Bonds; create a rural counties and municipalities emergency infrastructure loan program and authorize issuance of bonds.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Simmons (12th)

SENATE BILL NO. 2827

AN ACT TO ESTABLISH A REVOLVING LOAN PROGRAM FOR THE PURPOSE 1
OF MAKING LOANS TO ASSIST RURAL COUNTIES AND MUNICIPALITIES IN 2
PAYING COSTS ASSOCIATED WITH EMERGENCY REPAIR, MAINTENANCE, 3
CONSTRUCTION, RECONSTRUCTION, UPGRADES OF AND IMPROVEMENTS TO 4
INFRASTRUCTURE PROJECTS; TO PROVIDE THAT THE MISSISSIPPI 5
DEVELOPMENT AUTHORITY SHALL ADMINISTER THE REVOLVING LOAN PROGRAM 6
CREATED IN THIS ACT; TO CREATE A SPECIAL FUND IN THE STATE 7
TREASURY, DESIGNATED AS THE "RURAL COUNTIES AND MUNICIPALITIES 8
EMERGENCY INFRASTRUCTURE IMPROVEMENTS FUND"; TO AUTHORIZE THE 9
ISSUANCE OF $10,000,000.00 OF STATE GENERAL OBLIGATION BONDS TO 10
PROVIDE FUNDS FOR THE "RURAL COUNTIES AND MUNICIPALITIES EMERGENCY 11
INFRASTRUCTURE IMPROVEMENTS FUND"; AND FOR RELATED PURPOSES. 12
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 13
SECTION 1. (1) For the purposes of this section, the 14
following terms shall have the meanings ascribed in this section 15
unless the context clearly indicates otherwise: 16
(a) "MDA" means the Mississippi Development Authority. 17
(b) "Rural county" means a county in the State of 18
Mississippi with a population of thirty thousand (30,000) or less 19
according to the most recent federal decennial census at the time 20
the county submits its application to the MDA under this section. 21
(c) "Rural municipality" means a municipality in the 22
State of Mississippi with a population of ten thousand (10,000) or 23
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less according to the most recent federal decennial census at the 24
time the municipality submits its application to the MDA under 25
this section. 26
(2) There is hereby created in the State Treasury a special 27
fund to be designated as the "Rural Counties and Municipalities 28
Emergency Infrastructure Improvements Fund," which shall consist 29
of funds made available by the Legislature in any manner and funds 30
from any other source designated for deposit into such fund. 31
Unexpended amounts remaining in the fund at the end of a fiscal 32
year shall not lapse into the State General Fund, and any 33
investment earnings or interest earned on amounts in the fund 34
shall be deposited to the credit of the fund. Monies in the fund 35
shall be used to make loans to rural counties and rural 36
municipalities for the purposes provided in this section. 37
Repayments on loans made under this section shall be deposited 38
into the fund. 39
(3) The MDA shall establish a revolving loan program to make 40
loans to rural counties and rural municipalities for the purpose 41
of assisting such counties and municipalities in paying costs 42
associated with emergency repair, maintenance, construction, 43
reconstruction, upgrades of and improvements to infrastructure and 44
infrastructure-related projects. The maximum amount of a loan 45
made under this section cannot exceed Two Hundred Fifty Thousand 46
Dollars ($250,000.00) and the maximum term of a loan cannot exceed 47
five (5) years. A rural county or rural municipality may apply to 48
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the MDA for a loan under this section in the manner provided for 49
in this section. 50
(4) A rural county or rural municipality desiring a loan 51
under this section must submit an application to the MDA. The 52
application must include a description of the project for which 53
the loan is requested, the cost of the project for which the loan 54
is requested, the amount of the loan requested and any other 55
information required by the MDA. 56
(5) The MDA shall have all powers necessary to implement and 57
administer the program established under this section, and the MDA 58
shall promulgate rules and regulations, in accordance with the 59
Mississippi Administrative Procedures Law, necessary for the 60
implementation of this section. 61
SECTION 2. (1) As used in this section, the following words 62
shall have the meanings ascribed herein unless the context clearly 63
requires otherwise: 64
(a) "Accreted value" of any bonds means, as of any date 65
of computation, an amount equal to the sum of (i) the stated 66
initial value of such bond, plus (ii) the interest accrued thereon 67
from the issue date to the date of computation at the rate, 68
compounded semiannually, that is necessary to produce the 69
approximate yield to maturity shown for bonds of the same 70
maturity. 71
(b) "State" means the State of Mississippi. 72
(c) "Commission" means the State Bond Commission. 73
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(2) (a) The Mississippi Development Authority, at one time, 74
or from time to time, may declare by resolution the necessity for 75
issuance of general obligation bonds of the State of Mississippi 76
to provide funds for the loan program authorized in Section 1 of 77
this act. Upon the adoption of a resolution by the Mississippi 78
Development Authority, declaring the necessity for the issuance of 79
