MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Conservation and Water Resources; Ways and Means

By: Representative Ellington

AN ACT TO AUTHORIZE THE PEARL RIVER BASIN DEVELOPMENT DISTRICT TO CREATE FLOOD CONTROL DISTRICTS WITHIN ITS BOUNDARIES; TO DEFINE CERTAIN TERMS; TO REQUIRE THE PEARL RIVER BASIN DEVELOPMENT DISTRICT TO ADOPT A RESOLUTION DETERMINING THE NEED FOR A FLOOD CONTROL DISTRICT AND TO SPECIFY THE MINIMUM CONTENTS OF THAT RESOLUTION; TO REQUIRE A REFERENDUM IN THE PROPOSED FLOOD CONTROL DISTRICT BEFORE CREATION OF THE DISTRICT; TO REQUIRE A THREE-FIFTHS VOTE OF QUALIFIED ELECTORS TO AUTHORIZE CREATION OF A FLOOD CONTROL DISTRICT; TO PROVIDE FOR APPOINTMENT OF A BOARD OF DIRECTORS OF A FLOOD CONTROL DISTRICT, TO SPECIFY TERMS OF APPOINTMENT, TO REQUIRE AN OATH AND TO PROVIDE FOR PER DIEM AND EXPENSES OF THE BOARD OF DIRECTORS; TO SPECIFY THE POWERS AND DUTIES OF THE BOARD OF DIRECTORS; TO AUTHORIZE THE BOARD OF DIRECTORS TO GET A WATER APPROPRIATION PERMIT FROM THE PERMIT BOARD; TO AUTHORIZE THE BOARD OF DIRECTORS OF A FLOOD CONTROL DISTRICT TO ISSUE STATE TAX-EXEMPT REVENUE BONDS AND TO PLACE CERTAIN REQUIREMENTS ON THE ISSUANCE OF THOSE BONDS; TO REQUIRE AN ELECTION BEFORE THE ISSUANCE OF ANY REVENUE BONDS BY BOARD OF DIRECTORS OF THE FLOOD CONTROL DISTRICT; TO REQUIRE A MAJORITY VOTE IN THAT ELECTION TO AUTHORIZE ISSUANCE OF THE REVENUE BONDS; TO AUTHORIZE THE BOARD OF DIRECTORS TO IMPOSE AN AD VALOREM TAX ON PROPERTY WITHIN THE FLOOD CONTROL DISTRICT TO PAY THE BONDED INDEBTEDNESS AND EXPENSES OF THE DISTRICT; TO AUTHORIZE THE FLOOD CONTROL DISTRICT TO BORROW FUNDS TO DEFER PRELIMINARY EXPENSES OF THE DISTRICT; TO AUTHORIZE AGREEMENTS AND COOPERATION WITH OTHER GOVERNMENTAL ENTITIES; TO BRING FORWARD SECTIONS 51-11-21, 51-11-23, 51-11-25, 51-11-27, 51-11-29, 51-11-31, 51-11-33, AND 51-11-35, MISSISSIPPI CODE OF 1972; TO AMEND SECTION 51-11-13, MISSISSIPPI CODE OF 1972, TO REVISE THE POWERS AND DUTIES OF THE PEARL RIVER BASIN DEVELOPMENT DISTRICT TO AUTHORIZE THE CREATION OF FLOOD CONTROL DISTRICTS; AND FOR RELATED PURPOSES. 

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

SECTION 1. For purposes of this article, the following words shall have the meanings ascribed in this section, unless the context clearly indicates otherwise:

(a) "District" means any flood control district created under this act.

(b) "Project" means a general plan for and purposes of the flood and drainage control improvements.

(c) "Project area" means the physical location of any levees, channels, drains, or related facilities, the area which is necessary to be included in the district, and the area of the district as shown on the maps or plats provided under Section 2 of this act.

(d) "Related facilities" mean any facilities which are correlated with or used in connection with the project.

SECTION 2. (1) The board of directors of the Pearl River Basin Development District, by resolution duly entered on its minutes, may create a flood control district from one or more counties or municipalities, or both, lying wholly within the Pearl River Basin Development District.

(2) Before creating a flood control district, the board of directors of the Pearl River Basin Development District shall adopt a resolution making a determination that there is a need for the creation of a flood control district. This resolution shall specify at a minimum the following:

(a) The proposed name of the district and the proposed areas to be included in the district, including a description of all proposed areas to be benefited by or protected from overflow or flood waters by any contemplated flood or drainage control improvements and any other areas which are necessary to be included in the district;

(b) Information available from any reports or studies regarding the engineering feasibility of constructing flood or drainage control improvements and related facilities along any river or its tributaries to benefit the district or protect proposed areas within the district from overflow or flood waters;

(c) The necessity and desirability for the construction of those improvements or facilities; and

(d) A general description of the purposes of any contemplated improvements of facilities, a general description of a plan including the proposed areas to be protected by the flood or drainage control improvements or related facilities or otherwise affected by those improvements or facilities, and maps or plats showing the general location of any contemplated flood and drainage control improvements and related facilities.

(3) After the board of directors of the Pearl River Basin Development District has adopted the resolution making the determination of need for the flood control district, the board of directors within ninety (90) days after adoption of that resolution shall hold a referendum within the proposed district and cause due notice of that referendum to be given. In the referendum, all qualified electors residing in the proposed flood district may vote. The ballots used in the referendum shall have printed on the ballot a brief statement of specifying the name, proposed areas included in the proposed flood control district and purpose of the proposed flood control district and the words "FOR CREATION OF THE FLOOD CONTROL DISTRICT" and "AGAINST CREATION OF THE FLOOD CONTROL DISTRICT". Each voter shall vote by placing a cross (X) opposite the voter's choice on the proposition.

