SB 2889 — Mississippi Capitol Region Utility Act; create.

The Lieutenant Governor shall consult with the Mayor of the City of Ridgeland to appoint one (1) of their two (2) appointments, so long as the City of Ridgeland is included within the boundaries of S.

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 8 the systems.

(2) The initial terms of the Boardboard of Directorsdirectors shall be as follows:

One (1) member appointed by the Mayor of the City of Jackson shall serve for an S.initial term of two (2) years.

B.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 8 initial term of two (2) years.

(3) Except as provided in SectionSubsection 5(2)2 of this act,section, appointments shall be for a term of four (4) years.

Each member shall hold office until his successor has been appointed and qualified.S.

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 9 qualified.

Each member of the utility authority shallshall, before entering upon his dutyduty, 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 officeOffice of the Secretary of State.

The utility authority may delegate S.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 utility authority 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 member of the board of directors of the utility authority upon authorization by the board.

Expenses shall be paid from the available funds of the S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 910 toutility oneauthority orafter morethe ofutility itsauthority members,assumes officers,ownership, employeesmanagement orand agentscontrol suchof powersthe andwater, dutieswastewater asand itstorm maysystems deemas proper,provided notin inconsistent with this articleact. or other provisions of law.

(4) The members of the utility authority shall serve without salary, but shall be entitled to receive a 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 member of the board of directors of the utility authority upon authorization by the board.

Expenses shall be paid from the available funds of the utility authority after the utility authority assumes ownership, management and control of the water, wastewater and storm systems as provided in this act.

In the event that any member of the board is S.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 member of the board shall be ineligible for reappointment to the board.

B.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 10 absent for two 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 member of the board shall be ineligible for reappointment to the board.

(9)S. Until such time that the utility district assumes ownership, management, and control of the water, wastewater and storm water systems, the board shall cooperate and coordinate with the receiver in order to provide the best opportunity to for minimal disruption in service and maximum ease of transition after the receiver has concluded his work in overseeing and operating the water system.

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 11 (9) Until such time that the utility district assumes ownership, management, and control of the water, wastewater and storm water 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.

The president shall manage the daily affairs of the utility authority and shall have such powers and duties as S.specified by this act, by the board, and any rules or regulations adopted by the board.

B.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 11 specified by this act, by the board, and any rules or regulations adopted by the board.

(2) Until such time that the utility district assumes ownership, management, and control of the water, wastewater and storm water systems, the president shall cooperate and coordinate with the receiver in order to provide the best opportunity to for minimal disruption in service and maximum ease of transition after theS. receiver has concluded his work in overseeing and operating the water system.

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 12 the receiver has concluded his work in overseeing and operating the water system.

(1) The utility authority shall have the power, duty and responsibility to exercise general supervision over the S.design, construction, operation and maintenance of water, wastewater and storm water systems.

B.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 12 design, construction, operation and maintenance of water, wastewater and storm water systems.

(4)S. The utility authority shall adopt rules establishing performance standards for water, wastewater and storm water systems and the operation and maintenance of the same.

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 13 (4) The utility authority shall adopt rules establishing performance standards for water, wastewater and storm water systems and the operation and maintenance of the same.

(b) Before approving or renewing a water, wastewater or storm water related permit for a system within a utility S.authority, the state agency must require certification that the system complies with the requirements of the utility authority.

B.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 13 authority, the state agency must require certification that the system complies with the requirements of the utility authority.

In addition, the provisions of Section 51-33-1 relating toS. drainage districts and flood control districts do not apply to the utility authority.

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 14 to drainage districts and flood control districts do not apply to the utility authority.

SECTION(9) 8.The utility authority shall enter into contracts for major procurements after bidding.

(1) The utility authority,authority inmay additionadopt toadministrative anyrules otherand powersregulations grantedpursuant underto anythe otherprovisions provision of law,this including,act butproviding notfor limitedspecial toprocedures whereby the following:utility authority may make any class of procurement.

S.(10) In its bidding processes, the utility 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) The utility authority shall only have oversight or control of wastewater service provided to ratepayers in the City of Ridgeland, which is only served by the wastewater system as of the effective date of this act.

