Bill Text: MS HB963 | 2019 | Regular Session | Engrossed


Bill Title: Bonds; revise certain provisions regarding sale by political subdivisions and other instrumentalities.

Spectrum: Bipartisan Bill

Status: (Failed) 2019-03-05 - Died In Committee [HB963 Detail]

Download: Mississippi-2019-HB963-Engrossed.html

MISSISSIPPI LEGISLATURE

2019 Regular Session

To: Ways and Means

By: Representatives Lamar, Dixon

House Bill 963

(As Passed the House)

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 REQUIRE THAT A SUCCESSFUL BIDDER AT SUCH A SALE MUST, NO LATER THAN NOON ON THE NEXT BUSINESS DAY FOLLOWING THE SALE OF THE BONDS, SUBMIT A GOOD FAITH DEPOSIT TO THE PROPER GOVERNING AUTHORITY AS A GUARANTY THAT THE BIDDER WILL CARRY OUT HIS CONTRACT TO PURCHASE THE BONDS; TO PROVIDE THAT A GOOD FAITH DEPOSIT MAY BE SUBMITTED BY WIRE TRANSFER; TO PROVIDE THAT IF A SUCCESSFUL BIDDER FAILS TO TIMELY SUBMIT A GOOD FAITH DEPOSIT, THE GOVERNING AUTHORITY MAY SELL THE BONDS BY PRIVATE SALE AT ANY TIME WITHIN SIXTY DAYS AFTER THE DATE ADVERTISED FOR THE RECEPTION OF BIDS, BUT THAT NO SUCH PRIVATE SALE MAY BE MADE AT A PRICE LESS THAN THE NEXT HIGHEST BID THAT WAS RECEIVED PURSUANT TO SUCH ADVERTISEMENT; 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 The successful bidder shall * * *be accompanied by, no later than noon on the next business day following the sale, submit by wire transfer or a cashier's check, certified check or exchange, payable to the proper governing authority, issued or certified by a bank located in this state, a good faith deposit 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 successful bidder will carry out his contract and purchase the bonds * * *if the bid is acceptedIf the successful bidder fails to timely submit its good faith deposit, the bonds 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 next 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.  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 July 1, 2019.


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