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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Holloway (27th)
HOUSE BILL NO. 1146
AN ACT TO AUTHORIZE THE ISSUANCE OF STATE GENERAL OBLIGATION 1
BONDS TO PROVIDE FUNDS TO ASSIST THE EAST MADISON WATER 2
ASSOCIATION IN PAYING COSTS ASSOCIATED WITH CONSTRUCTION OF A NEW 3
WATER WELL AND RELATED FACILITIES AND INSTALLATION OF AN AUTOMATIC 4
METER READING SYSTEM; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. (1) As used in this act, the following words 7
shall have the meanings ascribed herein unless the context clearly 8
requires otherwise: 9
(a) "State" means the State of Mississippi. 10
(b) "Commission" means the State Bond Commission. 11
(2) The principal of and interest on the bonds authorized 12
under this act shall be payable in the manner provided in this 13
subsection. Such bonds shall bear such date or dates, be in such 14
denomination or denominations, bear interest at such rate or rates 15
(not to exceed the limits set forth in Section 75-17-101, 16
Mississippi Code of 1972), be payable at such place or places 17
within or without the State of Mississippi, shall mature 18
absolutely at such time or times not to exceed twenty-five (25) 19
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years from date of issue, be redeemable before maturity at such 20
time or times and upon such terms, with or without premium, shall 21
bear such registration privileges, and shall be substantially in 22
such form, all as shall be determined by resolution of the 23
commission. 24
(3) The bonds authorized by this act shall be signed by the 25
chairman of the commission, or by his facsimile signature, and the 26
official seal of the commission shall be affixed thereto, attested 27
by the secretary of the commission. The interest coupons, if any, 28
to be attached to such bonds may be executed by the facsimile 29
signatures of such officers. Whenever any such bonds shall have 30
been signed by the officials designated to sign the bonds who were 31
in office at the time of such signing but who may have ceased to 32
be such officers before the sale and delivery of such bonds, or 33
who may not have been in office on the date such bonds may bear, 34
the signatures of such officers upon such bonds and coupons shall 35
nevertheless be valid and sufficient for all purposes and have the 36
same effect as if the person so officially signing such bonds had 37
remained in office until their delivery to the purchaser, or had 38
been in office on the date such bonds may bear. However, 39
notwithstanding anything herein to the contrary, such bonds may be 40
issued as provided in the Registered Bond Act of the State of 41
Mississippi. 42
(4) All bonds and interest coupons issued under the 43
provisions of this act have all the qualities and incidents of 44
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negotiable instruments under the provisions of the Uniform 45
Commercial Code, and in exercising the powers granted by this act, 46
the commission shall not be required to and need not comply with 47
the provisions of the Uniform Commercial Code. 48
(5) The commission shall act as issuing agent for the bonds 49
authorized under this act, prescribe the form of the bonds, 50
determine the appropriate method for sale of the bonds, advertise 51
for and accept bids or negotiate the sale of the bonds, issue and 52
sell the bonds so authorized to be sold, pay all fees and costs 53
incurred in such issuance and sale, and do any and all other 54
things necessary and advisable in connection with the issuance and 55
sale of such bonds. The commission is authorized and empowered to 56
pay the costs that are incident to the sale, issuance and delivery 57
of the bonds authorized under this act from the proceeds derived 58
from the sale of such bonds. The commission may sell such bonds 59
on sealed bids at public sale or may negotiate the sale of the 60
bonds for such price as it may determine to be for the best 61
interest of the State of Mississippi. All interest accruing on 62
such bonds so issued shall be payable semiannually or annually. 63
If such bonds are sold by sealed bids at public sale, notice 64
of the sale shall be published at least one time, not less than 65
ten (10) days before the date of sale, and shall be so published 66
in one or more newspapers published or having a general 67
circulation in the City of Jackson, Mississippi, selected by the 68
commission. 69
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The commission, when issuing any bonds under the authority of 70
this act, may provide that bonds, at the option of the State of 71
Mississippi, may be called in for payment and redemption at the 72
call price named therein and accrued interest on such date or 73
dates named therein. 74
(6) The bonds issued under the provisions of this act are 75
general obligations of the State of Mississippi, and for the 76
payment thereof the full faith and credit of the State of 77
Mississippi is irrevocably pledged. If the funds appropriated by 78
the Legislature are insufficient to pay the principal of and the 79
interest on such bonds as they become due, then the deficiency 80
shall be paid by the State Treasurer from any funds in the State 81
Treasury not otherwise appropriated. All such bonds shall contain 82
recitals on their faces substantially covering the provisions of 83
this subsection. 84
(7) Upon the issuance and sale of bonds under the provisions 85
of this act, the commission shall transfer the proceeds of any 86
such sale or sales to the special fund created in Section 2(1) of 87
this act. The proceeds of such bonds shall be disbursed from the 88
special fund under such restrictions, if any, as may be contained 89
in the resolution providing for the issuance of the bonds. 90
(8) The bonds authorized under this act may be issued 91
without any other proceedings or the happening of any other 92
conditions or things other than those proceedings, conditions and 93
things which are specified or required by this act. Any 94
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resolution providing for the issuance of bonds under the 95
provisions of this act shall become effective immediately upon its 96
adoption by the commission, and any such resolution may be adopted 97
at any regular or special meeting of the commission by a majority 98
of its members. 99
(9) The bonds authorized under the authority of this act may 100
