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MISSISSIPPI LEGISLATURE 2026 Regular Session To: Local and Private Legislation By: Representative Horan House Bill 4000 (As Sent to Governor) AN ACT TO AUTHORIZE GRENADA COUNTY, MISSISSIPPI, TO CREATE THE GRENADA COUNTY UTILITY AUTHORITY; TO PROVIDE THAT THE AUTHORITY SHALL BE GOVERNED BY A BOARD OF DIRECTORS OF THE AUTHORITY; TO PROVIDE FOR THE MEMBERSHIP OF THE BOARD OF DIRECTORS OF THE AUTHORITY; TO PROVIDE FOR THE POWERS AND DUTIES OF THE AUTHORITY AND THE BOARD OF THE AUTHORITY; TO AUTHORIZE THE AUTHORITY TO ACQUIRE, CONSTRUCT, MAINTAIN, AND OPERATE WASTEWATER COLLECTION AND TREATMENT SYSTEMS AND WATER SYSTEMS WITHIN THE AUTHORITY'S SERVICE AREA; TO AUTHORIZE SERVICE PROVIDERS TO CONTRACT WITH THE AUTHORITY; TO AUTHORIZE THE AUTHORITY TO ISSUE REVENUE BONDS TO PROVIDE FUNDS NECESSARY TO ACHIEVE THE PURPOSES OF THIS ACT; TO AUTHORIZE THE AUTHORITY TO ENTER INTO CONTRACTS WITH THE OWNERS OF PROPERTY TO PROVIDE IMPROVEMENTS NECESSARY TO PROVIDE WASTEWATER AND WATER SERVICES; TO PROVIDE THAT THE AUTHORITY MAY ISSUE SPECIAL ASSESSMENT BONDS TO FINANCE SUCH IMPROVEMENTS AND TO AUTHORIZE THE AUTHORITY TO LEVY AND COLLECT SPECIAL ASSESSMENTS AGAINST THE PROPERTY BENEFITED THEREBY TO RETIRE SUCH BONDS; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. This act may be cited as the "act." SECTION 2. This act is for the purpose of authorizing a cooperative effort for the planning, acquisition, construction, maintenance, operation, and coordination of wastewater and water services for the citizens in the service area to be served by the creation of the authority. SECTION 3. Words and phrases used in this act shall have meanings as follows: (a) "Act" means this local and private act of the Legislature of the state, as originally enacted or as amended from time to time. (b) "Authority" means the Grenada County Utility Authority, a public body corporate and politic of the state, created pursuant to this act to serve the service area. (c) "Board of the authority" means the board of the authority. (d) "Board of the county" shall mean the board of supervisors of the county. (e) "Bonds" means revenue bonds, special assessment bonds, interim notes having a maturity of three (3) years or less, and other certificates of indebtedness of the authority issued under the provisions of this act. (f) "Costs of the project" means: (i) All costs of site preparation and other start-up costs; (ii) All costs of construction; (iii) All costs of real and personal property required for the purposes of the project and facilities related thereto, including land and any rights or undivided interest therein, easements, franchises, fees, utility charges, permits, approvals, licenses, and certificates and the securing of any permits, approvals, licenses, and certificates, and all machinery and equipment, including motor vehicles, which are used for the project; (iv) All costs of engineering, geotechnical, architectural, financial, and legal services; (v) All costs of plans and specifications and all expenses necessary or incident to determining the feasibility or practicability of the project; (vi) Administrative expenses; and (vii) Any other expenses as may be necessary or incidental to the project. (g) "County" means Grenada County, Mississippi. (h) "Customer" means person(s) receiving retail water via the water system or wastewater services via the wastewater treatment systems. (i) "Facilities" means any structure, building, ditch, pipe, channel, improvement, land, or other real or personal property used or useful in a one or more system under this act. (j) "Mississippi Code" refers to the Mississippi Code of 1972, as amended. (k) "Municipality" means any incorporated city, town, or village of the state pursuant to Sections 21-1-1 et seq. of the Mississippi Code, whether operating under general law or under special charter. (l) "Person" means and includes the state, a municipality, any public agency, or any other political subdivision or governmental agency of the state or of the United States of America, or any public utility, private utility, individual, corporation, partnership, association, firm, trust, estate, or any other entity whatsoever. (m) The terms "pollution" and "waters of the state" shall have meanings as set forth in the Mississippi Air and Water Pollution Control Law, as now or hereafter amended, appearing as Sections 49-17-1 et seq. of the Mississippi Code. (n) "Project" means the acquisition, construction, or development by the authority of any infrastructure for a system. (o) "Public agency" means any county, any municipality, any state board or commission owning or operating properties, any public utility created pursuant to Sections 19-5-151 et seq. of the Mississippi Code, or any other political subdivision of the state and having the power to own and/or operate a system. The term "public agency" also includes the successors and assigns of any such public agency. (p) "Public utility" includes any person, firm, corporation, or association, and any public body, political subdivision, agency, or instrumentality thereof, owning and/or operating a public utility service described by subparagraph (iv) of paragraph (d) of Section 77-3-3 of the Mississippi Code. The term "public utility" also includes the successors and assigns of any such public utility. (q) "Service area" means all areas served by the authority, whether or not such area be contiguous or within the county; provided, however, that the service area shall not include any area located within the corporate limits of a municipality. (r) "State" means the State of Mississippi. (s) "System(s)" means any or all wastewater treatment systems and water systems. (t) "Wastewater treatment systems" means any plant, disposal field, lagoon, pumping station, pipelines or other works not specifically mentioned