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To: State Affairs; Ways and
Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representatives Yates, Mansell
HOUSE BILL NO. 1677
(As Sent to Governor)
AN ACT TO CREATE THE METRO JACKSON WATER AUTHORITY ACT; TO 1
DEFINE CERTAIN TERMS RELATING TO THIS ACT; TO ESTABLISH THE METRO 2
JACKSON WATER AUTHORITY; TO PROVIDE FOR THE COMPOSITION AND TERMS 3
OF THE BOARD OF DIRECTORS OF THE METRO JACKSON WATER AUTHORITY; TO 4
REQUIRE THE AUTHORITY TO NEGOTIATE WITH THE CITY OF JACKSON TO 5
ENTER INTO AN AGREEMENT FOR THE TRANSFER OF THE WATER SYSTEM BY 6
LEASE TO THE AUTHORITY; TO PROVIDE FOR THE APPOINTMENT OF A 7
PRESIDENT OF THE AUTHORITY WITHIN A CERTAIN TIME PERIOD; TO 8
PROVIDE POWERS AND DUTIES OF THE AUTHORITY; TO REQUIRE THE 9
PRESIDENT OF THE AUTHORITY TO SUPERVISE ALL ADMINISTRATIVE AND 10
TECHNICAL ACTIVITIES AS PROVIDED IN THIS ACT; TO PROVIDE THAT 11
EMPLOYEES OF THE AUTHORITY SERVE AT THE WILL AND PLEASURE OF THE 12
PRESIDENT; TO REQUIRE THE AUTHORITY TO ENTER INTO CONTRACTS FOR 13
MAJOR PROCUREMENTS ONLY AFTER A COMPETITIVE AND OPEN PROCUREMENT 14
PROCESS; TO REQUIRE THAT MONIES RECEIVED BE DEPOSITED INTO CERTAIN 15
OPERATING ACCOUNTS; TO PROVIDE THAT DIVISION HEADS, OFFICERS AND 16
EMPLOYEES OF THE AUTHORITY ARE PUBLIC SERVANTS; TO AUTHORIZE ANY 17
PUBLIC AGENCY TO ENTER INTO CERTAIN CONTRACTS WITH THE AUTHORITY; 18
TO PROVIDE CERTAIN PROVISIONS RELATING TO PUBLIC CONVENIENCE AND 19
NECESSITY; TO AUTHORIZE THE AUTHORITY TO BORROW MONEY AND ISSUE 20
BONDS AND INTERIM NOTES; TO AUTHORIZE THE AUTHORITY TO PROVIDE FOR 21
THE APPOINTMENT OF A TRUSTEE TO REPRESENT THE REGISTERED OWNERS OF 22
ANY ISSUE OF BONDS IN THE ENFORCEMENT OR PROTECTION OF THEIR 23
RIGHTS UNDER ANY SUCH RESOLUTION, TRUST INDENTURE OR SECURITY 24
INSTRUMENT; TO PROVIDE THAT THE AUTHORITY IS NOT REQUIRED TO PAY 25
ANY TAX OR ASSESSMENT ON ANY PROPERTY OWNED BY THE AUTHORITY OR 26
UPON ANY INCOME THEREFROM; TO PROVIDE THAT THE STATE, COUNTY, 27
MUNICIPALITIES OR PUBLIC AGENCIES WITHIN THE GEOGRAPHIC BOUNDARIES 28
OF THE AUTHORITY ARE AUTHORIZED TO ADVANCE SUCH FUNDS WHICH IN 29
THEIR DISCRETION ARE NECESSARY, OR BORROW SUCH FUNDS BY ISSUANCE 30
OF NOTES, FOR INITIAL CAPITAL CONTRIBUTION, AND TO COVER START-UP 31
COSTS UNTIL SUCH TIMES AS SUFFICIENT BONDS, ASSETS AND REVENUES 32
HAVE BEEN SECURED TO SATISFY THE NEEDS OF THE AUTHORITY FOR ITS 33
MANAGEMENT, OPERATION AND FORMATION; TO AMEND SECTION 21-19-1, 34
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MISSISSIPPI CODE OF 1972, TO AUTHORIZE CERTAIN MUNICIPAL GOVERNING 35
AUTHORITIES TO DEDICATE A PORTION OF THE RATES, FEES AND CHARGES 36
FOR COLLECTING AND DISPOSING OF GARBAGE TO THE PAYMENT OF 37
PRINCIPAL OF AND INTEREST ON BONDS OR NOTES ISSUED BY A PUBLIC 38
AUTHORITY; TO AMEND SECTION 21-19-2, MISSISSIPPI CODE OF 1972, TO 39
AUTHORIZE A MUNICIPAL GOVERNING AUTHORITY TO ENTER INTO CERTAIN 40
CONTRACTS UPON MUTUAL AGREEMENT WITH CERTAIN COUNTIES; TO AMEND 41
SECTION 21-27-57, MISSISSIPPI CODE OF 1972, TO UPDATE LANGUAGE IN 42
THE SECTION; AND FOR RELATED PURPOSES. 43
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 44
SECTION 1. This act shall be known and may be cited as 45
the "Metro Jackson Water Authority Act." 46
SECTION 2. (1) The Mississippi Legislature finds the 47
following: 48
(a) For the benefit of the citizens centrally located 49
in the State of Mississippi, including citizens residing or 50
working in the capital city of the State of Mississippi, it is 51
essential to have access to safe, clean and reliable water and 52
wastewater systems at affordable, regulated rates which are just, 53
reasonable and provide an adequate amount of capital to keep such 54
systems in good repair; 55
(b) The availability of safe, clean and reliable water 56
and wastewater systems has vast impacts on health, schools and 57
academic outcomes, crime and safety, state and local government 58
operations, businesses and economic development, the availability 59
of a workforce, tourism and many other critical areas; 60
(c) The availability of safe, clean and reliable water 61
and wastewater systems requires significant financial resources 62
and human capital to engage in the planning, acquisition, 63
construction, maintenance, coordination and operation required to 64
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deliver transparent and efficient services which meet and exceed 65
federal and state regulations and requirements; 66
(d) On November 29, 2022, the Department of Justice 67
filed a complaint alleging that the City of Jackson has failed to 68
provide drinking water that is reliably compliant with the Safe 69
Drinking Water Act to citizens within the boundaries of the water 70
system. The Department of Justice simultaneously filed a proposal 71
which would appoint an interim third-party manager to stabilize 72
the City of Jackson's public drinking water system and build 73
confidence in the water system's ability to supply safe, clean and 74
reliable water to citizens within the boundaries of the water 75
system. The U.S. District Court for the Southern District of 76
Mississippi issued an interim stipulated order that appointed an 77
interim third-party manager to oversee and operate the water 78
system on November 29, 2022; 79
(e) On or about September 30, 2023, the U.S. District 80
Court for the Southern District of Mississippi issued a stipulated 81
order that brought the City of Jackson's sewer and wastewater 82
systems into the interim third-party managership; 83
(f) The November 29, 2022, order appointing the interim 84
third-party manager for the public drinking water system does not 85
have a termination date and ends only when final judgment is 86
entered by the court; 87
(g) The September 30, 2023, order appointing the 88
interim third-party manager for the sewer and wastewater system 89
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terminates on September 30, 2027, unless such order is earlier 90
terminated or extended by the court; 91
(h) Before the termination of the orders by the court, 92
the system must be stable, the financial plan sustainable, and the 93
transition plan approved in order to transition the system to 94
post-interim third-party managership operations; 95
(i) The creation and organization of a structure for 96
future governance requires legislation for it to continue in 97
perpetuity beyond the eventual end of the interim third-party 98
manager's work and related federal court orders; and 99
(j) The creation and organization of a structure for 100
future governance prior to the date of the conclusion of the 101
interim third-party manager's work will allow for an orderly 102
transition to ensure minimal disruption in water and wastewater 103
service. 104
(2) Therefore, it is the intent of the Mississippi 105
Legislature to: 106
(a) Provide the Metro Jackson Water Authority the 107
ability to lease the existing water and wastewater assets from the 108
city and, upon lease of such assets and termination of the interim 109
third-party managership by the court, or an earlier date as 110
ordered by the court, the water and wastewater assets shall be 111
under the authority's management and control to ensure all 112
citizens have access to safe, clean and reliable water and 113
wastewater systems at affordable, just and reasonable regulated 114
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rates and to provide an adequate amount of capital to keep such 115
systems in good repair; 116
(b) Authorize the Local Governments and Rural Water 117
Systems Improvement Board (LGRWSI), as created in Section 41-3-16, 118
while remaining compliant with all applicable provisions of the 119
federal Safe Drinking Water Act, to loan to the authority any 120
funds required in connection with the authority's acquisition of 121
the leasehold interest in water assets as provided in this 122
subsection (2) at an interest rate of zero percent (0%) with a 123
maximum allowable term per federal Drinking Water State Revolving 124
Fund regulations and applying the maximum principal forgiveness 125
available and allowable per the LGRWSI Board's intended use plan; 126
(c) Authorize the Department of Environmental Quality 127
to loan to the authority any funds requested in connection with 128
the authority's acquisition of the leasehold interest in 129
wastewater assets as authorized in this subsection (2) at an 130
interest rate of zero percent (0%) with a thirty-year term 131
applying the maximum principal forgiveness available; 132
(d) Authorize the authority, upon its establishment 133
under this act, to issue bonds to refinance the system debts 134
existing as of July 1, 2026, which bonds may be secured by and 135
payable from one or more sources of nonsystem revenues made 136
available to the authority for such purpose, provided that such 137
bonds shall never constitute a debt, liability or loan of the 138
credit of the state or any political subdivision thereof under the 139
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Mississippi Constitution and laws of the state or a pledge of the 140
faith, credit or taxing power of the state or any political 141
subdivision thereof; and 142
(e) Authorize the authority and each of the Department 143
of Health, the Department of Environmental Quality, the City of 144
Jackson and other municipalities or governmental entities within 145
the service area of the authority, and any other federal, state or 146
local entity to partner with each other in taking any action 147
necessary under this act to ensure all citizens have access to 148
safe, clean and reliable water and wastewater systems, with the 149
understanding that federal and state agencies are solely 150
responsible for regulating, but not operating, the authority. 151
SECTION 3. As used in this act, the following words 152
and phrases have the meanings provided in this section, unless the 153
context clearly indicates otherwise: 154
(a) "Authority" means the public benefit corporation 155
created by Section 4 of this act, known as the Metro Jackson Water 156
Authority. 157
(b) "Board" means the Board of Directors of the Metro 158
Jackson Water Authority. 159
(c) "Bonds" means bonds, notes and other indebtedness 160
issued by the authority pursuant to this act and the provisions of 161
this act relating to bonds and bondholders shall apply with equal 162
force and effect to notes and noteholders, respectively, unless 163
the context otherwise clearly requires. 164
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(d) "City" means the City of Jackson. 165
(e) "Court" means the U.S. District Court for the 166
Southern District of Mississippi. 167
(f) "Fiscal year" means the period of time beginning on 168
July 1 of each year and ending on June 30 of each year. 169
(g) "ITPM" means the interim third-party manager for 170
the systems initially appointed by the court on November 29, 2022, 171
to oversee and operate the systems. 172
(h) "Major procurement" means the procurement of any 173
good or service in excess of One Million Dollars ($1,000,000.00). 174
(i) "Mayor" means the Mayor of the City of Jackson. 175
(j) "Person" means any person, firm, partnership, 176
association, limited liability company or corporation organized or 177
existing under the laws of the state or any other state. 178
(k) "Project" means the construction, development or 179
acquisition by the authority of any infrastructure for water, 180
wastewater and stormwater systems or services and includes the 181
upgrading or repair of existing systems. 182
(l) "Public agency" means any county, municipality, 183
state board or utility authority owning or operating properties, 184
districts created pursuant to the general laws or local and 185
private laws of the state, or any other political subdivision of 186
the state possessing the power to own and operate waterworks, 187
water supply systems, sewerage systems, sewage treatment systems 188
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or other facilities or systems for the collection, transportation 189
and treatment of water, wastewater and stormwater. 190
(m) "State" means the State of Mississippi. 191
(n) "State agency" means any state office, department, 192
board, commission, bureau or division, or other agency or 193
instrumentality of the state. 194
(o) "Stormwater" means any flow occurring during or 195
following any form of natural precipitation and resulting from 196
that precipitation. 197
(p) "System" or "systems" means any plants, structures, 198
facilities or other real or personal property used or useful in 199
the generation, storage, transportation or supply of water, and 200
the collection, transportation, treatment or disposal of 201
wastewater and stormwater, including, but not limited to, tanks, 202
pipes, trunk lines, mains, sewers, conduits, pipelines, pumping 203
and ventilating stations, plants, works, connections and any other 204
real or personal property and rights therein necessary, useful or 205
convenient for the purposes of the authority. 206
(q) "Wastewater" means water being disposed of by any 207
person and which is contaminated with waste or sewage, including 208
industrial, municipal, and any other wastewater or stormwater that 209
may cause impairment of the quality of waters in the state. 210
(r) "Water" means potable water from either surface 211
water or groundwater sources. 212
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SECTION 4. (1) There is hereby created and established a 213
corporation known as the Metro Jackson Water Authority for public 214
purposes and charged with the duties and having the powers 215
provided in this act. The authority shall be a body corporate and 216
politic constituting a public benefit corporation. The authority 217
will be composed of geographic areas receiving water and 218
wastewater services from the city as of January 1, 2026, for the 219
planning, acquisition, construction, maintenance, operation and 220
coordination of water and wastewater systems in order to ensure 221
the delivery of water and wastewater services to citizens. Such 222
authority is created solely to accomplish the purposes under this 223
act, and the exercise by the authority of the powers conferred by 224
this act shall be deemed and held to be the performance of an 225
