MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Ports and Marine Resources; Finance

By: Senator(s) Hewes

AN ACT TO CREATE THE COASTAL STREAMS WATER MANAGEMENT DISTRICT ACT; TO EXPRESS THE FINDINGS OF THE LEGISLATURE; TO DEFINE CERTAIN TERMS; TO SPECIFY THOSE COUNTIES WHICH SHALL BE INCLUDED IN THE DISTRICT; TO PROVIDE FOR A RESOLUTION OF A COUNTY TO BECOME PART OF THE DISTRICT; TO REQUIRE NOTICE AND HEARING ON BEING INCLUDED IN THE DISTRICT; TO AUTHORIZE A REFERENDUM ON BEING INCLUDED IN THE DISTRICT UPON FILING OF A PETITION IN PROTEST; TO AUTHORIZE THE PAYMENT OF COSTS FOR NOTICES AND ELECTIONS; TO PROVIDE FOR AN APPEAL FROM AN ACTION OF THE BOARD OF SUPERVISORS AUTHORIZING A COUNTY TO JOIN THE DISTRICT; TO PROVIDE FOR AN INCORPORATION AGREEMENT AND PUBLICATION OF THAT AGREEMENT; TO AUTHORIZE AMENDMENTS OF THE INCORPORATION AGREEMENT; TO PROVIDE FOR THE APPOINTMENT OF A BOARD OF DIRECTORS OF THE DISTRICT AND FOR THEIR TERMS OR OFFICE AND COMPENSATION; TO AUTHORIZE THE BOARD OF DIRECTORS TO EXERCISE CERTAIN POWERS AND DUTIES; TO REQUIRE SUBMISSION OF PLANS, BUDGETS AND AUDITS; TO PLACE REQUIREMENTS ON CERTAIN CONTRACTS; TO REQUIRE AN AD VALOREM TAX LEVY NOT TO EXCEED ONE (1) MILL IN MOST COUNTIES FOR OPERATIONS OF THE DISTRICT; TO REQUIRE AN AD VALOREM TAX LEVY NOT TO EXCEED ONE-QUARTER (1/4) MILL IN MOST COUNTIES FOR DEBT SERVICE; TO AUTHORIZE THE DISTRICT TO ISSUE BONDS NOT TO EXCEED SEVEN MILLION DOLLARS ($7,000,000.00) AND TO BORROW FUNDS; TO AUTHORIZE THE DISTRICT TO DESIGNATE DEPOSITORIES; TO AUTHORIZE COUNTIES AND MUNICIPALITIES TO LOAN MONIES TO THE DISTRICT; TO AMEND SECTIONS 51-11-7 AND 51-15-103, IN CONFORMANCE THERETO; AND FOR RELATED PURPOSES.

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

SECTION 1. This act shall be known and may be cited as the "Coastal Streams Water Management District Act."

SECTION 2. The Legislature hereby finds and declares that:

(a) The waterways and surface waters of the state are among its basic resources;

(b) The overflow and surface waters of the state have not been conserved to realize their full beneficial use;

(c) The utilization, development, conservation, and regulation of overflow and surface waters are necessary to insure an adequate flood control program and sanitary water supply, to promote the balanced economic development of the state, and to aid in conservation and development of state forests, irrigation of lands needing irrigation, and pollution abatement;

(d) The preservation, conservation, storage, and regulation of the waters of the Coastal Streams Water Management District for domestic, municipal, commercial, industrial, agricultural, and manufacturing purposes, for recreational uses, for flood control, timber development, irrigation, and pollution abatement are, as a matter of public policy, for the general welfare of the entire people of the state; and

(e) The creation of the Coastal Streams Water Management District is determined to be necessary and essential to the accomplishment of the purposes stated in this section.

SECTION 3. Whenever used in Sections 1 through 35 of this act, the following words and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:

(a) "Board" means the board of directors of the Coastal Streams Water Management District.

(b) "Designated representative" or "incorporator" means the person named by resolution of the board of supervisors of a county as the representative of that county for the purpose of acting on their behalf as an incorporator in concert with other similarly named persons in the creation and incorporation of the Coastal Streams Water Management District.

(c) "District" means the Coastal Streams Water Management District.

(d) "Facilities" mean any structure, building, channel, improvement, reservoir, works, land, or other real or personal property used or useful in a project.

(e) "Incorporation agreement" means that agreement between the designated representatives of the counties setting forth the formal creation of the district.

(f) "Member" means a county participating in a district.

(g) "Net revenues" mean the revenues after payments of costs and expenses of operation and maintenance of the project and related facilities.

(h) "Project" means any activity regarding the preservation, conservation, storage, and regulation of the waters of the Coastal Streams Water Management District for domestic, municipal, commercial, industrial, agricultural, and manufacturing purposes, for recreational uses, for flood control, timber development, irrigation, and pollution abatement.

(i) "Revenues" mean all charges, rentals, tolls, rates, gifts, grants, avails of tax levies, monies, and all other funds coming into the possession of the district under Sections 1 through 35 of this act, except the proceeds from the sale of bonds issued under Section 20 of this act.

