Site Development Grant Program; revise certain definitions., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Ways and Means

By: Representative Lamar

House Bill 1633

(As Sent to Governor)

AN ACT TO AMEND SECTION 57-1-701, MISSISSIPPI CODE OF 1972,
TO REVISE THE DEFINITIONS OF THE TERMS "ELIGIBLE EXPENDITURES" AND "SITE
DEVELOPMENT IMPROVEMENTS" FOR PURPOSES OF THE SITE DEVELOPMENT GRANT
PROGRAM; AND FOR RELATED PURPOSES.

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

SECTION 1.
Section 57-1-701, Mississippi Code of 1972, is amended as follows:

57-1-701.  (1)  For the
purposes of this section, the following words and phrases shall have the
meanings ascribed in this subsection unless the context clearly indicates
otherwise:

(a)  "Eligible
entity" means any (i) county, (ii) municipality or (iii) public or private
nonprofit local economic development entity including, but not limited to,
local authorities, commissions, or other entities created by local and private
legislation or pursuant to Section 19-5-99.

(b)  "Optioned property" means industrial property
that is subject to a real estate option to purchase contract entered into
between an eligible entity and a real estate owner, where such option shall be
for a minimum of three (3) years and the option price shall not exceed the
appraised fair market value of the real estate.

(c)  "Eligible
expenditures" means:

(i)  Fees for
architects, engineers, environmental consultants, attorneys, and such other
advisors, consultants and agents that MDA determines are necessary to complete
site due diligence associated with site development improvements located on or
utility improvements serving industrial property that is publicly owned or
is optioned property;

(ii)
Contributions toward site development improvements, as approved by MDA, located
on industrial property that is publicly owned;

(iii)
Contributions toward public infrastructure improvements directly serving industrial
property that is publicly owned or is optioned property; * * * and/or

(iv)  Contributions
toward acquisition of publicly owned real property used for economic
development purposes by an eligible entity, where the acquisition price shall
not exceed the appraised fair market value of the property;

(v)
Contributions toward the acquisition of easements and rights-of-way directly
serving industrial property that is publicly owned or is optioned property;
and/or

(vi)
Contributions toward improvements to enhance the delivery of electricity and
gas to industrial property that is publicly owned or is optioned property.

(d)  "MDA"
means the Mississippi Development Authority.

(e)  "Site
development improvements" means site clearing, grading, and environmental
mitigation; improvements to drainage systems; * * * easement and right‑of‑way
acquisition; sewer systems; transportation directly affecting the
site, including roads, bridges or rail; bulkheads; taxiways and parking ramps;
land reclamation; water supply (storage, treatment and distribution);
telecommunications systems, including fiber optic; natural gas distribution
systems; aesthetic improvements; the dredging of channels and basins; or other
improvements as approved by MDA.

(2)  (a)  There is hereby
created in the State Treasury a special fund to be designated as the "Mississippi
Site Development Grant Fund," which shall consist of funds made available
by the Legislature in any manner and funds from any other source designated for
deposit into such fund.  Unexpended amounts remaining in the fund at the end of
a fiscal year shall not lapse into the State General Fund, and any investment
earnings or interest earned on amounts in the fund shall be deposited to the
credit of the fund.  Monies in the fund shall be used to make grants to assist
eligible entities as provided in this section.

(b)  Monies in the fund
which are derived from proceeds of bonds issued under Section 2 of Chapter 390,
Laws of 2017, Section 5 of Chapter 412, Laws of 2018, Section 1 of Chapter 421,
Laws of 2019, Section 4 of Chapter 492, Laws of 2020, Section 8 of Chapter 480,
Laws of 2021, or Section 1 of * * * this act Chapter 503, Laws of 2025, or
provided by the Legislature, may be used to reimburse reasonable actual and
necessary costs incurred by MDA for the administration of the various grant,
loan and financial incentive programs administered by MDA.  An accounting of
actual costs incurred for which reimbursement is sought shall be maintained by
MDA.  Reimbursement of reasonable actual and necessary costs shall not exceed
three percent (3%) of the proceeds of bonds issued or the monies provided by
the Legislature.  Reimbursements under this subsection shall satisfy any
applicable federal tax law requirements.

(3)  (a)  MDA shall
establish a program to make grants to eligible entities to match local or other
funds associated with improving the marketability of publicly owned industrial
property for industrial economic development purposes and other property
improvements as approved by MDA.  An eligible entity may apply to MDA for a
grant under this program in the manner provided for in this section.  An
eligible entity desiring assistance under this section must provide matching
funds in an amount determined by MDA.  Matching funds may be provided in the
form of cash and/or in-kind services as determined by MDA.

(b)  An eligible entity
desiring assistance under this section must submit an application to MDA.  The
application must include:

(i)  A description
of the eligible expenditures for which assistance is requested;

(ii)  The amount of
assistance requested;

(iii)  The amount
and type of matching funds to be provided by the eligible entity; and

(iv)  Any other
information required by MDA.

(c)  Upon request by
MDA, an eligible entity shall provide MDA with access to all studies, reports,
documents and/or plans developed as a result of or related to an eligible
entity receiving assistance under this section.

(4)  MDA shall have all
powers necessary to implement and administer the program established under this
section, and the department shall promulgate rules and regulations, in
accordance with the Mississippi Administrative Procedures Law, necessary for
the implementation of this section.

(5)  MDA shall file an
annual report with the Governor, the Secretary of the Senate and the Clerk of
the House of Representatives not later than December 1 of each year, describing
all assistance provided under this section.

SECTION 2.
This act shall take effect and be in force from and after July 1, 2026.