Mississippi Administrative Code › Title 12 - Finance and Administration › Part 7 - Bond Advisory Division › Chapter 1 - Debt Management Policy › Rule 12-7-1.2A - Project Compliance with Debt Management Objectives

Current through June 25, 2024
Unless otherwise directed by law, the State Bond Commission
				  may only issue general obligation debt on behalf of the State of Mississippi if
				  the project for which the debt is issued meets the following criteria:
(1) In the instance of issuance of a
				tax-exempt bond, the project is for public use and does not meet any of the
				Private Activity Bond tests specified in 26 U.S. Code § 141, et. seq.
				(Subpart A - Private Activity Bonds); or, in the instance of issuance of a
				Private Activity Bond, the Commission has clear and convincing evidence of
				economic use and benefit, including economic development, job creation, or
				other improvement of the public welfare;
(2) The project asset has a life equal to or
				longer than the life of its corresponding debt;
(3) No expenditures were made before the
				anticipated delivery date of the bonds, except in situations where the entity
				obtains a Declaration of Intent from the State Bond Commission;
(4) The authorized entity has submitted
				sufficient information to ensure the project asset is specific, not generic in
				nature; and
(5) The project is not
				the funding of salaries or other recurring expenses.
For purposes of examining projects, the State Bond
				  Commission may use definitions also utilized by the Governmental Accounting
				  Standards Board, or GASB, where appropriate.
Members of the Bond Commission may consider the financial
				  impact on taxpayers throughout the state and over the lifetime of the bond
				  repayment. Members of the Bond Commission may also consider whether the benefit
				  of the project is primarily to the state or to the local economy, and whether
				  other state, federal or private funding mechanisms (including but not limited
				  to, local bonds, privilege taxes, grants, loans from the Mississippi
				  Development Bank, Mississippi Development Authority, the Mississippi Department
				  of Environmental Quality, USDA Rural Development, and/or from a direct
				  appropriation) might be available and more appropriate to generate the required
				  funding for the project.
The members of the Bond Commission should endeavor to make
				  themselves fully available to the members of the Legislature so that only
				  projects that meet the above criteria are included in bond bills brought before
				  the Legislature for passage.
Entities with projects authorized by the Legislature in bond
				  bills are strongly urged not to rely on such funds until such time as the Bond
				  Commission has approved the corresponding debt.
The members of the Bond Commission should endeavor to ensure
				  that all projects included in any resolution brought before the Bond Commission
				  meet the above criteria. Entities with projects authorized by the Legislature
				  in bond bills are urged to provide the members of the Bond Commission with any
				  information requested and as necessary to ensure that these guidelines are met.
				  The Department of Finance and Administration shall gather sufficient
				  information from non-State agency entities to allow the members of the Bond
				  Commission to evaluate the project based on these criteria.
§
										31-17-1,
				  31-18-3,
				  31-18-5,
				  31-17-153,
				  31-17-101