Bill Text: MS HB24 | 2020 | Regular Session | Enrolled
Bill Title: Bonds; revise certain provisions regarding sale by political subdivisions and other instrumentalities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2020-07-08 - Approved by Governor [HB24 Detail]
Download: Mississippi-2020-HB24-Enrolled.html
MISSISSIPPI LEGISLATURE
2020 Regular Session
To: Ways and Means
By: Representative Lamar
House Bill 24
(As Sent to Governor)
AN ACT TO AMEND SECTION 31-19-25, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR THE ADVERTISEMENT OF THE SALE AND RECEIPT OF BIDS FOR THE SALE OF BONDS BY THE GOVERNING AUTHORITY OF ANY COUNTY, ROAD DISTRICT, SCHOOL DISTRICT, DRAINAGE DISTRICT OR OTHER POLITICAL SUBDIVISION OR INSTRUMENTALITY OF THIS STATE, TO PROVIDE THAT SEALED BIDS MAY BE SUBMITTED IN ELECTRONIC FORM; TO DELETE THE REQUIREMENT THAT A BANK ISSUING OR CERTIFYING A CASHIER'S CHECK, CERTIFIED CHECK OR EXCHANGE FOR A BIDDER'S GUARANTY MUST BE A BANK LOCATED IN THIS STATE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 31-19-25, Mississippi Code of 1972, is amended as follows:
31-19-25. All bonds issued pursuant to any laws of this state and hereafter sold by the governing authority of or on behalf of any county, road district, school district, drainage district or other political subdivision or instrumentality of this state shall be advertised for sale on sealed bids, which may be submitted in electronic form, or at public auction. Such advertisement shall be published at least two (2) times in a newspaper published in the county in which the political subdivision or instrumentality is situated, and if no newspaper is published in such county, then in a newspaper published in an adjoining county; with respect to a political subdivision or instrumentality which is composed of more than one (1) county, such advertisement shall be published at least two (2) times in a newspaper having a general circulation in each county all or a portion of which is part of the political subdivision or instrumentality. The first publication in each case shall be made at least ten (10) days preceding the date fixed for the reception of bids, and such notice shall give the time and place of sale.
The governing authority may reject any and all bids, whether so stated in the notice of sale or not. If the bonds are not sold pursuant to such advertisement, they may be sold by the governing authority by private sale at any time within sixty (60) days after the date advertised for the reception of bids; but no such private sale shall be made at a price less than the highest bid which shall have been received pursuant to such advertisement. If not so sold at private sale, said bonds shall be readvertised in the manner herein prescribed.
Every bid for the purchase
of any of such bonds shall be accompanied by a wire transfer or a
cashier's check, certified check or exchange, payable to the proper governing
authority, issued or certified by a bank * * * in the amount of not less
than two percent (2%) of the par value of the bonds offered for sale, as a
guaranty that the bidder will carry out his contract and purchase the bonds if
the bid is accepted. If the successful bidder fails to purchase the bonds
pursuant to his bid and contract, the amount of such good faith check shall be
retained by the governing authority and covered into the proper fund as
liquidated damages for such failure.
This section shall not apply to the sale of bonds by the State of Mississippi through the State Bond Commission or the sale of bonds or any other indebtedness incurred by a county in connection with a project as defined under Section 57-75-5(f)(xxviii) or Section 57-75-5(f)(xxix).
A failure to comply with any provision of this section shall not invalidate such bonds, but any member of the governing board, commission or other governing authority who shall willfully violate any of said provisions and shall willfully fail to give the notices herein required shall be liable personally and on his official bond for a penalty in each case of Five Hundred Dollars ($500.00) and, in addition thereto, for all financial loss that may result to the county, municipality, road district, school district, drainage district or other political subdivision or instrumentality of the state or county resulting from such willful failure to comply herewith. Such penalty and damages may be recovered by suit of the Attorney General, a district attorney or of any citizen of such county or other political subdivision in any court of competent jurisdiction, for the use and benefit of the county or other such political subdivision or instrumentality.
SECTION 2. This act shall take effect and be in force from and after its passage.
