House Bill 408

AN ACT TO AUTHORIZE THE MISSISSIPPI TRANSPORTATION COMMISSION, COUNTY BOARDS OF SUPERVISORS AND THE GOVERNING AUTHORITIES OF MUNICIPALITIES TO CONSTRUCT, INDIVIDUALLY OR JOINTLY WITH OTHER GOVERNMENTAL ENTITIES, TOLL ROAD OR TOLL BRIDGE PROJECTS WITHIN THE STATE; TO AUTHORIZE THE MISSISSIPPI TRANSPORTATION COMMISSION, COUNTY BOARDS OF SUPERVISORS AND THE GOVERNING AUTHORITIES OF MUNICIPALITIES TO CONTRACT WITH ANY PERSON, CORPORATION OR OTHER BUSINESS LICENSED TO DO BUSINESS IN THE STATE FOR THE PURPOSE OF CONSTRUCTING TOLL ROADS OR BRIDGES; TO PRESCRIBE THE TERMS AND CONDITIONS FOR THE LETTING OF SUCH CONTRACTS AND THE RIGHTS AND DUTIES OF THE PARTIES ENTERING INTO SUCH CONTRACTS; TO AUTHORIZE COUNTIES, CITIES AND THE STATE TO ISSUE REVENUE BONDS TO FINANCE TOLL ROAD AND TOLL BRIDGE PROJECTS; TO AMEND SECTION 65-3-1, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.

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

SECTION 1. The Mississippi Transportation Commission, county boards of supervisors and/or the governing authorities of municipalities (hereinafter referred to as governmental entities), in their discretion, may construct, operate and maintain, individually or jointly with other governmental entities, one or more new toll roads or toll bridges in the state for motor vehicle traffic, including toll booths and related facilities, at and along such locations where an alternate untolled route exists. All such highways, pavement, bridges, drainage related structures and other infrastructure comprising the projects shall be built and maintained in accordance with not less than the minimum highway design, construction and maintenance standards established by the contracting governmental entity for such highways, infrastructure and facilities.

SECTION 2. (1) In addition to and as an alternative to any other authority granted by law including, but not limited to, Section 1 of this act, any governmental entities, as defined in Section 1 of this act, in their discretion, may contract, individually or jointly with other governmental entities, with any persons, corporations, partnerships or other businesses licensed to do business in the State of Mississippi (hereinafter referred to as "companies" or "company") for the purpose of designing, financing, constructing, operating and maintaining one or more new toll roads or toll bridges in the state for motor vehicle traffic, including toll booths and related facilities, at and along such locations where an alternate untolled route exists. Such contracts shall provide that land held by the governmental entities, whether in fee simple, as an easement or other interest, shall be leased or assigned to a company for design, construction, operation and maintenance of roadways, highways or bridges for motor vehicle traffic, toll booths and related facilities. All such highways, pavement, bridges, drainage related structures and other infrastructure comprising the projects shall be built and maintained in accordance with not less than the minimum highway design, construction and maintenance standards established by the contracting governmental entity for such highways, infrastructure and facilities. The contracting governmental entity shall conduct periodic inspections of any such project throughout the term of the contract to ensure compliance by the company. Failure of a company to comply with minimum standards established for the project by the contracting governmental entity shall constitute a breach and shall subject the company to liability on its bond or security or to rescission of the contract in accordance with the terms and provisions of the contract.

(2) Every contract entered into by a governmental entity under this section shall require a company to enter into bond and provide such security as the governmental entity determines may be necessary or advisable to ensure timely completion and proper execution and performance of the contract. The governmental entities are authorized to acquire such property or interests in property as may be necessary, by gift, purchase or eminent domain, for construction and maintenance of the highways or bridges built pursuant to contracts entered into under this section. Upon expiration, termination or rescission of the contract, all interests that the company may have in the land, infrastructure, facilities or other improvements to the property subject to contract shall terminate and automatically, by operation of law, be returned or conveyed to and vest in the State of Mississippi or the contracting governmental entity. Upon termination, expiration or rescission of the contract, the collection of tolls shall cease after all associated debts have been retired or released.

