MISSISSIPPI LEGISLATURE
2017 Regular Session
To: Finance
By: Senator(s) Fillingane
AN ACT TO AMEND SECTION 19-31-7, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE FINANCIAL ASSISTANCE UNDER ANY CONTRIBUTION AGREEMENT ENTERED INTO BY A PUBLIC ENTITY WITH A PUBLIC IMPROVEMENT DISTRICT SHALL NOT EXCEED 10% OF THE COST OF THE ROADS AND WATER AND SEWER SYSTEMS PROPOSED BY THE DISTRICT; TO AMEND SECTION 19-31-9, MISSISSIPPI CODE OF 1972, TO REDUCE THE TERMS OF THE MEMBERS OF THE BOARD OF PUBLIC IMPROVEMENT DISTRICTS FROM SIX YEARS TO FOUR YEARS; TO REQUIRE THAT IF A CONTRIBUTION AGREEMENT EXISTS BETWEEN A PUBLIC ENTITY AND A PUBLIC IMPROVEMENT DISTRICT, THE PUBLIC ENTITY SHALL APPOINT A MEMBER TO THE BOARD OF SUCH PUBLIC IMPROVEMENT DISTRICT; TO REQUIRE THAT THE NOTICE OF AN ELECTION FOR MEMBERS OF THE BOARD OF A PUBLIC IMPROVEMENT DISTRICT SHALL INCLUDE A LIST OF QUALIFIED CANDIDATES; TO REVISE THE NUMBER OF VOTES TO WHICH A QUALIFIED VOTER IS ENTITLED IN ELECTIONS FOR MEMBERS OF THE BOARD OF A PUBLIC IMPROVEMENT DISTRICT; TO REVISE THE MANNER IN WHICH VACANCIES ON THE BOARD OF PUBLIC IMPROVEMENT DISTRICTS ARE FILLED; TO PROVIDE THAT IF A MEMBER FAILS TO ATTEND THREE CONSECUTIVE MEETING OR FAILS TO PAY ANY DISTRICT ASSESSMENT WHEN DUE, HIS POSITION SHALL BE DEEMED TO BE VACANT; TO PROVIDE THE MANNER IN WHICH BOARD MEMBERS SHALL BE INFORMED OF MEETINGS OF THE BOARD OF PUBLIC IMPROVEMENT DISTRICTS; TO AMEND SECTION 19-31-23, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE PROCEDURE TO BE FOLLOWED IN THE EVENT THAT A QUORUM CANNOT BE OBTAINED FOR A BOARD MEETING; TO PROVIDE THAT A PUBLIC ENTITY MUST HAVE A PUBLIC MEETING BEFORE ENTERING INTO A CONTRIBUTION AGREEMENT WITH A PUBLIC IMPROVEMENT DISTRICT REGARDLESS OF THE TYPE OF ASSISTANCE; TO AMEND SECTION 19-31-35, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF A PUBLIC IMPROVEMENT DISTRICT ASSESSMENT IS UNPAID, THE PROPERTY SHALL BE SOLD IN THE SAME MANNER AS PROPERTY SOLD FOR TAXES AND IF THE PROPERTY CANNOT BE SOLD IT SHALL BE STRUCK OFF TO THE DISTRICT; TO AMEND SECTION 19-31-43, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF A DISTRICT HAS FAILED TO HOLD REQUIRED MEETINGS IT MAY BE DISSOLVED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 19-31-7, Mississippi Code of 1972, is amended as follows:
19-31-7. (1) The method for the establishment of a public improvement district shall be pursuant to an ordinance adopted by the governing body of each county in which the land is located granting a petition for the establishment of a public improvement district. The petition for the establishment of a public improvement district shall be filed by the petitioner with the governing body of the county or counties. The petition shall contain:
(a) A description of the boundaries of the district;
(b) The written consent to the establishment of the district by all landowners in the district;
(c) A designation of five (5) persons to be the initial members of the board of directors, who shall serve in that office until replaced by elected members as provided in Section 19-31-9;
(d) The proposed name of the district;
(e) A map of the proposed district showing existing infrastructure, if any; and
(f) Based upon available data, the proposed timetable for construction of the district services and the estimated cost of constructing the proposed services.
