Metro Jackson Water Authority Act; enact.

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To: Energy
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Michel

SENATE BILL NO. 2611

AN ACT TO CREATE THE METRO JACKSON WATER AUTHORITY ACT; TO 1
DEFINE CERTAIN TERMS RELATING TO THIS ACT; TO ESTABLISH THE METRO 2
JACKSON WATER AUTHORITY; TO PROVIDE FOR THE COMPOSITION AND TERMS 3
OF THE BOARD OF DIRECTORS OF THE METRO JACKSON WATER AUTHORITY; TO 4
REQUIRE THE AUTHORITY TO NEGOTIATE WITH THE CITY OF JACKSON TO 5
ENTER INTO AN AGREEMENT FOR THE TRANSFER OF THE WATER SYSTEM BY 6
LEASE TO THE AUTHORITY; TO PROVIDE FOR THE APPOINTMENT OF A 7
PRESIDENT OF THE AUTHORITY WITHIN A CERTAIN TIME PERIOD; TO 8
PROVIDE POWERS AND DUTIES OF THE AUTHORITY; TO REQUIRE THE 9
PRESIDENT OF THE AUTHORITY TO SUPERVISE ALL ADMINISTRATIVE AND 10
TECHNICAL ACTIVITIES AS PROVIDED IN THIS ACT; TO PROVIDE THAT 11
EMPLOYEES OF THE AUTHORITY SERVE AT THE WILL AND PLEASURE OF THE 12
PRESIDENT; TO REQUIRE THE AUTHORITY TO ENTER INTO CONTRACTS FOR 13
MAJOR PROCUREMENTS ONLY AFTER A COMPETITIVE AND OPEN PROCUREMENT 14
PROCESS; TO REQUIRE THAT MONIES RECEIVED BE DEPOSITED INTO CERTAIN 15
OPERATING ACCOUNTS; TO PROVIDE THAT DIVISION HEADS, OFFICERS AND 16
EMPLOYEES OF THE AUTHORITY ARE PUBLIC SERVANTS; TO AUTHORIZE ANY 17
PUBLIC AGENCY TO ENTER INTO CERTAIN CONTRACTS WITH THE AUTHORITY; 18
TO PROVIDE CERTAIN PROVISIONS RELATING TO PUBLIC CONVENIENCE AND 19
NECESSITY; TO AUTHORIZE THE AUTHORITY TO BORROW MONEY AND ISSUE 20
BONDS AND INTERIM NOTES; TO AUTHORIZE THE AUTHORITY TO PROVIDE FOR 21
THE APPOINTMENT OF A TRUSTEE TO REPRESENT THE REGISTERED OWNERS OF 22
ANY ISSUE OF BONDS IN THE ENFORCEMENT OR PROTECTION OF THEIR 23
RIGHTS UNDER ANY SUCH RESOLUTION, TRUST INDENTURE OR SECURITY 24
INSTRUMENT; TO PROVIDE THAT THE AUTHORITY IS NOT REQUIRED TO PAY 25
ANY TAX OR ASSESSMENT ON ANY PROPERTY OWNED BY THE AUTHORITY OR 26
UPON ANY INCOME THEREFROM; TO PROVIDE THAT THE STATE, COUNTY, 27
MUNICIPALITIES OR PUBLIC AGENCIES WITHIN THE GEOGRAPHIC BOUNDARIES 28
OF THE AUTHORITY ARE AUTHORIZED TO ADVANCE, AT ANY TIME, SUCH 29
FUNDS WHICH IN THEIR DISCRETION ARE NECESSARY, OR BORROW SUCH 30
FUNDS BY ISSUANCE OF NOTES, FOR INITIAL CAPITAL CONTRIBUTION, AND 31
TO COVER START-UP COSTS UNTIL SUCH TIMES AS SUFFICIENT BONDS, 32
ASSETS AND REVENUES HAVE BEEN SECURED TO SATISFY THE NEEDS OF THE 33
AUTHORITY FOR ITS MANAGEMENT, OPERATION AND FORMATION; TO BRING 34
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FORWARD SECTION 21-19-1, MISSISSIPPI CODE OF 1972, WHICH RELATES 35
TO THE ROLE OF MUNICIPAL GOVERNING AUTHORITIES, FOR PURPOSE OF 36
POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 21-19-2, MISSISSIPPI 37
CODE OF 1972, WHICH RELATES TO THE COLLECTION OF FEES AND CHARGES, 38
FOR PURPOSE OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 39
27-65-241, MISSISSIPPI CODE OF 1972, WHICH RELATES TO SPECIAL 40
SALES TAXES FOR MUNICIPALITIES, FOR PURPOSE OF POSSIBLE AMENDMENT; 41
TO BRING FORWARD SECTIONS 21-27-11, 21-27-13, 21-27-15, 21-27-17, 42
21-27-19, 21-27-21, 21-27-23, 21-27-25, 21-27-27, 21-27-29, 43
21-27-31, 21-27-33, 21-27-35, 21-27-37, 21-27-39, 21-27-40, 44
21-27-41, 21-27-43, 21-27-45, 21-27-47, 21-27-49, 21-27-51, 45
21-27-53, 21-27-55, 21-27-57, 21-27-59, 21-27-61, 21-27-63, 46
21-27-65, 21-27-67, 21-27-69, 21-27-71, 21-27-73 AND 21-27-75, 47
MISSISSIPPI CODE OF 1972, WHICH RELATE TO MUNICIPALLY OWNED 48
UTILITIES, FOR PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD 49
SECTIONS 21-33-45 AND 27-39-307, MISSISSIPPI CODE OF 1972, WHICH 50
RELATE TO MUNICIPAL AD VALOREM TAXES, FOR PURPOSES OF POSSIBLE 51
AMENDMENT; AND FOR RELATED PURPOSES. 52
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 53
SECTION 1. This act shall be known and may be cited as the 54
"Metro Jackson Water Authority Act". 55
SECTION 2. (1) The Mississippi Legislature finds the 56
following: 57
(a) For the benefit of the citizens centrally located 58
in the State of Mississippi, including citizens residing or 59
working in the capital city of the State of Mississippi, it is 60
essential to have access to safe, clean and reliable water and 61
wastewater systems at affordable, regulated rates which are just, 62
reasonable and provide an adequate amount of capital to keep such 63
systems in good repair; 64
(b) The availability of safe, clean and reliable water 65
and wastewater systems has vast impacts on health, schools and 66
academic outcomes, crime and safety, state and local government 67
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operations, businesses and economic development, the availability 68
of a workforce, tourism and many other critical areas; 69
(c) The availability of safe, clean and reliable water 70
and wastewater systems requires significant financial resources 71
and human capital to engage in the planning, acquisition, 72
construction, maintenance, coordination and operation required to 73
deliver transparent and efficient services, which meet and exceed 74
federal and state regulations and requirements; 75
(d) On November 29, 2022, the Department of Justice 76
filed a complaint alleging that the City of Jackson failed to 77
provide drinking water that was reliably compliant with the Safe 78
Drinking Water Act to citizens within the boundaries of the water 79
system. The Department of Justice simultaneously filed a proposal 80
which would appoint an interim third-party manager to stabilize 81
the City of Jackson's public drinking water system and build 82
confidence in the water system's ability to supply safe, clean and 83
reliable water to citizens within the boundaries of the water 84
system. The U.S. District Court for the Southern District of 85
Mississippi issued an interim stipulated order that appointed an 86
interim third-party manager to oversee and operate the water 87
system on November 29, 2022; 88
(e) On or about September 30, 2023, the U.S. District 89
Court for the Southern District of Mississippi issued a stipulated 90
order that placed the City of Jackson's sewer and wastewater 91
systems into interim third-party managership; 92
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(f) The November 29, 2022, order appointing the interim 93
third-party manager for the public drinking water system does not 94
have a termination date and ends only when final judgment is 95
entered by the court; 96
(g) The September 30, 2023, order appointing the 97
interim third-party manager for the sewer and wastewater system 98
terminates on September 30, 2027, unless such order is earlier 99
terminated or extended by the court; 100
(h) Before the termination of the orders by the court, 101
the system must be stable, the financial plan sustainable and the 102
transition plan approved in order to transition the system to 103
post-interim third-party managership operations; 104
(i) The creation and organization of a structure for 105
future governance requires legislation in order for it to continue 106
in perpetuity beyond the eventual end of the interim third-party 107
manager's work and related federal court orders; and 108
(j) The creation and organization of a structure for 109
future governance prior to the date of the conclusion of the 110
interim third-party manager's work will allow for an orderly 111
transition to ensure minimal disruption in water and wastewater 112
service. 113
(2) Therefore, it is the intent of the Mississippi 114
Legislature to: 115
(a) Provide the Metro Jackson Water Authority the 116
ability to lease the existing water and wastewater assets from the 117
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city and, upon lease of such assets and termination of the interim 118
third-party managership by the court, or an earlier date as 119
ordered by the court, the water and wastewater assets shall be 120
under the authority's management and control to ensure all 121
citizens have access to safe, clean and reliable water and 122
wastewater systems at affordable, just and reasonable regulated 123
rates and to provide an adequate amount of capital to keep such 124
systems in good repair; 125
(b) Authorize the Local Governments and Rural Water 126
Systems Improvement Board, as created in Section 41-3-16, 127
Mississippi Code of 1972, to loan to the authority any funds 128
required in connection with the authority's acquisition of the 129
leasehold interest in water assets as provided in this subsection 130
(2) of this section or any funds needed to satisfy any short-term 131
cash flow demands or deficiencies or to cover start-up costs of 132
the authority with respect to such assets at an interest rate of 133
zero percent (0%) with a forty-year term applying the maximum 134
principal forgiveness available; 135
(c) Authorize the Department of Environmental Quality 136
to loan to the authority any funds requested in connection with 137
the authority's acquisition of the leasehold interest in 138
wastewater assets as authorized in this subsection (2) of this 139
section or any funds needed to satisfy any short-term cash flow 140
demands or deficiencies or to cover start-up costs of the 141
authority with respect to such assets at an interest rate of zero 142
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percent (0%) with a forty-year term applying the maximum principal 143
forgiveness available; 144
(d) Authorize the authority, upon its establishment 145
under this act, to issue bonds to refinance the system debts 146
existing as of July 1, 2026, which bonds may be secured by and 147
payable from one or more sources of non-system revenues made 148
available to the authority for such purpose, provided that such 149
bonds shall never constitute a debt, liability or loan of the 150
credit of the state or any political subdivision thereof under the 151
Constitution of the state and laws of the state or a pledge of the 152
faith, credit or taxing power of the state or any political 153
subdivision thereof; and 154
(e) Authorize the authority and the Department of 155
Health, the Department of Environmental Quality, the City of 156
Jackson and other municipalities or governmental entities within 157
the service area of the authority, and any other federal, state or 158
local entity to partner with each other in taking any action 159
necessary under this act to ensure all citizens have access to 160
safe, clean and reliable water and wastewater systems, with the 161
understanding that federal and state agencies are solely 162
responsible for regulating, but not operating, the authority. 163
SECTION 3. As used in this act, the following words and 164
phrases have the meanings provided in this section, unless the 165
context clearly indicates otherwise: 166
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(a) "Authority" means the public benefit corporation 167
created by Section 4 of this act, known as the Metro Jackson Water 168
Authority. 169
(b) "Board" means the Board of Directors of the Metro 170
Jackson Water Authority. 171
(c) "Bonds" means bonds, notes and other indebtedness 172
issued by the authority pursuant to this act, and the provisions 173
of this act relating to bonds and bondholders shall apply with 174
equal force and effect to notes and noteholders, respectively, 175
unless the context clearly requires otherwise. 176
(d) "City" means the City of Jackson. 177
(e) "Court" means the U.S. District Court for the 178
Southern District of Mississippi. 179
(f) "Fiscal year" means the period of time beginning on 180
July 1 of each year and ending on June 30 of each year. 181
(g) "ITPM" means the interim third-party manager for 182
the systems initially appointed by the court on November 29, 2022, 183
to oversee and operate the systems. 184
(h) "Major procurement" means the procurement of any 185
good or service in excess of One Million Dollars ($1,000,000.00). 186
(i) "Mayor" means the Mayor of the City of Jackson. 187
(j) "Person" shall mean any person, firm, partnership, 188
association, limited liability company or corporation organized or 189
existing under the laws of the state or any other state. 190
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(k) "Project" means the construction, development or 191
acquisition by the authority of any infrastructure for water, 192
wastewater and storm water systems or services and includes the 193
upgrading or repair of existing systems. 194
(l) "Public agency" means any county, municipality, 195
state board or utility authority owning or operating properties, 196
districts created pursuant to the general laws or local and 197
private laws of the state, or any other political subdivision of 198
the state possessing the power to own and operate waterworks, 199
water supply systems, sewerage systems, sewage treatment systems 200
or other facilities or systems for the collection, transportation 201
and treatment of water, wastewater and storm water. 202
(m) "State" means the State of Mississippi. 203
(n) "State agency" means any state office, department, 204
board, commission, bureau or division, or other agency or 205
instrumentality of the state. 206
(o) "Storm water" means any flow occurring during or 207
following any form of natural precipitation and resulting from 208
that precipitation. 209
(p) "System" or "systems" means any plants, structures, 210
facilities or other real or personal property used or useful in 211
the generation, storage, transportation or supply of water, and 212
the collection, transportation, treatment or disposal of 213
wastewater and storm water, including, but not limited to, tanks, 214
pipes, trunk lines, mains, sewers, conduits, pipelines, pumping 215
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and ventilating stations, plants, works, connections and any other 216
real or personal property and rights therein necessary, useful or 217
convenient for the purposes of the authority. 218
(q) "Wastewater" means water being disposed of by any 219
person and which is contaminated with waste or sewage, including 220
industrial, municipal and any other wastewater or storm water that 221
may cause impairment of the quality of waters in the state. 222
(r) "Water" means potable water from either surface water or 223
groundwater sources. 224
SECTION 4. (1) There is hereby created and established a 225
corporation known as the Metro Jackson Water Authority for public 226
purposes and charged with the duties and having the powers 227
provided in this act. The authority shall be a body corporate and 228
politic constituting a public benefit corporation. The authority 229
will be composed of geographic areas receiving water and 230
wastewater services from the city as of January 1, 2026, for the 231
planning, acquisition, construction, maintenance, operation and 232
coordination of water and wastewater systems in order to ensure 233
the delivery of water and wastewater services to citizens. Such 234
authority is created solely to accomplish the purposes under this 235
act, and the authority's exercise of the powers conferred by this 236
act shall be deemed and held to be the performance of an essential 237
public function promoting the health, welfare and prosperity of 238
the general public. It is the intent of the Legislature that the 239
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authority shall be accountable to ratepayers within the systems 240
through the audits, reports and disclosures required by this act. 241
(2) The existence of the public benefit corporation, which 242
shall be domiciled in the state, shall begin upon the appointment 243
of a majority of its board as provided in Section 5 of this act. 244
(3) The transfer by lease of the water and wastewater system 245
to the authority from the city shall be accomplished as provided 246
in Section 6 of this act. 247
(4) The authority shall assume management and control over 248
the water and wastewater systems on the date of termination of the 249
interim third-party managership by the court, or with respect to 250
any specific functions, on an earlier date as ordered by the 251
court. If the termination date is not the same for all systems or 252
functions, the authority shall assume management and control over 253
the system or functions for which the interim third-party 254
managership is terminated on the termination date for that system 255
or function. 256
(5) In the event of any action or matter against the 257
authority, the Chief Justice of the Mississippi Supreme Court 258
shall select an appropriate circuit or chancery court, which shall 259
have exclusive jurisdiction over the matter. The authority shall 260
be deemed to constitute a private corporation solely for purposes 261
of court costs. 262
(6) All funds provided by the federal government in H.R. 263
2617, the Consolidated Appropriations Act of 2023, and any other 264
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funds provided by the state or federal government in response to 265
the water crisis detailed by the court in Case No. 3:22-cv-00686, 266
United States v. City of Jackson, shall be spent according to the 267
direction of the ITPM until the authority assumes management and 268
control of the water and wastewater systems or certain functions 269
thereof and in accordance with federal law. 270
SECTION 5. (1) The affairs of the authority shall be 271
administered by the board. The board shall be composed of 272
thirteen (13) members as follows: 273
(a) Member 1, the Mayor of the City of Jackson, or his 274
or her designee; 275
(b) Member 2, the Mayor of the City of Byram, or his or 276
her designee; 277
(c) Member 3, the Mayor of the City of Ridgeland, or 278
his or her designee; 279
(d) Two (2) members of the public to be appointed by 280
the Mayor of the City of Jackson as follows: 281
(i) Member 4, an at-large appointee who lives or 282
works in the service area; and 283
(ii) Member 5, an at-large appointee who lives or 284
works in the service area; 285
(e) Member 6, one (1) public member at-large appointee 286
who lives or works in the service area, to be appointed by the 287
City Council of the City of Jackson by a majority vote; 288
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(f) Member 7, one (1) public member at-large appointee 289
who lives or works in the service area, to be appointed by the 290
Hinds County Board of Supervisors by a majority vote; 291
(g) Three (3) members of the public to be appointed by 292
the Governor as follows: 293
(i) Member 8, an employee of a large healthcare 294
facility within the service area; 295
(ii) Member 9, an owner of a restaurant located in 296
the service area; and 297
(iii) Member 10, an at-large appointee who lives 298
or works in the service area; 299
(h) Two (2) members of the public to be appointed by 300
the Lieutenant Governor as follows: 301
(i) Member 11, an employee of a post-secondary 302
institution within the service area; and 303
(ii) Member 12, an employee of a large 304
nonhealthcare business with a minimum of two hundred (200) 305
employees working in facilities located in the service area; and 306
(i) Member 13, the Executive Director of the 307
Mississippi Department of Finance and Administration. 308
All initial public members shall be appointed by May 1, 2026, 309
and all gubernatorial appointees shall be subject to the advice 310
and consent of the Senate. 311
The Mayor of the City of Jackson, the Mayor of the City of 312
Byram, the Mayor of the City of Ridgeland and the Executive 313
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Director of the Department of Finance and Administration each may 314
appoint a person or persons to represent such Mayor or Director, 315
respectively, at all meetings of the board from which such Mayor 316
or Director, as the case may be, may be absent. Any such 317
representative so designated shall have the power to attend and to 318
vote at any meeting of the board with the same force and effect as 319
if the member designating him were present and voting. 320
For members of the public subject to the appointment process, 321
appointing authorities shall attempt to see that all portions of 322
society and its diversity are represented in members of the 323
authority. All appointed members must be residents of the state 324
and must have significant, demonstrated experience in at least one 325
of the following areas: business management, fiscal affairs, 326
public finance, public health, engineering, or public utilities. 327
No current or former federal, state or local elected officials may 328
be appointed. 329
(2) The initial terms of the gubernatorial appointees to the 330
board shall be as follows: The Governor shall appoint member 8 331
for a term of four (4) years, member 9 for a term of three (3) 332
years, and member 10 for a term of two (2) years. The Lieutenant 333
Governor shall appoint member 11 for a term of four (4) years and 334
member 12 for a term of three (3) years. 335
(3) Except as provided in subsection (2) of this section, 336
appointments shall be for a term of four (4) years. Each member 337
shall serve at the will and pleasure of his or her appointing 338
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authority and hold office until his successor has been appointed 339
and qualified. 340
Vacancies occurring otherwise than by expiration of term of 341
office shall be filled by appointment by the appropriate 342
appointing authority, subject to the advice and consent of the 343
Senate for the gubernatorial appointees, for the length of the 344
unexpired term only. Any member of the authority shall be 345
eligible for reappointment for a maximum of two (2) full terms. 346
Each member of the authority shall, before entering upon his duty, 347
take an oath of office to administer the duties of his office 348
faithfully and impartially, and a record of such oath shall be 349
filed in the Office of the Secretary of State. 350
The authority shall annually elect from its membership a 351
chairman and vice chairman who shall be eligible for reelection 352
for up to four (4) consecutive terms. The authority shall also 353
elect or appoint, and prescribe the duties of, such other 354
officers, who need not be members, as the authority deems 355
necessary or advisable, and the authority shall fix the 356
compensation of such officers. The authority may delegate to one 357
or more of its members, officers, employees or agents such powers 358
and duties as it may deem proper and consistent with this act and 359
other provisions of law. 360
(4) Except as otherwise specified in this act, the powers of 361
the board shall be vested in and exercised by a majority of the 362
whole number of the members thereof. The members of the board 363
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shall serve without salary but shall be entitled to receive per 364
diem pay as provided in Section 25-3-69, Mississippi Code of 1972, 365
plus travel and necessary expenses, including mileage, as provided 366
in Section 25-3-41, Mississippi Code of 1972, incurred while in 367
the performance of his or her duties as a board member upon 368
authorization by the board. Expenses shall be paid from the 369
available funds of the authority after the authority assumes 370
management and control of the water and wastewater systems as 371
provided in this act. Subject to appropriations, until the date 372
the authority assumes management and control of the water and 373
wastewater systems as provided in this act, expenses shall be paid 374
by the state. 375
(5) All meetings of the board shall be subject to the Open 376
Meetings Act in Section 25-41-1, et seq., Mississippi Code of 377
1972. The chairman or a majority of members of the board may 378
convene the board for a meeting. 379
(6) Except as otherwise provided by law, all records of the 380
authority shall be deemed public records and subject to public 381
inspection as provided by Section 25-61-1, et seq., Mississippi 382
Code of 1972. 383
(7) The board may, by majority vote, excuse the absence of 384
any board member. If any board member is absent for two (2) board 385
meetings in a twelve-month period without such absences being 386
excused by the board, his or her membership on the board shall be 387
terminated as a function of law, without any action by the board, 388
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and the removed board member shall be ineligible for reappointment 389
to the board. The original appointing authority shall retain the 390
right to appoint a new board member to replace the removed board 391
member. 392
(8) No current or former employee of the authority shall be 393
a board member. 394
(9) Until the authority assumes management and control of 395
the water and wastewater systems, the board shall coordinate with 396
the ITPM in order to provide the best opportunity for minimal 397
disruption in service and maximum ease of transition after the 398
ITPM has concluded his work in overseeing and operating the water 399
system. 400
SECTION 6. (1) Promptly following the appointment of a 401
majority of its board as provided in Section 5 of this act, the 402
authority shall commence negotiations with the city to enter into 403
an agreement with the authority for the transfer by lease to the 404
authority, for use in the exercise of its corporate powers and 405
purposes, the water system or wastewater system, or both, of the 406
city as the same then shall be owned by the city. Such agreement 407
shall be for such term and upon such conditions as may be deemed 408
desirable by the city and the authority, provided that the term of 409
the agreement shall continue until at least the date on which all 410
the authority's bonds are paid in full or provision therefor shall 411
have been made in accordance with the resolution, trust indenture 412
or other security instrument under which the bonds were issued. 413
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To the extent consistent with this act, such agreement may impose 414
such limitations or conditions as may be agreed upon by and 415
between the city and authority with respect to the power of the 416
authority to sell or otherwise dispose of any property acquired by 417
the authority pursuant to such agreement, and may provide for or 418
authorize the authority to surrender to the city, property no 419
longer required by the authority for its public purposes. 420
Notwithstanding the provisions of any general, special or 421
local law or charter to the contrary, any action taken by the city 422
pursuant to this subsection shall not be subject to a permissive 423
or mandatory referendum. 424
(2) Such agreement shall set forth the liabilities of the 425
