Bonds; authorize issuance to assist City of Petal with wastewater infrastructure improvements.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Byrd

HOUSE BILL NO. 2000

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