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

SECTION 4. (1) The Coastal Streams Water Management District shall be organized in this state as provided in Sections 1 through 35 of this act.

(2) This water management district shall be an agency of the state and a body politic and corporate.

(3) The Coastal Streams Water Management District shall be composed of the following counties: George, Hancock, Harrison, Jackson, Pearl River and Stone.

SECTION 5. (1) Creation of a the Coastal Streams Water Management District shall be initiated by the adoption of a resolution by the board of supervisors of the counties specified in Section 4 of this act.

(2) The resolution shall state: (a) the necessity for the proposed district; (b) the primary function of the proposed district; (c) boundaries of the proposed district; (d) the names of any other counties proposing to be in the district; (e) the date upon which the district is proposed to be created; (f) a general description of any facilities to be constructed or operated and a general plan for the construction and operation of those facilities; (g) the estimated cost of projects to be conducted and maintained by the district; however the estimate shall not serve as a limitation upon the financing of any project; (h) a statement of showing the rate of ad valorem tax which must be levied under Sections 18 and 19 of this act; and (i) the name of designated representative of the county to enter into an incorporation agreement with the other counties.

SECTION 6. (1) A certified copy of the adopted resolution shall be published in a newspaper having a general circulation within the county once a week for at least three (3) consecutive weeks before the date of the public hearing. The first publication of the notice shall be made not less than twenty-one (21) days before the date specified, and the last publication shall be made not more than seven (7) days before the date of the public hearing.

(2) Following the adoption of a resolution under Section 5(2) of this act, the board of supervisors shall fix a time and place for a public hearing upon the question of the whether or not the county should be included in the district. The date fixed for the hearing shall be not more than thirty (30) days after the adoption of the resolution. The time, date and location of the hearing, the proposed boundaries of the district, and the purpose of the hearing shall be set forth in a notice to be signed by the clerk of the board of supervisors of the county. The notice of the public hearing shall be published as provided for publication of the resolution under subsection (1) of this section. The publication of the notice of the public hearing may be made simultaneously with the publication of the resolution under subsection (1) of this section.

(3) If, after the public hearing, the board of supervisors finds (a) that the best interest of the county would be served by the county being included in the district, and (b) that the inclusion of the county in the district is economically sound and desirable, then the board of supervisors shall adopt a resolution proposing that the county to become a member of the district effective on a given date. The board of supervisors shall public notice of their adoption of the resolution under this subsection as provided in subsection (1) of this section.

(4) If twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified electors of the county file a written petition with the board of supervisors before the date specified in the resolution adopted under subsection (3) of this section protesting the inclusion of the county in the district, the board of supervisors shall call an election on the question of the creation of the district. The election shall be held and conducted by the election commissioners of the county as nearly as may be in accordance with the general laws governing elections. All qualified electors of the county may vote in the election. Notice of the election setting forth the time, place or places, and purpose of the election shall be published by the clerk of the board of supervisors. The notice shall be published for the time and in the manner provided in subsection (1) of this section. The ballot to be prepared for and used at the election shall be in substantially the following form:

"FOR BEING INCLUDED IN THE COASTAL STREAMS WATER MANAGEMENT DISTRICT: ( )

AGAINST BEING INCLUDED IN THE COASTAL STREAMS WATER MANAGEMENT DISTRICT: ( )."

SECTION 7. If no petition requiring an election is filed or if three-fifths (3/5) of those voting in the election provided in Section 6 of this act vote in favor of being included in the district, the board of supervisors shall adopt a resolution authorizing the county to become a member of the district.

SECTION 8. All costs incident to the publication of the notices, election and all other costs of meeting the requirements of this act shall be paid by the board of supervisors.

SECTION 9. Any party having an interest in the subject matter and aggrieved or prejudiced by the findings and adjudication of the board of supervisors may appeal to the circuit court of the county in the manner provided by in Section 11-51-75 for appeals from orders of the board of supervisors. However, if no appeal is taken within fifteen (15) days after the date of the adoption of the resolution in Section 7 of this act, the authorization of the county to become a member of the district shall be final and shall not be subject to attack in any court after that time.

SECTION 10. (1) The Coastal Streams Water Management District may be created when two-thirds (2/3) of the counties listed in Section 4 of this act have adopted resolutions as provided by Sections 5 through 9 of this act.

(2) Within thirty (30) days following the adoption of the final authorizing resolution, the designated representatives shall proceed to incorporate a district by filing for record in the office of the chancery clerk of the participating counties and the Secretary of State an incorporation agreement approved by each member. The agreement shall comply in form and substance with the requirements of this section and shall be executed in the manner provided in Sections 1 through 35 of this act.

(3) The incorporation agreement of a district shall state:

(a) The name of each participating county and the date on which the boards of supervisors adopted an authorizing resolution;

(b) The name of the district which shall be the "Coastal Streams Water Management District;"

(c) The location of the principal office of the district which shall be within the boundaries of the members;

(d) That the district is organized under Sections 1 through 35 of this act;

(e) The board setting forth the number of directors and terms of office of each director;

(f) If the exercise by the district of any of its powers is to be in any way prohibited, limited or conditioned, a statement of the terms of that prohibition, limitation or condition;

(g) Any provisions relating to the vesting of title to its properties upon its dissolution which shall be vested in any member; and

(h) Any other related matters relating to the district that the incorporators may choose to insert and that are not inconsistent with Sections 1 through 35 of this act or with the laws of the state.

