Rural Water Oversight Committee; create and prescribe duties of.

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To: Energy
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Williams

SENATE BILL NO. 2526
(As Sent to Governor)

AN ACT TO CREATE THE MISSISSIPPI RURAL WATER OVERSIGHT 1
COMMITTEE; TO DEFINE TERMS; TO SET COMMITTEE MEMBERSHIP; TO 2
REQUIRE PROVIDERS TO OBTAIN A RATE STUDY AND CAPACITY STUDY BY 3
DECEMBER 1, 2027, AND EVERY FIVE YEARS THEREAFTER; TO PROVIDE 4
REQUIREMENTS FOR RATES; TO PROVIDE FOR MODIFICATION OF RATES 5
ACCORDING TO RATE STUDIES; TO REQUIRE PROVIDERS TO DEVELOP AN 6
ASSET MANAGEMENT PLAN BY DECEMBER 1, 2027; TO STIPULATE MINIMUM 7
REQUIREMENTS FOR SUCH ASSET MANAGEMENT PLAN; TO ALLOW THE 8
COMMITTEE TO PROMULGATE RULES AND REGULATIONS CONCERNING THE RATE 9
STUDIES, CAPACITY STUDIES AND ASSET MANAGEMENT PLANS; TO REQUIRE 10
PROVIDERS TO SET ASIDE A PORTION OF GROSS REVENUES FOR 11
REFURBISHMENT AND REPLACEMENT; TO REQUIRE THE COMMITTEE TO 12
MAINTAIN AN APPROVED LIST OF ENTITIES TO CONDUCT RATE STUDIES; TO 13
PROVIDE GUIDELINES FOR APPROVAL; TO REQUIRE A RATE STUDY OR 14
AMENDMENT BEFORE COMMENCEMENT OF A MAJOR DEVELOPMENT PROJECT; TO 15
REQUIRE RATE STUDIES TO BE FILED WITH THE STATE AUDITOR'S OFFICE; 16
TO DESCRIBE WHEN A PROVIDER IS IN FISCAL DISTRESS; TO REQUIRE THE 17
MISSISSIPPI STATE DEPARTMENT OF HEALTH TO MAINTAIN A LIST OF 18
PROVIDERS IN FISCAL DISTRESS; TO REQUIRE PROVIDERS IN FISCAL 19
DISTRESS TO FILE AN IMPROVEMENT PLAN; TO STIPULATE ACTIONS UPON 20
RECEIPT OF AN IMPROVEMENT PLAN; TO PROHIBIT FISCALLY DISTRESSED 21
PROVIDERS FROM RECEIVING CERTAIN STATE FINANCIAL ASSISTANCE UNTIL 22
AN IMPROVEMENT PLAN IS IN PLACE; TO PROVIDE FOR REMOVAL OF BOARD 23
MEMBERS UPON A FINDING OF FISCAL DISTRESS; TO REQUIRE PROVIDERS AT 24
75% CAPACITY TO TAKE CERTAIN ACTIONS; TO PROVIDE THAT NOTHING IN 25
THIS ACT SHALL BE CONSTRUED AS CONFLICTING WITH FEDERAL LAW; TO 26
AMEND SECTION 41-3-16, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR 27
PAYMENT OF NEW EMPLOYEES' ANNUAL SALARIES OUT OF THE LOCAL 28
GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN 29
FUND; AND FOR RELATED PURPOSES. 30
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 31
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SECTION 1. As used in this act, the following words shall 32
have the meanings ascribed herein unless context clearly requires 33
otherwise: 34
(a) "Committee" means the Mississippi Rural Water 35
Oversight Committee as created herein. 36
(b) "Provider" means any provider of retail water 37
service which is a rural water company. 38
(c) "Provider board" means the governing body of a 39
provider. 40
(d) "Asset management" means a process for maintaining 41
a desired level of customer service at the best appropriate cost 42
and involves systematic planning for all physical assets, 43
including, but not limited to, pipes, pumps, treatment plants and 44
storage facilities. 45
SECTION 2. (1) There is hereby established the Mississippi 46
Rural Water Oversight Committee. 47
(2) The committee shall consist of the following members: 48
(a) The Mississippi State Director of the United States 49
Department of Agriculture, or his or her designee; 50
(b) The Director of the Bureau of Public Water Supply 51
of the Mississippi State Department of Health, or his or her 52
designee; 53
(c) The Executive Director of the Mississippi 54
Department of Environmental Quality, or his or her designee; 55
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(d) A representative of the Drinking Water State 56
Revolving Fund, who shall be the same individual who represents 57
the Mississippi Rural Water Association on the Drinking Water 58
State Revolving Fund Board; 59
(e) The Chief Executive Officer of the Mississippi 60
Rural Water Association, or his or her designee; 61
(f) One (1) member to be appointed by the Governor of 62
the State of Mississippi; and 63
(g) One (1) member to be appointed by the Lieutenant 64
Governor of the State of Mississippi. 65
SECTION 3. (1) (a) By December 1, 2027, and every five (5) 66
years thereafter, each provider shall obtain a rate study and 67
capacity study. 68
(b) (i) Rates shall adequately address costs for: 69
1. Operation and maintenance; 70
2. Debt service; 71
3. Required reserves; 72
4. Depreciation; 73
5. Future capital expenses; 74
6. An annual audit or agreed-upon procedures 75
and compilation report; and 76
7. Other expenses as necessary. 77
(ii) 1. The rates recommended in the rate study 78
that is obtained and chosen by the provider shall be implemented 79
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by the provider in the manner provided under the applicable law 80
for modifying rates. 81
2. Except with regard to required reserves, 82
an increase in rates recommended in the rate study shall be 83
implemented within one (1) year of the receipt of the rate study. 84
3. If recommended rates increase the 85
provider's rates by fifty percent (50%) or more from the fiscal 86