(3) During the term of any contract entered into under this section, the company may establish, charge and collect motor vehicle operators tolls for use of the highway and its facilities. The amount of such tolls, and any modification thereto, shall be subject to approval by the contracting governmental entity; however, all such contracts entered into with the Mississippi Transportation Commission may require a company to pay a percentage of all tolls collected to the Mississippi Department of Transportation. All such tolls paid to the department shall be deposited into the special bond sinking fund under Section 5 of this act and may be expended only as authorized by the Legislature.

(4) All statutes of this state relating to traffic regulation and control shall be applicable to motor vehicles operated upon highways and bridges constructed under this section and shall be enforceable by the Mississippi Department of Public Safety, the Mississippi Highway Safety Patrol or any other law enforcement agency having jurisdiction over such highways and bridges.

(5) The State of Mississippi, the Mississippi Transportation Commission, the Mississippi Department of Transportation, counties, municipalities or any other agency or political subdivision, or any officer or employee thereof, shall not be liable for any tortious act or omission arising out of the construction, maintenance or operation of any highway or bridge project under the provisions of this section where the act or omission occurs during the term of any such contract entered into by the Mississippi Transportation Commission or other governmental entity and a company.

(6) The powers conferred by this section shall be in addition to the powers conferred by any other law, general, special or local. This section shall be construed as an additional and alternative method of funding all or any portion of the purchasing, building, improving, owning or operating of roadways, highways or bridges under the jurisdiction of the Mississippi Transportation Commission, county boards of supervisors or municipal governing authorities, any provision of the laws of the state or any charter of any municipality to the contrary notwithstanding.

SECTION 3. (1) For the purpose of providing funds to defray the expenses of projects authorized pursuant to Sections 1 and 2 of this act, the board of supervisors of a county or the governing authorities of a municipality shall have the right to borrow money for the project, and to issue revenue bonds therefor in such principal amounts as the board of supervisors or governing authorities may determine to be necessary to provide sufficient funds to defray the expenses of projects authorized pursuant to Sections 1 and 2 of this act. The bonds shall be payable out of any revenues derived from the project, including grants or contributions from the federal government or other sources. Such bonds may be sold at public or private sale at not less than par and shall bear interest at a rate or rates not exceeding that allowed in Section 75-17-103. Any such bonds so issued shall not constitute a debt of the county, the municipality or any political subdivision of the county or the city within the meaning of any constitutional, statutory or charter restriction, limitation or provision. It shall be plainly stated on the face of each bond in substance that the bond has been issued pursuant to the authority granted in this section and that the taxing power of the county or municipality issuing the bond is not pledged to the payment of the bond or the interest on it and that the bond and the interest on it are payable solely from the revenues of the project for which the bond is issued.

(2) All bonds issued under the authority of this section shall bear such date or dates, shall be in such form or denomination, shall bear such rate of interest, and shall mature at such times as the county or municipality shall determine, but no bonds issued under the authority of this section shall mature more than thirty (30) years from the date of the issuance thereof and none of the bonds shall be sold for less than par and accrued interest. All bonds shall be sold in the manner now provided by law for the sale of bonds without any restrictions, limitations, requirements or conditions applicable to the borrowing of such money and the issuance of such bonds which are not herein contained. The denomination, form, place of payment and other details of such bonds may be determined by resolution or order of the board of supervisors of a county or the governing authorities of a municipality, and shall be executed on behalf of the county or municipality as is now provided by law.

(3) Before issuing any bonds under the provisions of this section, the board of supervisors of the county or the governing authorities of the municipality shall, by resolution spread upon the minutes, declare its intention to issue such bonds for the purposes authorized by this section and shall state in the resolution the amount of bonds proposed to be issued and shall likewise fix in the resolution the date upon which the board of supervisors of the county or the governing authorities of the municipality proposes to direct the issuance of the bonds. Notice of such intention shall be published once a week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the county or the municipality, with the first publication of the notice to be made not less than twenty-one (21) days prior to the date fixed in the resolution for the issuance of the bonds and the last publication to be made not more than seven (7) days prior to such date. If, on or before the date specified in the resolution, twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified electors of the county or municipality shall file a written protest against the issuance of the bonds, then an election upon the issuance of the bonds shall be called, and held, as provided in this section. If no such protest shall be filed, then the board of supervisors of the county or the governing authorities of the municipality may issue such bonds without an election on the question of the issuance of the bonds at any time within a period of two (2) years after the date specified in the resolution.

