Bill Amendment: MS HB1677 | 2026 | Regular Session

Mississippi House Bill 1677

NOTE: For additional amemendments please see the Bill Drafting List

Bill Title: Metro Jackson Water Authority Act; create.

Status: 2026-04-08 - Approved by Governor [HB1677 Detail]

Download: Mississippi-2026-HB1677-Senate_Committee_Amendment_No_1.html

Pending

COMMITTEE AMENDMENT NO 1 PROPOSED TO

House Bill No. 1677

BY: Committee

Amend by striking all after the enacting clause and inserting in lieu thereof the following:

SECTION 1. This act shall be known and may be cited as

the "Metro Jackson Water Authority Act."

SECTION 2. (1) The Mississippi Legislature finds the

following:

(a) For the benefit of the citizens centrally located in the State of Mississippi, including citizens residing or working in the capital city of the State of Mississippi, it is essential to have access to safe, clean and reliable water and wastewater systems at affordable, regulated rates which are just, reasonable and provide an adequate amount of capital to keep such systems in good repair;

(b) The availability of safe, clean and reliable water and wastewater systems has vast impacts on health, schools and academic outcomes, crime and safety, state and local government operations, businesses and economic development, the availability of a workforce, tourism and many other critical areas;

(c) The availability of safe, clean and reliable water and wastewater systems requires significant financial resources and human capital to engage in the planning, acquisition, construction, maintenance, coordination and operation required to deliver transparent and efficient services which meet and exceed federal and state regulations and requirements;

(d) On November 29, 2022, the Department of Justice filed a complaint alleging that the City of Jackson has failed to provide drinking water that is reliably compliant with the Safe Drinking Water Act to citizens within the boundaries of the water system. The Department of Justice simultaneously filed a proposal which would appoint an interim third-party manager to stabilize the City of Jackson's public drinking water system and build confidence in the water system's ability to supply safe, clean and reliable water to citizens within the boundaries of the water system. The U.S. District Court for the Southern District of Mississippi issued an interim stipulated order that appointed an interim third-party manager to oversee and operate the water system on November 29, 2022;

(e) On or about September 30, 2023, the U.S. District Court for the Southern District of Mississippi issued a stipulated order that brought the City of Jackson's sewer and wastewater systems into the interim third-party managership;

(f) The November 29, 2022, order appointing the interim third-party manager for the public drinking water system does not have a termination date and ends only when final judgment is entered by the court;

(g) The September 30, 2023, order appointing the interim third-party manager for the sewer and wastewater system terminates on September 30, 2027, unless such order is earlier terminated or extended by the court;

(h) Before the termination of the orders by the court, the system must be stable, the financial plan sustainable, and the transition plan approved in order to transition the system to post-interim third-party managership operations;

(i) The creation and organization of a structure for future governance requires legislation for it to continue in perpetuity beyond the eventual end of the interim third-party manager's work and related federal court orders; and

(j) The creation and organization of a structure for future governance prior to the date of the conclusion of the interim third-party manager's work will allow for an orderly transition to ensure minimal disruption in water and wastewater service.

(2) Therefore, it is the intent of the Mississippi Legislature to:

(a) Provide the Metro Jackson Water Authority the ability to lease the existing water and wastewater assets from the city and, upon lease of such assets and termination of the interim third-party managership by the court, or an earlier date as ordered by the court, the water and wastewater assets shall be under the authority's management and control to ensure all citizens have access to safe, clean and reliable water and wastewater systems at affordable, just and reasonable regulated rates and to provide an adequate amount of capital to keep such systems in good repair;

(b) Authorize the Local Governments and Rural Water Systems Improvement Board (LGRWSI), as created in Section 41-3-16, while remaining compliant with all applicable provisions of the federal Safe Drinking Water Act, to loan to the authority any funds required in connection with the authority's acquisition of the leasehold interest in water assets as provided in this subsection (2) at an interest rate of zero percent (0%) with a maximum allowable term per federal Drinking Water State Revolving Fund regulations and applying the maximum principal forgiveness available and allowable per the LGRWSI Board's intended use plan;

(c) Authorize the Department of Environmental Quality to loan to the authority any funds requested in connection with the authority's acquisition of the leasehold interest in wastewater assets as authorized in this subsection (2) at an interest rate of zero percent (0%) with a thirty-year term applying the maximum principal forgiveness available;

(d) Authorize the authority, upon its establishment under this act, to issue bonds to refinance the system debts existing as of July 1, 2026, which bonds may be secured by and payable from one or more sources of nonsystem revenues made available to the authority for such purpose, provided that such bonds shall never constitute a debt, liability or loan of the credit of the state or any political subdivision thereof under the Mississippi Constitution and laws of the state or a pledge of the faith, credit or taxing power of the state or any political subdivision thereof; and

(e) Authorize the authority and each of the Department of Health, the Department of Environmental Quality, the City of Jackson and other municipalities or governmental entities within the service area of the authority, and any other federal, state or local entity to partner with each other in taking any action necessary under this act to ensure all citizens have access to safe, clean and reliable water and wastewater systems, with the understanding that federal and state agencies are solely responsible for regulating, but not operating, the authority.

SECTION 3. As used in this act, the following words

and phrases have the meanings provided in this section, unless the context clearly indicates otherwise:

(a) "Authority" means the public benefit corporation created by Section 4 of this act, known as the Metro Jackson Water Authority.

(b) "Board" means the Board of Directors of the Metro Jackson Water Authority.

(c) "Bonds" means bonds, notes and other indebtedness issued by the authority pursuant to this act and the provisions of this act relating to bonds and bondholders shall apply with equal force and effect to notes and noteholders, respectively, unless the context otherwise clearly requires.

(d) "City" means the City of Jackson.

(e) "Court" means the U.S. District Court for the Southern District of Mississippi.

(f) "Fiscal year" means the period of time beginning on July 1 of each year and ending on June 30 of each year.

(g) "ITPM" means the interim third-party manager for the systems initially appointed by the court on November 29, 2022, to oversee and operate the systems.

(h) "Major procurement" means the procurement of any good or service in excess of One Million Dollars ($1,000,000.00).

(i) "Mayor" means the Mayor of the City of Jackson.

(j) "Person" means any person, firm, partnership, association, limited liability company or corporation organized or existing under the laws of the state or any other state.

(k) "Project" means the construction, development or acquisition by the authority of any infrastructure for water, wastewater and stormwater systems or services and includes the upgrading or repair of existing systems.

(l) "Public agency" means any county, municipality, state board or utility authority owning or operating properties, districts created pursuant to the general laws or local and private laws of the state, or any other political subdivision of the state possessing the power to own and operate waterworks, water supply systems, sewerage systems, sewage treatment systems or other facilities or systems for the collection, transportation and treatment of water, wastewater and stormwater.

(m) "State" means the State of Mississippi.

(n) "State agency" means any state office, department, board, commission, bureau or division, or other agency or instrumentality of the state.

(o) "Stormwater" means any flow occurring during or following any form of natural precipitation and resulting from that precipitation.

(p) "System" or "systems" means any plants, structures, facilities or other real or personal property used or useful in the generation, storage, transportation or supply of water, and the collection, transportation, treatment or disposal of wastewater and stormwater, including, but not limited to, tanks, pipes, trunk lines, mains, sewers, conduits, pipelines, pumping and ventilating stations, plants, works, connections and any other real or personal property and rights therein necessary, useful or convenient for the purposes of the authority.

(q) "Wastewater" means water being disposed of by any person and which is contaminated with waste or sewage, including industrial, municipal, and any other wastewater or stormwater that may cause impairment of the quality of waters in the state.

(r) "Water" means potable water from either surface water or groundwater sources.

SECTION 4. (1) There is hereby created and established a corporation known as the Metro Jackson Water Authority for public purposes and charged with the duties and having the powers provided in this act. The authority shall be a body corporate and politic constituting a public benefit corporation. The authority will be composed of geographic areas receiving water and wastewater services from the city as of January 1, 2026, for the planning, acquisition, construction, maintenance, operation and coordination of water and wastewater systems in order to ensure the delivery of water and wastewater services to citizens. Such authority is created solely to accomplish the purposes under this act, and the exercise by the authority of the powers conferred by this act shall be deemed and held to be the performance of an essential public function promoting the health, welfare and prosperity of the general public. It is the intent of the Legislature that the authority shall be accountable to ratepayers within the systems through the audits, reports and disclosures required by this act.

(2) The existence of the public benefit corporation, which shall be domiciled in the state, shall begin upon the appointment of a majority of its board as provided in Section 5 of this act.

(3) The transfer by lease of the water and wastewater system to the authority from the city shall be accomplished as provided in Section 6 of this act.

(4) The authority shall assume management and control over the water and wastewater systems on the date of termination of the interim third-party managership by the court, or with respect to any specific functions on an earlier date as ordered by the court. If the termination date is not the same for all systems or functions, the authority shall assume management and control over the system or functions for which the interim third-party managership is terminated on the termination date for that system or function.

(5) In the event of any action or matter against the authority, the Chief Justice of the Mississippi Supreme Court shall select an appropriate circuit or chancery court, which shall have exclusive jurisdiction over the matter. Solely for purposes of court costs, the authority shall be deemed to constitute a private corporation.

(6) All funds provided by the federal government in H.R. 2617, the Consolidated Appropriations Act of 2023, and any other funds provided by the state or federal government in response to the water crisis detailed by the court in Case No. 3:22-cv-00686, United States v. City of Jackson, shall be spent according to the direction of the ITPM until the authority assumes management and control of the water and wastewater systems or certain functions thereof and in accordance with federal law.

SECTION 5. (1) The affairs of the authority shall be administered by the board. The board shall be composed of nine (9) members as follows:

(a) The Mayor of the City of Jackson;

(b) Two (2) members at large who live or work in the service area to be appointed by the Mayor of the City of Jackson and confirmed by the City Council of the City of Jackson;

(d) One (1) member at large who lives or works in the service area to be appointed by the Lieutenant Governor;

(e) One (1) member at large appointed by the Governor upon the advice of the Mayor of the City of Jackson, with the advice and consent of the Mississippi Senate;

(f) One (1) member at large who lives or works in the service area to be appointed by the Mayor of the City of Byrum; and

(g) One (1) member at large who lives or works in the service area to be appointed by the Mayor of the City of Ridgeland.

All initial public members shall be appointed by May 1, 2026.

The Mayor of the City of Jackson may designate a person or persons to represent him or her at all meetings of the board from which he or she may be absent. Any such representative shall have the power to attend and to vote at any meeting of the board from which the member so designating him or her as a representative is absent with the same force and effect as if the member designating him were present and voting.

For public members subject to the appointment process, appointing authorities shall attempt to ensure that all portions of society and its diversity are represented in members of the authority. All appointed members must be residents of the state and must have significant, demonstrated experience in at least one (1) of the following areas: business management; fiscal affairs; public finance; public health; engineering; or public utilities. No current or former federal, state or local elected officials may be appointed.

(2) (a) The Governor shall appoint one (1) member for an initial term of four (4) years, and one (1) member for an initial term of three (3) years.

(b) The Lieutenant Governor shall appoint one (1) member for an initial term of four (4) years.

(3) Except as provided in subsection (2) of this section, appointments shall be for a term of four (4) years. Each member shall serve at the will and pleasure of his or her appointing authority and hold office until his successor has been appointed and qualified.

Vacancies occurring otherwise than by expiration of the term of office, shall be filled by appointment by the appropriate appointing authority for the length of the unexpired term only. Any member of the authority shall be eligible for reappointment for a maximum of two (2) full terms. Each member of the authority shall, before entering upon his duty, take an oath of office to administer the duties of his office faithfully and impartially, and a record of such oath shall be filed in the Office of the Secretary of State.

The authority shall annually elect from its membership a chairman and vice chairman who shall be eligible for reelection for up to four (4) consecutive terms. The authority shall also elect or appoint, and prescribe the duties of, such other officers, who need not be members, as the authority deems necessary or advisable, and the authority shall fix the compensation of such officers. The authority may delegate to one or more of its members, officers, employees or agents such powers and duties as it may deem proper, not inconsistent with this act or other provisions of law.

(4) Except as otherwise specified in this act, the powers of the board shall be vested in and exercised by a majority of the whole number of the members thereof. The members of the board shall serve without salary but shall be entitled to receive, upon authorization of the board, per diem pay as provided in Section 25-3-69, plus travel and necessary expenses, including mileage, as provided in Section 25-3-41, incurred while in the performance of his or her duties as a board member. Expenses shall be paid from the available funds of the authority after the authority assumes management and control of the water and wastewater systems as provided in this act. Subject to appropriations, until the date the authority assumes management and control of the water and wastewater systems as provided in this act, expenses may be paid by the state.

(5) All meetings of the board shall be subject to the Open Meetings Act in Section 25-41-1 et seq. The chairman or a majority of members of the board may convene the board for a meeting.

(6) Except as otherwise provided by law, all records of the authority shall be deemed public records and subject to public inspection as provided by Section 25-61-1 et seq.

(7) The board may by majority vote excuse the absence of any board member. If any board member is absent for two (2) board meetings in a twelve-month period without such absences being excused by the board, his or her membership on the board shall be terminated as a function of law, without any action by the board, and the removed board member shall be ineligible for reappointment to the board. The original appointing authority shall retain the right to appoint a new board member to replace the removed board member.

(8) No current or former employee of the authority shall be a board member.

(9) Until the authority assumes management and control of the water and wastewater systems, the board shall coordinate with the ITPM in order to provide the best opportunity for minimal disruption in service and maximum ease of transition after the ITPM has concluded his work in overseeing and operating the water system.

(10) A two-thirds (2/3) vote of the total membership of the board is required for any rate increase or expenditure in excess of Five Million Dollars ($5,000,000.00).

SECTION 6. (1) Promptly following the appointment of a majority of its board as provided in Section 5 of this act, the authority shall commence negotiations with the city to enter into an agreement with the authority for the transfer by lease to the authority, for use in the exercise of its corporate powers and purposes, the water system or wastewater system, or both, of the city, as the same shall then be owned by the city. Such agreement shall be for such term and upon such conditions as may be deemed desirable by the city and the authority, provided that the term of the agreement shall continue until at least the date on which all the authority's bonds are paid in full or provision therefor shall have been made in accordance with the resolution, trust indenture or other security instrument under which the bonds were issued. To the extent not inconsistent with this act, such agreement may impose such limitations or conditions as may be agreed upon by and between the city and authority with respect to the power of the authority to sell or otherwise dispose of any property acquired by the authority pursuant to such agreement, and may provide for or authorize the authority to surrender to the city, any property no longer required by the authority for its public purposes.

Notwithstanding the provisions of any general, special or local law or charter to the contrary, any action taken by the city pursuant to this subsection shall not be subject to a permissive or mandatory referendum.

(2) Such agreement shall set forth the liabilities of the city which it is contemplated are to be paid by the authority from monies available to it; provided, however, that such agreement does not require the authority to assume the liabilities of the city; and provided further, notwithstanding the foregoing, that the city shall continue to be the record owner for real estate tax purposes of any facilities located outside of its municipal boundaries.

(3) Such agreement may provide for the payment by the city to the authority from any funds of the city, of such amount as may be determined appropriate for use by the authority.

(4) The city and the authority are hereby authorized and empowered to make or enter into any contracts, agreements, deeds, leases, conveyances or other instruments as may be necessary or appropriate to effectuate the purposes of this act, and they shall have power and authority to do all things incidental, desirable or necessary to implement the provisions of this act.

(5) The authority shall take possession of the water system or wastewater system, or both, of the city upon its filing of a copy of the instruments or documents effectuating the transfer authorized by this section with the clerk of the city and the Secretary of State.

(6) Any application filed or proceeding commenced under this act in relation to the water system or wastewater system, or both, that is transferred to the authority pending with the Mississippi State Department of Health, the Mississippi Department of Environmental Quality or any other state agency or with the United States Environmental Protection Agency or any other federal agency or instrumentality shall inure to and for the benefit of the authority and be binding upon the authority to the same extent and in the same manner as if the authority had been a party to such application or proceeding from its inception, and the authority shall be deemed a party thereto to the extent not prohibited by any federal law. Any license, approval, permit or decision under this act hereafter issued or granted pursuant to or as a result of any such application or proceeding shall inure to the benefit of and be binding upon the authority and shall be assigned and transferred by the city to the authority unless such assignment and transfer is prohibited by federal law.

(7) The rules and regulations of the authority may provide for the discontinuance or disconnection of the supply of water or the provision of wastewater service, or both, as the case may be, by the authority for nonpayment of fees, rates, rents or other charges imposed by the authority. A copy of all bylaws, rules and regulations and amendments thereto, duly certified by the secretary of the authority, shall be filed in the offices of the clerk of the city and the Secretary of State within three (3) months. Violation of such rules and regulations shall subject the offending party to a civil penalty in an action brought by the authority, not to exceed One Hundred Dollars ($100.00) for each day the violation continues. The Hinds County Circuit Court shall have jurisdiction to hear and determine, subject to the provisions of the Civil Practice Law and rules, any violation of such rules and regulations.

(8) The board may retain or employ counsel, auditors, engineers or other private consultants for rendering professional or technical services and advice in connection with the negotiation of the agreement of lease under this section. The state shall pay the reasonable cost and expense for such professional services on a bimonthly basis, subject to appropriations.

SECTION 7. (1) The authority shall consult with the court to appoint a president within thirty (30) days following the appointment of a majority of its board as provided in Section 5 of this act, who shall serve at the will and pleasure of the board. If the authority does not have management and control of the water and wastewater systems by the date of the appointment of a president, the state may pay the salary of the president on a bimonthly basis, subject to appropriations. The president shall serve as deputy to the ITPM until the court enters final judgement, at which time the president shall manage the daily affairs of the authority and shall have such powers and duties as specified by this act, by the board, and by any rules or regulations adopted by the board. The president shall not be a member of the board and shall serve at the will and pleasure of the board.

