Bill Text: MS SB2829 | 2015 | Regular Session | Introduced
Bill Title: Attala County; may issue bonds to pay for certain costs associated with Montfort Jones Memorial Hospital.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2015-04-01 - Died In Committee [SB2829 Detail]
Download: Mississippi-2015-SB2829-Introduced.html
MISSISSIPPI LEGISLATURE
2015 Regular Session
To: Local and Private; Finance
By: Senator(s) Chassaniol
Senate Bill 2829
AN ACT TO AUTHORIZE ATTALA COUNTY, MISSISSIPPI, TO ISSUE GENERAL OBLIGATION BONDS OF THE COUNTY IN AN AMOUNT NOT TO EXCEED $5,000,000.00 TO PROVIDE FUNDS TO PAY CERTAIN COSTS AND OBLIGATIONS INCURRED BY THE COUNTY ON BEHALF OF MONTFORT JONES MEMORIAL HOSPITAL OR CERTAIN COSTS AND OBLIGATION INCURRED BY MONTFORT JONES MEMORIAL HOSPITAL; TO AUTHORIZE THE BOARD OF SUPERVISORS OF ATTALA COUNTY TO SELL OR LEASE THE HOSPITAL; TO AUTHORIZE THE BOARD OF TRUSTEES OF THE MONTFORT JONES MEMORIAL HOSPITAL TO PETITION FOR RELIEF FROM DEBTS AND FINANCIAL OBLIGATION OF THE HOSPITAL UNDER CHAPTER 9 OF TITLE 11, UNITED STATES CODE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Definitions. As used in this act:
(a) "Board of trustees" means the board appointed pursuant to Section 41-13-29, Mississippi Code of 1972, to operate the hospital.
(b) "Bonds" means bonds, notes and/or other evidences of indebtedness issued by the county pursuant to this act.
(c) "County" means Attala County, Mississippi, a political subdivision organized and validly existing under the Constitution and laws of the State of Mississippi.
(d) "Hospital" means Montfort Jones Memorial Hospital, a community hospital owned by the county, which is organized and validly existing under the Constitution and laws of the State of Mississippi.
(e) "Project" means the payment of costs incurred by the county or the hospital in connection with the sale or lease of the hospital, and/or paying obligations or defraying or paying the expenses incurred by either the county, on behalf of the hospital, or the hospital, including, but not limited to, paying the current or past expenses incurred for the operation and/or financing of the hospital and paying for the costs of borrowing; and for other authorized purposes under Section 31-25-26 et seq., Section 31-15-1 et seq., Section 41-13-10 et seq. and/or Section 19-9-1 et seq., Mississippi Code of 1972.
SECTION 2. Terms and conditions for issuance of bonds; election. (1) The county is authorized and empowered to issue and sell bonds for the purpose of providing funds to provide for the project. The bonds issued under this act shall not be issued in an amount which will exceed the twenty percent (20%) limitation on indebtedness imposed by Section 19-9-5, Mississippi Code of 1972. The bonds issued by the county under this act shall be issued as general obligation bonds of the county payable as to principal and interest out of and secured by an irrevocable pledge of the avails of a direct and continuing tax to be levied annually without limitation as to time, rate or amount upon all taxable property within the geographical limits of the county. The bonds issued under this act and the income therefrom shall be exempt from all income taxation in the state.
(2) Before issuing any bonds under this act, the board of supervisors of the county shall adopt a resolution declaring its intention to issue the bonds, stating the amount and purposes thereof, and fixing the date upon which further action will be taken to provide for the issuance of the bonds. The full text of the resolution shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper published in the county, or if none be published, in a newspaper having a general circulation in the county. The first publication of the notice shall be made not less than twenty-one (21) days prior to the date fixed in the resolution, and the last publication shall be made not more than seven (7) days prior to such date. If, on or prior to the date fixed in the resolution, there shall be filed with the clerk of the board of supervisors of the county a written petition signed by twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified voters of the county, requesting that an election be called and held on the question of the issuance of the bonds, then it shall be the duty of the board of supervisors of the county to call and provide for the holding of an election on the question of the issuance of the bonds. In such case no bonds secured by a pledge of the full faith, credit and resources of the county shall be issued under this act unless authorized by the affirmative vote of a majority of the qualified voters of such county who vote on the proposition at the election. Notice of the election shall be given by publication in the same manner as provided for the publication of the initial resolution. The election shall be conducted and the return made, canvassed and declared as nearly as may be in the same manner as is provided by law in the case of general elections in the county.
(3) In the discretion of the board of supervisors of the county, and after adoption of a resolution declaring its intention to issue bonds under this act secured by a pledge of the full faith, credit and resources of the county, an election on the question of the issuance of the bonds may be called and held as provided in subsection (2) of this section without the necessity of publishing the resolution and whether or not a protest to the issuance has been filed with the clerk of the board of supervisors. In the event that the question of the issuance of bonds under this act secured by a pledge of the full faith, credit and resources of the county is not authorized at the election, the question shall not again be submitted to a vote until the expiration of a period of six (6) months from and after the date of such election.
(4) The total amount of bonds issued under this act shall not exceed Five Million Dollars ($5,000,000.00).
(5) The principal of and interest on the bonds authorized under this act shall be payable in the manner provided in this section. The bonds shall bear such date or dates, be in such denomination or denominations, bear interest at such rate or rates (not to exceed the limits section forth in Section 75-17-101, Mississippi Code of 1972), be payable at such place or places within or without the State of Mississippi, shall mature absolutely at such time or times not to exceed thirty (30) years from date of issue, be redeemable before maturity at such time or times and upon such terms, with or without premium, shall bear such registration privileges, and shall be substantially in such form, all as shall be determined by the board of supervisors of the county by resolution.
(6) 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 by resolution; all bonds of the same maturity shall bear the same rate of interest from date to maturity; all interest accruing on the bonds so issued shall be payable as provided by resolution of the board of supervisors of the county. The denomination, form, place or places, of payment of such bonds shall be fixed in the resolution or order of the board of supervisors of the county.
(7) The bonds may be sold at public or private sale at such time or times and at such price or prices as the county shall determine.
(8) The bonds may be issued as provided in the Registered Bond Act of the State of Mississippi.
(9) All bonds and interest coupons issued under the provisions of this act have all the qualities and incidents of negotiable instruments under the provisions of the Uniform Commercial Code, and in exercising the powers granted by this section, the county shall not be required to and need not comply with the provisions of the Uniform Commercial Code.
(10) The authority for the county to issue bonds under this act shall be in addition to any other borrowing authority which the county has under state law. Bonds of the county issued under this act may be validated in accordance with the provision of Sections 31-13-1 through 31-13-11, Mississippi Code of 1972.
SECTION 3. Sale or lease of hospital. (1) The board of supervisors of the county is authorized, in its discretion, to sell or to lease (which lease may include a purchase option) the building, assets and real estate comprising the campus and facility known as Montfort Jones Memorial Hospital, which is county-owned property, without the necessity of complying with the requirements of Section 41-13-15, Mississippi Code of 1972. However, the board of supervisors shall comply with the requirements of this section.
(2) The county contracted with a national certified public accounting firm to perform this study and the study, dated April 7, 2014, concluded that the county should consider a sale or lease of its hospital operations. Additionally, the county has contracted with a national certified public accounting firm to provide an audit for the hospital for the year that ended September 30, 2014, and the period ending as of the lease or sale date. If the county chooses to sell or lease the hospital (with or without a purchase option under a lease), it shall first spread upon its minutes why such a lease or sale is in the best interests of the persons living in the area served by the facility, and it shall make public any and all findings and recommendations made in the review. The county may then proceed with the sale or lease of the hospital for such consideration, and under such other terms and conditions, as are acceptable to the county. The term of any lease under this section shall not exceed fifty (50) years.
SECTION 4. Petition for relief from debts. The board of trustees of the hospital is authorized, in its discretion, to petition for the relief from debts and financial obligations of the hospital under Chapter 9 of Title 11, United States Code, as amended, and to take any actions that the board of trustees of the hospital determines may be necessary for such purpose.
SECTION 5. Act provisions as cumulative. This act shall not be construed as a restriction or limitation upon any powers which the county or hospital might otherwise have under any laws of this state, and this act is cumulative to any such powers. This act does and shall be construed to provide complete additional and alternative method for the doing of the things authorized in it and shall be regarded as supplemental and additional to powers conferred by other laws. No proceedings, notice or approval shall be required for the issuance of any bonds under this act or any instrument as security therefor, except as provided in this act. No proceedings, notice or approval shall be required for the sale or lease of the hospital pursuant to this act, except as in this act.
SECTION 6. Savings clause. If any section, subsection, paragraph, sentence, clause or provision of this act shall be unconstitutional or ineffective, in whole or in part, to the extent that it is not unconstitutional or ineffective, it shall be valid and effective and no other section, subdivision, paragraph, sentence, clause or provision shall on account thereof be deemed invalid or ineffective.
SECTION 7. This act shall take effect and be in force from and after its passage.
