Bill Text: MS HB1114 | 2013 | Regular Session | Introduced
Bill Title: Excess county funds; revise manner in which they may be invested.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-02-05 - Died In Committee [HB1114 Detail]
Download: Mississippi-2013-HB1114-Introduced.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: County Affairs
By: Representative Alday
House Bill 1114
AN ACT TO AMEND SECTION 19-9-29, MISSISSIPPI CODE OF 1972, TO REVISE THE MANNER IN WHICH EXCESS COUNTY FUNDS MAY BE INVESTED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 19-9-29, Mississippi Code of 1972, is amended as follows:
19-9-29. (1)
Whenever any county shall have on hand any bond and interest funds, any funds
derived from the sale of bonds, special funds, or any other funds in excess of
the sums which will be required to meet the current needs and demands of no
more than seven (7) business days, the board of supervisors of such county
shall invest * * * the
excess funds * * * as follows:
(a) * * *
The excess funds * * *
may be invested for periods
of from fourteen (14) days to one (1) year in interest-bearing time
certificates of deposit with or through county depositories serving in
accordance with Section 27-105-303 which are willing to accept the same, at a
negotiated rate of interest. The negotiated rate of interest shall be at the
highest rate possible at the date of purchase or investment for such time
certificates of deposit or interest-bearing accounts, but such rate of interest
shall not be less than the rate of interest paid to the general public on
passbook savings. The rate of interest established herein shall be the minimum
rate of interest and there shall be no maximum rate of interest.
(b) The * * *
excess
funds * * * may
be invested in interest-bearing time certificates of deposit for the same
maturity periods and at the same rate of interest as prescribed in paragraph
(a) of this subsection in or through state depositories located in * * *
the county which are
willing to accept the * * * excess
funds, to the same extent as * * * the depositories are eligible for
invested state funds.
(c) * * *
If the
board of supervisors finds that * * * the excess funds * * *
should not be
invested pursuant to paragraphs (a) and (b) of this subsection * * *, the board of supervisors may:
(i) Invest * * *
the excess funds in any
bonds or other direct obligations of the United States of America, the State of
Mississippi, or any county, municipality or school district of this state, if * * *
the county, municipal
or school district bonds have been approved by a reputable bond attorney or
have been validated by a decree of the chancery court * * *;
(ii) Invest * * * the
excess funds, together with any other funds required for current operation,
in obligations issued or guaranteed in full as to principal and interest by the
United States of America which are subject to a repurchase agreement with a
county or state depository * * *. Deposit * * * the excess funds in interest-bearing
accounts with a county or state depository.
* * * The bonds or obligations purchased
may have any maturity date, provided that they shall mature or be redeemable
prior to the time that the funds so invested will be needed for expenditure.
(2) Any excess funds
invested in certificates of deposit or interest-bearing accounts with county or
state depositories under this section shall be secured in the manner required
by Section 27-105-315. The proceeds of such certificates of deposit shall be
immediately reinvested on the date of maturity in accordance with * * *
subsection
(1) of this section, unless the board of supervisors determines that such
funds are required for current operation.
(3) When bonds or
other obligations have been purchased, * * * they may be sold or surrendered
for redemption at any time, except certificates of deposit which must mature,
by order or resolution of such board of supervisors. The president of the
board of supervisors, when authorized by such order or resolution, shall have
the power and authority to execute all instruments and take such other action
as may be necessary to effectuate the sale or redemption * * * of the bonds or obligations.
When * * * the
bonds or other obligations are sold or redeemed, the proceeds * * *
of the sale,
including accrued interest * * * or investment earnings, shall be
paid into the same fund as that from which the investment was made and shall in
all respects be dealt with as are other monies in such fund. Except as * * *
provided in this
section, any interest or investment earnings derived from the
investments authorized in this section may, as an alternative, be deposited
into the general fund of the county. Any interest derived from the investment
of sums received under the terms of the federal State and Local Fiscal
Assistance Act of 1972, and any subsequent revisions or reenactments of that
act, shall be paid into the same fund as that from which the investment was
made. Any interest derived from the investment of school bond funds shall be
handled as provided in Section 37-59-43. Any interest derived from investment
of other bond proceeds or from investment of any bond and interest fund, bond
reserve fund or bond redemption sinking fund shall be deposited either in the
same fund from which the investment was made or in the bond and interest fund
established for payment of the principal or interest on the bonds. Any
interest derived from special purpose funds which are outside the function of
general county government shall be paid into that special purpose fund.
SECTION 2. This act shall take effect and be in force from and after July 1, 2013.
