Miss. Code Ann. § 77-6-1 Short title.
This chapter shall be known and may be cited as the “Municipal Gas Authority of Mississippi Law.”
Municipal Gas Authority of Mississippi Law
Miss. Code Ann. tit. 77, ch. 6
in effectMiss. Code Ann. § 77-6-3 Legislative intent.
The Legislature hereby finds and declares that certain municipalities of this state now own and operate gas distribution systems to serve their citizens, inhabitants and customers by providing them with gas for all purposes; and if such municipalities are to furnish, and if the members of the public in the areas they serve are to receive adequate service, such municipalities must have adequate, dependable and economical sources of gas supplies. The Legislature declares that there exists in this state a need for an authority to function without profit in developing, obtaining and promoting for the public good in this state adequate, dependable and economical sources and supplies of gas for the purposes expressed in this section, and to assist in the financing of additions and other expenditures for the municipal gas systems of such municipalities.
Miss. Code Ann. § 77-6-5 Definitions.
For purposes of this chapter, the following words shall have the meanings ascribed in this section unless the context otherwise requires:
“Authority” means the Municipal Gas Authority of Mississippi and any successor thereto. Any change in name or composition of the authority shall in no way affect the vested rights of any person under this chapter or impair the obligations of any contract existing under this chapter.
“Bond anticipation notes” or “notes” means obligations issued after validation of bonds and in anticipation of the issuance of the bonds as validated.
“Bonds” or “revenue bonds” means any bonds issued by the authority under this chapter, including refunding bonds.
“Cost of project” or “cost of construction” means all costs of construction; all costs of real and personal property required for the purposes of such project and facilities related thereto including land and any leases, rights or undivided interest therein, easements, franchises, water rights, mineral rights, fees, permits, approvals, licenses and certificates, and the securing of such permits, approvals, licenses and certificates and the preparation of applications therefor and including all machinery and equipment, including equipment for use in connection with such construction; financing charges; working capital; interest prior to and during construction and during such additional period as the authority may determine; operating expenses during such period as the authority may determine; costs of engineering, geological, economic, architectural and legal services; costs of plans and specifications and all expenses necessary or incidental to determining the feasibility or practicability of the project; costs of insurance or of self-insuring any project; administrative expenses; amounts payable under any judgment against the authority; environmental mitigation costs; all costs associated with acquiring the contract rights or other contractual arrangements for the short-term or long-term provision of gas supplies including reserves, transmission, distribution, storage, peaking or other services associated therewith including prepayments for such; and such other expenses as may be necessary or incidental to the financing and is authorized by this chapter. All funds paid or advanced for any of the purposes mentioned in this paragraph by municipalities contracting with the authority prior to the issuance of any of the authority’s bonds or notes may be refunded to such municipalities out of the proceeds of any bonds or notes so issued. The cost of any project may also include a fund or funds for the creation of a debt service reserve, a renewal and replacement reserve, and such other reserves as may be reasonably required by the authority for the operation of its projects and as may be authorized by any bond resolution or trust agreement or indenture pursuant to the provisions of which the issuance of any such bonds or bond anticipation notes may be authorized. Any obligation or expense incurred for any of the purposes mentioned in this paragraph shall be regarded as a part of the cost of the project and may be paid or reimbursed as such out of the proceeds of revenue bonds or notes issued under this chapter for such project.
“Distribution” means the conveyance of gas to members of the authority and hence to the ultimate consumer.
“Exploration” means the processes, properties, activities and facilities used for the discovery of deposits of gas, and the study and implementation of enhanced gas recovery methods.
“Gas” means either natural or synthetic gas, including propane, manufactured gas, methane from coal beds, geothermal gas, and mixtures thereof, whether in gaseous or liquid form, or any byproduct resulting therefrom.
“Governing authorities” means the legislative body, council, board of commissioners, board of aldermen, state agency, other body charged by law with governing the municipality or other entity eligible to be a member hereof.
“Governing board” means the legislative body, council, board of trustees, board of commissioners or other body charged by law with governing the municipality or authority.
“Local distribution company” means any person, other than any interstate pipeline or any intrastate pipeline, engaged in the transportation, or local distribution, of natural gas and the sale of natural gas for ultimate consumption.
“Municipality” means a city, county or other political subdivision or agency of a state.
“Production” means the physical activities, processes, properties and facilities for development, manufacture, synthesis, production, coal gasification, extraction, gathering of gas or conversion of one form of gas to another.
“Project,” “undertaking” or “facility” means any plant, works, system, facility, and real and personal property of any nature whatsoever together with all parts thereof and appurtenances thereto, and any contract rights relating to the storage, acquisition, distribution, transmission, purchase, sale, exchange or interchange of gas and relating to the acquisition, transportation, or storage of natural gas, or any interest in or right to the use, services, enrichment, output or capacity of any such plant, works, system or facilities. “Project” or “undertaking” as used in this paragraph is intended to include contracts and contract rights as well as tangible property. “Project,” “undertaking” or “facility” shall not include any plant, works, system, facility or real or personal property of any nature whatsoever, or any parts thereof or appurtenances thereto, relating to exploration or production.
“Revenue anticipation notes” means obligations issued by the authority for the purpose of meeting the current and necessary expenses of the authority as provided for in Section 77-6-77.
“State” means the State of Mississippi.
“Storage” means any process, properties, activities or facilities used to hold, store or maintain gas.
“System” means those properties, facilities, projects, contractual rights or combination thereof of the authority which are designated by the authority as constituting a specific combination for the purposes of financing such, or for the purposes of providing gas supplies or services to a specified group of municipalities or to a specified geographic area.
“Transmission” means the transfer of gas by the authority from its acquisition site to, between or among cities or municipal gas agencies or other persons with whom they may contract.
“Utility commission” means the legislative body, board of commissioners or body charged by law with the control, management and operation of gas production, transmission or distribution systems.
