By Janie Ginocchio
In our last blog post, we summarized legislation of interest passed in the 2019 regular session of the Arkansas General Assembly. This week, we turn our attention to the Mississippi Legislature. Below is a summary of and links to select laws passed this session, which ended March 29.
SB 2598 – To Amend Section 57-105-1, Mississippi Code of 1972, to Extend until July 1, 2021, the Date after Which the Mississippi Development Authority Shall Not Allocate Income Tax and Insurance Premium Tax Credit for Taxpayers Holding Certain Qualified Equity Investments
The title says it all.
SB 2817 – To Amend Section 81-5-1, Mississippi Code of 1972, To Clarify the General Parity and Open-End Credit Parity Provisions
This legislation adds a subsection to Section 81-5-1, Mississippi Code of 1972 to encourage banks in Mississippi that extend open-end credit to stay in the state instead of relocating operations to another state with better interest rates, fees and terms and offering those to Mississippi customers through federal “most favored lender” doctrine.
The new subsection allows banks chartered or domiciled in the state to offer the same or lower interest rates, fees and charges as banks in other states who extend open-end credit accounts to Mississippi customers under the federal most favored lender doctrine. In order to take advantage of this, banks must document the rates and fees to be charged, the state that permits the rates and fees documented, and the identity of one or more financial institutions.
HB 1132 – To Reenact Sections 57-10-701 through 57-10-709, Mississippi Code of 1972, Which Create the Small Business and Grocer Investment Act
The bill reenacts and extends the repeal date of the Small Business and Grocer Investment Act, which is a program that provides a dedicated source of funding to finance healthy food retail operations in underserved areas of the state. In addition of the funding available through grants and loans from the Mississippi Development Authority (MDA), the program provides technical assistance.
The MDA can contract with one or more qualified nonprofits of Community Development Finance Institutions to administer the program through a public-private partnership. The partnership would be responsible for raising matching funds, evaluating funding applications, making award decisions, underwriting loans, and evaluating compliance and impact. The program will now be in effect until July 1, 2022.
HB 800 – To Reenact Sections 81-22-1 through 81-22-28, Mississippi Code of 1972, Which Are the Mississippi Debt Management Services Act
The bill reenacts and extends the repeal date of the Mississippi Debt Management Services Act, which governs the licensure, service provision, and consumer communications of debt management service providers. The act also outlines the role, authority and powers of the Mississippi Commissioner of Banking and Consumer Finance in regulating debt management service providers. The law will remain in effect until July 1, 2022.