MISSISSIPPI LEGISLATURE
2005 Regular Session
To: Ways and Means
By: Representative McCoy, Reynolds, Moss, Cummings, Formby, Taylor, Perkins, Montgomery, Franks, Moak, Peranich, Ward, Sullivan, Staples, Hudson, Pierce, McBride, Scott
AN ACT TO AMEND SECTIONS 136 THROUGH 151, CHAPTER 1, LAWS OF 2004, THIRD EXTRAORDINARY SESSION, TO PROVIDE THAT A CERTAIN PORTION OF THE PROCEEDS OF THE BONDS ISSUED TO PROVIDE FUNDS FOR THE SUPPLEMENTARY RURAL FIRE TRUCK FUND CREATED IN SECTION 152, CHAPTER 1, LAWS OF 2004, THIRD EXTRAORDINARY SESSION, SHALL BE DEPOSITED INTO THE RURAL FIRE TRUCK FUND CREATED IN SECTION 17-23-1 TO FUND APPLICATIONS FOR THE SEVENTH ROUND OF FIRE TRUCKS THAT ARE FILED WITH THE DEPARTMENT OF INSURANCE; TO AMEND SECTION 152, CHAPTER 1, LAWS OF 2004, THIRD EXTRAORDINARY SESSION, TO REVISE ELIGIBILITY REQUIREMENTS FOR COUNTIES AND MUNICIPALITIES TO PARTICIPATE IN THE SUPPLEMENTARY RURAL FIRE TRUCK ACQUISITION ASSISTANCE PROGRAM; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Sections 136 through 151, Chapter 1, Laws of 2004, Third Extraordinary Session, are amended as follows:
Section 136. As used in Sections 136 through 151 of this act, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:
(a) "Accreted value" of any bonds means, as of any date of computation, an amount equal to the sum of (i) the stated initial value of such bonds, 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.
Section137. (1) The Department of Finance and Administration, 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 the Supplementary Rural Fire Truck Fund created in Section 152 of Senate Bill No. 2010, 2004 Third Extraordinary Session and the Rural Fire Truck Fund created in Section 17-23-1. 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 136 through 151 of this act shall not exceed Ten Million Dollars ($10,000,000.00). No bonds authorized under Sections 136 through 151 of this act shall be issued after July 1, 2008.
(2) Seven Million Six Hundred Ninety Thousand Dollars ($7,690,000.00) of the proceeds of bonds issued pursuant to Sections 136 through 151 of this act shall be deposited into the Supplementary Rural Fire Truck Fund created in Section 152 of Senate Bill No. 2010, 2004 Third Extraordinary Session. Two Million Three Hundred Ten Thousand Dollars ($2,310,000.00) of the proceeds of bonds issued pursuant to Sections 136 through 151, Laws of Chapter 1, 2004 Third Extraordinary Session, shall be deposited into the Rural Fire Truck Fund created in Section 17-23-1 to fund applications for the seventh round of fire trucks that are filed with the Department of Insurance. Any investment earnings on bonds issued pursuant to Sections 136 through 151 of this act shall be used to pay debt service on bonds issued under Sections 136 through 151 of this act, in accordance with the proceedings authorizing issuance of such bonds.
Section 138. The principal of and interest on the bonds authorized under Sections 136 through 151 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 139. The bonds authorized by Sections 136 through 151 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 140. All bonds and interest coupons issued under the provisions of Sections 136 through 151 of this act have all the qualities and incidents of negotiable instruments under the provisions of the Uniform Commercial Code, and in exercising the powers granted by Sections 136 through 151 of this act, the commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.
Section 141. The commission shall act as the issuing agent for the bonds authorized under Sections 136 through 151 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 136 through 151 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 136 through 151 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 142. The bonds issued under the provisions of Sections 136 through 151 of this act 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 appropriated by the Legislature 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 143. Upon the issuance and sale of bonds under the provisions of Sections 136 through 151 of this act, the commission shall transfer the proceeds of any such sale or sales to the Supplementary Rural Fire Truck Fund created in Section 151 of Senate Bill No. 2010, 2004 Third Extraordinary Session and the Rural Fire Truck Fund created in Section 17-23-1 in the amounts provided for in Section 137 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 144. The bonds authorized under Sections 136 through 151 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 136 through 151 of this act. Any resolution providing for the issuance of bonds under the provisions of Sections 136 through 151 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 145. The bonds authorized under the authority of Sections 136 through 151 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 146. Any holder of bonds issued under the provisions of Sections 136 through 151 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 136 through 151 of this act, or under such resolution, and may enforce and compel performance of all duties required by Sections 136 through 151 of this act to be performed, in order to provide for the payment of bonds and interest thereon.
