 39201

History

• Source: House Bill 1685, 2013 Regular Session.

Chapter 3 Energy Infrastructure Revolving Loan Program

6 Miss. Admin. Code Pt. 3, R. 3.1 Purpose

The Mississippi Energy Infrastructure Revolving Loan Program (EIRLP), administered by the Mississippi Development Authority (“MDA”) is designed for making loans to counties and incorporated municipalities to finance energy infrastructure projects to promote

economic growth in the State of Mississippi. Funding for the loan program is derived from the issuance of state bonds. The State Legislature authorizes the Energy Infrastructure Revolving Loan Program during the 2013 regular session. See SB 2564, Regular Session 2013; Miss. Code Ann. §57-40-1 through 57-40-7 (1972, as amended).

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.2 Eligible Applicants

The application for assistance must be submitted by the governing authority of the county or an incorporated municipality.

6 Miss. Admin. Code Pt. 3, R. 3.3 Eligible Projects

Loans may be made to assist counties and municipalities in developing economic development projects that include a facility constructed after July 1, 2012, with a capital investment from private sources of not less than Fifty Million Dollars ($50,000,000.00). Energy Infrastructure is defined as, but not limited to: A. Electrical power network, including generation plants, electrical grid, substations, and local distribution; and B. Natural gas pipelines, storage and distribution terminals, as well as the local distribution network. C. Projects that are eligible for assistance must meet the below-listed criteria. i. Constructing, repairing or improving infrastructure related to a project, including, but not limited to, making a contribution in aid of construction to an energy- providing utility or cooperative for its constructing, repairing, improving and owning such infrastructure; and ii. Site preparation, related to a project on property owned by a county or municipality; and iii. Site preparation on property owned by the enterprise owning or operating a project.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.4 Project Requirements

A. The Applicant must be an incorporated municipality or a county; B. The Applicant must follow all state procurement and purchase laws. If an applicant has not advertised for bids within 120 days after receiving loan approval, the state will have the option to recall the funds; C. If two separate local units of government jointly fund a project, the Applicants must have an inter-local agreement with the Attorney General’s approval; D. The Applicant’s certified public accountant, auditor, or fiscal officer must verify on official letterhead that the financials reflect the applicant’s ability to repay the loan. The verification must include the source of repayment; E. The Applicant’s certified public accountant, auditor, or fiscal officer must furnish to MDA the most current annual audit and the latest financial summary reflecting any additional long-term debt or any changes in their financial position since the last annual audit was prepared; F. The Applicant must give public notice, as required. (All applicants must use the attached Public Notice and it must have been published within the last six months prior to

submittal of the loan application); G. Once the publication process is complete, a certified copy of the Applicant’s minutes must be submitted to MDA showing their decision to proceed with the loan; H. The Applicant must fulfill the requirements of the standard application, which must be submitted to MDA for review and acceptance; I. The Applicant must provide documentation verifying other funding sources, if applicable; J. Prior to the execution of a loan agreement, relevant parties to the project shall enter into an agreement, in a manner acceptable to MDA that stipulates the terms of the energy infrastructure investment and responsibilities among parties. Agreement can be defined as an MOU or similar acceptable document; K. Commitment Letter from private sources, if applicable; L. The project must meet all applicable local, state, and federal requirements, including obtaining any required Mississippi Public Service Commission’s approval prior to loan agreement being signed.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.5 General Loan Terms

The terms of the loan will be determined on a case-by-case basis, but must be reasonable and shall not exceed twenty (20) years. The loan amount allowed will be determined by the Applicant’s ability to repay the loan within acceptable terms. The loan amount cannot exceed one hundred percent (100%) of eligible costs as established by MDA.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.6 Additional Loan Terms

MDA may require county, municipal or private participation or funding from other sources, or otherwise limit the percentage of costs covered by loans from the revolving loan fund. MDA may establish a maximum amount for any loan. Loan repayments shall be deposited into the revolving loan fund. The fixed rate of interest will be three percent (3%). The rate of interest on all loan funds is calculated according to the actuarial method. Each loan agreement shall provide for (i) monthly payments, (ii) semiannual payments, or (iii) other periodic payments.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.7 Expenditure of Loan Funds

The Applicant will be required to expend all loan funds within two (2) years from the date of loan approval, unless a waiver is granted upon good cause shown.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.8 Liens

A county that receives a loan from the revolving fund shall pledge for repayment of the loan any part of the homestead exemption annual tax loss reimbursement to which it may be entitled under Section 27-33-77. An incorporated municipality that receives a loan from the revolving fund shall pledge for repayment of the loan any part of the sales tax revenue distribution to which it may be entitled under Section 27-65-75.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.9 Loan Application

The application to be submitted by an applicant must include: A. A detailed description of the project and narrative explaining how the specific improvements will affect economic development and/or job creation in the area, together with supporting documentation, to include a detailed map showing the location of the proposed project. Maps must explicitly correspond to the proposed scope of activities within the project. Applications must include a general vicinity map and a project specific map, including before and after pictures. B. Engineering Cost Estimates: Include a general cost estimate. Cost estimate must be submitted by an engineer or architect on their letterhead as a signed and stamped original. A limited amount of funds may be used for engineering/architectural cost. The amount of these professional services will be limited to an amount not to exceed 10% of the loan award amount. C. The estimated cost of the total project with a detailed breakdown of all public and private sources of funding. D. The time schedule for implementation and completion of the project, evidencing an expeditious completion of the project. E. Submit company balance sheets, income statements and statements of cash flow for the previous three (3) fiscal years and current statements dated within ninety (90) days of application or a letter of credit, from a federally insured financial institution. F. A statement of willingness to comply with non-discrimination and equal employment opportunity requirements. G. Signed Source and Use of Funds Disclosure Form. H. No approved applicant will be allowed to use excess funds to pay for the project costs that vary from the original project description. I. All requested changes and variances from the original application should be made in writing and will be reviewed by MDA on a case by case basis. J. Submit a complete Budget Sheet.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.10 Application Format

Two (2) copies of the application must be submitted to MDA. Complete applications must be submitted with BOTTOM TABBED DIVIDERS IN BETWEEN EACH ATTACHMENT. All documentation should have original signatures. MDA will evaluate the application to determine if the project meets program criteria.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.11 Application Process

Any local entity seeking funding should contact an MDA Global Division or Existing Industry & Business Division’s project manager. After the initial evaluation determines the project meets MDA standards, they will contact the Energy and Natural Resources (ENR) Division to discuss the project. Then upon request, the local entity should send the following information to ENR: A. Project Proposal

B. Engineering cost estimate C. Budget page

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.12 Loan Closing

Based upon the terms and conditions established by MDA, MDA will prepare all security and loan documents, including but not limited to, the Loan Agreement and Promissory Note, (collectively “Loan Documents”). Prior to disbursement of any funds, all Loan Documents must be fully executed. The loan documents will be executed between the local entity and MDA. All funds will flow through the local entity.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.13 Reimbursement Process

MDA will release loan funds on a reimbursement or services rendered basis for approved eligible costs of the project as incurred. The applicant shall certify to MDA that the expenses were incurred and were in accordance with the project as approved by MDA. Funds will be released periodically upon receipt of supporting documentations from the applicant based upon a scheduled established by MDA. A. Local entities will have three (3) years from the date of the agreement to request reimbursement for funds. Failure to implement and complete the project may result in the agreement being voided and funds de-obligated.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.14 Site Visits

MDA staff will make periodic site visits throughout the project. MDA staff will give at least one week notice of any upcoming site visit.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.15 Audit

Loans made under the Energy Infrastructure Revolving Loan Program are subject to audit by the Mississippi Office of the State Auditor. Additionally, MDA will also monitor all projects to ensure compliance with the original application submitted.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.16 Penalties

An Applicant which fails to meet repayment obligations shall cause all or part of its sales tax allocation and/or homestead exemption reimbursement to be withheld and may be subject to other penalties pursuant to Miss. Code Ann. § 57-1-303(4)).

6 Miss. Admin. Code Pt. 3, R. 3.17 Delinquent Notice Process

Each loan agreement shall provide for monthly payments, semi-annual payments, or other periodic payments. Invoices will be sent to communities with an active loan based upon the payment schedule. Payments are due on the first day of the month in which payments are scheduled to be made. Failure to submit timely payments may result in the following procedures: A. If a community is 30 days delinquent, MDA may issue a letter stating the catch- up amount, terms of their loan agreement and explain the process for turning

collection over to the State Auditor. B. If a community is 60 days delinquent, MDA may issue the same letter with the new catch-up amount. C. If a community is 90 days delinquent, MDA may issue the same letter with the new catch-up amount. D. If a community is 120 days delinquent, MDA may issue a letter stating in 30 days if catch-up payment amount has not been received, then MDA will turn the community over to the state auditor. E. If a community is 180 days delinquent, MDA may request the State Auditor to audit the receipts and expenditures of the loan (Section 57-1-303(5)). If the State Auditor finds that the county or municipality is in arrears in payments, he shall immediately notify the Executive Director of the Department of Finance and Administration who shall withhold all future payments to the county of homestead exemption reimbursements under Section 27-33-77 and all sums allocated to the county or the municipality under Section 27-65-75 until such time as the county or the municipality is again current in its loan payments as certified by the Mississippi Development Authority.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.18 Waiver

These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

6 Miss. Admin. Code Pt. 3, R. 3.19 Authority

The Energy Infrastructure Revolving Loan Program is authorized under Miss. Code Ann. § 57-40-1 et. seq. (1972, as amended).

Chapter 4 Energy Savings Performance Contracting Policies and Procedures

6 Miss. Admin. Code Pt. 3, R. 4.1 Purpose

Mississippi Development Authority (MDA) promulgates the following policy and procedures in accordance with Section 31-7-14 of the Mississippi Code of 1972, as amended, to provide for the approval of “energy saving performance contracts” (ESPC) and “shared savings contracts” between public entities and Energy Service Companies (ESCO) wherein energy savings and related cost savings are guaranteed over a period of time not to exceed 20 years by the performance contractors.

History

• Source: Miss. Code Ann. §31-7-14 (Supp. 2015).

6 Miss. Admin. Code Pt. 3, R. 4.2 Responsibility

MDA-Energy and Natural Resources Division (MDA-ENRD)’s role in evaluating “energy saving performance contracts” and “shared savings contracts” under Section 31-7-14 (4) (b) is to ensure that entities can rely upon projected and guaranteed energy savings and related cost savings. Consequently, these policies and procedures for “energy saving performance contracts” and “shared savings contracts” are developed in order for MDA-ENRD to make determinations that contracts conform to the law.

History

• Source: Miss. Code Ann. §31-7-14 (Supp. 2015).

6 Miss. Admin. Code Pt. 3, R. 4.3 Contracts within MDA’s Purview

Contracts authorized in Section 31-7-14 (4) (b) differ from “energy services contracts” authorized in Section 31-7-14 (1) (b) that do not require MDA- ENRD involvement and do not require energy or cost savings to be guaranteed. Projects where there are minimal scientifically quantifiable and measurable energy savings, i.e., MDA-ENRD’s expertise is not required, may be pursued under this Section 31-7-14 (1) (b) as “Energy Services Contract.”

6 Miss. Admin. Code Pt. 3, R. 4.4 General Contract Construction

MDA-ENRD will construe proposed contracts submitted pursuant to 31-7-14(6) so that economic benefits to the entity may be maximized.

History

• Source: Miss. Code Ann. §31-7-14 (Supp. 2015).

6 Miss. Admin. Code Pt. 3, R. 4.5 Energy Savings or Shared Savings Contracts

Any state agency or local governing authority (entity), as defined in Section 31-7-1 subparagraphs (a) and (b) respectively of the Mississippi Code of 1972, as amended, may contract on a shared savings or energy saving performance contract basis for: (i)energy efficiency equipment; (i) services relating to the installation, operation or maintenance of equipment; (ii) improvements reasonably required to existing or new equipment and existing or new improvements and facilities; and (iii)alternative fuel motor vehicles including vehicles that have been converted to such and ancillary equipment related to or associated with the fueling of alternative fuel motor vehicles.

History

• Source: Miss. Code Ann. §31-7-14 (Supp. 2015).

6 Miss. Admin. Code Pt. 3, R. 4.6 Multiple Contracts

Section 31-7-14 does not prohibit an entity from entering into a companion “energy services contract” at the same time it enters into an “energy savings performance contract” or “shared savings contract.” Any such dual-purpose contract must clearly state its dual nature under the law and distinguish the guaranteed portion by including a separate scope of work for such contract as a specific addendum.

History

• Source: Miss. Code Ann. §31-7-14 (Supp. 2015).

6 Miss. Admin. Code Pt. 3, R. 4.7 Energy Saving Performance Contract/Shared Savings Contract Defined

An “energy saving performance contract” or “shared savings contract” means an agreement to provide energy services which include, but are not limited to, the design, installation, financing and maintenance or management of the energy systems or equipment in order to improve its energy efficiency.

History

• Source: Miss. Code Ann. §31-7-14 (Supp. 2015).

6 Miss. Admin. Code Pt. 3, R. 4.8 Rule 4.8

The total “energy saving performance contract” or “shared savings contract” may not have a payback period longer than 20 years. Individual Energy Conservation Measures (ECMs)

may have payback periods longer than 20 years; however, the combined payback for the ESPC must be less than or equal to 20 years. Per Section 31-7-14, Miss. Code, the useful life of each energy system or equipment shall meet or exceed the term of the contract to be considered an eligible measure. Eligible ECMs are any type of project or technology implemented to reduce the consumption of energy systems or equipment. ECMs should provide long-term operation cost reductions or significantly reduce energy and/or water consumed.

History

• Source: Miss. Code Ann. §31-7-14 (Supp. 2015).

6 Miss. Admin. Code Pt. 3, R. 4.9 Guaranteed Savings

The energy savings plus related cost savings are guaranteed by the ESCO and must be used to repay the cost of the project. The guaranteed savings must be more than sufficient to pay the total costs of the project over the guarantee period. The terms of any shared savings or energy saving performance contract entered into must contain a guarantee of savings clause from the performance contractor.

History

• Source: Miss. Code Ann. §31-7-14 (Supp. 2015).

6 Miss. Admin. Code Pt. 3, R. 4.10 Shared Savings Contract/Energy Saving Performance Contract Differences

A “shared savings contract” differs from an “energy saving performance contract” in that the ESCO and the entity each receive a pre-agreed percentage or dollar value of the energy cost savings over the life of the contract, rather than the contractor receiving a fee.

History

• Source: Miss. Code Ann. §31-7-14 (Supp. 2015).

6 Miss. Admin. Code Pt. 3, R. 4.11 Contractual Terms

(A) The terms of any performance contract or shared savings contract for efficiency services and equipment entered into under this section shall not exceed 20 years.

(B) All contracts must contain the following annual allocation dependency clause:

The continuation of this contract is contingent upon the appropriation of funds to fulfill the requirement of the contract by the Legislature or other budgeting authority. If the Legislature or other budgeting authority fails to appropriate sufficient monies to provide for the continuation of the contract, the contract shall terminate on the last day of the fiscal year for which appropriations were made. The termination shall be without penalty or expense to the entity of any kind whatsoever, except as to the portions of payments for which funds were appropriated.

(C) All contracts must contain a provision for termination of the contract for cause.

(D) All contracts must contain a provision for termination for convenience by the entity.

History

• Source: Miss. Code Ann. §31-7-14 (Supp. 2015).

6 Miss. Admin. Code Pt. 3, R. 4.12 Program Requirements and Definitions

(A) “Eligible Energy Conservation Measures (ECMs)” are energy systems or equipment listed below: (i) heating, ventilation, and air conditioning systems; (ii) lighting; (iii) windows; (iv) insulation; (v) energy management controls; (vi) life safety measures that provide long-term operating cost reductions; (vii)building operation programs that reduce operating costs; (viii)renewable energy systems and equipment; (ix) water conservation systems and equipment, including accuracy and measurement of water distribution and/or consumption; (x) facilities improvements or enhancements directly related to the above; (xi) alternative fuel motor vehicles including vehicles that have been converted to such and ancillary equipment related to or associated with the fueling of alternative fuel vehicles; and (xii)other equipment, services and improvements providing energy efficiency as determined by the division.

(B) Energy Cost Savings: a reduction in the costs related to “Energy Services” or “Energy Efficient Services” as defined in Section 31-7-14 (1)(a)(iii) and 31-7-14 (1)(a)(vii) of the Mississippi Code of 1972, as amended. Energy Cost Savings are a reduction in the cost of energy, renewable energy, water and other natural resources conservation and must be verifiable. Energy cost savings are generally recurring savings - savings that occur year after year.

(C) Allowable cost savings may also include savings from the elimination of future expenses and from the avoidance of future replacement expenditures as a result of new equipment installed or services performed.

(D) Guaranteed energy savings plus verifiable guaranteed related cost savings achieved by the project shall be sufficient to cover all project costs, including annual maintenance and monitoring fees, guarantee fees, and contractor fees.

(E) For “energy saving performance contracts” and for “shared savings contracts,” MDA- ENRD defines “energy savings plus related cost savings” as scientifically quantifiable and verified measurable savings from energy and/or water usage reductions plus cost savings from related operations and maintenance reductions and other cost-avoidance measures.

(F) Energy Related Cost Savings: a reduction in expenses (other than energy cost savings) related to energy-consuming equipment, generally related to equipment operations, maintenance, renewal, replacement, repair expenses, or avoided capital costs. Energy related cost savings shall be verified to be considered part of the ESPC.

i. Operation and Maintenance (O&M) Savings: a reduction in operation and maintenance costs associated with the equipment. Accompanying documentation, such as invoices of previous repair costs, must be submitted along with detailed calculations and descriptions. O&M savings should only be captured in the applicable years and during the lifetime of the particular equipment. Elimination of maintenance contracts is allowable if verifiable. ii. Capital Cost Avoidance (CCA): a cost reduction generated by avoiding planned future capital expenditures, either for equipment replacement or services performed. CCA on equipment that is being purchased and replaced through the ESPC rather than in the future is calculated by taking the difference between what it would have cost to implement the project in the future and the current costs of that equipment replacement under the ESPC. For additional CCA calculations, it is recommended that a Life Cycle Cost Assessment (LCCA) be used to monetize the non-energy benefits. USDOE (2005) defines life-cycle costs as “...the sum of present values of investment costs, capital costs, installation costs, energy costs, operating costs, maintenance costs, and disposal costs over the lifetime of the project, product, or measure.” Cost avoidance can be captured as a one-time benefit or normalized over the term of the performance contract. iii. Material Savings: a reduction in costs associated with parts and materials purchased for existing energy-consuming systems. These are allowable as long as the initial values can be determined and verified. iv. Labor Savings: a reduction in personnel associated with the operations and maintenance of the energy-consuming system. It will not be considered by MDA-ENRD unless a job is eliminated and staff is released. Even if someone is assigned different responsibilities, that money is not eliminated from the budget and therefore not available as savings.

(G) Simple Payback Period (SPP): the length of time required to recover the costs of the ESPC investments through energy and related cost savings. The combined simple payback period shall not exceed 20 years, although an individual ECM can have a payback longer than 20 years. SPP is calculated by diving the value of the initial investment by the projected annual energy cost savings. SPP is usually given in years and/or tenths of a year.

The simple payback formula is:

Simple Payback SPP (years) = I _ _ _ _ _ _ _ _ _ ES/year Where, SPP = Simple payback period I = Initial investment ES/year = Projected annual energy savings at current prices

(H) Useful Life: the length of time over which equipment can be depreciated. Per Section 31-7-14, Miss. Code, each energy system or equipment useful life shall meet or exceed the term of the contract to be considered an eligible measure.

(I) MDA-ENRD will check to ensure warranty time periods has been captured correctly where applicable.

(J) Verification of savings means MDA-ENRD shall verify all projected savings in an ESPC. Projected savings that are not quantified, measured and verified will not be considered as part of the ESPC. Supporting documentation, including detailed narratives and graphs/charts shall be submitted with each proposed project.

History

• Source: Miss. Code Ann. §31-7-14 (Rev. 2015).

6 Miss. Admin. Code Pt. 3, R. 4.13 ESPC Issuance and Approval Process

(A) Any entity desiring to enter into a contract for energy efficiency equipment, services relating to the installation, operation or maintenance of equipment, or improvements reasonably required to existing or new equipment and existing or new improvements and facilities on a shared savings basis or performance contracting basis, shall issue a Request for Qualifications (RFQ) in the manner prescribed in Section 31-7-14 (1) (b) of the Mississippi Code of 1972, as amended. It is recommended that the entity use the RFQ template located in the MDA Energy Savings Performance Contracting Manual.

(B) The entity shall notify the MDA-ENRD in writing in advance of its determination to issue an RFQ to develop an Energy Saving Performance Contract or a Shared Savings Contract project.

(C) The entity may request, at its discretion, that the MDA-ENRD reviews its RFQ before it is published, but if not, the RFQ must be forwarded to MDA after it has been published.

(D) Any entity intending to contract for a shared savings or energy saving performance contract for energy services must advertise once each week for two (2) consecutive weeks in a regular newspaper published in the county or municipality in which such entity is located. On the same date that the notice is submitted to the newspaper for publication, the agency or governing authority involved shall mail written notice to or provide electronic notification to the main office of the Mississippi Procurement Technical Assistance Program under the Mississippi Development Authority that contains the same information as that in the published notice.

(E) The MDA-ENRD shall review each contract pursuant to code 31-7-14 (4) (b) and approve those it determines to be in compliance with the code, this policy, and these guidelines.

(F) No energy saving performance contract or shared savings contract shall be valid until approved by the MDA-ENRD in writing.

(G) The MDA-ENRD will not approve any energy saving performance contract or shared savings contract that does not generate verified quantifiable and measurable energy and/or operating costs savings as defined above.

(H) Project documentation must be submitted to the MDA- ENRD for review and comment. The documents to be submitted include: 1) Technical Energy Analysis; 2) final contract, and 3) Measurement and Verification (M&V) Plan. If any of the above listed documents are not submitted together, MDA-ENRD will not accept the project and will send a letter to the governmental entity to inform them that the review process will not begin until all required documents are submitted.

(I) Contracts submitted to MDA-ENRD shall be signed by both parties. Unsigned or partially signed contracts will be returned to the governmental entity. The governmental entity shall submit documentation of board or council approval of the submittal of the proposed project to MDA-ENRD for review with the project packet.

(J) The use of a 3rd party engineer or engineering firm to specifically review M&V is a requirement for state agencies with energy savings performance contracts. Third party review is optional for other public entities, but it is highly recommended. The third party reviewer must be chosen by the entity without input from the ESCO. The 3rd party reviewer must be neutral and the review of M&V must be paid out of the savings, not paid by the ESCO or the governmental entity.

(K) The Technical Energy Analysis must be signed and stamped by a professional engineer registered and licensed to practice in Mississippi.

(L) The MDA-ENRD initial review process will begin and commence immediately upon receiving a complete set of documents in our office or via email. MDA-ENRD will send written correspondence to the governmental entity acknowledging receipt of review documents.

(M) MDA-ENRD will attempt to complete review within forty-five (45) days of receipt of a complete package as outlined in (viii) above; however, this is heavily dependent on the responsiveness of the entity and ESCO to questions posed throughout the review process.

(N) The entity will be provided in writing any questions and comments raised by the MDA- ENRD during its review process. The entity will be required to respond to these questions and comments in writing within ten (10) business days. Although it is the intent of MDA-ENRD to work with an entity to resolve any issues in a timely manner, if MDA-ENRD has not received a response from a review report after fourteen (14) business days, a decision on the remaining issues will be made based on the latest available data.

(O) Direct communication (i.e., meetings, phone conferences, etc.) with the third party is acceptable – only with the governmental entities written consent and if it will be beneficial to clarify or resolve any issues that may arise during the resolution process.

(P) Upon completion of the review process, the MDA-ENRD will issue a letter signed by the MDA-ENRD director, indicating approval or denial of the proposed project. The final contract shall be approved by MDA-ENRD, in accordance with 31-7-14 (4) (b) of the Mississippi Code of 1972, as amended.

(Q) If a project is denied, a letter will be issued indicating the project failed to meet 31-7-14 of the Mississippi Code of 1972, as amended, and/or the policy and procedures as set forth in the Mississippi Performance Contracting Policy and Procedures Manual. A denial letter will end the review process of the proposed project. A governmental entity must restart the performance contracting project process (see AppendixA-3) if it is still interested in an ESPC.

(R) Appeals Process: Entities will be given ample opportunity to provide explanations to questions from MDA-ENRD in an attempt to reach a favorable conclusion during the review process. A final determination will stand unless the entity can substantiate that MDA-ENRD did not follow 31-7-14 of the Mississippi Code of 1972, as amended, and/or the policy and procedures as set forth in the Mississippi Performance Contracting Policy and Procedures Manual. In the event that the entity believes MDA-ENRD failed to follow the Section 31-7-14 or the policies and procedures of this program, the entity will send a letter to the MDA executive director documenting its reasons that the law and/or policies were not followed. The MDA executive director, or his designee, will make a decision as to whether to re-open the review process or to affirm the decision by MDA-ENRD. The executive director, or his designee, can only reopen the review process if there is clear documented evidence that the law or policies were not followed.

(S) Annual Energy Savings Reports are also required and must be submitted to the MDA- ENRD within 60 days of the date the reports are received by the entity. It is the responsibility of the ESCO to submit the annual reports to MDA-ENRD.

History

• Source: Miss. Code Ann. §31-7-14 (Rev. 2015).

Chapter 5 Energy Efficiency Standards for Buildings Rule 5.1 Purpose. The Mississippi Development Authority (MDA) is tasked with adopting energy code standards for buildings, except low-rise residential buildings, in accordance with Standard 90.1-2016 of the American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE), for building construction, standards for computer-based energy management systems, standards for systems for cogeneration of heating, cooling and electricity, and standards for design to use passive solar energy concepts, in order to promote the efficient use of energy.

6 Miss. Admin. Code Pt. 3, R. 5.2 Adoption by Reference

MDA hereby adopts by reference ASHRAE Standard 90.1- 2016. A copy of the incorporated Standard 90.1-2016 is available on ASHRAE’s website, www.ashrae.org.

Contact Information:

Mississippi Development Authority Attn: Energy and Natural Resources Division P.O. Box 849 Jackson, MS 39205 (601) 359-3449

Adopted: January 31, 2024

History

• Source: Miss. Code Ann. § 57-39-21.

Part 4 Community Service

Chapter 1 Small Municipal and Limited Population County Grant Program (SMLPC)

6 Miss. Admin. Code Pt. 4, R. 1.1 Purpose

The Mississippi Small Municipal and Limited Population County Grant Program (SMLPC), administered by the Mississippi Development Authority (MDA), is designed for making grants to small municipalities and limited population counties or natural gas districts (“Local Sponsors”) to finance projects to promote economic growth in the State of Mississippi (“State”). Funding for grants to Local Sponsors is derived from appropriations or funds otherwise made available by the State Legislature.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 1.2 Selection Priorities

The mission of the Mississippi Development Authority is “To foster a strong state economy and vibrant communities through innovation, use of talent and resources to improve our citizens’ lives.” A. The selection process will provide priority consideration to those applications that directly relate to the agency mission of fostering a strong economy and vibrant communities. MDA will prioritize applications that promote private sector permanent non-construction job creation and/or retention and promote private sector capital investment. B. Community projects that have a jurisdiction-wide benefit will be prioritized over projects that simply serve a confined portion of the community.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 1.3 Eligibility

A small municipality or a limited population county must submit an application to MDA. An eligible municipality, county and gas district is defined as follows: A. Small Municipality: a municipality with a population of 10,000 or less, according to the most recent federal decennial census, at the time the application is submitted by the municipality. The term “small municipality” also includes a municipal historical hamlet as defined in Section 17-27-5 of the Mississippi Code of 1972. B. Limited Population County: a county with a population of 30,000 or less, according to the most recent federal decennial census, at the time the application is submitted by the municipality. C. Natural Gas Districts: districts created by law and meeting the same requirements as small municipalities.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 1.4 Eligible Projects

Eligible projects financed with Mississippi Small Municipal and Limited Population County Grant Program funds must be publicly owned. All contracts and purchases must be made in accordance with normal bid and purchase laws of a municipality or

county. Eligible projects include, but are not limited to: Eligible publicly owned projects according to program selection priorities include, but are not limited to A. Priority 1: Economic development-related improvements to include water, sewer, street and drainage improvements for the benefit of site development, industrial parks, business districts, tourism destinations, and projects that improve the competitiveness of a community. B. Priority 2: Downtown improvements to include: sidewalks, lighting, façade improvements, beautification improvements (waste receptacles, stop signs, street signs, landscaping, awnings, etc.), and other downtown improvements as approved by MDA. C. Priority 3: Non-economic development related water, sewer, street and drainage improvements. D. Priority 4: Purchase, construction or rehabilitation of public buildings to include: town halls, libraries, police stations, fire stations, community centers, courthouses, other publicly owned buildings as approved by MDA.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 1.5 Restrictions

SMLPC funds may not be used for working capital, for general expenditures, which would normally be covered under a local sponsor's general operation budget, or for project related soft costs such as administrative, engineering, architectural, inspection, legal, etc. . . expenses. SMLPC projects may not start prior to Grant Agreements being awarded. MDA will not pay for ad valorem taxes on any SMLPC projects. All contracts and purchases must be made in accordance with normal bid and purchase laws of a municipality or county.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 1.6 Competition

The SMLPC Program is a competitive program. As such, all funds awarded must be spent for improvements within the scope of the original project description as stated in the grant application. Additionally, if grant recipients complete their project for less than the grant amount awarded, the excess funds can be requested for additional project work as long as there is no change from the scope of the original project. In no case, however, will an approved applicant be allowed to use excess grant funds to pay for project costs that vary from the original project description.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 1.7 Changes to Original Application

All requested changes and variances from the original application should be made in writing and will be reviewed by MDA on a case-by-case basis.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 1.8 Application to the Program

To apply for the Small Municipal and Limited Population County Grant Program, a completed application that is submitted by a Local Sponsor must include:

A. Purpose of the proposed grant including a list of eligible items and the cost of each and explain how the proposed project relates to Economic Development/Community Development priority/master plan; B. The estimated cost of the total project, a description of the Local Sponsor's investment in the project, and all public or private sources of funding that have been secured and that will be utilized exclusively for the project; C. Time schedule for implementation and completion of the project, evidencing an expeditious completion of the project; D. Engineering documentation (must be on the engineer’s letterhead, with his stamp/seal and signature; E. Current employment levels at the project site and estimated increase, if any, as a result of financing the project; F. Executed copy of the Local Sponsor's resolution of authorization to apply for grant funds (Mayor/President of Board of Supervisors); and G. Executed copy of the Local Sponsor’s resolution committing matching funds to the project, if applicable; H. One (1) original of the application must be submitted to the Community Services Division of MDA, Small Municipal and Limited Population County Grant Program, Post Office Box 849, Jackson, Mississippi 39205 or hand-delivered to the 5th floor of the Woolfolk Office Building. I. It should be noted that the Executive Director of “MDA” might in his discretion commit grant funds to projects prior to the application deadline. Such commitments would be made only if a specific project is involved and timing of the grant award would have a direct effect on the location or expansion of the project. J. The complete application must be submitted in a legal- sized dark blue classification folder (2 dividers) and each section bottom tabbed. All documentation must have original signatures and original pictures. This application should not be modified from its original format. Any application that does not contain information sufficient to permit review will not be considered for funding.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 1.9 General Grant Terms

A. The program intent is to stimulate growth and economic development in small communities in the State. Each application will be evaluated on its own merit to meet the intent of the program. B. The project must be related to MDA eligible priorities. C. The maximum grant amount, which may be awarded to any one Local Sponsor, will be $150,000. D. Applications will be due by June 18, 2015 by 4:00 pm, MDA time. E. Communities with a population of 3,500 or less will be required to have at least a 10% match. The 10% match does not have to be cash only. Documented project related soft costs such as administrative, engineering, architectural, inspection, legal, etc . . . are acceptable match requirements. F. Communities with a population greater that 3,500 will be required to have at least a 20% match. The 20% match does not have to be cash only. Documented project

related softs costs such as administrative, engineering, architectural, inspection, legal, etc . . . are acceptable for match requirements. G. If a community has any open SMLPC grants they are not eligible to submit another application. In addition, if the open SMLPC grant is not at least 50% expended at the time of application submittal, then they are not eligible to submit. An acceptable close-out package must be submitted before submitting an application.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 1.10 Conditions for Disbursement of Funds

A. A Grant Agreement will be executed between the Local Sponsor and MDA. A grant agreement must be signed before request for cash can be processed. B. All funds will flow through the Local Sponsor. C. MDA will release SMLPC Program funds on a reimbursement basis, for approved eligible costs of the project. D. The municipality or county shall certify to MDA during construction that the expenses were incurred and were in accordance with the application approved by MDA. E. Funds will be released upon receipt of the SMLPC Program Request for Cash and supporting documentation from the local unit of government. F. The municipality or county have two years from the date of the award to expend the funds under the SMLPC Program. G. Failure to implement and complete the project may result in the grant being voided and funds de-obligated.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 1.11 Reimbursement Process

MDA will release SMLPC program funds for services rendered or on a reimbursement basis for approved eligible costs of the project as incurred. The Local Sponsor shall certify to MDA during construction that the expenses were incurred and were in accordance with the plans and application approved by MDA. Funds will be released upon receipt of the SMLPC Program Form of Requisition and supporting documentation from the Local Sponsor. Funds may only be drawn down once a month. Local Sponsors have two (2) years from the date of the Grant Agreement to request reimbursement for SMLPC project costs.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 1.12 Business Participation/Outreach

The Mississippi Development Authority (MDA), Community Services Division (CSD) encourages maximum opportunity for increased participation by local Minority and Women-Owned Business Enterprises (MBE/WBE) in the procurement of goods and services. The Mississippi Development Authority Minority Business Division at www.mississippi.org and the Mississippi Procurement Technical Center at www.mscpc.com can assist with MBE/WBE outreach efforts.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 1.13 Audit/Monitoring

Funds provided under the Small Municipalities and Limited Population Grant Program are subject to audit by the State Department of Audit. Additionally, MDA will also monitor all projects to ensure compliance with the original application submitted.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 1.14 Waiver

These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State law.

History

• Source: Miss. Code Ann. § 57-1-18 (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 1.15 Additional Information

A. Mississippi Development Authority The Small Municipalities and Limited Population Counties Grant Community Services Division Attn: Patricia Turner Post Office Box 849 Jackson, Mississippi 39205 Telephone: (601) 359-9316/Fax: (601) 359-3108

Chapter 2 Rural Impact Fund Grant Program (RIF)

6 Miss. Admin. Code Pt. 4, R. 2.1 Purpose

The Mississippi Rural Impact Fund Program (RIF) administered by the Mississippi Development Authority (MDA) is designed to assist and promote businesses and economic development in rural areas by providing grants and loans to rural communities (Local Entities) and loan guarantees to rural businesses (Businesses). Funding for grants and loans to Local Entities and loan guarantees to businesses is derived from appropriations or funds otherwise made available by the State Legislature. The State Legislature enacted the RIF during the 2003 regular session. (See H.B. 1335).

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 2.2 Eligibility

A rural community must submit an application to the MDA. An eligible rural community and business are defined as follows: A. Rural Community: a municipality with a population of 10,000 or less, according to the most recent federal decennial census, at the time the application is submitted by the municipality; or, a county with a population of 30,000 or less, according to the most recent federal decennial census, at the time the application is submitted by the county. B. Rural Business: means a new or existing business located or to be located in a rural community; or, a business or industry located or to be located within five miles of a rural community.

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 2.3 Eligible Projects

Eligible projects financed with RIF must be publicly owned with the exception of loan guarantees to rural businesses. All contracts and purchases must be made in accordance with normal bid and purchase laws of a municipality or county. Eligible projects include, but are not limited to: A. Construction, rehabilitation or repair of building; B. Sewer systems and transportation directly affecting the site of the proposed rural business; C. Sewer facilities; D. Acquisition of real property, development to real property, improvements to real property; E. Any other project approved by MDA, and F. Loan guarantees to Rural Businesses not to exceed eighty percent (80%) of the principal loan amount.

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 2.4 Ineligible Projects

Gaming and utility businesses.

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 2.5 Soft Cost

Eligible Projects must have a direct connection in creating jobs. RIF may be used for general expenditures in an amount not to exceed three percent (3%). (For example: $250,000 x .03 = $7,500). A limited amount of funds may be used for engineering, architectural, attorneys, consultants, agents and /or advisors costs. The amount of these professional services will be limited to an amount not to exceed eight percent (8%) of the RIF award amount. All funds awarded must be spent for improvements within the scope of the original project description as stated in the grant or loan application. Additionally, if grant or loan recipients complete their project for less than the amount awarded, the excess funds will be returned to MDA. All requested changes and variances from the original application for the projects awarded must be made in writing and will be reviewed by MDA on a case-by-case basis.

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 2.6 Rural Community Application

The application that is submitted by a local entity must include: A. Purpose of the proposed grant and/or loan including a detailed list of the request; B. A Description of the proposed project; C. The estimated cost of the total project by major category (e.g. engineering, legal, administration, etc.) and all public or private sources of funding that have been secured that will be utilized exclusively for the project; D. A time schedule for implementation and completion of the project, evidencing an expeditious completion of the project; E. A statement that the specific project will create at least five jobs along with an F. estimated number of jobs to be created; F. Engineering or architectural documentation where applicable;

G. The municipality or county's most recent unemployment rate at the time of application submission; H. A copy of the Rural Community's Resolution of Authorization to apply for funds; I. A statement reflecting how the project will be managed, and who will manage it; J. Applications for loan guarantees must include the requested loans terms, reasonable interest rates, collateral position, and requested percentage of loan guarantee. The loan terms, the interest rate, and the percentage of loan guarantee will be based on the number of jobs created and the financial position of the rural business.

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 2.7 Rural Business Application

For Rural Business Loan Guarantees, the business must provide the following: A. Credit reports and personal income tax records on all investors with twenty percent (20%) or more investment in the company; B. A description of the collateral with the appraised value, acquisition price and the expected life of the collateral; C. The last three years of the company's annual audit, financial statements and tax returns; D. For start-up companies, a business plan, three years of monthly proformas financial statements will be required, and E. Corporate and personal guarantees.

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 2.8 Application Process

Initially, any local unit of government seeking funding should set up a meeting or conference call with the RIF staff. At this meeting or conference call, the following information should be presented: A. Project description B. Preliminary budget C. Source and use of funds Based on this meeting or conference call, the Community Services Division (CSD) may issue a letter inviting a RIF application. The letter will state the amount of RIF funds that can be applied for, and the requirements.

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 2.9 Selection Process

The process used for evaluating, selecting, and funding applications is based on the following: A. Eligibility B. Project readiness C. Company's financial condition One (1) original and one (1) copy of the application must be submitted to the Community Services Division of MDA, Rural Impact Fund Grant Program, 5 th Floor Woolfolk Office Building, 510 North West Street, Jackson, MS. Applications will be accepted starting May 1, 2003. It should be noted that the Executive Director of MDA may at his discretion commit Rural

Impact Funds to projects prior to an application being submitted to MDA, if a specific project is involved and timing of the award would have a direct effect on the location or expansion of the project. All projects funded should create a minimum of five (5) new jobs. A Rural Community may submit up to two applications during a calendar year; however, efforts will be made to fund projects representing all areas of the state.

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 2.10 General

The program intent is to stimulate job creation and economic development in rural communities in the State. A grant amount of $250,000 or a loan amount of $350,000 will be the maximum for any rural community. A maximum of $350,000 will be allowed on 80% loan guarantees to rural business(es). Each application will be evaluated on its own merit to meet the intent of the program.

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 2.11 Conditions for Disbursement of Funds

A Grant and/or Loan Agreement will be executed between the Rural Community/Business and MDA. The Agreement must be signed within one month of the grant award date. MDA will release Mississippi Rural Impact Program funds for services rendered, or on a reimbursement basis, for approved eligible costs of the project, as incurred. The Rural Community shall certify to MDA during construction that the expenses were incurred and were in accordance with the plans and application approved by MDA. Funds will be released upon receipt of the Mississippi Rural Impact Program Request for Cash and supporting documentation from the rural community. Funds may not be disbursed more frequently than monthly. Rural communities have one year from the date of the award to expend the funds under the Mississippi Rural Impact Program.

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 2.12 Audit

Funds provided under the Mississippi Rural Impact Program are subject to audit by the State Department of Audit. Additionally, MDA will also monitor all projects to ensure compliance with the original application submitted. MDA intends to use up to three percent (3%) of the Rural Impact Funds available to hire staff to monitor funded projects and provide technical assistance.

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

6 Miss. Admin. Code Pt. 4, R. 2.13 Waiver

These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State law.

History

• Source: Miss. Code Ann. § 57-85-1 et seq. (Rev. 2008)

Chapter 3 Local Governments Capital Improvements Revolving Loan Program (CAP)

6 Miss. Admin. Code Pt. 4, R. 3.1 Purpose

The Local Governments Capital Improvements Revolving Loan Program (“CAP”) administered by the Mississippi Development Authority (“MDA”) is designed for making loans to counties or municipalities (“Applicant”) to finance capital improvements in Mississippi. Applicants are encouraged to use these loans in connection with state and federal programs. Funding for loans to Applicants is derived from the issuance of state bonds. The State Legislature enacted CAP during the regular 1994 session. (See Section 57-1-301 through 57-1- 335 et seq., Mississippi Code, Annotated.)

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.2 Eligibility

Application for assistance must be submitted by the governing authority of the county or an incorporated municipality.

