House Bill 663

AN ACT TO AMEND SECTIONS 29-3-151 AND 29-3-155, MISSISSIPPI CODE OF 1972, TO REVISE THE POPULATION REQUIREMENTS FOR ESTABLISHING A SIXTEENTH SECTION DEVELOPMENT AUTHORITY; TO AMEND SECTION 29-3-153, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF "PROJECT"; TO AMEND SECTION 29-3-157, MISSISSIPPI CODE OF 1972, TO REVISE THE MEMBERSHIP OF THE BOARD OF TRUSTEES FOR A SIXTEENTH SECTION DEVELOPMENT AUTHORITY; TO AMEND SECTION 29-3-159, MISSISSIPPI CODE OF 1972, TO EXPAND THE AUTHORITY OF THE SIXTEENTH SECTION DEVELOPMENT AUTHORITY TO DEVELOP BICYCLE TRAILS AND WALKING PATHS; TO AMEND SECTION 29-3-167, MISSISSIPPI CODE OF 1972, TO INCREASE THE AGGREGATE AMOUNT OF BONDS THAT MAY BE OUTSTANDING AT ANY ONE TIME; TO AMEND SECTION 29-3-169, MISSISSIPPI CODE OF 1972, TO LIMIT THE MATURITY AND RATES OF CERTAIN BONDS THAT MAY BE ISSUED; TO BRING FORWARD SECTION 29-3-161, MISSISSIPPI CODE OF 1972, FOR PURPOSES OF AMENDMENT; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 29-3-151, Mississippi Code of 1972, is amended as follows:

29-3-151. The purpose of Sections 29-3-151 through 29-3-183 is to authorize the improvement, development, management and maintenance of sixteenth section lands, or lands granted in lieu thereof, within any county in Mississippi with a population in excess of * * *~~two hundred thousand (200,000)~~ twenty-five thousand (25,000) at the time of the * * *~~1970~~ 2010 census, in order that such lands may be made suitable for leasing for commercial, industrial, and/or recreational use, including the authority necessary to finance the improvement and development thereof and to manage, maintain and lease said lands in order to derive the maximum public benefit and to earn maximum income from the lands for the public schools receiving the income. No lease shall be for a term in excess of twenty-five (25) years.

SECTION 2. Section 29-3-153, Mississippi Code of 1972, is amended as follows:

29-3-153. Whenever used in Sections 29-3-151 through 29-3-183, unless a different meaning clearly appears in the context, the following terms, whether used in the singular or plural, shall be given the following respective definitions:

(a) "Trustees" shall refer to the board of trustees of the Sixteenth Section Development Authority.

(b) "Authority" shall refer to the Sixteenth Section Development Authority.

(c) "Project" shall refer to the area served by and to the facilities for use by commerce and related activity, such as water supply, storage and distribution; sewage and waste collection, transport, treatment and disposal; waste and refuse collection and disposal; gas, fuel, biofuel and power supply and distribution; railroad construction, operation and maintenance; fire prevention, protection and extinguishing; storm drainage, collection and disposal; site preparation and development of commercially oriented sixteenth section lands, or lands granted in lieu thereof, and to the sixteenth section, or lands granted in lieu thereof, authorized to be developed by Sections 29-3-151 through 29-3-183.

(d) "Development" shall mean the planning, surveying, platting, financing, improving and/or otherwise making sixteenth section lands, or lands granted in lieu thereof, suitable for commercial, industrial, and/or recreational use.

(e) "Sealed bid procedure" shall refer to the procedure designated under Section 31-19-25, as supplemented by appropriate sections of Sections 29-3-151 through 29-3-183.

