MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Appropriations
By: Representatives Baker (74th), Blackmon, Gunn, Martinson, McGee, Moore, Rogers (61st), Weathersby, Wooten
AN ACT TO AMEND SECTION 51-9-107, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE APPOINTMENT OF ADDITIONAL MEMBERS OF THE BOARD OF DIRECTORS OF THE PEARL RIVER VALLEY WATER SUPPLY DISTRICT BY MADISON COUNTY AND RANKIN COUNTY; TO AMEND SECTION 51-9-155, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE GOVERNING AUTHORITY OF EACH COUNTY THAT IS A PART OF THE DISTRICT AND THAT BORDERS ON THE RESERVOIR, OR ANY MUNICIPALITY WITHIN THAT COUNTY, MAY ADOPT, ENACT AND/OR ENFORCE ANY ZONING ORDINANCE OR REGULATION WITHIN THE BOUNDARIES OF THE APPLICABLE COUNTY OR MUNICIPALITY; TO AMEND SECTIONS 51-9-121, 51-9-125, 51-9-127 AND 51-9-193, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT AND TO REQUIRE THAT THE DISTRICT COMPLY WITH THE MISSISSIPPI ADMINISTRATIVE PROCEDURES LAW WITH REGARD TO ITS BYLAWS, RULES OR REGULATIONS; TO BRING FORWARD SECTIONS 51-9-122, 51-9-122.1, 51-9-131, 51-9-133, 51-9-135, 51-9-137, 51-9-139, 51-9-157, 51-9-195, 51-9-197, 51-9-201, 51-9-205, 51-9-207, 51-9-209, 51-9-211, 51-9-213 AND 51-9-217, MISSISSIPPI CODE OF 1972, WHICH ARE PROVISIONS RELATED TO THE POWERS AND AUTHORITY OF THE DISTRICT, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 51-9-107, Mississippi Code of 1972, is amended as follows:
51-9-107. All powers of the district shall be exercised by a board of directors, to be composed of the following:
(a) Each member of the Pearl River Industrial Commission whose county becomes a part of the Pearl River Valley Water Supply District shall be a member of the Board of Directors of the Pearl River Valley Water Supply District. Such directors shall serve on this board during their term of office on the Pearl River Industrial Commission. In addition, the board of supervisors of each county which becomes a part of the district shall appoint one (1) additional member.
(b) From and after July 1, 2010, the board of supervisors of Madison County and Rankin County shall each appoint two (2) additional members to the board of directors of the district. Each additional member appointed under the authority of this paragraph (b) of this section shall be a resident domiciled in such county or a person who is a lessee under a residential property lease executed between the person and the district.
(c) The Mississippi Commission on Environmental Quality, the Mississippi Commission on Wildlife, Fisheries and Parks, the State Forestry Commission and the State Board of Health each shall * * * appoint one (1) staff member at the level of director, or comparable division or bureau chief, from that commission to * * * the district's board, to serve at the pleasure of the respective commission appointing him.
(d) Each director shall take and subscribe to the oath of office required by Section 268 of the Constitution of the State of Mississippi before a chancery clerk, that he will faithfully discharge the duties of the office, which oath shall be filed with the said clerk and by him preserved.
(e) Each director shall receive per diem compensation in the amount as provided in Section 25-3-69 for attending each meeting of the board and for each day spent in attending to the necessary business of the district and shall be reimbursed for actual expenses thus incurred upon express authorization of the board, including travel expenses, as provided in Section 25-3-41.
(f) The board of directors shall annually elect from its number a president and a vice president of the district, and such other officers as in the judgment of the board are necessary. 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. 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. The board shall also appoint a secretary and a treasurer who may or may not be members of the board, and it may combine those offices. The treasurer shall give bond in the sum of not less than Fifty Thousand Dollars ($50,000.00) as set by the board of directors and each director shall give bond in the sum of not less than Ten Thousand Dollars ($10,000.00), and the premiums on said bonds shall be an expense of the district. The condition of each such bond shall be that the treasurer or director will faithfully perform all duties of office and account for all money which shall come into his custody as treasurer or director of the district.
SECTION 2. Section 51-9-121, Mississippi Code of 1972, is amended as follows:
51-9-121. The Pearl River Valley Water Supply District through its board of directors is hereby empowered:
(a) To impound overflow water and the surface water of the Pearl River or its tributaries within the project area, within or without this district at the place or places and in the amount as may be approved by the Office of Land and Water Resources of the State of Mississippi, by the construction of a dam or dams, reservoir or reservoirs, works, plants, and any other necessary or useful related facilities contemplated and described as a part of the project within or without the district, to control, store, and preserve these waters, and to use, distribute, and sell the same. The Pearl River Valley Water Supply District is also empowered to construct or otherwise acquire within the project area all works, plants, or other facilities necessary or useful to the project for the purpose of processing the water and transporting it to cities and others for domestic, municipal, commercial, industrial, agricultural, and manufacturing purposes and is hereby given the power to control open channels for water delivery purposes.
(b) To acquire and develop any other available water necessary or useful to the project and to construct, acquire, and develop all facilities within the project area deemed necessary or useful with respect thereto.
(c) To prevent or aid in the prevention of damage to person or property from the waters of the Pearl River or any of its tributaries.
(d) To forest and reforest, and to aid in the foresting and reforesting of the project area, and to prevent and aid in the prevention of soil erosion and floods within this area; to control, store, and preserve within the boundaries of the project area the waters of the Pearl River or any of its tributaries, for irrigation of lands and for prevention of water pollution.
(e) To acquire by purchase, lease, gift, or in any other manner (otherwise than by condemnation) and to maintain, use, and operate all property of any kind, real, personal, or mixed, or any interest therein within the project area, within or without the boundaries of the district, necessary for the project and convenient to the exercise of the powers, rights, privileges, and functions conferred upon the district by this article, except as may otherwise be provided in Section 51-9-155 or any other provision of this article.