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.3 Eligible Projects

Projects that are eligible for assistance must be for capital improvements in Mississippi's counties and municipalities: A. Construction or repair of water and sewer facilities; B. Construction or repair of drainage systems for industrial development; C. Improvements in fire protection; D. Construction of new buildings for economic development purposes; E. Renovation or repair of existing buildings for economic development purposes; F. Construction or repair of access roads for industrial development; G. Purchase of buildings for economic development purposes; H. Construction or repair of railroad spurs for industrial development; I. Construction of any county or municipally-owned health care facilities, excluding any county health departments; J. Construction, purchase, renovation or repair of any building to be utilized as an auditorium or convention center; K. Construction of multipurpose facilities for tourism development; L. Loans to a county to aid in retiring interest-bearing loans utilized for the purchase of a motion picture sound stage; M. Construction, repair and renovation of parks, swimming pools and recreational and athletic facilities. (Not intended to be used for school districts or for commercial purposes, such as health clubs, skating rinks, miniature golf courses, etc.).

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.4 General Project Requirements

A. The Applicant must fulfill the requirement of the standard application, which must be Submitted to MDA for review and acceptance. B. The Applicant may only submit one project per application. C. The construction or renovation of economic development buildings for speculative purposes requires a 50/50 match. The match must be in cash or in-kind assets.

D. The Applicant may not use the funds to retire any debts, except for current construction type loans directly related to the project. E. Recreational sites acquired and/or developed with CAP assistance cannot be converted to uses other than their original scope/intent during the life of the loan. F. The Applicant must not purchase a building or facilities from individual(s), company(ies), or corporation(s) with CAP funds, and subsequently lease them to the seller (previous owner) within 5 years of acquisition. G. The Applicant may not purchase a building that has been constructed in the last six months. H. The Applicant may not purchase an existing building or facility for more than the appraised value. I. The Applicant may not utilize CAP proceeds to make a loan to any private entity, public entity, or individuals. J. If applicable, the Applicant must obtain written approval from the MDA-appointed legal counsel stating that the project qualifies for a tax-exempt status. The associated costs are the responsibility of the Applicant and will be billed directly by the appointed legal counsel. K. Before releasing CAP funds, the Applicant must provide title insurance on all real property acquisitions or title opinion on all other projects from the Applicant’s attorney. L. The Applicant must follow all procurement and purchase laws. If an applicant has not advertised for bids within 120 days after receiving loan approval, the state will have the option to recall the CAP funds. M. The Applicant must comply with all nondiscrimination and equal opportunity requirements. MDA encourages the use of Minority-owned Business Enterprises (“MBE”) and Women-owned Business Enterprises (“WBE”). N. If the CAP funds are used in a joint project with other funds, then the CAP may be subject to the other funds’ regulations. O. If applicable, an access road for industrial development must follow state requirements. CAP loan funds are not to be utilized on major highways. P. The Applicant must retain title and maintain, preserve and keep the project in good working order and condition until the CAP loan is satisfied. Q. The Applicant may not utilize CAP proceeds for the purchase of construction related equipment, rolling-stock type equipment, or any equipment not integral to the operation of the facilities or structure being purchase, constructed or repaired.

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.5 Eligible Applicants

The Applicant must be an incorporated municipality or a county.

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.6 Application Requirements

A. A certified copy of the Resolution of Intent from the Applicant must be submitted. (All Applicants must use the Public Notice Form provided by MDA.)

B. In order for MDA to consider eligibility for a CAP loan, the Financial Analysis Worksheet must be completed, signed and the original signed copy submitted in advance or along with the application. C. A letter on official letterhead from the Applicant’s certified public accountant, auditor or fiscal officer verifying that the Applicant’s financials reflect the ability to repay the CAP loan. This verification must include the source of repayment (i.e., surcharge or other verifiable means of repayment). D. Certified Proof of Publication of the required Public Notice of the Applicant to enter into a Loan Agreement with MDA for CAP funds. The Resolution must be published once a week for at least four (4) consecutive weeks in a newspaper having general circulation in the county. The public hearing should take place after the date of the final publication. The Resolution must have been published within the last 6 months prior to submittal of the loan application. E. Once the publication process is complete, a certified copy of the minutes of the Applicant showing their decision to proceed with the loan. F. If applicable, written verification that the Applicant has consulted with the Public Service Commission regarding water and wastewater projects. G. Fire Protection loans must be made to enhance structural firefighting capabilities. Loans for fire trucks must provide proof that the National Fire Protection Association standards are/will be met. H. If applicable, official certification of preliminary project plans and specifications from the project engineer and the operating railroad indicating that the project meets American Railway Engineering and Maintenance-of way Association (“AREMA”) and Federal Railroad Administration (“FRA”) standards and other necessary compliance requirements. I. If applicable, an appraisal and two review appraisals, must be conducted no more than three months prior to loan closing, on buildings and associated land to be purchased. J. Maps reflecting the project location as well as detailing of the improvements. K. Cost verifications must be on engineers’ or architects’ original letterhead, signed and sealed by the firm’s representative. L. Budget Sheet breakdown of sources and uses of funds. M. The Applicant’s certified public accountant, auditor or fiscal officer must furnish to MDA the most current annual audit and the latest financial summary reflecting any additional long-term debt or any changes in their financial position since the last annual audit was prepared. N. If two separate local units of government jointly fund a project, the Applicants must have an inter-local agreement with the Attorney General’s approval. O. If applicable, the Applicant must provide an award letter or documentation verifying other funding sources.

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.7 General Loan Limitations

A. Community Development related projects are defined as non-job creating projects that benefit a need in a community unrelated to economic development. Project loan awards will be limited to $1,250,000.00 per project or $1,250,000.00 per applicant, per calendar

year. Loans for construction, repair and renovation of parks, swimming pools and recreational and athletic facilities shall not exceed $250,000.00 per project and are limited to one active project per applicant (one project in construction). B. Economic Development related projects are defined as projects that promote full time private sector job creation and/or retention. One full-time job is the equivalent of a minimum of 1,820 annual work hours. Project Awards will be limited to: not more than $20,000.00 per job or a maximum loan amount of $2,500,000.00, whichever is less. C. Up to 8% of the principal loan amount may be used for design work, i.e., engineer or architect excluding brownfield projects. Engineering and/or architectural costs above 8% must be paid from other funding sources. D. CAP Loan funds cannot be used for project signs, administrative costs, legal or appraisal fees. E. All loans have annual interest computed daily on the outstanding loan balance. Daily interest begins to accrue at the time of the first disbursement. F. The Applicant will be required to expend all CAP loan funds within two years from the date of loan approval, unless a waiver, at MDA’s discretion, is granted upon good cause shown. If the funds are not expended within the two years, MDA will have the option to adjust the loan to the actual disbursements and de-obligate the remaining funds.

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.8 Loan Terms

The term of any loan must be reasonable and shall not exceed 20 years. The loan amount allowed will be determined by the Applicant's ability to repay the loan within acceptable terms. The rate of interest on all CAP loans is calculated according to the actuarial method. CAP loans that qualify for tax-exempt status shall be at 2% per annum; and taxable CAP loans shall be at 3% per annum. The interest on any loans converted from non-interest bearing loans on sound stages to other eligibility categories will be changed to an applicable interest-bearing rate. The loan term for fire trucks shall not exceed 10 years.

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.9 Special Provisions

Under the 2005 Regular Legislative Session, $2,500,000 shall be used only to provide loans to the counties and incorporated municipalities for remediation of a brownfield agreement sites under Sections 49-35-1 through 49-35-25.

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.10 Audit

Funds provided under the CAP Loan Program are subject to audit by the MDA, Office of the State Auditor, Department of Environmental Quality and/or Department of Health.

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.11 Penalties

An Applicant which fails to meet repayment obligations shall cause all or part of its sales tax allocation and/or homestead exemption reimbursement to be withheld and may be subject to other penalties as set forth in Miss. Code Ann., Section 57-1-303(4) (Rev. 2014). The Applicant will also be ineligible for additional financial assistance from the agency until the loan balance is current.

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.12 Accrued Interest

Applicants should be aware that interest begins accruing daily on the outstanding loan balance after the first request for cash is dispersed. Once the CAP activity is complete, the applicant will be responsible for the first month’s payment and interest plus the total of accrued interest from the construction phase of the CAP activity.

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.13 Delinquent Notice Process

Invoices will be sent to communities with an active CAP loan status. Failure to submit timely payments will prohibit that community from other MDA assistance until the loan is no longer delinquent. In addition, the following procedures will take place: A. If a community is 60 days delinquent, MDA may issue a letter stating the catch-up amount, terms of their loan agreement and explain the process for turning collection over to the State Auditor. B. If a community is 90 days delinquent, MDA may issue a letter stating in 30 days if the catch-up payment amount has not been received, then MDA will turn the community over to the State Auditor. C. If a community is 180 days delinquent, MDA may request the State Auditor to audit the receipts and expenditures of the loan (Section 57-1-303(5)). If the State Auditor finds that the county or municipality is in arrears in payments, he shall immediately notify the Executive Director of the Department of Finance and Administration who shall withhold all future payments to the county of homestead exemption reimbursements under Section 27-33-77 and all sums allocated to the county or the municipality under Section 27-65-75 until such time as the county or the municipality is again current in its loan payments as certified by the Mississippi Development Authority.

3.14 Brownfield Project Requirements. A. Remediation of brownfield agreement sites in accordance with Sections 49-35-1 through 47-35-25 may be considered as an eligible project. B. Loans for remediation of brownfield sites in accordance with Sections 49-35-1 through 49-35-25 shall not exceed $250,000.00 per site. C. Up to 10% of the principal loan amount may be used for the Mississippi Department of Environmental Quality (MDEQ) approved Brownfield Consulting Firm’s fees for brownfield projects during the clean-up phase. Consultant fees above 10% must be paid from other funding sources. D. Remediation costs shall not include: 1. Costs incurred after the issuance of a No Further Action letter under Section 49- 35-15, Mississippi Code of 1972; 2. Costs incurred before the executed brownfield agreement; 3. Costs incurred for any legal services or litigation costs; and 4. Any funds provided by any federal, state or local government agency or political subdivision.

E. Administrative fees and legal fees are not allowable costs to be reimbursed by CAP funds. F. The operating expenses, monitoring expenses and maintenance expenses incurred after the brownfield cleanup phase will not be an allowable cost to be reimbursed by CAP Loan funds. G. Before loan approval for remediation of a brownfield site, the Applicant must provide MDA with an executed copy of the brownfield agreement between the Applicant and the Executive Director of MDEQ. H. Within thirty (30) days after the brownfield agreement is executed and before any loan disbursements are released, the Applicant shall provide a copy of deed, clear certificate of title or other instrument certifying that the property is owned by the Applicant and subject to a brownfield site agreement. I. During the brownfield cleanup process, the CAP funds must be expended within one year from the date of the loan approval, unless waiver is granted by MDA upon good cause shown. J. The Applicant will be responsible for the operating and maintenance (“O&M”) of the brownfield site and for any post remediation monitoring required under the brownfield agreement. K. Any amendments, changes or violations of the brownfield agreement site must be reported to MDA and MDEQ within 10 business days. L. The Applicant shall include in all contacts with Participating Parties a provision that each Participating Party agrees than any duly authorized representative of MDA and/or MDEQ shall, at all reasonable times, have access to any portion of the Project in which such Participating Party is involved until the completion of all brownfield agreement requirements.

History

• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).
• Source: Miss. Code Ann. § 57-1-301 et seq. (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 3.15 Compliance with Federal Immigration Laws and Mississippi Employment Protection Act

Companies are required to ensure compliance with the Mississippi Employment Protection Act (“MEPA”), Miss. Code. Ann. § 71-11-3 et seq., and must register and participate in the status verification system for all newly hired employees. The term "employee” as used herein means any person that is hired to perform work within the State of Mississippi. As used herein, "status verification system" means the Illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program, or any other successor electronic verification system replacing the E-Verify Program. Companies must maintain records of such compliance and, upon request of the State of Mississippi and approval of the Social Security Administration or Department of Homeland Security, where required, to provide a copy of each such verification to the State. Any person assigned to perform services must meet the employment eligibility requirements of all federal and state immigration laws. Any breach may subject the company to the following: (a) termination of the Agreement and ineligibility for any state or public contract in Mississippi for up to three (3) years, with notice of such cancellation/termination being made public, or (b) the loss of any license, permit, certification or other document granted to the company by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year, or (c) both. In the event of such termination/cancellation, the

company would also be liable for any additional costs incurred by the State due to contract cancellation or loss of license or permit.

Adopted: June 30, 2021

History

• Source: Miss. Code Ann. § 71-11-3; Miss. Code Ann. § 57-1-371; Miss. Code Ann. § 57-1-373.

Chapter 4 The Mississippi Development Infrastructure Program (DIP)

6 Miss. Admin. Code Pt. 4, R. 4.1 Purpose

The Mississippi Development Infrastructure Program (DIP), administered by the Mississippi Development Authority (MDA) is designed for making grants or loans to counties or municipalities (Local Sponsors) to finance infrastructure projects to promote economic growth in the State of Mississippi (State). Counties and municipalities are encouraged to use these funds in connection with other State and federal programs. Funding for grants and loans to Local Sponsors is derived from the issuance of State bonds. DIP was enacted by the State Legislature during the Regular 1993 Session.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014. 2014)

6 Miss. Admin. Code Pt. 4, R. 4.2 Eligibility

Cities and counties are eligible for the DIP program. Projects must be directly related to the construction, renovation, or expansion of a new or expanded industry.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014)

6 Miss. Admin. Code Pt. 4, R. 4.3 Eligible Projects

Eligible projects financed with DIP must be publicly owned. All contracts and purchases shall be made in accordance with normal bid and purchase laws of a municipality or county. Eligible projects include, but are not limited to: A. Drainage Improvements B. Energy facilities (power generation and distribution) C. Sewer Improvements D. Transportation facilities directly affecting the site, including roads, bridges, rail lines, or pipelines E. Water Improvements F. Marine structures G. Land improvements H. Building (Purchase, construction, or rehabilitation) I. Any other project approved by Mississippi Development Authority

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014)

6 Miss. Admin. Code Pt. 4, R. 4.4 Intended Beneficiaries

Eligible projects should benefit the following types of industries: A. Manufacturing and processing B. Large distribution facility C. Service support to agriculture, aquaculture, and mariculture D. Service support to manufacturing and processing E. Telecommunications and data processing F. Corporate headquarters and operations centers

G. Research and development

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.5 Application Requirements

The application must include the following: A. A detailed description of the project and narrative explaining how the specific improvements will affect economic development and/or job creation in the area, together with supporting documentation. B. Engineering/Architects Report: This should include a cost estimate and timeline. Cost estimate must be submitted by an engineer or architect on their letterhead as a signed and stamped original. The timeline should outline the project construction from implementation to the completion of construction. C. Budget Sheet D. Memorandum of Agreement. E. Executed copy of the Resolution of Authorization for DIP funds F. Copy of building title and lease (applicable if the project includes a building purchase construction, or rehabilitation) G. E-Verification for the applicant and benefitting business H. Detailed Map showing location of proposed project. Maps must explicitly correspond to the proposed scope of activities within this project. I. The applicant must submit one original of the application to MDA. Complete application must be submitted with bottom tabbed dividers in between each attachment. All documentation should have original signatures. J. Applications can be mailed to: Mississippi Development Infrastructure Program, Mississippi Development Authority, Community Services Division, Post Office Box 849, Jackson, Mississippi. MDA will evaluate the application to determine if the project meets program criteria.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.6 Key Points

A. Mississippi Development Infrastructure Program funds may not be used for working capital, gaming enterprises, general expenditures, which would normally be covered under a local sponsor's general operation budget, or for administrative expenses. B. A limited amount of funds may be used for engineering/architectural cost. The amount of these professional services will limited to an amount not to exceed 10% of the DIP grant or loan award amount. C. As such, all funds awarded must be spent for improvements within the scope of the original project description as stated in the grant or loan application. E. Additionally, if the recipients complete their project for less than the amount awarded, the excess funds can be requested for additional project work as long as there is no change from the scope of the original project F. No approved applicant shall be allowed to use excess funds to pay for the project costs that vary from the original project description. G. All requested changes and variances from the original application should be made in writing and will be reviewed by MDA on a case by case basis.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.7 Application Process

Any applicant seeking funding should contact an MDA project manager with the EIB Division for an in-state company or the Global Division. After the initial evaluation, should the manager determine the project meets MDA standards, they will contact the Community Services Division (CSD) to discuss the project and check on availability of funds. Then upon request, the applicant should send the Pre-Application package to the CSD to include the following: A. Project proposal B. Engineering cost estimate: Include a general cost estimate. Cost estimate must be submitted by an engineer or architect on their letterhead, signed and stamped. C. Budget Sheet D. Benefitting Business Information Packet E. Last 3 years of the Benefitting Business’s audited financial statements

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.8 Selection Process

The process used for evaluating, selecting, and funding Pre- Applications and Applications is based on the following: A. Eligibility B. Project readiness C. Company's financial condition D. After the review of your Pre-Application, MDA may issue a letter inviting a DIP application. The letter will state the amount of DIP funds that can be applied for and the requirements. Please note: a letter of invitation is not a commitment of funds. An application will be made available at that time. In addition, the applicant must have a Memorandum of Agreement executed with the benefitting business to create and/or retain jobs and make the investment as described in the application. The highest official with both the applicant and the benefitting business must sign the agreement. E. MDA will perform a financial review of the business benefitting from DIP money. If MDA does not find the business to be financially sound and eligible to receive state incentives, the Community Services Division will not invite the applicant. F. DIP applications are accepted on a continuing basis as long as funds are available. G. The applicant will be given 45 days to submit the full application.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.9 General Grant Terms

The program intent is to stimulate growth and economic development in the State. The maximum amount, which may be awarded to any one local sponsor, will be whichever amount of the following is less: $15,000 per job or a maximum of $500,000 total grant amount. A. DIP projects should include a benefitting business, committed to increasing net new permanent jobs at their facility in which the grant is assisting. The benefitting business will have four (4) years from the effective date to complete job creation and

investment commitments. The benefitting business will be required to maintain the total employment for a period of twelve (12) months. B. DIP assistance per job must be $15,000 or less. The proposed activity must be associated with creating 10 or more net new jobs. C. All applicants are required to supply a minimum 10% match of the total DIP grant award amount to the project in the form of cash or in/kind contribution. D. The applicant and the benefitting business will be required to enter into a Memorandum of Agreement with each other. This agreement is utilized to outline the responsibilities and commitments of both parties and determine reimbursement if those commitments are not met. E. Program funds may not be used for working capital, general expenditures, which would normally be covered under an applicant’s general operation budget, or for administrative expenses. F. Projects where the applicant does not own the public property that is being improved with DIP funds must include an inter-local agreement between both parties along with approval from the Attorney General’s office.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.10 Procurement

All contracts and purchases must be made in accordance with normal bid and purchase laws of a municipality or county.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.11 Minority and Women Owned Business Enterprises

The Mississippi Development Authority (MDA) encourages the maximum opportunity for increased participation by local Minority and Women-Owned Business Enterprises (MBE/WBE) in the procurement of goods and services. The Mississippi Development Authority Minority Business Division at www.mmbr.org and the Mississippi Procurement Technical Center at www.mscpc.com can assist with MBE/WBE outreach efforts.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.12 Contract Modifications

The Community Services Division requires all grant recipients to receive approval prior to making contract amendments, modifications or extensions. Grant recipients must submit correspondence and documentation associated with the request, signed under the original signature of the chief elected official or appointed executive officer, supporting the need for the change(s) or extension. A. Community Services Division must approve any changes to the original budget prior to local action. Failure to have approval may result in an ineligible activity which may result in the repayment of grant funds to MDA. B. Excess funds will not be eligible to pay for the project costs not accounted for in the original project description. Additionally, if the grant recipient completes their project for less than the amount awarded, the excess funds may be requested for additional project work as long as there is no change from the scope of the original project.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.13 Disbursement of Funds

A. A grant agreement or loan documents will be executed between the local sponsor and MDA. All funds awarded must be spent for improvements within the scope of the original project description as stated in the grant or loan application. B. All funds will flow through the grant recipient. C. MDA will release DIP program funds for services rendered, or a reimbursement basis, for approved eligible cost of the project incurred. D. Grant recipients will have two (2) years from the date of the agreement to request reimbursement for DIP funds. Failure to implement and complete the project may result in the agreement being voided and funds de-obligated.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.14 Requests for Cash

A. DIP funds are requested by using the Request for Cash and Consolidated Support Sheet. These forms can be found on MDA’s website as a single excel file titled “Request for Cash”. The Request for Cash form provides the necessary information about the recipient, project and budget, along with the required signatures to authorize the request. The Consolidated Support Sheet allows for all the reported costs to be documented along with the amount of funds expended and remaining. The costs reported must be equal to the amount requested and disbursed including any matching funds. Signatures on both forms are required in order to process the request. B. An Authorized Signatory Letter must be sent no later than with the first Request for Cash and at any time there is a change in administration. The Authorized Signatory Letter will advise CSD of the authorized signatories for the DIP project. C. Completed Requests for Cash must be submitted to: The Mississippi Development Authority Community Services Division Post Office Box 849 Jackson, Mississippi 39205-0849 D. All forms submitted must be accurately completed or the request cannot be processed and will be returned to the grant recipient. Forms submitted with errors will delay the process and greatly impact the turnaround time for funds being released because all information must be verified and approved for payment prior to submission to DFA. According to State Statute, 45 days is allowed for the processing of cash requests. If after the 45 th day payment has not been received, please contact the Program Manager to check on the status of your request. E. Requests for Cash overlapping the State’s fiscal year (June 30 th ) or the grant recipient’s fiscal year must be separated into two separate requests. F. All requests for construction expenses must include an itemized invoice approved by the engineer or architect. G. Matching Funds must be expended at a proportionate rate with DIP Funds and documented on the request for cash forms and include attached invoices or checks.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.15 Economic Development

It is the grant recipient’s responsibility to ensure the

benefitting business is in compliance with all guidelines, jobs (created and maintained) are documented and benefitting business investment is met. If DIP funds are released and the project does not materialize or the benefitting business’s requirements are not met, the grant recipient will be required to pay the DIP funds back to MDA. The grant recipient therefore, should hold the benefitting business responsible for meeting the investment and jobs requirements.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.16 Job Creation Completion

The benefitting business will have four (4) four years from the effective grant date to create jobs and make the private capital investment. An employee roster will be obtained at the site visit. This will be used as MDA’s basis for job creation. Once the total number of jobs increases by the amount of the jobs committed and can be shown on one payroll, the total employment requirement will be met. After this point, the benefitting business should maintain the total employment number for a period of 12 months. Once this can be documented and submitted to MDA for review, job creation will be considered complete. If, for any reason whatsoever, the grant recipient does not adhere to the commitments as documented in the application and grant agreement, the grant recipient will reimburse the Mississippi Development Authority the amount as set out below: A. If the business benefitting from the DIP improvements fails to create and maintain the total number of full-time jobs as indicated in the Memorandum of Agreement and site visit acknowledgement form, the grant recipient will reimburse the Mississippi Development Authority a pro rata share of the amount documented by the Memorandum of Agreement. The reimbursement amount will be arrived at by multiplying the difference between the total number of jobs projected to be created and the number of actual jobs created by the cost per job. The cost per job is derived by dividing the DIP award amount by the total number of jobs projected to be created. B. Should the grant recipient fail to fully implement all facets of the project, or should the business benefitting from the DIP improvements fail to locate to or remain in operation at the DIP assisted site until all project terms and conditions have been met and the DIP grant agreement has been closed out, the grant recipient shall be responsible for repayment of the total amount of DIP funds expended on the project.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.17 Job Reports

All open Economic Development projects are required to submit job reports twice a year until all job commitments have been met. Grant recipients should submit the Economic Development Jobs Report form and a dated and certified employee roster at the beginning of the year and the middle of the year. A representative from the benefitting business and the local elected official should sign and date the Economic Development Jobs Report Form. A. Job Report due dates are as follows: January 15 th and July 15 th . Failure to submit job reports will result in the Community Services Division holding any and all pending Requests for Cash, Closeouts, and new project approvals for the grant recipient.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014).

6 Miss. Admin. Code Pt. 4, R. 4.18 Auditing and Monitoring

Funds provided under the Mississippi Development Infrastructure Program are subject to audit by the Mississippi State Auditor's office. Additionally, MDA will also monitor all projects to ensure compliance with the original application submitted. During the life of the project or at project completion, a CSD program manager will contact the grant recipient to determine a date for the monitoring visit.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014)

6 Miss. Admin. Code Pt. 4, R. 4.19 Jobs and Investment Documentation

All Economic Development projects will be required to provide documentation of the jobs created and maintained and the investment made by the benefitting business. The following documentation is required for all Economic Development projects: A. Investment Documentation: Investment letter from the benefitting business stating the amount invested. B. Jobs Documentation: One dated payroll showing the overall employment requirement has been met and a second dated payroll at least 12 months later showing the overall employment requirement has been maintained. If at the end of 12 months, the benefitting business has failed to maintain the total employment requirement that was previously met, they will have 60 days to bring the total employment back up to the committed number. Inability to maintain the total employment requirement will require the repayment of grant funds to MDA

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014)

6 Miss. Admin. Code Pt. 4, R. 4.20 File Maintenance

Maintaining an efficient filing system is critical to the administration and monitoring of your program. A successful monitoring experience hinges on the quality with which the Recipient maintains its filing system and the ease of obtaining information from those files. A. When establishing a file system, Recipients should consider using two categories to set up their files, grant files, and project files. The grant files should contain documentation and information that relate to the overall funding and administration of your program. The project files should contain specific documentation and information pertaining to the DIP project and should be maintained for a minimum of five (5) years from grant closeout or for the period required as specified by governing regulations.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014)

6 Miss. Admin. Code Pt. 4, R. 4.21 Close-Out Process

The close-out process encompasses a series of activities to verify that DIP Funds have been properly spent and that the applicant has completed the elements of its program in a timely and acceptable manner. A. The grantee recipient must submit all financial, performance, and other reports required as a condition of the grant. B. Close-Out Packages bearing the original signatures of the designated signatory officials are due to MDA within 30 days after completion of the project including investment commitment and job creation. Failure to submit Close-Out Packages in a timely manner

will result in the Community Services Division holding any and all pending Requests for Cash, Close-Outs and new project approvals for the grant recipient. C. The grantee recipient must retain all records for a period of five years from the date the State executes the Certificate of Completion. D. The tasks involved in closing out a grant include: (i) Resolution of all monitoring findings; (ii) Submission of close-out report (one original copy); (iii) Submission of Certificate of Completion (three originally signed copies); E. The close-out process should begin when the following criteria have been met or will be met shortly: (i) All costs to be paid with program funds have been paid, including any unsettled third- party claims, with the exception of close-out costs, such as the final administration costs. (ii) The recipient has fulfilled all of its responsibilities under the Funding Agreement. This includes injection of all local cash and in-kind services, other State and/or Federal funding, all private investment, and job creation/retention (where applicable). F. Delays in completing close-out can result in the denial of future requests with Community Services.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014)

6 Miss. Admin. Code Pt. 4, R. 4.22 Close-out Monitoring Requirements

At project completion, the MDA-CSD representative will contact the grant recipient to determine a date for the close-out monitoring visit. All monitoring findings must be resolved before the close-out can be finalized.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014)

6 Miss. Admin. Code Pt. 4, R. 4.23 Award Process A

Upon being awarded a DIP grant, a binding contract is executed between the Mississippi Development Authority and the grant recipient for the specific amount awarded, job commitment, and for the particular activity being improved with DIP funds. B. Construction may not begin and jobs may not be counted prior to an effective grant award date. Any expenses incurred before the effective date of the grant agreement will not be reimbursed by MDA. Any jobs created prior to the effective date of the grant agreement may not be counted towards job creation. C. All funded projects are required to enter the construction phase within 12 months of the award date. Where construction has not begun within 12 months, the grant recipient must satisfactorily demonstrate why the project should be kept open or the award may automatically be voided.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014)

6 Miss. Admin. Code Pt. 4, R. 4.24 Mississippi Employment Protection Act

All grant recipients (applicants) and benefitting businesses entering into contracts with the Mississippi Development Authority represents and warrants that it will ensure compliance with the Mississippi Employment Protection Act and will register and participate in the status verification system of all newly hired employees. The term “employee” as used herein means any person that is hired to perform work within the State of Mississippi. As used herein, “status verification system” means the illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program or any other successor electronic verification system replacing the E-Verify Program. The grantee agrees to maintain such compliance and, upon request of the State, to provide copy of each such verification to the State. The grantee further represents and warrants that any person assigned to perform services hereunder meet the employment eligibility requirements of all migration laws of the State of Mississippi. The grantee understands and agrees that any breach of these warranties may subject the grantee to the following: (a) termination of this Agreement and ineligibility for any state or public contract in Mississippi for up to three (3) years, with notice of such cancellation/ termination being made public, or (b) the loss of any license, permit, certification or other document granted to the grantee by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year, or (c) or both. In the event of such cancellation/termination, the grantee would also be liable for any additional costs incurred by the State due to contract cancellation or loss of license or permit.

Rule. 4.25 Waiver. These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State law.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014)
• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014)

6 Miss. Admin. Code Pt. 4, R. 4.26 Site Visit

Once an application has been received, a CSD Program Manager will contact the grant administrator and local unit of government to schedule a site visit. During the site visit, CSD staff will review the following: A. Resolution authorizing the application submittal in the minute book B. Documentation for matching funds C. View the project area and site of improvements to document project need D. In addition, the CSD staff will need a current employee roster from the benefitting business. The document must include each employee’s name and date of hire. This will be the starting point to account for job creation. A company representative from the benefitting business and the local elected official with the applicant will sign an acknowledgement pertaining to job creation and should attend the site visit.

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014)

6 Miss. Admin. Code Pt. 4, R. 4.27 Additional Information

For more information regarding file maintenance and monitoring requirements you may contact: A. Mississippi Development Authority

Community Services Division ATTN: Sara Doss Post Office Box 849 Jackson, Mississippi 39205 Telephone: (601) 359-3179 Fax: (601) 359-3108

History

• Source: Miss. Code Ann. § 57-61-36 (Rev. 2014)

Chapter 5 Hometown Mississippi Retirement

6 Miss. Admin. Code Pt. 4, R. 5.1 Official Community Support

In order to assure support of community leaders, a resolution by the city governing authority endorsing the local retirement recruitment effort is required.

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 5.2 Designation of a Sponsor

The program must have an official sponsoring organization with a retirement program director who will be accountable to the community and to the state. Examples of sponsoring organizations are chambers of commerce, economic development authorities, tourism development organizations and cities. The sponsor must be an official entity in order to be eligible for state funding.

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 5.3 Funding

The sponsoring organization must commit a minimum of $20,000 per year for the local program (may include a portion of salary).

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 5.4 Quality of Life

The community’s quality of life will be assessed by, but not limited to, the following: A. Hospital: There must be a hospital within a 30-minute drive of the community and, preferably, closer. B. Adequate Medical Services: Includes emergency services for stabilization and/or C. referral/transport. D. Available Housing: The community must have an adequate supply of both resale housing and rental housing sufficient to meet the needs of potential new retiree residents. E. Adult Education: Opportunities through local community college, local university or branch of either. F. Available Goods and Services: Shopping, restaurants, pharmacies, etc. G. Recreation: Opportunities for retirees, such as golf, walking, exercising, etc. H. Cultural Opportunities: Theater, art gallery, recitals, etc. I. Crime Rate: Crime rate comparable to the national average. J. Civic/Community Pride: Includes intangibles such as appearance or “curb appeal” of the entrances into and out of the downtown area; living conditions such as quality of housing, public safety, and environmental quality; economic equity and vitality; culture

and heritage.

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 5.5 Establishment of committees

Each city must have a general Retiree Attraction Committee to ensure the development of the following: A. Community Inventory/Assessment (amenities, shortages) B. Community Relations/Fundraising: The success of this program depends, to a large degree, on the support of churches, clubs, businesses, and local media. C. Marketing and Promotion: A successful candidate for program certification should have in place: (i). Marketing plan: The purpose of this plan is to focus on the type of retiree your community desires and how your program expects to achieve its goals. The plan should detail the mission, the target market, the competition, and analysis of your community’s strengths, weaknesses opportunities and threats, and the strategies your program will employ to attain its goals. (ii). Annual budget ($20,000 recommended for advertising, program materials and travel) (iii). Retiree attraction brochure (must be approved by State HMR office and HMR Advisory Committee before printing). (iv). Prospect package: While most cities will have some type of newcomers package, it is important that information sent to prospective retirees be relevant to their needs. Within 90 days of certification, the city must submit a complete retiree attraction package to the state office for approval (should include brochure, map, amenity brochures, available housing, and other as requested by potential retiree). D. Connectors/Ambassadors – A group of retirees to the community committed to assisting the local program in its effort in retiree attraction and relocation. Must set up program to train group on how to make calls/tours of potential retirees.

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 5.6 Community profile

The sponsor must develop a Community Profile similar to that used by many chambers of commerce. It will include such factors as crime statistics, local tax information, recreational opportunities, and housing availability.

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 5.7 Retirement Community Yearly Self-Audit

Subsequent to certification the organization must commit to maintaining the following requirements: A. Retiree Attraction Brochure with Reader Response Card B. Establish/maintain nationwide toll free number and website must contain retiree attraction tab with pertinent information for relocating retirees C. Maintain adequate funding to operate the local program and meet the certification requirements. This varies from each community depending on the level of promotion minimum $10,000. C. Follow up leads with personal contact within two weeks of receiving the leads.

D. Annually sponsor/participate in a minimum of two of the following: environmental, social, educational, or community project/event. E. Presence in a minimum of one national publication per year F. Attendance at HMR meetings. The Retirement Director or designee must attend state meetings, using the state's July 1-June 30 fiscal year. G. Marketing Activity: Retirement Director or designee must attend one out-of-state trade show each year or one documented marketing activity, which has received prior approval from the state office. H. File quarterly reports to the Hometown Mississippi Retirement state by the stated deadline. I. Submit annual program self-audit form, marketing plan, and annual budget to Hometown Mississippi Retirement state office on or before August 1 st of each year. (This will take effect August 1, 2004)

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 5.8 Entitled Benefits

As a Certified Hometown Mississippi Retirement city, each is entitled to have the benefit of assistance from the Mississippi Development Authority/Tourism Division Hometown Mississippi Retirement program in the form of but not limited to presence in the Mississippi Living Guide (official fulfillment brochure); presence in the Hometown Mississippi Retirement program website; advertising of and promotion in national mature market magazines; representation at national mature market consumer shows; bi-weekly notification of retiree leads for their area; eligibility to apply for a match-grant for promotional materials and advertising of their area.

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 5.9 Results of Failure to Comply

As a result of the outcome of the annual self-audit, failure to comply with Hometown Mississippi Retirement certification requirements will result in the program being placed on probationary status for a period of six months.

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 5.10 Meeting and Review

The Hometown Mississippi Retirement Program manager and a member of the Hometown Mississippi Retirement Program Advisory Committee will meet with the local program director to ascertain the nature of difficulties resulting in non-compliance status and to assist the director in the identification of and offer suggestions for the alleviation of non-compliance issues. A review by the Hometown Mississippi Retirement Program manager and the Hometown Mississippi Retirement Program Advisory Committee will be held after three months. Local and state officials may be notified.

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 5.11 Termination of Certification

At the end of the probationary period, failure to be in compliance with the certification requirements will result in the termination of Hometown Mississippi Retirement certification status.

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 5.12 Maintaining Happiness

As part of your community's retirement effort, an important aspect of the retiree assimilation process is for newcomers to feel welcome. This can be achieved by a number of methods: A. Newcomer events such as picnics, dances, and golf tournaments; B. Special organizations for in-migrant and in-place retirees; C. Institute for Learning in Retirement in connection with your local college or university; and D. Environmental, educational, and community projects sponsored by your connectors such as a beautification project or adopt-a-school.

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

6 Miss. Admin. Code Pt. 4, R. 5.13 Suggested Program Enhancements

A. Develop a professional portfolio. This book, to be kept in the sponsor’s office, is to have short biographies of various professionals for retirees to consult when seeking professional service providers. B. Offering a gift /gift package to visitors and a welcome gift/packet to relocated retirees. C. Partnering with local real estate professionals to have an up-to-date real estate guide of local properties for sale or rent. D. Make personal contact to leads within two - three weeks of sending information to ensure information was received, to answer questions, and to invite prospects to visit.

History

• Source: Miss. Code Ann. § 57-64-1 et seq. (Rev. 2008).

Chapter 6 Mississippi Single Family Residential Housing

6 Miss. Admin. Code Pt. 4, R. 6.1 Purpose

The Mississippi Single Family Residential Housing Fund (MSFRHF) was created as a revolving fund for the purpose of making loans to any agency, department, institution, instrumentality or political subdivision of the state; or any agency, department, institution or instrumentality of any political subdivision of the state; or any business, organization, corporation, association or other legal entity meeting criteria established by the Mississippi Development Authority (MDA) Community Services Division (CSD), through a hosing revolving loan program for the construction of single family residential housing for persons of low or moderate income. The legislation provided that MDA will administer the MSFRHF and funds shall be loaned to eligible projects for construction financing.

History

• Source: House Bill 530, 1999 Regular Session

6 Miss. Admin. Code Pt. 4, R. 6.2 Program Objective

A. Promote home ownership. B. Provide low cost construction funds for housing production. C. Expand the supply of decent, safe, sanitary, and affordable housing.

History

• Source: House Bill 530, 1999 Regular Session

6 Miss. Admin. Code Pt. 4, R. 6.3 Allocation

The total amount of bonds issued to MDA was $5,000,000 less the issuance costs of $10,940.32. Therefore, $4,989,059.68 was available for the purpose of construction financing.

History

• Source: House Bill 530, 1999 Regular Session

6 Miss. Admin. Code Pt. 4, R. 6.4 Lending Guidelines

The maximum and minimum loan amounts are $750,000 and $100,000, respectively. The loan amounts will be divided according to Participant’s Pro Rata Share. MDA, Fannie Mae, and MS Home Corporation (MHC) are considered as Participants under the program. The total funding sources for the program are as follows: A. MS Home Corporation: $2,000,000; B. MDA: $5,000,000, and; C. Fannie Mae: $5,000,000. The Ownership/Participation Percentages consist of 41.667% and 50%. Interest rates assigned by Participants are blended to leverage the cost and availability of construction financing. MDA’s interest rate is assigned at 3% on funds disbursed. Loans may be for a term up to 2 years with a possible six months extension at the discretion of the Participants. The loans are made in the form of lines of credits and are reviewed for renewal on an annual basis. Loans that are funded shall not have a loan to value ratio that is greater than 80%.

History

• Source: House Bill 530, 1999 Regular Session

6 Miss. Admin. Code Pt. 4, R. 6.5 Eligible Borrowers

Eligible borrower entities include the following: A. For-profit corporations; B. Nonprofit corporations; C. Cooperatives, D. Public agencies other than the MS Home Corporation, E. General and limited partnerships; F. Limited liability companies, and; G. Sole proprietorships

History

• Source: House Bill 530, 1999 Regular Session

6 Miss. Admin. Code Pt. 4, R. 6.6 Implementation and Assessment

MS Home Corporation serves as the Lead Lender that implements the program and is the primary point of contact for all loans funded under MSFRHF. MHC underwrites all loans to meet its credit requirements and other loan conditions, in addition, to Fannie Mae and MDA’s guidelines. However, MHC submits to Participants loan documents for review and authorization before finalizing the loan approval. The documents are required to support underwriting review, assessment of ability to construct residential units, and credit analysis of the borrower. MHC submits to MDA and Fannie Mae by the 15 th of each month, reports identifying the borrowers, outstanding loan balances, committed funds, total funded amounts, and repayment of funds. MDA requires the lead lender to remit the amount of interest due on loans on a monthly basis, Principal funds remains with MHC as long as the borrower’s

line of credit is active. The principal amount is only returned to MDA, when a line of credit is closed.

History

• Source: House Bill 530, 1999 Regular Session

6 Miss. Admin. Code Pt. 4, R. 6.7 Fees

Fees are charged to cover administrative costs. All allowable fees are the obligation of the borrower.

History

• Source: House Bill 530, 1999 Regular Session

6 Miss. Admin. Code Pt. 4, R. 6.8 Intended Borrower’s

Loans are made to low to moderate-income families. The maximum annual family income shall be equal to or less than 115% of median family income for the county as defined by the Department of Housing and Urban Development or $42,672.00, whichever is less.

History

• Source: House Bill 530, 1999 Regular Session

6 Miss. Admin. Code Pt. 4, R. 6.9 Summary

As of July 31, 2005, there are twenty (20) borrowers of MSFRHF funds reporting on file. Presently, a total of $3,127,098.15 has been committed to borrowers. The remaining funds available are 3,222,669.07. A total of sixty-one (61) homes have been constructed.

