Bill Text: MS SB2969 | 2011 | Regular Session | Engrossed
Bill Title: Public improvement districts; revise certain provisions regarding.
Spectrum: Bipartisan Bill
Status: (Failed) 2011-03-09 - Died On Calendar [SB2969 Detail]
Download: Mississippi-2011-SB2969-Engrossed.html
MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Finance
By: Senator(s) Davis, Dearing
Senate Bill 2969
(As Passed the Senate)
AN ACT TO AMEND SECTIONS 19-31-7 AND 19-31-9, MISSISSIPPI CODE OF 1972, TO REVISE CERTAIN PROVISIONS RELATING TO THE CREATION OF PUBLIC IMPROVEMENT DISTRICTS AND THE COMPOSITION AND SELECTION OF MEMBERS OF BOARDS OF DIRECTORS FOR SUCH DISTRICTS; TO AMEND SECTION 19-31-17, MISSISSIPPI CODE OF 1972, TO REVISE CERTAIN PROVISIONS RELATING TO USER CHARGES AND FEES IMPOSED BY PUBLIC IMPROVEMENT DISTRICTS; TO AMEND SECTION 19-31-19, MISSISSIPPI CODE OF 1972, TO REVISE THE PROJECTS THAT PUBLIC IMPROVEMENT DISTRICTS MAY ESTABLISH, FUND, MAINTAIN AND OPERATE; TO AMEND SECTION 19-31-23, MISSISSIPPI CODE OF 1972, TO PROVIDE THE TYPES OF INVESTMENTS THAT MAY BE MADE WITH FUNDS OF PUBLIC IMPROVEMENT DISTRICTS NOT REQUIRED FOR IMMEDIATE USE; TO AMEND SECTION 19-31-33, MISSISSIPPI CODE OF 1972, TO REVISE CERTAIN PROVISIONS REGARDING THE COLLECTION AND ENFORCEMENT OF BENEFIT SPECIAL ASSESSMENTS AND MAINTENANCE SPECIAL ASSESSMENTS LEVIED BY PUBLIC IMPROVEMENT DISTRICTS; TO AMEND SECTION 19-31-39, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT NOTICE OF A PUBLIC HEARING RELATING TO RATES, FEES, RENTALS AND OTHER CHARGES FOR FACILITIES OR SERVICES OF A PUBLIC IMPROVEMENT DISTRICT SHALL BE PUBLISHED IN A NEWSPAPER HAVING A GENERAL CIRCULATION IN THE COUNTY; TO AMEND SECTION 19-31-43, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A PETITION FOR THE CONTRACTION OR EXPANSION OF THE BOUNDARIES OF A PUBLIC IMPROVEMENT DISTRICT WILL BE FILED BY THE DISTRICT BOARD OF DIRECTORS AND MUST CONTAIN THE WRITTEN CONSENT OF ALL LANDOWNERS WITHIN ONLY THE AREA OF EXPANSION OR CONTRACTION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 19-31-7, Mississippi Code of 1972, is amended as follows:
19-31-7. (1) The method for the establishment of a public improvement district shall be pursuant to an ordinance adopted by the governing body of each county in which the land is located granting a petition for the establishment of a public improvement district. The petition for the establishment of a public improvement district shall be filed by the petitioner with the governing body of the county or counties. The petition shall contain:
(a) A description of the boundaries of the district;
(b) The written consent to the establishment of the district by all landowners in the district;
(c) A designation of five (5) * * * initial members of the board of directors, who shall serve in that office until replaced by elected members as provided in Section 19-31-9;
(d) The proposed name of the district;
(e) A map of the proposed district showing existing infrastructure, if any; and
(f) Based upon available data, the proposed timetable for construction of the district services and the estimated cost of constructing the proposed services.
(2) A public hearing on the petition shall be conducted by the governing body of each county of the proposed district within sixty (60) days after the petition is filed unless an extension of time is requested by the petitioners and granted by the governing body of each county. The hearing shall be held at an accessible location in each county in which the public improvement district is to be located. The petitioner shall cause a notice of the hearing to be published in a newspaper having general circulation in each county at least once a week for the four (4) successive weeks immediately prior to the hearing. Such notice shall give the time and place for the hearing, a description of the area to be included in the district, and any other relevant information which the establishing governing bodies may require. The advertisement shall be published in the official minutes of the local governing body.