(f) To acquire by condemnation all property of any kind, real, personal, or mixed, or any interest therein within the project area not exceeding one-quarter (1/4) mile from the outside line of the three hundred (300) feet above sea level contour on each side of Pearl River except as provided for rights-of-way under subsection (g) of this section, within or without the boundaries of the district, necessary for the project and the exercise of the powers, rights, privileges, and functions conferred upon the district by this article, according to the procedure provided by law for the condemnation of lands or other property taken for rights-of-way or other purposes by railroads, telephone, or telegraph companies. For the purposes of carrying out this article, the right of eminent domain of the district shall be superior and dominant to the right of eminent domain of railroad, telegraph, telephone, gas, power, and other companies or corporations, and shall be sufficient to enable the acquisition of county roads, state highways, or other public property in the project area and the acquisition, or relocation, of the above mentioned utility property in the project area; however, Mississippi Highway 43 as presently located shall be kept open as part of the state highway system. The cost of right-of-way purchases, rerouting, and elevating all other county maintained roads affected by construction of the reservoir shall be borne by the water district, and new construction shall be of equal quality as in roads existing as of May 5, 1958. The amount and character of interest in land, other property, and easements thus to be acquired shall be determined by the board of directors, and their determination shall be conclusive and shall not be subject to attack in the absence of manifold abuse of discretion or fraud on the part of such board in making such determination. However,
(i) In acquiring lands, either by negotiation or condemnation, the district shall not acquire minerals or royalties within the project area; sand and gravel shall not be considered as minerals within the meaning of this section; and
(ii) No person or persons owning the drilling rights or the right to share in production shall be prevented from exploring, developing, or producing oil or gas with necessary rights-of-way for ingress and egress, pipe lines, and other means of transporting these products by reason of the inclusion of such lands or mineral interests within the project area, whether below or above the water line; but any such activities shall be under such reasonable regulations by the board of directors as will adequately protect the reservoir; and
(iii) In drilling and developing, these persons are hereby vested with a special right to have the mineral interest integrated and their lands developed in such drilling unit or units as the State Oil and Gas Board shall establish after due consideration of the rights of all of the owners to be included in the drilling unit.
Moreover, where any site or plot of land is to be rented, leased, or sold to any person, firm, or corporation for the purpose of operating recreational facilities thereon for profit, then the board shall, by resolution, specify the terms and conditions of the sale, rental, or lease, and shall advertise for public bids thereon. When bids are received, they shall be publicly opened by the board, and the board shall thereupon determine the highest and best bid submitted and shall immediately notify the former owner of the site or plot of the amount, terms, and conditions of the highest and best bid. The former owner of the site or plot shall have the exclusive right at his option, for a period of thirty (30) days after the determination of the highest and best bid by the board, to rent, lease, or purchase said site or plot of land by meeting such highest and best bid and by complying with all terms and conditions of the renting, leasing, or sale as specified by the board. However, the board shall not in any event rent, lease, or sell to any former owner more land than was taken from the former owner for the construction of the project, or one-quarter (1/4) mile of shoreline, whichever is the lesser. If this option is not exercised by the former owner within a period of thirty (30) days, then the board shall accept the highest and best bid submitted.
Any bona fide, resident householder, actually living or maintaining a residence on land taken by the district by condemnation shall have the right to repurchase not exceeding forty (40) acres of his former land or other available land from the board of directors for a price not exceeding the price paid for condemning his land.
(g) To require the necessary relocation of roads and highways, railroad, telephone, and telegraph lines and properties, electric power lines, gas pipelines and mains and facilities in the project area, or to require the anchoring or other protection of any of these, provided due compensation is first paid the owners thereof or agreement is had with the owners regarding the payment of the cost of the relocation. It is further provided that the district is hereby authorized to acquire easements or rights-of-way in or outside of the project area for the relocation of the roads, highways, railroad, telephone, and telegraph lines and properties, electric power lines, gas pipelines and mains and facilities, and to convey the same to the owners thereof in connection with the relocation as a part of the construction of the project; however, the directors of the district shall not close any public access road to the reservoir existing prior to the construction of the reservoir unless the board of supervisors of the county in which the road is located agrees.
(h) To overflow and inundate any public lands and public property, including sixteenth section lands and in lieu lands, within the project area.
(i) To construct, extend, improve, maintain, and reconstruct, to cause to be constructed, extended, improved, maintained, and reconstructed, and to use and operate facilities of any kind within the project area necessary or convenient to the project and to the exercise of such powers, rights, privileges, and functions.
(j) To sue and be sued in its corporate name.
(k) To adopt, use, and alter a corporate seal.
(l) To make bylaws, rules and regulations for the management and regulation of its affairs, provided that the district shall comply with the Mississippi Administrative Procedures Law when adopting, amending or repealing any bylaw, rule or regulation authorized under this section or any other provision of this chapter.
(m) To employ engineers, attorneys, and all necessary agents and employees to properly finance, construct, operate, and maintain the project and the plants and facilities of the district and carry out the provisions of this article, and to pay reasonable compensation for the services. For all services in connection with the issuance of bonds as provided in this article, the attorney's fee shall not exceed one-quarter of one percent (1/4 of 1%) of the principal amount of said bonds. For any other services, only reasonable compensation shall be paid for these services. The board shall have the right to employ a general manager, who shall, at the discretion of the board, have the power to employ and discharge employees. Without limiting the generality of the foregoing, it may employ fiscal agents or advisors in connection with its financing program and in connection with the issuance of its bonds.
(n) To make contracts and to execute instruments necessary or convenient to the exercise of the powers, rights, privileges, and functions conferred upon it by this article.
(o) To make or cause to be made surveys and engineering investigations relating to the project, or related projects, for the information of the district to facilitate the accomplishment of the purposes for which it is created.
(p) To apply for and accept grants from the United States of America, or from any corporation or agency created or designated by the United States of America, and to ratify and accept applications heretofore or hereafter made by voluntary associations to these agencies for grants to construct, maintain, or operate any project or projects which hereafter may be undertaken or contemplated by the district.
