Pending

AMENDMENT NO 1 PROPOSED TO

Senate Bill No. 2628

BY: Senator(s) Parker

Amend by striking all after the enacting clause and inserting

in lieu thereof the following:

9 SECTION 1. This chapter shall be known and may be cited as

10 the "Mississippi Capitol Region Utility Act."

11 SECTION 2. (1) The Mississippi Legislature finds the

12 following:

13 (a) For the benefit of the citizens centrally located

14 in the State of Mississippi, including citizens residing or

15 working in the capital city of the State of Mississippi, it is

16 essential to have access to safe, clean and reliable water and

17 wastewater systems at affordable, regulated rates which are just,

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18 reasonable and provide an adequate amount of capital to keep such

19 systems in good repair;

20 (b) The availability of safe, clean and reliable water

21 and wastewater systems has vast impacts on health, schools and

22 academic outcomes, crime and safety, state and local government

23 operations, businesses and economic development, the availability

24 of a workforce, tourism and many other critical areas;

25 (c) The availability of safe, clean and reliable water

26 and wastewater systems requires significant financial resources

27 and human capital to engage in the planning, acquisition,

28 construction, maintenance, coordination and operation required to

29 deliver transparent and efficient services which meet and exceed

30 federal and state regulations and requirements;

31 (d) On November 29, 2022, the Department of Justice

32 filed a complaint alleging that the City of Jackson has failed to

33 provide drinking water that is reliably compliant with the Safe

34 Drinking Water Act to citizens within the boundaries of the water

35 system. The Department of Justice simultaneously filed a proposal

36 which would appoint a receiver, or an interim third-party manager,

37 to stabilize the City of Jackson's public drinking water system

38 and build confidence in the water system's ability to supply safe,

39 clean and reliable water to citizens within the boundaries of the

40 water system. The U.S. District Court for the Southern District

41 of Mississippi appointed a receiver to oversee and operate the

42 water system on November 29, 2022;

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43 (e) On or about July 31, 2023, the U.S. District Court

44 for the Southern District of Mississippi brought the City of

45 Jackson's sewer and wastewater systems into the receivership;

46 (f) The order appointing a receiver does not have a

47 termination date and ends only when final judgment is entered by

48 the court. Before the court enters final judgment, the system

49 must be stable, the financial plan sustainable, and the transition

50 plan approved in order to transition the system to

51 post-receivership operations;

52 (g) The creation and organization of a structure for

53 future governance requires legislation for it to continue in

54 perpetuity beyond the eventual end of the receiver's work and

55 related federal court orders; and

56 (h) The creation and organization of a structure for

57 future governance prior to the date of the conclusion of the

58 receiver's work will allow for an orderly transition to ensure

59 minimal disruption in water and wastewater service.

60 (2) Therefore, it is the intent of the Mississippi

61 Legislature to:

62 (a) Provide the Mississippi Capitol Region Utility

63 Authority the option to purchase the existing water and wastewater

64 assets from the City of Jackson at fair market value as determined

65 by the court, provided all existing system debts have been retired

66 or paid. Upon completion of the purchase of assets, the water and

67 wastewater assets shall be transferred to the utility authority's

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68 ownership, management and control to ensure all citizens have

69 access to safe, clean and reliable water and wastewater systems at

70 affordable, just and reasonable regulated rates, and to provide an

71 adequate amount of capital to keep such systems in good repair;

72 (b) Authorize the Local Governments and Rural Water

73 Systems Improvement Board created in Section 41-3-16 to loan to

74 the authority funds required to purchase water assets as provided

75 in this subsection (2) at an interest rate of zero percent (0%)

76 with a forty-year term applying the maximum principal forgiveness

77 available;

78 (c) Authorize the Mississippi Commission on

79 Environmental Quality to loan to the authority funds requested to

80 purchase wastewater assets as authorized in this subsection (2) at

81 an interest rate of zero percent (0%) with a forty-year term

82 applying the maximum principal forgiveness available, provided all

83 requirements to be eligible for the loan are met by the authority

84 and the transaction meets the requirements of federal law; and

85 (d) Partner with the Department of Health, the

86 Department of Environmental Quality, the City of Jackson and other

87 municipalities or governmental entities within the boundaries of

88 the authority, and any other federal state or local entity in

89 taking any action necessary under this chapter to ensure all

90 citizens have access to safe, clean and reliable water and

91 wastewater systems, with the understanding that federal and state

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92 agencies are solely responsible for regulating, but not operating,

93 the utility authority.

94 SECTION 3. As used in this chapter, the following words and

95 phrases have the meanings ascribed herein, unless the context

96 clearly indicates otherwise:

97 (a) "Board" means the Board of Directors of the

98 Mississippi Capitol Region Utility Authority.

99 (b) "Bonds" means revenue bonds and other certificates

100 of indebtedness of the authority issued under the provisions of

101 this chapter.

102 (c) "Court" means the U.S. District Court for the

103 Southern District of Mississippi and the receiver, as defined

104 herein.

105 (d) "Fiscal year" means the period of time beginning on

106 July 1 of each year and ending on June 30 of each year.

107 (e) "Major procurement" means the procurement of any

108 good or service in excess of One Million Dollars ($1,000,000.00).

109 (f) "Project" means the construction, development or

110 acquisition by the utility authority of any infrastructure for

111 water and wastewater systems or services and includes the

112 upgrading or repair of existing systems.

113 (g) "Public agency" means any county, municipality,

114 state board or utility authority owning or operating properties,

115 districts created pursuant to the general laws or local and

116 private laws of the State of Mississippi, or any other political

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117 subdivision of the State of Mississippi possessing the power to

118 own and operate waterworks, water supply systems, sewerage

119 systems, sewage treatment systems or other facilities or systems

120 for the collection, transportation and treatment of water and

121 wastewater.

122 (h) "Receiver" means the interim third-party manager

123 for the water system owned by the City of Jackson who was

124 appointed by the U.S. District Court for the Southern District of

125 Mississippi on November 29, 2022, to oversee and operate the

126 systems until the court issues final judgment.

127 (i) "Service territory" or "service area" means the

128 geographic areas receiving water and wastewater services from the

129 City of Jackson's water and wastewater systems as operated by JXN

130 Water as of July 1, 2024.

131 (j) "System" or "systems" means any plants, structures,

132 facilities or other real or personal property used or useful in

133 the generation, storage, transportation or supply of water, and

134 the collection, transportation, treatment or disposal of

135 wastewater, including tanks, pipes, trunk lines, mains, sewers,

136 conduits, pipelines, pumping and ventilating stations, plants,

137 works, connections and any other real or personal property and

138 rights therein necessary, useful or convenient for the purposes of

139 the utility authority.

140 (k) "Utility authority" or "authority" means the

141 Mississippi Capitol Region Utility Authority.

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142 (l) "Wastewater" means water being disposed of by any

143 person and which is contaminated with waste or sewage, including

144 industrial, municipal, and any other wastewater that may cause

145 impairment of the quality of waters in the state.

146 (m) "Water" means potable water from either surface

147 water or groundwater sources.

148 SECTION 4. (1) There is hereby created and established a

149 corporate nonprofit known as the Mississippi Capitol Region

150 Utility Authority. The authority will be composed of geographic

151 areas receiving water and wastewater services from the City of

152 Jackson as of July 1, 2024, for the planning, acquisition,

153 construction, maintenance, operation and coordination of water and

154 wastewater systems in order to ensure the delivery of water and

155 wastewater services to citizens. Such authority is created solely

156 to accomplish the purposes of the state under this chapter, and

157 the exercise by the authority of the powers conferred by this

158 chapter shall be deemed and held to be the performance of an

159 essential public function promoting the health, welfare and

160 prosperity of the general public. It is the intent of the

161 Legislature that the authority shall be accountable to ratepayers

162 within the systems through the audits, reports and disclosures

163 required by this chapter.