(4) The incorporation agreement shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgements. When the incorporation agreement is filed for record, there shall be attached to it a certified copy of the authorizing resolution adopted by the board of supervisors of each member.

(5) The incorporators shall publish a notice of incorporation once a week for three (3) consecutive weeks in a daily newspaper or newspapers having general circulation throughout the area to be served.

(6) Upon the filing for record of the agreement and the required documents, the district shall come into existence and shall constitute a public corporation under the name set forth in the incorporation agreement. The Secretary of State shall issue a certificate of incorporation to the district.

(7) The district shall be a public body corporate and politic constituting a political subdivision of the state and shall be deemed to be acting in all respects for the benefit of the people of the state in the performance of essential public functions and the district shall be empowered in accordance with Sections 1 through 35 of this act to promote the health, welfare and prosperity of the general public.

SECTION 11. (1) The incorporation agreement of the district may be amended in the manner provided in this section. The board of the district shall first adopt a resolution proposing an amendment to the incorporation agreement. The amendment shall be set forth in full in the resolution and may include any matters which might have been included in the original incorporation agreement.

(2) After the adoption of the resolution by the board, the chairman of the board and the secretary of the district shall file a certified copy of the resolution and a signed written application in the name of and on behalf of the district, under its seal, with the board of supervisors of each member, requesting the board of supervisors to adopt a resolution approving the proposed amendment. As promptly as may be practicable after the filing of the application with the board of supervisors, that board of supervisors shall review the application and shall adopt a resolution either denying the application or authorizing the proposed amendment. Any resolution shall be published in a newspaper or newspapers as provided in Section 6 of this act. The board of supervisors shall cause a copy of the application and all accompanying documents to be spread upon or otherwise made a part of the minutes of the meeting of the board of supervisors at which final action upon the application is taken. The incorporation agreement may be amended only after the adoption of a resolution by two-thirds (2/3) of the boards of supervisors of the members. Publication of the amendment shall be made as provided in Section 6 of this act.

(3) Within thirty (30) days following the adoption of the last adopted resolution approving the proposed amendment, the chairman of the board and the secretary of the district shall sign, and file for record in the office of the chancery clerk with which the incorporation agreement of the district was originally filed and the Secretary of State, a certificate in the name of and in behalf of the district, under its seal, reciting the adoption of the respective resolutions by the board and by the board of supervisors of each member and setting forth the amendment. The chancery clerk for the county shall record the certificate in an appropriate book in the clerk's office. When the certificate has been so filed and recorded, the amendment shall become effective. No incorporation agreement of an district shall be amended except in the manner provided in this section.

SECTION 12. (1) All powers of the district shall be exercised by a board of directors to be composed of the following:

(a) Each county in the district shall appoint one (1) board member. The initial term of members shall be as follows: the boards of supervisors of the counties of George and Hancock shall each appoint a member from their respective counties for an initial term of two (2) years; the boards of supervisors of the counties of Harrison and Jackson shall each appoint a member from their respective counties for an initial term of three (3) years; and the boards of supervisors of the counties of Pearl River and Stone shall each appoint a member from their respective counties for an initial term of four (4) years. No person appointed under this paragraph shall be an elected official or a county employee. All appointments made under this paragraph after the initial appointments shall be for terms of four (4) years each or until a successor is appointed and qualified.

(b) The Governor shall appoint three (3) board members from the district at large. No more than one (1) appointment may be made by the Governor from any one (1) county in the district. No person appointed under this paragraph shall be an elected official or a county employee. All appointments made under this paragraph shall be for a term of four (4) years each or until a successor is appointed and qualified.

(2) Each director shall take and subscribe to the general oath of office required by Section 268 of the Constitution of the State of Mississippi before a chancery clerk, that the person will faithfully discharge the duties of the office. The oath shall be filed with the clerk and preserved by the clerk.

(3) Each director shall receive a per diem in the amount established in Section 25-3-69, for attending each day's meeting of the board and for each day spent in attending to the necessary business of the district. In addition, each director may receive reimbursement for actual and necessary expenses incurred as provided in Section 25-3-41, upon express and prior authorization of the board.

(4) (a) The board shall annually elect from its number a president and a vice president of the district, and any other officers as the board deems necessary.

(b) The president shall be the chief executive officer of the district and the presiding officer of the board, and shall have the same right to vote as any other director.

(c) The vice president shall perform all duties and exercise all powers conferred by this article upon the president when the president is absent or fails or declines to act, except the president's right to vote.

(d) The board shall also appoint a secretary and a treasurer, who may or may not be members of the board. The board may combine those offices.

