MISSISSIPPI LEGISLATURE
2023 Regular Session
To: Local and Private
By: Senator(s) Hickman
AN ACT TO AMEND CHAPTER 948, LOCAL AND PRIVATE LAWS OF 2014, TO AUTHORIZE THE BOARD OF SUPERVISORS OF KEMPER COUNTY, MISSISSIPPI, TO EXPAND THE SCOPE OF AUTHORITY OF THE KEMPER COUNTY GAS DISTRICT TO BECOME A COUNTY UTILITY DISTRICT WITH THE AUTHORITY TO ADMINISTER ADDITIONAL PUBLIC UTILITY SERVICES, INCLUDING, BUT NOT LIMITED TO, THE PROVISION OF DRINKING WATER; TO REVISE THE NAME OF THE KEMPER COUNTY GAS DISTRICT TO BE THE KEMPER COUNTY UTILITY DISTRICT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The Board of Supervisors of Kemper County is authorized, in their discretion, to expand the scope of authority of the Kemper County Gas District to become the Kemper County Utility District and provide additional public utility services, including, but not limited to, the provision of drinking water, storm water, wastewater, and sewerage.
SECTION 2. Chapter 948, Local and Private Laws of 2014, is amended as follows:
Section 1. The Board
of Supervisors of Kemper County, Mississippi, is authorized to create and
participate in the "Kemper County * * * Utility District."
Section 2. The
Kemper County * * * Utility District shall be activated by resolution duly
adopted and entered on the minutes of the Board of Supervisors of Kemper County,
Mississippi. The district shall be composed of all of Kemper County,
Mississippi, less and except any areas that are certificated prior to the
effective date of this act. The district shall not provide the same utility
service in an area where an entity holding a certificate of public convenience and
necessity issued by the Public Service Commission is already actively providing
this service, nor where an entity obtains a new certificate of public convenience
and necessity from the Public Service Commission after the effective date of this
act. The Kemper County * * * Utility District shall,
upon the request of any natural gas operator, release from the district any
areas for which the natural gas operator has been issued a certificate of
public convenience and necessity by the Mississippi Public Service Commission
after the effective date of this act.
Section 3. The
Kemper County * * * Utility District shall be and is declared to be a valid
political subdivision of the State of Mississippi, with the power to sue and be
sued and to contract and be contracted with.
Section 4. It is
found and declared that the * * * purpose of creating the Kemper County
Utility District is to provide * * * new utility services, including,
but not limited to, natural gas and drinking water, to and within the area
described in Section 2 of this act as economically feasible, to enable existing
utility service providers to improve service within Kemper County by facilitating
cooperation between them and administering projects of mutual benefit, to provide
a path for voluntary consolidation of existing rural utility systems and to
provide ways and means to carry out and accomplish * * * these purposes, thereby benefiting
and making more valuable the lands in the district and preserving and promoting
the health, safety and convenience of the businesses, industrial sites and other
residents of the district. In order to carry out and render effective * * * these purposes
the courts of this state shall construe this act as an exercise by the
Legislature of all the power appertaining to it, necessary for the benefit of
the health, safety and convenience of the businesses, industrial sites and
other residents of the district; and the necessity in the public interest of
the state at large for the provision of this act are declared as a matter of
legislative determination. All the terms and provisions of this act are to be
liberally construed to effectuate the purposes set forth in this act and all
powers required to accomplish the purposes of this act are granted and
conferred, including the power to employ staff and other personnel, including
consultants, engineers and attorneys at such reasonable compensation as the
board of commissioners determines.
Section 5. (1) (a)
From and after the effective date of this act, the powers of the * * * Utility District shall be
vested in and exercised by an interim board of commissioners which shall
consist of six (6) members to be appointed by the Board of Supervisors of
Kemper County. The terms of office of the members appointed by the board of
supervisors shall expire upon completion of the construction of the district's
natural gas transmission and distribution system and the selection of resident
members of the board as provided in subsection (2) of this section.
(b) The resident members of the board to serve after the initial appointees' terms have expired shall be selected in the manner prescribed in subsection (2) of this section.
(2) Promptly upon the commencement of natural gas service by the district to not less than one hundred (100) individually billed users, the commissioners shall give notice to each individually billed user of any of the district's utility services of an initial election to be held at a time not less than thirty (30) days nor more than sixty (60) days from such date. The notice shall state the time, place and manner in which the users may vote upon the selection of subsequent resident members of the board to serve terms of one (1), two (2) and three (3) years, respectively, by ballot of all users of the district. Such election shall be held in a manner and according to procedures to be established by rules and regulations adopted by the board of commissioners before the giving of notice of such election, and a printed copy of such rules and regulations shall accompany the notice to be forwarded by regular mail to the users.
