Mississippi Senate Bill SB2510

Mississippi 2023 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Failed: 1/31/23

Caption

Counties and municipalities; authorize to enter into public-private partnership for purpose of economic development.

Impact

If enacted, SB2510 will amend Section 17-25-27 of the Mississippi Code of 1972, which already deals with economic development projects. It stipulates that any public funds or credit lent to private entities must be approved at a public meeting and must demonstrate a valid public purpose, even if there is an incidental benefit to private companies. Additionally, it mandates the publication of a notice detailing the proposed actions, thus increasing transparency and public engagement in the process.

Summary

Senate Bill 2510 aims to enhance economic development in Mississippi by authorizing counties and municipalities to enter into public-private partnerships. This legislation allows local governments to grant public funds and lend their credit to both public and private entities. The intent is to encourage the growth of industries and businesses within their jurisdiction, fostering job creation and overall economic improvement in the region. The bill is a response to the need for municipalities to have more tools and flexibility in promoting local economic growth.

Contention

Notable points of contention surrounding SB2510 include concerns about how public funds will be used and the extent of potential financial risks to local governments. Critics may argue that providing financial incentives, such as tax exemptions for up to ten years, could disproportionately favor larger businesses at the expense of small and medium-sized enterprises. There may also be apprehension about the accountability mechanisms in place to ensure that funds are utilized effectively for public benefit, particularly given the long duration of binding agreements of up to twenty years.