herein, installed for the purpose of collecting, transporting, transferring, treating, neutralizing, stabilizing, or disposing of water and wastewater, including all pipelines, conduits, pumping stations, and all other structures, devices, and appliances appurtenant thereto, including land and right-of-way thereto, or facilities to provide cooling water to collect, control, and dispose of waste heat. (u) "Wastewater" means water being disposed of by any person and which is contaminated with waste or sewage, including residential, industrial, agricultural, municipal, recreational, waste heat, and any other wastewater that may cause impairment of the quality of the "waters of the state". (v) "Water" means potable water and service water. (w) "Water system" means pipelines, conduits, pumping stations, and all other structures, devices, and appliances appurtenant thereto, including land and right-of-way thereto, for use for transporting water to a point of ultimate use. SECTION 4. (1) The formation of the authority shall be conducted in accordance with the provisions of this section. The board of the county is authorized to file a petition, which may be joined in by any public agency and/or public utility, under the provisions of this act, and when so organized, the authority shall be a political subdivision of the state, and a body politic and corporate, and shall have the powers granted under this act. (2) A petition for the organization of the authority shall be filed in the chancery court, which petition shall describe the service area and the necessity and desirability of the proposed authority and shall be signed by duly authorized elected public officials of the county and the authorized officers of any other public agency and/or public utility joining in the petition. Upon the filing of the petition, the chancery clerk of the county shall promptly give written notice of the same to the assigned chancellor of the chancery court who shall enter an order setting a date not less than thirty (30) days from the date of the order for a hearing on the organization of the authority. Any public agency or public utility not a petitioner and within the proposed service area may be served with process as a party defendant to the petition. The chancery clerk shall cause a notice of such hearing addressed to the qualified electors of the proposed service area to be published once a week for at least three (3) successive weeks in a newspaper or newspapers published in the county having a general circulation within the proposed service area, which notice shall state the place, date, and time of such hearing, that a petition has been filed to organize the authority under the provisions of this act, describe the proposed service area, and command that all such persons appear before the chancery court or the chancellor in term or in vacation in the place and on the date and hour of the hearing to show cause, if any they can, why the proposed authority should not be organized and established as set forth in the petition. The first publication shall be at least twenty-one (21) days before the date of such hearing and the last publication shall be not more than seven (7) days before the date of such hearing. (3) The chancellor may hear the petition at any term thereof, or the chancellor may fix a time to hear such petition at any time in term or in vacation, and may determine all matters pertaining thereto, may adjourn the hearing from time to time, and may continue the case for want of sufficient notice or other good cause. If the petition shall prove defective in any manner, the petitioners, upon motion, shall be permitted to amend the same. At such hearing, or a day to which the same may be continued, the chancellor shall take evidence and all interested persons objecting to the creation of the authority may appear and contest the same. If the chancellor shall find that a sound plan exists for the creation of the authority to accomplish the purposes set forth in this act and the same would meet a public necessity, he or she shall render a decree creating the authority under the provisions of this act, specifying in the decree the service area to be served thereby, which may be less than the service area set out in the petition. The chancellor shall not include within the service area of the proposed authority any area lying within the corporate limits of a municipality unless such municipality shall have either joined in the petition or filed a written consent to such inclusion adopted by its governing authority. If the chancellor finds that the proposed authority should not be organized, then he or she shall dismiss the proceedings. SECTION 5. (1) When so organized, the authority shall have the power to sue and be sued, provided that the authority shall not be liable and shall be immune from suit at law or in equity on account of any wrongful or tortious act or omission, including libel, slander, or defamation, by it, or any such act or omission by any employee of the authority, subject to and in accordance with the provisions of Sections 11-46-1 et seq. of the Mississippi Code. (2) The authority by a majority vote of the board of the authority may acquire, pursuant to the laws of the state, any public agency or public utility, upon the approval by the affirmative vote of the public agency or public utility as required by the bylaws of the public agency or public utility or the laws of the state. Upon entry of such public agency or public utility into the authority, the area serviced by such public agency or public utility shall be made a part of the service area of the authority and the public agency or public utility may be dissolved in accordance with the bylaws of the public agency or public utility or in accordance with the laws of the state. SECTION 6. All powers of the authority shall be exercised