164 (2) The existence of the corporate nonprofit authority,

165 which shall be domiciled in the State of Mississippi, shall begin

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166 upon the appointment of a majority of its board as provided in

167 Section 5 of this act.

168 (3) The authority shall assume ownership, management and

169 control over the water and wastewater systems on the date of

170 termination of the receiver by the U.S. District Court for the

171 Southern District of Mississippi, or an earlier date as ordered by

172 the court. If the termination date is not the same for all

173 systems, the authority shall assume ownership, management and

174 control over the system for which the receivership is terminated

175 on the termination date for that system.

176 (4) In the event of any action or matter challenging the

177 creation, establishment, or statutory responsibilities of the

178 authority, the Chief Justice of the Mississippi Supreme Court

179 shall select an appropriate circuit or chancery court, which shall

180 have exclusive jurisdiction over the matter. In any other matter,

181 the court of competent jurisdiction shall have jurisdiction over

182 the matter. For purposes of court costs, the authority shall be a
183 private corporation.

184 (5) All funds provided by the federal government in H.R.

185 2617, the Consolidated Appropriations Act of 2023, and any other

186 funds provided by the state or federal government in response to

187 the water crisis detailed by the U.S. District Court for the

188 Southern District of Mississippi in Case No. 3:22-cv-00686, United

189 States v. City of Jackson, shall be spent according to the

190 direction of the receiver and federal court within the service

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191 territory impacted by the water crisis and in accordance with

192 federal law.

193 SECTION 5. (1) The affairs of the utility authority shall

194 be administered by the board. The board shall be composed of nine

195 (9) members to be selected as follows:

196 (a) The Mayor of the City of Jackson shall appoint one

197 (1) member (Member 1), a member of the clergy leading a place of

198 worship within the service area;

199 (b) The City Council of the City of Jackson, by

200 majority vote, shall appoint two (2) members, including:

201 (i) Member 2, an employee of a local nonprofit

202 located within the service area; and

203 (ii) Member 3, an owner of a restaurant located

204 within the service area;

205 (c) The Governor shall appoint three (3) members,

206 including:

207 (i) Member 4, an employee of a large nonhealthcare

208 business with a minimum of two hundred (200) employees working in

209 facilities within the service area;

210 (ii) Member 5, a small business owner whose

211 primary business location is within the service area; and

212 (iii) Member 6, an at-large appointee who lives or

213 works in the service area;

214 (d) The Lieutenant Governor shall appoint three (3)

215 members, including:

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216 (i) Member 7, an employee of a large health care

217 facility within the service area;

218 (ii) Member 8, an employee of a post-secondary

219 institution within the service area; and

220 (iii) Member 9, an at-large appointee who lives or

221 works in the service area.

222 All members shall be appointed by September 1, 2024, and

223 shall be subject to the advice and consent of the Senate.

224 In the appointment process, appointing authorities shall

225 attempt to see that all portions of society and its diversity are

226 represented in members of the authority. All appointed members

227 must be residents of the State of Mississippi, must be ratepayers

228 within the system boundaries, and must have significant,

229 demonstrated experience in business management, fiscal affairs,

230 public health or public utilities. No current or former federal,

231 state or local elected officials may be appointed.

232 (2) Term lengths shall begin upon the date of termination of
233 the receiver by the U.S. District Court for the Southern District

234 of Mississippi or an earlier date as ordered by the court. Service

235 by members between September 1, 2024, and the date of termination

236 of the receiver shall not be counted in the term limits

237 established herein.

238 (3) The initial terms of the board shall be as follows:

239 Members 1 and 2 for a term of four (4) years, member 3 for a term
240 of three (3) years, member 4 for a term of two (2) years, member 5

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241 for a term of one (1) year, member 6 for a term of four (4) years,

242 member 7 for a term of three (3) years, member 8 for a term of two

243 (2) years, and member 9 for a term of one (1) year.

244 (4) Except as provided in subsection (2) of this section,

245 appointments shall be for a term of four (4) years. Each member

246 shall serve at the will and pleasure of his or her appointing

247 authority and hold office until his successor has been appointed

248 and qualified. Any member who changes residency outside of the

249 service area, ends employment in the service area or allows his or

250 her account to go into arrears shall be immediately discharged

251 from the board. Vacancies shall be filled by appointment by the

252 appropriate appointing authority, subject to the advice and

253 consent of the Senate, for the length of the unexpired term only.

254 Any member of the authority shall be eligible for reappointment

255 for a maximum of two (2) full terms. Each member of the authority

256 shall, before entering upon his duty, take an oath of office to

257 administer the duties of his office faithfully and impartially,

258 and a record of such oath shall be filed in the Office of the

259 Secretary of State. The authority shall annually elect from its

260 membership a chairman and vice chairman who shall be eligible for

261 reelection for up to four (4) consecutive terms. The authority

262 shall also elect or appoint, and prescribe the duties of, such

263 other officers, who need not be members, as the authority deems

264 necessary or advisable, and the authority shall fix the

265 compensation of such officers. The authority may delegate to one

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266 or more of its members, officers, employees or agents such powers

267 and duties as it may deem proper, not inconsistent with this

268 article or other provisions of law.

269 (5) The members of the board shall serve without salary but

270 shall be entitled to receive per diem pay as provided in Section

271 25-3-69, plus travel and necessary expenses, including mileage, as

272 provided in Section 25-3-41, incurred while in the performance of

273 his or her duties as a board member upon authorization by the

274 board. Expenses shall be paid from the available funds of the

275 authority after the authority assumes ownership, management and

276 control of the water, wastewater and storm systems as provided in

277 this chapter. Subject to appropriations, until the date the

278 authority assumes ownership, management and control of the water

279 and wastewater systems as provided in this chapter, expenses shall

280 be paid by the State of Mississippi.

281 (6) The board shall meet monthly, with four of these

282 meetings each year held in various locations throughout the

283 service area. All meeting agendas shall accommodate time for

284 public comment in accordance with rules established by the board.

285 (7) All meetings of the board shall be subject to the Open

286 Meetings Act in Section 25-41-1 et seq. The chairman or a

287 majority of members of the board may convene the board for a

288 meeting.

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289 (8) Except as may be provided by law, all records of the

290 authority shall be deemed public records and subject to public

291 inspection as provided by Section 25-61-1 et seq.

292 (9) The board may by majority vote excuse the absence of any

293 board member. If any board member is absent for two (2) board

294 meetings in a twelve-month period without such absences being

295 excused by the board, his or her membership on the board shall be

296 terminated as a function of law, without any action by the board,

297 and the removed board member shall be ineligible for reappointment

298 to the board. The original appointing authority shall retain the

299 right to appoint a new board member to replace the removed board

300 member.

301 (10) No current or former employee of the authority shall be

302 a board member.

303 (11) Until the utility authority assumes ownership,

304 management and control of the water and wastewater systems, the

305 board shall cooperate and coordinate with the receiver in order to
306 provide the best opportunity for minimal disruption in service and

307 maximum ease of transition after the receiver has concluded his

308 work in overseeing and operating the water system.

309 SECTION 6. (1) The utility authority shall consult with the

310 court in appointing a president by January 1, 2025, who shall

311 serve at the will and pleasure of the board. If the authority

312 does not have ownership, management and control of the water and
313 wastewater systems by the date of the appointment of a president,

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314 the State of Mississippi shall pay the salary of the president on

315 a bimonthly basis, subject to appropriations. The president shall

316 serve as deputy to the receiver until the court enters final

317 judgement, at which time the president shall manage the daily

318 affairs of the authority and shall have such powers and duties as

319 specified by this chapter, by the board, and any rules or

320 regulations adopted by the board. The president shall not be a

321 member of the board and shall serve at the will and pleasure of

322 the board.

323 (2) Until the authority assumes ownership, management and

324 control of the water and wastewater systems, the president shall

325 cooperate and coordinate with the receiver in order to provide the

326 best opportunity for minimal disruption in service and maximum

327 ease of transition after the receiver has concluded his work in

328 overseeing and operating the water system.

329 (3) The president shall employ such personnel as he or she

330 deems necessary. All personnel shall serve at the will and
331 pleasure of the president.

332 (4) The board shall set the salary of the president at such

333 level as necessary to recruit and retain a qualified professional

334 with the expertise necessary in a public utility. The board may

335 authorize whatsoever incentive compensation program for the

336 president and authority staff as it deems necessary and proper.