(2) Until the authority assumes management and control of the water and wastewater systems, the president shall coordinate with the ITPM in order to provide the best opportunity for minimal disruption in service and maximum ease of transition after the ITPM has concluded its work in overseeing and operating the water system or wastewater system or the respective functions with respect thereto.

(3) The president shall employ such personnel as he or she deems necessary. All personnel shall serve at the will and pleasure of the president.

(4) The board shall set the salary of the president at such level as necessary to recruit and retain a qualified professional with the expertise necessary in a public utility. The board may authorize whatsoever incentive compensation program for the president and authority staff as it deems necessary and proper. The authority shall be exempt from the provisions of Section 25-3-39.

SECTION 8. (1) The authority shall have the power, duty and responsibility to exercise general supervision over the design, construction, operation and maintenance of water and wastewater systems.

(2) The authority shall adopt rules and regulations regarding the design, construction or installation, operation and maintenance of water and wastewater systems.

(3) The authority shall adopt rules and regulations regarding the use of decentralized treatment systems, individual on-site wastewater treatment systems and centralized wastewater treatment systems.

(4) The authority shall adopt rules establishing performance standards for water and wastewater systems and the operation and maintenance of such systems. Such rules and regulations shall include the implementation of a standard application form for the installation, operation and maintenance of systems; application review; approval or denial procedures for any proposed system; inspection, monitoring and reporting guidelines; and enforcement procedures.

(5) (a) Before a building or development that requires the installation of a water or wastewater system is constructed, such system plan must be submitted to the authority for certification that the system complies with the authority's requirements.

(b) Before approving or renewing a permit for a water or wastewater system within the authority, the state agency must require certification that such system complies with the authority's requirements.

(6) Any system of a municipality, public agency or other person that contracts with the authority shall be subject to the terms of that contract and this act.

(7) Notwithstanding the provisions of Section 51-39-1 et seq., the authority may adopt rules and regulations and to construct, maintain, lease and operate facilities for the control of stormwater quality and quantity. In addition, the provisions of Section 51-33-1 et seq., relating to drainage districts and flood control districts, do not apply to the authority.

(8) The authority may control and operate the local retail water or wastewater services and may provide or be responsible for direct servicing of those services to residences, businesses and individuals; however, the authority shall not provide the same service in an area provided by a public utility or person holding a certificate of public convenience and necessity issued by the Mississippi Public Service Commission for the provision of such services in the certificated area.

(9) The authority shall enter into contracts for major procurements after a bidding process. The authority may adopt administrative rules and regulations pursuant to the provisions of this act providing for special procedures whereby the authority may make any class of procurement.

(10) In its bidding processes, the authority may do its own bidding and procurement or may utilize the services of the Department of Finance and Administration, the Department of Information Technology Services or other state agencies as appropriate and necessary.

(11) In the City of Ridgeland, which is served by only the wastewater system as of January 1, 2026, the authority shall have oversight or control of only wastewater service provided to ratepayers. To maintain consistency with the agreement in place with the city prior to the existence of the authority, the City of Ridgeland shall have control over its rate structure, with the City of Ridgeland compensating the authority for its prorated share of wastewater conveyance, treatment, capital improvements and debt service.

SECTION 9. (1) The authority, in addition to any other powers granted under this act and any other provision of law, is authorized:

(a) To acquire, construct, improve, enlarge, extend, repair, operate and maintain any of its systems used for the collection, transportation, treatment and disposal of water and wastewater;

(b) To make contracts with any person in furtherance thereof and to make contracts with any person for the purpose of collection, transportation, treatment or disposal of water and wastewater on behalf of such person;

(c) To make contracts with any person to design and construct any water and wastewater systems or facilities, and thereafter to purchase, lease or sell any such system or systems by installments over such terms as may be deemed desirable, reasonable and necessary, or otherwise;

(d) To enter into operating agreements with any person, for such terms and upon such conditions as may be deemed desirable for the operation of any water and wastewater systems, and to lease to or from any person, for such term and upon such conditions as may be deemed desirable, any water and wastewater collection, transportation, treatment or other facilities or systems. Any such contract may contain provisions requiring any public agency or other person to regulate the quality and strength of materials to be handled by the respective system or systems and also may provide that the authority shall have the right to use any streets, alleys and public ways and places within the jurisdiction of a public agency or other person during the term of the contract;

(e) To enter into contracts with any person or public agency, including, but not limited to, contracts authorized by this act, in furtherance of any of the purposes authorized under this act upon such consideration as the board and such person may agree. Notwithstanding any provision of law to the contrary, such contract may extend over any period of time, may be upon such terms and for such consideration, nominal or otherwise, as the parties thereto shall agree, and may provide that it shall continue in effect until bonds specified therein, refunding bonds issued in lieu of such bonds, and all other obligations specified therein are paid or terminated. Any such contract shall be binding upon the parties thereto according to its terms;

(f) To sue and be sued, in its own name, and to enjoy all of the protections, immunities and benefits provided by the Mississippi Tort Claims Act, Section 11-46-1 et seq., as it may be amended or supplemented from time to time;

(g) To maintain office space at such place or places within the authority's boundaries as it may determine;

(h) To invest money of the authority, including proceeds from the sale of any bonds subject to any agreements with bondholders, on such terms and in such manner as the authority deems proper;

(i) To pay or refinance any outstanding city bonds relating to the water and wastewater systems under their existing terms;

(j) To require the necessary relocation or rerouting of roads and highways, railroad, telephone and telegraph lines, and properties, electric power lines, gas pipelines and related facilities, or to require the anchoring or other protection of any of these, provided fair compensation is first paid to the owners or an agreement is made with such owners regarding the payment of the cost of such relocation, and to acquire easements or rights-of-way for such relocation or rerouting and to convey the same to the owners of the property being relocated or rerouted in connection with the purposes of this act. This provision shall be in accordance with Mississippi Constitution Article 17A and Section 11-27-30;

(k) To acquire, construct, improve or modify, or to operate or cause to be operated and maintained, either as owner of all or of any part in common with others, any water or wastewater system within the authority's service area. The authority may pay all or part of the cost of any system from any contribution by persons, firms, public agencies or corporations;

(l) To receive, accept and use all funds, public or private, and pay all costs of the development, implementation and maintenance as determined necessary for any project;

(m) To acquire, in its own name, by purchase on any terms and conditions and in any manner as it may deem proper, property for public use, or by gift, grant, lease, or otherwise, real property or easements therein, franchises and personal property necessary or convenient for its corporate purposes. This provision shall be in accordance with Mississippi Constitution Article 17A and Section 11-27-30;

(n) To acquire insurance as available for the systems, facilities, buildings, treatment plants and all property, real or personal, to insure against all risks;

(o) To use any property and rent or lease any property to or from others, including public agencies, or make contracts for the use of the property. The authority may sell, lease, exchange, transfer, assign, pledge, mortgage or grant a security interest for any property. The powers to acquire, use and dispose of property as set forth in this paragraph shall include the power to acquire, use and dispose of any interest in that property, whether divided or undivided. Title to any property of the authority shall be held by the authority exclusively for the benefit of the public;

(p) To apply, contract for, accept, receive and administer gifts, grants, appropriations and donations of money, materials and property of any kind, including loans and grants from the United States, the state, a unit of local government, or any agency, department, district or instrumentality of any of the foregoing, upon any terms and conditions as the United States, the state, a unit of local government, or any agency, department, district or instrumentality shall impose. The authority may administer trusts. The authority may sell, lease, transfer, convey, appropriate and pledge any and all of its property and assets;

(q) To make and enforce, and from time to time, amend and repeal, bylaws, rules, ordinances and regulations for the management of its business and affairs and for the construction, use, maintenance and operation of any of the systems under its management and control;

(r) To employ and terminate staff and other personnel, including attorneys, auditors, engineers and consultants for rendering professional or technical services and advice, as may be necessary to the functioning of the authority;

(s) To establish, fix, charge and enforce the payment of all rates, fees, assessments and any other charges for services furnished by the water system, wastewater system, or both, and other facilities within the control of the authority, as the case may be, and from time to time, to adjust such rates, fees, assessments and any other charges for the purpose of ensuring that the revenues therefrom will be sufficient at all times:

(i) To pay the expenses of operating and maintaining the systems and other facilities, including all obligations under any contract or bond resolution with respect thereto;

(ii) For the establishment and maintenance of a bond retirement and interest payment fund sufficient to provide for the payment of the principal of and interest on any bonds or other obligations payable therefrom as the same become due and payable, including reasonable reserves for the payment of such principal and interest;

(iii) For the establishment and maintenance of a reasonable reserve for future additions, extensions, and improvements to such systems or any combination thereof, as the case may be; and

(iv) To comply with all covenants of the authority under the terms of any resolution, trust indenture or other security instrument with respect to its bonds.

Except as otherwise permitted by law, such rates, fees, assessments and other charges shall be equal to those levied on similarly situated customers throughout the authority's service area. For purposes of Section 77-3-33, the rates charged by the authority shall be just and reasonable if they are adequate to provide safe and reliable water and wastewater service to its customers, including providing an adequate amount of capital for the authority to perform such repairs, upgrades and improvements as it deems necessary on an ongoing basis;

(t) To adopt rules and regulations necessary to accomplish the purposes of the authority and to assure the payment of each participating person or public agency of its proportionate share of the costs for use of any of the systems and facilities of the authority and for the authority's proportionate share of the costs of the board;

(u) To enter on public or private lands, waters or premises for the purpose of making surveys, borings or soundings, or conducting tests, examinations or inspections for the purposes of the authority, subject to responsibility for any damage done to property entered;

(v) To accept industrial wastewater from within the boundaries of the authority for treatment and to require the pretreatment of the same when, in the opinion of the authority, such pretreatment is necessary;

(w) To control and operate local retail water and wastewater services, and to provide or be responsible for direct servicing of those services to residences, businesses and individuals; however, the authority shall not provide the same services in an area provided by a public utility or person holding a certificate of public convenience and necessity issued by the Mississippi Public Service Commission for the provision of such services in the certificated area;

(x) To assume control and administer, within the authority's jurisdiction, any water or wastewater system or systems by agreement or contract with any person if the person providing such services requests to be relieved of that responsibility;

(y) To acquire property designated by plan to sufficiently accommodate the location of water or wastewater systems and such requirements related directly thereto pursuant to the provisions of Chapter 27, Title 11, Mississippi Code of 1972. The authority may acquire property necessary for any system and the exercise of the powers, rights and duties conferred upon the authority by this act. No person owning the drilling rights or the right to share in production shall be prevented from exploring, developing or producing oil or gas with necessary rights-of-way for ingress and egress, pipelines and other means of transporting such interests on any lands or interest of the authority held or used for the purposes of this act, but any such activities shall be subject to reasonable regulations by the board that adequately protect the systems or projects of the authority. This provision shall be in accordance with Mississippi Constitution Article 17A and Section 11-27-30;

(z) To use any legally available funds to acquire, rebuild, operate and maintain any existing water or wastewater systems owned or operated by any person;

(aa) To refuse to receive water or wastewater from any public agency or person, except with regard to municipalities or other areas within the service territory of the systems as of January 1, 2026;

(bb) So long as any indebtedness on the systems of the authority remains outstanding, to require a member public agency, or other person, dispose of all water and wastewater, as the case may be, within the boundaries of the authority through the appropriate treatment system to the extent available, but no public agency shall be precluded from constructing, operating and maintaining its own such system unless provision has been made for full payment, by escrow or otherwise, of the public agency's proportionate share of the authority's bonds and other indebtedness outstanding as of the expected date of operation of the public agency's system, pursuant to the terms of the authority's bonds or resolution, trust indenture or other security instrument securing such bonds or indebtedness;

(cc) To adopt a seal and a symbol, to hold patents, copyrights, trademarks and service marks, and to enforce its rights with respect thereto;

(dd) To write off revenues deemed uncollectible that were billed to customers prior to January 1, 2026, and, as a regular accounting practice of the authority, to further write off revenues deemed uncollectible after the third year of collection efforts. Nothing herein permits the provision of services without charging applicable rates in effect at the time services are provided and requiring payment of such services; and

(ee) To do all things necessary, convenient or desirable to carry out its purposes and for the exercise of the powers granted in this act.

(3) The authority shall:

(a) Submit annual reports to the Governor, Lieutenant Governor, Speaker of the House of Representatives, State Auditor, Joint Legislative Committee on Performance Evaluation and Expenditure Review, the mayor and the governing authorities of any municipality whose citizens are within the authority's boundaries regarding the water quality and financial conditions of such system or systems. Such report shall contain a schedule of currently planned repairs, upgrades or improvements planned by the authority;

(b) Immediately submit to the Governor, Lieutenant Governor, Speaker of the House of Representatives, the mayor and the governing authorities of any municipality whose citizens are within the authority's boundaries any information received from the Mississippi State Department of Health or Department of Environmental Quality or other state or federal regulatory agencies regarding the condition of a transferred eligible municipal system. The authority, in addition to abiding by any other federal or state reporting requirements, must also report such information to the public on its website and to individuals residing within the service area as required by federal or state law;

(c) Publish audited annual financial statements, which shall be made available to the public. The annual financial statements shall include disposition of all funds expended by the authority for any purpose. Quarterly financial statements shall be made available to the public by posting on the authority's website;

(d) Adopt by administrative rules and regulations a system of continuous internal audits;

(e) Adopt by administrative rules and regulations a code of ethics for officers and employees of the authority to carry out the standards of conduct established by this act; and

(f) Adopt by administrative rules and regulations guidelines for the transfer of property to the city or disposal of property, as the case may be, if the authority is dissolved.

SECTION 10. (1) The president, as chief executive officer of the authority, if so appointed by the board, shall direct and supervise all administrative and technical activities in accordance with the provisions of this act, with the administrative rules and regulations adopted by the board, and with prudent industry practice. The president shall:

(a) Supervise and administer or contract for the supervision and administration of the water and wastewater systems owned, managed or controlled by the authority;

(b) Employ and direct such personnel as may be necessary to carry out the purposes of this act and utilize such services, personnel or facilities of the authority as he or she may deem necessary;

(c) Make available for inspection by the board or any member of the board or the Governor, Lieutenant Governor, Speaker of the House, the mayor or the governing authorities of any municipality whose citizens are served by the authority, upon request, all books, records, files and other information and documents of his or her office and advise the board and recommend such administrative rules and regulations and other matters he or she deems necessary and advisable to improve the operation and administration of the authority;

(d) Attend meetings of the board or appoint a designee to attend on his or her behalf;

(e) Not later than thirty (30) days before the beginning of the authority's fiscal year, submit the proposed annual budget of the authority to the board for review and approval. Such budget shall include a schedule of planned repairs, upgrades or improvements to the systems and the anticipated capital cost of each. In addition, the proposed annual budget of the authority shall include a personnel table reporting information for each full-time and part-time permanent position, as follows:

(i) The position title and the salary for each position in the existing operating budget for the current fiscal year, indicating whether each position is filled or vacant as of the reporting date; and

(ii) The position title and the salary recommended for each position for the following fiscal year;

(f) Require bond of Fifty Thousand Dollars ($50,000.00) from employees with access to funds or in such an amount as provided in the administrative rules and regulations of the board.

(2) The president may:

(a) Require a bond from other employees as he or she deems necessary; and

(b) Upon specific or general approval of the board, enter into personal service contracts pursuant to administrative rules and regulations adopted by the board and compensate such consultants and technical assistants as may be required to carry out the provisions of this act.

(3) State agencies, including, but not limited to, the Mississippi Department of Health and the Mississippi Department of Environmental Quality, shall cooperate with the authority to regulate the authority and assure the effective operation of the authority's systems, with the understanding that such agencies act as a regulator and not operator of such systems, provided that the rates, fees, assessments and other charges imposed by the authority shall not be subject to the jurisdiction of the Mississippi Public Service Commission. All state officers are hereby empowered and required to render such services to the authority within their respective functions as may be requested by the authority.

SECTION 11. Employees of the authority shall serve at the will and pleasure of the president, who shall determine their compensation and benefits in consultation with the board.

SECTION 12. Neither the directors of the authority, the board, its employees, nor any person or persons acting on their behalf, while acting within the scope of their authority, shall be subject to personal liability resulting from carrying out any of the powers granted herein in accordance with his or her good faith belief that he or she is acting in the best interests of the authority.

SECTION 13. (1) The authority shall enter into its contracts for major procurements after a competitive and open procurement process. The authority may adopt administrative rules and regulations pursuant to the provisions of this act providing for special procedures whereby the authority may make any class of procurement. The authority shall endeavor to ensure the transparency and competitiveness of procurements of all sizes.

(2) In its bidding processes, the authority may do its own bidding and procurement or may utilize the services of other state agencies as appropriate and necessary. The president may declare an emergency for purchasing purposes which shall be governed by the administrative rules and regulations adopted by the board.

SECTION 14. All monies received by the authority shall be deposited into an operating account. Such account shall be established in a custodian financial institution domiciled in the state, insured by the Federal Deposit Insurance Corporation and collateralized as prescribed by Section 27-105-5.

SECTION 15. All division heads, officers and employees of the authority shall be considered public servants as defined in Section 25-4-103. All division heads and officers of the authority are subject to Section 25-4-25 and shall be required to file a Statement of Economic Interest with the Mississippi Ethics Commission.

SECTION 16. (1) Any public agency, pursuant to a duly adopted resolution of its governing body, may enter into contracts with the authority under the terms of which the authority will manage, operate and contract for usage of the agency's systems and facilities, or other services, for such public agency.