To maintain consistency with the S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 1415 (a)agreement Toin acquire,place construct,with improve,the enlarge,City extend,of repair,Jackson operateprior andto maintainthe oneexistence orof morethe utility authority, the City of Ridgeland shall have control over its systemsrate usedstructure, forwith the collection,City transportation,of treatmentRidgeland andcompensating disposalthe ofutility water,authority for its prorated share of wastewater conveyance, treatment, capital improvements and stormdebt water;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, wastewater and storm water;

(d)S. 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, wastewater and storm water systems;

and the utility authority may lease to or from any person, for such term and upon such conditions as may be deemed desirable, any water, wastewater and storm water collection, transportation, treatment or its 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 S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 1516 to(d) beTo handledenter byinto theoperating respectiveagreements systemwith orany systemsperson, andfor alsosuch mayterms provideand thatupon thesuch utilityconditions authorityas shallmay havebe thedeemed rightdesirable, tofor use any streets, alleys and public ways and places within the jurisdictionoperation of aany publicwater, agencywastewater orand otherstorm personwater duringsystems; the term of the contract;

and the utility authority may lease to or from any person, for such term and upon such conditions as may be deemed desirable, any water, wastewater and storm water collection, transportation, treatment or its 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 utility 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;

Any suchS. 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 utility authority's boundaries as it may determine;

S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 1617 (h)such Tocontract investshall moneybe ofbinding theupon utility authority, including proceeds from the saleparties ofthereto anyaccording bonds subject to anyits agreementsterms; with bondholders, on such terms and in such manner as the utility authority deems proper;

(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 utility authority's boundaries as it may determine;

(h) To invest money of the utility authority, including proceeds from the sale of any bonds subject to any agreements with bondholders, on such terms and in such manner as the utility authority deems proper;

This provision shall be in accordance with MississippiS. Constitution Article 17A, Section 11-27-30, and House Bill No.

1769 as passed during the 2022 Legislative Session;

(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, wastewater or storm water system within the utility authority's service area.

The utility authority may pay all or part of the cost of any system from any contribution by persons, firms, public agencies or S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 1718 corporations.Mississippi Constitution Article 17A, Section 11-27-30, and House Bill No.

1769 as passed during the 2022 Legislative Session;

(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, wastewater or storm water system within the utility authority's service area.

The utility authority may pay all or part of the cost of any system from any contribution by persons, firms, public agencies or corporations.

(n)S. 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 utility 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 S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 1819 of(n) theTo utilityuse authorityany shallproperty beand heldrent byor thelease utilityany authorityproperty exclusivelyto or from others, including public agencies, or make contracts for the benefituse of the public;property.

The utility 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 utility authority shall be held by the utility authority exclusively for the benefit of the public;

(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,S. 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 utility 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 utility authority, and from time to time, to adjust such rates, fees and any other charges to the end that the S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 1920 revenuesuse, therefrommaintenance willand beoperation sufficient at all times to pay the expenses of operatingany and maintaining of the facilities and treatment systems and all of the persons' obligations under anyits contractmanagement orand bondscontrol; resolution with respect thereto or any obligation of any person under any agreement, contract, indenture or bonds resolution with respect thereto.

(q) To employ and terminate staff and other personnel, including attorneys, engineers and consultants as may be necessary to the functioning of the utility 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 utility 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 of 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.

For purposes of Section 77-3-33, the rates charged by the utility authority shall be just and reasonable if they are adequate to provide safe and reliable water, wastewater and storm water service to its customers, including providing an adequate amount of capital for the utility authority to perform such repairs, upgrades and improvements as it deems necessary on an ongoing basis.S.

The Mississippi Public Service Commission shall defer to the utility 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 utility 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 utility authority and for the utility authority's proportionate share of the costs of the board;

S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 2021 (t)basis. 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;

The Mississippi Public Service Commission shall defer to the utility 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 utility 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 utility authority and for the utility 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;

however, the utility authority shall not provide the same services in an area provided by a public utility or person holding a certificate of public convenience and necessityS. issued by the Mississippi Public Service Commission for the provision of such services in the certificated area;

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 22 necessity issued by the Mississippi Public Service Commission for the provision of such services in the certificated area;

S.(x) To acquire property designated by plan to sufficiently accommodate the location of water, wastewater or storm water systems and such requirements related directly thereto pursuant to the provisions of Title 11, Chapter 27, Mississippi Code of 1972.