337 The authority shall be exempt from the provisions of Section

338 25-3-39.

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339 SECTION 7. (1) The utility authority shall have the power,

340 duty and responsibility to exercise general supervision over the

341 design, construction, operation and maintenance of water and

342 wastewater systems.

343 (2) The authority shall adopt rules and regulations

344 regarding the design, construction or installation, operation and

345 maintenance of water and wastewater systems.

346 (3) The authority shall adopt rules and regulations

347 regarding the use of decentralized treatment systems, individual

348 on-site wastewater treatment systems and centralized wastewater

349 treatment systems.

350 (4) The authority shall adopt rules establishing performance

351 standards for water and wastewater systems and the operation and

352 maintenance of the same. Such rules and regulations shall

353 include: the implementation of a standard application form for

354 the installation, operation and maintenance of such systems;

355 application review; approval or denial procedures for any proposed

356 system; inspection, monitoring and reporting guidelines; and

357 enforcement procedures.

358 (5) (a) Before a building or development which requires the

359 installation of a water or wastewater system is constructed, the

360 system must be submitted to the authority for certification that

361 the system complies with the authority's requirements.

362 (b) Before approving or renewing a permit for a water

363 or wastewater system within the authority, the state agency must

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364 require certification that the system complies with the

365 authority's requirements.

366 (6) Any system of any municipality, public agency or other

367 persons which contracts with the authority shall be subject to the

368 terms of that contract and the terms of this chapter.

369 (7) Notwithstanding the provisions of Section 51-39-1 et

370 seq., the authority shall have the full power to adopt rules and

371 regulations and to construct, maintain, lease and operate

372 facilities for the control of storm water quality and quantity.

373 In addition, the provisions of Section 51-33-1 et seq. relating to

374 drainage districts and flood control districts do not apply to the

375 authority.

376 (8) The authority may control and operate the local retail

377 water or wastewater services and may provide or be responsible for

378 direct servicing of those services to residences, businesses and

379 individuals; however, the authority shall not provide the same

380 service in an area provided by a public utility or person holding

381 a certificate of public convenience and necessity issued by the

382 Mississippi Public Service Commission for the provision of such

383 services in the certificated area.

384 (9) The authority shall enter into contracts for major

385 procurements after bidding. The authority may adopt

386 administrative rules and regulations pursuant to the provisions of

387 this chapter providing for special procedures whereby the

388 authority may make any class of procurement.

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389 (10) In its bidding processes, the authority may do its own

390 bidding and procurement or may utilize the services of the

391 Department of Finance and Administration, the Department of

392 Information Technology Services or other state agencies as

393 appropriate and necessary.

394 (11) In the City of Ridgeland, which is served by only the

395 wastewater system as of July 1, 2024, the authority shall have

396 oversight or control of only wastewater service provided to

397 ratepayers. To maintain consistency with the agreement in place

398 with the City of Jackson prior to the existence of the authority,

399 the City of Ridgeland shall have control over its rate structure,

400 with the City of Ridgeland compensating the authority for its

401 prorated share of wastewater conveyance, treatment, capital

402 improvements and debt service.

403 SECTION 8. (1) The utility authority, in addition to any

404 other powers granted under any other provision of law, is

405 authorized:
406 (a) To acquire, construct, improve, enlarge, extend,

407 repair, operate and maintain one or more of its systems used for

408 the collection, transportation, treatment and disposal of water

409 and wastewater;

410 (b) To make contracts with any person in furtherance

411 thereof, and to make contracts with any person, under the terms of

412 which the authority will collect, transport, treat or dispose of

413 water and wastewater for such person;

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414 (c) To make contracts with any person to design and

415 construct any water and wastewater systems or facilities, and

416 thereafter to purchase, lease or sell, by installments over such

417 terms as may be deemed desirable, reasonable and necessary, or

418 otherwise, any such system or systems;

419 (d) To enter into operating agreements with any person,

420 for such terms and upon such conditions as may be deemed

421 desirable, for the operation of any water and wastewater systems,

422 and to lease to or from any person, for such term and upon such

423 conditions as may be deemed desirable, any water and wastewater

424 collection, transportation, treatment or other facilities or

425 systems. Any such contract may contain provisions requiring any

426 public agency or other person to regulate the quality and strength

427 of materials to be handled by the respective system or systems and

428 also may provide that the authority shall have the right to use

429 any streets, alleys and public ways and places within the

430 jurisdiction of a public agency or other person during the term of

431 the contract;

432 (e) To enter into contracts with any person or public

433 agency, including, but not limited to, contracts authorized by

434 this chapter, in furtherance of any of the purposes authorized

435 under this chapter upon such consideration as the board and such

436 person may agree. Any such contract may extend over any period of

437 time, notwithstanding any provision or rule of law to the

438 contrary, may be upon such terms and for such consideration,

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439 nominal or otherwise, as the parties thereto shall agree, and may

440 provide that it shall continue in effect until bonds specified

441 therein, refunding bonds issued in lieu of such bonds, and all

442 other obligations specified therein are paid or terminated. Any

443 such contract shall be binding upon the parties thereto according

444 to its terms;

445 (f) To sue and be sued, in its own name, and to enjoy

446 all of the protections, immunities and benefits provided by the

447 Mississippi Tort Claims Act, Section 11-46-1 et seq., as it may be

448 amended or supplemented from time to time;

449 (g) To maintain office space at such place or places

450 within the authority's boundaries as it may determine;

451 (h) To invest money of the authority, including

452 proceeds from the sale of any bonds subject to any agreements with

453 bondholders, on such terms and in such manner as the authority

454 deems proper;

455 (i) To pay any outstanding City of Jackson bonds

456 relating to the water and sewer systems under their existing

457 terms;

458 (j) To require the necessary relocation or rerouting of

459 roads and highways, railroad, telephone and telegraph lines, and

460 properties, electric power lines, gas pipelines and related

461 facilities, or to require the anchoring or other protection of any

462 of these, provided fair compensation is first paid to the owners

463 or an agreement with such owners regarding the payment of the cost

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464 of such relocation, and to acquire easements or rights-of-way for

465 such relocation or rerouting and to convey the same to the owners

466 of the property being relocated or rerouted in connection with the

467 purposes of this chapter. This provision shall be in accordance

468 with Mississippi Constitution Article 17A and Section 11-27-30;

469 (k) To acquire, construct, improve or modify, to

470 operate or cause to be operated and maintained, either as owner of

471 all or of any part in common with others, any water or wastewater

472 system within the authority's service area. The authority may pay

473 all or part of the cost of any system from any contribution by

474 persons, firms, public agencies or corporations. The authority

475 may receive, accept and use all funds, public or private, and pay

476 all costs of the development, implementation and maintenance as

477 may be determined as necessary for any project;

478 (l) To acquire, in its own name, by purchase on any

479 terms and conditions and in any manner as it may deem proper,

480 property for public use, or by gift, grant, lease, or otherwise,

481 real property or easements therein, franchises and personal

482 property necessary or convenient for its corporate purposes. This

483 provision shall be in accordance with Mississippi Constitution

484 Article 17A and Section 11-27-30;

485 (m) To acquire insurance for the authority's systems,

486 facilities, buildings, treatment plants and all property, real or

487 personal, to insure against all risks as any insurance may, from
488 time to time, be available;

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489 (n) To use any property and rent or lease any property

490 to or from others, including public agencies, or make contracts

491 for the use of the property. The authority may sell, lease,

492 exchange, transfer, assign, pledge, mortgage or grant a security

493 interest for any property. The powers to acquire, use and dispose

494 of property as set forth in this paragraph shall include the power

495 to acquire, use and dispose of any interest in that property,

496 whether divided or undivided. Title to any property of the

497 authority shall be held by the authority exclusively for the

498 benefit of the public;

