Bonds; create rural counties and municipalities cellular and broadband grant program and authorize issuance of bonds.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Clark

HOUSE BILL NO. 269

AN ACT TO ESTABLISH A GRANT PROGRAM FOR THE PURPOSE OF MAKING 1
GRANTS TO ASSIST BUSINESSES IN PAYING COSTS ASSOCIATED WITH 2
PROVIDING AND EXPANDING CELLULAR AND BROADBAND ACCESS AND COVERAGE 3
IN RURAL COUNTIES AND RURAL MUNICIPALITIES; TO PROVIDE THAT THE 4
MISSISSIPPI DEVELOPMENT AUTHORITY SHALL ADMINISTER THE GRANT 5
PROGRAM CREATED IN THIS ACT; TO CREATE A SPECIAL FUND IN THE STATE 6
TREASURY, DESIGNATED AS THE "RURAL COUNTIES AND MUNICIPALITIES 7
CELLULAR AND BROADBAND FUND"; TO AUTHORIZE THE ISSUANCE OF 8
$15,000,000.00 OF STATE GENERAL OBLIGATION BONDS TO PROVIDE FUNDS 9
FOR THE "RURAL COUNTIES AND MUNICIPALITIES CELLULAR AND BROADBAND 10
FUND"; AND FOR RELATED PURPOSES. 11
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 12
SECTION 1. (1) For the purposes of this section, the 13
following terms shall have the meanings ascribed in this section 14
unless the context clearly indicates otherwise: 15
(a) "MDA" means the Mississippi Development Authority. 16
(b) "Rural county" means a county in the State of 17
Mississippi with a population of thirty thousand (30,000) or less 18
according to the most recent federal decennial census. 19
(c) "Rural municipality" means a municipality in the 20
State of Mississippi with a population of ten thousand (10,000) or 21
less according to the most recent federal decennial census. 22
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(2) There is hereby created in the State Treasury a special 23
fund to be designated as the "Rural Counties and Municipalities 24
Cellular and Broadband Fund", which shall consist of funds made 25
available by the Legislature in any manner and funds from any 26
other source designated for deposit into such fund. Unexpended 27
amounts remaining in the fund at the end of a fiscal year shall 28
not lapse into the State General Fund, and any investment earnings 29
or interest earned on amounts in the fund shall be deposited to 30
the credit of the fund. Monies in the fund shall be used to make 31
grants to businesses for the purposes provided in this section. 32
(3) The MDA shall establish a program to make grants to 33
businesses for the purpose of assisting such businesses in paying 34
costs associated with providing and expanding cellular and 35
broadband access and coverage in rural counties and rural 36
municipalities. The maximum amount of a grant made to a business 37
under this section cannot exceed twenty-five percent (25%) of the 38
cost of the project for which the grant is made. A business may 39
apply to the MDA for a grant under this section in the manner 40
provided for in this section. 41
(4) A business desiring a grant under this section must 42
submit an application to the MDA. The application must include a 43
description of the project for which the grant is requested, the 44
cost of the project for which the grant is requested, the amount 45
of the grant requested and any other information required by the 46
MDA. 47
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(5) The MDA shall have all powers necessary to implement and 48
administer the program established under this section, and the MDA 49
shall promulgate rules and regulations, in accordance with the 50
Mississippi Administrative Procedures Law, necessary for the 51
implementation of this section. 52
SECTION 2. (1) As used in this section, the following words 53
shall have the meanings ascribed herein unless the context clearly 54
requires otherwise: 55
(a) "Accreted value" of any bonds means, as of any date 56
of computation, an amount equal to the sum of (i) the stated 57
initial value of such bond, plus (ii) the interest accrued thereon 58
from the issue date to the date of computation at the rate, 59
compounded semiannually, that is necessary to produce the 60
approximate yield to maturity shown for bonds of the same 61
maturity. 62
(b) "State" means the State of Mississippi. 63
(c) "Commission" means the State Bond Commission. 64
(2) (a) The commission, at one time, or from time to time, 65
may declare by resolution the necessity for issuance of general 66
obligation bonds of the State of Mississippi to provide funds for 67
the grant program authorized in Section 1 of this act. Upon the 68
adoption of a resolution by the Mississippi Development Authority, 69
declaring the necessity for the issuance of any part or all of the 70
general obligation bonds authorized by this subsection, the 71
Mississippi Development Authority shall deliver a certified copy 72
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of its resolution or resolutions to the commission. Upon receipt 73
of such resolution, the commission, in its discretion, may act as 74