History

• Source: House Bill 530, 1999 Regular Session

Chapter 7 HOME Program

6 Miss. Admin. Code Pt. 4, R. 7.1 Organizational Status (Legal Status) and Mission Requirements for CHDO Certification A

Organized Under State/Local Law. An organization must show evidence to MDA either in its charter or articles of incorporation, that it is organized under state or local law. B. Non-Profit Status. A tax exemption ruling from the Internal Revenue Service as evidenced by a 501(c) (3) or (c) (4) Certificate from the IRS. C. Purpose of Organization. The organization’s primary purpose must be the provision of decent housing that is affordable to low- income people. This must be evidenced by a statement in the organization’s charter, articles of incorporation, by-laws, or resolutions.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.2 Additional Considerations

A. Strategic Plan. CHDOs and CHDO aspirants are required to submit a comprehensive strategic plan to MDA. In order to be a comprehensive plan, the document submitted must address the following: (i). The mission, goals, and vision of the organization (ii). Whom you will serve (iii). The organization’s role in the community

(iv). The programs, services, and products you offer (v). The resources needed to succeed (vi). The best way to combine resources, programming and relationships to accomplish the organization’s mission B. F/A – 110 Conformity Statement. You will be required to submit a statement that commits your organization to comply with the federal regulations A-110. You may request a copy of this regulation from MDA if you need one. This statement must be on the organization’s letterhead.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.3 Requirements

There are three specific requirements related to the organization’s board, which must be evidenced in the organization’s by-laws, charter, or articles of incorporation. These are: A. Low Income Representation. At least ⅓ of the organization’s board must be representatives of a low-income community served by the CHDO. The CHDO is required to certify the status of low-income representatives. There are three (3) methods to meet the HOME requirement that stipulates ⅓ of the organization’s board be representatives of a low-income community serviced by the CHDO. If a potential board member fits one of the following descriptions, then he/she count towards fulfilling this requirement: (i). The person lives in a low-income neighborhood where 51% or more of the residents are low-income. This resident does not have to be low-income. In order to qualify under this criteria, the board member must live in a low-income neighborhood where 51% or more of the residents are low-income. The board member does not have to be low-income. Neighborhood means a geographic location designated in comprehensive plans, ordinances, or other local documents as a neighborhood, village, or similar geographical designation that is within the boundary but does not encompass the entire area of a unit of general local government; except that if the unit of general local government has a population under 25,000, the neighborhood may, but need not encompass the entire area of the unit of a general local government. (ii). The person is a low-income resident of the community. In order to qualify under this criteria, the board member must be a low-income resident of a community that the CDHO is certified to serve. Low-income is defined as 80% or less of area median family income. (iii). The person was elected by a low-income neighborhood organization to serve on the CHDO board. The organization must be composed primarily of residents of the low-income neighborhood and its primary purpose must be to serve the interests of the neighborhood residents. Such organizations might include block groups, neighborhood associations, and neighborhood watch groups. In order to qualify under this criteria, the board member must be elected by a low-income neighborhood organization to serve the CHDO Board. The group must be a neighborhood organization and it may not be the CHDO itself. If the board member is qualifying under this criterion, a copy of the signed resolution from the neighborhood organization naming the individual as their representative on the CHDO is required. B. Public Sector Limitations. No more than ⅓ of the organization’s board may be

representatives of the public sector. States or local governments who charter CHDOs may not appoint more than ⅓ of the board, and the board members appointed by the state or local government may not appoint the remaining ⅔ of the board members. If a person qualifies as a low-income person and a public official, their role as a public sector representative supersedes their residency or income status. Therefore, the official counts toward the ⅓ public sector limitation. C. For Profit Limitations. If a CHDO is sponsored by a for-profit entity, the for-profit may not appoint more than ⅓ of the board. The board members appointed by the for- profit may not appoint the remaining ⅔ of the board members.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.4 Additional Considerations

A. Board Stability. There should be stability/continuity of board members over the last several years. B. Development Oversight. The Board should have a committee structure or other means of overseeing planning and development. C. Board Skills. The Board members should have professional skills directly relevant to housing development. For example, real estate, legal, architectural, planning, construction, finance and management experience are all professional skills that are relevant to housing development. D. Decision-Making. The Board should demonstrate the ability to make timely decisions using an appropriate process.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.5 Requirements for Sponsorship

A. Control. The CHDO is not controlled, nor receives directions from individuals or entities seeking profit from the organization, as evidenced by the organization’s by-laws or a Memorandum of Understanding. B. Creation or Sponsorship by a For-Profit Entity. If sponsored or created by a for-profit entity, the for-profit entity’s primary purpose does not include the development of management of housing, as evidenced in the for-profit organization’s by-laws. C. Freedom to Contract for Goods and Services. If sponsored or created by a for-profit entity, the CHDO is free to contract for goods and services from vendor(s) of its own choosing, as evidenced by its by-laws, charter, or articles of incorporation. D. Sponsorship by a Religious Organization. If sponsored by a religious organization, the CHDO is a separate secular entity from the religious organization, with membership available to all persons, regardless of religion or membership criteria, as evidenced by its by-laws, charter, or articles of incorporation.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.6 Organizational Structure Requirements

The HOME Program establishes requirements for the organizational structure of a CHDO to ensure that the governing body or the organization is controlled by the community it serves. These requirements are designed to ensure that the CHDO is capable of decisions and actions that address the community’s needs without undue

influence from external agendas. A. History of Serving the Community. The organization has a history of serving the community within which housing to be assisted with HOME funds is to be located, as evidenced by either documentation of at least one (1) year of experience in serving the community or for new organizations, documentation that its parent organization has at least one (1) year of experience serving the community. B. Low Income Input. Input from the low-income community is not met solely by having low-income representation on the board. The CHDO must provide a formal process for low-income program beneficiaries to advise the CHDO on design, location of sites, development and management of affordable housing. The process must be described in writing and must be documented in the organization’s by-law, resolutions, or a written statement of operating procedures approved by the governing body. Each project undertaken by the CHDO should allow potential program beneficiaries to be involved and provide input on the entire project from project concept and site selection to property management. One way to accomplish this requirement is to develop a project advisory committee for each project or community where a HOME assisted project will be developed. Proof of input from the potential low-income program beneficiaries in all aspects of the project will be required for HOME project funding. C. Clearly Defined Service Area. The organization must have a clearly defined geographic service area, which can be described and documented. CHDOs may serve individual neighborhoods or large areas. However, while organization may include the entire community in their service area (such as a city, town, village, county, or multi- county area), they may not include the entire state.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.7 Additional Considerations

A. Needs. Current plans should be well grounded in an understanding of current housing conditions; housing needs, and need for supportive services. The organization should have an analysis of the local housing market and the housing needs of low-income households. B. Relations. The organization should have a good reputation and a positive relationship with the community it services. C. Local Government Relations. The CHDO should have a positive relationship with the local government(s) of the community(s) that it serves.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.8 Financial Management Requirements

A. Conformance to Accountability Standards. The organization must conform to the financial accountability standards of 24 CFR 84.21, “Standards for Financial Management Systems”, as evidenced by notarized statement by the board president or Chief Financial Officer (CFO), or a certification from a Certified Public Accountant (CPA), or a HUD approved audit summary. B. No Individual Benefit. No part of a CHDO’s net earnings (profits) may benefit any members, founders, contributors, or individuals. This requirement must also be

evidenced in the organization’s charter or articles of incorporation.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.9 Additional Considerations regarding Financial Management Requirements: A

Audit. Audit information will be reviewed. B. Budgeting. The organization should conduct annual budgeting of its operations and all activities and programs. It should track and report budget versus actual income and expenses. C. Reporting. Financial reporting should be regular, current and sufficient for the board to forecast and monitor the financial status of the corporation. D. Cash Flow Management. The organization should know its current cash position and maintain control over expenditures. E. Internal Controls. The organization should have adequate internal controls to ensure separation of duties and safeguarding of corporate assets. There should be sufficient oversight of all financial activities. F. Procurement/Conflict of Interest. The organization should have a conflict of interest policy governing board members, employees, and development activities, particularly in procurement of contract services and the award of housing units for occupancy. G. Insurance. The organization should maintain adequate insurance, including liability, fidelity, bond workers compensation, property hazard and project. In regards to bonding provisions (surety bond), the organization shall obtain a minimum bonding of $75,000 to protect the interest of the organization and any entity, which shall award funds unto the organization. If funded, the CHDO is required to increase the surety bond to $150,000 for each principal. H. Financial Stability. The current balance sheet and budget should indicate a sufficient, diversified and stable funding base to support essential operations. I. Portfolio Financial Condition. If the organization has a portfolio of properties, they should be in stable physical and financial condition. J. Liquidity. Whether the organization has liquid assets available to cover current expenses shall be considered, as well as whether the organization has funds available for predevelopment expenses or equity investments required for development.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.10 Capacity to Carry Out Activities

The organization must have demonstrated capacity for carrying out activities assisted with HOME funds, as evidenced by either experience of key staff that has completed similar projects to HOME funded activities or the organization should have contracts with consultants who have relevant housing experience to train key staff.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.11 Additional Considerations for Activities

A. Portfolio. The organization’s portfolio of projects and properties should evidence competent management and oversight. B. Previous Performance. The organization should have exhibited competence with any

previous CHDO activities. C. Management Capacity. The organization’s management should have the capacity and ability to manage additional development activities. D. Procedures. There should be policies and procedures in place to govern development activities. E. Project management. The organization should have procedures for monitoring the progress of a project and the capacity to monitor project-level cash flow and schedules. F. Personnel. There should be staff that is assigned responsibilities for housing G. development and personnel policies and job descriptions should be clear. G. Staff Skills. The strength of staff in the following areas shall be considered: (i). Legal/financial aspects of housing development (ii). Management of real estate development (iii).Oversight of design & construction management (iv).Marketing, intake (v). Property management (if applicable) H. Training. Staff should be encouraged to obtain training and develop skills. I. Member involvement. The organization’s membership should be active and in J. Support of the organization’s housing activities. K. Use of consultants. To what extent the CHDO has access to and makes use of qualified development consultants shall be considered, as well as how these consultants interact with staff. L. Funding access. The organization should have the ability to raise funds for the capital requirements of a project.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.12 MDA Reservations

MDA reserves the right to determine if the housing development experience and financial stability of the non-profit organization is adequate for certification and if the organization has the capacity to carry out HOME funded activities.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.13 Effective Period of CHDO Certification

In order to maintain a current state CHDO Certification, the CHDO must submit a complete application for funding through the MDA. The CHDO must be awarded grant funds. The certification period will be effective for the two (2) or three (3) year period of the contract. CHDOs will no longer be required to be recertified annually.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.14 The Consolidation Plan

Activities conducted by CHDOs must be consistent with the state’s Consolidated Plan. The Consolidated Plan identifies housing and community development needs in the state’s jurisdiction and provides long-term strategy for addressing those needs. The Consolidated Plan indicates the level of resources, which are allocated to each program. Each year the state must develop an Action Plan, which spells out which activities it will carry out and how much money will be spent in each area. The Consolidated Planning

process is an opportunity for CHDOs to provide input to the state on how its funds are allocated.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

6 Miss. Admin. Code Pt. 4, R. 7.15 How to Apply for CHDO Certification

A. Complete the CHDO Certification Application, including all requested documentation forms. B. Submit one (1) original and one (1) copy of the entire application. The application should be bound with a binder clip, 3-ring binders or any other forms of binding. C. The application may be mailed or hand delivered to the address below.

History

• Source: 42 USCA § 12701 et seq.; Pub. L. 101-625, title I et seq.; 24 CFR 92

Chapter 8 Emergency Shelter Grants Program

6 Miss. Admin. Code Pt. 4, R. 8.1 Program Overview

The Emergency Shelter Grants Program (ESG) is authorized by the Stewart B. McKinney Homeless Assistance Act of 1988 as Amended. Under the Emergency Shelter Grants Program, the Department of Housing and Urban Development (HUD) allocates funds by formula grant among eligible states and units of general local government. States and units of local government may use the ESG funds for renovation, rehabilitation or conversion of buildings for use as emergency shelters for the homeless, for the payment of operation and maintenance expenses, for the provision of essential services to homeless clients, and for homeless prevention activities. The program is designed to be the first step in a continuum of assistance to enable homeless individuals and families to move toward independent living as well as to prevent homelessness. The State of Mississippi proposes in the 2011 Emergency Shelter Grants Program to use the funds for operation and maintenance expenses. ESG funds will be distributed statewide to eligible local units of government and non-profit organizations that operate homeless shelters. Recaptured or De-obligated ESG funds may be used to supplement State Administration, to supplement existing projects which may require additional funds, to fund other eligible applicants, or to fund ESG eligible activities.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.2 Program Objective

The ESG Program funds will be made available to address the following: A. Shelter facility improvements (minor), operation and maintenance expenses B. Equipment purchase is limited to $5,000.00 per unit The use of ESG funds for the purchase of motor vehicles is prohibited.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.3 Administration

The Governor designated the Mississippi Development Authority (MDA) as the agency responsible for administering ESG funds.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.4 2011 Allocation

The 2011 ESG funds to be made available to the State of Mississippi will be published in the Federal Register. The One-Year Action Plan is based on an allocation of $2,002,150. This allocation is contingent upon the availability of funds to the State of Mississippi from the U. S. Department of Housing and Urban Development. The State will reserve less than five percent ($100,000) to assist in the administration of ESG funds. If requested, the State may make available administrative funds to grantees, not to exceed two percent of the grant requested.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.5 Application Submission Date

The Application Submission date will be May 20, 2011, no later than 4:00 p.m. Applications were submitted to Community Services Division, 501 North West Street, Suite 5-A, Jackson, Mississippi. No applications were accepted after 4:00 p.m. MDA’s time clock was the clock used for meeting the application submission deadline.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.6 Eligible Applicants

Local units of government and non-profit organizations that operate existing homeless shelters are eligible to submit applications in the ESG Program. Non-profit agencies applying for ESG funds to carry out homeless assistance must obtain certification that the project is approved by the local unit of government, per Section 42 of the McKinney Act as amended. The City of Jackson, being an entitlement city, receives a direct allocation of ESG funds from HUD. Therefore, applications from non-profits in the City of Jackson will not be accepted for funding by the Community Services Division.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.7 Match Requirements

Applicants must provide matching funds. Pursuant to 24 CFR Part 576 and 42 U.S.C. 11375 the ESG Program requires that ESG funds provided by HUD be matched with an equal amount of funds from other sources. The match amount may include the amount of funds from other sources, the value or fair rental value of any donated material or building (this source can only be utilized as match one time), the value of any lease on a building, any salary paid to staff to carry out the program of the recipient, and the value of the time and services (at a rate of $5.00 per hour) contributed by volunteers to carry out the program of the recipient.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.8 Grant Size

The maximum grant size is $75,000 and there is no minimum grant size. The State reserves the right to adjust the amount awarded, based on the amount of funds available.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.9 Threshold Requirements

A. Applications submitted by a local unit of government must include a copy of the

Resolution authorizing submission of this application. The Resolution must be adopted by the local unit of government and must be signed and dated by the local unit of government’s Chief Elected Official. B. Applications submitted by non-profit organizations operating homeless shelters must include a copy of the authorizing resolution. The Resolution must be adopted by the non- profit organization’s Board and must be signed and dated by the President of the Board. C. Applications from non-profit organizations operating homeless shelters must also include a letter from the local unit of government approving the submission of the application. The letter must refer to the current ESG Program Year for which the application is being submitted and be signed by the Chief Elected Official. D. To be eligible for 2011 funds, at least 80% of the 2010 project funds must be drawn in the IDIS system at the time an application is submitted. Any project funded with 2009 funds must be expended and a closeout package submitted to be eligible to apply for 2011 funds. And if funded, no funds may be drawn down on the new grant until the previously funded ESG project is closed out with CSD. E. Match requirement must be documented in the application. The matching amount must be equal to the amount of ESG funds being requested. The match amount may include funds from other sources, the value or fair rental value of any donated material or building (this source can only be utilized as match one time), the value of any lease on a building, any salary paid to staff to carry out the program, and the value of the time and services (at a rate of $5.00 per hour) contributed by volunteers to carry out the program. If match includes funds from other sources or the value of the time and services contributed by volunteers to carry out the program, applicants must provide a copy of the Memorandum of Understanding or Agreement, or letter of support from the entities providing match. This documentation must identify the match type, match amount and must cover the grant Program Year time period for this application. If a facility is to be used as matching funds, a recent appraisal (less than two years) of the facility must be included. A current appraisal is also required if the local unit of government is submitting an application on behalf of an existing shelter. If the value of any lease on a building is to be used as matching funds, a copy of the lease information indicating the lease amount must be included. If donated materials are to be utilized as match, documentation from the donor indicating the type of materials and their value, and the date or proposed date of the donation must be submitted in the application. F. Applicants must not have any unresolved audit or monitoring findings. In addition, if a community or organization has ANY CSD concerns that have not been resolved, then CSD may not review the application and the application may be disqualified from consideration in funding. This includes but is not limited to, failing to submit required reports, etc. G. Contracts will be sent out after the award is made. Environmental clearance and special conditions clearance must be completed within four (4) months of the award date or the contract may be voided. No request for cash will be processed until the environmental clearance is granted. Waivers to the four (4) months rule may be granted on a case-by-case basis. The Division Director will be the only signature authority for waivers. H. Any application that has been prepared by an application preparer who is involved in a pending debarment or suspension proceeding before a state or federal agent shall not be

reviewed until such time as the debarment proceeding has been finally resolved. Additionally, no person who is involved in a suspension or debarment proceeding shall be allowed to administer a CDBG, ESG or HOME project until such time as the suspension or debarment process or finding is resolved. I. The shelter board must be composed of at least one (1) homeless or former homeless person in a decision-making capacity.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.10 Activities

Efforts will be made to maintain the operation of existing facilities that have a demonstrated history of efficient management, including services to the hard-to-reach homeless. The following information will be required in each funding request: A. The nature and extent of homeless need for emergency shelter within the applicant's jurisdiction and the manner in which the applicant proposes to address the need; B. Identification of agencies proposed to provide services through the program, any on- going services they provide to the homeless population, and a description of the agencies' relationship to the local government; C. A description of proposed program activities and the budget request relating to: payment of maintenance, operation, insurance, utilities, and furnishings; D. A description of the source(s), amount(s), and status of matching funds; E. The extent to which the proposed activities will carry out the objectives established by the State; F. The applicant's method and timeframe to implement the proposed activities; and G. The applicant’s certification that activities assisted through the program will comply with applicable regulations regarding historic properties and environmental considerations.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.11 Distribution

The ESG funds will be distributed in accordance with the State's Consolidated Plan. The selection process is based on the possible award of 150 points on the ESG Application. The State intends to distribute ESG funds statewide to eligible applicants using a competitive application process. The State has designed specific criteria that will be used to rate the applications. Points will be assigned to each rating criterion based on the data provided in the application and consistent with the needs in the Consolidated Plan. Each application will stand on its own.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.12 Applicant Obligations

Applicants may be contacted for clarification of the information presented in the application, but additional information that can affect the rating of the project cannot be submitted. Applicants with the highest scores will be funded until funds are exhausted. In case of a tie, the application that has the highest poverty rate for the entity's respective county will rate higher. The State will use the most recent rate. If a tie still exists, the unemployment rate for the entity’s respective county will be used. The Community Services Division will also reject any applications if they are incomplete or do not provide desired services.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.13 Site Visits

Site visits will be conducted to verify information submitted in the application for applicants receiving the highest ratings. A site visit does not imply or denote that an applicant will be funded. The State reserves the right to decrease the points awarded in any rating factor based on information gained during a site visit. The following Habitability Standards need to be met for applicant to receive funding: A. Structure and Materials: The shelter building should be structurally sound to protect residents from the elements and not pose any threat to health and safety of the residents. B. Access: The shelter must be accessible, and there should be a second means of exiting the facility in the case of emergency or fire. C. Space and Security: Each resident should have adequate space and security for themselves and their belongings. Each resident must have an acceptable place to sleep. D. Interior Air Quality: Each room or space within the shelter/facility must have a natural or mechanical means of ventilation. The interior air should be free of pollutants at a level that might threaten or harm the health of residents. E. Water Supply: The shelter’s water supply should be free of contamination. F. Sanitary Facilities: Each resident should have access to sanitary facilities that are in proper operating condition. These facilities should be able to be used in privacy, and be adequate for personal cleanliness and the disposal of human waste. G. Thermal-Environment: The shelter/facility must have any necessary heating/cooling H. facilities in proper operating condition. H. Illumination and Electricity: The shelter/facility should have adequate natural or artificial illumination to permit normal indoor activities and support health and safety. There should be sufficient electrical sources to permit the safe use of electrical appliances in the shelter. I. Food Preparation: Food preparation areas, if any, should contain suitable space and equipment to store, prepare and serve food in a safe and sanitary manner. J. Sanitary Conditions: The shelter should be maintained in a sanitary condition. K. Fire Safety-Sleeping Areas: There should be at least one working smoke detector in each occupied unit of the shelter facility. In addition, smoke detectors should be located near sleeping areas where possible. The fire alarm system should be designed for a hearing- impaired resident. L. Fire Safety-Common Areas: All public areas of the shelter must have at least one working smoke detector.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.14 Selection Process

The selection process is based on the awarding of points. Specific selection criteria will be used to rate applications. All applications will be rated and points assigned to each based on data provided in the application. Thus, it is important to provide complete and concise information for all questions.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.15 Complete Questionnaire

In order to receive points, all questions must be answered completely. If the space provided to answer questions is not sufficient and the applicant needs additional space to answer a question in its entirety, the applicant must clearly reference the location of this additional information (i.e., see Attachment A, See By-laws, page 3). Applicants must be very specific when indicating additional space is needed to answer any questions.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.16 Rating Factors

The rating factors and maximum points for the Application for the 2011 Emergency Shelter Grants Program Year are as follows:

Rating Factor Points Target Population 35 Program Design 20 Applicant Capacity 50 Documented Need 20 Community Coordination 25 Total Points Available 150

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.17 Explanation of Rating Factors

A. Target Population: Applications that target two or more of the following populations will receive a maximum of 35 points. Applications that target only one population will be rated based on the scale below. In order to receive points, documentation that indicates the applicant’s Target Population must be submitted. Applicants may submit marketing material, Articles of Incorporation, By-laws or some formal document containing the organization’s Mission Statement or Purpose. (Applicants must also specifically identify which document contains the information and provide the page numbers). Local units of government must submit this information on behalf of the shelters they will be assisting with ESG funds.

Category Points Families 30 Victims of Domestic Violence 25 Veterans 20 Others 15 Children 10 Elderly 5

B. Program Design: Applicants will be rated on how their programs are designed to address the items listed below regarding their targeted population(s). In order to receive points the applicant must submit a formal copy of its Policies and Procedures document or Operational Manual describing these activities. Applicants must specifically identify which document contains the information and provide the page number. (i). The hard to reach homeless (outreach activities) (ii). The provision of supportive housing and ultimately permanent affordable housing (iii). The utilization of clients in the construction, renovation, maintenance or operation of the shelter facility pursuant to 24 CFR 576 (b). (iv). The inclusion of at least one current or former homeless person serving in a

policy-making capacity pursuant to 24 CFR 576 (b).

Criteria Points Program design includes 4 Areas 20 Program design includes 3 Areas 5 Program design includes 2 Areas of less 0

C. Applicant Capacity: (i). Applications will be awarded points based on the applicant’s current ability to operate homeless programs. Applicants will be rated on their personnel’s ability to perform administrative and operational functions. In order to receive points the applicant must submit a formal copy of its Policies and Procedures document or Operational Manual that describes the activities listed below. (Applicants must also specifically identify which document contains the information and provide the page number). (a) Client application process and procedures for intake (b) Client tracking system (what type of statistics does your organization obtain and maintain on your clients, i.e., income information, educational level, employment status, health information, household size, marital status, gender, age, average length of stay, chronic homelessness, substance abuse history, etc) (c) Client follow-up system (location and condition of client after leaving shelter) (d) Financial accounting system (e) Policy regarding the termination of assistance and grievance procedure pursuant to 24 CFR Part 576.56 (a) (3). Applicants must have in place a policy that governs the termination of assistance provided by ESG funded activities to participants who violate program requirements. The policy must provide the procedure that governs the termination and grievance process.

Criteria Points Organization has standard operating procedures for all 5 Areas 15 Organization has standard operating procedures for 4 Areas 5 Organization as standard operating procedures for less than 4 Areas 0

(ii). Applicant’s ability to provide and/or coordinate supportive services for clients. In addition to providing overnight sleeping accommodations, applicants are encouraged to provide supportive services to clients either directly or through partnering with other entities. In order to receive points, marketing materials, Articles of Incorporation, By-laws containing Mission Statement or Purpose, Policies and Procedures document or Operational Manual, must be submitted for documentation. If services are provided by another entity, a copy of the Memorandum of Understanding or Agreement, or letter of support with these entities indicating the provision of services must be submitted. The Memorandum of Understanding or Agreement, or letter of support, must cover the grant Program Year period.

Criteria Points Job training related services are available 5 Child care related services are available 5 Counseling/Therapy services are available 5 Medical related services are available 5 Transportation services are available 5 Budgeting/Financial Management Training services are available 5

(iii). Applicant has previous experience administering a state or federal grant program. In order to receive points, applicants must identify the grant received and submit a copy of the grant award letter. Applicants will receive points based on the following:

Criteria Points Applicant has experience administering a grant program 5 Applicant does not have experience administering a grant program 0

D. Documented Need: Applicant sufficiently documents need for services proposed in application. Please include the following information (information must be based on a January through December calendar year): (i). Homeless statistical information for applicant’s locale (ii). The overall number of individuals served for last year (for any services provided) (iii).The number of individuals from the applicant’s specific target population served last year (for any services provided) (iv).The number of nights of sleeping accommodation services provided last year (v). The number of nights of sleeping accommodation services provided last year for individuals in the applicant’s target population (vi).The average length of stay of clients last year (vii).The number of other shelters in applicant’s locale (viii).The number of other shelters in applicant’s locale that serve the same target population as the applicant (ix). Information regarding economic conditions in the applicant’s locale (x). Information regarding the levels of entitlement assistance in the applicant’s locale The above listed items must be addressed in the Documented Need Narrative for points to be awarded. Applicants may certainly include any additional information that they deem necessary.

Criteria Points Applicant clearly identifies need for proposed services 20 Applicant does not clearly identify need for proposed services 0

E. Community Coordination: Applicant will provide additional needed services for their clients from resources in the community. To receive points, applicants must provide a copy of the Memorandum of Understanding or Agreement, or letter of support with each activity indicating coordination and the provision of services. The Memorandum of Understanding

of Agreement, or letter of support, must cover the grant Program Year period.

Criteria Points Applicant has 4 or more community resources 25 Applicant has 3 community resources 15 Applicant has 2 community resources 5 Applicant has less than 2 community resources 0

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.18 Review Process

The ESG Application Review process will consist of the following: first level review, second level review, and supervisory sign off. This ensures a fair and competitive process.

History

• Source: 42 U.S.C. 11301

6 Miss. Admin. Code Pt. 4, R. 8.19 Federal Requirements

All recipients will be required to comply with certain federal and state requirements. The following briefly describes major requirements that may apply. A. The requirements of OMB Circular No. A-87, Cost Principles for State and Local Governments, which addresses allowable cost shall apply to State recipients or any governmental sub recipient receiving ESG funds B. Non-profit organizations must follow the requirements of: (i). OMB Circular No. A-122, Cost Principles for Non-Profit Organizations (ii). 24 CFR Part 84, Grants and Agreements with Institutions of Higher Education, Hospital, and other Non-Profit Organizations (iii). 24 CFR Part 84.21(d), Bonding and Insurance (iv). 24 CFR Part 84.21(a), Standards for Financial Management Systems (v). 24 CFR Part 84.51, Monitoring and Reporting Program Performance, Paragraph 2 (vi). 24 CFR Part 84.40-84.50, Procurement Standards (vii). 24 CFR Part 84 or 84, Conflict of Interest C. Recipients are responsible for audit costs. Audits must be conducted in accordance with: (i). 24 CFR Part 44, Non-Federal Governmental Audit Requirements, and; (ii). OMB Circular A-133, Audits of Institutions of Higher Education and other Non- Profit institutions. D. Local units of government must follow the requirements for procurement of: (i). MDA (CSD) Policy Statement #94-002 (ii). 24 CFR Part 85, (iii). State of Mississippi Procurement laws, or (iv). Mississippi Development Authority requirements, whichever one is more stringent. E. All contracts for ESG funds are subject to audit in accordance with OMB Circular A-133. F. ESG funds from each federal fiscal year (i.e., the allocation and any reallocated funds from the particular federal fiscal year appropriated) will be closed out when all the

requirements of 24 CFR Part 576.85, Closeouts, have been met. G. Each applicant must establish and maintain sufficient records to enable the State to determine whether the applicant has met the requirements of 24 CFR Part 576.87, Recordkeeping. H. Applicants must comply with the requirements of 24 CFR Part 576.79, Conflict of Interest. I. The federal requirements of 24 CFR Part 576.51, Displacement, Relocation, and Acquisition, concerning relocation must be followed at all times when a unit to be rehabilitated is occupied prior to the beginning of construction to rehabilitate the unit.

History

• Source: 42 U.S.C. 11301

Chapter 9 Community Development Block Grant Programs

6 Miss. Admin. Code Pt. 4, R. 9.1 National Objectives

The State Community Development Block Grant (CDBG) program was established to aid in the development of viable communities that provide their residents with suitable living environment and economic opportunities. Mississippi's State CDBG program is designed to be consistent with this primary objective by providing funds for local projects with activities that meet one of the following national objectives of the Community Development Act of 1974, as amended: A. Benefits to Low/Moderate Income Persons; B. Give maximum feasible priority to activities that will benefit low- and moderate- income persons; C. Slum or blight; D. Aid in the prevention or elimination of slum or blight; E. Urgent Needs F. Meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community and where other financial resources are not available to meet such needs.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.2 State Objectives

The State has designed the program to be consistent with national objectives and to address economic and community development needs of the citizens of Mississippi. Several state objectives have been established to meet this purpose: A. Increase local capacity to deliver resources B. Streamline procedures for implementing grants C. Encourage early completion of ongoing grants D. Encourage MBE/WBE and Section 3 participation in the program E. Assist non-entitlement units of government increase business and employment opportunities F. Assist non-entitlement units of government improve the availability and adequacy of basic community facilities G. Assist non-entitlement units of government improve the availability and adequacy of community service facilities and self help activities H. Ensure adherence to all applicable federal and state regulations by all parties involved

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.3 Adjustments

The State reserves the right to make adjustments to the amount designated for any program category based on the demand created by the applications. The CDBG Program allows for one percent of the yearly allocation to be used by the State for technical assistance. However, MDA intends to use the full amount allowed by HUD regulations as State Administration. These funds will be used in accordance with HUD CPD Notice 99–09.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.4 Transfer of Funds

The State reserves the right to transfer any unobligated funds into any category to help meet the timely distribution requirement. If HUD makes a special allocation to the State, the State reserves the right to fund any current application from the special allocation. Should the State’s HUD allocation be adjusted, the State will adjust program categories.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.5 Maximum Grant Size

The State reserves the right to adjust maximum grant size, local match requirements, job creation goals, cost per jobs, and certain threshold requirements in order to assist local communities with projects on a case-by-case basis due to a State and/or Federal natural disaster declaration.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.6 Application Costs

Application preparation cost may be awarded to funded applications as a pre-award cost.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.7 Receipt of Program Income

The State will receive program income from prior CDBG awards. The State requires communities to return program income generated to the State; however, MDA may permit the local units of government to retain program income to continue the activity from which such income is derived on a case-by-case basis.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.8 Program Income Fund

Program income returned to the State will be placed in a Program Income Fund and distributed for eligible CDBG activities as approved by MDA. Up to 2% of these funds may be used for state administrative purposes.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.9 Rules, Policies, and Other Requirements

All rules, policies, and other requirements of

the State's CDBG program are applicable to the program income funds received and distributed by the State.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.10 Recaptured Funds

The State will recapture funds previously awarded to a CDBG recipient for reasons such as, failure to satisfy a national policy objective, failure to comply with contractual conditions, or if awarded funds are not expended prior to the expiration of the grant contract. The State may allocate any recaptured funds into any program category. The State reserves the right to substitute recaptured funds for previously committed funds from any year in order to hasten completion of a program year. Any requests for supplemental funds will be considered on a case-by-case basis with funds granted only in those instances where the State can readily determine that additional funding is justified. Grant ceilings are not applicable when considering the awarding of these funds.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.11 Eligible Applicants

All cities and counties, except the entitlement cities of Biloxi, Gulfport, Hattiesburg, Jackson, Moss Point, and Pascagoula are eligible applicants for funding under Mississippi's CDBG program.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.12 General Criteria

A. Applicants may be contacted for clarification of information presented in the application after submission, but additional information that can affect the rating of the project cannot be submitted. B. A single activity should have a contiguous group of beneficiaries. Multiple activities may be considered on a case-by-case basis. C. Water projects that have fire protection as the primary purpose will be classified as a fire protection project unless there are major problems with the water system. D. If matching funds are being sought through another program (ARC, DEQ, RDA, EDA, CAP, etc.), applicants are required to submit evidence of the matching application. E. The State will review and rate all applications, but no award will be made (if F. applicable) until the final commitment and/or approval of matching funds. Applicants will have until __________ to secure final commitment and/or approval of matching funds. If by that time final commitment and/or approval is not in place, the State will remove the application from funding consideration. F. Swimming pools will not be eligible for funding under the Self-Help category. G. CDBG funds may not be used for general operating and maintenance expenses. The general rule is that any expense associated with repairing, operating, or maintaining public facilities, improvements and services is ineligible. Examples of operating and maintenance expenses that are generally ineligible include: maintenance and repair of publicly owned streets, parks, playgrounds, water and sewer facilities, neighborhood facilities, senior centers, center for persons with disabilities, parking and other public facilities and improvements. Other examples of maintenance and repair activities for

which CDBG funds may not be used include the filling of pot holes in streets, repairing of cracks in sidewalks, the mowing of grass in city or county parks, and the replacement of street light bulbs. This is taken from the State Community Development Block Grant Program’s Guide to National Objectives and Eligible Activities for State CDBG Program pages 2-112 and 2-113.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.13 Surveys

Project area and town wide surveys will be accepted. If using a survey to determine the low- and moderate-income benefit, it must have been conducted after April 1, 2008. Applicants using surveys to indicate population and income information must use the State approved Grant Survey Form provided by MDA and must include the signed Grant Survey Summary and Disclosure Form in the application. No other survey forms will be allowed unless the content is approved by MDA prior to the survey being taken. Surveys that do not meet the 80% response rate will not be accepted. Surveys must contain an adult household member signature or be initialed by the adult household member in order to be counted. Surveys will not be allowed/counted if they are not signed/initialed by the adult household member. If surveys were used for determining low- and moderate-income benefit, the application preparer is responsible for the surveys being correlated to a legible map and in proper order.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.14 Maps

A general project area map, showing the general location of the proposed project, with a more detailed insert (detailing project location), is required to be submitted with the application. Other map requirements are discussed in the application. The survey map must accompany the application.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.15 Purpose

The purpose of the Emergency category is to provide funding for any eligible CDBG activity necessary to address a community development need having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.16 Available Funds/Grant Size

If funds are available from any available program funds then awards will be made for Emergency projects. The maximum grant size shall be $100,000. The maximum amount of Administrative funds for the Emergency Category shall be $1,500 including Application Preparation. Application Preparation fee will be limited to $500 per project.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.17 Submission Dates

The State will accept FY 2011 Emergency Public Facilities applications beginning August 2, 2011.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.18 Threshold Requirements

Applicants must have no unresolved audit or monitoring findings. In addition, if a community has ANY CSD concerns that have not been resolved, then CSD may not review the application and the application may be disqualified from consideration in funding. This includes but is not limited to delinquent loan payments, failing to submit required reports, etc. Applications that are incomplete will not be reviewed and will be placed on the bottom of the list of request until such time as all information is submitted. Applicants that have an ongoing CDBG grant over three years old must get permission from the State to apply for an FY 2011 Emergency grant. In addition, applicants who have an ongoing Emergency Public Facilities or Urgent Needs grant will not be eligible to submit an additional Emergency CDBG Request.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.19 Application Process

Applicants must first contact the State regarding the submittal of an Emergency application. The initial contact should be by letter or fax and should address the following: A. The problem (or threat) and the proposed solution B. A cost estimate and documentation that reflects efforts to secure other funds was not successful C. How the situation poses an imminent threat to the health and welfare of affected residents, and D. Community’s budget for previous two years. If the condition meets the Emergency criteria and the applicant finds it preferable, pre-agreement costs can be negotiated with the local unit of government. No application may be submitted without prior approval. Applications will be considered in the order received until all funding is exhausted. Benefit to low- and moderate-income persons is the preferred national objective; however, it is possible to receive funding under the Urgent Needs national objective. Projects receiving Emergency funds must be closed out within twelve months of award receipt, or funds will be recaptured. Based on MDA’s evaluation of the request, a letter may be issued inviting a CDBG Emergency application. The letter will state the amount of CDBG funds that may be requested. The local unit of government will be given 45 days to submit the application.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 9.20 Selection Process

Requirements for funding consideration include the following: A. The problem (or threat) must be an eligible community development need that has a particular urgency because existing conditions pose a serious and immediate threat to the health and welfare of the community. B. The situation, if not addressed, must be a permanent threat to public health or welfare. C. The application must address other financial resources not being available to meet such needs, including a copy of the applicant's latest budget. D. The situation addressed by the applicant must be unanticipated and beyond the control of the local government.

E. The application must include documentation on the beneficiaries, including low- and moderate-income persons. F. The application must include documentation that the emergency occurred or was discovered within the last 18 months.

History

• Source: 24 CFR 570.480-497

Chapter 10 Public Facilities—Community Self-Help Program

6 Miss. Admin. Code Pt. 4, R. 10.1 Purpose

The Community Self-Help program is an effort to help communities address needs such as water, wastewater, downtown improvements, recreation (swimming pools and general maintenance are not eligible) and other CDBG eligible activities. The Community Self- Help program is a resource for small communities to meet local needs with less money. Self- Help is the development and use of a community's own resources (human, material and financial) to solve problems for less cost. This approach begins with the answer to a key question, "What can we afford?" and then initiates a local focus of control based on the applicant's design and plans for solving the problem. Self-Help refers to the collective effort of people working together to create or improve a service or facility (for example, a water system) that they will use in common, and which is not exclusively owned by any one person or household. Self-Help and volunteerism are not synonymous. Self-Help includes the use of volunteers as one technique among many that can reduce the cost of a needed community improvement. Self-Help is an exercise in communities developing and building their own capacity to come together to solve problems in a collective way.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 10.2 Available Funds/Grant Size

A total of up to $400,000 has been set aside for the Community Self-Help program. The maximum grant size is $100,000. The maximum amount of Administrative funds for the Self-Help Category shall be $5,000 including Application Preparation. Application Preparation fee will be limited to $1,500 per project.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 10.3 Submission Date

Assessment forms will be accepted beginning August 2, 2011. The Community, Local Government, and Financial Information Assessment forms must be completed and sent to MDA. After staff review, MDA will make a decision whether or not to invite an application. Only invited applications will be considered due to the limited amount of funds available. The letter inviting an application will state the amount of CDBG funds that may be requested. The local unit of government will be given 45 days to submit the application.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 10.4 Threshold Requirements

Applicants must have no open Public Facilities, Emergency/Urgent Needs, Planning or Self-Help grants and have no unresolved audit or monitoring findings. In addition, if a community has ANY CSD concerns that have not been resolved, then CSD may not review the applications and the application may be disqualified

from considerations in funding. This includes but is not limited to delinquent loan payments, failing to submit required reports, etc. All projects must benefit a minimum of 51% low and- moderate income persons and show a 30% cost savings. Swimming pools will not be eligible for funding under the Self-Help category. This includes construction or rehabilitation of swimming pools.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 10.5 Selection Process

Applications will be evaluated on the basis of feasibility, readiness, capacity and how the project fits into the overall improvement efforts of the community.

History

• Source: 24 CFR 570.480-497

Chapter 11 Economic Development—Public Improvements

6 Miss. Admin. Code Pt. 4, R. 11.1 Purpose

The purpose of the CDBG Economic Development Public Improvements category is to assist units of local government in the funding of eligible infrastructure improvements in the support of better paying private sector jobs; Projects having retained jobs and those creating public sector jobs shall be reviewed on a case-by-case basis and if funds are limited, these type projects will have a lower priority for funding. The use of these funds is directly associated with the creation or retention of jobs of which at least 51% must be low- and moderate-income. Each project will be reviewed for eligibility on a case-by-case basis.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 11.2 Available Funds/Grant Size

The State will set aside $12,600,000 to provide funding for eligible CDBG economic development activities. A maximum grant size of $650,000 and a minimum of $100,000 will apply to all applicants. Projects associated with creating 250 or more jobs may be eligible to receive a maximum of $1,000,000. There will be no increase of grant size for joint applicants. Upon receipt of written justification, MDA reserves the right to adjust the maximum grant size, local match requirement, job creation goals, and cost per job with economic development projects on a case-by-case basis. The maximum amount of Administrative funds for the Economic Development grant category shall be $40,000 including application preparation. Application preparation fee will be limited to $5,000 per project.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 11.3 Submission Date

CSD will accept proposals throughout the year.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 11.4 Threshold Requirements A

Applicants must have no unresolved audit or monitoring findings. In addition, if a community has ANY CSD concerns that have not been resolved, then CSD may not review the application and the application may be disqualified from consideration in funding. This includes but is not limited to delinquent loan payments, failing to submit

required reports, etc. B. The proposed activities must be associated with creating and/or retaining 20 or more jobs. However, Small Governments may be considered for funding with a minimum of 15 jobs. Projects having retained jobs and those creating public sector jobs shall be reviewed on a case-by-case basis and if funds are limited these type projects will have a lower priority for funding. MDA may consider proposals that are based on full time job equivalents. One full-time job is equivalent of a minimum of 1,820 annual work hours. C. CDBG assistance per job must be $20,000 or less. D. The applicant must have a Memorandum of Agreement executed with the business to create and/or retain the jobs and to make the investment as described in the application. The highest official within both the local government and the benefiting business/industry must sign this agreement. E. CDBG participation is limited to a maximum of 50% of the total project cost. F. Any eligible applicant for 2011 Economic Development funds that has an Economic Development grant over three years old must receive special permission from MDA to apply. G. Applicants from Tier 1 or 2 counties must provide a minimum of 10% local cash match towards the eligible infrastructure improvements. Applicants from a Tier 3 county must make a best effort to provide a 10% local cash match. Federal or state loans may be used to meet this requirement. In-kind services may also be used to meet this requirement.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 11.5 Application Process

Based on MDA’s project review process, the local unit of government seeking Economic Development funding must first submit a project proposal. Based upon an initial review of the proposal, MDA may require a meeting with relevant parties to discuss the project. Then, MDA may issue a letter inviting a CDBG Economic Development application. The local unit of government will be given 90 days to submit the application.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 11.6 Selection Process

Applications will be evaluated based on the following: A. Eligibility and project readiness B. Local financial commitment C. Business investment D. Wages paid and benefits offered E. Company’s financial condition Applications that were not funded in Program Year 2010 because no funds were available may be considered for funding under the Program Year 2011 guidelines.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 11.7 Performance Measures

Beginning October 2006, HUD required that all recipients provide additional information to better measure the achievements of Federal programs. By law, all Federal agencies are required to measure outcomes of their programs and these measurements will be directly linked to funding decisions. The following information includes an objective,

possible outcomes, and possible indicators for each program category. This information will be used to assist MDA in reporting performance outcome measures to HUD.

