MISSISSIPPI LEGISLATURE

2023 Regular Session

To: Municipalities

By: Senator(s) Michel

Senate Bill 2839

(As Passed the Senate)

AN ACT TO AMEND SECTIONS 19-31-9, 19-31-11, 19-31-17, 19-31-19, 19-31-25, 19-31-39, AND 19-31-41, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE MUNICIPALITY IN WHICH A PUBLIC IMPROVEMENT DISTRICT IS CONTAINED TO PERFORM THE DUTIES AND EXERCISE THE POWERS OF THE BOARD OF THE DISTRICT IN CERTAIN CIRCUMSTANCES; AND FOR RELATED PURPOSES.

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

     SECTION 1.  It is the intent of the Mississippi Legislature that, when the board of a public improvement district is unable or unwilling to perform its statutory duties or exercise its statutory powers, the governing authorities of the municipality in which the district is contained shall be authorized to perform such duties or exercise such powers in the place of the board.

     SECTION 2.  Section 19-31-9, Mississippi Code of 1972, is amended as follows:

     19-31-9.  (1)  The board of the district, or if necessary, the governing authorities of the municipality in which the district is contained, shall exercise the powers granted to the district pursuant to this chapter.  The board shall consist of five (5) members as otherwise provided in this section.  Each member shall hold office for an initial term of six (6) years and until a successor is chosen and qualifies.  The initial members of the board shall be residents of the state, and at least one (1) of the initial members shall be either a qualified voter within the district or an individual resident of the area immediately adjacent to the district.  Upon appointment or election, the board members shall elect a chair who shall conduct board meetings.

     (2)  (a)  Beginning six (6) years after the initial appointment of members, the position of each member whose term has expired shall be filled by a qualified voter of the district, elected by the qualified voters of the district.  There shall be an election of members every six (6) years from the date of the ordinance establishing the district.  The district manager shall determine the date and time of the election, which election must be held at least twenty (20) days before the anniversary date of the ordinance establishing the district.  If a contribution agreement exists, then the governing body of the public entity that is a party to the contribution agreement may appoint one (1) of the five (5) members to the board of the district at the time of the election in lieu of electing that member.

          (b)  Candidates must qualify in writing by submitting a "Statement of Intent," as prescribed in this paragraph, to the district manager thirty (30) days before the election.  The district manager shall prepare a ballot of all candidates qualified to run for office twenty-eight (28) days before the election.

Statement of Intent

     Candidate for (insert name of district) Public Improvement District

I, (name of candidate as it will appear on the ballot),

(mailing address, street address, city, state, zip code, telephone number of the candidate), certify that I am a qualified voter, as defined in Section 19-31-5, Mississippi Code of 1972, of the (insert name of public improvement district) Public Improvement District in the State of Mississippi; and I do hereby declare my candidacy for Board of the (insert name of public improvement district) Public Improvement District at the election to be held on (insert date of election).

____________________________________

(Signature of candidate) (Date)

Received by _____________________________________________

(Signature) (Title) (Date)

          (c)  Notice of the election shall be announced at a public meeting of the board at least ninety (90) days before the date of the election and shall be published once a week for two (2) consecutive weeks in a newspaper which is in general circulation in the area of the district, the last day of such publication to be not fewer than fourteen (14) days nor more than twenty-eight (28) days before the election.  In addition, notice of the election shall be sent by United States first-class mail, not fewer than fourteen (14) days before the election, to all qualified voters at their last-known address as shown on the tax rolls.  Instructions on how all qualified voters may participate in the election, along with sample proxies, shall be provided as part of the notice required by this paragraph, and the location, date and time of the election shall be included on all instructions and notices. 

          (d)  Each qualified voter shall be entitled to cast only one (1) ballot to elect each of the board members, regardless of the number of parcels owned by that voter within the district.  Parcels may not be aggregated for determining the number of ballots allowed to be cast by a qualified voter.  A list of qualified voters in the form of a voter roll must be kept current by the district manager and deemed final thirty (30) days before the election. 

          (e)  A qualified voter may vote in person or by proxy in writing.  A vote cast by proxy must be submitted at or within fourteen (14) days before the election and must be submitted in the form prescribed in this section.  Each proxy must be signed

by the qualified voter for which the vote is cast and must contain the typed or printed name of the individual who signed the proxy and the street address, legal description of the property or the property's tax parcel identification number.  The signature on a proxy need not be notarized.  All votes cast by proxy must be reflected in the voter roll.