year before the rate study was completed, the provider may phase 87
in the rate increase over a two-year period. 88
(2) By December 1, 2027, and every year thereafter, each 89
provider shall develop an asset management plan to be reported to 90
the committee. Plans should consider and account for, at minimum: 91
(a) The age, location, condition and value of all 92
physical assets; 93
(b) Performance expectations for water quality, 94
pressure and reliability; 95
(c) Customer service standards; 96
(d) Regular maintenance and replacement needs and 97
activities; 98
(e) Any maintenance schedules; 99
(f) Procedures and associated costs; 100
(g) Cost projections; and 101
(h) Revenue strategies for the future. 102
(3) By December 1, 2026, the committee shall promulgate 103
rules and regulations concerning the requirements of the rate 104
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study, the capacity study and the asset management plan as 105
described herein. The committee shall also determine an entity to 106
provide guidelines for the rate study and capacity study to use as 107
its basis. 108
(4) In order to effectuate the purposes of this act, the 109
committee shall be authorized to hire three (3) employees to 110
assist local providers with conducting the required rate and 111
capacity studies, as well as with development of the required 112
asset management plan. Subject to appropriation by the 113
Legislature for such purpose, such employees shall be paid an 114
annual salary via disbursement of Five Hundred Thousand Dollars 115
($500,000.00) made annually to the committee out of the Local 116
Governments and Rural Water Systems Improvements Revolving Loan 117
Fund as created in Section 41-3-16. Such monies shall be 118
disbursed according to all requirements set forth in Section 119
41-3-16 and any other applicable provision of law. 120
(5) A provider shall deposit a minimum of five percent (5%) 121
per annum of gross revenues in a dedicated refurbishment and 122
replacement account within twelve (12) months of implementation of 123
any rate described herein, unless a different amount is determined 124
by a rate study or unless depreciation is being funded in the 125
study. 126
(6) (a) The committee shall maintain an approved list of 127
entities to conduct rate studies required by this section, 128
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including the Mississippi Rural Water Association, professional 129
engineers, certified public accountants, economists and actuaries. 130
(b) If a provider chooses an entity to conduct the rate 131
study that is not on the approved list of entities, the entity is 132
required to have conducted at least one (1) rate study in the 133
state in the previous five-year period. 134
(7) New providers seeking approval from the committee shall: 135
(a) Demonstrate the ability to remain fiscally 136
sustainable; 137
(b) Complete a technical, financial and managerial 138
capacity review conducted by the committee. The committee shall 139
review the State Health Department's technical, financial and 140
managerial lists. Providers that receive a score of less than 141
seventy (70) points shall be reported to the committee; and 142
(c) The Chief Executive Officer of the Mississippi 143
Rural Water Association may report any provider to the committee 144
that it deems in violation of the Mississippi Nonprofit 145
Corporation Act. 146
(8) (a) A provider that plans to undertake a major 147
development project shall obtain a rate study or amend the 148
provider's existing rate study before beginning the major 149
development project to include consideration of the financial 150
impact of the major development project on the fiscal 151
sustainability of the provider. 152
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(b) As used in this subsection, "major development 153
project" means a project that exceeds twenty percent (20%) of 154
gross revenues of the provider for the immediately preceding 155
fiscal year. 156
(9) A provider shall file its most recent rate study 157
annually with the State Auditor's office at the same time the 158
provider files its audit report or agreed-upon procedures and 159
compilation report. 160
(10) (a) For the purposes of this section, a provider is in 161
fiscal distress if the provider: 162
(i) Fails to obtain a rate study as required under 163
this section; 164
(ii) Fails to implement a completed rate study as 165
required under this section; or 166
(iii) Has been found by the committee to be in 167
significant noncompliance with the rules of the committee because 168
of inadequate funds for operation and maintenance or inadequate 169
compliance with rules of the committee. 170
(b) The Mississippi State Department of Health shall 171
maintain and publish on the department's website a list of 172
providers in fiscal distress and/or significant noncompliance. 173
(c) The committee shall annually identify and notify a 174
provider if the provider is in fiscal distress. 175
