Bill Text: MS HB969 | 2012 | Regular Session | Introduced
Bill Title: Local government officials; State Auditor provide training course to before they enter interest rate agreements.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2012-03-06 - Died In Committee [HB969 Detail]
Download: Mississippi-2012-HB969-Introduced.html
MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Appropriations
By: Representatives Smith (39th), Aldridge
House Bill 969
AN ACT TO REQUIRE THE STATE AUDITOR TO ESTABLISH A TRAINING COURSE FOR THE CHIEF EXECUTIVE OFFICER AND THE CHIEF FINANCIAL OFFICER OF A GOVERNMENTAL ENTITY PROPOSING TO ENTER INTO AN INTEREST RATE AGREEMENT; TO AUTHORIZE THE STATE AUDITOR TO CHARGE A FEE FOR THE TRAINING COURSE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) As used in this section, the following words and phrases shall have the following meanings:
(a) "Chief executive officer" means the chief elected official of the governing authority, or if there is no such elected official, the chair of the governing authority of the governmental entity.
(b) "Chief financial officer" means the financial director or other comparable official of the governmental entity.
(c) "Governing authority" means the legislative body of the governmental entity.
(d) "Governmental entity" means municipality, county, road district, school district, drainage district, utility district, fire district, solid waste authority, regional solid waste authority, housing authority, regional housing authority, county cooperative service district, or other political subdivision or instrumentality of this state.
(e) "Interest rate agreement" means an interest rate swap or exchange agreement, an agreement establishing an interest rate floor or ceiling or both and any other interest rate hedging agreement, including options to enter into or cancel those agreements, as well as the reversal or extension of those agreements.
(2) Any governmental entity proposing to enter into an interest rate agreement is responsible for understanding the risks associated with entering into such an agreement. The chief executive officer and chief financial officer of a governmental entity must obtain a basic understanding of the risks and benefits of entering into an interest rate agreement and may obtain professional advice to help analyze such risks and benefits to the extent deemed necessary by the chief executive officer and chief financial officer. Before submitting a bond financing review form to the State Auditor's Office, the chief executive officer or the chief financial officer of the governmental entity shall be required to attend an educational training course regarding interest rate agreements. The State Auditor shall have the authority to establish those training courses, and is authorized to charge a fee to the participants of those courses, which shall be deposited into the Department of Audit Special Fund. The governmental entities are authorized to pay those fees and travel expenses out of their general funds or any other available funds from which those payments are not prohibited by law.
SECTION 2. This act shall take effect and be in force from and after July 1, 2012.