Proxy for Election

(Insert name of district) Public Improvement District

I,____________________________________, (name of qualified voter); _________________________________________________(street address); _____________________________________________ (legal description); ______________________________ (tax parcel identification number).

[NOTE:  To be considered, this proxy must contain at least one (1) of either:  the street address; legal description; or tax parcel identification number.]

     1.  Do constitute and appoint ______________________ _____________________ (name), attorney and agent for me, and in my name, place and stead, to vote as my proxy for the election of members of the Board of Directors of the (name of district) Public Improvement District on (insert date), at the (insert voting location/facility name with street address); OR (only choose one)

     2.  Do hereby cast my vote for: ______________________________________ [print or type name of person being voted for – PLEASE NOTE THAT YOUR VOTE MUST BE FOR A QUALIFIED VOTER (AS DEFINED IN MISSISSIPPI CODE SECTION 19-31-5) OF THE DISTRICT.  A QUALIFIED VOTER MEANS ANY LANDOWNER OF THE DISTRICT WHO IS AT LEAST EIGHTEEN (18) YEARS OF AGE OR AN AUTHORIZED REPRESENTATIVE OF THE LANDOWNER WHO IS ALSO AT LEAST EIGHTEEN (18) YEARS OF AGE.] to be elected as a member of the Board of Directors of the (name of district) Public Improvement District for a term beginning (date of term) and ending six (6) years from that date or until a successor is chosen.

     I understand that I have the right to revoke this proxy at any time before the election.  I understand that I have the right to be present in person at the election.

     I have executed this proxy on (insert date).

__________________________________

(Printed Name of Qualified Voter)

__________________________________

(Signature of Qualified Voter)

          (f)  A qualified voter may cast only one (1) vote for each of the five (5) board member positions.  When a qualified voter casts a vote for the same person more than once, only one (1) of the votes cast for that person will be counted.  When a qualified voter casts more votes to elect board members than he or she is entitled to cast, all votes are invalid, and the qualified voter is deemed to have voted for none of them.  When a qualified voter casts fewer votes to elect board members than he or she is entitled to cast, all votes cast by the qualified voter must be counted, but no votes shall be counted more than once.

          (g)  If a board member dies, resigns or otherwise is prevented from serving as a board member, the board of the district shall appoint a member to fill the remainder of the board member's term.  If no qualified voter is willing to serve on the board of the district, the governing body that established the district shall appoint members as necessary to fill any vacancy for the remainder of the term.

     (3)  Members of the board shall be known as directors and, upon entering into office, shall take an oath of office.  They shall hold office for the terms for which they were elected or appointed and until their successors are chosen and qualified.  If during the term of office, a vacancy occurs, the remaining members of the board shall fill the vacancy by an appointment for the remainder of the unexpired term.

     (4)  A majority of the members of the board constitutes a quorum for the purposes of conducting its business and exercising its powers and for all other purposes.  Action taken by the district shall be upon a vote of a majority of the members present unless general law or a rule of the district requires a greater number.  If a quorum cannot be obtained in a board meeting, the governing body that established the district shall appoint members as necessary to replace any board member missing three (3) consecutive meetings.

     (5)  As soon as practicable after each election or appointment, the board shall organize by electing one (1) of its members as chair and by electing a secretary, who need not be a member of the board, and such other officers as the board may deem necessary.

     (6)  The board shall keep a permanent minute book in which shall be recorded minutes of all meetings, resolutions, ordinances, proceedings and all corporate acts.

     (7)  Members of the board may receive per diem compensation for services in an amount as provided under Section 25-3-69, and shall be entitled to expenses necessarily incurred in the discharge of their duties in accordance with Section 25-3-41.  Any payments for compensation and expenses shall be paid from funds of the district.