city which it is contemplated are to be paid by the authority from 426
moneys available to it; provided, however, that such agreement 427
does not require the authority to assume the liabilities of the 428
city, and notwithstanding the foregoing, the city shall continue 429
to be the record owner for real estate tax purposes of any 430
facilities located outside of its municipal boundaries. 431
(3) Such agreement may provide for the payment by the city 432
to the authority from any funds of the city, of such amount as may 433
be determined appropriate for use by the authority. 434
(4) The city and the authority are hereby authorized and 435
empowered to make or enter into any contracts, agreements, deeds, 436
leases, conveyances or other instruments as may be necessary or 437
appropriate to effectuate the purposes of this act, and they shall 438
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have power and authority to do so and to authorize the doing of 439
all things incidental, desirable or necessary to implement the 440
provisions of this title. 441
(5) Upon the filing by the authority with the clerk of the 442
city and the Secretary of State of a copy of the instruments or 443
documents effectuating the transfer authorized by this section, 444
the authority shall take possession of the water system or 445
wastewater system, or both, of the city thereby transferred. 446
(6) Any application filed or proceeding commenced under this 447
act in relation to the water system or wastewater system, or both, 448
transferred to the authority pending with the Mississippi State 449
Department of Health, the Mississippi Department of Environmental 450
Quality or any other state agency or with the United States 451
Environmental Protection Agency or any other federal agency or 452
instrumentality shall inure to and for the benefit of the 453
authority and be binding upon the authority to the same extent and 454
in the same manner as if the authority had been a party to such 455
application or proceeding from its inception, and the authority 456
shall be deemed a party thereto to the extent not prohibited by 457
any federal law. Any license, approval, permit or decision under 458
this act hereafter issued or granted pursuant to or as a result of 459
any such application or proceeding shall inure to the benefit of 460
and be binding upon the authority and shall be assigned and 461
transferred by the city to the authority unless such assignment 462
and transfer is prohibited by federal law. 463
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(7) The rules and regulations of the authority may provide 464
for the discontinuance or disconnection of the supply of water or 465
the provision of wastewater service, or both, as the case may be, 466
by the authority for non-payment of fees, rates, rents or other 467
charges therefore imposed by the authority. A copy of all 468
by-laws, rules and regulations and amendments thereto, duly 469
certified by the secretary of the authority, shall be filed in the 470
offices of the clerk of the city and the secretary of state within 471
three months. Violation of such rules and regulations shall 472
subject the offending party to a civil penalty in an action 473
brought by the authority, not exceeding One Hundred Dollars 474
($100.00) for each day the violation continues. Jurisdiction is 475
hereby conferred upon the Hinds County Circuit Court to hear and 476
determine, subject to the provisions of the civil practice law and 477
rules, any violation of such rules and regulations. 478
(8) The board may retain or employ counsel, auditors, 479
engineers or other private consultants, for rendering professional 480
or technical services and advice, as it may require in connection 481
with the negotiation of the agreement of lease under this section. 482
The state shall pay the reasonable cost and expense for such 483
professional services on a bimonthly basis, subject to 484
appropriations. 485
SECTION 7. (1) The authority shall consult with the court in 486
appointing a president within thirty (30) days following the 487
appointment of a majority of its board as provided in Section 5 of 488
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this act, who shall serve at the will and pleasure of the board. 489
If the authority does not have management and control of the water 490
and wastewater systems by the date of the appointment of a 491
president, the state shall pay the salary of the president on a 492
bimonthly basis, subject to appropriations. The president shall 493
serve as deputy to the ITPM until the court enters final 494
judgement, at which time the president shall manage the daily 495
affairs of the authority and shall have such powers and duties as 496
specified by this act, by the board, and any rules or regulations 497
adopted by the board. The president shall not be a member of the 498
board and shall serve at the will and pleasure of the board. 499
(2) Until the authority assumes management and control of 500
the water and wastewater systems, the president shall coordinate 501
with the ITPM in order to provide the best opportunity for minimal 502
disruption in service and maximum ease of transition after the 503
ITPM has concluded his work in overseeing and operating the water 504
system or wastewater system or the respective functions with 505
respect thereto. 506
(3) The president shall employ such personnel as he or she 507
deems necessary. All personnel shall serve at the will and 508
pleasure of the president. 509
(4) The board shall set the salary of the president at such 510
level as necessary to recruit and retain a qualified professional 511
with the expertise necessary in a public utility. The board may 512
authorize whatsoever incentive compensation program for the 513
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president and authority staff it deems necessary and proper. The 514
authority shall be exempt from the provisions of Section 25-3-39, 515
Mississippi Code of 1972. 516
SECTION 8. (1) The authority shall have the power, duty and 517
responsibility to exercise general supervision over the design, 518
construction, operation and maintenance of water and wastewater 519
systems. 520
(2) The authority shall adopt rules and regulations 521
regarding the design, construction or installation, operation and 522
maintenance of water and wastewater systems. 523
(3) The authority shall adopt rules and regulations 524
regarding the use of decentralized treatment systems, individual 525
on-site wastewater treatment systems and centralized wastewater 526
treatment systems. 527
(4) The authority shall adopt rules establishing performance 528
standards for water and wastewater systems and the operation and 529
maintenance of the same. Such rules and regulations shall 530
include: the implementation of a standard application form for the 531
installation, operation and maintenance of such systems; 532
application review; approval or denial procedures for any proposed 533
system; inspection, monitoring and reporting guidelines; and 534
enforcement procedures. 535
(5) (a) Before a building or development which requires the 536
installation of a water or wastewater system is constructed, such 537
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system must be submitted to the authority for certification that 538
the system complies with the authority's requirements. 539
(b) Before approving or renewing a permit for a water 540
or wastewater system within the authority, the state agency must 541
require certification that such system complies with the 542
authority's requirements. 543
(6) Any system of any municipality, public agency or other 544
person which contracts with the authority shall be subject to the 545
terms of that contract and the terms of this act. 546
(7) Notwithstanding the provisions of Section 51-39-1, et 547
seq., Mississippi Code of 1972, the authority shall have the full 548
power to adopt rules and regulations and to construct, maintain, 549
lease and operate facilities for the control of storm water 550
quality and quantity. In addition, the provisions of Section 551
51-33-1, et seq., Mississippi Code of 1972, relating to drainage 552
districts and flood control districts do not apply to the 553
authority. 554
(8) The authority may control and operate the local retail 555
water or wastewater services and may provide or be responsible for 556
direct servicing of those services to residences, businesses and 557
individuals; however, the authority shall not provide the same 558
service in an area provided by a public utility or person holding 559
a certificate of public convenience and necessity issued by the 560
Mississippi Public Service Commission for the provision of such 561
services in the certificated area. 562
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(9) The authority shall enter into contracts for major 563
procurements after bidding. The authority may adopt 564
administrative rules and regulations pursuant to the provisions of 565
this act providing for special procedures whereby the authority 566
may make any class of procurement. 567
(10) In its bidding processes, the authority may do its own 568
bidding and procurement or may utilize the services of the 569
Department of Finance and Administration, the Department of 570
Information Technology Services or other state agencies as 571
appropriate and necessary. 572
(11) In the City of Ridgeland, Mississippi, which is served 573
by only the wastewater system as of January 1, 2026, the authority 574
shall have oversight or control of only wastewater service 575
provided to ratepayers. To maintain consistency with the 576
agreement in place with the city prior to the existence of the 577
authority, the City of Ridgeland shall have control over its rate 578
structure, with the City of Ridgeland compensating the authority 579
for its prorated share of wastewater conveyance, treatment, 580
capital improvements and debt service. 581
SECTION 9. (1) The authority, in addition to any other 582
powers granted under this act and any other provision of law, is 583
authorized: 584
(a) To acquire, construct, improve, enlarge, extend, repair, 585
operate and maintain one or more of its systems used for the 586
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collection, transportation, treatment and disposal of water and 587
wastewater; 588
(b) To make contracts with any person in furtherance 589
thereof, and to make contracts with any person, under the terms of 590
which the authority will collect, transport, treat or dispose of 591
water and wastewater for such person; 592
(c) To make contracts with any person to design and 593
construct any water and wastewater systems or facilities, and 594
thereafter to purchase, lease or sell, by installments over such 595
terms as may be deemed desirable, reasonable and necessary, or 596
otherwise, any such system or systems; 597
(d) To enter into operating agreements with any person, for 598
such terms and upon such conditions as may be deemed desirable, 599
for the operation of any water and wastewater systems, and to 600
lease to or from any person, for such term and upon such 601
conditions as may be deemed desirable, any water and wastewater 602
collection, transportation, treatment or other facilities or 603
systems. Any such contract may contain provisions requiring any 604
public agency or other person to regulate the quality and strength 605
of materials to be handled by the respective system or systems and 606
also may provide that the authority shall have the right to use 607
any streets, alleys and public ways and places within the 608
jurisdiction of a public agency or other person during the term of 609
the contract; 610
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(e) To enter into contracts with any person or public 611
agency, including, but not limited to, contracts authorized by 612
this act, in furtherance of any of the purposes authorized under 613
this act upon such consideration as the board and such person may 614
agree. Any such contract may extend over any period of time, 615
notwithstanding any provision or rule of law to the contrary, may 616
be upon such terms and for such consideration, nominal or 617
otherwise, as the parties thereto shall agree, and may provide 618
that it shall continue in effect until bonds specified therein, 619
refunding bonds issued in lieu of such bonds, and all other 620
obligations specified therein are paid or terminated. Any such 621
contract shall be binding upon the parties thereto according to 622
its terms; 623
(f) To sue and be sued, in its own name, and to enjoy 624
all of the protections, immunities and benefits provided by the 625
Mississippi Tort Claims Act, Section 11-46-1, et seq., Mississippi 626
Code of 1972, as it may be amended or supplemented from time to 627
time; 628
(g) To maintain office space at such place or places 629
within the authority's boundaries as it may determine; 630
(h) To invest money of the authority, including 631
proceeds from the sale of any bonds subject to any agreements with 632
bondholders, on such terms and in such manner as the authority 633
deems proper; 634
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(i) To pay or refinance any outstanding city bonds 635
relating to the water and wastewater systems under their existing 636
terms; 637
(j) To require the necessary relocation or rerouting of 638
roads and highways, railroad, telephone and telegraph lines, and 639
properties, electric power lines, gas pipelines and related 640
facilities, or to require the anchoring or other protection of any 641
of these, provided fair compensation is first paid to the owners 642
or an agreement with such owners regarding the payment of the cost 643
of such relocation, and to acquire easements or rights-of-way for 644
such relocation or rerouting and to convey the same to the owners 645
of the property being relocated or rerouted in connection with the 646
purposes of this act. This provision shall be in accordance with 647
Mississippi Constitution Article 17A and Section 11-27-30, 648
Mississippi Code of 1972; 649
(k) To acquire, construct, improve or modify, to 650
operate or cause to be operated and maintained, either as owner of 651
all or of any part in common with others, any water or wastewater 652
system within the authority's service area. The authority may pay 653
all or part of the cost of any system from any contribution by 654
persons, firms, public agencies or corporations. 655
The authority may receive, accept and use all funds, public 656
or private, and pay all costs of the development, implementation 657
and maintenance as may be determined as necessary for any project; 658
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(l) To acquire, in its own name, by purchase on any 659
terms and conditions and in any manner as it may deem proper, 660
property for public use, or by gift, grant, lease, or otherwise, 661
real property or easements therein, franchises and personal 662
property necessary or convenient for its corporate purposes. This 663
provision shall be in accordance with Mississippi Constitution 664
Article 17A and Section 11-27-30, Mississippi Code of 1972; 665
(m) To acquire insurance for the systems, facilities, 666
buildings, treatment plants and all property, real or personal, to 667
insure against all risks as any insurance may, from time to time, 668
be available; 669
(n) To use any property and rent or lease any property 670
to or from others, including public agencies, or make contracts 671
for the use of the property. The authority may sell, lease, 672
exchange, transfer, assign, pledge, mortgage or grant a security 673
interest for any property. The powers to acquire, use and dispose 674
of property as set forth in this paragraph shall include the power 675
to acquire, use and dispose of any interest in that property, 676
whether divided or undivided. Title to any property of the 677
authority shall be held by the authority exclusively for the 678
benefit of the public; 679
(o) To apply, contract for, accept, receive and 680
administer gifts, grants, appropriations and donations of money, 681
materials and property of any kind, including loans and grants 682
from the United States, the state, a unit of local government, or 683
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any agency, department, district or instrumentality of any of the 684
foregoing, upon any terms and conditions as the United States, the 685
state, a unit of local government, or any agency, department, 686
district or instrumentality shall impose. The authority may 687
administer trusts. The authority may sell, lease, transfer, 688
convey, appropriate and pledge any and all of its property and 689
assets; 690
(p) To make and enforce, and from time to time amend 691
and repeal, bylaws, rules, ordinances and regulations for the 692
management of its business and affairs and for the construction, 693
use, maintenance and operation of any of the systems under its 694
management and control; 695
(q) To employ and terminate staff and other personnel, 696
including attorneys, auditors, engineers and consultants for 697
rendering professional or technical services and advice, as may be 698
necessary to the functioning of the authority; 699
(r) To establish, fix, charge and enforce the payment 700
of all rates, fees, assessments and any other charges for services 701
furnished by the water system, wastewater system, or both, and 702
other facilities within the control of the authority, as the case 703
may be, and from time to time, to adjust such rates, fees, 704
assessments and any other charges to the end that the revenues 705
therefrom will be sufficient at all times (i) to pay the expenses 706
of operating and maintaining the systems and other facilities, 707
including all obligations under any contract or bond resolution 708
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with respect thereto, (ii) for the establishment and maintenance 709
of a bond retirement and interest payment fund sufficient to 710
provide for the payment of principal of and interest on any bonds 711
or other obligations payable therefrom as the same become due and 712
payable, including reasonable reserves for the payment of such 713
principal and interest, (iii) for the establishment and 714
maintenance of a reasonable reserve for future additions, 715
extensions, and improvements to such systems or any combination 716
thereof, as the case may be, and (iv) to comply with all covenants 717
of the authority under the terms of any resolution, trust 718
indenture or other security instrument with respect to its bonds. 719
Except as otherwise permitted by law, such rates, fees, 720
assessments and other charges shall be equal as levied on 721
similarly situated customers throughout the authority's service 722
area. For purposes of Section 77-3-33, Mississippi Code of 1972, 723
the rates charged by the authority shall be just and reasonable if 724
they are adequate to provide safe and reliable water and 725
wastewater service to its customers, including providing an 726
adequate amount of capital for the authority to perform such 727
repairs, upgrades and improvements as it deems necessary on an 728
ongoing basis; 729
(s) To adopt rules and regulations necessary to 730
accomplish the purposes of the authority and to assure the payment 731
of each participating person or public agency of its proportionate 732
share of the costs for use of any of the systems and facilities of 733
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the authority and for the authority's proportionate share of the 734
costs of the board; 735
(t) To enter on public or private lands, waters or 736
premises for the purpose of making surveys, borings or soundings, 737
or conducting tests, examinations or inspections for the purposes 738
of the authority, subject to responsibility for any damage done to 739
property entered; 740
(u) To accept industrial wastewater from within the 741
boundaries of the authority for treatment and to require the 742
pretreatment of the same when, in the opinion of the authority, 743
such pretreatment is necessary; 744
(v) To control and operate local retail water and 745
wastewater services, and to provide or be responsible for direct 746
servicing of those services to residences, businesses and 747
individuals; however, the authority shall not provide the same 748
services in an area provided by a public utility or person holding 749
a certificate of public convenience and necessity issued by the 750
Mississippi Public Service Commission for the provision of such 751
services in the certificated area; 752
(w) To assume control and administer, within the 753
authority's jurisdiction, any water or wastewater system or 754
systems by agreement or contract with any person if the person 755
providing such services requests to be relieved of that 756
responsibility; 757
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(x) To acquire property designated by plan to 758
sufficiently accommodate the location of water or wastewater 759
systems and such requirements related directly thereto pursuant to 760
the provisions of Chapter 27, Title 11, Mississippi Code of 1972. 761
The authority may acquire property necessary for any system and 762
the exercise of the powers, rights and duties conferred upon the 763
authority by this act. No person owning the drilling rights or 764
the right to share in production shall be prevented from 765
exploring, developing or producing oil or gas with necessary 766
rights-of-way for ingress and egress, pipelines and other means of 767
transporting such interests on any lands or interest of the 768
authority held or used for the purposes of this act, but any such 769
activities shall be subject to reasonable regulations by the board 770
that will adequately protect the systems or projects of the 771
authority. This provision shall be in accordance with Mississippi 772
Constitution Article 17A and Section 11-27-30, Mississippi Code of 773
1972; 774
(y) To use any legally available funds to acquire, 775
rebuild, operate and maintain any existing water or wastewater 776
systems owned or operated by any person; 777
(z) To refuse to receive water or wastewater from any 778
public agency or person, except with regard to municipalities or 779
other areas within the service territory of the systems as of 780
January 1, 2026; 781
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(aa) So long as any indebtedness on the systems of the 782
authority remains outstanding, to require of a member public 783
agency, or other person, that all water and wastewater, as the 784
case may be, within the boundaries of the authority be disposed of 785
through the appropriate treatment system to the extent that the 786
same may be available, but no public agency shall be precluded 787
from constructing, operating and maintaining its own such system 788
unless provision has been made for full payment, by escrow or 789
otherwise, of the public agency's proportionate share of the 790
authority's bonds and other indebtedness then outstanding as of 791
the expected date of operation of the public agency's system, 792
pursuant to the terms of the authority's bonds or resolution, 793
trust indenture or other security instrument securing such bonds 794
or indebtedness; 795
(bb) To adopt a seal and a symbol, and hold patents, 796
copyrights, trademarks and service marks, and to enforce its 797
rights with respect thereto; 798
(cc) To write off revenues deemed uncollectible that 799
were billed to customers prior to January 1, 2026, and further 800
write off revenues deemed uncollectible after the third year of 801
collection efforts as a regular accounting practice of the 802
authority. Nothing herein permits the provision of services 803
without charging applicable rates in effect at the time services 804
are provided and requiring payment of such services; and 805
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(dd) To do all things necessary, convenient or 806
desirable to carry out its purposes and for the exercise of the 807
powers granted in this act. 808
(3) The authority shall: 809
(a) Submit annual reports to the Governor, Lieutenant 810
Governor, Speaker of the House of Representatives, State Auditor, 811
Joint Legislative Committee on Performance Evaluation and 812
Expenditure Review, the mayor and the governing authorities of any 813
municipality whose citizens are within the authority's boundaries 814
regarding the water quality and financial conditions of such 815
system or systems, as well as a schedule of currently planned 816
repairs, upgrades or improvements planned by the authority; 817
(b) Immediately submit to the Governor, Lieutenant 818
Governor, Speaker of the House of Representatives, the mayor and 819
the governing authorities of any municipality whose citizens are 820
within the authority's boundaries any information received from 821
the Mississippi State Department of Health or Department of 822
Environmental Quality or other state or federal regulatory 823
agencies regarding the condition of a transferred eligible 824
municipal system. The authority, in addition to abiding by any 825
other federal or state reporting requirements, must also report 826
such information to the public on its website and to individuals 827
residing within the service area as required by federal or state 828
law; 829
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(c) Publish audited annual financial statements, which 830
shall be made available to the public. The annual financial 831
statements shall include disposition of all funds expended by the 832
authority for any purpose. Quarterly financial statements shall be 833
made available to the public by posting on the authority's 834
website; 835
(d) Adopt by administrative rules and regulations a 836
system of continuous internal audits; 837
(e) Adopt by administrative rules and regulations a 838
code of ethics for officers and employees of the authority to 839
carry out the standards of conduct established by this act; and 840
(f) Adopt by administrative rules and regulations 841
guidelines for the transfer of property to the city or disposal of 842
property, as the case may be, if the authority is dissolved. 843
SECTION 10. (1) The president, as chief executive officer 844
of the authority, if so appointed by the board, shall direct and 845
supervise all administrative and technical activities in 846
accordance with the provisions of this act, within the 847
administrative rules and regulations adopted by the board, and in 848