499 (o) To apply, contract for, accept, receive and

500 administer gifts, grants, appropriations and donations of money,

501 materials and property of any kind, including loans and grants

502 from the United States, the state, a unit of local government, or

503 any agency, department, district or instrumentality of any of the

504 foregoing, upon any terms and conditions as the United States, the

505 state, a unit of local government, or any agency, department,

506 district or instrumentality shall impose. The authority may

507 administer trusts. The authority may sell, lease, transfer,

508 convey, appropriate and pledge any and all of its property and

509 assets;

510 (p) To make and enforce, and from time to time amend

511 and repeal, bylaws, rules, ordinances and regulations for the

512 management of its business and affairs and for the construction,

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513 use, maintenance and operation of any of the systems under its

514 management and control;

515 (q) To employ and terminate staff and other personnel,

516 including attorneys, engineers and consultants, as may be

517 necessary to the functioning of the authority;

518 (r) To establish and maintain rates, fees and any other

519 charges for services and the use of systems and facilities within

520 the control of the authority, and from time to time, to adjust

521 such rates, fees and any other charges to the end that the

522 revenues therefrom will be sufficient at all times to pay the

523 expenses of operating and maintaining the facilities and treatment

524 systems and all of the persons' obligations under any contract or

525 bonds resolution with respect thereto or any obligation of any

526 person under any agreement, contract, indenture or bonds

527 resolution with respect thereto. Such rates, fees, assessments

528 and other charges shall be subject to the jurisdiction of the

529 Mississippi Public Service Commission. Such rates, fees,

530 assessments and other charges shall be equal as levied on citizens

531 throughout the authority's boundaries. For purposes of Section

532 77-3-33, the rates charged by the authority shall be just and

533 reasonable if they are adequate to provide safe and reliable water

534 and wastewater service to its customers, including providing an

535 adequate amount of capital for the authority to perform such

536 repairs, upgrades and improvements as it deems necessary on an

537 ongoing basis. The Mississippi Public Service Commission shall

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538 defer to the authority's determination of what rates are just and

539 reasonable absent a showing of manifest error;

540 (s) To adopt rules and regulations necessary to

541 accomplish the purposes of the authority and to assure the payment

542 of each participating person or public agency of its proportionate

543 share of the costs for use of any of the systems and facilities of

544 the authority and for the authority's proportionate share of the

545 costs of the board;

546 (t) To enter on public or private lands, waters or

547 premises for the purpose of making surveys, borings or soundings,

548 or conducting tests, examinations or inspections for the purposes

549 of the authority, subject to responsibility for any damage done to

550 property entered;

551 (u) To accept industrial wastewater from within the

552 boundaries of the authority for treatment and to require the

553 pretreatment of same when, in the opinion of the authority, such

554 pretreatment is necessary;

555 (v) To control and operate local retail water and

556 wastewater services, and to provide or be responsible for direct

557 servicing of those services to residences, businesses and

558 individuals; however, the authority shall not provide the same

559 services in an area provided by a public utility or person holding

560 a certificate of public convenience and necessity issued by the

561 Mississippi Public Service Commission for the provision of such

562 services in the certificated area;

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563 (w) To assume control and administer, within the

564 authority's jurisdiction, any water or wastewater system or

565 systems by agreement or contract with any person if the person

566 providing such services requests to be relieved of that

567 responsibility.;

568 (x) To acquire property designated by plan to

569 sufficiently accommodate the location of water or wastewater

570 systems and such requirements related directly thereto pursuant to

571 the provisions of Title 11, Chapter 27, Mississippi Code of 1972.

572 The authority may acquire property necessary for any system and

573 the exercise of the powers, rights and duties conferred upon the

574 authority by this chapter. No person owning the drilling rights

575 or the right to share in production shall be prevented from

576 exploring, developing or producing oil or gas with necessary

577 rights-of-way for ingress and egress, pipelines and other means of

578 transporting such interests on any lands or interest of the

579 authority held or used for the purposes of this chapter, but any
580 such activities shall be subject to reasonable regulations by the

581 board that will adequately protect the systems or projects of the

582 authority. This provision shall be in accordance with Mississippi

583 Constitution Article 17A and Section 11-27-30;

584 (y) To use any legally available funds to acquire,

585 rebuild, operate and maintain any existing water or wastewater

586 systems owned or operated by any person;

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587 (z) To refuse to receive water or wastewater from any

588 public agency or person, except with regard to municipalities or

589 other areas within the service territory of the systems as of July

590 1, 2024;

591 (aa) So long as any indebtedness on the systems of the

592 authority remains outstanding, to require of a member public

593 agency, or other person, that all water and wastewater within the

594 boundaries of the authority be disposed of through the appropriate

595 treatment system to the extent that the same may be available, but

596 no public agency shall be precluded from constructing, operating

597 and maintaining its own such system after the current indebtedness

598 owing on the system as of July 1, 2024, is paid in full;

599 (bb) To adopt a seal and a symbol, and hold patents,

600 copyrights, trademarks and service marks, and to enforce its

601 rights with respect thereto;

602 (cc) To operate under the name JXN Water upon receiving

603 permission of the court should the authority desire to maintain

604 the receiver's organizational name; and

605 (dd) To write off revenues deemed uncollectible that

606 were billed to customers prior to December 1, 2022, and further

607 write off revenues deemed uncollectible after the third year of

608 collection efforts as a regular accounting practice of the

609 authority. Nothing herein permits the provision of services

610 without charging applicable rates in effect at the time services

611 are provided and requiring payment for such services.

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612 (3) The authority shall:

613 (a) Submit annual reports to the Governor, Lieutenant

614 Governor, Speaker of the House of Representatives, State Auditor,

615 Joint Legislative Committee on Performance Evaluation and

616 Expenditure Review and the governing authorities of any

617 municipality whose citizens are within the authority's boundaries

618 regarding the water quality and financial conditions of such

619 system or systems, as well as a schedule of currently planned

620 repairs, upgrades or improvements planned by the authority;

621 (b) Immediately submit to the Governor, Lieutenant

622 Governor, Speaker of the House of Representatives and the

623 governing authorities of any municipality whose citizens are

624 within the authority's boundaries any information received from

625 the Mississippi State Department of Health or Department of

626 Environmental Quality or other state or federal regulatory

627 agencies regarding the condition of a transferred eligible

628 municipal system. The authority, in addition to abiding by any

629 other federal or state reporting requirements, must also report

630 such information to the public on its website and to individuals

631 residing within the service area as required by federal or state

632 law;

633 (c) Publish audited annual financial statements, which

634 shall be made available to the public. The annual financial

635 statements shall include disposition of all funds expended by the

636 authority for any purpose. Quarterly financial statements shall

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637 be made available to the public by posting on the authority's

638 website;

639 (d) Adopt by administrative rules and regulations a

640 system of continuous internal audits;

641 (e) Adopt by administrative rules and regulations a

642 code of ethics for officers and employees of the authority to

643 carry out the standards of conduct established by this chapter;

644 and

645 (f) Adopt by administrative rules and regulations

646 guidelines for the disposal of property if the authority is

647 dissolved.

648 SECTION 9. (1) The president, as chief executive officer of

649 the utility authority, if so appointed by the board, shall direct

650 and supervise all administrative and technical activities in

651 accordance with the provisions of this chapter, within the

652 administrative rules and regulations adopted by the board, and in

653 accordance with industry practice. The president shall:

654 (a) Supervise and administer or contract for the

655 supervision and administration of the water and wastewater systems

656 owned, managed or controlled by the authority;

657 (b) Employ and direct such personnel as may be

658 necessary to carry out the purposes of this chapter and utilize

659 such services, personnel or facilities of the authority as he or

660 she may deem necessary;

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661 (c) Make available for inspection by the board or any

662 member of the board or the Governor, Lieutenant Governor, Speaker

663 of the House or the governing authorities of any municipality

664 whose citizens are served by the authority, upon request, all

665 books, records, files and other information and documents of his

666 or her office and advise the board and recommend such

667 administrative rules and regulations and other matters he or she

668 deems necessary and advisable to improve the operation and

669 administration of the authority;

670 (d) Attend meetings of the board or appoint a designee

671 to attend on his or her behalf;

672 (e) Not later than thirty (30) days before the

673 beginning of the authority's fiscal year, submit the proposed

674 annual budget of the authority to the board for review and

675 approval. This shall include a schedule of planned repairs,

676 upgrades or improvements to the systems and the anticipated

677 capital cost of each. In addition, the proposed annual budget of

678 the authority shall include a personnel table reporting

679 information for each full-time and part-time permanent position,

680 as follows:

681 (i) The position title and the salary for each

682 position in the existing operating budget for the current fiscal

683 year, indicating whether each position is filled or vacant as of

684 the reporting date; and

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685 (ii) The position title and the salary recommended

686 for each position for the next fiscal year; and

687 (f) Require bond of Fifty Thousand Dollars ($50,000.00)

688 from employees with access to funds or in such an amount as

689 provided in the administrative rules and regulations of the board.