     SECTION 3.  Section 19-31-11, Mississippi Code of 1972, is amended as follows:

     19-31-11.  (1)  The board, or if necessary, the governing authorities of the municipality in which the district is contained, shall employ and fix the compensation of a district manager.  The district manager shall have charge and supervision of the works of the district and shall be responsible for (a) preserving and maintaining any improvement or facility constructed or erected pursuant to the provisions of this chapter, (b) maintaining and operating the equipment owned by the district, and (c) for performing such other duties as may be prescribed by the board.  The district manager may hire or otherwise employ and terminate the employment of such other persons including, without limitation, professional, supervisory and clerical employees, as may be necessary as authorized by the board.  The compensation and other conditions of employment of the officers and employees of the district shall be as provided by the board.  The district manager, a board member or district employee may be a stockholder, officer or employee of a landowner.

     (2)  The board, or if necessary, the governing authorities of the municipality in which the district is contained, shall designate a person who is a resident of the state as treasurer of the district, who shall have charge of the funds of the district.  Such funds shall be disbursed only upon the order or pursuant to the resolution of the board or municipality by warrant or check countersigned by the treasurer and by such other person as may be authorized by the board.  The board or municipality may give the treasurer such other or additional powers and duties as the board may deem appropriate and may fix his or her compensation.  The board or municipality may require the treasurer to give a bond in such amount on such terms, and with such sureties as may be deemed satisfactory to the board to secure the performance by the treasurer of his or her powers and duties.  The financial records of the district shall be audited by an independent certified public accountant at least once a year.

     (3)  The board or municipality may select as a depository for its funds any qualified public depository as provided for under Sections 27-105-301 through 27-105-371.

     SECTION 4.  Section 19-31-17, Mississippi Code of 1972, is amended as follows:

     19-31-17.  (1)  The district shall have, and the board may exercise, the power:

          (a)  To sue and be sued in the name of the district.

          (b)  To adopt and use a seal and authorize the use of a facsimile thereof.

          (c)  To acquire, by purchase, gift, devise or otherwise, and to dispose of, real and personal property.

          (d)  To dedicate, donate or convey in any manner, real and personal property under such terms and conditions as may be agreed upon, to:

              (i)  Nonprofit entities that have been issued a certificate of public convenience and necessity by the Public Service Commission; or

              (ii)  Governmental entities.

          (e)  To make and execute contracts and other instruments necessary or convenient to the exercise of its powers.

          (f)  To contract for the services of consultants to perform planning, engineering, financial, legal, or other appropriate services of a professional nature.

          (g)  To borrow money and accept gifts; to apply for and use grants or loans of money or other property from the United States, the state, a unit of local government or any person or any organization for any district purposes and enter into agreements required in connection therewith; and to hold, use and dispose of such monies or property for any district purposes in accordance with the terms of the gift, grant, loan or agreement relating thereto.

          (h)  To adopt bylaws prescribing the powers, duties and functions of the officers of the district, the conduct of the business of the district and the maintenance of records.

          (i)  To maintain an office at such place or places as it may designate within a county in which the district is located, which office must be reasonably accessible to the landowners. Meetings shall be held at such office or such other location as may be designated by the board.

          (j)  To hold, control and acquire by donation, or purchase or dispose of, any public servitudes or dedications to public use and to make use of such servitudes or dedications for any of the purposes authorized by this chapter.

          (k)  To lease as lessor or lessee to or from any person, firm, corporation, association, or body public or private, any projects of the type that the district is authorized to undertake and facilities or property of any nature for the use of the district to carry out any of the purposes authorized by this chapter.

          (l)  To borrow money and issue bonds, certificates, warrants, notes or other evidence of indebtedness as provided in this chapter; to levy such special assessments as may be authorized; and to charge, collect and enforce fees and other user charges.

          (m)  To acquire property within the boundaries of the district for public use through condemnation, exercised pursuant to Sections 11-27-1 through 11-27-51, subject to the approval of the governing body of the county and/or the municipality that enacted the ordinance establishing the district.

          (n)  To raise, by user charges or fees authorized by resolution of the board, amounts of money which are necessary for the conduct of the district activities and services; to finance projects and to pledge user charges and fees for the payment of any bond or other indebtedness of the district; and to enforce the receipt and collection of user charges and fees in the manner prescribed by resolution not inconsistent with law.

          (o)  To cooperate, contract, or enter into contribution agreements with other governmental agencies, including the governing bodies of counties and/or municipalities, as may be necessary, convenient, incidental or proper in connection with any of the powers, duties or purposes authorized by this chapter.

          (p)  To determine, order, levy, impose, collect and enforce special assessments pursuant to this chapter.

