Bonds; authorize issuance to the City of Itta Bena with purchasing motor vehicles.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative James-Jones

HOUSE BILL NO. 1828

AN ACT TO AUTHORIZE THE ISSUANCE OF STATE GENERAL OBLIGATION 1
BONDS TO PROVIDE FUNDS TO ASSIST THE CITY OF ITTA BENA, 2
MISSISSIPPI, IN PAYING COSTS ASSOCIATED WITH PURCHASING MOTOR 3
VEHICLES; AND FOR RELATED PURPOSES. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 5
SECTION 1. (1) As used in this act, the following words 6
shall have the meanings ascribed herein unless the context clearly 7
requires otherwise: 8
(a) "State" means the State of Mississippi. 9
(b) "Commission" means the State Bond Commission. 10
(2) The principal of and interest on the bonds authorized 11
under this act shall be payable in the manner provided in this 12
subsection. Such bonds shall bear such date or dates, be in such 13
denomination or denominations, bear interest at such rate or rates 14
(not to exceed the limits set forth in Section 75-17-101, 15
Mississippi Code of 1972), be payable at such place or places 16
within or without the State of Mississippi, shall mature 17
absolutely at such time or times not to exceed twenty-five (25) 18
years from date of issue, be redeemable before maturity at such 19
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time or times and upon such terms, with or without premium, shall 20
bear such registration privileges, and shall be substantially in 21
such form, all as shall be determined by resolution of the 22
commission. 23
(3) The bonds authorized by this act shall be signed by the 24
chairman of the commission, or by his facsimile signature, and the 25
official seal of the commission shall be affixed thereto, attested 26
by the secretary of the commission. The interest coupons, if any, 27
to be attached to such bonds may be executed by the facsimile 28
signatures of such officers. Whenever any such bonds shall have 29
been signed by the officials designated to sign the bonds who were 30
in office at the time of such signing but who may have ceased to 31
be such officers before the sale and delivery of such bonds, or 32
who may not have been in office on the date such bonds may bear, 33
the signatures of such officers upon such bonds and coupons shall 34
nevertheless be valid and sufficient for all purposes and have the 35
same effect as if the person so officially signing such bonds had 36
remained in office until their delivery to the purchaser, or had 37
been in office on the date such bonds may bear. However, 38
notwithstanding anything herein to the contrary, such bonds may be 39
issued as provided in the Registered Bond Act of the State of 40
Mississippi. 41
(4) All bonds and interest coupons issued under the 42
provisions of this act have all the qualities and incidents of 43
negotiable instruments under the provisions of the Uniform 44
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Commercial Code, and in exercising the powers granted by this act, 45
the commission shall not be required to and need not comply with 46
the provisions of the Uniform Commercial Code. 47
(5) The commission shall act as issuing agent for the bonds 48
authorized under this act, prescribe the form of the bonds, 49
determine the appropriate method for sale of the bonds, advertise 50
for and accept bids or negotiate the sale of the bonds, issue and 51
sell the bonds so authorized to be sold, pay all fees and costs 52
incurred in such issuance and sale, and do any and all other 53
things necessary and advisable in connection with the issuance and 54
sale of such bonds. The commission is authorized and empowered to 55
pay the costs that are incident to the sale, issuance and delivery 56
of the bonds authorized under this act from the proceeds derived 57
from the sale of such bonds. The commission may sell such bonds 58
on sealed bids at public sale or may negotiate the sale of the 59
bonds for such price as it may determine to be for the best 60
interest of the State of Mississippi. All interest accruing on 61
such bonds so issued shall be payable semiannually or annually. 62
If such bonds are sold by sealed bids at public sale, notice 63
of the sale shall be published at least one time, not less than 64
ten (10) days before the date of sale, and shall be so published 65
in one or more newspapers published or having a general 66
circulation in the City of Jackson, Mississippi, selected by the 67
commission. 68
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The commission, when issuing any bonds under the authority of 69
this act, may provide that bonds, at the option of the State of 70
Mississippi, may be called in for payment and redemption at the 71
call price named therein and accrued interest on such date or 72
dates named therein. 73
(6) The bonds issued under the provisions of this act are 74
general obligations of the State of Mississippi, and for the 75
payment thereof the full faith and credit of the State of 76
Mississippi is irrevocably pledged. If the funds appropriated by 77
the Legislature are insufficient to pay the principal of and the 78
interest on such bonds as they become due, then the deficiency 79
shall be paid by the State Treasurer from any funds in the State 80
Treasury not otherwise appropriated. All such bonds shall contain 81
recitals on their faces substantially covering the provisions of 82
this subsection. 83
(7) Upon the issuance and sale of bonds under the provisions 84
of this act, the commission shall transfer the proceeds of any 85
such sale or sales to the special fund created in Section 2(1) of 86
this act. The proceeds of such bonds shall be disbursed from the 87
special fund under such restrictions, if any, as may be contained 88
in the resolution providing for the issuance of the bonds. 89
(8) The bonds authorized under this act may be issued 90
without any other proceedings or the happening of any other 91
conditions or things other than those proceedings, conditions and 92
things which are specified or required by this act. Any 93
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resolution providing for the issuance of bonds under the 94
provisions of this act shall become effective immediately upon its 95
adoption by the commission, and any such resolution may be adopted 96
at any regular or special meeting of the commission by a majority 97
of its members. 98
(9) The bonds authorized under the authority of this act may 99