Miss. Code Ann. § 77-6-7 Municipal Gas Authority of Mississippi created; purpose; initial membership; principal office.
There shall be created a local distribution company of the state to be known as the Municipal Gas Authority of Mississippi for the purpose of undertaking the planning, financing, development, acquisition, construction, reconstruction, improvement, enlargement, betterment, operation and maintenance of a project or projects to supply gas for present or future needs as an alternative or supplemental method of obtaining the benefits and assuming the responsibilities of ownership in a project. In determining whether or not membership in the authority for such purpose is in the best interests of the municipalities, the utility commissions shall take into consideration, but shall not be limited to the following:
Whether or not a separate entity may be able to finance the cost of projects in a more efficient and economical manner;
Whether or not better financial market acceptance may result if one (1) entity is responsible for issuing all of the bonds required for a project or projects in a timely and orderly manner and with a uniform credit rating instead of multiple entities issuing separate issues of bonds;
Whether or not savings and other advantages may be obtained by providing a separate entity responsible for the acquisition, construction, ownership and operation of a project or projects; and
Whether or not the existence of such a separate entity will foster the continuation of joint planning and undertaking of projects, and the resulting economies and efficiencies to be derived from such joint planning and undertaking.
If a utility commission shall determine that it is in the best interest of the municipality to become a member of the Municipal Gas Authority of Mississippi, it shall adopt a resolution so finding, which need not prescribe in detail the basis for the determination, and which shall set forth the names of the municipalities which are proposed to be initial members of the authority. Said resolution shall be certified to the governing authorities who shall thereupon disapprove or ratify the determination of said utility commission by resolution or ordinance spread upon its official minutes. The governing authorities shall cause notice of such determination to be given to the presiding officer of the utility commission of the municipality, which utility commission shall thereupon appoint in writing one (1) commissioner of the authority, which commissioner may, in the discretion of the utility commission, be an officer or employee of the municipality.
All such resolutions of intent to become initial members of the authority shall be presented, by the appointed commissioner of such utility commission, at its organizational meeting which shall be held in the old Supreme Court chamber of the New Capitol at 2:00 p.m. on May 16, 1988. The commissioners shall organize and elect a chairman and other such officers as may be desirable in the determination of the commissioners.
The authority shall have its principal office in Hinds County and its legal situs or residence for the purposes of this chapter shall be Hinds County.
Miss. Code Ann. § 77-6-9 Membership in authority after its creation; withdrawal.
After the creation of the authority, any other municipality may become a member thereof upon application to such authority after the adoption of a resolution by the utility commission of the municipality setting forth the determination and finding prescribed in Section 77-6-7, and the adoption by the governing authorities of the municipality of a resolution or ordinance ratifying the determination of the utility commission and authorizing said municipality to participate, and with the majority consent of the members of the authority evidenced by the resolutions of their respective utility commissions. Any municipality may withdraw from the authority, provided that all contractual rights acquired and obligations incurred while a municipality was a member shall remain in full force and effect. The withdrawing municipality shall continue to honor its obligations entered into while a member of the authority.
Miss. Code Ann. § 77-6-11 Board of commissioners.
The authority shall consist of a board of commissioners appointed by the respective utility commissions of the municipalities which are members of the authority. Each municipality shall appoint one (1) commissioner who may, at the discretion of the municipality, be an officer or employee of the municipality, the appointment to be made by resolution. Each commissioner shall have one (1) vote. Each commissioner shall serve at the pleasure of the utility commission by which he was appointed. Each appointed commissioner before entering upon his duties shall enter into bond with a corporate surety in an amount not less than Ten Thousand Dollars ($10,000.00), conditioned on the faithful performance of his duties, and shall take and subscribe to an oath, before some person authorized by law to administer oaths, to execute the duties of his office faithfully and impartially, and such bond and oath shall be filed with the governing authority of the appointing municipality and spread upon its minutes. The premiums on such bonds shall be paid by the municipality.
The board of commissioners of the authority shall annually elect one (1) of the commissioners as chairman, another as vice-chairman, and another person or persons who may but need not be commissioners to serve as treasurer, secretary and, if desired, assistant secretary. The treasurer shall enter into bond with a corporate surety in such amount of not less than Twenty-five Thousand Dollars ($25,000.00), as may be determined by the commissioners. The office of treasurer may be held by the secretary or assistant secretary. The board of commissioners may also appoint such additional officers as it deems necessary. The secretary or assistant secretary of the authority shall keep a record of the proceedings of the authority, and the secretary shall be the custodian of all records, books, documents and papers filed with the authority, the minute book or journal of the authority and its official seal. Either the secretary or the assistant secretary of the authority may cause copies to be made of all minutes and other records and documents of the authority and may give certificates under the official seal of the authority to the effect that such copies are true copies, and all persons dealing with the authority may rely upon such certificates.
A majority of the commissioners of the authority then in office shall constitute a quorum. A vacancy in the board of commissioners of the authority shall not impair the right of a quorum to exercise all the rights and perform all the duties of the authority. Any action taken by the authority under the provisions of this chapter may be authorized by resolution at any regular or special meeting, and each such resolution shall take effect immediately and need not be published or posted. A majority of the votes which the commissioners present are entitled to cast shall be necessary and sufficient to take any action or to pass any resolution, provided that such commissioners present are entitled to cast a majority of the votes of all commissioners of the board. Any commissioner may participate and vote in regular or special meetings of the board, as well as meetings of various committees of the board, via telecommunications or electronic means, and such participation and voting shall have the same effect as if the commissioner were physically present at such meetings. Any meeting of the board of commissioners or of a committee of the board at which one or more of the commissioners is participating via telecommunications or electronic means shall be subject to the Open Meetings Law (Chapter 41, Title 25, Mississippi Code of 1972), and all discussions during the meeting via telecommunications or electronic means, other than discussions held in executive session, must be open to the public. Notice of any meeting at which one or more commissioners may be participating via telecommunications or electronic means shall specify the location at which the meeting will be open to the public.
