Metro Jackson Water Authority Act; create., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: State Affairs; Ways and Means

By: Representatives Yates, Mansell

House Bill 1677

(As Sent to Governor)

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

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

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

the "Metro Jackson Water
Authority Act."

SECTION 2.
(1)  The Mississippi Legislature finds the

following:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(a)  Three member(s) at
large to be appointed by the Mayor of the City of Jackson and confirmed by the
City Council of the City of Jackson;

(b)  Two (2) member(s)
at large to be appointed by the Governor;

(c)  One (1) member at
large to be appointed by the Lieutenant Governor;

(d)  One (1) member at
large appointed by the Governor in consultation with the Mayor of the City of
Jackson;

(e)  One (1) member at
large to be appointed by the Mayor of the City of Byram and confirmed by the
Board of Alderman of the City of Byram; and

(f)  One (1) member at
large to be appointed by the Mayor of the City of Ridgeland and confirmed by
the Board of Alderman of the City of Ridgeland.

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

The Mayor of the City of
Jackson shall be an ex officio non-voting member of the board, in addition to
the three (3) appointees as provided in paragraph (a) of this subsection, and
may designate a person or persons to represent him or her at all meetings of
the board from which he or she may be absent.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(dd)  To write off
revenues deemed uncollectible that were billed to customers prior to November
29, 2022, and, as a regular accounting practice of the authority, to further
write off revenues deemed uncollectible after the third year of collection
efforts.  Nothing herein permits the provision of services without charging
applicable rates in effect at the time services are provided and requiring
payment of such services; and

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

(3)  The authority shall:

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

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

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

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

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

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

(g)  The authority
shall conduct an independent rate study every two (2) years and develop a
report with its findings.  If such rate study indicates that a rate increase is
necessary in two (2) consecutive reports, the authority shall adopt a rate
increase if it has not increased the rate in the prior two (2) years; and

(h)  The authority
shall develop and implement a process for customers to be able to dispute water
and wastewater utility bills.

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

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

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

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

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

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

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

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

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

(2)  The president may:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(b)  Such action is in
the public interest.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SECTION 28.
The state hereby covenants with the registered

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(3)  Notwithstanding the
provisions of any other law,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(i)  The tax levy
authorized under this section;

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

(iii)  Any
combination thereof.

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

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

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

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

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

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

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

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

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

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

SECTION 33.  Section
21-27-57, Mississippi Code of 1972, is amended as follows:

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

SECTION 34.  This act
shall take effect and be in force from and after its passage.