(2) A public hearing on the petition shall be conducted by the governing body of each county of the proposed district within sixty (60) days after the petition is filed unless an extension of time is requested by the petitioners and granted by the governing body of each county. The hearing shall be held at an accessible location in each county in which the public improvement district is to be located. The petitioner shall cause a notice of the hearing to be published in a newspaper having general circulation in each county at least once a week for the four (4) successive weeks immediately prior to the hearing. Such notice shall give the time and place for the hearing, a description of the area to be included in the district, and any other relevant information which the establishing governing bodies may require. The advertisement shall be published in the official minutes of the local governing body.
(3) The governing body of each county shall consider the record of the public hearing and any other relevant factors in making its determination to grant or deny a petition for the establishment of a public improvement district.
(4) An ordinance establishing a public improvement district shall include the boundaries of the district, the names of the five (5) persons designated to be the initial members of the board of directors of the district and the name of the district.
(5) If all of the land in the area for the proposed district is within the territorial jurisdiction of a municipality, then the petition requesting establishment of a public improvement district under this chapter shall be filed by the petitioner with that particular municipality. In such event, the duties of the county with regard to the petition shall be the duties of the municipality. If any of the land area of a proposed district is within the land area of a municipality, the governing body of the county may not create the district without the approval of the municipality.
(6) The governing body of any governmental agency, county and/or municipality may enter into contribution agreements with the district; however, the financial assistance under any contribution agreement shall not exceed ten percent (10%) of the cost of the roads and water and sewer systems proposed by the district.
SECTION 2. Section 19-31-9, Mississippi Code of 1972, is amended as follows:
19-31-9. (1) The board of
the district shall exercise the powers granted to the district pursuant to this
chapter. The board shall consist of five (5) members as otherwise provided in
this section. Each member shall hold office for an initial term of * * * four (4) years and until a
successor is chosen and qualifies. The initial members of the board shall be
residents of the state, and at least one (1) of the initial members shall be
either a qualified voter within the district or an individual resident of the
area immediately adjacent to the district. Upon appointment or election, the
board members shall elect a chair who shall conduct board meetings.
(2) (a) Beginning * * * four (4) years after the initial
appointment of members, the position of each member whose term has expired
shall be filled by a qualified voter of the district, elected by the qualified
voters of the district. There shall be an election of members every * * * four (4) years from the date of
the ordinance establishing the district. The district manager shall determine
the date and time of the election, which election must be held at least twenty
(20) days before the anniversary date of the ordinance establishing the
district. If a contribution agreement exists, then the governing body of the
public entity that is a party to the contribution agreement * * * shall appoint one (1) of the five
(5) members to the board of the district at the time of the election in lieu of
electing that member.
(b) Candidates must qualify in writing by submitting a "Statement of Intent," as prescribed in this paragraph, to the district manager thirty (30) days before the election. The district manager shall prepare a ballot of all candidates qualified to run for office twenty-eight (28) days before the election.
Statement of Intent
Candidate for (insert name of district) Public Improvement District
I, (name of candidate as it will appear on the ballot),
(mailing address, street address, city, state, zip code, telephone number of the candidate), certify that I am a qualified voter, as defined in Section 19-31-5, Mississippi Code of 1972, of the (insert name of public improvement district) Public Improvement District in the State of Mississippi; and I do hereby declare my candidacy for Board of the (insert name of public improvement district) Public Improvement District at the election to be held on (insert date of election).
____________________________________
(Signature of candidate) (Date)
Received by _____________________________________________
(Signature) (Title) (Date)
(c) Notice of the election shall be announced at a public meeting of the board at least ninety (90) days before the date of the election and shall be published once a week for two (2) consecutive weeks in a newspaper which is in general circulation in the area of the district, the last day of such publication to be not fewer than fourteen (14) days nor more than twenty-eight (28) days before the election. In addition, notice of the election shall be sent by United States first-class mail, not fewer than fourteen (14) days before the election, to all qualified voters at their last-known address as shown on the tax rolls. Instructions on how all qualified voters may participate in the election, along with a list of qualified candidates and sample proxies, shall be provided as part of the notice required by this paragraph, and the location, date and time of the election shall be included on all instructions and notices.