(2) Any public agency may enter into contracts with the authority for the authority to purchase or sell, by installments over such terms as may be deemed desirable, or otherwise, to any person or any systems. Any public agency may sell, donate, convey or otherwise dispose of water and wastewater facilities or systems, or any equipment, personal property or other things deemed necessary for the construction, operation and maintenance thereof, to the authority without the necessity of appraisal, advertising or bidding. This section creates an alternative method of disposal of public property.

(3) Any public agency is authorized to enter into operating agreements with the authority, for such terms and upon such conditions as may be deemed desirable, for the operation of any of its systems by the authority or by any person contracting with the authority to operate such systems.

(4) Any public agency may lease any of its systems to or from the authority, for such term and upon such conditions as may be deemed desirable.

(5) Any municipality or county may donate office space, equipment, supplies and materials to the authority.

(6) Contracts under this section may contain provisions requiring any public agency to regulate the quality and strength of the material to be handled by the wastewater systems and may also provide that the authority shall have the right to use any streets, alleys and public ways and places within the jurisdiction of a public agency during the term of the contract. Such contracts may obligate the public agency to make payments to the authority or to a trustee in amounts which shall be sufficient to enable the authority to defray the expenses of administering, operating and maintaining its respective systems, to pay interest and principal (whether at maturity, upon redemption or otherwise) on bonds of the authority issued under this act, and to fund reserves for debt service, for operation and maintenance and for renewals and replacements, to fulfill the requirements of any rate covenant with respect to debt service coverage contained in any resolution, trust indenture or other security instrument relating to the bonds of the authority issued under this act or to fulfill any other requirement relating to bonds issued pursuant to this act.

(7) All public agencies shall have the power to enter into contracts with the authority as deemed in the best interest of the public agency, according to the discretion of the governing body of the public agency, would be in the best interest of the public agency. Such contracts may include a pledge of the full faith and credit of the public agency and/or the avails of any special assessments made by the public agency against property receiving benefits, as now or hereafter provided by law. Any such contract may:

(a) Provide for the sale or lease to, or use by, the authority, of the systems or any part thereof, of the public agency;

(b) Provide that the authority shall operate its systems or any part thereof of the public agency;

(c) Provide that the public agency shall have the right to continued use and/or priority use of the systems or any part thereof during the useful life thereof upon payment of reasonable charges therefor;

(d) Contain provisions to assure equitable treatment of public agencies contracting with the authority under this act; and

(e) Contain such other provisions and requirements as the parties thereto may determine to be appropriate or necessary. Such contracts may extend over any period of time, notwithstanding any provisions of law to the contrary, and may extend beyond the life of the respective systems or any part thereof or the term of the bonds sold with respect to such facilities or improvements.

(8) The obligations of a public agency arising under the terms of any contract referred to in this act, whether or not payable solely from a pledge of revenues, shall not be included within the indebtedness limitations of the public agency for the purpose of any constitutional or statutory limitation or provision. To the extent provided in such contract and to the extent such obligations of the public agency are payable wholly or in part from the revenues and other monies derived by the public agency from the operation of its systems or of its combined systems, or any part thereof, such obligations shall be treated as expenses of operating such systems.

(9) Contracts referred to in this section may also provide for payments in the form of contributions to defray the cost of any purpose set forth in such contracts and as advances for the respective systems or any part thereof subject to repayment by the authority. A public agency may make such contributions or advances from its general fund or surplus fund, from special assessments or from any monies legally available therefor.

(10) Subject to the terms of a contract or contracts controlled by this act, the authority is hereby authorized to do and perform all acts necessary, convenient or desirable to carry out the purposes of such contracts, including fixing, charging, collecting, maintaining and revising rates, fees and other charges for the services rendered to a user of any of the systems operated or maintained by the authority, whether or not such systems are owned by the authority.

(11) No provision of this act shall be construed to prohibit any public agency otherwise permitted by law to issue bonds from issuing bonds in the manner provided by law for the construction, renovation, repair or development of any systems or any part thereof.

SECTION 17. When a public agency executes a contract under this act and the payments thereunder are to be made either wholly or partly from the revenues of the public agency's systems, any part thereof, or a combination of such systems, the public agency shall establish and maintain, and from time to time to adjust, the rate or fees charged by the public agency for the services of such systems, so that the revenues therefrom, together with any taxes and special assessments levied in support thereof, will be sufficient at all times to pay:

(a) The expense of operating and maintaining such systems, including, but not limited to, all of the public agency's obligations to the authority and the cost required to staff such systems, its successors or assigns under such contract; and

(b) All of the public agency's obligations under and in connection with bonds theretofore issued, or which may be issued thereafter and secured by the revenues of such systems. Any such contract may require the use of consulting engineers and financial experts to advise the public agency whether and when such rates and fees are to be adjusted.

SECTION 18. (1) Notwithstanding the provisions of Sections 77-3-21 and 77-3-23, the certificate of public convenience and necessity held by any municipality, public agency, district, public utility or other entity authorized by law to provide water and wastewater services may be cancelled and its powers, duties and responsibilities transferred to the authority in the manner provided by this section.

(2) Any entity described in subsection (1) of this section that desires to have its certificate of public convenience and necessity cancelled and its powers, duties and responsibilities transferred to the authority shall make a determination to that effect on its official minutes if a public entity, or by affidavit if not a public entity, and transmit such determination to the authority.

(3) Upon receipt of the document evidencing such determination from an entity to transfer its powers, duties and responsibilities to the authority, the authority shall, by resolution, declare whether it is willing and able to accept such transfer from the entity.

(4) Upon completion of the requirements of subsections (2) and (3) of this section and agreement by both parties to the transfer, the holder of the certificate of public convenience and necessity and the authority shall jointly petition the Public Service Commission to cancel the certificate of public convenience and necessity. The petition must be accompanied by copies of the official minutes, affidavit or resolution, as the case may be, reflecting the actions of the petitioners. After review of the petition and any other evidence as the Public Service Commission deems necessary, the commission may issue an order canceling the certificate and transferring to the authority the powers, duties and responsibilities granted by the certificate, including all assets and debts of the transferor petitioner related to such certificated services, real or personal, or both, if it finds that:

(a) The requirements of subsections (2) and (3) of this section have been met; and

(b) Such action is in the public interest.

(5) The authority and providers of water and wastewater services that are not holders of a certificate of a public convenience and necessity from the Public Service Commission may enter into agreements for the provision of such services, including, but not limited to, the transfer to the authority of such provider's powers, duties, responsibilities, assets and debts.

(6) Nothing in this section shall require an entity whose powers and duties were transferred to the authority to remain under the authority.

SECTION 19. (1) Any system of a municipality, public agency or other entity that becomes subject to the jurisdiction of the authority and this act shall not impair, invalidate or abrogate any liens, bonds or other certificates of indebtedness related to water or wastewater facilities and systems incurred prior to becoming subject to the jurisdiction of the authority.

(2) The authority may do and perform any and all acts necessary, convenient or desirable to ensure the payment, redemption or satisfaction of such liens, bonds or other certificates of indebtedness.

SECTION 20. (1) Sections 19 through 28 of this act shall apply to all bonds issued by the authority on or after July 1, 2026, and such provisions shall not affect, limit or alter the rights and powers of the authority under this act or any law of the State of Mississippi to conduct the activities referred to in this act in any way pertinent to the interests of the bondholders, including, without limitation, the authority's right to charge and collect rates, fees, assessments and charges and to fulfill the terms of any covenants made with the registered owners of any existing system bonds outstanding as of July 1, 2026, or in any other way impair the rights and remedies of the registered owners of any existing system bonds outstanding as of July 1, 2026, unless provision for full payment of such bonds, by escrow or otherwise, has been made pursuant to the terms of the bonds or the resolution, trust indenture or other security instrument securing the bonds.

(2) The authority shall have the power and is hereby authorized, from time to time, to borrow money and to issue revenue bonds and interim notes in such principal amounts as the authority may determine to be necessary to provide sufficient funds for achieving one or more of the purposes of this act, including, without limiting the generality of the foregoing, to defray all the costs of a project; the cost of the acquisition, construction, improvement, repair or extension of a system, or any part thereof, whether or not such facilities are owned by the authority; the payment of interest on bonds of the authority issued pursuant to this act; establishment of reserves to secure such bonds and payment of the interest thereon, expenses incident to the issuance of such bonds and to the implementation of the authority's system; and all other expenditures of the authority incident to or necessary or convenient to carry out the purposes of this act.

(3) Before issuing bonds other than interim notes, bonds issued to refinance the existing system debts as of July 1, 2026, as provided in subsection (12) of this section or refunding bonds as provided in Section 21 of this act, the board of directors of the authority shall adopt a resolution declaring its intention to issue such bonds and stating the maximum principal amount of bonds proposed to be issued, a general generic description of the proposed improvements, the proposed location thereof and the date, time and place at which the board of directors proposes to take further action with respect to the issuance of such bonds. The resolution shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper having a general circulation within the geographical limits of the service area under this act.

(4) Bonds of the authority issued pursuant to this act, other than bonds issued to refinance the existing system debts as of July 1, 2026, as provided in subsection (12) of this section, shall be payable from and secured by a pledge of all or any part of the revenues derived from the operation of the systems, or any part or parts thereof, and any other monies legally available and designated therefor, as may be determined by the authority, subject only to an agreement with the purchasers of the bonds. Such bonds may be further secured by a trust indenture between the authority and a corporate trustee, which may be any trust company or bank that has the powers of a trust company without or within the state.

(5) Bonds of the authority shall be issued pursuant to this act only upon authorization by a resolution or resolutions adopted by a majority affirmative vote of the total membership of the board. Such bonds may be issued in series, and each series of such bonds shall bear such date or dates, mature at such time or times, bear interest at such rate or rates not exceeding the maximum rate set out in Section 75-17-103, be in such denomination or denominations, be in such form, carry such conversion privileges, have such rank or priority, be executed in such manner and by such officers, be payable from such sources in such medium of payment at such place or places within or without the state, provided that one (1) such place shall be within the state, and be subject to such terms of redemption prior to maturity, as may be provided by resolution or resolutions of the board. The term of bonds issued pursuant to this act shall not exceed forty (40) years.

(6) Bonds of the authority issued pursuant to this act may be sold at such price or prices, at public or private sale, in such manner and at such times as may be determined by the authority to be in the public interest, and the authority may pay all expenses, premiums, fees and commissions which it deems necessary and advantageous in connection with the issuance and sale thereof.

(7) Any pledge of earnings, revenues or other monies made by the authority for bonds issued pursuant to this act, or made by the city to the authority for such bonds, shall be valid and binding from the time the pledge is made. The earnings, revenues or other monies so pledged and thereafter received by the authority or the city shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority or the city, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded. The revenues may also be pledged as security for the payment of obligations due to providers of credit enhancement with respect to any bonds issued.

(8) Neither the members of the board nor any person executing the bonds shall be personally liable on the bonds or be subject to any personal liability or accountability by reason of their issuance.

(9) Proceeds from the sale of bonds of the authority may be invested, pending their use, in such securities as may be specified in the resolution authorizing the issuance of the bonds or the trust indenture securing them, and the earnings on such investments may be applied as provided in such resolution or trust indenture.

(10) When bonds have been signed by an officer who was designated by resolution of the board to sign the bonds and who was in office at the time of such signing, but who has ceased to be such an officer prior to the sale and delivery of such bonds, or who is not in office on the date such bonds bear, the manual or facsimile signatures of the officer upon such bonds shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person who officially executed the bonds had remained in office until delivery to the purchaser or had been in office on the date such bonds bear.

(11) The authority may advance or borrow funds needed to satisfy any short-term cash flow demands or deficiencies or to cover start-up costs until such time as sufficient bonds, assets and revenues have been secured to satisfy the needs of the authority.

(12) The authority is authorized to issue special revenue bonds for the purpose of refinancing the existing system debts as of July 1, 2026. Bonds issued pursuant to this subsection shall be payable from and secured by a pledge of all or any part of such monies legally available and designated therefor, as determined by the authority, subject only to an agreement with the purchasers of the bonds. Such bonds may be further secured by a trust indenture between the authority and a corporate trustee, which may be any trust company or a bank that has the powers of a trust company without or within the state.

(13) Notwithstanding any provision to the contrary in Section 31-25-21, the authority shall constitute a local governmental unit for the purposes of the Mississippi Development Bank Act.

SECTION 21. (1) The authority may, by resolution adopted by its board, issue refunding bonds for the purpose of paying any of its bonds at or prior to maturity, upon acceleration or upon redemption. Refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the board deems to be in the public interest. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of payment of such bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other capital or current expenses from the proceeds of such refunding bonds as may be required by the resolution, trust indenture or other security instrument. The issue of refunding bonds, the maturities and other details thereof, the security therefor, the rights of the holders and the rights, duties and obligations of the authority in respect of the same shall be governed by the provisions of this act relating to the issue of bonds other than refunding bonds, insofar as the same may be applicable. Any such refunding may be effected, whether the obligations to be refunded shall have then matured or shall thereafter mature, either by the exchange of the refunding bonds for the obligations to be refunded thereby with the consent of the holders of the obligations so to be refunded, or by sale of the refunding bonds and the application of the proceeds thereof to the payment of the obligations proposed to be refunded thereby, and regardless of whether the obligations proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.

(2) The authority may borrow by the delivery of interim notes to any person or public agency or financial institution by a majority vote of the board of directors.

SECTION 22. All bonds, other than refunding bonds, interim notes and certificates of indebtedness, which may be issued pursuant to this act shall be validated as now provided by law in Sections 31-13-1 through 31-13-11; however, notice of such validation proceedings shall be addressed to the citizens of the respective public agencies which have contracted with the authority pursuant to this act, and whose contracts and the payments to be made by the public agencies thereunder constitute security for the bonds of the authority proposed to be issued, and such notice shall be published at least once in a newspaper or newspapers having a general circulation within the geographical boundaries of each of the contracting public agencies to whose citizens the notice is addressed. Such validation proceedings shall be instituted in any chancery courts within the boundaries of the authority.

The validity of the bonds so validated and of the contracts and payments to be made by the public agencies thereunder constituting security for the bonds shall be forever conclusive against the authority and the public agencies, which are parties to said contracts, and the validity of said bonds and said contracts and the payments to be made thereunder shall never be called in question in any court in this state.

SECTION 23. Bonds issued under the provisions of this act shall not be deemed to constitute, within the meaning of any constitutional or statutory limitation, an indebtedness of the authority or the state. Such bonds shall be payable solely from the revenues or assets of the authority pledged therefor.

Each bond issued under this act shall contain on the face thereof a statement to the effect that neither the authority nor the state shall be obligated to pay the same or the interest thereon except from the revenues or assets pledged therefor.

SECTION 24. The authority shall have power in connection with the issuance of its bonds pursuant to this act to:

(a) Covenant as to the use of any or all of its property, real or personal;

(b) Redeem the bonds, to covenant for their redemption and to provide the terms and conditions thereof;

(c) Covenant to charge rates, fees and charges sufficient to meet operating and maintenance expenses, renewals and replacements, principal and debt service on bonds, creation and maintenance of any reserves required by a bonds resolution, trust indenture or other security instrument and to provide for any margins or coverages over and above debt service on the bonds deemed desirable for the marketability of the bonds;

(d) Covenant and prescribe as to events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity, as to the terms and conditions upon which such declaration and its consequences may be waived and as to the consequences of default and the remedies of the registered owners of the bonds;

(e) Covenant as to the mortgage or pledge of or the grant of a security interest in any real or personal property and all or any part of the revenues from any designated system or any part thereof or any revenue-producing contract or contracts made by the authority with any person or entity to secure the payment of bonds, subject to such agreements with the registered owners of bonds as may then exist;

(f) Covenant as to the custody, collection, securing, investment and payment of any revenues, assets, monies, funds or property with respect to which the authority has any rights or interest;

(g) Covenant as to the purposes to which the proceeds of the sale of any bonds then or thereafter to be issued may be applied, and the pledge of such proceeds to secure the payment of the bonds;

(h) Covenant as to the limitations on the issuance of any additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds;

(i) Covenant as to the rank or priority of any bonds with respect to any lien or security;

(j) Covenant as to the procedure by which the terms of any contract with or for the benefit of the registered owners of bonds may be amended or abrogated, the amount of bonds the registered owners of which must consent thereto, and the manner in which such consent may be given;

(k) Covenant as to the custody of any of its properties or investments, the safekeeping thereof, the insurance to be carried thereon, and the use and disposition of insurance proceeds;

(l) Covenant as to the vesting in a trustee or trustees, within or outside the state, of such properties, rights, powers and duties in trust as the authority may determine;

(m) Covenant as to the appointing and providing for the duties and obligations of a paying agent or paying agents or other fiduciaries within or outside the state;

(n) Make all other covenants and do any and all such acts and things as may be necessary, convenient or desirable in order to secure its bonds, including providing a debt service reserve fund, bond insurance and credit enhancement, or in the absolute discretion of the authority, tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein, it being the intention hereof to give the authority power to do all things in the issuance of bonds and in the provisions for security thereof which are not inconsistent with the Constitution of the state; and

(o) Execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of covenants or duties, which may contain such covenants and provisions, as any purchaser of the bonds of the authority may reasonably require.

