MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Accountability, Efficiency, Transparency
By: Senator(s) Parker
AN ACT TO ENACT THE MISSISSIPPI CAPITOL REGION UTILITY ACT; TO ESTABLISH THE MISSISSIPPI CAPITOL REGION UTILITY AUTHORITY; TO PROVIDE FOR THE APPOINTMENT OF A PRESIDENT AND A BOARD OF DIRECTORS FOR SUCH AUTHORITY; TO CLARIFY THE POWERS AND DUTIES OF SUCH BOARD; TO ENSURE ACCESS TO SAFE, CLEAN AND RELIABLE WATER AND WASTEWATER SYSTEMS FOR THE CITIZENS OF CENTRAL MISSISSIPPI; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This chapter shall be known and may be cited as the "Mississippi Capitol Region Utility Act."
SECTION 2. (1) The Mississippi Legislature finds the following:
(a) For the benefit of the citizens centrally located in the State of Mississippi, including citizens residing or working in the capital city of the State of Mississippi, it is essential to have access to safe, clean and reliable water and wastewater systems at affordable, regulated rates which are just, reasonable and provide an adequate amount of capital to keep such systems in good repair;
(b) The availability of safe, clean and reliable water and wastewater systems has vast impacts on health, schools and academic outcomes, crime and safety, state and local government operations, businesses and economic development, the availability of a workforce, tourism and many other critical areas;
(c) The availability of safe, clean and reliable water and wastewater systems requires significant financial resources and human capital to engage in the planning, acquisition, construction, maintenance, coordination and operation required to deliver transparent and efficient services which meet and exceed federal and state regulations and requirements;
(d) On November 29, 2022, the Department of Justice filed a complaint alleging that the City of Jackson has failed to provide drinking water that is reliably compliant with the Safe Drinking Water Act to citizens within the boundaries of the water system. The Department of Justice simultaneously filed a proposal which would appoint a receiver, or an interim third-party manager, to stabilize the City of Jackson's public drinking water system and build confidence in the water system's ability to supply safe, clean and reliable water to citizens within the boundaries of the water system. The U.S. District Court for the Southern District of Mississippi appointed a receiver to oversee and operate the water system on November 29, 2022;
(e) On or about July 31, 2023, the U.S. District Court for the Southern District of Mississippi brought the City of Jackson's sewer and wastewater systems into the receivership;
(f) The order appointing a receiver does not have a termination date and ends only when final judgment is entered by the court. Before the court enters final judgment, the system must be stable, the financial plan sustainable, and the transition plan approved in order to transition the system to post-receivership operations;
(g) The creation and organization of a structure for future governance requires legislation for it to continue in perpetuity beyond the eventual end of the receiver's work and related federal court orders; and
(h) The creation and organization of a structure for future governance prior to the date of the conclusion of the receiver's work will allow for an orderly transition to ensure minimal disruption in water and wastewater service.
(2) Therefore, it is the intent of the Mississippi Legislature to:
(a) Provide the Mississippi Capitol Region Utility Authority the option to purchase the existing water and wastewater assets from the City of Jackson at fair market value as determined by the court, provided all existing system debts have been retired or paid. Upon completion of the purchase of assets, the water and wastewater assets shall be transferred to the utility authority's ownership, management and control to ensure all citizens have access to safe, clean and reliable water and wastewater systems at affordable, just and reasonable regulated rates, and to provide an adequate amount of capital to keep such systems in good repair;
(b) Authorize the Local Governments and Rural Water Systems Improvement Board created in Section 41-3-16 to loan to the authority funds required to purchase water assets as provided in this subsection (2) at an interest rate of zero percent (0%) with a forty-year term applying the maximum principal forgiveness available;
(c) Authorize the Department of Environmental Quality to loan to the authority funds requested to purchase wastewater assets as authorized in this subsection (2) at an interest rate of zero percent (0%) with a forty-year term applying the maximum principal forgiveness available; and
(d) Partner with the Department of Health, the Department of Environmental Quality, the City of Jackson and other municipalities or governmental entities within the boundaries of the authority, and any other federal state or local entity in taking any action necessary under this chapter to ensure all citizens have access to safe, clean and reliable water and wastewater systems, with the understanding that federal and state agencies are solely responsible for regulating, but not operating, the utility authority.
SECTION 3. As used in this chapter, the following words and phrases have the meanings ascribed herein, unless the context clearly indicates otherwise:
(a) "Board" means the Board of Directors of the Mississippi Capitol Region Utility Authority.
(b) "Bonds" means revenue bonds and other certificates of indebtedness of the authority issued under the provisions of this chapter.
(c) "Court" means the U.S. District Court for the Southern District of Mississippi and the receiver, as defined herein.
(d) "Fiscal year" means the period of time beginning on July 1 of each year and ending on June 30 of each year.
(e) "Major procurement" means the procurement of any good or service in excess of One Million Dollars ($1,000,000.00).
(f) "Project" means the construction, development or acquisition by the utility authority of any infrastructure for water and wastewater systems or services and includes the upgrading or repair of existing systems.
(g) "Public agency" means any county, municipality, state board or utility authority owning or operating properties, districts created pursuant to the general laws or local and private laws of the State of Mississippi, or any other political subdivision of the State of Mississippi possessing the power to own and operate waterworks, water supply systems, sewerage systems, sewage treatment systems or other facilities or systems for the collection, transportation and treatment of water and wastewater.
(h) "Receiver" means the interim third-party manager for the water system owned by the City of Jackson who was appointed by the U.S. District Court for the Southern District of Mississippi on November 29, 2022, to oversee and operate the systems until the court issues final judgment.
(i) "System" or "systems" means any plants, structures, facilities or other real or personal property used or useful in the generation, storage, transportation or supply of water, and the collection, transportation, treatment or disposal of wastewater, including tanks, pipes, trunk lines, mains, sewers, conduits, pipelines, pumping and ventilating stations, plants, works, connections and any other real or personal property and rights therein necessary, useful or convenient for the purposes of the utility authority.
(j) "Utility authority" or "authority" means the Mississippi Capitol Region Utility Authority.
(k) "Wastewater" means water being disposed of by any person and which is contaminated with waste or sewage, including industrial, municipal, and any other wastewater that may cause impairment of the quality of waters in the state.
(l) "Water" means potable water from either surface water or groundwater sources.
SECTION 4. (1) There is hereby created and established a corporate nonprofit known as the Mississippi Capitol Region Utility Authority. The authority will be composed of geographic areas receiving water and wastewater services from the City of Jackson as of July 1, 2024, for the planning, acquisition, construction, maintenance, operation and coordination of water and wastewater systems in order to ensure the delivery of water and wastewater services to citizens. Such authority is created solely to accomplish the purposes of the state under this chapter, and the exercise by the authority of the powers conferred by this chapter shall be deemed and held to be the performance of an essential public function promoting the health, welfare and prosperity of the general public. It is the intent of the Legislature that the authority shall be accountable to ratepayers within the systems through the audits, reports and disclosures required by this chapter.
(2) The existence of the corporate nonprofit authority, which shall be domiciled in the State of Mississippi, shall begin upon the appointment of a majority of its board as provided in Section 5 of this act.
(3) The authority shall assume ownership, management and control over the water and wastewater systems on the date of termination of the receiver by the U.S. District Court for the Southern District of Mississippi, or an earlier date as ordered by the court. If the termination date is not the same for all systems, the authority shall assume ownership, management and control over the system for which the receivership is terminated on the termination date for that system.
(4) In the event of any action or matter against the authority, the Chief Justice of the Mississippi Supreme Court shall select an appropriate circuit or chancery court, which shall have exclusive jurisdiction over the matter. For purposes of court costs, the authority shall be a private corporation.
(5) All funds provided by the federal government in H.R. 2617, the Consolidated Appropriations Act of 2023, and any other funds provided by the state or federal government in response to the water crisis detailed by the U.S. District Court for the Southern District of Mississippi in Case No. 3:22-cv-00686, United States v. City of Jackson, shall be spent according to the direction of the receiver and federal court within the service territory impacted by the water crisis and in accordance with federal law.
SECTION 5. (1) The affairs of the utility authority shall be administered by the board. The board shall be composed of nine (9) members to be selected as follows:
(a) The Governor shall appoint five (5) members, including:
(i) Member 1, an employee of a large nonhealthcare business with a minimum of two hundred (200) employees working in facilities within the service area;
(ii) Member 2, an owner of a restaurant located within the service area;
(iii) Member 3, an employee of a local nonprofit organization located within the service area;
(iv) Member 4, a member of the clergy leading a place of worship within the service area; and
(v) Member 5, an at-large appointee who lives or works in the service area.
(b) The Lieutenant Governor shall appoint four (4) members, including:
(i) Member 6, a small business owner whose primary business location is within the service area;
(ii) Member 7, an employee of a large health care facility within the service area;
(iii) Member 8, an employee of a post-secondary institution within the service area; and
(iv) Member 9, an at-large appointee who lives or works in the service area.
All members shall be appointed by September 1, 2024, and shall be subject to the advice and consent of the Senate.
In the appointment process, appointing authorities shall attempt to see that all portions of society and its diversity are represented in members of the authority. All appointed members must be residents of the State of Mississippi, must be ratepayers within the system boundaries, and must have significant, demonstrated experience in business management, fiscal affairs, public health or public utilities. No current or former federal, state or local elected officials may be appointed.
(2) The initial terms of the board shall be as follows: The Governor shall appoint members 1 and 2 for a term of four (4) years, member 3 for a term of three (3) years, member 4 for a term of two (2) years, and member 5 for a term of one (1) year. The Lieutenant Governor shall appoint member 6 for a term of four (4) years, member 7 for a term of three (3) years, member 8 for a term of two (2) years, and member 9 for a term of one (1) year.
(3) Except as provided in subsection (2) of this section, appointments shall be for a term of four (4) years. Each member shall serve at the will and pleasure of his or her appointing authority and hold office until his successor has been appointed and qualified. Any member who changes residency outside of the service area, ends employment in the service area or allows his or her account to go into arrears shall be immediately discharged from the board. Vacancies shall be filled by appointment by the appropriate appointing authority, subject to the advice and consent of the Senate, for the length of the unexpired term only. Any member of the authority shall be eligible for reappointment for a maximum of two (2) full terms. Each member of the authority shall, before entering upon his duty, take an oath of office to administer the duties of his office faithfully and impartially, and a record of such oath shall be filed in the Office of the Secretary of State. The authority shall annually elect from its membership a chairman and vice chairman who shall be eligible for reelection for up to four (4) consecutive terms. The authority shall also elect or appoint, and prescribe the duties of, such other officers, who need not be members, as the authority deems necessary or advisable, and the authority shall fix the compensation of such officers. The authority may delegate to one or more of its members, officers, employees or agents such powers and duties as it may deem proper, not inconsistent with this article or other provisions of law.
(4) The members of the board shall serve without salary but shall be entitled to receive per diem pay as provided in Section 25-3-69, plus travel and necessary expenses, including mileage, as provided in Section 25-3-41, incurred while in the performance of his or her duties as a board member upon authorization by the board. Expenses shall be paid from the available funds of the authority after the authority assumes ownership, management and control of the water, wastewater and storm systems as provided in this chapter. Subject to appropriations, until the date the authority assumes ownership, management and control of the water and wastewater systems as provided in this chapter, expenses shall be paid by the State of Mississippi.
(5) All meetings of the board shall be subject to the Open Meetings Act in Section 25-41-1 et seq. The chairman or a majority of members of the board may convene the board for a meeting.
(6) Except as may be provided by law, all records of the authority shall be deemed public records and subject to public inspection as provided by Section 25-61-1 et seq.
(7) The board may by majority vote excuse the absence of any board member. If any board member is absent for two (2) board meetings in a twelve-month period without such absences being excused by the board, his or her membership on the board shall be terminated as a function of law, without any action by the board, and the removed board member shall be ineligible for reappointment to the board. The original appointing authority shall retain the right to appoint a new board member to replace the removed board member.
(8) No current or former employee of the authority shall be a board member.
(9) Until the utility authority assumes ownership, management and control of the water and wastewater systems, the board shall cooperate and coordinate with the receiver in order to provide the best opportunity for minimal disruption in service and maximum ease of transition after the receiver has concluded his work in overseeing and operating the water system.
SECTION 6. (1) The utility authority shall consult with the court in appointing a president by January 1, 2025, who shall serve at the will and pleasure of the board. If the authority does not have ownership, management and control of the water and wastewater systems by the date of the appointment of a president, the State of Mississippi shall pay the salary of the president on a bimonthly basis, subject to appropriations. The president shall serve as deputy to the receiver until the court enters final judgement, at which time the president shall manage the daily affairs of the authority and shall have such powers and duties as specified by this chapter, by the board, and any rules or regulations adopted by the board. The president shall not be a member of the board and shall serve at the will and pleasure of the board.
(2) Until the authority assumes ownership, management and control of the water and wastewater systems, the president shall cooperate and coordinate with the receiver in order to provide the best opportunity for minimal disruption in service and maximum ease of transition after the receiver has concluded his work in overseeing and operating the water system.
(3) The president shall employ such personnel as he or she deems necessary. All personnel shall serve at the will and pleasure of the president.
(4) The board shall set the salary of the president at such level as necessary to recruit and retain a qualified professional with the expertise necessary in a public utility. The board may authorize whatsoever incentive compensation program for the president and authority staff as it deems necessary and proper. The authority shall be exempt from the provisions of Section 25-3-39.
SECTION 7. (1) The utility authority shall have the power, duty and responsibility to exercise general supervision over the design, construction, operation and maintenance of water and wastewater systems.
(2) The authority shall adopt rules and regulations regarding the design, construction or installation, operation and maintenance of water and wastewater systems.
(3) The authority shall adopt rules and regulations regarding the use of decentralized treatment systems, individual on-site wastewater treatment systems and centralized wastewater treatment systems.
(4) The authority shall adopt rules establishing performance standards for water and wastewater systems and the operation and maintenance of the same. Such rules and regulations shall include: the implementation of a standard application form for the installation, operation and maintenance of such systems; application review; approval or denial procedures for any proposed system; inspection, monitoring and reporting guidelines; and enforcement procedures.
(5) (a) Before a building or development which requires the installation of a water or wastewater system is constructed, the system must be submitted to the authority for certification that the system complies with the authority's requirements.
(b) Before approving or renewing a permit for a water or wastewater system within the authority, the state agency must require certification that the system complies with the authority's requirements.
(6) Any system of any municipality, public agency or other persons which contracts with the authority shall be subject to the terms of that contract and the terms of this chapter.
(7) Notwithstanding the provisions of Section 51-39-1 et seq., the authority shall have the full power to adopt rules and regulations and to construct, maintain, lease and operate facilities for the control of storm water quality and quantity. In addition, the provisions of Section 51-33-1 et seq. relating to drainage districts and flood control districts do not apply to the authority.
(8) The authority may control and operate the local retail water or wastewater services and may provide or be responsible for direct servicing of those services to residences, businesses and individuals; however, the authority shall not provide the same service in an area provided by a public utility or person holding a certificate of public convenience and necessity issued by the Mississippi Public Service Commission for the provision of such services in the certificated area.
(9) The authority shall enter into contracts for major procurements after bidding. The authority may adopt administrative rules and regulations pursuant to the provisions of this chapter providing for special procedures whereby the authority may make any class of procurement.
(10) In its bidding processes, the authority may do its own bidding and procurement or may utilize the services of the Department of Finance and Administration, the Department of Information Technology Services or other state agencies as appropriate and necessary.
(11) In the City of Ridgeland, which is served by only the wastewater system as of July 1, 2024, the authority shall have oversight or control of only wastewater service provided to ratepayers. To maintain consistency with the agreement in place with the City of Jackson prior to the existence of the authority, the City of Ridgeland shall have control over its rate structure, with the City of Ridgeland compensating the authority for its prorated share of wastewater conveyance, treatment, capital improvements and debt service.
SECTION 8. (1) The utility authority, in addition to any other powers granted under any other provision of law, is authorized:
(a) To acquire, construct, improve, enlarge, extend, repair, operate and maintain one or more of its systems used for the collection, transportation, treatment and disposal of water and wastewater;
(b) To make contracts with any person in furtherance thereof, and to make contracts with any person, under the terms of which the authority will collect, transport, treat or dispose of water and wastewater for such person;
(c) To make contracts with any person to design and construct any water and wastewater systems or facilities, and thereafter to purchase, lease or sell, by installments over such terms as may be deemed desirable, reasonable and necessary, or otherwise, any such system or systems;
(d) To enter into operating agreements with any person, for such terms and upon such conditions as may be deemed desirable, for the operation of any water and wastewater systems, and to lease to or from any person, for such term and upon such conditions as may be deemed desirable, any water and wastewater collection, transportation, treatment or other facilities or systems. Any such contract may contain provisions requiring any public agency or other person to regulate the quality and strength of materials to be handled by the respective system or systems and also may provide that the authority shall have the right to use any streets, alleys and public ways and places within the jurisdiction of a public agency or other person during the term of the contract;
(e) To enter into contracts with any person or public agency, including, but not limited to, contracts authorized by this chapter, in furtherance of any of the purposes authorized under this chapter upon such consideration as the board 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 and for such consideration, nominal or otherwise, 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;
(f) To sue and be sued, in its own name, and to enjoy all of the protections, immunities and benefits provided by the Mississippi Tort Claims Act, Section 11-46-1 et seq., as it may be amended or supplemented from time to time;
(g) To maintain office space at such place or places within the authority's boundaries as it may determine;
(h) To invest money of the authority, including proceeds from the sale of any bonds subject to any agreements with bondholders, on such terms and in such manner as the authority deems proper;
(i) To pay any outstanding City of Jackson bonds relating to the water and sewer systems under their existing terms;
(j) 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 fair compensation is first paid to the owners or an agreement 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 chapter. This provision shall be in accordance with Mississippi Constitution Article 17A and Section 11-27-30;
(k) To acquire, construct, improve or modify, to operate or cause to be operated and maintained, either as owner of all or of any part in common with others, any water or wastewater system within the authority's service area. The authority may pay all or part of the cost of any system from any contribution by persons, firms, public agencies or corporations. The authority may receive, accept and use all funds, public or private, and pay all costs of the development, implementation and maintenance as may be determined as necessary for any project;
(l) To acquire, in its own name, by purchase on any terms and conditions and in any manner as it may deem proper, property for public use, or by gift, grant, lease, or otherwise, real property or easements therein, franchises and personal property necessary or convenient for its corporate purposes. This provision shall be in accordance with Mississippi Constitution Article 17A and Section 11-27-30;
(m) To acquire insurance for the authority's systems, facilities, buildings, treatment plants and all property, real or personal, to insure against all risks as any insurance may, from time to time, be available;
(n) To use any property and rent or lease any property to or from others, including public agencies, or make contracts for the use of the property. The authority may sell, lease, exchange, transfer, assign, pledge, mortgage or grant a security interest for any property. The powers to acquire, use and dispose of property as set forth in this paragraph shall include the power to acquire, use and dispose of any interest in that property, whether divided or undivided. Title to any property of the authority shall be held by the authority exclusively for the benefit of the public;
(o) To apply, contract for, accept, receive and administer gifts, grants, appropriations and donations of money, materials and property of any kind, including loans and grants from the United States, the state, a unit of local government, or any agency, department, district or instrumentality of any of the foregoing, upon any terms and conditions as the United States, the state, a unit of local government, or any agency, department, district or instrumentality shall impose. The authority may administer trusts. The authority may sell, lease, transfer, convey, appropriate and pledge any and all of its property and assets;
(p) To make and enforce, and from time to time amend and repeal, bylaws, rules, ordinances and regulations for the management of its business and affairs and for the construction, use, maintenance and operation of any of the systems under its management and control;
(q) To employ and terminate staff and other personnel, including attorneys, engineers and consultants, as may be necessary to the functioning of the authority;
(r) To establish and maintain rates, fees and any other charges for services and the use of systems and facilities within the control of the authority, and from time to time, to adjust such rates, fees and any 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 treatment systems and all of the persons' obligations under any contract or bonds resolution with respect thereto or any obligation of any person under any agreement, contract, indenture or bonds resolution with respect thereto. Such rates, fees, assessments and other charges shall be subject to the jurisdiction of the Mississippi Public Service Commission. Such rates, fees, assessments and other charges shall be equal as levied on citizens throughout the authority's boundaries. For purposes of Section 77-3-33, the rates charged by the authority shall be just and reasonable if they are adequate to provide safe and reliable water and wastewater service to its customers, including providing an adequate amount of capital for the authority to perform such repairs, upgrades and improvements as it deems necessary on an ongoing basis. The Mississippi Public Service Commission shall defer to the authority's determination of what rates are just and reasonable absent a showing of manifest error;
(s) To adopt rules and regulations necessary to accomplish the purposes of the authority and to assure the payment of each participating person or public agency of its proportionate share of the costs for use of any of the systems and facilities of the authority and for the authority's proportionate share of the costs of the board;
(t) To enter on public or private lands, waters or premises for the purpose of making surveys, borings or soundings, or conducting tests, examinations or inspections for the purposes of the authority, subject to responsibility for any damage done to property entered;
(u) To accept industrial wastewater from within the boundaries of the authority for treatment and to require the pretreatment of same when, in the opinion of the authority, such pretreatment is necessary;
(v) To control and operate local retail water and wastewater services, and to provide or be responsible for direct servicing of those services to residences, businesses and individuals; however, the authority shall not provide the same services in an area provided by a public utility or person holding a certificate of public convenience and necessity issued by the Mississippi Public Service Commission for the provision of such services in the certificated area;
(w) To assume control and administer, within the authority's jurisdiction, any water or wastewater system or systems by agreement or contract with any person if the person providing such services requests to be relieved of that responsibility.;
(x) To acquire property designated by plan to sufficiently accommodate the location of water or wastewater systems and such requirements related directly thereto pursuant to the provisions of Title 11, Chapter 27, Mississippi Code of 1972. The authority may acquire property necessary for any system and the exercise of the powers, rights and duties conferred upon the authority by this chapter. No person 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 such interests on any lands or interest of the authority held or used for the purposes of this chapter, but any such activities shall be subject to reasonable regulations by the board that will adequately protect the systems or projects of the authority. This provision shall be in accordance with Mississippi Constitution Article 17A and Section 11-27-30;
(y) To use any legally available funds to acquire, rebuild, operate and maintain any existing water or wastewater systems owned or operated by any person;
(z) To refuse to receive water or wastewater from any public agency or person, except with regard to municipalities or other areas within the service territory of the systems as of July 1, 2024;
(aa) So long as any indebtedness on the systems of the authority remains outstanding, to require of a member public agency, or other person, that all water and wastewater within the boundaries of the authority be disposed of through the appropriate treatment system to the extent that the same may be available, but no public agency shall be precluded from constructing, operating and maintaining its own such system after the current indebtedness owing on the system as of July 1, 2024, is paid in full; and
(bb) To adopt a seal and a symbol, and hold patents, copyrights, trademarks and service marks, and to enforce its rights with respect thereto.
(3) The authority shall:
(a) Submit annual reports to the Governor, Lieutenant Governor, Speaker of the House of Representatives, State Auditor, Joint Legislative Committee on Performance Evaluation and Expenditure Review and the governing authorities of any municipality whose citizens are within the authority's boundaries regarding the water quality and financial conditions of such system or systems, as well as a schedule of currently planned repairs, upgrades or improvements planned by the authority;
(b) Immediately submit to the Governor, Lieutenant Governor, Speaker of the House of Representatives and the governing authorities of any municipality whose citizens are within the authority's boundaries any information received from the Mississippi State Department of Health or Department of Environmental Quality or other state or federal regulatory agencies regarding the condition of a transferred eligible municipal system. The authority, in addition to abiding by any other federal or state reporting requirements, must also report such information to the public on its website and to individuals residing within the service area as required by federal or state law;
(c) Publish audited annual financial statements, which shall be made available to the public. The annual financial statements shall include disposition of all funds expended by the authority for any purpose. Quarterly financial statements shall be made available to the public by posting on the authority's website;
(d) Adopt by administrative rules and regulations a system of continuous internal audits;
(e) Adopt by administrative rules and regulations a code of ethics for officers and employees of the authority to carry out the standards of conduct established by this chapter; and
(f) Adopt by administrative rules and regulations guidelines for the disposal of property if the authority is dissolved.
SECTION 9. (1) The president, as chief executive officer of the utility authority, if so appointed by the board, shall direct and supervise all administrative and technical activities in accordance with the provisions of this chapter, within the administrative rules and regulations adopted by the board, and in accordance with industry practice. The president shall:
(a) Supervise and administer or contract for the supervision and administration of the water and wastewater systems owned, managed or controlled by the authority;
(b) Employ and direct such personnel as may be necessary to carry out the purposes of this chapter and utilize such services, personnel or facilities of the authority as he or she may deem necessary;
(c) Make available for inspection by the board or any member of the board or the Governor, Lieutenant Governor, Speaker of the House or the governing authorities of any municipality whose citizens are served by the authority, upon request, all books, records, files and other information and documents of his or her office and advise the board and recommend such administrative rules and regulations and other matters he or she deems necessary and advisable to improve the operation and administration of the authority;
(d) Attend meetings of the board or appoint a designee to attend on his or her behalf;
(e) Not later than thirty (30) days before the beginning of the authority's fiscal year, submit the proposed annual budget of the authority to the board for review and approval. This shall include a schedule of planned repairs, upgrades or improvements to the systems and the anticipated capital cost of each. In addition, the proposed annual budget of the authority shall include a personnel table reporting information for each full-time and part-time permanent position, as follows:
(i) The position title and the salary for each position in the existing operating budget for the current fiscal year, indicating whether each position is filled or vacant as of the reporting date; and
(ii) The position title and the salary recommended for each position for the next fiscal year; and
(f) Require bond of Fifty Thousand Dollars ($50,000.00) from employees with access to funds or in such an amount as provided in the administrative rules and regulations of the board.
(2) The president may:
(a) Require bond from other employees as he or she deems necessary; and (b) Upon specific or general approval of the board, enter into personal service contracts pursuant to administrative rules and regulations adopted by the board and compensate such consultants and technical assistants as may be required to carry out the provisions of this chapter.
(3) Agencies, departments or units of state government, including, but not limited to, the Mississippi Department of Health and the Mississippi Department of Environmental Quality, shall cooperate with the authority to regulate the authority and assure the effective operation of the authority's systems, with the understanding that such agencies act as a regulator and not operator of such systems. All state officers are hereby empowered and required to render such services to the authority within their respective functions as may be requested by the authority.
SECTION 10. Employees of the utility authority shall serve at the will and pleasure of the president, who shall determine their compensation and benefits in consultation with the board.
SECTION 11. Neither the directors of the utility authority, the board, its employees, nor any person or persons acting on their behalf, while acting within the scope of their authority, shall be subject to personal liability resulting from carrying out any of the powers granted herein in accordance with his or her good-faith belief that he or she is acting in the best interests of the authority.
SECTION 12. (1) The utility authority shall enter into its contracts for major procurements after a competitive and open procurement process. The authority may adopt administrative rules and regulations pursuant to the provisions of this chapter providing for special procedures whereby the authority may make any class of procurement. The authority shall endeavor to ensure the transparency and competitiveness of procurements of all sizes.
(2) In its bidding processes, the authority may do its own bidding and procurement or may utilize the services of other state agencies as appropriate and necessary. The president may declare an emergency for purchasing purposes which shall be governed by the administrative rules and regulations adopted by the board.
SECTION 13. All monies received by the utility authority shall be deposited into an operating account. Such account shall be established in a custodian financial institution domiciled in the State of Mississippi, insured by the Federal Deposit Insurance Corporation and collateralized as prescribed by Section 27-105-5.
SECTION 14. All division heads, officers and employees of the utility authority shall be considered public servants as defined in Section 25-4-103. All division heads and officers of the authority are subject to Section 25-4-25 and shall be required to file a Statement of Economic Interest with the Mississippi Ethics Commission.
SECTION 15. (1) Any public agency, pursuant to a duly adopted resolution of the governing body of such public agency, may enter into contracts with the utility authority under the terms of which the authority will manage, operate and contract for usage of its systems and facilities, or other services, for such public agency.
(2) Any public agency may enter into contracts with the authority for the authority to purchase or sell, by installments over such terms as may be deemed desirable, or otherwise, to any person or any systems. Any public agency may sell, donate, convey or otherwise dispose of water and wastewater facilities or systems, or any equipment, personal property or other things deemed necessary for the construction, operation and maintenance thereof to the authority without the necessity of appraisal, advertising or bidding. This section creates an alternative method of disposal of public property.
(3) Any public agency is authorized to enter into operating agreements with the authority, for such terms and upon such conditions as may be deemed desirable, for the operation of any of its systems by the authority or by any person contracting with the authority to operate such systems.
(4) Any public agency may lease to or from the authority, for such term and upon such conditions as may be deemed desirable, any of its systems.
(5) Any municipality or county may donate office space, equipment, supplies and materials to the authority.
(6) Any such contract may contain provisions requiring any public agency to regulate the quality and strength of the material to be handled by the wastewater systems and may also provide that the authority shall have the right to use any streets, alleys and public ways and places within the jurisdiction of a public agency during the term of the contract. Such contracts may obligate the public agency to make payments to the authority or to a trustee in amounts which shall be sufficient to enable the authority to defray the expenses of administering, operating and maintaining its respective systems, to pay interest and principal (whether at maturity upon redemption or otherwise) on bonds of the authority issued under this chapter, and to fund reserves for debt service, for operation and maintenance and for renewals and replacements, to fulfill the 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 authority issued under this chapter or to fulfill any other requirement relating to bonds issued pursuant to this chapter.
(7) Any public agency shall have the power to enter into contracts with the authority as deemed, in the discretion of the governing body of the public agency, would be in the best interest of the public agency. Such contracts may include a pledge of the full faith and credit of the public agency and/or the avails of any special assessments made by the public agency against property receiving benefits, as now or hereafter provided by law. Any such contract may:
(a) Provide for the sale or lease to, or use by, the authority, of the systems or any part thereof, of the public agency;
(b) Provide that the authority shall operate its systems or any part thereof of the public agency;
(c) Provide that the public agency shall have the right to continued use and/or priority use of the systems or any part thereof during the useful life thereof upon payment of reasonable charges therefor;
(d) Contain provisions to assure equitable treatment of public agencies contracting with the authority under this chapter; and
(e) 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 provisions of law to the contrary, and may extend beyond the life of the respective systems or any part thereof or the term of the bonds sold with respect to such facilities or improvements thereto.
(8) The obligations of a public agency arising under the terms of any contract referred to in this chapter, 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 wholly or in part from the revenues and other monies derived by the public agency from the operation of its systems or of its combined systems, or any part thereof, such obligations shall be treated as expenses of operating such systems.
(9) 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 respective systems or any part thereof subject to repayment by the authority. A public agency may make such contributions or advances from its general fund or surplus fund or from special assessments or from any monies legally available therefor.
(10) Subject to the terms of a contract or contracts referred to in this chapter, the authority 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 to any user of any of the systems operated or maintained by the authority, whether or not such systems are owned by the authority.
(11) No provision of this chapter 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 any systems or any part thereof.
SECTION 16. Whenever a public agency shall have executed a contract under this chapter and the payments thereunder are to be made either wholly or partly from the revenues of the public agency's systems, or any part thereof, 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 rate or fees charged by the public agency for the services of such systems, so that the revenues therefrom, together with any taxes and special assessments levied in support thereof, will be sufficient at all times to pay:
(a) The expense of operating and maintaining such systems, including, but not limited to, all of the public agency's obligations to the utility authority and the cost required to staff such systems, its successors or assigns under such contract; and
(b) All of the public agency's obligations under and in connection with bonds theretofore issued, or which may be issued thereafter and secured by the revenues of such systems. Any such contract may require the use of consulting engineers and financial experts to advise the public agency whether and when such rates and fees are to be adjusted.
SECTION 17. (1) Notwithstanding the provisions of Sections 77-3-21 and 77-3-23, the certificate of public convenience and necessity held by any municipality, public agency, district, public utility or other entity authorized by law to provide water and wastewater services may be cancelled and its powers, duties and responsibilities transferred to the utility authority 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 cancelled and its powers, duties and responsibilities transferred to the authority shall make a determination to that effect on its official minutes if a public entity, or by affidavit if not a public entity, and transmit such determination to the authority.
(3) Upon receipt of the document evidencing such determination from an entity to transfer its powers, duties and responsibilities to the authority, the authority 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 authority shall jointly petition the Public Service Commission to cancel the certificate of public convenience and necessity. The petition must be accompanied by copies of the official minutes, affidavit or resolution, as the case may be, reflecting the actions of the petitioners. 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 authority 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 that:
(a) Subsections (2) and (3) of this section have been complied with; and
(b) Such action is in the public interest.
(5) The authority and providers of water and wastewater services that are not holders of a certificate of a public convenience and necessity from the Public Service Commission may enter into agreements for the provision of such services, including, but not limited to, the transfer to the authority of such provider's powers, duties, responsibilities, assets and debts.
(6) Nothing herein shall require an entity whose powers and duties were transferred to the authority to remain under the authority.
SECTION 18. (1) Any system of a municipality, public agency or other entity that becomes subject to the jurisdiction of the utility authority and this chapter shall not impair, invalidate or abrogate any liens, bonds or other certificates of indebtedness related to water or wastewater facilities and systems incurred prior to becoming subject to the jurisdiction of the authority.
(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 19. (1) Sections 18 through 27 of this act apply to all bonds to be issued on or after July 1, 2024, and such provisions shall not affect, limit or alter the rights and powers of the utility authority under this chapter or any law of Mississippi to conduct the activities referred to herein in any way pertinent to the interests of the bondholders, including, without limitation, the authority's right to charge and collect rates, fees and charges and to fulfill the terms of any covenants made with the registered owners of any existing bonds, or in any other way impair the rights and remedies of the registered owners of any existing bonds, unless provision for full payment of such bonds, by escrow or otherwise, has been made pursuant to the terms of the bonds or the resolution, trust indenture or security interest securing the bonds.
(2) The authority shall have the power and is hereby authorized, from time to time, to borrow money and to issue revenue bonds and interim notes in such principal amounts as the authority may determine to be necessary to provide sufficient funds for achieving one or more of the purposes of this chapter, including, without limiting the generality of the foregoing, to defray all the costs of the project, the cost of the acquisition, construction, improvement, repair or extension of a system, or any part thereof, whether or not such facilities are owned by the authority, the payment of interest on bonds of the authority issued pursuant to this chapter, 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 authority's system, and all other expenditures of the authority incident to or necessary or convenient to carry out the purposes of this chapter.
(3) Before issuing bonds, other than interim notes or refunding bonds as provided in Section 20 of this act, the board of directors of the authority shall adopt a resolution declaring its intention to issue such bonds and stating the maximum principal amount of bonds proposed to be issued, a general generic description of the proposed improvements and the proposed location thereof and the date, time and place at which the board of directors proposes to take further action with respect to the issuance of such bonds. The resolution shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper having a general circulation within the geographical limits of the service area under this chapter.
(4) Bonds of the authority issued pursuant to this chapter shall be payable from and secured by a pledge of all or any part of the revenues derived from the operation of the systems or any part or parts thereof and any other monies legally available and designated therefor, as may be determined by the authority, subject only to any agreement with the purchasers of the bonds. Such bonds may be further secured by a trust indenture between the authority and a corporate trustee, which may be any trust company or bank having powers of a trust company without or within the state.
(5) Bonds of the authority issued pursuant to this chapter shall be authorized by a resolution or resolutions adopted by a majority affirmative vote of the total membership of the board. Such bonds may be issued in series, and each series of such bonds shall bear such date or dates, mature at such time or times, bear interest at such rate or rates (not exceeding the maximum rate set out in Section 75-17-103, Mississippi Code of 1972), 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 such place shall be within the state, and be subject to such terms of redemption prior to maturity, all as may be provided by resolution or resolutions of the board. The term of such bonds issued pursuant to this chapter shall not exceed forty (40) years.
(6) Bonds of the authority issued pursuant to this chapter may be sold at such price or prices, at public or private sale, in such manner and at such times as may be determined by the authority to be in the public interest, and the authority may pay all expenses, premiums, fees and commissions which it may deem necessary and advantageous in connection with the issuance and sale thereof.
(7) Any pledge of earnings, revenues or other monies made by the authority shall be valid and binding from the time the pledge is made. The earnings, revenues or other monies so pledged and thereafter received by the authority 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 authority irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.
(8) Neither the members of the board 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.
(9) Proceeds from the sale of bonds of the authority may be invested, pending their use, in such securities as may be specified in the resolution authorizing the issuance of the bonds or the trust indenture securing them, and the earnings on such investments applied as provided in such resolution or trust indenture.
(10) Whenever any bonds shall have been signed by the officer designated by the resolution of the board to sign the bonds who was in office at the time of such signing but who may have ceased to be such officer 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 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.
(11) The authority has the discretion to advance or borrow funds needed to satisfy any short-term cash flow demands or deficiencies or to cover start-up costs until such time as sufficient bonds, assets and revenues have been secured to satisfy the needs of the authority. The State of Mississippi shall provide surety for any advance or borrowing of funds required under this chapter through June 30, 2029.
SECTION 20. (1) The utility authority may, by resolution adopted by its board, 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 board deems to be in the public interest, 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 authority in respect of the same shall be governed by the provisions of this chapter 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.
(2) Borrowing by the authority may be made by the delivery of interim notes to any person or public agency or financial institution by a majority vote of the board of directors.
SECTION 21. All bonds, other than refunding bonds, interim notes and certificates of indebtedness, which may be issued pursuant to this chapter shall be validated as now provided by law in Sections 31-13-1 through 31-13-11, Mississippi Code of 1972; however, notice of such validation proceedings shall be addressed to the citizens of the respective public agencies which have contracted with the authority pursuant to this chapter, and whose contracts and the payments to be made by the public agencies thereunder constitute security for the bonds of the authority proposed to be issued, and 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 contracting public agencies to whose citizens the notice is addressed. Such validation proceedings shall be instituted in any chancery courts within the boundaries of the authority. 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 authority and the public agencies, which are parties to said contracts, and the validity of said bonds and said contracts and the payments to be made thereunder shall never be called in question in any court in this state.