History

• Source: 24 CFR 570.480-497

6 Miss. Admin. Code Pt. 4, R. 11.8 Job Category Definitions

A. Officials and Managers: Occupations requiring administrative personnel who set broad policies, exercise overall responsibility for execution of these policies, and direct individual departments or special phases of a firm’s operations. Includes: officials, executives, middle management, plant managers, and superintendents, salaried supervisors who are members of management, purchasing agents and buyers, and kindred workers. B. Professional: Occupations requiring either college graduation or experience of such kind and amount as to provide a comparable background. Includes: accountants and auditors, airplane pilots and navigators, architects, artists, chemists, designers, dieticians, editors, engineers, lawyers, librarians, mathematicians, natural scientists, registered professional nurses, personnel and labor relations workers, physical scientists, physicians, social scientists, teachers, and kindred workers. C. Technicians: Occupations requiring a combination of basic scientific knowledge and manual skill which can be obtained through about 2 years of post high school education such as is offered in many technical institutes and junior colleges, or through equivalent on-the-job training. Includes computer programmers and operators, drafters, engineering aides, junior engineers, mathematic aides, licensed practical or vocational nurses, photographers, radio operators, scientific assistants, surveyors, technical illustrators, technicians (medical, dental, electronic, physical science) and kindred workers. D. Sales: Occupations engaging wholly or primarily in direct selling. Includes: advertising agents and sales workers, insurance agents and brokers, real estate agents and brokers, sales-workers, demonstrators, retail sales workers, and sales clerks, grocery clerks and cashiers, checkers, and kindred workers. E. Office and Clerical: Includes all clerical-type work regardless of level of difficulty, where the activities are predominantly nonmanual though some manual work not directly involved with altering or transporting the products is included. Includes: bookkeepers, cashiers, collectors (bills and accounts), messengers and office helpers, office machine operators, shipping and receiving clerks, stenographers, typists, and secretaries, telegraph and telephone operators, and kindred workers. F. Craft Workers (skilled): Manual workers of relatively high skill level having a thorough and comprehensive knowledge of the processes involved in their work. Exercise considerable independent judgment and usually receive an extensive period of training. Includes: the building trades, hourly paid supervisors and lead operators (who are not members of management), mechanics and repairers, skilled machining occupations, compositors and typesetters, electricians, engravers, job setters (metal), motion picture projectionists, pattern and model makers, stationary engineers, tailors, and kindred workers. G. Operatives (semi-skilled): Workers who operate machines or other equipment or perform other factory-type duties of intermediate skill level which can be mastered in a few weeks and require only limited training. Includes: apprentices (auto mechanics,

plumbers, bricklayers, carpenters, electricians, machinists, mechanics, building trades, metalworking trades, printing trades, etc.), operatives, attendants (auto service and parking), blasters, chauffeurs, delivery workers, dressmakers and sewers (except factory), dryers, furnace workers, heaters (metal), laundry and dry cleaning, operatives, milliners, mine operatives and laborers, motor operators, oilers and greasers (except auto), painters (except construction and maintenance), photographic process workers, boiler tenders, truck and tractor drivers, weavers (textile), welders and flame cutters, and kindred workers. H. Laborers (unskilled): Workers in manual occupations which generally require no special training to perform elementary duties that may be learned in a few days and require the application of little or no independent judgment. Includes: garage laborers, car washers and greasers, gardeners (except farm) and ground keepers, stevedores, wood choppers, laborers performing lifting, digging, mixing, loading and pulling operations, and kindred workers. I. Service Workers: Workers in both protective and nonprotective service occupations. Includes: attendants (hospital and other institutions, professional and personal service, including nurses aides and orderlies), barbers, char-workers and cleaners, cooks (except household), counter and fountain workers, elevator operators, firefighters and fire protection guards, doorkeepers, stewards, janitors, police officers and detectives, porters, waiters and waitresses, and kindred workers.

History

• Source: 24 CFR 570.480-497

Chapter 12 Mississippi Main Street Investment Grant Fund

6 Miss. Admin. Code Pt. 4, R. 12.1 Purpose

The Mississippi Main Street Investment Grant Fund (MMSIGF) program, administered by the Mississippi Development Authority (MDA), is designed for making grants to municipalities to assist with maintaining and improving the viability of Revitalization Zones. The proceeds of a grant made to a municipality under this section may be used for maintaining and/or improving the viability of a Revitalization Zone through means deemed appropriate by the governing authorities of the municipality. The Mississippi Main Street Investment Grant Fund was authorized under Miss. Code Ann. § 57-1-601.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.2 Rule 12.2

The Mississippi Development Authority has designed the program guidelines to assure that these legislatively appropriated funds are invested to provide long-term sustainable improvements in locally defined and planned Revitalization Zones. To achieve this purpose, MDA has created three program priorities defined in detail within the Guidelines. These three priorities are as follows: Priority 1: Economic Development Improvements; Priority 2: Community Development Improvements; and Priority 3: Public Improvements. MDA award decisions will be weighted toward those grant applications that maximize job creation, private capital investment and long-term sustainable community development activities that will lead to future job creation and private capital investment.

Rule 12. 3 Amendments. These guidelines may be amended by MDA at any time. MDA, at its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

History

• Source: Miss. Code Ann. § 57-1-601
• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.4 Eligible Applicants

Municipalities with a population of less than fifteen thousand (15,000) according to the latest federal decennial census at the time the municipality submits an application to MDA.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.5 Eligible Projects

Projects must be directly related to the implementation of a municipal determined and MDA approved Revitalization Zone.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.6 Revitalization Zone

An area in a municipality that is officially designated by ordinance or resolution of the governing authorities of the municipality as a revitalization zone and approved and certified by MDA as meeting the requirements of this section. Revitalization zones may embrace two or more separate parcels of real property. Revitalization zones may be publicly or privately owned.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.7 Priorities A

Economic Development Improvements - Projects that lead to growth of the state and local economy through private capital investment and new and improved job creation. (Specific companies to be identified.) B. Community Development Improvements - Projects that improve public infrastructure to indirectly benefit business location and expansion in the revitalization zone. Examples: Revitalization Zone public infrastructure such as water, sewer, roads, sidewalks, lighting, building facades, etc. C. Public Improvements- Projects that improve general public infrastructure that enhance the quality of the revitalization zone. Examples: Public building improvements, parks, recreation, etc.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.8 Grant Amounts

The amounts will be determined by MDA based upon the funds available at each application period and based upon the amounts requested in each application. The grant may not exceed ninety percent (90%) of the total project cost.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.9 Mississippi Employment Protection Act

All loan recipients and benefitting businesses entering into contracts with the Mississippi Development Authority represents and warrants that it will ensure compliance with the Mississippi Employment Protection Act and will register and participate in the status verification system of all newly hired employees. The term “employee” as used herein means any person that is hired to perform work within the State of Mississippi. As used herein, “status verification system” means the illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program or any other successor electronic verification system replacing the E-Verify Program. The Applicant agrees to maintain such compliance and, upon request of the State, to provide copy of each such verification to the State. The Applicant further represents and warrants that any person assigned to perform services hereunder meet the employment eligibility requirements of all migration laws of the State of Mississippi. The Applicant understands and agrees that any breach of these warranties may subject the Applicant to the following: (a) termination of this Agreement and ineligibility for any state or public contract in Mississippi for up to three (3) years, with notice of such cancellation/ termination being made public, or (b) the loss of any license, permit, certification or other document granted to the Applicant by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year, or (c) or both. In the event of such cancellation/termination, the Applicant would also be liable for any additional costs incurred by the State due to contract cancellation or loss of license or permit. (S.B. 2988, 2018 Regular Session).

History

• Source: Miss. Code Ann. § 71-11-3; 57-1-371; 57-1-373

6 Miss. Admin. Code Pt. 4, R. 12.10 Minority Business Enterprises

MDA encourages the use of Minority-owned Business Enterprises (MBE) and Women-owned Business Enterprises (WBE). The Applicant must comply with all nondiscrimination and equal employment opportunity requirements.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.11 Ineligible Costs

A. Mississippi Main Street Investment Grant Fund (MMSIGF) Program funds cannot be used for administrative costs, legal or appraisal fees. Program funds may not be used for working capital, gaming enterprises, or for general expenditures which would normally be covered under a local municipality’s general operating budget. Funds must be used only for the activities identified in the application and approved in the grant agreement. B. The Applicant may not utilize MMSIGF proceeds to make a loan or grant to any private entity, public entity, or individual(s). An applicant may allow another organization, entity or individual to implement the grant activity on their behalf, but the grant applicant will remain the responsible party for all program requirements. The applicant may not use the funds to retire any debts, except for current construction type loans directly related to the project.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.12 Application Process

To apply for MMSIGF Program, a completed grant application that is submitted by an eligible applicant must include the following attachments: A. A detailed description of the project and narrative explaining how the specific improvements will enhance the Revitalization Zone. B. The name of the proposed Revitalization Zone, which shall include the name of the municipality in which the Revitalization Zone is to be located, together with the words ‘Revitalization Zone.’ C. A description of the Revitalization Zone by metes and bounds. D. A map showing the parcels of the real property included in the Revitalization Zone and the present use of such parcels. E. A master plan for the Revitalization Zone that has been approved by sixty percent (60%) of the property owners within the Zone at the time of application submittal. F. Sources and Uses of Funds: Budget with detailed cost estimates. G. Detailed timeline for project implementation and completion. H. If applicable, executed copy of the applicant’s resolution committing other public funds and evidence that the matching funds are in place. I. If applicable, documentation of additional private investment. J. E-Verification for the applicant. K. Resolution from the applicant municipality authorizing submittal of the application.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.13 Fulfillment of Grant Application Requirements

The Applicant must fulfill the requirements of the standard grant application, which must be submitted to MDA for review and acceptance. An Applicant may only submit one application per funding period. MDA may reject any grant application that it deems is incomplete.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.14 Application Submission and Deadline

The Applicant must submit one original of the application to MDA. Complete applications must be submitted with bottom tabbed dividers in between each attachment. All documentation should have original signatures. The application deadline will be announced by MDA.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.15 Rule 12.15

Application Submission Address Mississippi Main Street Investment Grant Fund Mississippi Development Authority Community Incentives Division

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.16 Property Acquisition Proposal

If property acquisition is proposed, the Applicant must not purchase a building or facilities from individual(s), company(ies), or corporation(s) with MMSIGF proceeds, and subsequently lease them to the seller (previous owner) within 5 years of acquisition. The Applicant may not purchase a building that has been constructed in the last six months and may not purchase an existing building or facility for more than the appraised value. Before releasing any MMSIGF proceeds, the Applicant must provide title insurance on all real property acquisitions or title opinion on all other projects from the Applicant’s attorney.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.17 Limitation on Grant Amount Designated for Engineering or Architectural Costs

Up to 8% of the principal grant amount may be used for design work, i.e., engineer or architect. Engineering and/or architectural costs above 8% must be paid from other funding sources.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.18 Time Limitation on Use of Grant Funds

The Applicant will be required to expend all MMSIGF proceeds within two years from the date of grant approval, unless a waiver at MDA’s discretion is granted upon good cause shown. If the funds are not drawn within the two years, MDA will have the option to adjust the grant to the actual disbursements and recall the remaining funds.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.19 Selection Process

MDA staff will evaluate the application to determine if the project meets minimum program criteria. A staff review committee (CID Division Director, Community Development Bureau Manager, Program Manager) will evaluate and rank the Revitalization Zone project applications for application completeness and according to the MDA priorities. The MDA staff review committee will make a formal recommendation to MDA Executive Director for consideration and selection.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.20 Implementation Process

Upon being awarded a MMSIGF grant, a binding grant agreement will be executed between the Mississippi Development Authority and the local unit of government for the specific amount awarded to the applicant, and for the particular activity selected by the community.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.21 Construction and Expenses

Neither MDA nor non-MDA funds may be expended on the proposed project prior to the effective grant award date. Any expenses incurred before the effective date of the grant agreement will not be reimbursed by MDA. Construction may not begin prior to the effective grant award date. All funded projects are required to enter the construction phase within 12 months of the award date. Where construction has not begun within 12 months, the applicant must satisfactorily demonstrate why the project should be kept open or the award may automatically be voided.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.22 Procurement

All Applicant contracts and purchases must be made in accordance with normal bid and purchase laws of a municipality.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.23 Disbursement of Funds

All funds awarded must be spent for improvements within the scope of the original project description as stated in the grant application. Additionally, all funds will flow through the local municipality. A. MDA will release MMSIGF program proceeds for services rendered, on a reimbursement basis, for approved eligible costs incurred for the project. B. Local sponsors will have two (2) years from the date of the agreement to request reimbursement for MMSIGF funds. Failure to implement and complete the project within that time frame may result in the agreement being voided and funds de- obligated

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.24 Requests for Cash

MMSIGF funds are requested by using the MDA provided Request for Cash form. The Request for Cash form provides the necessary information about the recipient, project, and budget, along with the required signatures to authorize the request. The costs reported must be equal to the amount requested and disbursed including any matching funds. Signatures on both forms are required in order to process the request.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.25 Authorized Signatory Letter Requirement

An Authorized Signatory Letter must be sent no later than with the first Request for Cash and at any time there is a change in administration. The Authorized Signatory Letter will advise CID of the authorized signatories for the MMSIGF project.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.26 Address to Submit Completed Requests for Cash

Completed requests for cash must be submitted to:

The Mississippi Development Authority Community Incentives Division Post Office Box 849 Jackson, Mississippi 39205-0849

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.27 Submissions Must be Complete and Accurate

All forms submitted must be accurately completed or the request cannot be processed and will be returned to the recipient. Forms submitted with errors will delay the process and greatly impact the turnaround time for funds being released because all information must be verified and approved for payment prior to submission to DFA. According to State Statute, 45 days is allowed for the processing of cash requests. If after the 45 th day payment has not been received, please contact the Program Manager to check on the status of your request.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.28 Requests Submitted at End of Fiscal Year

Requests for Cash overlapping the State’s fiscal year (June 30 th ) or the sub-recipient’s fiscal year must be separated into two separate requests.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.29 Requests for Construction Expenses

All requests for construction expenses must include an itemized invoice approved by the engineer.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.30 Matching Funds

Matching Funds must be expended at a proportionate rate with MMSIGF Funds and recorded on the Request for Cash.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.31 Contract Modifications

The Community Incentives Division requires all MMSIGF recipients to receive approval prior to making contract amendments, modifications or extensions. MMSIGF recipients must submit correspondence and documentation associated with the request, signed under the original signature of the chief elected official or appointed executive officer, supporting the need for the change(s) or extension.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.32 Budget Modifications

The Community Incentives Division must approve any changes to the original budget prior to local action.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.33 Limitations on Use of Excess Funds

No approved applicant will be allowed to use excess funds to pay for project costs not accounted for in the original project description (outside the original application and approved scope of work). Additionally, if the recipients complete their project for less than the amount awarded, the excess funds can be requested for additional project work as long as there is no change from the scope of the original project.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.34 Grant Closeout

Once all funds have been disbursed or construction of project activities are complete, the local municipality should submit a completed close-out package to CID. Close-out packages should be checked for accuracy prior to submission to CID. Incorrect and/or incomplete close-out packages will be returned for corrections and will significantly delay the closing of the grant.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.35 File Maintenance

Maintaining an efficient filing system is critical to the administration and monitoring of your project. A successful monitoring experience hinges on the quality with which the local municipality maintains its filing system and the ease of obtaining information from those files.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.36 Establishment of a File System

When establishing a file system, local municipalities should consider using two categories to set up their files: grant files and project files. The grant files should contain documentation and information that relate to the overall funding and administration of your project. The project files should contain specific documentation and information pertaining to the MMSIGF project and should be maintained for a minimum of five (5) years from grant closeout or for the period required as specified by governing regulations.

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 12.37 Audit

Funds provided under the MMSIGF Program are subject to audit and/or monitoring by the MDA, Office of the State Auditor, or other appropriate agency such as, Department of Environmental Quality, and/or Department of Health, etc.

Adopted: March 28, 2023

History

• Source: Miss. Code Ann. § 57-1-601

6 Miss. Admin. Code Pt. 4, R. 13.1 Program Objective

A. The Mississippi Main Street Revitalization Grant Program Act (MMSRGP) administered by the Mississippi Development Authority (MDA), is designed for making grants available to selected Main Street Designated Community

programs to finance projects that will develop land use strategies and conduct activities that facilitate the conservation of Mississippi’s historic, cultural, natural, and scenic resources.

B. The MMSRGP Act is authorized under Senate Bill 2359, 2023 Regular Legislative Session (the “Act”). Funding for grants to eligible applicants is derived from appropriations or funds otherwise made available by the State Legislature.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.2 Eligible Recipient

Eligible recipients include a Main Street Designated Community that is a good-standing member of the MMSA (Mississippi Main Street Association), has obtained Section 501(c)(3) tax-exempt status or Section 501(c)(6) tax-exempt status from the Internal Revenue Service and possesses matching funds to match twenty percent (20%) of the total project cost.

A Main Street Designated Community will be ineligible under this program if their community was a recipient of a Main Street Revitalization Grant in the previous year.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.3 Eligible Projects

The intent of the Act is to make grants available to selected Main Street Designated Community programs for projects that will lead to the revitalization of Mississippi’s downtowns. Eligible costs for the expenditure of grant funds include the acquisition of land and any improvements thereon, preservation of historic downtown structures and sites, and initiatives that will produce a revitalization to the economy of the historic downtown areas.

Projects must have the potential to generate increased economic activity in the region. The MMSA will consider projects in relation to the following criteria:

A. The demonstration of local financial need; B. Projects that demonstrate high local impact; C. Projects that produce a high level of public benefit; D. Projects that demonstrate best practices in preservation; E. Projects that will have local administration and implementation capacity; F. The distribution of geographic size and location of the project;

G. Projects that will be completed on time; and H. Whether the community in which the project is located has not received funding under this section for the previous year.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.4 Approval Process for Grants

The MMSA shall accept applications from eligible recipients, prioritize their applications and submit a list of suggested recipients to the Legislature no later than December of each year. The Legislature will review and determine the projects for which to award grants to the selected eligible recipients through the MDA in an appropriation bill.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.5 Match Requirements

The Mississippi Development Authority will provide grant funds to the Main Street Designated Communities on a reimbursement basis, not to exceed Five Hundred Thousand Dollars ($500,000.00) per community each year. Grantees shall not receive compensation for their required twenty percent (20%) local match. Main Street Designated Communities with a population greater than ten thousand (10,000) will be required to have a local cash match of twenty percent (20%). Main Street Designated Communities with a population of less than ten thousand (10,000), will be required to have a local cash match of ten percent (10%) for the first One Hundred Thousand Dollars ($100,000.00) requested, then will be required to have a local cash match of twenty percent (20%) for any amount over One Hundred Thousand Dollars ($100,000.00).

Matching Funds must be expended at a proportionate rate with grant funds and recorded on the Request for Cash.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.6 Mississippi Employment Protection Act

All grant recipients entering into grant agreements with the Mississippi Development Authority must represent and warrant that they will ensure compliance with the Mississippi Employment Protection Act and will register and participate in the E-Verify System, the federal employment status verification system, of all newly hired employees.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.7 Repayment of Funds

Grant Agreements require repayment of funds by grantees if the grant was based upon fraudulent information provided by the applicant or the applicant fails to meet performance metric requirements as described in the grant agreement.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.8 Eligible Costs

Grants may be awarded for prospective purchases or for acquisitions of which the applicant has closed. In the latter case, the applicant shall demonstrate:

A. The closing occurred no more than twelve (12) months prior to the date of application for the grant; and B. The subject purchase was made to help preserve and revitalize the location and economy of a historic downtown community.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.9 Application Requirements

The application must be submitted by deadlines and procedures established by MMSA and include the following:

A. The name, address, and contact information of the applicant and the benefiting entity, if different;

B. A detailed description of the project and a narrative explaining how the project relates to the statutory priorities of the Act;

C. Current employment levels at the project site and an estimated increase, if any, as a result of the project (if applicable);

D. A description of the applicant’s investment in the project and all public and/or private sources of funding that have been secured and that will be utilized exclusively for the project;

E. Cost estimate: a cost estimate must be submitted by an engineer, architect, or appropriate official;

F. Timeline for implementation and completion of the project;

G. Budget sheet;

H. Project Maps and/or Construction Drawings, if applicable;

I. Executed copy of the local unit of government’s resolution of authorization to apply for grant funds (if the applicant is a public entity);

J. Executed copy of the local unit of government’s resolution committing matching funds to the project (if the applicant is a public entity);

K. Documentation of additional funds, if applicable (all matching funds must be committed and in place with documentation at the time of application);

L. Supporting documentation, such as pictures, company commitment letters,

letters of support from stakeholders, etc., if applicable;

M. Proof that E-Verification systems are in place, if applicable;

N. Proof of Secretary of State Status, if applicable.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.10 Audit

Funds provided are subject to audit and/or monitoring by the MDA, Office of the State Auditor, or other appropriate agency.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.11 Implementation and Financing

Grantees must adhere to Mississippi state procedures and guidelines relating to the implementation and financing of the approved project. Grantees must also submit any and all audit and financial statements as required by the State of Mississippi.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.12 Minority and Women Owned Business Enterprises

MDA encourages the maximum opportunity for increased participation by minority and women-owned business enterprises in the procurement of goods and services. MDA’s Minority Business Division and the Mississippi Procurement Technical Center can assist with minority and women-owned business enterprise outreach efforts. See www.mmbr.org or www.mscpc.com for more information.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.13 Disbursement of Funds

All funds awarded must be spent for improvements within the scope of the original project description as stated in the grant application.

Grant funds are requested by using the MDA provided Request for Cash form. The Request for Cash form provides the necessary information about the recipient, project, and budget, along with the required signatures to authorize the request. The costs reported must be equal to the amount requested and disbursed including any matching funds. Signatures are required in order to process the request.

All forms submitted must be accurately completed or the request cannot be processed and will be returned to the recipient. Forms submitted with errors will delay the process and greatly impact the turnaround time for funds being released because all information must be verified and approved for payment prior to submission to DFA. According to State Statute, 45 days is allowed for the processing of cash requests. If after the 45th day payment has not been

received, please contact the Program Manager to check on the status of your request.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.14 Grant Agreement Modifications

MDA requires all grant recipients to receive approval prior to making contract amendments, modifications, or extensions. Grant recipients must submit correspondence and documentation associated with the request, signed under the original signature of the chief elected official or appointed executive officer, supporting the need for the change(s) or extension.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.15 Reporting

Reporting requirements are subject to Mississippi law.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.16 Authorized Signatory Letter Requirement

An Authorized Signatory Letter must be sent no later than with the first Request for Cash. The Authorized Signatory Letter will advise MDA of the authorized signatories for the project.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.17 Close Out Process

Once all funds have been disbursed or project activities are complete, the grantee should submit a completed close-out package to MDA. Close-out packages should be checked for accuracy prior to submission to MDA. Incorrect and/or incomplete close-out packages will be returned for corrections and will significantly delay the closing of the grant.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.18 File Maintenance

Maintaining an efficient filing system is critical to the administration and monitoring of your project. A successful monitoring experience hinges on the quality with which the grantee maintains its filing system and the ease of obtaining information from those files.

When establishing a file system, grantees should consider using two categories to set up their files: grant files and project files. The grant files should contain documentation and information that relate to the overall funding and administration of your project. The project files should contain specific documentation and information pertaining to the project and should be maintained for a minimum of five (5) years from grant closeout or for the period required as specified by governing regulations.

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

6 Miss. Admin. Code Pt. 4, R. 13.19 Waiver

These guidelines may be amended by MDA at any time. MDA, at its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

Program Contacts. With questions or to request more information regarding the Mississippi Main Street Revitalization Grant Program Act, contact:

Mississippi Development Authority Community Incentives Division P.O. Box 849 Jackson, Mississippi 39205 601.359.3619 Adopted: November 15, 2023

History

• Source: Senate Bill 2359, 2023 Regular Legislative Session

Part 5 Policies, Procedures and Organization

Chapter 1 Debarment and Suspension Policy

6 Miss. Admin. Code Pt. 5, R. 1.1 Policy

In order to protect the public trust and interest imposed upon the Mississippi Development Authority (MDA), it is the policy of the agency to conduct business only with responsible persons. However, when it appears that a subgrantee’s and/or its agent, agents, and/or any entity’s conduct, as determined by the agency, creates a reasonable belief that a particular act or omission, which would be covered by this policy, has occurred, MDA shall implement discretionary actions known as debarment and suspension. Debarment and suspension are serious actions which shall be used only in the public interest and for the agency and the State Of Mississippi’s protection and not for purposes of punishment. MDA may impose debarment or suspensions for causes and in accordance with the procedures set forth herein.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.2 Coverage

This policy shall apply to all subgrantees, and/or its agent, agents, and/or anyone or any entity acting on behalf of a subgrantee, who have participated in, or are presently participating in MDA programs. For purposes of these regulations, transactions will be subdivided into (1) primary transactions, i.e., any transaction between MDA and the subgrantee, and/or its agent, agents, and/or anyone/any entity acting on behalf of a subgrantee, regardless of type, or (2) lower tier transactions, i.e., transactions between subgrantee, and/or its agent, agents, and/or anyone or any entity acting on behalf of a subgrantee, and another, regardless of type, under a primary transaction. When more than one agency has an interest in the proposed debarment or suspension of a person or entity, consideration shall be given to designating one agency as the lead agency for making the decision.

Rule 1.3 Effect of Action. Except to the extent prohibited by law, subgrantee's, and/or its agent, agents and/or anyone , or any entity who are debarred or suspended shall be excluded from primary transactions and lower tier transactions for the period of their debarment or suspension.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)
• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.4 Debarment

The MDA Executive Director, as the debarring official, or his designee, after consultation with the appropriate Division Director, may debar a subgrantee, and/or its agent, agents, and/or anyone or any entity acting on subgrantee’s behalf for any causes noted herein. However, the existence of a cause for debarment does not necessarily require that the subject be debarred. The seriousness of the person’s acts or omissions and any mitigating factors shall be considered in making any debarment

decision. Debarment means, for the purpose of the MDA, an action taken by an agency in accordance with these rules to exclude the subject from participating in a covered transaction.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.5 Causes for Debarment

Debarment may be imposed for: A. Conviction of or civil judgment for: (i). Commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public or private agreement or transaction; (ii). Violation of Federal or State antitrust statutes, including those prescribing price fixing between competitors, allocation of customers between competitors, and bid rigging; (iii). Commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, making false claims, or obstruction of justice; or (iv). Commission of any other offense indicating a lack of business integrity or business honesty that seriously and directly affects the present responsibility of a person. B. Violation of the terms of a public agreement or transaction so serious as to affect the integrity of an agency program, such as: (i). A willful failure to perform in accordance with the terms of two or more public agreements or transactions; (ii). A history of failure to perform or unsatisfactory performance of two or more public agreements or transactions; (iii). A willful violation of a statutory or regulatory provision or requirement applicable to a public agreement or transaction; or (iv). Any other cause of so serious or compelling a nature that it affects the present responsibility of a person, entity or the operation and/or integrity of a program. C. Any of the following causes: A procurement or nonprocurement debarment taken by any Federal agency pursuant to 48 CFR Subpart 9.4. (i). Knowingly doing business with a debarred, suspended, ineligible or voluntarily excluded person, in connection with a transaction, except as expressly permitted by the agency in writing; or (ii). Any other cause of so serious or compelling a nature that it affects the present responsibility of a person or entity.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.6 Procedures

MDA shall process debarment actions as informally as practicable, consistent with the principles of fundamental fairness using the procedures in Rules 1.7 through 1.11. A. Information concerning the existence of a cause for debarment from any

source shall be promptly reported, investigated, and referred, when appropriate, to the debarring official for consideration. After consideration, the debarring official, MDA’s Executive Director, or his designee, may issue a notice of proposed debarment. B. MDA shall establish an administrative file upon receipt of any information concerning a possible cause for debarment or suspension. This administrative file is the property of MDA and not subject to review by the public.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.7 Notice of Proposed Debarment

A debarment proceeding shall be initiated by written notice, through certified mail, to the respondent advising: A. That debarment is being considered; B. Of the reasons for the proposed debarment in terms sufficient to put the respondent on notice of the conduct or transaction(s) upon which it is based; C. Of the causes relied upon under R u l e1.5 "Causes for Debarment" above; D. Of the opportunity and procedures to contest the proposed debarment and a final adverse decision; and E. Of the potential effect of a debarment

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.8 Opportunity to Contest Proposed Debarment

Within 30 days after receipt of the notice of proposed debarment, the respondent may submit, personally or through a legal representative, in writing, information and arguments in opposition to the proposed debarment. A. Agency Proceeding As to Disputed Material Facts (i). In actions not based upon a conviction or civil judgment, if the debarring official finds the respondent's submission in opposition raises a genuine dispute over facts material to the proposed debarment, respondent(s) shall be afforded an opportunity to appear before the debarring official with a representative, submit written documentary evidence in the form of paper documents and sworn affidavits. MDA will accept sworn affidavits from respondent’s witnesses. (ii). A transcribed record of the Agency Proceeding may be made by the respondent, at their own cost, provided they have received the prior written approval of the debarring official. (iii). Technical rules of evidence shall be relaxed during Agency Proceedings. (iv). Respondent must obtain prior written approval of the debarment official regarding the use of a court reporter at least two weeks prior to the Agency Proceeding.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.9 Debarring Official’s Decision A

No Agency Proceeding Necessary. In actions based upon a conviction or civil judgment, or in which there is no genuine dispute over material facts, the debarring official shall make a decision on the basis of all the information in the administrative record, including any submissions made by the respondent. The decision shall be made within 30 days after receipt of any information and argument submitted by the respondent, unless the debarring official extends this period for good cause. B. Agency Proceeding Necessary (i). In actions in which an Agency Proceeding is necessary to determine disputed material facts, written findings of fact shall be prepared. The debarring official shall base the decision on the facts as found, together with any information and argument submitted by the respondent and any other information in the administrative record. (ii). The debarring official’s decision shall be made after the conclusion of the Agency Proceeding and careful consideration of all information provided by the parties involved with respect to disputed facts. C. Standard of Proof (i). In any debarment action, the cause for debarment must be established by a preponderance of the evidence. Where the proposed debarment is based upon a conviction or a civil judgment, the standard shall be deemed to have been met. (ii). Preponderance of the evidence is proof by information that, compared with that opposing it, leads to the conclusion that the fact at issue is more probably true than not. (iii). The burden of proof is on the agency proposing debarment. D. Notice of Debarring Official’s Final Decision (i). If the debarring official decides to impose debarment, (a). the respondent shall be given prompt written notice by certified mail: (b). Referring to the notice of proposed debarment; (c). Specifying the reasons for debarment; (d). Stating the period of debarment, including effective dates; and, (e). Advising that the debarment is effective for covered transactions throughout the agency. (ii). If the debarring official decides not to impose debarment, the respondent shall be given prompt written notice by certified mail of that decision. A decision not to impose debarment shall be without prejudice to a subsequent imposition of debarment by any other agency. (iii). The decision of the debarring official is final.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.10 Period of Debarment

A. Debarment shall be for a period of time commensurate with the seriousness of the cause(s). If a suspension precedes a debarment, the suspension period shall be considered in determining the debarment period. B. The debarring official may extend an existing debarment for an additional period, if that official determines that an extension is necessary to protect the public interest. C. Debarment for causes set forth in Rule 1.5(a)(4) through Rule 1.5(c)(3) generally should not exceed three (3) years. Where circumstances warrant, a longer period of debarment may be imposed. D. Debarment for cause set forth in Rule 1.5(a)(1), (2) and (3) generally shall not exceed seven (7) years. E. The debarring official may extend an existing debarment for an additional period, if that official determines that an extension is necessary to protect the public interest. However, a debarment may not be extended solely on the basis of the facts and the circumstances upon which the initial debarment action was based. If debarment for an additional period is determined to be necessary, the procedures set forth at Rule 5.7 "Notice of Proposed Debarment" shall be followed to extend the debarment. F. The respondent may request the debarring official reverse the debarment decision or to reduce the period or scope of debarment. Such a request shall be in writing and supported by documentation. The debarring official may grant such a request for reasons including, but not limited to: (i). Newly discovered material evidence; (ii). Reversal of the conviction or civil judgment upon which the debarment was based; (iii). Bonafide change in ownership or management; (iv). Elimination of other causes for which the debarment was imposed; Or, (v). Other reasons the debarring official deems appropriate. G. Where respondent's request to reduce the period or scope of debarment is based on reasons set forth at Rule 1.10(f) such request may not be submitted earlier than six (6) months after the final decision to debar. In no event may more than one such request be submitted within any 18-month period.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.11 Scope of Debarment

A. Debarment of a person under these regulations constitutes debarment of all its divisions and other organizational elements from all covered transactions, unless the debarment decision is limited by its terms to one or more specifically identified individuals, divisions or other organizational elements or to specific types of transactions.

B. The debarment action may include any affiliate of the participant that is specifically named and given notice of the proposed debarment and an opportunity to respond as set forth at Rule 1.7. C. The fraudulent, criminal or other seriously improper conduct of one participant in a joint venture, grant pursuant to a joint application, or similar arrangement may be imputed to other participants if the conduct occurred for or on behalf of the joint venture, grant pursuant to a joint application, or similar arrangement or with the knowledge, approval, or acquiescence of these participants. Acceptance of the benefits derived from the conduct shall be evidence of such knowledge, approval or acquiescence. D. Persons debarred will be placed on MDA’s Debarment List.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.12 Suspension

Suspension is a serious action to be imposed only when there exists adequate evidence of one or more of the causes set out in Rule 1.5 "Causes For Debarment", and immediate action is necessary to protect the public interest. For purposes of this agency, suspension is an action taken by MDA in accordance with the following regulations that immediately excludes a subgrantee and/or its agent, agents, and/or anyone/any entity from participating in transactions for a temporary period, pending investigation and such legal action, debarment, or other proceedings as may ensue. A. In assessing the adequacy of the evidence, the agency should consider how much information is available, how credible it is given the circumstances, whether or not important allegations are corroborated, and what inferences can reasonably be drawn as a result. This assessment should include an examination of basic documents such as grants, cooperative agreements, loan authorizations and contracts.

Rule 1.13 Causes for Suspension. Suspension may be imposed upon adequate evidence to suspect the commission of a debarment offense as listed in Rule 1.5 "Causes for Debarment". Indictment, conviction of a criminal misdemeanor or felony, or a civil judgment in a matter which has a direct bearing upon a person persistent responsibility and capacity to perform the contract or service in question, alone shall constitute adequate evidence for purposes of suspension actions.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)
• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.14 Procedures For Investigation and Referral

Information concerning the existence of a cause for suspension from any source shall be promptly reported, investigated, and referred, when appropriate, to the suspending official for consideration. After consideration, the suspending official may issue a Notice of Suspension. MDA shall process suspension actions as informally as practicable, consistent with principles of fundamental fairness, using the procedures in Rule 1.15

“Notice of Suspension”.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.15 Notice of Suspension

When a respondent is suspended, written notice, by certified mail, shall be immediately given: A. That suspension has been imposed; B. That the suspension is based on an indictment, conviction, or other adequate evidence that the respondent has committed irregularities seriously reflecting on the propriety of further agency dealings with the respondent; C. Describing any such irregularities in terms sufficient to put the respondent on notice without disclosing the agency's evidence; D. Of the cause(s) relied upon as set forth in Rule 1.5 "Causes For Debarment; E. Of the effect of the suspension.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.16 Suspending Official’s Decision

The suspending official may modify or terminate the suspension for reasons as set forth at Rule 1.10(f) or may leave it in force. However, a decision to modify or terminate the suspension shall be without prejudice, to the subsequent imposition of debarment.

Rule 1.17 Period of Suspension. Suspension shall be for a temporary period pending the completion of an investigation or ensuing legal action, or debarment. If legal, administrative or debarment proceedings are not initiated within 12 months after the date of the suspension notice, the suspension shall be terminated, unless the Executive Director determines that this time should be extended. The suspension may be extended for six (6) months. In no event may a suspension extend beyond 18 months, unless debarment proceedings have been initiated during that period.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)
• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.18 Scope of Suspension

The scope of a suspension is the same as the scope of a debarment (see Rule 1.11), except that the procedures of Rule 1.13 through Rule 1.17 shall be used in imposing a suspension.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

6 Miss. Admin. Code Pt. 5, R. 1.19 Settlement and Voluntary Exclusion

When it is in the best interest of the agency, MDA may, at any time, settle a debarment or suspension action. If a participant and MDA agree to a voluntary exclusion of the participant, such voluntary exclusion shall be entered on the Debarment List.

History

• Source: Miss. Code Ann. §57-5-5 (Rev. 2008)

Chapter 2 Rule-Making Oral Proceedings

6 Miss. Admin. Code Pt. 5, R. 2.1 Application of Chapter

This chapter applies to all oral proceedings held for the purpose of providing the public with an opportunity to make oral presentations or written input on proposed new rules, amendments to rules, and proposed repeal of existing rules before the pursuant to the Administrative Procedures Act.

History

• Source: Miss. Code Ann.§ 25-43-2.105 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 2.2 Request for Oral Proceeding

When a political subdivision, an agency, or a citizen requests an oral proceeding in regards to a proposed rule adoption, the requestor must submit a printed, typewritten, or legibly handwritten request. A. Each request must be submitted on 8-1/2” x 11” white paper. B. The request may be in the form of a letter addressed to the MDA. C. Each request must include the full name, telephone numbers, and mailing address of the requestor(s). D. All requests shall be signed by the person filing the request, unless represented by an attorney, in which case the attorney may sign the request.

History

• Source: Miss. Code Ann.§ 25-43-2.105 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 2.3 Notice of Oral Proceeding

Notice of the date, time, and place of all oral proceedings shall be filed with the Secretary of State’s Office for publication in the Administrative Bulletin. The agency providing the notice shall provide notice of oral proceedings to each requestor. The oral proceedings will be scheduled no earlier than twenty (20) days from the filing of the notice with the Secretary of State. The Agency Head, or designee who is familiar with the substance of the proposed rule, shall preside at the oral proceeding on a proposed rule.

History

• Source: Miss. Code Ann.§ 25-43-2.105 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 2.4 Public Participation Guidelines

Public participation shall be permitted at oral proceedings in accordance with the following: A. At an oral proceeding on a proposed rule, persons may make statements and present documentary and physical submissions concerning the proposed rule. B. Persons wishing to make oral arguments at such a proceeding may notify the MDA at least three business days prior to the proceeding and indicate the general subject of their arguments. The presiding officer in his or her discretion may allow individuals to participate that have not contacted the MDA prior to the proceeding. C. At the proceeding, those who participate shall indicate their names and addresses, indentify any persons or organizations they may represent, and provide any other information relating to their participation deemed appropriate by the presiding officer. D. The presiding officer may place time limitations on individual comments when necessary to assure the orderly and expeditious conduct of the oral proceeding. E. Persons making arguments are encouraged to avoid restating matters that have

already been submitted in writing. Written materials may, however, be submitted at the oral proceeding. G. Where time permits and to facilitate the exchange of information, the presiding officer may open the floor to questions or general discussion. The presiding officer may question participants and permit the questioning of participants by other participants about any matter relating to that rule-making proceeding, including any prior written submissions made by those participants in that proceeding. No participant shall be required to answer any question.

History

• Source: Miss. Code Ann.§ 25-43-2.105 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 2.5 Submissions and Records

Physical and Documentary Submissions presented by participants in an oral proceeding shall be submitted to the presiding officer. Such submissions become the property of the MDA, part of the rulemaking record, and are subject to the MDA’s public records request procedure. The MDA may record oral proceedings by stenographic or electronic means.

History

• Source: Miss. Code Ann.§ 25-43-2.105 (Rev. 2006).

Chapter 3 Declaratory Opinions

6 Miss. Admin. Code Pt. 5, R. 3.1 Model Rules

This chapter consists of model rules addressing the public’s request for declaratory opinions and the MDA’s disposition of requests for declaratory opinions.

History

• Source: Miss. Code Ann.§ 25-43-2.103 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 3.2 Application of Chapter

This chapter sets forth the MDA’s rules governing the form, content, and filing of requests for declaratory opinions, the procedural rights of persons in relation to the written requests, and the MDA’s procedures regarding the disposition of requests as required by Mississippi Code § 25-43-2.103.

History

• Source: Miss. Code Ann.§ 25-43-2.103 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 3.3 Scope of Declaratory Opinions

The MDA will issue declaratory opinions regarding the applicability to specified facts of: A. a statute administered or enforceable by the MDA, B. a rule promulgated by the MDA, or C. an order issued by the MDA.

History

• Source: Miss. Code Ann.§ 25-43-2.103 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 3.4 Scope of Declaratory Opinion Request

A request must be limited to a single transaction or occurrence.

History

• Source: Miss. Code Ann.§ 25-43-2.103 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 3.5 How to Submit Requests

When a person with substantial interest, as required by Section 25-43-2.103 of the Administrative Procedures Act, requests a declaratory opinion, the requestor must submit a printed, typewritten, or legibly handwritten request. A. Each request must be submitted on 8-1/2” x 11” white paper. B. The request may be in the form of a letter addressed to the MDA. C. Each request must include the full name, telephone numbers, and mailing address of the requestor(s). D. All requests shall be signed by the person filing the request, unless represented by an attorney, in which case the attorney may sign the request. E. Each request must clearly state that it is a request for a declaratory opinion.

History

• Source: Miss. Code Ann.§ 25-43-2.103 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 3.6 Signature Attestation

Any party who signs the request shall attest that the request complies with the requirements set forth in these rules, including but not limited to a full, complete, and accurate statement of relevant facts and that there are no related proceedings pending before any agency, administrative, or judicial tribunal.

History

• Source: Miss. Code Ann.§ 25-43-2.103 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 3.7 Request Content Requirement

Each request must contain the following: A. A clear identification of the statute, rule, or order at issue; B. The question for the declaratory opinion; C. A clear and concise statement of all facts relevant to the question presented; D. The identity of all other known persons involved in or impacted by the facts giving rise to the request including their relationship to the facts, and their name, mailing address, and telephone number; and E. A statement sufficient to show that the requestor has a substantial interest in the subject matter of the request.

