Mississippi Senate Bill SB2501

Mississippi 2024 Regular Session

• Introduced: 2/16/24
• Refer: 2/16/24
• Failed: 3/5/24

Caption

Municipalities; repeal outdated section on municipal depositories.

Impact

The repeal of this section is anticipated to impact state laws concerning the governance of municipal depositories. By eliminating the two-year term requirement, local governments may choose to extend the terms as they see fit, thereby allowing for longer relationships with their chosen depositories. This change may foster stability in municipal financial management, as municipalities can retain preferred financial institutions without the need for frequent reevaluation or reappointment.

Summary

Senate Bill 2501 proposes the repeal of Section 27-105-363 of the Mississippi Code of 1972, which states that the term of office for a municipal depository is set to two years. This legislative measure seeks to remove the specified duration for the term, thus potentially altering how municipalities can appoint and manage their depositories. The intent of the bill is to provide municipalities with increased flexibility in determining the terms of their financial institutions without being constrained by an established time frame.

Contention

While the discussions surrounding SB2501 may not have highlighted significant points of contention, the nature of the changes proposed could raise discussions on local governance and accountability. Some stakeholders may argue that longer terms could lead to reduced oversight and increased risks if a depository is not performing effectively. Conversely, proponents could highlight the benefits of establishing long-term partnerships that could lead to better financial terms and conditions for the local governments involved.