House Bill 1577

(As Passed the House)

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 PROVIDES THAT THE TERM OF OFFICE OF A MUNICIPAL DEPOSITOR SHALL BE TWO YEARS; TO CLARIFY THE PUBLICATION AND BIDDING PROCESS FOR ANY QUALIFIED FINANCIAL INSTITUTION THAT SEEKS TO BECOME THE DEPOSITORY FOR COUNTY, MUNICIPAL AND SCHOOL FUNDS; 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. (1) 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, * * *~~but no less frequently than~~ 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~~. The bid notice requirement published by the board of supervisors, as set out under this subsection, shall be accomplished by the board publishing the bid notice in a local newspaper at least once for the initial bidding process. On the same day that the bid notice is published, the board of supervisors shall send the standard bid or proposal form as well as any required attachments to all local financial institutions that are qualified depositories via an electronic version. The electronic version shall provide a financial institution the ability to type in responses for the form and required attachments. The notice shall:

(a) Provide good contact information to qualified financial institutions to assist in the bidding process;

(b) Direct qualified financial institutions to use the standardized bid or proposal form and any required attachments of such form that are provided by the Office of the State Treasurer; and

(c) Provide any qualified financial institution any additional information that would be necessary for such institution to offer a qualified bid. The 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. (2) 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.

(3) 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;

(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.

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, but not limited to, 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 provides that the term of office of a municipal depository shall be two (2) years, is repealed.

SECTION 4. This act shall take effect and be in force from and after July 1, 2024.