(d) Each qualified
voter shall be entitled to cast only one (1) ballot per tax parcel, or if
set by the district, per acre of land, owned by him or her and located within
the district to elect each of the board members * * *. A fraction
of an acre shall be treated as one (1) acre entitling the land owner to one (1)
vote with respect to that acre. A list of qualified voters in the form of
a voter roll must be kept current by the district manager and deemed final
thirty (30) days before the election.
(e) A qualified voter may vote in person or by proxy in writing. A vote cast by proxy must be submitted at or within fourteen (14) days before the election and must be submitted in the form prescribed in this section. Each proxy must be signed
by the qualified voter for which the vote is cast and must contain the typed or printed name of the individual who signed the proxy and the street address, legal description of the property or the property's tax parcel identification number. The signature on a proxy need not be notarized. All votes cast by proxy must be reflected in the voter roll.
Proxy for Election
(Insert name of district) Public Improvement District
I,____________________________________, (name of qualified voter); _________________________________________________(street address); _____________________________________________ (legal description); ______________________________ (tax parcel identification number).
[NOTE: To be considered, this proxy must contain at least one (1) of either: the street address; legal description; or tax parcel identification number.]
1. Do constitute and appoint ______________________ _____________________ (name), attorney and agent for me, and in my name, place and stead, to vote as my proxy for the election of members of the Board of Directors of the (name of district) Public Improvement District on (insert date), at the (insert voting location/facility name with street address); OR (only choose one)
2. Do hereby cast my vote for: ______________________________________ [print or type name of person being voted for – PLEASE NOTE THAT YOUR VOTE MUST BE FOR A QUALIFIED VOTER (AS DEFINED IN MISSISSIPPI CODE SECTION 19-31-5) OF THE DISTRICT. A QUALIFIED VOTER MEANS ANY LANDOWNER OF THE DISTRICT WHO IS AT LEAST EIGHTEEN (18) YEARS OF AGE OR AN AUTHORIZED REPRESENTATIVE OF THE LANDOWNER WHO IS ALSO AT LEAST EIGHTEEN (18) YEARS OF AGE.] to be elected as a member of the Board of Directors of the (name of district) Public Improvement District for a term beginning (date of term) and ending six (6) years from that date or until a successor is chosen.
I understand that I have the right to revoke this proxy at any time before the election. I understand that I have the right to be present in person at the election.
I have executed this proxy on (insert date).
__________________________________
(Printed Name of Qualified Voter)
__________________________________
(Signature of Qualified Voter)
(f) A qualified voter may cast only one (1) vote for each of the five (5) board member positions. When a qualified voter casts a vote for the same person more than once, only one (1) of the votes cast for that person will be counted. When a qualified voter casts more votes to elect board members than he or she is entitled to cast, all votes are invalid, and the qualified voter is deemed to have voted for none of them. When a qualified voter casts fewer votes to elect board members than he or she is entitled to cast, all votes cast by the qualified voter must be counted, but no votes shall be counted more than once.
(g) If a board member
dies, resigns or otherwise is prevented from serving as a board member, * * * that board member's position shall be
filled in the following manner within sixty (60) days after the position is
vacated:
(i) If the remaining term is less than two (2) years, the remaining board members shall immediately appoint a replacement for the remainder of the term.
(ii) If the remaining term is two (2) years or more, a special election to fill the position shall be set by the remaining members of the board.
(h) Any board member who fails to attend three (3)_ consecutive properly noticed meetings, or who fails to pay any assessment that is due that he or she owes as a landowner of a parcel or parcels of land within the district, shall be deemed to have vacated his or her position and shall be replaced as provided in paragraph (g) of this subsection.
(3) Members of the board
shall be known as directors and, upon entering into office, shall take and
subscribe to the * * * oath of office prescribed by Section 268, Mississippi
Constitution of 1890. They shall hold office for the terms for which they
were elected or appointed and until their successors are chosen and qualified. * * *
(4) Board members shall be provided notice at least fourteen (14) days in advance of any regularly scheduled or special board meeting via electronic mail, or if no email is provided, by first-class mail sent at least fourteen (14) days before any regularly scheduled or special board meeting. Notices shall meet all posting requirements of the Mississippi Accountability and Transparency Act of 2008 (Sections 27-104-152, et seq.).