(4) The board of directors of the Pearl River Basin Development District shall publish the results of the referendum held under this section. If three-fifths (3/5) of the qualified electors of the proposed flood control district who vote in the referendum vote for the creation of the flood control district, then the board of directors of the Pearl River Basin Development District shall adopt a resolution creating the flood control district as provided in this act; otherwise, the board shall not adopt a resolution creating the flood control district.

SECTION 3. (1) All powers of a flood control district shall be exercised by a board of directors, to be composed of the following:

(a) If the flood control district lies wholly within the limits of one (1) municipality, the governing authority of that municipality shall appoint two (2) directors and the board of directors of the Pearl River Basin Development District shall appoint one (1) director.

(b) If the flood control district is comprised of lands lying partly in a municipality and partly outside the limits of a municipality but wholly in one (1) county, the governing authority of the municipality shall appoint two (2) directors, the board of supervisors of the county in which the municipality lies shall appoint two (2) directors and the board of directors of the Pearl River Basin Development District shall appoint one (1) director.

(c) If the flood control district is comprised of lands lying, in whole or in part, in one or more municipalities which are in existence at the time of the creation of that district, and in one or more counties and not falling within the description of (a) or (b) of this subsection, the governing authority of each municipality shall appoint two (2) directors, the board of supervisors of each county in which part of the lands of the flood control district lie shall appoint two (2) directors and the board of directors of the Pearl River Basin Development District shall appoint one (1) director. If new municipalities are incorporated within the flood control district after the organization of that district, the governing authority of each new municipality shall appoint two (2) directors of the flood control district.

Each director appointed under this section, except the director appointed by the board of directors of the Pearl River Basin Development District, shall be either a resident or property owner in the district for which the director is appointed.

(2) Each director shall take and subscribe to the oath of office required by Section 268 of the Constitution of the State of Mississippi, before a chancery clerk, that the director will faithfully discharge the duties of the office. The oath shall be filed with the chancery clerk.

(3) Each director shall receive a per diem as provided under Section 25-3-69 for attending each meeting of the board and for each day actually spent in attending to the necessary business of the flood control district and shall receive reimbursement for actual expenses, including travel expenses, as provided in Section 25-3-41 upon express authorization of the board.

(4) The board of directors shall annually elect from its number a president and a vice president of the flood control district and any other officers deemed necessary. The president shall be the chief executive officer of the flood control district and the presiding officer of the board, and shall have the same right to vote as any other director. The vice president shall perform all the duties and exercise all powers conferred by this article upon the president when the president is absent or fails or declines to act, except the president's right to vote. The board shall also appoint a secretary and a treasurer who may or may not be members of the board, and it may combine these offices. The treasurer shall give bond in the sum of not less than Fifty Thousand Dollars ($50,000.00), as set by the board of directors, and each director shall give bond in the sum of not less than Ten Thousand Dollars ($10,000.00). The premiums on the bonds shall be an expense of the district. The condition of each bond shall be that the treasurer or director will faithfully perform all duties of office and account for all money which shall come into the treasurer's or director's custody.

(5) The initial term of the members of the board of directors of the flood control district shall be one (1) member shall serve for one (1) year, one (1) member shall serve for two (2) years, and one (1) member shall serve for three (3) years. At the initial meeting of the board of directors, the members shall determine by lot which of their members shall serve for only one (1), two (2), and three (3) years. After the initial term, each member shall hold office for a term of six (6) years or until a successor is appointed and qualified.

SECTION 4. Each flood control district, through its board of directors, may:

(a) Impound, divert, change, alter, or otherwise control overflow water and the surface water of any river or its tributaries within the project area within its district at any place or places and in any amount as approved by Permit Board, by the diversion of rivers or their tributaries, by the construction of a dam or dams, a levee or levees, a channel or channels, reservoir or reservoirs, works, pumps, plants, and any other necessary or useful related facilities contemplated or described as a part of the project within the district. The district may also construct or otherwise acquire within the project area all works, plants, or other facilities necessary or useful to the project for carrying out this article.

(b) Cooperate with the United States of America in the construction of flood and drainage control improvements, for the protection of property, controlling floods, reclaiming overflow lands, and preventing overflows in this state; and for the purpose of operating and maintaining dams, reservoirs, channels, levees, pumps, and other flood control works and improvements which may be constructed by the United States of America or any department or agency of the United States of America.

(c) Furnish, without cost to the United States of America, all lands, easements, and rights-of-way necessary for the construction of the project or any part thereof, if the project or any part of the project is to be constructed by the United States of America or any agency or department of the United States of America; hold and save the United States free from damages due to the construction; make, without cost to the United States, any changes, alterations, or relocation of any public utilities, roads, highways, bridges, buildings, or local betterment made necessary by the work; provide assurances to the United States of America that encroachment on the levees, improved channels, and pond areas will not be permitted; maintain and operate the improvements after completion thereof in accordance with regulations prescribed by the United States of America or any agency or department of the United States of America; contribute in cash to the United States of America, or any agency or department of the United States of America, any sums of money as shall be required by the United States of America, or any agency or department of the United States of America, as a condition for the construction of any improvements by the United States or any agency or department; and generally, without being limited by any of the above, carry out and faithfully perform any obligations required of the district as a condition to the construction of any flood control work, project, or improvements by the United States of America, or any agency or department, and to give assurances to the United States of America that the district will so do.

(d) Construct, acquire, and develop all facilities within the project area deemed necessary or useful.

(e) Prevent or aid in the prevention of damage to person or property from the waters of any river or any of its tributaries.