690 (2) The president may:

691 (a) Require bond from other employees as he or she

692 deems necessary; and

693 (b) Upon specific or general approval of the board,

694 enter into personal service contracts pursuant to administrative

695 rules and regulations adopted by the board and compensate such

696 consultants and technical assistants as may be required to carry

697 out the provisions of this chapter.

698 (3) Agencies, departments or units of state government,

699 including, but not limited to, the Mississippi Department of

700 Health and the Mississippi Department of Environmental Quality,

701 shall cooperate with the authority to regulate the authority and
702 assure the effective operation of the authority's systems, with

703 the understanding that such agencies act as a regulator and not

704 operator of such systems. All state officers are hereby empowered

705 and required to render such services to the authority within their

706 respective functions as may be requested by the authority.

707 SECTION 10. Employees of the utility authority shall serve

708 at the will and pleasure of the president, who shall determine
709 their compensation and benefits in consultation with the board.

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710 SECTION 11. Neither the directors of the utility authority,

711 the board, its employees, nor any person or persons acting on

712 their behalf, while acting within the scope of their authority,

713 shall be subject to personal liability resulting from carrying out

714 any of the powers granted herein in accordance with his or her

715 good-faith belief that he or she is acting in the best interests

716 of the authority.

717 SECTION 12. (1) The utility authority shall enter into its

718 contracts for major procurements after a competitive and open

719 procurement process. The authority may adopt administrative rules

720 and regulations pursuant to the provisions of this chapter

721 providing for special procedures whereby the authority may make

722 any class of procurement. The authority shall endeavor to ensure

723 the transparency and competitiveness of procurements of all sizes.

724 (2) In its bidding processes, the authority may do its own

725 bidding and procurement or may utilize the services of other state

726 agencies as appropriate and necessary. The president may declare

727 an emergency for purchasing purposes which shall be governed by

728 the administrative rules and regulations adopted by the board.

729 SECTION 13. All monies received by the utility authority

730 shall be deposited into an operating account. Such account shall

731 be established in a custodian financial institution domiciled in

732 the State of Mississippi, insured by the Federal Deposit Insurance

733 Corporation and collateralized as prescribed by Section 27-105-5.

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734 SECTION 14. All division heads, officers and employees of

735 the utility authority shall be considered public servants as

736 defined in Section 25-4-103. All division heads and officers of

737 the authority are subject to Section 25-4-25 and shall be required

738 to file a Statement of Economic Interest with the Mississippi

739 Ethics Commission.

740 SECTION 15. (1) Any public agency, pursuant to a duly

741 adopted resolution of the governing body of such public agency,

742 may enter into contracts with the utility authority under the

743 terms of which the authority will manage, operate and contract for

744 usage of its systems and facilities, or other services, for such

745 public agency.

746 (2) Any public agency may enter into contracts with the

747 authority for the authority to purchase or sell, by installments

748 over such terms as may be deemed desirable, or otherwise, to any

749 person or any systems. Any public agency may sell, donate, convey

750 or otherwise dispose of water and wastewater facilities or

751 systems, or any equipment, personal property or other things

752 deemed necessary for the construction, operation and maintenance

753 thereof to the authority without the necessity of appraisal,

754 advertising or bidding. This section creates an alternative

755 method of disposal of public property.

756 (3) Any public agency is authorized to enter into operating

757 agreements with the authority, for such terms and upon such
758 conditions as may be deemed desirable, for the operation of any of

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759 its systems by the authority or by any person contracting with the

760 authority to operate such systems.

761 (4) Any public agency may lease to or from the authority,

762 for such term and upon such conditions as may be deemed desirable,

763 any of its systems.

764 (5) Any municipality or county may donate office space,

765 equipment, supplies and materials to the authority.

766 (6) Any such contract may contain provisions requiring any

767 public agency to regulate the quality and strength of the material

768 to be handled by the wastewater systems and may also provide that

769 the authority shall have the right to use any streets, alleys and

770 public ways and places within the jurisdiction of a public agency

771 during the term of the contract. Such contracts may obligate the

772 public agency to make payments to the authority or to a trustee in

773 amounts which shall be sufficient to enable the authority to

774 defray the expenses of administering, operating and maintaining

775 its respective systems, to pay interest and principal (whether at

776 maturity upon redemption or otherwise) on bonds of the authority

777 issued under this chapter, and to fund reserves for debt service,

778 for operation and maintenance and for renewals and replacements,

779 to fulfill the requirements of any rate covenant with respect to

780 debt service coverage contained in any resolution, trust indenture

781 or other security agreement relating to the bonds of the authority

782 issued under this chapter or to fulfill any other requirement

783 relating to bonds issued pursuant to this chapter.

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784 (7) Any public agency shall have the power to enter into

785 contracts with the authority as deemed, in the discretion of the

786 governing body of the public agency, would be in the best interest

787 of the public agency. Such contracts may include a pledge of the

788 full faith and credit of the public agency and/or the avails of

789 any special assessments made by the public agency against property

790 receiving benefits, as now or hereafter provided by law. Any such

791 contract may:

792 (a) Provide for the sale or lease to, or use by, the

793 authority, of the systems or any part thereof, of the public

794 agency;

795 (b) Provide that the authority shall operate its

796 systems or any part thereof of the public agency;

797 (c) Provide that the public agency shall have the right

798 to continued use and/or priority use of the systems or any part

799 thereof during the useful life thereof upon payment of reasonable

800 charges therefor;

801 (d) Contain provisions to assure equitable treatment of

802 public agencies contracting with the authority under this chapter;

803 and

804 (e) Contain such other provisions and requirements as

805 the parties thereto may determine to be appropriate or necessary.

806 Such contracts may extend over any period of time,

807 notwithstanding any provisions of law to the contrary, and may

808 extend beyond the life of the respective systems or any part

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809 thereof or the term of the bonds sold with respect to such

810 facilities or improvements thereto.

811 (8) The obligations of a public agency arising under the

812 terms of any contract referred to in this chapter, whether or not

813 payable solely from a pledge of revenues, shall not be included

814 within the indebtedness limitations of the public agency for

815 purposes of any constitutional or statutory limitation or

816 provision. To the extent provided in such contract and to the

817 extent such obligations of the public agency are payable wholly or

818 in part from the revenues and other monies derived by the public

819 agency from the operation of its systems or of its combined

820 systems, or any part thereof, such obligations shall be treated as

821 expenses of operating such systems.

822 (9) Contracts referred to in this section may also provide

823 for payments in the form of contributions to defray the cost of

824 any purpose set forth in the contracts and as advances for the

825 respective systems or any part thereof subject to repayment by the

826 authority. A public agency may make such contributions or

827 advances from its general fund or surplus fund or from special

828 assessments or from any monies legally available therefor.

829 (10) Subject to the terms of a contract or contracts

830 referred to in this chapter, the authority is hereby authorized to

831 do and perform any and all acts or things necessary, convenient or

832 desirable to carry out the purposes of such contracts, including

833 the fixing, charging, collecting, maintaining and revising of

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834 rates, fees and other charges for the services rendered to any

835 user of any of the systems operated or maintained by the

836 authority, whether or not such systems are owned by the authority.

837 (11) No provision of this chapter shall be construed to

838 prohibit any public agency, otherwise permitted by law to issue

839 bonds, from issuing bonds in the manner provided by law for the

840 construction, renovation, repair or development of any systems or

841 any part thereof.

