Bonds; authorize issuance to assist Town of Bruce with various projects.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Bailey (23rd)

HOUSE BILL NO. 1960

AN ACT TO AUTHORIZE THE ISSUANCE OF STATE GENERAL OBLIGATION 1
BONDS TO PROVIDE FUNDS TO ASSIST THE TOWN OF BRUCE, MISSISSIPPI, 2
IN PAYING COSTS ASSOCIATED WITH REPLACEMENT OF A SPRINKLER SYSTEM 3
AND MAKING LOT IMPROVEMENTS AS PART OF ITS TOWN SQUARE RENOVATION 4
PROJECT, WATER SHUT OFF REPLACEMENTS, ACQUISITION OF A FIRE TRUCK, 5
FENCING IMPROVEMENTS AT THE TOWN PARK AND THE OLD NATIONAL GUARD 6
ARMORY, LIGHTING FOR SOCCER FIELDS, WATER SYSTEM LINE REPAIRS, AND 7
SEWER SYSTEM REPAIRS, UPGRADES AND IMPROVEMENTS; AND FOR RELATED 8
PURPOSES. 9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 10
SECTION 1. (1) As used in this act, the following words 11
shall have the meanings ascribed herein unless the context clearly 12
requires otherwise: 13
(a) "State" means the State of Mississippi. 14
(b) "Commission" means the State Bond Commission. 15
(2) The principal of and interest on the bonds authorized 16
under this act shall be payable in the manner provided in this 17
subsection. Such bonds shall bear such date or dates, be in such 18
denomination or denominations, bear interest at such rate or rates 19
(not to exceed the limits set forth in Section 75-17-101, 20
Mississippi Code of 1972), be payable at such place or places 21
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within or without the State of Mississippi, shall mature 22
absolutely at such time or times not to exceed twenty-five (25) 23
years from date of issue, be redeemable before maturity at such 24
time or times and upon such terms, with or without premium, shall 25
bear such registration privileges, and shall be substantially in 26
such form, all as shall be determined by resolution of the 27
commission. 28
(3) The bonds authorized by this act shall be signed by the 29
chairman of the commission, or by his facsimile signature, and the 30
official seal of the commission shall be affixed thereto, attested 31
by the secretary of the commission. The interest coupons, if any, 32
to be attached to such bonds may be executed by the facsimile 33
signatures of such officers. Whenever any such bonds shall have 34
been signed by the officials designated to sign the bonds who were 35
in office at the time of such signing but who may have ceased to 36
be such officers before the sale and delivery of such bonds, or 37
who may not have been in office on the date such bonds may bear, 38
the signatures of such officers upon such bonds and coupons shall 39
nevertheless be valid and sufficient for all purposes and have the 40
same effect as if the person so officially signing such bonds had 41
remained in office until their delivery to the purchaser, or had 42
been in office on the date such bonds may bear. However, 43
notwithstanding anything herein to the contrary, such bonds may be 44
issued as provided in the Registered Bond Act of the State of 45
Mississippi. 46
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(4) All bonds and interest coupons issued under the 47
provisions of this act have all the qualities and incidents of 48
negotiable instruments under the provisions of the Uniform 49
Commercial Code, and in exercising the powers granted by this act, 50
the commission shall not be required to and need not comply with 51
the provisions of the Uniform Commercial Code. 52
(5) The commission shall act as issuing agent for the bonds 53
authorized under this act, prescribe the form of the bonds, 54
determine the appropriate method for sale of the bonds, advertise 55
for and accept bids or negotiate the sale of the bonds, issue and 56
sell the bonds so authorized to be sold, pay all fees and costs 57
incurred in such issuance and sale, and do any and all other 58
things necessary and advisable in connection with the issuance and 59
sale of such bonds. The commission is authorized and empowered to 60
pay the costs that are incident to the sale, issuance and delivery 61
of the bonds authorized under this act from the proceeds derived 62
from the sale of such bonds. The commission may sell such bonds 63
on sealed bids at public sale or may negotiate the sale of the 64
bonds for such price as it may determine to be for the best 65
interest of the State of Mississippi. All interest accruing on 66
such bonds so issued shall be payable semiannually or annually. 67
If such bonds are sold by sealed bids at public sale, notice 68
of the sale shall be published at least one time, not less than 69
ten (10) days before the date of sale, and shall be so published 70
in one or more newspapers published or having a general 71
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circulation in the City of Jackson, Mississippi, selected by the 72