(3) The governing body of each county shall consider the record of the public hearing and any other relevant factors in making its determination to grant or deny a petition for the establishment of a public improvement district.
(4) An ordinance establishing a public improvement district shall include the boundaries of the district, the names of the five (5) * * * initial members of the board of directors of the district and the name of the district.
(5) If all of the land in the area for the proposed district is within the territorial jurisdiction of a municipality, then the petition requesting establishment of a public improvement district under this chapter shall be filed by the petitioner with that particular municipality. In such event, the duties of the county with regard to the petition shall be the duties of the municipality. If any of the land area of a proposed district is within the land area of a municipality, the governing body of the county may not create the district without the approval of the municipality.
(6) The governing body of any governmental agency, county and/or municipality may enter into contribution agreements with the district.
SECTION 2. Section 19-31-9, Mississippi Code of 1972, is amended as follows:
19-31-9. (1) The board of the district shall exercise the powers granted to the district pursuant to this chapter. The board shall consist of five (5) members as otherwise provided in this section. Each member shall hold office for a term of four (4) years or until a successor is chosen and qualifies. The initial members of the board shall be individual residents of the state or entities qualified to do business in the state and at least one (1) of the initial members shall be either a landowner within the district or an individual resident of the area immediately adjacent to the district.
(2) (a) Beginning four (4) years after the initial appointment of members, the position of each member whose term has expired shall be filled by a qualified voter of the district, elected by the qualified voters of the district. There shall be an election of members every four (4) years on the first Tuesday in November at a qualified voters' meeting. Notice of the election shall be announced at a public meeting of the board at least ninety (90) days before the date of the qualified voters' meeting and shall be published once a week for two (2) consecutive weeks in a newspaper which is in general circulation in the area of the district, the last day of such publication to be not fewer than fourteen (14) days nor more than twenty-eight (28) days before the election. In addition, notice of the election shall be sent by first-class mail to all qualified voters at their last known address as shown on the tax rolls. Instructions on how all qualified voters may participate in the election, along with sample proxies, shall be provided during the board meeting that announces the qualified voters' meeting, and the location, date and time of the qualified voters' meeting shall be included on all instructions and notices. * * * A qualified voter may vote in person or by proxy in writing for each of the five (5) board positions. Each proxy must be signed by one (1) of the qualified voters for which the vote is cast and must contain the typed or printed name of the individual who signed the proxy; the street address, legal description of the property, or tax parcel identification number; and the number of authorized votes. The signature on a proxy need not be notarized.
(b) Unless changed by the duly adopted bylaws of the district:
(i) The term "qualified voter" means any district landowner or an authorized representative thereof,
(ii) A qualified voter shall be entitled to one (1) vote for each tax parcel owned, and
(iii) Cumulative voting shall be allowed.
(c) A district, by its duly adopted bylaws, may provide that:
(i) The term "qualified voter" means any landowner paying a district assessment, or an authorized representative thereof, and
(ii) The vote of a qualified voter shall be weighted to reflect the ratio that the district's assessment against the voter's tax parcel bears to the total of all of the district's assessments against all tax parcels in the district.
(3) Members of the board shall be known as directors and, upon entering into office, shall take an oath of office. They shall hold office for the terms for which they were elected or appointed and until their successors are chosen and qualified. If during the term of office, a vacancy occurs, the remaining members of the board shall fill the vacancy by an appointment for the remainder of the unexpired term.
(4) A majority of the members of the board constitutes a quorum for the purposes of conducting its business and exercising its powers and for all other purposes. Action taken by the district shall be upon a vote of a majority of the members present unless general law or a rule of the district requires a greater number.
(5) As soon as practicable after each election or appointment, the board shall organize by electing one (1) of its members as chair and by electing a secretary, who need not be a member of the board, and such other officers as the board may deem necessary.