by a board of the authority consisting of at least five (5) members to be selected and composed as follows: (a) The board of the county shall appoint five (5) persons to serve on the board of the authority, with at least two (2) persons to be appointed from any public agency or public utility acquired by the authority or from the service area not presently served by any public agency or public utility. (b) Upon their initial appointment, one (1) of the directors shall be appointed for a term of one (1) year; one (1) of the directors shall be appointed for a term of two (2) years; one (1) of the directors shall be appointed for a term of three (3) years; one (1) of the directors shall be appointed for a term of four (4) years; one (1) of the directors shall be appointed for a term of five (5) years. At the expiration of the initial terms, each director shall thereafter be appointed to a term of four (4) years. Any vacancy arising by the expiration of a director's term, or a vacancy created by the removal of a director for any other reason, shall be filled immediately by appointment made by the board of the county. Any director of the board of authority can be immediately reappointed to a new term without limit to the number of terms. In the event that a director's term expires, the director may hold over until he or she is reappointed or a new director is appointed to fill the position. (c) Notwithstanding the appointive authority herein granted to the board of the county, its legal and actual responsibilities, authority, and function, subsequent to the creation of the authority, shall be specifically limited to such appointive function and responsibilities. (d) The operation, management, abolition, or dissolution of the authority, and all such other matters in connection therewith, shall be vested solely and only in the board of the authority, and the operation, management, abolition, or dissolution of the authority shall be accomplished only by the authority of the board of the authority; provided, however, that the board of the authority shall not abolish or dissolve the authority without a unanimous vote of the board of the authority and not without a plan approved by the board of the county for the continuation of the systems of the authority. (e) The board of the authority shall elect annually from its number a president and vice president of the authority and such other officers as, in the judgment of the board, are necessary. The president shall be the presiding officer of the board, and shall have the same right to vote as any other director. The vice president shall perform all duties and exercise all powers conferred by this act upon the president when the president is absent or fails or declines to act, except the president's right to vote. The board also shall appoint a secretary and a treasurer who may or may not be members of the board of the authority, and it may combine those offices. The treasurer shall give bond in the sum of not less than Fifty Thousand Dollars ($50,000.00) as set by the board of the authority, and each director may be required to give bond in the sum of not less than Ten Thousand Dollars ($10,000.00), with sureties qualified to do business in the state, and the premiums on such bonds shall be an expense of the authority. Each such bond shall be payable to the state; the condition of each such bond shall be that the treasurer or director will faithfully perform all duties of his or her office and account for all money or other assets which shall come into his or her custody as treasurer or director of the authority. (f) The members of the board of the authority shall serve without salary, but shall be entitled to receive per diem pay as provided for in Section 25-3-69 of the Mississippi Code. Further, members of the board of the authority shall be reimbursed their actual travel and hotel expenses, as provided in Section 25-3-41 of the Mississippi Code, incurred while in the performance of their duties as members of the board of the authority, to be paid on an itemized statement approved by the Department of Finance and Administration. Expenses shall be paid from the available funds of the authority. SECTION 7. Except as may otherwise be provided for in this act, all business of the authority shall be transacted by simple majority vote of the board of the authority. SECTION 8. (1) The authority is authorized and empowered to acquire, construct, improve, enlarge, extend, repair, operate, and maintain one or more system; and to make contracts with any person in furtherance thereof; and to make contracts with any person, under the terms of which the authority, within its designated service area, will engage in the activities related to the systems. The authority also may enter into contracts with any person to design and construct any systems, and thereafter to purchase, lease, or sell, by installments over such terms as may be deemed desirable, reasonable, and necessary, or otherwise, any such systems. The authority is authorized 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 systems; and the authority may lease to or from any person, for such term and upon such conditions as may be deemed desirable, any systems. Any such contract may contain provisions requiring any public agency, public utility, or other person to regulate the quality and strength of materials to be handled by the respective 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, public utility, or other person during the term of the contract. (2) The authority shall have the duty and responsibility to exercise general supervision over the systems; to adopt rules governing the design, construction, or installation, or operation and maintenance of the systems; to adopt rules establishing performance standards for the systems and rules concerning the operation and maintenance of the