be validated in the Chancery Court of the First Judicial District 100
of Hinds County, Mississippi, in the manner and with the force and 101
effect provided by Chapter 13, Title 31, Mississippi Code of 1972, 102
for the validation of county, municipal, school district and other 103
bonds. The notice to taxpayers required by such statutes shall be 104
published in a newspaper published or having a general circulation 105
in the City of Jackson, Mississippi. 106
(10) Any holder of bonds issued under the provisions of this 107
act or of any of the interest coupons pertaining thereto may, 108
either at law or in equity, by suit, action, mandamus or other 109
proceeding, protect and enforce any and all rights granted under 110
this act, or under such resolution, and may enforce and compel 111
performance of all duties required by this act to be performed, in 112
order to provide for the payment of bonds and interest thereon. 113
(11) All bonds issued under the provisions of this act shall 114
be legal investments for trustees and other fiduciaries, and for 115
savings banks, trust companies and insurance companies organized 116
under the laws of the State of Mississippi, and such bonds shall 117
be legal securities which may be deposited with and shall be 118
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received by all public officers and bodies of this state and all 119
municipalities and political subdivisions for the purpose of 120
securing the deposit of public funds. 121
(12) Bonds issued under the provisions of this act and 122
income therefrom shall be exempt from all taxation in the State of 123
Mississippi. 124
(13) The proceeds of the bonds issued under this act shall 125
be used solely for the purposes herein provided, including the 126
costs incident to the issuance and sale of such bonds. 127
(14) The State Treasurer is authorized, without further 128
process of law, to certify to the Department of Finance and 129
Administration the necessity for warrants, and the Department of 130
Finance and Administration is authorized and directed to issue 131
such warrants, in such amounts as may be necessary to pay when due 132
the principal of, premium, if any, and interest on, or the 133
accreted value of, all bonds issued under this act; and the State 134
Treasurer shall forward the necessary amount to the designated 135
place or places of payment of such bonds in ample time to 136
discharge such bonds, or the interest thereon, on the due dates 137
thereof. As used in this section, the "accreted value" of any 138
bond means, as of any date of computation, an amount equal to the 139
sum of (i) the stated initial value of such bond, plus (ii) the 140
interest accrued thereon from the issue date to the date of 141
computation at the rate, compounded semiannually, that is 142
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necessary to produce the approximate yield to maturity shown for 143
bonds of the same maturity. 144
(15) This act shall be deemed to be full and complete 145
authority for the exercise of the powers granted in this act that 146
relate to the issuance of bonds, but this act shall not be deemed 147
to repeal or to be in derogation of any existing law of this state 148
that relates to the issuance of bonds. 149
SECTION 2. (1) (a) (i) A special fund, to be designated 150
as the "2026 City of Itta Bena Motor Vehicle Acquisition Project 151
Fund", is created within the State Treasury. The fund shall be 152
maintained by the State Treasurer as a separate and special fund, 153
separate and apart from the General Fund of the state. Unexpended 154
amounts remaining in the fund at the end of a fiscal year shall 155
not lapse into the State General Fund, and any interest earned or 156
investment earnings on amounts in the fund shall be deposited into 157
such fund. 158
(ii) Monies deposited into the fund shall be 159
disbursed, in the discretion of the Department of Finance and 160
Administration, to assist the City of Itta Bena, Mississippi, in 161
paying costs associated with purchasing two (2) motor vehicles for 162
the city's police department, two (2) motor vehicles for the 163
city's public works department, and one(1) motor vehicle for city 164
hall. 165
(b) Amounts deposited into such special fund shall be 166
disbursed to pay the costs of the projects described in paragraph 167
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(a) of this subsection. Promptly after the commission has 168
certified, by resolution duly adopted, that the projects described 169
in paragraph (a) of this subsection shall have been completed, 170
abandoned, or cannot be completed in a timely fashion, any amounts 171
remaining in such special fund shall be applied to pay debt 172
service on the bonds issued under this section, in accordance with 173
the proceedings authorizing the issuance of such bonds and as 174
directed by the commission. 175
(2) (a) The commission, at one time, or from time to time, 176
may declare by resolution the necessity for issuance of general 177
obligation bonds of the State of Mississippi to provide funds for 178
all costs incurred or to be incurred for the purposes described in 179
subsection (1) of this section. Upon the adoption of a resolution 180
by the Department of Finance and Administration, declaring the 181
necessity for the issuance of any part or all of the general 182
obligation bonds authorized by this section, the department shall 183
deliver a certified copy of its resolution or resolutions to the 184
commission. Upon receipt of such resolution, the commission is 185
authorized to proceed under the provisions of Section 1(5) of this 186
act. The total amount of bonds issued under this section shall 187
not exceed Two Hundred Thousand Dollars ($200,000.00). No bonds 188
shall be issued under this section after July 1, 2030. 189
(b) Any investment earnings on amounts deposited into 190
the special fund created in subsection (1) of this section shall 191
be used to pay debt service on bonds issued under this section, in 192
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ST: Bonds; authorize issuance to the City of
Itta Bena with purchasing motor vehicles.
accordance with the proceedings authorizing issuance of such 193
bonds. 194
(3) The provisions of Section 1 of this act shall apply to 195
the issuance of bonds authorized under this section. 196
SECTION 3. This act shall take effect and be in force from 197
and after July 1, 2026. 198