(e) Except as otherwise provided for in this subsection, the treasurer shall give bond in the sum of not less than Fifty Thousand Dollars ($50,000.00) as set by the board. Each director may be required to give bond in the sum of not less than Ten Thousand Dollars ($10,000.00) with sureties qualified to do business in this state. The premium on the surety bonds shall be an expense of the district. The condition of each bond shall be that the treasurer or director will faithfully perform all duties of the office and account for all money or other assets which shall come into his or her custody as treasurer or director of the district. In lieu of the bonds required by this subsection, the board may authorize that the district purchase an equivalent amount of errors and omissions insurance for the treasurer and directors.

(5) Each director shall meet with the board of supervisors of the county from which that director is appointed at least twice a year at reasonable times established by the board of supervisors.

SECTION 13. (1) The district through its board shall have the following powers and duties:

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

(b) To adopt, use and alter an official seal.

(c) To make, enforce, amend and repeal bylaws and rules and regulations for the management of its business affairs and for the use, operation and maintenance of any project, facility or property owned or operated by the district.

(d) To employ professional and administrative staff and personnel and to retain legal, engineering, financial, accounting and other professional services. The board may employ a general manager or executive director, who shall, at the discretion of the board, have the power to employ and discharge employees.

(e) To make contracts and to execute all instruments necessary or convenient to the exercise of the powers, rights, privileges and functions conferred upon the board under Sections 1 through 35 of this act, including contracts in the issuance of bonds that may be necessary to ensure the marketability of those bonds. The board may also enter into leases with any person or public agency for any services, facilities or commodities that the project may provide. The district may contract with any person 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 person or public agency upon those terms and conditions as the district and the parties may agree. The contract may continue in effect until any bonds specified in the contract and refunding bonds issued in lieu of those bonds and all obligations are paid. Any contract with any public agency shall be binding upon the public agency according to its terms. Any public agency may enter into these contracts, in the discretion of the governing authority of the public agency, to serve the best interest of the public agency. These contracts may include, in the discretion of the governing authority of the public agency, a pledge of the full faith and credit of the public agency for the performance of the contract.

(g) 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 purposes of this act.

(h) To apply for, contract for, accept, receive and administer grants, gifts, appropriations and donations of money, materials and property of any kind, including loans and grants from the United States, the state, a county or municipality or any agency, department, authority or instrumentality of the foregoing, upon those terms and conditions agreed upon between the district and the entity.

(i) To develop in conjunction with the U.S. Army Corps of Engineers, U.S. Secretary of Agriculture, or with the head of any other federal or state agency as may be involved, plans for public works of improvement to make navigable or for the prevention of flood water damage, or the conservation, development, recreation, utilization and disposal of water, including the impoundment, diversion, flowage and distribution of waters for beneficial use.

(j) To impound overflow water and the surface water of any streams in the district or their tributaries within the project area, inside or outside, the district, at the place or places and in the amount as may be approved by the Department of Environmental Quality, by the construction of a dam or dams, reservoir or reservoirs, work or works, plants and any other necessary or useful related facilities contemplated and described as a part of the project, inside and outside the district, to control, store, and preserve these waters, and to use, distribute, and sell them. The district may construct or otherwise acquire within the project area all works, plants or other facilities necessary or useful to the project for processing the water and transporting it to municipalities and other facilities necessary or useful to the project for the purpose of processing the water and transporting it to municipalities and other facilities for domestic, municipal, commercial, industrial, agricultural and manufacturing purposes. The district is given the power to control open channels for water delivery purposes and water transportation.

(k) 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 to the project.

(l) To forest and reforest and to aid in the forestation and reforestation of the project area, and to prevent and aid in the prevention of soil erosion and flooding within the area. The district may control, store and preserve, within the boundaries of the project area, the waters of any streams for irrigation of lands and for prevention of water pollution.

(m) (i) 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 in that property within the project area, inside or outside 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.

(ii) In the purchase of or in the entering into of all lease purchase agreements for supplies, equipment, heavy equipment and the like, the board shall in all instances comply with laws pertaining to public purchases by public bids on these supplies and equipment.

(n) To acquire by condemnation all property of any kind, real, personal or mixed, or any interest therein, inside or outside the boundaries of the district, necessary for the project. The district may exercise of the powers, rights, privileges and functions conferred upon the district by Sections 1 through 35 of this act, according to the procedure provided by law for the condemnation of lands or other property taken for rights-of-way or other purposes by railroad, telephone or telegraph companies and according to the provisions of Section 29-1-1. For the purposes of Sections 1 through 35 of this act, 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 this property in the project area. The cost of right-of-way purchases, rerouting and elevating all other county-maintained roads affected by construction shall be borne by the district. New construction shall be of equal quality as in the existing roads. The county in which the work is done may assist in these costs if the board of supervisors desires.

The amount and character of interest in land, other property and easements to be acquired shall be determined by the board. Their determination shall be final and shall not be subject to attack in the absence of manifold abuse of discretion or fraud on the part of the board in making this 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.

(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, pipelines and other means of transporting these products by reason of the inclusion of the lands or mineral interests within the project area, whether below or above the water line. Any activities shall be under reasonable regulations by the board that will adequately protect the project.

(iii) In drilling and developing, these persons are vested with a right to have mineral interests integrated and their lands developed in the drilling unit or units that the state oil and gas board shall establish after due consideration of the rights of all owners to be included in the drilling unit.

