MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Ways and Means

By: Representatives Smith (39th), Morris, McCoy

AN ACT TO AUTHORIZE THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE STATE OF MISSISSIPPI TO PROVIDE FUNDS TO CONSTRUCT TWO ADDITIONAL LANES FOR TRAFFIC ACROSS THE ROSS BARNETT RESERVOIR DAM IN HINDS, MADISON AND RANKIN COUNTIES ADJACENT TO SPILLWAY ROAD; TO PROVIDE THAT SUCH BONDS MAY NOT BE ISSUED UNLESS THE PEARL RIVER VALLEY WATER SUPPLY DISTRICT AGREES TO MAKE SEMIANNUAL PAYMENTS TO THE STATE IN AN AMOUNT SUFFICIENT TO SATISFY THE DEBT SERVICE ON THE BONDS AUTHORIZED BY THIS ACT; TO AMEND SECTION 51-9-121, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO AMEND SECTION 2, CHAPTER 447, LAWS OF 1999, TO REVISE THE DESCRIPTION OF THE PROJECT CONTAINED IN SUCH LAW IN ORDER TO AUTHORIZE THE CONSTRUCTION OF TWO ADDITIONAL LANES FOR TRAFFIC ACROSS THE ROSS BARNETT RESERVOIR DAM IN HINDS, MADISON AND RANKIN COUNTIES ADJACENT TO SPILLWAY ROAD; AND FOR RELATED PURPOSES.

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

SECTION 1. As used in this act, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:

(a) "Accreted value" of any bond means, as of any date of computation, an amount equal to the sum of (i) the stated initial value of such bond, plus (ii) the interest accrued thereon from the issue date to the date of computation at the rate, compounded semiannually, that is necessary to produce the approximate yield to maturity shown for bonds of the same maturity.

(b) "State" means the State of Mississippi.

(c) "Commission" means the State Bond Commission.

SECTION 2. (1) (a) A special fund, to be designated as the "2000 Spillway Road Improvement Fund," is created within the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited into such fund.

(b) Monies deposited into the fund shall be disbursed, in the discretion of the Department of Finance and Administration, to the Pearl River Valley Water Supply District to pay the costs of constructing two (2) additional lanes for traffic across the Ross Barnett Reservoir Dam in Hinds, Madison and Rankin Counties adjacent to Spillway Road; to pay the costs of planning such project; to pay the costs of necessary signaling devices; to pay the costs of lighting; and to pay any other necessary costs of such project. The funding provided in Sections 1 through 18 of this act for such project shall be in addition to the funding provided in Chapter 447, Laws of 1999, as amended by Section 20 of this act.

(2) Amounts deposited into such special fund shall be disbursed to pay the costs of projects described in subsection (1) of this section. If any monies in such special fund are not used within four (4) years after the date the proceeds of the bonds authorized under Sections 1 through 18 of this act are deposited into the special fund, then the Pearl River Valley Water Supply District shall provide an accounting of such unused monies to the commission. Promptly after the commission has certified, by resolution duly adopted, that the projects described in subsection (1) of this section shall have been completed, abandoned, or cannot be completed in a timely fashion, any amounts remaining in such special fund shall be applied to pay debt service on the bonds issued under Sections 1 through 18 of this act, in accordance with the proceedings authorizing the issuance of such bonds and as directed by the commission.

SECTION 3. For the purpose of providing for the payment of the principal of and interest on bonds issued under the provisions of Sections 1 through 18 of this act, there is created within the State Treasury a special fund to be designated as the "2000 Spillway Road Improvement Bond Sinking Fund." Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund and any interest earned or investment earnings on amounts in the fund shall be deposited into such fund. Such sinking fund shall consist of the monies deposited into such fund under Section 4 of this act and such other amounts as shall be paid into such fund by appropriation or other authorization by the Legislature. Funds required in excess of the amounts available in such sinking fund to pay the principal of and interest on bonds issued under Sections 1 through 18 of this act shall be appropriated from the State General Fund.

SECTION 4. (1) The commission, at one time, or from time to time, may declare by resolution the necessity for issuance of general obligation bonds of the State of Mississippi to provide funds for all costs incurred or to be incurred for the purposes described in Section 2 of this act. Upon the adoption of a resolution by the Department of Finance and Administration, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this section, the Department of Finance and Administration shall deliver a certified copy of its resolution or resolutions to the commission. Upon receipt of such resolution, the commission, in its discretion, may act as the issuing agent, prescribe the form of the bonds, advertise for and accept bids, issue and sell the bonds so authorized to be sold and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The total amount of bonds issued under Sections 1 through 18 of this act shall not exceed One Million Four Hundred Fifty Thousand Dollars ($1,450,000.00). The bonds authorized under Sections 1 through 18 of this act may not be issued unless the Department of Finance and Administration receives a binding commitment from the Board of Directors of the Pearl River Valley Water Supply District requiring the Pearl River Valley Water Supply District to make semiannual payments over a period of time to the 2000 Spillway Road Improvement Bond Sinking Fund in an amount sufficient to retire the bonds authorized under Sections 1 through 18 of this act. Such payments by the Pearl River Valley Water Supply District shall be deposited into the 2000 Spillway Road Improvement Bond Sinking Fund created in Section 3 of this act. The bonds authorized under Sections 1 through 18 of this act may not be issued after July 1, 2003.