SECTION 3. Section 29-3-155, Mississippi Code of 1972, is amended as follows:

29-3-155. The board of supervisors of any county with a population of * * *~~two hundred thousand (200,000)~~ twenty-five thousand (25,000) or more shall have the authority to create, by appropriate order spread on its minutes and approved by vote of at least three-fifths (3/5) of its members, a Sixteenth Section Development Authority for the purpose of developing all or any part of a sixteenth section, or lands granted in lieu thereof, controlled by the board; provided, however, that said authority shall not be created by said board unless and until the county school board and, in the event the sixteenth section or lands granted in lieu thereof is located within a municipal separate school district, the trustees of the municipal separate school district submit to the board a resolution, properly adopted, requesting the creation of said authority and designating the sixteenth section, or lands granted in lieu thereof, to be developed and leased. Only one (1) Sixteenth Section Development Authority may be authorized by a county. The order shall designate the sixteenth section, or lands granted in lieu thereof, to be developed, in whole or in part, by the authority; provided, however, that the order shall designate only one (1) sixteenth section, or one (1) section of land granted in lieu thereof, to be developed, in whole or in part, by the authority.

The board of supervisors of the county may acquire by condemnation any necessary easements for traffic thoroughfares or utility rights-of-way upon specific recommendation and request by the trustees, but for no other purpose shall the right of condemnation be allowed. Any condemnation award shall be paid from the funds of the authority.

The county school board and, in the event the sixteenth section or lands granted in lieu thereof is located within a municipal separate school district, the trustees of the municipal separate school district are specifically authorized to lend to the authority such funds for interim financing of development as may be available to the said board and trustees and deemed desirable. In the event that any such loan is made by the county school board and the trustees of the municipal separate school district, the participation of each in such loan shall be determined by the percentage of revenue from the sixteenth section, or lands granted in lieu thereof, to be developed by the authority which each received in the most prior year of receipt.

SECTION 4. Section 29-3-157, Mississippi Code of 1972, is amended as follows:

29-3-157. All powers of the authority shall be exercised by a board of trustees to be selected and composed as follows:

(a) There shall be five (5) members of the board of trustees. One (1) member shall be appointed by the board of supervisors to serve one (1) year * * *~~and four (4)~~ ~~members~~, one (1) member shall be appointed by the county board of education, one (1) member shall be appointed by the Mississippi Development Authority, one (1) member shall be appointed by the Regional Development Authority and one (1) member shall be appointed by the municipal school board, one (1) of whom shall serve two (2) years, one (1) of whom shall serve three (3) years, one (1) of whom shall serve four (4) years, and one (1) of whom shall serve five (5) years after June 30, * * *~~1973~~ 2015; provided, however, that in the event any part of the sixteenth section, or lands granted in lieu thereof, to be developed by the authority is located within the corporate limits of any municipal separate school district, then the aforesaid two (2) members of the authority serving an initial term of three (3) and five (5) years shall be appointed by the trustees of the municipal separate school district. The terms of office of the respective members shall expire June 30 of each year, and after their initial term, each member shall be appointed to a term of five (5) years or until his successor has been appointed and has accepted. The Superintendent of the Hinds County School Board shall be an ex officio member of the board and shall act as chairman thereof. The member of the authority serving the initial five-year term shall be the secretary of the board of trustees. In the event a vacancy occurs, the appointment or the unexpired term shall be made in the same manner as provided for the original appointment.

(b) Members of the board of trustees of the authority may succeed themselves upon reappointment by a two-thirds (2/3) vote of the appointing authority.

(d) Each member of the board of trustees shall take and subscribe to the general oath of office required by Section 268 of the Constitution of the State of Mississippi before the chancery clerk of the county in which the authority is created that he will faithfully discharge the duties of the office, which oath shall be filed with the said clerk and by him preserved.

(e) Each trustee not being paid for the day of the meeting by a political subdivision of the state shall receive not more than Twenty-two Dollars and Fifty Cents ($22.50) per diem while actually performing the business of the authority and Ten Cents (10¢) per mile for distance traveled while actually on the business of the authority. Provided, however, that the compensation herein authorized shall apply for not more than fourteen (14) days per member during any calendar year.

