MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Education

By: Senator(s) Ferris

AN ACT TO EMPOWER LOCAL SCHOOL BOARDS TO ENTER INTO CONTRACTS FOR THE INVESTMENT AND MANAGEMENT OF SCHOOL DISTRICT FUNDS, SUBJECT TO CERTAIN CONDITIONS; AND FOR RELATED PURPOSES. 

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

SECTION 1. The school board of any school district is empowered, in accordance with its authority to invest certain district funds pursuant to Sections 29-3-113, 31-19-5 and 37-59-43, Mississippi Code of 1972, and subject to a plan or strategy of investment duly approved and adopted by the school board, to enter into contracts and agreements for the investment and management of said funds upon such terms and conditions deemed by the school board in the best interest of the district; provided, however, investments of said funds pursuant to such contract or agreement shall comply with any and all restrictions and limitations on the kinds and types of investments permitted under Sections 29-3-113, 31-19-5 and 37-59-43, Mississippi Code of 1972. The State Treasurer is hereby authorized and directed to promulgate regulations regarding the kinds and types of investments permitted for school district funds under Sections 29-3-113, 31-19-5 and 37-59-43, Mississippi Code of 1972. Such regulations shall include a listing of investments deemed by the State Treasurer to be permitted for the investment of school district funds, and said list of permitted investments shall be updated no less often than once during each fiscal year. In response to a request by the local school board, local superintendent, the Secretary of State or any person or entity under contract for the management of the investment of school district funds, the State Treasurer is hereby authorized to issue advisory opinions regarding the compliance of any investment or proposed investment of school district funds with Sections 29-3-113, 31-19-5 and 37-59-43, Mississippi Code of 1972. Any such contract or agreement shall provide that the person and/or entity contracting with the school district for the investment and management of school funds shall indemnify and hold harmless the school district and the members of the school board, individually and collectively, for damages, losses and expenses arising out of the failure by such person and/or entity to invest and manage said funds in accordance with applicable laws and regulations, the school board's plan or strategy of investment and the contract or agreement; and may provide, in the discretion of the school board, for the payment of compensation or fees, including brokerage fees, to such person and/or entity for services rendered in connection with the investment and management of said funds.

SECTION 2. This act shall take effect and be in force from and after July 1, 1998.