Bill Text: MS SB2265 | 2012 | Regular Session | Introduced
Bill Title: Counties; revise authority to invest excess funds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2012-03-06 - Died In Committee [SB2265 Detail]
Download: Mississippi-2012-SB2265-Introduced.html
MISSISSIPPI LEGISLATURE
2012 Regular Session
To: County Affairs; Finance
By: Senator(s) Jackson (11th)
Senate Bill 2265
AN ACT TO AMEND SECTION 19-9-29, MISSISSIPPI CODE OF 1972, TO ALLOW COUNTIES TO INVEST EXCESS FUNDS IN CERTIFICATES OF DEPOSITS FOR MORE THAN ONE YEAR, TO ALLOW INVESTMENTS IN CERTAIN STATE AND FEDERAL BONDS OR OTHER OBLIGATIONS EVEN WHEN COUNTIES ARE ABLE TO INVEST EXCESS FUNDS IN CERTIFICATES OF DEPOSIT; 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) When any county has 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 that will be required to meet the current needs and demands of no more than seven (7) business days, the board of supervisors of the county shall invest the excess funds in the following manner:
(a) The excess funds may be invested for periods of from fourteen (14) days to five (5) years in interest-bearing time certificates of deposit with or through county depositories serving in accordance with Section 27-105-303 that 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 those time certificates of deposit or interest-bearing accounts, but the 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 in this subsection 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 that are willing to accept the same, to the same extent as the depositories are eligible for invested state funds;
(c) * * * The excess funds may be invested * * * 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; * * *
(d) The * * * excess funds may be invested * * *, 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 that are subject to a repurchase agreement with a county or state depository; or
(e) The * * * excess funds may be deposited * * * in interest-bearing accounts with a county or state depository. * * *
(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 the certificates of deposit shall be immediately reinvested on the date of maturity in accordance with * * * this section, unless the board of supervisors determines that the funds are required for current operation.
(3) When bonds or other obligations have been purchased, the same may be sold or surrendered for redemption at any time * * * by order or resolution of the board of supervisors. The president of the board of supervisors, when authorized by that order or resolution, * * * may execute all instruments and take * * * other necessary action * * * to sell or redeem the bonds or other obligations. When the bonds or other obligations are sold or redeemed, the proceeds of the sale or redemption, including accrued interest on the proceeds, shall be paid into the same fund * * * from which the investment was made and shall in all respects be dealt with as are other monies in the fund. The bonds or obligations purchased may have any maturity date, provided that they shall mature or be redeemable before the time that the funds so invested will be needed for expenditure.
(4) * * * Any interest derived from the investments authorized in this section may * * * be deposited into the general fund of the county, except for the following:
(a) 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 later revisions or reenactments of that act, shall be paid into the same fund as that from which the investment was made;
(b) Any interest derived from the investment of school bond funds shall be handled as provided in Section 37-59-43;
(c) Any interest derived from the investment of other bond proceeds, * * * any bond and interest fund, any bond reserve fund or any 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; and
(d) 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 its passage.