essential public function promoting the health, welfare and 226
prosperity of the general public. It is the intent of the 227
Legislature that the authority shall be accountable to ratepayers 228
within the systems through the audits, reports and disclosures 229
required by this act. 230
(2) The existence of the public benefit corporation, which 231
shall be domiciled in the state, shall begin upon the appointment 232
of a majority of its board as provided in Section 5 of this act. 233
(3) The transfer by lease of the water and wastewater system 234
to the authority from the city shall be accomplished as provided 235
in Section 6 of this act. 236
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(4) The authority shall assume management and control over 237
the water and wastewater systems on the date of termination of the 238
interim third-party managership by the court, or with respect to 239
any specific functions on an earlier date as ordered by the court. 240
If the termination date is not the same for all systems or 241
functions, the authority shall assume management and control over 242
the system or functions for which the interim third-party 243
managership is terminated on the termination date for that system 244
or function. 245
(5) In the event of any action or matter against the 246
authority, the Chief Justice of the Mississippi Supreme Court 247
shall select an appropriate circuit or chancery court, which shall 248
have exclusive jurisdiction over the matter. Solely for purposes 249
of court costs, the authority shall be deemed to constitute a 250
private corporation. 251
(6) All funds provided by the federal government in H.R. 252
2617, the Consolidated Appropriations Act of 2023, and any other 253
funds provided by the state or federal government in response to 254
the water crisis detailed by the court in Case No. 3:22-cv-00686, 255
United States v. City of Jackson, shall be spent according to the 256
direction of the ITPM until the authority assumes management and 257
control of the water and wastewater systems or certain functions 258
thereof and in accordance with federal law. 259
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SECTION 5. (1) The affairs of the authority shall be 260
administered by the board. The board shall be composed of nine 261
(9) members as follows: 262
(a) Three member(s) at large to be appointed by the 263
Mayor of the City of Jackson and confirmed by the City Council of 264
the City of Jackson; 265
(b) Two (2) member(s) at large to be appointed by the 266
Governor; 267
(c) One (1) member at large to be appointed by the 268
Lieutenant Governor; 269
(d) One (1) member at large appointed by the Governor 270
in consultation with the Mayor of the City of Jackson; 271
(e) One (1) member at large to be appointed by the 272
Mayor of the City of Byram and confirmed by the Board of Alderman 273
of the City of Byram; and 274
(f) One (1) member at large to be appointed by the 275
Mayor of the City of Ridgeland and confirmed by the Board of 276
Alderman of the City of Ridgeland. 277
All initial public members shall be appointed by May 1, 2026. 278
The Mayor of the City of Jackson shall be an ex officio 279
non-voting member of the board, in addition to the three (3) 280
appointees as provided in paragraph (a) of this subsection, and 281
may designate a person or persons to represent him or her at all 282
meetings of the board from which he or she may be absent. 283
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For public members subject to the appointment process, 284
appointing authorities shall attempt to ensure that all portions 285
of society and its diversity are represented in members of the 286
authority. All appointed members must be residents of the state 287
and must have significant, demonstrated experience in at least one 288
(1) of the following areas: business management; fiscal affairs; 289
public finance; public health; engineering; or public utilities. 290
No voting members of the board shall be an elected official, and 291
no current or former federal, state or local elected officials may 292
be appointed. 293
(2) (a) The Governor shall appoint one (1) member for an 294
initial term of four (4) years, and one (1) member for an initial 295
term of three (3) years. 296
(b) The Lieutenant Governor shall appoint one (1) 297
member for an initial term of four (4) years. 298
(3) Except as provided in subsection (2) of this section, 299
appointments shall be for a term of four (4) years. Each member 300
shall serve at the will and pleasure of his or her appointing 301
authority and hold office until his successor has been appointed 302
and qualified. 303
Vacancies occurring otherwise than by expiration of the term 304
of office, shall be filled by appointment by the appropriate 305
appointing authority for the length of the unexpired term only. 306
Any member of the authority shall be eligible for reappointment 307
for a maximum of two (2) full terms. Each member of the authority 308
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shall, before entering upon his duty, take an oath of office to 309
administer the duties of his office faithfully and impartially, 310
and a record of such oath shall be filed in the Office of the 311
Secretary of State. 312
The authority shall annually elect from its membership a 313
chairman and vice chairman who shall be eligible for reelection 314
for up to four (4) consecutive terms. The authority shall also 315
elect or appoint, and prescribe the duties of, such other 316
officers, who need not be members, as the authority deems 317
necessary or advisable, and the authority shall fix the 318
compensation of such officers. The authority may delegate to one 319
or more of its members, officers, employees or agents such powers 320
and duties as it may deem proper, not inconsistent with this act 321
or other provisions of law. 322
(4) Except as otherwise specified in this act, the powers of 323
the board shall be vested in and exercised by a majority of the 324
whole number of the members thereof. The members of the board 325
shall serve without salary but shall be entitled to receive, upon 326
authorization of the board, per diem pay as provided in Section 327
25-3-69, plus travel and necessary expenses, including mileage, as 328
provided in Section 25-3-41, incurred while in the performance of 329
his or her duties as a board member. Expenses shall be paid from 330
the available funds of the authority after the authority assumes 331
management and control of the water and wastewater systems as 332
provided in this act. Subject to appropriations, until the date 333
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the authority assumes management and control of the water and 334
wastewater systems as provided in this act, expenses may be paid 335
by the state. 336
(5) All meetings of the board shall be subject to the Open 337
Meetings Act in Section 25-41-1 et seq. The chairman or a 338
majority of members of the board may convene the board for a 339
meeting. 340
(6) Except as otherwise provided by law, all records of the 341
authority shall be deemed public records and subject to public 342
inspection as provided by Section 25-61-1 et seq. 343
(7) The board may by majority vote excuse the absence of any 344
board member. If any board member is absent for two (2) board 345
meetings in a twelve-month period without such absences being 346
excused by the board, his or her membership on the board shall be 347
terminated as a function of law, without any action by the board, 348
and the removed board member shall be ineligible for reappointment 349
to the board. The original appointing authority shall retain the 350
right to appoint a new board member to replace the removed board 351
member. 352
(8) No current or former employee of the authority shall be 353
a board member. 354
(9) Until the authority assumes management and control of 355
the water and wastewater systems, the board shall coordinate with 356
the ITPM in order to provide the best opportunity for minimal 357
disruption in service and maximum ease of transition after the 358
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ITPM has concluded his work in overseeing and operating the water 359
system. 360
(10) A two-thirds (2/3) vote of the total membership of the 361
board is required for any rate increase or expenditure in excess 362
of Five Million Dollars ($5,000,000.00). 363
SECTION 6. (1) Promptly following the appointment of a 364
majority of its board as provided in Section 5 of this act, the 365
authority shall commence negotiations with the city to enter into 366
an agreement with the authority for the transfer by lease to the 367
authority, for use in the exercise of its corporate powers and 368
purposes, the water system or wastewater system, or both, of the 369
city, as the same shall then be owned by the city. Such agreement 370
shall be for such term and upon such conditions as may be deemed 371
desirable by the city and the authority, provided that the term of 372
the agreement shall continue until at least the date on which all 373
the authority's bonds are paid in full or provision therefor shall 374
have been made in accordance with the resolution, trust indenture 375
or other security instrument under which the bonds were issued. 376
To the extent not inconsistent with this act, such agreement may 377
impose such limitations or conditions as may be agreed upon by and 378
between the city and authority with respect to the power of the 379
authority to sell or otherwise dispose of any property acquired by 380
the authority pursuant to such agreement, and may provide for or 381
authorize the authority to surrender to the city, any property no 382
longer required by the authority for its public purposes. 383
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Notwithstanding the provisions of any general, special or 384
local law or charter to the contrary, any action taken by the city 385
pursuant to this subsection shall not be subject to a permissive 386
or mandatory referendum. 387
(2) Such agreement shall set forth the liabilities of the 388
city which it is contemplated are to be paid by the authority from 389
monies available to it; provided, however, that such agreement 390
does not require the authority to assume the liabilities of the 391
city; and provided further, notwithstanding the foregoing, that 392
the city shall continue to be the record owner for real estate tax 393
purposes of any facilities located outside of its municipal 394
boundaries. 395
(3) Such agreement may provide for the payment by the city 396
to the authority from any funds of the city, of such amount as may 397
be determined appropriate for use by the authority. 398
(4) The city and the authority are hereby authorized and 399
empowered to make or enter into any contracts, agreements, deeds, 400
leases, conveyances or other instruments as may be necessary or 401
appropriate to effectuate the purposes of this act, and they shall 402
have power and authority to do all things incidental, desirable or 403
necessary to implement the provisions of this act. 404
(5) The authority shall take possession of the water system 405
or wastewater system, or both, of the city upon its filing of a 406
copy of the instruments or documents effectuating the transfer 407
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authorized by this section with the clerk of the city and the 408
Secretary of State. 409
(6) Any application filed or proceeding commenced under this 410
act in relation to the water system or wastewater system, or both, 411
that is transferred to the authority pending with the Mississippi 412
State Department of Health, the Mississippi Department of 413
Environmental Quality or any other state agency or with the United 414
States Environmental Protection Agency or any other federal agency 415
or instrumentality shall inure to and for the benefit of the 416
authority and be binding upon the authority to the same extent and 417
in the same manner as if the authority had been a party to such 418
application or proceeding from its inception, and the authority 419
shall be deemed a party thereto to the extent not prohibited by 420
any federal law. Any license, approval, permit or decision under 421
this act hereafter issued or granted pursuant to or as a result of 422
any such application or proceeding shall inure to the benefit of 423
and be binding upon the authority and shall be assigned and 424
transferred by the city to the authority unless such assignment 425
and transfer is prohibited by federal law. 426
(7) The rules and regulations of the authority may provide 427
for the discontinuance or disconnection of the supply of water or 428
the provision of wastewater service, or both, as the case may be, 429
by the authority for nonpayment of fees, rates, rents or other 430
charges imposed by the authority. A copy of all bylaws, rules and 431
regulations and amendments thereto, duly certified by the 432
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secretary of the authority, shall be filed in the offices of the 433
clerk of the city and the Secretary of State within three (3) 434
months. Violation of such rules and regulations shall subject the 435
offending party to a civil penalty in an action brought by the 436
authority, not to exceed One Hundred Dollars ($100.00) for each 437
day the violation continues. The Hinds County Circuit Court shall 438
have jurisdiction to hear and determine, subject to the provisions 439
of the Civil Practice Law and rules, any violation of such rules 440
and regulations. 441
(8) The board may retain or employ counsel, auditors, 442
engineers or other private consultants for rendering professional 443
or technical services and advice in connection with the 444
negotiation of the agreement of lease under this section. The 445
state shall pay the reasonable cost and expense for such 446
professional services on a bimonthly basis, subject to 447
appropriations. 448
SECTION 7. (1) The authority shall consult with the court 449
to appoint a president within thirty (30) days following the 450
appointment of a majority of its board as provided in Section 5 of 451
this act, who shall serve at the will and pleasure of the board. 452
If the authority does not have management and control of the water 453
