Senate Bill 2118

AN ACT TO AMEND SECTION 21-15-6, MISSISSIPPI CODE OF 1972, TO REQUIRE ERRORS AND OMISSION COVERAGE FOR CITY ATTORNEYS; TO AMEND SECTIONS 21-15-25 AND 21-15-27, MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 21-15-6, Mississippi Code of 1972, is amended as follows:

21-15-6. (1) Municipalities are hereby authorized, in the discretion of the governing authority, to purchase errors and omissions insurance for municipal officials and municipal employees.

(2) Municipalities shall require a person or firm hired as city attorney pursuant to Section 21-15-25 or 21-15-27 to be covered by errors and omissions insurance, and may purchase this insurance under subsection (1) of this section for a city attorney who is a municipal employee. A municipality may not purchase errors and omissions insurance for an attorney who is not a bona fide municipal employee.

SECTION 2. Section 21-15-25, Mississippi Code of 1972, is amended as follows:

21-15-25. The governing authority may annually appoint an attorney-at-law for the municipality, prescribe his duties and fix his compensation, * * * or * * * counsel may be employed to represent the interest of the municipality, should the occasion require, or both. For services and duties which the regular city attorney is not required to perform as a result of his employment as such, and which are not covered by the regular compensation paid him, the municipal attorney may be employed and compensated additionally. In cases where an attorney, whether * * * the regular municipal attorney or another, shall be employed in the matter of issuing or refunding of bonds and the drafting of all orders and resolutions in connection therewith, the governing authority shall have the power to pay reasonable compensation to such attorney, but in no instance shall the compensation so paid exceed one percent (1%) of the bonds issued or refunded; however, where the regular contract of employment and compensation paid to the municipal attorney covers and includes services in connection with the issuing or refunding of bonds, then the regular municipal attorney shall not be paid additional compensation for such services.

Should the services and duties required of a regular municipal attorney at any time during his term of office become greater than that anticipated by the governing authority at the time of his appointment, the governing authority, by unanimous vote, and on proper finding, may increase the compensation of the attorney for the remaining portion of his term in such amount as the governing board may find and adjudge to be fair and reasonable to compensate the attorney for his excessive and unanticipated services and duties.

SECTION 3. Section 21-15-27, Mississippi Code of 1972, is amended as follows:

21-15-27. The municipal authority of any city or town, * * * in addition to the authority now conferred * * * by Section 21-15-25, may in its discretion employ a firm of attorneys to represent the municipality as the regular attorneys on the same terms, conditions and compensation as is authorized for employment of an individual attorney * * *. However, there shall not be an attorney and a firm of attorneys employed at the same time as the regular attorney for a municipality.

SECTION 4. This act shall take effect and be in force from and after October 1, 2012.