The utility authority may acquire property necessary for any system and the exercise of the powers, rights and duties conferred upon the utility authority by this act.

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 utility authority held or used for the purposes of this act, but any such activities shall be subject to reasonable regulations by the board of directors that will adequately protect the systems or projects of the utility S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 2123 (x)authority. The utility authority shall have the power to acquire property designated by plan to sufficiently accommodate the location of water, wastewater or storm water systems and such requirements related directly thereto pursuant to the provisions of Title 11, Chapter 27, Mississippi Code of 1972.

The utility authority may acquire property necessary for any system and the exercise of the powers, rights and duties conferred upon the utility authority by this act.

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 utility authority held or used for the purposes of this act, but any such activities shall be subject to reasonable regulations by the board of directors that will adequately protect the systems or projects of the utility authority.

(z) To refuse to receive water, wastewater or storm water from any public agency or person;person, except with regard to municipalities or other areas within the service territory of the systems as of the effective date of this act;

(aa) So long as any indebtedness on the systems of the utility authority remains outstanding, to require a member public S.agency, or other person, that all water, wastewater and storm water within the boundaries of the respective utility 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 the date of enactment of this act, is paid in full;

B.and (bb) To adopt a seal and a symbol, and hold patents, copyrights, trademarks, and service marks and enforce its rights with respect thereto.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 22 agency, or other person, that all water, wastewater and storm water within the boundaries of the respective utility 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 the date of enactment of this act, is paid in full;

and (bb) Adopt a seal and a symbol, and hold patents, copyrights, trademarks, and service marks and enforce its rights with respect thereto.

(a) Submit annual reports to the Governor, Lieutenant Governor, Speaker of the House of Representatives, State Auditor, JointS. Legislative Committee on Performance Evaluation and Expenditure Review and the governing authorities of any municipality whose citizens are within the utility 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 utility 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 utility authority's boundaries any information received from the Mississippi State Department of Health or Department of S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 2324 EnvironmentalJoint QualityLegislative orCommittee otheron statePerformance orEvaluation federaland regulatoryExpenditure agenciesReview and the governing authorities of any municipality whose citizens are within the utility authority's boundaries regarding the conditionwater quality and financial conditions of such system or systems, as well as a transferredschedule eligibleof municipalcurrently system.planned repairs, upgrades or improvements planned by the utility 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 utility 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.

Quarterly financial statements shall be made available to the public by posting on the Utilityutility authority's website;

(d)S. Adopt by administrative rules and regulations a system of continuous internal audits;

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 25 (d) Adopt by administrative rules and regulations a system of continuous internal audits;

Such administrative rules and regulations shall include that ownership, management and control of the systems shall revert to the City of Jackson.

(1) The president, as executive director of the utility authority, if so appointed by the utility authority, shall direct and supervise all administrative and technical activities in accordance with the provisions of this act, within the S.administrative rules and regulations adopted by the board, and in accordance with industry practice.

B.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 24 administrative rules and regulations adopted by the board, and in accordance with industry practice.

(c)S. 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 utility 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 utility 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 utility authority's fiscal year, submit the proposed annual budget of the utility authority to the board for review and approval.

This shall include a schedule of planned S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 2526 repairs,(c) upgradesMake available for inspection by the board or improvementsany tomember of the systemsboard or the Governor, Lieutenant Governor, Speaker of the House or the governing authorities of any municipality whose citizens are served by the utility authority, upon request, all books, records, files and other information and documents of his or her office and advise the anticipatedboard capitaland costrecommend such administrative rules and regulations and other matters he or she deems necessary and advisable to improve the operation and administration of each.the utility 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 utility authority's fiscal year, submit the proposed annual budget of the utility 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.

and (ii)S. The position title and the salary recommended for each position for the next fiscal year.