SECTION 25. The authority may, in any authorizing resolution of the board, trust indenture or other security instrument relating to its bonds issued pursuant to this act, provide for the appointment of a trustee who shall have such powers as are provided therein to represent the registered owners of any issue of bonds in the enforcement or protection of their rights under any such resolution, trust indenture or security instrument. The authority may also provide in such resolution, trust indenture or other security instrument that the trustee may petition the court of proper jurisdiction for the appointment of a receiver of the authority's systems, the revenues of which are pledged to the payment of the principal of and interest on the bonds of such registered owners. In the event that the appointed trustee fails or declines to protect and enforce the registered owners' rights, a percentage of the registered owners as set forth in, and subject to the provisions of, such resolution, trust indenture or other security instrument may petition the court of proper jurisdiction according to this section. Such receiver may exercise any power granted in any such resolution, trust indenture or security instrument to enter upon and take possession of, acquire, construct, reconstruct or operate and maintain such system, fix charges for services of the system and enforce collection thereof, receive all revenues derived from such system or facilities, and perform the public duties and carry out the contracts and obligations of the authority in the same manner as the authority itself might do, all under the direction of such court.

SECTION 26. (1) The exercise of the powers granted by this act will be in all respects for the benefit of the people of the state, for their well-being and prosperity and for the improvement of their social and economic conditions, and the authority shall not be required to pay any tax or assessment on any property owned by the authority under the provisions of this act or upon the income therefrom, nor shall the authority be required to pay any recording fee or transfer tax of any kind on account of instruments recorded by it or on its behalf.

(2) Any bonds issued by the authority under this act, their transfer and the income therefrom shall at all times be free from taxation by the state or any local unit or political subdivision or other instrumentality of the state, excepting inheritance and gift taxes.

SECTION 27. All bonds issued under the provisions of this act shall be legal investments for trustees, other fiduciaries, savings banks, trust companies and insurance companies organized under the laws of the state, and such bonds shall be legal securities which may be deposited with and shall be received by all public officers and bodies of the state and all municipalities and other political subdivisions thereof for the purpose of securing the deposit of public funds.

SECTION 28. The state hereby covenants with the registered

owners of any bonds of the authority that so long as the bonds are outstanding and unpaid, the state will not limit or alter the rights and powers of the authority under this act to fulfill the terms of any covenants made with, or for the benefit of, the registered owners of the bonds, or in any other way impair the rights and remedies of the registered owners of the bonds, unless provision for full payment of such bonds, by escrow or otherwise, has been made pursuant to the terms of the bonds or the resolution, trust indenture or security instrument securing the bonds. The authority is authorized to include this pledge and agreement of the state in any agreement with bondholders.

SECTION 29. For the purposes of satisfying any temporary cash flow demands and deficiencies, and to maintain a working balance for the authority, the state, county, municipalities or public agencies within the geographic boundaries of the authority, or other persons, subject to their lawful authority to do so, are authorized to advance, at any time, such funds which in their discretion are necessary, or borrow such funds by issuance of notes, for initial capital contribution, and to cover start-up costs until such times as sufficient bonds, assets and revenues have been secured to satisfy the needs of the authority for its management, operation and formation. To this end, the state, county, municipality, public agency or person, subject to its lawful authority to do so, shall advance such funds, or borrow such funds by issuance of notes, under such terms and conditions as may be provided by resolution of the governing body, or other persons as defined in this act, subject to their lawful authority to do so, except that each such resolution shall state:

(a) The need for the proceeds advanced or borrowed;

(b) The amount to be advanced or the amount to be borrowed;

(c) The maximum principal amount of any note issued, the interest rate or maximum interest rate to be incurred, and the maturity date of said note;

(d) In addition, the governing body, or other persons as defined in this act, subject to their lawful authority to do so, may arrange for lines of credit with any bank, firm or person for the purpose of providing an additional source of repayment for notes issued pursuant to this section. Amounts drawn on a line of credit may be evidenced by negotiable or nonnegotiable notes or other evidences of indebtedness and contain such terms and conditions as the governing body, or other persons as defined in this act, subject to their lawful authority to do so, may authorize in the resolution approving the same;

(e) The governing body of the county, municipalities or other persons as defined in this act, subject to their lawful authority to do so, may authorize the repayment of such advances, notes, lines of credit and other debt incurred under this section, along with all costs associated with the same, including, but not limited to, rating agency fees, printing costs, legal fees, bank or trust company fees, line of credit fees and other charges to be reimbursed by the authority under such terms and conditions as are reasonable and are to be provided for by resolution of the governing body, or terms agreed upon with other persons as defined in this act, subject to their lawful authority to do so; and

(f) In addition, the governing body of the county, municipality or public agency may lease or donate office space and equipment to the authority under such terms and conditions as are reasonable and are to be provided for by resolution of the governing body, or terms agreed upon by the authority.

SECTION 30. This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes thereof. If any section, provision, paragraph, sentence, phrase or word of this act shall be held invalid by any court of competent jurisdiction, the remainder of this act shall not be affected thereby.

SECTION 31. Section 21-19-1, Mississippi Code of 1972, is amended as follows:

21-19-1. (1) The municipal governing authorities of any municipality shall have the power to make regulations to secure the general health of the municipality; to prevent, remove, and abate nuisances; to regulate or prohibit the construction of privy vaults and cesspools, and to regulate or suppress those already constructed; to compel and regulate the connection of all property with sewers and drains; to suppress hog pens, slaughterhouses and stockyards, or to regulate the same and prescribe and enforce regulations for cleaning and keeping the same in order; to regulate and prescribe and enforce regulations for the cleaning and keeping in order of warehouses, stables, alleys, yards, private ways, outhouses, and other places where offensive matter is kept or permitted to accumulate; and to compel and regulate the removal of garbage and filth beyond the corporate limits. The municipal governing authorities are further authorized to adopt and enforce regulations governing the disposal of garbage and rubbish in sanitary landfills owned or leased by the municipality, whether located within or outside of the corporate limits of the municipality, to the extent that such regulations are not in conflict with or prohibited by regulations of the Commission on Environmental Quality adopted under Section 17-17-27.

(2) After December 31, 1992, the governing body of any municipality in the state shall provide for the collection and disposal of garbage and the disposal of rubbish, and for that purpose the governing body shall have the power to:

(a) Establish, operate and maintain a garbage and/or rubbish collection and disposal system or systems;

(b) Acquire property, real or personal, by contract, gift or purchase, necessary or proper for the maintenance and operation of such system;

(c) Make all necessary rules and regulations for the collection and disposal of garbage and/or rubbish not in conflict with or prohibited by rules and regulations of the Commission on Environmental Quality adopted under Section 17-17-27 and, if it so desires, establish, maintain and collect rates, fees and charges for collecting and disposing of such garbage and/or rubbish; and

(d) In its discretion, enter into contracts, in the manner required by law, with individuals, associations or corporations for the establishment, operation and maintenance of a garbage or rubbish disposal system or systems, and/or enter into contracts on such terms as the municipal governing body thinks proper with any other municipality, county or region enabling the municipality to use jointly with such other municipality, county or region any authorized rubbish landfill or permitted sanitary landfill operated by the other municipality, other county or region.

(3) Notwithstanding the provisions of any other law,

charter or ordinance to the contrary, this subsection (3) shall control.

(a) The governing authorities of any municipality having a population of one hundred thousand (100,000) or more, are hereby authorized and empowered to dedicate a portion of the rates, fees and charges for collecting and disposing of garbage and/or rubbish to the payment of principal of and interest on bonds or notes issued by a public authority to which the power and authority to operate, maintain or finance costs associated with the water, sewer and/or drainage systems of any municipality shall have been delegated. Any such public authority may issue bonds or notes that are secured by a pledge of and lien on, and may be payable from, the rates, fees and charges dedicated pursuant to this subsection (3). The governing authorities of a municipality may also enter into agreements as may be necessary or desirable in connection with the issuance of bonds or notes by such public authority. Such agreements may include such reasonable provisions as the governing body of the public authority shall determine to be appropriate to provide security for the holders of bonds or notes issued or to be issued by such public authority and, as applicable, for the payment of obligations due providers of credit enhancement with respect to any bonds or notes issued. The governing authorities of such municipality shall covenant to maintain and collect rates, fees and charges for collecting and disposing of garbage and/or rubbish in amounts at least equal to the portion dedicated pursuant to this subsection (3) until such time as the bonds or notes issued by such public authority that are secured by and payable from such dedicated amounts shall have been paid in full, and such covenant shall be set forth in the document authorizing the bonds or notes and shall constitute a covenant of the municipality with the owners and, as applicable, the providers of credit enhancement with respect to such bonds or notes for so long as any such bonds or notes remain outstanding.

(b) In addition to any contractual lien granted to holders of bonds or notes issued by such public authority, to secure the full and timely payment of all bonds or notes issued by such public authority, in accordance with their respective terms, all such bonds or notes are and shall be secured by a statutory lien on all such rates, fees, charges or other amounts. The lien shall arise solely by force of this provision specifically upon the issuance of any such bonds or notes, and shall automatically attach without further action or authorization by the municipality or the public authority. The lien shall be valid and binding from the time any such amounts are paid by any person obligated to pay such amount, and the lien shall immediately attach to such amounts and be effective, binding and enforceable against any such county, municipality or public authority or other designated recipient or depository of such amounts, as applicable, their respective successors, transferees, or creditors, and all others asserting rights therein, irrespective of whether those parties have notice of the lien and without the need for any physical delivery, recordation, filing, or further act. The municipality is hereby authorized and directed to covenant and agree for the benefit of the holders of the bonds or notes outstanding from time to time that for so long as any bonds or notes remain unpaid, the municipality shall (i) defend, preserve and protect such statutory lien against all claims and demands of third parties, and (ii) not attempt to revoke, terminate or amend such statutory lien in any way that materially adversely affects the rights of any holder of bonds.

(4) As a necessary incident to such municipal governing authority's power and authority to establish, maintain and collect such rates, fees and charges for collecting and disposing of such garbage and/or rubbish, and as a necessary incident to such municipal governing authority's power and authority to establish, operate and maintain a garbage and/or rubbish disposal system or systems, the municipal governing authority of such municipality shall have the authority to initiate a civil action to recover any delinquent fees and charges for collecting and disposing of such rubbish, and all administrative and legal costs associated with collecting such fees and charges, in the event any person, firm or corporation, including any municipal corporation, shall fail or refuse to pay such fees and charges for collecting and disposing of garbage and/or rubbish; provided that such municipal governing authority may initiate such a civil action to recover such delinquent fees and charges whether or not such municipality has previously entered into a contract with such individual, firm or corporation, relating to the establishment, operation and maintenance of such garbage and/or rubbish disposal system or systems; provided further, that in a civil action to recover such delinquent fees and charges for collecting and disposing of such garbage and/or rubbish, and all administrative and legal costs associated with collecting such fees and charges, the municipality shall in all respects be a proper party to such suit as plaintiff and shall have the power to sue for and recover such unpaid fees and charges, and all administrative and legal costs associated with collecting such fees and charges from any person, firm or corporation, as may fail, refuse or default in the payment of such fees and charges.

SECTION 32. Section 21-19-2, Mississippi Code of 1972, is amended as follows:

21-19-2. (1) (a) To defray the cost of establishing, operating and maintaining the system provided for in Section 21-19-1, the governing authority of a municipality may develop a system for the billing and/or collection of any fees or charges imposed on each person furnished garbage and/or rubbish collection and/or disposal service by the municipality or at the expense of the municipality. The governing authority of the municipality shall provide for the collection of the fees or charges.

(b) The governing authority of a municipality may enter into a contract upon mutual agreement with a public or private corporation, nonprofit corporation, planning and development district or a public agency, association, utility or utility district within the area receiving garbage and/or rubbish collection and/or disposal services from the municipality for the purpose of developing, maintaining, operating and administering a system for the billing and/or collection of fees or charges imposed by the municipality for garbage and/or rubbish collection and/or disposal services. The entity with whom the governing authority of a municipality contracts shall notify the governing authority of the municipality monthly of any unpaid fees or charges assessed under this section. Any entity that contracts to provide a service to customers, within the area being served by the municipality's garbage and/or rubbish collection and/or disposal system, may provide a list of its customers to the governing authority of the municipality upon the request of the governing authority.

(c) Notwithstanding the provisions of any other law, charter or ordinance to the contrary, the provisions of this paragraph (c) shall control. The governing authority of a municipality may enter into a contract upon mutual agreement with any county within the area receiving garbage and/or rubbish collection and/or disposal services from the municipality for the purpose of billing and/or collection of fees or charges imposed by the municipality for garbage and/or rubbish collection and/or disposal services, and any such county is hereby authorized to enter into such a contract. In its discretion, the municipality may bill and collect the fees or charges imposed by the municipality for garbage and/or rubbish collection and/or disposal services as part of the tax bills for the municipality issued by the tax collector of the county for those properties subject to such fees or charges. To the extent included as part of the tax bills, the fees or charges to be collected under this section shall be shown as a separate line item on the notice of ad valorem taxes on taxable property owed by the taxpayer.

(2) (a) To defray the cost of establishing and operating the system provided for in Section 21-19-1, the governing body of a municipality may levy an ad valorem tax not to exceed four (4) mills on all taxable property within the area served by the municipality's garbage and/or rubbish collection and/or disposal system. The service area may be comprised of incorporated and/or unincorporated areas within a county; however, no property shall be subject to this levy unless that property is within an area served by a municipality's garbage and/or rubbish collection and/or disposal system. The rate of the ad valorem tax levied under this section shall be shown as a line item on the notice of ad valorem taxes on taxable property owed by the taxpayer.

(b) In addition to or in lieu of any other method authorized to defray the cost of establishing and operating the system provided for in Section 21-19-1, the governing body of a municipality that has established a garbage and/or rubbish collection and/or disposal system may assess and collect fees or charges to defray the costs of such services. The governing authority may assess and collect the fees or charges from each single family residential generator of garbage and/or rubbish. The governing authority also may assess and collect such fees or charges from each industrial, commercial and multi-family residential generator of garbage and/or rubbish for any time period that the generator has not otherwise contracted for the collection of garbage and/or rubbish that is ultimately disposed of at a permitted or authorized nonhazardous solid waste management facility.

(c) Before the adoption of any resolution or ordinance to increase the ad valorem tax assessment or fees or charges authorized by this section, the governing authority of a municipality shall have published a notice advertising their intent to increase the ad valorem tax assessment or fees or charges authorized by this section. The notice shall specify the purpose of the proposed increase, the proposed percentage increase and the proposed percentage increase in total revenues for garbage and/or rubbish collection and/or disposal services or shall contain a copy of any resolution by the governing authority stating their intent to increase the ad valorem tax assessment or fees or charges authorized by this section. The notice shall be published in a newspaper having general circulation in the municipality for no less than three (3) consecutive weeks before the adoption of the order. The notice shall be in print no less than the size of eighteen (18) point and shall be surrounded by a one-fourth (1/4) inch black border. The notice shall not be placed in the legal section notice of the newspaper. There shall be no language in the notice inferring a mandate from the Legislature.

In addition to the requirement for publication of notice, the governing authority of a municipality shall notify each person furnished garbage and/or rubbish collection and/or disposal service of any increase in the ad valorem tax assessment or fees or charges authorized by this section. In the case of an increase of the ad valorem tax assessment, a notice shall be conspicuously placed on or attached to the first ad valorem tax bill on which the increased assessment is effective. In the case of an increase in fees or charges, a notice shall be conspicuously placed on or attached to the first bill for fees or charges on which the increased fees or charges are assessed. There shall be no language in any notice inferring a mandate from the Legislature.

(d) The governing authority of a municipality may adopt an ordinance authorizing the granting of exemptions from the fees or charges for certain generators of garbage and/or rubbish. The ordinance shall define clearly those generators that may be exempted and shall be interpreted consistently by the governing authority when determining whether to grant or withhold requested exemptions.

(e) Subject to the provisions of Section 21-19-1(3), the governing authority may borrow money for the purpose of defraying the expenses of the system in anticipation of:

(i) The tax levy authorized under this section;

(ii) Revenues resulting from the assessment of any fees or charges for garbage and/or rubbish collection and/or disposal; or

(iii) Any combination thereof.

(3) (a) Fees or charges for garbage and/or rubbish collection and/or disposal shall be assessed jointly and severally against the generator of the garbage and/or rubbish and against the owner of the property furnished the service. However, any person who pays, as a part of a rental or lease agreement, an amount for garbage and/or rubbish collection and/or disposal services shall not be held liable upon the failure of the property owner to pay such fees.

(b) Every generator assessed the fees or charges provided for and limited by this section and the owner of the property occupied by that generator shall be jointly and severally liable for the fees and/or charges so assessed. The fees or charges shall be a lien upon the real property offered garbage and/or rubbish collection and/or disposal service.

At the discretion of the governing body of the municipality, fees or charges assessed for the service may be assessed annually. If fees or charges are assessed annually, the fees or charges for each calendar year shall be a lien upon the real property offered the service beginning on January 1 of the next immediately succeeding calendar year. The person or entity owing the fees or charges, upon signing a form provided by the governing authority, may pay the fees or charges in equal installments.

If fees or charges so assessed are assessed on a basis other than annually, the fees or charges shall become a lien on the real property offered the service on the date that the fees or charges become due and payable.

No real or personal property shall be sold to satisfy any lien imposed under this section.

The municipality shall mail a notice of the lien, including the amount of unpaid fees or charges and a description of the property subject to the lien, to the owner of the property subject to the lien.

(c) The municipal governing body shall notify the county tax collector of any unpaid fees or charges assessed under this section within ninety (90) days after such fees or charges are due. Upon receipt of a delinquency notice, the tax collector shall not issue or renew a motor vehicle road and bridge privilege license for any motor vehicle owned by a person who is delinquent in the payment of fees or charges, unless such fees or charges, in addition to any other taxes or fees assessed against the motor vehicle, are paid.

(d) Liens created under this section may be discharged as follows:

(i) By filing with the municipal tax collector a receipt or acknowledgement, signed by the municipality, that the lien has been paid or discharged; or

(ii) By depositing with the municipal tax collector money equal to the amount of the claim, which money shall be held for the benefit of the municipality.