(d) The provider may appeal the finding to the Circuit 176
Courts of Hinds County, Madison County or Rankin County. 177
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(11) (a) A provider found to be in fiscal distress shall 178
file an improvement plan with the committee within ninety (90) 179
days of a finding of fiscal distress. Such plan shall include, 180
but is not limited to including, specific action to be taken to 181
correct financial, technical and managerial deficiencies. 182
(b) (i) Upon receipt of the improvement plan, the 183
committee, or a party designated by the committee, shall review 184
the improvement plan and: 185
1. Approve the improvement plan in whole or 186
in part; 187
2. Modify the improvement plan; or 188
3. Deny the improvement plan. 189
(ii) At the time the committee determines that the 190
provider is no longer in fiscal distress, the committee shall 191
remove the fiscal distress designation and notify the provider. 192
(12) If a provider is found to be in fiscal distress, the 193
provider shall not receive state financial assistance for water 194
operations until an improvement plan that has been approved by the 195
committee is in place, unless the financial assistance is 196
immediately necessary to ensure preservation of the public peace, 197
health and safety, as determined by the committee. 198
(13) If the provider is found to be in fiscal distress, the 199
provider shall obtain written authorization from the committee 200
prior to: 201
(a) Incurring additional debt; 202
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(b) Accepting assistance for the refurbishment or 203
replacement of facilities or construction of facilities not within 204
the provider's improvement plan; or 205
(c) Transferring assets to another entity. 206
(14) If a provider is found to be in fiscal distress and the 207
board of such provider is nonfunctional, the committee shall 208
direct the Mississippi Rural Water Association, in conjunction 209
with the Mississippi Department of Health and the Secretary of 210
State, to use all laws available, including the Mississippi 211
Nonprofit Corporation Act, to remove or replace such board or 212
board members. 213
SECTION 4. (1) Upon reaching seventy-five percent (75%) of 214
a system's total capacity, providers shall make plans to upgrade 215
their utility to increase its capacity design. 216
(2) Upon commencement of places to upgrade a utility, 217
providers shall also update an asset management plan to prepare 218
such utilities for future economic growth. 219
(3) Any provider which fails to meet the requirements of 220
this subsection is subject to a statement of deficiency issued by 221
the Mississippi State Department of Health. 222
SECTION 5. Nothing in this act shall be construed to 223
conflict with the provisions of 7 USC Section 1926(b). 224
SECTION 6. Section 41-3-16, Mississippi Code of 1972, is 225
amended as follows: 226
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41-3-16. (1) (a) There is established a local governments 227
and rural water systems improvements revolving loan and grant 228
program to be administered by the State Department of Health, 229
referred to in this section as "department," for the purpose of 230
assisting counties, incorporated municipalities, the Pearl River 231
Valley Water Supply District, other districts and other water 232
organizations that have been granted tax-exempt status under 233
either federal or state law, in making improvements to their water 234
systems, including construction of new water systems or expansion 235
or repair of existing water systems. Loan and grant proceeds may 236
be used by the recipient for planning, professional services, 237
acquisition of interests in land, acquisition of personal 238
property, construction, construction-related services, 239
maintenance, and any other reasonable use which the board, in its 240
discretion, may allow. For purposes of this section, "water 241
systems" has the same meaning as the term "public water system" 242
under Section 41-26-3. 243
(b) (i) There is created a board to be known as the 244
"Local Governments and Rural Water Systems Improvements Board," 245
referred to in this section as "board," to be composed of the 246
following nine (9) members: the State Health Officer, or his 247
designee, who shall serve as chairman of the board; the Executive 248
Director of the Mississippi Development Authority, or his 249
designee; the Executive Director of the Department of 250
Environmental Quality, or his designee; the Executive Director of 251
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the Department of Finance and Administration, or his designee; the 252
Executive Director of the Mississippi Association of Supervisors, 253
or his designee; the Executive Director of the Mississippi 254
Municipal League, or his designee; the Executive Director of the 255
American Council of Engineering Companies of Mississippi, or his 256
designee; the State Director of the United States Department of 257