(q) To do any other acts or things necessary or convenient to the exercising of the powers, rights, privileges, or functions conferred upon it by this article or any other law, except as may be otherwise provided in Section 51-9-155 or any other provision of this article.
(r) To make contracts in the issuance of bonds that may be necessary to insure the marketability thereof.
(s) To enter into contracts with municipalities, corporations, districts, public agencies, political subdivisions of any kind, and others for any services, facilities or commodities that the project may provide. The district is also authorized to contract with any municipality, corporation, or public agency for the rental, leasing, purchase, or operation of the water production, water filtration or purification, water supply and distributing facilities of the municipality, corporation, or public agency upon such consideration as the district and such entity may agree. Any such contract may be upon any terms and for any time as the parties may agree, and it may provide that it shall continue in effect until bonds specified therein and refunding bonds issued in lieu of these bonds are paid. Any contract with any political subdivision shall be binding upon said political subdivision according to its terms, and any municipalities or other political subdivisions shall have the power to enter into such contracts as in the discretion of the governing authorities thereof would be to the best interest of the people of the municipality or other political subdivision. These contracts may include, within the discretion of the governing authorities, a pledge of the full faith and credit of the political subdivisions for the performance thereof.
(t) To fix and collect charges and rates for any services, facilities, or commodities furnished by it in connection with the project, and to impose penalties for failure to pay these charges and rates when due.
(u) To operate and maintain within the project area with the consent of the governing body of any city or town located within the district, any works, plants, or facilities of any city deemed necessary or convenient to the accomplishment of the purposes for which the district is created.
(v) Subject to the provisions of this article, from time to time to lease, sell, or otherwise dispose of any property of any kind, real, personal, or mixed, or any interest therein within the project area or acquired outside the project area as authorized in this article, for the purpose of furthering the business of the district.
(w) When, in the opinion of the board of directors as shown by resolution duly passed, it shall not be necessary to the carrying on of the business of the district that the district own any lands acquired, then the board shall advertise these lands for sale to the highest and best bidder for cash and shall receive and publicly open the bids thereon. The board shall, by resolution, determine the highest and best bid submitted for such land and shall thereupon notify the former owner, his heirs or devisees, by registered mail of the land to be sold and the highest and best bid received therefor, and the former owner, or his heirs or devisees, shall have the exclusive right at his or their option for a period of thirty (30) days in which to meet the highest and best bid and to purchase the property.
(x) In addition to, or in conjunction with, any other powers and duties of the district arising under this chapter, to exercise those powers, duties and functions of a joint water management district set forth in Sections 51-8-27 through 51-8-55, except the power of eminent domain under Section 51-8-33. Before exercising those powers and duties, the district must comply with the provisions of Sections 51-8-63 and 51-8-65. In exercising the functions of a joint water management district, the district may apply to the Environmental Quality Permit Board for delegation of those powers and duties as provided by Section 51-3-15, and to apply to the Mississippi Commission on Environmental Quality for delegation of those powers and duties provided by Section 51-3-21.
Any transaction regarding any property under the provisions of this section shall be executed in accordance with the provisions of Section 29-1-1.
SECTION 3. Section 51-9-125, Mississippi Code of 1972, is amended as follows:
51-9-125. Except as may be otherwise provided in Section 51-9-155 or any other provision of this article, the Pearl River Valley Water Supply District is authorized to establish or otherwise provide for public parks and recreation facilities and for the preservation of fish and wildlife and to acquire land otherwise than by condemnation except as provided in subsection (f) of Section 51-9-121, for such purposes, within the project area.
SECTION 4. Section 51-9-127, Mississippi Code of 1972, is amended as follows:
51-9-127. (1) Except as otherwise provided in Section 51-9-155 or any other provision of this article, the board of directors of the district shall have the power to 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 thereof, and to regulate residence, hunting, fishing, boating, camping, circulation of vehicular traffic on land, the parking of such vehicles, and all recreational and business privileges in, along, or around any such reservoir, any body of land, or any easement owned by the district. The board shall comply with the Mississippi Administrative Procedures Law when adopting, amending or repealing any regulations authorized under this section or under any other provision of this chapter.
(2) In addition, all * * * regulations prescribed by the board of directors shall be published in a daily newspaper of statewide circulation and in a newspaper of general circulation in each county comprising the area of the district. The regulations shall have the full force and effect of law, and violation thereof shall be punishable, upon conviction in a court of competent jurisdiction, by fine not to exceed One Thousand Dollars ($1,000.00), as may be prescribed in such regulations, or by imprisonment not to exceed fifteen (15) days, or both the amount of the fine and the term of the imprisonment, within the maximum limit set by this statute and within the maximum limit prescribed in such regulations, to be determined by the court.
All such rules and regulations so prescribed and the penalties fixed thereunder relating to hunting, fishing, and boating shall not conflict with, exceed, alter, or suspend any regulations, rules, or penalties prescribed by general statute or by the Mississippi Commission on Wildlife, Fisheries and Parks; and all fines and penalties levied and collected under this article shall be remitted and accounted for in accordance with the general statutes relating thereto.
(3) In the event of a violation of any regulation adopted to prevent pollution of the waters in any reservoir owned by the district, or the threat of continuous violation thereof, the district shall have authority to sue for and obtain damages and other appropriate relief, including injunctive relief.
SECTION 5. Section 51-9-155, Mississippi Code of 1972, is amended as follows:
51-9-155. (1) The provisions of any other law, general, special or local, except as provided in this article and in subsection (2) of this section, shall not limit or restrict the powers granted by this article. The water supply district herein provided for shall not be subject to regulation or control by the Public Service Commission.