accordance with prudent industry practice. The president shall: 849
(a) Supervise and administer or contract for the 850
supervision and administration of the water and wastewater systems 851
owned, managed or controlled by the authority; 852
(b) Employ and direct such personnel as may be 853
necessary to carry out the purposes of this act and utilize such 854
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services, personnel or facilities of the authority as he or she 855
may deem necessary; 856
(c) Make available for inspection by the board or any 857
member of the board or the Governor, Lieutenant Governor, Speaker 858
of the House, the mayor or the governing authorities of any 859
municipality whose citizens are served by the authority, upon 860
request, all books, records, files and other information and 861
documents of his or her office and advise the board and recommend 862
such administrative rules and regulations and other matters he or 863
she deems necessary and advisable to improve the operation and 864
administration of the authority; 865
(d) Attend meetings of the board or appoint a designee 866
to attend on his or her behalf; 867
(e) Not later than thirty (30) days before the 868
beginning of the authority's fiscal year, submit the proposed 869
annual budget of the authority to the board for review and 870
approval. This shall include a schedule of planned repairs, 871
upgrades or improvements to the systems and the anticipated 872
capital cost of each. In addition, the proposed annual budget of 873
the authority shall include a personnel table reporting 874
information for each full-time and part-time permanent position, 875
as follows: 876
(i) The position title and the salary for each 877
position in the existing operating budget for the current fiscal 878
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year, indicating whether each position is filled or vacant as of 879
the reporting date; and 880
(ii) The position title and the salary recommended 881
for each position for the next fiscal year; and 882
(f) Require bond of Fifty Thousand Dollars ($50,000.00) 883
from employees with access to funds or in such an amount as 884
provided in the administrative rules and regulations of the board. 885
(2) The president may: 886
(a) Require a bond from other employees as he or she 887
deems necessary; and 888
(b) Upon specific or general approval of the board, 889
enter into personal service contracts pursuant to administrative 890
rules and regulations adopted by the board and compensate such 891
consultants and technical assistants as may be required to carry 892
out the provisions of this act. 893
(3) State agencies, including, but not limited to, the 894
Mississippi Department of Health and the Mississippi Department of 895
Environmental Quality, shall cooperate with the authority to 896
regulate the authority and assure the effective operation of the 897
authority's systems, with the understanding that such agencies act 898
as a regulator and not operator of such systems, provided that the 899
rates, fees, assessments and other charges imposed by the 900
authority shall not be subject to the jurisdiction of the 901
Mississippi Public Service Commission. All state officers are 902
hereby empowered and required to render such services as may be 903
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requested by the authority to the authority within their 904
respective functions. 905
SECTION 11. Employees of the authority shall serve at the 906
will and pleasure of the president, who shall determine their 907
compensation and benefits in consultation with the board. 908
SECTION 12. Neither the directors of the authority, the 909
board, its employees, nor any person or persons acting on their 910
behalf, while acting within the scope of their authority, shall be 911
subject to personal liability resulting from carrying out any of 912
the powers granted herein in accordance with his or her good faith 913
belief that he or she is acting in the best interests of the 914
authority. 915
SECTION 13. (1) The authority shall enter into its 916
contracts for major procurements after a competitive and open 917
procurement process. The authority may adopt administrative rules 918
and regulations pursuant to the provisions of this act providing 919
for special procedures whereby the authority may make any class of 920
procurement. The authority shall endeavor to ensure the 921
transparency and competitiveness of procurements of all sizes. 922
(2) In its bidding processes, the authority may do its own 923
bidding and procurement or may utilize the services of other state 924
agencies as appropriate and necessary. The president may declare 925
an emergency for purchasing purposes which shall be governed by 926
the administrative rules and regulations adopted by the board. 927
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SECTION 14. All monies received by the authority shall be 928
deposited into an operating account. Such account shall be 929
established in a custodian financial institution domiciled in the 930
state, insured by the Federal Deposit Insurance Corporation and 931
collateralized as prescribed by Section 27-105-5, Mississippi Code 932
of 1972. 933
SECTION 15. All division heads, officers and employees of 934
the authority shall be considered public servants as defined in 935
Section 25-4-103, Mississippi Code of 1972. All division heads 936
and officers of the authority are subject to Section 25-4-25, 937
Mississippi Code of 1972, and shall be required to file a 938
Statement of Economic Interest with the Mississippi Ethics 939
Commission. 940
SECTION 16. (1) Any public agency, pursuant to a duly 941
adopted resolution of the governing body of such public agency, 942
may enter into contracts with the authority under the terms of 943
which the authority will manage, operate and contract for usage of 944
its systems and facilities, or other services, for such public 945
agency. 946
(2) Any public agency may enter into contracts with the 947
authority for the authority to purchase or sell, by installments 948
over such terms as may be deemed desirable, or otherwise, to any 949
person or any systems. Any public agency may sell, donate, convey 950
or otherwise dispose of water and wastewater facilities or 951
systems, or any equipment, personal property or other things 952
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deemed necessary for the construction, operation and maintenance 953
thereof to the authority without the necessity of appraisal, 954
advertising or bidding. This section creates an alternative method 955
of disposal of public property. 956
(3) Any public agency is authorized to enter into operating 957
agreements with the authority, for such terms and upon such 958
conditions as may be deemed desirable, for the operation of any of 959
its systems by the authority or by any person contracting with the 960
authority to operate such systems. 961
(4) Any public agency may lease to or from the authority, 962
for such term and upon such conditions as may be deemed desirable, 963
any of its systems. 964
(5) Any municipality or county may donate office space, 965
equipment, supplies and materials to the authority. 966
(6) Any such contract may contain provisions requiring any 967
public agency to regulate the quality and strength of the material 968
to be handled by the wastewater systems and may also provide that 969
the authority shall have the right to use any streets, alleys and 970
public ways and places within the jurisdiction of a public agency 971
during the term of the contract. Such contracts may obligate the 972
public agency to make payments to the authority or to a trustee in 973
amounts which shall be sufficient to enable the authority to 974
defray the expenses of administering, operating and maintaining 975
its respective systems, to pay interest and principal (whether at 976
maturity upon redemption or otherwise) on bonds of the authority 977
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issued under this act, and to fund reserves for debt service, for 978
operation and maintenance and for renewals and replacements, to 979
fulfill the requirements of any rate covenant with respect to debt 980
service coverage contained in any resolution, trust indenture or 981
other security instrument relating to the bonds of the authority 982
issued under this act or to fulfill any other requirement relating 983
to bonds issued pursuant to this act. 984
(7) Any public agency shall have the power to enter into 985
contracts with the authority as deemed, in the discretion of the 986
governing body of the public agency, in the best interest of the 987
public agency. Such contracts may include a pledge of the full 988
faith and credit of the public agency and/or the avails of any 989
special assessments made by the public agency against property 990
receiving benefits, as now or hereafter provided by law. Any such 991
contract may: 992
(a) Provide for the sale or lease to, or use by, the 993
authority, of the systems or any part thereof, of the public 994
agency; 995
(b) Provide that the authority shall operate its 996
systems or any part thereof of the public agency; 997
(c) Provide that the public agency shall have the right 998
to continued use and/or priority use of the systems or any part 999
thereof during the useful life thereof upon payment of reasonable 1000
charges therefor; 1001
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(d) Contain provisions to assure equitable treatment of 1002
public agencies contracting with the authority under this act; and 1003
(e) Contain such other provisions and requirements as 1004
the parties thereto may determine to be appropriate or necessary. 1005
Such contracts may extend over any period of time, notwithstanding 1006
any provisions of law to the contrary, and may extend beyond the 1007
life of the respective systems or any part thereof or the term of 1008
the bonds sold with respect to such facilities or improvements 1009
thereto. 1010
(8) The obligations of a public agency arising under the 1011
terms of any contract referred to in this act, whether or not 1012
payable solely from a pledge of revenues, shall not be included 1013
within the indebtedness limitations of the public agency for 1014
purposes of any constitutional or statutory limitation or 1015
provision. To the extent provided in such contract and to the 1016
extent such obligations of the public agency are payable wholly or 1017
in part from the revenues and other monies derived by the public 1018
agency from the operation of its systems or of its combined 1019
systems, or any part thereof, such obligations shall be treated as 1020
expenses of operating such systems. 1021
(9) Contracts referred to in this section may also provide 1022
for payments in the form of contributions to defray the cost of 1023
any purpose set forth in the contracts and as advances for the 1024
respective systems or any part thereof subject to repayment by the 1025
authority. A public agency may make such contributions or advances 1026
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from its general fund or surplus fund or from special assessments 1027
or from any monies legally available therefor. 1028
(10) Subject to the terms of a contract or contracts 1029
referred to in this act, the authority is hereby authorized to do 1030
and perform any and all acts or things necessary, convenient or 1031
desirable to carry out the purposes of such contracts, including 1032
the fixing, charging, collecting, maintaining and revising of 1033
rates, fees and other charges for the services rendered to any 1034
user of any of the systems operated or maintained by the 1035
authority, whether or not such systems are owned by the authority. 1036
(11) No provision of this act shall be construed to prohibit 1037
any public agency, otherwise permitted by law to issue bonds, from 1038
issuing bonds in the manner provided by law for the construction, 1039
renovation, repair or development of any systems or any part 1040
thereof. 1041
SECTION 17. Whenever a public agency shall have executed a 1042
contract under this act and the payments thereunder are to be made 1043
either wholly or partly from the revenues of the public agency's 1044
systems, or any part thereof, or a combination of such systems, 1045
the duty is hereby imposed on the public agency to establish and 1046
maintain and, from time-to-time to adjust the rate or fees charged 1047
by the public agency for the services of such systems, so that the 1048
revenues therefrom, together with any taxes and special 1049
assessments levied in support thereof, will be sufficient at all 1050
times to pay: 1051
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(a) The expense of operating and maintaining such 1052
systems, including, but not limited to, all of the public agency's 1053
obligations to the authority and the cost required to staff such 1054
systems, its successors or assigns under such contract; and 1055
(b) All of the public agency's obligations under and in 1056
connection with bonds theretofore issued, or which may be issued 1057
thereafter and secured by the revenues of such systems. Any such 1058
contract may require the use of consulting engineers and financial 1059
experts to advise the public agency whether and when such rates 1060
and fees are to be adjusted. 1061
SECTION 18. (1) Notwithstanding the provisions of Sections 1062
77-3-21 and 77-3-23, Mississippi Code of 1972, the certificate of 1063
public convenience and necessity held by any municipality, public 1064
agency, district, public utility or other entity authorized by law 1065
to provide water and wastewater services may be cancelled and its 1066
powers, duties and responsibilities transferred to the authority 1067
in the manner provided by this section. 1068
(2) Any entity described in subsection (1) of this section 1069
desiring to have its certificate of public convenience and 1070
necessity cancelled and its powers, duties and responsibilities 1071
transferred to the authority shall make a determination to that 1072
effect on its official minutes if a public entity, or by affidavit 1073
if not a public entity, and transmit such determination to the 1074
authority. 1075
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(3) Upon receipt of the document evidencing such 1076
determination from an entity to transfer its powers, duties and 1077
responsibilities to the authority, the authority shall, by 1078
resolution, declare whether it is willing and able to accept such 1079
transfer from the entity. 1080
(4) Upon completion of the requirements of subsections (2) 1081
and (3) of this section and agreement by both parties to the 1082
transfer, the holder of the certificate of public convenience and 1083
necessity and the authority shall jointly petition the Public 1084
Service Commission to cancel the certificate of public convenience 1085
and necessity. The petition must be accompanied by copies of the 1086
official minutes, affidavit or resolution, as the case may be, 1087
reflecting the actions of the petitioners. After review of the 1088
petition and any other evidence as the Public Service Commission 1089
deems necessary, the commission may issue an order canceling the 1090
certificate and transferring to the authority the powers, duties 1091
and responsibilities granted by the certificate, including all 1092
assets and debts of the transferor petitioner related to such 1093
certificated services, real or personal, or both, if it finds 1094
that: 1095
(a) Subsections (2) and (3) of this section have been 1096
complied with; and 1097
(b) Such action is in the public interest. 1098
(5) The authority and providers of water and wastewater 1099
services that are not holders of a certificate of a public 1100
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convenience and necessity from the Public Service Commission may 1101
enter into agreements for the provision of such services, 1102
including, but not limited to, the transfer to the authority of 1103
such provider's powers, duties, responsibilities, assets and 1104
debts. 1105
(6) Nothing herein shall require an entity whose powers and 1106
duties were transferred to the authority to remain under the 1107
authority. 1108
SECTION 19. (1) Any system of a municipality, public agency 1109
or other entity that becomes subject to the jurisdiction of the 1110
authority and this act shall not impair, invalidate or abrogate 1111
any liens, bonds or other certificates of indebtedness related to 1112
water or wastewater facilities and systems incurred prior to 1113
becoming subject to the jurisdiction of the authority. 1114
(2) The authority may do and perform any and all acts 1115
necessary, convenient or desirable to ensure the payment, 1116
redemption or satisfaction of such liens, bonds or other 1117
certificates of indebtedness. 1118
SECTION 20. (1) Sections 19 through 28 of this act apply to 1119
all bonds to be issued on or after July 1, 2026, and such 1120
provisions shall not affect, limit or alter the rights and powers 1121
of the authority under this act or any law of the State of 1122
Mississippi to conduct the activities referred to herein in any 1123
way pertinent to the interests of the bondholders, including, 1124
without limitation, the authority's right to charge and collect 1125
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rates, fees, assessments and charges and to fulfill the terms of 1126
any covenants made with the registered owners of any existing 1127
system bonds outstanding as of July 1, 2026, or in any other way 1128
impair the rights and remedies of the registered owners of any 1129
existing system bonds outstanding as of July 1, 2026, unless 1130
provision for full payment of such bonds, by escrow or otherwise, 1131
has been made pursuant to the terms of the bonds or the 1132
resolution, trust indenture or other security instrument securing 1133
the bonds. 1134
(2) The authority shall have the power and is hereby 1135
authorized, from time to time, to borrow money and to issue 1136
revenue bonds and interim notes in such principal amounts as the 1137
authority may determine to be necessary to provide sufficient 1138
funds for achieving one or more of the purposes of this act, 1139
including, without limiting the generality of the foregoing, to 1140
defray all the costs of the project, the cost of the acquisition, 1141
construction, improvement, repair or extension of a system, or any 1142
part thereof, whether or not such facilities are owned by the 1143
authority, the payment of interest on bonds of the authority 1144
issued pursuant to this act, establishment of reserves to secure 1145
such bonds and payment of the interest thereon, expenses incident 1146
to the issuance of such bonds and to the implementation of the 1147
authority's system, and all other expenditures of the authority 1148
incident to or necessary or convenient to carry out the purposes 1149
of this act. 1150
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(3) Before issuing bonds, other than interim notes, bonds 1151
issued to refinance the existing system debts as of July 1, 2026, 1152
as provided in subsection (12) of this section or refunding bonds 1153
as provided in Section 21 of this act, the board of directors of 1154
the authority shall adopt a resolution declaring its intention to 1155
issue such bonds and stating the maximum principal amount of bonds 1156
proposed to be issued, a general generic description of the 1157
proposed improvements and the proposed location thereof and the 1158
date, time and place at which the board of directors proposes to 1159
take further action with respect to the issuance of such bonds. 1160
The resolution shall be published once a week for at least three 1161
(3) consecutive weeks in at least one (1) newspaper having a 1162
general circulation within the geographical limits of the service 1163
area under this act. 1164
(4) Bonds of the authority issued pursuant to this act, 1165
other than bonds issued to refinance the existing system debts as 1166
of July 1, 2026 as provided in subsection (12) of this section, 1167
shall be payable from and secured by a pledge of all or any part 1168
of the revenues derived from the operation of the systems or any 1169
part or parts thereof and any other monies legally available and 1170
designated therefor, as may be determined by the authority, 1171
subject only to any agreement with the purchasers of the bonds. 1172
Such bonds may be further secured by a trust indenture between the 1173
authority and a corporate trustee, which may be any trust company 1174
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or bank having powers of a trust company without or within the 1175
state. 1176
(5) Bonds of the authority issued pursuant to this act shall 1177
be authorized by a resolution or resolutions adopted by a majority 1178
affirmative vote of the total membership of the board. Such bonds 1179
may be issued in series, and each series of such bonds shall bear 1180
such date or dates, mature at such time or times, bear interest at 1181
such rate or rates not exceeding the maximum rate set out in 1182
Section 75-17-103, Mississippi Code of 1972, be in such 1183
denomination or denominations, be in such form, carry such 1184
conversion privileges, have such rank or priority, be executed in 1185
such manner and by such officers, be payable from such sources in 1186
such medium of payment at such place or places within or without 1187
the state, provided that one such place shall be within the state, 1188
and be subject to such terms of redemption prior to maturity, all 1189
as may be provided by resolution or resolutions of the board. The 1190
term of such bonds issued pursuant to this act shall not exceed 1191
forty (40) years. 1192
(6) Bonds of the authority issued pursuant to this act may 1193
be sold at such price or prices, at public or private sale, in 1194
such manner and at such times as may be determined by the 1195
authority to be in the public interest, and the authority may pay 1196
all expenses, premiums, fees and commissions which it may deem 1197
necessary and advantageous in connection with the issuance and 1198
sale thereof. 1199
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(7) Any pledge of earnings, revenues or other monies made by 1200
the authority for bonds issued pursuant to this act, or made by 1201
the city to the authority for such bonds, shall be valid and 1202
binding from the time the pledge is made. The earnings, revenues 1203
or other monies so pledged and thereafter received by the 1204
authority or the city shall immediately be subject to the lien of 1205
such pledge without any physical delivery thereof or further act, 1206
and the lien of any such pledge shall be valid and binding as 1207
against all parties having claims of any kind in tort, contract or 1208
otherwise against the authority or the city irrespective of 1209
whether such parties have notice thereof. Neither the resolution 1210
nor any other instrument by which a pledge is created need be 1211
recorded. The revenues may also be pledged as security for the 1212
payment of obligations due providers of credit enhancement with 1213
respect to any bonds issued. 1214
(8) Neither the members of the board nor any person 1215
executing the bonds shall be personally liable on the bonds or be 1216
subject to any personal liability or accountability by reason of 1217
the issuance thereof. 1218
(9) Proceeds from the sale of bonds of the authority may be 1219
invested, pending their use, in such securities as may be 1220
specified in the resolution authorizing the issuance of the bonds 1221
or the trust indenture securing them, and the earnings on such 1222
investments applied as provided in such resolution or trust 1223
indenture. 1224
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(10) Whenever any bonds shall have been signed by the 1225
officer designated by the resolution of the board to sign the 1226
bonds who was in office at the time of such signing but who may 1227
have ceased to be such officer prior to the sale and delivery of 1228
such bonds, or who may not have been in office on the date such 1229
bonds may bear, the manual or facsimile signatures of such officer 1230
upon such bonds shall nevertheless be valid and sufficient for all 1231
purposes and have the same effect as if the person so officially 1232
executing such bonds had remained in office until the delivery of 1233
the same to the purchaser or had been in office on the date such 1234
bonds may bear. 1235
(11) The authority has the discretion to advance or borrow 1236
funds needed to satisfy any short-term cash flow demands or 1237
deficiencies or to cover start-up costs until such time as 1238
sufficient bonds, assets and revenues have been secured to satisfy 1239
the needs of the authority. 1240
(12) The authority shall have the power and is hereby 1241
authorized to issue special revenue bonds for the purpose of 1242
refinancing all of the existing system debts as of July 1, 2026. 1243
The bonds issued pursuant to this subsection shall be payable from 1244
and secured by a pledge of all or any part of such monies legally 1245
available and designated therefor, as determined by the authority, 1246
subject only to any agreement with the purchasers of the bonds. 1247
Such bonds may be further secured by a trust indenture between the 1248
authority and a corporate trustee, which may be any trust company 1249
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or bank having powers of a trust company without or within the 1250
state. 1251
(13) Notwithstanding any law to the contrary in Section 1252
31-25-21, Mississippi Code of 1972, the authority shall constitute 1253
a local governmental unit for all purposes of the Mississippi 1254
Development Bank Act. 1255
SECTION 21. (1) The authority may, by resolution adopted by 1256
its board, issue refunding bonds for the purpose of paying any of 1257
its bonds at or prior to maturity or upon acceleration or 1258
redemption. Refunding bonds may be issued at such time prior to 1259
the maturity or redemption of the refunded bonds as the board 1260
deems to be in the public interest. The refunding bonds may be 1261
issued in sufficient amounts to pay or provide the principal of 1262
the bonds being refunded, together with any redemption premium 1263
thereon, any interest accrued or to accrue to the date of payment 1264
of such bonds, the expenses of issue of the refunding bonds, the 1265
expenses of redeeming the bonds being refunded, and such reserves 1266