(f) Acquire by purchase, lease, gift, or in any other manner (otherwise than by condemnation) and to maintain, use, and operate any and all property of any kind, real, personal, or mixed, or any interest in property within the project area within the district, necessary for the project and convenient to the exercise of the powers, rights, privileges, and functions conferred upon the district by this article.

(g) Acquire by condemnation any and all property of any kind, real, personal, or mixed, or any interest in property within the project area within the district, necessary for the project and the exercise of the powers, rights, privileges, and functions conferred upon the district by this article, according to the procedure provided by law for the condemnation of lands or other property taken for rights-of-way or other purposes by railroads, telephone, or telegraph companies. For the purposes of this article, the right of eminent domain of the flood control district shall be superior and dominant to the right of eminent domain of railroad, telegraph, telephone, gas, power, and other companies or corporations, and shall be sufficient to enable the acquisition of county roads, state highways, or other public property in the project area, and the acquisition, or relocation, of the utility property in the project area.

The amount and character of interest in land, other property, and easements to be acquired shall be determined by the board of directors. Their determination shall be conclusive and shall not be subject to attack in the absence of manifold abuse of discretion or fraud on the part of the board in making that determination. However,

(i) In acquiring lands, either by negotiation or condemnation, the district shall not acquire minerals or royalties within the project area, sand and gravel being considered as minerals within the meaning of this section; and

(ii) No person or persons owning the mining rights, drilling rights, or the right to share in production shall be prevented from exploring, developing, or producing sand, gravel, oil, or gas with necessary rights-of-way for ingress, egress, pipe lines, and other means of transporting those products by reason of the inclusion of any lands or mineral interests within the project area, whether below or above the water line, but any activities shall be under reasonable regulations adopted by the board of directors to adequately protect the project; and

(iii) In drilling and developing, those persons are vested with a special right to have any mineral interest integrated and their lands developed in a drilling unit or units as the State Oil and Gas Board shall establish after due consideration of the rights of all of the owners to be included in the drilling unit.

(h) Require the necessary relocation of bridges, roads, and highways, railroad, telephone, and telegraph lines and properties, electric power lines, gas pipe lines and mains and facilities in the project area, or to require the anchoring or other protection of any of these, provided due compensation is first paid the owners of the infrastructure, utilities or facilities or agreement is had with the owners regarding the payment of the cost of the relocation. The district may also acquire easements or rights-of-way in or outside of the project area for the relocation of any road, highway, railroad, telephone, and telegraph lines and properties, electrical power lines, gas pipe lines and mains and facilities, and convey the easements or rights-of-way to the owners in connection with the relocation as a part of the construction of the project.

(i) Overflow and inundate any public lands and public property, including sixteenth section lands and in lieu lands, within the project area.

(j) Construct, extend, improve, maintain, and reconstruct, to cause to be constructed, extended, improved, maintained, and reconstructed, and use and operate any facilities within the project area necessary or convenient to the project and to the exercise of the powers, rights, privileges, and functions.

(k) Sue and be sued in its corporate name.

(l) Adopt, use, and alter a corporate seal.

(m) Adopt bylaws for the management and regulation of its affairs.

(n) Employ engineers, attorneys, fiscal agents, advisors, and all necessary agents and employees to properly finance, construct, operate, and maintain the project and the facilities of the district and carry out this article, and pay reasonable compensation for those services.

(o) Contract and execute instruments necessary or convenient to the exercise of the powers, rights, privileges, and functions conferred upon it by this article.

(p) Conduct or cause to be conducted surveys and engineering investigations relating to the project, or related projects, for the information of the district to facilitate the accomplishment of the purposes for which it is created.

(q) Apply for and accept grants from the United States of America, or any corporation or agency created or designated by the United States of America, and ratify and accept applications made by voluntary associations to those agencies for grants to construct, maintain, or operate any project or projects which may be undertaken or contemplated by the district.

(r) Perform any other acts or things necessary or convenient to the exercising of the powers, rights, privileges, or functions conferred upon it by this article or any other law.

(s) Contract for the issuance of bonds as may be necessary to insure the marketability of those bonds.

(t) Operate and maintain within the project area, with the consent of the governing body of any municipality, town or county located within the district, any works, plants, or facilities of that municipality, town, or county deemed necessary or convenient to the accomplishment of the purposes for which the district is created.

(u) Subject to the provisions of this article, from time to time to lease, sell, or otherwise dispose of any property of any kind, real, personal, or mixed, or any interest in property within the project area or acquired outside the project area as authorized in this article, for the purpose of furthering the business of the district.

(v) Make any changes in location of levees, channels, drains, or related facilities, or other changes, alterations, or modifications in the plan filed with the petition creating the district, which may be necessary for the accomplishment of the general purposes of the district.

SECTION 5. The district may obtain through appropriate hearings an appropriation permit or permits from the Permit Board, as provided in Section 51-3-31.

SECTION 6. The board of directors of the district may issue bonds of the district to pay the costs of creating the district, acquiring, owning, constructing, operating, repairing, and maintaining the projects and works specified in this act, including related charges, interest during construction, engineering, legal, and other expenses incidental to and necessary for the foregoing, or for the carrying out of any power conferred by this article. The board of directors may issue the bonds at any time and in any amount provided for by resolution of the board of directors. After the issuance and sale of the amount of bonds first voted in the district under this article, no additional bonds shall be voted, issued, or sold under this article up to an amount which, when added to the amount of outstanding bonds, will exceed twenty per cent (20%) of the assessed value of all taxable property within the district, according to the then last completed state and county assessment for taxation. All bonds so issued by the district shall be secured solely by the pledge of the avails of the ad valorem tax levy provided for in this article. The bonds shall not constitute general obligations of the State of Mississippi or of the counties or municipalities comprising the district. The bonds shall not be secured by a pledge of the full faith, credit, and resources of the state or of any counties or municipalities. Bonds of the district shall not be included in computing any present or future debt limit of any county or municipality in the district under any present or future law.