No commissioner of the authority shall receive any compensation for the performance of his duties hereunder; however, each commissioner, other than a commissioner participating in a meeting via telecommunications or electronic means, may be paid a per diem as provided by Section 25-3-69 while engaged in the performance of such duties.
Miss. Code Ann. § 77-6-13 Executive committee of board of commissioners.
The board of commissioners of the authority may create an executive committee of the board of commissioners. The board may provide for the composition of the executive committee so as to afford, in its judgment, fair representation of the member municipalities. The executive committee shall have and exercise such of the powers and authority of the board of commissioners during intervals between the board’s meetings as may be prescribed by its rules, motions or resolutions. The terms of office of the members of the executive committee and the method of filling vacancies therein shall be fixed by the rules of the board of commissioners of the authority.
Miss. Code Ann. § 77-6-15 Rights and powers of authority.
The authority shall have all of the rights and powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including, but without limiting the generality of the foregoing, the rights and powers:
To adopt bylaws for the regulation of the affairs and the conduct of its business, and to prescribe rules, regulations and policies in connection with the performance of its functions and duties;
To adopt an official seal and alter the same at pleasure;
To sue and be sued in its own name, and to plead and be impleaded;
To receive, administer and comply with the conditions and requirements respecting any gift, grant or donation of any property or money;
To acquire by purchase, lease, gift or otherwise, or to obtain options for the acquisition of, any property, real or personal, improved or unimproved, including rights-of-way or other interests in land less than the fee thereof;
To sell, lease, exchange, transfer or otherwise dispose of, or to grant options for any such purposes with respect to, any real or personal property or interest therein;
To pledge or assign any money, rents, charges or other revenues and any proceeds derived by the authority from the sales of property, insurance or condemnation awards;
To issue bonds of the authority for the purpose of providing funds for any of its corporate purposes;
To study, plan, finance, construct, reconstruct, acquire, improve, enlarge, extend, better, own, operate and maintain, one or more projects, either individually or jointly, with one or more municipalities in this state or any other state or with any agencies or instrumentalities of any state, or any person, firm, association or corporation, public or private, engaged in the production, transmission, distribution or end-use of gas within this state or any other state, and to pay all or any part of the costs thereof from the proceeds of bonds of the authority or from any other funds made available to the authority;
To authorize the construction, operation or maintenance of any project or projects by any person, firm or corporation, including municipalities and agencies of any state, or of the United States;
To acquire by lease, purchase or otherwise an existing project or a project under construction, or any interest therein, or portion thereof;
With the consent of sixty percent (60%) of the member municipalities, to sell or otherwise dispose of any project or projects, or any interest therein or portion thereof. The member municipalities may enter into an agreement with the authority whereby certain types of property may be traded or otherwise disposed of without unanimous consent of the member municipalities;
To fix, charge and collect rents, rates, fees and charges for gas and other services, facilities and commodities sold, furnished or supplied through any project;
To transmit, distribute, exchange or purchase gas, and to enter into contracts for any or all such purposes;
To negotiate and enter into contracts for the purchase, sale, exchange, interchange, transportation, pooling, transmission, distribution, storage and processing of natural gas or use of gas with any municipality in this state or any other state owning gas distribution facilities, or with any municipalities, agencies or instrumentalities of any other state or with any gas association, any public or private utility, and any state, federal or municipal agency which owns gas production, transmission or distribution facilities end-use in this state or any other state;
To make and execute contracts and other instruments necessary or convenient in the exercise of the powers and functions of the authority under this chapter, including contracts with persons, firms, corporations and others;
To apply to the appropriate agencies of the state, the United States or any state thereof, and to any other proper agency for such permits, licenses, certificates or approvals as may be necessary to provide services, and to construct, maintain and operate projects in accordance with, and to obtain, hold and use, such licenses, permits, certificates or approvals in the same manner as any other person or operating unit of any other person;
To employ engineers, architects, geologists, economists, attorneys, real estate counselors, appraisers, financial advisors and such other consultants and employees as may be required in the judgment of the authority and to fix and pay their compensation from funds available to the authority therefor;
To purchase all kinds of insurance including, but not limited to, insurance against business interruption, and/or risks of damage to property;
To purchase gas and related services from any source on behalf of its members and other customers and to sell the same to its members and other customers in such amounts, with such characteristics, for such periods of time and under such terms and conditions as the board of commissioners shall determine;
To do any and all things necessary and proper to reduce the cost of gas furnished to municipalities contracting with the authority including, without limitation, entering into interest rate swaps and other arrangements for restructuring the authority’s capitalization;
To provide management, technical, financial, informational, promotional and educational services to and for the benefit of the municipalities;
To do any and all things necessary, convenient or proper for the accomplishment of the objectives of this chapter and to exercise the powers granted to the authority herein.
Miss. Code Ann. § 77-6-17 Projects requiring financing by bonds; approval required; determination by authority; notice of determination; hearing; appeal from determination.
The authority shall not undertake any project required to be financed, in whole or in part, with the proceeds of bonds without the approval of sixty percent (60%) of its members. Before undertaking such project, required to be financed in whole or in part with the proceeds of bonds, the authority shall, based upon engineering studies and reports, determine that such project is required to provide for the projected needs for gas of its members from and after the date the project is estimated to be placed in normal and continuous operation and for a reasonable period of time thereafter. In determining the future gas requirements of the members of the authority, there shall be taken into account the following:
The economies and efficiencies estimated to be achieved in acquiring, constructing and operating the proposed facilities for the transmission of gas.
The estimated requirements for gas and for reserve capacity and to meet obligations under pooling and reserve sharing agreements reasonably related to its needs for gas to which the authority is or may become a party; and
The cost of such existing alternative gas supply sources.