be validated in the Chancery Court of the First Judicial District 101
of Hinds County, Mississippi, in the manner and with the force and 102
effect provided by Chapter 13, Title 31, Mississippi Code of 1972, 103
for the validation of county, municipal, school district and other 104
bonds. The notice to taxpayers required by such statutes shall be 105
published in a newspaper published or having a general circulation 106
in the City of Jackson, Mississippi. 107
(10) Any holder of bonds issued under the provisions of this 108
act or of any of the interest coupons pertaining thereto may, 109
either at law or in equity, by suit, action, mandamus or other 110
proceeding, protect and enforce any and all rights granted under 111
this act, or under such resolution, and may enforce and compel 112
performance of all duties required by this act to be performed, in 113
order to provide for the payment of bonds and interest thereon. 114
(11) All bonds issued under the provisions of this act shall 115
be legal investments for trustees and other fiduciaries, and for 116
savings banks, trust companies and insurance companies organized 117
under the laws of the State of Mississippi, and such bonds shall 118
be legal securities which may be deposited with and shall be 119
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received by all public officers and bodies of this state and all 120
municipalities and political subdivisions for the purpose of 121
securing the deposit of public funds. 122
(12) Bonds issued under the provisions of this act and 123
income therefrom shall be exempt from all taxation in the State of 124
Mississippi. 125
(13) The proceeds of the bonds issued under this act shall 126
be used solely for the purposes herein provided, including the 127
costs incident to the issuance and sale of such bonds. 128
(14) The State Treasurer is authorized, without further 129
process of law, to certify to the Department of Finance and 130
Administration the necessity for warrants, and the Department of 131
Finance and Administration is authorized and directed to issue 132
such warrants, in such amounts as may be necessary to pay when due 133
the principal of, premium, if any, and interest on, or the 134
accreted value of, all bonds issued under this act; and the State 135
Treasurer shall forward the necessary amount to the designated 136
place or places of payment of such bonds in ample time to 137
discharge such bonds, or the interest thereon, on the due dates 138
thereof. As used in this section, the "accreted value" of any 139
bond means, as of any date of computation, an amount equal to the 140
sum of (i) the stated initial value of such bond, plus (ii) the 141
interest accrued thereon from the issue date to the date of 142
computation at the rate, compounded semiannually, that is 143
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necessary to produce the approximate yield to maturity shown for 144
bonds of the same maturity. 145
(15) This act shall be deemed to be full and complete 146
authority for the exercise of the powers granted in this act that 147
relate to the issuance of bonds, but this act shall not be deemed 148
to repeal or to be in derogation of any existing law of this state 149
that relates to the issuance of bonds. 150
SECTION 2. (1) (a) (i) A special fund, to be designated 151
as the "2026 East Madison Water Association System Fund", is 152
created within the State Treasury. The fund shall be maintained 153
by the State Treasurer as a separate and special fund, separate 154
and apart from the General Fund of the state. Unexpended amounts 155
remaining in the fund at the end of a fiscal year shall not lapse 156
into the State General Fund, and any interest earned or investment 157
earnings on amounts in the fund shall be deposited into such fund. 158
(ii) Monies deposited into the fund shall be 159
disbursed, in the discretion of the Department of Finance and 160
Administration, to assist the East Madison Water Association in 161
paying costs associated with construction of a new water well and 162
related facilities and installation of an automatic meter reading 163
system. 164
(b) Amounts deposited into such special fund shall be 165
disbursed to pay the costs of the projects described in paragraph 166
(a) of this subsection. Promptly after the commission has 167
certified, by resolution duly adopted, that the projects described 168
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in paragraph (a) of this subsection shall have been completed, 169
abandoned, or cannot be completed in a timely fashion, any amounts 170
remaining in such special fund shall be applied to pay debt 171
service on the bonds issued under this section, in accordance with 172
the proceedings authorizing the issuance of such bonds and as 173
directed by the commission. 174
(2) (a) The commission, at one time, or from time to time, 175
may declare by resolution the necessity for issuance of general 176
obligation bonds of the State of Mississippi to provide funds for 177
all costs incurred or to be incurred for the purposes described in 178
subsection (1) of this section. Upon the adoption of a resolution 179
by the Department of Finance and Administration, declaring the 180
necessity for the issuance of any part or all of the general 181
obligation bonds authorized by this section, the department shall 182
deliver a certified copy of its resolution or resolutions to the 183
commission. Upon receipt of such resolution, the commission is 184
authorized to proceed under the provisions of Section 1(5) of this 185
act. The total amount of bonds issued under this section shall 186
not exceed Four Hundred Twenty-five Thousand Dollars 187
($425,000.00). No bonds shall be issued under this section after 188
July 1, 2030. 189
(b) Any investment earnings on amounts deposited into 190
the special fund created in subsection (1) of this section shall 191
be used to pay debt service on bonds issued under this section, in 192
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ST: Bonds; authorize issuance to assist East
Madison Water Association with construction of
new well and installation of automatic meter
reading system.
accordance with the proceedings authorizing issuance of such 193
bonds. 194
(3) The provisions of Section 1 of this act shall apply to 195
the issuance of bonds authorized under this section. 196
SECTION 3. This act shall take effect and be in force from 197
and after July 1, 2026. 198