the issuing agent, prescribe the form of the bonds, determine the 75
appropriate method for sale of the bonds, advertise for and accept 76
bids or negotiate the sale of the bonds, issue and sell the bonds 77
so authorized to be sold, and do any and all other things 78
necessary and advisable in connection with the issuance and sale 79
of such bonds. The total amount of bonds issued under this 80
section shall not exceed Fifteen Million Dollars ($15,000,000.00). 81
No bonds authorized under this section shall be issued after July 82
1, 2030. 83
(b) Any investment earnings on amounts deposited into 84
the special fund created in Section 1 of this act shall be used to 85
pay debt service on bonds issued under this section, in accordance 86
with the proceedings authorizing issuance of such bonds. 87
(3) The principal of and interest on the bonds authorized 88
under this section shall be payable in the manner provided in this 89
subsection. Such bonds shall bear such date or dates, be in such 90
denomination or denominations, bear interest at such rate or rates 91
(not to exceed the limits set forth in Section 75-17-101, 92
Mississippi Code of 1972), be payable at such place or places 93
within or without the State of Mississippi, shall mature 94
absolutely at such time or times not to exceed twenty-five (25) 95
years from date of issue, be redeemable before maturity at such 96
time or times and upon such terms, with or without premium, shall 97
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bear such registration privileges, and shall be substantially in 98
such form, all as shall be determined by resolution of the 99
commission. 100
(4) The bonds authorized by this section shall be signed by 101
the chairman of the commission, or by his facsimile signature, and 102
the official seal of the commission shall be affixed thereto, 103
attested by the secretary of the commission. The interest 104
coupons, if any, to be attached to such bonds may be executed by 105
the facsimile signatures of such officers. Whenever any such 106
bonds shall have been signed by the officials designated to sign 107
the bonds who were in office at the time of such signing but who 108
may have ceased to be such officers before the sale and delivery 109
of such bonds, or who may not have been in office on the date such 110
bonds may bear, the signatures of such officers upon such bonds 111
and coupons shall nevertheless be valid and sufficient for all 112
purposes and have the same effect as if the person so officially 113
signing such bonds had remained in office until their delivery to 114
the purchaser, or had been in office on the date such bonds may 115
bear. However, notwithstanding anything herein to the contrary, 116
such bonds may be issued as provided in the Registered Bond Act of 117
the State of Mississippi. 118
(5) All bonds and interest coupons issued under the 119
provisions of this section have all the qualities and incidents of 120
negotiable instruments under the provisions of the Uniform 121
Commercial Code, and in exercising the powers granted by this 122
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section, the commission shall not be required to and need not 123
comply with the provisions of the Uniform Commercial Code. 124
(6) The commission shall act as issuing agent for the bonds 125
authorized under this section, prescribe the form of the bonds, 126
determine the appropriate method for sale of the bonds, advertise 127
for and accept bids or negotiate the sale of the bonds, issue and 128
sell the bonds so authorized to be sold, pay all fees and costs 129
incurred in such issuance and sale, and do any and all other 130
things necessary and advisable in connection with the issuance and 131
sale of such bonds. The commission is authorized and empowered to 132
pay the costs that are incident to the sale, issuance and delivery 133
of the bonds authorized under this section from the proceeds 134
derived from the sale of such bonds. The commission may sell such 135
bonds on sealed bids at public sale or may negotiate the sale of 136
the bonds for such price as it may determine to be for the best 137
interest of the State of Mississippi. All interest accruing on 138
such bonds so issued shall be payable semiannually or annually. 139
If such bonds are sold by sealed bids at public sale, notice 140
of the sale shall be published at least one time, not less than 141
ten (10) days before the date of sale, and shall be so published 142
in one or more newspapers published or having a general 143
circulation in the City of Jackson, Mississippi, selected by the 144
commission. 145
The commission, when issuing any bonds under the authority of 146
this section, may provide that bonds, at the option of the State 147
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of Mississippi, may be called in for payment and redemption at the 148