(f)B. The president shall 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.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 27 (ii) The position title and the salary recommended for each position for the next fiscal year.

(f) The president shall 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.

and (b) For good cause, and with approval from the majority of the board, suspend, revoke or refuse to renew any contract entered into in accordance with this act or the administrative rules and regulations of the board.board;

and (c) 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 S.consultants and technical assistants as may be required to carry out the provisions of this act.

(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 utility authority to regulate the utility authority and assure the effective operation of the utility authority's systems, with the understanding that such agencies act as a regulator and not operator of such systems.

All state S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 2628 consultantsofficers andare technicalhereby assistantsempowered asand may be required to carryrender outsuch services to the provisionsutility ofauthority thiswithin act.their respective functions as may be requested by the utility authority.

(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 utility authority to regulate the utility authority and assure the effective operation of the utility 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 utility authority within their respective functions as may be requested by the utility authority.

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 goodgood-faith faith belief that he or she is acting in the best interests of the utility authority.

S.SECTION 12.

B.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 27 SECTION 12.

(2) In its bidding processes, the utility authority may do its own bidding and procurement or may utilize the services of otherS. state agencies as appropriate and necessary.

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 29 other state agencies as appropriate and necessary.

S.SECTION 15.

B.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 28 SECTION 15.

Any public agencyS. may sell, donate, convey, or otherwise dispose of water, wastewater and storm water facilities or systems;

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 30 agency may sell, donate, convey, or otherwise dispose of water, wastewater and storm water facilities or systems;

S.(4) Any public agency may lease to or from the utility authority, for such term and upon such conditions as may be deemed desirable, any of its systems.

B.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 29 (4) Any public agency may lease to or from the utility authority, for such term and upon such conditions as may be deemed desirable, any of its systems.

Such contracts may obligate the public agencyS. to make payments to the utility authority or to a trustee in amounts which shall be sufficient to enable the utility 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 utility authority, issued under this act 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 utility authority issued under this act or to fulfill any other requirement relating to bonds issued pursuant to this act.

S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 3031 (7)agency Anyto publicmake agencypayments shallto have the powerutility authority or to entera intotrustee suchin contractsamounts withwhich shall be sufficient to enable the utility authority asto indefray the discretionexpenses of theadministering, governingoperating bodyand maintaining its respective systems, to pay interest and principal (whether at maturity upon redemption or otherwise) on bonds of the publicutility agencyauthority, wouldissued beunder inthis act and to fund reserves for debt service, for operation and maintenance and for renewals and replacements, to fulfill the bestrequirements interestof 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 publicutility agency.authority issued under this act or to fulfill any other requirement relating to bonds issued pursuant to this act.

(7) Any public agency shall have the power to enter into such contracts with the utility authority as in the discretion of the governing body of the public agency would be in the best interest of the public agency.

and may provide that any public agency shall have the right to continued use and/or priority use of the systems orS. any part thereof during the useful life thereof upon payment of reasonable charges therefor;

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 32 or any part thereof during the useful life thereof upon payment of reasonable charges therefor;

(8) The obligations of a public agency arising under the terms of any contract referred to in this act, whether or not S.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 S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 3133 payableutility solelyauthority. 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 utility authority.

S.(11) No provision of this act 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 of the utility authority's systems, or any part thereof, owned or operated by such public agency.

SECTION 16.

Whenever a public agency shall have executed a contract under this act 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 S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 3234 (11)revenues Notherefrom, provisiontogether ofwith this act shall be construed to prohibit any publictaxes agency,and otherwisespecial permittedassessments bylevied law to issue bonds, from issuing bonds in thesupport manner provided by law for the construction, renovation, repair or development of any of the utility authority's systems, or any part thereof, ownedwill orbe operatedsufficient byat suchall publictimes agency.to pay:

SECTION 16.

Whenever a public agency shall have executed a contract under this act 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:

Any such contract may require the use of consulting engineers and financial S.experts to advise the public agency whether and when such rates and fees are to be adjusted.

B.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 33 experts to advise the public agency whether and when such rates and fees are to be adjusted.

