Senate Bill 2338

AN ACT TO AMEND SECTION 21-27-7, MISSISSIPPI CODE OF 1972, TO ENSURE JUST, REASONABLE AND TRANSPARENT BILLING FOR MUNICIPAL WATER, WASTEWATER, AND SEWER SERVICES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 21-27-7, Mississippi Code of 1972, is amended as follows:

21-27-7. (1) (a) The governing authorities of municipalities shall have the power to erect, purchase, maintain and operate waterworks, and to regulate the same, and to prescribe the rates at which water shall be supplied to the inhabitants * * *~~, and~~. Except as provided in Section 21-27-77, the rates at which water, wastewater, and sewer services shall be supplied shall be just and reasonable, and rates may not be unreasonably preferential, prejudicial or discriminatory but shall be sufficient, equitable and consistent in application to each class of inhabitants.

(b) Rates shall be calculated in equitable proportion to the services and benefits rendered. Except as provided in Section 21-27-77, the calculation of an inhabitant's bill shall be limited to the actual amount of usage, plus those fees reasonable and necessary for the cost of capital expenses, system operation and maintenance, and debt service.

(c) Notice of any change in the rate at which services are supplied shall be posted on all bills sent to inhabitants at least one (1) month prior to the effective date of the rate change. Notice shall also be posted to the municipality's online webpage or bill payment platform, if the municipality has an online webpage or bill payment platform.

(d) Nothing in this statute shall be construed as prohibiting an inhabitant or governing authority of any municipality from applying for and receiving any federally or privately subsidized payment assistance, nor shall this statute be construed as prohibiting a municipality from establishing or administering a program under Section 21-27-77.

(2) The governing authorities of municipalities shall have the power to acquire by purchase, donation or condemnation, in the name of the municipality, suitable grounds, within or without the corporate limits, upon which to erect waterworks, and also the right-of-way to and from such works and the right-of-way for laying water pipes within the corporate limits, and from such waterworks to the municipality, and to extend such right-of-way from time to time. The governing authorities shall have the power to contract with any person for the maintenance and operation of waterworks. Said authorities shall have the power to contract with any person for the erection and maintenance of waterworks for a term not exceeding twenty-five (25) years, fixing water rates in the contract subject to municipal regulations. A contract for the erection or purchase of waterworks shall not, however, be entered into until submitted to a vote of the qualified electors and approved by a majority of those voting. A contract for maintenance under which the person who will perform such maintenance is wholly or partially responsible for fixing water rates shall not be entered into until submitted to a vote of the qualified electors and approved by a majority of those voting. It shall be unlawful for any municipally owned waterworks to supply water free of charge, or in any amount less than the fixed charges, to any person, firm or corporation, except as is expressly authorized by law.

SECTION 2. Section 21-27-189, Mississippi Code of 1972, is amended as follows:

21-27-189. A municipality, as defined in Section 21-27-163, is authorized and empowered, in the discretion of its governmental authorities, to exercise the following powers and authority within the area and territories comprising the metropolitan area of which it is a part:

(a) To operate and manage sewerage systems, sewage treatment facilities and sewage disposal systems and related facilities serving the metropolitan area in conformance with the metropolitan area plan.

(b) To construct, operate and maintain sewerage systems, sewage treatment facilities and sewage disposal systems in the manner and to the extent required by the metropolitan area plan.

(d) To establish and maintain rates and charges in equitable proportion for the use of the services and benefits rendered of such sewerage systems, sewage treatment facilities and sewage disposal systems within the metropolitan area, and from time to time to adjust such rates, to the end that the revenues therefrom will be sufficient at all times to pay the expenses of operating and maintaining such works, facilities and systems and all of the municipality's obligations under any contract or bond resolution with respect thereto. The rates shall be just and reasonable, and rates may not be unreasonably preferential, prejudicial or discriminatory but shall be sufficient, equitable and consistent in application to each class of inhabitants.

(e) To incur short and long-term indebtedness under the provisions of Sections 21-27-161 through 21-27-191 or other applicable statutes.

(f) To adopt rules and regulations necessary to carry out the implementation of the metropolitan area plan and to assure the payment of each participating person or public agency of its proportionate share of treatment costs.

(g) To refuse to receive any waste from any public agency or subdivision thereof or any other person which does not comply with the provisions of the metropolitan area plan applicable to the particular area within which such public agency or subdivision thereof or any other person is located.

(h) To accept industrial waste for treatment and to require the pretreatment of same when within the opinion of the municipality such pretreatment is necessary.

(i) To adopt all necessary and reasonable rules and regulations to carry out and effectuate any waste treatment plan adopted for the metropolitan area.

(j) To require by ordinance or by contract with a public agency or other person that all waste within the metropolitan area be disposed of through sewerage systems, treatment facilities and sewage disposal systems which comprise a part of the metropolitan area plan, to the extent that the same may be available, but no public agency shall be precluded from constructing, operating and maintaining its own sewerage system if the same be a part of the metropolitan area plan.

SECTION 3. This act shall take effect and be in force from and after July 1, 2023.