Claiborne County Risk Compensation Fund Act; create.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Harness

HOUSE BILL NO. 1351

AN ACT TO BE KNOWN AS THE "CLAIBORNE COUNTY RISK COMPENSATION 1
FUND ACT"; TO CREATE A SPECIAL FUND IN THE STATE TREASURY FOR THE 2
DEPOSIT OF CONTRIBUTIONS FROM ELECTRICAL UTILITIES BENEFITING FROM 3
THE GRAND GULF NUCLEAR POWER PLANT AND A PERCENTAGE OF REVENUES 4
RECEIVED BY THE DEPARTMENT OF REVENUE FROM NUCLEAR IN LIEU 5
PAYMENTS; TO REQUIRE THE DEPARTMENT OF REVENUE TO ADMINISTER THE 6
FUND; TO PRESCRIBE PERMISSIBLE USES OF MONIES IN THE FUND RELATING 7
TO SAFETY, HEALTHCARE, EDUCATION AND INFRASTRUCTURE IN CLAIBORNE 8
COUNTY; TO CREATE AN ADVISORY COMMITTEE TO OVERSEE THE FUND; TO 9
REQUIRE AN INDEPENDENT AUDIT OF THE FUND EVERY THREE YEARS; TO 10
AMEND SECTION 27-35-309, MISSISSIPPI CODE OF 1972, TO REQUIRE 11
FIFTEEN PERCENT OF REVENUE COLLECTED FROM NUCLEAR IN LIEU TAX 12
CONTRIBUTIONS TO BE PAID INTO THE RISK COMPENSATION FUND FOR 13
CLAIBORNE COUNTY; AND FOR RELATED PURPOSES. 14
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 15
SECTION 1. This act shall be known and may be cited as the 16
"Claiborne County Risk Compensation Fund Act". The purpose of 17
this act is to recognize the unique environmental and safety risks 18
borne by Claiborne County as the host of the Grand Gulf Nuclear 19
Power Plant and to establish a dedicated fund to support safety, 20
healthcare, education and infrastructure projects in the county. 21
SECTION 2. (1) There is created a special fund in the State 22
Treasury to be known as the "Risk Compensation Fund for Claiborne 23
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County". The fund shall be administered by the Department of 24
Revenue. 25
(2) The following monies must be deposited into the Risk 26
Compensation Fund for Claiborne County: 27
(a) Fifteen percent (15%) of the total revenue 28
collected annually under the nuclear in lieu tax contributions 29
required under Section 27-3-309(3); and 30
(b) Stakeholder contributions collected annually from 31
electrical utilities operating or benefiting from the Grand Gulf 32
Nuclear Power Plant, as follows: 33
(i) Two Cents ($0.02) per kilowatt hour of 34
electricity produced by the Grand Gulf Nuclear Power Plant; and 35
(ii) A percentage of the assessed value of the 36
Grand Gulf Nuclear Power Plant, as annually determined by the 37
Department of Revenue. 38
SECTION 3. The proceeds of the Risk Compensation Fund for 39
Claiborne County must be used exclusively for projects and 40
programs that directly benefit Claiborne County. Permissible uses 41
include, but are not limited to: 42
(a) Public safety, including implementation of 43
emergency response plans, procurement of equipment and training 44
for local emergency management agencies; 45
(b) The establishment and enhancement of healthcare 46
facilities and services, including programs to address 47
environmental and radiation-related health risks; 48
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(c) Support for public schools, including workforce 49
development programs and scholarships for Claiborne County 50
residents; and 51
(d) Improvement of roads, bridges, utilities and other 52
public infrastructure impacted by operations of the Grand Gulf 53
Nuclear Power Plant. 54
SECTION 4. (1) The Department of Revenue shall establish a 55
Risk Compensation Fund Advisory Committee to oversee the 56
management and disbursement of monies in the Risk Compensation 57
Fund for Claiborne County. The committee shall be comprised of 58
the following members: 59
(a) The tax assessor/collector of Claiborne County; 60
(b) A representative of the Claiborne County Board of 61
Supervisors; 62
(c) A public health professional appointed by the 63
Mississippi Department of Health; 64
(d) A representative of Entergy Corporation; and 65
(e) A member of the public residing in Claiborne County 66
appointed by the Governor. 67
(2) The duties of the advisory committee are to: 68
(a) Develop an annual budget and spending plan for the 69
Risk Compensation Fund for Claiborne County; 70
(b) Approve or deny funding requests for Claiborne 71
County entities; and 72
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(c) Submit an annual report to the Legislature 73
detailing the fund's revenue and expenditures. 74
SECTION 5. (1) Each recipient of funding from the Risk 75
Compensation Fund for Claiborne County must provide quarterly 76
reports to the Risk Compensation Fund Advisory Committee detailing 77
the manner in which funds were used and the outcomes achieved. 78
(2) The Department of Revenue shall conduct an independent 79
audit of the Risk Compensation Fund for Claiborne County every 80
three (3) years, which audit must be made publicly available on 81
the department's website. 82
SECTION 6. Section 27-35-309, Mississippi Code of 1972, is 83
amended as follows: 84
27-35-309. (1) The Department of Revenue shall, if 85