systems. Such rules and regulations may include the implementation of a standard application form for the installation, operation, and maintenance of such systems; application review; approval or denial procedures for any proposed systems; inspection, monitoring, and reporting guidelines; and enforcement procedures. (3) No owner, lessee, developer, or person shall construct or place a residence, building, facility, or development which may require the installation of a system, nor shall any owner, lessee, developer, or person design, construct, or install such a system, without having first submitted a notice of intent to the authority. Upon receipt of the notice of intent, the board of the authority shall provide the party giving notice with complete information regarding the rules, regulations, and guidelines for the design, construction, installation, operation, and maintenance of the system. No systems shall be installed without proof of the submission of the notice of intent required by this section and the approval of the same by the board of the authority. (4) Within thirty (30) working days following the receipt of complete information as required by the rules, regulations, and guidelines for the design, construction, installation, operation, and maintenance of any systems, as applicable, by an owner, lessee, developer, or other person of any lot or tract of land, including the approval of the Mississippi Department of Environmental Quality, the board of the authority shall review and accept or deny any plans from any owner, lessor, developer, or person as to the type or types of systems suitable for installation and compatible with the existing systems. Review and acceptance by the board of the authority of any system is required before the installation, operation, or maintenance of any system, and no owner, lessee, developer, or person shall design, construct, or install a system that does not comply with this act; however, the board of the authority may grant variances from the requirements of this act as deemed necessary and appropriate. Any owner, lessee, developer, or person responsible for the design, construction, or installation of a system shall sign and file with the authority an affidavit that the system complies with this act as a part of the complete information filing required in this subsection (4). (5) Nothing in this act shall preclude a professional engineer from providing services for the design, construction, or installation of any systems. However, any such engineer shall notify the authority in writing of those services provided and shall stamp the appropriate documentation with that professional's seal certifying the approval of the board of the authority of the design, construction, and installation thereof. (6) Any system of any public agency, public utility, or other persons which becomes connected with, or tied into, the systems of the authority, shall be subject to its jurisdiction and the terms of this act. SECTION 9. The authority, through the board of the authority, in addition to any and all powers now or hereafter granted to it, is hereby empowered: (a) To develop and maintain long-range planning for the systems within the service area and for pollution abatement. (b) To adopt and issue a "certificate of convenience and necessity" of the authority to use the power of eminent domain, including the right of immediate possession, in the acquisition of real property. Upon the adoption of certificate, which shall state the description of the real property needed to be acquired by eminent domain, the authority shall transmit a copy of the certificate to the governing authorities of any public agency with the power of eminent domain or any other entity with the power of eminent domain. The public agency or other entity may initiate proceedings under the provisions of Sections 11-27-1 et seq. of the Mississippi Code, on behalf of the authority to carry out the purposes set forth in the certificate. The eminent domain proceeding thereby initiated shall be conducted according to and governed by the provisions of Sections 11-27-1 et seq. of the Mississippi Code. (c) To acquire and to own, maintain, use, operate, and convey or otherwise dispose of any and all property of any kind, real, personal, or mixed, or any interest therein within or without the boundaries of its designated service area necessary or convenient to the exercise of the purposes of its powers with respect to the operations of any systems, unless any of the foregoing is otherwise prohibited under the Constitution of the state or this act. The amount and character of interest in land, other property, and easements thus to be acquired shall be determined by the board of the authority, and their determination shall be conclusive and shall not be subject to attack in the absence of manifold abuse of discretion or fraud on the part of such board in making such determination. However, (i) in acquiring lands, either by negotiation or eminent domain, the authority shall not acquire minerals or royalties; provided that sand and gravel shall not be considered as minerals within the meaning of this section; and (ii) no person or persons owning the drilling rights or the right to share in production shall be prevented from exploring, developing, or producing oil or gas with necessary right-of-way for ingress and egress, pipelines, and other means of transporting interests on any land or interest thereon of the authority held or used for the purposes of this act; but any such activities shall be under such reasonable regulations by the board of the authority as will adequately protect the systems of the authority contemplated by this act. (d) To provide for the necessary relocation or rerouting of roads and highways, railroad, telephone or other telecommunications lines and properties, electric power lines, and