House Bill NO. 1580

                             By Senator(s) Committee

     Amend by striking all after the enacting clause and inserting in lieu thereof the following:


     SECTION 1.  Section 19-5-177, Mississippi Code of 1972, is amended as follows:

     19-5-177.  (1)  Any district created under Sections 19-5-151 through 19-5-207, acting by and through the board of commissioners of such district as its governing authority, shall have the following, among other, powers:

          (a)  To sue and be sued;

          (b)  To acquire by purchase, gift, devise and lease or any other mode of acquisition, other than by eminent domain, hold and dispose of real and personal property of every kind within or without the district;

          (c)  To make and enter into contracts, conveyances, mortgages, deeds of trust, bonds, leases or contracts for financial advisory services;

          (d)  To incur debts, to borrow money, to issue negotiable bonds, and to provide for the rights of the holders thereof;

          (e)  To fix, maintain, collect and revise rates and charges for services rendered by or through the facilities of such district, which rates and charges shall not be subject to review or regulation by the Mississippi Public Service Commission except in those instances where a city operating similar services would be subject to regulation and review; however, the district may furnish services, including connection to the facilities of the district, free of charge to the county or any agency or department of the county and to volunteer fire departments located within the service area of the district.  The district shall obtain a certificate of convenience and necessity from the Mississippi Public Service Commission for operating of water and/or sewer systems;

          (f)  To pledge all or any part of its revenues to the payment of its obligations;

          (g)  To make such covenants in connection with the issuance of bonds or to secure the payment of bonds that a private business corporation can make under the general laws of the state;

          (h)  To use any right-of-way, public right-of-way, easement, or other similar property or property rights necessary or convenient in connection with the acquisition, improvement, operation or maintenance of the facilities of such district held by the state or any political subdivision thereof; however, the governing body of such political subdivision shall consent to such use;

          (i)  To enter into agreements with state and federal agencies for loans, grants, grants-in-aid, and other forms of assistance including, but not limited to, participation in the sale and purchase of bonds;

          (j)  To acquire by purchase any existing works and facilities providing services for which it was created, and any lands, rights, easements, franchises and other property, real and personal necessary to the completion and operation of such system upon such terms and conditions as may be agreed upon, and if necessary as part of the purchase price to assume the payment of outstanding notes, bonds or other obligations upon such system;

          (k)  To extend its services to areas beyond but within one (1) mile of the boundaries of such district; however, no such extension shall be made to areas already occupied by another corporate agency rendering the same service so long as such corporate agency desires to continue to serve such areas.  Areas outside of the district desiring to be served which are beyond the one (1) mile limit must be brought into the district by annexation proceedings;

          (l)  To be deemed to have the same status as counties and municipalities with respect to payment of sales taxes on purchases made by such districts;

          (m)  To borrow funds for interim financing subject to receipt of funds as outlined in Section 19-5-181;

          (n)  To provide group life insurance coverage for all or specified groups of employees of the district and group hospitalization benefits for those employees and their dependents, and to pay the total cost of these benefits.

     (2)  Any district which is incorporated under Sections 19-5-151 through 19-5-207 to provide sewer services may install or provide for the installation of sewage holding tanks at residential properties within the district, if funding for municipal or community sewers has been awarded to the district.  The district shall maintain or provide for the maintenance of the sewage holding tank systems.  The district may assess and collect from each resident using a sewage holding tank a fee covering the costs of providing the services authorized under this section.  When municipal or community sewers are available and ready for use, residences with sewage holding tanks shall be connected to the sewer system.

     (3)  This section shall stand repealed on July 2, 2002.

     SECTION 2.  This act shall take effect and be in force from and after July 1, 2002.