and wastewater systems by the date of the appointment of a 454
president, the state may pay the salary of the president on a 455
bimonthly basis, subject to appropriations. The president shall 456
serve as deputy to the ITPM until the court enters final 457
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judgement, at which time the president shall manage the daily 458
affairs of the authority and shall have such powers and duties as 459
specified by this act, by the board, and by any rules or 460
regulations adopted by the board. The president shall not be a 461
member of the board and shall serve at the will and pleasure of 462
the board. 463
(2) Until the authority assumes management and control of 464
the water and wastewater systems, the president shall coordinate 465
with the ITPM in order to provide the best opportunity for minimal 466
disruption in service and maximum ease of transition after the 467
ITPM has concluded its work in overseeing and operating the water 468
system or wastewater system or the respective functions with 469
respect thereto. 470
(3) The president shall employ such personnel as he or she 471
deems necessary. All personnel shall serve at the will and 472
pleasure of the president. 473
(4) The board shall set the salary of the president at such 474
level as necessary to recruit and retain a qualified professional 475
with the expertise necessary in a public utility. The board may 476
authorize whatsoever incentive compensation program for the 477
president and authority staff as it deems necessary and proper. 478
The authority shall be exempt from the provisions of Section 479
25-3-39. 480
SECTION 8. (1) The authority shall have the power, duty and 481
responsibility to exercise general supervision over the design, 482
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construction, operation and maintenance of water and wastewater 483
systems. 484
(2) The authority shall adopt rules and regulations 485
regarding the design, construction or installation, operation and 486
maintenance of water and wastewater systems. 487
(3) The authority shall adopt rules and regulations 488
regarding the use of decentralized treatment systems, individual 489
on-site wastewater treatment systems and centralized wastewater 490
treatment systems. 491
(4) The authority shall adopt rules establishing performance 492
standards for water and wastewater systems and the operation and 493
maintenance of such systems. Such rules and regulations shall 494
include the implementation of a standard application form for the 495
installation, operation and maintenance of systems; application 496
review; approval or denial procedures for any proposed system; 497
inspection, monitoring and reporting guidelines; and enforcement 498
procedures. 499
(5) (a) Before a building or development that requires the 500
installation of a water or wastewater system is constructed, such 501
system plan must be submitted to the authority for certification 502
that the system complies with the authority's requirements. 503
(b) Before approving or renewing a permit for a water 504
or wastewater system within the authority, the state agency must 505
require certification that such system complies with the 506
authority's requirements. 507
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(6) Any system of a municipality, public agency or other 508
person that contracts with the authority shall be subject to the 509
terms of that contract and this act. 510
(7) Notwithstanding the provisions of Section 51-39-1 et 511
seq., the authority may adopt rules and regulations and to 512
construct, maintain, lease and operate facilities for the control 513
of stormwater quality and quantity. In addition, the provisions 514
of Section 51-33-1 et seq., relating to drainage districts and 515
flood control districts, do not apply to the authority. 516
(8) The authority may control and operate the local retail 517
water or wastewater services and may provide or be responsible for 518
direct servicing of those services to residences, businesses and 519
individuals; however, the authority shall not provide the same 520
service in an area provided by a public utility or person holding 521
a certificate of public convenience and necessity issued by the 522
Mississippi Public Service Commission for the provision of such 523
services in the certificated area. 524
(9) The authority shall enter into contracts for major 525
procurements after a bidding process. The authority may adopt 526
administrative rules and regulations pursuant to the provisions of 527
this act providing for special procedures whereby the authority 528
may make any class of procurement. 529
(10) In its bidding processes, the authority may do its own 530
bidding and procurement or may utilize the services of the 531
Department of Finance and Administration, the Department of 532
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Information Technology Services or other state agencies as 533
appropriate and necessary. 534
(11) In the City of Ridgeland, which is served by only the 535
wastewater system as of January 1, 2026, the authority shall have 536
oversight or control of only wastewater service provided to 537
ratepayers. To maintain consistency with the agreement in place 538
with the city prior to the existence of the authority, the City of 539
Ridgeland shall have control over its rate structure, with the 540
City of Ridgeland compensating the authority for its prorated 541
share of wastewater conveyance, treatment, capital improvements 542
and debt service. 543
SECTION 9. (1) The authority, in addition to any other 544
powers granted under this act and any other provision of law, is 545
authorized: 546
(a) To acquire, construct, improve, enlarge, extend, 547
repair, operate and maintain any of its systems used for the 548
collection, transportation, treatment and disposal of water and 549
wastewater; 550
(b) To make contracts with any person in furtherance 551
thereof and to make contracts with any person for the purpose of 552
collection, transportation, treatment or disposal of water and 553
wastewater on behalf of such person; 554
(c) To make contracts with any person to design and 555
construct any water and wastewater systems or facilities, and 556
thereafter to purchase, lease or sell any such system or systems 557
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by installments over such terms as may be deemed desirable, 558
reasonable and necessary, or otherwise; 559
(d) To enter into operating agreements with any person, 560
for such terms and upon such conditions as may be deemed desirable 561
for the operation of any water and wastewater systems, and to 562
lease to or from any person, for such term and upon such 563
conditions as may be deemed desirable, any water and wastewater 564
collection, transportation, treatment or other facilities or 565
systems. Any such contract may contain provisions requiring any 566
public agency or other person to regulate the quality and strength 567
of materials to be handled by the respective system or systems and 568
also may provide that the authority shall have the right to use 569
any streets, alleys and public ways and places within the 570
jurisdiction of a public agency or other person during the term of 571
the contract; 572
(e) To enter into contracts with any person or public 573
agency, including, but not limited to, contracts authorized by 574
this act, in furtherance of any of the purposes authorized under 575
this act upon such consideration as the board and such person may 576
agree. Notwithstanding any provision of law to the contrary, such 577
contract may extend over any period of time, may be upon such 578
terms and for such consideration, nominal or otherwise, as the 579
parties thereto shall agree, and may provide that it shall 580
continue in effect until bonds specified therein, refunding bonds 581
issued in lieu of such bonds, and all other obligations specified 582
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therein are paid or terminated. Any such contract shall be 583
binding upon the parties thereto according to its terms; 584
(f) To sue and be sued, in its own name, and to enjoy 585
all of the protections, immunities and benefits provided by the 586
Mississippi Tort Claims Act, Section 11-46-1 et seq., as it may be 587
amended or supplemented from time to time; 588
(g) To maintain office space at such place or places 589
within the authority's boundaries as it may determine; 590
(h) To invest money of the authority, including 591
proceeds from the sale of any bonds subject to any agreements with 592
bondholders, on such terms and in such manner as the authority 593
deems proper; 594
(i) To pay or refinance any outstanding city bonds 595
relating to the water and wastewater systems under their existing 596
terms; 597
(j) To require the necessary relocation or rerouting of 598
roads and highways, railroad, telephone and telegraph lines, and 599
properties, electric power lines, gas pipelines and related 600
facilities, or to require the anchoring or other protection of any 601
of these, provided fair compensation is first paid to the owners 602
or an agreement is made with such owners regarding the payment of 603
the cost of such relocation, and to acquire easements or 604
rights-of-way for such relocation or rerouting and to convey the 605
same to the owners of the property being relocated or rerouted in 606
connection with the purposes of this act. This provision shall be 607
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in accordance with Mississippi Constitution Article 17A and 608
Section 11-27-30; 609
(k) To acquire, construct, improve or modify, or to 610
operate or cause to be operated and maintained, either as owner of 611
all or of any part in common with others, any water or wastewater 612
system within the authority's service area. The authority may pay 613
all or part of the cost of any system from any contribution by 614
persons, firms, public agencies or corporations; 615
(l) To receive, accept and use all funds, public or 616
private, and pay all costs of the development, implementation and 617
maintenance as determined necessary for any project; 618
(m) To acquire, in its own name, by purchase on any 619
terms and conditions and in any manner as it may deem proper, 620
property for public use, or by gift, grant, lease, or otherwise, 621
real property or easements therein, franchises and personal 622
property necessary or convenient for its corporate purposes. This 623
provision shall be in accordance with Mississippi Constitution 624
Article 17A and Section 11-27-30; 625
(n) To acquire insurance as available for the systems, 626
facilities, buildings, treatment plants and all property, real or 627
personal, to insure against all risks; 628
(o) To use any property and rent or lease any property 629
to or from others, including public agencies, or make contracts 630
for the use of the property. The authority may sell, lease, 631
exchange, transfer, assign, pledge, mortgage or grant a security 632
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interest for any property. The powers to acquire, use and dispose 633
of property as set forth in this paragraph shall include the power 634
to acquire, use and dispose of any interest in that property, 635
whether divided or undivided. Title to any property of the 636
authority shall be held by the authority exclusively for the 637
benefit of the public; 638
(p) To apply, contract for, accept, receive and 639
administer gifts, grants, appropriations and donations of money, 640
materials and property of any kind, including loans and grants 641
from the United States, the state, a unit of local government, or 642
any agency, department, district or instrumentality of any of the 643
foregoing, upon any terms and conditions as the United States, the 644
state, a unit of local government, or any agency, department, 645
district or instrumentality shall impose. The authority may 646
administer trusts. The authority may sell, lease, transfer, 647
convey, appropriate and pledge any and all of its property and 648
assets; 649
(q) To make and enforce, and from time to time, amend 650
and repeal, bylaws, rules, ordinances and regulations for the 651
management of its business and affairs and for the construction, 652
use, maintenance and operation of any of the systems under its 653
management and control; 654
(r) To employ and terminate staff and other personnel, 655
including attorneys, auditors, engineers and consultants for 656
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rendering professional or technical services and advice, as may be 657
necessary to the functioning of the authority; 658
(s) To establish, fix, charge and enforce the payment 659
of all rates, fees, assessments and any other charges for services 660
furnished by the water system, wastewater system, or both, and 661
other facilities within the control of the authority, as the case 662
may be, and from time to time, to adjust such rates, fees, 663
assessments and any other charges for the purpose of ensuring that 664
the revenues therefrom will be sufficient at all times: 665
(i) To pay the expenses of operating and 666
maintaining the systems and other facilities, including all 667
obligations under any contract or bond resolution with respect 668
thereto; 669
(ii) For the establishment and maintenance of a 670
bond retirement and interest payment fund sufficient to provide 671
for the payment of the principal of and interest on any bonds or 672
other obligations payable therefrom as the same become due and 673
payable, including reasonable reserves for the payment of such 674
principal and interest; 675
(iii) For the establishment and maintenance of a 676
reasonable reserve for future additions, extensions, and 677
improvements to such systems or any combination thereof, as the 678
case may be; and 679
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(iv) To comply with all covenants of the authority 680
under the terms of any resolution, trust indenture or other 681
security instrument with respect to its bonds. 682
Except as otherwise permitted by law, such rates, fees, 683
assessments and other charges shall be equal to those levied on 684
similarly situated customers throughout the authority's service 685