A determination by the authority based upon appropriate findings of the foregoing matters shall be conclusive as to the appropriateness of a project to provide the needs of the members of the authority for gas unless an interested party aggrieved by the determination of said authority shall file an appeal therefrom as herein provided. Notice of the determination by the authority shall be published one (1) time in one or more newspapers having general circulation in each of the municipalities constituting the membership of the authority and shall specify a date, not less than ten (10) days after the publication of such notice, at which the authority shall meet to hear any objections or remonstrances that may be made. At said meeting, the commissioners of the authority shall consider the objections or protests, if any, and shall at said meeting, or at any adjourned meeting, affirm, modify or rescind the determination. Any person or party objecting or protesting the determination at said meeting who is aggrieved by the action of said authority may appeal within ten (10) days from the date of adjournment at which session the authority rendered said determination, and may embody the facts and determination in a bill of exceptions which shall be signed by the person acting as chairman of the board of commissioners of the authority. The secretary thereof shall transmit at once the bill of exceptions to the circuit court of the county in which the principal office of the authority is located, and the court shall either in termtime or in vacation hear and determine the same on the case as presented by the bill of exceptions as an appellate court, and shall affirm or reverse the determination of the authority. If the determination of the authority be reversed, the circuit court shall certify the same to the board of commissioners of the authority. Costs shall be awarded as in other cases. The authority may employ counsel to defend such appeals to be paid out of the funds of the authority. Any such appeal may be heard and determined in vacation in the discretion of the court on motion of either party on written notice of ten (10) days to the other party or parties or the attorney of record, and the hearing of the same shall be held in the county where the suit is pending unless the judge in his order shall otherwise direct. Provided, however, no appeal to the circuit court shall be taken from any order or determination of the authority which authorizes the issuance or sale of bonds, but all objections to any matters relating to the issuance or sale of bonds shall be adjudicated and determined by the chancery court, in accordance with the provisions of Sections 31-13-5 through 31-13-11, Mississippi Code of 1972.
Nothing herein contained shall prevent the authority from undertaking studies to determine whether there is a need for a project or whether such project is feasible.
Miss. Code Ann. § 77-6-19 Municipalities that may contract with authority.
The municipalities with which the authority shall be authorized to contract to provide a gas supply pursuant to this chapter shall be those municipalities of this state or any other state who may distribute or be end-users thereof.
Miss. Code Ann. § 77-6-21 Contracts to buy gas from authority.
Any municipality which is a member of the authority may contract to buy from the authority gas required for its present or future requirements, including the capacity and output of one or more specified projects. As the creation of the authority is an alternative method, among other things, whereby a municipality may obtain the benefits and assume the responsibilities of ownership in a project, any such contract may provide that the municipality so contracting shall be obligated to make the payments required by the contract whether or not a project is completed, operable, operating, retired or decommissioned and notwithstanding the suspension, interruption, interference, reduction, curtailment or termination of the output of a project or the gas contracted for, and that such payments under the contract shall not be subject to any reduction whether by offset or otherwise, and shall not be conditioned upon the performance or nonperformance of the authority or any other member of the authority under the contract or any other instrument. Any contract with respect to the sale or purchase of capacity or output of a project entered into between the authority and its member municipalities may also provide that if one or more of such municipalities shall withdraw from the authority or default in the payment of its or their obligations, with respect to the purchase of said capacity or output, then in that event the remaining member municipalities which are purchasing capacity and output under the contract shall be required to accept and pay for and shall be entitled proportionately to and may use or otherwise dispose of the capacity or output which was to be purchased by the defaulting municipality.
Notwithstanding the provisions of any other law to the contrary, any such contracts with respect to the sale or purchase of capacity, output or gas from a project may extend for a period not exceeding fifty (50) years from the date a project is estimated to be placed in normal continuous operation; and the execution and effectiveness thereof shall not be subject to any authorizations or approvals by the state or any agency, commission or instrumentality or municipality thereof except as in this chapter specifically required and provided.
Payments by a municipality under any contract for the purchase of capacity and output from the authority shall be made solely from the revenues derived from the ownership and operation of the gas system of said municipality, or other revenues when applicable, and any obligation under such contract shall not constitute a legal or equitable pledge, charge, lien or encumbrance upon any property of the municipality or upon any of its income, receipts or revenues, except the revenues of its gas system, and neither the full faith and credit nor the taxing power of the municipality are, or may be, pledged for the payment of any obligation under any such contract. A municipality, when applicable, shall be obligated to fix, charge and collect rents, rates, fees and charges for gas and other services, facilities and commodities, sold, furnished or supplied through its gas system sufficient to provide revenues adequate to meet its obligations under any such contract and to pay any and all other amounts payable from or constituting a charge and lien upon such revenues, including amounts sufficient to pay the principal of and interest on bonds heretofore or hereafter issued by the municipality for purposes related to its gas system.
Any municipality which is a member of the authority may furnish the authority with money derived solely from the ownership and operation of its gas system or facilities and may make available for the use of the authority any personnel, equipment and property, both real and personal, which is a part of its gas system or facilities, and any other agency or end-user shall pay from any and all revenues available.
Any member of the authority may contract for, advance or contribute funds derived solely from the ownership and operation of its gas system or facilities to the authority as may be agreed upon by the authority and the member, and the authority shall repay such advances or contributions from proceeds of bonds, from operating revenues or from any other funds of the authority, together with interest thereon as may be agreed upon by the member and the authority.
Miss. Code Ann. § 77-6-23 Excess capacity or output may be sold or exchanged.
The authority may sell or exchange the excess capacity or output of a project not then required by any of its members or with any party with whom the authority may contract for such consideration and for such period and upon such other terms and conditions as may be determined by the parties to any municipality or with any party with whom the authority may contract in this state or any other state owning gas distribution facilities, to any municipalities, agencies or instrumentalities of any other state, to any gas association, to any end-user, to any public or private utility, or to any other state, federal or municipal agency which owns gas production, transmission or distribution facilities either within or without this state. Provided, however, that sales of excess capacity or output of a project to gas associations, public or private utilities, and other persons the interest on whose securities and other obligations are not exempt from taxation by the federal government shall not be made in such amounts, for such periods of time, and under such terms and conditions as will cause the interest on bonds issued to finance the cost of a project to become taxable by the federal government.