(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 utility authority shall make a determination to thatS. effect on its official minutes if a public entity, or by affidavit if not a public entity, and transmit such determination to the utility authority.

(3) Upon receipt of the document evidencing such determination from an entity to transfer its powers, duties and responsibilities to the utility authority, the utility 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 herein and agreement by both parties to the transfer, the holder of the certificate of public convenience and necessity and the utility authority shall jointly petition the S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 3435 Publicthat Serviceeffect Commissionon toits cancelofficial theminutes certificateif ofa public convenienceentity, or by affidavit if not a public entity, and necessity.transmit such determination to the utility authority.

(3) Upon receipt of the document evidencing such determination from an entity to transfer its powers, duties and responsibilities to the utility authority, the utility 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 herein and agreement by both parties to the transfer, the holder of the certificate of public convenience and necessity and the utility authority shall jointly petition the Public Service Commission to cancel the certificate of public convenience and necessity.

and (b)S. Such action is in the public interest.

(5) The utility authority and providers of water, sewer, wastewater and storm water 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 utility authority of such provider's powers, duties, responsibilities, assets and debts.

(6) Nothing herein shall require a municipality currently served by the utility authority to remain within the boundaries of the utility authority.

S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 3536 SECTION(b) 18.Such action is in the public interest.

(5) The utility authority and providers of water, sewer, wastewater and storm water 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 utility authority of such provider's powers, duties, responsibilities, assets and debts.

(6) Nothing herein shall require a municipality currently served by the utility authority to remain within the boundaries of the utility authority.

SECTION 18.

(1) Sections 18 through 27 of this act apply to all bonds to be issued after the date of enactment of this act, and such provisions shall not affect, limit or alter the rights andS. powers of any utility authority under this act 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, such utility 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.

S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 3637 (2)and Thepowers of any utility authority shallunder havethis theact poweror andany islaw herebyof authorized,Mississippi from time to time,conduct tothe borrowactivities moneyreferred and to issueherein revenue bonds and interim notes in suchany principalway amountspertinent asto the utilityinterests authority may determine to be necessary to provide sufficient funds for achieving one or more of the purposesbondholders, of this act, including, without limitinglimitation, thesuch generalityutility ofauthority's theright foregoing, to defraycharge alland thecollect costsrates, offees theand project,charges theand costto offulfill the acquisition,terms construction,of improvement,any repaircovenants ormade extensionwith ofthe aregistered system,owners orof any partexisting thereof,bonds, whether or notin suchany facilitiesother areway ownedimpair by the utilityrights authority,and theremedies payment of interestthe onregistered bondsowners of theany utilityexisting authoritybonds, issuedunless pursuantprovision tofor thisfull act,payment establishment of reserves to secure such bondsbonds, andby paymentescrow ofor theotherwise, interesthas thereon,been expensesmade incidentpursuant to the issuanceterms of suchthe bonds andor to the implementationresolution, oftrust theindenture utility authority's system, and all other expenditures of the utility authority incident to or necessarysecurity orinterest convenientsecuring to carry out the purposesbonds. of this act.

(3)(2) BeforeThe issuingutility bonds,authority othershall thanhave the power and is hereby authorized, from time to time, to borrow money and to issue revenue bonds and interim notes orin refundingsuch bondsprincipal amounts as providedthe inutility Sectionauthority 20may ofdetermine thisto act,be thenecessary boardto ofprovide directorssufficient funds for achieving one or more of the utilitypurposes authorityof shallthis adoptact, aincluding, resolutionwithout declaringlimiting itsthe intentiongenerality of the foregoing, to issuedefray suchall bondsthe andcosts statingof the maximumproject, principalthe amountcost of bondsthe proposedacquisition, toconstruction, beimprovement, issued,repair or extension of a generalsystem, genericor descriptionany ofpart thethereof, proposedwhether improvementsor andnot thesuch proposedfacilities locationare thereofowned andby the date,utility timeauthority, andthe placepayment atof whichinterest theon boardbonds of directorsthe proposesutility authority issued pursuant to takethis furtheract, actionestablishment withof respectreserves to secure such bonds and payment of the interest thereon, expenses incident to the issuance of such bonds.bonds and to the implementation of the utility authority's system, and S.