Rules and regulations for the conduct of the election shall provide for a method of nomination of commissioners, notice of such nominations to be provided to users not less than thirty (30) days before the date upon which the election is to be held, along with a method of balloting by mail as well as personal attendance at the time and place of election, a method of balloting by proxy vote, and a method of making additional nominations by users in addition to any nominations proposed by the board of commissioners. The time of the election shall be fixed between the hours of 10:00 a.m. and 7:00 p.m. on a day of the week other than Sunday.
In this and all succeeding elections, each user of the district shall have one (1) vote; provided that when a billing is made to more than one (1) person at a single location, each such person shall be limited to casting a pro rata share of the one (1) vote to which the billing location is entitled.
Subsequent to the initial election, there shall be held an election annually on a date and in a manner substantially conforming to the initial election, except that in each annual election following the initial election, commissioners shall be elected to terms of three (3) years.
(3) Vacancies in the office of commissioner during the interim period shall be filled by the Board of Supervisors of Kemper County and, following the holding of the initial election, shall be filled for the unexpired term by the remaining commissioners.
Section 6. (1) In addition to any other powers granted under any other provision of law, the board of commissioners shall:
(a) Have the power to make such rules and regulations as it deems necessary to the operation of the district and the subsequent election of commissioners;
(b) Possess all necessary power and authority to construct, acquire, improve, enlarge, operate, maintain, dispose of, administer and manage a natural gas transmission and distribution system, drinking water facilities, storm water facilities, and wastewater and sewer facilities, including, but not limited to:
(i) The authority to contract with public or private entities for the operation, management and administration of the system;
(ii) The authority to apply for, contract for, and accept money and property from any source, public or private, including, but not limited to, in lieu payments, grants and loans from federal and state agencies, government appropriations, gifts, trades and donations;
(iii) The authority to enter into franchise agreements;
(iv) The authority to require the necessary relocation or rerouting of water lines, storm drain lines, sewer lines, telecommunications lines, or electric power lines, and to require the anchoring or other protection of any of these lines, provided fair compensation is first paid to the owners or an agreement is made 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;
(v) The authority to acquire, in the district's name, by purchase on any terms and conditions and in any manner as it may deem proper, including by eminent domain through action of the Kemper County Board of Supervisors, property for public use, or by gift, grant, or lease, real property or easements therein, franchises and personal property necessary or convenient for its corporate purposes; provided, however, that eminent domain shall not be used to acquire any system operating under a certificate of public convenience and necessity issued by the Mississippi Public Service Commission or operated by a municipality;
(vi) The authority to establish and maintain rates, fees, assessments and any other charges for services and the use of facilities within the control of the district, and from time to time, to adjust such rates, fees, assessments and other charges to the end that the revenues therefrom will be sufficient at all times to pay the expenses of operating and maintaining the facilities and meeting all obligations under any contract, loan, or bond;
(vii) The authority to acquire insurance for the district's facilities and all property, real or personal; and
(c) Have the authority
to issue revenue bonds to finance the construction of * * *
utility facilities as provided in this act.
(2) The board may enter
into a lease-purchase agreement for the construction and ultimate acquisition
of * * * utility facilities. If
the * * *
facilities are subject to a lease-purchase agreement with the board, * * *
they shall be considered * * *
publicly owned * * *
facilities and exempt from the assessment and levy of ad valorem taxes.
(3) Except as otherwise
provided in this act, all powers with respect to * * *
utility facilities granted to municipalities of this state by Sections
21-27-11 through * * *
21-27-75, Mississippi Code of 1972, including the issuance of revenue
bonds, are conferred upon and may be exercised within the district by the board
as if the system and financing thereof as provided in this act were done
pursuant to such sections.
(4) The district shall have the right to use any streets, alleys, public ways and public places within its boundaries in conjunction with the provision of utility services.
(5) The district shall have the authority to maintain office space at such place or places within Kemper County as it may determine.
(6) The district shall have the authority to make and enforce, and from time to time amend and repeal, any bylaws, ordinances, rules and regulations necessary for the management of its business affairs and for the administration of its facilities.
(7) The district shall have the authority to adopt an official seal and to alter the seal at its will and pleasure.