When any site or plot of land is to be rented, leased or sold to any person for the purpose of operating recreational facilities on that or site for profit, the board shall, by resolution, specify the terms and conditions of the sale, rental or lease, and shall advertise for public bids on the sale, rental or lease. When these bids are received, they shall be publicly opened by the board, and the board shall determine the highest and best bid submitted. The board 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 or her option, for a period of thirty (30) days after written notice is received by the land owner of the determination of the highest and best bid by the board, to rent, lease or purchase the site or plot of land by meeting the highest and best bid and by complying with all terms and conditions of renting, leasing or sale as specified by the board. The board shall not 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 shore line, whichever is lesser. If this option is not exercised by the former owner within a period of thirty (30) days, the board shall accept the highest and best bid submitted.

Any resident actually living or maintaining a residence on land taken by the district by condemnation shall have the right to repurchase that person's former land from the board for a price not exceeding the price paid for the land, plus any permanent improvements and plus the cost of condemnation.

(o) To require the necessary relocation of roads and highways, railroad, telephone and telegraph lines and properties, electric power lines, pipelines, and mains and facilities in the project area. The district may also require the anchoring or other protection of any of these, if due compensation is first paid the owners thereof or agreement is had with the owners regarding the payment of the cost of relocation. The district is hereby may acquire easements or rights-of-way inside or outside of the project area for the relocation of roads, highways, railroad, telephone and telegraph lines and properties, electric power lines, pipelines, and mains and facilities, and convey them to the owners thereof in connection with the relocation as a part of the construction of the project. The board shall not close any public access road to the project existing before the construction of a reservoir unless the board of supervisors of the county in which the road is located agrees.

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

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

(r) To pay for all services in connection with the issuance of bonds as provided in Sections 1 through 35 of this act. The attorney's fee shall not exceed one percent (1%) of the principal amount of these bonds.

(s) To fix, charge, collect, maintain and revise rates, fees, tolls and charges for any services, facilities or commodities furnished by the district in connection with the project, and to impose penalties for failure to pay these rates, fees, tolls and charges when due.

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

(u) To lease, sell or otherwise lawfully dispose of property of any kind, real, personal or mixed, or any interest in that property within the project area or acquired outside the project area as authorized in Sections 1 through 35 of this act, for the purpose of furthering the business of the district, subject to Sections 1 through 35 of this act.

(v) When, in the opinion of the board as shown by a resolution duly adopted, it is not necessary for carrying on of the business of the district that the district own any lands acquired, the board shall advertise the lands for sale to the highest and best bidder for cash. The board shall receive and publicly open the bids on the sale of the lands. The board shall, by resolution, determine the highest and best bid submitted for the land and shall after that determination notify the former owner, his or her heirs or devisees, by registered mail of the land to be sold and the highest and best bid received for that sale. The former owner, or his or her heirs or devisees, shall have the exclusive right at their option for a period of thirty (30) days in which to meet the highest and best bid and to purchase the property.

(w) To prevent or aid in the prevention of damage to person or property from the any waters of the state as defined in Section 49-17-5 within the district.

(x) To do all other acts or things necessary, requisite, or convenient to the exercising of the powers, rights, privileges or functions conferred upon the district under Sections 1 through 35 of this act or any other law.

(2) The district may establish or otherwise provide for public parks and recreation facilities and for the preservation of fish and wildlife. The district may acquire land by any means, other than by condemnation, except as provided in this section for those purposes, within the project area.

SECTION 14. (1) The board shall prepare a five-year plan containing a prioritized list detailing the purposes, goals and projected costs of projects which it intends to implement or is in the process of implementing. The board shall update that plan annually. The board shall file the plan and any updates with the clerk of the board of supervisors of each member and the Department of Environmental Quality before July 15 of each year.

(2) (a) Before the fifteenth day of July of each year, the board shall prepare and file with the clerk of the board of supervisors of each member at least two (2) copies of a budget of estimated expenditures for the support, maintenance and operation of the district for the fiscal year commencing on July 1 of the succeeding year. The budget shall be prepared on forms prescribed and provided by the State Auditor and shall contain any information as the State Auditor may require.

(b) The board of the district shall notify both the chancery clerk and the president of the board of supervisors of each member in writing of the date and time when any legislative committee will hold any hearing or vote relating to the budget of the district or any other matter affecting the district. The notice shall be served both within ten (10) days of the board's learning of the date and time of any action and not less than five (5) days before the scheduled action.

(3) The board shall, after completion of the annual audit of the district and upon receipt of the written report on the audit, file a copy of the report with the clerk of the board of supervisors of each member.

SECTION 15. All construction contracts by the district, where the amount of the contract shall exceed Two Thousand Five Hundred Dollars ($2,500.00), shall be made upon at least three weeks' public notice by advertisement in a newspaper of general circulation in the district. The notice shall state the purpose of the contract and services to be provided under the contract and invite sealed proposals. Before the notice is published, any plans and specifications for the work shall be filed with the secretary of the district. The sealed proposals shall be filed with the secretary of the district. The board shall award the contract to the lowest and best bidder, who will comply with the terms imposed by the board and enter into bond with sufficient sureties, to be approved by the board. Any penalty as shall be fixed by the board, but in no case to be less than the contract price and conditioned for the prompt, proper and efficient performance of the contract.