(2) The governing authority of each county that is a part of the district and that borders on the reservoir under the jurisdiction of the Pearl River Valley Water Supply District, or any municipality within that county, may adopt, enact and/or enforce any zoning ordinance or regulation within the boundaries of the applicable county or municipality, and the district may not limit or restrict that ordinance or regulation or interfere with its enforcement.
SECTION 6. Section 51-9-193, Mississippi Code of 1972, is amended as follows:
51-9-193. The district, through its board of directors, in addition to any and all powers now or hereafter granted to it, is hereby empowered:
(a) To construct, operate and maintain a waterworks and water supply system in furtherance of the purposes of this act on land now owned or hereafter acquired by it for said purpose and to construct or otherwise acquire all waterworks or other facilities deemed necessary or useful for the treatment and processing of water available to it and the transportation and supplying of such water to public agencies or to the district or persons situated on land owned by the district for municipal, commercial, domestic, industrial, agricultural and manufacturing purposes.
(b) To acquire by condemnation or otherwise any and all property of any kind, real, personal, or mixed, or any interest therein, necessary or convenient to the exercise of the purposes of and the powers granted by this act. Any property acquired by condemnation shall be acquired according to the procedure otherwise provided by law for the condemnation of property by public agencies. For the purposes of this act, the right of eminent domain shall be superior and dominant to the right of eminent domain of railroad, telephone, telegraph, gas, power and other companies or corporations.
The amount and character of interest in land, other property, and easements thus to be acquired shall be determined by the board of directors, and their determination shall be conclusive and shall not be subject to attack in the absence of manifold abuse of discretion or fraud on the part of such board in making such determination. However:
(i) In acquiring lands, either by negotiation or condemnation, the district shall not acquire minerals or royalties; provided that sand and gravel shall not be considered as minerals within the meaning of this section; and
(ii) No person or persons owning the drilling rights or the right to share in production shall be prevented from exploring, developing or producing oil or gas with necessary rights-of-way for ingress and egress, pipelines and other means of transporting interests on any land or interest therein of the district held or used for the purposes of this act; but any such activities shall be under such reasonable regulations by the board of directors as will adequately protect the waterworks and water supply system of the district contemplated by this act.
(c) To require the necessary relocation or rerouting of roads and highways, railroad, telephone and telegraph lines and properties, electric power lines, gas pipelines and related facilities, or to require the anchoring or other protection of any of these, provided due compensation is first paid to the owners thereof or agreement is had with such owners regarding the payment of the cost of such relocation, and to acquire easements or rights-of-way for such relocation or rerouting and to convey the same to the owners of the property being relocated or rerouted in connection with the purposes of this act.
(d) To enter into contracts with any person in furtherance of any of the purposes authorized by this act upon such consideration as the board of directors and such person may agree. Any such contract may extend over any period of time, notwithstanding any provision or rule of law to the contrary, may be upon such terms as the parties thereto shall agree, and may provide that it shall continue in effect until bonds specified therein, refunding bonds issued in lieu of such bonds and all other obligations specified therein are paid or terminated. Any such contract shall be binding upon the parties thereto according to its terms.
(e) To make and enforce, and from time to time amend and repeal, bylaws and rules and regulations for the management of its business and affairs and for the construction, use, maintenance and operation of any of the waterworks or water supply system under its management and control and any other of its properties, provided that the board shall comply with the Mississippi Administrative Procedures Law when adopting, amending or repealing any regulations authorized under this section or under any other provision of this chapter.
SECTION 7. Section 51-9-122, Mississippi Code of 1972, is brought forward as follows:
51-9-122. (1) At any time more than fifteen (15) years after the commencement date of any residential lease from the district, the leaseholder shall have the option to renew and extend the lease for a new sixty-year term by giving the district notice of his exercise of this option to renew.
(2) At any time after the first fifteen (15) years of the term of any residential lease, the then present lessee may obtain from the district a new sixty-year lease on the terms and conditions contained in the then current lease form approved for use in residential leases with the exception of rent. Rent under such sixty-year leases will be payable on the same annual payment date as rent under the lease being renewed. The maximum annual rental under the new lease will be determined by the district as follows:
(a) Renewal of Leases with Fixed Rental (nonescalating): The district will recompute the annual rental due under the lease being renewed as if the lease had contained annual rents at the fixed amount stated in the lease for the first ten-year period, escalating thereafter at ten percent (10%), rounded to the nearest Five Dollars ($5.00), every five-year period. The annual rental which would have been payable as of the renewal date will be the annual rent payable for the first ten-year period of the renewed lease. Annual rental will escalate thereafter at ten percent (10%), rounded to the nearest Five Dollars ($5.00), every five (5) years. Recomputed annual rental will be payable from and after the first day of the renewed lease term and not for the period prior to renewal.
(b) Renewal of Leases with Escalating Rental: Annual rental will remain payable in accordance with the terms of the lease being renewed with rental continuing to escalate at ten percent (10%), rounded to the nearest Five Dollars ($5.00), every five (5) years during the renewed term.
(3) The district will charge a reasonable nonrefundable fee for preparation of the renewal lease. The lessee will be responsible for obtaining the consent of any mortgage holder to the lease modification.
(4) At any time a lessee is found to be in default or in breach of the terms and conditions contained in the lease, the district shall give thirty (30) days written notice to such lessee before terminating the lease. Such notice shall be by certified mail and shall specifically state the default or breach. If the lessee does not cure the default or breach within thirty (30) days of such notice, then the district shall give written notice to the holder of any mortgage or deed of trust on the leasehold and such holder shall thereupon have thirty (30) days to cure the default or breach before the lease is terminated.
SECTION 8. Section 51-9-122.1, Mississippi Code of 1972, is brought forward as follows:
51-9-122.1. (1) Any holder of a lease that is not a residential lease subject to Section 51-9-122, Mississippi Code of 1972, shall have the right, exclusive of all other persons, to renew the lease at fair market value at any time prior to expiration of the lease.
(2) Other than the right of a lessee to renew at fair market value, nothing in this section is intended to limit or restrict the right of the district to negotiate terms of any lease in furtherance of any of the purposes authorized by this section and in a manner deemed favorable to the district by the board of directors.