(4) If an election is called under the provisions of this section on the question of the issuance of bonds, the election shall be held, insofar as practicable, in the same manner as other elections are held in the county or municipality. At the election, all qualified electors of the county or municipality may vote and the ballots used in the election shall have printed thereon a brief statement of the amount and purposes of the proposed bond issue and the words "FOR THE BOND ISSUE" and the words "AGAINST THE BOND ISSUE," and the voters shall vote by placing a cross (X) or check mark (√) opposite their choice on the proposition.

(5) When the results of any election provided for in this section shall have been canvassed by the election commissioners of the county or municipality and certified by them to the proper authorities, it shall be the duty of the board of supervisors of the county or the governing authorities of the municipality to determine and adjudicate whether or not a majority of the qualified electors who voted in the election voted in favor of the issuance of the bonds and unless a majority of the qualified electors who voted in the election voted in favor of the issuance of the bonds, then the bonds shall not be issued. Should a majority of the qualified electors who vote in the election vote in favor of the bonds, the board of supervisors of the county or the governing authorities of the municipality may issue the bonds, either in whole or in part, within two (2) years from the date of such election, or within two (2) years after final favorable determination of any litigation affecting the issuance of such bonds at such time or times, and in such amount or amounts, not exceeding that specified in the notice of the election, as shall be deemed proper.

(6) This section, without reference to any other statute, shall be deemed to be full and complete authority for the issuance of bonds and borrowing of money as authorized in this section by counties or municipalities, and shall be construed as an additional and alternate method therefor. The bonds authorized by this section shall not constitute an indebtedness within the meaning of any constitutional or statutory limitation or restriction.

SECTION 4. (1) (a) A special fund, to be designated as the "Toll Road Revenue Bond 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 Mississippi Transportation Commission, to pay the costs incurred in defraying the expenses of projects authorized pursuant to Sections 1 and 2 of this act.

(2) Amounts deposited into such special fund shall be disbursed to pay the expenses described in subsection (1) of this section. If any monies in the special fund are not used within six (6) years after the date the proceeds of the bonds authorized under Sections 4 through 19 of this act are deposited into such fund, then the Mississippi Transportation Commission shall provide an accounting of such unused monies to the State Bond Commission. Promptly after the State Bond Commission has certified, by resolution duly adopted, that the projects for which the revenue bonds have been issued 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 4 through 19 of this act, in accordance with the proceedings authorizing the issuance of such bonds and as directed by the commission.

SECTION 5. For the purpose of providing for the payment of the principal of and interest upon bonds issued under the provisions of Sections 4 through 19 of this act, there is created a special bond sinking fund in the State Treasury. The special bond sinking fund shall consist of the monies required to be deposited into the fund under Section 2 of this act and such other amounts as the Legislature may direct to be paid into the fund by appropriation or other authorization by the Legislature. Unexpended amounts remaining in the special bond sinking 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 special bond sinking fund shall be deposited into such sinking fund.

SECTION 6. (1) The State Bond Commission, at one time or from time to time, may declare by resolution the necessity for issuance of revenue bonds of the State of Mississippi for the purpose of providing funds to defray the expenses of projects authorized pursuant to Sections 1 and 2 of this act. Upon the adoption of a resolution by the Mississippi Transportation Commission, declaring the necessity for the issuance of the revenue bonds authorized by this section, the Mississippi Transportation Commission shall deliver a certified copy of its resolution or resolutions to the State Bond Commission. Upon receipt of such resolution, the State Bond Commission, in its discretion, may act as the issuing agent, prescribe the form of the bonds, advertise for and accept bids, issue and sell, at public or private sale, 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. Revenue bonds issued under this section shall be in such principal amounts as the Mississippi Transportation Commission may determine to be necessary to provide sufficient funds to defray the expenses of projects authorized pursuant to Sections 1 and 2 of this act.

(2) Any investment earnings on amounts deposited into the special fund created in Section 4 of this act shall be used to pay debt service on bonds issued under Sections 4 through 19 of this act, in accordance with the proceedings authorizing issuance of such bonds.

