Mississippi House Bill HB153

Mississippi 2023 Regular Session

• Introduced: 1/4/23
• Refer: 1/4/23
• Failed: 1/31/23

Caption

Public employees; exempt from bad check fees caused by error in direct deposit made by their employer or retirement system.

Impact

If passed, HB153 would amend existing sections of the Mississippi Code to align with its provisions, particularly regarding fees assessed by financial institutions for insufficient funds. Specifically, it would prevent such institutions from charging processing fees to public employees under the defined circumstances of deposit errors. This change would provide a level of financial protection for public employees, encouraging prompt and accurate handling of payroll and retirement related disbursements.

Summary

House Bill 153 aims to exempt active and retired public employees in Mississippi, particularly those receiving compensation or retirement allowances via direct deposit, from incurring bad check fees. This exemption is only applicable if their accounts are overdrawn due to errors made by their employers or their respective retirement systems, namely the Mississippi Public Employees' Retirement System (PERS) and the Mississippi Highway Safety Patrol Retirement System (MHSPRS). The bill seeks to alleviate the financial burden on public employees when deposit errors occur, ensuring they are not penalized for circumstances beyond their control.

Contention

The introduction of HB153 has potential implications for the discussion surrounding banking practices and consumer protections in Mississippi. Some legislators may express concern about how such exemptions could impact banks and their ability to enforce financial policies consistently. Additionally, questions may arise regarding the accountability of employers and pension systems in managing direct deposits effectively. Balancing the interests of public employees with the operational requirements of financial institutions will likely be a key point of contention in legislative deliberations.