(6) The board shall keep a permanent minute book in which shall be recorded minutes of all meetings, resolutions, ordinances, proceedings and all corporate acts.
(7) Members of the board may receive per diem compensation for services in an amount as provided under Section 25-3-69, and shall be entitled to expenses necessarily incurred in the discharge of their duties in accordance with Section 25-3-41. Any payments for compensation and expenses shall be paid from funds of the district.
SECTION 3. Section 19-31-17, Mississippi Code of 1972, is amended as follows:
19-31-17. The district shall have, and the board may exercise, the power:
(a) To sue and be sued in the name of the district.
(b) To adopt and use a seal and authorize the use of a facsimile thereof.
(c) To acquire, by purchase, gift, devise or otherwise, and to dispose of, real and personal property.
(d) To dedicate, donate or convey in any manner, real and personal property under such terms and conditions as may be agreed upon, to:
(i) Nonprofit entities that have been issued a certificate of public convenience and necessity by the Public Service Commission; or
(ii) Governmental entities.
(e) To make and execute contracts and other instruments necessary or convenient to the exercise of its powers.
(f) To contract for the services of consultants to perform planning, engineering, financial, legal, or other appropriate services of a professional nature.
(g) To borrow money and accept gifts; to apply for and use grants or loans of money or other property from the United States, the state, a unit of local government or any person or any organization for any district purposes and enter into agreements required in connection therewith; and to hold, use and dispose of such monies or property for any district purposes in accordance with the terms of the gift, grant, loan or agreement relating thereto.
(h) To adopt bylaws prescribing the powers, duties and functions of the officers of the district, the conduct of the business of the district and the maintenance of records.
(i) To maintain an office at such place or places as it may designate within a county in which the district is located, which office must be reasonably accessible to the landowners. Meetings shall be held at such office or such other location as may be designated by the board.
(j) To hold, control and acquire by donation, or purchase or dispose of, any public servitudes or dedications to public use and to make use of such servitudes or dedications for any of the purposes authorized by this chapter.
(k) To lease as lessor or lessee to or from any person, firm, corporation, association, or body public or private, any projects of the type that the district is authorized to undertake and facilities or property of any nature for the use of the district to carry out any of the purposes authorized by this chapter.
(l) To borrow money and issue bonds, certificates, warrants, notes or other evidence of indebtedness as provided in this chapter; to levy such special assessments as may be authorized; and to charge, collect and enforce fees and other user charges.
(m) To acquire property within the boundaries of the district for public use through condemnation, exercised pursuant to Sections 11-27-1 through 11-27-51, subject to the approval of the governing body of the county and/or the municipality that enacted the ordinance establishing the district.
(n) To raise, by user charges or fees for services rendered, both within the district and within one (1) mile outside the boundaries of the district, and as authorized by resolution of the board, amounts of money which are necessary for the conduct of the district activities and services and to enforce their receipt and collection in the manner prescribed by resolution not inconsistent with law.
(o) To cooperate with, contract, or enter into contribution agreements with, other governmental agencies, including the governing bodies of counties and/or municipalities, as may be necessary, convenient, incidental or proper in connection with any of the powers, duties or purposes authorized by this chapter.
(p) To determine, order, levy, impose, collect and enforce special assessments pursuant to this chapter.
(q) To enter into interlocal cooperative agreements pursuant to Section 17-13-1 et seq.
(r) To exercise all of the powers necessary and proper in connection with any of the powers, duties or purposes authorized by this chapter.
SECTION 4. Section 19-31-19, Mississippi Code of 1972, is amended as follows:
19-31-19. The district shall have, and the board may exercise, any or all of the special powers relating to public improvements and community facilities authorized by this chapter. The district shall have the power to finance, fund, establish, acquire, construct or reconstruct, enlarge or extend, equip, operate and maintain systems, facilities and basic infrastructures that are within the district, or which benefit or serve the district, for the following:
(a) Water management and control for the lands within the district and connection of some or any of such facilities with roads and bridges.
(b) Water supply, sewer and wastewater management, reclamation and reuse, or any combination thereof.
(c) Bridges or culverts that may be needed across any drain, ditch canal, floodway, holding basin, excavation, public highway, tract, grade, fill or cut and roadways over levees and embankments.