Miss. Code Ann. § 77-6-25 Provisions to be construed as authorizing joint and several ownership of projects.
The definitions and all other terms and provisions of this chapter shall be construed so as to include and authorize the joint or several ownership, operation, and/or maintenance by one or more municipalities or the authority of a project, or any undivided ownership interest therein, with any person, firm, association or corporation, public or private, engaged in the production, transmission or distribution of gas either within or without this state.
Miss. Code Ann. § 77-6-27 Acquisition of property; contract requirements.
A municipality’s or the authority’s purchase of, contract for the acquisition of, or contract for any property, including any project or interest therein, or the construction of, or the operation and maintenance of, any project, owned or to be owned jointly by such municipality or the authority with any person, firm or corporation engaged in the production, transmission or distribution of gas, either within or without this state, other than with a municipality of this state or the authority created pursuant to this chapter, may be made or entered into without meeting the requirements of any law relating to acquisitions, purchases or contracts by competitive bids where the interest to be acquired by such municipality or the authority in such property or project is twenty-five percent (25%) or less.
If a municipality or the authority which finds and records on its minutes that acquisition of any project or any interest therein or any portion thereof, or any property or any interest therein or any portion thereof, which is authorized by this chapter is available or can be acquired or contracted for from or with a municipality or the authority or only a single source, person, firm or corporation, then such acquisition or contract may be made or entered into without meeting the requirements of any law relating to acquisitions, purchases or contracts by competitive bids. If, after advertising for competitive bids as to other proposed purchases, acquisitions or contracts, only one (1) bid is received, the municipality or the authority, as the case may be, may reject the bid and negotiate privately any purchase, contract or acquisition for a consideration not exceeding that proposed in the bid.
Miss. Code Ann. § 77-6-29 Power to issue revenue bonds.
The authority may issue revenue bonds pledging to the payment thereof as to both principal and interest the revenues or any portion thereof, derived or to be derived from all or any of its projects, and any additions and betterments thereto or extensions thereof, or contributions or advances from its members. Bonds of the authority shall be authorized by a resolution adopted by its governing board and spread upon its minutes.
Miss. Code Ann. § 77-6-31 Revenue bonds; powers and duties.
Each municipality and the authority are hereby authorized to issue at one (1) time or from time to time revenue bonds for the purpose of paying all or any part of the cost of any of the purposes authorized by this chapter. The principal of, premium, if any, and the interest on such bonds shall be payable solely from the respective funds herein provided for such payment. The bonds of each issue shall bear interest at such rate or rates as may be determined by the issuer, provided that the bonds of any issue shall not bear a greater overall interest rate to maturity than that allowed in Section 75-17-103, Mississippi Code of 1972. The bonds of each issue shall be dated and shall mature in such amounts and at such time or times, either as serial bonds or term bonds or a combination of serial and term bonds, not exceeding fifty (50) years from their respective date or dates, as may be determined by the governing board of the issuer, and may be made redeemable before maturity at such price or prices and under such terms and conditions as may be fixed by the governing board of the issuer prior to the issuance of the bonds. The governing board of the issuer shall determine the form and the manner of execution of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the state. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bond, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. The governing board of the issuer may also provide for the authentication of the bonds by a trustee or fiscal agent. The bonds may be issued in coupon or in fully registered form, or both, as the governing board of the issuer may determine, and provisions may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the interchange of registered and coupon bonds. No bond shall bear more than one (1) rate of interest. All bonds of the same maturity shall bear the same rate of interest from date to maturity. All interest accruing on such bonds so issued shall be payable semiannually or annually, except that the first interest coupon attached to any such bond may be for any period not exceeding one (1) year. All bonds issued pursuant to this chapter shall be advertised and sold on sealed bids in the manner provided under the provisions of Section 31-19-25; provided that on bond sales in excess of Five Million Dollars ($5,000,000.00) the authority may sell its bonds by negotiated sale at not less than ninety-eight percent (98%) of par, plus accrued interest, when the authority has employed a qualified financial advisor for the proposed bond issue. The duties of the financial advisor shall include the responsibility of preparing a statement to be submitted to the Governor, the Chairman of the House Ways and Means Committee and the Chairman of the Senate Finance Committee which shall clearly set forth the reasons why the negotiated sale was considered to be in the best interest of the authority and member municipalities, including the estimated savings in cost by selling the bonds at a negotiated sale. The proceeds of the bonds of each issue shall be used solely for the purposes for which such bonds have been issued, and shall be disbursed in such manner and under such restrictions, if any, as the governing board of the issuer may provide in the resolution authorizing the issuance of such bonds. The municipality or the authority may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The municipality or the authority may also provide for the replacement of any bonds which shall have become mutilated or shall have been destroyed or lost. Bonds may be issued under the provisions of this chapter without obtaining the consent of the state or of any municipality, or of any agency, commission or instrumentality of either thereof, and without any other approvals, proceedings or the happening of any conditions or things other than those approvals, proceedings, conditions or things which are specifically required by this chapter and the provisions of the resolution authorizing the issuance of such bonds or the trust agreement securing the same; provided, however, the authority shall not issue any bonds pursuant to this chapter without the approval of sixty percent (60%) of its members. All bonds issued pursuant to this chapter shall be fully negotiable in accordance with their terms and shall be “securities” within the meaning of Article 8 of the Uniform Commercial Code, subject only to provisions of the bonds pertaining to registration. The state hereby covenants with the holders of any bonds issued pursuant to this chapter that so long as such bonds are outstanding and unpaid the state will not terminate the existence of nor limit or alter the rights and powers of a municipality or the authority under this chapter to conduct the activities referred to herein in any way pertinent to the interests of the bondholders, including, without limitation, the right to charge and collect rates, fees and charges and to fulfill the terms of any covenants made with bondholders, or in any way impair the rights and remedies of the bondholders, 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 other security instrument securing the bonds.
