House Bill 4117

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF STARKVILLE, MISSISSIPPI, TO REQUEST THAT THE PUBLIC SERVICE COMMISSION MAKE CERTAIN INQUIRY AS TO WHETHER ANY RURAL WATER ASSOCIATION, WHICH PROVIDES WATER SERVICE TO STARKVILLE CITY RESIDENTS, IS PROVIDING SUCH SERVICE IN AN ADEQUATE MANNER; TO PROVIDE THAT IF A DETERMINATION IS MADE THAT WATER SERVICE IS NOT ADEQUATELY PROVIDED, THEN A RURAL WATER ASSOCIATION SHALL BE REQUIRED TO SELL AND CONVEY ITS WATER ASSETS SO THAT WATER CAN BE ADEQUALITY SUPPLIED TO STARKVILLE CITY RESIDENTS; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this act:

(a) "City" means the City of Starkville, Mississippi.

(b) "Rural water association" means any nonprofit rural water association that holds a certificate of public convivence and necessity to provide water to city residents within the municipal boundaries of the city.

SECTION 2. (1) The governing authorities of the City of Starkville, Mississippi, are authorized and empowered, to request the Public Service Commission ascertain whether any rural water association located within the corporate limits of the city has the ability to adequately provide water service within the city. Notwithstanding the provisions of Sections 21-25-51 through 21-25-59, Mississippi Code of 1972, in the event that a determination is made, pursuant to subsection (1) of this section, that a rural water association is not able to provide adequate water service within the city limits, then the city is authorized to require such water association to enter to a negotiated agreement for the sell of the association's water assets to the city, and the association shall be compensated as provided under this act.

(2) In the event a determination is made that a rural water association is unable to provide adequate water service, the rural water association shall sell and convey any water assets to the city that the city deems necessary for it to supply its residents with adequate water. These assets shall include, without limitation, main water lines, service lines to residential buildings, meters, and any other assets located are owned by a rural water association and used for the purpose of delivering water, which the city has determined are necessary or useful to provide its residents with water. The city shall pay the rural water association fair market value for such assets, which value shall be determined by an independent appraisal conducted by an appraiser of the city's choosing.

SECTION 3. This act shall take effect and be in force from and after is passage.