SECTION 7. Before issuing bonds for any of the purposes authorized in this act, the board of directors of the district shall declare its intention to issue the bonds by resolution spread upon its minutes, fixing in the resolution the maximum amount of bonds, the purpose for which they are to be issued, the date upon which an election shall be held in the district, and the place or places at which the election shall be held. A certified copy of the resolution shall be furnished to the county election commissioners of each county having lands lying in the district, and the county election commissioners shall conduct such elections. Notice of the election shall be signed by the secretary of the board of directors of the district and shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper published in each county in which any part of the district lies, and in each municipality lying within the district. The first publication of the notice shall be made not less than twenty-one (21) days before the date fixed for that election, and the last publication shall be made not more than seven (7) days before that date. If no newspaper is published in any municipality, then the notice shall be given by publishing the notice for the required time in some newspaper having a general circulation in the municipality and published in the same or an adjoining county and, in addition, by posting a copy of the notice for at least twenty-one (21) days before the election in at least three (3) public places in the municipality.

SECTION 8. The elections shall be held, as practicable, in the same manner as elections are held in county bond elections. In conducting the elections, the flood control district shall be divided into election districts in accordance with existing election districts created under Section 23-5-9. There shall be one (1) voting place in each election district and that voting place shall be both within the election district and within the flood control district. The election commissioners shall furnish at each voting place a list of the qualified electors residing in the flood control district who are also qualified electors in the election district. In the election, all qualified electors residing in the flood control district may vote. The ballots used at the election shall have printed on the ballot a brief statement of the amount and purpose of the proposed bond issue and the words "FOR THE BOND ISSUE" and "AGAINST THE BOND ISSUE". Each voter shall vote by placing a cross (X) opposite the voter's choice on the proposition.

SECTION 9. When the results of the election on the question of the issuance of the bonds is canvassed by the county election commissioners and certified by them to the board of directors of the district, the board of directors shall determine and adjudicate whether or not a majority of the qualified electors who voted in the election voted in favor of the issuance of the bonds. Unless a majority of the qualified electors who voted in the election voted in favor of the issuance of the bonds, the bonds shall not be issued. If a majority of the qualified electors who vote in the election vote in favor of the issuance of the bonds, the board of directors may issue the bonds, either in whole or in part, within five (5) years from the date of the election or within five (5) years after the final favorable termination of any litigation affecting the issuance of the bonds, as the board of directors deems best.

SECTION 10. All bonds authorized by this article shall be negotiable instruments within the meaning of the Uniform Commercial Code, shall be lithographed or engraved and printed in two (2) or more colors to prevent counterfeiting, shall be in denominations of not less than One Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000.00), shall be registered as issued, and shall be numbered in a regular series from one (1) upward. Each bond shall specify on its face the purpose for which it was issued and the total amount authorized to be issued, shall be payable to bearer, and the interest to accrue on the bond shall be evidenced by proper coupons to be attached. The bonds bear interest at any rate or rates, but shall not bear a greater overall maximum interest rate to maturity than thirteen percent (13%) per year. The bonds shall mature annually in the amounts and at the times as shall be provided by the resolution of the board of directors. However, no bond shall have a longer maturity than forty (40) years from the date of issuance. The denomination, form, and place or places of payment of the bonds shall be fixed in the resolution of the board of directors of the district. The bonds shall be signed by the president and the secretary of the board of directors of the flood control district with the seal of the district affixed to the bonds. The coupons may bear only the facsimile signatures of the president and secretary. All interest accruing on the bonds shall be payable semiannually, except that the first interest coupon attached to any bond may be for any period not exceeding one (1) year.

If specified in the resolution directing the issuance of the bonds, the bonds may be called in, paid, or redeemed in inverse numerical order before maturity, upon not less than thirty (30) days notice to the paying agent or agents designated in the bonds, and at any premium as may be designated in the bonds. However, in no case shall any premiums exceed the maximum interest rate allowed on the bonds.

All bonds shall contain in substance a statement to the effect that they are secured solely by a pledge of the ad valorem tax levy provided in this article, they do not constitute general obligations of the State of Mississippi or of the counties or municipalities comprising the district, and they are not secured by a pledge of the full faith, credit and resources of the state or of the counties or municipalities.

All bonds authorized under this article shall be sold at public sale as provided by law. Except as otherwise provided in this section, no sale shall be at a price so low as to require the payment of interest on the money received therefor at more than the maximum interest rate allowed on the bonds computed with relation to the absolute maturity of the bonds, in accordance with standard tables of bond value, excluding from the computation the amount of any premium to be paid on redemption of any bonds before maturity.

This article shall be complete authority for the issuance of the bonds provided for in this article and no restriction or limitation otherwise prescribed by law shall apply.

SECTION 11. To provide funds for the payment of the principal of, interest on, and other charges in connection with bonds issued under this article, to provide funds for the annual expenses of operations of the district, and to provide funds for carrying out the purposes of this article, the district may levy annually a special tax upon all the taxable property within the flood control district on or before the first Monday of September of each year. The board of directors of the flood control district shall certify the levy to the boards of supervisors of the various counties in the district. The boards of supervisors of each county shall make the levy on each tract of land or other property in the flood control district according to the assessed valuation of that land or property. The taxes shall be collected by the tax collectors of the respective counties in the district, who shall deposit the collected taxes in the depository selected by the board of directors of the district. The tax collector shall receive a sum not greater than one-fifth of one percent (1/5 of 1%) of the amount collected for services in making the collection, and that fee shall be paid into the county general fund. The board of directors of the flood control district shall levy a tax sufficient to pay the bonds and the interest on the bonds as the bonds and interest become due, to pay for the annual expense of operation of the district, and to provide funds for carrying out this article.