Miss. Code Ann. § 77-6-33 Security for bonds.
In the discretion of the governing board of the issuer, any bonds issued under the provisions of this chapter may be secured by a resolution, a trust indenture or other security instrument, and in this regard the issuer may enter into an agreement with any trust company or bank having the powers of a trust company within or without the state to act as trustee for such bonds. Such resolution, trust indenture or other security instrument providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, and may restrict the individual right of action by bondholders.
The resolution, trust indenture or other security instrument providing for the issuance of such bonds may, in the discretion of the governing board of the issuer, contain covenants including, but not limited to, the following:
The pledge of all or any part of the revenues derived or to be derived from the project or projects to be financed by the bonds or from the gas system or facilities of a municipality or the authority.
The rents, rates, fees and charges to be established, maintained and collected, and the use and disposal of revenues, gifts, grants and funds received or to be received by the municipality or the authority.
The setting aside of reserves and the investment, regulation and disposition thereof.
The custody, collection, securing, investment and payment of all moneys held for the payment of bonds.
Limitations or restrictions on the purposes to which the proceeds of sale of bonds then or thereafter to be issued may be applied.
Limitations or restrictions on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, or the refunding of outstanding or other bonds.
The procedure, if any, by which the terms of any contract with bondholders may be amended, the percentage of bonds the bondholders of which must consent thereto and the manner in which such consent may be given.
Events of default and the rights and liabilities arising thereupon, the terms and conditions upon which bonds issued under this chapter shall become or may be declared due before maturity, and the terms and conditions upon which such declaration and its consequences may be waived.
The preparation and maintenance of a budget.
The retention or employment of consulting engineers, independent auditors and other technical consultants.
Limitations on or the prohibition of free service to any person, firm or corporation, public or private.
The acquisition and disposal of property, provided that no project or part thereof shall be mortgaged by such resolution, trust indenture or other security instrument.
Provisions for insurance and for accounting reports and the inspection and audit thereof.
The continuing operation and maintenance of the project.
Miss. Code Ann. § 77-6-35 Rents, rates, fees and charges by municipality.
A municipality is hereby authorized to fix, charge and collect rents, rates, fees and charges for gas and other services, facilities and commodities sold, furnished or supplied through the facilities of its gas system or its interest in any joint project. For so long as any bonds of a municipality are outstanding and unpaid, the rents, fees and charges shall be so fixed as to provide revenues sufficient to pay all costs of and charges and expenses in connection with the proper operation and maintenance of its gas system, and its interest in any joint project, and all necessary repairs, replacements or renewals thereof, to pay when due the principal of, premium, if any, and interest on all bonds and other evidences of indebtedness payable from said revenues, to create and maintain reserves as may be required by any resolution authorizing and securing bonds, to pay when due the principal of, premium, if any, and interest on all bonds heretofore or hereafter issued to finance additions, improvements and betterments to its gas system, and to pay any and all amounts which the municipality may be obligated to pay from said revenues by law or contract. Nothing herein contained shall be construed to prohibit any municipality from expending any revenues in excess of that required herein in any manner otherwise permitted by law.
Miss. Code Ann. § 77-6-37 Rents, rates, fees and charges by authority.
The authority is hereby authorized to fix, charge and collect rents, rates, fees and charges for gas and other services, facilities and commodities sold, furnished or supplied through the facilities of its projects. For so long as any bonds of the authority are outstanding and unpaid, the rents, rates, fees and charges shall be so fixed as to provide revenues sufficient to pay all costs of and charges and expenses in connection with the proper operation and maintenance of its projects and all necessary repairs, replacements or renewals thereof, to pay when due the principal of, premium, if any, and interest on all bonds and other evidences of indebtedness payable from said revenues, to create and maintain reserves as may be required by any resolution authorizing and securing bonds, and to pay any and all amounts which the authority may be obligated to pay from said revenues by law or contract.
Miss. Code Ann. § 77-6-39 Pledge of municipality or authority valid and binding when made.
Any pledge made by a municipality or the authority pursuant to this chapter shall be valid and binding from the date the pledge is made. The revenues, securities and other moneys so pledged and then held or thereafter received by the municipality or the authority or any fiduciary shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the municipality or the authority without regard to whether such parties have notice thereof. The resolution, trust indenture or other security instrument by which a pledge is created need not be filed or recorded in any manner.
Miss. Code Ann. § 77-6-41 Investment of all monies received.
All moneys received pursuant to the authority of this chapter, whether as proceeds from the sale of bonds or as revenues may be temporarily invested and reinvested pending the disbursements thereof in such securities and other investments as may be permitted by law for investment of excess funds of municipalities.
Miss. Code Ann. § 77-6-43 Rights of holders of bonds.
Any holder of bonds issued under the provisions of this chapter or any of the coupons appertaining thereto, except to the extent the rights herein given may be restricted by the resolution authorizing the issuance of such bonds, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights under the laws of the state or granted hereunder, or, to the extent permitted by law, under such resolution authorizing the issuance of such bonds or under any agreement or other contract executed by the municipality or the authority pursuant to this chapter, and may enforce and compel the performance of all duties required by this chapter or by such resolution to be performed by the authority or municipality or by any officer thereof, including the fixing, charging and collecting of rents, rates, fees and charges.
Miss. Code Ann. § 77-6-45 Bonds to be securities.
Bonds issued by a municipality or the authority under the provisions of Sections 77-6-29 through 77-6-57 are hereby made securities in which all public officers and agencies of the state and all political subdivisions, all insurance companies, banking associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any officer or agency of the state or any political subdivision for any purpose for which the deposit of bonds or obligations of the state or any political subdivision is now or may hereafter be authorized by law.
