House Bill 1741

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF COLUMBUS, MISSISSIPPI, TO ISSUE REVENUE BONDS FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COSTS OF DEVELOPING, CONSTRUCTING, OWNING, IMPROVING, MAINTAINING AND OPERATING BROADBAND INFRASTRUCTURE; AND FOR RELATED PURPOSES.

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

SECTION 1. As used in this act, the following terms shall have the following meanings unless a different meaning is clearly indicated by the context in which they are used:

(a) "Bond" or "bonds" means bonds, notes or other obligations of the city issued, in one or more series, from time to time, pursuant to this act.

(b) "Broadband services" means any service that consists of or includes the provision of or connectivity to a high-speed, high-capacity transmission medium that can carry signals from or to multiple sources and that either: (i) is used to provide access to the Internet, or (ii) provides computer processing, information storage, information content or protocol conversion, including any service applications or information service provided over such high-speed access service. As used herein, "broadband services" also includes video services, voice-over Internet protocol services, any wireless services, and Internet protocol-enabled services.

(c) "Broadband telecommunications infrastructure" means the fiber, cables, materials, information equipment, systems, technology and other facilities that are used or useful for the provision of broadband and telecommunication services.

(d) "City" means the City of Columbus, Mississippi.

(e) "Governing authorities" means the governing authorities of the City of Columbus, Mississippi.

(f) "Telecommunications service" means the offering of broadband services directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used, and regardless of whether a fee is charged for the use of such service.

SECTION 2. (1) The governing authorities are authorized to:

(a) Construct, own and/or operate broadband infrastructure to provide broadband services; or

(b) Provide broadband telecommunications service.

(2) The governing authorities may enter into a contract with a private entity to provide broadband telecommunications service or construct, own, use, acquire, deliver, grant, operate, maintain, sell, purchase, lease, or equip broadband telecommunications infrastructure used for the purpose of providing broadband service. By written contract or lease, the governing authority may sell capacity in, or grant other similar rights for a private entity to use, broadband telecommunications infrastructure owned or operated by the governing authorities that provide broadband service.

(3) The governing authorities, exercising powers under subsection (1)(a) and (b) of this section, may enter into a written agreement with any person owning or having the right to use any poles, street lights, posts, towers or other structures erected along any public right-of-way within the boundaries of the city for the use of those structures by the city, upon such terms and conditions as may be agreed upon by the city and such person.

SECTION 3. (1) For the purposes of providing funds to pay the costs associated with the development, construction, ownership, improvement, maintenance and operation of broadband infrastructure to provide broadband services and other related purposes described in this act, the governing authorities are authorized to incur indebtedness in an aggregate principal amount that is not in excess of an amount for which debt service is capable of being funded by the proceeds of the revenues of the enterprise or under any existing law authorizing the issuance of bonds, notes or other evidences of debt, for the purpose of financing the project.

(2) The bonds issued under this act shall not constitute an indebtedness of the city within the meaning of any state constitutional provision or statutory limitation.

(3) The bonds authorized by this act and the income from those bonds and all security agreements and mortgages executed as security for those bonds made pursuant to the provisions hereof, and the revenues derived from the bonds, shall be exempt from all income taxation in the state.

SECTION 4. (1) Bonds issued pursuant to the provisions of this act shall be dated, shall bear interest at such rate or rates (which rate or rates may be fixed, adjustable or variable), shall mature at such time or times in either serial or term form or both not exceeding thirty (30) years from their date, and may be made redeemable prior to maturity at such price or prices, and upon such terms and conditions as may be determined by the city. The bonds shall be in such form and denomination or denominations and payable at such place or places, either within the state or without the state, and may be authenticated in such manner, as the city may determine by resolution. The bonds shall be executed on behalf of the city by the manual or facsimile signature of the mayor and shall be countersigned by the manual or facsimile signature of the city clerk. In cases where any officer whose signature or a facsimile of whose signature shall appear on any bonds shall cease to be such officer before the delivery of and payment for such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery and payment. The bonds may be issued in book entry or in fully registered form, or any combination, or may be payable to a specific person, as the city may determine, and provision may be made for the conversion from one (1) form to another. The duty of conversion may be imposed upon a trustee in a trust indenture.

(2) The city shall sell the bonds at such price or prices as it shall determine, at public or private sale.

(3) The bonds shall be issued under and subject to such

terms, conditions and covenants providing for the payment of the principal, redemption premium, if any, and interest thereon and such other terms, conditions, covenants and protective provisions safeguarding such payment, not inconsistent with this act, as may be found to be necessary by the city for the most advantageous sale of the bonds.

SECTION 5. (1) Any bonds of the city at any time outstanding under this act may, at any time and from time to time, be refunded by the city by the issuance of its refunding bonds in such amount as the governing authority may deem necessary, but not exceeding:

(a) The principal amount of the bonds being refunded;

(b) Applicable redemption premiums, if any, thereon;

(d) In the event the proceeds from the sale of the refunding bonds are to be deposited in trust as hereafter provided, interest to accrue on the bonds to be refunded from the date of delivery of the refunding bonds to the date of maturity or to a redemption date of the bonds to be refunded; and

(e) Expenses, premiums and commissions deemed by the governing authority to be necessary in connection with the issuance of the refunding bonds.

(2) Any refunding may be effected, whether the bonds to be refunded shall have then matured or shall thereafter mature, either by exchange of the refunding bonds for the bonds to be refunded with the consent of the holders of the bonds to be so refunded, or by sale of the refunding bonds and application of the proceeds to the payment of the bonds to be refunded, and regardless of whether the bonds to be refunded were issued in connection with the same projects or separate projects, and regardless of whether the bonds proposed to be refunded shall be payable on the same date or on different dates or shall be due serially or otherwise.

SECTION 6. The bonds issued under the provisions of this act shall be legal investments for commercial banks, savings and loan associations and insurance companies organized under the laws of the state.

SECTION 7. The bonds issued under the provisions of this act may be validated in the manner provided by law.

SECTION 8. This act shall be deemed to be full and complete authority for the exercise of the powers granted under this act and shall not be in derogation of any existing law of this state, but shall be considered additional, supplemental and alternative to any other authority granted by law.

SECTION 9. This act is to be liberally construed, and the enumeration of any object, power, manner, method or thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods, or things.

SECTION 10. This act shall take effect and be in force from and after its passage.