for debt service or other capital or current expenses from the 1267
proceeds of such refunding bonds as may be required by the 1268
resolution, trust indenture or other security instrument. The 1269
issue of refunding bonds, the maturities and other details 1270
thereof, the security therefor, the rights of the holders and the 1271
rights, duties and obligations of the authority in respect of the 1272
same shall be governed by the provisions of this act relating to 1273
the issue of bonds other than refunding bonds insofar as the same 1274
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may be applicable. Any such refunding may be effected, whether the 1275
obligations to be refunded shall have then matured or shall 1276
thereafter mature, either by the exchange of the refunding bonds 1277
for the obligations to be refunded thereby with the consent of the 1278
holders of the obligations so to be refunded, or by sale of the 1279
refunding bonds and the application of the proceeds thereof to the 1280
payment of the obligations proposed to be refunded thereby, and 1281
regardless of whether the obligations proposed to be refunded 1282
shall be payable on the same date or different dates or shall be 1283
due serially or otherwise. 1284
(2) Borrowing by the authority may be made by the delivery 1285
of interim notes to any person or public agency or financial 1286
institution by a majority vote of the board of directors. 1287
SECTION 22. All bonds, other than refunding bonds, interim 1288
notes and certificates of indebtedness, which may be issued 1289
pursuant to this act shall be validated as now provided by law in 1290
Sections 31-13-1 through 31-13-11, Mississippi Code of 1972; 1291
however, notice of such validation proceedings shall be addressed 1292
to the citizens of the respective public agencies which have 1293
contracted with the authority pursuant to this act, and whose 1294
contracts and the payments to be made by the public agencies 1295
thereunder constitute security for the bonds of the authority 1296
proposed to be issued, and such notice shall be published at least 1297
once in a newspaper or newspapers having a general circulation 1298
within the geographical boundaries of each of the contracting 1299
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public agencies to whose citizens the notice is addressed. Such 1300
validation proceedings shall be instituted in any chancery courts 1301
within the boundaries of the authority. 1302
The validity of the bonds so validated and of the contracts 1303
and payments to be made by the public agencies thereunder 1304
constituting security for the bonds shall be forever conclusive 1305
against the authority and the public agencies, which are parties 1306
to said contracts, and the validity of said bonds and said 1307
contracts and the payments to be made thereunder shall never be 1308
called in question in any court in this state. 1309
SECTION 23. Bonds issued under the provisions of this act 1310
shall not be deemed to constitute, within the meaning of any 1311
constitutional or statutory limitation, an indebtedness of the 1312
authority or the state. Such bonds shall be payable solely from 1313
the revenues or assets of the authority pledged therefor. 1314
Each bond issued under this act shall contain on the face 1315
thereof a statement to the effect that neither the authority nor 1316
the state shall be obligated to pay the same or the interest 1317
thereon except from the revenues or assets pledged therefor. 1318
SECTION 24. The authority shall have power in connection 1319
with the issuance of its bonds pursuant to this act to: 1320
(a) Covenant as to the use of any or all of its 1321
property, real or personal. 1322
(b) Redeem the bonds, to covenant for their redemption 1323
and to provide the terms and conditions thereof. 1324
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(c) Covenant to charge rates, fees and charges 1325
sufficient to meet operating and maintenance expenses, renewals 1326
and replacements, principal and debt service on bonds, creation 1327
and maintenance of any reserves required by a bonds resolution, 1328
trust indenture or other security instrument and to provide for 1329
any margins or coverages over and above debt service on the bonds 1330
deemed desirable for the marketability of the bonds. 1331
(d) Covenant and prescribe as to events of default and 1332
terms and conditions upon which any or all of its bonds shall 1333
become or may be declared due before maturity, as to the terms and 1334
conditions upon which such declaration and its consequences may be 1335
waived and as to the consequences of default and the remedies of 1336
the registered owners of the bonds. 1337
(e) Covenant as to the mortgage or pledge of or the 1338
grant of a security interest in any real or personal property and 1339
all or any part of the revenues from any designated system or any 1340
part thereof or any revenue-producing contract or contracts made 1341
by the authority with any person or entity to secure the payment 1342
of bonds, subject to such agreements with the registered owners of 1343
bonds as may then exist. 1344
(f) Covenant as to the custody, collection, securing, 1345
investment and payment of any revenues, assets, monies, funds or 1346
property with respect to which the authority may have any rights 1347
or interest. 1348
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(g) Covenant as to the purposes to which the proceeds 1349
from the sale of any bonds then or thereafter to be issued may be 1350
applied, and the pledge of such proceeds to secure the payment of 1351
the bonds. 1352
(h) Covenant as to the limitations on the issuance of 1353
any additional bonds, the terms upon which additional bonds may be 1354
issued and secured, and the refunding of outstanding bonds. 1355
(i) Covenant as to the rank or priority of any bonds 1356
with respect to any lien or security. 1357
(j) Covenant as to the procedure by which the terms of 1358
any contract with or for the benefit of the registered owners of 1359
bonds may be amended or abrogated, the amount of bonds the 1360
registered owners of which must consent thereto, and the manner in 1361
which such consent may be given. 1362
(k) Covenant as to the custody of any of its properties 1363
or investments, the safekeeping thereof, the insurance to be 1364
carried thereon, and the use and disposition of insurance 1365
proceeds. 1366
(l) Covenant as to the vesting in a trustee or 1367
trustees, within or outside the state, of such properties, rights, 1368
powers and duties in trust as the authority may determine. 1369
(m) Covenant as to the appointing and providing for the 1370
duties and obligations of a paying agent or paying agents or other 1371
fiduciaries within or outside the state. 1372
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(n) Make all other covenants and do any and all such 1373
acts and things as may be necessary, convenient or desirable in 1374
order to secure its bonds, including providing a debt service 1375
reserve fund, bond insurance and credit enhancement, or in the 1376
absolute discretion of the authority tend to make the bonds more 1377
marketable, notwithstanding that such covenants, acts or things 1378
may not be enumerated herein, it being the intention hereof to 1379
give the authority power to do all things in the issuance of bonds 1380
and in the provisions for security thereof which are not 1381
inconsistent with the Constitution of the state. 1382
(o) Execute all instruments necessary or convenient in 1383
the exercise of the powers herein granted or in the performance of 1384
covenants or duties, which may contain such covenants and 1385
provisions, as any purchaser of the bonds of the authority may 1386
reasonably require. 1387
SECTION 25. The authority may, in any authorizing resolution 1388
of the board, trust indenture or other security instrument 1389
relating to its bonds issued pursuant to this act, provide for the 1390
appointment of a trustee who shall have such powers as are 1391
provided therein to represent the registered owners of any issue 1392
of bonds in the enforcement or protection of their rights under 1393
any such resolution, trust indenture or security instrument. The 1394
authority may also provide in such resolution, trust indenture or 1395
other security instrument that the trustee, or in the event that 1396
the trustee so appointed shall fail or decline to so protect and 1397
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enforce such registered owners' rights then such percentage of 1398
registered owners as shall be set forth in, and subject to the 1399
provisions of, such resolution, trust indenture or other security 1400
instrument, may petition the court of proper jurisdiction for the 1401
appointment of a receiver of the authority's systems, the revenues 1402
of which are pledged to the payment of the principal of and 1403
interest on the bonds of such registered owners. Such receiver may 1404
exercise any power as may be granted in any such resolution, trust 1405
indenture or security instrument to enter upon and take possession 1406
of, acquire, construct, reconstruct or operate and maintain such 1407
system, fix charges for services of the system and enforce 1408
collection thereof, and receive all revenues derived from such 1409
system or facilities and perform the public duties and carry out 1410
the contracts and obligations of the authority in the same manner 1411
as the authority itself might do, all under the direction of such 1412
court. 1413
SECTION 26. (1) The exercise of the powers granted by this 1414
act will be in all respects for the benefit of the people of the 1415
state, for their well-being and prosperity and for the improvement 1416
of their social and economic conditions, and the authority shall 1417
not be required to pay any tax or assessment on any property owned 1418
by the authority under the provisions of this act or upon the 1419
income therefrom, nor shall the authority be required to pay any 1420
recording fee or transfer tax of any kind on account of 1421
instruments recorded by it or on its behalf. 1422
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(2) Any bonds issued by the authority under this act, their 1423
transfer and the income therefrom shall at all times be free from 1424
taxation by the state or any local unit or political subdivision 1425
or other instrumentality of the state, excepting inheritance and 1426
gift taxes. 1427
SECTION 27. All bonds issued under the provisions of this 1428
act shall be legal investments for trustees, other fiduciaries, 1429
savings banks, trust companies and insurance companies organized 1430
under the laws of the state, and such bonds shall be legal 1431
securities which may be deposited with and shall be received by 1432
all public officers and bodies of the state and all municipalities 1433
and other political subdivisions thereof for the purpose of 1434
securing the deposit of public funds. 1435
SECTION 28. The state hereby covenants with the registered 1436
owners of any bonds of the authority that so long as the bonds are 1437
outstanding and unpaid, the state will not limit or alter the 1438
rights and powers of the authority under this act to conduct the 1439
activities referred to herein in any way pertinent to the 1440
interests of the bondholders, including, without limitation, the 1441
authority's right to charge and collect rates, fees, assessments 1442
and charges and to fulfill the terms of any covenants made with 1443
the registered owners of the bonds, or in any other way impair the 1444
rights and remedies of the registered owners of the bonds, unless 1445
provision for full payment of such bonds, by escrow or otherwise, 1446
has been made pursuant to the terms of the bonds or the 1447
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resolution, trust indenture or security instrument securing the 1448
bonds. The authority is authorized to include this pledge and 1449
agreement of the state in any agreement with bondholders. 1450
SECTION 29. For the purposes of satisfying any temporary 1451
cash flow demands and deficiencies, and to maintain a working 1452
balance for the authority, the state, county, municipalities or 1453
public agencies within the geographic boundaries of the authority, 1454
or other persons, subject to their lawful authority to do so, are 1455
authorized to advance, at any time, such funds which in their 1456
discretion are necessary, or borrow such funds by issuance of 1457
notes, for initial capital contribution, and to cover start-up 1458
costs until such times as sufficient bonds, assets and revenues 1459
have been secured to satisfy the needs of the authority for its 1460
management, operation and formation. To this end, the state, 1461
county, municipality, public agency or person, subject to its 1462
lawful authority to do so, shall advance such funds, or borrow 1463
such funds by issuance of notes, under such terms and conditions 1464
as may be provided by resolution of the governing body, or other 1465
persons as defined in this act, subject to their lawful authority 1466
to do so, except that each such resolution shall state: 1467
(a) The need for the proceeds advanced or borrowed; 1468
(b) The amount to be advanced or the amount to be 1469
borrowed; 1470
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(c) The maximum principal amount of any note issued the 1471
interest rate or maximum interest rate to be incurred, and the 1472
maturity date of said note; 1473
(d) In addition, the governing body of the county, 1474
municipalities, or other persons as defined in this act, subject 1475
to their lawful authority to do so, may arrange for lines of 1476
credit with any bank, firm or person for the purpose of providing 1477
an additional source of repayment for notes issued pursuant to 1478
this section. Amounts drawn on a line of credit may be evidenced 1479
by negotiable or nonnegotiable notes or other evidences of 1480
indebtedness and contain such terms and conditions as the 1481
governing body, or other persons as defined in this act, subject 1482
to their lawful authority to do so, may authorize in the 1483
resolution approving the same; 1484
(e) The governing body of the county, municipalities or 1485
other persons as defined in this act, subject to their lawful 1486
authority to do so, may authorize the repayment of such advances, 1487
notes, lines of credit and other debt incurred under this section, 1488
along with all costs associated with the same, including, but not 1489
limited to, rating agency fees, printing costs, legal fees, bank 1490
or trust company fees, line of credit fees and other charges to be 1491
reimbursed by the authority under such terms and conditions as are 1492
reasonable and are to be provided for by resolution of the 1493
governing body, or terms agreed upon with other persons as defined 1494
in this act, subject to their lawful authority to do so; and 1495
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(f) In addition, the governing body of the county, 1496
municipalities or public agency may lease or donate office space 1497
and equipment to the authority under such terms and conditions as 1498
are reasonable and are to be provided for by resolution of the 1499
governing body, or terms agreed upon by the authority. 1500
SECTION 30. This act, being necessary for the welfare of the 1501
state and its inhabitants, shall be liberally construed to effect 1502
the purposes thereof. If any section, provision, paragraph, 1503
sentence, phrase or word of this act shall be held invalid by any 1504
court of competent jurisdiction, the remainder of this act shall 1505
not be affected thereby. 1506
SECTION 31. Section 21-19-1, Mississippi Code of 1972, is 1507
brought forward as follows: 1508
21-19-1. (1) The municipal governing authorities of any 1509
municipality shall have the power to make regulations to secure 1510
the general health of the municipality; to prevent, remove, and 1511
abate nuisances; to regulate or prohibit the construction of privy 1512
vaults and cesspools, and to regulate or suppress those already 1513
constructed; to compel and regulate the connection of all property 1514
with sewers and drains; to suppress hog pens, slaughterhouses and 1515
stockyards, or to regulate the same and prescribe and enforce 1516
regulations for cleaning and keeping the same in order; to 1517
regulate and prescribe and enforce regulations for the cleaning 1518
and keeping in order of warehouses, stables, alleys, yards, 1519
private ways, outhouses, and other places where offensive matter 1520
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is kept or permitted to accumulate; and to compel and regulate the 1521
removal of garbage and filth beyond the corporate limits. The 1522
municipal governing authorities are further authorized to adopt 1523
and enforce regulations governing the disposal of garbage and 1524
rubbish in sanitary landfills owned or leased by the municipality, 1525
whether located within or outside of the corporate limits of the 1526
municipality, to the extent that such regulations are not in 1527
conflict with or prohibited by regulations of the Commission on 1528
Environmental Quality adopted under Section 17-17-27. 1529
(2) After December 31, 1992, the governing body of any 1530
municipality in the state shall provide for the collection and 1531
disposal of garbage and the disposal of rubbish, and for that 1532
purpose the governing body shall have the power to: 1533
(a) Establish, operate and maintain a garbage and/or 1534
rubbish collection and disposal system or systems; 1535
(b) Acquire property, real or personal, by contract, 1536
gift or purchase, necessary or proper for the maintenance and 1537
operation of such system; 1538
(c) Make all necessary rules and regulations for the 1539
collection and disposal of garbage and/or rubbish not in conflict 1540
with or prohibited by rules and regulations of the Commission on 1541
Environmental Quality adopted under Section 17-17-27 and, if it so 1542
desires, establish, maintain and collect rates, fees and charges 1543
for collecting and disposing of such garbage and/or rubbish; and 1544
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(d) In its discretion, enter into contracts, in the 1545
manner required by law, with individuals, associations or 1546
corporations for the establishment, operation and maintenance of a 1547
garbage or rubbish disposal system or systems, and/or enter into 1548
contracts on such terms as the municipal governing body thinks 1549
proper with any other municipality, county or region enabling the 1550
municipality to use jointly with such other municipality, county 1551
or region any authorized rubbish landfill or permitted sanitary 1552
landfill operated by the other municipality, other county or 1553
region. 1554
As a necessary incident to such municipal governing 1555
authority's power and authority to establish, maintain and collect 1556
such rates, fees and charges for collecting and disposing of such 1557
garbage and/or rubbish, and as a necessary incident to such 1558
municipal governing authority's power and authority to establish, 1559
operate and maintain a garbage and/or rubbish disposal system or 1560
systems, the municipal governing authority of such municipality 1561
shall have the authority to initiate a civil action to recover any 1562
delinquent fees and charges for collecting and disposing of such 1563
rubbish, and all administrative and legal costs associated with 1564
collecting such fees and charges, in the event any person, firm or 1565
corporation, including any municipal corporation, shall fail or 1566
refuse to pay such fees and charges for collecting and disposing 1567
of garbage and/or rubbish; provided that such municipal governing 1568
authority may initiate such a civil action to recover such 1569
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delinquent fees and charges whether or not such municipality has 1570
previously entered into a contract with such individual, firm or 1571
corporation, relating to the establishment, operation and 1572
maintenance of such garbage and/or rubbish disposal system or 1573
systems; provided further, that in a civil action to recover such 1574
delinquent fees and charges for collecting and disposing of such 1575
garbage and/or rubbish, and all administrative and legal costs 1576
associated with collecting such fees and charges, the municipality 1577
shall in all respects be a proper party to such suit as plaintiff 1578
and shall have the power to sue for and recover such unpaid fees 1579
and charges, and all administrative and legal costs associated 1580
with collecting such fees and charges from any person, firm or 1581
corporation, as may fail, refuse or default in the payment of such 1582
fees and charges. 1583
SECTION 32. Section 21-19-2, Mississippi Code of 1972, is 1584
brought forward as follows: 1585
21-19-2. (1) (a) To defray the cost of establishing, 1586
operating and maintaining the system provided for in Section 1587
21-19-1, the governing authority of a municipality may develop a 1588
system for the billing and/or collection of any fees or charges 1589
imposed on each person furnished garbage and/or rubbish collection 1590
and/or disposal service by the municipality or at the expense of 1591
the municipality. The governing authority of the municipality 1592
shall provide for the collection of the fees or charges. 1593
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(b) The governing authority of a municipality may enter 1594
into a contract upon mutual agreement with a public or private 1595
corporation, nonprofit corporation, planning and development 1596
district or a public agency, association, utility or utility 1597
district within the area receiving garbage and/or rubbish 1598
collection and/or disposal services from the municipality for the 1599
purpose of developing, maintaining, operating and administering a 1600
system for the billing and/or collection of fees or charges 1601
imposed by the municipality for garbage and/or rubbish collection 1602
and/or disposal services. The entity with whom the governing 1603
authority of a municipality contracts shall notify the governing 1604
authority of the municipality monthly of any unpaid fees or 1605
charges assessed under this section. Any entity that contracts to 1606
provide a service to customers, within the area being served by 1607
the municipality's garbage and/or rubbish collection and/or 1608
disposal system, may provide a list of its customers to the 1609
governing authority of the municipality upon the request of the 1610
governing authority. 1611
(2) (a) To defray the cost of establishing and operating 1612
the system provided for in Section 21-19-1, the governing body of 1613
a municipality may levy an ad valorem tax not to exceed four (4) 1614
mills on all taxable property within the area served by the 1615
municipality's garbage and/or rubbish collection and/or disposal 1616
system. The service area may be comprised of incorporated and/or 1617
unincorporated areas within a county; however, no property shall 1618
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be subject to this levy unless that property is within an area 1619
served by a municipality's garbage and/or rubbish collection 1620
and/or disposal system. The rate of the ad valorem tax levied 1621
under this section shall be shown as a line item on the notice of 1622
ad valorem taxes on taxable property owed by the taxpayer. 1623
(b) In addition to or in lieu of any other method 1624
authorized to defray the cost of establishing and operating the 1625
system provided for in Section 21-19-1, the governing body of a 1626
municipality that has established a garbage and/or rubbish 1627
collection and/or disposal system may assess and collect fees or 1628
charges to defray the costs of such services. The governing 1629
authority may assess and collect the fees or charges from each 1630
single family residential generator of garbage and/or rubbish. 1631
The governing authority also may assess and collect such fees or 1632
charges from each industrial, commercial and multi-family 1633
residential generator of garbage and/or rubbish for any time 1634
period that the generator has not otherwise contracted for the 1635
collection of garbage and/or rubbish that is ultimately disposed 1636
of at a permitted or authorized nonhazardous solid waste 1637
management facility. 1638
(c) Before the adoption of any resolution or ordinance 1639
to increase the ad valorem tax assessment or fees or charges 1640
authorized by this section, the governing authority of a 1641
municipality shall have published a notice advertising their 1642
intent to increase the ad valorem tax assessment or fees or 1643
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charges authorized by this section. The notice shall specify the 1644
purpose of the proposed increase, the proposed percentage increase 1645
and the proposed percentage increase in total revenues for garbage 1646
and/or rubbish collection and/or disposal services or shall 1647
contain a copy of any resolution by the governing authority 1648
stating their intent to increase the ad valorem tax assessment or 1649
fees or charges authorized by this section. The notice shall be 1650
published in a newspaper having general circulation in the 1651
municipality for no less than three (3) consecutive weeks before 1652
the adoption of the order. The notice shall be in print no less 1653
than the size of eighteen (18) point and shall be surrounded by a 1654
one-fourth (1/4) inch black border. The notice shall not be 1655
placed in the legal section notice of the newspaper. There shall 1656
be no language in the notice inferring a mandate from the 1657
Legislature. 1658
In addition to the requirement for publication of notice, the 1659
governing authority of a municipality shall notify each person 1660
furnished garbage and/or rubbish collection and/or disposal 1661
service of any increase in the ad valorem tax assessment or fees 1662
or charges authorized by this section. In the case of an increase 1663
of the ad valorem tax assessment, a notice shall be conspicuously 1664
placed on or attached to the first ad valorem tax bill on which 1665
the increased assessment is effective. In the case of an increase 1666
in fees or charges, a notice shall be conspicuously placed on or 1667
attached to the first bill for fees or charges on which the 1668
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increased fees or charges are assessed. There shall be no 1669