SECTION 16. (1) The board may adopt and promulgate all reasonable regulations to secure, maintain, and preserve the sanitary condition of all water in and to flow into any reservoir owned by the district, to prevent waste of water or the unauthorized use of the water. The board may regulate residence, hunting, fishing, boating, camping, and all recreational and business privileges along or around any reservoir, any body of land, or any easement owned by the district.

(2) The district may prescribe reasonable penalties for the violation of any regulation of the district.

SECTION 17. The district may obtain through appropriate hearings an appropriation permit or permits from the Environmental Quality Permit Board or a successor agency or board.

SECTION 18. (1) In each county of district, so long as funds are found to be necessary for the operation of the district by annual legislative approval of the district budget, the tax collector of the county shall pay into the depository selected by the district an amount to be determined as follows:

(a) Each county shall pay a pro rata share, not to exceed the avails of one (1) mill, of the annual district budget (excluding any amount necessary for debt service) based on the proportion that the most recent total assessed valuation of the county bears to the most recent aggregate total assessed valuation of all the counties which comprise the district. However, any county bordering on the Gulf of Mexico which by action of the board of supervisors has created and authorized a port authority and which has been paying into the port authority the avails of a levy of two (2) mills that was established under Section 27-39-3 shall pay an amount not to exceed one-tenth of one (1/10) mill of the total assessed valuation of the county to the district under this section. The assessed valuation of that county shall not be considered when calculating each county's pro rata share of the district's budget. The board shall meet in July of each year and upon receipt of the total assessed valuation of the member counties, certified by the Mississippi State Tax Commission, prepare a request to the board of supervisors of member counties to levy a tax using the formula established in this section not to exceed one (1) mill.

SECTION 19. The board of supervisors of each county that is a member of the district, shall pay to the district depository a sum not more than is necessary to defray the annual principal and interest due on outstanding indebtedness of the district, not to exceed an amount equal to the avails of one-fourth (1/4) mill of the total assessed valuation of the member county. However, any county bordering on the Gulf of Mexico which by action of the board of supervisors has created and authorized a port authority and which has been paying into the port authority the avails of a levy of two (2) mills that was established under Section 27-39-3 shall pay to the district depository an amount not to exceed two-tenths (2/10) mill of the total assessed valuation of the county. The district depository shall place those payments into a special sinking fund out of which monies shall be expended solely to retire bonds and any other indebtedness incurred under Sections 1 through 35 of this act. The payments shall be continued as long as there remains unpaid and outstanding any bonded indebtedness created by the district board. Any board of supervisors shall provide the sum required under this section either by appropriation from any available funds of the county or by levy.

SECTION 20. The board may borrow money or issue bonds of the district for the purpose of paying the cost of acquiring, owning, constructing, operating, repairing, and maintaining the projects and works specified Sections 1 through 35 of this act, including related facilities and including all financing and financial advisory charges, interest during construction, engineering, architectural, legal, and other expenses incidental to and necessary for the issuance of bonds or for the carrying out of any power conferred by Sections 1 through 35 of this act. The board may borrow money and issue bonds at any times and in any amounts as shall be provided for by resolution of the board, not to exceed the limitation prescribed in Section 26 of this act. All bonds issued by the district shall be secured solely by a pledge of the net revenues which may now or hereafter come to the district, and by the pledge of the avails of the ad valorem tax levy provided for in Section 19 of this act. The bonds shall not constitute general obligations of the state or of the counties comprising the district. The bonds shall not be secured by a pledge of the full faith, credit, and resources of the state or of the counties. Bonds of the district shall not be included in computing any present or future debt limit of any county in the district under any present or future law.

SECTION 21. Any bonds provided for under Section 20 of this act shall be negotiable instruments within the meaning of the Uniform Commercial Code of this state, shall be lithographed or engraved and printed in two (2) or more colors to prevent counterfeiting, and shall be in denominations of not less than One Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000.00). The bonds shall be registered as issued and shall be numbered in a regular series from one (1) upward. Each bond shall specify on its face the purpose for which it was issued and the total amount authorized to be issued. The bond shall be payable to bearer, and the interest to accrue on the bond shall be evidenced by proper coupons to be attached to the bond. The bonds shall not bear a greater overall maximum interest rate to maturity than that allowed in Section 75-17-103. They shall mature annually in any amounts and at any times as shall be provided by the resolution of the board. No bond shall have a longer maturity than twenty-five (25) years. The first maturity date of a bond shall be not more than five (5) years from the date of the bonds. The denomination, form and place or places of payment of the bonds shall be fixed in the resolution of the board. The bonds shall be signed by the president and the secretary of the board with the seal of the district affixed thereto, but the coupons may bear only the facsimile signatures of the president and secretary. All interest accruing on the bonds so issued shall be payable semiannually, except that the first interest coupon attached to any bond may be for a period not exceeding one (1) year.