(5) The board shall hold not less than one (1) meeting annually.
( * * *6) A majority of the members of the
board constitutes a quorum for the purposes of conducting its business and
exercising its powers and for all other purposes. Action taken by the district
shall be upon a vote of a majority of the members present unless general law or
a rule of the district requires a greater number.
(7) If a quorum
cannot be obtained in a board meeting, the * * * chair, or in his or her absence, any member, shall set a
meeting to be held not less than fourteen (14) days nor more than twenty-one
(21) days from the date of the meeting for which a quorum is not obtained. In
the event that a quorum cannot be obtained at the second meeting called
pursuant to this subsection, the chair, or in his or her absence, any member of
the board, shall immediately notify the county or municipality to take action
pursuant to Section 19-31-41(2)(a)(iii).
( * * *8) As soon as practicable after each
election or appointment, the board shall organize by electing one (1) of its
members as chair and by electing a secretary, who need not be a member of the
board, and such other officers as the board may deem necessary.
( * * *9) The board shall keep a permanent
minute book in which shall be recorded minutes of all meetings, resolutions,
ordinances, proceedings and all corporate acts.
( * * *10) Members of the board may receive
per diem compensation for services in an amount as provided under Section 25-3-69,
and shall be entitled to expenses necessarily incurred in the discharge of
their duties in accordance with Section 25-3-41. In lieu of the per diem,
board members may be paid a fee or honorarium set by the district. Any
payments for compensation and expenses shall be paid from funds of the
district.
SECTION 3. Section 19-31-23, Mississippi Code of 1972, is amended as follows:
19-31-23. (1) The district may issue and sell from time to time bonds, notes, negotiable notes, tax anticipation notes, bond anticipation notes, other fund anticipation notes, renewal notes, refunding bonds, interim certificates, certificates of indebtedness, certificates of participation, debentures, warrants, commercial paper or other obligations or evidences of indebtedness to provide funds for and to fulfill and achieve its public purpose or corporate purposes, as set forth in this chapter, including, but not limited to, the payment of all or a portion of the costs of a project, to provide amounts necessary for any corporate purposes, including incidental expenses in connection with the issuance of the obligations, the payment of principal and interest on the obligations of the district, the establishment of reserves to secure such obligations, and all other purposes and expenditures of the district incident to and necessary or convenient to carry out its public functions or corporate purposes, and any credit enhancement for such obligations.
(2) Before the issuance of any bonds as authorized under this chapter, the district shall hold a public hearing on the advisability of the indebtedness. Notice of the hearing must be published twice in a newspaper having general circulation in each county where the district is located. The final publication of notice must be at least ten (10) days before the public hearing. The district shall give, by United States first-class mail, written notice of the public hearing to all qualified voters in the district. The notice must be addressed to "Property Owner" and mailed by United States first-class mail to the current address of the owner, as reflected on tax rolls of property located in the district.
(3) (a) If a district
proposes to enter into a contribution agreement with a public entity * * *, the public entity shall
hold a public hearing on the advisability of entering into the
contribution agreement * * * with the district * * *.
(b) Notice of the hearing must be published twice in a newspaper having general circulation in each county where the public entity is located. The final publication of notice must be at least ten (10) days before the public hearing.
(c) The notice must state the following:
(i) Time and place of the hearing;
(ii) General nature of the proposed improvement;
(iii) Estimated cost of the improvement;
(iv) Boundaries of the public improvement district;
(v) Proposed method of assessment;
(vi) Proposed amount and term of indebtedness;
(vii) Name of the public entity entering into the contribution agreement; and
(viii) Proposed amount of contribution by the public entity and a statement that the financial assistance under a contribution agreement cannot exceed ten percent (10%) of the cost of the roads and water and sewer systems proposed by the district.