practicable, on or before the first Monday of June of each year, 86
make out for each person, firm, company or corporation listed in 87
Section 27-35-303, Mississippi Code of 1972, an assessment of the 88
company's property, both real and personal, tangible and 89
intangible. The Department of Revenue shall apportion the 90
assessment of value of each company's property according to the 91
provisions of this article, except as provided in subsection (3) 92
of this section, as follows: 93
(a) When the property of such public service company is 94
located in more than one (1) county in this state, the Department 95
of Revenue shall direct the company to apportion the assessed 96
value between the counties and municipalities and all other taxing 97
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districts therein, in the proportion which the property located 98
therein bears to the entire value of the property of such company 99
as valued by the department, so that to each county, municipality 100
and taxing district therein, there shall be apportioned such part 101
of the entire valuation as will fairly equalize the relative value 102
of the property therein located to the whole value thereof. 103
(b) When the property of such public utility required 104
to be assessed by the provisions of this article is located in 105
more than one (1) state, the assessed value thereof shall be 106
apportioned by the Department of Revenue in such manner as will 107
fairly and equitably determine the principal sum for the value 108
thereof in this state, and after ascertaining such value it shall 109
be apportioned by them as herein provided. 110
The assessment roll shall contain all the property of any 111
such public service company, railroad, person, firm or corporation 112
and the value thereof, and so made that each county, municipality, 113
and taxing district shall receive its just share of taxes 114
proportionately to the amount of property therein situated. 115
(2) (a) The assessment when made shall remain open for 116
twenty (20) days in the Office of the Department of Revenue, and 117
be for such time subject to the objections thereto which may be 118
filed with the Executive Director of the Board of Tax Appeals; but 119
real estate belonging to railroads and which forms no part of the 120
road, and is wholly disconnected from its railroad business, shall 121
not be assessed by the Department of Revenue, but shall be 122
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assessed as other real estate is assessed by the tax assessor of 123
the county where situated. 124
(b) The apportionment of the assessed value as required 125
by this section shall be filed with the Department of Revenue by 126
such public service company on or before the last day of the 127
objection period established in paragraph (a) of this subsection 128
(2). If such company shall fail, refuse or neglect to render the 129
apportionment of assessed value as required by this section, such 130
company shall be subject to the penalties provided for in Section 131
27-35-305. The filing of an objection by such public service 132
company shall not preclude such company from filing the property 133
apportionment as required by this section. 134
(3) Any nuclear generating plant which is located in the 135
state, which is owned or operated by a public utility rendering 136
electric service within the state and not exempt from ad valorem 137
taxation under any other statute and which is not owned or 138
operated by an instrumentality of the federal government shall be 139
exempt from county, municipal and district ad valorem taxes. In 140
lieu of the payment of county, municipal and district ad valorem 141
taxes, such public utility shall pay to the Department of Revenue 142
a sum based on the assessed value of such nuclear generating plant 143
in an amount to be determined and distributed as follows: 144
(a) The Department of Revenue shall annually assign an 145
assessed value to any nuclear generating plant described in this 146
subsection in the same manner as for ad valorem tax purposes by 147
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using accepted industry methods for appraising and assessing 148
public utility property. The assessed value assigned shall be 149
used for the purpose of determining the in-lieu tax due under this 150
section and shall not be included on the ad valorem tax rolls of 151
the situs taxing authority nor be subject to ad valorem taxation 152
by the situs taxing authority nor shall the assessed value 153
assigned be used in determining the debt limit of the situs taxing 154
authority. However, the assessed value so assigned may be used by 155
the situs taxing authority for the purpose of determining salaries 156
of its public officials. 157
(b) On or before February 1, 1987, for the 1986 taxable 158
year and on or before February 1 of each year through the 1989 159
taxable year, such utility shall pay to the Department of Revenue 160