Agriculture, Rural Development, or his designee; and a manager of 258
a rural water system. 259
The Governor shall appoint a manager of a rural water system 260
from a list of candidates provided by the Executive Director of 261
the Mississippi Rural Water Association. The Executive Director 262
of the Mississippi Rural Water Association shall provide the 263
Governor a list of candidates which shall contain a minimum of 264
three (3) candidates for each appointment. 265
(ii) Nonappointed members of the board may 266
designate another representative of their agency or association to 267
serve as an alternate. 268
(iii) The gubernatorial appointee shall serve a 269
term concurrent with the term of the Governor and until a 270
successor is appointed and qualified. No member, officer or 271
employee of the Board of Directors of the Mississippi Rural Water 272
Association shall be eligible for appointment. 273
(c) The department, if requested by the board, shall 274
furnish the board with facilities and staff as needed to 275
administer this section. The department may contract, upon 276
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approval by the board, for those facilities and staff needed to 277
administer this section, including routine management, as it deems 278
necessary. The board may advertise for or solicit proposals from 279
public or private sources, or both, for administration of this 280
section or any services required for administration of this 281
section or any portion thereof. It is the intent of the 282
Legislature that the board endeavors to ensure that the costs of 283
administration of this section are as low as possible in order to 284
provide the water consumers of Mississippi safe drinking water at 285
affordable prices. 286
(d) Members of the board may not receive any salary, 287
compensation or per diem for the performance of their duties under 288
this section. 289
(2) (a) There is created a special fund in the State 290
Treasury to be designated as the "Local Governments and Rural 291
Water Systems Improvements Revolving Loan Fund," referred to in 292
this section as "revolving fund," which fund shall consist of 293
those monies as provided in Sections 6 and 13 of Chapter 521, Laws 294
of 1995. The revolving fund may receive appropriations, bond 295
proceeds, grants, gifts, donations or funds from any source, 296
public or private. Except as otherwise provided in this section, 297
the revolving fund shall be credited with all repayments of 298
principal and interest derived from loans made from the revolving 299
fund. Except as otherwise provided in this section, the monies in 300
the revolving fund may be expended only in amounts appropriated by 301
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the Legislature, and the different amounts specifically provided 302
for the loan program and the grant program shall be so designated. 303
Except as otherwise provided in this section, monies in the fund 304
may only be expended for the grant program from the amount 305
designated for such program. The revolving fund shall be 306
maintained in perpetuity for the purposes established in this 307
section and Sections 6 through 20 of Chapter 521, Laws of 1995. 308
Unexpended amounts remaining in the revolving fund at the end of a 309
fiscal year shall not lapse into the State General Fund, and any 310
interest earned on amounts in the revolving fund shall be 311
deposited to the credit of the fund. Monies in the revolving fund 312
may not be used or expended for any purpose except as authorized 313
under this section and Sections 6 through 20 of Chapter 521, Laws 314
of 1995. Any monies in the fund may be used to match any federal 315
funds that are available for the same or related purposes for 316
which funds are used and expended under this section and Sections 317
6 through 20 of Chapter 521, Laws of 1995. Any federal funds 318
shall be used and expended only in accordance with federal laws, 319
rules and regulations governing the expenditure of those funds. 320
No person shall use any monies from the revolving fund for the 321
acquisition of real property or any interest in real property 322
unless that property is integral to the project funded under this 323
section and the purchase is made from a willing seller. No 324
county, incorporated municipality or district shall acquire any 325
real property or any interest in any real property for a project 326
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funded through the revolving fund by condemnation. The board's 327
application of Sections 43-37-1 through 43-37-13 shall be no more 328
stringent or extensive in scope, coverage and effect than federal 329
property acquisition laws and regulations. 330
(b) There is created a special fund in the State 331
Treasury to be designated as the "Local Governments and Rural 332
Water Systems Emergency Loan Fund," hereinafter referred to as 333
"emergency fund," which fund shall consist of those monies as 334