The resolution shall be published once a S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 3738 weekall forother atexpenditures leastof three (3) consecutive weeks in at least one (1) newspaper having a general circulation within the geographicalutility limitsauthority ofincident allto ofor thenecessary publicor agenciesconvenient whichto havecarry contractedout with the utilitypurposes authorityof pursuant to this act.

(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 utility 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 all of the public agencies which have contracted with the utility authority pursuant to this act.

Such bonds may be further secured by a trust indenture betweenS. such utility 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 utility authority issued pursuant to this act shall be authorized by a resolution or resolutions adopted by a majority affirmative vote of the total membership of the board of directors of the utility authority.

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 S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 3839 denominations,between be in such form,utility carryauthority suchand conversiona privileges,corporate havetrustee, suchwhich rankmay or priority, be executedany intrust suchcompany manneror andbank byhaving suchpowers officers, be payable from such sources in such medium of paymenta attrust suchcompany placewithout or places within or without the state,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 of directors.

(5) Bonds of the utility authority issued pursuant to this act shall be authorized by a resolution or resolutions adopted by a majority affirmative vote of the total membership of the board of directors of the utility authority.

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 of directors.

(6) Bonds of the utility authority issued pursuant to this act 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 such utility authority to be in the public interest, and such utility authority may pay all expenses, premiums, fees and commissionsS. 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 utility 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 such utility 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 such utility authority irrespective of whether such parties have notice S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 3940 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 utility 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 such utility 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 such utility authority irrespective of whether such parties have notice thereof.

(10) Whenever any bonds shall have been signed by the officer(s) designated by the resolution of the board of directors toS. sign the bonds who were in office at the time of such signing but who may have ceased to be such officer(s) 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(s) 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 utility authority has the discretion to advance or borrow funds needed to satisfy any short-term cash flow demands or S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 4041 deficienciesto orsign tothe coverbonds start-upwho costswere untilin suchoffice at the time asof sufficientsuch bonds,signing assetsbut who may have ceased to be such officer(s) prior to the sale and revenuesdelivery of such bonds, or who may not have been securedin tooffice satisfyon the needsdate such bonds may bear, the manual or facsimile signatures of such officer(s) upon such bonds shall nevertheless be valid and sufficient for all purposes and have the utilitysame authority.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 utility 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 utility authority.

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 refundingS. 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 utility authority in respect of the same shall be governed by the provisions of this act 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 S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 4142 shallrefunding havebonds, then matured or shall thereafter mature, either by the exchangeexpenses of redeeming the refunding bonds forbeing therefunded, obligationsand tosuch bereserves refundedfor therebydebt withservice theor consentother ofcapital the holders of the obligations so to be refunded, or bycurrent saleexpenses offrom the refunding bonds and the application of the proceeds thereof to the payment of thesuch obligationsrefunding proposedbonds toas bemay refunded thereby, and regardless of whether the obligations proposed to be refundedrequired shallby be payable on the sameresolution, datetrust orindenture different dates or shallother besecurity dueinstruments. serially or otherwise.

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 utility authority in respect of the same shall be governed by the provisions of this act 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.

All bondsbonds, (otherother than refunding bonds, interim notes and certificates of indebtedness, which may be validated) issued pursuant to this act shall be validated asS. 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 (a) which have contracted with the utility authority pursuant to this act, and (b) whose contracts and the payments to be made by the public agencies thereunder constitute security for the bonds of such utility authority proposed to be issued, and that 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 S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 4243 noticeissued ispursuant addressed.to this act 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 (a) which have contracted with the utility authority pursuant to this act, and (b) whose contracts and the payments to be made by the public agencies thereunder constitute security for the bonds of such utility authority proposed to be issued, and that 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.

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 utility authority and the public agenciesagencies, which are parties to said contracts;

Such bonds shall be payable solely from the revenues or assets of the utility authority pledgedS. therefor.

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 44 pledged therefor.