842 SECTION 16. Whenever a public agency shall have executed a

843 contract under this chapter and the payments thereunder are to be

844 made either wholly or partly from the revenues of the public

845 agency's systems, or any part thereof, or a combination of such

846 systems, the duty is hereby imposed on the public agency to

847 establish and maintain and from time to time to adjust the rate or

848 fees charged by the public agency for the services of such

849 systems, so that the revenues therefrom, together with any taxes

850 and special assessments levied in support thereof, will be

851 sufficient at all times to pay:

852 (a) The expense of operating and maintaining such

853 systems, including, but not limited to, all of the public agency's

854 obligations to the utility authority and the cost required to

855 staff such systems, its successors or assigns under such contract;

856 and

857 (b) All of the public agency's obligations under and in

858 connection with bonds theretofore issued, or which may be issued

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859 thereafter and secured by the revenues of such systems. Any such

860 contract may require the use of consulting engineers and financial

861 experts to advise the public agency whether and when such rates

862 and fees are to be adjusted.

863 SECTION 17. (1) Notwithstanding the provisions of Sections

864 77-3-21 and 77-3-23, the certificate of public convenience and

865 necessity held by any municipality, public agency, district,

866 public utility or other entity authorized by law to provide water

867 and wastewater services may be cancelled and its powers, duties

868 and responsibilities transferred to the utility authority in the

869 manner provided by this section.

870 (2) Any entity described in subsection (1) of this section

871 desiring to have its certificate of public convenience and

872 necessity cancelled and its powers, duties and responsibilities

873 transferred to the authority shall make a determination to that

874 effect on its official minutes if a public entity, or by affidavit

875 if not a public entity, and transmit such determination to the

876 authority.

877 (3) Upon receipt of the document evidencing such

878 determination from an entity to transfer its powers, duties and

879 responsibilities to the authority, the authority shall, by

880 resolution, declare whether it is willing and able to accept such

881 transfer from the entity.

882 (4) Upon completion of the requirements of subsections (2)

883 and (3) of this section and agreement by both parties to the

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884 transfer, the holder of the certificate of public convenience and

885 necessity and the authority shall jointly petition the Public

886 Service Commission to cancel the certificate of public convenience

887 and necessity. The petition must be accompanied by copies of the

888 official minutes, affidavit or resolution, as the case may be,

889 reflecting the actions of the petitioners. After review of the

890 petition and any other evidence as the Public Service Commission

891 deems necessary, the commission may issue an order canceling the

892 certificate and transferring to the authority the powers, duties

893 and responsibilities granted by the certificate, including all

894 assets and debts of the transferor petitioner related to such

895 certificated services, real or personal, or both, if it finds

896 that:

897 (a) Subsections (2) and (3) of this section have been

898 complied with; and

899 (b) Such action is in the public interest.

900 (5) The authority and providers of water and wastewater

901 services that are not holders of a certificate of a public

902 convenience and necessity from the Public Service Commission may

903 enter into agreements for the provision of such services,

904 including, but not limited to, the transfer to the authority of

905 such provider's powers, duties, responsibilities, assets and

906 debts.

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907 (6) Nothing herein shall require an entity whose powers and

908 duties were transferred to the authority to remain under the

909 authority.

910 SECTION 18. (1) Any system of a municipality, public agency

911 or other entity that becomes subject to the jurisdiction of the

912 utility authority and this chapter shall not impair, invalidate or

913 abrogate any liens, bonds or other certificates of indebtedness

914 related to water or wastewater facilities and systems incurred

915 prior to becoming subject to the jurisdiction of the authority.

916 (2) The authority may do and perform any and all acts

917 necessary, convenient or desirable to ensure the payment,

918 redemption or satisfaction of such liens, bonds or other

919 certificates of indebtedness.

920 SECTION 19. (1) Sections 18 through 27 of this act apply to

921 all bonds to be issued on or after July 1, 2024, and such

922 provisions shall not affect, limit or alter the rights and powers

923 of the utility authority under this chapter or any law of

924 Mississippi to conduct the activities referred to herein in any

925 way pertinent to the interests of the bondholders, including,

926 without limitation, the authority's right to charge and collect

927 rates, fees and charges and to fulfill the terms of any covenants

928 made with the registered owners of any existing bonds, or in any

929 other way impair the rights and remedies of the registered owners

930 of any existing bonds, unless provision for full payment of such
931 bonds, by escrow or otherwise, has been made pursuant to the terms

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932 of the bonds or the resolution, trust indenture or security

933 interest securing the bonds.

934 (2) The authority shall have the power and is hereby

935 authorized, from time to time, to borrow money and to issue

936 revenue bonds and interim notes in such principal amounts as the

937 authority may determine to be necessary to provide sufficient

938 funds for achieving one or more of the purposes of this chapter,

939 including, without limiting the generality of the foregoing, to

940 defray all the costs of the project, the cost of the acquisition,

941 construction, improvement, repair or extension of a system, or any

942 part thereof, whether or not such facilities are owned by the

943 authority, the payment of interest on bonds of the authority

944 issued pursuant to this chapter, establishment of reserves to

945 secure such bonds and payment of the interest thereon, expenses

946 incident to the issuance of such bonds and to the implementation

947 of the authority's system, and all other expenditures of the

948 authority incident to or necessary or convenient to carry out the

949 purposes of this chapter.

950 (3) Before issuing bonds, other than interim notes or

951 refunding bonds as provided in Section 20 of this act, the board

952 of directors of the authority shall adopt a resolution declaring

953 its intention to issue such bonds and stating the maximum

954 principal amount of bonds proposed to be issued, a general generic

955 description of the proposed improvements and the proposed location

956 thereof and the date, time and place at which the board of

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957 directors proposes to take further action with respect to the

958 issuance of such bonds. The resolution shall be published once a

959 week for at least three (3) consecutive weeks in at least one (1)

960 newspaper having a general circulation within the geographical

961 limits of the service area under this chapter.

962 (4) Bonds of the authority issued pursuant to this chapter

963 shall be payable from and secured by a pledge of all or any part

964 of the revenues derived from the operation of the systems or any

965 part or parts thereof and any other monies legally available and

966 designated therefor, as may be determined by the authority,

967 subject only to any agreement with the purchasers of the bonds.

968 Such bonds may be further secured by a trust indenture between the

969 authority and a corporate trustee, which may be any trust company

970 or bank having powers of a trust company without or within the

971 state.

972 (5) Bonds of the authority issued pursuant to this chapter

973 shall be authorized by a resolution or resolutions adopted by a

974 majority affirmative vote of the total membership of the board.

975 Such bonds may be issued in series, and each series of such bonds

976 shall bear such date or dates, mature at such time or times, bear

977 interest at such rate or rates (not exceeding the maximum rate set

978 out in Section 75-17-103, Mississippi Code of 1972), be in such

979 denomination or denominations, be in such form, carry such

980 conversion privileges, have such rank or priority, be executed in

981 such manner and by such officers, be payable from such sources in

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982 such medium of payment at such place or places within or without

983 the state, provided that one such place shall be within the state,

984 and be subject to such terms of redemption prior to maturity, all

985 as may be provided by resolution or resolutions of the board. The

986 term of such bonds issued pursuant to this chapter shall not

987 exceed forty (40) years.

988 (6) Bonds of the authority issued pursuant to this chapter

989 may be sold at such price or prices, at public or private sale, in

990 such manner and at such times as may be determined by the

991 authority to be in the public interest, and the authority may pay

992 all expenses, premiums, fees and commissions which it may deem

993 necessary and advantageous in connection with the issuance and

994 sale thereof.

995 (7) Any pledge of earnings, revenues or other monies made by

996 the authority shall be valid and binding from the time the pledge

997 is made. The earnings, revenues or other monies so pledged and

998 thereafter received by the authority shall immediately be subject

999 to the lien of such pledge without any physical delivery thereof

1000 or further act, and the lien of any such pledge shall be valid and

1001 binding as against all parties having claims of any kind in tort,

1002 contract or otherwise against the authority irrespective of

1003 whether such parties have notice thereof. Neither the resolution

1004 nor any other instrument by which a pledge is created need be

1005 recorded.