(d) The hearing may be adjourned from time to time until the governing body of the public entity makes findings by resolution as to the following:
(i) Advisability of the improvement;
(ii) Nature of the improvement;
(iii) Estimated cost of the improvement;
(iv) Boundaries of the public improvement district;
(v) Method of assessment;
(vi) Market value
of real property within the district determined in accordance with paragraph ( * * *e) of this subsection; and
(vii) Terms of the contribution agreement.
(e) As provided in
subsection (3)(d)(vi) of this section, the governing body of the public entity
shall obtain an appraisal in accordance with the Uniform Standards of
Professional Appraisal Practice * * *. The appraisal must satisfy
all parties to the contribution agreement that the value of the property in the
district will be sufficient to ensure payment of any obligation to which a * * *
the district is
subject.
(4) Except as may otherwise be provided by the district, all obligations issued by the district shall be negotiable instruments and payable solely from the levy of any special assessment by the district or from any other sources whatsoever that may be available to the district but shall not be secured by the full faith and credit of the state or the county or municipality that created the district.
(5) Obligations shall be authorized, issued and sold by a resolution or resolutions of the district adopted as provided in this chapter. Such bonds or obligations may be of such series, bear such date or dates, mature at such time or times, bear interest at such rate or rates, including variable, adjustable, or zero interest rates, be payable at such time or times, be in such denominations, be sold at such price or prices, at public or private negotiated sale, after advertisement as is provided for in Section 17-21-53(2) for and in connection with any public sale, be in such form, carry such registration and exchangeability privileges, be payable at such place or places, be subject to such terms of redemption and be entitled to such priorities on the income, revenue and receipts of, or available to, the district as may be provided by the district in the resolution or resolutions providing for the issuance and sale of the bonds or obligations of the district.
(6) The obligations of the district shall be signed by such directors or officers of the district by either manual, electronic or facsimile signatures as shall be determined by resolution or resolutions of the district, and shall have impressed or imprinted thereon the seal of the district or a facsimile thereof.
(7) Any obligations of the district may be validly issued, sold and delivered notwithstanding that one or more of the directors or officers of the district signing such obligations or whose facsimile signature or signatures may be on the obligations shall have ceased to be such director or officer of the district at the time such obligations shall actually have been delivered.
(8) Obligations of the district may be sold in such manner and from time to time as may be determined by the district to be most beneficial, and the district may pay all expenses, premiums, fees or commissions that it deems necessary or advantageous in connection with the issuance and sale thereof, subject to the provisions of this chapter.
(9) The district may authorize the establishment of a fund or funds for the creation of a debt service reserve, a renewal and replacement reserve or such other funds or reserves as the district may approve with respect to the financing and operation of any project and as may be authorized by any bond resolution, trust agreement, indenture of trust or similar instrument or agreement pursuant to the provisions of which the issuance of bonds or other obligations of the district may be authorized.
(10) Notwithstanding any other law to the contrary, but subject to any agreement with bondholders or noteholders, monies of the district not required for immediate use, including proceeds from the sale of any bonds, notes or other obligations, may be invested in the following:
(a) Obligations of any municipality, the State of Mississippi or the United States of America;
(b) Obligations of which the principal and interest are guaranteed by the State of Mississippi or the United States of America;
(c) Obligations of any corporation wholly owned by the United States of America;
(d) Obligations of any corporation sponsored by the United States of America which are, or may become, eligible as collateral for advances to member banks as determined by the Board of Governors of the Federal Reserve System;
(e) Obligations of insurance firms or other corporations whose investments are rated "A" or better by recognized rating companies;
(f) Certificates of deposit or time deposits of qualified depositories of the State of Mississippi as approved by the State Depository Commission, secured in such manner, if any, as the commission determines appropriate;
(g) Contracts for the purchase and sale of obligations of the type described in paragraphs (a) through (e) of this subsection;
(h) Repurchase agreements secured by obligations described in paragraphs (a) through (e) of this subsection; and
(i) Money market funds, the assets of which are required to be invested in obligations described in paragraphs (a) through (f) of this subsection.
(11) Any cost, obligation or expense incurred for any of the purposes specified in this chapter shall be a part of the project costs and may be paid or reimbursed as such out of the proceeds of bonds or other obligations issued by the district.