SECTION 33. Section 27-65-241, Mississippi Code of 1972, is brought forward as follows:

27-65-241. (1) As used in this section, the following terms shall have the meanings ascribed to them in this section unless otherwise clearly indicated by the context in which they are used:

(a) "Hotel" or "motel" means and includes a place of lodging that at any one time will accommodate transient guests on a daily or weekly basis and that is known to the trade as such. Such terms shall not include a place of lodging with ten (10) or less rental units.

(b) "Municipality" means any municipality in the State of Mississippi with a population of one hundred fifty thousand (150,000) or more according to the most recent federal decennial census.

(c) "Restaurant" means and includes all places where prepared food is sold and whose annual gross proceeds of sales or gross income for the preceding calendar year equals or exceeds One Hundred Thousand Dollars ($100,000.00). The term "restaurant" shall not include any nonprofit organization that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code. For the purpose of calculating gross proceeds of sales or gross income, the sales or income of all establishments owned, operated or controlled by the same person, persons or corporation shall be aggregated.

(2) (a) Subject to the provisions of this section, the governing authorities of a municipality may impose upon all persons as a privilege for engaging or continuing in business or doing business within such municipality, a special sales tax at the rate of not more than one percent (1%) of the gross proceeds of sales or gross income of the business, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq.

(b) The tax levied under this section shall apply to every person making sales of tangible personal property or services within the municipality but shall not apply to:

(i) Sales exempted by Sections 27-65-19, 27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 and 27-65-111 of the Mississippi Sales Tax Law;

(ii) Gross proceeds of sales or gross income of restaurants derived from the sale of food and beverages;

(iii) Gross proceeds of sales or gross income of hotels and motels derived from the sale of hotel rooms and motel rooms for lodging purposes;

(iv) Gross income of businesses engaging or continuing in the business of TV cable systems, subscription TV services, and other similar activities, including, but not limited to, cable Internet services;

(v) Wholesale sales of food and drink for human consumption sold to full service vending machine operators; and

(vi) Wholesale sales of light wine, light spirit product, beer and alcoholic beverages.

(3) (a) Before any tax authorized under this section may be imposed, the governing authorities of the municipality shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of the tax to be imposed, the purposes for which the revenue collected pursuant to the tax levy may be used and expended, the date upon which the tax shall become effective, the date upon which the tax shall be repealed, and calling for an election to be held on the question. The date of the election shall be set in the resolution. Notice of the election shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the municipality, with the first publication of the notice to be made not less than twenty-one (21) days before the date fixed in the resolution for the election and the last publication to be made not more than seven (7) days before the election. At the election, all qualified electors of the municipality may vote. The ballots used at the election shall have printed thereon a brief description of the sales tax, the amount of the sales tax levy, a description of the purposes for which the tax revenue may be used and expended and the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES TAX" and the voter shall vote by placing a cross (X) or check mark (√) opposite his choice on the proposition. When the results of the election have been canvassed by the election commissioners of the municipality and certified by them to the governing authorities, it shall be the duty of such governing authorities to determine and adjudicate whether at least three-fifths (3/5) of the qualified electors who voted in the election voted in favor of the tax. If at least three-fifths (3/5) of the qualified electors who voted in the election voted in favor of the tax, the governing authorities shall adopt a resolution declaring the levy and collection of the tax provided in this section and shall set the first day of the second month following the date of such adoption as the effective date of the tax levy. A certified copy of this resolution, together with the result of the election, shall be furnished to the Department of Revenue not less than thirty (30) days before the effective date of the levy.

(b) A municipality shall not hold more than two (2) elections under this subsection.

(4) The revenue collected pursuant to the tax levy imposed under this section may be expended to pay the cost of road and street repair, reconstruction and resurfacing projects based on traffic patterns, need and usage, and to pay the costs of water, sewer and drainage projects in accordance with a master plan adopted by the commission established pursuant to subsection (7).

(5) (a) The special sales tax authorized by this section shall be collected by the Department of Revenue, shall be accounted for separately from the amount of sales tax collected for the state in the municipality and shall be paid to the municipality. The Department of Revenue may retain one percent (1%) of the proceeds of such tax for the purpose of defraying the costs incurred by the department in the collection of the tax. Payments to the municipality shall be made by the Department of Revenue on or before the fifteenth day of the month following the month in which the tax was collected. However, if a municipality fails to comply with the audit, reporting and/or report filing requirements of paragraph (b) of this subsection and does not remedy such noncompliance within thirty (30) days after receiving written notice of noncompliance, the Department of Revenue shall withhold payments otherwise payable to the municipality under this paragraph (a) until the department receives written notice that the municipality has complied with such requirements.

(b) The proceeds of the special sales tax shall be placed into a special municipal fund apart from the municipal general fund and any other funds of the municipality, and shall be expended by the municipality solely for the purposes authorized in subsection (4) of this section. The records reflecting the receipts and expenditures of the revenue from the special sales tax shall be provided in detail to the members of the commission monthly, to include the name of the vendor and the project, and the dates and amounts received and paid, and shall also be audited annually by an independent certified public accountant. The accountant shall make a report of his findings to the governing authorities of the municipality and file a copy of his report with the Secretary of the Senate and the Clerk of the House of Representatives and the commission members. The audit shall be made and completed as soon as practical after the close of the fiscal year of the municipality, and expenses of the audit shall be paid from the funds derived by the municipality pursuant to this section.

(c) Any expenditure from the special municipal fund defined in paragraph (b) above that was not for a project approved by the commission, or was in excess of the amount approved by the commission, shall be reimbursed by the city to the special fund.

(d) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the Department of Revenue, enforced collection, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes or other provisions of law providing for imposition and collection of the state sales tax shall apply to the special sales tax authorized by this section, except where there is a conflict, in which case the provisions of this section shall control. Any damages, penalties or interest collected for the nonpayment of taxes imposed under this section, or for noncompliance with the provisions of this section, shall be paid to the municipality on the same basis and in the same manner as the tax proceeds. Any overpayment of tax for any reason that has been disbursed to a municipality or any payment of the tax to a municipality in error may be adjusted by the Department of Revenue on any subsequent payment to the municipality pursuant to the provisions of the Mississippi Sales Tax Law. The Department of Revenue may, from time to time, make such rules and regulations not inconsistent with this section as may be deemed necessary to carry out the provisions of this section, and such rules and regulations shall have the full force and effect of law.

(6) If a municipality expands its corporate boundaries, the governing authorities of the municipality may not impose the special sales tax in the annexed area unless the tax is approved at an election conducted, as far as is practicable, in the manner provided in subsection (3) of this section, except that only qualified electors in the annexed area may vote in the election.

(7) (a) Any municipality that levies the special sales tax authorized under this section shall establish a commission as provided for in this section. Expenditures of revenue from the special sales tax authorized by this section shall be in accordance with a master plan adopted by the commission pursuant to this subsection.

(b) The commission shall be composed of ten (10) voting members who shall be known as commissioners appointed as follows:

(i) Four (4) members representing the business community in the municipality appointed by the local chamber of commerce for initial terms of one (1), two (2), four (4) and five (5) years respectively. The members appointed pursuant to this paragraph shall be persons who represent businesses located within the city limits of the municipality.

(ii) Three (3) members shall be appointed at large by the mayor of the municipality, with the advice and consent of the legislative body of the municipality, for initial terms of two (2), three (3) and four (4) years respectively. All appointments made by the mayor pursuant to this paragraph shall be residents of the municipality.

(iii) One (1) member shall be appointed at large by the Governor for an initial term of four (4) years. All appointments made by the Governor pursuant to this paragraph shall be residents of the municipality.

(iv) One (1) member shall be appointed at large by the Lieutenant Governor for an initial term of four (4) years. All appointments made by the Lieutenant Governor pursuant to this paragraph shall be residents of the municipality.

(v) One (1) member shall be appointed at large by the Speaker of the House of Representatives for a term of four (4) years. All appointments made by the Speaker of the House of Representatives pursuant to this paragraph shall be residents of the municipality.

(c) The terms of all appointments made subsequent to the initial appointment shall be made for five (5) years. Any vacancy which may occur shall be filled in the same manner as the original appointment and shall be made for the unexpired term.

(d) The mayor of the municipality shall designate a chairman of the commission from among the membership of the commission. The vice chairman and secretary shall be elected by the commission from among the membership of the commission for a term of two (2) years. The vice chairman and secretary may be reelected, and the chairman may be reappointed.

(e) The commissioners shall serve without compensation.

(f) Any commissioner shall be disqualified and shall be removed from office for either of the following reasons:

(i) Conviction of a felony in any state court or in federal court; or

(ii) Failure to attend three (3) consecutive meetings without just cause.

If a commissioner is removed for any of the above reasons, the vacancy shall be filled in the manner prescribed in this section and shall be made for the unexpired term.

(g) A quorum shall consist of six (6) voting members of the commission. The commission shall adopt such rules and regulations as may govern the time and place for holding meetings, regular and special.

(h) The commission shall, with input from the municipality, establish a master plan for road and street repair, reconstruction and resurfacing projects based on traffic patterns, need and usage, and for water, sewer and drainage projects. Expenditures of the revenue from the tax authorized to be imposed pursuant to this section shall be made at the discretion of the governing authorities of the municipality if the expenditures comply with the master plan. The commission shall monitor the compliance of the municipality with the master plan.

(8) The governing authorities of any municipality that levies the special sales tax authorized under this section are authorized to incur debt, including bonds, notes or other evidences of indebtedness, for the purpose of paying the costs of road and street repair, reconstruction and resurfacing projects based on traffic patterns, need and usage, and to pay the costs of water, sewer and drainage projects in accordance with a master plan adopted by the commission established pursuant to subsection (7) of this section. Any bonds or notes issued to pay such costs may be secured by the proceeds of the special sales tax levied pursuant to this section or may be general obligations of the municipality and shall satisfy the requirements for the issuance of debt provided by Sections 21-33-313 through 21-33-323.

(9) This section shall stand repealed from and after July 1, 2035.

SECTION 34. Section 21-27-57, Mississippi Code of 1972, is amended as follows:

21-27-57. In the authorizing order or ordinance, the governing authorities of the municipality shall set aside monthly and shall pledge the revenues of the system or combined system, in separate and special funds as follows: ( * * *1a) operation and maintenance fund; ( * * *2b) depreciation fund; ( * * *3c) bond and interest fund; ( * * *4d) contingent fund. A sufficient amount shall be set aside each year for the retirement of the bonds and interest. Any surplus revenue remaining shall be disposed of by the governing authorities of the municipality as they may determine from time to time for the best interest of the municipality. However, in the segregation into the several funds the governing authorities may prescribe a reasonable excess amount to be placed in the revenue bond and interest fund from time to time during the earlier years of maturity of such bonds so as to thereby provide and produce a cushion fund to meet any possible deficiencies therein in future years. In the event such excess amounts are provided in the earlier years, the same would be available for such purposes. Bonds pursuant to the authority granted in Sections 21-27-23 and 21-27-51, shall be payable solely from revenues of said project and out of the bond and interest fund.

SECTION 35. Section 21-27-11, Mississippi Code of 1972, is brought forward as follows:

21-27-11. Whenever used in Sections 21-27-11 through 21-27-69:

(a) The term "municipality" includes any incorporated city, town or village of the State of Mississippi, whether incorporated under a special charter or under the general laws of the State of Mississippi governing municipalities, and operating under any form of municipal government. However, for the purpose of establishing a motor vehicle transportation system for the transportation of passengers within the boundaries of the governmental unit or units concerned, and within three (3) miles thereof, the word "municipality" is defined to include counties and groups of municipalities and shall allow those governmental units to establish a commission as provided in Section 21-27-13 and exercise the powers granted in Sections 21-27-11 through 21-27-69. Each county or municipality joining together shall be allowed at least one (1) commissioner representing that governing authority. For the purpose of establishing a railroad transportation system for passengers and freight, the term "municipality" includes any county bordering the Mississippi River and in which Highways 49 and 61 intersect, and such county may exercise the powers granted in Sections 21-27-11 through 21-27-69;

(b) The term "system" includes waterworks system, water supply system, sewage system, sewage disposal system, or any combination thereof, including any combined waterworks and sewage system, consisting of an existing waterworks system or water supply system or both, combined with an existing sewage system or sewage disposal system or both, or consisting of an existing waterworks system or water supply system or both, combined with a sewage system or sewage disposal system or both, to be acquired, (as defined herein), or consisting of an existing sewage system or sewage disposal system or both, combined with a waterworks system or water supply system or both, to be acquired, (as defined herein), gas producing system, gas generating system, gas transmission system or gas distribution system, or any one (1) or all thereof, electric generating, transmission, or distribution system, garbage disposal system, rubbish disposal system, and incinerators, and all parts and appurtenances thereof. The term "system" also includes a motor vehicle transportation system for the transportation of passengers within the city limits and within three (3) miles thereof. The term "system" also includes a railroad transportation system of any municipality located within a county bordering the Mississippi River and in which Highways 49 and 61 intersect for the transportation of passengers and freight regardless of the amount of area outside the jurisdictional limits of such municipality for which the system provides service; the railroad transportation system may be located partially outside the boundaries of the county. The term "system" also includes a motor vehicle transportation system for the transportation of passengers of any municipality with a population of more than forty-five thousand (45,000) but less than forty-five thousand one hundred (45,100) according to the 1970 federal decennial census regardless of the amount of area outside the city limits of such municipality for which the system provides service. Wherever in Sections 21-27-11 through 21-27-69 any one or more of the systems authorized under this section are referred to, the same shall include motor vehicle transportation systems. The term "system" also includes any franchise held by the owner thereof and shall also include operations within the capabilities of any component facility within the system which reasonably utilize the public resources;

(d) The term "acquire" includes construct, purchase, gift, exercise of power of eminent domain and other methods by which a municipality may acquire a system;

(e) The term "improve" includes repair, better, enlarge, extend and other methods of improving a system;

(f) The term "ordinance" includes ordinance, resolution or other appropriate legislative enactment of the governing authorities of any municipality.

SECTION 36. Section 21-27-13, Mississippi Code of 1972, is brought forward as follows:

21-27-13. The governing authorities of any municipality which now owns and operates, or hereafter shall own and operate, any system or systems shall have the power and authority to create a commission to control, manage and operate such systems, or any one or more of them, which said commission shall consist of not less than three (3) nor more than five (5) commissioners, to be elected by the governing authorities of such municipality. In any municipality operating under the council-manager plan of government, such commissioners shall be selected by, and shall be under the control of, the mayor and councilmen of the municipality, and not the city or town manager. Such commissioners shall have the power, authority and duty to manage and control said system or systems and the supply of the facilities and services thereof, both within and without the limits of the municipality. Such commissioners shall be qualified electors of the municipality and shall not hold any other municipal office for honor or profit. Such commissioners shall receive such compensation as may be specified and provided by the governing authorities of said municipality; provided, however, that any commission formed for the purpose of establishing a motor vehicle transportation system for the transportation of passengers within the boundaries of the governmental unit or units concerned, and within three (3) miles thereof, may pay its commissioners from the operating budget of such commission per diem compensation in the amount provided by Section 25-3-69 for each day or fraction of a day engaged in attendance of meetings of the commission or engaged in other official duties of the commission, not to exceed forty-five (45) days in any one (1) year. The governing authorities of the municipality are hereby authorized and empowered to require such commissioners to furnish bonds for the faithful performance of their duties, in the amount as may be deemed proper, and to pay the premiums thereon from the municipal treasury or the available funds of the said system or systems. Where there are three (3) members of such commission, the term of office shall be for a period of three (3) years, and where there are four (4) members the term of office shall be for a period of four (4) years, and where there are five (5) members the term of office shall be for a period of five (5) years. However, in making the first appointment of commissioners, one (1) shall be appointed for a term of one (1) year, one (1) for a term of two (2) years, one (1) for a term of three (3) years and, where necessary, one (1) for a term of four (4) years, and one (1) for a term of five (5) years, so that thereafter the term of office of one (1) commissioner shall expire each year. Where the governing authorities of the municipality do not elect to create a commission as herein provided, then any system or systems owned and operated by the municipality shall be controlled and managed by the governing authorities of the municipality, who shall have all the power and authority conferred upon such commission.

SECTION 37. Section 21-27-15, Mississippi Code of 1972, is brought forward as follows:

21-27-15. The governing authorities of such municipality shall have the power to remove any member of said commission for inefficiency or incompetency or any other cause, but the governing authority of any municipality which has created a commission under the terms of Section 21-27-13, shall not have authority to abolish the commission, or to diminish its powers, except by a vote of a majority of the qualified electors of such municipality at a special election, duly called and held for that purpose. However, nothing herein shall limit, alter, impair or in any way change the procedure prescribed for the sale or lease of a public utility system under Section 21-27-33.

SECTION 38. Section 21-27-17, Mississippi Code of 1972, is brought forward as follows:

21-27-17. The commission provided for by Section 21-27-13 is authorized to make such bylaws for the holding and conduct of its meetings and such other regulations as it may deem necessary for the safe, economic and efficient management and protection of the system or systems, and such bylaws and regulations shall have the same validity as an ordinance duly passed by the governing authorities of any municipality.