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1006 (8) Neither the members of the board nor any person

1007 executing the bonds shall be personally liable on the bonds or be

1008 subject to any personal liability or accountability by reason of

1009 the issuance thereof.

1010 (9) Proceeds from the sale of bonds of the authority may be

1011 invested, pending their use, in such securities as may be

1012 specified in the resolution authorizing the issuance of the bonds

1013 or the trust indenture securing them, and the earnings on such

1014 investments applied as provided in such resolution or trust

1015 indenture.

1016 (10) Whenever any bonds shall have been signed by the

1017 officer designated by the resolution of the board to sign the

1018 bonds who was in office at the time of such signing but who may

1019 have ceased to be such officer prior to the sale and delivery of

1020 such bonds, or who may not have been in office on the date such

1021 bonds may bear, the manual or facsimile signatures of such officer

1022 upon such bonds shall nevertheless be valid and sufficient for all
1023 purposes and have the same effect as if the person so officially

1024 executing such bonds had remained in office until the delivery of

1025 the same to the purchaser or had been in office on the date such

1026 bonds may bear.

1027 (11) The authority has the discretion to advance or borrow

1028 funds needed to satisfy any short-term cash flow demands or

1029 deficiencies or to cover start-up costs until such time as

1030 sufficient bonds, assets and revenues have been secured to satisfy

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1031 the needs of the authority. The State of Mississippi shall

1032 provide surety for any advance or borrowing of funds required

1033 under this chapter through June 30, 2029.

1034 SECTION 20. (1) The utility authority may, by resolution

1035 adopted by its board, issue refunding bonds for the purpose of

1036 paying any of its bonds at or prior to maturity or upon

1037 acceleration or redemption. Refunding bonds may be issued at such

1038 time prior to the maturity or redemption of the refunded bonds as

1039 the board deems to be in the public interest, without an election

1040 on the question of the issuance thereof. The refunding bonds may

1041 be issued in sufficient amounts to pay or provide the principal of

1042 the bonds being refunded, together with any redemption premium

1043 thereon, any interest accrued or to accrue to the date of payment

1044 of such bonds, the expenses of issue of the refunding bonds, the

1045 expenses of redeeming the bonds being refunded, and such reserves

1046 for debt service or other capital or current expenses from the

1047 proceeds of such refunding bonds as may be required by the

1048 resolution, trust indenture or other security instruments. The

1049 issue of refunding bonds, the maturities and other details

1050 thereof, the security therefor, the rights of the holders and the

1051 rights, duties and obligations of the authority in respect of the

1052 same shall be governed by the provisions of this chapter relating

1053 to the issue of bonds other than refunding bonds insofar as the

1054 same may be applicable. Any such refunding may be effected,

1055 whether the obligations to be refunded shall have then matured or

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1056 shall thereafter mature, either by the exchange of the refunding

1057 bonds for the obligations to be refunded thereby with the consent

1058 of the holders of the obligations so to be refunded, or by sale of

1059 the refunding bonds and the application of the proceeds thereof to

1060 the payment of the obligations proposed to be refunded thereby,

1061 and regardless of whether the obligations proposed to be refunded

1062 shall be payable on the same date or different dates or shall be

1063 due serially or otherwise.

1064 (2) Borrowing by the authority may be made by the delivery

1065 of interim notes to any person or public agency or financial

1066 institution by a majority vote of the board of directors.

1067 SECTION 21. All bonds, other than refunding bonds, interim

1068 notes and certificates of indebtedness, which may be issued

1069 pursuant to this chapter shall be validated as now provided by law

1070 in Sections 31-13-1 through 31-13-11, Mississippi Code of 1972;

1071 however, notice of such validation proceedings shall be addressed

1072 to the citizens of the respective public agencies which have

1073 contracted with the authority pursuant to this chapter, and whose

1074 contracts and the payments to be made by the public agencies

1075 thereunder constitute security for the bonds of the authority

1076 proposed to be issued, and such notice shall be published at least

1077 once in a newspaper or newspapers having a general circulation

1078 within the geographical boundaries of each of the contracting

1079 public agencies to whose citizens the notice is addressed. Such

1080 validation proceedings shall be instituted in any chancery courts

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1081 within the boundaries of the authority. The validity of the bonds

1082 so validated and of the contracts and payments to be made by the

1083 public agencies thereunder constituting security for the bonds

1084 shall be forever conclusive against the authority and the public

1085 agencies, which are parties to said contracts, and the validity of

1086 said bonds and said contracts and the payments to be made

1087 thereunder shall never be called in question in any court in this

1088 state.

1089 SECTION 22. Bonds issued under the provisions of this

1090 chapter shall not be deemed to constitute, within the meaning of

1091 any constitutional or statutory limitation, an indebtedness of the

1092 utility authority or the state. Such bonds shall be payable

1093 solely from the revenues or assets of the authority pledged

1094 therefor. Each bond issued under this chapter shall contain on

1095 the face thereof a statement to the effect that neither the

1096 authority nor the state shall be obligated to pay the same or the

1097 interest thereon except from the revenues or assets pledged

1098 therefor.

1099 SECTION 23. The utility authority shall have power in

1100 connection with the issuance of its bonds pursuant to this chapter

1101 to:

1102 (a) Covenant as to the use of any or all of its

1103 property, real or personal;

1104 (b) Redeem the bonds, to covenant for their redemption

1105 and to provide the terms and conditions thereof;

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1106 (c) Covenant to charge rates, fees and charges

1107 sufficient to meet operating and maintenance expenses, renewals

1108 and replacements, principal and debt service on bonds, creation

1109 and maintenance of any reserves required by a bonds resolution,

1110 trust indenture or other security instrument and to provide for

1111 any margins or coverages over and above debt service on the bonds

1112 deemed desirable for the marketability of the bonds;

1113 (d) Covenant and prescribe as to events of default and

1114 terms and conditions upon which any or all of its bonds shall

1115 become or may be declared due before maturity, as to the terms and

1116 conditions upon which such declaration and its consequences may be

1117 waived and as to the consequences of default and the remedies of

1118 the registered owners of the bonds;

1119 (e) Covenant as to the mortgage or pledge of or the

1120 grant of a security interest in any real or personal property and

1121 all or any part of the revenues from any designated system or any

1122 part thereof or any revenue-producing contract or contracts made

1123 by the authority with any person or entity to secure the payment

1124 of bonds, subject to such agreements with the registered owners of

1125 bonds as may then exist;

1126 (f) Covenant as to the custody, collection, securing,

1127 investment and payment of any revenues, assets, monies, funds or

1128 property with respect to which the authority may have any rights

1129 or interest;

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1130 (g) Covenant as to the purposes to which the proceeds

1131 from the sale of any bonds then or thereafter to be issued may be

1132 applied, and the pledge of such proceeds to secure the payment of

1133 the bonds;

1134 (h) Covenant as to the limitations on the issuance of

1135 any additional bonds, the terms upon which additional bonds may be

1136 issued and secured, and the refunding of outstanding bonds;

1137 (i) Covenant as to the rank or priority of any bonds

1138 with respect to any lien or security;

1139 (j) Covenant as to the procedure by which the terms of

1140 any contract with or for the benefit of the registered owners of

1141 bonds may be amended or abrogated, the amount of bonds the

1142 registered owners of which must consent thereto, and the manner in

1143 which such consent may be given;

1144 (k) Covenant as to the custody of any of its properties

1145 or investments, the safekeeping thereof, the insurance to be

1146 carried thereon, and the use and disposition of insurance

1147 proceeds;

1148 (l) Covenant as to the vesting in a trustee or

1149 trustees, within or outside the state, of such properties, rights,

1150 powers and duties in trust as the authority may determine;

1151 (m) Covenant as to the appointing and providing for the

1152 duties and obligations of a paying agent or paying agents or other

1153 fiduciaries within or outside the state;

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1154 (n) Make all other covenants and do any and all such

1155 acts and things as may be necessary, convenient or desirable in

1156 order to secure its bonds, or in the absolute discretion of the

1157 authority tend to make the bonds more marketable, notwithstanding

1158 that such covenants, acts or things may not be enumerated herein,

1159 it being the intention hereof to give the authority power to do

1160 all things in the issuance of bonds and in the provisions for

1161 security thereof which are not inconsistent with the Constitution

1162 of the state; and

1163 (o) Execute all instruments necessary or convenient in

1164 the exercise of the powers herein granted or in the performance of

1165 covenants or duties, which may contain such covenants and

1166 provisions, as any purchaser of the bonds of the authority may

1167 reasonably require.