(2) Any investment earnings on amounts deposited into the special fund created in Section 2 of this act shall be used to pay debt service on bonds issued under Sections 1 through 18 of this act, in accordance with the proceedings authorizing issuance of such bonds.

SECTION 5. The principal of and interest on the bonds authorized under Sections 1 through 18 of this act shall be payable in the manner provided in this section. Such bonds shall bear such date or dates, be in such denomination or denominations, bear interest at such rate or rates (not to exceed the limits set forth in Section 75-17-101, Mississippi Code of 1972), be payable at such place or places within or without the State of Mississippi, shall mature absolutely at such time or times not to exceed twenty-five (25) years from date of issue, be redeemable before maturity at such time or times and upon such terms, with or without premium, shall bear such registration privileges, and shall be substantially in such form, all as shall be determined by resolution of the commission.

SECTION 6. The bonds authorized by Sections 1 through 18 of this act shall be signed by the chairman of the commission, or by his facsimile signature, and the official seal of the commission shall be affixed thereto, attested by the secretary of the commission. The interest coupons, if any, 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 officials designated to sign the bonds who were in office at the time of such signing but who may have ceased to be such officers before 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 their delivery to the purchaser, or had been in office on the date such bonds may bear. However, notwithstanding anything herein to the contrary, such bonds may be issued as provided in the Registered Bond Act of the State of Mississippi.

SECTION 7. All bonds and interest coupons issued under the provisions of Sections 1 through 18 of this act have all the qualities and incidents of negotiable instruments under the provisions of the Mississippi Uniform Commercial Code, and in exercising the powers granted by Sections 1 through 18 of this act, the commission shall not be required to and need not comply with the provisions of the Mississippi Uniform Commercial Code.

SECTION 8. The commission shall act as the issuing agent for the bonds authorized under Sections 1 through 18 of this act, prescribe the form of the bonds, advertise for and accept bids, issue and sell the bonds so authorized to be sold, pay all fees and costs incurred in such issuance and sale, and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The commission is authorized and empowered to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under Sections 1 through 18 of this act from the proceeds derived from the sale of such bonds. The commission shall sell such bonds on sealed bids at public sale, and for such price as it may determine to be for the best interest of the State of Mississippi, but no such sale shall be made at a price less than par plus accrued interest to the date of delivery of the bonds to the purchaser. All interest accruing on such bonds so issued shall be payable semiannually or annually; however, the first interest payment may be for any period of not more than one (1) year.

Notice of the sale of any such bonds shall be published at least one time, not less than ten (10) days before the date of sale, and shall be so published in one or more newspapers published or having a general circulation in the City of Jackson, Mississippi, and in one or more other newspapers or financial journals with a national circulation, to be selected by the commission.

The commission, when issuing any bonds under the authority of Sections 1 through 18 of this act, may provide that bonds, at the option of the State of Mississippi, may be called in for payment and redemption at the call price named therein and accrued interest on such date or dates named therein.

SECTION 9. The bonds issued under the provisions of Sections 1 through 18 of this act shall be payable from the 2000 Spillway Road Improvement Bond Sinking Fund created in Section 3 of this act and are general obligations of the State of Mississippi, and for the payment thereof the full faith and credit of the State of Mississippi is irrevocably pledged. If the funds available in the 2000 Spillway Road Improvement Bond Sinking Fund and any funds appropriated by the Legislature for such purpose are insufficient to pay the principal of and the interest on such bonds as they become due, then the deficiency shall be paid by the State Treasurer from any funds in the State Treasury not otherwise appropriated. All such bonds shall contain recitals on their faces substantially covering the provisions of this section.

SECTION 10. Upon the issuance and sale of bonds under the provisions of Sections 1 through 18 of this act, the commission shall transfer the proceeds of any such sale or sales to the special fund created in Section 2 of this act. The proceeds of such bonds shall be disbursed solely upon the order of the Department of Finance and Administration under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds.

SECTION 11. The bonds authorized under Sections 1 through 18 of this act may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions and things which are specified or required by Sections 1 through 18 of this act. Any resolution providing for the issuance of bonds under the provisions of Sections 1 through 18 of this act shall become effective immediately upon its adoption by the commission, and any such resolution may be adopted at any regular or special meeting of the commission by a majority of its members.