The bonds may be called in, paid and redeemed in inverse numerical order on any interest date before maturity, upon not less than thirty (30) days' notice to the paying agent or agents designated in the bonds, and at any premium as may be designated in the bonds.

All bonds shall contain in substance a statement to the effect that they are secured solely by a pledge of the net revenues of the district, including the avails of the tax levy provided for in Section 19 of this act, and that they do not constitute general obligations of the state or of the counties comprising the district. The bonds are not secured by a pledge of the full faith, credit and resources of the state or of any counties.

All bonds as provided for in Sections 1 through 35 of this act shall be sold for not less than par value plus accrued interest at public sale in the manner provided by Section 31-19-25. No such sale shall be at a price so low as to require the payment of interest on the money received therefor at more than eleven percent (11%) per annum computed with relation to the absolute maturity of the bonds, in accordance with standard tables of bond values, excluding from any computation the amount of any premium to be paid on redemption of any bonds before maturity.

Sections 1 through 35 of this act shall be full and complete authority for the issuance of the bonds provided for under those sections, and no restriction or limitation otherwise prescribed by law shall apply to those bonds, except as otherwise provided.

Notwithstanding the provisions of this section, bonds issued under Sections 1 through 35 of this act may be issued under the supplemental powers and authorizations conferred by the provisions of the Registered Bond Act, being Sections 31-21-1 through 31-21-7.

SECTION 22. All bonds issued under Sections 1 through 35 of this act shall be validated as now provided by law of Sections 31-13-1 through 31-13-11, Mississippi Code of 1972. The services of the state's bond attorney may be employed in the preparation of any bond resolutions, forms, or proceedings as may be necessary, for which the bond attorney shall be paid a reasonable fee. Any validation proceedings shall be instituted in the chancery court of the county in which the principal office of the district is located, but notice of the validation proceedings shall be published at least two (2) times in a newspaper of general circulation and published in each of the counties comprising the district. The first publication of the notice shall be made at least ten (10) days preceding the date set for the validation.

SECTION 23. At the discretion of the board any bonds provided for in Section 20 of this act may be further secured by a trust agreement between the board and a corporate trustee, which may be any trust company or bank having powers of a trust company inside or outside the state. Any trust agreement or any resolution providing for the issuance of the bonds may contain any provisions for protecting and enforcing the rights and remedies of the bondholders as are reasonable and proper and not in violation of law. The trust agreement may contain provision for the issuance of additional bonds for any of the purposes authorized by this article which shall be secured by the revenues pledged under the bonds for the bonds, to the extent provided in the bonds. The trust agreement may include provisions to the effect that if there is any default in the payment of principal or interest on any of the bonds, any court having jurisdiction of the action may appoint a receiver to administer the properties and facilities of the district, including authority to sell or make contracts for the sale of any services, facilities, or commodities of the district or to renew any contracts, subject to the approval of the court appointing the receiver. The receiver may provide for the payment of the bonds outstanding or the payment of operating expenses, and apply the income and revenues to the payment of any bonds and interest on the bonds in accordance with the resolution of the board authorizing the issuance of the bonds and the trust agreement. However, the fee for the services of any corporate trustee shall not exceed the normal charges for acting as paying agent plus any additional amount or amounts allowed by the court as the reasonable value of services rendered by the corporate trustee upon default in the payment of principal and interest on the bonds.

SECTION 24. The board may provide by resolution for the issuance of refunding bonds of the district for the purpose of refunding any bonds then outstanding and issued under authority of Sections 1 through 35 of this act, including the payment of any redemption premium on the bonds and any interest accrued or to accrue to the date of redemption of the bonds. The issuance of any refunding bonds, the maturity, and other details thereof, and the rights, duties, and obligations of the board in respect to the bonds shall be governed by Sections 1 through 35 of this act, in so far as they are applicable. In no event shall any bonds mature over a period of time exceeding twenty-five (25) years.

SECTION 25. All bonds of the district are declared to be legal and authorized investments for public funds of counties, cities, towns, school districts, banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, and for funds of the Mississippi Public Employees' Retirement System. The bonds shall be eligible to secure the deposit of all public funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Mississippi. The bonds shall be lawful and sufficient security for any deposits to the extent of their value, when accompanied by all unmatured coupons appurtenant to the bonds.

SECTION 26. Bonds and other indebtedness issued or incurred under Sections 1 through 35 of this act shall not exceed Seven Million Dollars ($7,000,000.00) in principal amount.

SECTION 27. The board shall not borrow money or issue bonds of the district unless sixty percent (60%) of the entire membership of the board votes in favor of that action after thirty (30) days' written notice to the chancery clerks and presidents of the boards of supervisors of the members of the date upon which the vote will be taken.

SECTION 28. (1) The board shall designate one or more qualified state depositories within the district to serve as depositories for the funds of the district. All funds of the district other than funds required by any trust agreement to be deposited, from time to time, with the trustee or any paying agent for outstanding bonds of the district, shall be deposited in the depository or depositories. Any designated depository shall be eligible to hold funds of the district to the extent that it is qualified as a depository for state funds.