History

• Source: Miss. Code Ann.§ 25-43-2.105 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 3.8 Reasons for Refusal of Declaratory Opinion Request

The MDA may, for good cause, refuse to issue a declaratory opinion. The circumstances in which declaratory opinions will not be issued include, but are not necessarily limited to: A. The matter is outside the primary jurisdiction of the MDA; B. Lack of clarity concerning the question presented; C. There is pending or anticipated litigation, administrative action or anticipated administrative action, or other adjudication which may either answer the question presented by the request or otherwise make an answer unnecessary; D. The statute, rule, or order on which a declaratory opinion is sought is clear and not in need of interpretation to answer the question presented by the request; E. The facts presented in the request are not sufficient to answer the question presented; F. The request fails to contain information required by these rules or the requestor failed to follow the procedure set forth in these rules; G. The request seeks to resolve issues which have become moot or are abstract or

hypothetical such that the requestor is not substantially affected by the rule, statute, or order on which a declaratory opinion is sought; H. No controversy exists or is certain to arise which raises a question concerning the application of the statute, rule, or order; I. The question presented by the request concerns the legal validity of a statute, rule, or order; J. The request is not based upon facts calculated to aid in the planning of future conduct, but is, instead, based on past conduct in an effort to establish the effect of that conduct; K. No clear answer is determinable; L. The question presented by the request involves the application of a criminal statute or sets forth facts which may constitute a crime; M. The answer to the question presented would require the disclosure of information which is privileged or otherwise protected by law from disclosure; N. The question is currently the subject of an Attorney General's opinion request; O. The question has been answered by an Attorney General's opinion; P. One or more requestors have standing to seek an Attorney General’s opinion on the proffered question; Q. A similar request is pending before this agency, or any other agency, or a proceeding is pending on the same subject matter before any agency, administrative or judicial tribunal, or where such an opinion would constitute the unauthorized practice of law; or R. The question involves eligibility for a license, permit, certificate or other approval by the MDA or some other agency and there is a statutory or regulatory application process by which eligibility for said license, permit, or certificate or other approval may be determined.

History

• Source: Miss. Code Ann.§ 25-43-2.103 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 3.9 Agency Response

Within forty-five (45) days after the receipt of a request for a declaratory opinion which complies with the requirements of these rules, the MDA shall, in writing: A. Issue an opinion declaring the applicability of the statute, rule, or order to the specified circumstances; B. Agree to issue a declaratory opinion by a specified time but no later than ninety (90) days after receipt of the written request; or C. Decline to issue a declaratory opinion, stating the reasons for its action. The forty-five (45) day period shall begin on the first business day after which the request is received by the MDA.

History

• Source: Miss. Code Ann.§ 25-43-2.103 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 3.10 Availability of Declaratory Opinions and Requests for Opinions

MDA Declaratory opinions and requests for declaratory opinions shall be available for public inspection and copying at the expense of the viewer during normal business hours. All declaratory opinions and requests shall be indexed by name, subject, and date of issue. Declaratory opinions and requests which contain information which is confidential or exempt from disclosure under the Mississippi Public Records Act or other laws shall be exempt from this requirement and shall remain

confidential.

History

• Source: Miss. Code Ann.§ 25-43-2.103 (Rev. 2006).

Chapter 4 Organization of the Mississippi Development Authority

6 Miss. Admin. Code Pt. 5, R. 4.1 Chapter Content

In accordance with Section 25-43-2.104(a) of the Mississippi Administrative Procedures Act, this chapter describes the Mississippi Development Authority’s duties and responsibilities, the organization of the Mississippi Development Authority’s office, its methods of operation, and how the public can contact the agency to make submissions or requests.

History

• Source: Miss. Code Ann. §25-43-2.104 (Rev. 2006)

6 Miss. Admin. Code Pt. 5, R. 4.2 Mississippi Development Authority’s Organization

The Mississippi Development Authority consists of an executive director appointed by the Governor, with the advice and consent of the Senate. The executive director shall be the executive officer of the department in the execution of any and all provisions of this chapter.

History

• Source: Miss. Code Ann. §57-1-5 (Rev. 2008).

6 Miss. Admin. Code Pt. 5, R. 4.3 Executive Director Duties

The executive director shall have the following powers and duties: A. To formulate the policy of the department regarding economic and tourist development of the State. B. To use and expend any funds from the state, federal or private sources coming into the department for the purposes provided pursuant to statute. C. To implement the duties assigned to the department and consistent with specific requirements of law, including but not limited to: (i). Support services to include legal, finance, data processing, personnel, communications and advertising, purchasing and accounting; (ii). Research and planning; (iii).Outreach, agency liaison and community development; (iv). Tourism, business travel and film; (v). Programs and assistance for existing state business and industry; (vi). Recruiting new business and industry into the state; (vii). Fostering and promoting of entrepreneurship and the creation of new business in the state; (viii). Programs aimed at competing effectively in the international economy; (ix). Programs relating to the development of the ports; (x). Such other areas as are within the authority and jurisdiction of the department and will promote and foster economic development; (xi). Salaries of associate directors, deputy directors and bureau directors may be set by the executive director of the department.

History

• Source: Miss. Code Ann. §57-1-5 (Rev. 2008).

6 Miss. Admin. Code Pt. 5, R. 4.4 Mississippi Development Authority Legislative Oversight Committee

There is a Mississippi Development Authority Legislative Oversight Committee charged to serve in an advisory capacity regarding matters under the jurisdiction of the MDA. However, the Committee shall have no jurisdiction or vote on any matter within the jurisdiction of the MDA.

History

• Source: Miss. Code Ann. §57-1-10 (Rev. 2008).

6 Miss. Admin. Code Pt. 5, R. 4.5 Advisory Council

The Governor shall appoint an advisory counsel to the agency consisting of twenty-five members, five from each congressional district. The Governor shall serve as chairman of the council. The members shall serve in an advisory capacity and serve without pay and compensation for expenses.

History

• Source: Miss. Code Ann. § 57-1-3 (Rev. 2008).

6 Miss. Admin. Code Pt. 5, R. 4.6 Contact Information

A current listing of contact information for the Mississippi Development Authority may be found at www.mississippi.org or obtained by calling (601)-359- 3449.

History

• Source: Miss. Code Ann. § 25-43-2.104 (Rev. 2006).

6 Miss. Admin. Code Pt. 5, R. 5.1 Rule 5.1

Authority and Purpose These Rules and Regulations are adopted in compliance with the Mississippi Public Records Act of 1983, Miss. Code Ann. §25-61-1 thru 25-61-19, and the Mississippi Ethics Commission’s Model for Public Records Rules. All records and portions of records not exempt from disclosure will be made available in accordance with the procedures outlined below.

“It is the policy of the Legislature that public records must be available for inspection by any person unless otherwise provided by this act. Furthermore, providing access to public records is a duty of each public body and automation of public records must not erode the right of access to those records.” Section 25-61-1, Miss. Code of 1972.

“All public records are hereby declared to be public property, and any person shall have the right to inspect, copy or mechanically reproduce or obtain a reproduction of any public record of a public body in accordance with reasonable written procedures adopted by the public body concerning the cost, time, place and method of access, and public notice of the procedures shall be given by the public body.” Section 25-61-5, Miss. Code of 1972.

The Act defines “public record” to include “all books, records, papers, accounts, letters, maps, photographs, films, cards, tapes, recordings or reproductions thereof, and any other documentary materials, regardless of physical form or characteristics, having been used, being in use, or prepared, possessed or retained for us in the conduct, transaction or performance of any business, transaction, work, duty or function of any public body, or required to be maintained by any public body.” Section 25-61-3(b).

The purpose of these rules is to establish the procedures the MDA will follow in order to provide full access to public records. These rules provide information to persons wishing to request access to public records of the MDA and establish processes for both requesters and the MDA staff that are designed to best assist members of the public in obtaining such access.

The purpose of the Act is to provide the public full access to public records concerning the conduct of government. The Act and these rules will be interpreted in favor of disclosure. In carrying out its responsibilities under the Act, the MDA will be guided by the provisions of the Act describing its purposes and interpretation.

History

• Source: Miss Code Ann. §§ 25-61-1, -61-5, -61-3(b)

6 Miss. Admin. Code Pt. 5, R. 5.2 Rule 5.2

About the MDA The Mississippi Development Authority is composed of the Business Incentives, Business Recruitment and Expansion, Business Research and Workforce Development, Community and Rural Development, Community Incentives, Energy and Natural Resources, Entrepreneur Center, International Trade, Minority and Small Business Development and Tourism divisions. Location: 501 North West Street, Suite 1500, Jackson, MS 39201 How to File a Request Any person wishing to request access to public records of the MDA or seeking assistance in making such a request should contact the MDA public records officer. All requests to examine, copy or obtain public records from the MDA must be in writing and delivered to the MDA via mail or in person. The request should provide as much detail as possible about the records being requested, include the preferred format (paper copy, flash drive, electronic or inspection) and must include the name, address, and contact information of the requester, including email address and phone number. Requests should be sent to:

The public records officer will oversee compliance with the Act, but another MDA staff member may process the request. Therefore, these rules will refer to the public records officer “or designee.” The public records officer or designee and the MDA will provide the “fullest assistance” to requester; ensure that public records are protected from damage or disorganization; and prevent fulfilling public records requests from causing excessive interference with essential functions of the MDA.

History

• Source: Miss Code Ann. §25-61-5 Mississippi Development Authority P.O. Box 849 Jackson, MS 39205

6 Miss. Admin. Code Pt. 5, R. 501 Rule 501

N. West Street, Suite 1500 Jackson, MS 39201 This information is also available on the MDA web site at www.mississippi.org.

6 Miss. Admin. Code Pt. 5, R. 5.3 Availability of Public Records (a) Hours for inspection of records

Public records are available for inspection and copying during normal business hours of the MDA, Monday through Friday, 8:00 a.m. to 5:00 p.m., excluding legal holidays. Records must be inspected at the office of the MDA. The time, place and manner of inspection and copying of records will not be allowed to interfere with other essential duties of the MDA. (b) Organization of records. The MDA will maintain its records in a reasonably organized manner, subject to the rules of record retention. The MDA will take reasonable actions to protect records from damage and disorganization. A requester shall not take the MDA records from the MDA offices. A variety of records are available on the MDA web site at www.mississippi.org and at www.transparency.ms.gov. Requesters are encouraged to view the documents available on the web site prior to submitting a records request. (c) Making a request for public records. Any person wishing to inspect or copy public records of the MDA should mail or hand deliver a hard copy of the request with the following information included:

1. Name of requester 2. Address of requester 3. Other contact information, including telephone number and any e-mail address 4. Identification of the public records adequate to locate the records 5. The date and time of day of the request

If the requester wishes to have copies of the records made instead of simply inspecting them, he or she should so indicate and make arrangements to pay for copies of the records or a deposit. Pursuant to Rule 1.8. Costs of Providing Public Records of this policy, standard 8 ½” X 11” photocopies will be provided at $.25 a page. (See No. 5.8 Costs of Providing Public Records for additional costs and charges).

History

• Source: Miss Code Ann. 25-61-5

6 Miss. Admin. Code Pt. 5, R. 5.4 Processing of public records requests- General (a) Providing access

The MDA acknowledges that “providing access to public records is a duty” and that “any person shall have the right to inspect, copy or mechanically reproduce or obtain a reproduction of any public record” in accordance with these policies. Sections 25-61-1, 61-5

T h e MDA will process requests in the order allowing the most requests to be processed in the most efficient manner. (b) Acknowledging receipt of request. Within seven (7) business days of receipt of the request, the public records officer will do one or more of the following: 1. Make the records available for inspection or copying; 2. If copies are requested and payment of a deposit for the copies, if any, is made or terms of payment are agreed upon, send the copies to the requester; 3. Provide a reasonable estimate of when the records will be available; or 4. If the request is unclear or does not sufficiently identify the requested records, request clarification from the requester. Such clarification may be requested and provided by telephone. The public records officer or designee may revise the estimate of when records will be available; or 5. Deny the request. (c) Consequences of failure to respond. If the MDA does not respond in writing within seven (7) business days of receipt of the request for disclosure, the requester should consider contacting the public records officer to determine the reason for the failure to respond. (d) Timetable for Processing. All requests to examine, copy or obtain public records will be approved or denied within fourteen (14) working days after the request is received. Some documents are exempt from disclosure (See Rule 1.6. Exemptions) including records furnished to the MDA by third parties referred to below (See Rule 1.7. Third Party Information). Third parties have twenty-one (21) days from the date of notification to obtain a court order protecting information deemed confidential.

No request will be processed until after payment is received, therefore, depending on when payment is made and/or the scope of the request, it may take longer than fourteen (14) working days before the documents are ready for inspection or to be released.

(e) Protecting rights of others. In the event that the requested records contain information that may affect rights of others and may be exempt from disclosure, the public records office will, prior to providing the records, give notice to such others whose rights may be affected by the disclosure. Such notice should be given so as to make it possible for those other persons to contact the requester and ask him or her to revise the request, or, if necessary, seek an order from a court to prevent or limit the disclosure. The notice to the affected persons will include a copy of the request.

(f) Records exempt from disclosure. Some records are exempt from disclosure, in whole or in part. If the MDA believes that a record is exempt from disclosure and should be withheld, the public records officer or designee will state the specific exemption and provide a brief explanation of why the record or a portion of the record is being withheld. If only a portion of a record is exempt from disclosure, but the remainder is not exempt, the public records officer or designee will redact the exempt portions, provide the

nonexempt portions and indicate to the requester why portions of the record are being redacted.

(g) Inspection of records. The MDA shall promptly provide space to inspect public records. No member of the public may remove a document from the viewing area or disassemble or alter any document. The requester shall indicate which documents, if any, he or she wishes the public body to copy.

The requester must claim or review the assembled records within thirty (30) days of the MDA’s notification to him or her that the records are available for inspection or copying. The MDA will notify the requester in writing of this requirement and inform the requester that he or she should contact the MDA to make arrangements to claim or review the records. If the requester or a representative of the requester fails to claim or review the records within the thirty-day period or make other arrangements, the MDA may close the request and refile the assembled records.

(h) Providing copies of records. After inspection is complete, the public records officer or designee shall make the requested copies or arrange for copying. (i) Providing records in installments. When the request is for a large number of records, the public records officer or designee will provide access for inspection and copying in installments, if he or she reasonably determines that it would be practical to provide the records in that way. If, within thirty (30) days, the requester fails to inspect the entire set of records or one or more of the installments, the public records officer or designee may stop searching for the remaining records and close the request. (j) Completion of inspection. When the inspection of the requested records is complete and all requested copies are provided, the public records officer or designee will indicate that the MDA has completed a diligent search for the requested records and made any located nonexempt records available for inspection. (k) Closing withdrawn or abandoned request. When the requester either withdraws the request or fails to fulfill his or her obligations to inspect the records or pay the deposit or final payment for the requested copies, the public records officer will close the request and indicate to the requester that the MDA has closed the request. (l) Later discovered documents. If, after the MDA has informed the requester that it has provided all available records, the MDA becomes aware of additional responsive documents existing at the time of the request, it will promptly inform the requester of the additional documents and provide them on an expedited basis.

Providing copies of records. After inspection is complete, the public records officer or designee shall make the requested copies or arrange for copying. (m) Providing records in installments. When the request is for a large number of records, the public records officer or designee will provide access for inspection and copying in installments, if he or she reasonably determines that it would be practical to provide the records in that way. If, within thirty (30) days, the requester fails to inspect the entire set of records or one or more of the installments, the public records officer or designee may stop searching for the remaining records and close the request. (n) Completion of inspection. When the inspection of the requested records is complete and all requested copies are provided, the public records officer or designee will indicate that the MDA has completed a diligent search for the requested records and made any located nonexempt records available for inspection. (o) Closing withdrawn or abandoned request. When the requester either withdraws the request or fails to fulfill his or her obligations to inspect the records or pay the deposit or final payment for the requested copies, the public records officer will close the request and indicate to the requester that the MDA has closed the request. (p) Later discovered documents. If, after the MDA has informed the requester that it has provided all available records, the MDA becomes aware of additional responsive documents existing at the time of the request, it will promptly inform the requester of the additional documents and provide them on an expedited basis.

History

• Source: Miss Code Ann. §§ 25-61-1, -61-5

6 Miss. Admin. Code Pt. 5, R. 5.5 Processing of public records requests – Electronic records (a) Requesting electronic records

The process for requesting electronic public records is the same as for requesting paper public records. (b) Providing electronic records. When a requester requests records in an electronic format, the public records officer will provide the nonexempt records or portions of such records that are reasonably locatable in an electronic format that is used by the public body and is generally commercially available, or in a format that is reasonably translatable from the format in which the public body keeps the record. Costs for providing electronic records are governed by Rule 1.8.

Customized access to data bases. With the consent of the requester, the MDA may provide customized access if the record is not reasonably locatable or not reasonably translatable into the format requested. The MDA may charge the actual cost for such customized access.

History

• Source: Miss Code Ann. §§ 25-61-3, -61-5

6 Miss. Admin. Code Pt. 5, R. 5.6 Rule 5.6

Exemptions The Public Records Act, as well as other statutes and court decisions, provide that a number of types of records are exempt from public inspection and copying. In addition, other statutes or rules of law, such as various privacy restrictions, may prohibit disclosure. Requesters should be aware of the following exemptions, outside the Public Records Act, that restrict the availability of some records held by MDA for inspection and copying:

(a) Academic records exempt from public access, see § 37-11-51. (b) Appraisal records exempt from access, see § 31-1-27. (c) Archaeological records exempt from public access, see § 39-7-41. (d) Attorney work product, examination, exemption, see § 25-1-102. (e) Birth Defects Registry, see § 41-21-205. (f) Bureau of vital statistics, access to records, see § 41-57-2. (g) Charitable organizations, registration information, exemption from public access, see § 79-11-527. (h) Concealed pistols or revolvers, licenses to carry, records, exemption, see § 45-9- 101. (i) Confidentiality, ambulatory surgical facilities, see § 41-75-19. (j) Defendants likely to flee or physically harm themselves or others, see § 41- 32-7. (k) Environmental self-evaluation reports, public records act, exemption, see § 49-2- 71. (l) Hospital records, Mississippi Public Records Act exemption, see § 41-9-68. (m) Individual tax records in possession of public body, exemption from public access requirements, see § 27-3-77. (n) Insurance and insurance companies, risk-based capital level requirements, reports, see § 83-5-415. (o) Judicial records, public access, exemption, see § 9-1-38. (p) Jury records exempt from public records provisions, see § 13-5-97. (q) Licensure application and examination records. exemption from Public Records Act, see § 73-52-1. (r) Medical examiner, records and reports, see § 41-61-63. (s) Personnel files exempt from examination, see § 25-1-100. (t) Public records and trade secrets, proprietary commercial and financial information, exemption from public access, see § 79-23-1; § 25-61-9 (u) Workers' compensation, access to records, see § 71-3-66. (v) Records subject to privilege, such as Attorney/Client, Physician/Patient, etc. (w) Economic Development, see § 57-1-14.

History

• Source: Miss Code Ann. § 25-61-11, Miss. Code Ann. § 57-1-1

6 Miss. Admin. Code Pt. 5, R. 5.7 Third Party Information

Upon request to inspect or copy any document so designated, the MDA shall notify the person who filed the document. Twenty-one (21) days after such notice, the document will be made available for public inspection or copying unless the filer shall have obtained a court order protecting such records as confidential pursuant to Section 25-61-9, Miss. Code Ann. of 1972.

Any person filing documents with the MDA shall, prior to filing, redact from the documents any social security numbers, account numbers or dates of birth not required to be listed. The MDA shall determine on a case-by-case basis whether similar information may be redacted by the filer to prevent identity theft. In no event will the MDA bear any responsibility for a filer’s failure to redact such information which leads to or may lead to identity theft or other crime or loss.

History

• Source: Miss Code Ann. § 25-61-9

6 Miss. Admin. Code Pt. 5, R. 5.8 Costs of providing public records (a) Costs for paper copies

Section 25-61-7(1), Miss. Code of 1972, reads as follows: “Except as provided in subsection (2) of this section, each public body may establish and collect fees reasonably calculated to reimburse it for, and in no case to exceed, the actual cost of searching, reviewing and/or duplicating and, if applicable, mailing copies of public records.”

A requester may obtain standard 8 ½” x 11” black and white photocopies for $.25 cents per page and color copies for $.50 cents per page. Copy charges for some specific types of records are set by statute and may exceed the amount stated above. Examples of specific MDA copy charges include, but are not limited to, the following:

1. 8 ½” x 11" $.25 per page 2. 8 ½” x 14" $.35 per page 3. 11" x 17” $.75 per page 4. $15 per hour for basic copies or clerical assistance 5. $15-$75 per hour to evaluate, research, redact, reproduce based on the pay scale of the lowest level employee competent to respond to the request 6. $40 per hour for technical or professional assistance 7. $50 per hour for automated records search 8. Actual costs for legal review, postage, UPS, Federal Express, temporary agency personnel, and reproduction at an outside print facility

The MDA charges $.25 per page for a standard black and white photocopy of a record selected by a requester. A statement of the factors and the manner used to determine this charge is available from the public records officer.

Before beginning to make the copies, the requester must pre-pay all reasonably estimated costs of copying all the records selected by the requester. The public records officer will also require the payment of the remainder of the copying costs before providing all the records in an

installment before providing that installment. The MDA will not charge sales tax when it makes copies of public records. The MDA will notify the requester of the costs to obtain the information prior to processing the request. The requester will be required to reimburse the MDA for reasonable costs sufficient to cover the actual expenses incurred by the MDA to furnish the requested information. Payment must be made in advance of the receipt of documents. If the actual cost is higher than the estimate, the requester will be required to pay the difference before receiving the information. If the actual cost is lower than the estimate, the MDA will refund the difference.

Please note that the following types of public records requests usually require additional research and staff time and can have significant costs associated with filling the request: (1) Requests for very large volumes of material (2) Requests that are too broad (3) Requests that are unspecific in scope (4) Requests for information that have already been archived and (5) Requests for documents that are unusual in size.

(b) Costs for electronic records. The cost of electronic copies of records shall be determined on a case-by-case basis for information on a USB Flash Drive or File-Sharing Services.

Such costs include, but are not limited to, time of the lowest paid but qualified staff member to evaluate and research the request, to retrieve any relevant files, to organize the information, to notify any third parties, to develop a cost estimate and schedule, to reproduce any requested material, to observe the inspection of records and to deliver the information requested. If necessary, the MDA may engage third parties to perform these tasks. The requester is required to pay the actual costs of these engagements in advance.

(c) Costs of mailing. The MDA may also charge actual costs of mailing, including the cost of the shipping container. (d) Payment. Payment may be made by certified check, money order or corporate check made payable to the MDA for the amount specified. No cash or credit/debit cards can be accepted. (e) Charges for searching, reviewing and redacting. The actual cost of searching for and reviewing and, if necessary, redacting exempt information from public records shall be based upon the hourly rate of compensation for the lowest paid agency employee qualified to perform the task, which shall be multiplied by the actual time to complete the task.

MDA requires payment in advance for all costs before providing copies or access to records.

History

• Source: Miss Code Ann. §25-61-7

6 Miss. Admin. Code Pt. 5, R. 5.9 Review of denials of public records

(a) Petition for internal administrative review of denial of access. Any person who objects to the initial denial or partial denial of a records request may petition in writing to the public records officer for a review of that decision. The petition must include a copy of or reasonably identify the written statement by the public records officer or designee denying the request.

(b) Consideration of petition for review. The public records officer must promptly provide the petition and any other relevant information to the Executive Director of MDA or his or her designee. For immediate consideration of the petition and either affirmation or reversal of the denial within two (2) business days following the MDA’s receipt of the petition, or within such other time as the MDA and the requester mutually agree to. (c) Opinion by the Ethics Commission. Pursuant to Section 25-61-13, if the MDA denies a requester access to public records, the requester may ask the Ethics Commission to review the matter. The Ethics Commission has adopted rules on such requests. They may be found at www.ethics.state.ms.us. (d) Judicial review. Any person whose request for public records was denied may institute a suit in the Chancery Court of Hinds County, seeking to reverse the denial, as set forth in Section 25- 61-13.

History

• Source: Miss Code Ann. §25-61-13

6 Miss. Admin. Code Pt. 5, R. 5.10 Public Information via the Internet Information may be on MDA’s website at www.missisisppi.org

In addition, information on the state budget, expenditures, travel, contracts, leases, workforce and grants may be available free of charge at transparency.ms.gov.

Contact Information: Mississippi Development Authority Public Records Officer P.O. Box 849 Jackson, Mississippi 39205

6 Miss. Admin. Code Pt. 5, R. 501 Rule 501

N. West Street, Suite 1500 Jackson, MS 39201 (601) 359-3449

Adopted: November 15, 2023

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Part 6 Part 6 Economic Development Part 6 Chapter 1: Mississippi Forestry Facility Grant Program

Chapter 1 Mississippi Forestry Facility Grant Program Rule 6.1 Program Objective. Pursuant to Miss. Code Ann. § 57-1-781 of the Mississippi Legislature, the Forestry Facility Grant Program will authorize MDA, through funds provided by the Legislature, to make grants available to designated forestry facility projects that lead to the expansion of Mississippi’s forestry products industry.

6 Miss. Admin. Code Pt. 6, R. 6.2 Program Description

Through the Mississippi Forest Facility Grant Program, MDA shall accept applications from eligible applicants, prioritize these applications and submit suggested recipients to the Forest Facility Grant Committee no later than December 1 of each year. Beginning July 1, 2024, and each year thereafter, the committee shall review the submitted list and choose to award grants to the eligible recipients through MDA. These grants will be used to assist forestry facility projects upon the completion of the project.

The Forest Facility Grant Committee consists of the Executive Director of MDA, Chief of Economic Development, the MDA Forest Products expert, an appointee from the Governor’s office, and an appointee from the Lieutenant Governor’s office.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.3 Eligible Applicants and Projects

MDA will invite applications from eligible applicants. The eligible applicants are as follows: A. Municipalities, B. Counties, C. Existing Forestry Product Facilities (that have been in operation for at least 12 months), D. Regional Economic Development Entities.

Eligible applicants may apply for grant assistance for the following projects: A. acquisition of land and any improvements thereon, B. installation of power lines, C. installation of gas lines, D. installation of water systems,

E. installation of sewage systems, F. installation of roads, G. installation of railroads, and H. other infrastructure-related projects that are necessary for project completion and/or expansion and complying with existing community needs and infrastructure.

Grants may be awarded for both existing projects and development of prospective sites. In the latter case, the project shall be made to help establish or complete a forestry products project.

Forestry Facility Projects are ineligible to use grant funds for construction of their facility or project.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.4 Eligibility Criteria

The minimum criteria to qualify for a grant is as follows: A. the project has a minimum investment of ten million dollars ($10,000,000); B. the project site utilizes at least twenty-five (25) acres of land under public control (meaning the land is held or controlled by a public entity, or held by a public option) or an existing wood-use facility; C. the applicant proposes to use funds for the purpose of utility, infrastructure, and/or transportation development; D. the project produces a high level of public benefit; E. the project demonstrates best practices and complies with the required growth-to-drain ratio (meaning a one and five (1.5) growth to one (1) drain ratio of trees within a fifty-mile radius of the facility, which can be verified by the Mississippi Forestry Commission); F. the project will comply with and expand upon existing infrastructure in the community; G. the distribution of geographic size and location of the project; and H. the applicant can demonstrate the ability of the proposed project to be completed on time.

MDA may require that recipients seek and secure technical assistance from the Mississippi Forestry Commission. The Mississippi Forestry Commission will provide administrative support to local forestry project grantees to ensure proper growth-to-drain criteria.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.5 Funding Availability

The number of applications approved will be based on funding availability.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.6 Statutory Requirements

State statute allows Mississippi Forestry Facility Grant Program funds to be expended on forestry facility projects associated with publicly owned land (including public options) and infrastructure. For publicly owned land or infrastructure, all contracts and purchases must be made in accordance with normal bid and purchase laws of the state of Mississippi.

Forestry Facility Grant funds may be used for infrastructure activities on publicly owned or optioned land. Optioned land is defined in statute as industrial property that is subject to a real estate option to purchase contract entered into between an eligible entity and a real estate owner. Such option must be for a minimum of three (3) years, and the option price shall not exceed the appraised fair market value of the real estate.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.7 Site Acquisition Requirements

MDA will only assist with approved public land acquisition, including public options that are fair market value of the property.

Forestry Facility grant funds cannot be used to assist with legal expenses or other expenses related to eminent domain proceedings, and eminent domain-related expenses, if any, cannot be considered as eligible costs for match requirement purposes.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.8 Project Scope of Work and Budget

MDA reserves the right to negotiate the scope of land and/or infrastructure work and the budget for the proposed work with prospective applicants and as part of the application review process.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.9 Grant Amounts

Grant amounts awarded will vary based on funding availability and other factors, including, but not limited to, the development needs of the projects evaluated, the cost estimates of proposed improvements, the minimum private investment, size and location of the project site, the required growth-to-drain ratio, the ability of the project to be completed on time, demonstration that the project produces a high level of public benefit, and the project will comply with and expand upon existing infrastructure in the community.

Awards shall not exceed seventy-five percent (75%) of the total land or infrastructure cost. Grantees shall not receive compensation for expenses related to the construction of their forestry facility project.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.10 Matching Funds

All grant awards will require matching funds. The required amount must be at least twenty-five percent (25%) of the total land or infrastructure cost. The eligible applicant must use funds other than funds acquired from MDA as the match requirement.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.11 Application Process

Applications must be submitted on a form prescribed by MDA. Applications must be submitted with any accompanying documentation deemed necessary by

MDA. Each application will be reviewed objectively on the merits of the proposed forestry facility project. Grant recipients will be notified in writing of the funding decision.

MDA WILL ACCEPT APPLICATIONS FROM AUGUST 1 THROUGH OCTOBER 31. The application must include the following: A. a detailed description and narrative explaining the specific forestry facility project, showing the project produces a high level of public benefit, and will comply with and expand upon existing infrastructure in the community; B. documentation the project has a ten million dollar ($10,000,000) investment; C. detailed map/documentation showing the project site utilizes at least fifty (50) acres of land under public control; D. documentation of the cost of the public land or infrastructure to be purchased with grant funds; E. Engineering/Architect’s Report: This should include a cost estimate and timeline. Cost estimate must be submitted by an engineer or architect on their letterhead as a signed and stamped original. The timeline should outline the project construction from implementation to the completion of construction. F. documentation of matching funds; G. letter from the Mississippi Forestry Commission documenting the required growth-to-drain ratio; H. Memorandum of Agreement between local government and eligible applicant (if applicable); I. budget sheet; J. three (3) years of audited financials of the forest product facility; K. three (3) years of audited financials of the eligible applicant; and L. E-Verification for the applicant and benefiting business.

The Applicant must submit two (2) originals of the application to MDA. All documentation should have original signatures.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.12 Grant Awards

After an application is formally approved, a grant agreement outlining the project scope and allowable activities will be executed by the eligible applicant and MDA. Applicants will be accountable for all monies awarded and responsible for the submission and tracking of all expenses. Internal labor will not be reimbursable.

MDA shall provide grant funds to the forestry facilities projects as approved by the committee upon completion of the project.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.13 Disbursement

Grant funds will only be disbursed on a reimbursement basis upon completion of the project. Applicants must submit a final report to MDA within 90 days of the project’s completion date. Projects not completed within twenty-four (24) months of the execution

of a grant agreement must show evidence of progress as determined by MDA’s Business Incentives Division in order to receive grant funds. Grants approved for projects not completed within twenty- four (24) months and demonstrating no tangible progress may be deobligated.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.14 Funding

All projects receiving a grant must adhere to the following rules before requests for payment can be processed and payment can be made: A. The applicant must have a current W-9 form with a Federal Tax ID Number on file at MDA and must be registered as a vendor in the State of Mississippi’s MAGIC system and in Paymode. B. The applicant must list the project name (as listed on the grant application form) and the grant fund number (as listed in the grant agreement) in all correspondence regarding an approved project. C. A copy of vendor invoices and a copy of proof of payment to vendors must be provided with requests for payment, along with a request for payment form. (Examples of proof of payment include canceled checks, bank statements, vendor receipts, etc.). D. MDA may conduct a final site inspection prior to final grant closeout. E. The applicant must return a complete, final report to MDA’s Business Incentives Division no later than 90 days from the project completion date. F. Grant recipients must provide MDA with access to all studies, reports, documents, and/or plans developed as a result of or in conjunction with MDA grant funds.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.15 Changes in Project Scope or Budget

If a project’s scope changes at any point after an application has been invited, the grant recipient must write to MDA’s Business Incentives Division for approval of the change of scope. The letter must state the project name, grant fund number (as noted in the grant agreement), requested change, reasons for requesting the change, and any alterations in cost. If the completed project cost is higher than the approved project cost, the grant recipient will receive only the amount of grant funds awarded.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.16 Compliance with Federal and State Laws

Recipient is required to ensure compliance with the Mississippi Employment Protection Act (“MEPA”), Miss. Code. Ann. § 71-11-3 et seq., and must ensure that the recipient registers and participates in the status verification system for all newly hired employees. Under MEPA, the term "employee” means any person that is hired to perform work within the State of Mississippi. As used in MEPA, "status verification system" means the Illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program, or any other successor electronic verification system replacing the E-Verify Program. The recipient must maintain records of such compliance and, upon request of the State of Mississippi, provide a copy of each such verification to the State. Any person assigned to perform services must meet the employment eligibility requirements of all federal and state immigration laws. Any breach may subject the recipient to the following: (a) termination of the grant agreement and ineligibility for

any assistance, grant or state or public contract in Mississippi for up to three (3) years, with notice of such cancellation/termination being made public, or (b) the loss of any license, permit, certification or other document granted to the recipient by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year, or (c) both. In the event of such termination/cancellation, the recipient is also liable for any additional costs incurred by the State.

Compliance with the equal pay provisions of the Federal Equal Pay Act of 1963, the Americans with Disabilities Act of 1990, and the fair pay provisions of the Civil Rights Act of 1964 is required.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.17 Organizational Changes

The sale, merger, acquisition, reorganization, bankruptcy or relocation from one (1) county to another county within the State of any business enterprise may not create new eligibility in any succeeding business entity.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.18 Certification

In applying to MDA, the applicant certifies that all documents, instruments and information delivered to MDA by the applicant does not contain any untrue statements of a material fact or omit to state a material fact in light of the circumstances under which they were made not misleading. The applicant also certifies that it has disclosed, in writing, to MDA all facts that might reasonably be expected to result in a material adverse effect upon the applicant’s ability either to conduct its business or to carry out any agreement with the State. The applicant or its agents may not knowingly and willfully make or use a document or writing containing any false, fictitious, or fraudulent statement or entry in any application, correspondence, or communication with MDA. If there has been an inadequate or inaccurate disclosure of information, any approval or certification may be invalidated or revoked. Any financial benefit as a result may be required to be paid back to the State.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.19 Waiver

These Rules and Regulations may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the Rules and Regulations to the extent that the result of such waiver is to promote the public purpose of the statute and is not prohibited by State law.

History

• Source: Senate Bill 2019, 2025 Regular Session; Miss. Code Ann. § 57-1-781.

6 Miss. Admin. Code Pt. 6, R. 6.20 Audit

Loans and grants made under the Industry Incentive Program are subject to audit by MDA or the Office of the State Auditor. MDA and/or the Office of the State Auditor shall have the right to inspect books, records, plans and other data related to the Project.

Contact Information:

Mississippi Development Authority Attn: Business Incentives Division P.O. Box 849 Jackson, MS 39205 (601) 359-3449

Adopted: June 24, 2025

Part 7 REPEALED Rules and Regulations Governing Leasing for Production or Extraction of Oil, Gas and Other Minerals from State-Owned Marine Waters

6 Miss. Admin. Code Pt. 7 REPEALED Rules and Regulations Governing Leasing for Production or Extraction of Oil, Gas and Other Minerals from State-Owned Marine Waters

1

REPEALED - 10/2/2014

Title 6: Economic Development

PART 7: Rules and Regulations Governing Leasing for Production or Extraction of Oil, Gas and Other Minerals from State-Owned Marine Waters

Part 8 Administrative Review Procedure for Regulations Governing Seismic Exploration on State Owned Marine Waters and Regulations Governing Leasing for Production or Extraction of Oil, Gas and Other Minerals from State-Owned Marine Waters

Chapter 1 Purpose and Procedure

6 Miss. Admin. Code Pt. 8, R. 1.1 Purpose

This procedure is the exclusive method for seeking administrative review of an action taken by the Mineral Leasing Division, a division of the Mississippi Major Economic Impact Authority (MMEIA).

Rule 1.2. Actions Subject to Administrative Review. Any person or interested party aggrieved by any final rule, regulation, permit or order may file a petition pursuant to Miss. Code Ann. §29-7- 21 (Rev. 2010), requesting administrative review of such final rule, regulation, order or issuance, denial, modification or revocation of a permit by the Mineral Leasing Division of MMEIA

History

• Source: Miss. Code Ann. §§ 29-7-19; 29-7-21 (Rev. 2010).
• Source: Miss. Code Ann. §29-7-21 (Rev. 2010)

6 Miss. Admin. Code Pt. 8, R. 1.3 Petition for Hearing

A. The person or interested party petitioning for a hearing must file a written petition with the Executive Director of MMEIA, 501 N. West Street, P.O. Box 849, Jackson, Mississippi, 39205-0849 not later than thirty (30) calendar days from the date that any final rule, regulation, order or issuance, denial, modification or revocation of a permit is entered on the minutes of MMEIA. If no petition for review is filed within the above stated time, the action shall become final. B. The petitioner must ask for a hearing and specify within its petition the grounds and reasons upon which administrative review of the decision is sought. The petition must clearly indicate the type of remedy requested and name the contact representative for the petitioner. C. MMEIA shall acknowledge receipt of the petition for a hearing within seven (7) days of receipt. Such acknowledgement shall designate the Hearing Officer, if appropriate. D. The Executive Director or designated Hearing Officer shall set a hearing date which shall not be later than thirty (30) calendar days from the date of mailing of the acknowledgement of the petition, unless the parties agree to a later date. All parties shall be notified in writing of the time and place of the hearing. E. The Executive Director or the Hearing Officer shall provide for a court reporter to record the hearing. F. Filing of a petition shall not stay the effect of the MMEIA action.

Rule 1.4. Hearing Officer. The Hearing Officer, if designated by the Executive Director, shall be an independent and impartial person other than, and not accountable to, any person authorized to make decisions that are subject to appeal under provisions of this section.

History

• Source: Miss. Code Ann. §§ 29-7-19; 29-7-21 (Rev. 2010).
• Source: Miss. Code Ann. §§ 29-7-19; 29-7-21 (Rev. 2010).

6 Miss. Admin. Code Pt. 8, R. 1.5 Hearing

A. The Mineral Leasing Division of MMEIA shall first present its analysis and recommendation through testimony, exhibits and other admissible evidence. A representative of MMEIA shall be allowed to attend the hearing as a representative of the agency. The petitioner shall then present its position as to the grounds on which the petition is based by testimony, exhibits and other admissible evidence. All witnesses are subject to cross-examination by the opposing party and by the Hearing Officer. B. The petitioner may retain legal counsel at its own expense. C. Failure of the petitioner or its counsel to appear at a scheduled hearing shall constitute waiver of the hearing. D. All hearings shall be conducted in such a manner that all parties have a fair and reasonable opportunity to present witnesses and other evidence pertinent to the issues. In conducting the hearing, the Executive Director or Hearing Officer shall not be bound by common law or by statutory rules of evidence or by technical or formal rules of procedures, but may conduct the hearing in such a manner as best to ascertain the rights of the parties. E. The Executive Director or designated Hearing Officer may issue subpoenas on the written request of any party. It shall be the responsibility of each party to secure the service of subpoenas and the expense connected therewith shall be borne by the party requesting issuance of same.

History

• Source: Miss. Code Ann. §§ 29-7-19; 29-7-21 (Rev. 2010).

6 Miss. Admin. Code Pt. 8, R. 1.6 Recommendation of Hearing Officer

If a hearing is conducted by a Hearing Officer, he shall prepare a finding of fact and recommended decision which will be forwarded to the Executive Director within twenty (20) days of completion of the hearing. A copy of the recommendation will be sent to petitioner and to the Director of Mineral Leasing by certified mail return receipt requested.

History

• Source: Miss. Code Ann. § 29-7-21 (Rev. 2010)

6 Miss. Admin. Code Pt. 8, R. 1.7 Decision by Executive Director

A. After the conclusion of a hearing conducted by the Executive Director, a final decision shall be issued within twenty (20) days of the conclusion of the hearing and entered on the minutes of MMEIA. B. If the hearing is conducted by a Hearing Officer, after review of the record of the hearing, finding of fact and recommended decision of the Hearing Officer, the Executive Director shall issue a final decision. This final decision shall be entered on the minutes of MMEIA within fifteen (15) calendar days of receipt of the record of the

hearing and the recommendation of the Hearing Officer. A decision adopting the recommendation of the Hearing Officer need not contain any additional reasoning. C. The decision of the Executive Director shall be sent by certified mail return receipt requested to the petitioner and the Director of Mineral Leasing. The decision of the Executive Director is final.

History

• Source: Miss. Code Ann. § 29-7-21 (Rev. 2010)

6 Miss. Admin. Code Pt. 8, R. 1.8 Appeal to Chancery Court

A. The aggrieved party may appeal to the Chancery Court of the First Judicial District of Hinds County, Mississippi within 30 days of the date the final decision of the Executive Director is entered on the minutes of MMEIA pursuant to Miss. Code Ann. § 29-7-21 (Rev. 2010) by filing a petition for appeal with the MMEIA. B. The MMEIA shall, no later than 60 days after approval of the appeal bond, file with the Chancery Clerk a copy of the petition for appeal and of the rule, regulation, permit or order appealed from and the original and one copy of the transcript of the record of the proceedings in evidence before MMEIA. Filing of such appeal shall not stay or suspend the operation of any rule, regulation, permit or order.

History

• Source: Miss. Code Ann. § 29-7-21 (Rev. 2010)

6 Miss. Admin. Code Pt. 8, R. 1.9 No Waiver of Immunity

Nothing in the appeal procedure shall be construed as a waiver of the immunities from suit conferred upon the State of Mississippi, MDA, MMEIA or any of its employees, officers, agents or designees, under the Eleventh Amendment of the United States Constitution and the Constitution and the laws of the State of Mississippi.

History

• Source: Miss. Code Ann. § 29-7-21 (Rev. 2010)

Part 9 Part 9: Economic Development Division - Mississippi Site Development Grant Program

Chapter 1 Mississippi Site Development Grant Program

6 Miss. Admin. Code Pt. 9, R. 1.1 Program Objective

Pursuant to Miss. Code Ann. §57-1-701, the Mississippi Site Development Grant Program assists public or private non-profit economic development organizations or local governments (Local Partners) in developing available green field sites for industrial development. Matching grants of up to $50,000 for Ready Site site development projects or $250,000 for Premier Site site development projects are available for approved applications. MDA will fund Site Development Grant applications from across the state.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.2 Ready Site

A Ready Site is defined as a property that satisfactorily meets the minimum criteria for a competitive, marketable site and is ready for a project within an expedited timeframe. Ready Sites are classified as sites with a minimum of 20 highly developable acres that are site-work ready within six (6) months and can have utilities on site in twelve (12) months; rail-served sites are preferred. Preference also will be given to sites with airport or port access.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.3 Premier Site

A Premier Site is defined as a property that meets the desired development criteria of its potential market(s) and has additional differentiating or distinguishing site location attributes (e.g., high-demand locations, intermodal and/or port access, large-scale “mega” development acreage, significant utility infrastructure, etc.). Premier Sites are classified as having a minimum of 100 acres with a labor force able to attract the intended market; a workforce study is required. Rail-served sites are preferred. In addition, preference will be given to sites with airport or port access.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.4 Application and Eligibility Requirements

Activities to be funded under the Mississippi Site Development Grant Program should be consistent with the recruitment strategy and industrial park development plan for the benefitting site. Local Partners (county, municipality and public or private nonprofit economic development entities including, but not limited to, local authorities, commissions, or other entities created by local and private legislation) are eligible to apply. Applicants are advised to carefully review the required checklist included in the application form before submitting a grant application. The checklist must be signed and included in the application.

Local Partners may apply for grant assistance for the following projects:

A. Site development projects and/or site due diligence projects at publicly owned industrial property;

B. Site due diligence on optioned property; C. Public infrastructure improvement or expansion projects directly serving industrial property that is publicly owned or is optioned property; D. Assistance in acquiring publicly owned real property used for economic development purposes by the eligible entity.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.5 Statutory Requirements

State statute (Miss. Code Ann. §57-1-701) requires that Mississippi Site Development Grant Program funds be expended on industrial property owned or associated with property that is publicly owned. Site Development Grant funds may be used for site due diligence activities on optioned property, but not for physical site improvements on optioned property. Optioned property is defined in statute as industrial property that is subject to a real estate option to purchase contract entered into between an eligible entity and a real estate owner. Such option must be for a minimum of three (3) years, and the option price shall not exceed the appraised fair market value of the real estate.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.6 Eligible Expenditures

Eligible expenditures as stated in statute are: A. Attorney fees B. Fees related to architectural, design, engineering, surveying, planning, mapping, and other due diligence-related professional services C. Environmental studies/assessments D. Costs associated with studies, surveys, permitting, or zoning activities necessary to complete site diligence E. Geotechnical and/or resistivity testing F. Clearing/grading G. Environmental mitigation or the purchase of mitigation credits H. Drainage system improvements I. Right of way and easement acquisition J. Utility system expansions and/or distribution, including natural gas distribution systems K. Transportation infrastructure directly effecting the site (roads, bridges or rail) L. Telecommunications systems, including fiber optics M. Bulkheads N. Taxiways and parking ramps O. Land reclamation P. Industrial park “getaway” signage and/or aesthetic improvements Q. On-site demolition (old houses, barns, etc.) subject to cultural review R. Public infrastructure improvements directly serving industrial property that is publicly owned or serving optioned property S. Acquisition of publicly owned real property used for economic development purposes by an eligible entity in cases where the acquisition price does not exceed the appraised fair market value of the property T. Site development improvements as approved by MDA

Grant funds can only be used for physical site improvements such as clearing/grading, drainage improvements, or utility system expansions or improvements in cases where the site is publicly owned. For MDA to assist with due diligence at optioned property or public infrastructure improvements directly serving optioned property, the option must be in place for at least two (2) years after the date of application for a Site Development Grant.

Site due diligence and site improvement projects will receive priority over site acquisition projects, based on funding availability.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.7 Site Acquisition Requirements

MDA will only assist with site acquisition projects if the land being acquired for industrial development purposes is under option. The purchase price for the land being acquired cannot exceed the appraised fair market value of the property. Site acquisition costs incurred over the past five (5) years at the site will be considered as eligible matching expenses. For acquisition projects, MDA will pay a percentage of eligible acquisition costs plus associated reasonable and necessary closing and settlement costs, as determined by MDA. Other reasonable and necessary costs for which MDA may provide reimbursement may include environmental due diligence such as, but not limited to, a Phase I environmental assessment, cultural resources survey, wetlands assessments and delineation, threatened and endangered species assessment, and geotechnical investment of the parcels of land being acquired for industrial development.

Site Development grant funds cannot be used to assist with legal expenses or other expenses related to eminent domain proceedings, and eminent domain-related expenses, if any, cannot be considered as eligible costs for match requirement purposes.

Rule 1.8Application Process. MDA will solicit applications for Ready Site and Premier Site grants under the Site Development Program.

History

• Source: Miss. Code Ann. §57-1-701
• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.9 Ready Site Grant Program Process and Selection Criteria

This program will support sites that are attempting to meet minimum criteria required for Ready Sites. A. MDA will provide grants to Local Partners on a reimbursable basis so they may perform due diligence/site development improvements to meet the minimum requirements. Funding will be available only upon project completion and after a final report is submitted, accepted, and approved by MDA.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.10 Funding Guidelines for Ready Site Grant Program

A. These funds must match funds from other sources; MDA grant funds will not be the primary funding vehicle. B. The maximum grant will be $50,000 or 50% of the total cost of all the due diligence/site development improvements required, whichever is less. C. In-kind services will be valued as part of the required match if they are directly related to the costs of due diligence/site development requirements. D. MDA will only fund elements of due diligence/site development improvements if there are funds secured or pledged to finish all minimum criteria required. For example, MDA will not fund a Phase I environmental site assessment if there are no resources available to undertake a wetlands delineation, a cultural resources assessment, etc., if needed.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.11 Premier Site Grant Program Process and Selection Criteria

Funds will be used to support the development of sites in areas of high demand or with other attributes that make them particularly differentiated and competitive. MDA will invest more in these sites and, as a result, will take measured steps to ensure a higher likelihood of a return on investment when making funding decisions, as compared to the Ready Site program. A. MDA will only consider approving grant funds in support of sites that meet the desired development criteria of their potential market(s) and have additional differentiating or distinguishing site location attributes, such as being located in a high-demand area, having large-scale “mega” acreage for development and/or significant utility infrastructure in place, and offering intermodal and/or port or airport access. B. MDA will provide grants to Local Partners on a reimbursable basis so they may perform due diligence/site development improvements and make other allowable improvements, as determined by MDA, which are required to address the development needs of the site.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.12 Funding Guidelines for Premier Site Grant Program A

MDA funds must match funds from other sources (excluding other grants administered by MDA) and will not be the primary funding vehicle. Funding will be made available on a reimbursement basis on a drawdown schedule agreed upon by MDA. (i)The maximum grant will be $250,000 or 50% of the total cost of all the due diligence/site development improvements required, whichever is less. (ii) In-kind services will be valued as part of the required match if they are directly related to the costs of due diligence/site development improvements.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.13 Application Review

Each application will be reviewed objectively and solely on the merits of the proposed site enhancement and its potential for improving industrial recruitment efforts. No applicant is guaranteed funding if basic qualifying criteria are met. The merit of each application will be reviewed in both an individual and comparative context with other applications under consideration AFTER the basic qualifying criteria are met. All grant recipients will be notified in writing of the decision.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.14 Project Completion Time

Grants approved for projects not completed within twenty- four (24) months that show evidence of progress as determined by MDA’s Financial Resources Division will be considered for funding. Grants approved for projects not completed within twenty-four (24) months and demonstrating no tangible progress may be deobligated; these sites can be submitted for funding consideration in the future. MDA reserves the right to negotiate the scope and budget as part of the application review, the results of which may impact the level of funding participation, if any. Incomplete applications will be returned.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.15 Applying Organization Responsibilities

Applicants approved for grant funding must execute a grant agreement with MDA outlining the project scope and allowable activities. Applying organization(s) will be accountable for all monies awarded and responsible for submission and tracking of all expenses. Applicants must submit a final report to MDA within 60 days of the project’s completion date.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.16 Changes in Project Scope

If a project’s scope changes during the development stages, the grant recipient must write to MDA’s Business Incentives Division for approval. The letter must state the project name, grant fund number (as noted in the grant agreement), requested change, reasons for wanting the change, and any alterations in cost.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.17 Changes in Project Costs

If the total cost of the completed project is less than the provided estimate, the organization will be awarded 50% of the final project costs. If the completed project cost is higher than the approved project cost, the organization will receive only the amount listed in the grant award notification letter.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.18 Project Reimbursement and Completion Requirements

All projects receiving a grant must adhere to the following rules before requests for payment can be processed and payment can be made: A. The applicant must have a current W-9 form with a Federal Tax ID Number on file at MDA and must register as a vendor in the State of Mississippi’s MAGIC system and in Paymode. B. The applicant must list the project name (as listed on the grant application form) and the grant fund number (as listed in the grant agreement) in all correspondence regarding an approved project.

C. A copy of vendor invoices and a copy of proof of payment to vendors must be provided with all invoices submitted to MDA, along with request for payment form. (Examples of proof of payment include: canceled checks, bank statements, vendor receipts, etc.) D. The applicant must return a complete, final report to MDA’s Financial Resources Division no later than 60 days from the project completion date. E. Funding for Ready Site grants will not be disbursed until a final report is submitted, accepted, and approved by MDA. F. Funding for Premier Site grants will be made available on a reimbursement basis on a drawdown schedule agreed upon by MDA. The final 10% of Premier Site grant funds will be disbursed after a final report is submitted, accepted, and approved by MDA. G. MDA may conduct a final site inspection prior to final grant closeout.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.19 Waiver

These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the statute and is not prohibited by State law.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 1.20 Contact Information

A. Mississippi Development Authority Attn: Business Incentives Division P.O. Box 849 Jackson, MS 39205

Chapter 2 Mississippi Site Development Grant – Select Sites Program

6 Miss. Admin. Code Pt. 9, R. 2.1 Program Objective

Pursuant to Miss. Code Ann. §57-1-701, the Mississippi Site Development Grant Program assists public or private non-profit economic development organizations or local governments (Local Partners) in developing available greenfield sites for industrial development. The Select Sites Program was created within the Site Development Grant Program with the additional goal of increasing the number of highly competitive industrial sites in the state that are available and are ready to meet prospective companies’ needs. The availability of competitive sites that are ready for industrial development and meet the logistical, workforce and other needs of industry are critical to the state’s job creation and investment attraction efforts. Through the Site Development Grant Select Sites Program, the Mississippi Development Authority (MDA) partners with eligible Local Partners to support the development of such sites and increase the state’s competitiveness for economic development projects.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.2 Program Description

Through the Mississippi Site Development Grant Select Sites Program, matching grants are made available to assist Local Partners in developing highly competitive greenfield sites that are ready for industrial development. MDA will evaluate

prospective and pre-existing publicly owned properties available for industrial development in the state, as well as optioned properties available for industrial development, and will invite Site Development Grant Select Sites applications for site development projects at these most competitive sites in the state. Because the intent of the Select Sites program is to fund site development projects that yield highly competitive sites, MDA may invest more in these sites. As a result, the agency will conduct a more thorough evaluation of each application to ensure a higher likelihood of a return on investment when making funding decisions.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.3 Eligible Applicants and Projects

MDA will invite applications from Local Partners (county, municipality, and public or private nonprofit economic development entities including, but not limited to, local authorities, commissions, or other entities created by local and private legislation) for Site Development Grant Select Sites grants. Local Partners may apply for grant assistance for the following projects:

A. site development projects and/or site due diligence at publicly owned industrial property; B. site due diligence on optioned property; C. Public infrastructure improvement or expansion projects directly serving industrial property that is publicly owned or is optioned property; D. Assistance in acquiring publicly owned real property used for economic development purposes by the eligible entity.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.4 Eligibility Criteria

MDA will evaluate potential applicants’ available sites and will invite Select Sites applications based on the results of that evaluation and funding availability. Site evaluation criteria include, but are not limited to: A. the site’s location, B. the suitability of the site for development, C. the site’s logistical advantages, including proximity to interstates and state highways and rail, airport, and port access, D. workforce availability, E. existing site infrastructure, F. the developable acreage of the site, G. the competitiveness and overall marketability of the site; H. previous due diligence and site improvements done at the site; and I. the ownership status and/or the terms of an option to purchase contract for the site.

MDA may utilize a knowledgeable third party to evaluate the merits of prospective sites and determine which sites have the greatest potential for industrial development based on the sites’ assets, the suitability of the evaluated sites for industrial development, and which areas have the greatest likelihood of securing economic development projects.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.5 Funding Availability

The number of applications invited will be based on funding availability and the identified site development needs of the evaluated sites.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.6 Statutory Requirements

State statute requires that Mississippi Site Development Grant Program funds be expended on site development projects associated with property that is publicly owned. Site Development Grant funds may be used for site due diligence activities on optioned property, but not for physical site development projects on optioned property. Optioned property is defined in statute as industrial property that is subject to a real estate option to purchase contract entered into between an eligible entity and a real estate owner. Such option must be for a minimum of three (3) years, and the option price shall not exceed the appraised fair market value of the real estate.

Site Development Grant funds may also be used for public infrastructure improvements directly serving industrial property that is publicly owned or optioned property.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.7 Eligible Expenditures

Eligible expenditures include: A. Attorney fees B. Fees related to architectural, design, engineering, surveying, planning, mapping, and other due diligence-related professional services C. Environmental studies/assessments D. Costs associated with studies, surveys, permitting, or zoning activities necessary to complete site diligence E. Geotechnical and/or resistivity testing F. Environmental mitigation or the purchase of mitigation credits G. Clearing/grading H. Drainage system improvements I. Right of way and easement acquisition J. Utility system expansions and/or distribution, including natural gas distribution systems K. Transportation infrastructure directly effecting the site (roads, bridges or rail) L. Telecommunications systems, including fiber optics M. Bulkheads N. Taxiways and parking ramps O. Land reclamation P. Industrial park “gateway” signage and/or aesthetic improvements Q. On-site demolition (old houses, barns, etc.) subject to cultural review R. Public infrastructure improvements directly serving industrial property that is publicly owned or serving optioned property S. Acquisition of publicly owned real property used for economic development purposes by an eligible entity in cases where the acquisition price does not exceed the appraised fair market value of the property T. Site development improvements as approved by MDA

Grant funds can only be used for physical site improvements such as clearing/grading, drainage improvements, or utility system expansions or improvements in cases where the site is publicly owned. For MDA to assist with due diligence at optioned property or public infrastructure improvements directly serving optioned property, the option must be in place for at least two (2) years after the date of application for a Site Development Grant.

Site due diligence and site improvement projects will receive priority over site acquisition projects, based on funding availability.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.8 Site Acquisition Requirements

MDA will only assist with site acquisition projects if the land being acquired for industrial development purposes is under option. The purchase price for the land being acquired cannot exceed the appraised fair market value of the property.

Select Sites grants cannot be used to reimburse more than 50 percent of eligible land acquisition costs. MDA will require at least a 50 percent match when assisting with site acquisition projects, though site acquisition costs incurred over the past five (5) years at the site will be considered as eligible matching expenses.

For acquisition projects, MDA will pay a percentage of eligible acquisition costs plus associated reasonable and necessary closing and settlement costs, as determined by MDA. Other reasonable and necessary costs for which MDA may provide reimbursement may include environmental due diligence such as, but not limited to, a Phase 1 environmental assessment, cultural resources survey, wetlands assessments and delineation, threatened and endangered species assessment, and geotechnical investigation of the parcels of land being acquired for industrial development.

Select Sites grant funds cannot be used to assist with legal expenses or other expenses related to eminent domain proceedings, and eminent domain-related expenses, if any, cannot be considered as eligible costs for match requirement purposes.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.9 Project Scope of Work and Budget

MDA reserves the right to negotiate the scope of site development work and the budget for the proposed work with prospective applicants and as part of the application review process.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.10 Grant Amounts

Grant amounts awarded will vary based on funding availability and other factors, including, but not limited to, the development needs of the sites evaluated, the cost estimates of the site improvements proposed, the overall potential development opportunity for the benefitting property, and whether site due diligence has been completed. In determining MDA’s level of funding participation, the agency will also consider whether the potential applicant has funded due diligence or site improvements on the site, to date, the amount of

funding for site improvements that has already been invested or committed to the site, and whether the potential applicant has identified additional funding sources.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.11 Matching Funds

All grant awards will require matching funds. MDA will determine the amount of match required on a project-by-project basis. The amount of match required will depend on such factors as the proposed scope of work, whether site due diligence has been completed, the necessary site improvements identified, and the cost estimates for those improvements. In determining the amount of matching funds required, MDA also will consider the amount of funding that has already been invested in or committed to the site and the level of development in the county/counties in which the site is located, as determined by the Mississippi Department of Revenue in its annual County Ranking. In-kind services will be eligible as part of the required match if they are directly related to the costs of due diligence/site development requirements, and land acquisition costs can count toward the grant’s match requirements.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.12 Site Evaluation

Before formally inviting a grant application, MDA will contact potential applicants to discuss the sites evaluated, the development plan for the sites, the due diligence and/or site improvements needed, and the costs of the improvements necessary to develop the site into a competitive, project-ready site, taking into consideration the results of any third-party evaluation. Activities to be funded under the Mississippi Site Development Grant Program should be consistent with the recruitment strategy and industrial park development plan for the benefitting site, as determined by MDA and the Local Partner.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.13 Application Process

After completing this site evaluation process, MDA may then issue a letter inviting a Local Partner to apply for the grant. Applications must be submitted on a form prescribed by MDA and must include, at a minimum, a description of the eligible expenditures for which assistance is requested, the amount of assistance requested, the amount of matching funds to be provided by the eligible entity, and any other information required by MDA. Applications must be submitted with any accompanying documentation deemed necessary by MDA. The scope of site development work outlined in an application must align with the development plans developed by MDA and the potential applicant. Each application will be reviewed objectively on the merits of the proposed site development project and its potential for resulting in a highly competitive site. Grant recipients will be notified in writing of the funding decision.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.14 Grant Awards

After an application is formally approved, a grant agreement outlining the project scope and allowable activities will be executed by the Local Partner and MDA. Applicants will be accountable for all monies awarded and responsible for the submission and tracking of all expenses.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.15 Disbursement

Grant funds will be disbursed on a reimbursement basis on a drawdown schedule agreed upon by MDA. The final 10% of Select Sites grant funds will be disbursed after a final report is submitted, accepted, and approved by MDA. Applicants must submit a final report to MDA within 90 days of the project’s completion date. Projects not completed within twenty-four (24) months of the execution of a grant agreement must show evidence of progress as determined by MDA’s Business Incentives Division in order to receive grant funds. Grants approved for projects not completed within twenty-four (24) months and demonstrating no tangible progress may be deobligated.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.16 Funding Guidelines

All projects receiving a grant must adhere to the following rules before requests for payment can be processed and payment can be made: A. The applicant must have a current W-9 form with a Federal Tax ID Number on file at MDA and must be registered as a vendor in the State of Mississippi’s MAGIC system and in Paymode. B. The applicant must list the project name (as listed on the grant application form) and the grant fund number (as listed in the grant agreement) in all correspondence regarding an approved project. C. A copy of vendor invoices and a copy of proof of payment to vendors must be provided with requests for payment, along with a request for payment form. (Examples of proof of payment include canceled checks, bank statements, vendor receipts, etc.) D. MDA may conduct a final site inspection prior to final grant closeout. E. The applicant must return a complete, final report to MDA’s Business Incentives Division no later than 90 days from the project completion date. F. Grant recipients must provide MDA with access to all studies, reports, documents, and/or plans developed as a result of or in conjunction with MDA grant funds. G. Grant recipients must commit to updating MDA’s Sites and Buildings database to reflect the improvements at the site that benefited from grant assistance and any due diligence updates made with grant assistance. H. Grant recipients must agree to repay grant funds received if the site being developed or acquired is developed for any purpose other than industrial development within five (5) years of final grant disbursement. I. Grant recipients must agree to requesting written permission from MDA to transfer the developed or acquired site to private ownership if the site is selected for an economic development project. J. Grant recipients must agree to maintain the site so that it presents well to prospective businesses and remains a competitive site for economic development for a period of five (5) years from the date of final disbursement. If a site developed or acquired with Select Sites grant funds is not maintained for at least five (5) years after final grant disbursement, the recipient may be required to repay grant funds.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.17 Changes in Project Scope or Budget

If a project’s scope changes at any point after an application has been invited, the grant recipient must write to MDA’s Business Incentives Division for approval of the change of scope. The letter must state the project name, grant fund number (as noted in the grant agreement), requested change, reasons for requesting the change, and any alterations in cost. Grant funds are disbursed on a drawdown schedule determined by MDA. If the completed project cost is higher than the approved project cost, Local Partners will receive only the amount of grant funds awarded.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.18 Waiver

These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the statute and is not prohibited by State law.

History

• Source: Miss. Code Ann. §57-1-701

6 Miss. Admin. Code Pt. 9, R. 2.19 Contact Information

Inquiries should be directed to: A. Mississippi Development Authority Attn: Business Incentives Division P.O. Box 849 Jackson, MS 39205 Adopted: November 3, 2022

Chapter 3 Mississippi Flexible Tax Incentive Program – mFLEX

6 Miss. Admin. Code Pt. 9, R. 3.1 Program Objective

Pursuant to Miss. Code Ann. § 57-114-1 et seq., the Mississippi Flexible Tax Incentive Program assists companies locating or expanding into Mississippi by providing a tax credit which can be taken to offset state taxes incurred during the establishment of the project. mFLEX was created with the goal of simplifying the tax incentive process for potential site locations and expansions as well as increasing the value of tax incentives in the state by providing flexibility in the utilization of the incentive. This incentive is intended to replace many of the existing tax incentives which each have a separate application and approval process and provide the state with no means of determining the utilization of the credit by the user.

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

6 Miss. Admin. Code Pt. 9, R. 3.2 Program Description

Through the Mississippi Flexible Tax Incentive Program, a taxpayer credit is provided to a new or expanding industry based on investment, job creation and average wages of the created jobs. This credit can be used to offset income, franchise, sales, use, and payroll withholding taxes of the industry as well as specific identified affiliates.

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

6 Miss. Admin. Code Pt. 9, R. 3.3 Eligible Applicants

MDA will invite applications from eligible industries planning to locate or expand in the state. To qualify, the applicant must commit to creating a minimum of 10 new full-time jobs paying a minimum of seventy-five percent (75%) of the average state or county wage or investing a minimum of two million, five hundred dollars ($2,500,000). The following industries are eligible: • Manufacturing, remanufacturing, assembly, processing, and/or refining enterprise • Warehouse and/or distribution enterprise • Research or research and development enterprise • Regional or national headquarters • Air transportation and/or maintenance enterprise • Data and information processing enterprise • Technology intensive enterprise • Data center enterprise

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

6 Miss. Admin. Code Pt. 9, R. 3.4 Eligibility Criteria

MDA will evaluate potential projects and will invite eligible project applications based on the results of that evaluation. Application evaluation will include the review of available information, including: J. Capital investment K. Job creation L. Average annual wages M. Benefits, and N. Current compliance with all state tax laws, ordinances, permits and approvals.

MDA may utilize information from other state and local agencies to verify that all statutory requirements are met. It is the statutory intent that all eligible projects requesting certification be awarded this credit in lieu of the existing standard tax incentives that are statutorily awarded.

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

6 Miss. Admin. Code Pt. 9, R. 3.5 Funding Availability

The mFLEX program is not limited by funding availability, so all applications that meet statutory requirements may be approved by the agency. Certified credit amounts can be taken upon certification as a credit on all tax returns filed by the applicant or its identified affiliates after the certification date. A limit of twenty percent (20%) of the total credit awarded may be applied to withholding tax liability for any given year. Credits may not be used to offset tax liability incurred prior to the certification date.

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

6 Miss. Admin. Code Pt. 9, R. 3.6 Statutory Requirements

State statute provides that Mississippi Flexible Tax Incentive credits be used to offset income, franchise, sales, use, and payroll withholding taxes of the industry or specific identified affiliates. Certified credit amounts can be taken upon certification as a credit on all tax returns filed by the applicant or its identified affiliates after the certification date. A limit of twenty percent (20%) of the total credit awarded may be applied to payroll

withholding tax liability per year. Credits may not be used to offset tax liability incurred prior to the certification date.

To ensure that the credit awarded is based on the actual investment, job creation, and payroll of the company, the certified applicant will be required to submit annual reports to the MDA that provide the progress of the project to date. Credit amounts may be adjusted based on these reports and an updated credit certificate will be issued to the company as well as the Department of Revenue to validate those credits are commensurate with the actual project results.

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

6 Miss. Admin. Code Pt. 9, R. 3.7 Project Certification

Upon evaluation of the project, if all requirements are met, the applicant will be presented to the MDA board for approval. If approved, the applicant will be required to enter into an agreement that documents the following: U. The obligation of the industry to provide an annual report that includes actual investment, job creation, and payroll in a manner prescribed by the MDA. V. The obligation to update estimated investment and job creation for the remainder of the project. W. The obligation of the industry to provide health insurance coverage funded at least fifty percent (50%) by the certified business. X. The obligation to provide a summary of the tax credits taken for the reporting year by the applicant as well as the credits taken by each identified affiliate. Y. Acknowledgement that if the applicant is awarded an mFLEX certification, specific statutory tax incentives will not be available to the applicant. Z. Acknowledgement that the certified credit amount will be adjusted annually based on actual investment and job creation, as well as updated estimates for the project. AA. Acknowledgement that failure to comply with required reporting may result in the suspension or revocation of all or a portion of the mFLEX credits awarded. BB. Acknowledgement that in the event that credits that have been taken and are later reduced through recalculation based on company reporting or revocation due to failure to file the annual report will be recaptured by the Department of Revenue as a tax liability.

Once the applicant signs and returns the agreement, a certification will be issued that documents the mFLEX credit available to the applicant. A copy of the certification will also be provided to the Department of Revenue for administrative oversight.

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

6 Miss. Admin. Code Pt. 9, R. 3.8 Calculation of mFLEX Credits

MDA will calculate the initial credit amount based on the following formula:

• Reported Capitalized Manufacturing Equipment Expenditures multiplied by 1.5% + • Reported Capitalized Non-Manufacturing Equipment, Furniture, and Fixtures multiplied by 7% +

• Total construction contract(s) multiplied by 2% + • Wages multiplied by number of jobs multiplied by 15%

This calculation results in the base mFLEX credit. If the applicant creates 25 jobs and pays an average annual salary of 125% of the average state or county wage (or is a manufacturer, invests $20,000,000 and creates a minimum of 50 jobs), the credit is increased by the following premium for high paying jobs:

Payroll multiplied by number of jobs multiplied by 30% In the event that the applicant elects to utilize industrial revenue bonds issued by the Mississippi Business Finance Corporation, the calculation will be limited as follows:

Payroll multiplied by number of jobs multiplied by 15%

This calculation results in the IRB (Industrial Revenue Bond) base mFLEX credit. If the applicant creates 25 jobs and pays an average annual salary of 125% of the average state or county wage (or is a manufacturer, invests $20,000,000 and creates a minimum of 50 jobs), the credit is increased by the following premium for high paying jobs:

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

6 Miss. Admin. Code Pt. 9, R. 3.9 mFLEX Credit Utilization

Upon receipt of the certification by the applicant, certified credit amounts can be taken as a credit on all Department of Revenue tax returns filed by the applicant or its identified affiliates after the certification date. A limit of twenty percent (20%) of the total credit awarded may be applied to payroll withholding tax liability for any given year. Credits may not be used to offset tax liability incurred prior to the certification date.

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

6 Miss. Admin. Code Pt. 9, R. 3.10 Applicant Reporting Requirements

Each applicant that is awarded a certification will be required to complete and submit an annual report by the last business day of the month following the end of the quarter during which the annual anniversary of the project certification was issued. This report, along with any required attachments, must be submitted to MDA in their prescribed format. This report will require the following information: • Company name and FEIN • Total investment for the year, for the project to date, and the anticipated total investment • The total number of initial full-time jobs (for expansions), the total jobs created for the reporting year, the total jobs created to date, and the total anticipated jobs • The average wages paid for new jobs created • The percentage and number of employees who are offered health insurance coverage, funded at least 50% by the employer • A listing of affiliates, including legal entity name and FEIN, that may utilize the mFLEX credit awarded.

• A summary of the tax credits taken for the reporting year and to date by the applicant as well as the credits taken by each identified affiliate.

Any approved or awarded applicant that fails to comply will be notified by MDA and will be given 30 days to submit the required reporting. Failure to comply with required reporting may result in the suspension or revocation of all or a portion of the mFLEX credits awarded. This decision is at the discretion of the MDA.

The informational report must be filed annually for a minimum of seven years, but if the applicant has not utilized all available credits, then annual reports must be filed until all credits have been used or the credits expire, 10 years after the date of the certificate.

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

6 Miss. Admin. Code Pt. 9, R. 3.11 mFLEX Credit Adjustment and Certification

Based on the information provided in the entity’s annual report, MDA will identify any adjustment to the initial estimates provided by the applicant. Adjustments to the certification may include: • Updates to the demographic and contact information of the company • Updates to the approved affiliates • Updates to the mFLEX credit available.

mFLEX credit updates may cause the total credit amount to increase or decrease and may occur for the following reasons: • Updates to the project estimates (jobs, wages and investment) • Updates to the actual investment made • Updates to the actual jobs created.

Once the project is completed, no additional updates can be made to the investment estimate. A copy of the updated certification will be provided to the Department of Revenue to ensure that the correct credit amount is being utilized.

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

6 Miss. Admin. Code Pt. 9, R. 3.12 MDA Reporting Requirements for mFLEX

All mFLEX applications and annual reports are exempt from the Freedom of Information Act. MDA is statutorily required to provide copies of each mFLEX agreement, mFLEX certification, and mFLEX certification amendment to the Governor, Lieutenant Governor, and Speaker of the House the calendar quarter following the quarter the document is certified. This information will be documented as confidential and will not be released to the public.

MDA will include mFLEX incentives in their annual incentive report, but each company certified will include only summary data.

History

• Source: Miss. Code Ann. § 57-114-1 et seq.; Miss Code Ann Section 57-1-14

6 Miss. Admin. Code Pt. 9, R. 3.13 Changes in Project Scope or Budget

If a project’s scope changes at any point after certification, the mFLEX credit recipient must provide an update using the annual update form and include the project name, requested change, reasons for requesting the change, and any alterations in investment and/or job creation and wages. If the completed project cost is higher than the approved project cost, the mFLEX credit will be increased to accommodate the change. Likewise, reductions in investment, jobs, and/or wages could result in a decrease in the mFLEX credit.

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

6 Miss. Admin. Code Pt. 9, R. 3.14 Compliance with Federal Immigration Laws and Mississippi Employment Protection Act

The company is required to ensure compliance with the Mississippi Employment Protection Act (“MEPA”), Miss. Code. Ann. § 71-11-3 et seq., and must ensure that the entity registers and participates in the status verification system for all newly hired employees. Under MEPA, the term "employee” means any person that is hired to perform work within the State of Mississippi. As used in MEPA, "status verification system" means the Illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program, or any other successor electronic verification system replacing the E-Verify Program. The company must maintain records of such compliance and, upon request of the State of Mississippi and approval of the Social Security Administration or Department of Homeland Security, where required, to provide a copy of each such verification to the State. Any person assigned to perform services must meet the employment eligibility requirements of all federal and state immigration laws. Any breach may subject the company to the following: (a) termination of the Agreement and ineligibility for any assistance, grant or state or public contract in Mississippi for up to three (3) years, with notice of such cancellation/termination being made public, or (b) the loss of any license, permit, certification or other document granted to the company by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year, or (c) both. In the event of such termination/cancellation, the Company is also liable for any additional costs incurred by the State.

History

• Source: Miss. Code Ann. § 71-11-3; Miss. Code Ann. § 57-1-371; Miss. Code Ann. § 57-1-373.

6 Miss. Admin. Code Pt. 9, R. 3.15 Waiver

These rules and regulations may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the rules and regulations to the extent that the result of such waiver is to promote the public purpose of the statute and is not prohibited by State law.

Inquiries should be directed to:

Mississippi Development Authority Attn: Business Incentives Division P.O. Box 849 Jackson, MS 39205

Adopted: December 13, 2022.

History

• Source: Miss. Code Ann. § 57-114-1 et seq.

Chapter 4 Small Business Loan Guarantee Program

6 Miss. Admin. Code Pt. 9, R. 4.1 Program Objective

The American Rescue Plan Act of 2021 (ARPA) reauthorizes and amends the Small Business Jobs Act (SBJA) of 2010, which established the State Small Business Credit Initiative (SSBCI) Program. Through the SSBCI, the State of Mississippi was allocated funds for the Small Business Loan Guarantee Program (SBLGP) which will be administered by the Mississippi Development Authority (MDA). This program is designed to facilitate capital accessibility for small businesses by providing loan guaranties to banks and other small business lenders. The program’s purpose is to enable lenders to make term loans or provide lines of credit to new or existing small businesses in a difficult credit environment. This is designed to help with the development, expansion, and retention of Mississippi’s small businesses.

History

• Source: Miss. Code Ann. §57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 4.2 Eligibility Criteria

Eligible borrowers may include businesses that are new or existing small businesses in Mississippi with up to 500 employees and less than $10,000,000 in gross revenues or $2,500,000 in profit after taxes, or is a Mississippi nonprofit organization when the financing is used for a “business purpose.”

All financial institutions must be preapproved by MDA before they are able to participate in the program. Eligible financial institutions may include: • Commercial Bank • Savings Bank • Federal Land Bank • Farm Credit Bank, Agricultural Credit Association, or other farm credit agency • Community Development Corporations • Community Development Financial Institutions

Additionally, eligible loans must be used for a business purpose. This can include but is not limited to: • New business startup costs, • Working capital, • The purchase of equipment, inventory, land, buildings, and machinery, • Construction, • Remodeling or renovation, or • Tenant improvements of an eligible place of business that is not for passive real

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 4.3 Lender Participation

To be considered for enrollment in the program, an eligible financial institution must be approved for participation by the MDA. The financial institution must submit an application for participation. The application document and list of required attachments will be reviewed by MDA and considered for approval for participation in the program.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 4.4 Lender Agreement

The MDA-approved financial institution will be required to enter into the Small Business Loan Guarantee Program Agreement. This agreement establishes the terms and conditions of the program and obligates the lender to meet the program’s requirements.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 4.5 Eligible Borrowers

An eligible borrower must be either a new or existing Mississippi small business, a business locating in Mississippi, a Mississippi nonprofit entity (but only if the loan is for an eligible business purpose). Additionally, the borrower must have less than 500 employees. If the borrower is an existing business, it must have earned less than either $10,000,000 in gross revenues or less than $2,500,000 in profit after taxes in the most recent completed fiscal year. The borrower must be credit worthy and demonstrate the ability to repay the loan. They also must be in compliance with all state and federal regulatory agencies and must not be in default on any previous debt or obligation with the state or federal government.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 4.6 Ineligible Uses of Funding

SBLGP transactions may not have certain features, including any of the following: confessions of judgment, prepayment or “double-dipping” fees, or upfront fees or charges paid by the small business, excluding fees to the program, that exceed two percent for loans greater than $25,000 or $500 for loans under $25,000.

Under the program, the borrower may not use the loans for any of the following uses or purposes: • Refinance existing debt unless the debt is from a non-affiliated lender* • Used in conjunction with other federal loans or guaranties • Finance the acquisition, construction, improvement, or operation of real property, which is to be held primarily for sale or investment, such as commercial real estate ownership • Finance any business engaged in lending, directly or indirectly • Finance of a nonbusiness purpose • Repayment of delinquent federal or state income taxes • Reimburse funds owed to any owner, including any equity injection * A lender may refinance a borrower’s existing loan, line of credit, extension of credit, or other

debt originally made by an unaffiliated lender only if the following conditions are met: • The amount of the refinanced loan or other debt is at least 150 percent of the previous outstanding balance, • The transaction results in a 30 percent reduction in the fee-adjusted APR contracted for the term of the new debt, and • Proceeds of the transaction are not used to finance an extraordinary dividend or other distribution.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 4.7 Guarantee Percentage

The percentage of the loan guarantee will be determined by the type of loan, and the risk profile of the loan. To determine the percentage of guarantee approved for each loan, the guarantee application will be reviewed by the MDA’s Small Business Loan Guarantee Review Committee. The committee will consider credit history, experience and history of the borrower, collateral coverage, and job creation in its evaluation and will set the guarantee percentage based on these factors.

Loans for working capital, lines of credit, and accounts receivable will be eligible for a loan guarantee of sixty percent (60%).

Loans to finance fixed assets, such as equipment and real estate, will be eligible for a loan guarantee of up to eighty percent (80%).

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 4.8 Loan and Guarantee Amount and Guarantee Terms

The amount of the loan guarantee will not exceed eighty percent (80%) of the loan amount or $750,000, whichever is less. Only with the express written consent of the MDA, may a lender be allowed to request a guarantee on the principal loan amount of up to $5,000,000. The minimum amount for an SBLGP eligible loan will not be less than $50,000.

Loans for working capital, lines of credit, and accounts receivable will have a maximum guarantee term of five (5) years.

Loans to finance fixed assets, such as equipment and real estate, will be eligible for a guarantee term of up to fifteen (15) years. The term will not exceed the useful life of the assets that are securing the loan or being financed with a maximum term of fifteen (15) years.

The term of the SBLGP guarantee shall match the term of the financial institution’s loan, up to the maximum of fifteen (15) years (amortization may exceed the loan term).

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 4.9 Interest Rate

Per U.S. Treasury guidelines, the interest rate may not exceed the National Credit Union Administration’s interest rate ceiling. Interest shall be charged on the SBLGP guaranteed loan and payment terms are negotiated between the lender and the borrower.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 4.10 Guarantee Application Process

A borrower must first identify a partnering financial institution that is willing to participate in the SBLGP and its parameters. The MDA staff may provide a list of participating lenders should the borrower need it.

The financial institution will originate the guarantee application for an eligible business and loan and all required documentation. This must include: • A loan narrative describing the project, • An overview of the business, • The purpose of the loan, and • The proposed use of the loan proceeds. The financial institution must provide MDA with a Servicing Agreement Letter, certifying to act as the collection and service agent for the guaranteed loan and agreeing to program terms and conditions.

All transactions will be presented for consideration to the MDA’s Small Business Loan Guarantee Review Committee. The committee will review each application and determine the guarantee percentage for the loan, based on credit history, experience and history of the borrower, collateral coverage, and job creation.

Once the review committee has approved a guarantee application and percentage, the guarantee commitment is valid for ninety (90) days. If the loan has not closed within ninety (90) days, updated information may be required, and the loan may be resubmitted to the review committee for approval before the loan can proceed to closing.

The Financial Institution may be asked to provide, in writing, all required information for the preparation of any SBLGP loan closing documents.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 4.11 Loan Administration

Loan Closing. All closing documents must be properly executed, and a copy must be provided to the MDA upon the loan closing. The Financial Institution may be asked to provide, in writing, all required information for the preparation of any SBLGP loan closing documents. All exhibits to the closing documents must be filed and copies must be sent to MDA no later than thirty (30) days from the date of the closing.

Lender Fee. The financial institution may charge the business a servicing fee, which may not exceed two percent (2%) of the SBLGP loan amount greater than $25,000 or $500 for loans under $25,000. The fee will be a one-time charge collected at the loan closing. The fee may be paid directly by the business, deducted from the SBLGP loan proceeds, or financed as part of the Financial Institution’s loan.

Loan Servicing. The Financial Institution will be responsible for underwriting and servicing the SBLGP loan. Lenders must provide all key terms in an easy-to understand manner. Such disclosures could include: the loan or investment amount, payment obligation and schedule, any terms giving the participant control over the borrower’s or investee’s cash balances, cash flows or ownership, any conversion rights and future rights to purchase equity, and any fees or extra costs. The Financial Institution will enforce the terms and conditions of all closing documents executed for the SBLGP Loan.

Reporting. The Financial Institution will report quarterly to the MDA on the status of the loan. The Financial Institution will submit a loan transaction history report summarizing the current balance, payments on principal to date, payments on interest to date, and any past due statements. The Financial Institution will also complete and submit an annual report in the format to be provided by the MDA. Additionally, the lender is required to immediately report any material change in the status of the borrower or collateral.

Prepayment & Loan Default. The Financial Institution shall notify the MDA in writing of any prepayments of the Financial Institution’s loan. The Financial Institution’s Loan and Note is prohibited from being sold, assigned, conveyed, sub-participated, subdivided, encumbered, or otherwise transferred. The MDA will consider any loan that has become delinquent in amount equal to the required payment to be in default. In the event of a loan default, the Financial Institution will submit a claim form on the guarantee once all required collection procedures have been performed. The guarantee payments will be calculated after all collateral has been applied to the outstanding balance. The SBLGP guarantee will reimburse the financial institution for its loss, up to the percentage of the SBLGP guarantee.

Audit. Guaranties made under the SBLGP are subject to audit by the State Department of Audit

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 4.12 Waiver

These rules and regulations may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the rules and regulations to the extent that the result of such waiver is to promote the public purpose of the statute and is not prohibited by State law.

History

• Source: Miss. Code Ann. § 57-10-601.

6 Miss. Admin. Code Pt. 9, R. 4.13 Debarment and Suspension Policy

To protect the public trust and interest imposed upon the MDA, if it appears that the Company and/or its agent’s conduct, as determined by MDA, creates a reasonable belief that a particular act or omission that is covered by this policy has occurred, the MDA shall implement such discretionary actions known as debarment and suspension. At the time the Company files an application for the tax credit, they must maintain that there is no action, suit proceeding or investigation at law or in equity before or by any court or governmental agency or body pending or, to the best knowledge of the Company, after reasonable investigation and due inquiry, threatened against the Company in any way contesting or affecting the validity of this Agreement or contesting the powers of the Company to adopt, enter into or perform its obligations under this Agreement or materially and adversely affecting the

properties or condition (financial or otherwise) or existence or powers of the Company.

Inquiries should be directed to: Mississippi Development Authority Attn: Business Incentives Division P.O. Box 849 Jackson, MS 39205

Adopted: November 15, 2023

History

• Source: Miss. Code Ann. § 57-10-601.

Chapter 5 Mississippi Community Development Financial Institution (CDFI) Small Business Loan Fund Program

6 Miss. Admin. Code Pt. 9, R. 5.1 Program Objective

The Mississippi CDFI Small Business Loan Fund Program (SBLF) is designed to facilitate capital accessibility for small businesses unable to access traditional bank debt by providing matching funds for CDFI loan funds. The program’s purpose is to enable participating CDFI loan funds to make loans and provide lines of credit, or other appropriate debt financing, to new or existing small businesses in a difficult credit environment. This is projected to help with the development, expansion, and retention of Mississippi’s small businesses. The SBLF will provide these expanded funding opportunities to Mississippi small businesses, startups, and entrepreneurs by providing low-cost debt to CDFI loan funds with established track records of serving Mississippi businesses. The loans are administered by the Mississippi Development Authority (MDA).

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 5.2 Program Terms

• “Community Development Financial Institutions (CDFI)” has the meaning given that term as under section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994, 12 U.S.C. § 4702. • “Community Development Financial Institutions (CDFI) Loan Fund (Participants)” means a CDFI that provides debt financing and development services to businesses, organizations, and individuals in low-income communities. • “Borrower” means the business person or entity borrowing and accepting the loaned funds from the Lender. • “Private financing” means equity investments, written commitments of future equity investments, term loans, lines of credit, and any new infusions of cash by the small business owner into the borrower.

• “Upfront fees” for the purpose of this program include but are not limited to application fees, origination fees, and document preparation fees. • “Passive real estate investment” means most real estate development (including construction) in which the developer does not intend to occupy or actively use the resulting real property. • “Socially and Economically Disadvantaged Individual (SEDI) Owned Business”- for the purposes of this program means: o Business enterprises that certify that they are owned and controlled by individuals who have had their access to credit on reasonable terms diminished as compared to others in comparable economic circumstances, due to their: ▪ membership of a group that has been subjected to racial or ethnic prejudice or cultural bias within American society; ▪ gender; ▪ veteran status; ▪ limited English proficiency; ▪ physical handicap; ▪ long-term residence in an environment isolated from the mainstream of American society; ▪ membership of a federally or state-recognized Indian Tribe; ▪ long-term residence in a rural community; ▪ residence in a U.S. territory; ▪ residence in a community undergoing economic transitions (including communities impacted by the shift towards a net-zero economy or deindustrialization: or ▪ membership of another underserved community as defined in U.S. Executive Order 13985; o Business enterprises that certify that they are: ▪ owned and controlled by individuals whose residences are in CDFI investment areas, as defined in prevailing federal guidelines issued by the U.S. Treasury; o Business enterprises that certify that they will: ▪ operate a location in a CDFI investment area, as defined in prevailing federal guidelines issued by the U.S. Treasury; or ▪ business enterprises that are located in CDFI Investment Areas, as defined in prevailing federal guidelines issued by the U.S. Treasury.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 5.3 Eligibility Criteria as a Loan Fund

For an entity to be eligible to participate in the SBLF as a loan fund, they must meet the following criteria: • The loan fund must be a non-depository CDFI-certified loan fund headquartered in

Mississippi; • The loan fund must demonstrate a strong pipeline of prospective deals with small businesses and startups in Mississippi; • The loan fund must show a one-to-one match of committed funds for the total loan amount applied for; o This match must be at the CDFI Fund level. Securing a one-to-one match from other sources of funding for each individual transaction using SBLF funds will not meet this initial requirement. Matching funds must come from “private financing” in accordance with SSBCI definitions. • The loan fund must demonstrate the operational capacity to meet all compliance requirements for participating in the program; • The loan fund must have a strong track record of serving socially and economically distressed individuals (SEDI) businesses and organizations as defined in United States Treasury guidelines; • The loan fund must submit audited financial statements for its past three (3) fiscal years and agree to continue to submit annual audited financial statements; and • The loan fund must be prepared to be fully responsible for sourcing, underwriting, and deploying the capital applied for into startups and small businesses.

Additionally, participating CDFI Loan Funds (“participants”) are expected to pursue, above the one-to-one match at the fund level, a ten (10) to one (1) leverage overall from private financing. The additional leverage can be at the transaction level as well as recycling the use of funds by reinvesting returned capital. •

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 5.4 Terms of Loan Fund Participation

All selected Participants are required to enter into a SBLF Agreement. This agreement establishes the terms and conditions of the program and obligates the Participant to meet the program requirements. The MDA will review applications for participation in the SBLF from CDFI Funds meeting the criteria outlined above. The MDA will make determinations on which applicants participate in the program and to what extent. If an applicant is selected, the following terms in the loan agreement between the Participant and the MDA will apply: • The initial loan is a nine-year term. • 1% interest. • Interest-only. • No repayment guarantee. • The entity must complete two (2) or more eligible transactions per year during the length of the program. • At least 85% of the transaction must be loans to “SEDI-owned businesses.” • No principal of the CDFI Fund has been convicted of a sex offense against a minor (as such terms are defined in section 111 of the Sex Offender Registration and Notification Act (42 U.S.C. § 16911)). • The participant will abide by all rules and regulations of the SBLF in accordance with

SSBCI rules and regulations, including the eligible use of funds described in these guidelines.

While the initial term of the loan is nine (9) years, the MDA will consider applications to end the technical compliance requirements and transaction approvals once all leverage and SEDI deployment requirements have been met. However, if this is granted, the MDA will require participants to provide quarterly reporting on SSBCI-eligible lending activity throughout the MDA's compliance and reporting period to the United States Treasury.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 5.5 Supported Uses and Transactions of SBLF Funding

Participants must use SBLF funding in accordance with Treasury regulations promulgated for the SSBCI program, including 31 C.F.R. Subtitle A, Part 35, Subpart C.

Participants must use SBLF funds for the provision of capital to eligible borrowers. Requirements for eligible SBLF transactions and borrowers are as follows: • 100% of SBLF funding must be used for Mississippi companies; • No more than 50% of SSBCI funds in an individual transaction; • Participants are required to: o target an average borrower or investee size of 500 employees or less, o not extend credit or investment support to borrowers or investees that have more than 750 employees, o target support towards loans or investments with an average principal or investment amount of $5 million or less, and o not provide credit or investment support if a given transaction exceeds $20 million.

• Eligible transactions may not enroll any portion of an SBA-guaranteed loan or the unguaranteed portion of any other federal loan, including the U.S. Department of Agriculture’s Business and Industry (USDA B&I) loan program loan. o One loan cannot be enrolled in more than one approved program at the same time. A lender may not divide one loan into multiple agreements or notes, each enrolled in an approved program, for the same loan purpose. ▪ a borrower may receive two sources of federal support in two separate loans if the proceeds for the two loans are for different purposes.

• Eligible business purposes for SBLF transactions include, but are not limited to: o Start-up costs, working capital, franchise fees, o Acquisition of equipment, o Inventory o Services used in the production, manufacturing, or delivery of a business’s goods or services, or in the purchase, construction, renovation, or tenant improvements of an eligible place of business that is not for passive real estate investment purposes, or o The purchase of any tangible or intangible assets except goodwill.

While SBLF funds cannot be combined with tax-credit enabled funds at the state level, Federal New Market Tax Credits (NMTC), or Historic Tax Credits to make the one-to-one match, SSBCI funds can be used alongside Historic Tax Credits and NMTCs in an individual transaction, but they may not count towards a fund’s overall leverage.

• Eligible small business borrowers may not: o Be a business where any principal of the company has been convicted of a sex offense against a minor; o Be a business engaged in speculative activities that profit from fluctuations in price, such as wildcatting for oil and dealing in commodities futures, unless those activities are incidental to the regular activities of the business and part of a legitimate risk management strategy to guard against price fluctuations or through the normal course of trade; o Be a business that earns more than half of its annual net revenue from lending activities, unless the business is: o a CDFI that is not a depository institution or a bank holding company, or o a Tribal enterprise lender that is not a depository institution or a bank holding company; o Be a business engaged in pyramid sales, where a participant’s primary incentive is based on the sales made by an ever-increasing number of participants; o Be a business engaged in activities that are prohibited by state and/or federal law, or o Be a business deriving more than one-third of gross annual revenue from legal gambling activities.

The participant must secure an assurance from each borrower affirming that the borrower is not: • An executive officer, director, or principal shareholder of the financial institution lender; • A related interest or immediate family member of such an executive officer, director, or principal shareholder of the financial institution lender. • A related interest or immediate family member of such an executive officer, director, or principal shareholder of the financial institution lender.

For purposes of these three borrower restrictions, the terms “executive officer,” “director,” “principal shareholder,” “immediate family,” and “related interest” refer to the same relationship to a financial institution lender as the relationships described in 12 C.F.R. part 215.

Permissible borrowers may include jurisdiction-designated charitable, religious, or other non-profit or philanthropic institutions; government-owned corporations; consumer and marketing cooperatives; and faith-based organizations, provided the loan is for a “business purpose” as defined above. Permissible borrowers may also include sole proprietors, independent contractors, worker cooperatives, and other employee-owned entities, as well as Tribal enterprises, provided that all applicable program requirements are satisfied.

History

• Source: Miss. Code Ann. § 57-10-601;12 USC § 5701 et seq.; 12 C.F.R. part 21; 31 C.F.R. Subtitle A, Part 35, Subpart C.

6 Miss. Admin. Code Pt. 9, R. 5.6 Supported Transactions Information

SBLF supported transactions with the participant must include a disclosure form of all key terms in an easy-to-understand manner. Such disclosures should

include, for example, the loan or investment amount; payment obligation and schedule; any terms giving the participant control over the borrower’s or investee’s cash balances, cash flows or ownership; any conversion rights and future rights to purchase equity; and any fees or extra costs.

SBLF-supported transactions must follow the SSBCI’s rate cap. The interest rate for each individual loan, at the time of obligation and throughout the term of the loan, may not exceed the National Credit Union Administration’s (NCUA) interest rate ceiling for loans made by federal credit unions as described in 12 U.S.C. § 1757(5)(A)(vi)(I) and set by the NCUA board.

SBLF-supported transactions may not have certain features, including any of the following: 1. Confessions of judgment; 2. Prepayment or “double-dipping” fees; or 3. Upfront fees or charges paid by the small business, excluding fees to the program, that exceed 3 percent for loans greater than $25,000 or $500 for loans under $25,000. a. Lenders and borrowers may negotiate transaction terms as long as they are within the parameters established by these minimum standards, any additional requirements of the jurisdiction, and any applicable federal requirements.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.; 12 U.S.C. § 1757; 12 C.F.R. part 215.

6 Miss. Admin. Code Pt. 9, R. 5.7 Ineligible Uses of Funding

Under the program, loans used for these purposes are not eligible for SSBCI funds: • Improve or renovate any portion of rentable property that the small business borrower leases to a third party; • Acquiring or holding passive investments in real estate; Passive real estate investment includes most real estate development (including construction) in which the developer does not intend to occupy or actively use the resulting real property. A small business borrower can deliver the assurance that the loan is not being used for passive real estate if the small business borrower occupies and uses at least a specific percentage of the building; the percentage varies depending on whether the project involves the construction of a new building or renovation of an existing building; • Purchase of securities; • Lobbying activities (as defined in Section 3(7) of the Lobbying Disclosure Act of 1995, P.L. 104-65, as amended); • Repay delinquent federal or jurisdiction income taxes unless the borrower has a payment plan in place with the relevant taxing authority; • Repay taxes held in trust or escrow (e.g., payroll or sales taxes); • Reimburse funds owed to any owner, including any equity investment or investment of capital for the business’s continuance; • Purchase any portion of the ownership interest of any owner of the business, except for the purchase of an interest in an employee stock ownership plan qualifying under section 401 of Internal Revenue Code. This prohibition applies to the acquisition of shares of a company or the partnership interest of a partner when the proceeds of the loan directly supported by SSBCI funds will go to any existing owner or partner; • Refinance existing debt unless the debt is from a non-affiliated lender. o A lender may refinance a borrower’s existing loan, line of credit, extension of

credit, or other debt originally made by an unaffiliated lender only if the following conditions are met: ▪ The amount of the refinanced loan or other debt is at least 150 percent of the previous outstanding balance; ▪ The transaction results in a 30 percent reduction in the fee-adjusted APR contracted for the term of the new debt; and ▪ Proceeds of the transaction are not used to finance an extraordinary dividend or other distribution. • Financial institution lenders are generally prohibited from refinancing an existing outstanding balance or previously made loan, line of credit, extension of credit, or other debt owed by a small business borrower already on the books of the same financial institution (or an affiliate). However, a financial institution lender may use SSBCI funds to support a new extension of credit that repays the amount due on a matured loan or other debt that was previously used for an eligible business purpose when all the following conditions are met: o The amount of the new loan or other debt is at least 150 percent of the outstanding amount of the matured loan or other debt; o The new credit supported with SSBCI funding is based on a new underwriting of the small business’s ability to repay the loan and a new approval by the lender; o The prior loan or other debt has been paid as agreed and the borrower was not in default of any financial covenants under the loan or debt for at least the previous 36 months (or since origination, if shorter); and o Proceeds of the transaction are not used to finance an extraordinary dividend or other distribution.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 5.8 Loan Forgiveness or Loan Repayment

Participants may apply to the MDA to have the SBLF loan forgiven. The MDA will consider such applications for forgiveness if at a minimum, the following conditions are met: • The participant has achieved at least two to one overall leverage within the 9-year term as calculated through the combined fund level, reinvestment level, or transaction level; and • At least 95% of leveraged activity is to SEDI businesses. • • The MDA is able to call any SBLF loans to a Participant should the MDA determine that said Participant is not meeting the programmatic requirements outlined. If the MDA calls the loan, the Participant must return an amount of money equal to the principal of the SBLF loan. The MDA will not forgive any of the principal on deployed funding. • • Considerations for calling the SBLF loan are primarily compliance with eligibility and reporting requirements as outlined in these guidelines as well as deployment requirements. A participant must meet the following benchmarks: • Deployment of at least 50% of SSBCI funds within 18 months of receipt of the loan from the MDA. If not met, the MDA may call the loan. • Deployment of at least 100% of SSBCI funds within 36 months of receipt of the loan from the MDA. If not met, the MDA may call the loan.

• • These two benchmarks will be evaluated on a tranche-by-tranche basis. If a participating CDFI is not in compliance with deployment benchmarks at the time a new tranche of funding is to be allocated/disbursed by MDA, they are ineligible to receive funding in that tranche. • • If a Participant issues SBLF-enabled loans that result in a loss of capital, the loss must at least be pari passu with the SBLF funds. In the event that the MDA calls the overall SBLF loan, the Participant will be required to fully repay the SBLF loan unless overall benchmarks are met for principal forgiveness as indicated elsewhere in these guidelines. Additionally, the MDA does reserve the right to factor loan fund performance in future tranche awards, such that Participants that issue underperforming loans may receive smaller SBLF loans in future tranche awards.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 5.9 Application Process for Program Participation

The MDA will conduct a fair and open application process for selecting CDFI Funds to participate in the SBLF. This application process is described below. Each application must include all of the following information and documents: • Documentation of certification as a CDFI-certified non-depository institution; • Documentation of headquarters in Mississippi; • Summary chart of qualifying prospective loans in excess of the funding amount sought; • Organization chart and key personnel descriptions for the team involved in running the SSBCI program, including compliance and reporting to the MDA; • Three most recent years of audited financial statements; • Proof of the one-to-one match for the first tranche of funding as demonstrated by: o Unrestricted cash in bank statements that could be used for the SSBCI match o Closed loans, credit facilities or other sources of private capital (closed and not letters of intent or commitment letters); and • Demonstration for matching for second and third tranches by letters of intent or commitment letters from other funding sources that could be used for the SSBCI match.

After receiving and reviewing each application, the MDA may conduct interviews with each eligible loan fund to further confirm capacity or clarify any points necessary. Following this review period, the MDA will make final determinations on the loan size and terms for each participating CDFI Fund. It is assumed that such determinations will be for the length of the SBLF program period across all three tranches of funding for each participating fund.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 5.10 Approval Process for Eligible Transactions

The MDA will approve all SBLF transactions issued by Participants. The Participant must submit a “Request for Determination of a Qualified SBLF Loan” form to the MDA. If the request form meets the basic qualifications, the MDA will approve within five business days. The MDA may choose to conduct sample audits at any point in time of the participating loan funds’ SBLF transactions to further verify the representations made in the form.

History

• Source: Miss. Code Ann. § 57-10-601.

6 Miss. Admin. Code Pt. 9, R. 5.11 Reporting and Compliance Requirements

All Participants must submit a monthly transaction

level report for all current and historic activities using SBLF funds. This transaction level report must include: • SBLF-enabled loan size and current balance; • Total transaction size excluding non-eligible capital (ex. SBA loans); • Total eligible capital in the transaction for leverage calculations; • Any subsequent private financing secured by the borrower after the transaction; • Demographics of the borrower; • Date the transaction began; • Date the transaction was repaid; • Term of the transaction; and • Number of employees at the time of the transaction, including independent contractors and sole proprietors.

The MDA will provide training to participating funds on the tools that are required for reporting.

History

• Source: Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.

6 Miss. Admin. Code Pt. 9, R. 5.12 Waiver

These rules and regulations may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the rules and regulations to the extent that the result of such waiver is to promote the public purpose of the statute and is not prohibited by State law.

History

• Source: Miss. Code Ann. § 57-10-601.

6 Miss. Admin. Code Pt. 9, R. 5.13 Debarment and Suspension Policy

To protect the public trust and interest imposed upon the MDA, if it appears that the Company and/or its agent’s conduct, as determined by MDA, creates a reasonable belief that a particular act or omission that is covered by this policy has occurred, the MDA shall implement such discretionary actions known as debarment and suspension. At the time the Company files an application fora loan, they must maintain that there is no action, suit proceeding or investigation at law or in equity before or by any court or governmental agency or body pending or, to the best knowledge of the Company, after reasonable investigation and due inquiry, threatened against the Company in any way contesting or affecting the validity of this Agreement or contesting the powers of the Company to adopt, enter into or perform its obligations under this Agreement or materially and adversely affecting the properties or condition (financial or otherwise) or existence or powers of the Company.

Inquiries should be directed to:

Mississippi Development Authority Attn: Business Incentives Division P.O. Box 849 Jackson, MS 39205 (601) 359-2058

Adopted: November 15, 2023

History

• Source: Miss. Code Ann. § 57-10-601.

Chapter 7 Small Unmanned Aircraft Systems Manufacturer Grant

6 Miss. Admin. Code Pt. 9, R. 7.1 Program Objective

Pursuant to House Bill 1983 of the 2024 Regular Session of the Mississippi Legislature, the Small Unmanned Aircraft Systems Manufacturer Grant Fund authorized MDA, through appropriations by the Legislature, to make grants available to designated small Unmanned Aircraft Systems (sUAS) Manufacturer projects that lead to the expansion of sUAS manufacturing in Mississippi.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.2 Program Description

Through the Mississippi Small Unmanned Aircraft Systems Manufacturer Program, MDA shall accept applications from eligible applicants. These grants will be used to assist sUAS manufacturers with project costs associated with research and development to expand sUAS manufacturing capabilities in Mississippi.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.3 Definitions

In addition to those terms defined herein, these terms shall have the following meaning, unless the context clearly requires otherwise.

"Eligible applicant" means any Mississippi-based small Unmanned Aircraft Systems (sUAS) manufacturer of which a majority of ownership is by residents of the State of Mississippi, and which will provide a capital investment from private sources of not less than One Million Dollars ($1,000,000.00) for the purposes for which a grant is requested.

“Mississippi-based” means any for-profit corporation, limited liability company, partnership, person or sole Proprietorship with its headquarters located in the State of Mississippi.

“Resident” means a natural person who has established a permanent residence, as defined as that place where a person has his or her true, fixed and permanent home and principal establishment to which, whenever absent, he or she has the intention of returning, within the State of Mississippi.

“Small Unmanned Aircraft” means an unmanned aircraft weighing less than 55 pounds on takeoff, including everything that is on board or otherwise attached to the aircraft.

“Small unmanned aircraft system (small UAS)” means a small unmanned aircraft and its associated elements (including communication links and the components that control the small unmanned aircraft) that are required for the safe and efficient operation of the small unmanned aircraft in the national airspace system.

“Unmanned Aircraft” means an aircraft operated without the possibility of direct human intervention from within or on the aircraft.

History

• Source: House Bill 1983, 2024 Regular Session; 14 CFR § 107.3

6 Miss. Admin. Code Pt. 9, R. 7.4 Eligible Applicants and Projects

MDA will accept applications from eligible applicants (manufacturers of small, unmanned aircraft systems). Eligible applicants may apply for grant assistance for research and development activities.

Grants may be awarded to both existing businesses and prospective new businesses.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.5 Eligibility Criteria

The minimum criteria to qualify for a grant is as follows:

O. the business must make a new minimum capital investment from private sources of one million dollars ($1,000,000); P. Mississippi based business entity; Q. the business must have a majority ownership by residents of the State of Mississippi; R. applicant proposes to use funds for the purpose of research and development activities; S. the applicant can demonstrate the ability of the proposed project to expand sUAS manufacturing capabilities in Mississippi; and T. the applicant can demonstrate the ability of the proposed project to be completed on time.

History

• Source: House Bill 1983, 2023 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.6 Funding Availability

The number of applications approved will be based on funding availability.

History

• Source: House Bill 1983, 2023 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.7 Statutory Requirements

Small Unmanned Aircraft Systems Manufacturer Grant Program funds may be awarded to sUAS manufacturers with a majority of ownership by residents of the State of Mississippi which will provide a capital investment from private sources of not less than One Million Dollars ($1,000,000). U. Small Unmanned Aircraft Systems Manufacturer Grant funds may be used for research and development activities to expand sUAS manufacturing capabilities in Mississippi.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.8 Grant Amounts

Grant amounts awarded will vary based on funding availability and other factors, including, but not limited to, the development needs of the projects evaluated, the cost estimates of proposed research and development activities, the minimum private investment, and demonstration that the project will expand upon existing sUAS manufacturing capabilities in the State.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.9 Matching Funds

All grant awards will require matching funds. The required amount must be at least One Million Dollars ($1,000,000) from private sources that do not include funds derived from governmental sources.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.10 Application Process

Applications must be submitted on a form prescribed by MDA. Applications must be submitted with any accompanying documentation deemed necessary by MDA. Each application will be reviewed objectively on the merits of the proposed project. Grant recipients will be notified in writing of the funding decision.

MDA WILL ACCEPT APPLICATIONS BEGINNING NOVEMBER 1 THROUGH NOVEMBER 30. V. The application must include the following: W. • a detailed description and narrative explaining the specific sUAS project, describing the purposes for which a grant is requested and how the project will expand upon small unmanned aircraft systems manufacturing capabilities in Mississippi; • a detailed description of the company ownership and demonstration of Mississippi residency of at least fifty-one percent (51%) of company ownership; • documentation the project has One Million Dollars ($1,000,000) in private matching funds; • a project narrative which should include a cost estimate and timeline of the proposed project; • budget sheet; • three (3) years of audited financials of the eligible applicant; and • E-Verification for the applicant and benefitting business. X. Y. The Applicant must submit two (2) originals of the application to MDA. All documentation must have original signatures.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.11 Grant Awards

After an application is formally approved, a grant agreement outlining the project scope and allowable activities will be executed by the eligible applicant and MDA. Applicants will be accountable for all monies awarded and responsible for the submission and tracking of all expenses. Internal labor will not be reimbursable.

MDA shall provide grant funds to the sUAS projects as approved on a reimbursement basis.

History

• Source: Senate Bill 2525, 2023 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.12 Disbursement

Grant funds will only be disbursed on a reimbursement basis. Applicants must submit a request for payment in a form prescribed by MDA, including documentation of incurred costs and proof or payment to be reimbursed. Projects not completed within twenty-four

(24) months of the execution of a grant agreement must show evidence of progress as determined by MDA’s Business Incentives Division to receive grant funds.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.13 Funding

All projects receiving a grant must adhere to the following rules before requests for payment can be processed and payment can be made: K. The applicant must have a current W-9 form with a Federal Tax ID Number on file at MDA and must be registered as a vendor in the State of Mississippi’s MAGIC system and in Paymode. L. The applicant must list the project name (as listed on the grant application form) and the grant fund number (as listed in the grant agreement) in all correspondence regarding an approved project. M. A copy of vendor invoices and a copy of proof of payment to vendors must be provided with requests for payment, along with a request for payment form. (Examples of proof of payment include canceled checks, bank statements, vendor receipts, etc.) N. MDA may conduct a final site inspection prior to final grant closeout. O. The applicant must return a complete, final report to MDA’s Business Incentives Division no later than 90 days from the project completion date. P. Grant recipients may be required to provide MDA with access to all studies, reports, documents, and/or plans developed as a result of or in conjunction with MDA grant funds.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.14 Changes in Project Scope or Budget

If a project’s scope changes at any point after an application has been invited, the grant recipient must write to MDA’s Business Incentives Division for approval of the change of scope. The letter must state the project name, grant fund number (as noted in the grant agreement), requested change, reasons for requesting the change, and any alterations in cost. If the completed project cost is higher than the approved project cost, grant recipient will receive only the amount of grant funds awarded.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.15 Compliance with Federal and State Laws

Recipient is required to ensure compliance with the Mississippi Employment Protection Act (“MEPA”), Miss. Code. Ann. § 71-11-3 et seq., and must ensure that the recipient registers and participates in the status verification system for all newly hired employees. Under MEPA, the term "employee” means any person that is hired to perform work within the State of Mississippi. As used in MEPA, "status verification system" means the Illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program, or any other successor electronic verification system replacing the E-Verify Program. The recipient must maintain records of such compliance and, upon request of the State of Mississippi, to provide a copy of each such verification to the State. Any person assigned to perform services must meet the employment eligibility requirements of all federal and state immigration laws. Any breach may subject the recipient to the following: (a) termination of the grant agreement and ineligibility for any assistance, grant or state or public contract in Mississippi for up to three (3) years, with notice

of such cancellation/termination being made public, or (b) the loss of any license, permit, certification or other document granted to the recipient by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year, or (c) both. In the event of such termination/cancellation, the recipient is also liable for any additional costs incurred by the State.

No person in the United States shall, on the grounds of race, creed, color, sex, or national origin, be excluded from participation in, be denied the proceeds of, or be subject to discrimination in the performance of any Grant. Grantee will comply with the Civil Rights Act of 1964, as amended, and any regulations promulgated thereto. Grantee shall also comply with the Age Discrimination in Employment Act of 1967 prohibiting discrimination in employment on the basis of age; Equal Pay Act of 1963 prohibiting discrimination in salaries on the basis of gender; Mississippi Equal Pay for Equal Work Act prohibiting discrimination in salaries on the basis of gender; Americans with Disabilities Act of 1990 prohibiting discrimination against individuals with disabilities; and the Genetic Information Nondiscrimination Act of 2008 prohibiting discrimination on the basis of an individual's genetic information including an individual's genetic tests, the genetic tests of an individual's family member, and the manifestation of a disease or disorder in an individual's family member.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.16 Organizational Changes

The sale, merger, acquisition, reorganization, bankruptcy or relocation from one (1) county to another county within the State of any business enterprise may not create new eligibility in any succeeding business entity.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.17 Certification

In applying to MDA, the applicant certifies that all documents, instruments and information delivered to MDA by the applicant does not contain any untrue statements of a material fact or omit to state a material fact in light of the circumstances under which they were made not misleading. The applicant also certifies that it has disclosed, in writing, to MDA all facts that might reasonably be expected to result in a material adverse effect upon the applicant’s ability either to conduct its business or to carry out any agreement with the State. The applicant or its agents may not knowingly and willfully make or use a document or writing containing any false, fictitious, or fraudulent statement or entry in any application, correspondence, or communication with MDA. If there has been an inadequate or inaccurate disclosure of information, any approval or certification may be invalidated or revoked. Any financial benefit as a result may be required to be paid back to the State.

History

• Source: House Bill 1983, 2024 Regular Session

6 Miss. Admin. Code Pt. 9, R. 7.18 Waiver

These Rules and Regulations may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the Rules and Regulations to the extent that the result of such waiver is to promote the public purpose of the statute and is not prohibited by State law.

Contact Information:

Mississippi Development Authority Attn: Business Incentives Division P.O. Box 849 Jackson, MS 39205 (601) 359-3449

Adopted: October 22, 2024

History

• Source: House Bill 1983, 2024 Regular Session

Part 10 Part 10: Community Services; Mississippi Small Municipalities & Limited Population Counties 2018 Grant Program Application Guidelines & Implementation Manual

6 Miss. Admin. Code Pt. 10, R. 2018 Page | 2

SMALL MUNICIPALITIES AND LIMITED POPULATION COUNTIES GRANT PROGRAM The Mississippi Small Municipalities and Limited Population Counties Grant Program (SMLPC), administered by the Mississippi Development Authority (MDA), is designed for making grants to small municipalities and limited population counties or natural gas districts ("Local Sponsors") to finance projects to promote economic growth in the State of Mississippi ("State"). Funding for grants to Local Sponsors is derived from appropriations or funds otherwise made available by the State Legislature. The Small Municipalities and Limited Population Counties Grant Program is authorized under Section 57-1-18 et seq., MS Code, Annotated.

6 Miss. Admin. Code Pt. 10, R. 2018 Page | 3

Eligibility Eligible Applicants

A small municipality, limited population county, or gas district must submit an application to MDA:  Small Municipality - means a municipality in the State of Mississippi with a population of ten thousand (10,000) or less according to the most recent federal decennial census at the time the application is submitted. The term “small municipality” also includes a municipal historical hamlet as defined in Section 17-27-5 of the Mississippi Code of 1972.  Limited Population County - means a county in the State of Mississippi with a population of thirty thousand (30,000) or less according to the most recent federal decennial census at the time the application is submitted.  Natural Gas Districts - means districts created by law and meeting the same requirements as small municipalities.  Census Designated Place (CDP’s) on the official list are not eligible.

Eligible Projects

The mission of MDA is “To foster a strong state economy and vibrant communities through innovation, use of talent and resources to improve our citizens’ lives.”

The intent of the program is to stimulate growth and economic development in small communities throughout the State. The selection process will provide priority consideration to those applications that directly relate to the agency mission of fostering a strong economy and vibrant communities. MDA will prioritize applications that promote private sector permanent, non-construction job creation and/or retention and promote private sector capital investment.

Eligible projects must be publicly owned and adhere to program selection priorities.

 Priority #1: Economic Development Improvements- Projects that lead to growth of the state and local economy through private capital investment, new and improved jobs, and trade for Mississippi made products and services. Examples: Industrial Park improvements, spec buildings, etc.

 Priority #2: Community Development Improvements- Projects that improve public infrastructure to indirectly benefit business and industry location and expansion in the local community. Examples: Main Street Infrastructure such as water, sewer, roads and sidewalks, Tourism assets, etc.

6 Miss. Admin. Code Pt. 10, R. 2018 Page | 4

 Priority #3: Public Improvements- Projects that improve public infrastructure that enhance the quality of life for the local community. Examples: General water, sewer and road improvements.

6 Miss. Admin. Code Pt. 10, R. 2018 Page | 5

General Provisions The maximum grant amount which may be awarded to any one Local Sponsor will be $150,000.

Each application will be evaluated on its own merit to meet the intent of the program. All projects must be related to MDA Eligible Priorities.

Communities with a population of 3,500 or less will be required to have a minimum 10% match. Communities with a population greater than 3,500 will be required to have a minimum 20% match. This may be in the form of a loan, cash, or in-kind services. Documented project related soft costs such as administrative, engineering, architectural, inspection, legal, etc. are acceptable forms of matching funds.

SMLPC funds may not be used for working capital, general expenditures, which would normally be covered under a local sponsor’s general operation budget, ad valorem taxes, or for project related soft costs such as administrative, engineering, architectural, inspection, legal, etc.

If a community has any open SMLPC grants, they are not eligible to submit another application. An acceptable close-out package must be submitted before an application is considered.

Mississippi Employment Protection Act

All grant recipients entering into contracts with the Mississippi Development Authority represents and warrants that it will ensure compliance with the Mississippi Employment Protection Act and will register and participate in the status verification system of all newly hired employees. The term “employee” as used herein means any person that is hired to perform work within the State of Mississippi. As used herein, “status verification system” means the illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program or any other successor electronic verification system replacing the E-Verify Program. The grantee agrees to maintain such compliance and, upon request of the State, to provide copy of each such verification to the State. The grantee further represents and warrants that any person assigned to perform services hereunder meet the employment eligibility requirements of all migration laws of the State of Mississippi. The grantee understands and agrees that any breach of these warranties may subject the grantee to the following: (a) termination of this Agreement and ineligibility for any state or public contract in Mississippi for up to three (3) years, with notice of such cancellation/termination being made public, or (b) the loss of any license, permit, certification or other document granted to the grantee by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year, or (c) or both. In the event of such cancellation/termination, the grantee would also be liable for any additional costs incurred by the State due to contract cancellation or loss of license or permit.

6 Miss. Admin. Code Pt. 10, R. 2018 Page | 6

Application Process

To apply for the Small Municipalities and Limited Population Counties Grant Program, a completed application that is submitted by an eligible applicant must include:  A detailed description of the project and narrative explaining how the specific improvements relate to the priority. Also include the following:  Current employment levels at the project site and estimated increase, if any, as a result of the project  A description of the Local Sponsor's investment in the project, and all public or private sources of funding that have been secured and that will be utilized exclusively for the project  Need Documentation (pictures, company commitment letters, letters of support from citizens, etc.)  Legislative Support Letters  Cost Estimate: Cost estimate must be submitted by an engineer or architect on their letterhead as a signed and stamped original  Timeline for implementation and completion of project  Budget Sheet  Executed copy of the Local Sponsor’s resolution of authorization to apply for grant funds  Executed copy of the Local Sponsor’s resolution committing matching funds to the project  Documentation of Additional Funds (All matching funds must be committed and in place with documentation at time of application)  E-Verification for the recipient

The Applicant must submit one original of the application to MDA. Complete applications must be submitted in a legal sized, dark blue classification folder with bottom tabbed dividers in between each attachment. All documentation should have original signatures.

6 Miss. Admin. Code Pt. 10, R. 2018 Rule 2018

Applications will be due by August 31st, 2018 by 4:00 pm, MDA time. Applications can be mailed to: Mississippi Small Municipalities and Limited Population Counties Grant Program Mississippi Development Authority Community Services Division Post Office Box 849 Jackson, MS 39205

6 Miss. Admin. Code Pt. 10, R. 2018 Page | 7

MDA will evaluate the application to determine if the project meets program criteria. Any application that does not contain information sufficient for review will not be considered for funding.

Award Process

Upon being awarded a SMLPC grant, a binding contract will be executed between the Mississippi Development Authority and the recipient for the specific amount awarded and for the particular activity selected by the applicant.

Construction may not begin prior to an effective grant award date. Any expenses incurred before the effective date of the grant agreement will not be reimbursed by MDA.

All funded projects are required to enter the construction phase within 12 months of the award date. Where construction has not begun within 12 months, the applicant must satisfactorily demonstrate why the project should be kept open or the award may automatically be voided.

Procurement

All contracts and purchases must be made in accordance with normal bid and purchase laws of a municipality or county.

Minority and Women Owned Business Enterprises

The Mississippi Development Authority (MDA) encourages the maximum opportunity for increased participation by local Minority and Women-Owned Business Enterprises (MBE/WBE) in the procurement of goods and services. The Mississippi Development Authority Minority Business Division at www.mmbr.org and the Mississippi Procurement Technical Center at www.mscpc.com can assist with MBE/WBE outreach efforts.

Disbursement of Funds

SMLPC is a competitive program. All funds awarded must be spent for improvements within the scope of the original project description as stated in the grant application. Additionally, all funds will flow through the local sponsor or gas district.

MDA will release SMLPC program funds for services rendered, on a reimbursement basis, for approved eligible costs incurred for the project.

Recipients will have two (2) years from the date of the grant agreement to request reimbursement for SMLPC funds. Failure to implement and complete the project within that time frame may result in the agreement being voided and funds de-obligated.

6 Miss. Admin. Code Pt. 10, R. 2018 Page | 8

Requests for Cash

SMLPC funds are requested on a reimbursement basis by using the Request for Cash and Consolidated Support Sheet. These forms can be found at www.mississippi.org/csd in the Forms Library as a single excel file titled “Request for Cash.” The Request for Cash form provides the necessary information about the recipient, project and budget, along with the required signatures to authorize the request. The Consolidated Support Sheet allows for all the reported costs to be documented along with the amount of funds expended and remaining. The costs reported must be equal to the amount requested and disbursed including any matching funds. Signatures on both forms are required in order to process the request. In addition, adequate invoices and other certified documentation must be submitted with these forms and prior to approval of disbursement of funds.

An Authorized Signatory Letter must be sent prior to or no later than with the first Request for Cash and at any time there is a change in administration. The Authorized Signatory Letter will advise CSD of the authorized signatories for the SMLPC project.

Completed Requests for Cash must be submitted to: The Mississippi Development Authority Community Services Division Post Office Box 849 Jackson, Mississippi 39205-0849

All forms submitted must be accurately completed or the request cannot be processed and will be returned to the recipient. Forms submitted with errors will delay the process and greatly impact the turnaround time for funds being released because all information must be verified and approved for payment prior to submission to the Department of Finance and Administration. According to State Statute, 45 days is allowed for the processing of cash requests. If after the 45 th day payment has not been received, please contact the Program Manager to check on the status of your request. Requests for Cash overlapping the State’s fiscal year (June 30 th ) or the sub-recipient’s fiscal year must be separated into two separate requests.

All requests for construction expenses must include an itemized invoice approved by the engineer/architect.

Matching funds must be expended and documented at a proportionate rate with SMLPC Funds unless approved by MDA.

6 Miss. Admin. Code Pt. 10, R. 2018 Page | 9

Contract Modifications

The Community Services Division requires all SMLPC grant recipients to receive approval prior to making contract amendments, modifications or extensions. SMLPC grant recipients must submit correspondence and documentation associated with the request, signed under the original signature of the chief elected official or appointed executive officer, supporting the need for the change(s) or extension.

NOTE: CSD must approve any changes to the original budget prior to local action. Failure to have approval may result in an ineligible activity which may result in the repayment of grant funds to MDA.

No approved applicant will be allowed to use excess funds to pay for the project costs not accounted for in the original project description. Additionally, if the recipients complete their project for less than the amount awarded, the excess funds can be requested for additional project work as long as there is no change from the scope of the original project.

Monitoring

Funds provided under the SMLPC are subject to audit by the Mississippi State Auditor’s office. Additionally, MDA will also monitor all projects to ensure compliance with the original application submitted.

During the life of the project or at project completion, a CSD program manager will contact the grant recipient to determine a date for the monitoring visit.

Close-Out Process

Close-Out Packages bearing the original signatures of the designated signatory officials are due to MDA within 30 days after completion of the project or 60 days from the termination date of the contract.

The close-out process encompasses a series of activities to verify that SMLPC funds have been properly spent and that the local sponsor has completed the elements of its project in a timely and acceptable manner.

The grant recipient must submit all financial, performance, and other reports required as a condition of the grant. The tasks involved in closing out a grant include: 1. Resolution of all monitoring findings; 2. Submission of close-out report (one original copy); and

6 Miss. Admin. Code Pt. 10, R. 2018 Page | 10

3. Submission of Certificate of Completion (two original signed copies)

The close-out process should begin when the following criteria have been met or will be met shortly. 1. All costs to be paid with program funds have been paid, including any unsettled third- party claims. 2. The recipient has fulfilled all of its responsibilities under the Funding Agreement. This includes injection of all local cash and in-kind services, other State and/or Federal funding, all private investment, and job creation/retention (where applicable).

Delays in completing close-out can result in the denial of future requests with MDA. All monitoring findings must be resolved before the close-out can be finalized. File Maintenance

Maintaining an efficient filing system is critical to the administration and monitoring of your project. A successful monitoring experience hinges on the quality with which the local sponsor maintains its filing system and the ease of obtaining information from those files.

When establishing a file system, local sponsor should consider using two categories to set up their files, grant files, and project files. The grant files should contain documentation and information that relate to the overall funding and administration of your project. The project files should contain specific documentation and information pertaining to the SMLPC project and should be maintained for a minimum of five (5) years from grant closeout or for the period required as specified by governing regulations.