area. For purposes of Section 77-3-33, the rates charged by the 686
authority shall be just and reasonable if they are adequate to 687
provide safe and reliable water and wastewater service to its 688
customers, including providing an adequate amount of capital for 689
the authority to perform such repairs, upgrades and improvements 690
as it deems necessary on an ongoing basis; 691
(t) To adopt rules and regulations necessary to 692
accomplish the purposes of the authority and to assure the payment 693
of each participating person or public agency of its proportionate 694
share of the costs for use of any of the systems and facilities of 695
the authority and for the authority's proportionate share of the 696
costs of the board; 697
(u) To enter on public or private lands, waters or 698
premises for the purpose of making surveys, borings or soundings, 699
or conducting tests, examinations or inspections for the purposes 700
of the authority, subject to responsibility for any damage done to 701
property entered; 702
(v) To accept industrial wastewater from within the 703
boundaries of the authority for treatment and to require the 704
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pretreatment of the same when, in the opinion of the authority, 705
such pretreatment is necessary; 706
(w) To control and operate local retail water and 707
wastewater services, and to provide or be responsible for direct 708
servicing of those services to residences, businesses and 709
individuals; however, the authority shall not provide the same 710
services in an area provided by a public utility or person holding 711
a certificate of public convenience and necessity issued by the 712
Mississippi Public Service Commission for the provision of such 713
services in the certificated area; 714
(x) To assume control and administer, within the 715
authority's jurisdiction, any water or wastewater system or 716
systems by agreement or contract with any person if the person 717
providing such services requests to be relieved of that 718
responsibility; 719
(y) To acquire property designated by plan to 720
sufficiently accommodate the location of water or wastewater 721
systems and such requirements related directly thereto pursuant to 722
the provisions of Chapter 27, Title 11, Mississippi Code of 1972. 723
The authority may acquire property necessary for any system and 724
the exercise of the powers, rights and duties conferred upon the 725
authority by this act. No person owning the drilling rights or 726
the right to share in production shall be prevented from 727
exploring, developing or producing oil or gas with necessary 728
rights-of-way for ingress and egress, pipelines and other means of 729
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transporting such interests on any lands or interest of the 730
authority held or used for the purposes of this act, but any such 731
activities shall be subject to reasonable regulations by the board 732
that adequately protect the systems or projects of the authority. 733
This provision shall be in accordance with Mississippi 734
Constitution Article 17A and Section 11-27-30; 735
(z) To use any legally available funds to acquire, 736
rebuild, operate and maintain any existing water or wastewater 737
systems owned or operated by any person; 738
(aa) To refuse to receive water or wastewater from any 739
public agency or person, except with regard to municipalities or 740
other areas within the service territory of the systems as of 741
January 1, 2026; 742
(bb) So long as any indebtedness on the systems of the 743
authority remains outstanding, to require a member public agency, 744
or other person, dispose of all water and wastewater, as the case 745
may be, within the boundaries of the authority through the 746
appropriate treatment system to the extent available, but no 747
public agency shall be precluded from constructing, operating and 748
maintaining its own such system unless provision has been made for 749
full payment, by escrow or otherwise, of the public agency's 750
proportionate share of the authority's bonds and other 751
indebtedness outstanding as of the expected date of operation of 752
the public agency's system, pursuant to the terms of the 753
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authority's bonds or resolution, trust indenture or other security 754
instrument securing such bonds or indebtedness; 755
(cc) To adopt a seal and a symbol, to hold patents, 756
copyrights, trademarks and service marks, and to enforce its 757
rights with respect thereto; 758
(dd) To write off revenues deemed uncollectible that 759
were billed to customers prior to November 29, 2022, and, as a 760
regular accounting practice of the authority, to further write off 761
revenues deemed uncollectible after the third year of collection 762
efforts. Nothing herein permits the provision of services without 763
charging applicable rates in effect at the time services are 764
provided and requiring payment of such services; and 765
(ee) To do all things necessary, convenient or 766
desirable to carry out its purposes and for the exercise of the 767
powers granted in this act. 768
(3) The authority shall: 769
(a) Submit annual reports to the Governor, Lieutenant 770
Governor, Speaker of the House of Representatives, State Auditor, 771
Joint Legislative Committee on Performance Evaluation and 772
Expenditure Review, the mayor and the governing authorities of any 773
municipality whose citizens are within the authority's boundaries 774
regarding the water quality and financial conditions of such 775
system or systems. Such report shall contain a schedule of 776
currently planned repairs, upgrades or improvements planned by the 777
authority; 778
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(b) Immediately submit to the Governor, Lieutenant 779
Governor, Speaker of the House of Representatives, the mayor and 780
the governing authorities of any municipality whose citizens are 781
within the authority's boundaries any information received from 782
the Mississippi State Department of Health or Department of 783
Environmental Quality or other state or federal regulatory 784
agencies regarding the condition of a transferred eligible 785
municipal system. The authority, in addition to abiding by any 786
other federal or state reporting requirements, must also report 787
such information to the public on its website and to individuals 788
residing within the service area as required by federal or state 789
law; 790
(c) Publish audited annual financial statements, which 791
shall be made available to the public. The annual financial 792
statements shall include disposition of all funds expended by the 793
authority for any purpose. Quarterly financial statements shall 794
be made available to the public by posting on the authority's 795
website; 796
(d) Adopt by administrative rules and regulations a 797
system of continuous internal audits; 798
(e) Adopt by administrative rules and regulations a 799
code of ethics for officers and employees of the authority to 800
carry out the standards of conduct established by this act; 801
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(f) Adopt by administrative rules and regulations 802
guidelines for the transfer of property to the city or disposal of 803
property, as the case may be, if the authority is dissolved; 804
(g) The authority shall conduct an independent rate 805
study every two (2) years and develop a report with its findings. 806
If such rate study indicates that a rate increase is necessary in 807
two (2) consecutive reports, the authority shall adopt a rate 808
increase if it has not increased the rate in the prior two (2) 809
years; and 810
(h) The authority shall develop and implement a process 811
for customers to be able to dispute water and wastewater utility 812
bills. 813
SECTION 10. (1) The president, as chief executive officer 814
of the authority, if so appointed by the board, shall direct and 815
supervise all administrative and technical activities in 816
accordance with the provisions of this act, with the 817
administrative rules and regulations adopted by the board, and 818
with prudent industry practice. The president shall: 819
(a) Supervise and administer or contract for the 820
supervision and administration of the water and wastewater systems 821
owned, managed or controlled by the authority; 822
(b) Employ and direct such personnel as may be 823
necessary to carry out the purposes of this act and utilize such 824
services, personnel or facilities of the authority as he or she 825
may deem necessary; 826
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(c) Make available for inspection by the board or any 827
member of the board or the Governor, Lieutenant Governor, Speaker 828
of the House, the mayor or the governing authorities of any 829
municipality whose citizens are served by the authority, upon 830
request, all books, records, files and other information and 831
documents of his or her office and advise the board and recommend 832
such administrative rules and regulations and other matters he or 833
she deems necessary and advisable to improve the operation and 834
administration of the authority; 835
(d) Attend meetings of the board or appoint a designee 836
to attend on his or her behalf; 837
(e) Not later than thirty (30) days before the 838
beginning of the authority's fiscal year, submit the proposed 839
annual budget of the authority to the board for review and 840
approval. Such budget shall include a schedule of planned 841
repairs, upgrades or improvements to the systems and the 842
anticipated capital cost of each. In addition, the proposed 843
annual budget of the authority shall include a personnel table 844
reporting information for each full-time and part-time permanent 845
position, as follows: 846
(i) The position title and the salary for each 847
position in the existing operating budget for the current fiscal 848
year, indicating whether each position is filled or vacant as of 849
the reporting date; and 850
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(ii) The position title and the salary recommended 851
for each position for the following fiscal year; 852
(f) Require bond of Fifty Thousand Dollars ($50,000.00) 853
from employees with access to funds or in such an amount as 854
provided in the administrative rules and regulations of the board. 855
(2) The president may: 856
(a) Require a bond from other employees as he or she 857
deems necessary; and 858
(b) Upon specific or general approval of the board, 859
enter into personal service contracts pursuant to administrative 860
rules and regulations adopted by the board and compensate such 861
consultants and technical assistants as may be required to carry 862
out the provisions of this act. 863
(3) State agencies, including, but not limited to, the 864
Mississippi Department of Health and the Mississippi Department of 865
Environmental Quality, shall cooperate with the authority to 866
regulate the authority and assure the effective operation of the 867
authority's systems, with the understanding that such agencies act 868
as a regulator and not operator of such systems, provided that the 869
rates, fees, assessments and other charges imposed by the 870
authority shall not be subject to the jurisdiction of the 871
Mississippi Public Service Commission. All state officers are 872
hereby empowered and required to render such services to the 873
authority within their respective functions as may be requested by 874
the authority. 875
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SECTION 11. Employees of the authority shall serve at the 876
will and pleasure of the president, who shall determine their 877
compensation and benefits in consultation with the board. 878
SECTION 12. Neither the directors of the authority, the 879
board, its employees, nor any person or persons acting on their 880
behalf, while acting within the scope of their authority, shall be 881
subject to personal liability resulting from carrying out any of 882
the powers granted herein in accordance with his or her good faith 883
belief that he or she is acting in the best interests of the 884
authority. 885
SECTION 13. (1) The authority shall enter into its 886
contracts for major procurements after a competitive and open 887
procurement process. The authority may adopt administrative rules 888
and regulations pursuant to the provisions of this act providing 889
for special procedures whereby the authority may make any class of 890
procurement. The authority shall endeavor to ensure the 891
transparency and competitiveness of procurements of all sizes. 892
(2) In its bidding processes, the authority may do its own 893
bidding and procurement or may utilize the services of other state 894
agencies as appropriate and necessary. The president may declare 895
an emergency for purchasing purposes which shall be governed by 896
the administrative rules and regulations adopted by the board. 897
SECTION 14. All monies received by the authority shall be 898
deposited into an operating account. Such account shall be 899
established in a custodian financial institution domiciled in the 900
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state, insured by the Federal Deposit Insurance Corporation and 901
collateralized as prescribed by Section 27-105-5. 902
SECTION 15. All division heads, officers and employees of 903
the authority shall be considered public servants as defined in 904
Section 25-4-103. All division heads and officers of the 905
authority are subject to Section 25-4-25 and shall be required to 906
file a Statement of Economic Interest with the Mississippi Ethics 907
Commission. 908
SECTION 16. (1) Any public agency, pursuant to a duly 909
adopted resolution of its governing body, may enter into contracts 910
with the authority under the terms of which the authority will 911
manage, operate and contract for usage of the agency's systems and 912
facilities, or other services, for such public agency. 913
(2) Any public agency may enter into contracts with the 914
authority for the authority to purchase or sell, by installments 915
over such terms as may be deemed desirable, or otherwise, to any 916
person or any systems. Any public agency may sell, donate, convey 917
or otherwise dispose of water and wastewater facilities or 918
