MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Environment Prot, Cons and Water Res

By: Senator(s) Dearing

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

SECTION 1. (1) (a) Any nonprofit, nonshare corporation chartered under Title 79, Chapter 11, Mississippi Code of 1972, for the purpose of owning and operating rural waterworks shall annually prepare a financial report showing the financial condition of the corporation. The financial report shall be prepared on forms provided by the State Auditor within ninety (90) days following the close of the fiscal year of that corporation. Each report shall contain a certification signed by the president of the board of directors of the corporation that the president has reviewed the information contained in the financial report and that the information is true and correct.

(b) As part of the billing statement received by the subscriber immediately before the annual meeting of the corporation, each corporation owning and operating rural waterworks shall notify each subscriber of water service of the availability of the annual financial report, how that report may be obtained and where the report may be reviewed. If requested in writing, the corporation shall provide a copy of the financial report to any subscriber.

(c) Before July 1, 1999, and July 1 of each subsequent year, each corporation required to prepare a financial report under this section shall submit its annual financial report to the State Auditor. In addition, the corporation shall provide a copy of that financial report to the public library in the county seat of the county in which the corporation's principal office is located, if possible. If no public library is located in the county seat, the corporation shall provide that report to the public library serving the largest population in the county of the corporations' principal office. If requested in writing, the State Auditor shall provide a copy of the financial report to any subscriber of a water system owned and operated by that corporation and may recover the costs of providing that report.

(2) In addition to the information required under subsection (1) of this section, each financial report shall contain a statement certifying that an annual meeting was held in accordance with the corporation's bylaws as required under Section 79-11-197, Mississippi Code of 1972, and shall state the date of the most recent annual meeting. The financial report shall also include a list of the directors currently serving on the board of the corporation.

(3) (a) Before July 15, 1999, and July 15 of each subsequent year, the State Auditor shall provide the Mississippi State Department of Health a list of all corporations failing to file a report as required under subsection (1) of this section. The Mississippi State Department of Health shall notify the president of the board of directors of each listed system in writing and shall require that the financial report be submitted to the State Auditor within thirty (30) days after the date of the letter.

(b) If any corporation required to prepare a financial report under this section fails to notify subscribers of the availability of the financial report, no corporate action taken after the date of the annual meeting shall be valid. If any corporation required to prepare a financial report under this section, fails to submit the annual financial report to the State Auditor, no corporate action taken after the date for submission specified in the letter from the Mississippi State Department of Health as required under paragraph (a) of this subsection shall be valid.

(4) (a) A corporation shall mail to each subscriber provided water service by the corporation as part of the billing statement received by the subscriber immediately before the annual meeting of the corporation a notice of the annual meeting of the corporation. Each corporation shall also submit a copy of that notice to the Mississippi State Department of health.

(b) If any corporation fails to provide notice as required under this section, no corporate action taken after the date of the annual meeting stated in or fixed in accordance with the corporation's bylaws shall be valid.

(5) If any corporation fails to hold an annual meeting, no corporate action taken after the date of the annual meeting stated in or fixed in accordance with the corporation's bylaws shall be valid.

SECTION 2. This act shall take effect and be in force from and after July 1, 1998.