It is authorized to elect such officers and appoint such employees as may be necessary to operate the system or systems efficiently, and it shall have the entire control and management of such system or systems, together with all property connected or appertaining in any manner to such system or systems. The commission shall have the authority to employ a superintendent or manager of the systems, who shall have actual charge of the management and operation thereof and of the enforcement and execution of all the rules, regulations, programs, plans and decisions made and adopted by the commission in making purchases for materials and supplies to be used in the operation of the systems. In addition to any other purchasing authority granted by law, the commission may purchase electric transmission line materials, electric distribution system substation equipment, transformer equipment, and all other appliances, apparatus, machinery, equipment and appurtenances necessary for the sale of electricity, such as utility vehicles and fencing, from the surplus inventory of the Tennessee Valley Authority or any other similar agency of the federal government and electric power associations. These purchases shall be exempt from the public bid requirements prescribed in Sections 31-7-12 and 31-7-13. However, for all other purchases, the commission shall advertise for competitive bids in the manner and form as is required in accordance with Section 31-7-13. The superintendent or manager shall make and keep full and proper books and records of all purchases and shall submit them to the commission for its approval and ratification before payment thereof is authorized to be made. The commission may authorize the superintendent or manager to immediately refund to a customer of the municipally owned utility his or her deposit for municipal utility services after the superintendent or manager has determined that payment for all services and any other obligations which the customer may have incurred in regard to the municipal utility has been made. It shall have the right to fix the salaries and term of office of all employees and to direct them in the discharge of their duties. It shall have the right to require good and sufficient bonds from all officers and employees in such amounts as it may deem proper. It shall have the right to discharge employees when found inefficient or for other good cause. It shall have the power to make and collect rates for services and facilities, and appropriate funds for the maintenance and improvements of such systems. It is authorized to borrow from the Mississippi Development Bank in order to fund advance purchases of energy for gas producing, generating, transmission or distribution system or its electric generating, transmission or distribution system. It is authorized to insure all property used in the operation of such systems, including buildings, furniture, books and records, against loss by fire and tornado, and to carry sufficient amount of employers liability, steam boiler, plate glass and other miscellaneous casualty insurance, as in the discretion of the commission may be deemed proper, and to pay premiums therefor out of the funds derived from the operation of the systems. It shall report quarterly to the governing authorities of the municipality of all its doings and transactions of every kind whatsoever and shall make a complete statement of the financial condition of the systems at the end of each quarter, and shall annually make a detailed statement covering the entire management and operation of the systems, with any recommendations which it may have for the further development of the systems. At any time, the commission, by order or resolution, may authorize the expansion of activities of any component facility to include processing of materials on a custom basis or the processing and marketing of materials acquired to fully and efficiently utilize existing plant capacity. It shall also provide copies of all such quarterly and annual reports and statements to the Public Service Commission when so directed under Section 77-3-6.

The commission provided for by Section 21-27-13 is also authorized to allow a municipally owned utility to prepay the utility's bills to those electricity suppliers which offer early payment discounts to the municipally owned utility.

SECTION 39. Section 21-27-19, Mississippi Code of 1972, is brought forward as follows:

21-27-19. The commission shall devote all monies, derived from any source other than the issuance of bonds for purposes authorized by the laws of the State of Mississippi, to or for the payment of all operating expenses, including such items as are normally required of utilities for sales development; to or for the payment of all bonds and interest on outstanding revenue bonds, if any, of such systems; to or for the acquisition and improvement of the system contingencies; to or for the payment of all other obligations incurred in the operation and maintenance of the systems and the furnishing of service; to or for the creation and maintenance of a cash working fund or a surplus fund to be used for replacement, extension of systems, and emergencies. The balance of the revenues of said systems, if any, may be used for any other lawful municipal purpose and may be paid to the governing authorities of the municipality for distribution to the various municipal funds, or may be disbursed for said purpose by the said commission at the direction and request of the governing authorities of such municipality.

SECTION 40. Section 21-27-21, Mississippi Code of 1972, is brought forward as follows:

21-27-21. The commission shall keep an accurate account and record of power, current, water, or other services furnished to all departments of the municipality.

SECTION 41. Section 21-27-23, Mississippi Code of 1972, is brought forward as follows:

21-27-23. Any municipality may:

(a) Borrow money and issue revenue bonds therefor solely for the purposes specified in this section and by the procedure provided in Sections 21-27-41 through 21-27-69.

Money may be borrowed and bonds issued by any municipality of the State of Mississippi, as defined in Section 21-27-11, to acquire or improve any waterworks system, water supply system, sewerage system, sewage disposal system, garbage disposal system, rubbish disposal system or incinerators, gas producing system, gas generating system, gas transmission system, or gas distribution system, electric generating, transmission or distribution system, railroad transportation system for passengers and freight, or motor vehicle transportation system, including any combination of any or all of those systems into one (1) system, within or without the corporate limits thereof, for the purpose of supplying the municipality and the persons and corporations, both public and private, whether within or without its corporate limits, with the services and facilities afforded by the system, provided that water, electric energy, or gas afforded by any system or systems may be supplied to such ultimate consumers thereof by sale thereof to the owners or operators of a distribution system for resale to the public. Any municipality which shall borrow money and issue revenue bonds to provide funds with which to acquire a gas transmission system, if necessary in order to reach and obtain a source of supply of gas for the municipality, may extend or construct its gas transmission line into an adjoining state, and may use and expend part of the proceeds of such issue of revenue bonds for the purpose.

(b) To assume all indebtedness for any system or systems which may be acquired under the provisions of this section as all or part of the consideration for the acquisition of such system or systems and to issue its revenue bonds in exchange for the bonds or notes evidencing the indebtedness.

(c) To acquire or improve any system which it is authorized to borrow money and issue revenue bonds under subsection (a) of this section to acquire or improve; and to make contracts in furtherance thereof or in connection therewith.

(d) To own, operate and maintain any such system or combination of any and all of said systems into one (1) system.

(e) To establish, maintain and collect rates for the facilities and services offered by any such system; provided that if there is a combination of systems into one or more systems, the municipality establishing the same shall be and is empowered to establish, maintain and collect rates for any and all of the services or for any combination thereof, and the municipality may discontinue any or all of the services upon any failure to promptly pay the charges fixed for the services. The rates so fixed for services rendered by any system or combination thereof may be charged for all services rendered thereby, regardless of whether the services may have been previously rendered without rates or charges therefor by the previously existing waterworks system, water supply system, sewerage system, sewage disposal system, garbage disposal system, rubbish disposal system or incinerators, gas producing system, gas generating system, gas transmission system, or gas distribution system, electric generating, transmission or distribution system, which shall have been merged into the combined system. Any such municipality may pledge for the payment of any bonds issued to acquire or improve any such combined system, or to refund any bonds previously issued to acquire or improve any such combined system or to acquire or improve any system merged with such combined system, the revenues to be derived from the operation of such combined system, including the charges authorized to be imposed by this section.

A municipality may authorize a municipally owned utility to make early payment of the utility's bills to its electricity suppliers which offer early payment discounts to the municipally owned utility. The municipality may immediately refund to a customer of the municipally owned utility his or her deposit for municipal utility services after the municipal utility has determined that payment for all services and any other obligations which the customer may have incurred in regard to the municipal utility has been made.

If the revenues of any previously existing system being merged into a combined system are subject to a prior lien, the revenues and the expenses of any previously existing system shall be accounted for separately to the extent necessary to satisfy the covenants relating to the prior lien for so long as the indebtedness secured by the revenues shall remain outstanding. Only surplus revenues remaining after the satisfaction of all covenants relating to the outstanding indebtedness may be pledged to the retirement of any indebtedness to be secured by the revenues of a combined system. The existence of the outstanding indebtedness shall not, in and of itself, prevent the combining of systems as herein provided, so long as the prior lien on the revenues of any previously existing system is fully satisfied from the revenues of the previously existing system.

(f) To acquire property, real or personal, which may be necessary to effectuate the powers conferred by this section. The municipality may purchase electric transmission line materials, electric distribution system substation equipment, transformer equipment, and all other appliances, apparatus, machinery, equipment and appurtenances necessary for the sale of electricity, such as utility vehicles and fencing, from the surplus inventory of the Tennessee Valley Authority or any other similar agency of the federal government and electric power associations. These purchases by the municipality shall be exempt from the public bid requirements prescribed in Sections 31-7-12 and 31-7-13. If the power of eminent domain is exercised, it shall be exercised in the manner provided by Sections 11-27-1 through 11-27-51.

(g) To enter into contract with the United States of America or any agency thereof, under the provisions of acts of the Congress of the United States, to aid or encourage public works and the regulations made in pursuance thereof, for the sale of bonds issued in accordance with the provisions of Sections 21-27-41 through 21-27-69 or for the acceptance of a grant to aid such municipality in acquiring or improving any such system; and the contracts may contain terms and conditions as may be agreed upon by and between the municipality and the United States of America or any agency thereof, or any purchaser of the bonds.

(h) To adopt the ordinances and resolutions and to do all things and perform all acts necessary, proper or desirable to effectuate the full intent and purpose of Sections 21-27-11 through 21-27-69, including processing, marketing, custom processing, sale and resale of materials processed through any facility under its jurisdiction.

(i) To borrow from the Mississippi Development Bank in order to fund the advance purchase of energy for its gas producing, generating, transmission or distribution system or its electric generating, transmission or distribution system.

(j) Enter into an interlocal agreement in accordance with Section 21-27-75.

SECTION 42. Section 21-27-25, Mississippi Code of 1972, is brought forward as follows:

21-27-25. Any municipality which owns or operates any system, shall have the power and authority through its utilities commission to borrow money and issue its negotiable notes or certificates of indebtedness therefor, in an amount not to exceed ten percent (10%) of the gross revenues of the system in the last preceding fiscal year, in any calendar year, for the purpose of improving, repairing or extending any such system, or of stockpiling fuel for any such system, or systems, without the necessity of calling and holding an election upon such question or otherwise obtaining the consent of the qualified electors of the municipality, or giving any notice thereof. However, the utilities commission shall secure approval of the governing authorities of the municipality. In all cases where money is borrowed under the provisions of this section, the same shall be repaid within three (3) years and at no time shall the amount of money borrowed under this section exceed thirty percent (30%) of the gross revenues of the system for the last preceding fiscal year.

SECTION 43. Section 21-27-27, Mississippi Code of 1972, is brought forward as follows:

21-27-27. No free service shall be furnished by any such system, or combined system, to any private person, firm, corporation, or association. The municipality may, however, furnish such service, free of charge, to the municipality or any agency or department thereof, to any public school, or to any hospital or benevolent institution located within such municipality, including county, city, and community fairs.

SECTION 44. Section 21-27-29, Mississippi Code of 1972, is brought forward as follows:

21-27-29. Rates charged for services furnished by any system or combined system purchased, constructed, improved, enlarged, extended or repaired under the provisions of Sections 21-27-11 to 21-27-69 shall not be subject to supervision or regulation by any state bureau, board, commission, or other like instrumentality or agency thereof. It shall not be necessary for any municipality operating under the provisions of said sections to obtain any franchise or other permit from any state bureau, board, commission or other instrumentality thereof, in order to construct, improve, enlarge, extend or repair any system or combined system. However, billing and service disputes between the system and its customers shall be subject to review and arbitration by the Public Service Commission as provided under Section 77-3-6.

SECTION 45. Section 21-27-31, Mississippi Code of 1972, is brought forward as follows:

21-27-31. Any municipality issuing revenue bonds pursuant to the authority granted in Section 21-27-23 shall install and maintain proper books of record and account (separate entirely from other records and accounts of such municipality), in which correct entries shall be made of all dealings or transactions of or in relation to the properties, business and affairs of the system or combined system. The governing authorities of such municipality, not later than three months after the close of any calendar, operating or fiscal year, shall cause to be prepared a balance sheet and an income and operating and surplus account showing, respectively, in reasonable detail, the financial condition of the system or combined system at the close of such preceding calendar, operating or fiscal year, and the financial operations thereof during such year. Said balance sheet and the income and operating and surplus account shall at all times during the usual business hours be open to examination and inspection by any taxpayer, user of the services furnished by the system, or any holder of bonds issued pursuant to the authority granted in Section 21-27-23, or any one acting for or on behalf of such taxpayer, user of the services of the system, or bondholder.

SECTION 46. Section 21-27-33, Mississippi Code of 1972, is brought forward as follows:

21-27-33. All municipalities of the state are hereby empowered and authorized, if they so desire, to sell, lease, or otherwise dispose of any or all electric, water, gas or other municipally-owned public utility systems or properties on such terms and conditions, and with such safeguards as will best promote and protect the public interest. Said municipal corporations are empowered and authorized to transfer title to said public utility properties by warranty deed, bill of sale, contract, or lease, in the manner provided by law. However, notice of intention to make such sale, lease, or disposition of any such system, setting out the price and other general terms and conditions of such proposed sale, lease, or disposition shall be given by publication, once a week for three (3) consecutive weeks in a legal newspaper published in such municipality, and if no such newspaper be published in said municipality, then in some newspaper having a general circulation in such municipality. After ten (10) days from the last publication of such notice, the system may be disposed of, unless within ten (10) days after the last publication of such notice a petition signed by not less than twenty per centum (20%) of the qualified voters of such municipality be filed, objecting to and protesting against such sale, lease, or disposition, in which event the same shall not be made unless submitted to a special election ordered for the purpose of determining whether a majority of those voting in such election shall vote for or against such sale, lease, or other disposition. Such election shall be ordered to be held not less than forty (40) days after the date of the last notice of the proposed sale, lease or disposition. Notice of such election, stating the purpose of election, shall be published once each week for three (3) consecutive weeks next preceding the time set for holding said election in such newspaper as herein provided. The laws governing special municipal elections shall govern the ordering and conduct of said election.

The ballots provided shall have plainly written or printed thereon the words "shall the waterworks, electric, or gas (as the case may be) system be sold, leased, or disposed of (as the case may be)" and below said words shall be suitably placed on separate lines, the words "yes" and "no," so that the voter may indicate the way he desires to vote on the question submitted.

If a majority of those voting in said election shall vote in favor of such sale, lease, or disposition, then the proper officer of the municipality may proceed to sell, lease or dispose of such system in accordance with the terms and conditions set out in the notice of proposed intention to sell, lease or dispose of such system, as herein provided. If such election is determined against such sale, lease or disposition of such system, then such system shall not be sold, leased or disposed of, but shall remain the property of the municipality.

SECTION 47. Section 21-27-35, Mississippi Code of 1972, is brought forward as follows:

21-27-35. The governing authorities of any municipality which have sold or which may hereafter sell any utility system owned by such municipality, may use the proceeds of the sale of such system, or any part thereof, for the purpose of retiring and paying off any of the public debt of the municipality, and they may purchase the outstanding bonds or other obligations of the said municipality at such price, whether above or below par, as they may consider fair and reasonable. The said governing authorities may, in their discretion, invest the said funds, or any part thereof, derived from the sale of the said system or systems in any of the securities now eligible for purchase by public sinking funds of municipalities, at such price, whether above or below par, as they may determine to be fair and reasonable.

SECTION 48. Section 21-27-37, Mississippi Code of 1972, is brought forward as follows:

21-27-37. The governing authorities of every municipality shall have power to inspect or cause to be inspected the machinery, appliances and premises of all persons, copartnerships or corporations owning or operating any system within their corporate limits, in order to ascertain whether or not the said machinery, appliances and premises are kept in a sanitary condition and in condition to comply with the terms and requirements of the franchise or franchises under which the said system or systems are operated.

If any person, copartnership or corporation, or any employee thereof, shall refuse to permit the municipal governing authorities to make such inspection immediately when requested so to do, they shall, for each such refusal, forfeit the sum of One Thousand Dollars, to be recovered in an action in the name of said municipality.

SECTION 49. Section 21-27-39, Mississippi Code of 1972, is brought forward as follows:

21-27-39. All municipalities owning or operating any system or systems may supply consumers residing outside of and within five (5) miles of the corporate limits of the municipality. In any county traversed by two (2) or more natural gas transmission lines and having therein two (2) or more natural gas compressor stations engaged in rendering service in interstate commerce, and wherein a natural gas transmission line of a municipality can be laid wholly in alluvial soil, where it is necessary for any municipality having a population of less than one thousand (1,000), according to the federal census of 1950, to construct a gas transmission line for a distance of more than five (5) miles but not more than eleven (11) miles from its corporate limits to the nearest point at which an adequate supply of natural gas can be obtained, and where there are not less than two hundred (200) prospective gas customers residing outside the corporate limits of such municipality but along and within one-half (1/2) mile of the gas transmission line so constructed by the municipality, then and in that event, the municipality may supply natural gas to such customers. Any municipality having its own natural gas transmission system in any county bordering the State of Alabama, in which U.S. Highway No. 78 and State Highway No. 25 intersect, and in which there is a publicly supported junior college, may extend its transmission lines and supply customers within the county for a distance of fifteen (15) miles from the corporate limits. Any municipality having a population of less than one thousand (1,000) people, according to the federal census of 1960, and being located in the county in which U.S. Highway 51 and U.S. Highway 82 intersect, and in the county where the main line of Illinois Central Railroad and Columbus and Greenville Railroad intersect, may construct a gas transmission line and supply customers within a four-county area for a distance of forty-five (45) miles from the corporate limits of the municipality. Any municipality having its own water distribution system, the construction or expansion of which has been financed in whole or in part by an agency of the United States government, and having a population of less than five hundred (500) persons, and located in a county in which Mississippi State Highways Number 12 and Number 429 intersect, may construct, expand and operate its water distribution system within the county or adjoining counties for a distance of fifteen (15) miles from the corporate limits. Any municipality having its own water distribution system, the construction or expansion of which has been financed in whole or in part by an agency of the United States government, and having a population of less than fifteen hundred (1500) persons, and located in a county in which Highway 15 and Highway 32 intersect and has a national forest, may construct, expand and operate its water distribution system within the county or adjoining counties for a distance of fifteen (15) miles from the corporate limits.