SECTION 12. All bonds issued under this article shall be validated as provided in Sections 31-13-1 to 31-13-11. The services of the state's bond attorney may be employed in the preparation of any bond resolutions, forms, or proceedings as may be necessary, for which the state's bond attorney shall be paid a reasonable fee. The validation proceedings shall be instituted in the chancery court of the county having jurisdiction of the district, but notice of that validation proceedings shall be published at least two (2) times in a newspaper of general circulation and published in each of the counties comprising the district. The first publication of the notice in each case shall be made at least ten (10) days before the date set for the validation.

SECTION 13. All bonds of the district are declared to be legal and authorized investments for public funds of counties, cities, towns, school districts, banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, and for funds of the Mississippi Public Employees' Retirement System. The bonds are eligible to secure the deposit of any and all public funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Mississippi. The bonds are lawful and sufficient security for the deposits to the extent of their value, when accompanied by all unmatured coupons appurtenant thereto.

SECTION 14. The accomplishment of the purposes of this article are for the benefit of the people of this state and for the improvement of their properties and industries, therefore the district, in carrying out the purposes of this article, will be performing an essential public function and shall not be required to pay any tax or assessment on the project and related facilities or any part of the project or related facilities. The interest on the bonds issued under this article shall at all times be free from any taxation within this state. The state covenants with the holders of any bonds to be issued under this article that the district shall not be required to pay any taxes or assessments imposed by the state or any of its political subdivisions or taxing districts.

SECTION 15. The district may borrow funds for a period of not to exceed three (3) years and may renew and extend any loans from time to time, from any city, municipality, county, state, the United States of America, or any of its agencies or departments, or from any other source to pay the preliminary expenses of organizing the district or for carrying out any of the purposes of this article, including engineering services, attorneys fees and expenses, and other organization and administration expenses, on any terms of repayment as the board of directors shall determine. Any municipality or county in which any part of the district shall lie may advance or loan funds to the district for the purposes. Any such municipality or county making a loan or advance may borrow money for a period not to exceed three (3) years from the date of borrowing for the purpose of making a loan or advance. The board of directors may repay any advances from the proceeds of any bonds issued under this article. If any loan or advance is not paid at maturity of the bonds, the district may levy a tax on the lands of the district under this article for the repayment of the loan or advance.

SECTION 16. The board of directors of the district may negotiate and contract with the United States of America, the State of Mississippi, or any political subdivision of the state concerning the location, relocation, alteration, construction, changing, or closing of any highway, street, bridge, or roadway, or for the facilities appurtenant thereto, and all lands, easements, and rights-of-way necessary.

SECTION 17. The district may act jointly with political subdivisions of the state, its agencies, and commissions and instrumentalities of the state, with other states, with municipalities, with the United States of America, and agencies, departments, and instrumentalities of the United States of America, in the performance of the purposes and services authorized in this article, upon any terms as may be agreed upon by the directors.

SECTION 18. Section 51-11-21, Mississippi Code of 1972, is brought forward as follows:

51-11-21. The Board of Directors of the Pearl River Basin Development District is hereby authorized and empowered to borrow money or issue bonds of the district for the purpose of paying the cost of acquiring, owning, constructing, operating, repairing, and maintaining the projects and works provided for in this chapter, and related facilities, including all financing and financial advisory charges, interest during construction, engineering, architectural, legal, and other expenses incidental to and necessary for the foregoing or for the carrying out of any power conferred by this chapter.

Said board of directors is authorized and empowered to borrow money and issue bonds at such times and in such amounts as shall be provided for by resolution of said board of directors, not to exceed the limitation prescribed in Section 51-11-25. All such bonds so issued by the district shall be secured solely by a pledge of the net revenues which may now or hereafter come to the district and by the pledge of the avails of the two (2) mills ad valorem tax provided for in Section 51-11-33. Such bonds shall not constitute general obligations of the State of Mississippi or of the counties comprising said district and shall not be secured by a pledge of the full faith, credit, and resources of this state or of said counties. Bonds of the district shall not be included in computing any present or future debt limit of any county in such district under any present or future law. "Revenues" as used in Sections 51-11-1 through 51-11-51 shall mean all charges, rentals, tolls, rents, gifts, grants, avails of tax levies, contributions, monies, and all other funds coming into the possession of the district by virtue of the provisions of this chapter, except the proceeds from the sale of bonds issued hereunder. "Net revenues" as used in Sections 51-11-1 through 51-11-51 shall mean the revenues after payment of costs and expenses of administration of the district and of operation and maintenance of the projects and related facilities.