Miss. Code Ann. § 77-6-47 Obligations of issuing municipality or authority.
The bonds shall be special obligations of the municipality or the authority issuing them. The principal of, premium, if any, and interest on the bonds shall not be payable from the general funds of the municipality or the authority, nor shall they constitute a legal or equitable pledge, charge, lien or encumbrance upon any of its property or upon any of its income, receipts or revenues, except the funds which are pledged under the resolution authorizing the bonds. Neither the full faith and credit nor the taxing power of a municipality or of the state are, or may be, pledged for the payment of the principal of or interest on the bonds, and no holder of the bonds shall have the right to compel the exercise of the taxing power by the state or a municipality or the forfeiture of any of its property in connection with any default thereon. Every bond shall recite in substance that the principal of and interest on the bond is payable solely from the revenues pledged to its payment and that the municipality or the authority is not obligated to pay the principal or interest except from such revenues.
Miss. Code Ann. § 77-6-49 Issuance of negotiable notes.
The authority shall have the power and is authorized, whenever revenue bonds of the authority have been validated as provided in Title 31, Mississippi Code of 1972, to issue from time to time its negotiable notes in anticipation of the issuance of such bonds as validated and to renew from time to time any such notes by the issuance of new notes, regardless of whether the notes to be renewed have matured. The authority may issue notes only to provide funds which would otherwise be provided by the issuance of the bonds as validated. The notes may be authorized, sold, executed and delivered in the same manner as bonds. Any resolution authorizing notes of the authority or any issue thereof may contain any provisions which the authority is authorized to include in any resolution authorizing bonds of the authority or any issue thereof; and the authority may include in any notes any terms, covenants or conditions which it is authorized to include in any bonds. All notes shall be general obligations of the authority, payable out of any of its funds or revenues, subject only to any contractual rights of the holders of any of its notes or other obligations then outstanding, provided that there may be specially pledged to the payment of such notes the proceeds to be derived from the issuance of the validated bonds in anticipation of the issuance of which the notes have been issued. Validation of such bonds shall be a condition precedent to the issuance of such notes, but it shall not be required that such notes be judicially validated. Bond anticipation notes shall not be issued in an amount exceeding the par value of the bonds in anticipation of which they are to be issued.
Miss. Code Ann. § 77-6-51 Evidence of indebtedness to be considered negotiable instruments.
Notwithstanding any other law to the contrary, every evidence of indebtedness issued under this chapter shall have all the rights and incidences of negotiable instruments, subject to provisions for registration.
Miss. Code Ann. § 77-6-53 Refunding bonds.
A municipality or the authority is hereby authorized to provide by resolution for the issuance of refunding bonds of the municipality or the authority for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds. The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the municipality or the authority in respect to the same shall be governed by the provisions of this chapter which relate to the issuance of bonds, insofar as such provisions may be appropriate therefor.
Miss. Code Ann. § 77-6-55 Exemption from taxation.
Bonds, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation by the state or any political subdivision or any agency of either thereof, excepting inheritance, estate or gift taxes.
Miss. Code Ann. § 77-6-57 Dissolution of board of commissioners.
Whenever the board of commissioners of the authority and the utility commissions of its member municipalities shall by resolution or ordinance determine that the purposes for which the authority was formed have been substantially fulfilled and that all bonds theretofore issued and all other obligations theretofore incurred by the authority have been fully paid or satisfied, such board of commissioners and utility commissions may declare the authority to be dissolved. On the effective date of such resolution or ordinance, the title to all funds and other property owned by the authority at the time of such dissolution shall vest in the member municipalities of the authority as provided in this chapter and the bylaws of the authority.
Miss. Code Ann. § 77-6-59 Annual reports; audits.
The authority shall, following the closing of each fiscal year, submit an annual report of its activities for the preceding year to the governing authorities and to the utility commissions of its member municipalities. Each such report shall set forth a complete operating and financial statement covering the operations of the authority during such year. The authority shall cause an audit of its books of record and accounts to be made at least once in each year by certified public accountants and the cost thereof may be treated as a part of the cost of construction of a project or projects, or otherwise as part of the expense of administration of a project covered by such audit.
The municipalities possessing ownership interests in a project shall, following the closing of each fiscal year, submit a consolidated or combined annual report of their activities with respect to such project for the preceding year to the respective governing authorities of such municipalities. Each such report shall set forth a complete operating and financial statement covering the operations of the jointly owned project during such year. The municipalities possessing ownership interests in a project shall cause an audit of the books of record and accounts relating to such project to be made at least once in each year by certified public accountants and the cost thereof may be treated as a cost of construction of the project, or otherwise as part of the expenses of the administration of the project covered by such audit.
Miss. Code Ann. § 77-6-61 Application of laws of other states.
Legislative consent is hereby given (a) to the application of the laws of other states with respect to taxation, payments in lieu of taxes, and the assessment thereof, to any municipality or the authority which has acquired or has an interest in a project, real or personal, situated without the state, or which owns or operates a project without the state pursuant to this chapter, and (b) to the application of regulatory and other laws of other states and of the United States to any municipality or authority which owns or operates a project without the state.
Miss. Code Ann. § 77-6-63 Grants and loans authorized.
The governing authorities of any municipality or the authority are hereby authorized to make application and to enter into contracts for and to accept grants-in-aid and loans from the federal and state governments and their agencies for planning, acquiring, constructing, expanding, maintaining and operating any project or facility, or participating in any research or development program, or performing any function which such municipality or the authority may be authorized by general or local law to provide or perform.