gas pipe lines and related facilities, or to require the anchoring or other protection of any of these, provided due compensation is first paid to the owners thereof or agreement is had 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 purpose of this act. (e) Unless otherwise prohibited under the constitution of the state, the laws of the state, or this act, to enter into contracts with any public agency or public utility, including, but not limited to, contracts authorized under this act, in furtherance of any of the purposes authorized by this act upon such consideration as the board of the authority and such public agency or public utility may agree. Any such contract may extend over any period of time including a term which extends beyond the term of the then majority of the existing board of the authority, notwithstanding any provision or rule of law to the contrary, may be upon such terms 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 make and enforce, and from time to time amend and repeal, bylaws, rules, and regulations for the management of its business and affairs and for the construction, use, maintenance, and operation of any systems under its management and control and any other of its properties. (g) To employ staff and other personnel, including attorneys, engineers, financial advisors, and consultants. The board of the authority may, in its discretion, employ an executive director, which shall have the authority to employ and terminate employees of the authority. (h) To accept and utilize grants and other funds from any source for any project or other corporate purposes of the authority. (i) To establish and maintain rates, charges, or assessments for the use of the services of such systems, and from time to time to adjust such rates, charges, or assessments, to the end that the revenues therefrom will be sufficient at all times to pay the expenses of operating and maintaining such systems, maintain reasonable reserves, and paying all of the authority's obligations under any contract or bond resolution with respect thereto. (j) To adopt rules and regulations necessary to carry out the implementation of the systems in the service area and to assure the payment by each participating public agency or public utility of its proportionate share of the costs of the systems. (k) To refuse to receive wastewater from any public agency or subdivision thereof or public utility that does not comply with the provisions of the authority's rules and regulations applicable to the particular service area within which such public agency or subdivision thereof or public utility is located. (l) To accept or reject industrial wastewater for treatment and to require the pretreatment of same when in the opinion of the authority such pretreatment is necessary. (m) To adopt all necessary and reasonable rules and regulations to require and/or carry out and effectuate any systems in the service area, as contractually authorized. (n) To sell or lease to any person any surplus property owned by the authority upon such conditions as may be deemed desirable by the parties. (o) So long as any indebtedness on the systems of the authority remains outstanding, to require by contract with a public agency, public utility, or other person, that all wastewater or water within the service area be disposed of through the appropriate system which comprises a part of the service area, to the extent that the same may be available. SECTION 10. (1) Any public agency or public utility may, pursuant to a duly adopted resolution of the governing authority of such public agency or public utility, enter into contracts with the authority under the terms of which the authority will provide the services of each such appropriate system. Any public agency or public utility may also 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, any systems. Any public agency or public utility is also 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 systems by the authority or by any person contracting with the authority to operate such systems; and any public agency or public utility may lease to or from the authority, for such term and upon such conditions as may be deemed desirable, any systems. Any such contract may contain provisions requiring any public agency or public utility to regulate the quality of wastewater or water to be handled by the system 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 for any of its systems. Such contracts may obligate the public agency or public utility 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 systems, to pay interest and principal (whether at maturity upon redemption or otherwise) on bonds of the authority issued pursuant to this act, and to fund reserves for debt service, for operation and maintenance, and for renewals and replacements, and to fulfill the requirements of any rate covenant with respect to debt service coverage contained in any resolution, trust indenture, or other security agreement relating to the bonds of the authority issued pursuant to this act. Any public agency or public utility shall have the power to enter into such contracts with the authority as in the discretion of the governing authorities thereof would be in the best interest of such public agency or public utility. Such contracts may include a pledge of the full faith and credit of such public agency and/or public utility and/or the avails of any special assessments made by such public agency and/or public utility against property receiving benefits, as now or hereafter provided by law. Any such contract may provide for the sale or lease to or use of by the authority of any system or any part thereof of the public agency and/or public utility; may provide that the authority shall operate any system or any part thereof of the public agency and/or public utility; may provide that any public