SECTION 12. The bonds authorized under the authority of Sections 1 through 18 of this act may be validated in the Chancery Court of the First Judicial District of Hinds County, Mississippi, in the manner and with the force and effect provided by Chapter 13, Title 31, Mississippi Code of 1972, for the validation of county, municipal, school district and other bonds. The notice to taxpayers required by such statutes shall be published in a newspaper published or having a general circulation in the City of Jackson, Mississippi.

SECTION 13. Any holder of bonds issued under the provisions of Sections 1 through 18 of this act or of any of the interest coupons pertaining thereto may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights granted under Sections 1 through 18 of this act, or under such resolution, and may enforce and compel performance of all duties required by Sections 1 through 18 of this act to be performed, in order to provide for the payment of bonds and interest thereon.

SECTION 14. All bonds issued under the provisions of Sections 1 through 18 of this act shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi, and such bonds shall be legal securities which may be deposited with and shall be received by all public officers and bodies of this state and all municipalities and political subdivisions for the purpose of securing the deposit of public funds.

SECTION 15. Bonds issued under the provisions of Sections 1 through 18 of this act and income therefrom shall be exempt from all taxation in the State of Mississippi.

SECTION 16. The proceeds of the bonds issued under Sections 1 through 18 of this act shall be used solely for the purposes herein provided, including the costs incident to the issuance and sale of such bonds.

SECTION 17. The State Treasurer is authorized, without further process of law, to certify to the Department of Finance and Administration the necessity for warrants, and the Department of Finance and Administration is authorized and directed to issue such warrants, in such amounts as may be necessary to pay when due the principal of, premium, if any, and interest on, or the accreted value of, all bonds issued under Sections 1 through 18 of this act; and the State Treasurer shall forward the necessary amount to the designated place or places of payment of such bonds in ample time to discharge such bonds, or the interest thereon, on the due dates thereof.

SECTION 18. Sections 1 through 18 of this act shall be deemed to be full and complete authority for the exercise of the powers herein granted, but Sections 1 through 18 of this act shall not be deemed to repeal or to be in derogation of any existing law of this state.

SECTION 19. Section 51-9-121, Mississippi Code of 1972, is amended as follows:

51-9-121. The Pearl River Valley Water Supply District through its board of directors is hereby empowered:

(a) To impound overflow water and the surface water of the Pearl River or its tributaries within the project area, within or without this district at the place or places and in the amount as may be approved by the Office of Land and Water Resources of the State of Mississippi, by the construction of a dam or dams, reservoir or reservoirs, works, plants, and any other necessary or useful related facilities contemplated and described as a part of the project within or without the district, to control, store, and preserve these waters, and to use, distribute, and sell the same. The Pearl River Valley Water Supply District is also empowered to construct or otherwise acquire within the project area all works, plants, or other facilities necessary or useful to the project for the purpose of processing the water and transporting it to cities and others for domestic, municipal, commercial, industrial, agricultural, and manufacturing purposes and is hereby given the power to control open channels for water delivery purposes.

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

(c) To prevent or aid in the prevention of damage to person or property from the waters of the Pearl River or any of its tributaries.

(d) 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 floods 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.

(e) To acquire by purchase, lease, gift, or in any other manner (otherwise than by condemnation) and to maintain, use, and operate all property of any kind, real, personal, or mixed, or any interest therein within the project area, within or without the boundaries of 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.

(f) To acquire by condemnation all property of any kind, real, personal, or mixed, or any interest therein within the project area not exceeding one-quarter (1/4) mile from the outside line of the three hundred (300) feet above sea level contour on each side of Pearl River except as provided for rights-of-way under subsection (g) of this section, within or without the boundaries of 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 carrying out this article, the right of eminent domain of the 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 above mentioned utility property in the project area; however, Mississippi Highway 43 as presently located shall be kept open as part of the state highway system. The cost of right-of-way purchases, rerouting, and elevating all other county maintained roads affected by construction of the reservoir shall be borne by the water district, and new construction shall be of equal quality as in roads existing as of May 5, 1958. The amount and character of interest in land, other property, and easements thus to be acquired shall be determined by the board of directors, and 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 such board in making such 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 shall not be considered as minerals within the meaning of this section; and

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

(iii) In drilling and developing, these persons are hereby vested with a special right to have the mineral interest integrated and their lands developed in such 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.