a sum equal to two percent (2%) of the assessed value as 161
ascertained by the Department of Revenue, but such payment shall 162
not be less than Sixteen Million Dollars ($16,000,000.00) for any 163
of the four (4) taxable years; all such payments in excess of 164
Sixteen Million Dollars ($16,000,000.00) for these four (4) 165
taxable years shall be paid into the General Fund of the state. 166
On or before February 1, 1991, for the 1990 taxable year and on or 167
before February 1 of each year thereafter, such utility shall pay 168
to the Department of Revenue a sum equal to two percent (2%) of 169
the assessed value as ascertained by the Department of Revenue, 170
but such payment shall not be less than Twenty Million Dollars 171
($20,000,000.00) for any taxable year for as long as such nuclear 172
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power plant is licensed to operate and is not being permanently 173
decommissioned * * *. Of the total revenue paid to the Department 174
of Revenue during a taxable year, an amount equal to fifteen 175
percent (15%) of the total revenue collected annually must be 176
transferred by the department to the Risk Compensation Fund for 177
Claiborne County created under Section 2 of this act. All such 178
payments in excess of Sixteen Million Dollars ($16,000,000.00) for 179
taxable years 1990 and thereafter shall be paid as follows: 180
(i) An amount of Three Million Forty Thousand 181
Dollars ($3,040,000.00) annually, beginning with fiscal year 1991, 182
shall be transferred by the Department of Revenue to Claiborne 183
County. Such payments may be expended by the Board of Supervisors 184
of Claiborne County for any purpose for which a county is 185
authorized by law to levy an ad valorem tax and shall not be 186
included or considered as proceeds of ad valorem taxes for the 187
purposes of the growth limitation on ad valorem taxes under 188
Sections 27-39-305 and 27-39-321. However, should the Board of 189
Supervisors of Claiborne County withdraw its support of the Grand 190
Gulf Nuclear Station off-site emergency plan or otherwise fail to 191
satisfy its off-site emergency plan commitments as determined by 192
the Mississippi Emergency Management Agency and the Federal 193
Emergency Management Agency, Five Hundred Thousand Dollars 194
($500,000.00) annually of the funds designated for Claiborne 195
County as described by this * * * subparagraph (i) shall be 196
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deposited in the Grand Gulf Disaster Assistance Fund as provided 197
in Section 33-15-51. 198
(ii) An amount of One Hundred Sixty Thousand 199
Dollars ($160,000.00) annually, beginning with fiscal year 1991, 200
shall be transferred by the Department of Revenue to the City of 201
Port Gibson, Mississippi. Such payments may be expended by the 202
Board of Aldermen of the City of Port Gibson for any purpose for 203
which a municipality is authorized by law to levy an ad valorem 204
tax and shall not be included or considered as proceeds of ad 205
valorem taxes for the purposes of the growth limitation on ad 206
valorem taxes under Sections 27-39-305 and 27-39-321. However, 207
should the Board of Aldermen of the City of Port Gibson withdraw 208
its support of the Grand Gulf Nuclear Station off-site emergency 209
plan or otherwise fail to satisfy its off-site emergency plan 210
commitment, as determined by the Mississippi Emergency Management 211
Agency and the Federal Emergency Management Agency, Fifty Thousand 212
Dollars ($50,000.00) annually of the funds designated for the City 213
of Port Gibson as described by this * * * subparagraph (ii) shall 214
be deposited in the Grand Gulf Disaster Assistance Fund as 215
provided in Section 33-15-51. 216
(iii) The remaining balance of the payments in 217
excess of Sixteen Million Dollars ($16,000,000.00) annually, less 218
amounts transferred under subparagraphs (i) and (ii) of this 219
subsection, beginning with fiscal year 1991, shall be allocated in 220
accordance with subsection (3)(f) of this section. 221
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(c) Pursuant to certification by the Attorney General 222
to the State Treasurer and the Department of Revenue that the suit 223
against the State of Mississippi pending on the effective date of 224
House Bill 8, First Extraordinary Session of 1990, [Laws, 1990 Ex 225
Session, Ch. 12, eff June 26, 1990], in the Chancery Court for the 226
First Judicial District of Hinds County, Mississippi, styled 227
Albert Butler et al v. the Mississippi State Tax Commission et al, 228
has been voluntarily dismissed with prejudice as to all plaintiffs 229
at the request of the complainants and that no attorney's fees or 230
court costs have been assessed against the state and each of the 231
parties, including Claiborne County and each municipality and 232
school district located in the county, have signed and delivered 233
to the Attorney General a full and complete release in favor of 234