any part or all of the general obligation bonds authorized by this 80
subsection, the Mississippi Development Authority shall deliver a 81
certified copy of its resolution or resolutions to the commission. 82
Upon receipt of such resolution, the commission, in its 83
discretion, may act as the issuing agent, prescribe the form of 84
the bonds, determine the appropriate method for sale of the bonds, 85
advertise for and accept bids or negotiate the sale of the bonds, 86
issue and sell the bonds so authorized to be sold, and do any and 87
all other things necessary and advisable in connection with the 88
issuance and sale of such bonds. The total amount of bonds issued 89
under this section shall not exceed Ten Million Dollars 90
($10,000,000.00). No bonds authorized under this section shall be 91
issued after July 1, 2030. 92
(b) The proceeds of bonds issued pursuant to this 93
section shall be deposited into the Rural Counties and 94
Municipalities Emergency Infrastructure Improvements Loan Fund 95
created pursuant to Section 1 of this act. Any investment 96
earnings on bonds issued pursuant to this section shall be used to 97
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pay debt service on bonds issued under this section, in accordance 98
with the proceedings authorizing issuance of such bonds. 99
(3) The principal of and interest on the bonds authorized 100
under this section shall be payable in the manner provided in this 101
subsection. Such bonds shall bear such date or dates, be in such 102
denomination or denominations, bear interest at such rate or rates 103
(not to exceed the limits set forth in Section 75-17-101, 104
Mississippi Code of 1972), be payable at such place or places 105
within or without the State of Mississippi, shall mature 106
absolutely at such time or times not to exceed twenty-five (25) 107
years from date of issue, be redeemable before maturity at such 108
time or times and upon such terms, with or without premium, shall 109
bear such registration privileges, and shall be substantially in 110
such form, all as shall be determined by resolution of the 111
commission. 112
(4) The bonds authorized by this section shall be signed by 113
the chairman of the commission, or by his facsimile signature, and 114
the official seal of the commission shall be affixed thereto, 115
attested by the secretary of the commission. The interest 116
coupons, if any, to be attached to such bonds may be executed by 117
the facsimile signatures of such officers. Whenever any such 118
bonds shall have been signed by the officials designated to sign 119
the bonds who were in office at the time of such signing but who 120
may have ceased to be such officers before the sale and delivery 121
of such bonds, or who may not have been in office on the date such 122
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bonds may bear, the signatures of such officers upon such bonds 123
and coupons shall nevertheless be valid and sufficient for all 124
purposes and have the same effect as if the person so officially 125
signing such bonds had remained in office until their delivery to 126
the purchaser, or had been in office on the date such bonds may 127
bear. However, notwithstanding anything herein to the contrary, 128
such bonds may be issued as provided in the Registered Bond Act of 129
the State of Mississippi. 130
(5) All bonds and interest coupons issued under the 131
provisions of this section have all the qualities and incidents of 132
negotiable instruments under the provisions of the Uniform 133
Commercial Code, and in exercising the powers granted by this 134
section, the commission shall not be required to and need not 135
comply with the provisions of the Uniform Commercial Code. 136
(6) The commission shall act as issuing agent for the bonds 137
authorized under this section, prescribe the form of the bonds, 138
determine the appropriate method for sale of the bonds, advertise 139
for and accept bids or negotiate the sale of the bonds, issue and 140
sell the bonds so authorized to be sold, pay all fees and costs 141
incurred in such issuance and sale, and do any and all other 142
things necessary and advisable in connection with the issuance and 143
sale of such bonds. The commission is authorized and empowered to 144
pay the costs that are incident to the sale, issuance and delivery 145
of the bonds authorized under this section from the proceeds 146
derived from the sale of such bonds. The commission may sell such 147
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bonds on sealed bids at public sale or may negotiate the sale of 148
the bonds for such price as it may determine to be for the best 149
interest of the State of Mississippi. All interest accruing on 150
such bonds so issued shall be payable semiannually or annually. 151
If such bonds are sold by sealed bids at public sale, notice 152
of the sale shall be published at least one time, not less than 153
ten (10) days before the date of sale, and shall be so published 154
in one or more newspapers published or having a general 155
circulation in the City of Jackson, Mississippi, selected by the 156
commission. 157