SECTION 19. Section 51-11-23, Mississippi Code of 1972, is brought forward as follows:

51-11-23. All such bonds provided for by Section 51-11-21 are hereby declared to have all the qualities and incidents of negotiable instruments under the provisions of the Uniform Commercial Code, and in exercising the powers granted by this chapter the district shall not be required to and need not comply with the provisions of the Uniform Commercial Code. Such bonds may be issued at one (1) time or from time to time, in such amount or amounts, shall bear such date or dates, shall be of such denomination or denominations, shall be payable at such place or places, shall bear interest at such rate or rates not exceeding six percent (6%) per annum, shall mature in such amount or amounts and at such time or times, not exceeding forty (40) years from the date thereof, with or without option or prior payment, and shall be executed in such manner, all as may be determined by the board of directors of the Pearl River Basin Development District, as set out in the resolution or resolutions adopted by said board authorizing the issuance of said bonds. No interest payment due on any bond shall be evidenced by more than one (1) coupon, and supplemental coupons will not be permitted; the difference between the highest rate of interest specified for any bond issue shall not exceed the lowest rate of interest specified for the same bond issue by more than one and one-fourth percent (13%). Each interest rate specified in any bid must be a multiple of one-eighth of one percent (1/8 of 1%) or one-tenth of one percent (1/10 of 1%), and a zero rate of interest cannot be named. All interest accruing on such bonds so issued shall be payable semiannually, except that the first interest coupon attached to pay such bond may be for a period not exceeding one (1) year. Such bonds shall be signed by the president of the district, and the official seal of the district shall be affixed thereto, attested by the secretary of the district. The interest coupons to be attached to such bonds may be executed by the facsimile signatures of such officers. Whenever any such bonds shall have been signed by the officers herein designated to sign the bonds who were in office at the time of such signing but who may have ceased to be such officers prior to the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the signatures of such officers upon such bonds and coupons shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially signing such bonds had remained in office until the delivery of the same to the purchaser, or had been in office on the date such bonds may bear.

Such bonds may be called in, paid, and redeemed upon such terms and conditions as may be specified in the resolution authorizing the issuance of such bonds, on a date to be specified therein or on any interest payment date thereafter prior to maturity, upon not less than thirty (30) days' notice to the paying agent or agents designated in such bonds, and at such premium as may be designated in such bonds. In no case shall any premium exceed six percent (6%) of the face value of such bonds.

All such bonds shall contain in substance a statement to the effect that they are secured solely by a pledge of the net revenues of such district, as defined in Section 51-11-21, and that they do not constitute general obligations of the State of Mississippi or of the counties comprising said district, and are not secured by a pledge of the full faith, credit, and resources of this state or of such counties.

All such bonds as provided for herein shall be sold on sealed bids at public sale as provided by Section 31-19-25, of the Mississippi Code of 1972. No such sale shall be at a price so low as to require the payment of interest on the money received therefor at more than six percent (6%) per annum computed with relation to the absolute maturity of the bonds, in accordance with standard tables of bond values, excluding from such computation the amount of any premium to be paid on redemption of any bonds prior to maturity.

This chapter shall be full and complete authority for the issuance of the bonds provided for herein, and no restriction or limitation otherwise prescribed by law shall apply herein.

SECTION 20. Section 51-11-25, Mississippi Code of 1972, is brought forward as follows:

51-11-25. Bonds issued pursuant to Sections 51-11-1 through 51-11-51, shall not exceed Twenty-five Million Dollars ($25,000,000.00) in the principal amount.

SECTION 21. Section 51-11-27, Mississippi Code of 1972, is brought forward as follows:

51-11-27. All bonds issued pursuant to this chapter shall be validated as now provided by law in Sections 31-13-1 to 31-13-11, Mississippi Code of 1972. Such validation proceedings shall be instituted in the Chancery Court of the First Judicial District of Hinds County, Mississippi, where the principal office of the district is located, but notice of such validation proceedings shall be published at least two (2) times in a newspaper of general circulation in and published in each of the counties comprising the Pearl River Basin Development District, the first publication of which in each case shall be made at least ten (10) days preceding the date set for validation.

SECTION 22. Section 51-11-29, Mississippi Code of 1972, is brought forward as follows:

51-11-29. At the discretion of the board of directors of the district, any bonds provided for in Section 51-11-21 may be further secured by a trust agreement between the board of directors and a corporate trustee, which may be any trust company or bank having powers of a trust company within or without the state. Any such trust agreement or any resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as are reasonable and proper and not in violation of law. The trust agreement may contain provisions for the issuance of additional bonds under the procedure set out in this chapter for any of the purposes authorized by this chapter, which shall be secured by the revenues pledged thereunder for such bonds to the extent provided therein. The trust agreement may include provisions to the effect that if there is any default in the payment of principal or interest on any of said bonds, any court having jurisdiction of the action may appoint a receiver to administer the properties and facilities of the district, including authority to sell or make contracts for the sale of any services, facilities, or commodities of the district, or to renew such contracts, subject to the approval of the court appointing said receiver, and with power to provide for the payment of such bonds outstanding, or the payment of operating expenses, and to apply the income and revenues to the payment of said bonds and interest thereon in accordance with the resolution of the board of directors authorizing the issuance of such bonds and said trust agreement. The fee for the services of any corporate trustee shall not exceed the normal charges for acting as paying agent plus any additional amount or amounts allowed by the court as the reasonable value of services rendered by the corporate trustee upon default in the payment of principal and interest on the bonds.

SECTION 23. Section 51-11-31, Mississippi Code of 1972, is brought forward as follows:

51-11-31. The board of supervisors of each county becoming a member of the district shall annually, on or before March 15 of each year beginning with the calendar year 1965, pay or cause to be paid to the depository of the district a sum equal to one-half (1/2) mill on all of the taxable property within the county, beginning with the tax assessment for the calendar year 1964, payable on or before March 15, 1965; and such payments shall be made and continued so long as there remains unpaid and outstanding any bonded indebtedness created by the board of directors of the district as herein provided, and so long thereafter as the district remains in existence and there is a present need therefor.

The board of supervisors of each county shall annually provide the district the aforesaid sum equal to one-half (1/2) mill on all taxable property within the county from the general fund of the county. However, no county shall be obligated or required to levy any tax or make any contribution under this section for the support of the district for any year unless and until the board of directors of the district shall have filed with the board of supervisors of any such county a detailed and itemized account of the income and expenditures of the district for and during the next preceding full fiscal year, which account shall be certified by the State Auditor of Public Accounts, and unless and until the board of directors of the district shall have filed with the board of supervisors of any such county a detailed budget of the district for the ensuing fiscal year. In any year in which the board of directors of the district shall certify to the board of supervisors of any such county that the budget of the district can be met by a sum less than one-half (1/2) mill on all taxable property within the county, then the county may appropriate such lesser sum from the general fund as certified by the board of directors of the district. The board of supervisors of any county which is a member of the Pearl River Basin Development District and which is also a member of the Big Black River Basin District shall pay or cause to be paid to the depository of the Pearl River Basin Development District a sum equal to one-half (1/2) mill on all of the taxable property within such county which lies within the watershed area of the Pearl River and its tributaries, such payments to be made, continued, levied, appropriated and deposited as provided in this paragraph.

SECTION 24. Section 51-11-33, Mississippi Code of 1972, is brought forward as follows:

51-11-33. In each county of the State of Mississippi which is a member of the Pearl River Basin Development District, beginning with the ad valorem tax assessment for the year 1968, payable on or before February 1, 1969, and so long thereafter as there remains unpaid and outstanding any bonded indebtedness or other obligations of the district, the tax collector of each such county shall pay into the depository selected by the district for said purpose the amount of two (2) mills of all ad valorem taxes due by said county to the State of Mississippi, which is collected by the tax collector of said county, or which may be collected by any other lawful taxing agency of said county or state, for said county; and the State of Mississippi shall continue to levy not less than two (2) mills ad valorem taxes on each county in the district so long as any bonds or obligations issued pursuant to this chapter remain outstanding. In those counties which are members of the district and which on June 1, 1964, have already otherwise committed and are retaining the amount of two (2) mills or some lesser amount of ad valorem taxes due by said county to the State of Mississippi for some other authorized purpose, the tax collector shall pay into the depository of the district under this section only the difference, if any, between the amount of two (2) mills and the amount thus committed and retained for some other authorized purpose for so long as such other authorized purpose shall continue, and thereafter shall pay into the depository of the district the full two (2) mills. The tax provided for support of the district in this section is in addition to the sum equal to one-half (2) mill provided for in Section 51-11-31.

SECTION 25. Section 51-11-35, Mississippi Code of 1972, is brought forward as follows:

51-11-35. To provide additional funds for the planning, undertaking, construction, completion, operation and maintenance of any work, construction, or project of special benefit to and situated wholly or partially within a county which is a member of the Pearl River Basin Development District, the board of supervisors of each such member county may, in addition to the appropriation provided for in Section 51-11-31 and in addition to the state ad valorem tax provided for in Section 51-11-33, set aside, appropriate and expend moneys from the general fund in addition to any tax or appropriation otherwise authorized by law, which shall be placed in a depository of the district designated for such purpose as a special fund, and shall be used by the district for no other purpose.

SECTION 26. Section 51-11-13, Mississippi Code of 1972, is amended as follows:

51-11-13. The term "project" when used herein shall mean the general plans and purposes of the district, including without limitation physical properties and the location of reservoir or reservoirs, dam or dams, and related facilities, as approved by the district. The words "project area" shall mean any geographic area, as defined by a resolution of the board of directors of the district, located within (i) any county which is a member of the district or (ii) any portion of any other county which lies within the watershed area of the Pearl River and its tributaries. The district, through its board of directors, shall have, in addition to and without limitation upon the powers enumerated in Section 51-11-11, the following powers:

(a) To impound and appropriate for beneficial use overflow water and the surface water of the Pearl River or its tributaries within the project area at the place or places and in the manner and amount as may be approved by the Department of Environmental Quality, by the construction of a dam or dams, reservoir or reservoirs, work or works, plants, and any other necessary related facilities contemplated and described as a part of the project; to construct a dam or dams, reservoir or reservoirs, work or works, and any other necessary related facilities contemplated and described as a part of the project to control flooding on the Pearl River and its tributaries; to control, store, and preserve these waters and to use, distribute, and sell them; to construct or otherwise acquire within the project area all works, plants, or other facilities necessary to the project for the purpose of soil conservation or for the purpose of processing water and transporting it to cities and other facilities for domestic, municipal, commercial, industrial, agricultural, and manufacturing purposes; and to control open channels for delivery purposes and water transportation; provided, however, a decision by the board of directors to have a dam or reservoir constructed within a county may be vetoed by an affirmative vote of a majority of each of the boards of supervisors of any three (3) or more member counties of the district.

(b) To acquire and develop any other available water necessary to the project and to construct, acquire, and develop all facilities within the project area deemed necessary with respect thereto, including terminals.

(c) To forest and reforest, and to aid in the foresting and reforesting of, the project area and to prevent and aid in the prevention of soil erosion and flood within this area; to control, store, and preserve within the boundaries of the project area the waters of the Pearl River or any of its tributaries for irrigation of lands and for prevention of water pollution.

