House Bill NO. 1393

By Senator(s) Committee

SECTION 1. The following provision shall be codified as Section 37-59-301, Mississippi Code of 1972:

37-59-301. Notwithstanding any law or any provision of any law to the contrary, the following additional and supplemental powers and authorizations are hereby granted to each public school district in connection with the issuance of any debt, as defined herein.

(a) For purposes of this act, "debt" means any note, bond, lease or other evidence of indebtedness, that a district is authorized to issue under any provision of law.

(b) 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. Provided, however, that nothing in this act 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.

(c) This act shall be construed to be supplemental and additional to any powers conferred by other laws on school districts and not in derogation of any such powers not existing. The act is remedial in nature and shall be liberally construed. Provided, however, that this act shall not grant any extra authority to a school board to issue debt in any amount exceeding statutory limitations on assessed value of taxable property within such school district or the statutory limitations on debt maturities, and shall not grant any extra authority to impose, levy or collect a tax which is not otherwise expressly provided for.

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.

AN ACT TO CODIFY SECTION 37-59-301, MISSISSIPPI CODE OF 1972, TO AUTHORIZE SCHOOL DISTRICTS TO ISSUE REDUCED OR INTEREST-FREE DEBT PURSUANT TO FEDERAL LAW; AND FOR RELATED PURPOSES.