SECTION 5. Section 29-3-159, Mississippi Code of 1972, is amended as follows:

29-3-159. The authority, through its trustees, is hereby empowered:

(a) To develop land or any interest in land or property under its jurisdiction.

(b) To acquire, construct, improve, reconstruct, cause to be constructed, extend, expand, maintain, use and operate all facilities of any kind necessary or convenient for the purpose for which the authority was created, including, but not limited to, drainageways, ditches, storm sewers, sanitary sewers, streets, sidewalks, bicycle trails, walking paths, water mains, fire protection systems, gas, power and light systems, trash, waste and garbage disposal facilities, and such other utilities and services as required in the furtherance of the purposes of Sections 29-3-151 through 29-3-183. Provided, however, the right to acquire, construct, improve, reconstruct, cause to be constructed, extend, expand, maintain, use and operate all facilities or utilities of all kinds shall not apply in any case where an existing utility is furnishing a similar service, unless and until the public service commission has determined, after hearing, that the service being furnished by such existing utility is not reasonably adequate.

(c) To lease such property or interest in property and under such terms and conditions at such time as the benefit has been accomplished and/or the improvements completed; provided, however, that no property shall be leased for less than the fair rental value thereof as determined by a real estate board appraiser; provided further, that the authority may lease such property for recreational purposes to any of the governmental entities authorized by Section 29-3-173, under such terms and conditions as may be agreed upon by the trustees.

(d) To sue and be sued in its corporate name.

(e) To adopt, use and alter a corporate seal.

(f) To make bylaws for the management and regulation of its affairs.

(g) To make or cause to be made or to cooperate in making engineering surveys, feasibility studies and cost-benefit estimates relating to the providing of any services within the development.

(h) To apply for, and accept, government grants and loans, whether federal, state or local, when such are available; to borrow from other federal, state and municipal agencies and from private persons or groups, including corporations; and to expend or utilize such funds so obtained in the furtherance of the objectives of Sections 29-3-151 through 29-3-183.

(i) To maintain, use and operate any and all property of any kind, real, personal or mixed, or any interest therein, within the boundaries of the development and necessary for the purposes of Sections 29-3-151 through 29-3-183.

(j) To make contracts and to execute instruments necessary to the exercise of the powers, rights, privileges and functions conferred upon the authority by Sections 29-3-151 through 29-3-183.

(k) To employ planners, engineers, attorneys, fiscal advisors, appraisers and all other agents and employees necessary to the exercising of the powers, rights, privileges or functions conferred upon the authority by Sections 29-3-151 through 29-3-183, and to properly finance, construct, operate and maintain the project and the services it renders and to pay reasonable compensation for such services. The trustees shall have the right to employ a general manager who shall, at the discretion of the trustees, have the power to employ and discharge employees.

(l) To make such contracts in the issuance of bonds as may be necessary to insure the marketability thereof.

(m) To fix and collect charges and rates for any services, facilities or commodities furnished by it in connection with said project and to impose penalties for failure to pay such charges and rates when due.

(n) Subject to the provisions of Sections 29-3-151 through 29-3-183, from time to time, to lease any property of any kind, real, personal or mixed, or any interest therein, within the project area or acquired outside the project area as authorized by said sections for the purpose of furthering the business of the authority.

SECTION 6. Section 29-3-167, Mississippi Code of 1972, is amended as follows:

29-3-167. The board of trustees, subject to the call for an election as outlined in Section 29-3-161, is authorized and empowered, in its discretion, for the purpose of providing funds to assist in defraying expenses of the authority created under Sections 29-3-151 through 29-3-183, to issue from time to time negotiable revenue bonds of the authority in such amount or amounts as its board of trustees shall deem necessary; provided, however, that not more than the aggregate amount of * * * Two Million Dollars ($2,000,000.00) of said bonds shall be outstanding at any one time.