commission. 73
The commission, when issuing any bonds under the authority of 74
this act, may provide that bonds, at the option of the State of 75
Mississippi, may be called in for payment and redemption at the 76
call price named therein and accrued interest on such date or 77
dates named therein. 78
(6) The bonds issued under the provisions of this act are 79
general obligations of the State of Mississippi, and for the 80
payment thereof the full faith and credit of the State of 81
Mississippi is irrevocably pledged. If the funds appropriated by 82
the Legislature are insufficient to pay the principal of and the 83
interest on such bonds as they become due, then the deficiency 84
shall be paid by the State Treasurer from any funds in the State 85
Treasury not otherwise appropriated. All such bonds shall contain 86
recitals on their faces substantially covering the provisions of 87
this subsection. 88
(7) Upon the issuance and sale of bonds under the provisions 89
of this act, the commission shall transfer the proceeds of any 90
such sale or sales to the special fund created in Section 2(1) of 91
this act. The proceeds of such bonds shall be disbursed from the 92
special fund under such restrictions, if any, as may be contained 93
in the resolution providing for the issuance of the bonds. 94
(8) The bonds authorized under this act may be issued 95
without any other proceedings or the happening of any other 96
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conditions or things other than those proceedings, conditions and 97
things which are specified or required by this act. Any 98
resolution providing for the issuance of bonds under the 99
provisions of this act shall become effective immediately upon its 100
adoption by the commission, and any such resolution may be adopted 101
at any regular or special meeting of the commission by a majority 102
of its members. 103
(9) The bonds authorized under the authority of this act may 104
be validated in the Chancery Court of the First Judicial District 105
of Hinds County, Mississippi, in the manner and with the force and 106
effect provided by Chapter 13, Title 31, Mississippi Code of 1972, 107
for the validation of county, municipal, school district and other 108
bonds. The notice to taxpayers required by such statutes shall be 109
published in a newspaper published or having a general circulation 110
in the City of Jackson, Mississippi. 111
(10) Any holder of bonds issued under the provisions of this 112
act or of any of the interest coupons pertaining thereto may, 113
either at law or in equity, by suit, action, mandamus or other 114
proceeding, protect and enforce any and all rights granted under 115
this act, or under such resolution, and may enforce and compel 116
performance of all duties required by this act to be performed, in 117
order to provide for the payment of bonds and interest thereon. 118
(11) All bonds issued under the provisions of this act shall 119
be legal investments for trustees and other fiduciaries, and for 120
savings banks, trust companies and insurance companies organized 121
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under the laws of the State of Mississippi, and such bonds shall 122
be legal securities which may be deposited with and shall be 123
received by all public officers and bodies of this state and all 124
municipalities and political subdivisions for the purpose of 125
securing the deposit of public funds. 126
(12) Bonds issued under the provisions of this act and 127
income therefrom shall be exempt from all taxation in the State of 128
Mississippi. 129
(13) The proceeds of the bonds issued under this act shall 130
be used solely for the purposes herein provided, including the 131
costs incident to the issuance and sale of such bonds. 132
(14) The State Treasurer is authorized, without further 133
process of law, to certify to the Department of Finance and 134
Administration the necessity for warrants, and the Department of 135
Finance and Administration is authorized and directed to issue 136
such warrants, in such amounts as may be necessary to pay when due 137
the principal of, premium, if any, and interest on, or the 138
accreted value of, all bonds issued under this act; and the State 139
Treasurer shall forward the necessary amount to the designated 140
place or places of payment of such bonds in ample time to 141
discharge such bonds, or the interest thereon, on the due dates 142
thereof. As used in this section, the "accreted value" of any 143
bond means, as of any date of computation, an amount equal to the 144
sum of (i) the stated initial value of such bond, plus (ii) the 145
interest accrued thereon from the issue date to the date of 146
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computation at the rate, compounded semiannually, that is 147
necessary to produce the approximate yield to maturity shown for 148
bonds of the same maturity. 149
(15) This act shall be deemed to be full and complete 150
authority for the exercise of the powers granted in this act that 151
relate to the issuance of bonds, but this act shall not be deemed 152
to repeal or to be in derogation of any existing law of this state 153
that relates to the issuance of bonds. 154
SECTION 2. (1) (a) (i) A special fund, to be designated 155
as the "2026 Town of Bruce Projects Fund", is created within the 156
State Treasury. The fund shall be maintained by the State 157
Treasurer as a separate and special fund, separate and apart from 158
the General Fund of the state. Unexpended amounts remaining in 159
the fund at the end of a fiscal year shall not lapse into the 160
State General Fund, and any interest earned or investment earnings 161
on amounts in the fund shall be deposited into such fund. 162
(ii) Monies deposited into the fund shall be 163
disbursed, in the discretion of the Department of Finance and 164
Administration, as follows: 165
1. Not more than One Hundred Twenty-five 166
Thousand Dollars ($125,000.00) shall be used to assist the Town of 167
Bruce, Mississippi, in paying costs associated with replacement of a 168
sprinkler system and making lot improvements as part of its town 169
square renovation project; 170
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2. Not more than Two Hundred Thousand Dollars 171
($200,000.00) shall be used to assist the Town of Bruce, 172
Mississippi, in paying costs associated with water shut off 173
replacements; 174
3. Not more than Seven Hundred Fifty Thousand 175
Dollars ($750,000.00) shall be used to assist the Town of Bruce, 176
Mississippi, in paying costs associated with the acquisition of a 177
fire truck; 178
4. Not more than Seventy-five Thousand 179
Dollars ($75,000.00) shall be used to assist the Town of Bruce, 180
Mississippi, in paying costs associated with fencing improvements 181
at the town park, fencing improvements at the old National Guard 182
Armory, and lighting for soccer fields; 183
5. Not more than Two Hundred Fifty Thousand 184
Dollars ($250,000.00) shall be used to assist the Town of Bruce, 185
Mississippi, in paying costs associated with water system line 186
repairs; and 187
6. Not more than Two Hundred Fifty Thousand 188
Dollars ($250,000.00) shall be used to assist the Town of Bruce, 189
Mississippi, in paying costs associated with sewer system repairs, 190
upgrades and improvements. 191
(b) Amounts deposited into such special fund shall be 192
disbursed to pay the costs of the projects described in paragraph 193
(a) of this subsection. Promptly after the commission has 194
certified, by resolution duly adopted, that the projects described 195
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in paragraph (a) of this subsection shall have been completed, 196
abandoned, or cannot be completed in a timely fashion, any amounts 197
remaining in such special fund shall be applied to pay debt 198
service on the bonds issued under this section, in accordance with 199
the proceedings authorizing the issuance of such bonds and as 200
directed by the commission. 201
(2) (a) The commission, at one time, or from time to time, 202
may declare by resolution the necessity for issuance of general 203
obligation bonds of the State of Mississippi to provide funds for 204
all costs incurred or to be incurred for the purposes described in 205
subsection (1) of this section. Upon the adoption of a resolution 206
by the Department of Finance and Administration, declaring the 207
necessity for the issuance of any part or all of the general 208
obligation bonds authorized by this section, the department shall 209
deliver a certified copy of its resolution or resolutions to the 210
commission. Upon receipt of such resolution, the commission is 211
authorized to proceed under the provisions of Section 1(5) of this 212
act. The total amount of bonds issued under this section shall 213
not exceed One Million Six Hundred Fifty Thousand Dollars 214
($1,650,000.00). No bonds shall be issued under this section 215
after July 1, 2030. 216
(b) Any investment earnings on amounts deposited into 217
the special fund created in subsection (1) of this section shall 218
be used to pay debt service on bonds issued under this section, in 219
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ST: Bonds; authorize issuance to assist Town of
Bruce with various projects.
accordance with the proceedings authorizing issuance of such 220
bonds. 221
(3) The provisions of Section 1 of this act shall apply to 222
the issuance of bonds authorized under this section. 223
SECTION 3. This act shall take effect and be in force from 224
and after July 1, 2026. 225