Section 147. All bonds issued under the provisions of Sections 136 through 151 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 148. Bonds issued under the provisions of Sections 136 through 151 of this act and income therefrom shall be exempt from all taxation in the State of Mississippi.
Section 149. The proceeds of the bonds issued under Sections 136 through 151 of this act shall be used solely for the purposes therein provided, including the costs incident to the issuance and sale of such bonds.
Section 150. 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 136 through 151 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 151. Sections 136 through 151 of this act shall be deemed to be full and complete authority for the exercise of the powers therein granted, but Sections 136 through 151 of this act shall not be deemed to repeal or to be in derogation of any existing law of this state.
SECTION 2. Section 152, Chapter 1, Laws of 2004, Third Extraordinary Session, is amended as follows:
Section 152. (1) There is established a supplementary rural fire truck acquisition assistance program to be administered by the Department of Insurance for the purpose of assisting counties and municipalities in the acquisition of fire trucks. The supplementary rural fire truck acquisition assistance program is in addition to the rural fire truck acquisition assistance program established in Section 17-23-1 or any other program by which counties and municipalities acquire fire trucks.
(2) There is created in the State Treasury a special fund to be designated as the "Supplementary Rural Fire Truck Fund" which shall consist of funds appropriated or otherwise made available by the Legislature in any manner and funds from any other source designated for deposit into such fund. Monies in the fund shall be used for the purpose of assisting counties and municipalities in the acquisition of fire trucks. 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 on amounts in the fund shall be deposited to the credit of the fund.
(3) (a) A county that meets the requirements provided herein may receive an amount of not more than Fifty Thousand Dollars ($50,000.00) per fire truck. Monies distributed under this section shall be expended only for the purchase of new fire trucks and such trucks must meet the National Fire Protection Association (NFPA) standards in the 1900 series.
(b) The board of supervisors of the county shall submit its request for the receipt of monies to the Department of Insurance. A committee composed of the Commissioner of Insurance, the State Fire Coordinator, the Director of the Rating Bureau and the Director of the State Fire Academy shall review the requests by the boards of supervisors and shall determine whether the county or municipality for which the board of supervisors has requested a truck meets the requirements of eligibility under this section.
(c) To be eligible to receive monies under this section:
(i) A county or municipality must pledge to set aside or dedicate each year as matching funds, for a period not to extend over ten (10) years, local funds in an amount equal to or not less than one-tenth (1/10) of the amount of monies for which it is requesting distribution from the Supplementary Rural Fire Truck Fund, which pledged monies may be derived from local ad valorem tax authorized by law or from any other funds available to the county or municipality, except for those funds received by municipalities or counties from the Municipal Fire Protection Fund or the County Volunteer Fire Department Fund, as defined in Sections 83-1-37 and 83-1-39.
(ii) A municipality must provide adequate documentation of its contract with the county that requires the municipality to provide fire protection in rural areas. The term "rural areas" means any area within the county located outside the boundaries of an incorporated municipality or any incorporated municipality with a population of two thousand five hundred (2,500) or less.
(iii) A county or a municipality, designated by the county, must have exhausted all rounds of applications for fire trucks available to it under Section 17-23-1.
(d) The Department of Insurance shall maintain an accurate record of all monies distributed to counties and municipalities and the number of fire trucks purchased and the cost for each fire truck, such records to be kept separate from other records of the Department of Insurance; notify counties and municipalities of the supplementary rural fire truck acquisition assistance program and the requirements for them to become eligible to participate; adopt and promulgate such rules and regulations as may be necessary and desirable to implement the provisions of this act; and file with the Legislature a report detailing how monies made available under this chapter were distributed and spent during the preceding portion of the fiscal year in each county and municipality, the number of fire trucks purchased, the counties and municipalities making such purchases and the cost of each fire truck purchased.
SECTION 3. This act shall take effect and be in force from and after its passage.