SECTION 7. Section 29-3-169, Mississippi Code of 1972, is amended as follows:

29-3-169. All such bonds provided for by Sections 29-3-151 through 29-3-183 shall be securities within the meaning of Article 8 of the Mississippi Uniform Commercial Code, being Sections 75-8-101 et seq. They shall be lithographed or engraved and printed in two (2) or more colors to prevent counterfeiting. They shall be in denominations of not less than One Thousand Dollars ($1,000.00), and may be registered as issued. Each such bond shall specify on its face the purpose for which it was issued, the total amount authorized to be issued and the interest on the bond. Except as otherwise provided in this section, such bonds shall bear interest at such rate or rates as may be determined by the sale of such bonds, provided that the bonds of any issue shall not bear a greater overall maximum interest rate to maturity than that allowed in Section 75-17-103. They shall mature annually in such amounts and at such times as shall be provided by the resolution of the board of trustees. Provided, however, that no bonds shall have a longer maturity than twenty-five (25) years from date of issuance, and the first maturity date thereof shall be not more than five (5) years from the date of such bonds. Bonds issued for the following purposes shall be subject to the following limitations: (a) the maturity for bonds issued for an agricultural project shall not exceed twenty-five (25) years and the interest rate on such bonds shall not exceed two and eight-tenths percent (2.8%), (b) the maturity for bonds issued for a commercial project shall not exceed twenty (20) years and the interest rate on such bonds shall not exceed two and seven-tenths percent (2.7%), (c) the maturity for bonds issued for a residential project shall not exceed twenty (20) years and the interest rate on such bonds shall not exceed two and six-tenths percent (2.6%), (d) the maturity for bonds issued for a recreational project shall not exceed twenty (20) years and the interest rate on such bonds shall not exceed two and five-tenths percent (2.5%), (e) the maturity for bonds issued for an industrial project shall not exceed twenty (20) years and the interest rate on such bonds shall not exceed two and eight-tenths percent (2.8%). The denomination, form and place or places of payment of such bonds shall be fixed in the resolution of the board of trustees of the authority. Such bonds shall be signed by the chairman and the secretary of the board of trustees, with the corporate seal affixed thereto, but the coupons may bear only the facsimile signatures of such chairman or secretary. No bond shall bear more than one (1) rate of interest; each bond shall bear interest from its date to its stated maturity date at the interest rate specified in the bid (all bonds of the same maturity shall bear the same rate of interest); all interest accruing on such bonds so issued shall be payable semiannually, or annually, except that the first interest coupon attached to any such bond may be for any period not exceeding one (1) year.

No interest payment shall be evidenced by more than one (1) coupon and supplemental coupons will not be permitted; and no interest coupon shall vary more than twenty-five percent (25%) in interest rate from any other interest coupon in the same bond issue.

Each interest rate specified in any bid must be in a multiple of one-eighth of one percent (1/8 of 1%) or one-tenth of one percent (1/10 of 1%) and a zero rate of interest cannot be named.

Notice of the sale of any such bonds shall be published at least two (2) times, with the first publication not less than fourteen (14) days prior to the date of sale, and shall be so published in one or more newspapers having a general circulation in the area in which the development is located and in one or more other newspapers or financial journals with a large circulation. One (1) proof of publication shall be filed in the minutes of the board of trustees.

Such bonds may be called in, paid and redeemed as authorized in the resolution authorizing the issue on any interest date prior to maturity upon not less than thirty (30) days' notice to the paying agent or agents designated in such bonds. Provided, however, that in no case shall any premiums exceed seven percent (7%) of the face value of such bonds.

All bonds issued by the authority shall contain in substance a statement to the effect that they are secured solely by a pledge of the net revenues and by pledge of rental income, and that they do not constitute general obligations of the State of Mississippi or of the county in which the development is located, and are not secured by a pledge of the full faith, credit and resources of said state or of such county.