S.(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;

B.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 43 (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;

(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 a utility authority with any person 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 a utility authority may have any rights or interest;

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 4445 (g)(e) Covenant as to the purposesmortgage toor whichpledge of or the proceedsgrant fromof thea salesecurity interest in any real or personal property and all or any part of the revenues from any bondsdesignated thensystem or thereafterany topart bethereof issuedor mayany berevenue-producing applied,contract andor thecontracts pledgemade ofby sucha proceedsutility authority with any person to secure the payment of bonds, subject to such agreements with the bonds;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 a utility 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;

(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 such utility 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;

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 4546 (n)(k) MakeCovenant allas otherto covenantsthe andcustody toof do any andof all such acts and things as may be necessary or convenient or desirable in order to secure its bonds,properties or ininvestments, the absolutesafekeeping discretionthereof, of the utilityinsurance authority tend to makebe thecarried bondsthereon, moreand marketable,the notwithstandinguse thatand suchdisposition covenants,of actsinsurance orproceeds; things may not be enumerated herein;

(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 such utility 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 to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or in the absolute discretion of the utility authority tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein;

SECTIONS. 24.

B.

No.

2889 *SS08/R699PS* ~ OFFICIAL ~ 23/SS08/R699PS PAGE 47 SECTION 24.

The utility 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' S.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 utility 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 such utility authority in the same manner as such S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 4648 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 utility authority'sauthority systems,itself themight revenuesdo, ofall whichunder are pledged to the paymentdirection of the principal of and interest on the bonds of such registeredcourt. 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 or 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 such utility authority in the same manner as such utility authority itself might do, all under the direction of such court.

S.(2) Any bonds issued by the utility authority under and pursuant to the provisions of this act, 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.

B.

No.

2889 *SS36/R699CS* ~ OFFICIAL ~ 23/SS36/R699CS PAGE 47 (2) Any bonds issued by the utility authority under and pursuant to the provisions of this act, 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.

SECTIONS. 27.

The state hereby covenants with the registered owners of any bonds of any utility authority that so long as the bonds are outstanding and unpaid the state will not limit or alter the rights and powers of any utility authority under this act to conduct the activities referred to herein in any way pertinent to the interests of the bondholders, including, without limitation, such utility 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 S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 4849 orSECTION otherwise,27. has been made pursuant to the terms of the bonds or the resolution, trust indenture or security interest securing the bonds.

The state hereby covenants with the registered owners of any bonds of any utility authority that so long as the bonds are outstanding and unpaid, the state will not limit or alter the rights and powers of any utility authority under this act to conduct the activities referred to herein in any way pertinent to the interests of the bondholders, including, without limitation, such utility 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.

To this end, the county,S. municipality, public agency or person, subject to their 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 act, 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;

S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 4950 (c)county, Themunicipality, maximumpublic principalagency amountor person, subject to their lawful authority to do so, shall advance such funds, or borrow such funds by issuance of anynotes, noteunder issuedsuch terms and conditions as may be provided by resolution of the interestgoverning ratebody, or maximumother interestpersons rateas defined in this act, subject to betheir incurred,lawful andauthority theto maturitydo dateso, ofexcept saidthat note;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;

(e) The governing body of the county, municipalities or other persons as defined in this act, subject to their lawful authority to do so, may authorize the repayment of such advances, notes,S. 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 utility 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 act, subject to their lawful authority to do so;

S.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS PAGE 5051 (f)notes, Inlines addition,of thecredit governingand bodyother ofdebt incurred under this section, along with all costs associated with the county,same, municipalityincluding, orbut publicnot limited to, rating agency mayfees, leaseprinting costs, legal fees, bank or donatetrust officecompany spacefees, line of credit fees and equipmentother charges to be reimbursed by the utility 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 bywith theother utilitypersons authority.as defined in this act, 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 utility 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 utility authority.

If any section, provision, paragraph, sentence, phrase,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.

This act shall take effect and be in force from and after July 1, 2023, and shall stand repealed on June 30, 2023.

2889 *SS36/R699CS**SS08/R699PS* ~ OFFICIAL ~ 23/SS36/R699CS23/SS08/R699PS ST:

PAGE 5152 create.