HB 24 — Bonds; revise certain provisions regarding sale by political subdivisions and other instrumentalities.

HB 24 (As PassedSent theto House)Governor) - 2020 Regular Session MISSISSIPPI LEGISLATURE Regular Session To:

Representative Lamar House Bill 24 (As PassedSent theto House)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 REQUIREDELETE THE REQUIREMENT THAT A SUCCESSFULBANK BIDDERISSUING ATOR SUCHCERTIFYING A SALECASHIER'S MUST,CHECK, NOCERTIFIED LATERCHECK THANOR NOONEXCHANGE ONFOR THE NEXT BUSINESS DAY FOLLOWING THE SALE OF THE BONDS, SUBMIT A GOODBIDDER'S FAITHGUARANTY DEPOSITMUST TOBE THE PROPER GOVERNING AUTHORITY AS A GUARANTYBANK THATLOCATED THEIN BIDDERTHIS WILLSTATE; CARRY OUT HIS CONTRACT TO PURCHASE THE BONDS;

TOAND PROVIDEFOR THATRELATED APURPOSES. GOOD FAITH DEPOSIT MAY BE SUBMITTED BY WIRE TRANSFER;

TO     PROVIDEBE THATIT IFENACTED 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 DATELEGISLATURE ADVERTISEDOF FOR THE RECEPTIONSTATE OF BIDS,MISSISSIPPI: 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:

      * * *EveryEvery bid for the purchase of any of such bonds Theshall successfulbe bidder shall * * *be accompanied by, no later than noon on the next business day following the sale, submit by a wire transfer or a cashier's check, certified check or exchange, payable to the proper governing authority, issued or certified by a bankbank * * *located located in this state,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 * * *ifbonds if the bid is accepted.  If the successful bidder fails to timelypurchase submitthe itsbonds goodpursuant faithto deposit,his bid and contract, the bondsamount mayof such good faith check shall be soldretained by the governing authority byand privatecovered into the proper fund as liquidated damages for such failure.       This section shall not apply to the sale atof anybonds timeby withinthe sixtyState (60)of daysMississippi afterthrough the dateState advertisedBond forCommission or the receptionsale of bids;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).

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).

     SECTION 2.  This act shall take effect and be in force from and after Julyits 1,passage. 2020.