MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Education

By: Representative Brown

AN ACT TO PROVIDE THAT LOCAL SCHOOL DISTRICTS ISSUING DEBT MAY TAKE CERTAIN ACTIONS THAT MAY BE HELPFUL IN QUALIFYING THE DEBT FOR REDUCED INTEREST OR INTEREST FREE TREATMENT UNDER FEDERAL LAW; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) Notwithstanding any law or any provision of any law to the contrary, the following additional and supplemental powers and authorizations are granted to each public school district in connection with the issuance of any debt. For purposes of this section, "debt" means any note, bond, lease or other evidence of indebtedness that a district is authorized to issue under any provision of law. Any school district issuing debt may, by resolution of its board of trustees or board of education, do all things regarding the form, payment structure, purchase price and terms of such debt which may be helpful in qualifying the debt for reduced or interest free treatment under any federal law or the regulations promulgated thereunder and to assure that such debt will be readily acceptable in the municipal bond market, provided the same is not inconsistent with the constitution of the state. However, nothing in this section shall be construed as allowing a school district to exceed the final maturity term or exceed any debt limitation provided in the applicable state law authorizing the debt.

(2) This section shall be construed to be supplemental and additional to any powers conferred by other laws to school districts and not in derogation of any such existing powers. This section is remedial in nature and shall be liberally construed.

SECTION 2. Section 1 of this act shall be codified as a separate Code section in Chapter 59, Title 37, Mississippi Code of 1972.

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