provided in Sections 6 and 13 of Chapter 521, Laws of 1995. The 335
emergency fund may receive appropriations, bond proceeds, grants, 336
gifts, donations or funds from any source, public or private. 337
Except as otherwise provided in this section, the emergency fund 338
shall be credited with all repayments of principal and interest 339
derived from loans made from the emergency fund. Except as 340
otherwise provided in this section, the monies in the emergency 341
fund may be expended only in amounts appropriated by the 342
Legislature. The emergency fund shall be maintained in perpetuity 343
for the purposes established in this section and Section 6 of 344
Chapter 521, Laws of 1995. Unexpended amounts remaining in the 345
emergency fund at the end of a fiscal year shall not lapse into 346
the State General Fund. Any interest earned on amounts in the 347
emergency fund shall be deposited to the credit of the fund. 348
Monies in the emergency fund may not be used or expended for any 349
purpose except as authorized under this section and Section 6 of 350
Chapter 521, Laws of 1995. 351
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(c) The board created in subsection (1) shall establish 352
loan and grant programs by which loans and grants may be made 353
available to counties, incorporated municipalities, districts or 354
other water organizations that have been granted tax-exempt status 355
under either federal or state law, to assist those counties, 356
incorporated municipalities, districts or water organizations in 357
making water systems improvements, including the construction of 358
new water systems or expansion or repair of existing water 359
systems. Any entity eligible under this section may receive 360
either a loan or a grant, or both. No grant awarded under the 361
program established in this section may be made using funds from 362
the loan program. Grants may be awarded only when the Legislature 363
specifically appropriates funds for that particular purpose. The 364
interest rate on those loans may vary from time to time and from 365
loan to loan, and will be at or below market interest rates as 366
determined by the board. The board shall act as quickly as is 367
practicable and prudent in deciding on any loan request that it 368
receives. Loans from the revolving fund or emergency fund may be 369
made to counties, incorporated municipalities, districts or other 370
water organizations that have been granted tax-exempt status under 371
either federal or state law, as set forth in a loan agreement in 372
amounts not to exceed one hundred percent (100%) of eligible 373
project costs as established by the board. The board may require 374
county, municipal, district or other water organization 375
participation or funding from other sources, or otherwise limit 376
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the percentage of costs covered by loans from the revolving fund 377
or the emergency fund. The board may establish a maximum amount 378
for any loan from the revolving fund or emergency fund in order to 379
provide for broad and equitable participation in the programs. 380
(d) A county that receives a loan from the revolving 381
fund or the emergency fund shall pledge for repayment of the loan 382
any part of the homestead exemption annual tax loss reimbursement 383
to which it may be entitled under Section 27-33-77, as may be 384
required to meet the repayment schedule contained in the loan 385
agreement. An incorporated municipality that receives a loan from 386
the revolving fund or the emergency fund shall pledge for 387
repayment of the loan any part of the sales tax revenue 388
distribution to which it may be entitled under Section 27-65-75, 389
as may be required to meet the repayment schedule contained in the 390
loan agreement. All recipients of such loans shall establish a 391
dedicated source of revenue for repayment of the loan. Before any 392
county or incorporated municipality shall receive any loan, it 393
shall have executed with the Department of Revenue and the board a 394
loan agreement evidencing that loan. The loan agreement shall not 395
be construed to prohibit any recipient from prepaying any part or 396
all of the funds received. The repayment schedule in each loan 397
agreement shall provide for (i) monthly payments, (ii) semiannual 398
payments, or (iii) other periodic payments, the annual total of 399
which shall not exceed the annual total for any other year of the 400
loan by more than fifteen percent (15%). Except as otherwise 401
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provided in subsection (4) of this section, the loan agreement 402
shall provide for the repayment of all funds received from the 403
revolving fund within not more than fifteen (15) years or a term 404
as otherwise allowed by the federal Safe Drinking Water Act, and 405
all funds received from the emergency fund within not more than 406
five (5) years from the date of project completion, and any 407