systems, or any equipment, personal property or other things 919
deemed necessary for the construction, operation and maintenance 920
thereof, to the authority without the necessity of appraisal, 921
advertising or bidding. This section creates an alternative 922
method of disposal of public property. 923
(3) Any public agency is authorized to enter into operating 924
agreements with the authority, for such terms and upon such 925
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conditions as may be deemed desirable, for the operation of any of 926
its systems by the authority or by any person contracting with the 927
authority to operate such systems. 928
(4) Any public agency may lease any of its systems to or 929
from the authority, for such term and upon such conditions as may 930
be deemed desirable. 931
(5) Any municipality or county may donate office space, 932
equipment, supplies and materials to the authority. 933
(6) Contracts under this section may contain provisions 934
requiring any public agency to regulate the quality and strength 935
of the material to be handled by the wastewater systems and may 936
also provide that the authority shall have the right to use any 937
streets, alleys and public ways and places within the jurisdiction 938
of a public agency during the term of the contract. Such 939
contracts may obligate the public agency to make payments to the 940
authority or to a trustee in amounts which shall be sufficient to 941
enable the authority to defray the expenses of administering, 942
operating and maintaining its respective systems, to pay interest 943
and principal (whether at maturity, upon redemption or otherwise) 944
on bonds of the authority issued under this act, and to fund 945
reserves for debt service, for operation and maintenance and for 946
renewals and replacements, to fulfill the requirements of any rate 947
covenant with respect to debt service coverage contained in any 948
resolution, trust indenture or other security instrument relating 949
to the bonds of the authority issued under this act or to fulfill 950
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any other requirement relating to bonds issued pursuant to this 951
act. 952
(7) All public agencies shall have the power to enter into 953
contracts with the authority as deemed in the best interest of the 954
public agency, according to the discretion of the governing body 955
of the public agency, would be in the best interest of the public 956
agency. Such contracts may include a pledge of the full faith and 957
credit of the public agency and/or the avails of any special 958
assessments made by the public agency against property receiving 959
benefits, as now or hereafter provided by law. Any such contract 960
may: 961
(a) Provide for the sale or lease to, or use by, the 962
authority, of the systems or any part thereof, of the public 963
agency; 964
(b) Provide that the authority shall operate its 965
systems or any part thereof of the public agency; 966
(c) Provide that the public agency shall have the right 967
to continued use and/or priority use of the systems or any part 968
thereof during the useful life thereof upon payment of reasonable 969
charges therefor; 970
(d) Contain provisions to assure equitable treatment of 971
public agencies contracting with the authority under this act; and 972
(e) Contain such other provisions and requirements as 973
the parties thereto may determine to be appropriate or necessary. 974
Such contracts may extend over any period of time, notwithstanding 975
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any provisions of law to the contrary, and may extend beyond the 976
life of the respective systems or any part thereof or the term of 977
the bonds sold with respect to such facilities or improvements. 978
(8) The obligations of a public agency arising under the 979
terms of any contract referred to in this act, whether or not 980
payable solely from a pledge of revenues, shall not be included 981
within the indebtedness limitations of the public agency for the 982
purpose of any constitutional or statutory limitation or 983
provision. To the extent provided in such contract and to the 984
extent such obligations of the public agency are payable wholly or 985
in part from the revenues and other monies derived by the public 986
agency from the operation of its systems or of its combined 987
systems, or any part thereof, such obligations shall be treated as 988
expenses of operating such systems. 989
(9) Contracts referred to in this section may also provide 990
for payments in the form of contributions to defray the cost of 991
any purpose set forth in such contracts and as advances for the 992
respective systems or any part thereof subject to repayment by the 993
authority. A public agency may make such contributions or 994
advances from its general fund or surplus fund, from special 995
assessments or from any monies legally available therefor. 996
(10) Subject to the terms of a contract or contracts 997
controlled by this act, the authority is hereby authorized to do 998
and perform all acts necessary, convenient or desirable to carry 999
out the purposes of such contracts, including fixing, charging, 1000
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collecting, maintaining and revising rates, fees and other charges 1001
for the services rendered to a user of any of the systems operated 1002
or maintained by the authority, whether or not such systems are 1003
owned by the authority. 1004
(11) No provision of this act shall be construed to prohibit 1005
any public agency otherwise permitted by law to issue bonds from 1006
issuing bonds in the manner provided by law for the construction, 1007
renovation, repair or development of any systems or any part 1008
thereof. 1009
SECTION 17. When a public agency executes a contract under 1010
this act and the payments thereunder are to be made either wholly 1011
or partly from the revenues of the public agency's systems, any 1012
part thereof, or a combination of such systems, the public agency 1013
shall establish and maintain, and from time to time to adjust, the 1014
rate or fees charged by the public agency for the services of such 1015
systems, so that the revenues therefrom, together with any taxes 1016
and special assessments levied in support thereof, will be 1017
sufficient at all times to pay: 1018
(a) The expense of operating and maintaining such 1019
systems, including, but not limited to, all of the public agency's 1020
obligations to the authority and the cost required to staff such 1021
systems, its successors or assigns under such contract; and 1022
(b) All of the public agency's obligations under and in 1023
connection with bonds theretofore issued, or which may be issued 1024
thereafter and secured by the revenues of such systems. Any such 1025
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contract may require the use of consulting engineers and financial 1026
experts to advise the public agency whether and when such rates 1027
and fees are to be adjusted. 1028
SECTION 18. (1) Notwithstanding the provisions of Sections 1029
77-3-21 and 77-3-23, the certificate of public convenience and 1030
necessity held by any municipality, public agency, district, 1031
public utility or other entity authorized by law to provide water 1032
and wastewater services may be cancelled and its powers, duties 1033
and responsibilities transferred to the authority in the manner 1034
provided by this section. 1035
(2) Any entity described in subsection (1) of this section 1036
that desires to have its certificate of public convenience and 1037
necessity cancelled and its powers, duties and responsibilities 1038
transferred to the authority shall make a determination to that 1039
effect on its official minutes if a public entity, or by affidavit 1040
if not a public entity, and transmit such determination to the 1041
authority. 1042
(3) Upon receipt of the document evidencing such 1043
determination from an entity to transfer its powers, duties and 1044
responsibilities to the authority, the authority shall, by 1045
resolution, declare whether it is willing and able to accept such 1046
transfer from the entity. 1047
(4) Upon completion of the requirements of subsections (2) 1048
and (3) of this section and agreement by both parties to the 1049
transfer, the holder of the certificate of public convenience and 1050
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necessity and the authority shall jointly petition the Public 1051
Service Commission to cancel the certificate of public convenience 1052
and necessity. The petition must be accompanied by copies of the 1053
official minutes, affidavit or resolution, as the case may be, 1054
reflecting the actions of the petitioners. After review of the 1055
petition and any other evidence as the Public Service Commission 1056
deems necessary, the commission may issue an order canceling the 1057
certificate and transferring to the authority the powers, duties 1058
and responsibilities granted by the certificate, including all 1059
assets and debts of the transferor petitioner related to such 1060
certificated services, real or personal, or both, if it finds 1061
that: 1062
(a) The requirements of subsections (2) and (3) of this 1063
section have been met; and 1064
(b) Such action is in the public interest. 1065
(5) The authority and providers of water and wastewater 1066
services that are not holders of a certificate of a public 1067
convenience and necessity from the Public Service Commission may 1068
enter into agreements for the provision of such services, 1069
including, but not limited to, the transfer to the authority of 1070
such provider's powers, duties, responsibilities, assets and 1071
debts. 1072
(6) Nothing in this section shall require an entity whose 1073
powers and duties were transferred to the authority to remain 1074
under the authority. 1075
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SECTION 19. (1) Any system of a municipality, public agency 1076
or other entity that becomes subject to the jurisdiction of the 1077
authority and this act shall not impair, invalidate or abrogate 1078
any liens, bonds or other certificates of indebtedness related to 1079
water or wastewater facilities and systems incurred prior to 1080
becoming subject to the jurisdiction of the authority. 1081
(2) The authority may do and perform any and all acts 1082
necessary, convenient or desirable to ensure the payment, 1083
redemption or satisfaction of such liens, bonds or other 1084
certificates of indebtedness. 1085
SECTION 20. (1) Sections 19 through 28 of this act shall 1086
apply to all bonds issued by the authority on or after July 1, 1087
2026, and such provisions shall not affect, limit or alter the 1088
rights and powers of the authority under this act or any law of 1089
the State of Mississippi to conduct the activities referred to in 1090
this act in any way pertinent to the interests of the bondholders, 1091
including, without limitation, the authority's right to charge and 1092
collect rates, fees, assessments and charges and to fulfill the 1093
terms of any covenants made with the registered owners of any 1094
existing system bonds outstanding as of July 1, 2026, or in any 1095
other way impair the rights and remedies of the registered owners 1096
of any existing system bonds outstanding as of July 1, 2026, 1097
unless provision for full payment of such bonds, by escrow or 1098
otherwise, has been made pursuant to the terms of the bonds or the 1099
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resolution, trust indenture or other security instrument securing 1100
the bonds. 1101
(2) The authority shall have the power and is hereby 1102
authorized, from time to time, to borrow money and to issue 1103
revenue bonds and interim notes in such principal amounts as the 1104
authority may determine to be necessary to provide sufficient 1105
funds for achieving one or more of the purposes of this act, 1106
including, without limiting the generality of the foregoing, to 1107
defray all the costs of a project; the cost of the acquisition, 1108
construction, improvement, repair or extension of a system, or any 1109
part thereof, whether or not such facilities are owned by the 1110
authority; the payment of interest on bonds of the authority 1111
issued pursuant to this act; establishment of reserves to secure 1112
such bonds and payment of the interest thereon, expenses incident 1113
to the issuance of such bonds and to the implementation of the 1114
authority's system; and all other expenditures of the authority 1115
incident to or necessary or convenient to carry out the purposes 1116
of this act. 1117
(3) Before issuing bonds other than interim notes, bonds 1118
issued to refinance the existing system debts as of July 1, 2026, 1119
as provided in subsection (12) of this section or refunding bonds 1120
as provided in Section 21 of this act, the board of directors of 1121
the authority shall adopt a resolution declaring its intention to 1122
issue such bonds and stating the maximum principal amount of bonds 1123
proposed to be issued, a general generic description of the 1124
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proposed improvements, the proposed location thereof and the date, 1125
time and place at which the board of directors proposes to take 1126
further action with respect to the issuance of such bonds. The 1127
resolution shall be published once a week for at least three (3) 1128
consecutive weeks in at least one (1) newspaper having a general 1129
circulation within the geographical limits of the service area 1130
under this act. 1131
(4) Bonds of the authority issued pursuant to this act, 1132
other than bonds issued to refinance the existing system debts as 1133
of July 1, 2026, as provided in subsection (12) of this section, 1134
shall be payable from and secured by a pledge of all or any part 1135
of the revenues derived from the operation of the systems, or any 1136
part or parts thereof, and any other monies legally available and 1137
designated therefor, as may be determined by the authority, 1138
subject only to an agreement with the purchasers of the bonds. 1139
Such bonds may be further secured by a trust indenture between the 1140
