MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Public Utilities

By: Representative Weathersby

AN ACT TO PROVIDE FOR THE REIMBURSEMENT OF THE COSTS OF INSTALLATION OF A WATER LINE TO THE USER OR USERS WHO PAID FOR THE INSTALLATION; TO REQUIRE ANY PERSON SELLING, TRANSFERRING OR OTHERWISE CONVEYING LAND FOR RESIDENTIAL USE TO PROVIDE CERTAIN INFORMATION REGARDING WATER UTILITY SERVICES; TO AMEND SECTIONS 19-5-177 AND 21-27-17, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THIS ACT; TO AMEND SECTION 89-1-509, MISSISSIPPI CODE OF 1972, TO REVISE THE SELLER'S DISCLOSURE STATEMENT TO INCLUDE INFORMATION REGARDING WATER SUPPLY; AND FOR RELATED PURPOSES.

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

SECTION 1. A political subdivision, utility district or nonprofit, nonshare corporation providing water service shall remit to the original user or users who paid for the installation of a water line or shall provide a credit for water system services to the original user or users an amount equal to the connection fee of subsequent users of that water line, until the original user or users are reimbursed for the cost of installation of the water line. Each original user paying for the installation shall be reimbursed on a pro rata basis based upon his or her share of the cost of the installation. The Public Utilities Staff created in Section 77-2-1 shall audit the records of the subdivision, district or corporation to insure compliance with this section.

SECTION 2. Before the sale, transfer or other conveyance of any land for residential use, the seller shall provide in writing the prospective purchaser information regarding the availability of water service to the land. If water service is not available at the time of sale, transfer or conveyance, the seller shall provide an estimate of the cost of having the service provided.

SECTION 3. Section 19-5-177, Mississippi Code of 1972, is amended as follows:

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

(a) To sue and be sued;

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

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

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

(e) To fix, maintain, collect and revise rates and charges for services rendered by or through the facilities of such district, which rates and charges shall not be subject to review or regulation by the Mississippi Public Service Commission except in those instances where a city operating similar services would be subject to regulation and review; however, said district shall obtain a certificate of convenience and necessity from the Mississippi Public Service Commission for operating of water and/or sewer systems;

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

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

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

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

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

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

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

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

(2) The board of commissioners of a district providing water service shall remit to the original user or users who paid for the installation of a water line or shall provide a credit for water system services to the original user or users an amount equal to the connection fee of subsequent users of that water line, until the original user or users are reimbursed for the cost of installation of the water line. Each original user paying for the installation shall be reimbursed on a pro rata basis based upon his or her share of the cost of the installation. The Public Utilities Staff created in Section 77-2-1 shall audit the records of the district to insure compliance with this section.

SECTION 4. Section 21-27-17, Mississippi Code of 1972, is amended as follows:

21-27-17. The commission provided for by Section 21-27-13 is authorized to make such bylaws for the holding and conduct of its meetings and such other regulations as it may deem necessary for the safe, economic and efficient management and protection of the system or systems, and such bylaws and regulations shall have the same validity as an ordinance duly passed by the governing authorities of any municipality.

It is authorized to elect such officers and appoint such employees as may be necessary to operate the system or systems efficiently, and it shall have the entire control and management of such system or systems, together with all property connected or appertaining in any manner to such system or systems. The commission shall have the authority to employ a superintendent or manager of the systems, who shall have actual charge of the management and operation thereof and of the enforcement and execution of all the rules, regulations, programs, plans and decisions made and adopted by the commission in making purchases for materials and supplies to be used in the operation of the systems. In addition to any other purchasing authority granted by law, the commission may purchase electric transmission line materials, electric distribution system substation equipment, transformer equipment, and all other appliances, apparatus, machinery, equipment and appurtenances necessary for the sale of electricity, such as utility vehicles and fencing, from the surplus inventory of the Tennessee Valley Authority or any other similar agency of the federal government and electric power associations. These purchases shall be exempt from the public bid requirements prescribed in Sections 31-7-12 and 31-7-13. However, for all other purchases, the commission shall advertise for competitive bids in the manner and form as is required in accordance with Section 31-7-13. The superintendent or manager shall make and keep full and proper books and records of all  purchases and shall submit them to the commission for its approval and ratification before payment thereof is authorized to be made. It shall have the right to fix the salaries and term of office of all employees and to direct them in the discharge of their duties. It shall have the right to require good and sufficient bonds from all officers and employees in such amounts as it may deem proper. It shall have the right to discharge employees when found inefficient or for other good cause. It shall have the power to make and collect rates for services and facilities, and appropriate funds for the maintenance and improvements of such systems. It is authorized to borrow from the Mississippi Development Bank in order to fund advance purchases of energy for gas producing, generating, transmission or distribution system or its electric generating, transmission or distribution system. It is authorized to insure all property used in the operation of such systems, including buildings, furniture, books and records, against loss by fire and tornado, and to carry sufficient amount of employers liability, steam boiler, plate glass and other miscellaneous casualty insurance, as in the discretion of the commission may be deemed proper, and to pay premiums therefor out of the funds derived from the operation of the systems. It shall report quarterly to the governing authorities of the municipality of all its doings and transactions of every kind whatsoever and shall make a complete statement of the financial condition of the systems at the end of each quarter, and shall annually make a detailed statement covering the entire management and operation of the systems, with any recommendations which it may have for the further development of the systems. At any time, the commission, by order or resolution, may authorize the expansion of activities of any component facility to include processing of materials on a custom basis or the processing and marketing of materials acquired to fully and efficiently utilize existing plant capacity. It shall also provide copies of all such quarterly and annual reports and statements to the Public Service Commission when so directed under Section 77-3-6.