language in any notice inferring a mandate from the Legislature. 1670
(d) The governing authority of a municipality may adopt 1671
an ordinance authorizing the granting of exemptions from the fees 1672
or charges for certain generators of garbage and/or rubbish. The 1673
ordinance shall define clearly those generators that may be 1674
exempted and shall be interpreted consistently by the governing 1675
authority when determining whether to grant or withhold requested 1676
exemptions. 1677
(e) The governing authority may borrow money for the 1678
purpose of defraying the expenses of the system in anticipation 1679
of: 1680
(i) The tax levy authorized under this section; 1681
(ii) Revenues resulting from the assessment of any 1682
fees or charges for garbage and/or rubbish collection and/or 1683
disposal; or 1684
(iii) Any combination thereof. 1685
(3) (a) Fees or charges for garbage and/or rubbish 1686
collection and/or disposal shall be assessed jointly and severally 1687
against the generator of the garbage and/or rubbish and against 1688
the owner of the property furnished the service. However, any 1689
person who pays, as a part of a rental or lease agreement, an 1690
amount for garbage and/or rubbish collection and/or disposal 1691
services shall not be held liable upon the failure of the property 1692
owner to pay such fees. 1693
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(b) Every generator assessed the fees or charges 1694
provided for and limited by this section and the owner of the 1695
property occupied by that generator shall be jointly and severally 1696
liable for the fees and/or charges so assessed. The fees or 1697
charges shall be a lien upon the real property offered garbage 1698
and/or rubbish collection and/or disposal service. 1699
At the discretion of the governing body of the municipality, 1700
fees or charges assessed for the service may be assessed annually. 1701
If fees or charges are assessed annually, the fees or charges for 1702
each calendar year shall be a lien upon the real property offered 1703
the service beginning on January 1 of the next immediately 1704
succeeding calendar year. The person or entity owing the fees or 1705
charges, upon signing a form provided by the governing authority, 1706
may pay the fees or charges in equal installments. 1707
If fees or charges so assessed are assessed on a basis other 1708
than annually, the fees or charges shall become a lien on the real 1709
property offered the service on the date that the fees or charges 1710
become due and payable. 1711
No real or personal property shall be sold to satisfy any 1712
lien imposed under this section. 1713
The municipality shall mail a notice of the lien, including 1714
the amount of unpaid fees or charges and a description of the 1715
property subject to the lien, to the owner of the property subject 1716
to the lien. 1717
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(c) The municipal governing body shall notify the 1718
county tax collector of any unpaid fees or charges assessed under 1719
this section within ninety (90) days after such fees or charges 1720
are due. Upon receipt of a delinquency notice, the tax collector 1721
shall not issue or renew a motor vehicle road and bridge privilege 1722
license for any motor vehicle owned by a person who is delinquent 1723
in the payment of fees or charges, unless such fees or charges, in 1724
addition to any other taxes or fees assessed against the motor 1725
vehicle, are paid. 1726
(d) Liens created under this section may be discharged 1727
as follows: 1728
(i) By filing with the municipal tax collector a 1729
receipt or acknowledgement, signed by the municipality, that the 1730
lien has been paid or discharged; or 1731
(ii) By depositing with the municipal tax 1732
collector money equal to the amount of the claim, which money 1733
shall be held for the benefit of the municipality. 1734
SECTION 33. Section 27-65-241, Mississippi Code of 1972, is 1735
brought forward as follows: 1736
27-65-241. (1) As used in this section, the following terms 1737
shall have the meanings ascribed to them in this section unless 1738
otherwise clearly indicated by the context in which they are used: 1739
(a) "Hotel" or "motel" means and includes a place of 1740
lodging that at any one time will accommodate transient guests on 1741
a daily or weekly basis and that is known to the trade as such. 1742
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Such terms shall not include a place of lodging with ten (10) or 1743
less rental units. 1744
(b) "Municipality" means any municipality in the State 1745
of Mississippi with a population of one hundred fifty thousand 1746
(150,000) or more according to the most recent federal decennial 1747
census. 1748
(c) "Restaurant" means and includes all places where 1749
prepared food is sold and whose annual gross proceeds of sales or 1750
gross income for the preceding calendar year equals or exceeds One 1751
Hundred Thousand Dollars ($100,000.00). The term "restaurant" 1752
shall not include any nonprofit organization that is exempt from 1753
federal income taxation under Section 501(c)(3) of the Internal 1754
Revenue Code. For the purpose of calculating gross proceeds of 1755
sales or gross income, the sales or income of all establishments 1756
owned, operated or controlled by the same person, persons or 1757
corporation shall be aggregated. 1758
(2) (a) Subject to the provisions of this section, the 1759
governing authorities of a municipality may impose upon all 1760
persons as a privilege for engaging or continuing in business or 1761
doing business within such municipality, a special sales tax at 1762
the rate of not more than one percent (1%) of the gross proceeds 1763
of sales or gross income of the business, as the case may be, 1764
derived from any of the activities taxed at the rate of seven 1765
percent (7%) or more under the Mississippi Sales Tax Law, Section 1766
27-65-1 et seq. 1767
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(b) The tax levied under this section shall apply to 1768
every person making sales of tangible personal property or 1769
services within the municipality but shall not apply to: 1770
(i) Sales exempted by Sections 27-65-19, 1771
27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 and 1772
27-65-111 of the Mississippi Sales Tax Law; 1773
(ii) Gross proceeds of sales or gross income of 1774
restaurants derived from the sale of food and beverages; 1775
(iii) Gross proceeds of sales or gross income of 1776
hotels and motels derived from the sale of hotel rooms and motel 1777
rooms for lodging purposes; 1778
(iv) Gross income of businesses engaging or 1779
continuing in the business of TV cable systems, subscription TV 1780
services, and other similar activities, including, but not limited 1781
to, cable Internet services; 1782
(v) Wholesale sales of food and drink for human 1783
consumption sold to full service vending machine operators; and 1784
(vi) Wholesale sales of light wine, light spirit 1785
product, beer and alcoholic beverages. 1786
(3) (a) Before any tax authorized under this section may be 1787
imposed, the governing authorities of the municipality shall adopt 1788
a resolution declaring its intention to levy the tax, setting 1789
forth the amount of the tax to be imposed, the purposes for which 1790
the revenue collected pursuant to the tax levy may be used and 1791
expended, the date upon which the tax shall become effective, the 1792
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date upon which the tax shall be repealed, and calling for an 1793
election to be held on the question. The date of the election 1794
shall be set in the resolution. Notice of the election shall be 1795
published once each week for at least three (3) consecutive weeks 1796
in a newspaper published or having a general circulation in the 1797
municipality, with the first publication of the notice to be made 1798
not less than twenty-one (21) days before the date fixed in the 1799
resolution for the election and the last publication to be made 1800
not more than seven (7) days before the election. At the 1801
election, all qualified electors of the municipality may vote. 1802
The ballots used at the election shall have printed thereon a 1803
brief description of the sales tax, the amount of the sales tax 1804
levy, a description of the purposes for which the tax revenue may 1805
be used and expended and the words "FOR THE LOCAL SALES TAX" and 1806
"AGAINST THE LOCAL SALES TAX" and the voter shall vote by placing 1807
a cross (X) or check mark (√) opposite his choice on the 1808
proposition. When the results of the election have been canvassed 1809
by the election commissioners of the municipality and certified by 1810
them to the governing authorities, it shall be the duty of such 1811
governing authorities to determine and adjudicate whether at least 1812
three-fifths (3/5) of the qualified electors who voted in the 1813
election voted in favor of the tax. If at least three-fifths 1814
(3/5) of the qualified electors who voted in the election voted in 1815
favor of the tax, the governing authorities shall adopt a 1816
resolution declaring the levy and collection of the tax provided 1817
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in this section and shall set the first day of the second month 1818
following the date of such adoption as the effective date of the 1819
tax levy. A certified copy of this resolution, together with the 1820
result of the election, shall be furnished to the Department of 1821
Revenue not less than thirty (30) days before the effective date 1822
of the levy. 1823
(b) A municipality shall not hold more than two (2) 1824
elections under this subsection. 1825
(4) The revenue collected pursuant to the tax levy imposed 1826
under this section may be expended to pay the cost of road and 1827
street repair, reconstruction and resurfacing projects based on 1828
traffic patterns, need and usage, and to pay the costs of water, 1829
sewer and drainage projects in accordance with a master plan 1830
adopted by the commission established pursuant to subsection (7). 1831
(5) (a) The special sales tax authorized by this section 1832
shall be collected by the Department of Revenue, shall be 1833
accounted for separately from the amount of sales tax collected 1834
for the state in the municipality and shall be paid to the 1835
municipality. The Department of Revenue may retain one percent 1836
(1%) of the proceeds of such tax for the purpose of defraying the 1837
costs incurred by the department in the collection of the tax. 1838
Payments to the municipality shall be made by the Department of 1839
Revenue on or before the fifteenth day of the month following the 1840
month in which the tax was collected. However, if a municipality 1841
fails to comply with the audit, reporting and/or report filing 1842
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requirements of paragraph (b) of this subsection and does not 1843
remedy such noncompliance within thirty (30) days after receiving 1844
written notice of noncompliance, the Department of Revenue shall 1845
withhold payments otherwise payable to the municipality under this 1846
paragraph (a) until the department receives written notice that 1847
the municipality has complied with such requirements. 1848
(b) The proceeds of the special sales tax shall be 1849
placed into a special municipal fund apart from the municipal 1850
general fund and any other funds of the municipality, and shall be 1851
expended by the municipality solely for the purposes authorized in 1852
subsection (4) of this section. The records reflecting the 1853
receipts and expenditures of the revenue from the special sales 1854
tax shall be provided in detail to the members of the commission 1855
monthly, to include the name of the vendor and the project, and 1856
the dates and amounts received and paid, and shall also be audited 1857
annually by an independent certified public accountant. The 1858
accountant shall make a report of his findings to the governing 1859
authorities of the municipality and file a copy of his report with 1860
the Secretary of the Senate and the Clerk of the House of 1861
Representatives and the commission members. The audit shall be 1862
made and completed as soon as practical after the close of the 1863
fiscal year of the municipality, and expenses of the audit shall 1864
be paid from the funds derived by the municipality pursuant to 1865
this section. 1866
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(c) Any expenditure from the special municipal fund 1867
defined in paragraph (b) above that was not for a project approved 1868
by the commission, or was in excess of the amount approved by the 1869
commission, shall be reimbursed by the city to the special fund. 1870
(d) All provisions of the Mississippi Sales Tax Law 1871
applicable to filing of returns, discounts to the taxpayer, 1872
remittances to the Department of Revenue, enforced collection, 1873
rights of taxpayers, recovery of improper taxes, refunds of 1874
overpaid taxes or other provisions of law providing for imposition 1875
and collection of the state sales tax shall apply to the special 1876
sales tax authorized by this section, except where there is a 1877
conflict, in which case the provisions of this section shall 1878
control. Any damages, penalties or interest collected for the 1879
nonpayment of taxes imposed under this section, or for 1880
noncompliance with the provisions of this section, shall be paid 1881
to the municipality on the same basis and in the same manner as 1882
the tax proceeds. Any overpayment of tax for any reason that has 1883
been disbursed to a municipality or any payment of the tax to a 1884
municipality in error may be adjusted by the Department of Revenue 1885
on any subsequent payment to the municipality pursuant to the 1886
provisions of the Mississippi Sales Tax Law. The Department of 1887
Revenue may, from time to time, make such rules and regulations 1888
not inconsistent with this section as may be deemed necessary to 1889
carry out the provisions of this section, and such rules and 1890
regulations shall have the full force and effect of law. 1891
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(6) If a municipality expands its corporate boundaries, the 1892
governing authorities of the municipality may not impose the 1893
special sales tax in the annexed area unless the tax is approved 1894
at an election conducted, as far as is practicable, in the manner 1895
provided in subsection (3) of this section, except that only 1896
qualified electors in the annexed area may vote in the election. 1897
(7) (a) Any municipality that levies the special sales tax 1898
authorized under this section shall establish a commission as 1899
provided for in this section. Expenditures of revenue from the 1900
special sales tax authorized by this section shall be in 1901
accordance with a master plan adopted by the commission pursuant 1902
to this subsection. 1903
(b) The commission shall be composed of ten (10) voting 1904
members who shall be known as commissioners appointed as follows: 1905
(i) Four (4) members representing the business 1906
community in the municipality appointed by the local chamber of 1907
commerce for initial terms of one (1), two (2), four (4) and five 1908
(5) years respectively. The members appointed pursuant to this 1909
paragraph shall be persons who represent businesses located within 1910
the city limits of the municipality. 1911
(ii) Three (3) members shall be appointed at large 1912
by the mayor of the municipality, with the advice and consent of 1913
the legislative body of the municipality, for initial terms of two 1914
(2), three (3) and four (4) years respectively. All appointments 1915
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made by the mayor pursuant to this paragraph shall be residents of 1916
the municipality. 1917
(iii) One (1) member shall be appointed at large 1918
by the Governor for an initial term of four (4) years. All 1919
appointments made by the Governor pursuant to this paragraph shall 1920
be residents of the municipality. 1921
(iv) One (1) member shall be appointed at large by 1922
the Lieutenant Governor for an initial term of four (4) years. 1923
All appointments made by the Lieutenant Governor pursuant to this 1924
paragraph shall be residents of the municipality. 1925
(v) One (1) member shall be appointed at large by 1926
the Speaker of the House of Representatives for a term of four (4) 1927
years. All appointments made by the Speaker of the House of 1928
Representatives pursuant to this paragraph shall be residents of 1929
the municipality. 1930
(c) The terms of all appointments made subsequent to 1931
the initial appointment shall be made for five (5) years. Any 1932
vacancy which may occur shall be filled in the same manner as the 1933
original appointment and shall be made for the unexpired term. 1934
(d) The mayor of the municipality shall designate a 1935
chairman of the commission from among the membership of the 1936
commission. The vice chairman and secretary shall be elected by 1937
the commission from among the membership of the commission for a 1938
term of two (2) years. The vice chairman and secretary may be 1939
reelected, and the chairman may be reappointed. 1940
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(e) The commissioners shall serve without compensation. 1941
(f) Any commissioner shall be disqualified and shall be 1942
removed from office for either of the following reasons: 1943
(i) Conviction of a felony in any state court or 1944
in federal court; or 1945
(ii) Failure to attend three (3) consecutive 1946
meetings without just cause. 1947
If a commissioner is removed for any of the above reasons, 1948
the vacancy shall be filled in the manner prescribed in this 1949
section and shall be made for the unexpired term. 1950
(g) A quorum shall consist of six (6) voting members of 1951
the commission. The commission shall adopt such rules and 1952
regulations as may govern the time and place for holding meetings, 1953
regular and special. 1954
(h) The commission shall, with input from the 1955
municipality, establish a master plan for road and street repair, 1956
reconstruction and resurfacing projects based on traffic patterns, 1957
need and usage, and for water, sewer and drainage projects. 1958
Expenditures of the revenue from the tax authorized to be imposed 1959
pursuant to this section shall be made at the discretion of the 1960
governing authorities of the municipality if the expenditures 1961
comply with the master plan. The commission shall monitor the 1962
compliance of the municipality with the master plan. 1963
(8) The governing authorities of any municipality that 1964
levies the special sales tax authorized under this section are 1965
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authorized to incur debt, including bonds, notes or other 1966
evidences of indebtedness, for the purpose of paying the costs of 1967
road and street repair, reconstruction and resurfacing projects 1968
based on traffic patterns, need and usage, and to pay the costs of 1969
water, sewer and drainage projects in accordance with a master 1970
plan adopted by the commission established pursuant to subsection 1971
(7) of this section. Any bonds or notes issued to pay such costs 1972
may be secured by the proceeds of the special sales tax levied 1973
pursuant to this section or may be general obligations of the 1974
municipality and shall satisfy the requirements for the issuance 1975
of debt provided by Sections 21-33-313 through 21-33-323. 1976
(9) This section shall stand repealed from and after July 1, 1977
2035. 1978
SECTION 34. Section 21-27-11, Mississippi Code of 1972, is 1979
brought forward as follows: 1980
21-27-11. Whenever used in Sections 21-27-11 through 1981
21-27-69: 1982
(a) The term "municipality" includes any incorporated 1983
city, town or village of the State of Mississippi, whether 1984
incorporated under a special charter or under the general laws of 1985
the State of Mississippi governing municipalities, and operating 1986
under any form of municipal government. However, for the purpose 1987
of establishing a motor vehicle transportation system for the 1988
transportation of passengers within the boundaries of the 1989
governmental unit or units concerned, and within three (3) miles 1990
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thereof, the word "municipality" is defined to include counties 1991
and groups of municipalities and shall allow those governmental 1992
units to establish a commission as provided in Section 21-27-13 1993
and exercise the powers granted in Sections 21-27-11 through 1994
21-27-69. Each county or municipality joining together shall be 1995
allowed at least one (1) commissioner representing that governing 1996
authority. For the purpose of establishing a railroad 1997
transportation system for passengers and freight, the term 1998
"municipality" includes any county bordering the Mississippi River 1999
and in which Highways 49 and 61 intersect, and such county may 2000
exercise the powers granted in Sections 21-27-11 through 21-27-69; 2001
(b) The term "system" includes waterworks system, water 2002
supply system, sewage system, sewage disposal system, or any 2003
combination thereof, including any combined waterworks and sewage 2004
system, consisting of an existing waterworks system or water 2005
supply system or both, combined with an existing sewage system or 2006
sewage disposal system or both, or consisting of an existing 2007
waterworks system or water supply system or both, combined with a 2008
sewage system or sewage disposal system or both, to be acquired, 2009
(as defined herein), or consisting of an existing sewage system or 2010
sewage disposal system or both, combined with a waterworks system 2011
or water supply system or both, to be acquired, (as defined 2012
herein), gas producing system, gas generating system, gas 2013
transmission system or gas distribution system, or any one (1) or 2014
all thereof, electric generating, transmission, or distribution 2015
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system, garbage disposal system, rubbish disposal system, and 2016
incinerators, and all parts and appurtenances thereof. The term 2017
"system" also includes a motor vehicle transportation system for 2018
the transportation of passengers within the city limits and within 2019
three (3) miles thereof. The term "system" also includes a 2020
railroad transportation system of any municipality located within 2021
a county bordering the Mississippi River and in which Highways 49 2022
and 61 intersect for the transportation of passengers and freight 2023
regardless of the amount of area outside the jurisdictional limits 2024
of such municipality for which the system provides service; the 2025
railroad transportation system may be located partially outside 2026
the boundaries of the county. The term "system" also includes a 2027
motor vehicle transportation system for the transportation of 2028
passengers of any municipality with a population of more than 2029
forty-five thousand (45,000) but less than forty-five thousand one 2030
hundred (45,100) according to the 1970 federal decennial census 2031
regardless of the amount of area outside the city limits of such 2032
municipality for which the system provides service. Wherever in 2033
Sections 21-27-11 through 21-27-69 any one or more of the systems 2034
authorized under this section are referred to, the same shall 2035
include motor vehicle transportation systems. The term "system" 2036
also includes any franchise held by the owner thereof and shall 2037
also include operations within the capabilities of any component 2038
facility within the system which reasonably utilize the public 2039
resources; 2040
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(c) The term "improvement" includes repair, betterment, 2041
enlargement, extension and other improvements to a system; 2042
(d) The term "acquire" includes construct, purchase, 2043
gift, exercise of power of eminent domain and other methods by 2044
which a municipality may acquire a system; 2045
(e) The term "improve" includes repair, better, 2046
enlarge, extend and other methods of improving a system; 2047
(f) The term "ordinance" includes ordinance, resolution 2048
or other appropriate legislative enactment of the governing 2049
authorities of any municipality. 2050
SECTION 35. Section 21-27-13, Mississippi Code of 1972, is 2051
brought forward as follows: 2052
21-27-13. The governing authorities of any municipality 2053
which now owns and operates, or hereafter shall own and operate, 2054
any system or systems shall have the power and authority to create 2055
a commission to control, manage and operate such systems, or any 2056
one or more of them, which said commission shall consist of not 2057
less than three (3) nor more than five (5) commissioners, to be 2058
elected by the governing authorities of such municipality. In any 2059
municipality operating under the council-manager plan of 2060
government, such commissioners shall be selected by, and shall be 2061
under the control of, the mayor and councilmen of the 2062
municipality, and not the city or town manager. Such 2063
commissioners shall have the power, authority and duty to manage 2064
and control said system or systems and the supply of the 2065
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facilities and services thereof, both within and without the 2066
limits of the municipality. Such commissioners shall be qualified 2067
electors of the municipality and shall not hold any other 2068
municipal office for honor or profit. Such commissioners shall 2069
receive such compensation as may be specified and provided by the 2070
governing authorities of said municipality; provided, however, 2071
that any commission formed for the purpose of establishing a motor 2072
vehicle transportation system for the transportation of passengers 2073
within the boundaries of the governmental unit or units concerned, 2074
and within three (3) miles thereof, may pay its commissioners from 2075
the operating budget of such commission per diem compensation in 2076
the amount provided by Section 25-3-69 for each day or fraction of 2077
a day engaged in attendance of meetings of the commission or 2078
engaged in other official duties of the commission, not to exceed 2079
forty-five (45) days in any one (1) year. The governing 2080
authorities of the municipality are hereby authorized and 2081
empowered to require such commissioners to furnish bonds for the 2082
faithful performance of their duties, in the amount as may be 2083
deemed proper, and to pay the premiums thereon from the municipal 2084
treasury or the available funds of the said system or systems. 2085
Where there are three (3) members of such commission, the term of 2086
office shall be for a period of three (3) years, and where there 2087
are four (4) members the term of office shall be for a period of 2088
four (4) years, and where there are five (5) members the term of 2089
office shall be for a period of five (5) years. However, in 2090
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making the first appointment of commissioners, one (1) shall be 2091
appointed for a term of one (1) year, one (1) for a term of two 2092
(2) years, one (1) for a term of three (3) years and, where 2093
necessary, one (1) for a term of four (4) years, and one (1) for a 2094
term of five (5) years, so that thereafter the term of office of 2095
one (1) commissioner shall expire each year. Where the governing 2096
authorities of the municipality do not elect to create a 2097
commission as herein provided, then any system or systems owned 2098
and operated by the municipality shall be controlled and managed 2099
by the governing authorities of the municipality, who shall have 2100
all the power and authority conferred upon such commission. 2101
SECTION 36. Section 21-27-15, Mississippi Code of 1972, is 2102
brought forward as follows: 2103
21-27-15. The governing authorities of such municipality 2104
shall have the power to remove any member of said commission for 2105
inefficiency or incompetency or any other cause, but the governing 2106
authority of any municipality which has created a commission under 2107
the terms of Section 21-27-13, shall not have authority to abolish 2108
the commission, or to diminish its powers, except by a vote of a 2109
majority of the qualified electors of such municipality at a 2110
special election, duly called and held for that purpose. However, 2111
nothing herein shall limit, alter, impair or in any way change the 2112
procedure prescribed for the sale or lease of a public utility 2113
system under Section 21-27-33. 2114
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HISTORY: Codes, Hemingway's 1917, § 6011; 1930, § 2621; 1942, § 2115
3519-04; Laws, 1910, ch. 170; Laws, 1940, ch. 283; Laws, 1950, ch. 2116
494, § 4; Laws, 1962, ch. 549, eff from and after passage 2117
(approved May 31, 1962). 2118
SECTION 37. Section 21-27-17, Mississippi Code of 1972, is 2119
brought forward as follows: 2120
21-27-17. The commission provided for by Section 21-27-13 is 2121
authorized to make such bylaws for the holding and conduct of its 2122
meetings and such other regulations as it may deem necessary for 2123
the safe, economic and efficient management and protection of the 2124
system or systems, and such bylaws and regulations shall have the 2125
same validity as an ordinance duly passed by the governing 2126
authorities of any municipality. 2127
It is authorized to elect such officers and appoint such 2128
employees as may be necessary to operate the system or systems 2129
efficiently, and it shall have the entire control and management 2130
of such system or systems, together with all property connected or 2131
appertaining in any manner to such system or systems. The 2132
commission shall have the authority to employ a superintendent or 2133
manager of the systems, who shall have actual charge of the 2134
management and operation thereof and of the enforcement and 2135
execution of all the rules, regulations, programs, plans and 2136
decisions made and adopted by the commission in making purchases 2137
for materials and supplies to be used in the operation of the 2138
systems. In addition to any other purchasing authority granted by 2139
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law, the commission may purchase electric transmission line 2140
materials, electric distribution system substation equipment, 2141
transformer equipment, and all other appliances, apparatus, 2142
machinery, equipment and appurtenances necessary for the sale of 2143
electricity, such as utility vehicles and fencing, from the 2144
surplus inventory of the Tennessee Valley Authority or any other 2145
similar agency of the federal government and electric power 2146
associations. These purchases shall be exempt from the public bid 2147
requirements prescribed in Sections 31-7-12 and 31-7-13. However, 2148
for all other purchases, the commission shall advertise for 2149
competitive bids in the manner and form as is required in 2150
accordance with Section 31-7-13. The superintendent or manager 2151
shall make and keep full and proper books and records of all 2152
purchases and shall submit them to the commission for its approval 2153
and ratification before payment thereof is authorized to be made. 2154
The commission may authorize the superintendent or manager to 2155
immediately refund to a customer of the municipally owned utility 2156
his or her deposit for municipal utility services after the 2157
superintendent or manager has determined that payment for all 2158
services and any other obligations which the customer may have 2159
incurred in regard to the municipal utility has been made. It 2160
shall have the right to fix the salaries and term of office of all 2161
employees and to direct them in the discharge of their duties. It 2162
shall have the right to require good and sufficient bonds from all 2163
officers and employees in such amounts as it may deem proper. It 2164
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shall have the right to discharge employees when found inefficient 2165
or for other good cause. It shall have the power to make and 2166
collect rates for services and facilities, and appropriate funds 2167
for the maintenance and improvements of such systems. It is 2168
authorized to borrow from the Mississippi Development Bank in 2169
order to fund advance purchases of energy for gas producing, 2170
generating, transmission or distribution system or its electric 2171
generating, transmission or distribution system. It is authorized 2172
to insure all property used in the operation of such systems, 2173
including buildings, furniture, books and records, against loss by 2174
fire and tornado, and to carry sufficient amount of employers 2175
liability, steam boiler, plate glass and other miscellaneous 2176
casualty insurance, as in the discretion of the commission may be 2177
deemed proper, and to pay premiums therefor out of the funds 2178
derived from the operation of the systems. It shall report 2179
quarterly to the governing authorities of the municipality of all 2180
its doings and transactions of every kind whatsoever and shall 2181
make a complete statement of the financial condition of the 2182
systems at the end of each quarter, and shall annually make a 2183
detailed statement covering the entire management and operation of 2184
the systems, with any recommendations which it may have for the 2185
further development of the systems. At any time, the commission, 2186
by order or resolution, may authorize the expansion of activities 2187
of any component facility to include processing of materials on a 2188
custom basis or the processing and marketing of materials acquired 2189
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to fully and efficiently utilize existing plant capacity. It 2190
shall also provide copies of all such quarterly and annual reports 2191
and statements to the Public Service Commission when so directed 2192
under Section 77-3-6. 2193
The commission provided for by Section 21-27-13 is also 2194
authorized to allow a municipally owned utility to prepay the 2195
utility's bills to those electricity suppliers which offer early 2196
payment discounts to the municipally owned utility. 2197
SECTION 38. Section 21-27-19, Mississippi Code of 1972, is 2198
brought forward as follows: 2199
21-27-19. The commission shall devote all monies, derived 2200
from any source other than the issuance of bonds for purposes 2201
authorized by the laws of the State of Mississippi, to or for the 2202
payment of all operating expenses, including such items as are 2203
normally required of utilities for sales development; to or for 2204
the payment of all bonds and interest on outstanding revenue 2205
bonds, if any, of such systems; to or for the acquisition and 2206
improvement of the system contingencies; to or for the payment of 2207
all other obligations incurred in the operation and maintenance of 2208
the systems and the furnishing of service; to or for the creation 2209
and maintenance of a cash working fund or a surplus fund to be 2210
used for replacement, extension of systems, and emergencies. The 2211
balance of the revenues of said systems, if any, may be used for 2212
any other lawful municipal purpose and may be paid to the 2213
governing authorities of the municipality for distribution to the 2214
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various municipal funds, or may be disbursed for said purpose by 2215
the said commission at the direction and request of the governing 2216
authorities of such municipality. 2217
HISTORY: Codes, Hemingway's 1917, § 6012; 1930, § 2622; 1942, § 2218
3519-05; Laws, 1910, ch. 170; Laws, 1940, ch. 283; Laws, 1950, ch. 2219
494, § 5; Laws, 1958, ch. 529, § 1. 2220
SECTION 39. Section 21-27-21, Mississippi Code of 1972, is 2221
brought forward as follows: 2222
21-27-21. The commission shall keep an accurate account and 2223
record of power, current, water, or other services furnished to 2224
all departments of the municipality. 2225
HISTORY: Codes, 1942, § 3519-06; Laws, 1940, ch. 283; Laws, 1950, 2226
ch. 494, § 6, eff from and after July 1, 1950. 2227
SECTION 40. Section 21-27-23, Mississippi Code of 1972, is 2228
brought forward as follows: 2229
21-27-23. Any municipality may: 2230
(a) Borrow money and issue revenue bonds therefor 2231
solely for the purposes specified in this section and by the 2232
procedure provided in Sections 21-27-41 through 21-27-69. 2233
Money may be borrowed and bonds issued by any municipality of 2234
the State of Mississippi, as defined in Section 21-27-11, to 2235
acquire or improve any waterworks system, water supply system, 2236
sewerage system, sewage disposal system, garbage disposal system, 2237
rubbish disposal system or incinerators, gas producing system, gas 2238
generating system, gas transmission system, or gas distribution 2239
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system, electric generating, transmission or distribution system, 2240
railroad transportation system for passengers and freight, or 2241
motor vehicle transportation system, including any combination of 2242
any or all of those systems into one (1) system, within or without 2243
the corporate limits thereof, for the purpose of supplying the 2244
municipality and the persons and corporations, both public and 2245
private, whether within or without its corporate limits, with the 2246
services and facilities afforded by the system, provided that 2247
water, electric energy, or gas afforded by any system or systems 2248
may be supplied to such ultimate consumers thereof by sale thereof 2249
to the owners or operators of a distribution system for resale to 2250
the public. Any municipality which shall borrow money and issue 2251
revenue bonds to provide funds with which to acquire a gas 2252
transmission system, if necessary in order to reach and obtain a 2253
source of supply of gas for the municipality, may extend or 2254
construct its gas transmission line into an adjoining state, and 2255
may use and expend part of the proceeds of such issue of revenue 2256
bonds for the purpose. 2257
(b) To assume all indebtedness for any system or 2258
systems which may be acquired under the provisions of this section 2259
as all or part of the consideration for the acquisition of such 2260
system or systems and to issue its revenue bonds in exchange for 2261
the bonds or notes evidencing the indebtedness. 2262
(c) To acquire or improve any system which it is 2263
authorized to borrow money and issue revenue bonds under 2264
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subsection (a) of this section to acquire or improve; and to make 2265
contracts in furtherance thereof or in connection therewith. 2266
(d) To own, operate and maintain any such system or 2267
combination of any and all of said systems into one (1) system. 2268
(e) To establish, maintain and collect rates for the 2269
facilities and services offered by any such system; provided that 2270
if there is a combination of systems into one or more systems, the 2271
municipality establishing the same shall be and is empowered to 2272
establish, maintain and collect rates for any and all of the 2273
services or for any combination thereof, and the municipality may 2274
discontinue any or all of the services upon any failure to 2275
promptly pay the charges fixed for the services. The rates so 2276
fixed for services rendered by any system or combination thereof 2277
may be charged for all services rendered thereby, regardless of 2278
whether the services may have been previously rendered without 2279
rates or charges therefor by the previously existing waterworks 2280
system, water supply system, sewerage system, sewage disposal 2281
system, garbage disposal system, rubbish disposal system or 2282
incinerators, gas producing system, gas generating system, gas 2283
transmission system, or gas distribution system, electric 2284
generating, transmission or distribution system, which shall have 2285
been merged into the combined system. Any such municipality may 2286
pledge for the payment of any bonds issued to acquire or improve 2287
any such combined system, or to refund any bonds previously issued 2288
to acquire or improve any such combined system or to acquire or 2289
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improve any system merged with such combined system, the revenues 2290
to be derived from the operation of such combined system, 2291
including the charges authorized to be imposed by this section. 2292
A municipality may authorize a municipally owned utility to 2293
make early payment of the utility's bills to its electricity 2294
suppliers which offer early payment discounts to the municipally 2295
owned utility. The municipality may immediately refund to a 2296
customer of the municipally owned utility his or her deposit for 2297
municipal utility services after the municipal utility has 2298
determined that payment for all services and any other obligations 2299
which the customer may have incurred in regard to the municipal 2300
utility has been made. 2301
If the revenues of any previously existing system being 2302
merged into a combined system are subject to a prior lien, the 2303
revenues and the expenses of any previously existing system shall 2304
be accounted for separately to the extent necessary to satisfy the 2305
covenants relating to the prior lien for so long as the 2306
indebtedness secured by the revenues shall remain outstanding. 2307
Only surplus revenues remaining after the satisfaction of all 2308
covenants relating to the outstanding indebtedness may be pledged 2309
to the retirement of any indebtedness to be secured by the 2310
revenues of a combined system. The existence of the outstanding 2311
indebtedness shall not, in and of itself, prevent the combining of 2312
systems as herein provided, so long as the prior lien on the 2313
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revenues of any previously existing system is fully satisfied from 2314
the revenues of the previously existing system. 2315
(f) To acquire property, real or personal, which may be 2316
necessary to effectuate the powers conferred by this section. The 2317
municipality may purchase electric transmission line materials, 2318
electric distribution system substation equipment, transformer 2319
equipment, and all other appliances, apparatus, machinery, 2320
equipment and appurtenances necessary for the sale of electricity, 2321
such as utility vehicles and fencing, from the surplus inventory 2322
of the Tennessee Valley Authority or any other similar agency of 2323
the federal government and electric power associations. These 2324
purchases by the municipality shall be exempt from the public bid 2325
requirements prescribed in Sections 31-7-12 and 31-7-13. If the 2326
power of eminent domain is exercised, it shall be exercised in the 2327
manner provided by Sections 11-27-1 through 11-27-51. 2328
(g) To enter into contract with the United States of 2329
America or any agency thereof, under the provisions of acts of the 2330
Congress of the United States, to aid or encourage public works 2331
and the regulations made in pursuance thereof, for the sale of 2332
bonds issued in accordance with the provisions of Sections 2333
21-27-41 through 21-27-69 or for the acceptance of a grant to aid 2334
such municipality in acquiring or improving any such system; and 2335
the contracts may contain terms and conditions as may be agreed 2336
upon by and between the municipality and the United States of 2337
America or any agency thereof, or any purchaser of the bonds. 2338
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(h) To adopt the ordinances and resolutions and to do 2339
all things and perform all acts necessary, proper or desirable to 2340
effectuate the full intent and purpose of Sections 21-27-11 2341
through 21-27-69, including processing, marketing, custom 2342
processing, sale and resale of materials processed through any 2343
facility under its jurisdiction. 2344
(i) To borrow from the Mississippi Development Bank in 2345
order to fund the advance purchase of energy for its gas 2346
producing, generating, transmission or distribution system or its 2347
electric generating, transmission or distribution system. 2348
(j) Enter into an interlocal agreement in accordance 2349
with Section 21-27-75. 2350
SECTION 41. Section 21-27-25, Mississippi Code of 1972, is 2351
brought forward as follows: 2352
21-27-25. Any municipality which owns or operates any 2353
system, shall have the power and authority through its utilities 2354
commission to borrow money and issue its negotiable notes or 2355
certificates of indebtedness therefor, in an amount not to exceed 2356
ten percent (10%) of the gross revenues of the system in the last 2357
preceding fiscal year, in any calendar year, for the purpose of 2358
improving, repairing or extending any such system, or of 2359
stockpiling fuel for any such system, or systems, without the 2360
necessity of calling and holding an election upon such question or 2361
otherwise obtaining the consent of the qualified electors of the 2362
municipality, or giving any notice thereof. However, the utilities 2363
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commission shall secure approval of the governing authorities of 2364
the municipality. In all cases where money is borrowed under the 2365
provisions of this section, the same shall be repaid within three 2366
(3) years and at no time shall the amount of money borrowed under 2367
this section exceed thirty percent (30%) of the gross revenues of 2368
the system for the last preceding fiscal year. 2369
HISTORY: Codes, 1942, § 3519-26; Laws, 1950, ch. 494, § 26; Laws, 2370
1958, ch. 529, § 5; Laws, 1978, ch. 337, § 1, eff from and after 2371
passage (approved March 7, 1978). 2372
SECTION 42. Section 21-27-27, Mississippi Code of 1972, is 2373
brought forward as follows: 2374
21-27-27. No free service shall be furnished by any such 2375
system, or combined system, to any private person, firm, 2376
corporation, or association. The municipality may, however, 2377
furnish such service, free of charge, to the municipality or any 2378
agency or department thereof, to any public school, or to any 2379
hospital or benevolent institution located within such 2380
municipality, including county, city, and community fairs. 2381
SECTION 43. Section 21-27-29, Mississippi Code of 1972, is 2382
brought forward as follows: 2383
21-27-29. Rates charged for services furnished by any system 2384
or combined system purchased, constructed, improved, enlarged, 2385
extended or repaired under the provisions of Sections 21-27-11 to 2386
21-27-69 shall not be subject to supervision or regulation by any 2387
state bureau, board, commission, or other like instrumentality or 2388
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agency thereof. It shall not be necessary for any municipality 2389
operating under the provisions of said sections to obtain any 2390
franchise or other permit from any state bureau, board, commission 2391
or other instrumentality thereof, in order to construct, improve, 2392
enlarge, extend or repair any system or combined system. However, 2393
billing and service disputes between the system and its customers 2394
shall be subject to review and arbitration by the Public Service 2395
Commission as provided under Section 77-3-6. 2396
SECTION 44. Section 21-27-31, Mississippi Code of 1972, is 2397
brought forward as follows: 2398
21-27-31. Any municipality issuing revenue bonds pursuant to 2399
the authority granted in Section 21-27-23 shall install and 2400
maintain proper books of record and account (separate entirely 2401
from other records and accounts of such municipality), in which 2402
correct entries shall be made of all dealings or transactions of 2403
or in relation to the properties, business and affairs of the 2404
system or combined system. The governing authorities of such 2405
municipality, not later than three months after the close of any 2406
calendar, operating or fiscal year, shall cause to be prepared a 2407
balance sheet and an income and operating and surplus account 2408
showing, respectively, in reasonable detail, the financial 2409
condition of the system or combined system at the close of such 2410
preceding calendar, operating or fiscal year, and the financial 2411
operations thereof during such year. Said balance sheet and the 2412
income and operating and surplus account shall at all times during 2413
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the usual business hours be open to examination and inspection by 2414
any taxpayer, user of the services furnished by the system, or any 2415
holder of bonds issued pursuant to the authority granted in 2416
Section 21-27-23, or any one acting for or on behalf of such 2417
taxpayer, user of the services of the system, or bondholder. 2418
HISTORY: Codes, 1942, § 3519-19; Laws, 1934, ch. 316; Laws, 1950, 2419
ch. 494, § 19, eff from and after July 1, 1950. 2420
SECTION 45. Section 21-27-33, Mississippi Code of 1972, is 2421
brought forward as follows: 2422
21-27-33. All municipalities of the state are hereby 2423
empowered and authorized, if they so desire, to sell, lease, or 2424
otherwise dispose of any or all electric, water, gas or other 2425
municipally-owned public utility systems or properties on such 2426
terms and conditions, and with such safeguards as will best 2427
promote and protect the public interest. Said municipal 2428
corporations are empowered and authorized to transfer title to 2429
said public utility properties by warranty deed, bill of sale, 2430
contract, or lease, in the manner provided by law. However, 2431
notice of intention to make such sale, lease, or disposition of 2432
any such system, setting out the price and other general terms and 2433
conditions of such proposed sale, lease, or disposition shall be 2434
given by publication, once a week for three (3) consecutive weeks 2435
in a legal newspaper published in such municipality, and if no 2436
such newspaper be published in said municipality, then in some 2437
newspaper having a general circulation in such municipality. 2438
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After ten (10) days from the last publication of such notice, the 2439
system may be disposed of, unless within ten (10) days after the 2440
last publication of such notice a petition signed by not less than 2441
twenty per centum (20%) of the qualified voters of such 2442
municipality be filed, objecting to and protesting against such 2443
sale, lease, or disposition, in which event the same shall not be 2444
made unless submitted to a special election ordered for the 2445
purpose of determining whether a majority of those voting in such 2446
election shall vote for or against such sale, lease, or other 2447
disposition. Such election shall be ordered to be held not less 2448
than forty (40) days after the date of the last notice of the 2449
proposed sale, lease or disposition. Notice of such election, 2450
stating the purpose of election, shall be published once each week 2451
for three (3) consecutive weeks next preceding the time set for 2452
holding said election in such newspaper as herein provided. The 2453
laws governing special municipal elections shall govern the 2454
ordering and conduct of said election. 2455
The ballots provided shall have plainly written or printed 2456
thereon the words "shall the waterworks, electric, or gas (as the 2457
case may be) system be sold, leased, or disposed of (as the case 2458
may be)" and below said words shall be suitably placed on separate 2459
lines, the words "yes" and "no," so that the voter may indicate 2460
the way he desires to vote on the question submitted. 2461
If a majority of those voting in said election shall vote in 2462
favor of such sale, lease, or disposition, then the proper officer 2463
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of the municipality may proceed to sell, lease or dispose of such 2464
system in accordance with the terms and conditions set out in the 2465
notice of proposed intention to sell, lease or dispose of such 2466
system, as herein provided. If such election is determined 2467
against such sale, lease or disposition of such system, then such 2468
system shall not be sold, leased or disposed of, but shall remain 2469
the property of the municipality. 2470
SECTION 46. Section 21-27-35, Mississippi Code of 1972, is 2471
brought forward as follows: 2472
21-27-35. The governing authorities of any municipality 2473
which have sold or which may hereafter sell any utility system 2474
owned by such municipality, may use the proceeds of the sale of 2475
such system, or any part thereof, for the purpose of retiring and 2476
paying off any of the public debt of the municipality, and they 2477
may purchase the outstanding bonds or other obligations of the 2478
said municipality at such price, whether above or below par, as 2479
they may consider fair and reasonable. The said governing 2480
authorities may, in their discretion, invest the said funds, or 2481
any part thereof, derived from the sale of the said system or 2482
systems in any of the securities now eligible for purchase by 2483
public sinking funds of municipalities, at such price, whether 2484
above or below par, as they may determine to be fair and 2485
reasonable. 2486
HISTORY: Codes, 1930, § 2550; 1942, § 3519-25; Laws, 1928, ch. 2487
120; Laws, 1950, ch. 494, § 25, eff from and after July 1, 1950. 2488
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SECTION 47. Section 21-27-37, Mississippi Code of 1972, is 2489
brought forward as follows: 2490
21-27-37. The governing authorities of every municipality 2491
shall have power to inspect or cause to be inspected the 2492
machinery, appliances and premises of all persons, copartnerships 2493
or corporations owning or operating any system within their 2494
corporate limits, in order to ascertain whether or not the said 2495
machinery, appliances and premises are kept in a sanitary 2496
condition and in condition to comply with the terms and 2497
requirements of the franchise or franchises under which the said 2498
system or systems are operated. 2499
If any person, copartnership or corporation, or any employee 2500
thereof, shall refuse to permit the municipal governing 2501
authorities to make such inspection immediately when requested so 2502
to do, they shall, for each such refusal, forfeit the sum of one 2503
thousand dollars, to be recovered in an action in the name of said 2504
municipality. 2505
HISTORY: Codes, Hemingway's 1917, §§ 5890, 5891; 1930, §§ 2458, 2506
2459; 1942, § 3519-27; Laws, 1910, ch. 147; Laws, 1950, ch. 494, § 2507
27, eff from and after July 1, 1950. 2508
SECTION 48. Section 21-27-39, Mississippi Code of 1972, is 2509
brought forward as follows: 2510
21-27-39. All municipalities owning or operating any system 2511
or systems may supply consumers residing outside of and within 2512
five (5) miles of the corporate limits of the municipality. In 2513
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any county traversed by two (2) or more natural gas transmission 2514
lines and having therein two (2) or more natural gas compressor 2515
stations engaged in rendering service in interstate commerce, and 2516
wherein a natural gas transmission line of a municipality can be 2517
laid wholly in alluvial soil, where it is necessary for any 2518
municipality having a population of less than one thousand 2519
(1,000), according to the federal census of 1950, to construct a 2520
gas transmission line for a distance of more than five (5) miles 2521
but not more than eleven (11) miles from its corporate limits to 2522
the nearest point at which an adequate supply of natural gas can 2523
be obtained, and where there are not less than two hundred (200) 2524
prospective gas customers residing outside the corporate limits of 2525
such municipality but along and within one-half (1/2) mile of the 2526
gas transmission line so constructed by the municipality, then and 2527
in that event, the municipality may supply natural gas to such 2528
customers. Any municipality having its own natural gas 2529
transmission system in any county bordering the State of Alabama, 2530
in which U.S. Highway No. 78 and State Highway No. 25 intersect, 2531
and in which there is a publicly supported junior college, may 2532
extend its transmission lines and supply customers within the 2533
county for a distance of fifteen (15) miles from the corporate 2534
limits. Any municipality having a population of less than one 2535
thousand (1,000) people, according to the federal census of 1960, 2536
and being located in the county in which U.S. Highway 51 and U.S. 2537
Highway 82 intersect, and in the county where the main line of 2538
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Illinois Central Railroad and Columbus and Greenville Railroad 2539
intersect, may construct a gas transmission line and supply 2540
customers within a four-county area for a distance of forty-five 2541
(45) miles from the corporate limits of the municipality. Any 2542
municipality having its own water distribution system, the 2543
construction or expansion of which has been financed in whole or 2544
in part by an agency of the United States government, and having a 2545
population of less than five hundred (500) persons, and located in 2546
a county in which Mississippi State Highways Number 12 and Number 2547
429 intersect, may construct, expand and operate its water 2548
distribution system within the county or adjoining counties for a 2549
distance of fifteen (15) miles from the corporate limits. Any 2550
municipality having its own water distribution system, the 2551
construction or expansion of which has been financed in whole or 2552
in part by an agency of the United States government, and having a 2553
population of less than fifteen hundred (1500) persons, and 2554
located in a county in which Highway 15 and Highway 32 intersect 2555
and has a national forest, may construct, expand and operate its 2556
water distribution system within the county or adjoining counties 2557
for a distance of fifteen (15) miles from the corporate limits. 2558
Any municipality having its own water distribution system and 2559
located in a county having two (2) judicial districts, and in 2560
which Mississippi Highways 17 and 35 intersect, may construct, 2561
expand and operate its water distribution system within the county 2562
or adjoining counties for a distance of fifteen (15) miles from 2563
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the corporate limits. Any municipality having its own water 2564
distribution system, wherein U.S. Highway 51 and Mississippi 2565
Highway 35 intersect, and located in a county in which U.S. 2566
Highway 82 and Mississippi Highway 17 intersect, may construct, 2567
expand and operate its water distribution system within the county 2568
or adjoining counties for a distance of fifteen (15) miles from 2569
the corporate limits. Whenever such service shall be furnished to 2570
any consumer residing outside the corporate limits thereof, such 2571
consumer may not be charged at a rate greater than twice the rate 2572
charged for such services within the municipality. 2573
Any municipality located within a county bordering the 2574
Mississippi River and in which Highways 49 and 61 intersect may 2575
acquire, construct, expand and operate its railroad transportation 2576
system for the transportation of passengers and freight for more 2577
than five (5) miles outside its corporate limits and outside the 2578
boundaries of the county in which it is located. Any municipality 2579
having a population of more than forty-five thousand (45,000) but 2580
less than forty-five thousand one hundred (45,100) according to 2581
the 1970 federal decennial census, may expand its motor vehicle 2582
transportation system for the transportation of passengers for 2583
more than five (5) miles outside its corporate limits. 2584
Any municipality having a population of less than five 2585
hundred (500) according to the 1980 federal decennial census, 2586
being located north of U.S. Highway 82 in a county in which is 2587
located a United States Air Force base and a state-supported 2588
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institution of higher learning established primarily for women, 2589
which criteria the Legislature finds to be conducive to the 2590
expansion of natural gas service to support contiguous areas of 2591
such Air Force base, may construct, own and/or operate a public 2592
utility or natural gas system and supply customers within the 2593
county for a distance of eleven (11) miles from the corporate 2594
limits. 2595
SECTION 49. Section 21-27-40, Mississippi Code of 1972, is 2596
brought forward as follows: 2597
21-27-40. (1) Any municipality having its own natural gas 2598
transmission system in any county bordering the State of Alabama 2599
in which U. S. Highway 78 and State Highway 25 intersect and in 2600
which there is a publicly supported junior college and which is 2601
authorized by Section 21-27-39, Mississippi Code of 1972, to 2602
extend its natural gas transmission lines may, in its discretion, 2603
enter into a contract for service with any natural gas district 2604
organized under the laws of this state, any part of which is 2605
located in said county. Such municipality may use such contract in 2606
determining the amount of funds available for the repayment of any 2607
bonds issued for this purpose in accordance with law. 2608
(2) Said natural gas district may enter into a contract with 2609
said municipality to the extent of such municipality's 2610
authorization under Section 21-27-39, Mississippi Code of 1972, 2611
for the construction of gas transmission lines within such 2612
district and for supplying the customers within such district. 2613
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HISTORY: Laws, 1974, ch. 310, §§ 1, 2, eff from and after passage 2614
(approved Feb. 27, 1974). 2615
SECTION 50. Section 21-27-41, Mississippi Code of 1972, is 2616
brought forward as follows: 2617
21-27-41. Whenever the governing authorities of any 2618
municipality shall determine to issue bonds pursuant to the 2619
authority granted in Section 21-27-23 to acquire or improve a 2620
system, it shall cause an estimate to be made of the cost of such 2621
system or improvement, and the fact that such estimate has been 2622
made shall appear in the ordinance authorizing the issuance of 2623
such bonds, which ordinance shall set forth a brief description in 2624
general terms of the contemplated system or improvement, the 2625
estimated life thereof, the said estimated cost thereof, the 2626
amount, date, denominations, rate of interest, times and places of 2627
payment and other details in connection with the issuance of the 2628
bonds, and such covenants and restrictions as may be necessary or 2629
desirable to safeguard the interests of the holders of the bonds. 2630
HISTORY: Codes 1942, § 3519-10; Laws, 1934, chs. 316, 317; Laws, 2631
1950, ch. 494, § 10; Laws, 1971, ch. 504, § 1, eff from and after 2632
passage (approved April 9, 1971). 2633
SECTION 51. Section 21-27-43, Mississippi Code of 1972, is 2634
brought forward as follows: 2635
21-27-43. Except as hereinafter provided, no bonds shall be 2636
issued pursuant to the authority granted in Section 21-27-23 until 2637
and unless a majority of those qualified electors of the 2638
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municipality, voting on a proposition stating in general terms the 2639
maximum amount and purposes of the bonds, have approved the 2640
issuance at a special election called thereon according to law. 2641
However, the requirement for an election to be held before 2642
the issuance of the bonds shall not apply to the issuance of the 2643
revenue bonds for the purpose of improving, repairing or extending 2644
any waterworks system, water supply system, sewage system, sewage 2645
disposal system (or the addition of a sewage disposal system to a 2646
sewage system), gas producing system, gas generating, 2647
transmission, or distribution system, electric generating, 2648
transmission, or distribution system, garbage disposal system, 2649
rubbish disposal or incinerator system, or motor vehicle 2650
transportation system, which is now, or hereafter, owned or 2651
operated by any municipality, or railroad transportation system 2652
owned or operated by any municipality located in a county 2653
bordering the Mississippi River and in which Highways 49 and 61 2654
intersect. The revenue bonds may be issued for such purposes in 2655
the following manner: notice of intention to issue the revenue 2656
bonds, setting out the amount and other terms or conditions of the 2657
proposed issue, shall be given by publication once a week for 2658
three (3) consecutive weeks in a local newspaper published in the 2659
municipality, and if a newspaper is not published in the 2660
municipality, then in some newspaper having a general circulation 2661
in the municipality. After ten (10) days from the last 2662
publication of the notice, the bonds may be sold under the regular 2663
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procedure for selling the bonds unless, within ten (10) days after 2664
the last publication of the notice, a petition signed by not less 2665
than twenty percent (20%) of the qualified voters of such 2666
municipality be filed objecting to and protesting against such 2667
revenue bond issue, in which event the same shall not be made 2668
unless submitted to a special election ordered for the purpose of 2669
determining whether or not a majority of those voting in the 2670
election shall vote for or against the revenue bond issue. The 2671
election shall be ordered to be held not later than forty (40) 2672
days after the date of the last notice of the proposed revenue 2673
bond issue. Notice of the election, stating the purpose of the 2674
election, shall be published once each week for three (3) 2675
consecutive weeks next preceding the time set for holding the 2676
election in the newspaper, provided in this section. The laws 2677
governing municipal elections shall govern the order and conduct 2678
of the election. However, nothing in this section shall prevent 2679
the governing authorities from calling an election, whether 2680
required by petition of twenty percent (20%) of the qualified 2681
voters or not. This section shall not have application to and it 2682
shall not affect the authority granted public utilities 2683
commissions under Section 21-27-25. 2684
SECTION 52. Section 21-27-45, Mississippi Code of 1972, is 2685
brought forward as follows: 2686
21-27-45. Such bonds as may be issued pursuant to the 2687
authority granted in Section 21-27-23 may be serial or term; 2688
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redeemable, with or without premium, or nonredeemable; registered 2689
or coupon bonds with registration privileges as to either 2690
principal and interest, principal only or both. They shall bear 2691
interest at a rate to be determined pursuant to the sale of the 2692
bonds, and shall be payable at such time or times as shall be 2693
prescribed in the ordinance authorizing them. They shall mature 2694
at such time or times, not exceeding the said estimated life of 2695
the contemplated system or improvement, and in no event longer 2696
than thirty (30) years from their date, and at such place or 2697
places as shall be prescribed in the ordinance authorizing their 2698
issuance. Any provisions of the general laws to the contrary 2699
notwithstanding, any bonds and interest coupons issued pursuant to 2700
the authority granted in Section 2l-27-23 shall possess all the 2701
qualities of negotiable instruments. The bonds and the interest 2702
coupons shall be executed in such manner and shall be 2703
substantially in the form prescribed in the authorizing ordinance. 2704
In case any of the officers whose signatures or countersignatures 2705
appear on the bonds or interest coupons shall cease to be such 2706
officers before delivery of such bonds, such signatures or 2707
countersignatures shall nevertheless be valid and sufficient for 2708
all purposes the same as if they had remained in office until such 2709
delivery. No bond shall bear more than one (l) rate of interest. 2710
Each bond shall bear interest from its date to its stated maturity 2711
date at the interest rate specified in the bid. All bonds of the 2712
same maturity shall bear the same rate of interest from date to 2713
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maturity. All interest accruing on such bonds so issued shall be 2714
payable semiannually or annually, except that the first interest 2715
coupon attached to any such bond may be for any period not 2716
exceeding one (l) year. 2717
No interest payment shall be evidenced by more than one (l) 2718
coupon and neither cancelled nor supplemental coupons shall be 2719
permitted. The lowest interest rate specified for any bonds 2720
issued shall not be less than seventy percent (70%) of the highest 2721
interest rate specified for the same bond issue. Such bonds shall 2722
be sold in such manner and upon such terms as the governing 2723
authorities of the municipality shall determine, provided that 2724
such bonds shall not bear a greater overall maximum interest rate 2725
to maturity than that allowed in Section 75-17-103, Mississippi 2726
Code of 1972, and the interest rate on any one (1) interest 2727
maturity shall not exceed the maximum interest rate allowed on 2728
such bonds. Each interest rate specified in any bid must be in 2729
multiples of one-eighth of one percent (1/8 of 1%) or in multiples 2730
of one-tenth of one percent (1/10 of 1%). If serial bonds, such 2731
bonds shall mature annually, and the first maturity date thereof 2732
shall not be more than five (5) years from the date of such bonds. 2733
Such bonds shall be legal investments for trustees and other 2734
fiduciaries, and for savings banks, trust companies and insurance 2735
companies organized under the laws of the State of Mississippi. 2736
The bonds and interest coupons shall be exempt from all state, 2737
county, municipal and other taxation under the laws of the State 2738
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of Mississippi. The principal of and interest upon such bonds 2739
shall be payable solely from the revenues derived from the 2740
operation of the system acquired or improved with proceeds of the 2741
sale of such bonds. No bond issued pursuant to the authority 2742
granted in Section 21-27-23 shall constitute an indebtedness of a 2743
municipality within the meaning of any statutory or charter 2744
restriction, limitation or provision. It shall be plainly stated 2745
on the face of each such bond in substance that the same has been 2746
issued pursuant to the authority granted in Section 21-27-23 and 2747
that the taxing power of the municipality issuing the same is not 2748
pledged to the payment of such bond or interest thereon, and that 2749
such bond and the interest thereon are payable solely from the 2750
revenues of the system to acquire or improve which such bond is 2751
issued. 2752
Such bonds shall be sold on sealed bids at public sale in the 2753
manner provided by Section 31-19-25. In the event the issuing 2754
municipality shall have received a commitment from any agency of 2755
the United States of America for the purchase of all or any 2756
portion of an issue of such bonds prior to the sale thereof or for 2757
financial assistance in providing debt service on such bonds, 2758
then, and in such event, said issue or any part thereof may be 2759
sold to the United States of America or any agency thereof at 2760
private sale. Provided, however, no bonds issued under the 2761
authority of Section 21-27-23 shall bear an overall maximum 2762
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interest rate greater than that allowed in Section 75-17-103, 2763
Mississippi Code of 1972. 2764
It is specifically provided that any bond issue to be awarded 2765
and sold to the United States of America or any agency thereof 2766
shall mature at such time or times, not to exceed thirty-five (35) 2767
years, as shall be prescribed in the ordinance of the municipality 2768
authorizing their issuance. 2769
It is specifically provided that any bond issue to be awarded 2770
and sold to the United States of America or any agency thereof may 2771
be issued as one or more amortized bonds without coupons, may be 2772
dated the date of delivery thereof, and the purchase price for 2773
such bond or bonds may be delivered in multiple advances, with 2774
interest to accrue on the principal advanced from the date of each 2775
such advance. The amount of each such advance and the date 2776
thereof shall be registered on the reverse of each such bond and 2777
attested by the manual signature of the clerk of the municipality. 2778
On issues of Five Million Dollars ($5,000,000.00) or more, 2779
the governing authorities of a municipality may retain the 2780
services of a fiscal advisor to assist in the sale of bonds 2781
hereunder and pay to such fiscal advisor a fee not to exceed the 2782
following amount: Twenty-five Thousand Dollars ($25,000.00) plus 2783
one-quarter of one percent (1/4 of 1%) of the amount of the issue 2784
in excess of Five Million Dollars ($5,000,000.00). No such fiscal 2785
advisor shall be eligible to bid for or participate in the 2786
underwriting of the bonds for which he acted as advisor. 2787
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Before a person can qualify as a fiscal advisor under the 2788
terms of this section, he shall have been actively engaged in the 2789
business of fiscal counseling for municipalities, or the 2790
underwriting of municipal bonds, for a period of five (5) years 2791
prior to qualifying under this section. A partnership or 2792
corporation may become a fiscal advisor hereunder with the same 2793
qualifications. Such person, corporation, or partnership shall 2794
have had prior experience as a fiscal advisor or been involved in 2795
the underwriting or investing in bonds of the State of 2796
Mississippi, or one or more of the subdivisions thereof, and such 2797
person, partnership or corporation shall be recognized in the 2798
fiscal community as a reputable and qualified fiscal advisor. 2799
SECTION 53. Section 21-27-47, Mississippi Code of 1972, is 2800
brought forward as follows: 2801
21-27-47. Any municipality having outstanding bonds issued 2802
pursuant to the authority granted in Section 21-27-23 shall 2803
maintain rates for all the services and facilities afforded by any 2804
system, the revenues of which are pledged to the payment of such 2805
bonds, which rates shall be sufficient at all times to maintain an 2806
interest and bond redemption fund sufficient to pay the interest 2807
on and principal of such bonds as and when the same become due and 2808
payable and, if so provided in the ordinance authorizing such 2809
bonds, to accumulate a reserve in such fund, and to provide for 2810
the payment of such cost of operation and maintenance as may be 2811
necessary to keep such system at all times in good repair and 2812
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working order. Such rates shall be fixed by separate ordinance 2813
precedent to or at the time of the issuance of such bonds and 2814
shall be revised from time to time so as to produce the amounts 2815
necessary to provide for the foregoing. Bonds issued pursuant to 2816
the authority granted in Section 21-27-23 to acquire or improve a 2817
system shall be secured by a pledge of an amount of the gross 2818
revenues of such system sufficient to maintain such an interest 2819
and bond redemption fund. However, if there are then outstanding 2820
bonds to the payment of which the revenues of a system have been 2821
previously pledged, then, until said outstanding bonds have been 2822
retired, bonds issued to improve such system shall be secured by a 2823
pledge of the revenues of the system in such an amount only after 2824
deductions have been made for servicing the said outstanding bonds 2825
and for maintaining and operating the system. Notwithstanding the 2826
above provisions, all revenue bonds issued for a specific utility 2827
may be issued on an equivalent basis, provided that each and every 2828
ordinance authorizing each and every bond issued shall clearly 2829
state the basis on which future revenue bond issues shall be 2830
provided for in order to place them on an equivalent basis with 2831
prior issues. 2832
HISTORY: Codes, 1942, § 3519-11; Laws, 1934, chs. 316, 317; Laws, 2833
1950, ch. 494, § 11; Laws, 1958, ch. 529, § 3. 2834
SECTION 54. Section 21-27-49, Mississippi Code of 1972, is 2835
brought forward as follows: 2836
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21-27-49. Whenever any municipality shall issue any bonds or 2837
other evidence of indebtedness which are payable solely from 2838
revenues to be derived from any system, the governing authorities 2839
of such municipality may, by appropriate provision in the 2840
ordinance or resolution authorizing the issuance of such bonds, or 2841
by separate resolution or ordinance passed at or prior to the 2842
actual sale of such bonds, bind and obligate such municipality to 2843
take, for a period not exceeding the full term of such bonds, at 2844
least a stated minimum of the services to be afforded by such 2845
system and to pay, out of its corporate funds, a least a stated 2846
minimum price therefor. Such provision, resolution or ordinance 2847
shall constitute a contract between such municipality and all the 2848
holders of such bonds. 2849
All such agreements heretofore entered into by any such 2850
municipality, whether such bonds have actually been delivered and 2851
paid for or not, are hereby ratified, approved and validated. 2852
HISTORY: Codes, 1942, § 3519-23; Laws, 1936, ch. 283; Laws, 1950, 2853
ch. 494, § 23, eff from and after July 1, 1950. 2854
SECTION 55. Section 21-27-51, Mississippi Code of 1972, is 2855
brought forward as follows: 2856
21-27-51. Any municipality which shall have issued bonds 2857
pursuant to the authority granted in Section 21-27-23, all or any 2858
portion of which shall at any time hereafter remain outstanding 2859
and unpaid, is hereby authorized, in connection with the issuance 2860
of additional bonds hereunder, to issue refunding bonds for the 2861
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purpose of taking up, paying and redeeming all such outstanding 2862
and unpaid bonds. Such refunding bonds and such additional bonds 2863
may be authorized and issued separately or may be consolidated 2864
into one issue. Such outstanding and unpaid bonds may be refunded 2865
without notice and without an election thereon, and such 2866
additional bonds may be refunded without notice and without an 2867
election except as provided in Section 21-27-43. The proceeds of 2868
any such consolidated bonds shall be used to take up, pay and 2869
redeem all of such outstanding and unpaid bonds, at their 2870
redemption price, and the balance of such proceeds shall be used 2871
and expended for the purposes for which the additional bonds were 2872
authorized to be issued. In the event any such outstanding bonds, 2873
by the terms thereof, shall be redeemable prior to maturity at the 2874
option of such municipality, then such option of redemption shall 2875
