MISSISSIPPI AIRPORTS ASSOCIATION 2016 Legislative Report

2 © 2016 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC Bills Signed into Law  House Bill 1074  Creates an "Economic Development and Infrastructure Fund" in the State Treasury and directs the Mississippi Development Authority to develop programs to:  Assist with infrastructure development and reconstruction in gaming counties  Assist with air service development in gaming counties by assisting Part 121 carriers through:  revenue and seat guaranties  seat cost mitigation  ground handling  marketing  From available funds, not less than $2.5 million are to be used for air service development

3 © 2016 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC Bills Signed into Law  House Bill 1078  Extends Sunset from July 1, 2016 to July 1, 2019  Statute authorizes an Income Tax Credit for businesses utilizing airports for export or import of cargo  Statute continues to require the business to:  Locate its United States headquarters in Mississippi on or after July 1, 2005  Employ at least five (5) new permanent full-time employees at the Mississippi headquarters  Invest a minimum of $2,000,000, in the aggregate, in real property and/or personal property in Mississippi after July 1, 2005

4 © 2016 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC Bills Signed into Law  Subject to the limits below, statute provides a credit against up to 50% of income tax liability for the amounts expended for receiving into the airport, aircraft marshalling or handling fees and aircraft landing fees.  The maximum cumulative credit that may be claimed by a taxpayer under this section is:  $1,000,000 if at least 5, but not more than 25 permanent full-time employees  $2,000,000 if the taxpayer employs more than 25 but not more than 100 permanent full-time employees  $3,000,000 if the taxpayer employs more than 100, but not more than 200 permanent full-time employees  $4,000,000 if the taxpayer employs more than 200 permanent full-time employees  All jobs counted must be at the company’s headquarters in Mississippi

5 © 2016 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC Bills Signed into Law CAN BE USED FOR NEW CONSTRUCTION  House Bill 1381  Provides regulatory framework for Transportation Network Companies such as Uber and Lyft  Companies must be licensed by the Mississippi Insurance Department  Driver information must be provided on company’s website  Disqualifies certain individuals from working as drivers

6 © 2016 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC Bills Signed into Law  Senate Bill 2162  Abolishes Jackson Municipal Airport Authority  Creates Jackson Metropolitan Area Airport Authority  JMAAA to have Nine (9) Member Board  Adjutant General of the State of Mississippi  Executive Director of the Mississippi Development Authority  One appointee of the Mayor of Jackson  One appointee of the Jackson City Council  One appointee of the Madison County Board of Supervisors  One appointee of the Rankin County Board of Supervisors  Two appointees of the Governor (Jackson residents)  One appointee of the Lieutenant Governor (Jackson resident)

7 © 2016 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC Bills Signed into Law  Senate Bill 2162 (cont’d)  Commissioners must meet Minimum Qualification Requirements  at least 10 years' experience as a certified public accountant or charter financial analyst  business owners with at least 10 years' experience in executive management  at least 10 years' experience in the aviation industry  at least 10 years' experience in economic development  attorneys with at least 10 years' experience in commercial law, construction law or aviation law

8 © 2016 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC Bills Signed into Law  Senate Bill 2162 (cont’d)  persons who have been holders of a pilot's license or certification issued by the Federal Aviation Administration for at least 10 years  at least 10 years' experience in dealing with public financing transactions  at least 10 years' experience as a registered professional engineer  Does not change ownership of land or right to receive tax revenues  Note effective until FAA approves transfer of operating certificate for JAN

9 © 2016 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC Bills Signed into Law  Senate Bill 2533  Amends the Mississippi Public Records Act to provide that a public body must disclose what might otherwise be protected confidential or proprietary information provided by a third party if the third-party does not secure a protective order within 21 days  Time is measured from the date the public body gives notice to the third-party  No time limit is imposed for the public body to give notice to the third-party

10 © 2016 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC Bills Signed into Law  Senate Bill 2593  Amends Mississippi Public Records Act to provide that a public body need not disclose the contents of a sealed-proposal if there are on-going negotiations  The public body must, however, disclose the contents within seven (7) working days after issuance of a notice of intent to award a contract  Provides a potential protestor a reasonable period of time – not less than seven (7) working days – after receipt of a copy of a competitor's sealed proposal to protest the award

11 © 2016 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC Bills Signed into Law  Senate Bill 2587  Limits interim appointments and holdovers on municipal boards, commissions and authorities to 180 days  Prohibits expenditure of municipal funds to compensate interim appointments or holdovers past 180 days

12 © 2016 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC D. Jeffrey Wagner Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C. One Eastover Center 100 Vision Drive, Suite 400 Jackson, MS Telephone: (601) Facsimile: (601)