(d) District roads equal to or exceeding the specifications of the county in which such district roads are located, including street lights and the location of underground utilities.
(e) Parks and facilities for indoor and outdoor recreational, cultural and educational uses, and other tourism related infrastructure and facilities.
(f) Fire prevention and control, including fire stations, water mains and plugs, fire trucks, and other vehicles and equipment.
(g) Security, except that the district may not exercise any police power, but may contract with the appropriate local governmental agencies for an increased level of such services within the district boundaries.
(h) Waste collection and disposal.
(i) Systems as defined in Section 21-27-11(b).
SECTION 5. Section 19-31-23, Mississippi Code of 1972, is amended as follows:
19-31-23. (1) The district may issue and sell from time to time bonds, notes, negotiable notes, tax anticipation notes, bond anticipation notes, other fund anticipation notes, renewal notes, refunding bonds, interim certificates, certificates of indebtedness, certificates of participation, debentures, warrants, commercial paper or other obligations or evidences of indebtedness to provide funds for and to fulfill and achieve its public purpose or corporate purposes, as set forth in this chapter, including, but not limited to, the payment of all or a portion of the costs of a project, to provide amounts necessary for any corporate purposes, including incidental expenses in connection with the issuance of the obligations, the payment of principal and interest on the obligations of the district, the establishment of reserves to secure such obligations, and all other purposes and expenditures of the district incident to and necessary or convenient to carry out its public functions or corporate purposes, and any credit enhancement for such obligations.
(2) Except as may otherwise be provided by the district, all obligations issued by the district shall be negotiable instruments and payable solely from the levy of any special assessment by the district or from any other sources whatsoever that may be available to the district but shall not be secured by the full faith and credit of the state or the county or municipality that created the district.
(3) Obligations shall be authorized, issued and sold by a resolution or resolutions of the district adopted as provided in this chapter. Such bonds or obligations may be of such series, bear such date or dates, mature at such time or times, bear interest at such rate or rates, including variable, adjustable, or zero interest rates, be payable at such time or times, be in such denominations, be sold at such price or prices, at public or private negotiated sale, after advertisement as is provided for in Section 17-21-53(2) for and in connection with any public sale, be in such form, carry such registration and exchangeability privileges, be payable at such place or places, be subject to such terms of redemption and be entitled to such priorities on the income, revenue and receipts of, or available to, the district as may be provided by the district in the resolution or resolutions providing for the issuance and sale of the bonds or obligations of the district.
(4) The obligations of the district shall be signed by such directors or officers of the district by either manual or facsimile signatures as shall be determined by resolution or resolutions of the district, and shall have impressed or imprinted thereon the seal of the district or a facsimile thereof.
(5) Any obligations of the district may be validly issued, sold and delivered notwithstanding that one or more of the directors or officers of the district signing such obligations or whose facsimile signature or signatures may be on the obligations shall have ceased to be such director or officer of the district at the time such obligations shall actually have been delivered.
(6) Obligations of the district may be sold in such manner and from time to time as may be determined by the district to be most beneficial, and the district may pay all expenses, premiums, fees or commissions that it deems necessary or advantageous in connection with the issuance and sale thereof, subject to the provisions of this chapter.
(7) The district may authorize the establishment of a fund or funds for the creation of a debt service reserve, a renewal and replacement reserve or such other funds or reserves as the district may approve with respect to the financing and operation of any project and as may be authorized by any bond resolution, trust agreement, indenture of trust or similar instrument or agreement pursuant to the provisions of which the issuance of bonds or other obligations of the district may be authorized.
