MS HB1584

Authorizes issuance of $10,000,000 in state general obligation bonds to fund the Small Municipalities and Limited Population Counties Fund, with all bonds to be issued by July 1, 2014.

Bonds are general obligations of Mississippi with full faith and credit of the state pledged for repayment; interest rates cannot exceed limits in Section 75-17-101 and bonds mature within 25 years.

Proceeds deposited into the Small Municipalities and Limited Population Counties Fund to make grants to municipalities with populations of 10,000 or less and counties with populations of 30,000 or less, with maximum grant of $250,000 per entity during any grant period.

Allows Mississippi Development Authority to reimburse up to 3% of bond proceeds for actual and necessary administrative costs related to project assistance, with detailed accounting required for each project.

Bonds are exempt from state taxation, qualify as legal investments for trustees and fiduciaries, and bond income is also tax-exempt in Mississippi.