repayment shall commence not later than one (1) year after project 408
completion. The Department of Revenue shall withhold semiannually 409
from counties and monthly from incorporated municipalities from 410
the amount to be remitted to the county or municipality, a sum 411
equal to the next repayment as provided in the loan agreement. 412
(e) Any county, incorporated municipality, district or 413
other water organization desiring to construct a project approved 414
by the board which receives a loan from the state for that purpose 415
but which is not eligible to pledge for repayment under the 416
provisions of paragraph (d) of this subsection shall repay that 417
loan by making payments each month to the State Treasurer through 418
the Department of Finance and Administration for and on behalf of 419
the board according to Section 7-7-15, to be credited to either 420
the revolving fund or the emergency fund, whichever is 421
appropriate, in lieu of pledging homestead exemption annual tax 422
loss reimbursement or sales tax revenue distribution. 423
Loan repayments shall be according to a repayment schedule 424
contained in each loan agreement as provided in paragraph (d) of 425
this subsection. 426
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(f) Any district created pursuant to Sections 19-5-151 427
through 19-5-207 that receives a loan from the revolving fund or 428
the emergency fund shall pledge for repayment of the loan any part 429
of the revenues received by that district pursuant to Sections 430
19-5-151 through 19-5-207, as may be required to meet the 431
repayment schedule contained in the loan agreement. 432
(g) The State Auditor, upon request of the board, shall 433
audit the receipts and expenditures of a county, an incorporated 434
municipality, district or other water organization whose loan 435
repayments appear to be in arrears, and if the auditor finds that 436
the county, incorporated municipality, district or other water 437
organization is in arrears in those repayments, the auditor shall 438
immediately notify the chairman of the board who may take any 439
action as may be necessary to enforce the terms of the loan 440
agreement, including liquidation and enforcement of the security 441
given for repayment of the loan, and the Executive Director of the 442
Department of Finance and Administration who shall withhold all 443
future payments to the county of homestead exemption annual tax 444
loss reimbursements under Section 27-33-77 and all sums allocated 445
to the county or the incorporated municipality under Section 446
27-65-75 until such time as the county or the incorporated 447
municipality is again current in its loan repayments as certified 448
by the board. 449
(h) Subject to appropriation by the Legislature, the 450
Local Governments and Rural Water Systems Improvements Revolving 451
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Loan Fund created in paragraph (a) of this subsection (2) shall 452
disburse monies for the purpose of paying the annual salaries of 453
three (3) employees hired by a statewide nonprofit organization 454
with an established circuit rider program. Such disbursement 455
shall be not less than Five Hundred Thousand Dollars ($500,000.00) 456
annually, to be divided equitably per salary according to such 457
organization's determination. This paragraph (h) shall stand 458
repealed on July 1, 2031. 459
( * * *i) Except as otherwise provided in this section, 460
all monies deposited in the revolving fund or the emergency fund, 461
including loan repayments and interest earned on those repayments, 462
shall be used only for providing loans or other financial 463
assistance to water systems as the board deems appropriate. In 464
addition, any amounts in the revolving fund or the emergency fund 465
may be used to defray the reasonable costs of administering the 466
revolving fund or the emergency fund and conducting activities 467
under this section and Sections 6 through 20 of Chapter 521, Laws 468
of 1995, subject to any limitations established in the federal 469
Safe Drinking Water Act, as amended and subject to annual 470
appropriation by the Legislature. The department is authorized, 471
upon approval by the board, to use amounts available to it from 472
the revolving fund or the emergency fund to contract for those 473
facilities and staff needed to administer and provide routine 474
management for the funds and loan program. However, 475
notwithstanding any other provision of law to the contrary, all or 476
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any portion of repayments of principal and interest derived from 477
the fund uses described in this section may be designated or 478
pledged for repayment of a loan as provided for in Section 479
31-25-28 in connection with a loan from the Mississippi 480
Development Bank. 481
(3) In administering this section and Sections 6 through 20 482
of Chapter 521, Laws of 1995, the board created in subsection (1) 483
of this section shall have the following powers and duties: 484