authority and a corporate trustee, which may be any trust company 1141
or bank that has the powers of a trust company without or within 1142
the state. 1143
(5) Bonds of the authority shall be issued pursuant to this 1144
act only upon authorization by a resolution or resolutions adopted 1145
by a majority affirmative vote of the total membership of the 1146
board. Such bonds may be issued in series, and each series of 1147
such bonds shall bear such date or dates, mature at such time or 1148
times, bear interest at such rate or rates not exceeding the 1149
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maximum rate set out in Section 75-17-103, be in such denomination 1150
or denominations, be in such form, carry such conversion 1151
privileges, have such rank or priority, be executed in such manner 1152
and by such officers, be payable from such sources in such medium 1153
of payment at such place or places within or without the state, 1154
provided that one (1) such place shall be within the state, and be 1155
subject to such terms of redemption prior to maturity, as may be 1156
provided by resolution or resolutions of the board. The term of 1157
bonds issued pursuant to this act shall not exceed forty (40) 1158
years. 1159
(6) Bonds of the authority issued pursuant to this act may 1160
be sold at such price or prices, at public or private sale, in 1161
such manner and at such times as may be determined by the 1162
authority to be in the public interest, and the authority may pay 1163
all expenses, premiums, fees and commissions which it deems 1164
necessary and advantageous in connection with the issuance and 1165
sale thereof. 1166
(7) Any pledge of earnings, revenues or other monies made by 1167
the authority for bonds issued pursuant to this act, or made by 1168
the city to the authority for such bonds, shall be valid and 1169
binding from the time the pledge is made. The earnings, revenues 1170
or other monies so pledged and thereafter received by the 1171
authority or the city shall immediately be subject to the lien of 1172
such pledge without any physical delivery thereof or further act, 1173
and the lien of any such pledge shall be valid and binding as 1174
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against all parties having claims of any kind in tort, contract or 1175
otherwise against the authority or the city, irrespective of 1176
whether such parties have notice thereof. Neither the resolution 1177
nor any other instrument by which a pledge is created need be 1178
recorded. The revenues may also be pledged as security for the 1179
payment of obligations due to providers of credit enhancement with 1180
respect to any bonds issued. 1181
(8) Neither the members of the board nor any person 1182
executing the bonds shall be personally liable on the bonds or be 1183
subject to any personal liability or accountability by reason of 1184
their issuance. 1185
(9) Proceeds from the sale of bonds of the authority may be 1186
invested, pending their use, in such securities as may be 1187
specified in the resolution authorizing the issuance of the bonds 1188
or the trust indenture securing them, and the earnings on such 1189
investments may be applied as provided in such resolution or trust 1190
indenture. 1191
(10) When bonds have been signed by an officer who was 1192
designated by resolution of the board to sign the bonds and who 1193
was in office at the time of such signing, but who has ceased to 1194
be such an officer prior to the sale and delivery of such bonds, 1195
or who is not in office on the date such bonds bear, the manual or 1196
facsimile signatures of the officer upon such bonds shall 1197
nevertheless be valid and sufficient for all purposes and have the 1198
same effect as if the person who officially executed the bonds had 1199
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remained in office until delivery to the purchaser or had been in 1200
office on the date such bonds bear. 1201
(11) The authority may advance or borrow funds needed to 1202
satisfy any short-term cash flow demands or deficiencies or to 1203
cover start-up costs until such time as sufficient bonds, assets 1204
and revenues have been secured to satisfy the needs of the 1205
authority. 1206
(12) The authority is authorized to issue special revenue 1207
bonds for the purpose of refinancing the existing system debts as 1208
of July 1, 2026. Bonds issued pursuant to this subsection shall 1209
be payable from and secured by a pledge of all or any part of such 1210
monies legally available and designated therefor, as determined by 1211
the authority, subject only to an agreement with the purchasers of 1212
the bonds. Such bonds may be further secured by a trust indenture 1213
between the authority and a corporate trustee, which may be any 1214
trust company or a bank that has the powers of a trust company 1215
without or within the state. 1216
(13) Notwithstanding any provision to the contrary in 1217
Section 31-25-21, the authority shall constitute a local 1218
governmental unit for the purposes of the Mississippi Development 1219
Bank Act. 1220
SECTION 21. (1) The authority may, by resolution adopted by 1221
its board, issue refunding bonds for the purpose of paying any of 1222
its bonds at or prior to maturity, upon acceleration or upon 1223
redemption. Refunding bonds may be issued at such time prior to 1224
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the maturity or redemption of the refunded bonds as the board 1225
deems to be in the public interest. The refunding bonds may be 1226
issued in sufficient amounts to pay or provide the principal of 1227
the bonds being refunded, together with any redemption premium 1228
thereon, any interest accrued or to accrue to the date of payment 1229
of such bonds, the expenses of issue of the refunding bonds, the 1230
expenses of redeeming the bonds being refunded, and such reserves 1231
for debt service or other capital or current expenses from the 1232
proceeds of such refunding bonds as may be required by the 1233
resolution, trust indenture or other security instrument. The 1234
issue of refunding bonds, the maturities and other details 1235
thereof, the security therefor, the rights of the holders and the 1236
rights, duties and obligations of the authority in respect of the 1237
same shall be governed by the provisions of this act relating to 1238
the issue of bonds other than refunding bonds, insofar as the same 1239
may be applicable. Any such refunding may be effected, whether 1240
the obligations to be refunded shall have then matured or shall 1241
thereafter mature, either by the exchange of the refunding bonds 1242
for the obligations to be refunded thereby with the consent of the 1243
holders of the obligations so to be refunded, or by sale of the 1244
refunding bonds and the application of the proceeds thereof to the 1245
payment of the obligations proposed to be refunded thereby, and 1246
regardless of whether the obligations proposed to be refunded 1247
shall be payable on the same date or different dates or shall be 1248
due serially or otherwise. 1249
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(2) The authority may borrow by the delivery of interim 1250
notes to any person or public agency or financial institution by a 1251
majority vote of the board of directors. 1252
SECTION 22. All bonds, other than refunding bonds, interim 1253
notes and certificates of indebtedness, which may be issued 1254
pursuant to this act shall be validated as now provided by law in 1255
Sections 31-13-1 through 31-13-11; however, notice of such 1256
validation proceedings shall be addressed to the citizens of the 1257
respective public agencies which have contracted with the 1258
authority pursuant to this act, and whose contracts and the 1259
payments to be made by the public agencies thereunder constitute 1260
security for the bonds of the authority proposed to be issued, and 1261
such notice shall be published at least once in a newspaper or 1262
newspapers having a general circulation within the geographical 1263
boundaries of each of the contracting public agencies to whose 1264
citizens the notice is addressed. Such validation proceedings 1265
shall be instituted in any chancery courts within the boundaries 1266
of the authority. 1267
The validity of the bonds so validated and of the contracts 1268
and payments to be made by the public agencies thereunder 1269
constituting security for the bonds shall be forever conclusive 1270
against the authority and the public agencies, which are parties 1271
to said contracts, and the validity of said bonds and said 1272
contracts and the payments to be made thereunder shall never be 1273
called in question in any court in this state. 1274
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SECTION 23. Bonds issued under the provisions of this act 1275
shall not be deemed to constitute, within the meaning of any 1276
constitutional or statutory limitation, an indebtedness of the 1277
authority or the state. Such bonds shall be payable solely from 1278
the revenues or assets of the authority pledged therefor. 1279
Each bond issued under this act shall contain on the face 1280
thereof a statement to the effect that neither the authority nor 1281
the state shall be obligated to pay the same or the interest 1282
thereon except from the revenues or assets pledged therefor. 1283
SECTION 24. The authority shall have power in connection 1284
with the issuance of its bonds pursuant to this act to: 1285
(a) Covenant as to the use of any or all of its 1286
property, real or personal; 1287
(b) Redeem the bonds to covenant for their redemption 1288
and to provide the terms and conditions thereof; 1289
(c) Covenant to charge rates, fees and charges 1290
sufficient to meet operating and maintenance expenses, renewals 1291
and replacements, principal and debt service on bonds, creation 1292
and maintenance of any reserves required by a bonds resolution, 1293
trust indenture or other security instrument and to provide for 1294
any margins or coverages over and above debt service on the bonds 1295
deemed desirable for the marketability of the bonds; 1296
(d) Covenant and prescribe as to events of default and 1297
terms and conditions upon which any or all of its bonds shall 1298
become or may be declared due before maturity, as to the terms and 1299
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conditions upon which such declaration and its consequences may be 1300
waived and as to the consequences of default and the remedies of 1301
the registered owners of the bonds; 1302
(e) Covenant as to the mortgage or pledge of or the 1303
grant of a security interest in any real or personal property and 1304
all or any part of the revenues from any designated system or any 1305
part thereof or any revenue-producing contract or contracts made 1306
by the authority with any person or entity to secure the payment 1307
of bonds, subject to such agreements with the registered owners of 1308
bonds as may then exist; 1309
(f) Covenant as to the custody, collection, securing, 1310
investment and payment of any revenues, assets, monies, funds or 1311
property with respect to which the authority has any rights or 1312
interest; 1313
(g) Covenant as to the purposes to which the proceeds 1314
of the sale of any bonds then or thereafter to be issued may be 1315
applied, and the pledge of such proceeds to secure the payment of 1316
the bonds; 1317
(h) Covenant as to the limitations on the issuance of 1318
any additional bonds, the terms upon which additional bonds may be 1319
issued and secured, and the refunding of outstanding bonds; 1320
(i) Covenant as to the rank or priority of any bonds 1321
with respect to any lien or security; 1322
(j) Covenant as to the procedure by which the terms of 1323
any contract with or for the benefit of the registered owners of 1324
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bonds may be amended or abrogated, the amount of bonds the 1325
registered owners of which must consent thereto, and the manner in 1326
which such consent may be given; 1327
(k) Covenant as to the custody of any of its properties 1328
or investments, the safekeeping thereof, the insurance to be 1329
carried thereon, and the use and disposition of insurance 1330
proceeds; 1331
(l) Covenant as to the vesting in a trustee or 1332
trustees, within or outside the state, of such properties, rights, 1333
powers and duties in trust as the authority may determine; 1334
(m) Covenant as to the appointing and providing for the 1335
duties and obligations of a paying agent or paying agents or other 1336
fiduciaries within or outside the state; 1337
(n) Make all other covenants and do any and all such 1338
acts and things as may be necessary, convenient or desirable in 1339
order to secure its bonds, including providing a debt service 1340
reserve fund, bond insurance and credit enhancement, or in the 1341
absolute discretion of the authority, tend to make the bonds more 1342
marketable, notwithstanding that such covenants, acts or things 1343
may not be enumerated herein, it being the intention hereof to 1344
give the authority power to do all things in the issuance of bonds 1345
and in the provisions for security thereof which are not 1346
inconsistent with the Constitution of the state; and 1347
(o) Execute all instruments necessary or convenient in 1348
the exercise of the powers herein granted or in the performance of 1349
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covenants or duties, which may contain such covenants and 1350
provisions, as any purchaser of the bonds of the authority may 1351
reasonably require. 1352
SECTION 25. The authority may, in any authorizing resolution 1353
of the board, trust indenture or other security instrument 1354
relating to its bonds issued pursuant to this act, provide for the 1355
appointment of a trustee who shall have such powers as are 1356
provided therein to represent the registered owners of any issue 1357
of bonds in the enforcement or protection of their rights under 1358
any such resolution, trust indenture or security instrument. The 1359
authority may also provide in such resolution, trust indenture or 1360
other security instrument that the trustee may petition the court 1361
of proper jurisdiction for the appointment of a receiver of the 1362
