2005 Regular Session
To: Education; Finance
By: Senator(s) Harden
AN ACT TO AMEND SECTIONS 31-15-3 THROUGH 31-15-11, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT ALL SCHOOL DISTRICTS MAY UTILIZE PROVISIONS OF THE GENERAL REFUNDING BOND LAW TO REFUND OUTSTANDING SCHOOL DISTRICT INDEBTEDNESS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 31-15-3, Mississippi Code of 1972, is amended as follows:
31-15-3. Whenever used in Sections 31-15-1 through 31-15-19, the words "political subdivision" shall be deemed as including any county, city, town or village, whether operating under the code chapter, a special charter or the commission form of government; and any supervisors district, road district, municipal separate school district, rural separate school district, consolidated school district, line separate school district or school district of any other form.
The words "governing authority" or "governing body," wherever used in the aforesaid sections, shall be understood as referring to the following: for counties, supervisors districts, road districts, * * * the board of supervisors of the county; for cities, towns or villages operating under the code, the board of mayor and aldermen thereof; for cities, towns or villages operating under special charters, the legislative body thereof created by such charters; for cities, towns or villages operating under the commission form of government, the council or commission thereof; for * * * school districts, the county board of education or board of trustees of the school district.
For purposes of this section, the words "bonded indebtedness" means any bonds or other written evidence of indebtedness that constitutes a general obligation of a political subdivision.
SECTION 2. Section 31-15-5, Mississippi Code of 1972, is amended as follows:
31-15-5. (1) The governing authority of any political subdivision may, without an election on the question of the issuance thereof, issue the bonds of such subdivision for the purpose of refunding any bonded indebtedness of such subdivision now or hereafter outstanding, whether such bonded indebtedness shall at the time of such refunding be due or to mature in the future, and regardless of whether the issuance of such refunding bonds shall create a total bonded indebtedness of such subdivision in excess of the then existing statutory limitation of debt.
(2) The board of supervisors of any county may issue the bonds of any county or separate road district, and the local school governing board of any school district may issue bonds of the school district for the purpose of refunding the outstanding bonded indebtedness of any such county or district when the same shall mature, whether now due or to become due in the future without notice and without an election on the question of the issuance of same, regardless of whether or not the issuance of such bonds shall create a total bonded indebtedness in excess of the then existing statutory limitation of debt.
(3) Such bonds may be issued in sufficient amount to pay and retire any of the then outstanding bonds, whether matured or to mature in the future, together with interest thereon to the date of the refunding bonds or to such prior date as the governing authority may determine; and such power to refund such bonds and interest may be exercised whenever funds available from taxes are not sufficient to pay such outstanding bonds and the interest thereon whenever they may mature.
SECTION 3. Section 31-15-7, Mississippi Code of 1972, is amended as follows:
31-15-7. Such refunding bonds shall bear such rate or rates of interest as may be determined by the governing body, not exceeding, however, six percent (6%) per annum payable semiannually; shall be in such denomination or denominations and form as may be determined by resolution or order of the governing authority; and shall be executed in behalf of the subdivision by such officer or officers thereof as may be determined in such resolution or order. The interest to accrue on such refunding bonds may, but is not required to be represented by coupons to be attached thereto, which may be executed by the facsimile signature of such officer or officers. All such bonds shall be made to mature serially, beginning not more than five (5) years and running not longer than thirty (30) years after their date, with not less than one percent (1%) of the total issue to mature each year during the first six (6) years, beginning in the fifth year, after the date of such bonds; not less than three percent (3%) of the said total issue to mature annually during the next succeeding ten-year period of the life of such bonds; and not less than five percent (5%) of said total issue to mature annually during the next succeeding ten-year period of the life of the bonds.
SECTION 4. Section 31-15-9, Mississippi Code of 1972, is amended as follows:
31-15-9. The resolution or order providing for the issuance of such bonds may reserve unto the governing authority the right to call in, pay, and redeem such bonds in the inverse order of their numbers and maturities, prior to the maturity date or dates thereof on any interest payment date. Whenever it is desired to exercise the aforesaid right, if reserved in such resolution or order, the governing authority shall cause written notice thereof to be delivered to the bank or office at which such bonds are payable. Such notice shall be so delivered not less than thirty (30) days prior to the interest payment date designated for the redemption of such bonds, after which date so designated, no further interest shall accrue on the bonds so called for redemption. Such refunding bonds may be sold for not less than par and accrued interest, or may be exchanged at par for bonds and interest coupons to be refunded thereby.
The board of supervisors may accept county bonds or separate road district bonds, and the local school governing board of a school district may accept school district bonds, as the case may be, at not more than par and interest accruing thereon at the rate fixed in the bonds to be refunded in exchange for said refunding county bonds, separate road district bonds or * * * school district bonds * * *, as the case may be. In accepting any bond in exchange for, or in payment of, any such refunding bond, no bond shall be accepted in such exchange or payment that is secured by the property of a smaller or different district, or other subdivision, than that securing the refunding bonds so issued.
SECTION 5. Section 31-15-11, Mississippi Code of 1972, is amended as follows:
31-15-11. All refunding bonds issued under the provisions of Sections 31-15-1 through 31-15-19 shall be general obligations of the political subdivisions issuing same, and the governing authority of such subdivision, or the levying authority of a school district as defined in Section 37-57-1, shall annually levy a tax upon all taxable property therein sufficient to pay the principal of and the interest on such bonds as the same matures and accrues. The full faith, credit, and resources of such subdivision shall be and are hereby irrevocably pledged to the payment of such bonds, both as to principal and interest.
SECTION 6. This act shall take effect and be in force from and after July 1, 2005.