agency and/or public utility shall have the right to continued use and/or priority use of any of its system or any part thereof during the useful life thereof upon payment of reasonable charges therefor; may contain provisions to assure equitable treatment of public agencies and/or public utilities who contract with the authority pursuant to this act; and may 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 system or any part thereof or the term of any bonds sold with respect to such facilities or improvements thereto. (2) The obligations of a public agency and/or public utility arising under the terms of any contract referred to in this act, whether or not payable solely from a pledge of revenue or assessments, shall not be included within the indebtedness limitations of the public agency and/or public utility for purposes 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 and/or public utility are payable wholly or in part from the revenues, assessments, and other monies derived by the public agency and/or public utility from the operation of its system or any part thereof, such obligations shall be treated as expenses of operating such system. (3) 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 the contracts and as advances for the system or any part thereof subject to repayment by the authority. A public agency and/or public utility may make such contributions or advances from its general fund or surplus fund or from special assessments or from any monies legally available therefor. (4) Payments or any transfer of funds, made or to be made to the authority by a public agency, public utility, or a nonprofit corporation or association identified in Mississippi Code Annotated Section 77-3-5(c) of the Mississippi Code, pursuant to a contract for wastewater or water services or the acquisition of a system or any part thereof, shall not be subject to approval or review by the Mississippi Public Service Commission. (5) Subject to the terms of a contract or contracts referred to in this act, the authority is hereby authorized to do and perform any and all acts or things necessary, convenient, or desirable to carry out the purposes of such contracts, including the fixing, charging, collecting, maintaining, and revising of rates, fees, assessments, and other charges for the services rendered by any system operated or maintained by the authority, whether or not such system is owned by the authority. (6) No provision of this act shall be construed to prohibit any public agency and/or public utility, otherwise permitted by law to issue bonds, from issuing bonds in the manner provided by law for the construction, renovation, repair, or development of a system or any part thereof owned or operated by such public agency and/or public utility. SECTION 11. Whenever a public agency and/or public utility shall have executed a contract pursuant to this act and the payments thereunder are to be made either wholly or partly from the revenues of a system, of a public agency and/or public utility, or any part thereof or a combination of such systems, the duty is hereby imposed on the public agency and/or public utility to establish and maintain and from time to time to adjust the rates charged by the public agency and/or public utility for the services of such systems, such that the revenues therefrom together with any taxes and special assessments levied in support thereof will be sufficient at all times to: (a) pay the expense of operating and maintaining such systems, including all of the obligations of the public agency and/or public utility to the authority, or its successors or assigns, under such contract; (b) maintain reasonable reserves; and, (c) pay all of the obligations of the public agency and/or public utility 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 and/or public utility whether and when such rates are to be adjusted. SECTION 12. (1) The authority shall have the power and is hereby authorized, from time to time, to borrow money and to issue revenue bonds or special assessment bonds 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 the 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, to pay interest on bonds of the authority issued pursuant to this act, to establish reserves to secure such bonds and payment of the interest thereon, to pay expenses incident to the issuance of such bonds and to the implementation of the authority's system, and to make all other expenditures of the authority incident to or necessary or convenient to carry out the purposes of this act. (2) Before issuing bonds (other than interim notes or refunding bonds as provided in this act) hereunder, the board of the authority shall first hold a public hearing with due notice of the time, date, and place of the hearing published in a newspaper of general circulation in the service area. The board 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 and the proposed location thereof, and the date, time, and place at which the board of the authority proposes to take further action with respect to the issuance of such bonds. The board of the authority shall then cause the resolution of intent to be published once a week at least three (3) consecutive weeks in at least one (1) newspaper having a general circulation within the service area. The first publication of such resolution shall be made not less than twenty-one (21) days before the date fixed in such resolution to direct the issuance of the bonds and the last publication shall be made not more than seven (7) days before such date. (3) Following the public hearing, bonds of the authority may be issued pursuant to this act payable from and secured by a pledge of all or any part of the revenues under one or more contracts entered into pursuant to this act between the authority and one or more public agencies and/or public utilities and from all or any part of the revenues derived from the operation of any designated system or any part or parts thereof and any other monies legally available and designated therefor, including special assessments levied by the authority against the property so benefited, as may be determined by the authority, subject only to any 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 without or within the state having trust powers. (4) Bonds of the authority issued pursuant to this act shall be authorized by a resolution or resolutions adopted by a majority vote of the board of the authority. 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 of the Mississippi Code), 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, and be subject to such terms of redemption prior to maturity, all as may be provided by resolution or resolutions of the board of the authority. (5) 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 the authority may deem necessary and advantageous in connection with the issuance and sale thereof. (6) Any pledge of earnings, revenues, assessments, or other monies made by the authority shall be valid and binding from the time the pledge is made. The earnings, revenues, assessments, or other monies so pledged and thereafter received by the authority 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 irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded. (7) Neither the members of the board of the authority 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 the issuance thereof. (8) 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 applied as provided in such resolution or trust indenture. (9) Whenever any bonds shall have been signed by the officer(s) designated by the resolution of the board of the authority to sign the bonds who were in office at the time of such signing but who may have ceased to be such officer(s) prior to the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the manual or facsimile signatures of such officer(s) upon such bonds shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially executing such bonds had remained in office until the delivery of the same to the purchaser or had been in office on the date such bonds may bear. (10) Payments made under contracts with the authority for the purpose of paying premium, if any, principal and interest on specific bonds issued by the authority under this section shall be used solely for the purpose of paying premium, if any, principal and interest on those specific bonds and for no other purpose. Such payments shall be deposited in a segregated bank account and the holders of the specific bonds to which the payments relate shall have an exclusive first priority lien on such payments and funds deposited in such account. Such payments shall not be subject to lien or attachment by any creditor of the authority and shall not be considered to be revenues of the authority available for payment of operation and maintenance costs or any other obligation of the authority. (11) Further, the board of the county may, in its discretion, levy an additional tax of not more than two (2) mills against the taxable property in the county to be used to support and maintain the authority created in this act. Before any such levy is made, the board of the county shall signify its intention to make such a levy and publish same in a newspaper published in the county for thirty (30) days prior to making said levy. In the event more than twenty percent (20%) or one thousand five hundred (1,500), whichever is less, of the qualified electors in the service area protest in writing to the board of the county against the imposition of such tax levy within thirty (30) days from the date such notice is published, then such proposed tax levy shall not be made unless same is approved by a special election called for said purpose. Such special election shall be conducted and had as provided by the laws of the state. This levy shall be in addition to all other levies provided by the laws of the state and in this act. SECTION 13. The authority may by resolution adopted by the board of the authority issue refunding bonds for the purpose of paying any of its bonds at or prior to maturity or upon acceleration or redemption. Refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the board of the authority deems to be in the public interest, without public hearing on the question of the issuance thereof. 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 instruments. 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 issuance 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. SECTION 14. All bonds (other than refunding bonds, interim notes, and certificates of indebtedness, which may be validated) issued pursuant to this act shall be validated as now provided by law in Sections 31-13-1 et seq. of the Mississippi Code; notice of such validation proceedings shall be addressed to the citizens of the service area to be served by the authority (a) which have contracted with the authority pursuant to this act, and (b) whose contracts and the payments to be made by the public agencies or public utilities thereunder constitute security for the bonds of the authority proposed to be issued, and that such notice shall be published at least once in a newspaper having a general circulation within the service area of service. Such validation proceedings shall be instituted in the chancery court of the county or of Hinds County, Mississippi. The validity of the bonds so validated and of the contracts and payments to be made by the public agencies or public utilities thereunder constituting security for the bonds shall be forever conclusive against the authority and the public agencies or public utilities which are parties to such contracts; and the validity of such bonds and such contracts and the payments to be made thereunder shall never be called into question by or in any court in the state. SECTION 15. 