MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Banks and Banking

By: Representative Williams

AN ACT TO CREATE A NEW SECTION TO BE CODIFIED AS SECTION 27-105-373, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IN THE EVENT ANY MEMBER OF A COUNTY BOARD OF SUPERVISORS, A COMMISSION OR BOARD OF TRUSTEES OF ANY COUNTY OR MUNICIPAL HOSPITAL, OR A BOARD OF MAYOR AND ALDERMAN OF ANY MUNICIPALITY HAS A DIRECT OR INDIRECT 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 THE BODY RELATING TO THE SELECTION OF A DEPOSITORY; AND FOR RELATED PURPOSES. 

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

SECTION 1. The following shall be codified as Section 27-105-373, Mississippi Code of 1972:

27-105-373. Notwithstanding the provisions of this article, 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 a county or municipality of the State of Mississippi or to any community hospital, as defined in Section 41-13-10, to act as a depository or perform related depository or banking functions for the governmental entity and the bid or offer, if accepted, would result in a contract in which a member of the governing body of the 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 the governmental entity shall submit the matter to the State Treasurer, who may solicit bids, select a depository or depositories, make all decisions and take any action within the authority of the governing body of the governmental entity relating to the selection of a depository or depositories or related depository or banking functions including, but not limited to, signing a contract for and on behalf of the governmental entity, which contract shall be binding on the governmental entity as if the governing body of the governmental entity had taken the action and spread the same upon its minutes.

SECTION 2. This act shall take effect and be in force from and after its passage.