SECTION 7. The principal of and interest on the bonds authorized under Sections 4 through 19 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 75-17-103, 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 thirty (30) 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 State Bond Commission.

SECTION 8. The bonds authorized by Sections 4 through 19 of this act shall be signed by the Chairman of the State Bond Commission, or by his facsimile signature, and the official seal of the State Bond 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 9. All bonds and interest coupons issued under the provisions of Sections 4 through 19 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 4 through 19 of this act, the State Bond Commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.

SECTION 10. The State Bond Commission shall act as the issuing agent for the bonds authorized under Sections 4 through 19 of this act, prescribe the form of the bonds, advertise for and accept bids, issue and sell, at public or private sale, 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 State Bond Commission is authorized and empowered to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under Sections 4 through 19 of this act from the proceeds derived from the sale of such bonds. The State Bond Commission shall sell such bonds on sealed bids at public or private 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 State Bond Commission.

The State Bond Commission, when issuing any bonds under the authority of Sections 4 through 19 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 11. Bonds issued under authority of Sections 4 through 19 of this act shall be revenue bonds of the state, the principal of and interest on which shall be payable solely from the revenue from projects authorized under Section 1 or 2 of this act. The bonds shall never constitute an indebtedness of the state within the meaning of any state constitutional provision or statutory limitation, and shall never constitute or give rise to a pecuniary liability of the state, or a charge against its general credit or taxing powers, and such fact shall be plainly stated on the face of each such bond. The bonds shall not be considered when computing any limitation of indebtedness of the state. All bonds issued under the authority of Sections 4 through 19 of this act and all interest coupons applicable thereto shall be construed to be negotiable instruments, despite the fact that they are payable solely from a specified source.

SECTION 12. Upon the issuance and sale of bonds under the provisions of Sections 4 through 19 of this act, the State Bond Commission shall transfer the proceeds of any such sale or sales to a special fund created in Section 4 of this act. The proceeds of such bonds shall be disbursed solely upon the order of the Mississippi Transportation Commission under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds.

SECTION 13. The bonds authorized under Sections 4 through 19 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 4 through 19 of this act. Any resolution providing for the issuance of bonds under the provisions of Sections 4 through 19 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 14. The bonds authorized under the authority of Sections 4 through 19 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 15. Any holder of bonds issued under the provisions of Sections 4 through 19 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 4 through 19 of this act, or under such resolution, and may enforce and compel performance of all duties required by Sections 4 through 19 of this act to be performed, in order to provide for the payment of bonds and interest thereon.

SECTION 16. All bonds issued under the provisions of Sections 4 through 19 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 17. Bonds issued under the provisions of Sections 4 through 19 of this act and income therefrom shall be exempt from all taxation in the State of Mississippi.

SECTION 18. The proceeds of the bonds issued under Sections 4 through 19 of this act shall be used solely for the purposes provided in Sections 4 through 19 of this act, including the costs incident to the issuance and sale of such bonds.

SECTION 19. 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 4 through 19 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 20. Section 65-3-1, Mississippi Code of 1972, is amended as follows:

65-3-1. Subject only to the provisions hereinafter contained, it shall be unlawful for any person, acting privately or in any official capacity or as an employee of any subdivision of the state, to charge or collect any toll or other charge from any person for the privilege of traveling on any part of any highway which has been heretofore or may hereafter be designated as a state highway, and being a part of the state highway system, or on or across any bridge wholly within this state, which is a part of any such highway.

For a violation of this section, any judge or chancellor may, in termtime or vacation, grant an injunction upon complaint of the Mississippi Transportation Commission.

However, none of the provisions of this section shall prohibit the collection of any toll or other charge for the privilege of traveling on, or the use of, any causeway, bridge, tunnel, toll bridge, or any combination of such facility constructed under the provisions of Sections 65-23-101 through 65-23-119, forming a part of U.S. Highway * * * 90 across the Bay of St. Louis, or across or under the East Pascagoula River or the West Pascagoula River on * * * U.S. Highway 90.

The provisions of this section shall be inapplicable to any toll road or bridge built or operated under the authority of Section 1 or Section 2 of House Bill No. , 2006 Regular Session.

SECTION 21. 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 22. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended.