Senate Bill 3268

AN ACT TO AUTHORIZE THE BOARD OF SUPERVISORS OF BOLIVAR COUNTY, MISSISSIPPI, TO ESTABLISH A UTILITY DISTRICT WITHIN THE COMMUNITY OF CHOCTAW FOR THE PURPOSE OF OWNING, CONTROLLING, OPERATING AND MAINTAINING THE CHOCTAW SEWER ASSOCIATION SYSTEM FACILITIES; TO PROVIDE FOR THE POWERS AND DUTIES OF THE UTILITY DISTRICT; TO AUTHORIZE THE BOARD OF SUPERVISORS OF BOLIVAR COUNTY TO TRANSFER ASSETS AND OTHER PROPERTY TO THE DISTRICT, AND TO CONTRIBUTE FUNDS AND SERVICES FOR THE REPAIR AND IMPROVEMENT OF THE SEWER SYSTEM FACILITIES; AND FOR RELATED PURPOSES.

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

SECTION 1. As used in this act:

(a) "Board" means the board of supervisors of the county.

(b) "Community" means the community of Choctaw in the county.

(d) "MDEQ" means the Mississippi Department of Environmental Quality.

(e) "System" means the existing sewer system facilities related to the Choctaw Sewer Association located in the community, including the lift station, treatment lagoon and pipes located in the public rights-of-way and related facilities.

(f) "Utility district" means the utility district created by the board under this act.

SECTION 2. The board is authorized, in its discretion, to pay out of any available general funds of the county for the purpose of repairing and improving the system located in the community. The board may also apply for and use grant funds for the same purposes herein. The board may undertake such repairs and improvements through the use of county employees or by contract with third parties.

SECTION 3. (1) Because of the continual disrepair, neglect and inadequacy of the system, including the lack of a proper legal body owning and operating the system, and for the public benefit and necessity of the system's users, upon the board's determination of the adequate repair and improvement of the system, the board may initiate the incorporation of a utility district under this section. However, Sections 19-5-151 through 19-5-167, Mississippi Code of 1972, shall not apply, as the creation and formation of the utility district by the board shall be exclusively as set forth in this section by adopting a resolution determining the following:

(a) A statement that the public convenience and necessity require the creation of the utility district for the purposes of owning, controlling, operating and maintaining the system;

(b) The proposed boundaries of the district;

(d) A statement of whether or not the board shall exercise its authority to levy the tax as provided in Section 19-5-189, Mississippi Code of 1972, and/or to make assessments as provided in Section 19-5-191, Mississippi Code of 1972;

(e) The appointment by the board of a board of commissioners to govern the utility district consisting of no fewer than three (3) members and no more than five (5) members. Upon their initial appointment, each commissioner shall serve a term of two (2) years; thereafter, each commissioner shall be appointed and shall hold office for a term of five (5) years. Any vacancy occurring on the board of commissioners shall be filled by the board at any regular meeting of the board, and the board shall have the authority to fill the unexpired term of any commissioner. Notwithstanding the appointing authority herein granted to the board and any other authority granted in this act, the board's legal and actual responsibilities, authority and function, subsequent to the creation of the utility district, shall be specifically limited to the appointing function and responsibilities outlined in Sections 19-5-179, 19-5-189 and 19-5-191, Mississippi Code of 1972, except that the board shall have authority to dissolve, redefine and reconfigure such utility district as may be appropriate to ensure the most appropriate and efficient provision of services for the county's citizens. The operation and management of the utility district, and all other matters in connection therewith, shall be vested solely and only in the board of commissioners to the specific exclusion of the board.

(2) Upon the adoption by the board of the resolution as set forth in this section, the utility district shall be created, and it shall have, to the exclusion of any other entity, the sole and exclusive authority, powers and responsibilities set forth in this act and in Sections 19-5-169 through 19-5-207, Mississippi Code of 1972, unless otherwise stated herein, for the operation, maintenance and improvement of the system.

SECTION 4. The utility district, by and through its board of commissioners, shall also have the following additional powers and authority:

(a) To be exempt from obtaining a certificate of convenience and public necessity from the Mississippi Public Service Commission for operation of the system as set forth in Section 19-5-177, Mississippi Code of 1972, because the system has previously been constructed;

(b) To contract for the operation and maintenance of, and administrative services for, the system with any party deemed reasonable, necessary and in the best interest of the customers of the utility district; and

(c) To collect delinquent sewer user fees by entering into an agreement with any water association or other entity supplying water to the premises of the customers of the utility district, authorizing the water association to shut off the water service of any of its customers who are sixty (60) days delinquent in the payment of charges for sewer services provided by the utility district. The utility district may pay reasonable fees to the water association for the provision of such disconnection services and any reasonably anticipated loss revenues to the water association resulting from the disconnection of water services, and may make any fee, rate or expense schedule associated therewith to recoup funds from its customers for the provision of such disconnection services. Any agreement entered into under this paragraph (c) shall at a minimum:

(i) Require the utility district to notify the water association, by a method agreeable to the utility district and the water association, of any customer who also has sewer service provided by the utility district who is delinquent in the payment of sewer charges by sixty (60) days or more;

(ii) Provide that, upon receipt of a notification, the water association shall shut off the water service of the named customer until payment is made for the outstanding sewer services that are due and owing to the utility district;

(iii) Provide that, upon satisfaction of the delinquency and any fees and/or penalties connected with the delinquency and the discontinuation or reconnection of water service, the water association shall restart the water service of the customer; and

(iv) Provide that the utility district shall save and hold harmless the water association against any and all claims based on the disconnection of water service and any other reasonable damages resulting from any action taken by the water association acting under an agreement entered into under this paragraph (c).

SECTION 5. Upon the creation of the utility district under this act, the board is authorized, in its discretion, to transfer, convey or donate any sewer, water and wastewater assets that it may own related to the system, as well as any lands, rights, easements, franchises and other property, real and personal, including funds, necessary for the completion and operation of the system to the utility district.

SECTION 6. Upon the creation of the utility district and transfer of all relevant property and/or services stated in Section 5 of this act, the county and/or the utility district shall submit a Request for Transfer of Permit form to MDEQ to remove the county from any National Pollutant Discharge Elimination System permit and any other permit granted by MDEQ. MDEQ shall accept such submission and grant the removal of the county from any and all permits issued by MDEQ related to the system.

SECTION 7. This act shall be liberally construed for the purposes set forth herein, the powers granted being additional, cumulative and supplemental to any power granted to the county or any municipality or district therein by any general or local and private act of the Legislature.

SECTION 8. This act shall take effect and be in force from and after its passage.