          (q)  To enter into interlocal cooperative agreements pursuant to Sections 17-13-1 through 17-13-17.

          (r)  To covenant with the holders of assessment bonds or other obligations that it will diligently and faithfully enforce and collect all the special assessments, charges and fees, and interest and penalties thereon.

          (s)  To exercise all of the powers necessary and proper in connection with any of the powers, duties or purposes authorized by this chapter.

     (2)  In the event that the board is unable or unwilling to perform its duties or exercise its powers under this chapter, the governing authorities of the municipality in which the district is contained shall be authorized to exercise all of the powers enumerated in subsection (1)(a) through (s) of this section in addition to all of the powers necessary and proper in connection with any of the powers, duties or purposes authorized by this chapter.

     SECTION 5.  Section 19-31-19, Mississippi Code of 1972, is amended as follows:

     19-31-19.  The district shall have, and the board, or if necessary, the governing authorities of the municipality in which the district is contained, may exercise, any or all of the special powers relating to public improvements and community facilities authorized by this chapter.  The district or municipality shall have the power to finance, fund, establish, acquire, construct or reconstruct, enlarge or extend, equip, operate and maintain systems, facilities, projects and basic infrastructures that are within the district, or which benefit or serve the district, for the following:

          (a)  Water management and control for the lands within the district and connection of some or any of such facilities with roads and bridges;

          (b)  Water supply, sewer and wastewater management, reclamation and reuse, or any combination thereof;

          (c)  Bridges or culverts that may be needed across any drain, ditch, canal, floodway, holding basin, excavation, public highway, tract, grade, fill or cut and roadways over levees and embankments;

          (d)  District roads equal to or exceeding the specifications of the county in which such district roads are located, including street lights and the location of underground utilities;

          (e)  Parks and facilities for indoor and outdoor recreational, cultural and educational uses, and other tourism related infrastructure and facilities;

          (f)  Fire prevention and control, including fire stations, water mains and plugs, fire trucks, and other vehicles and equipment;

          (g)  Security, except that the district may not exercise any police power, but may contract with the appropriate local governmental agencies for an increased level of such services within the district boundaries;

          (h)  Waste collection and disposal;

          (i)  Systems, as defined in Section 21-27-11(b); and

          (j)  Projects, as defined in this chapter.

     SECTION 6.  Section 19-31-25, Mississippi Code of 1972, is amended as follows:

     19-31-25.  Any pledge made by the district or the governing authorities of the municipality in which the district is contained, when such governing authority is acting in the place of the district, shall be valid and binding from time to time when the pledge is made without the need for physical delivery of any pledged property.  The money, assets or revenues of the district so pledged and thereafter received by the district shall be immediately subject to the lien of such pledge and shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the district, irrespective of whether such parties have notice thereof.  Neither the resolution nor any other instrument by which a pledge is created need be recorded or filed in order to establish and perfect a lien or security interest in the property so pledged by the district.

     SECTION 7.  Section 19-31-39, Mississippi Code of 1972, is amended as follows:

     19-31-39.  (1)  The district, or if necessary, the governing authorities of the municipality in which the district is contained, may prescribe, fix, establish and collect rates, fees, rentals or other charges for the facilities and services furnished by the district, within the limits of the district, including, but not limited to, recreational facilities, water management and control facilities and water and sewer systems.  The district may also recover the costs of making connection with any district facility or system and provide for reasonable penalties against any user or property for any such rates, fees, rentals or other charges that are delinquent.

     (2)  No such rates, fees, rentals or other charges for any of the facilities or services of the district may be fixed until after a public hearing at which all the users of the proposed facility or services shall have an opportunity to be heard concerning the proposed rates, fees, rentals or other charges.  Notice of such public hearing setting forth the proposed schedule of rates, fees, rentals and other charges shall be published in a newspaper having general circulation in each county where the district is located once at least ten (10) days before such public hearing.

     SECTION 8.  Section 19-31-41, Mississippi Code of 1972, is amended as follows:

     19-31-41.  The district, or if necessary, the governing authorities of the municipality in which the district is contained, shall provide by ordinance with respect to nonpayment, delinquency charges and discontinuance of service for water and sewer services provided by the district.

     SECTION 9.  This act shall take effect and be in force from and after July 1, 2023.