(a) To supervise the use of all funds made available 485
under this section and Sections 6 through 20 of Chapter 521, Laws 486
of 1995, for local governments and rural water systems 487
improvements; 488
(b) To promulgate rules and regulations, to make 489
variances and exceptions thereto, and to establish procedures in 490
accordance with this section and Sections 6 through 20 of Chapter 491
521, Laws of 1995, for the implementation of the local governments 492
and rural water systems improvements revolving loan program; 493
(c) To require, at the board's discretion, any loan or 494
grant recipient to impose a per connection fee or surcharge or 495
amended water rate schedule or tariff on each customer or any 496
class of customers, benefiting from an improvement financed by a 497
loan or grant made under this section, for repayment of any loan 498
funds provided under this section and Sections 6 through 20 of 499
Chapter 521, Laws of 1995. The board may require any loan or 500
grant recipient to undergo a water system viability analysis and 501
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may require a loan or grant recipient to implement any result of 502
the viability analysis. If the loan recipient fails to implement 503
any result of a viability analysis as required by the board, the 504
board may impose a monetary penalty or increase the interest rate 505
on the loan, or both. If the grant recipient fails to implement 506
any result of a viability analysis as required by the board, the 507
board may impose a monetary penalty on the grant; 508
(d) To review and certify all projects for which funds 509
are authorized to be made available under this section and 510
Sections 6 through 20 of Chapter 521, Laws of 1995, for local 511
governments and rural water systems improvements; 512
(e) To requisition monies in the Local Governments and 513
Rural Water Systems Improvements Revolving Loan Fund and the Local 514
Governments and Rural Water Systems Emergency Loan Fund and 515
distribute those monies on a project-by-project basis in 516
accordance with this section; 517
(f) To ensure that the funds made available under this 518
section and Sections 6 through 20 of Chapter 521, Laws of 1995, to 519
a county, an incorporated municipality, a district or a water 520
organization that has been granted tax-exempt status under either 521
federal or state law provide for a distribution of projects and 522
funds among the entities under a priority system established by 523
the board; 524
(g) To maintain in accordance with generally accepted 525
government accounting standards an accurate record of all monies 526
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in the revolving fund and the emergency fund made available to 527
counties, incorporated municipalities, districts or other water 528
organizations under this section and Sections 6 through 20 of 529
Chapter 521, Laws of 1995, and the costs for each project; 530
(h) To establish policies, procedures and requirements 531
concerning viability and financial capability to repay loans that 532
may be used in approving loans available under this section, 533
including a requirement that all loan recipients have a rate 534
structure which will be sufficient to cover the costs of 535
operation, maintenance, major equipment replacement and repayment 536
of any loans made under this section; and 537
(i) To file annually with the Legislature a report 538
detailing how monies in the Local Governments and Rural Water 539
Systems Improvements Revolving Loan Fund and the Local Governments 540
and Rural Water Systems Emergency Loan Fund were spent during the 541
preceding fiscal year in each county, incorporated municipality, 542
district or other water organization, the number of projects 543
approved and constructed, and the cost of each project. 544
For efficient and effective administration of the loan 545
program, revolving fund and emergency fund, the board may 546
authorize the department or the State Health Officer to carry out 547
any or all of the powers and duties enumerated above. 548
(4) The board may, on a case-by-case basis and to the extent 549
allowed by federal law, renegotiate the payment of principal and 550
interest on loans made under this section to the six (6) most 551
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ST: Rural Water Oversight Committee; create and
prescribe duties of.
southern counties of the state covered by the Presidential 552
Declaration of Major Disaster for the State of Mississippi 553
(FEMA-1604-DR) dated August 29, 2005, and to incorporated 554
municipalities, districts or other water organizations located in 555
such counties; however, the interest on the loans shall not be 556
forgiven for a period of more than twenty-four (24) months and the 557
maturity of the loans shall not be extended for a period of more 558
than forty-eight (48) months. 559
SECTION 7. This act shall take effect and be in force from 560
and after July 1, 2026. 561