All such bonds as provided for herein shall be sold under the sealed bid procedure at public sale as now provided in Section 31-19-25, Mississippi Code of 1972. No such sale shall be at a price so low as to require the payment of interest on the money received therefor at more than a greater overall maximum interest rate to maturity than that allowed in Section 75-17-103.

Sections 29-3-151 through 29-3-183 shall be full and complete authority for the issuance of the bonds provided for herein, and no restriction or limitation otherwise prescribed by law shall apply except as included in statutes governing and controlling issuance of all municipal bonds.

Provided, however, the board of trustees shall have the authority to enter into cooperative agreements with the state or federal government, or both, and to execute and deliver at private sale notes or bonds as evidence of such indebtedness in the form and subject to the terms and conditions as may be imposed by the state or federal government, or both, and to pledge the income and revenues of the authority in payment thereof.

Notwithstanding the foregoing provisions of this section, bonds referred to hereinabove may be issued pursuant to the supplemental powers and authorizations conferred by the provisions of the Registered Bond Act, being Sections 31-21-1 through 31-21-7.

SECTION 8. Section 29-3-161, Mississippi Code of 1972, is brought forward as follows:

29-3-161. The board of trustees of the authority is hereby authorized and empowered to issue bonds of the authority for the purpose of paying the costs of acquiring, owning, constructing, operating, repairing and maintaining the projects and works specified herein, including related facilities, and including all financing and financial advisory charges, interest during construction, engineering, legal, and other expenses incidental to and necessary for the foregoing, or for the carrying out of any power conferred by Sections 29-3-151 through 29-3-183. Said board of trustees is authorized and empowered to issue such bonds at such times and in such amounts as shall be provided for by resolution of the said board of trustees.

Provided, however, the bonds herein authorized shall not be issued until the board shall have published notice of its intention to issue same; said notice to be published once each week for three (3) consecutive weeks in some newspaper in the county, but not less than twenty-one (21) days nor more than sixty (60) days intervening between the time of the first notice and the meeting at which said board proposes to issue such bonds. If, within the time of giving notice, not less than fifteen hundred (1500) of the qualified electors of the county shall file a written petition with the board of trustees of the authority protesting the issuance of the bonds, the board of supervisors shall call an election on the question of issuing the bonds. Such election shall be held and conducted by the election commissioners of the county as nearly as may be in conformity with the provisions of Sections 19-9-13 through 19-9-17, Mississippi Code of 1972, governing bond elections, in which election all qualified electors of the county may vote.

All such bonds so issued by said authority shall be secured solely by pledge of the net revenues which may now or hereafter come to the authority and by pledge of the rental income from the sixteenth section, or lands granted in lieu thereof, to be developed by the authority which may now or hereafter come to the county school board and/or the trustees of the municipal separate school district. Such bonds shall not constitute general obligations of the State of Mississippi, or of the county creating the authority, and such bonds shall not be secured by a pledge of the full faith, credit and resources of said state or of said county. "Revenues" as used in Sections 29-3-151 through 29-3-183 shall mean all charges, tolls, rates, gifts, grants, monies, rentals and proceeds from the leasing for commercial and/or industrial use of the lands actually developed by the authority under said sections, and all other funds coming into the possession of the authority by virtue of the provisions of said sections, except the proceeds from the sale of the bonds issued hereunder. "Net revenues" as used in Sections 29-3-151 through 29-3-183 shall mean the revenues after payment of costs and expenses of management and maintenance of the project and related facilities. "Rental income" shall mean all rentals, monies or funds derived pursuant to Sections 29-3-27 et seq., Mississippi Code of 1972, from the sixteenth section, or lands granted in lieu thereof, to be developed by the authority, except such rentals, monies, or funds derived from the leasing for commercial and/or industrial use of the lands actually developed by the authority.

SECTION 9. This act shall take effect and be in force from and after July 1, 2015.