MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Local and Private Legislation

By: Representatives Miles, Franks

AN ACT TO AUTHORIZE THE CITY OF FULTON, MISSISSIPPI, TO ACQUIRE AND ASSUME THE OPERATION AND MAINTENANCE OF THE NORTH CLAY WATER ASSOCIATION AND TO ASSUME ALL THE LIABILITIES, OBLIGATIONS, ASSETS, DUTIES AND RESPONSIBILITIES OF SUCH ASSOCIATION; TO AUTHORIZE THE CITY OF FULTON TO OPERATE ITS WATER DISTRIBUTION SYSTEM FOR A DISTANCE OF MORE THAN FIVE MILES FROM THE CORPORATE LIMITS OF THE CITY OF FULTON IN ORDER TO OPERATE THE WATER SYSTEM WITHIN THE AREA PRESENTLY SERVED BY THE NORTH CLAY WATER ASSOCIATION; 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 Fulton, Mississippi, in their discretion, may acquire and assume the operation and maintenance of the water distribution systems owned by North Clay Water Association; and, in connection therewith, the governing authorities of the City of Fulton may assume all liabilities, including the Farmers Home Administration (FHA) indebtedness outstanding on the effective date of House Bill No. 762, 2000 Regular Session, 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 Fulton 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 Fulton, Mississippi, in their discretion, may construct, expand, operate and maintain the water distribution system of the City of Fulton for a distance of more than five (5) miles from the corporate limits of the City of Fulton in order to operate the water system within the area served by North Clay Water Association on the effective date of House Bill No. 762, 2000 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 Fulton 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 Fulton 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.