In order to exercise the authority granted by this section, the governing authorities of any municipality or the authority may:
Enter into and carry out contracts with the state or federal government or any agency or institution thereof under which such government, agency or institution grants financial or other assistance to the municipality or authority;
Accept such assistance or funds as may be granted or loaned by the state or federal government with or without such a contract;
Agree to and comply with any reasonable conditions which are imposed upon such grants or loans;
Make expenditures from any funds so granted.
Miss. Code Ann. § 77-6-65 Powers and duties in connection with eminent domain, sales to customers of public utilities, and utility lines and rights-of-way.
Municipalities participating in a project of the authority shall possess the power of eminent domain for a project authorized by this chapter to the extent and in the same manner and under the same laws now available to municipalities under the laws of this state; provided, however, a municipality or the authority exercising the power of eminent domain for a project authorized by this chapter shall have no power to condemn any facilities or property owned by a public utility or gas association for the production, transmission or distribution of gas.
There shall be no transmission, sale, distribution or delivery of natural, artificial or mixed gas by the authority to any end user being served by a public utility as defined by Section 77-3-3(d)(ii) holding a certificate of public convenience and necessity issued by the Mississippi Public Service Commission or to any end user located or to be located within the certificated area of such a public utility nor shall the powers of the authority be exercised for or on behalf of any such end user unless the public utility holding such a certificate of public convenience and necessity shall have filed with the Mississippi Public Service Commission a statement that it is either unwilling or unable to serve such user.
The lines and rights-of-way of any public utility or of gas associations or of municipalities participating in a project or of the authority may be crossed by any other municipalities participating in a project of the authority. The lines of any municipality participating in a project of the authority may be crossed by any public utility or gas association. Provided, however, the amount of damages, if any, resulting to the line or right-of-way from the crossing thereof as provided herein shall be determined by the affected parties and shall be paid by the public utility, gas association, municipality or municipalities participating in a project, or the authority, to the owner of the lines or rights-of-way crossed. When the parties affected cannot agree upon the damages to be paid for the crossing, either party may file with the circuit court of the county in which the crossing occurs a petition seeking a determination of the amount of the damages. Said action shall be tried by jury at the next regular term of said court in the same manner and under the same principles as provided for the determination of damages in eminent domain proceedings.
Miss. Code Ann. § 77-6-67 Where utility commission and municipality have same governing authorities.
Whenever the governing authorities of the utility commission and of any municipality are one and the same, separate actions required by this chapter by the governing authorities of the municipality with respect to an action or determination required by this chapter by the governing authorities of the municipality with respect to an action or determination required by this chapter of a utility commission, including the ratification of resolutions of said utility commission, shall not be necessary, but the action required of a utility commission by this chapter shall be deemed to have occurred when done by the body forming the governing authorities and the utility commission.
Miss. Code Ann. § 77-6-69 Provisions supplemental to other laws.
The foregoing sections of this chapter shall be deemed to provide an additional, alternative and complete method for the doing of the things authorized thereby and shall be deemed and construed to be supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing; provided, however, that insofar as the provisions of this chapter are inconsistent with the provisions of any other general, special or local law, the provisions of this chapter shall be controlling. Nothing in this chapter shall be construed to authorize the issuance of bonds for the purpose of financing the ownership of any facilities or any interest therein by any private corporation.
Miss. Code Ann. § 77-6-71 Provisions not subject to Public Service Commission law.
The rates, services and practices relating to the purchase, development, storage, transmission, distribution and sale by the authority of gas as authorized by this chapter shall not be subject to the provisions of the Mississippi Public Service Commission law nor to its regulation. The provisions of this chapter do not, and are not intended to, increase or diminish the authority and jurisdiction of the Public Service Commission with respect to the distribution, sale, or transmission of gas by any county, municipal corporation or other political subdivision of this state.
Miss. Code Ann. § 77-6-73 Provisions to be liberally construed.
In order to effectuate the purposes and policies prescribed in this chapter, the provisions hereof shall be liberally construed.
Miss. Code Ann. § 77-6-75 Members of legislature to have no interest in bonds.
No member of the Legislature or elected official or any partner or associate of any member of the Legislature or elected official shall be interested or derive any income, either directly or indirectly, from the issuance of any bonds under this chapter during his or her term of office or within one (1) year after the expiration of such term of office.
Miss. Code Ann. § 77-6-77 Temporary borrowing through revenue anticipation notes for current and necessary expenses.
The authority is hereby authorized to make temporary borrowings through revenue anticipation notes for the purpose of meeting the current and necessary expenses of the authority (including the purchase of gas supplies) and paying the costs of issuing the revenue anticipation notes. The authority is authorized to make such temporary borrowings through revenue anticipation notes for a period not to exceed thirteen (13) months. To provide for such temporary borrowings, the authority may provide for the private sale of such revenue anticipation notes and may enter into any purchase, loan or credit agreements or other agreements with any banks, trust companies or other lending institutions, investment banking firms or persons in the United States having power to enter into the same. The authority shall provide for repayment of any revenue anticipation note issued hereunder within thirteen (13) months from the issuance date thereof from all or a portion of any available revenues of the system. All temporary borrowings made under this section shall be evidenced by revenue anticipation notes of the authority which shall be issued, from time to time, for such amounts, in such form and in such denominations and subject to terms and conditions of sale and issuance, prepayment or redemption and maturity, rate or rates of interest and time of payment of interest as the board of commissioners shall authorize and direct in accordance with this section. Such authorization and direction may provide for the subsequent issuance of replacement notes to refund, upon issuance thereof, such notes, and may specify such other terms and conditions with respect to the notes or any replacement notes authorized for issuance as the board of commissioners of the authority may determine and direct. Revenue anticipation notes issued by the authority under the provisions of this section shall not be subject to any other requirements set forth in this chapter with respect to projects financed with bonds or the sale of issuance of bonds.
Source: Public.Resource.Org MS CodeURL: https://unicourt.github.io/cic-code-ms/transforms/ms/ocms/r78/gov.ms.code.title.77.htmlFetched: 6/9/2026