MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Judiciary A

By: Representative Williams

AN ACT TO AMEND SECTION 25-4-105, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IN THE EVENT ANY MEMBER OF A GOVERNMENTAL ENTITY HAS A CONFLICT OF INTEREST REGARDING A DECISION OF THAT BODY REGARDING THE SELECTION OF A DEPOSITORY, THE STATE TREASURER SHALL BE DESIGNATED TO MAKE ALL DECISIONS AND TAKE ANY ACTION WITHIN THE AUTHORITY OF SUCH BODY RELATING TO THE SELECTION OF A DEPOSITORY; TO PROVIDE THAT IN THE EVENT ANY MEMBER OF A GOVERNMENTAL ENTITY HAS A CONFLICT OF INTEREST REGARDING A DECISION OF THAT BODY REGARDING THE SALE OF BONDS OR THE SELECTION OF A TRUSTEE OR A PAYING AGENT ON A BOND, THE STATE BOND COMMISSION SHALL BE DESIGNATED TO MAKE ALL DECISIONS AND TAKE ANY ACTION WITHIN THE AUTHORITY OF SAID BODY RELATING TO SUCH SELECTION; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 25-4-105, Mississippi Code of 1972, is amended as follows:

25-4-105. (1) No public servant shall use his official position to obtain pecuniary benefit for himself other than that compensation provided for by law, or to obtain pecuniary benefit for any relative or any business with which he is associated.

(2) No public servant shall be interested, directly or indirectly, during the term for which he shall have been chosen, or within one (1) year after the expiration of such term, in any contract with the state, or any district, county, city or town thereof, authorized by any law passed or order made by any board of which he may be or may have been a member. Notwithstanding the provisions of this subsection, in the event a bank or a financial institution or any affiliated or subsidiary corporation of a bank or a financial institution submits a bid or offer to any district, county or municipality of the State of Mississippi, to act as a depository or perform related depository or banking functions for such governmental entity and such bid or offer, if accepted, would result in a contract in which a member of the governing body of such governmental entity would have a direct or indirect interest, the governing body should not open or consider any bids or offers received. The governing body of such governmental entity shall submit the matter to the State Treasurer, who shall have the authority to solicit bids, select a depository or depositories, make all decisions and take any action within the authority of the governing body of such governmental entity relating to the selection of a depository or depositories or related depository or banking functions including, but not limited to, the signing of a contract for and on behalf of such governmental entity, which contract shall be binding on such governmental entity as if the governing body of such governmental entity had taken such action and spread the same upon its minutes. Notwithstanding the provisions of this subsection, in the event a bank or a financial institution or any affiliated or subsidiary corporation of a bank or a financial institution submits a bid or offer to any district, county or municipality of the State of Mississippi to purchase bonds or serve as a financial advisor or as an escrow agent, fiscal agent, depository agent, paying agent or related agent function or as bond registrar or trustee on any bond of or issued by such governmental entity and such bid or offer, if accepted, would result in a contract in which a member of the governing body of such governmental entity would have a direct or indirect interest, the governing body should not open or consider any bid or offer received. The governing body of such governmental entity shall submit the matter to the State Bond Commission which shall have the authority to solicit bids or offers, select a financial advisor or an escrow agent, fiscal agent, depository agent, paying agent or related agent function or a bond registrar or trustee, sell the bonds, make all decisions and take any action within the authority of the governing body of such governmental entity relating to the selection of a financial advisor or an escrow agent, fiscal agent, depository agent, paying agent or related agent function or a bond registrar or trustee for such bonds or the sale and/or purchase of such bonds including, but not limited to, the signing of a contract for and on behalf of such governmental entity, which contract shall be binding on such governmental entity as if the governing body of such governmental entity had taken such action and spread the same upon its minutes.

(3) No public servant shall:

(a) Be a contractor, subcontractor or vendor with the governmental entity of which he is a member, officer, employee or agent, other than in his contract of employment, or have a material financial interest in any business which is a contractor, subcontractor or vendor with the governmental entity of which he is a member, officer, employee or agent.