(8) Notwithstanding any other law to the contrary, but subject to any agreement with bondholders or noteholders, monies of the district not required for immediate use, including proceeds from the sale of any bonds, notes or other obligations, may be invested in:
(a) Obligations of any municipality, the State of Mississippi or the United States of America;
(b) Obligations the principal and interest of which are guaranteed by the State of Mississippi or the United States of America;
(c) Obligations of any corporation wholly owned by the United States of America;
(d) Obligations of any corporation sponsored by the United States of America which are, or may become, eligible as collateral for advances to member banks as determined by the Board of Governors of the Federal Reserve System;
(e) Obligations of insurance firms or other corporations whose investments are rated "A" or better by recognized rating companies;
(f) Certificates of deposit or time deposits of qualified depositories of the State of Mississippi as approved by the State Depository Commission, secured in such manner, if any, as the commission determines appropriate;
(g) Contracts for the purchase and sale of obligations of the type described in paragraphs (a) through (e) of this subsection;
(h) Repurchase agreements secured by obligations described in paragraphs (a) through (e) of this subsection; and
(i) Money market funds, the assets of which are required to be invested in obligations described in paragraphs (a) through (f) of this subsection.
(9) Any cost, obligation or expense incurred for any of the purposes specified in this chapter shall be a part of the project costs and may be paid or reimbursed as such out of the proceeds of bonds or other obligations issued by the district.
(10) Neither the directors of the board nor any person executing the bonds shall be personally liable for the bonds or be subject to any personal liability by reason of the issuance thereof. No earnings or assets of the district shall accrue to the benefit of any private persons. However, the limitation of liability provided for in this subsection shall not apply to any gross negligence or criminal negligence on the part of any director or person executing the bonds.
(11) The district may avail itself of the provisions of Sections 31-13-1 through 31-13-11.
(12) This chapter constitutes full and complete authority for the issuance of bonds and the exercise of the powers of the district provided herein. No procedures or proceedings, publications, notices, consents, approvals, orders, acts or things by the board or any board, officers, commission, department, agency or instrumentality of the district, other than those required by this chapter, shall be required to perform anything under this chapter, except that the issuance or sale of bonds pursuant to the provisions of this chapter shall comply with the general law requirements applicable to the issuance or sale of bonds by the district. Nothing in this chapter shall be construed to authorize the district to utilize bond proceeds to fund the ongoing operations of the district.
(13) Before incurring any debt as provided in subsection (1) of this section, the district may, but shall not be required to, secure an agreement from one or more developers obligating such developer or developers:
(a) To effect the completion of all or any portion of a project at no cost to the district;
(b) To pay all or any portion of the real property taxes due on the project in a timely manner; and
(c) To maintain and operate all or any portion of the buildings or other facilities or improvements of the project in such a manner as to preserve property values.
No breach of any such agreement shall impose any pecuniary liability upon a district or any charge upon its general credit or against its taxing powers.
Additionally, the district may enter into an agreement with the developer under which the developer may construct all or any part of the project with private funds in advance of issuance of bonds and may be reimbursed by the district for actual costs incurred by the developer upon issuance and delivery of bonds and receipt of the proceeds, conditioned upon dedication of the project by the developer to the district, a governmental agency, a county or a municipality to assure public use and access. This condition shall not apply to the privately owned portion of a project for which the Mississippi Development Authority has issued a certificate of convenience and necessity pursuant to the Regional Economic Development Act.
As used in this section, the term "developer" means any entity or natural person which enters into an agreement with a district whereby the developer agrees to construct, operate and maintain or procure the construction, operation and maintenance of a project or projects, or portions thereof, upon land within the district.
SECTION 6. Section 19-31-33, Mississippi Code of 1972, is amended as follows:
19-31-33. (1) The board shall annually determine, order and levy the annual installment of the total benefit special assessments for bonds issued and related expenses to finance district facilities and projects that are levied under this chapter. These assessments may be due and collected during each year that county taxes are due and collected, in which case such annual installment and levy shall be evidenced to and certified to the assessor by the board not later than August 31 of each year. Such assessments shall be entered by the assessor on the county tax rolls and shall be collected and enforced by the tax collector in the same manner and at the same time as county taxes, and the proceeds thereof shall be paid to the district. These benefit special assessments shall be a lien on the property against which assessed until paid and shall be collectible and enforceable in like manner as county property taxes. All statutes regulating the collection and enforcement of county property taxes shall apply to the enforcement and collection of the benefit special assessments levied under this section. The amount of the assessment for the exercise of the district's powers under this chapter shall be determined by the board based upon a report of the district's engineer and assessed by the board upon such lands, which may be part or all of the lands within the district benefited by the improvement, apportioned between benefited lands in proportion to the benefits received by each tract of land.