authority's systems, the revenues of which are pledged to the 1363
payment of the principal of and interest on the bonds of such 1364
registered owners. In the event that the appointed trustee fails 1365
or declines to protect and enforce the registered owners' rights, 1366
a percentage of the registered owners as set forth in, and subject 1367
to the provisions of, such resolution, trust indenture or other 1368
security instrument may petition the court of proper jurisdiction 1369
according to this section. Such receiver may exercise any power 1370
granted in any such resolution, trust indenture or security 1371
instrument to enter upon and take possession of, acquire, 1372
construct, reconstruct or operate and maintain such system, fix 1373
charges for services of the system and enforce collection thereof, 1374
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receive all revenues derived from such system or facilities, and 1375
perform the public duties and carry out the contracts and 1376
obligations of the authority in the same manner as the authority 1377
itself might do, all under the direction of such court. 1378
SECTION 26. (1) The exercise of the powers granted by this 1379
act will be in all respects for the benefit of the people of the 1380
state, for their well-being and prosperity and for the improvement 1381
of their social and economic conditions, and the authority shall 1382
not be required to pay any tax or assessment on any property owned 1383
by the authority under the provisions of this act or upon the 1384
income therefrom, nor shall the authority be required to pay any 1385
recording fee or transfer tax of any kind on account of 1386
instruments recorded by it or on its behalf. 1387
(2) Any bonds issued by the authority under this act, their 1388
transfer and the income therefrom shall at all times be free from 1389
taxation by the state or any local unit or political subdivision 1390
or other instrumentality of the state, excepting inheritance and 1391
gift taxes. 1392
SECTION 27. All bonds issued under the provisions of this 1393
act shall be legal investments for trustees, other fiduciaries, 1394
savings banks, trust companies and insurance companies organized 1395
under the laws of the state, and such bonds shall be legal 1396
securities which may be deposited with and shall be received by 1397
all public officers and bodies of the state and all municipalities 1398
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and other political subdivisions thereof for the purpose of 1399
securing the deposit of public funds. 1400
SECTION 28. The state hereby covenants with the registered 1401
owners of any bonds of the authority that so long as the bonds are 1402
outstanding and unpaid, the state will not limit or alter the 1403
rights and powers of the authority under this act to fulfill the 1404
terms of any covenants made with, or for the benefit of, the 1405
registered owners of the bonds, or in any other way impair the 1406
rights and remedies of the registered owners of the bonds, unless 1407
provision for full payment of such bonds, by escrow or otherwise, 1408
has been made pursuant to the terms of the bonds or the 1409
resolution, trust indenture or security instrument securing the 1410
bonds. The authority is authorized to include this pledge and 1411
agreement of the state in any agreement with bondholders. 1412
SECTION 29. For the purposes of satisfying any temporary 1413
cash flow demands and deficiencies, and to maintain a working 1414
balance for the authority, the state, county, municipalities or 1415
public agencies within the geographic boundaries of the authority, 1416
or other persons, subject to their lawful authority to do so, are 1417
authorized to advance, at any time, such funds which in their 1418
discretion are necessary, or borrow such funds by issuance of 1419
notes, for initial capital contribution, and to cover start-up 1420
costs until such times as sufficient bonds, assets and revenues 1421
have been secured to satisfy the needs of the authority for its 1422
management, operation and formation. To this end, the state, 1423
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county, municipality, public agency or person, subject to its 1424
lawful authority to do so, shall advance such funds, or borrow 1425
such funds by issuance of notes, under such terms and conditions 1426
as may be provided by resolution of the governing body, or other 1427
persons as defined in this act, subject to their lawful authority 1428
to do so, except that each such resolution shall state: 1429
(a) The need for the proceeds advanced or borrowed; 1430
(b) The amount to be advanced or the amount to be 1431
borrowed; 1432
(c) The maximum principal amount of any note issued, 1433
the interest rate or maximum interest rate to be incurred, and the 1434
maturity date of said note; 1435
(d) In addition, the governing body, or other persons 1436
as defined in this act, subject to their lawful authority to do 1437
so, may arrange for lines of credit with any bank, firm or person 1438
for the purpose of providing an additional source of repayment for 1439
notes issued pursuant to this section. Amounts drawn on a line of 1440
credit may be evidenced by negotiable or nonnegotiable notes or 1441
other evidences of indebtedness and contain such terms and 1442
conditions as the governing body, or other persons as defined in 1443
this act, subject to their lawful authority to do so, may 1444
authorize in the resolution approving the same; 1445
(e) The governing body of the county, municipalities or 1446
other persons as defined in this act, subject to their lawful 1447
authority to do so, may authorize the repayment of such advances, 1448
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notes, lines of credit and other debt incurred under this section, 1449
along with all costs associated with the same, including, but not 1450
limited to, rating agency fees, printing costs, legal fees, bank 1451
or trust company fees, line of credit fees and other charges to be 1452
reimbursed by the authority under such terms and conditions as are 1453
reasonable and are to be provided for by resolution of the 1454
governing body, or terms agreed upon with other persons as defined 1455
in this act, subject to their lawful authority to do so; and 1456
(f) In addition, the governing body of the county, 1457
municipality or public agency may lease or donate office space and 1458
equipment to the authority under such terms and conditions as are 1459
reasonable and are to be provided for by resolution of the 1460
governing body, or terms agreed upon by the authority. 1461
SECTION 30. This act, being necessary for the welfare of the 1462
state and its inhabitants, shall be liberally construed to effect 1463
the purposes thereof. If any section, provision, paragraph, 1464
sentence, phrase or word of this act shall be held invalid by any 1465
court of competent jurisdiction, the remainder of this act shall 1466
not be affected thereby. 1467
SECTION 31. Section 21-19-1, Mississippi Code of 1972, is 1468
amended as follows: 1469
21-19-1. (1) The municipal governing authorities of any 1470
municipality shall have the power to make regulations to secure 1471
the general health of the municipality; to prevent, remove, and 1472
abate nuisances; to regulate or prohibit the construction of privy 1473
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vaults and cesspools, and to regulate or suppress those already 1474
constructed; to compel and regulate the connection of all property 1475
with sewers and drains; to suppress hog pens, slaughterhouses and 1476
stockyards, or to regulate the same and prescribe and enforce 1477
regulations for cleaning and keeping the same in order; to 1478
regulate and prescribe and enforce regulations for the cleaning 1479
and keeping in order of warehouses, stables, alleys, yards, 1480
private ways, outhouses, and other places where offensive matter 1481
is kept or permitted to accumulate; and to compel and regulate the 1482
removal of garbage and filth beyond the corporate limits. The 1483
municipal governing authorities are further authorized to adopt 1484
and enforce regulations governing the disposal of garbage and 1485
rubbish in sanitary landfills owned or leased by the municipality, 1486
whether located within or outside of the corporate limits of the 1487
municipality, to the extent that such regulations are not in 1488
conflict with or prohibited by regulations of the Commission on 1489
Environmental Quality adopted under Section 17-17-27. 1490
(2) After December 31, 1992, the governing body of any 1491
municipality in the state shall provide for the collection and 1492
disposal of garbage and the disposal of rubbish, and for that 1493
purpose the governing body shall have the power to: 1494
(a) Establish, operate and maintain a garbage and/or 1495
rubbish collection and disposal system or systems; 1496
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(b) Acquire property, real or personal, by contract, 1497
gift or purchase, necessary or proper for the maintenance and 1498
operation of such system; 1499
(c) Make all necessary rules and regulations for the 1500
collection and disposal of garbage and/or rubbish not in conflict 1501
with or prohibited by rules and regulations of the Commission on 1502
Environmental Quality adopted under Section 17-17-27 and, if it so 1503
desires, establish, maintain and collect rates, fees and charges 1504
for collecting and disposing of such garbage and/or rubbish; and 1505
(d) In its discretion, enter into contracts, in the 1506
manner required by law, with individuals, associations or 1507
corporations for the establishment, operation and maintenance of a 1508
garbage or rubbish disposal system or systems, and/or enter into 1509
contracts on such terms as the municipal governing body thinks 1510
proper with any other municipality, county or region enabling the 1511
municipality to use jointly with such other municipality, county 1512
or region any authorized rubbish landfill or permitted sanitary 1513
landfill operated by the other municipality, other county or 1514
region. 1515
(3) Notwithstanding the provisions of any other law, 1516
charter or ordinance to the contrary, this subsection (3) shall 1517
control. 1518
(a) The governing authorities of any municipality 1519
having a population of one hundred thousand (100,000) or more, are 1520
hereby authorized and empowered to dedicate a portion of the 1521
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rates, fees and charges for collecting and disposing of garbage 1522
and/or rubbish to the payment of principal of and interest on 1523
bonds or notes issued by a public authority to which the power and 1524
authority to operate, maintain or finance costs associated with 1525
the water, sewer and/or drainage systems of any municipality shall 1526
have been delegated. Any such public authority may issue bonds or 1527
notes that are secured by a pledge of and lien on, and may be 1528
payable from, the rates, fees and charges dedicated pursuant to 1529
this subsection (3). The governing authorities of a municipality 1530
may also enter into agreements as may be necessary or desirable in 1531
connection with the issuance of bonds or notes by such public 1532
authority. Such agreements may include such reasonable provisions 1533
as the governing body of the public authority shall determine to 1534
be appropriate to provide security for the holders of bonds or 1535
notes issued or to be issued by such public authority and, as 1536
applicable, for the payment of obligations due providers of credit 1537
enhancement with respect to any bonds or notes issued. The 1538
governing authorities of such municipality shall covenant to 1539
maintain and collect rates, fees and charges for collecting and 1540
disposing of garbage and/or rubbish in amounts at least equal to 1541
the portion dedicated pursuant to this subsection (3) until such 1542
time as the bonds or notes issued by such public authority that 1543
are secured by and payable from such dedicated amounts shall have 1544
been paid in full, and such covenant shall be set forth in the 1545
document authorizing the bonds or notes and shall constitute a 1546
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covenant of the municipality with the owners and, as applicable, 1547
the providers of credit enhancement with respect to such bonds or 1548
notes for so long as any such bonds or notes remain outstanding. 1549
(b) In addition to any contractual lien granted to 1550
holders of bonds or notes issued by such public authority, to 1551
secure the full and timely payment of all bonds or notes issued by 1552
such public authority, in accordance with their respective terms, 1553
all such bonds or notes are and shall be secured by a statutory 1554
lien on all such rates, fees, charges or other amounts. The lien 1555
shall arise solely by force of this provision specifically upon 1556
the issuance of any such bonds or notes, and shall automatically 1557
attach without further action or authorization by the municipality 1558
or the public authority. The lien shall be valid and binding from 1559
the time any such amounts are paid by any person obligated to pay 1560
such amount, and the lien shall immediately attach to such amounts 1561
and be effective, binding and enforceable against any such county, 1562
municipality or public authority or other designated recipient or 1563
depository of such amounts, as applicable, their respective 1564
successors, transferees, or creditors, and all others asserting 1565
rights therein, irrespective of whether those parties have notice 1566
of the lien and without the need for any physical delivery, 1567
recordation, filing, or further act. The municipality is hereby 1568
authorized and directed to covenant and agree for the benefit of 1569
the holders of the bonds or notes outstanding from time to time 1570
that for so long as any bonds or notes remain unpaid, the 1571
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municipality shall (i) defend, preserve and protect such statutory 1572
lien against all claims and demands of third parties, and (ii) not 1573
attempt to revoke, terminate or amend such statutory lien in any 1574
way that materially adversely affects the rights of any holder of 1575
bonds. 1576