The commission provided for by Section 21-27-13 is also authorized to allow a municipally owned utility to prepay the utility's bills to those electricity suppliers which offer early payment discounts to the municipally owned utility.

The commission of a system providing water service shall remit to the original user or users who paid for the installation of a water line or shall provide a credit for water system services to the original user or users an amount equal to the connection fee of subsequent users of that water line, until the original user or users are reimbursed for the cost of installation of the water line. Each original user paying for the installation shall be reimbursed on a pro rata basis based upon his or her share of the cost of the installation. The Public Utilities Staff created in Section 77-2-1 shall audit the records of the system to insure compliance with this section.

SECTION 5. Section 89-1-509, Mississippi Code of 1972, is amended as follows:

89-1-509. The disclosures required by this act pertaining to the property proposed to be transferred are set forth in, and shall be made on a copy of, the following disclosure form:

"SELLER'S DISCLOSURE STATEMENT

The following is a Disclosure Statement, made by the Seller, concerning the condition of the property located at: ___________ _____________________________________. This Disclosure is not a warranty of any kind by the Seller or any Agent of the Seller in this transaction and is not a substitute for any inspections or warranties the Purchaser may wish to obtain. This statement may be made available to other parties and is to be attached to the Listing Agreements (signed by Owner).

TO THE SELLER: Please complete the following form, including any past history of problems if known. If the condition or question does not apply to your property, mark "N/A." DO NOT LEAVE ANY BLANK SPACES. Attach additional pages if necessary.

APPLIANCES/SYSTEMS

ITEM YES NO GAS/ELEC APPROX AGE REPAIRS LAST 2 YRS

Single Oven ___ ___ ________ __________ __________________

Double Oven ___ ___ ________ __________ __________________

Cook Top ___ ___ ________ __________ __________________

Microwave ___ ___ ________ __________ __________________

Dishwasher ___ ___ ________ __________ __________________

Disposal ___ ___ ________ __________ __________________

Trash Compactor___ ___ ________ __________ __________________

Ice Maker ___ ___ ________ __________ __________________

Hot Water Htrs ___ ___ ________ __________ __________________

Refrigerator ___ ___ ________ __________ __________________

Washer/Dryer ___ ___ ________ __________ __________________

Central Air ___ ___ ________ __________ __________________

Central Heat ___ ___ ________ __________ __________________

Fireplace ___ ___ ________ __________ __________________

Chimney ___ ___ ________ __________ __________________

Septic/Treat-

ment plant ___ ___ ________ __________ __________________

Other ___ ___ ________ __________ __________________

POOL AND POOL EQUIPMENT (Gunite or Vinyl Liner) _________________

BURGLAR ALARM YES ___ NO ___ FEE $_____________________

APPROXIMATE AGE OF HOUSE:_____ HOMEOWNER'S ASSOCIATION FEE $_____

IF CONDO, MAINTENANCE FEE: $_____ PER _________________________

TOTAL TAXES: $_____________ HOMESTEAD FILED FOR 19___

AVERAGE ELECTRIC BILL (12 Months) $_______________

AVERAGE GAS BILL (12 Months) $_______________

WATER SUPPLY: _______________

Is there anything normally considered a part of the real estate that you do not plan to leave with the property? (i.e., chandeliers, ceiling fans, bathroom mirrors, etc.) _______________

Are there any needed repairs of which you are aware? ________ __________________________________________________________________

Are you aware of any problems which may exist on the property by virtue of prior uses such as, but not limited to, hazardous or toxic waste, asbestos components, lead-based paint, urea-formaldehyde insulation, radon gas, underground tanks, naturally occurring radiation or any past industrial uses of the premises? YES _____ NO _____

What is the approximate Square Footage of the Heated and Cooled Living Area in House? ____________________________________

Where did you get this figure? _____________________________

Are there any finished wood floors under any carpets? YES _____ NO _____

Has property previously flooded? YES _____ NO _____ Is Flood Insurance required? YES _____ NO _____

Are you aware of any foundation repairs made in the past? YES _____ NO _____ If yes, when were they made and who was the contractor? _____________________________________________________

ROOF: AGE: _____ Are there any leaks? YES _____ NO _____ Repairs? ________________________________________________________

History of infestation, if any: (termites, carpenter ants, etc.): __________________________________________________________

Is structure under termite contract? YES ____ NO ____ If yes, who is contractor?___________________________________________

Any treatments for infestation? YES _____ NO _____ Any repaired damage? YES _____ NO _____

Are there any rights of way, easements, or similar matters that may affect your interest in the property? YES _____ NO _____ UNKNOWN _____

Has there been major damage to the property or any of the structures from fire, wind, floods or any other disaster?

YES _____ NO _____ Please describe: _____________________ _______________________________________________________________

Please state any other facts, information or problems (i.e., heating, cooling, electrical, plumbing, mechanical) relating to this property that would be of concern to a buyer: ____________ ________________________________________________________________

To the extent of the Seller's knowledge as a property owner, the Seller acknowledges that the information contained above is true and accurate for those areas of the property listed. Owner agrees to save and hold Broker harmless from all claims, disputes, litigations, and/or judgments arising from any incorrect information supplied by Owner, or from any material fact known by Owner which Owner fails to disclose, except that Broker is not held harmless to Owner in claims, disputes, litigations or judgments, arising from conditions of which Broker had actual knowledge. It is acknowledged and understood by the Owner that this information may be made available to other parties.

______________________________ ________________________________

SELLER DATE SELLER DATE"

SECTION 6. This act shall take effect and be in force from and after July 1, 1999.