Senate Bill 2855

AN ACT TO AMEND SECTIONS 19-11-17 AND 21-35-17, MISSISSIPPI CODE OF 1972, TO EXEMPT UNFUNDED LIABILITY FOR EMPLOYEE RETIREMENT FUNDS FROM THE REQUIREMENT THAT COUNTY AND MUNICIPAL BUDGET ESTIMATES SHALL NOT BE EXCEEDED; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 19-11-17, Mississippi Code of 1972, is amended as follows:

19-11-17. No expenditures shall be made, or liabilities incurred, or warrants issued, in excess of the budget estimates as finally determined by the board of supervisors, or as thereafter revised under the provisions of this chapter. The board of supervisors shall not approve any claim, and the clerk shall not issue any warrant for any expenditures in excess of the budget estimates thus made and approved by the board of supervisors, or as thereafter revised under the provisions of this chapter, except upon the order of a court of competent jurisdiction, or for an emergency as hereinafter provided. Any violation of the provisions of this section shall make the members of the board of supervisors voting for same, and the surety upon their official bonds, liable for the full amount of the claim allowed, the contract entered into, or the public work provided for, and the State Auditor, as the head of the State Department of Audit, shall be authorized to sue for the recovery of the sum or sums so voted. Provided, however, that the term "budget estimates" for purposes of personal liability of the members of the board of supervisors under this section shall not include any unfunded liability for county employee retirement or pension funds.

SECTION 2. Section 21-35-17, Mississippi Code of 1972, is amended as follows:

21-35-17. Expenditures made, liabilities incurred, or warrants issued in excess of any of the budget detailed appropriations as originally and finally determined, or as thereafter revised by transfer as provided by this chapter, shall not be a liability of the municipality, but the official making or incurring such expenditure or issuing such warrant shall be liable therefor personally and upon his official bond. The governing authorities shall not approve any claim and the city clerk shall not issue any warrant for any expenditure in excess of said detailed budget appropriations as finally adopted, or as revised under the provisions of this chapter, except upon an order of a court of competent jurisdiction or for an emergency, as provided in this chapter. Any one or more of the governing authorities, or clerk, approving any claim or issuing any warrant in excess of any such budget appropriation, except as above provided, shall forfeit to the municipality twice the amount of such claim or warrant, which shall be recovered in an action against such member, or members, of the governing authorities, or clerk, or all of them, and the several sureties on their official bonds, and it shall be the duty of the governing authorities of such municipality, or the State Auditor, as the head of the State Department of Audit, or the director thereof, appointed by him, or any taxpayer of such municipality, to bring an action therefor through the city attorney, or any attorney designated and empowered so to do by a court of competent jurisdiction. Provided, however, that the term "budgeted expenditures" for purposes of personal liability of members of the local governing authorities under this section shall not include any unfunded liability for municipal employee retirement or pension funds.

SECTION 3. This act shall take effect and be in force from and after July 1, 2018.