(4) As a necessary incident to such municipal governing 1577
authority's power and authority to establish, maintain and collect 1578
such rates, fees and charges for collecting and disposing of such 1579
garbage and/or rubbish, and as a necessary incident to such 1580
municipal governing authority's power and authority to establish, 1581
operate and maintain a garbage and/or rubbish disposal system or 1582
systems, the municipal governing authority of such municipality 1583
shall have the authority to initiate a civil action to recover any 1584
delinquent fees and charges for collecting and disposing of such 1585
rubbish, and all administrative and legal costs associated with 1586
collecting such fees and charges, in the event any person, firm or 1587
corporation, including any municipal corporation, shall fail or 1588
refuse to pay such fees and charges for collecting and disposing 1589
of garbage and/or rubbish; provided that such municipal governing 1590
authority may initiate such a civil action to recover such 1591
delinquent fees and charges whether or not such municipality has 1592
previously entered into a contract with such individual, firm or 1593
corporation, relating to the establishment, operation and 1594
maintenance of such garbage and/or rubbish disposal system or 1595
systems; provided further, that in a civil action to recover such 1596
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delinquent fees and charges for collecting and disposing of such 1597
garbage and/or rubbish, and all administrative and legal costs 1598
associated with collecting such fees and charges, the municipality 1599
shall in all respects be a proper party to such suit as plaintiff 1600
and shall have the power to sue for and recover such unpaid fees 1601
and charges, and all administrative and legal costs associated 1602
with collecting such fees and charges from any person, firm or 1603
corporation, as may fail, refuse or default in the payment of such 1604
fees and charges. 1605
SECTION 32. Section 21-19-2, Mississippi Code of 1972, is 1606
amended as follows: 1607
21-19-2. (1) (a) To defray the cost of establishing, 1608
operating and maintaining the system provided for in Section 1609
21-19-1, the governing authority of a municipality may develop a 1610
system for the billing and/or collection of any fees or charges 1611
imposed on each person furnished garbage and/or rubbish collection 1612
and/or disposal service by the municipality or at the expense of 1613
the municipality. The governing authority of the municipality 1614
shall provide for the collection of the fees or charges. 1615
(b) The governing authority of a municipality may enter 1616
into a contract upon mutual agreement with a public or private 1617
corporation, nonprofit corporation, planning and development 1618
district or a public agency, association, utility or utility 1619
district within the area receiving garbage and/or rubbish 1620
collection and/or disposal services from the municipality for the 1621
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purpose of developing, maintaining, operating and administering a 1622
system for the billing and/or collection of fees or charges 1623
imposed by the municipality for garbage and/or rubbish collection 1624
and/or disposal services. The entity with whom the governing 1625
authority of a municipality contracts shall notify the governing 1626
authority of the municipality monthly of any unpaid fees or 1627
charges assessed under this section. Any entity that contracts to 1628
provide a service to customers, within the area being served by 1629
the municipality's garbage and/or rubbish collection and/or 1630
disposal system, may provide a list of its customers to the 1631
governing authority of the municipality upon the request of the 1632
governing authority. 1633
(c) Notwithstanding the provisions of any other law, 1634
charter or ordinance to the contrary, the provisions of this 1635
paragraph (c) shall control. The governing authority of a 1636
municipality may enter into a contract upon mutual agreement with 1637
any county within the area receiving garbage and/or rubbish 1638
collection and/or disposal services from the municipality for the 1639
purpose of billing and/or collection of fees or charges imposed by 1640
the municipality for garbage and/or rubbish collection and/or 1641
disposal services, and any such county is hereby authorized to 1642
enter into such a contract. In its discretion, the municipality 1643
may bill and collect the fees or charges imposed by the 1644
municipality for garbage and/or rubbish collection and/or disposal 1645
services as part of the tax bills for the municipality issued by 1646
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the tax collector of the county for those properties subject to 1647
such fees or charges. To the extent included as part of the tax 1648
bills, the fees or charges to be collected under this section 1649
shall be shown as a separate line item on the notice of ad valorem 1650
taxes on taxable property owed by the taxpayer. 1651
(2) (a) To defray the cost of establishing and operating 1652
the system provided for in Section 21-19-1, the governing body of 1653
a municipality may levy an ad valorem tax not to exceed four (4) 1654
mills on all taxable property within the area served by the 1655
municipality's garbage and/or rubbish collection and/or disposal 1656
system. The service area may be comprised of incorporated and/or 1657
unincorporated areas within a county; however, no property shall 1658
be subject to this levy unless that property is within an area 1659
served by a municipality's garbage and/or rubbish collection 1660
and/or disposal system. The rate of the ad valorem tax levied 1661
under this section shall be shown as a line item on the notice of 1662
ad valorem taxes on taxable property owed by the taxpayer. 1663
(b) In addition to or in lieu of any other method 1664
authorized to defray the cost of establishing and operating the 1665
system provided for in Section 21-19-1, the governing body of a 1666
municipality that has established a garbage and/or rubbish 1667
collection and/or disposal system may assess and collect fees or 1668
charges to defray the costs of such services. The governing 1669
authority may assess and collect the fees or charges from each 1670
single family residential generator of garbage and/or rubbish. 1671
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The governing authority also may assess and collect such fees or 1672
charges from each industrial, commercial and multi-family 1673
residential generator of garbage and/or rubbish for any time 1674
period that the generator has not otherwise contracted for the 1675
collection of garbage and/or rubbish that is ultimately disposed 1676
of at a permitted or authorized nonhazardous solid waste 1677
management facility. 1678
(c) Before the adoption of any resolution or ordinance 1679
to increase the ad valorem tax assessment or fees or charges 1680
authorized by this section, the governing authority of a 1681
municipality shall have published a notice advertising their 1682
intent to increase the ad valorem tax assessment or fees or 1683
charges authorized by this section. The notice shall specify the 1684
purpose of the proposed increase, the proposed percentage increase 1685
and the proposed percentage increase in total revenues for garbage 1686
and/or rubbish collection and/or disposal services or shall 1687
contain a copy of any resolution by the governing authority 1688
stating their intent to increase the ad valorem tax assessment or 1689
fees or charges authorized by this section. The notice shall be 1690
published in a newspaper having general circulation in the 1691
municipality for no less than three (3) consecutive weeks before 1692
the adoption of the order. The notice shall be in print no less 1693
than the size of eighteen (18) point and shall be surrounded by a 1694
one-fourth (1/4) inch black border. The notice shall not be 1695
placed in the legal section notice of the newspaper. There shall 1696
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be no language in the notice inferring a mandate from the 1697
Legislature. 1698
In addition to the requirement for publication of notice, the 1699
governing authority of a municipality shall notify each person 1700
furnished garbage and/or rubbish collection and/or disposal 1701
service of any increase in the ad valorem tax assessment or fees 1702
or charges authorized by this section. In the case of an increase 1703
of the ad valorem tax assessment, a notice shall be conspicuously 1704
placed on or attached to the first ad valorem tax bill on which 1705
the increased assessment is effective. In the case of an increase 1706
in fees or charges, a notice shall be conspicuously placed on or 1707
attached to the first bill for fees or charges on which the 1708
increased fees or charges are assessed. There shall be no 1709
language in any notice inferring a mandate from the Legislature. 1710
(d) The governing authority of a municipality may adopt 1711
an ordinance authorizing the granting of exemptions from the fees 1712
or charges for certain generators of garbage and/or rubbish. The 1713
ordinance shall define clearly those generators that may be 1714
exempted and shall be interpreted consistently by the governing 1715
authority when determining whether to grant or withhold requested 1716
exemptions. 1717
(e) Subject to the provisions of Section 21-19-1(3), 1718
the governing authority may borrow money for the purpose of 1719
defraying the expenses of the system in anticipation of: 1720
(i) The tax levy authorized under this section; 1721
(ii) Revenues resulting from the assessment of any 1722
fees or charges for garbage and/or rubbish collection and/or 1723
disposal; or 1724
(iii) Any combination thereof. 1725
(3) (a) Fees or charges for garbage and/or rubbish 1726
collection and/or disposal shall be assessed jointly and severally 1727
against the generator of the garbage and/or rubbish and against 1728
the owner of the property furnished the service. However, any 1729
person who pays, as a part of a rental or lease agreement, an 1730
amount for garbage and/or rubbish collection and/or disposal 1731
services shall not be held liable upon the failure of the property 1732
owner to pay such fees. 1733
(b) Every generator assessed the fees or charges 1734
provided for and limited by this section and the owner of the 1735
property occupied by that generator shall be jointly and severally 1736
liable for the fees and/or charges so assessed. The fees or 1737
charges shall be a lien upon the real property offered garbage 1738
and/or rubbish collection and/or disposal service. 1739
At the discretion of the governing body of the municipality, 1740
fees or charges assessed for the service may be assessed annually. 1741
If fees or charges are assessed annually, the fees or charges for 1742
each calendar year shall be a lien upon the real property offered 1743
the service beginning on January 1 of the next immediately 1744
succeeding calendar year. The person or entity owing the fees or 1745
charges, upon signing a form provided by the governing authority, 1746
may pay the fees or charges in equal installments. 1747
If fees or charges so assessed are assessed on a basis other 1748
than annually, the fees or charges shall become a lien on the real 1749
property offered the service on the date that the fees or charges 1750
become due and payable. 1751
No real or personal property shall be sold to satisfy any 1752
lien imposed under this section. 1753
The municipality shall mail a notice of the lien, including 1754
the amount of unpaid fees or charges and a description of the 1755
property subject to the lien, to the owner of the property subject 1756
to the lien. 1757
(c) The municipal governing body shall notify the 1758
county tax collector of any unpaid fees or charges assessed under 1759
this section within ninety (90) days after such fees or charges 1760
are due. Upon receipt of a delinquency notice, the tax collector 1761
shall not issue or renew a motor vehicle road and bridge privilege 1762
license for any motor vehicle owned by a person who is delinquent 1763
in the payment of fees or charges, unless such fees or charges, in 1764
addition to any other taxes or fees assessed against the motor 1765
vehicle, are paid. 1766
(d) Liens created under this section may be discharged 1767
as follows: 1768
(i) By filing with the municipal tax collector a 1769
receipt or acknowledgement, signed by the municipality, that the 1770
lien has been paid or discharged; or 1771
(ii) By depositing with the municipal tax 1772
collector money equal to the amount of the claim, which money 1773
shall be held for the benefit of the municipality. 1774
SECTION 33. Section 21-27-57, Mississippi Code of 1972, is 1775
amended as follows: 1776
21-27-57. In the authorizing order or ordinance, the 1777
governing authorities of the municipality shall set aside monthly 1778
and shall pledge the revenues of the system or combined system, in 1779
separate and special funds as follows: ( * * *a) operation and 1780
maintenance fund; ( * * *b) depreciation fund; ( * * *c) bond and 1781
interest fund; ( * * *d) contingent fund. A sufficient amount 1782
shall be set aside each year for the retirement of the bonds and 1783
interest. Any surplus revenue remaining shall be disposed of by 1784
the governing authorities of the municipality as they may 1785
determine from time to time for the best interest of the 1786
municipality. However, in the segregation into the several funds 1787
the governing authorities may prescribe a reasonable excess amount 1788
to be placed in the revenue bond and interest fund from time to 1789
time during the earlier years of maturity of such bonds so as to 1790
thereby provide and produce a cushion fund to meet any possible 1791
deficiencies therein in future years. In the event such excess 1792
amounts are provided in the earlier years, the same would be 1793
available for such purposes. Bonds pursuant to the authority 1794
granted in Sections 21-27-23 and 21-27-51, shall be payable solely 1795
from revenues of said project and out of the bond and interest 1796
fund. 1797
SECTION 34. This act shall take effect and be in force from 1798
and after its passage. 1799