(d) To acquire by condemnation all property or interest in property of any kind, real, personal, or mixed, within the Pearl River Basin, whether within or without the project area, strictly and presently necessary for the projects and the exercise of the powers, rights, privileges, and functions conferred upon the district by this chapter, according to the procedure provided by law for the condemnation of lands or other property taken for rights-of-way or other purposes by railroads, telephone or telegraph companies and according to the provisions of Section 29-1-1. No petition to condemn any property or any interest in any property shall be filed unless accompanied by a certificate by the United States Army Corps of Engineers or other federal agency, or by a competent engineer or engineering firm, stating that the property being acquired is necessary for the purposes of an approved project of the district. For the purposes of this chapter, the right of eminent domain of the district within the project area shall be superior and dominant to the right of eminent domain of railroad, telegraph, telephone, gas, power, and other companies or corporations and shall be sufficient to enable the acquisition and relocation of county roads, state highways, or other public property within the project area. The cost of right-of-way purchases, rerouting, and elevating all other county-maintained roads affected by constructions shall be borne by the district, and new construction shall be of equal quality as in roads existing as of January 1, 1984. The county in which this work is done may assist in these costs if the board of supervisors so desires.

The amount and character of interest in land, other property, and easements to be acquired shall be determined by the board of directors on the basis of the proven needs of the particular project or projects involved. The board of directors shall make this determination in compliance with the provisions of Section 29-1-1. However,

(i) In acquiring lands, either by negotiation or condemnation, the district shall not acquire minerals or royalties; sand and gravel shall not be considered as minerals within the meaning of this section; however, where land is condemned for easement purposes only, the sand and gravel contained therein or thereunder shall not be condemned, except to the extent necessary for these easement purposes, but may be acquired in full by negotiation; and

(ii) No person or persons owning the drilling rights or the right to share in production or mining shall be prevented from exploring, developing, or producing oil or gas or sand and gravel with necessary rights-of-way for ingress and egress, pipelines, and other means of transporting these products by reason of the inclusion of the lands or mineral interests or sand and gravel within the project area, whether below or above the waterline, but these activities shall be under reasonable regulations by the board of directors as will adequately protect the project.

(e) To require the necessary relocation of roads, highways, railroad, telephone, and telegraph lines and properties, electric power lines, gas pipelines and mains and facilities in the project area, or to require the anchoring or other protection of any of these, provided due compensation is first paid the owners thereof or agreement is had with the owners regarding the payment of the cost of such relocation. Further, the district is hereby authorized to acquire easements or rights-of-way in or outside of the project area for the relocation of roads, highways, railroad, telephone, and telegraph lines and properties, electric power lines, gas pipelines and mains and facilities, and to convey them to the owners thereof in connection with relocation as a part of the construction of the project.

(f) To overflow and inundate any public lands and public property, including sixteenth section lands and lieu lands, within the project area.

(g) To construct, extend, improve, maintain, and reconstruct, to cause to be constructed, extended, improved, maintained, and reconstructed, and to use and operate all facilities of any kind within the project area necessary to the project.

(h) To employ engineers, attorneys, and all necessary agents and employees to properly finance, construct, operate, and maintain the project and the plants, and to pay reasonable compensation for these services.

(i) To make contracts in the issuance of bonds as may be necessary to insure the marketability thereof.

(j) To enter into contracts with municipalities, corporations, districts, public agencies, political subdivisions of any kind, and others for any services, facilities, or commodities which the project may provide; to contract with any municipality, corporation or public agency for the rental, leasing, purchase, or operation of water production, water filtration or purification, water supply and distributing facilities of such upon consideration as the district and the entity may agree. Any contract may be upon any terms and for any time as the parties may agree, may provide that it shall continue in effect until bonds specified therein, refunding bonds issued in lieu of these bonds, and all obligations are paid. Any contract with any political subdivision shall be binding upon the political subdivisions according to its terms, and the municipalities or other political subdivisions shall have the power to enter into these contracts as in the discretion of the governing authorities thereof would be to the best interest of the people of the municipality or other political subdivision. The contracts may include within the discretion of the governing authorities a pledge of the full faith and credit of the political subdivisions for the performance thereof.

(k) To fix and collect charges and rates for any service, facilities, or commodities furnished by it in connection with the project and to impose penalties for failure to pay these charges and rates when due.

(l) To operate and maintain within the project area, with the consent of the governing body of any located within the district, any works, plants, or facilities deemed necessary to the accomplishment of the purposes for which the district is created.

(m) Subject to the provisions of this chapter, from time to time to lease, sell, or otherwise lawfully dispose of property of any kind, real, personal, or mixed, or any interest therein within the project area or acquired outside the project area as authorized in this chapter, for the purpose of furthering the business of the district.

(n) When, in the opinion of the board of directors as shown by resolution duly passed, it shall not be necessary to the carrying on of the business of the district that the district own any lands acquired, the board shall advertise these lands for sale to the highest and best bidder for cash, and shall receive and publicly open the bids thereon.

(o) In the purchase of or in the entering into of all lease purchase agreements for supplies, equipment, heavy equipment, and the like, the directors shall in all instances comply with the provisions of law pertaining to public purchases by public bids on such supplies and equipment.

(p) In addition to, or in conjunction with, any other powers and duties of the district arising under this chapter, to exercise those powers, duties and functions of a joint water management district set forth in Sections 51-8-27 through 51-8-55, except the power of eminent domain under Section 51-8-33. Before exercising those powers and duties, the district must comply with the provisions of Sections 51-8-63 and 51-8-65. In exercising the functions of a joint water management district, the district may apply to the Environmental Quality Permit Board for delegation of those powers and duties as provided by Section 51-3-15, and to apply to the Mississippi Commission on Environmental Quality for delegation of those powers and duties provided by Section 51-3-21.

(q) To create a flood control district within the Pearl River Basin Development District as provided under Sections 1 through 17 of House Bill No. , 1998 Regular Session.

SECTION 27. Sections 1 through 17 of this act shall be codified as a new article in Chapter 11, Title 51.

SECTION 28. This act shall take effect and be in force from and after July 1, 1998.