the State of Mississippi and its elected officials of all claims 235
that have been asserted or may be asserted in the suit pending on 236
the effective date of House Bill 8, First Extraordinary Session of 237
1990, [Laws, 1990 Ex Session, Ch. 12, eff June 26, 1990], in the 238
Chancery Court for the First Judicial District of Hinds County, 239
Mississippi, styled Albert Butler et al v. the Mississippi State 240
Tax Commission et al, and the deposit into the State General Fund 241
of in-lieu payments and interest thereon due the state under 242
subsection (3)(b) of this section but placed in escrow because of 243
the lawsuit described above, the state shall promptly transfer to 244
the Board of Supervisors of Claiborne County out of the State 245
General Fund an amount of Two Million Dollars ($2,000,000.00) 246
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which shall be a one-time distribution to Claiborne County from 247
the state. Such payment may be expended by the Board of 248
Supervisors of Claiborne County for any purposes for which a 249
county is authorized by law to levy an ad valorem tax and shall 250
not be included or considered as proceeds of ad valorem taxes for 251
the purposes of the growth limitation on ad valorem taxes for the 252
1991 fiscal year under Sections 27-39-321 and 27-39-305. 253
(d) After distribution of the one-time payment to 254
Claiborne County as set forth in subsection (3)(c) of this 255
section, the Department of Revenue upon certification that the 256
pending lawsuit as described in subsection (3)(c) of this section 257
has been voluntarily dismissed shall promptly deposit an amount of 258
Five Hundred Thousand Dollars ($500,000.00) into the Grand Gulf 259
Disaster Assistance Trust Fund as provided for in Section 260
33-15-51, which shall be a one-time payment, to be utilized in 261
accordance with the provisions of such section. 262
(e) After distribution of the one-time payment to 263
Claiborne County as set forth in subsection (3)(c) of this section 264
and the payment to the Grand Gulf Disaster Assistance Trust Fund 265
as set forth in subsection (3)(d) of this section, the Department 266
of Revenue upon certification that the pending lawsuit as 267
described in subsection (3)(c) of this section has been 268
voluntarily dismissed shall promptly distribute ten percent (10%) 269
of the remainder of the prior payments remaining in escrow to the 270
General Fund of the state and the balance of the prior payments 271
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remaining in escrow shall be distributed to the counties and 272
municipalities in this state wherein such public utility has 273
rendered electric service in the proportion that the amount of 274
electric energy consumed by the retail customers of such public 275
utility in each county, excluding municipalities therein, and in 276
each municipality, for the next preceding fiscal year bears to the 277
total amount of electric energy consumed by all retail customers 278
of such public utility in the State of Mississippi for the next 279
preceding fiscal year. The payments distributed to the counties 280
and municipalities under this paragraph (e) may be expended by 281
such counties and municipalities for any lawful purpose and shall 282
not be included or considered as proceeds of ad valorem taxes for 283
the purposes of the growth limitation on ad valorem taxes under 284
Sections 27-39-321 and 27-39-305. 285
(f) After distribution of the payments for fiscal year 286
1991 as set forth in Section 19-9-151 and distribution of the 287
payments as provided for in subsection (3)(b) of this section, the 288
Department of Revenue shall distribute ten percent (10%) of the 289
remainder of the payments to the General Fund of the state and the 290
balance to the counties and municipalities in this state wherein 291
such public utility renders electric service in the proportion 292
that the amount of electric energy consumed by the retail 293
customers of such public utility in each county, excluding 294
municipalities therein, and in each municipality for the next 295
preceding fiscal year bears to the total amount of electric energy 296
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ST: Claiborne County Risk Compensation Fund
Act; create.
consumed by all retail customers of such public utility in the 297
State of Mississippi for the next preceding fiscal year. 298
(g) No county, including municipalities therein, shall 299
receive in excess of twenty percent (20%) of the funds distributed 300
under paragraph (f) of this subsection. 301
(h) The revenues received by counties and 302
municipalities under paragraph (f) of this subsection shall not be 303
included or considered as proceeds of ad valorem taxes for the 304
purposes of the growth limitation on ad valorem taxes under 305
Sections 27-39-305 and 27-39-321. 306
SECTION 7. This act shall take effect and be in force from 307
and after July 1, 2026. 308