(b) Be a purchaser, direct or indirect, at any sale made by him in his official capacity or by the governmental entity of which he is an officer or employee, except in respect of the sale of goods or services when provided as public utilities or offered to the general public on a uniform price schedule.

(c) Be a purchaser, direct or indirect, of any claim, certificate, warrant or other security issued by or to be paid out of the treasury of the governmental entity of which he is an officer or employee.

(d) Perform any service for any compensation during his term of office or employment by which he attempts to influence a decision of the authority of the governmental entity of which he is a member.

(e) Perform any service for any compensation for any person or business after termination of his office or employment in relation to any case, decision, proceeding or application with respect to which he was directly concerned or in which he personally participated during the period of his service or employment.

(4) Notwithstanding the provisions of subsection (3) of this section, a public servant or his relative:

(a) May be an officer employee or stockholder of banks or savings and loan associations or other such financial institutions or any affiliated or subsidiary corporation of a bank or other such financial institutions bidding for bonds, notes or other evidences of debt or for the privilege of keeping as depositories the public funds of a governmental entity thereof or for the privilege of providing related depository or banking functions or for the privilege of serving as escrow agent, fiscal agent, depository agent, paying agent or related agent functions or for the privilege of serving as bond registrar, trustee, financial advisor or the editor or employee of any newspaper in which legal notices are required to be published in respect to the publication of said legal notices.

(b) May be a contractor or vendor with any authority of the governmental entity other than the authority of the governmental entity of which he is a member, officer, employee or agent or have a material financial interest in a business which is a contractor or vendor with any authority of the governmental entity other than the authority of the governmental entity of which he is a member, officer, employee or agent where such contract is let to the lowest and best bidder after competitive bidding and three (3) or more legitimate bids are received or where the goods or services involved are reasonably available from two (2) or fewer commercial sources, provided such transactions comply with the public purchases laws.

(c) May be a subcontractor with any authority of the governmental entity other than the authority of the governmental entity of which he is a member, officer, employee or agent or have a material financial interest in a business which is a subcontractor with any authority of the governmental entity other than the authority of the governmental entity of which he is a member, officer, employee or agent where the primary contract is let to the lowest and best bidder after competitive bidding or where such goods or services involved are reasonably available from two (2) or fewer commercial sources, provided such transactions comply with the public purchases laws.

(d) May be a contractor, subcontractor or vendor with any authority of the governmental entity of which he is a member, officer, employee or agent or have a material financial interest in a business which is a contractor, subcontractor or vendor with any authority of the governmental entity of which he is a member, officer, employee or agent: (i) where such goods or services involved are reasonably available from two (2) or fewer commercial sources, provided such transactions comply with the public purchases laws; or (ii) where the contractual relationship involves the further research, development, testing, promotion or merchandising of an intellectual property created by the public servant.

(e) May purchase securities issued by the governmental entity of which he is an officer or employee if such securities are offered to the general public and are purchased at the same price as such securities are offered to the general public.

(f) May have an interest less than a material financial interest in a business which is a contractor, subcontractor or vendor with any governmental entity.

(g) May contract with the Mississippi Veteran's Home Purchase Board, Mississippi Housing Finance Corporation, or any other state loan program, for the purpose of securing a loan; however, public servants shall not receive favored treatment.

(h) May be employed by or receive compensation from an authority of the governmental entity other than the authority of the governmental entity of which the public servant is an officer or employee.

(i) If a member of the Legislature or other public servant employed on less than a full-time basis, may represent a person or organization for compensation before an authority of the governmental entity other than an authority of the governmental entity of which he is an officer or employee.

(5) No person may intentionally use or disclose information gained in the course of or by reason of his official position or employment as a public servant in any way that could result in pecuniary benefit for himself, any relative, or any other person, if the information has not been communicated to the public or is not public information.

(6) Any contract made in violation of this section may be declared void by the governing body of the contracting or selling authority of the governmental subdivision or a court of competent jurisdiction and the contractor or subcontractor shall retain or receive only the reasonable value, with no increment for profit or commission, of the property or the services furnished prior to the date of receiving notice that the contract has been voided.

(7) Any person violating the provisions of this section shall be punished as provided for in Sections 25-4-109 and 25-4-111.

SECTION 2. 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 3. 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.