(3) (a) Prior to entering into any lease under this section, whether a new or renewal lease, the district shall obtain at least one (1) appraisal from a competent appraiser establishing the fair market rental value of the land, exclusive of improvements made by the leaseholder or any predecessor in title, and, except as otherwise provided in paragraph (b) of this subsection, the land shall not be leased for an amount less than the fair market rental as determined by the appraiser and approved by the board. The district may require such other terms as it deems advisable. The cost of the appraisal shall be paid by the district and may be included in the costs of lease renewal to be reimbursed by the lessee.
(b) The lessee may obtain an appraisal from a certified real estate appraiser establishing the fair market rental value of the land. If the fair market rental value of the land established in such appraisal differs from the fair market rental value of the land established in the appraisal obtained by the district, the land shall not be leased for an amount less than the average of the fair market rental value established by the two (2) appraisals.
(4) For the purposes of this section, "terms" means rent, rent escalation clauses, rental adjustment periods and method of determination, term of years, permitted use, condition of improvements, removal of improvements, and compliance with district rules and regulations.
(5) In the event a lessee has not obtained a new lease pursuant to the provisions of this section, any preemptive right of the lessee to lease the property shall be extinguished upon expiration of the lease, and, at the direction of the district, the lessee shall remove all improvements and other structures on the property immediately upon termination of the lease.
SECTION 9. Section 51-9-131, Mississippi Code of 1972, is brought forward as follows:
51-9-131. In each county of the State of Mississippi which is part of the Pearl River Valley Water Supply District, beginning with the ad valorem tax assessment for the calendar year 1960, payable on or before February 1, 1961, and so long as any bonds issued hereunder are outstanding, the tax collector of said county shall pay into the depository selected by said water district for said purpose the amount of two (2) mills of all ad valorem taxes due by said county to the State of Mississippi which is collected by the tax collector of said county, which may be collected by any other lawful taxing agency of said county and state and for said county, and the State of Mississippi shall continue to levy not less than two (2) mills ad valorem taxes on each county in the district so long as any bonds issued pursuant to this article remain outstanding.
SECTION 10. Section 51-9-133, Mississippi Code of 1972, is brought forward as follows:
51-9-133. The board of directors of the district is hereby authorized and empowered to issue bonds of the district for the purpose of paying the costs of acquiring, owning, constructing, operating, repairing, and maintaining the projects and works specified herein, including related facilities, and including all financing and financial advisory charges, interest during construction, engineering, legal, and other expenses incidental to and necessary for the foregoing, or for the carrying out of any power conferred by this article. Said board of directors is authorized and empowered to issue such bonds at such times and in such amounts as shall be provided for by resolution of the said board of directors, not to exceed the limitation prescribed in Section 51-9-137. All such bonds so issued by said district shall be secured solely by a pledge of the net revenues which may now or hereafter come to the district, by the pledge of the avails of the two (2) mill ad valorem tax levy provided for in Section 51-9-131, and by the pledge of the special tax levy of two (2) mills provided for in Section 51-9-139; and such bonds shall not constitute general obligations of the State of Mississippi or of the counties comprising said district, and shall not be secured by a pledge of the full faith, credit, and resources of said state or of said counties. Bonds of the district shall not be included in computing any present or future debt limit of any county in such district under any present or future law. "Revenues" as used in this article shall mean all charges, rentals, tolls, rates, gifts, grants, tax proceeds, monies, and all other funds coming into the possession of the district by virtue of the provisions of this article, except the proceeds from the sale of bonds issued hereunder. "Net revenues" as used in this article shall mean the revenues after payment of costs and expenses of operation and maintenance of the project and related facilities.
SECTION 11. Section 51-9-135, Mississippi Code of 1972, is brought forward as follows:
51-9-135. All bonds provided for by Sections 51-9-133 and 51-9-145 of this article shall be negotiable instruments within the meaning of the Uniform Commercial Code, shall be lithographed or engraved and printed in two (2) or more colors to prevent counterfeiting, shall be in denominations of not less than One Hundred Dollars ($100.00) nor more than Five Thousand Dollars ($5,000.00), shall be registered as issued, and shall be numbered in a regular series from one (1) upward. Each such bond shall specify on its face the purpose for which it was issued and the total amount authorized to be issued, it shall be payable to bearer, and the interest to accrue thereon shall be evidenced by proper coupons to be attached thereto. Such bonds shall bear interest at such rate or rates, not exceeding six percent (6%) per annum, as may be determined by the sale of such bonds. They shall mature annually in such amounts and at such times as shall be provided by the resolution of the board of directors. However, no bond issued under Section 51-9-133 shall have a longer maturity than forty (40) years from January 1, 1961, and the first maturity date thereof shall be not more than five (5) years from the date of such bonds. The denomination, form and place or places of payment of such bonds shall be fixed in the resolution of the board of directors of the district. Such bonds shall be signed by the president and secretary of such board with the seal of the district affixed thereto, but the coupons may bear only the facsimile signatures of such president and secretary. All interest accruing on such bonds so issued shall be payable semiannually, except that the first interest coupon attached to any such bond may be for any period not exceeding one (1) year.
Such bonds may provide that they may be called in, paid and redeemed in inverse numerical order on any interest date prior to maturity, upon not less than thirty (30) days' notice to the paying agent or agents designated in such bonds, and at such premium as may be designated in such bonds. In no case shall any premiums exceed six percent (6%) of the face value of such bonds.
All such bonds shall contain in substance a statement to the effect that they are secured solely by a pledge of the net revenues of such district, including the avails of the two-mill ad valorem tax levy provided for in Section 51-9-131, and the avails of the special tax levy of two (2) mills provided for in Section 51-9-139, and that they do not constitute general obligations of the State of Mississippi or of the counties comprising said district, and are not secured by a pledge of the full faith, credit and resources of said state or of such counties.