Moreover, where any site or plot of land is to be rented, leased, or sold to any person, firm, or corporation for the purpose of operating recreational facilities thereon for profit, then the board shall, by resolution, specify the terms and conditions of the sale, rental, or lease, and shall advertise for public bids thereon. When bids are received, they shall be publicly opened by the board, and the board shall thereupon determine the highest and best bid submitted and shall immediately notify the former owner of the site or plot of the amount, terms, and conditions of the highest and best bid. The former owner of the site or plot shall have the exclusive right at his option, for a period of thirty (30) days after the determination of the highest and best bid by the board, to rent, lease, or purchase said site or plot of land by meeting such highest and best bid and by complying with all terms and conditions of the renting, leasing, or sale as specified by the board. However, the board shall not in any event rent, lease, or sell to any former owner more land than was taken from the former owner for the construction of the project, or one-quarter (1/4) mile of shoreline, whichever is the lesser. If this option is not exercised by the former owner within a period of thirty (30) days, then the board shall accept the highest and best bid submitted.

Any bona fide, resident householder, actually living or maintaining a residence on land taken by the district by condemnation shall have the right to repurchase not exceeding forty (40) acres of his former land or other available land from the board of directors for a price not exceeding the price paid for condemning his land.

(g) To require the necessary relocation of roads and 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 the relocation. It is further provided that the district is hereby authorized to acquire easements or rights-of-way in or outside of the project area for the relocation of the roads, highways, railroad, telephone, and telegraph lines and properties, electric power lines, gas pipelines and mains and facilities, and to convey the same to the owners thereof in connection with the relocation as a part of the construction of the project; however, the directors of the district shall not close any public access road to the reservoir existing prior to the construction of the reservoir unless the board of supervisors of the county in which the road is located agrees.

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

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

(j) To sue and be sued in its corporate name.

(k) To adopt, use, and alter a corporate seal.

(l) To make bylaws for the management and regulation of its affairs.

(m) To employ engineers, attorneys, and all necessary agents and employees to properly finance, construct, operate, and maintain the project and the plants and facilities of the district and carry out the provisions of this article, and to pay reasonable compensation for the services. For all services in connection with the issuance of bonds as provided in this article, the attorney's fee shall not exceed one-quarter of one percent (1/4 of 1%) of the principal amount of said bonds. For any other services, only reasonable compensation shall be paid for these services. The board shall have the right to employ a general manager, who shall, at the discretion of the board, have the power to employ and discharge employees. Without limiting the generality of the foregoing, it may employ fiscal agents or advisors in connection with its financing program and in connection with the issuance of its bonds.

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

(o) To make or cause to be made 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.

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

(q) To do 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.

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

(s) To enter into contracts with municipalities, corporations, districts, public agencies, political subdivisions of any kind, and others for any services, facilities or commodities that the project may provide. The district is also authorized to contract with any municipality, corporation, or public agency for the rental, leasing, purchase, or operation of the water production, water filtration or purification, water supply and distributing facilities of the municipality, corporation, or public agency upon such consideration as the district and such entity may agree. Any such contract may be upon any terms and for any time as the parties may agree, and it may provide that it shall continue in effect until bonds specified therein and refunding bonds issued in lieu of these bonds are paid. Any contract with any political subdivision shall be binding upon said political subdivision according to its terms, and any municipalities or other political subdivisions shall have the power to enter into such 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. These 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.

(t) To fix and collect charges and rates for any services, 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.

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

(v) 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 therein 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.

(w) 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, then 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. The board shall, by resolution, determine the highest and best bid submitted for such land and shall thereupon notify the former owner, his heirs or devisees, by registered mail of the land to be sold and the highest and best bid received therefor, and the former owner, or his heirs or devisees, shall have the exclusive right at his or their option for a period of thirty (30) days in which to meet the highest and best bid and to purchase the property.

(x) 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.

(y) To take any actions required in Sections 1 through 18 of House Bill No. ____, 2000 Regular Session.

Any transaction regarding any property under the provisions of this section shall be executed in accordance with the provisions of Section 29-1-1.

SECTION 20. Section 2, Chapter 447, Laws of 1999, is amended as follows:

Section 2. A special fund, to be designated the "1999 Spillway Road Improvement Fund," is created within the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state, and investment earnings on amounts in the fund shall be deposited into such fund. The expenditure of monies deposited into the fund shall be under the direction of the Department of Finance and Administration, and such funds shall be paid by the State Treasurer upon warrants issued by the Department of Finance and Administration. Monies deposited into such fund shall be disbursed to the Pearl River Valley Water Supply District to pay the cost of constructing two (2) additional lanes for traffic across the Ross Barnett Reservoir Dam in Hinds, Madison and Rankin Counties adjacent to Spillway Road; to pay the cost of planning such project; to pay the cost of necessary signaling devices; to pay the cost of lighting; and to pay any other necessary costs of such project.

SECTION 21. This act shall take effect and be in force from and after its passage.