Program Contacts

MDA Community Development Bureau 601.359.5756 601.359.2859

These guidelines may be amended by MDA at any time. MDA, at its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

Part 11 Part 11: Mississippi Gulf Coast Restoration Fund Grant Program

Chapter 1 GCRF Section 7 Grant Program Rules & Regulations Rule 1.1 Program Objective. A. The Mississippi Gulf Coast Restoration Fund (GCRF) Grant Program administered by the Mississippi Development Authority (MDA), is designed for making grants to finance projects to promote economic growth in the Gulf Coast region as defined by the federal RESTORE Act, or twenty-five (25) miles from the northern boundaries of the three (3) coastal counties of Harrison, Hancock, and Jackson, but not to expand beyond the boundaries of Hancock, Harrison, Jackson, Pearl River, Stone, and George counties. If a county is included in the coastal zone, then the county seat and the land lying to the east, west, and south within that county would be considered a part of the coastal zone. B. The Mississippi Gulf Coast Restoration Fund Grant Program is authorized under Miss. Code Ann. § 57-119-1, et seq. (the “Act”). Funding for grants to eligible applicants is derived from appropriations or funds otherwise made available by the State Legislature. C. Section 7 of the Act requires an application by an eligible applicant which will be compiled and scored by MDA, with advice from the Gulf Coast Restoration Fund Advisory Board. MDA’s recommendations will be presented to the Legislature no later than December 1 of each year. The Legislature shall determine the projects that will be funded in an upcoming appropriation bill.

6 Miss. Admin. Code Pt. 11, R. 1.2 Eligible Applicants

Eligible applicants include, but are not limited to, local units of government, nongovernmental organizations, institutions of higher learning, community colleges, public schools, ports, airports, public-private partnerships, private for-profit entities, private non- profit entities, and local economic development entities.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.3 Eligible Projects

The intent of the Act is to stimulate growth and economic development in Pearl River, Stone, George, Jackson, Harrison, and Hancock counties. The GCRF Grant program is designed to support projects that will impact the competitiveness of these coastal counties and have a significant economic benefit on the region. Per the Act, projects must have the

potential to generate increased economic activity in the region. The Act directs MDA to give priority to projects that meet the following criteria: A. Projects that will impact the long-term competitiveness of the region and may result in a significant positive impact on tax base, private sector job creation and private sector investment in the region; B. Projects that demonstrate the maximum long-term economic benefits and long-term growth potential of the region based on a financial analysis such as a cost-benefit analysis or a return-on-investment analysis; C. Projects that demonstrate long-term financial sustainability, including clear performance metrics, over the duration of the project; D. Projects that leverage or encourage leveraging of other private sector, local, state and federal funding sources with preference to projects that can demonstrate contributions from other sources than funds from the BP settlement; E. Projects that are supported by multiple government or private sector entities; F. Projects that can move quickly and efficiently to the design, engineering, and permitting phase; G. Projects that enhance the quality of life/place and business environment of the region, including tourism and recreational opportunities; H. Projects that expand the region's ability to attract high-growth industries or establish new high-growth industries in the region; I. Projects that leverage or further enhance key regional assets, including educational institutions, research facilities, ports, airports, rails, and military bases; J. Projects that are transformational for the future of the region but create a wider regional impact; K. Projects that enhance the marketability of existing industrial properties; L. Projects that enhance a targeted industry cluster or create a Center of Excellence unique to the region; M. Infrastructure projects for business retention and development; N. Projects that enhance research and innovative technologies in the region; and

O. Projects that provide outcome and return on investment measures, to be judged by clear performance metrics, over the duration of the project or program.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.4 Approval Process for Section 7 Grants

MDA, with advice from the Gulf Coast Restoration Fund Advisory Board, shall review, compile, and score all timely received applications submitted under Section 7 of the Act and shall present the applications and its recommendations for assistance to individual projects under Section 7 to the Legislature no later than December 1 of the year. The Legislature shall determine individual projects that will be funded by separate line items in an upcoming appropriation bill.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.5 Match Requirements

GCRF assistance may not be used to finance one hundred percent (100%) of the cost of any project; however, this limitation shall not apply to projects for public schools. All applicants, excluding public schools must provide a match of at least twenty percent (20%) of the total project costs from non-State funds. Direct project costs accrued on or after April 20, 2010, the date of the Deep Horizon disaster, are eligible as matching funds if they meet the other match requirements and can be documented by the recipient as to how much and when the money was spent. In-kind services cannot count toward the twenty percent (20%) match requirement; however, they are eligible to utilized for matching funds more than the twenty percent requirement.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.6 MDA Administrative Costs

MDA reserves the right to recover from applicants and recipients of GCRF funds a portion of the costs associated with administering assistance provided under the Act.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.7 Rule 1.7

General & Administrative Costs (“Soft Costs”): GCRF funds may pay for professional services (architectural/engineering fees, feasibility studies, geotechnical, permitting), property acquisition services (appraisal fees, land surveys), legal fees, loan fees, project management, advertising, marketing and PR fees; however, the allowable amount is limited to ten percent (10%) of GCRF funds. GCRF funds may not be used to pay grant administration costs, salary, wages or fringe costs, travel costs, or consulting costs. Rule 1.8 Registering with the Secretary of State. All business applicants must be licensed to do business in the State by the Secretary of State’s Office, as required by state statute.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.9 Mississippi Employment Protection Act

All grant recipients entering into grant agreements with the Mississippi Development Authority must represent and warrant that they will ensure compliance with the Mississippi Employment Protection Act and will register and participate in the E-Verify System, the federal employment status verification system, of all newly hired employees.

1.10 Repayment of Funds. Grant Agreements executed by MDA shall have provisions for the repayment of funds by eligible applicants if the grant provided by MDA was based upon fraudulent information provided by the applicant or the applicant fails to meet performance metric requirements as described in the grant agreement.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.
• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.11 Submitting Applications for Funding under Section 7

Applications for funding under Section 7 of the Act must be submitted to MDA via web portal prior to the application deadline each year. The web portal will be made available on MDA’s website (www.mississippi.org) and will clearly state the application portal submission dates. Submitted applications must include a completed application and all necessary supporting documentation submitted in Portable Document Format (.pdf) via the web portal. Applications will not be accepted after the portal has closed for any given year; MDA will not accept applications submitted outside of the web portal.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.12 Application Requirements

The portal application will include the following: A. The name, address, and contact information of the applicant and the benefiting entity, if different; B. A detailed description of the project and a narrative explaining how the project relates to the statutory priorities of the Act; C. Current employment levels at the project site and an estimated increase, if any, as a result of the project (if applicable); D. A description of the applicant’s investment in the project and all public and/or private sources of funding that have been secured and that will be utilized exclusively for the project; E. Cost estimate: a cost estimate must be submitted by an engineer, architect, or appropriate official;

F. Timeline for implementation and completion of the project; G. Budget sheet; H. Project Maps and/or Construction Drawings, if applicable; I. Executed copy of the local unit of government’s resolution of authorization to apply for grant funds (if the applicant is a public entity); J. Executed copy of the local unit of government’s resolution committing matching funds to the project (if the applicant is a public entity); K. Documentation of additional funds, if applicable (all matching funds must be committed and in place with documentation at the time of application); L. Supporting documentation, such as pictures, company commitment letters, letters of support from stakeholders, etc., if applicable; M. Proof that E-Verification systems are in place, if applicable; N. Proof of Secretary of State Status, if applicable.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.13 Rule 1.13

Application Review Process: Following the closure of the web portal, MDA will review, compile and score all applications and attachments submitted through the portal. MDA will provide all project information to the GCRF Advisory Board for its review and will take its recommendations on projects prior to MDA submitting its recommendation to the Legislature no later than December 1 of the year.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.14 Award Process

Upon GCRF funds being appropriated by the legislature, MDA will request project information for all appropriated projects. Once a completed project information packet is received and approved by MDA, a binding grant agreement will be executed between the Mississippi Development Authority and the recipient for the specific amount awarded and for the particular activity appropriated by the Legislature. Construction may not begin prior to an effective grant award date. Any expenses incurred before January 1 of the year a project is first appropriated will not be reimbursed by MDA.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.15 Procurement

All contracts and purchases must be made in accordance with normal bid and purchase laws of a local unit of government or other public entity if the grant is for a public

purpose.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.16 Minority and Women Owned Business Enterprises

MDA encourages the maximum opportunity for increased participation by minority and women-owned business enterprises in the procurement of goods and services. MDA’s Minority Business Division and the Mississippi Procurement Technical Center can assist with minority and women-owned business enterprise outreach efforts. See www.mmbr.org or www.mscpc.com for more information.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.17 Disbursement of Funds

A. All funds awarded must be spent for improvements within the scope of the project description as stated in the project information packet. B. MDA will reimburse applicants for eligible costs incurred for the project. C. All funded projects are required to begin within 12 months of the award date. Where the project has not commenced within 12 months, the applicant must satisfactorily demonstrate that the project is proceeding or the award may be de-obligated. D. Recipients will have one (1) year to request reimbursement for GRCF funds, with an expiration of June 30 th of the following year after appropriation. All open projects will be subject to reappropriation by the Legislature in subsequent years until the project is complete. E. Invoices, proof of payment and other documentation must be submitted with the Request for Cash form for funds to be disbursed. A copy of the Request for Cash form and detailed instructions for submitting payment requests will be provided after the grant agreement is executed. F. All forms submitted must be accurately completed or the request cannot be processed and will be returned to the recipient. Forms submitted with errors will delay the process and impact the turnaround time for funds being released because all information must be verified and approved for payment prior to submission to the Department of Finance and Administration. According to state statute, 45 days is allowed for the processing of cash requests. If after the 45 th day payment has not been received, recipients should contact MDA to check on the status of their request. G. Requests for Cash overlapping the State’s fiscal year (June 30 th ) must be separated

into two separate requests. H. All requests for reimbursement of construction expenses must include an itemized invoice approved by the engineer/architect.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.18 Grant Agreement Modifications

A. MDA must approve any request for a grant agreement amendment, modification, or extension. GCRF grant recipients must submit correspondence and documentation associated with the request, signed under the original signature of the chief elected official, appointed executive officer, or officer of any private entity supporting the need for the change(s) or extension. B. MDA must approve any changes to the original budget. Failure to have approval may result in an ineligible activity which may result in the repayment of grant funds to MDA. C. No approved applicant will be allowed to use excess funds to pay for project costs not accounted for in the original project description. Additionally, if a recipient completes a project for less than the amount awarded, excess funds can be requested for additional project work if there is no change from the scope of the original project.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.19 Reporting

To comply with the Act’s reporting requirements, GCRF grant recipients must submit a Quarterly Report to MDA no later than January 15 th , April 15 th , July 15 th and October 15 th of every year. MDA will provide the Quarterly Report form. The failure to submit Quarterly Report will result in a delay in processing requests for cash and close-out packages.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.20 Monitoring

A. Funds provided under the GCRF are subject to audit by the Mississippi State Auditor’s office. Additionally, MDA will also monitor all projects to ensure compliance with the original application submitted. All recipients must comply with requests from MDA regarding information required by the Legislature. B. During the life of the project or at project completion, MDA will contact the grant recipient to determine a date for a monitoring visit.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.21 Close-Out Process

A. The close-out process encompasses a series of activities to verify that GCRF funds have been properly spent and that all GCRF administrative actions and all required work on the project has been completed in a timely and acceptable manner. B. The close-out process should begin when the following criteria have been met: (i.) All costs to be paid with program funds have been paid, including any unsettled third- party claims. (ii.) The recipient has fulfilled all its responsibilities under the grant agreement. This includes injection of all matching funds, all private investment, achieving all performance metrics and all job creation/retention commitments (where applicable). C. Close-out packages bearing the original signatures of the designated signatory officials (one original copy) and submission of the Certificate of Completion (two original copies) are due to MDA within 30 days after completion of the project.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.22 File Maintenance

Maintaining an efficient filing system is critical to the administration and monitoring of a GCRF grant. A successful monitoring experience hinges on the quality with which the recipient maintains its filing system and the ease of obtaining information from those files. When establishing a file system, grant recipients should consider using two categories to set up their files, grant files, and project files. The grant files should contain documentation and information that relate to the overall funding and administration of the project. The project files should contain specific documentation and information pertaining to the GCRF project and should be maintained for a minimum of five (5) years from grant closeout or for the period required as specified by governing regulations.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 1.23 Waiver

These guidelines may be amended by MDA at any time. MDA, at its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law. Program Contacts. With questions or to request more information regarding the GCRF grant program, contact:

Mississippi Development Authority Financial Resources Division P.O. Box 849 Jackson, Mississippi 39205 601.359.3619 Adopted September 28, 2022

Chapter 2 GCRF Section 8 Grant Program Rules & Regulations Rule 2.1 Program Objective. A. The Mississippi Gulf Coast Restoration Fund (GCRF) Grant Program administered by the Mississippi Development Authority (MDA), is designed for making grants to finance projects to promote economic growth in the Gulf Coast region as defined by the federal RESTORE Act, or twenty-five (25) miles from the northern boundaries of the three (3) coastal counties of Harrison, Hancock, and Jackson, but not to expand beyond the boundaries of Hancock, Harrison, Jackson, Pearl River, Stone, and George counties. If a county is included in the coastal zone, then the county seat and the land lying to the east, west, and south within that county would be considered a part of the coastal zone. B. The Mississippi Gulf Coast Restoration Fund Grant Program is authorized under Miss. Code Ann. § 57-119-1, et seq. (the “Act”). Funding for grants to eligible applicants is derived from appropriations or funds otherwise made available by the State Legislature. C. Section 8 of the Act provides that MDA shall receive an annual appropriation to make grants to eligible applicants throughout the year.

6 Miss. Admin. Code Pt. 11, R. 2.2 Eligible Applicants

Eligible applicants include, but are not limited to, local units of government, nongovernmental organizations, institutions of higher learning, community colleges, public schools, ports, airports, public-private partnerships, private for-profit entities, private non-profit entities, and local economic development entities.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.3 Eligible Projects

The intent of the Act is to stimulate growth and economic development in Pearl River, Stone, George, Jackson, Harrison, and Hancock counties. The GCRF Grant program is designed to support projects that will impact the competitiveness of these coastal counties and have a significant economic benefit on the region. Per the Act, projects must have the potential to generate increased economic activity in the region. The Act directs MDA to give priority to projects that meet the following criteria: A. Projects that will impact the long-term competitiveness of the region and may result in a significant positive impact on tax base, private sector job creation and private sector investment in the region; B. Projects that demonstrate the maximum long-term economic benefits and long-

term growth potential of the region based on a financial analysis such as a cost- benefit analysis or a return-on-investment analysis; C. Projects that demonstrate long-term financial sustainability, including clear performance metrics, over the duration of the project; D. Projects that leverage or encourage leveraging of other private sector, local, state and federal funding sources with preference to projects that can demonstrate contributions from other sources than funds from the BP settlement; E. Projects that are supported by multiple government or private sector entities; F. Projects that can move quickly and efficiently to the design, engineering, and permitting phase; G. Projects that enhance the quality of life/place and business environment of the region, including tourism and recreational opportunities; H. Projects that expand the region's ability to attract high-growth industries or establish new high-growth industries in the region; I. Projects that leverage or further enhance key regional assets, including educational institutions, research facilities, ports, airports, rails, and military bases; J. Projects that are transformational for the future of the region but create a wider regional impact; K. Projects that enhance the marketability of existing industrial properties; L. Projects that enhance a targeted industry cluster or create a Center of Excellence unique to the region; M. Infrastructure projects for business retention and development; N. Projects that enhance research and innovative technologies in the region; and O. Projects that provide outcome and return on investment measures, to be judged by clear performance metrics, over the duration of the project or program.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.4 Approval Process for Section 8 Grants

MDA shall review all applications received during the appropriated year for consideration under Section 8 of the Act and shall make a

determination, based on the statutory priorities listed above, regarding which eligible projects are to be funded. The Legislature will provide MDA with an appropriated amount of funds for use in funding these projects.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.5 Match Requirements

GCRF assistance may not be used to finance one hundred percent (100%) of the cost of any project; however, this limitation shall not apply to projects for public schools. All applicants, excluding public schools must provide a match of at least twenty percent (20%) of the total project costs from non-State funds. Direct project costs accrued on or after April 20, 2010, the date of the Deep Horizon disaster, are eligible as matching funds if they meet the other match requirements and can be documented by the recipient as to how much and when the money was spent. In-kind services cannot count toward the twenty percent (20%) match requirement; however, they are eligible to utilized for matching funds in excess of the twenty percent requirement.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.6 MDA Administrative Costs

MDA reserves the right to recover from applicants and recipients of GCRF funds a portion of the costs associated with administering assistance provided under the Act.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.7 Rule 2.7

General & Administrative Costs (“Soft Costs”): GCRF funds may pay for professional services (architectural/engineering fees, feasibility studies, geotechnical, permitting), property acquisition services (appraisal fees, land surveys), legal fees, loan fees, project management, advertising, marketing and PR fees; however, the allowable amount is limited to ten percent (10%) of GCRF funds. GCRF funds may not be used to pay grant administration costs, salary, wages or fringe costs, travel costs, or consulting costs.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.8 Registering with the Secretary of State

All business applicants must be licensed to do business in the State by the Secretary of State’s Office, as required by state statute.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.9 Mississippi Employment Protection Act

All grant recipients entering into grant agreements with the Mississippi Development Authority must represent and warrant that they will ensure compliance with the Mississippi Employment Protection Act and will register and participate in the E-Verify System, the federal employment status verification system, of all newly hired employees.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.10 Repayment of Funds

Grant Agreements executed by MDA shall have provisions for the repayment of funds by eligible applicants if the grant provided by MDA was based upon fraudulent information provided by the applicant or the applicant fails to meet performance metric requirements as described in the grant agreement.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.11 Submitting Applications for Funding under Section 8

Applications for funding under Section 8 of the Act will be accepted on a rolling basis; there is no application deadline to apply for Section 8 funding. Applications for funding under Section 8 must include a completed application form and all necessary supporting documentation. Any application submitted for funding under Section 8 that does not contain information sufficient for review will not be considered for funding. Applications can be mailed to: Mississippi Gulf Coast Restoration Fund Program Mississippi Development Authority Financial Resources Division 501 North West Street Jackson, MS 39201

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.12 Application Requirements

To apply for the Mississippi Gulf Coast Restoration Fund Grant Program, applicants for funding under Section 8 of the Act must submit a completed Project Information Packet (supplied by MDA) or an application that includes the following: A. The name, address, and contact information of the applicant and the benefiting entity, if different; B. A detailed description of the project and a narrative explaining how the project relates to the statutory priorities of the Act; C. Current employment levels at the project site and an estimated increase, if any, as

a result of the project (if applicable); D. A description of the applicant’s investment in the project and all public and/or private sources of funding that have been secured and that will be utilized exclusively for the project; E. Cost estimate: a cost estimate must be submitted by an engineer, architect, or appropriate official; F. Timeline for implementation and completion of the project; G. Budget sheet; H. Project Maps and/or Construction Drawings, if applicable; I. Executed copy of the local unit of government’s resolution of authorization to apply for grant funds (if the applicant is a public entity); J. Executed copy of the local unit of government’s resolution committing matching funds to the project (if the applicant is a public entity); K. Documentation of additional funds, if applicable (all matching funds must be committed and in place with documentation at the time of application); L. Supporting documentation, such as pictures, company commitment letters, letters of support from stakeholders, etc., if applicable; and M. Proof that E-Verification systems are in place, if applicable; N. Proof of Secretary of State Status, if applicable.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.13 Rule 2.13

Application Review Process: MDA will review all Section 8 application submissions that are complete with all the required attachments. Following the review, the applicant will be contacted to provide any additional information MDA deems appropriate and required.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.14 Award Process

Once all requested information has been completed by the applicant and approved by MDA, a binding grant agreement will be executed between the Mississippi Development Authority and the recipient for the specific amount awarded and for the particular activity approved by the MDA. Construction may not begin prior to an effective grant award date. Any expenses incurred before the effective date of the grant agreement will not be

reimbursed by MDA.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.15 Procurement

All contracts and purchases must be made in accordance with normal bid and purchase laws of a local unit of government or other public entity if the grant is for a public purpose.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.16 Minority and Women Owned Business Enterprises

MDA encourages the maximum opportunity for increased participation by minority and women-owned business enterprises in the procurement of goods and services. MDA’s Minority Business Division and the Mississippi Procurement Technical Center can assist with minority and women-owned business enterprise outreach efforts. See www.mmbr.org or www.mscpc.com for more information.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.17 Disbursement of Funds

A. All funds awarded must be spent for improvements within the scope of the project description as stated in the project information packet. B. MDA will reimburse applicants for eligible costs incurred for the project. C. All funded projects are required to begin within 12 months of the award date. Where the project has not commenced within 12 months, the applicant must satisfactorily demonstrate that the project is proceeding or the award may be de- obligated. D. Recipients will have one (1) year to request reimbursement for GRCF funds, with an expiration of June 30 th of the following year after appropriation. All open projects will be subject to reappropriation by the Legislature in subsequent years until the project is complete. E. Adequate invoices and other certified documentation must be submitted with a Request for Cash form for funds to be disbursed. A copy of the Request for Cash form and detailed instructions for submitting payment requests will be provided after the grant agreement is executed. F. All forms submitted must be accurately completed or the request cannot be processed and will be returned to the recipient. Forms submitted with errors will delay the process and impact the turnaround time for funds being released

because all information must be verified and approved for payment prior to submission to the Department of Finance and Administration. According to state statute, 45 days is allowed for the processing of cash requests. If after the 45 th day payment has not been received, recipients should contact MDA to check on the status of their request. G. Requests for Cash overlapping the State’s fiscal year (June 30 th ) must be separated into two separate requests. H. All requests for reimbursement of construction expenses must include an itemized invoice approved by the engineer/architect.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.18 Grant Agreement Modifications

A. MDA must approve any request for a grant agreement amendment, modification, or extension. GCRF grant recipients must submit correspondence and documentation associated with the request, signed under the original signature of the chief elected official, appointed executive officer, or officer of any private entity supporting the need for the change(s) or extension. B. MDA must approve any changes to the original budget. Failure to have approval may result in an ineligible activity which may result in the repayment of grant funds to MDA. C. No approved applicant will be allowed to use excess funds to pay for project costs not accounted for in the original project description. Additionally, if a recipient completes a project for less than the amount awarded, excess funds can be requested for additional project work if there is no change from the scope of the original project.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.19 Reporting

To comply with the Act’s reporting requirements, GCRF grant recipients must submit a Quarterly Report to MDA no later than January 15 th , April 15 th , July 15 th and October 15 th of every year. MDA will provide the Quarterly Report form. The failure to submit the Quarterly Report will result in a delay in processing requests for cash and close-out packages.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.20 Monitoring

A. Funds provided under the GCRF are subject to audit by the Mississippi State Auditor’s office. Additionally, MDA will also monitor all projects to ensure compliance with the original application submitted. All recipients must comply with requests from MDA regarding information required by the Legislature. B. During the life of the project or at project completion, MDA will contact the grant recipient to determine a date for a monitoring visit.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.21 Close-Out Process

A. The close-out process encompasses a series of activities to verify that GCRF funds have been properly spent and that all GCRF administrative actions and all required work on the project has been completed in a timely and acceptable manner. B. The close-out process should begin when the following criteria have been met: (i.) All costs to be paid with program funds have been paid, including any unsettled third- party claims. (ii.) The recipient has fulfilled all its responsibilities under the grant agreement. This includes injection of all matching funds, all private investment, achieving all performance metrics and all job creation/retention commitments (where applicable). C. Close-out packages bearing the original signatures of the designated signatory officials (one original copy) and submission of the Certificate of Completion (two original copies) are due to MDA within 30 days after completion of the project.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.22 File Maintenance

Maintaining an efficient filing system is critical to the administration and monitoring of a GCRF grant. A successful monitoring experience hinges on the quality with which the recipient maintains its filing system and the ease of obtaining information from those files. When establishing a file system, grant recipients should consider using two categories to set up their files, grant files, and project files. The grant files should contain documentation and information that relate to the overall funding and administration of the project. The project files should contain specific documentation and information pertaining to the GCRF project and should be maintained for a minimum of five (5) years from grant closeout or for the period required as specified by governing regulations.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 2.23 Waiver

These guidelines may be amended by MDA at any time. MDA, at its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law. Program Contacts. With questions or to request more information regarding the GCRF grant program, contact: Mississippi Development Authority Financial Resources Division P.O. Box 849 Jackson, Mississippi 39205 601.359.3619 Adopted September 28, 2022

Chapter 3 GCRF Loan and Loan Guaranty Program Rules & Regulations Rule 3.1 Program Objective. A. The Mississippi Gulf Coast Restoration Fund (GCRF) Loan Program administered by the Mississippi Development Authority (MDA) is designed for making loans to finance projects to promote economic growth in the Gulf Coast region as defined in the federal RESTORE Act, or twenty-five (25) miles from the northern boundaries of the three (3) coastal counties of Harrison, Hancock, and Jackson, but not to expand beyond the boundaries of Hancock, Harrison, Jackson, Pearl River, Stone, and George counties. If a county is included in the coastal zone, then the county seat and the land lying to the east, west, and south within that county would be considered a part of the coastal zone. B. The Mississippi Gulf Coast Restoration Fund Loan Program is authorized under Miss. Code Ann. § 57-119-1, et seq. (the “Act”). Funding for loans for eligible applicants is derived from appropriations or funds otherwise made available by the State Legislature.

6 Miss. Admin. Code Pt. 11, R. 3.2 Eligible Loan Purposes and Uses

The intent of the Act is to stimulate growth and economic development in Pearl River, Stone, George, Jackson, Harrison, and Hancock counties. The projects must have the potential to generate increased economic activity in the Gulf Coast region, and MDA will give priority to projects that meet the following objectives established by

the Act: A. Projects that will impact the long-term competitiveness of the region and may result in a significant positive impact on tax base, private sector job creation, and private sector investment in the region; B. Projects that demonstrate the maximum long-term economic benefits and long- term growth potential of the region based on a financial analysis such as a cost- benefit analysis or a return-on-investment analysis; C. Projects that demonstrate long-term financial sustainability, including clear performance metrics, over the duration of the project; D. Projects that leverage or encourage leveraging of other private sector, local, state and federal funding sources with preference to projects that can demonstrate contributions from other sources than funds from the BP settlement; E. Projects that are supported by multiple government or private sector entities; F. Projects that can move quickly and efficiently to the design, engineering, and permitting phase; G. Projects that enhance the quality of life/place and business environment of the region, including tourism and recreational opportunities; H. Projects that expand the region's ability to attract high-growth industries or establish new high-growth industries in the region; I. Projects that leverage or further enhance key regional assets, including educational institutions, research facilities, ports, airports, rails, and military bases; J. Projects that are transformational for the future of the region but create a wider regional impact; K. Projects that enhance the marketability of existing industrial properties; L. Projects that enhance a targeted industry cluster or create a Center of Excellence unique to the region; M. Infrastructure projects for business retention and development; N. Projects that enhance research and innovative technologies in the region; and

O. Projects that provide outcome and return on investment measures, to be judged by clear performance metrics, over the duration of the project or program. GCRF loan/loan guaranty proceeds must be used for a “business purpose.” A business purpose includes, but is not limited to, startup costs, working capital, equipment, and inventory, as well as the purchase, construction, renovation or tenant improvements of an eligible place of business that is not for passive real estate investment purposes.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.3 Ineligible Loan Purposes and Uses

Under the program, loans made for the following uses or purposes are not eligible to apply: A. Refinancing existing debt B. Financing the acquisition, construction, improvement, or operation of real property, which is to be held primarily for sale or investment, such as commercial real estate ownership C. Financing any business engaged in lending, directly or indirectly D. Repaying delinquent federal or state income taxes E. Reimbursing funds owed to any owner, including any equity injection F. Financing working capital and/or rolling stock G. Financing a non-business purpose

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.4 Qualified Borrowers

A. Mississippi new or existing small businesses with up to 250 employees and less than $7,000,000 in gross revenues or $1,000,000 in profit after taxes –The company must be financially sound, present evidence that it can repay the debt, and must not have defaulted on any previous loan from the state or federal government. B. Governmental Entities and Economic Development Organization, when the financing is for a “business purpose” – including, but not limited to, local units of government, institutions of higher learning, ports, airports, public-private partnerships, and public, local economic development entities.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.5 Eligible Loan Guaranty Financial Institutions

All financial institutions must be preapproved by MDA before participating in the program. Eligible participating Financial Institutions must have operations in Mississippi and may include: A. Commercial banks B. Savings banks C. Federal land banks D. Farm credit banks, agricultural credit associations, or other farm credit agencies E. Mississippi Planning and Development Districts F. Community development corporations G. Community development financial institutions To be approved for participation in the program, an eligible financial institution must submit an Application for Participation to MDA. The application document and list of required attachments will be reviewed by MDA and considered for approval for participation in the program. An MDA-approved financial institution will be required to enter into the GCRF Loan Guaranty Program Agreement. This agreement establishes the terms and conditions of the program and obligates the lender to meet program requirements.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.6 Lender Participation

A. An eligible financial institution must be approved for participation in the GCRF Loan Guaranty Program by MDA. To be approved for participation in the program, an eligible financial institution must submit an Application for Participation to MDA. The application document and list of required attachments will be reviewed by MDA and considered for approval for participation in the program. B. An MDA-approved financial institution will be required to enter into the GCRF Loan Guaranty Program Agreement. This agreement establishes the terms and conditions of the program and obligates the lender to meet program requirements.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.7 Ineligible Borrowers

A. The borrower may not be an executive officer, director, or principal shareholder of the partnering Financial Institution or a member of the immediate family of an executive officer, director, or principal shareholder of the partnering Financial Institution. Immediate family is defined as spouse, parent, child, or sibling of the applicant. B. The borrower may not earn more than half its annual net revenue from lending activities and may not be a business that is engaged in the following activities: i. Speculative activities that develop profits from fluctuations in price rather than the normal course of trade ii. Pyramid sales, where a participant’s primary incentive is based on the sales made by an ever-increasing number of participants iii. Gambling enterprises iv. Activities that are prohibited by federal law or applicable law in the jurisdiction where the business is located or conducted

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.8 Application Fee

A $5,000 application fee is due when an application is filed with MDA.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.9 Applying for Funding

A. Applications for funding will be accepted on a rolling basis; there is no application deadline. All applicants requesting GCRF loan funding must submit a completed application form and all necessary supporting documentation. The application must include the following: (i.) A detailed description of the project; (ii) A cost estimate for the project, as well as a detailed breakdown of all public or private sources of funding; (iii) Information regarding the purpose of the proposed loan, including the activities to be funded with loan proceeds and the cost of each; (iv) Documentation on how the proposed loan relates to the priorities outlined in the Act; and

(v) The time schedule for implementation and completion of the project evidencing an expeditious completion of the project. B. After an initial application review, MDA will ask applicants who are Companies to submit the following: (i.) Company balance sheets, income statements, and statements of cash flow for the previous three (3) fiscal years and current statements dated within ninety (90) days of application and/or three (3) years of tax returns; (ii.) A two (2) year business plan for the project; and (iii.) A list of principal stockholders, partners, or parties who have ownership of twenty percent (20%) or more in the Company. If the applicant is a new Company, each of these individuals must provide personal financial statements for the past three years and current statements dated within (90) days of application, as well as three (3) years of tax returns. C. After an initial application review, MDA will ask applicants who are Governmental Entities and Economic Development Organizations to submit the following: (i.) Certified proof of publication of the Resolution of Intention of the governmental entity to apply for the GCRF Loan Program. The Resolution must be published once a week for at least four (4) consecutive weeks in a newspaper having general circulation in the county. Upon receiving the results of the publication of the Resolution of Intention, the governmental entity will need to provide MDA with an executed Resolution of No Protest. (ii.) Most recent audited financial statements. D. MDA may require additional information as needed. Applications can be mailed to: Mississippi Gulf Coast Restoration Fund Grant Program Mississippi Development Authority Financial Resources Division 501 North West Street Jackson, MS 39201

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.10 Registering with the Secretary of State

All business applicants must be licensed to do business in the State by the Secretary of State’s Office, as required by state statute.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.11 Mississippi Employment Protection Act

All loan recipients entering into loan agreements with the Mississippi Development Authority must represent and warrant that they will ensure compliance with the Mississippi Employment Protection Act and will register and participate in the E-Verify System, the federal employment status verification system, of all newly hired employees.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.12 Loan Terms and Conditions

A. The borrower must inject a minimum of ten percent (10%) equity into the project. B. The minimum loan amount is $250,000. C. The term of the loan shall be the determined useful life of the asset to be financed or up to twenty (20) years, whichever is less. D. The rate of interest on the loan will be at a fixed rate. MDA will determine the interest rate of a loan on a project-by-project basis based on a review of the application.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.13 Loan Guaranty Terms and Conditions

A. The amount of the loan guaranty will not exceed eighty percent (80%) of the loan amount or $500,000, whichever is less. The minimum amount will not be less than $50,000. B. The loan guaranty percentage will be determined by the type of loan and the risk profile of the loan. To determine the percentage of guaranty approved for each loan, the guaranty application will be reviewed by MDA’s GCRF Loan Review Committee. The committee will consider credit history, experience, and history of the borrower, collateral coverage, and job creation in its evaluation and will set the guaranty percentage based on these factors. (i) Working capital, lines of credit, and accounts receivable loans will be eligible for a loan guaranty of up to fifty percent (50%).

(ii) Loans to finance fixed assets, such as equipment and real estate, will be eligible for a loan guaranty of up to eighty percent (80%), based on the risk associated with the loan. C. Working capital, lines of credit, and accounts receivable loans will have a maximum guaranty term of five (5) years. D. Loans to finance fixed assets, such as equipment and real estate, will be eligible for a guaranty term of up to fifteen (15) years. The term will not exceed the useful life of the assets securing the loan or being financed, with a maximum term of fifteen (15) years. E. The term of the GCRF guaranty shall match the term of the financial institution’s loan, up to the maximum of fifteen (15) years. (Amortization may exceed the loan term). F. MDA shall keep the amount of each loan guaranty in the proper fund in the State Treasury until the loan has been repaid early, there has been a default, or the term of the loan has expired and the loan has been closed.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.14 Repayment

Principal and interest payments will be due monthly, with a fixed amount to be paid over the life of the loan.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.15 Liens

Each loan will be secured by a lien to provide adequate security for MDA to recover its investment in case of default on the loan. Liens may be in the form of, but are not limited to, personal guarantees, liens on equipment installed, or a security interest in other assets.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.16 Guaranties

For business applicants, individuals or entities with twenty percent (20%) or more ownership in the company will be required to provide personal guaranties and life insurance.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.17 Loan and Loan Guaranty Approval

MDA shall review all GCRF loan/loan guaranty applications received during the appropriated year for consideration under the Act, and all completed loan applications will be presented for consideration to MDA’s GCRF Loan Review Committee. If a loan has been applied for under

Section 8 of the Act and the review committee has approved a loan application, the loan commitment is valid for ninety (90) days. If the loan has not closed within ninety (90) days, updated information may be required and the loan will be resubmitted to the review committee for approval before the loan can proceed to closing.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.18 Loan Closing

A. Based upon the terms and conditions established by MDA, MDA will have all security and loan documents, including but not limited to the loan agreement and promissory note, prepared by outside counsel. Prior to disbursement of any funds, all loan documents must be fully executed. B. The borrower will also be responsible for paying for all costs associated with the closing of the loan, including document preparation, attorney’s fees, title searches and filing fees.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.19 Administrative Costs

MDA reserves the right to recover from applicants and recipients of GCRF funds a portion of the costs associated with administering assistance provided under the Act.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.20 Disbursement Process

MDA will release loan funds on a reimbursement or services rendered basis for approved eligible costs of the project as incurred. The borrower shall certify to MDA that the expenses were incurred and were in accordance with the project as approved by MDA. Funds will be released periodically upon receipt of supporting documentation from the borrower based upon a schedule established by MDA.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.21 Reporting/Monitoring

To comply with the Act’s reporting requirements, borrowers must submit a Quarterly Report to MDA no later than January 15th, April 15th, July 15th and October 15th of every year. MDA will provide the Quarterly Report form. The failure to submit the Quarterly Report will result in a delay in processing requests for cash and close-out packages.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.22 Audit

Funds provided under the GCRF Loan program are subject to audit by the Mississippi State Auditor’s office. Additionally, MDA will also monitor all projects to ensure

compliance with the original application submitted. All borrowers must comply with requests from MDA regarding information required by the Legislature.

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

6 Miss. Admin. Code Pt. 11, R. 3.23 Waiver

These guidelines may be amended by MDA at any time. MDA, in its discretion, may temporarily waive any requirement of the guidelines to the extent that the result of such waiver is to promote the public purpose of the Act and is not prohibited by State Law.

Contact Information. Program inquiries should be directed to: Mississippi Development Authority Financial Resources Division P.O. Box 849 Jackson, Mississippi 39205 601.359.3619 Adopted September 28, 2022

History

• Source: Miss. Code Ann. § 57-119-1, et seq.

PEARL RIVER BASIN DEVELOPMENT DISTRICT PEARL RIVER BASIN DEVELOPMENT DISTRICT

Part 401 Pearl River Basin Development District

Chapter 2 AMERICANS WITH DISABILITIES ACT POLICIES

6 Miss. Admin. Code Pt. 401, R. 3.1 GENERAL RESERVATION INFORMATION

(a) All reservations must be made by persons of at least 21 years of age, must have a valid driver’s license and must be present during occupation.

(b) Reservations can be made up to one year in advance.

(c) A reservation requires a non-refundable deposit. The deposit must be received within 7 days of making the reservation. If deposit is not received, the reservation will be cancelled.

(d) The amount of the Reservation Deposit is the same as the daily rate.

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.2 CAMPSITE RESERVATIONS & DEPOSIT

(a) Reservations for Monday through Thursday require a one night deposit.

(b) Reservations for weekends (Friday, Saturday & Sunday) require a two night deposit.

(c) Reservations for Holidays-national Memorial Day, Independence Day July 4th, and Labor Day require a three night deposit. No discount rates are allowed on holidays.

(d) No reservations can be made for campsites 21-40. These sites are designated first come-first serve.

(e) No reservations can be made for campsites 75-81 except by monthly renters. Requires one month’s deposit. Check out 1:00 p.m.

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.3 CABIN RESERVATIONS & DEPOSITS

(a) On holiday reservations require a one night deposit. Reservations for Holidays- National Memorial Day, Independence Day July 4th, and Labor Day require a two night deposit.

(b) Rental Agreement and Refundable Security Deposit is required on rental of cabins. The Log Cabin security deposit is $50.00. The Family Cabin security deposit is $100.00.

(c) Security Deposit is due at time of Check In and will be refunded after satisfactory Check Out inspection.

(d) Check out 11:00 a.m.

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.4 PAVILION RESERVATION AND DEPOSIT

Reservation requires a one day deposit for each day reserved.

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.5 CANCELLATIONS AND RAIN CHECKS

(a) A cancellation of less than 48 hours from the reservation date will result in forfeiture of one nights rent. A Rain Check for the balance of the reserved nights can be provided. No refunds can be given.

(b) No Rain Check will be given where there is a reduction of nights in violation of the reservation policy.

(c) No Rain Check will be issued due to the eviction of occupant.

(d) No Rain Check can be given for bad weather.

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.6 PARK RULES

(a) Cabins, park facilities and grounds must be kept clean and left neat.

(b) No smoking in cabins.

(c) Quiet hours are from 10:00 p.m. to 6:00 a.m.

(d) No loud music at any time.

(e) No abusive, boisterous, offensive, threatening language or behavior.

(f) No alcoholic beverages are allowed in the park.

(g) Pets must be kept on a leash.

(h) Pets will not be left unattended.

(i) Pets are not allowed in or around cabins.

(j) Camp only in designated areas.

(k) Do not leave campfires unattended.

(l) Extinguish campfires after use.

(m) No cutting of trees or vegetation is allowed in the park.

(n) No hunting, firearms, or fireworks are allowed in the park.

(o) Vehicles shall be parked in designated areas.

(p) No all-terrain vehicles are allowed in the park.

(q) No motorized vehicles are allowed on trails.

(r) No person under 12 years of age is allowed in the park unless accompanied by an adult.

(s) Violation of any park rules is ground for eviction from the park.

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.7 PARK ENTRY FEE

(a) Each Person $2.00 (b) Minimum per vehicle $3.00

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.8 DAILY CAMPING RATES

(a) Campsite rate is for one to four people (b) Each person over four per site $2.00 (c) Campsite with electricity and water $16.00 (d) Senior Citizen (55+) & 100% Disabled $14.00 (e) Improved Campsite $20.00 (with concrete pad, electricity, water and sewer) (f) Primitive Campsite $10.00

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.9 MONTHLY CAMPSITE RENTAL

Improved Campsites only $400.00 (Including electricity)

Rule 3. 10 OCCUPANCY

(a) An occupant of a campsite or cabin is recognized as an individual 4 years of age or older. (b) Maximum campsite occupancy is 8 persons. (c) Maximum of two vehicles per campsite.

History

• Source: Miss. Code Ann. § 51-11-19.
• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.11 LOG CABIN (Maximum occupancy is four)

(a) Daily rate $75.00 (b) Security/Clean up Deposit $50.00 (c) Maximum of two vehicles parked at cabin

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.12 FAMILY CABIN (Maximum Occupancy is eight)

(a) Daily rate $95.00 (b) Each person over four $5.00 (c) Security/Clean up deposit $100.00 (d) Each vehicle over two $2.00 (e) Maximum of four vehicles parked at cabin

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.13 VEHICLES

Daily rate includes two vehicles per campsite or cabin. The Family Cabin is allowed more than two vehicles with an additional charge.

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.14 DAILY FACILITY RENTAL

(a) Pavilion $100.00 (b) Security/Clean up Deposit $100.00 (c) Picnic Table with cover $6.00 (d) Picnic Table without cover $5.00

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.15 BOAT RAMP

(a) Boat launch fee $3.00 (b) Tube launch fee $2.00

History

• Source: Miss. Code Ann. § 51-11-19.

6 Miss. Admin. Code Pt. 401, R. 3.16 CREDIT CARD FEE

(a) Credit card fee for reservation by credit card for cabins, campsites and pavilion $2.00 per transaction (b) Credit card fee for other payments by credit card 3% of cost of transaction