(2) To maintain and preserve the facilities and projects of the district, the board shall levy a maintenance special assessment. This assessment may be evidenced by and certified to the assessor by the board of directors not later than August 31 of each year and shall be entered by the assessor on the county tax rolls and shall be collected and enforced by the tax collector in the same manner and at the same time as county taxes, and the proceeds therefrom shall be paid to the district. These maintenance special assessments shall be a lien on the property against which assessed until paid and shall be collectible and enforceable in like manner as county property taxes and all statutes regulating the collection and enforcement of county property taxes shall apply to the enforcement and collection of the benefit special assessments levied under this section. The amount of the maintenance special assessment for the exercise of the district's powers under this chapter shall be determined by the board based upon a report of the district's engineer and assessed by the board upon such lands, which may be all of the lands within the district benefited by the maintenance thereof, apportioned between the benefited lands in proportion to the benefits received by each tract of land.
(3) Benefit special assessments * * * authorized by this section shall be levied and payable in annual installments for each year for which bonds secured by the assessment are outstanding. The tax collector shall collect and enforce benefit special assessments and maintenance special assessments in the same manner and at the same time as ad valorem taxes. Benefit special assessments and maintenance special assessments shall constitute a lien on the property against which assessed until paid and shall be on a parity with the lien of state, county, municipal and school board property taxes.
(4) The tax assessor and tax collector are entitled to reasonable compensation for preparing the rolls and collecting the assessments.
(5) District assessments may be made payable in no more than forty (40) yearly installments.
* * *
SECTION 7. Section 19-31-39, Mississippi Code of 1972, is amended as follows:
19-31-39. (1) The district may prescribe, fix, establish and collect rates, fees, rentals or other charges for the facilities and services furnished by the district, within the limits of the district, including but not limited to, recreational facilities, water management and control facilities and water and sewer systems. The district may also recover the costs of making connection with any district facility or system and provide for reasonable penalties against any user or property for any such rates, fees, rentals or other charges that are delinquent.
(2) No such rates, fees, rentals or other charges for any of the facilities or services of the district may be fixed until after a public hearing at which all the users of the proposed facility or services shall have an opportunity to be heard concerning the proposed rates, fees, rentals or other charges. Notice of such public hearing setting forth the proposed schedule of rates, fees, rentals and other charges shall be published in a newspaper having general circulation in the county once at least ten (10) days before such public hearing.
SECTION 8. Section 19-31-43, Mississippi Code of 1972, is amended as follows:
19-31-43. (1) The boundaries of the district may be contracted or expanded in the same manner in which the district was created pursuant to this chapter; however, the petition shall be filed by the board and be required to contain the written consent of all landowners within only the proposed area of expansion or contraction.
(2) (a) Subject to the limitations of paragraph (b) of this subsection, the district may be terminated or dissolved in one of the following ways:
(i) The district may be terminated or dissolved upon the transfer of all the public improvement services of the district to a unit of local government. The district shall be terminated in accordance with a plan of termination which shall be adopted by the board of directors and filed with the clerk of the court.
(ii) If, within five (5) years after the effective date of the ordinance creating the district, a landowner has not received a development permit on some part or all of the area covered by the district, then the district will be automatically dissolved and a court of competent jurisdiction shall cause a statement to that effect to be filed in the public records.
(iii) If the district has become inactive, the county or municipality that created the district shall be informed and shall take appropriate action.
(b) The district may not be dissolved or terminated if any bonds issued by the district, or bonds for which the district is obligated, are outstanding or are secured by special assessments or other security instruments to which the district is a party in connection with the bonds.
SECTION 9. The Attorney General of the State of Mississippi shall submit this act, immediately upon approval by the Governor, or upon approval by the Legislature subsequent to a veto, to the Attorney General of the United States or to the United States District Court for the District of Columbia in accordance with the provisions of the Voting Rights Act of 1965, as amended and extended.
SECTION 10. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended.