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. Such bonds shall not be secured by a pledge of the full faith and credit of the state or the authority, but shall be payable solely from the revenues, special assessments, 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 the authority shall not be obligated to pay the same nor the interest thereon except from the revenues or assets pledged therefor. SECTION 16. The authority shall have power in connection with the issuance of its bonds 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, and collect assessments, sufficient to meet operating and maintenance expenses, renewals, and replacements, principal and debt service on bonds, creation and maintenance of any reserves or other funds required by a bond 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 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 may have any rights or interest. (g) Covenant as to the purposes to which the proceeds from 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 to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or in the absolute discretion of the authority that 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 or laws of the state. (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 17. For the purposes of satisfying any temporary cash flow demands and deficiencies, and to maintain a working balance for the authority, the board of the county, or other persons as defined in this act, subject to their lawful authority to do so, are authorized to advance, at any time, such funds which, in its 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 board of the county, or other persons as defined in this act, subject to their 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 board of the county, 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 the note. In addition, the board of the county, 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 board of the county, or other persons as defined in this act, subject to their lawful authority to do so, may authorize in the resolution approving the same. The board of the county, 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 board of the county, or terms agreed upon with other persons as defined in this act, subject to their lawful authority to do so. In addition, the board of the county 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 board of the county, or terms agreed upon by the authority. SECTION 18. The authority may, in any authorizing resolution of the board of the authority, trust indenture, or other security instrument relating to its bonds, 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, or in the event that the trustee so appointed shall fail or decline to so protect and enforce such registered owners' rights then such percentage of registered owners as shall be set forth in, and subject to the provisions of, such resolution, trust indenture, or other security interest, may petition the court of proper jurisdiction for the appointment of a receiver of the revenues of the system which are pledged to the payment of the principal of and interest on the bonds of such registered owners. Such receiver may exercise any power as may be 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, and receive all revenues derived from such system 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 19. (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 any 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 the provisions of 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 20. 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 21. 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 conduct the activities referred to herein in any way pertinent to the interests of the bondholders, including, without limitation, the authority's right to charge and collect rates, fees, and charges, make assessments, and to fulfill the terms of any covenants made with 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 interest securing the bonds. SECTION 22. The provisions of this act are cumulative of other statutes now or hereafter enacted relating to the issuance of bonds and systems; and to the design, construction, acquisition, or approval of systems for such purposes, and any public agency or public utility may exercise all presently held powers in the furtherance of this act. SECTION 23. If any clause, sentence, paragraph, section, or part of the provisions of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof directly involved in the controversy in which such judgment shall have been rendered. SECTION 24. (1) The board of the county, in its discretion, may provide county equipment, labor, and other county services and resources, including county funds, to the authority, upon such terms and conditions as may be mutually agreed upon by the board of the county and the board of the authority. Before providing such equipment, labor, services, resources, or funds, the board of the county shall make a finding, by resolution duly adopted and entered on their minutes, that such mutual aid is in the best interest of the citizens to be served by the authority. (2) The board of the authority, in its discretion, may provide equipment, labor, and other utility services or funds to other persons, upon such terms and conditions as may be mutually agreed upon by the board of the authority and the board of the county. Before providing such equipment, labor, services, or funds, the board of the authority shall make a finding by resolution duly adopted and entered on their minutes, that such mutual aid is in the best interest of the citizens to be served by the authority. SECTION 25. This act shall take effect and be in force from and after its passage.
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