All such bonds as provided for herein shall be sold at public sale as now provided by law. 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 six percent (6%) per annum computed with relation to the absolute maturity of the bonds, in accordance with standard tables of bond values, excluding from such computation the amount of any premium to be paid on redemption of any bonds prior to maturity.
This article shall be full and complete authority for the issuance of the bonds provided for herein, and no restriction or limitation otherwise prescribed by law shall apply herein.
Notwithstanding the foregoing provisions of this section, bonds referred to hereinabove may be issued pursuant to the supplemental powers and authorizations conferred by the provisions of the Registered Bond Act, being Sections 31-21-1 through 31-21-7.
SECTION 12. Section 51-9-137, Mississippi Code of 1972, is brought forward as follows:
51-9-137. Bonds issued pursuant to this article shall not exceed Twenty-five Million Dollars ($25,000,000.00) in principal amount.
SECTION 13. Section 51-9-139, Mississippi Code of 1972, is brought forward as follows:
51-9-139. To provide additional funds for the payment of the principal of, interest on, and other charges in connection with bonds issued under the provisions of this article, in the event its anticipated revenue and funds are found to be insufficient therefor by order entered on its minutes each year that such tax is found necessary, a copy of which order shall be published for two (2) consecutive weeks in a newspaper published in each county of the district thirty (30) days before such levy is made by the board of supervisors, the district is also empowered to levy annually a special tax, not to exceed two (2) mills upon all of the taxable property within such district, on or before the first Monday of September of each year and shall certify the levy to the boards of supervisors of the various counties in said district; and it shall be the duty of the boards of supervisors to make said levy on each tract of land or other property in said county, according to the assessed valuation thereof. Such taxes shall be collected by the tax collectors of the respective counties in said district, who shall deposit them in such depository as shall be selected by the board of directors of the district. Where bonds are issued payable wholly or partially from ad valorem taxes, it shall be the duty of the board of directors to levy a tax sufficient, together with pledged revenues other than the taxes authorized hereunder, to pay the bonds and the interest thereon as such bonds and interest become due, provided that in no event shall the tax levied exceed two (2) mills. Any part of this levy lost through homestead exemption shall not be reimbursed by the state.
SECTION 14. Section 51-9-157, Mississippi Code of 1972, is brought forward as follows:
51-9-157. The accomplishment of the purposes stated in this article being 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 this article will be performing an essential public function and shall not be required to pay any tax or assessment on the project and related facilities or any part thereof, and the interest on the bonds issued hereunder shall at all times be free from taxation within this state. The state hereby covenants with the holders of any bonds to be issued hereunder that the Pearl River Valley Water Supply 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 15. Section 51-9-195, Mississippi Code of 1972, is brought forward as follows:
51-9-195. Payments by any public agency for water supplies from the waterworks or water supply system owned or operated by the district shall be made from the gross receipts or revenues of the public agency's waterworks, water supply system, or of its combined waterworks, water supply, sewerage and sewage disposal systems, as may be prescribed in the contract between the public agency and the district, its successors or assigns, or as otherwise authorized by law. Such payments shall constitute an operating expense of the system or systems whose revenues are thus to be applied. No provision of this act shall be construed to prohibit any public agency, otherwise permitted by law to issue bonds, from issuing bonds in the manner provided by law for the construction, renovation, repair or development of waterworks or a water supply system or any part thereof owned or operated by such public agency. Payments made or to be made to the district pursuant to any contract authorized by this act shall not be subject to approval or review by the Mississippi Public Service Commission.
SECTION 16. Section 51-9-197, Mississippi Code of 1972, is brought forward as follows:
51-9-197. Whenever a public agency shall have executed a contract pursuant to this act and the payments thereunder are to be made either wholly or partly from the revenues of the public agency's waterworks, water supply system, sewerage system or sewage disposal system or a combination of such systems, the duty is hereby imposed on the public agency to establish and maintain and from time to time to adjust the rates charged by the public agency for the services of such system or systems, such that the revenues therefrom together with any taxes levied in support thereof will be sufficient at all times to pay: (a) the expense of operating and maintaining such system or systems including all of the public agency's obligations to the district, its successors or assigns under such contract; and (b) all of the public agency's obligations under and in connection with revenue bonds theretofore issued, or which may be issued thereafter and secured by the revenues of such system or systems. Any such contract may require the use of consulting engineers and financial experts to advise the public agency whether and when such rates are to be adjusted.
SECTION 17. Section 51-9-201, Mississippi Code of 1972, is brought forward as follows:
51-9-201. (1) Any public agency may, pursuant to a duly adopted resolution of the governing authority of such public agency, enter into contracts with the district for the district to acquire, construct, lease, improve, extend, operate or maintain a waterworks or water supply system or any part thereof or interest therein for the furnishing of water to the public agency; such contracts shall obligate the public agency to make payments to the district or to a trustee in amounts which shall be sufficient to enable the district to defray the expenses of administering, operating and maintaining its waterworks and water supply system, to pay interest and principal (whether at maturity or upon sinking fund redemption) on bonds of the district issued pursuant to this act and to fund reserves for debt service, for operation and maintenance and for renewals and replacements, and to fulfill requirements of any rate covenant with respect to debt service coverage contained in any resolution, trust indenture or other security agreement relating to the bonds of the district issued pursuant to this act. Any public agency shall have the power to enter into such contracts with the district as in the discretion of the governing authorities thereof would be in the best interest of such public agency. Such contracts may include a pledge of the full faith and credit of such public agency for payment of such amounts due under such contracts. Any such contract may provide for the sale or lease to or use of by the district of the waterworks, the water supply system or any part thereof of the public agency; may provide that the district shall operate the waterworks, water supply system or any part thereof of the public agency; may provide that any public agency shall have the right to continued use and/or priority use of the waterworks, water supply system or any part thereof of the district and the water supply made available thereby during the useful life thereof upon payment of reasonable charges therefor; may contain provisions to assure equitable treatment of persons or public agencies who contract with the district pursuant to this act; and may contain such other provisions and requirements as the parties thereto may determine to be appropriate or necessary. Such contracts may extend over any period of time, notwithstanding any provision of law to the contrary, and may extend beyond the life of the waterworks or water supply system or any part thereof or the term of the bonds sold with respect to such facilities or improvements thereto.