(12) Neither the directors of the board nor any person executing the bonds shall be personally liable for the bonds or be subject to any personal liability by reason of the issuance thereof. No earnings or assets of the district shall accrue to the benefit of any private persons. However, the limitation of liability provided for in this subsection shall not apply to any gross negligence or criminal negligence on the part of any director or person executing the bonds.
(13) The district may avail itself of the provisions of Sections 31-13-1 through 31-13-11.
(14) This chapter constitutes full and complete authority for the issuance of bonds and the exercise of the powers of the district provided herein. No procedures or proceedings, publications, notices, consents, approvals, orders, acts or things by the board or any board, officers, commission, department, agency or instrumentality of the district, other than those required by this chapter, shall be required to perform anything under this chapter, except that the issuance or sale of bonds pursuant to the provisions of this chapter shall comply with the general law requirements applicable to the issuance or sale of bonds by the district. Nothing in this chapter shall be construed to authorize the district to utilize bond proceeds to fund the ongoing operations of the district.
(15) Before incurring any debt as provided in subsection (1) of this section, the district may, but shall not be required to, secure an agreement from one or more developers obligating such developer or developers:
(a) To effect the completion of all or any portion of a project at no cost to the district;
(b) To pay all or any portion of the real property taxes due on the project in a timely manner; and
(c) To maintain and operate all or any portion of the buildings or other facilities or improvements of the project in such a manner as to preserve property values.
No breach of any such agreement shall impose any pecuniary liability upon a district or any charge upon its general credit or against its taxing powers.
Additionally, the district may enter into an agreement with the developer under which the developer may construct all or any part of the project with private funds in advance of issuance of bonds and may be reimbursed by the district for actual costs incurred by the developer upon issuance and delivery of bonds and receipt of the proceeds, conditioned upon dedication of the project by the developer to the district, a governmental agency, a county or a municipality to assure public use and access. This condition shall not apply to the privately owned portion of a project for which the Mississippi Development Authority has issued a certificate of convenience and necessity pursuant to the Regional Economic Development Act.
As used in this section, the term "developer" means any entity or natural person which enters into an agreement with a district whereby the developer agrees to construct, operate and maintain or procure the construction, operation and maintenance of a project or projects, or portions thereof, upon land within the district.
SECTION 4. Section 19-31-35, Mississippi Code of 1972, is amended as follows:
19-31-35. (1) Any lien in favor of the district arising under this chapter may be enforced by the district in a court of competent jurisdiction as provided by law.
(2) Should any assessment under this chapter be unpaid, the property shall be sold in the same manner as property sold for taxes as provided in Sections 27-41-1, et seq.; however, any property failing to be sold shall be struck-off to the Public Improvement District, and shall not be struck-off to the state.
SECTION 5. Section 19-31-43, Mississippi Code of 1972, is amended as follows:
19-31-43. (1) The boundaries of the district may be contracted or expanded in the same manner in which the district was created pursuant to this chapter; however, the petition must be filed by the board and must contain the written consent of all landowners within only the proposed area of expansion or contraction.
(2) (a) Subject to the limitations of paragraph (b) of this subsection, the district may be terminated or dissolved in one (1) of the following ways:
(i) The district may be terminated or dissolved upon the transfer of all the public improvement services of the district to a unit of local government. The district shall be terminated in accordance with a plan of termination which shall be adopted by the board of directors and filed with the clerk of the court.
(ii) If, within five (5) years after the effective date of the ordinance creating the district, a landowner has not received a development permit on some part or all of the area covered by the district, then the district will be automatically dissolved and a court of competent jurisdiction shall cause a statement to that effect to be filed in the public records.
(iii) If the district has become inactive or has failed to hold meeting as required by Section 19-31-9, the county or municipality that created the district shall be informed and shall dissolve the district, appoint a new board or take other appropriate action.
(b) Following the establishment of the district with no timely appeal challenging the district, a district may not be dissolved or terminated if any bonds issued by the district, or bonds for which the district is obligated, are outstanding or are secured by special assessments or other security instruments to which the district is a party in connection with the bonds.
SECTION 6. This act shall take effect and be in force from and after July 1, 2017.