MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Municipalities

By: Representatives Coleman (65th), Banks, Clarke, Evans, Fleming, Gibbs, Robinson (63rd)

AN ACT TO AMEND SECTIONS 21-39-15, 21-39-17 AND 31-7-57, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A MEMBER OF THE GOVERNING AUTHORITY OF A MUNICIPALITY WILL NOT BE PERSONALLY LIABLE FOR APPROVING A CLAIM WITHOUT KNOWLEDGE THAT THE CLAIM WAS FOR AN UNAUTHORIZED EXPENDITURE OF MUNICIPAL FUNDS, IF THE MEMBER PREVIOUSLY VOTED AGAINST THE APPROPRIATION FROM WHICH THE CLAIM WAS PAID OR WAS ABSENT AT THE TIME OF THE VOTE ON THAT APPROPRIATION; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 21-39-15, Mississippi Code of 1972, is amended as follows:

21-39-15. (1) If any member of the governing authority of a municipality shall knowingly vote for the payment of any claim not authorized by law, he shall be subject to indictment and, upon conviction, be fined by a sum not exceeding double the amount of such unlawful claim or appropriation, or by imprisonment in the county jail for not more than three (3) months, or by both such fine and imprisonment.

(2) Any member of the governing authority of a municipality who voted to approve a claim for expenditure of funds of a particular appropriation from the municipal budget under the provisions of Section 21-39-9, without knowledge that the claim was for an unauthorized expenditure of municipal funds, shall not be personally or individually liable for the amount of the claim or the appropriation if he previously voted against that particular appropriation and had his vote recorded in the official minutes of the governing authority at the time of the vote, or was absent at the time of the vote on that appropriation.

SECTION 2. Section 21-39-17, Mississippi Code of 1972, is amended as follows:

21-39-17. (1) All expenditures of money from the treasury of any municipality for any purpose whatsoever shall be in pursuance of the allowance of a claim as hereinbefore specified in Section 21-39-9, or in pursuance of a specific appropriation made by order, which such appropriation shall be specific as to each separate expenditure insofar as may be practical. If the mayor, clerk, or any other person shall wilfully or feloniously issue, sign or attest any warrant for the expenditure of money from the municipal treasury when such expenditure is not authorized by an order entered on the minutes of such municipality, then such person shall be guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not more than Five Hundred Dollars ($500.00), or by imprisonment in the county jail for not more than six (6) months, or by both such fine and imprisonment, in the discretion of the court. In addition such person shall, upon conviction, automatically be removed from his office.

(2) Any member of the governing authority of a municipality who voted to approve a claim for expenditure of funds of a particular appropriation from the municipal budget under the provisions of Section 21-39-9, without knowledge that the claim was for an unauthorized expenditure of municipal funds, shall not be personally or individually liable for the amount of the claim or the appropriation if he previously voted against that particular appropriation and had his vote recorded in the official minutes of the governing authority at the time of the vote, or was absent at the time of the vote on that appropriation.

SECTION 3. Section 31-7-57, Mississippi Code of 1972, is amended as follows:

31-7-57. (1) Any elected or appointed public officer of an agency or a governing authority, or the executive head, any employee or agent of an agency or governing authority, who appropriates or authorizes the expenditure of any money to an object not authorized by law, shall be liable personally for up to the full amount of the appropriation or expenditure as will fully and completely compensate and repay such public funds for any actual loss caused by such appropriation or expenditure, to be recovered by suit in the name of the governmental entity involved, or in the name of any person who is a taxpayer suing for the use of the governmental entity involved, and such taxpayer shall be liable for costs in such case. In the case of a governing board of an agency or governing authority, only the individual members of the governing board who voted for the appropriation or authorization for expenditure shall be liable under this subsection.

(2) No individual member, officer, employee or agent of any agency or board of a governing authority shall let contracts or purchase commodities or equipment except in the manner provided by law, including the provisions of Section 25-9-120(3), Mississippi Code of 1972, relating to personal and professional service contracts by state agencies; nor shall any such agency or board of a governing authority ratify any such contract or purchase made by any individual member, officer, employee or agent thereof, or pay for the same out of public funds unless such contract or purchase was made in the manner provided by law; provided, however, that any vendor who, in good faith, delivers commodities or printing or performs any services under a contract to or for the agency or governing authority, shall be entitled to recover the fair market value of such commodities, printing or services, notwithstanding some error or failure by the agency or governing authority to follow the law, if the contract was for an object authorized by law and the vendor had no control of, participation in, or actual knowledge of the error or failure by the agency or governing authority.

(3) The individual members, officers, employees or agents of any agency or governing authority as defined in Section 31-7-1 causing any public funds to be expended, any contract made or let, any payment made on any contract or any purchase made, or any payment made, in any manner whatsoever, contrary to or without complying with any statute of the State of Mississippi, regulating or prescribing the manner in which such contracts shall be let, payment on any contract made, purchase made, or any other payment or expenditure made, shall be liable, individually, and upon their official bond, for compensatory damages, in such sum up to the full amount of such contract, purchase, expenditure or payment as will fully and completely compensate and repay such public funds for any actual loss caused by such unlawful expenditure.

(4) In addition to the foregoing provision, for any violation of any statute of the State of Mississippi prescribing the manner in which contracts shall be let, purchases made, expenditure or payment made, any individual member, officer, employee or agent of any agency or governing authority who shall substantially depart from the statutory method of letting contracts, making payments thereon, making purchases or expending public funds shall be liable, individually and on his official bond, for penal damages in such amount as may be assessed by any court of competent jurisdiction, up to three (3) times the amount of the contract, purchase, expenditure or payment. The person so charged may offer mitigating circumstances to be considered by the court in the assessment of any penal damages.

(5) Any sum recovered under the provisions hereof shall be credited to the account from which such unlawful expenditure was made.

(6) Except as otherwise provided in subsection (1) of this section, any individual member of an agency or governing authority as defined in Section 31-7-1 shall not be individually liable under this section if he voted against payment for contracts let or purchases made contrary to law and had his vote recorded in the official minutes of the board or governing authority at the time of such vote, or was absent at the time of such vote.

(7) Notwithstanding any provision of this section to the contrary, any member of the governing authority of a municipality who voted to approve a claim for expenditure of funds of a particular appropriation from the municipal budget under the provisions of Section 21-39-9, without knowledge that the claim was for an unauthorized expenditure of municipal funds, shall not be personally or individually liable for the amount of the claim or the appropriation if he previously voted against that particular appropriation and had his vote recorded in the official minutes of the governing authority at the time of the vote, or was absent at the time of the vote on that appropriation.

SECTION 4. This act shall take effect and be in force from and after July 1, 2000.