Any municipality having its own water distribution system and located in a county having two (2) judicial districts, and in which Mississippi Highways 17 and 35 intersect, may construct, expand and operate its water distribution system within the county or adjoining counties for a distance of fifteen (15) miles from the corporate limits. Any municipality having its own water distribution system, wherein U.S. Highway 51 and Mississippi Highway 35 intersect, and located in a county in which U.S. Highway 82 and Mississippi Highway 17 intersect, may construct, expand and operate its water distribution system within the county or adjoining counties for a distance of fifteen (15) miles from the corporate limits. Whenever such service shall be furnished to any consumer residing outside the corporate limits thereof, such consumer may not be charged at a rate greater than twice the rate charged for such services within the municipality.

Any municipality located within a county bordering the Mississippi River and in which Highways 49 and 61 intersect may acquire, construct, expand and operate its railroad transportation system for the transportation of passengers and freight for more than five (5) miles outside its corporate limits and outside the boundaries of the county in which it is located. Any municipality having a population of more than forty-five thousand (45,000) but less than forty-five thousand one hundred (45,100) according to the 1970 federal decennial census, may expand its motor vehicle transportation system for the transportation of passengers for more than five (5) miles outside its corporate limits.

Any municipality having a population of less than five hundred (500) according to the 1980 federal decennial census, being located north of U.S. Highway 82 in a county in which is located a United States Air Force base and a state-supported institution of higher learning established primarily for women, which criteria the Legislature finds to be conducive to the expansion of natural gas service to support contiguous areas of such Air Force base, may construct, own and/or operate a public utility or natural gas system and supply customers within the county for a distance of eleven (11) miles from the corporate limits.

SECTION 50. Section 21-27-40, Mississippi Code of 1972, is brought forward as follows:

21-27-40. (1) Any municipality having its own natural gas transmission system in any county bordering the State of Alabama in which U. S. Highway 78 and State Highway 25 intersect and in which there is a publicly supported junior college and which is authorized by Section 21-27-39, Mississippi Code of 1972, to extend its natural gas transmission lines may, in its discretion, enter into a contract for service with any natural gas district organized under the laws of this state, any part of which is located in said county. Such municipality may use such contract in determining the amount of funds available for the repayment of any bonds issued for this purpose in accordance with law.

(2) Said natural gas district may enter into a contract with said municipality to the extent of such municipality's authorization under Section 21-27-39, Mississippi Code of 1972, for the construction of gas transmission lines within such district and for supplying the customers within such district.

SECTION 51. Section 21-27-41, Mississippi Code of 1972, is brought forward as follows:

21-27-41. Whenever the governing authorities of any municipality shall determine to issue bonds pursuant to the authority granted in Section 21-27-23 to acquire or improve a system, it shall cause an estimate to be made of the cost of such system or improvement, and the fact that such estimate has been made shall appear in the ordinance authorizing the issuance of such bonds, which ordinance shall set forth a brief description in general terms of the contemplated system or improvement, the estimated life thereof, the said estimated cost thereof, the amount, date, denominations, rate of interest, times and places of payment and other details in connection with the issuance of the bonds, and such covenants and restrictions as may be necessary or desirable to safeguard the interests of the holders of the bonds.

SECTION 52. Section 21-27-43, Mississippi Code of 1972, is brought forward as follows:

21-27-43. Except as hereinafter provided, no bonds shall be issued pursuant to the authority granted in Section 21-27-23 until and unless a majority of those qualified electors of the municipality, voting on a proposition stating in general terms the maximum amount and purposes of the bonds, have approved the issuance at a special election called thereon according to law.

However, the requirement for an election to be held before the issuance of the bonds shall not apply to the issuance of the revenue bonds for the purpose of improving, repairing or extending any waterworks system, water supply system, sewage system, sewage disposal system (or the addition of a sewage disposal system to a sewage system), gas producing system, gas generating, transmission, or distribution system, electric generating, transmission, or distribution system, garbage disposal system, rubbish disposal or incinerator system, or motor vehicle transportation system, which is now, or hereafter, owned or operated by any municipality, or railroad transportation system owned or operated by any municipality located in a county bordering the Mississippi River and in which Highways 49 and 61 intersect. The revenue bonds may be issued for such purposes in the following manner: notice of intention to issue the revenue bonds, setting out the amount and other terms or conditions of the proposed issue, shall be given by publication once a week for three (3) consecutive weeks in a local newspaper published in the municipality, and if a newspaper is not published in the municipality, then in some newspaper having a general circulation in the municipality. After ten (10) days from the last publication of the notice, the bonds may be sold under the regular procedure for selling the bonds unless, within ten (10) days after the last publication of the notice, a petition signed by not less than twenty percent (20%) of the qualified voters of such municipality be filed objecting to and protesting against such revenue bond issue, in which event the same shall not be made unless submitted to a special election ordered for the purpose of determining whether or not a majority of those voting in the election shall vote for or against the revenue bond issue. The election shall be ordered to be held not later than forty (40) days after the date of the last notice of the proposed revenue bond issue. Notice of the election, stating the purpose of the election, shall be published once each week for three (3) consecutive weeks next preceding the time set for holding the election in the newspaper, provided in this section. The laws governing municipal elections shall govern the order and conduct of the election. However, nothing in this section shall prevent the governing authorities from calling an election, whether required by petition of twenty percent (20%) of the qualified voters or not. This section shall not have application to and it shall not affect the authority granted public utilities commissions under Section 21-27-25.

SECTION 53. Section 21-27-45, Mississippi Code of 1972, is brought forward as follows:

21-27-45. Such bonds as may be issued pursuant to the authority granted in Section 21-27-23 may be serial or term; redeemable, with or without premium, or nonredeemable; registered or coupon bonds with registration privileges as to either principal and interest, principal only or both. They shall bear interest at a rate to be determined pursuant to the sale of the bonds, and shall be payable at such time or times as shall be prescribed in the ordinance authorizing them. They shall mature at such time or times, not exceeding the said estimated life of the contemplated system or improvement, and in no event longer than thirty (30) years from their date, and at such place or places as shall be prescribed in the ordinance authorizing their issuance. Any provisions of the general laws to the contrary notwithstanding, any bonds and interest coupons issued pursuant to the authority granted in Section 21-27-23 shall possess all the qualities of negotiable instruments. The bonds and the interest coupons shall be executed in such manner and shall be substantially in the form prescribed in the authorizing ordinance. In case any of the officers whose signatures or countersignatures appear on the bonds or interest coupons shall cease to be such officers before delivery of such bonds, such signatures or countersignatures shall nevertheless be valid and sufficient for all purposes the same as if they had remained in office until such delivery. No bond shall bear more than one (l) rate of interest. Each bond shall bear interest from its date to its stated maturity date at the interest rate specified in the bid. All bonds of the same maturity shall bear the same rate of interest from date to maturity. All interest accruing on such bonds so issued shall be payable semiannually or annually, except that the first interest coupon attached to any such bond may be for any period not exceeding one (l) year.

No interest payment shall be evidenced by more than one (l) coupon and neither cancelled nor supplemental coupons shall be permitted. The lowest interest rate specified for any bonds issued shall not be less than seventy percent (70%) of the highest interest rate specified for the same bond issue. Such bonds shall be sold in such manner and upon such terms as the governing authorities of the municipality shall determine, provided that such bonds shall not bear a greater overall maximum interest rate to maturity than that allowed in Section 75-17-103, Mississippi Code of 1972, and the interest rate on any one (1) interest maturity shall not exceed the maximum interest rate allowed on such bonds. Each interest rate specified in any bid must be in multiples of one-eighth of one percent (1/8 of 1%) or in multiples of one-tenth of one percent (1/10 of 1%). If serial bonds, such bonds shall mature annually, and the first maturity date thereof shall not be more than five (5) years from the date of such bonds. Such bonds shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi. The bonds and interest coupons shall be exempt from all state, county, municipal and other taxation under the laws of the State of Mississippi. The principal of and interest upon such bonds shall be payable solely from the revenues derived from the operation of the system acquired or improved with proceeds of the sale of such bonds. No bond issued pursuant to the authority granted in Section 21-27-23 shall constitute an indebtedness of a municipality within the meaning of any statutory or charter restriction, limitation or provision. It shall be plainly stated on the face of each such bond in substance that the same has been issued pursuant to the authority granted in Section 21-27-23 and that the taxing power of the municipality issuing the same is not pledged to the payment of such bond or interest thereon, and that such bond and the interest thereon are payable solely from the revenues of the system to acquire or improve which such bond is issued.

Such bonds shall be sold on sealed bids at public sale in the manner provided by Section 31-19-25. In the event the issuing municipality shall have received a commitment from any agency of the United States of America for the purchase of all or any portion of an issue of such bonds prior to the sale thereof or for financial assistance in providing debt service on such bonds, then, and in such event, said issue or any part thereof may be sold to the United States of America or any agency thereof at private sale. Provided, however, no bonds issued under the authority of Section 21-27-23 shall bear an overall maximum interest rate greater than that allowed in Section 75-17-103, Mississippi Code of 1972.

It is specifically provided that any bond issue to be awarded and sold to the United States of America or any agency thereof shall mature at such time or times, not to exceed thirty-five (35) years, as shall be prescribed in the ordinance of the municipality authorizing their issuance.

It is specifically provided that any bond issue to be awarded and sold to the United States of America or any agency thereof may be issued as one or more amortized bonds without coupons, may be dated the date of delivery thereof, and the purchase price for such bond or bonds may be delivered in multiple advances, with interest to accrue on the principal advanced from the date of each such advance. The amount of each such advance and the date thereof shall be registered on the reverse of each such bond and attested by the manual signature of the clerk of the municipality.

On issues of Five Million Dollars ($5,000,000.00) or more, the governing authorities of a municipality may retain the services of a fiscal advisor to assist in the sale of bonds hereunder and pay to such fiscal advisor a fee not to exceed the following amount: Twenty-five Thousand Dollars ($25,000.00) plus one-quarter of one percent (1/4 of 1%) of the amount of the issue in excess of Five Million Dollars ($5,000,000.00). No such fiscal advisor shall be eligible to bid for or participate in the underwriting of the bonds for which he acted as advisor.

Before a person can qualify as a fiscal advisor under the terms of this section, he shall have been actively engaged in the business of fiscal counseling for municipalities, or the underwriting of municipal bonds, for a period of five (5) years prior to qualifying under this section. A partnership or corporation may become a fiscal advisor hereunder with the same qualifications. Such person, corporation, or partnership shall have had prior experience as a fiscal advisor or been involved in the underwriting or investing in bonds of the State of Mississippi, or one or more of the subdivisions thereof, and such person, partnership or corporation shall be recognized in the fiscal community as a reputable and qualified fiscal advisor.

SECTION 54. Section 21-27-47, Mississippi Code of 1972, is brought forward as follows:

21-27-47. Any municipality having outstanding bonds issued pursuant to the authority granted in Section 21-27-23 shall maintain rates for all the services and facilities afforded by any system, the revenues of which are pledged to the payment of such bonds, which rates shall be sufficient at all times to maintain an interest and bond redemption fund sufficient to pay the interest on and principal of such bonds as and when the same become due and payable and, if so provided in the ordinance authorizing such bonds, to accumulate a reserve in such fund, and to provide for the payment of such cost of operation and maintenance as may be necessary to keep such system at all times in good repair and working order. Such rates shall be fixed by separate ordinance precedent to or at the time of the issuance of such bonds and shall be revised from time to time so as to produce the amounts necessary to provide for the foregoing. Bonds issued pursuant to the authority granted in Section 21-27-23 to acquire or improve a system shall be secured by a pledge of an amount of the gross revenues of such system sufficient to maintain such an interest and bond redemption fund. However, if there are then outstanding bonds to the payment of which the revenues of a system have been previously pledged, then, until said outstanding bonds have been retired, bonds issued to improve such system shall be secured by a pledge of the revenues of the system in such an amount only after deductions have been made for servicing the said outstanding bonds and for maintaining and operating the system. Notwithstanding the above provisions, all revenue bonds issued for a specific utility may be issued on an equivalent basis, provided that each and every ordinance authorizing each and every bond issued shall clearly state the basis on which future revenue bond issues shall be provided for in order to place them on an equivalent basis with prior issues.

SECTION 55. Section 21-27-49, Mississippi Code of 1972, is brought forward as follows:

21-27-49. Whenever any municipality shall issue any bonds or other evidence of indebtedness which are payable solely from revenues to be derived from any system, the governing authorities of such municipality may, by appropriate provision in the ordinance or resolution authorizing the issuance of such bonds, or by separate resolution or ordinance passed at or prior to the actual sale of such bonds, bind and obligate such municipality to take, for a period not exceeding the full term of such bonds, at least a stated minimum of the services to be afforded by such system and to pay, out of its corporate funds, a least a stated minimum price therefor. Such provision, resolution or ordinance shall constitute a contract between such municipality and all the holders of such bonds.

All such agreements heretofore entered into by any such municipality, whether such bonds have actually been delivered and paid for or not, are hereby ratified, approved and validated.

SECTION 56. Section 21-27-51, Mississippi Code of 1972, is brought forward as follows:

21-27-51. Any municipality which shall have issued bonds pursuant to the authority granted in Section 21-27-23, all or any portion of which shall at any time hereafter remain outstanding and unpaid, is hereby authorized, in connection with the issuance of additional bonds hereunder, to issue refunding bonds for the purpose of taking up, paying and redeeming all such outstanding and unpaid bonds. Such refunding bonds and such additional bonds may be authorized and issued separately or may be consolidated into one issue. Such outstanding and unpaid bonds may be refunded without notice and without an election thereon, and such additional bonds may be refunded without notice and without an election except as provided in Section 21-27-43. The proceeds of any such consolidated bonds shall be used to take up, pay and redeem all of such outstanding and unpaid bonds, at their redemption price, and the balance of such proceeds shall be used and expended for the purposes for which the additional bonds were authorized to be issued. In the event any such outstanding bonds, by the terms thereof, shall be redeemable prior to maturity at the option of such municipality, then such option of redemption shall be exercised in the manner provided in such bonds, and the refunding bonds shall not be issued or delivered more than two (2) calendar months in advance of the date upon which such outstanding bonds shall have been called for redemption. In the event that such outstanding bonds, by the terms thereof, be not so redeemable prior to maturity, then the refunding bonds shall not be issued, except concurrently with the surrender and cancellation of a like amount of the bonds to be refunded thereby. All bonds issued under the provisions of this section shall have like incidents and shall be payable from the same source or sources and the payment thereof shall be secured in like manner as are bonds issued pursuant to the authority granted in Section 21-27-23. In lieu of selling such portion of such consolidated bonds, as may be required to provide for the redemption of such outstanding bonds, such consolidated bonds may be issued and delivered in exchange for and upon surrender and cancellation of a like amount of the bonds to be refunded thereby.

SECTION 57. Section 21-27-53, Mississippi Code of 1972, is brought forward as follows:

21-27-53. The holder of any bond or any interest coupon issued pursuant to the authority granted in Sections 21-27-23 and 21-27-51 may, by suit, action, mandamus or other proceedings at law or in equity, enforce and compel performance by the appropriate official or officials of the municipality of any or all acts and duties to be performed by such municipality under the provisions of Sections 21-27-11 through 21-27-69 and the ordinance authorizing the issuance of such bond or interest coupon. If there be any default in the payment of the interest on and principal of any of said bonds, any court having jurisdiction in the proper action may, upon petition of the holder of any of such bonds, appoint a receiver to administer and operate the system with power to fix rates and collect charges sufficient to provide for the payment of all bonds outstanding to the payment of which the revenues of such system are pledged and to pay the expenses of operating and maintaining such system and to apply the revenues of such system, all in conformity with the provisions of Sections 21-27-11 through 21-27-69 and of the ordinance authorizing the issuance of such bonds.

SECTION 58. Section 21-27-55, Mississippi Code of 1972, is brought forward as follows:

21-27-55. The governing authorities of any municipality authorizing revenue bonds pursuant to the authority granted in Sections 21-27-23 and 21-27-51, may make provisions for any of such revenue bonds to be called for payment at any interest payment date before maturity, provided the municipality shall have on hand in its bond and interest fund sufficient moneys, not otherwise appropriated or pledged, in excess of the interest and principal requirements within the next two (2) succeeding calendar, operating or fiscal years.

SECTION 59. Section 21-27-59, Mississippi Code of 1972, is brought forward as follows:

21-27-59. Nothing in Sections 21-27-11 through 21-27-69 shall be construed to prohibit the municipality from appropriating and using any part of its available income or revenues derived from any source other than from the operation of such system or combined system in paying any immediate expenses of operation and/or maintenance of any such system or combined system. Nothing in Sections 21-27-11 through 21-27-69 shall be construed, however, to require the municipality to do so.

SECTION 60. Section 21-27-61, Mississippi Code of 1972, is brought forward as follows:

21-27-61. The governing authorities of any municipality shall devote all monies of the system derived from any source other than the issuance of bonds for purposes authorized by the laws of the State of Mississippi, to or for the payment of all operating expenses, including such items as are normally required of utilities for sales development; to or for the payment of all bonds and interest on outstanding revenue bonds, if any, of such system; to or for the acquisition and improvement of the system contingencies; to or for the payment of all other obligations incurred in the operation and maintenance of the system and the furnishing of service; and to or for the creation and maintenance of a cash working fund or a surplus fund to be used for replacement, extension of systems and emergencies. The balance of any monies, including but not limited to, any which have heretofore been classified as revenues or surplus of such system, if any, may be used for any lawful, municipal purpose and may be paid to the governing authorities of the municipality for distribution to the various municipal funds or may be disbursed for such purpose by the governing authorities at their direction. The purpose of any allocation or expenditure of money made pursuant to this section shall be spread upon the minutes of the municipal governing authorities.