(2) Before designating a depository or depositories, the board shall issue a notice stating the time and place the board will meet for the purpose and inviting the qualified state depositories in the district to submit applications to be designated depositories. The term of service for depositories shall be prescribed by the board. A notice shall be published one (1) time in a newspaper or newspapers published in the district and specified by the board.

(3) At the time mentioned in the notice, the board shall consider the applications and the management and conditions of the depositories which offer the most favorable terms and conditions for the handling of the funds of the district, and which the board finds have proper management and are in condition to warrant handling of district funds in the manner as provided under the chapter on depositories. Membership on the board of directors of an officer or director of a depository shall not disqualify the depository from being designated as a depository.

(4) If no applications acceptable to the board are received by the time stated in the notice, the board shall designate some qualified state depository or depositories within the district upon any terms and conditions as it may find advantageous to the district. Any designated depository shall be eligible to hold funds of the district to the extent that it is qualified as a depository for state funds.

SECTION 29. The board may negotiate and contract with the United States of America, or any agency thereof, concerning all lands, easements, and rights of way necessary for the relocation of any federal road, highway, parkway, or for the facilities appurtenant thereto.

SECTION 30. The district may act jointly with political subdivisions of the state and agencies, commissions, and instrumentalities thereof, and with the federal government and other agencies thereof in the performance of the purposes and services authorized in Sections 1 through 35 of this act, upon any terms and conditions as may be agreed upon by the directors.

SECTION 31. The provisions of any other law, general, special, or local, except as provided in Sections 1 through 35 of this act, shall not limit or restrict the powers granted under Sections 1 through 35 of this act. The district shall not be subject to regulation or control by the public service commission.

SECTION 32. The accomplishment of the purposes stated in Sections 1 through 35 of this act are for the benefit of the people of this state and for the improvement of their properties and industries. The district, in carrying out the purposes of Sections 1 through 35 of this act, will be performing an essential public function and shall not be required to pay any tax or assessment on the projects and related facilities or any part thereof. The interest on the bonds issued under Sections 1 through 35 of this act shall at all times be free from taxation within this state. The state hereby covenants with the holders of any bonds to be issued under Sections 1 through 35 of this act, that the district shall not be required to pay any taxes or assessments imposed by the state or any of its political subdivisions or taxing districts.

SECTION 33. Any municipality or county which is within the territorial limits of the district may advance funds to the district to pay the preliminary expenses, including engineers' reports, organization, or administration expenses, on any terms of repayment as the governing body of the municipality or county shall determine. Notwithstanding the provisions of any law to the contrary, any municipality or county may borrow money for a period not to exceed one (1) year from the date of any borrowing, for the purpose of making any advances. The board may repay any advances from the proceeds of any bonds issued under Sections 1 through 35 of this act.

SECTION 34. The overflow and inundation of sixteenth section lands or in lieu lands shall not constitute legal waste of those lands. The district shall pay a reasonable rental for the use of any lands to be overflowed. The damages of any overflow shall be determined by the chancery court of the county in which the land is located. Any sixteenth section lands that have been flooded shall be reforested before this project shall ever be abandoned.

SECTION 35. Nothing in Sections 1 through 35 of this act shall be construed to violate any provisions of the federal or state constitutions. All acts done under Sections 1 through 35 of this act shall be done in a manner as will conform to the provisions of the federal and state constitutions, whether expressly provided in this act or not. If any procedure under Sections 1 through 35 of this act is held by any court to be violative of either of such constitutions, the district may by resolution provide any alternative procedure conformable with such constitutions. If any provisions of Sections 1 through 35 of this act, shall be invalid, that fact shall not affect the creation of the district or the validity of any other provision of Sections 1 through 35 of this act.

SECTION 36. Sections 1 through 35 of this act shall be codified as a new chapter in Title 51.

SECTION 37. Section 51-11-7, Mississippi Code of 1972, is amended as follows:

51-11-7. Any county bordering on the Pearl River or any of its tributaries and any county through which the Pearl River or any of its tributaries runs may be included in the district. Each such county shall be considered a part of the Pearl River Basin. The counties within the Pearl River Basin and eligible to become members of the district are as follows: Attala, Copiah, * * * Hinds, Jefferson Davis, Lawrence, Leake, Lincoln, Madison, Marion, Neshoba, * * * Pike, Rankin, Scott, Simpson, Walthall, and Winston.

SECTION 38. Section 51-15-103, Mississippi Code of 1972, is amended as follows:

51-15-103. The Pat Harrison Waterway Commission may hereafter be organized in this state under the provisions of this article, in the manner hereafter provided for. This water management district shall be an agency of the state and a body politic and corporate, and may be composed and is composed of the following counties, to-wit: Clarke, Covington, Forrest, * * * Greene, * * * Jasper, Jones, Lamar, Lauderdale, Newton, Perry, Smith, Stone, and Wayne.

SECTION 39. The Attorney General of the State of Mississippi shall submit this act, immediately upon approval by the Governor, or upon approval by the Legislature subsequent to a veto, to the Attorney General of the United States or to the United States District Court for the District of Columbia in accordance with the provisions of the Voting Rights Act of 1965, as amended and extended.

SECTION 40. This act shall take effect and be in force from and after it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended.