Bill Text: MS HB1036 | 2012 | Regular Session | Introduced
Bill Title: Excess county funds; revise manner in which they may be invested.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Failed) 2012-03-06 - Died In Committee [HB1036 Detail]
Download: Mississippi-2012-HB1036-Introduced.html
MISSISSIPPI LEGISLATURE
2012 Regular Session
To: County Affairs
By: Representatives Alday, Burnett, Espy
House Bill 1036
AN ACT TO AMEND SECTION 19-9-29, MISSISSIPPI CODE OF 1972, TO REVISE THE MANNER IN WHICH EXCESS COUNTY FUNDS MAY BE INVESTED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 19-9-29, Mississippi Code of 1972, is amended as follows:
19-9-29. (1) Whenever any county shall have on hand any bond and interest funds, any funds derived from the sale of bonds, special funds, or any other funds in excess of the sums which will be required to meet the current needs and demands of no more than seven (7) business days, the board of supervisors of such county shall invest the excess funds as follows:
(a) The excess funds may be invested for periods of from fourteen (14) days to one (1) year in interest-bearing time certificates of deposit with or through county depositories serving in accordance with Section 27-105-303 which are willing to accept the same, at a negotiated rate of interest. The negotiated rate of interest shall be at the highest rate possible at the date of purchase or investment for such time certificates of deposit or interest-bearing accounts, but such rate of interest shall not be less than the rate of interest paid to the general public on passbook savings. The rate of interest established herein shall be the minimum rate of interest and there shall be no maximum rate of interest.
(b) The * * * excess funds may be invested in interest-bearing time certificates of deposit for the same maturity periods and at the same rate of interest as prescribed in paragraph (a) of this subsection in or through state depositories located in the county which are willing to accept the excess funds, to the same extent as the depositories are eligible for invested state funds.
(c) If the board of supervisors finds that the excess funds should not be invested pursuant to paragraphs (a) and (b) of this subsection * * *, the board of supervisors may:
(i) Invest the excess funds in any bonds or other direct obligations of the United States of America, the State of Mississippi, or any county, municipality or school district of this state, if the county, municipal or school district bonds have been approved by a reputable bond attorney or have been validated by a decree of the chancery court;
(ii) * * * Invest the excess funds, together with any other funds required for current operation, in obligations issued or guaranteed in full as to principal and interest by the United States of America which are subject to a repurchase agreement with a county or state depository;
(iii) * * * Deposit the excess funds in interest-bearing accounts with a county or state depository.
The bonds or obligations purchased may have any maturity date, provided that they shall mature or be redeemable prior to the time that the funds so invested will be needed for expenditure.
(2) Any excess funds invested in certificates of deposit or interest-bearing accounts with county or state depositories under this section shall be secured in the manner required by Section 27-105-315. The proceeds of such certificates of deposit shall be immediately reinvested on the date of maturity in accordance with subsection (1) of this section, unless the board of supervisors determines that such funds are required for current operation.
(3) When bonds or other obligations have been purchased, they may be sold or surrendered for redemption at any time, except certificates of deposit which must mature, by order or resolution of such board of supervisors. The president of the board of supervisors, when authorized by such order or resolution, shall have the power and authority to execute all instruments and take such other action as may be necessary to effectuate the sale or redemption of the bonds or obligations. When the bonds or other obligations are sold or redeemed, the proceeds of the sale, including accrued any interest or investment earnings, shall be paid into the same fund as that from which the investment was made and shall in all respects be dealt with as are other monies in such fund. Except as * * * provided in this section, any interest or investment earnings derived from the investments authorized in this section may, as an alternative, be deposited into the general fund of the county. Any interest derived from the investment of sums received under the terms of the federal State and Local Fiscal Assistance Act of 1972, and any subsequent revisions or reenactments of that act, shall be paid into the same fund as that from which the investment was made. Any interest derived from the investment of school bond funds shall be handled as provided in Section 37-59-43. Any interest derived from investment of other bond proceeds or from investment of any bond and interest fund, bond reserve fund or bond redemption sinking fund shall be deposited either in the same fund from which the investment was made or in the bond and interest fund established for payment of the principal or interest on the bonds. Any interest derived from special purpose funds which are outside the function of general county government shall be paid into that special purpose fund.
SECTION 2. This act shall take effect and be in force from and after July 1, 2012.