SECTION 61. Section 21-27-63, Mississippi Code of 1972, is brought forward as follows:

21-27-63. Nothing in Sections 21-27-11 through 21-27-69 shall be construed as authorizing any municipality to impair or commit a breach of the obligation of any valid lien or contract created or entered into by it, the intention hereof being to authorize the pledging, setting aside and segregation of gross revenue only where consistent with outstanding obligations of such municipality.

SECTION 62. Section 21-27-65, Mississippi Code of 1972, is brought forward as follows:

21-27-65. If, after the governing authorities of any municipality have issued revenue bonds pursuant to the authority granted in Sections 21-27-23 and 21-27-51, said governing authorities fail or refuse to carry out their duties with reference to setting aside the trust funds, said officers shall be guilty of a misdemeanor and, upon trial and conviction, shall be removed from office.

SECTION 63. Section 21-27-67, Mississippi Code of 1972, is brought forward as follows:

21-27-67. Sections 21-27-11 through 21-27-69, being necessary for and to secure the public health, safety, convenience and welfare of the municipalities of the State of Mississippi, shall be liberally construed to effect the purposes hereof.

The powers conferred by Sections 21-27-11 through 21-27-69 shall be in addition to the powers conferred by any other law, general, special or local, and such sections shall, without reference to any other statute or to any charter, be deemed full authority to purchase or improve and to own and operate the authorized revenue producing systems, to fix, maintain, and to collect rates for the facilities afforded by such systems, to issue and to sell the authorized bonds, and shall be construed as an additional and alternative method therefor, any provisions of the general laws of the state or of any charter to the contrary notwithstanding.

SECTION 64. Section 21-27-69, Mississippi Code of 1972, is brought forward as follows:

21-27-69. The repeal heretofore of any law authorizing a municipality to borrow money and issue bonds to acquire or improve any system shall not affect the validity of any bonds issued or contracts entered into under the provisions of any such repealed laws.

SECTION 65. Section 21-27-71, Mississippi Code of 1972, is brought forward as follows:

21-27-71. Whenever the governing authorities of any municipality of more than one hundred thousand (100,000) population shall determine to issue bonds under the provisions of Sections 21-27-11 to 21-27-69, to acquire or improve a system, it shall cause an estimate to be made of the cost of such system or improvement, and the fact that such estimate has been made shall appear in the ordinance authorizing the issuance of such bonds, which ordinance shall set forth a brief description in general terms of the contemplated system or improvement, the estimated life thereof, the said estimated cost thereof, the amount, date, denominations, rate of interest, times and places of payment and other details in connection with the issuance of the bonds, and such covenants and restrictions as may be necessary or desirable to safeguard the interests of the holders of the bonds. Such bonds may be serial or term; redeemable, with or without premium, or nonredeemable; registered or coupon bonds with registration privileges as to either principal and interest, principal only or both. They shall bear interest at a rate to be determined pursuant to the sale of the bonds, and shall be payable at such time or times as shall be prescribed in the ordinance authorizing them. They shall mature at such time or times, not exceeding the said estimated life of the contemplated system or improvement, and in no event exceeding thirty (30) years from their date, and at such place or places as shall be prescribed in the ordinance authorizing their issuance; provided, however, that any bond issue to be awarded and sold to the United States of America or any agency thereof shall mature at such time or times, not to exceed thirty-five (35) years, as shall be prescribed in the ordinance authorizing their issuance. Any provisions of the general laws to the contrary notwithstanding, any bonds and interest coupons issued pursuant to the authority of this section shall possess all the qualities of negotiable instruments. The bonds and the interest coupons shall be executed in such manner and shall be substantially in the form prescribed in the authorizing ordinance. In case any of the officers whose signatures or countersignatures appear on the bonds or interest coupons shall cease to be such officers before delivery of such bonds, such signatures or countersignatures shall nevertheless be valid and sufficient for all purposes the same as if they had remained in office until such delivery. No bond shall bear more than one (1) rate of interest. Each bond shall bear interest from its date to its stated maturity date at the interest rate specified in the bid. All bonds of the same maturity shall bear the same rate of interest from date to maturity. All interest accruing on such bonds so issued shall be payable semiannually or annually, except that the first interest coupon attached to any such bond may be for any period not exceeding one (1) year.

No interest payment shall be evidenced by more than one (1) coupon and neither cancelled nor supplemental coupons shall be permitted. The lowest interest rate specified for any bonds issued shall not be less than seventy percent (70%) of the highest interest rate specified for the same bond issue. Such bonds shall be sold in such manner and upon such terms as the governing authorities of the municipality shall determine, provided that such bonds shall not bear a greater overall maximum interest rate to maturity than that allowed in Section 75-17-103, Mississippi Code of 1972, and the interest rate on any one (1) interest maturity shall not exceed the maximum interest rate allowed on such bonds. If serial bonds, such bonds shall mature annually, and the first maturity date thereof shall not be more than five (5) years from the date of such bonds. Such bonds shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi. The bonds and interest coupons shall be exempt from all state, county, municipal and other taxation under the laws of the State of Mississippi. The principal of and interest upon such bonds shall be payable solely from the revenues derived from the operation of the system acquired or improved with proceeds of the sale of such bonds. No bond issued pursuant to this section shall constitute an indebtedness of a municipality within the meaning of any statutory or charter restriction, limitation or provision. It shall be plainly stated on the face of each such bond in substance that the same bond has been issued under the provisions of this section and that the taxing power of the municipality issuing the same is not pledged to the payment of such bond or interest thereon, and that such bond and the interest thereon are payable solely from the revenues of the system to acquire or improve which such bond is issued.

Such bonds shall be sold on sealed bids at public sale in the manner provided by Section 31-19-25. In the event the issuing municipality shall have received a commitment from any agency of the United States of America for the purchase of all or any portion of an issue of such bonds prior to the sale thereof or for financial assistance in providing debt service on such bonds, then, and in such event, said issue or any part thereof may be sold to the United States of America or any agency thereof at private sale. Bonds in the aggregate amount of Two Hundred Thousand Dollars ($200,000.00) for any project may be sold at private sale either to underwriters or investors.

Before a person can qualify as a fiscal advisor under the terms of this section, he shall have been actively engaged in the banking business, or the business of fiscal counseling for municipalities, or the underwriting of municipal bonds, for a period of five (5) years prior to qualifying under this section. A partnership or corporation may become a fiscal advisor hereunder with the same qualifications. Such person, corporation, or partnership shall have had prior experience as a fiscal advisor or been involved in the underwriting or investing in bonds of the State of Mississippi, or one or more of the subdivisions thereof, and such person, partnership or corporation shall be recognized in the fiscal community as a reputable and qualified fiscal advisor.

SECTION 66. Section 21-27-73, Mississippi Code of 1972, is brought forward as follows:

21-27-73. The governing authority of any municipality that owns and operates a gas distribution system, as defined in Section 21-27-11(b), and the governing authority of any public natural gas district are authorized to contract for the purchase of the supply of natural gas for a term of up to ten (10) years with any public nonprofit corporation which is organized under the laws of this state or any other state.

SECTION 67. Section 21-27-75, Mississippi Code of 1972, is brought forward as follows:

21-27-75. (1) The governing authorities of a municipality are authorized and empowered, in their discretion, to enter into an interlocal agreement with a rural water association operating within the corporate limits of the municipality that requires the association to terminate the water service of any of its customers who are thirty (30) days or more delinquent in the payment of charges for sewer services provided by the municipality.

(2) Any agreement entered into under this section shall at a minimum:

(a) Require the municipality to notify the association of any customer of the association who also has sewer service provided by the municipality who is thirty (30) days or more delinquent in the payment of sewer charges by a method agreeable to the municipality and the association;

(b) Provide that upon receipt of a notification the association shall terminate the water service of the named customer;

(c) Provide that upon satisfaction of the delinquency and any fees connected with the delinquency and the termination of water service, the association shall restart the water service of the customer;

(d) Provide that the municipality shall save and hold harmless the association against any and all claims based on the disconnection of water or sewer service and any other damages resulting from any action taken by the association under an interlocal agreement entered into under this section.

(3) Upon entering into an interlocal agreement under this section, the association is authorized to terminate the water service of any customer delinquent in the payment of sewer charges to the municipality pursuant to the terms of the interlocal agreement.

SECTION 68. Section 21-33-45, Mississippi Code of 1972, is brought forward as follows:

21-33-45. The governing authorities of each municipality of this state shall, either at their regular meeting in September of each year or not later than ten (10) days after the final approval of the assessment rolls, levy the municipal ad valorem taxes for the fiscal year next succeeding, and shall, by resolution, fix the tax rate or levy for the municipality and for any other taxing districts of which the municipality may be a part. The rates or levies for the municipality or for any such taxing district shall be expressed in mills or a decimal fraction of a mill, which tax rates, or levies, shall determine the ad valorem taxes to be collected upon each dollar of valuation upon the assessment rolls of the municipality for municipal taxes, and to be collected upon each dollar of valuation as shown upon the assessment rolls of the municipality for each such taxing district, except as to such values as may be exempt, in whole or in part, from certain tax rates or levies. If the rates or levies for the municipality or taxing district are an increase from the previous fiscal year, then the proposed rate or levy increase shall be advertised in accordance with Section 27-39-203.

In making the levy of taxes, the governing authorities shall specify in such resolution the levy for each purpose as follows:

(a) For general revenue purposes and for general improvements, as authorized by Section 27-39-307.

(b) For school purposes, including all maintenance levies, whether made against the property within such municipality, or within any taxing district embraced in such municipality, as authorized by Section 27-39-307 and Section 37-57-3 et seq.

(c) For municipal bonds and interest thereon, for school bonds and interest thereon, separately for municipal-wide bonds and for the bonds of each school district.

(d) For municipal-wide bonds and interest thereon, other than for school bonds.

(e) For loans, notes or any other obligation, and the interest thereon, if permitted by law.

(f) For special improvement or special benefit levies, as now authorized by law.

(g) For any other purpose for which a levy is lawfully made. If any municipal-wide levy is made for any general or special purpose under the provisions of any law other than Section 27-39-307 each such levy shall be separately stated in the resolution, and the law authorizing same shall be expressly stated therein.

If the governing authorities of any municipality shall not levy the municipal taxes and the district taxes at its regular September meeting, such governing authorities shall levy the same at an adjourned or special meeting not later than ten (10) days after the final approval of the assessment rolls. However, that if such levy be not made on or before September 15 then road and bridge privilege tax license plates may be issued by the tax collector or Department of Revenue, as the case may be, for motor vehicles as defined in the Motor Vehicle Ad Valorem Tax Law of 1958 (Section 27-51-1 et seq.), without collecting or requiring proof of payment of municipal ad valorem taxes until such levy is duly certified to him, and for twenty-four (24) hours thereafter.

In the case of a municipality operating under a special or private charter providing for or authorizing the assessment, levying and collection of ad valorem taxes prior to October in each year, ad valorem taxes for such municipality shall be levied at the time prescribed or authorized by such special or private charter, unless the governing authority of such municipality by resolution adopted and spread of record in its minutes elect to levy ad valorem taxes at the time prescribed hereinbefore in this section. In any event, however, all ad valorem taxes levied by any municipality in this state, shall be levied in the manner required herein regardless of the time when such taxes are levied.

SECTION 69. Section 27-39-307, Mississippi Code of 1972, is brought forward as follows:

27-39-307. Municipalities may levy ad valorem taxes upon all taxable property within such municipality for general revenue purposes and for general improvements. Further, the governing authorities of any municipality may make additional levies for special purposes as authorized by law. Any such levy which is an increase from the previous fiscal year must be advertised in accordance with Sections 27-39-203 and 27-39-205. In addition to funding municipal general purposes, the municipal general ad valorem tax levy may be used to supplement any municipal ad valorem tax levy for a special purpose authorized by law, excluding levies for schools, without regard to any statutory millage limitation on such special purpose tax levy; however, nothing herein contained shall be construed to exempt such tax levies from the limitation on total receipts under Section 27-39-321.

SECTION 70. This act shall take effect and be in force from and after its passage and shall stand repealed on the day before its passage.

Further, amend by striking the title in its entirety and inserting in lieu thereof the following:

AN ACT TO CREATE THE METRO JACKSON WATER AUTHORITY ACT; TO DEFINE CERTAIN TERMS RELATING TO THIS ACT; TO ESTABLISH THE METRO JACKSON WATER AUTHORITY; TO PROVIDE FOR THE COMPOSITION AND TERMS OF THE BOARD OF DIRECTORS OF THE METRO JACKSON WATER AUTHORITY; TO REQUIRE THE AUTHORITY TO NEGOTIATE WITH THE CITY OF JACKSON TO ENTER INTO AN AGREEMENT FOR THE TRANSFER OF THE WATER SYSTEM BY LEASE TO THE AUTHORITY; TO PROVIDE FOR THE APPOINTMENT OF A PRESIDENT OF THE AUTHORITY WITHIN A CERTAIN TIME PERIOD; TO PROVIDE POWERS AND DUTIES OF THE AUTHORITY; TO REQUIRE THE PRESIDENT OF THE AUTHORITY TO SUPERVISE ALL ADMINISTRATIVE AND TECHNICAL ACTIVITIES AS PROVIDED IN THIS ACT; TO PROVIDE THAT EMPLOYEES OF THE AUTHORITY SERVE AT THE WILL AND PLEASURE OF THE PRESIDENT; TO REQUIRE THE AUTHORITY TO ENTER INTO CONTRACTS FOR MAJOR PROCUREMENTS ONLY AFTER A COMPETITIVE AND OPEN PROCUREMENT PROCESS; TO REQUIRE THAT MONIES RECEIVED BE DEPOSITED INTO CERTAIN OPERATING ACCOUNTS; TO PROVIDE THAT DIVISION HEADS, OFFICERS AND EMPLOYEES OF THE AUTHORITY ARE PUBLIC SERVANTS; TO AUTHORIZE ANY PUBLIC AGENCY TO ENTER INTO CERTAIN CONTRACTS WITH THE AUTHORITY; TO PROVIDE CERTAIN PROVISIONS RELATING TO PUBLIC CONVENIENCE AND NECESSITY; TO AUTHORIZE THE AUTHORITY TO BORROW MONEY AND ISSUE BONDS AND INTERIM NOTES; TO AUTHORIZE THE AUTHORITY TO PROVIDE FOR THE APPOINTMENT OF A TRUSTEE TO REPRESENT THE REGISTERED OWNERS OF ANY ISSUE OF BONDS IN THE ENFORCEMENT OR PROTECTION OF THEIR RIGHTS UNDER ANY SUCH RESOLUTION, TRUST INDENTURE OR SECURITY INSTRUMENT; TO PROVIDE THAT THE AUTHORITY IS NOT REQUIRED TO PAY ANY TAX OR ASSESSMENT ON ANY PROPERTY OWNED BY THE AUTHORITY OR UPON ANY INCOME THEREFROM; TO PROVIDE THAT THE STATE, COUNTY, MUNICIPALITIES OR PUBLIC AGENCIES WITHIN THE GEOGRAPHIC BOUNDARIES OF THE AUTHORITY ARE AUTHORIZED TO ADVANCE SUCH FUNDS WHICH IN THEIR DISCRETION ARE NECESSARY, OR BORROW SUCH FUNDS BY ISSUANCE OF NOTES, FOR INITIAL CAPITAL CONTRIBUTION, AND TO COVER START-UP COSTS UNTIL SUCH TIMES AS SUFFICIENT BONDS, ASSETS AND REVENUES HAVE BEEN SECURED TO SATISFY THE NEEDS OF THE AUTHORITY FOR ITS MANAGEMENT, OPERATION AND FORMATION; TO AMEND SECTION 21-19-1, MISSISSIPPI CODE OF 1972, TO AUTHORIZE CERTAIN MUNICIPAL GOVERNING AUTHORITIES TO DEDICATE A PORTION OF THE RATES, FEES AND CHARGES FOR COLLECTING AND DISPOSING OF GARBAGE TO THE PAYMENT OF PRINCIPAL OF AND INTEREST ON BONDS OR NOTES ISSUED BY A PUBLIC AUTHORITY; TO AMEND SECTION 21-19-2, MISSISSIPPI CODE OF 1972, TO AUTHORIZE A MUNICIPAL GOVERNING AUTHORITY TO ENTER INTO CERTAIN CONTRACTS UPON MUTUAL AGREEMENT WITH CERTAIN COUNTIES; TO BRING FORWARD SECTION 27-65-241, MISSISSIPPI CODE OF 1972, WHICH RELATES TO SPECIAL SALES TAXES FOR MUNICIPALITIES, FOR PURPOSES OF POSSIBLE AMENDMENT; TO AMEND SECTION 21-27-57, MISSISSIPPI CODE OF 1972, TO UPDATE LANGUAGE IN THE SECTION; TO BRING FORWARD SECTIONS 21-27-11, 21-27-13, 21-27-15, 21-27-17, 21-27-19, 21-27-21, 21-27-23, 21-27-25, 21-27-27, 21-27-29, 21-27-31, 21-27-33, 21-27-35, 21-27-37, 21-27-39, 21-27-40, 21-27-41, 21-27-43, 21-27-45, 21-27-47, 21-27-49, 21-27-51, 21-27-53, 21-27-55, 21-27-59, 21-27-61, 21-27-63, 21-27-65, 21-27-67, 21-27-69, 21-27-71, 21-27-73 AND 21-27-75, MISSISSIPPI CODE OF 1972, WHICH RELATE TO MUNICIPALLY OWNED UTILITIES, FOR PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTIONS 21-33-45 AND 27-39-307, MISSISSIPPI CODE OF 1972, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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Bill Amendment: MS HB1677 | 2026 | Regular Session

Mississippi House Bill 1677

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