(2) The obligations of a public agency arising under the terms of any contract referred to in this act, whether or not payable solely from a pledge of revenues, shall not be included within the indebtedness limitations of the public agency for purposes of any constitutional or statutory limitation or provision. To the extent provided in such contract and to the extent such obligations of the public agency are payable solely from the revenues and other monies derived by the public agency from the operation of its waterworks or water supply system or any part thereof, such obligations shall be treated as expenses of operating such systems.
(3) Contracts referred to in this section may also provide for payments in the form of contributions to defray the cost of any purpose set forth in the contracts and as advances for the waterworks or water supply system or any part thereof subject to repayment by the district. A public agency may make such contributions or advances from its general fund or surplus fund or from any monies legally available therefor.
(4) Payments made or to be made to the district by a public agency or other person pursuant to a contract for the waterworks or water supply system or any part thereof and the use of the water made available thereby shall be determined by the method specified in such contract and shall not be subject to approval or review by the Mississippi Public Service Commission.
(5) Subject to the terms of a contract or contracts referred to in this act, the district is hereby authorized to do and perform any and all acts or things necessary, convenient or desirable to carry out the purposes of such contracts, including the fixing, charging, collecting, maintaining and revising of rates, fees and other charges for the services rendered and water supplied to any user of the waterworks or water supply system operated or maintained by the district, whether or not such systems are owned by the district.
(6) The district shall plan any construction of any such waterworks or water supply system, shall enter into such contracts and shall arrange such financing as to assure that the district shall receive in payment under such contracts revenues sufficient to defray all direct and indirect costs, whether administrative, operational or otherwise, of administering, operating and maintaining such waterworks and water supply system, to pay interest and principal (whether at maturity or upon sinking fund redemption) on bonds of the district issued pursuant to this act and to fund reserves for debt service, for operation and maintenance and for renewals and replacements, and to fulfill requirements of any rate covenant with respect to debt service coverage contained in any resolution, trust indenture or other security agreement relating to the bonds of the district issued pursuant to this act. To that end, the district may not expend money, including taxes levied pursuant to Section 51-9-131, Mississippi Code of 1972, for construction, operation or maintenance of any waterworks or water supply system authorized, acquired, constructed or improved under this act in excess of the revenues received by the district pursuant to contracts authorized by this act or otherwise available from the operation of such waterworks or water supply system.
SECTION 18. Section 51-9-205, Mississippi Code of 1972, is brought forward as follows:
51-9-205. (1) The district shall have the power and is hereby authorized, from time to time, to issue bonds without notice and without an election on the question of the issuance thereof in such principal amounts as the district may determine to be necessary to provide sufficient funds for achieving the purposes of this act, including, without limiting the generality of the foregoing, to defray the cost of the acquisition, construction, improvement or extension of the waterworks or water supply system or any part thereof, whether or not such facilities are owned by the district, the payment of interest on bonds of the district issued pursuant to this act, establishment of reserves to secure such bonds and payment of the interest thereon, expenses incident to the issuance of such bonds and to the implementation of the district's waterworks, water supply system and all other expenditures of the district incident to or necessary or convenient to carry out the purposes of this act. The bonds authorized by this act shall never constitute nor give rise to a pecuniary liability of the district, or a charge against its general credit or taxing powers and shall not constitute general obligations of the state.
(2) Bonds of the district issued pursuant to this act shall be payable from and secured by a pledge of all or any part of the revenues under any contract entered into pursuant to this act and from all or any part of the revenues derived from the operation of the waterworks and water supply system or any part thereof, as may be determined by the district, subject only to any agreement with the registered owners of the bonds. Such bonds may be further secured by a trust indenture between the district and a corporate trustee, which may be any trust company or bank having powers of a trust company within or without the state.
(3) Bonds of the district issued pursuant to this act shall be authorized by a resolution or resolutions of the district. Such bonds shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in such form, carry such conversion privileges, have such rank or priority, be executed in such manner and by such officers, be payable from such sources in such medium of payment at such place or places within or without the state, provided that one (l) such place shall be within the state, be subject to such terms of redemption prior to maturity, all as may be provided by resolution or resolutions of the district; however, such bonds shall not bear a greater overall interest rate to maturity than that allowed in Section 75-17-103, Mississippi Code of 1972.
(4) Bonds of the district issued pursuant to this act may be sold at a price not less than ninety-seven percent (97%) of par value plus accrued interest, at public or private sale, at such times as may be determined by the district to be in the public interest, and the district may pay all expenses, premiums, fees and commissions which it may deem necessary and advantageous in connection with the issuance and sale thereof.
(5) Any pledge of earnings, revenues or other moneys made by the district shall be valid and binding from the time the pledge is made. The earnings, revenues or other moneys so pledged and thereafter received by the district shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the district irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.
(6) Neither the directors of the district nor any person executing the bonds shall be personally liable on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.
(7) Whenever any bonds shall have been signed by the officer(s) designated by the resolution of the district to sign the bonds who were in office at the time of such signing but who may have ceased to be such officer(s) prior to the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the manual or facsimile signatures of such officer(s) upon such bonds shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially executing such bonds had remained in office until the delivery of the same to the purchaser or had been in office on the date such bonds may bear.