be exercised in the manner provided in such bonds, and the 2876
refunding bonds shall not be issued or delivered more than two 2877
calendar months in advance of the date upon which such outstanding 2878
bonds shall have been called for redemption. In the event that 2879
such outstanding bonds, by the terms thereof, be not so redeemable 2880
prior to maturity, then the refunding bonds shall not be issued, 2881
except concurrently with the surrender and cancellation of a like 2882
amount of the bonds to be refunded thereby. All bonds issued under 2883
the provisions of this section shall have like incidents and shall 2884
be payable from the same source or sources and the payment thereof 2885
shall be secured in like manner as are bonds issued pursuant to 2886
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the authority granted in Section 21-27-23. In lieu of selling such 2887
portion of such consolidated bonds, as may be required to provide 2888
for the redemption of such outstanding bonds, such consolidated 2889
bonds may be issued and delivered in exchange for and upon 2890
surrender and cancellation of a like amount of the bonds to be 2891
refunded thereby. 2892
HISTORY: Codes, 1942, § 3519-09; Laws, 1942, ch. 231; Laws, 1950, 2893
ch. 494, § 9; Laws, 1958, ch. 529, § 2. 2894
SECTION 56. Section 21-27-53, Mississippi Code of 1972, is 2895
brought forward as follows: 2896
21-27-53. The holder of any bond or any interest coupon 2897
issued pursuant to the authority granted in Sections 21-27-23 and 2898
21-27-51 may, by suit, action, mandamus or other proceedings at 2899
law or in equity, enforce and compel performance by the 2900
appropriate official or officials of the municipality of any or 2901
all acts and duties to be performed by such municipality under the 2902
provisions of Sections 21-27-11 through 21-27-69 and the ordinance 2903
authorizing the issuance of such bond or interest coupon. If there 2904
be any default in the payment of the interest on and principal of 2905
any of said bonds, any court having jurisdiction in the proper 2906
action may, upon petition of the holder of any of such bonds, 2907
appoint a receiver to administer and operate the system with power 2908
to fix rates and collect charges sufficient to provide for the 2909
payment of all bonds outstanding to the payment of which the 2910
revenues of such system are pledged and to pay the expenses of 2911
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operating and maintaining such system and to apply the revenues of 2912
such system, all in conformity with the provisions of Sections 2913
21-27-11 through 21-27-69 and of the ordinance authorizing the 2914
issuance of such bonds. 2915
HISTORY: Codes, 1942, § 3519-12; Laws, 1934, ch. 317; Laws, 1950, 2916
ch. 494, § 12, eff from and after July 1, 1950. 2917
SECTION 57. Section 21-27-55, Mississippi Code of 1972, is 2918
brought forward as follows: 2919
21-27-55. The governing authorities of any municipality 2920
authorizing revenue bonds pursuant to the authority granted in 2921
Sections 21-27-23 and 21-27-51, may make provisions for any of 2922
such revenue bonds to be called for payment at any interest 2923
payment date before maturity, provided the municipality shall have 2924
on hand in its bond and interest fund sufficient moneys, not 2925
otherwise appropriated or pledged, in excess of the interest and 2926
principal requirements within the next two succeeding calendar, 2927
operating or fiscal years. 2928
HISTORY: Codes, 1942, § 3519-20; Laws, 1934, ch. 316; Laws, 1950, 2929
ch. 494, § 20, eff from and after July 1, 1950. 2930
SECTION 58. Section 21-27-57, Mississippi Code of 1972, is 2931
brought forward as follows: 2932
21-27-57. In the authorizing order or ordinance, the 2933
governing authorities of the municipality shall set aside monthly 2934
and shall pledge the revenues of the system or combined system, in 2935
separate and special funds as follows: ( * * *a) operation and 2936
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maintenance fund; ( * * *b) depreciation fund; ( * * *c) bond and 2937
interest fund; ( * * *d) contingent fund. A sufficient amount 2938
shall be set aside each year for the retirement of the bonds and 2939
interest. Any surplus revenue remaining shall be disposed of by 2940
the governing authorities of the municipality as they may 2941
determine from time to time for the best interest of the 2942
municipality. However, in the segregation into the several funds 2943
the governing authorities may prescribe a reasonable excess amount 2944
to be placed in the revenue bond and interest fund from time to 2945
time during the earlier years of maturity of such bonds so as to 2946
thereby provide and produce a cushion fund to meet any possible 2947
deficiencies therein in future years. In the event such excess 2948
amounts are provided in the earlier years, the same would be 2949
available for such purposes. Bonds pursuant to the authority 2950
granted in Sections 21-27-23 and 21-27-51, shall be payable solely 2951
from revenues of said project and out of the bond and interest 2952
fund. 2953
SECTION 59. Section 21-27-59, Mississippi Code of 1972, is 2954
brought forward as follows: 2955
21-27-59. Nothing in Sections 21-27-11 through 21-27-69 2956
shall be construed to prohibit the municipality from appropriating 2957
and using any part of its available income or revenues derived 2958
from any source other than from the operation of such system or 2959
combined system in paying any immediate expenses of operation 2960
and/or maintenance of any such system or combined system. Nothing 2961
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in Sections 21-27-11 through 21-27-69 shall be construed, however, 2962
to require the municipality to do so. 2963
HISTORY: Codes, 1942, § 3519-16; Laws, 1934, ch. 316; Laws, 1950, 2964
ch. 494, § 16, eff from and after July 1, 1950. 2965
SECTION 60. Section 21-27-61, Mississippi Code of 1972, is 2966
brought forward as follows: 2967
21-27-61. The governing authorities of any municipality 2968
shall devote all monies of the system derived from any source 2969
other than the issuance of bonds for purposes authorized by the 2970
laws of the State of Mississippi, to or for the payment of all 2971
operating expenses, including such items as are normally required 2972
of utilities for sales development; to or for the payment of all 2973
bonds and interest on outstanding revenue bonds, if any, of such 2974
system; to or for the acquisition and improvement of the system 2975
contingencies; to or for the payment of all other obligations 2976
incurred in the operation and maintenance of the system and the 2977
furnishing of service; and to or for the creation and maintenance 2978
of a cash working fund or a surplus fund to be used for 2979
replacement, extension of systems and emergencies. The balance of 2980
any monies, including but not limited to, any which have 2981
heretofore been classified as revenues or surplus of such system, 2982
if any, may be used for any lawful, municipal purpose and may be 2983
paid to the governing authorities of the municipality for 2984
distribution to the various municipal funds or may be disbursed 2985
for such purpose by the governing authorities at their direction. 2986
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The purpose of any allocation or expenditure of money made 2987
pursuant to this section shall be spread upon the minutes of the 2988
municipal governing authorities. 2989
HISTORY: Codes, 1942, § 3519-17; Laws, 1934, ch. 316; Laws, 1950, 2990
ch. 494, § 17; Laws, 1990, ch. 435, § 1, eff from and after 2991
passage (approved March 19, 1990). 2992
SECTION 61. Section 21-27-63, Mississippi Code of 1972, is 2993
brought forward as follows: 2994
21-27-63. Nothing in Sections 21-27-11 through 21-27-69 2995
shall be construed as authorizing any municipality to impair or 2996
commit a breach of the obligation of any valid lien or contract 2997
created or entered into by it, the intention hereof being to 2998
authorize the pledging, setting aside and segregation of gross 2999
revenue only where consistent with outstanding obligations of such 3000
municipality. 3001
HISTORY: Codes, 1942, § 3519-21; Laws, 1934, ch. 316; Laws, 1950, 3002
ch. 494, § 21, eff from and after July 1, 1950. 3003
SECTION 62. Section 21-27-65, Mississippi Code of 1972, is 3004
brought forward as follows: 3005
21-27-65. If, after the governing authorities of any 3006
municipality have issued revenue bonds pursuant to the authority 3007
granted in Sections 21-27-23 and 21-27-51, said governing 3008
authorities fail or refuse to carry out their duties with 3009
reference to setting aside the trust funds, said officers shall be 3010
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guilty of a misdemeanor and, upon trial and conviction, shall be 3011
removed from office. 3012
HISTORY: Codes, 1942, § 3519-22; Laws, 1934, ch. 316; Laws, 1950, 3013
ch. 494, § 22, eff from and after July 1, 1950. 3014
SECTION 63. Section 21-27-67, Mississippi Code of 1972, is 3015
brought forward as follows: 3016
21-27-67. Sections 21-27-11 through 21-27-69, being 3017
necessary for and to secure the public health, safety, convenience 3018
and welfare of the municipalities of the State of Mississippi, 3019
shall be liberally construed to effect the purposes hereof. 3020
The powers conferred by Sections 21-27-11 through 21-27-69 3021
shall be in addition to the powers conferred by any other law, 3022
general, special or local, and such sections shall, without 3023
reference to any other statute or to any charter, be deemed full 3024
authority to purchase or improve and to own and operate the 3025
authorized revenue producing systems, to fix, maintain, and to 3026
collect rates for the facilities afforded by such systems, to 3027
issue and to sell the authorized bonds, and shall be construed as 3028
an additional and alternative method therefor, any provisions of 3029
the general laws of the state or of any charter to the contrary 3030
notwithstanding. 3031
HISTORY: Codes, 1942, §§ 3519-13, 3519-29; Laws, 1934, ch. 317; 3032
Laws, 1936, ch. 186; Laws, 1942, ch. 231; Laws, 1950, ch. 494, §§ 3033
13, 29; Laws, 1958, ch. 529, § 4. 3034
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SECTION 64. Section 21-27-69, Mississippi Code of 1972, is 3035
brought forward as follows: 3036
21-27-69. The repeal heretofore of any law authorizing a 3037
municipality to borrow money and issue bonds to acquire or improve 3038
any system shall not affect the validity of any bonds issued or 3039
contracts entered into under the provisions of any such repealed 3040
laws. 3041
HISTORY: Codes, 1942, § 3519-30; Laws, 1950, ch. 494, § 30, eff 3042
from and after July 1, 1950. 3043
SECTION 65. Section 21-27-71, Mississippi Code of 1972, is 3044
brought forward as follows: 3045
21-27-71. Whenever the governing authorities of any 3046
municipality of more than one hundred thousand (100,000) 3047
population shall determine to issue bonds under the provisions of 3048
Sections 21-27-11 to 21-27-69, to acquire or improve a system, it 3049
shall cause an estimate to be made of the cost of such system or 3050
improvement, and the fact that such estimate has been made shall 3051
appear in the ordinance authorizing the issuance of such bonds, 3052
which ordinance shall set forth a brief description in general 3053
terms of the contemplated system or improvement, the estimated 3054
life thereof, the said estimated cost thereof, the amount, date, 3055
denominations, rate of interest, times and places of payment and 3056
other details in connection with the issuance of the bonds, and 3057
such covenants and restrictions as may be necessary or desirable 3058
to safeguard the interests of the holders of the bonds. Such 3059
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bonds may be serial or term; redeemable, with or without premium, 3060
or nonredeemable; registered or coupon bonds with registration 3061
privileges as to either principal and interest, principal only or 3062
both. They shall bear interest at a rate to be determined 3063
pursuant to the sale of the bonds, and shall be payable at such 3064
time or times as shall be prescribed in the ordinance authorizing 3065
them. They shall mature at such time or times, not exceeding the 3066
said estimated life of the contemplated system or improvement, and 3067
in no event exceeding thirty (30) years from their date, and at 3068
such place or places as shall be prescribed in the ordinance 3069
authorizing their issuance; provided, however, that any bond issue 3070
to be awarded and sold to the United States of America or any 3071
agency thereof shall mature at such time or times, not to exceed 3072
thirty-five (35) years, as shall be prescribed in the ordinance 3073
authorizing their issuance. Any provisions of the general laws to 3074
the contrary notwithstanding, any bonds and interest coupons 3075
issued pursuant to the authority of this section shall possess all 3076
the qualities of negotiable instruments. The bonds and the 3077
interest coupons shall be executed in such manner and shall be 3078
substantially in the form prescribed in the authorizing ordinance. 3079
In case any of the officers whose signatures or countersignatures 3080
appear on the bonds or interest coupons shall cease to be such 3081
officers before delivery of such bonds, such signatures or 3082
countersignatures shall nevertheless be valid and sufficient for 3083
all purposes the same as if they had remained in office until such 3084
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delivery. No bond shall bear more than one (1) rate of interest. 3085
Each bond shall bear interest from its date to its stated maturity 3086
date at the interest rate specified in the bid. All bonds of the 3087
same maturity shall bear the same rate of interest from date to 3088
maturity. All interest accruing on such bonds so issued shall be 3089
payable semiannually or annually, except that the first interest 3090
coupon attached to any such bond may be for any period not 3091
exceeding one (1) year. 3092
No interest payment shall be evidenced by more than one (1) 3093
coupon and neither cancelled nor supplemental coupons shall be 3094
permitted. The lowest interest rate specified for any bonds 3095
issued shall not be less than seventy percent (70%) of the highest 3096
interest rate specified for the same bond issue. Such bonds shall 3097
be sold in such manner and upon such terms as the governing 3098
authorities of the municipality shall determine, provided that 3099
such bonds shall not bear a greater overall maximum interest rate 3100
to maturity than that allowed in Section 75-17-103, Mississippi 3101
Code of 1972, and the interest rate on any one (1) interest 3102
maturity shall not exceed the maximum interest rate allowed on 3103
such bonds. If serial bonds, such bonds shall mature annually, 3104
and the first maturity date thereof shall not be more than five 3105
(5) years from the date of such bonds. Such bonds shall be legal 3106
investments for trustees and other fiduciaries, and for savings 3107
banks, trust companies and insurance companies organized under the 3108
laws of the State of Mississippi. The bonds and interest coupons 3109
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shall be exempt from all state, county, municipal and other 3110
taxation under the laws of the State of Mississippi. The principal 3111
of and interest upon such bonds shall be payable solely from the 3112
revenues derived from the operation of the system acquired or 3113
improved with proceeds of the sale of such bonds. No bond issued 3114
pursuant to this section shall constitute an indebtedness of a 3115
municipality within the meaning of any statutory or charter 3116
restriction, limitation or provision. It shall be plainly stated 3117
on the face of each such bond in substance that the same bond has 3118
been issued under the provisions of this section and that the 3119
taxing power of the municipality issuing the same is not pledged 3120
to the payment of such bond or interest thereon, and that such 3121
bond and the interest thereon are payable solely from the revenues 3122
of the system to acquire or improve which such bond is issued. 3123
Such bonds shall be sold on sealed bids at public sale in the 3124
manner provided by Section 31-19-25. In the event the issuing 3125
municipality shall have received a commitment from any agency of 3126
the United States of America for the purchase of all or any 3127
portion of an issue of such bonds prior to the sale thereof or for 3128
financial assistance in providing debt service on such bonds, 3129
then, and in such event, said issue or any part thereof may be 3130
sold to the United States of America or any agency thereof at 3131
private sale. Bonds in the aggregate amount of Two Hundred 3132
Thousand Dollars ($200,000.00) for any project may be sold at 3133
private sale either to underwriters or investors. 3134
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On issues of Five Million Dollars ($5,000,000.00) or more, 3135
the governing authorities of a municipality may retain the 3136
services of a fiscal advisor to assist in the sale of bonds 3137
hereunder and pay to such fiscal advisor a fee not to exceed the 3138
following amount: Twenty-five Thousand Dollars ($25,000.00) plus 3139
one-quarter of one percent (1/4 of 1%) of the amount of the issue 3140
in excess of Five Million Dollars ($5,000,000.00). No such fiscal 3141
advisor shall be eligible to bid for or participate in the 3142
underwriting of the bonds for which he acted as advisor. 3143
Before a person can qualify as a fiscal advisor under the 3144
terms of this section, he shall have been actively engaged in the 3145
banking business, or the business of fiscal counseling for 3146
municipalities, or the underwriting of municipal bonds, for a 3147
period of five (5) years prior to qualifying under this section. A 3148
partnership or corporation may become a fiscal advisor hereunder 3149
with the same qualifications. Such person, corporation, or 3150
partnership shall have had prior experience as a fiscal advisor or 3151
been involved in the underwriting or investing in bonds of the 3152
State of Mississippi, or one or more of the subdivisions thereof, 3153
and such person, partnership or corporation shall be recognized in 3154
the fiscal community as a reputable and qualified fiscal advisor. 3155
SECTION 66. Section 21-27-73, Mississippi Code of 1972, is 3156
brought forward as follows: 3157
21-27-73. The governing authority of any municipality that 3158
owns and operates a gas distribution system, as defined in Section 3159
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21-27-11(b), and the governing authority of any public natural gas 3160
district are authorized to contract for the purchase of the supply 3161
of natural gas for a term of up to ten (10) years with any public 3162
nonprofit corporation which is organized under the laws of this 3163
state or any other state. 3164
SECTION 67. Section 21-27-75, Mississippi Code of 1972, is 3165
brought forward as follows: 3166
21-27-75. (1) The governing authorities of a municipality 3167
are authorized and empowered, in their discretion, to enter into 3168
an interlocal agreement with a rural water association operating 3169
within the corporate limits of the municipality that requires the 3170
association to terminate the water service of any of its customers 3171
who are thirty (30) days or more delinquent in the payment of 3172
charges for sewer services provided by the municipality. 3173
(2) Any agreement entered into under this section shall at a 3174
minimum: 3175
(a) Require the municipality to notify the association 3176
of any customer of the association who also has sewer service 3177
provided by the municipality who is thirty (30) days or more 3178
delinquent in the payment of sewer charges by a method agreeable 3179
to the municipality and the association; 3180
(b) Provide that upon receipt of a notification the 3181
association shall terminate the water service of the named 3182
customer; 3183
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(c) Provide that upon satisfaction of the delinquency 3184
and any fees connected with the delinquency and the termination of 3185
water service, the association shall restart the water service of 3186
the customer; 3187
(d) Provide that the municipality shall save and hold 3188
harmless the association against any and all claims based on the 3189
disconnection of water or sewer service and any other damages 3190
resulting from any action taken by the association under an 3191
interlocal agreement entered into under this section. 3192
(3) Upon entering into an interlocal agreement under this 3193
section, the association is authorized to terminate the water 3194
service of any customer delinquent in the payment of sewer charges 3195
to the municipality pursuant to the terms of the interlocal 3196
agreement. 3197
SECTION 68. Section 21-33-45, Mississippi Code of 1972, is 3198
brought forward as follows: 3199
21-33-45. The governing authorities of each municipality of 3200
this state shall, either at their regular meeting in September of 3201
each year or not later than ten (10) days after the final approval 3202
of the assessment rolls, levy the municipal ad valorem taxes for 3203
the fiscal year next succeeding, and shall, by resolution, fix the 3204
tax rate or levy for the municipality and for any other taxing 3205
districts of which the municipality may be a part. The rates or 3206
levies for the municipality or for any such taxing district shall 3207
be expressed in mills or a decimal fraction of a mill, which tax 3208
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rates, or levies, shall determine the ad valorem taxes to be 3209
collected upon each dollar of valuation upon the assessment rolls 3210
of the municipality for municipal taxes, and to be collected upon 3211
each dollar of valuation as shown upon the assessment rolls of the 3212
municipality for each such taxing district, except as to such 3213
values as may be exempt, in whole or in part, from certain tax 3214
rates or levies. If the rates or levies for the municipality or 3215
taxing district are an increase from the previous fiscal year, 3216
then the proposed rate or levy increase shall be advertised in 3217
accordance with Section 27-39-203. 3218
In making the levy of taxes, the governing authorities shall 3219
specify in such resolution the levy for each purpose as follows: 3220
(a) For general revenue purposes and for general 3221
improvements, as authorized by Section 27-39-307. 3222
(b) For school purposes, including all maintenance 3223
levies, whether made against the property within such 3224
municipality, or within any taxing district embraced in such 3225
municipality, as authorized by Section 27-39-307 and Section 3226
37-57-3 et seq. 3227
(c) For municipal bonds and interest thereon, for 3228
school bonds and interest thereon, separately for municipal-wide 3229
bonds and for the bonds of each school district. 3230
(d) For municipal-wide bonds and interest thereon, 3231
other than for school bonds. 3232
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ST: Metro Jackson Water Authority Act; enact.
(e) For loans, notes or any other obligation, and the 3233
interest thereon, if permitted by law. 3234
(f) For special improvement or special benefit levies, 3235
as now authorized by law. 3236
(g) For any other purpose for which a levy is lawfully 3237
made. If any municipal-wide levy is made for any general or 3238
special purpose under the provisions of any law other than Section 3239
27-39-307 each such levy shall be separately stated in the 3240
resolution, and the law authorizing same shall be expressly stated 3241
therein. 3242
If the governing authorities of any municipality shall not 3243
levy the municipal taxes and the district taxes at its regular 3244
September meeting, such governing authorities shall levy the same 3245
at an adjourned or special meeting not later than ten (10) days 3246
after the final approval of the assessment rolls. However, that 3247
if such levy be not made on or before September 15 then road and 3248
bridge privilege tax license plates may be issued by the tax 3249
collector or Department of Revenue, as the case may be, for motor 3250
vehicles as defined in the Motor Vehicle Ad Valorem Tax Law of 3251
1958 (Section 27-51-1 et seq.), without collecting or requiring 3252
proof of payment of municipal ad valorem taxes until such levy is 3253
duly certified to him, and for twenty-four (24) hours thereafter. 3254
In the case of a municipality operating under a special or 3255
private charter providing for or authorizing the assessment, 3256
levying and collection of ad valorem taxes prior to October in 3257
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ST: Metro Jackson Water Authority Act; enact.
each year, ad valorem taxes for such municipality shall be levied 3258
at the time prescribed or authorized by such special or private 3259
charter, unless the governing authority of such municipality by 3260
resolution adopted and spread of record in its minutes elect to 3261
levy ad valorem taxes at the time prescribed hereinbefore in this 3262
section. In any event, however, all ad valorem taxes levied by 3263
any municipality in this state, shall be levied in the manner 3264
required herein regardless of the time when such taxes are levied. 3265
SECTION 69. Section 27-39-307, Mississippi Code of 1972, is 3266
brought forward as follows: 3267
27-39-307. Municipalities may levy ad valorem taxes upon all 3268
taxable property within such municipality for general revenue 3269
purposes and for general improvements. Further, the governing 3270
authorities of any municipality may make additional levies for 3271
special purposes as authorized by law. Any such levy which is an 3272
increase from the previous fiscal year must be advertised in 3273
accordance with Sections 27-39-203 and 27-39-205. In addition to 3274
funding municipal general purposes, the municipal general ad 3275
valorem tax levy may be used to supplement any municipal ad 3276
valorem tax levy for a special purpose authorized by law, 3277
excluding levies for schools, without regard to any statutory 3278
millage limitation on such special purpose tax levy; however, 3279
nothing herein contained shall be construed to exempt such tax 3280
levies from the limitation on total receipts under Section 3281
27-39-321. 3282

SECTION 70. This act shall take effect and be in force from 3283
and after its passage. 3284