1168 SECTION 24. The utility authority may, in any authorizing

1169 resolution of the board, trust indenture or other security

1170 instrument relating to its bonds issued pursuant to this chapter,

1171 provide for the appointment of a trustee who shall have such

1172 powers as are provided therein to represent the registered owners

1173 of any issue of bonds in the enforcement or protection of their

1174 rights under any such resolution, trust indenture or security

1175 instrument. The authority may also provide in such resolution,

1176 trust indenture or other security instrument that the trustee, or

1177 in the event that the trustee so appointed shall fail or decline
1178 to so protect and enforce such registered owners' rights then such

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1179 percentage of registered owners as shall be set forth in, and

1180 subject to the provisions of, such resolution, trust indenture or

1181 other security interest, may petition the court of proper

1182 jurisdiction for the appointment of a receiver of the authority's

1183 systems, the revenues of which are pledged to the payment of the

1184 principal of and interest on the bonds of such registered owners.

1185 Such receiver may exercise any power as may be granted in any such

1186 resolution, trust indenture or security instrument to enter upon

1187 and take possession of, acquire, construct, reconstruct or operate

1188 and maintain such system, fix charges for services of the system

1189 and enforce collection thereof, and receive all revenues derived

1190 from such system or facilities and perform the public duties and

1191 carry out the contracts and obligations of the authority in the

1192 same manner as the authority itself might do, all under the

1193 direction of such court.

1194 SECTION 25. (1) The exercise of the powers granted by this

1195 chapter will be in all respects for the benefit of the people of
1196 the state, for their well-being and prosperity and for the

1197 improvement of their social and economic conditions, and the

1198 utility authority shall not be required to pay any tax or

1199 assessment on any property owned by the authority under the

1200 provisions of this chapter or upon the income therefrom, nor shall

1201 the authority be required to pay any recording fee or transfer tax

1202 of any kind on account of instruments recorded by it or on its

1203 behalf.

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1204 (2) Any bonds issued by the authority under this chapter,

1205 their transfer and the income therefrom shall at all times be free

1206 from taxation by the state or any local unit or political

1207 subdivision or other instrumentality of the state, excepting

1208 inheritance and gift taxes.

1209 SECTION 26. All bonds issued under the provisions of this

1210 chapter shall be legal investments for trustees, other

1211 fiduciaries, savings banks, trust companies and insurance

1212 companies organized under the laws of the State of Mississippi,

1213 and such bonds shall be legal securities which may be deposited

1214 with and shall be received by all public officers and bodies of

1215 the state and all municipalities and other political subdivisions

1216 thereof for the purpose of securing the deposit of public funds.

1217 SECTION 27. The state hereby covenants with the registered

1218 owners of any bonds of the utility authority that so long as the

1219 bonds are outstanding and unpaid, the state will not limit or

1220 alter the rights and powers of the authority under this chapter to
1221 conduct the activities referred to herein in any way pertinent to

1222 the interests of the bondholders, including, without limitation,

1223 the authority's right to charge and collect rates, fees,

1224 assessments and charges and to fulfill the terms of any covenants

1225 made with the registered owners of the bonds, or in any other way

1226 impair the rights and remedies of the registered owners of the

1227 bonds, unless provision for full payment of such bonds, by escrow
1228 or otherwise, has been made pursuant to the terms of the bonds or

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1229 the resolution, trust indenture or security interest securing the

1230 bonds.

1231 SECTION 28. For the purposes of satisfying any temporary

1232 cash flow demands and deficiencies, and to maintain a working

1233 balance for the utility authority, the state, county,

1234 municipalities or public agencies within the geographic boundaries

1235 of the authority, or other persons, subject to their lawful

1236 authority to do so, are authorized to advance, at any time, such

1237 funds which in their discretion are necessary, or borrow such

1238 funds by issuance of notes, for initial capital contribution, and

1239 to cover start-up costs until such times as sufficient bonds,

1240 assets and revenues have been secured to satisfy the needs of the

1241 authority for its management, operation and formation. To this

1242 end, the state, county, municipality, public agency or person,

1243 subject to its lawful authority to do so, shall advance such

1244 funds, or borrow such funds by issuance of notes, under such terms

1245 and conditions as may be provided by resolution of the governing

1246 body, or other persons as defined in this chapter, subject to

1247 their lawful authority to do so, except that each such resolution

1248 shall state:

1249 (a) The need for the proceeds advanced or borrowed;

1250 (b) The amount to be advanced or the amount to be

1251 borrowed;

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1252 (c) The maximum principal amount of any note issued the

1253 interest rate or maximum interest rate to be incurred, and the

1254 maturity date of said note;

1255 (d) In addition, the governing body, or other persons

1256 as defined in this chapter, subject to their lawful authority to

1257 do so, may arrange for lines of credit with any bank, firm or

1258 person for the purpose of providing an additional source of

1259 repayment for notes issued pursuant to this section. Amounts

1260 drawn on a line of credit may be evidenced by negotiable or

1261 nonnegotiable notes or other evidences of indebtedness and contain

1262 such terms and conditions as the governing body, or other persons

1263 as defined in this chapter, subject to their lawful authority to

1264 do so, may authorize in the resolution approving the same;

1265 (e) The governing body of the county, municipalities or

1266 other persons as defined in this chapter, subject to their lawful

1267 authority to do so, may authorize the repayment of such advances,

1268 notes, lines of credit and other debt incurred under this section,
1269 along with all costs associated with the same, including, but not

1270 limited to, rating agency fees, printing costs, legal fees, bank

1271 or trust company fees, line of credit fees and other charges to be

1272 reimbursed by the authority under such terms and conditions as are

1273 reasonable and are to be provided for by resolution of the

1274 governing body, or terms agreed upon with other persons as defined

1275 in this chapter, subject to their lawful authority to do so; and

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1276 (f) In addition, the governing body of the county,

1277 municipality or public agency may lease or donate office space and

1278 equipment to the authority under such terms and conditions as are

1279 reasonable and are to be provided for by resolution of the

1280 governing body, or terms agreed upon by the authority.

1281 SECTION 29. This act, being necessary for the welfare of the

1282 state and its inhabitants, shall be liberally construed to effect

1283 the purposes thereof. If any section, provision, paragraph,

1284 sentence, phrase or word of this act shall be held invalid by any

1285 court of competent jurisdiction, the remainder of this act shall

1286 not be affected thereby.

1287 SECTION 30. Sections 1 and 3 through 28 of this act shall be

1288 codified as a separate chapter in Title 51, Mississippi Code of

1289 1972.

1290 SECTION 31. This act shall take effect and be in force from

1291 and after July 1, 2024.

Further, amend by striking the title in its entirety and

inserting in lieu thereof the following:

1 AN ACT TO ENACT THE MISSISSIPPI CAPITOL REGION UTILITY ACT;

2 TO ESTABLISH THE MISSISSIPPI CAPITOL REGION UTILITY AUTHORITY; TO
3 PROVIDE FOR THE APPOINTMENT OF A PRESIDENT AND A BOARD OF
4 DIRECTORS FOR SUCH AUTHORITY; TO CLARIFY THE POWERS AND DUTIES OF
5 SUCH BOARD; TO ENSURE ACCESS TO SAFE, CLEAN AND RELIABLE WATER AND
6 WASTEWATER SYSTEMS FOR THE CITIZENS OF CENTRAL MISSISSIPPI; AND
7 FOR RELATED PURPOSES.

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