SECTION 19. Section 51-9-207, Mississippi Code of 1972, is brought forward as follows:
51-9-207. The district may issue refunding bonds for the purpose of paying any of its bonds at or prior to maturity or upon acceleration or redemption. Refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the district deems to be in the public interest, without notice and without an election on the question of the issuance thereof. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of payment of such bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded and such reserves for debt service or other capital or current expenses from the proceeds of such refunding bonds as may be required by the resolution, trust indenture or other security instruments. The issue of refunding bonds, the maturities and other details thereof, the security therefor, the rights of the holders and the rights, duties and obligations of the district in respect of the same shall be governed by the provisions of this act relating to the issue of bonds other than refunding bonds insofar as the same may be applicable. Any such refunding may be effected, whether the obligations to be refunded shall have then matured or shall thereafter mature, either by the exchange of the refunding bonds for the obligations to be refunded thereby with the consent of the holders of the obligations so to be refunded, or by sale of the refunding bonds and the application of the proceeds thereof to the payment of the obligations proposed to be refunded thereby, and regardless of whether the obligations proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.
SECTION 20. Section 51-9-209, Mississippi Code of 1972, is brought forward as follows:
51-9-209. All bonds (other than refunding bonds, interim notes and certificate of indebtedness) issued pursuant to this act shall be validated as now provided by law in Sections 31-13-1 through 31-13-11, Mississippi Code of 1972; provided, however, that notice of such validation proceedings shall be addressed to the taxpayers of any public agency (i) which has contracted with the district pursuant to this act and whose contracts and the payments to be made by the public agency thereunder constitute security for the bonds of the district proposed to be issued, or (ii) which is a member of the district. Such notice shall be published at least once in a newspaper or newspapers having a general circulation within the geographical boundaries of each of the public agencies to whose taxpayers the notice is addressed. Such validation proceedings shall be instituted in the First Judicial District of the Chancery Court of Hinds County. The validity of the bonds so validated and of the contracts and payments to be made by the public agencies thereunder constituting security for the bonds shall be forever conclusive against the district and the public agencies which are parties to said contracts; and the validity of said bonds and said contracts and the payment to be made thereunder shall never be called in question in any court in this state.
SECTION 21. Section 51-9-211, Mississippi Code of 1972, is brought forward as follows:
51-9-211. Bonds issued under the provisions of this act shall not be deemed to constitute, within the meaning of any constitutional or statutory limitation, a debt, liability or obligation of the state, nor shall such bonds constitute a pledge of the full faith and credit of the state or of the district, but shall be payable solely from the revenues or assets of the district pledged therefor. Each bond issued under this act shall contain on the face thereof a statement to the effect that the district shall not be obligated to pay the same nor the interest thereon except from the revenues or assets pledged therefor and that neither the full faith and credit nor the taxing power of the state or the district is pledged to the payment of the principal of or the interest on such bonds.
SECTION 22. Section 51-9-213, Mississippi Code of 1972, is brought forward as follows:
51-9-213. The district shall have power in connection with the issuance of its bonds to:
(a) Covenant as to the use of any or all of its property, real or personal.
(b) Redeem the bonds, to covenant for their redemption and to provide the terms and conditions thereof.
(c) Covenant to charge rates, fees and charges sufficient to meet operating and maintenance expenses, renewals and replacements, principal and debt service on bonds, creation and maintenance of any reserves required by a bond resolution, trust indenture or other security instrument and to provide for any margins or coverages over and above debt service on the bonds deemed desirable for the marketability of the bonds.
(d) Covenant and prescribe as to events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity, as to the terms and conditions upon which such declaration and its consequences may be waived and as to the consequences of default and the remedies of the registered owners of the bonds.
(e) Covenant as to the mortgage or pledge of or the grant of a security interest in any real or personal property and all or any part of the revenues from any water treatment, waterworks or water supply systems or any part thereof or any revenue-producing contract or contracts made by the district with any person to secure the payment of bonds, subject to such agreements with the registered owners of bonds as may then exist.
(f) Covenant as to the custody, collection, securing, investment and payment of any revenues, assets, moneys, funds or property with respect to which the district may have any rights or interest.
(g) Covenant as to the purposes to which the proceeds from the sale of any bonds then or thereafter to be issued may be applied, and the pledge of such proceeds to secure the payment of the bonds.
(h) Covenant as to the limitations on the issuance of any additional bonds, the terms upon which additional bonds may be issued and secured and the refunding of outstanding bonds.
(i) Covenant as to the rank or priority of any bonds with respect to any lien or security.
(j) Covenant as to the procedure by which the terms of any contract with or for the benefit of the registered owners of bonds may be amended or abrogated, the amount of bonds the registered owners of which must consent thereto and the manner in which such consent may be given.
(k) Covenant as to the custody of any of its properties or investments, the safekeeping thereof, the insurance to be carried thereon and the use and disposition of insurance proceeds.
(l) Covenant as to the vesting in a trustee or trustees, within or outside the state, of such properties, rights, powers and duties in trust as the district may determine.
(m) Covenant as to the appointing and providing for the duties and obligations of a paying agent or paying agents or other fiduciaries within or outside the state.
(n) Make all other covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or in the absolute discretion of the district tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein; it being the intention hereof to give the district power to do all things in the issuance of bonds and in the provisions for security thereof which are not inconsistent with the Constitution of the state.
(o) Execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of covenants or duties, which may contain such covenants and provisions as any purchaser of the bonds of the district may reasonably require.
SECTION 23. Section 51-9-217, Mississippi Code of 1972, is brought forward as follows:
51-9-217. (1) The exercise of the powers granted by this act will be in all respects for the benefit of the people of the state, for their well-being and prosperity and for the improvement of their social and economic conditions, and the district shall not be required to pay any tax or assessment on any property owned by the district under the provisions of this act or upon the income therefrom; nor shall the district be required to pay any recording fee or transfer tax of any kind on account of instruments recorded by it or on its behalf.
(2) Any bonds issued by the district under the provisions of this act, their transfer and the income therefrom shall at all times be free from taxation by the state or any local unit or political subdivision or other instrumentality of the state, excepting inheritance and gift taxes.
SECTION 24. This act shall take effect and be in force from and after July 1, 2010.