call price named therein and accrued interest on such date or 149
dates named therein. 150
(7) The bonds issued under the provisions of this section 151
are general obligations of the State of Mississippi, and for the 152
payment thereof the full faith and credit of the State of 153
Mississippi is irrevocably pledged. If the funds appropriated by 154
the Legislature are insufficient to pay the principal of and the 155
interest on such bonds as they become due, then the deficiency 156
shall be paid by the State Treasurer from any funds in the State 157
Treasury not otherwise appropriated. All such bonds shall contain 158
recitals on their faces substantially covering the provisions of 159
this subsection. 160
(8) Upon the issuance and sale of bonds under the provisions 161
of this section, the commission shall transfer the proceeds of any 162
such sale or sales to the Rural Counties and Municipalities 163
Cellular and Broadband Fund created in Section 1 of this act. The 164
proceeds of such bonds shall be disbursed solely upon the order of 165
the Mississippi Development Authority under such restrictions, if 166
any, as may be contained in the resolution providing for the 167
issuance of the bonds. 168
(9) The bonds authorized under this section may be issued 169
without any other proceedings or the happening of any other 170
conditions or things other than those proceedings, conditions and 171
things which are specified or required by this section. Any 172
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resolution providing for the issuance of bonds under the 173
provisions of this section shall become effective immediately upon 174
its adoption by the commission, and any such resolution may be 175
adopted at any regular or special meeting of the commission by a 176
majority of its members. 177
(10) The bonds authorized under the authority of this 178
section may be validated in the Chancery Court of the First 179
Judicial District of Hinds County, Mississippi, in the manner and 180
with the force and effect provided by Chapter 13, Title 31, 181
Mississippi Code of 1972, for the validation of county, municipal, 182
school district and other bonds. The notice to taxpayers required 183
by such statutes shall be published in a newspaper published or 184
having a general circulation in the City of Jackson, Mississippi. 185
(11) Any holder of bonds issued under the provisions of this 186
section or of any of the interest coupons pertaining thereto may, 187
either at law or in equity, by suit, action, mandamus or other 188
proceeding, protect and enforce any and all rights granted under 189
this section, or under such resolution, and may enforce and compel 190
performance of all duties required by this section to be 191
performed, in order to provide for the payment of bonds and 192
interest thereon. 193
(12) All bonds issued under the provisions of this section 194
shall be legal investments for trustees and other fiduciaries, and 195
for savings banks, trust companies and insurance companies 196
organized under the laws of the State of Mississippi, and such 197
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bonds shall be legal securities which may be deposited with and 198
shall be received by all public officers and bodies of this state 199
and all municipalities and political subdivisions for the purpose 200
of securing the deposit of public funds. 201
(13) Bonds issued under the provisions of this section and 202
income therefrom shall be exempt from all taxation in the State of 203
Mississippi. 204
(14) The proceeds of the bonds issued under this section 205
shall be used solely for the purposes therein provided, including 206
the costs incident to the issuance and sale of such bonds. 207
(15) The State Treasurer is authorized, without further 208
process of law, to certify to the Department of Finance and 209
Administration the necessity for warrants, and the Department of 210
Finance and Administration is authorized and directed to issue 211
such warrants, in such amounts as may be necessary to pay when due 212
the principal of, premium, if any, and interest on, or the 213
accreted value of, all bonds issued under this section; and the 214
State Treasurer shall forward the necessary amount to the 215
designated place or places of payment of such bonds in ample time 216
to discharge such bonds, or the interest thereon, on the due dates 217
thereof. 218
(16) This section shall be deemed to be full and complete 219
authority for the exercise of the powers therein granted, but this 220
section shall not be deemed to repeal or to be in derogation of 221
any existing law of this state. 222
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ST: Bonds; create rural counties and
municipalities cellular and broadband grant
program and authorize issuance of bonds.
SECTION 3. This act shall take effect and be in force from 223
and after July 1, 2026. 224