MississippiHB 40002026 Regular SessionHouseWALLET

Grenada County; authorize to create the Grenada County Utility Authority.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 0 benefits, 4 costs, 3 mixed.

Rules for water and sewer rates

The Authority can build and run systems and set rates and rules. It can sign long-term contracts to sell, lease, or operate systems. When an agency signs a revenue-backed deal, it must set rates, taxes, or assessments so money always covers operations, reserves, and bond payments. The Authority can enforce standards and may refuse service to users that do not comply.

New county utility runs water and sewer

This law creates the Grenada County Utility Authority to run water and sewer service. A chancery court sets the service area, and towns are included only if they agree in writing or join. A board of at least five runs it, with at least two members from acquired utilities or unserved areas. Directors serve staggered first terms, then four-year terms, and can be reappointed. Members get per diem and travel, not a salary. The treasurer posts a bond of at least $50,000, and each director may be required to post at least $10,000.

Bonds and protections for utility projects

The Authority can borrow and sell revenue and special assessment bonds and short-term notes (up to 3 years) for projects. Bonds are paid only from pledged revenues, system fees, and assessments, not from general taxes. Bond payments go into separate accounts with a first claim for those bondholders, and most bonds must be validated in court. Bonds and the income from them are tax‑exempt (except inheritance and gift taxes) and are legal investments; trustees and, if needed, a court‑appointed receiver protect bondholders. The county may give start‑up loans or aid to get the Authority running.

Approval before utility-related construction

If you plan a project in the service area that needs a water or sewer install, you must notify the Authority first. You must get its approval before work starts. The board reviews complete plans and accepts or denies them within 30 working days. You may need state environmental approval and must file an affidavit of compliance. The board may grant variances.

Up to 2-mill property tax

The county may add up to 2 mills to property taxes to support the Authority. Your extra tax equals your taxable value times the mill rate used. The county must publish a 30-day notice before the levy. If more than 20% or 1,500 voters (whichever is less) protest in writing within 30 days, a special election is required.

Eminent domain for utility projects

For some projects, the Authority can take private land using eminent domain. It issues a certificate and may get immediate possession. Condemnation and payment follow Mississippi state law.

Limits on lawsuits against authority

The Authority can sue and be sued, but it has immunity under Mississippi tort-claims law. Some damage claims must follow special rules, and recovery may be limited.

Sponsors & Cosponsors

Sponsor

Kevin Horan
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 173 • No: 0

Senate vote • 3/26/2026

Passed

Yes: 52 • No: 0

House vote • 3/19/2026