MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Local and Private Legislation

By: Representative Foster

AN ACT TO AUTHORIZE THE CITY OF PONTOTOC, MISSISSIPPI, TO ACQUIRE AND ASSUME THE OPERATION AND MAINTENANCE OF THE PRIMROSE WATER ASSOCIATION AND TO ASSUME ALL THE LIABILITIES, OBLIGATIONS, ASSETS, DUTIES AND RESPONSIBILITIES OF SUCH ASSOCIATION; TO AUTHORIZE THE CITY OF PONTOTOC TO OPERATE ITS WATER DISTRIBUTION SYSTEM FOR A DISTANCE OF MORE THAN FIVE MILES FROM THE CORPORATE LIMITS OF THE CITY OF PONTOTOC IN ORDER TO OPERATE THE WATER SYSTEM WITHIN THE AREA PRESENTLY SERVED BY THE PRIMROSE WATER SYSTEM; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) The governing authorities of the City of Pontotoc, Mississippi, in their discretion, may acquire and assume the operation and maintenance of the water distribution systems owned by Primrose Water Association; and, in connection therewith, the governing authorities of the City of Pontotoc may assume all liabilities, obligations, assets, duties and responsibilities of the association. The city shall have such powers and authority concerning the association and its facilities as is granted by law to municipalities concerning water systems.

(2) Any indebtedness incurred by the City of Pontotoc as a result of the exercise of the authority granted under subsection (1) of this section shall not constitute a debt within the meaning of any statutory limitation as to the amount of debt which may be incurred by the municipality.

SECTION 2. (1) (a) Notwithstanding any provisions of Section 21-27-39, Mississippi Code of 1972, to the contrary, the governing authorities of the City of Pontotoc, Mississippi, in their discretion, may construct, expand, operate and maintain the water distribution system of the City of Pontotoc for a distance of more than five (5) miles from the corporate limits of the City of Pontotoc in order to operate the water system within the area served by Primrose Water Association on the effective date of House Bill No. , 1999 Regular Session. The rate charged to consumers of water service furnished by the water system who reside outside the corporate limits of the City of Pontotoc shall be no greater than twice the rate charged to consumers who reside within the corporate limits of the city, until the provisions of paragraph (b) are applicable.

(b) Upon the completion of any construction, expansion or improvement of the water system and the retirement of any indebtedness incurred in connection therewith, the consumers of water service furnished by the water distribution system who reside outside the corporate limits of the City of Pontotoc shall be charged the same rate as that charged to consumers who reside within the corporate limits of the city.

(2) The authority conferred by this section shall not be construed as an exemption to Chapter 3, Title 77, Mississippi Code of 1972, concerning the requirements of obtaining a Certificate of Public Convenience and Necessity, the jurisdiction of the Public Service Commission to regulate rates or any other provision of law related to the regulation of public utilities.

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