Bill Text: MS HB1577 | 2024 | Regular Session | Enrolled
Bill Title: Bidding terms for public depositories for counties and municipalities; make compatible.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2024-04-25 - Approved by Governor [HB1577 Detail]
Download: Mississippi-2024-HB1577-Enrolled.html
MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Banking and Financial Services
By: Representative Aguirre
House Bill 1577
(As Sent to Governor)
AN ACT TO AMEND SECTIONS 27-105-305 AND 27-105-353, MISSISSIPPI CODE OF 1972, TO PROVIDE NECESSARY UPDATES AND TO HARMONIZE BIDDING TERMS FOR PUBLIC DEPOSITS BETWEEN COUNTIES AND MUNICIPALITIES; TO REPEAL SECTION 27-105-363, MISSISSIPPI CODE OF 1972, WHICH ALLOWS FOR COUNTIES AND MUNICIPALITIES TO FOLLOW AN IDENTICAL PROCESS FOR SELECTING PUBLIC DEPOSITORIES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-105-305, Mississippi Code of 1972, is amended as follows:
27-105-305. The board of supervisors
at the regular December 1997 meeting, and annually thereafter or, in the discretion
of the board of supervisors, thereafter at such other interval of time as determined
by the board of supervisors, * * * up to every
four (4) years, shall give notice to all financial institutions in its county whose
accounts are insured by the Federal Deposit Insurance Corporation (or any successor
thereto), by publication, that bids will be received from financial institutions
at the following January meeting, or some subsequent meeting, for the privilege
of keeping the county funds, or any part thereof, which notice shall refer by name
to this article and it shall not be necessary to incorporate in the notice the provisions
of this article; and at the January meeting, or a subsequent meeting as may be designated
in the notice, as the case may be, the board of supervisors shall receive such bids
or proposals as the financial institutions may make for the privilege of keeping
the county funds, or any part thereof. The bids or proposals shall designate the
kind of security as authorized by law which the financial institutions propose to
give as security for funds, and the board shall cause the county funds and all other
funds in the hands of the county treasurer to be deposited in the qualified financial
institution or qualified institutions proposing the best terms, taking into consideration
all material aspects of the proposal, including, but not limited to, net earnings,
account costs, costs of transfer of accounts from existing depositories, banking
services provided and other service considerations, and meeting the requirements
provided in Section 27-105-315, having in view the safety of such funds. However,
if a bank submits a bid or offer to the board of supervisors to act as a depository
for the county and the bid or offer, if accepted, would result in a contract in
which a member of the board of supervisors would have a direct or indirect interest,
the board of supervisors may elect to not open or consider any bids received and
submit the matter to the State Treasurer. Upon receipt of the bids received from
the board of supervisors, the State Treasurer shall open and consider the bids received,
select a depository or depositories, make all decisions and take any action within
the authority of the board of supervisors under this section relating to the selection
of a depository or depositories, including:
(a) The selecting and opening of accounts;
(b) Approval of securities;
(c) The transfer and deposit of funds between depositories; and
(d) All other related functions.
If the board of supervisors elects to open and consider the bids or offers, it shall not open or consider any bid which, if accepted, would result in a contract in which a member of the board of supervisors would have a direct or indirect interest. The board is prohibited from designating a depository during the last year of a four-year term.
SECTION 2. Section 27-105-353, Mississippi Code of 1972, is amended as follows:
27-105-353. The board of mayor and aldermen or other municipal authorities of each and every city, town or village in the state are required to select a depository in the manner provided by law for the selection of county depositories, including the same intervals of time as counties for receiving bids from financial institutions for the privilege of holding public funds. Before being selected, a depository must be certified by the State Treasurer as meeting the capital ratio requirement specified in Section 27-105-5 or 27-105-6. An institution shall not be a qualified depository and shall not receive any municipal funds unless its ratio has been certified annually by the State Treasurer as meeting the prescribed requirement. Notwithstanding the foregoing, any financial institution whether or not meeting the prescribed ratio requirement whose accounts are insured by the Federal Deposit Insurance Corporation or any successors to that insurance corporation may receive municipal funds in an amount not exceeding the amount that is insured by that insurance corporation and may qualify as a municipal depository to the extent of that insurance as prescribed in Section 27-105-315.
SECTION 3. Section 27-105-363, Mississippi Code of 1972, which allows for counties and municipalities to follow an identical process for selecting public depositories, is hereby repealed.
SECTION 4. This act shall take effect and be in force from and after its passage.