The commission, when issuing any bonds under the authority of 158
this section, may provide that bonds, at the option of the State 159
of Mississippi, may be called in for payment and redemption at the 160
call price named therein and accrued interest on such date or 161
dates named therein. 162
(7) The bonds issued under the provisions of this section 163
are general obligations of the State of Mississippi, and for the 164
payment thereof the full faith and credit of the State of 165
Mississippi is irrevocably pledged. If the funds appropriated by 166
the Legislature are insufficient to pay the principal of and the 167
interest on such bonds as they become due, then the deficiency 168
shall be paid by the State Treasurer from any funds in the State 169
Treasury not otherwise appropriated. All such bonds shall contain 170
recitals on their faces substantially covering the provisions of 171
this subsection. 172
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(8) Upon the issuance and sale of bonds under the provisions 173
of this section, the commission shall transfer the proceeds of any 174
such sale or sales to the Rural Counties and Municipalities 175
Emergency Infrastructure Improvements Loan Fund created in Section 176
1 of this act. The proceeds of such bonds shall be disbursed 177
solely upon the order of the Mississippi Development Authority 178
under such restrictions, if any, as may be contained in the 179
resolution providing for the issuance of the bonds. 180
(9) The bonds authorized under this section may be issued 181
without any other proceedings or the happening of any other 182
conditions or things other than those proceedings, conditions and 183
things which are specified or required by this section. Any 184
resolution providing for the issuance of bonds under the 185
provisions of this section shall become effective immediately upon 186
its adoption by the commission, and any such resolution may be 187
adopted at any regular or special meeting of the commission by a 188
majority of its members. 189
(10) The bonds authorized under the authority of this 190
section may be validated in the Chancery Court of the First 191
Judicial District of Hinds County, Mississippi, in the manner and 192
with the force and effect provided by Title 31, Chapter 13, 193
Mississippi Code of 1972, for the validation of county, municipal, 194
school district and other bonds. The notice to taxpayers required 195
by such statutes shall be published in a newspaper published or 196
having a general circulation in the City of Jackson, Mississippi. 197
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(11) Any holder of bonds issued under the provisions of this 198
section or of any of the interest coupons pertaining thereto may, 199
either at law or in equity, by suit, action, mandamus or other 200
proceeding, protect and enforce any and all rights granted under 201
this section, or under such resolution, and may enforce and compel 202
performance of all duties required by this section to be 203
performed, in order to provide for the payment of bonds and 204
interest thereon. 205
(12) All bonds issued under the provisions of this section 206
shall be legal investments for trustees and other fiduciaries, and 207
for savings banks, trust companies and insurance companies 208
organized under the laws of the State of Mississippi, and such 209
bonds shall be legal securities which may be deposited with and 210
shall be received by all public officers and bodies of this state 211
and all municipalities and political subdivisions for the purpose 212
of securing the deposit of public funds. 213
(13) Bonds issued under the provisions of this section and 214
income therefrom shall be exempt from all taxation in the State of 215
Mississippi. 216
(14) The proceeds of the bonds issued under this section 217
shall be used solely for the purposes therein provided, including 218
the costs incident to the issuance and sale of such bonds. 219
(15) The State Treasurer is authorized, without further 220
process of law, to certify to the Department of Finance and 221
Administration the necessity for warrants, and the Department of 222
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ST: Bonds; create a rural counties and
municipalities emergency infrastructure loan
program and authorize issuance of bonds.
Finance and Administration is authorized and directed to issue 223
such warrants, in such amounts as may be necessary to pay when due 224
the principal of, premium, if any, and interest on, or the 225
accreted value of, all bonds issued under this section; and the 226
State Treasurer shall forward the necessary amount to the 227
designated place or places of payment of such bonds in ample time 228
to discharge such bonds, or the interest thereon, on the due dates 229
thereof. 230
(16) This section shall be deemed to be full and complete 231
authority for the exercise of the powers therein granted, but this 232
section shall not be deemed to repeal or to be in derogation of 233
any existing law of this state. 234
SECTION 3. This act shall take effect and be in force from 235
and after July 1, 2026. 236