SECTION 22. Bonds issued under the provisions of this chapter shall not be deemed to constitute, within the meaning of any constitutional or statutory limitation, an indebtedness of the utility authority or the state. Such bonds shall be payable solely from the revenues or assets of the authority pledged therefor. Each bond issued under this chapter shall contain on the face thereof a statement to the effect that neither the authority nor the state shall be obligated to pay the same or the interest thereon except from the revenues or assets pledged therefor.
SECTION 23. The utility authority shall have power in connection with the issuance of its bonds pursuant to this chapter 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 bonds 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 designated system or any part thereof or any revenue-producing contract or contracts made by the authority with any person or entity 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, monies, funds or property with respect to which the authority 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 authority 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 do any and all such acts and things as may be necessary, convenient or desirable in order to secure its bonds, or in the absolute discretion of the authority 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 authority 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; and
(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 authority may reasonably require.
SECTION 24. The utility authority may, in any authorizing resolution of the board, trust indenture or other security instrument relating to its bonds issued pursuant to this chapter, provide for the appointment of a trustee who shall have such powers as are provided therein to represent the registered owners of any issue of bonds in the enforcement or protection of their rights under any such resolution, trust indenture or security instrument. The authority may also provide in such resolution, trust indenture or other security instrument that the trustee, or in the event that the trustee so appointed shall fail or decline to so protect and enforce such registered owners' rights then such percentage of registered owners as shall be set forth in, and subject to the provisions of, such resolution, trust indenture or other security interest, may petition the court of proper jurisdiction for the appointment of a receiver of the authority's systems, the revenues of which are pledged to the payment of the principal of and interest on the bonds of such registered owners. Such receiver may exercise any power as may be granted in any such resolution, trust indenture or security instrument to enter upon and take possession of, acquire, construct, reconstruct or operate and maintain such system, fix charges for services of the system and enforce collection thereof, and receive all revenues derived from such system or facilities and perform the public duties and carry out the contracts and obligations of the authority in the same manner as the authority itself might do, all under the direction of such court.
SECTION 25. (1) The exercise of the powers granted by this chapter 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 utility authority shall not be required to pay any tax or assessment on any property owned by the authority under the provisions of this chapter or upon the income therefrom, nor shall the authority 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 authority under this chapter, 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 26. All bonds issued under the provisions of this chapter shall be legal investments for trustees, other fiduciaries, savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi, and such bonds shall be legal securities which may be deposited with and shall be received by all public officers and bodies of the state and all municipalities and other political subdivisions thereof for the purpose of securing the deposit of public funds.
SECTION 27. The state hereby covenants with the registered owners of any bonds of the utility authority that so long as the bonds are outstanding and unpaid, the state will not limit or alter the rights and powers of the authority under this chapter to conduct the activities referred to herein in any way pertinent to the interests of the bondholders, including, without limitation, the authority's right to charge and collect rates, fees, assessments and charges and to fulfill the terms of any covenants made with the registered owners of the bonds, or in any other way impair the rights and remedies of the registered owners of the bonds, unless provision for full payment of such bonds, by escrow or otherwise, has been made pursuant to the terms of the bonds or the resolution, trust indenture or security interest securing the bonds.
SECTION 28. For the purposes of satisfying any temporary cash flow demands and deficiencies, and to maintain a working balance for the utility authority, the state, county, municipalities or public agencies within the geographic boundaries of the authority, or other persons, subject to their lawful authority to do so, are authorized to advance, at any time, such funds which in their discretion are necessary, or borrow such funds by issuance of notes, for initial capital contribution, and to cover start-up costs until such times as sufficient bonds, assets and revenues have been secured to satisfy the needs of the authority for its management, operation and formation. To this end, the state, county, municipality, public agency or person, subject to its lawful authority to do so, shall advance such funds, or borrow such funds by issuance of notes, under such terms and conditions as may be provided by resolution of the governing body, or other persons as defined in this chapter, subject to their lawful authority to do so, except that each such resolution shall state:
(a) The need for the proceeds advanced or borrowed;
(b) The amount to be advanced or the amount to be borrowed;
(c) The maximum principal amount of any note issued the interest rate or maximum interest rate to be incurred, and the maturity date of said note;
(d) In addition, the governing body, or other persons as defined in this chapter, subject to their lawful authority to do so, may arrange for lines of credit with any bank, firm or person for the purpose of providing an additional source of repayment for notes issued pursuant to this section. Amounts drawn on a line of credit may be evidenced by negotiable or nonnegotiable notes or other evidences of indebtedness and contain such terms and conditions as the governing body, or other persons as defined in this chapter, subject to their lawful authority to do so, may authorize in the resolution approving the same;
(e) The governing body of the county, municipalities or other persons as defined in this chapter, subject to their lawful authority to do so, may authorize the repayment of such advances, notes, lines of credit and other debt incurred under this section, along with all costs associated with the same, including, but not limited to, rating agency fees, printing costs, legal fees, bank or trust company fees, line of credit fees and other charges to be reimbursed by the authority under such terms and conditions as are reasonable and are to be provided for by resolution of the governing body, or terms agreed upon with other persons as defined in this chapter, subject to their lawful authority to do so; and
(f) In addition, the governing body of the county, municipality or public agency may lease or donate office space and equipment to the authority under such terms and conditions as are reasonable and are to be provided for by resolution of the governing body, or terms agreed upon by the authority.
SECTION 29. This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes thereof. If any section, provision, paragraph, sentence, phrase or word of this act shall be held invalid by any court of competent jurisdiction, the remainder of this act shall not be affected thereby.
SECTION 30. Sections 1 and 3 through 28 of this act shall be codified as a separate chapter in Title 51, Mississippi Code of 1972.
SECTION 31. This act shall take effect and be in force from and after July 1, 2024.