Section 7. For the
purposes of Section 77-3-1, Mississippi Code of 1972, * * * any
utility facilities of the district shall be deemed to be a municipal * * * utility system not subject to the
jurisdiction of the Mississippi Public Service Commission, except as otherwise
provided by Section 77-3-1, Mississippi Code of 1972, and in this act.
Section 8. (1) Notwithstanding the provisions of Sections 77-3-21 and 77-3-23, Mississippi Code of 1972, the certificate of public convenience and necessity held by any public agency, district, public utility or other person authorized by law to provide utility services may be canceled and its powers, duties and responsibilities transferred to the Kemper County Utility District in the manner provided by this section.
(2) Any entity described in subsection (1) of this section desiring to have its certificate of public convenience and necessity canceled and its powers, duties and responsibilities transferred to the district shall make a determination to that effect on its official minutes and in accordance with its bylaws if a public entity, or by affidavit if not a public entity, and transmit such determination to the district. The entity shall also provide written approval from a lending institution for the transfer of any assets or debts from the entity to the district.
(3) Upon receipt of the document evidencing such determination from an entity to transfer its powers, duties and responsibilities to the district, the district shall by resolution declare whether it is willing and able to accept such transfer from the entity.
(4) Upon completion of the requirements of subsections (2) and (3) of this section and agreement by both parties to the transfer, the holder of the certificate of public convenience and necessity and the district shall jointly petition the Public Service Commission to cancel the certificate of public convenience and necessity. After review of the petition and any other evidence as the Public Service Commission deems necessary, the commission may issue an order canceling the certificate and transferring to the district the powers, duties and responsibilities granted by the certificate, including all assets and debts of the transferor petitioner related to such certificated services, real or personal, or both, if it finds action is in the public interest.
Section 9. (1) If any system of a municipality, public agency or person becomes subject to the jurisdiction of the district, this act shall not impair, invalidate or abrogate any liens, bonds or other certificates of indebtedness related to utility facilities and systems incurred prior to becoming subject to the jurisdiction of the district.
(2) The authority may do and perform any and all acts necessary, convenient or desirable to ensure the payment, redemption or satisfaction of such liens, bonds or other certificates of indebtedness.
Section * * *
10. The amount of revenue bonds authorized to be issued shall not
exceed an aggregate of Ten Million Dollars ($10,000,000.00).
Section * * * 11. The board of commissioners shall
have full power and authority to issue all bonds of the district, but before
issuing any bonds, the commission shall adopt a resolution declaring its
intention so to do, stating the amount of the bonds proposed to be issued and
the date upon which the commission proposes to direct the issuance of such
bonds. Such resolution shall be published once a week for at least three (3)
consecutive weeks in at least one (1) newspaper qualified under the provisions
of Section 13-3-31, Mississippi Code of 1972, in the county or counties in
which the district lies and having a general circulation in the district which
lies in such county or counties. The first publication of such resolution
shall be made not less than twenty-one (21) days before the date fixed in the
resolution for the issuance of the bonds, and the last publication shall be
made not more than seven (7) days before such date. If ten percent (10%) of
the users of the district file a written protest against the issuance of the
bonds on or before the date specified in the resolution, then an election on
the question of the issuance of the bonds shall be called and held in the
manner to be provided by the commission by rules and regulations promulgated
before the adoption of the resolution declaring the commission's intention to
issue the bonds.
Section * * * 12. Any revenue bonds issued under
the provisions of this act may be submitted to validation under the provisions
of Sections 31-13-1 through 31-13-11, Mississippi Code of 1972.
Section 13. Any person aggrieved by any final decision or action of the district may appeal to the Kemper County Board of Supervisors within thirty (30) days of the final decision or action. Any appeal to the Kemper County Board of Supervisors shall be based upon the record before the authority. The Kemper County Board of Supervisors may approve, modify or deny the decision or action of the district and shall issue a written order setting forth its final decision. Any person aggrieved by any final decision or action of the Kemper County Board of Supervisors may appeal in accordance with Section 11-51-75, Mississippi Code of 1972.
Section 14. In its sole discretion, at any time and for any reason, the Kemper County Board of Supervisors may, with thirty (30) days of advance notice and by resolution adopted with supermajority vote, dissolve the Board of Commissioners of the Kemper County Utility District and assume full operational control of the district. For the purposes of this section, "supermajority vote" shall mean four (4) of the (5) county supervisors.
Section * * * 15. If any provision of this act is held
to be invalid by any court of competent jurisdiction, the remainder of this act
shall not be affected thereby.
SECTION 3. This act shall take effect and be in force from and after its passage.