Homeowner associations that provide water to its residents, certain; prohibit PSC from providing certain regulation of.
The proposed amendments to the Mississippi Code would create a new section that mandates municipalities to sell and convey water supply assets to homeowners associations that wish to provide water services. This could include essential infrastructure such as water mains and service lines, with the homeowners association required to pay fair market value established through independent appraisals. This provision aims to ease the transition for communities electing to take command of their water services while ensuring continued operation and safety of these systems under state oversight.
House Bill 697 aims to relieve eligible homeowners associations from state regulation by the Public Service Commission (PSC) concerning water distribution when they provide water solely to their residents. This legislative change is significant as it seeks to facilitate homeowners associations in managing their own water services, especially in areas that might have been previously subject to regulations tied to municipalities, which may hold a Certificate of Public Convenience and Necessity. By defining 'eligible municipalities' and 'eligible homeowners associations,' the bill outlines the operational framework for water supply management within these communities.
Despite the potential benefits, the bill raises discussions around the regulation of water supply by municipalities versus self-management by homeowners associations. Critics may argue that transferring water resource management to associations could lead to inconsistent access to water services or uneven quality, especially if the homeowners associations are ill-equipped to manage such systems adequately. Conversely, proponents assert that local control over water systems could foster a more efficient, community-focused approach to water distribution.
The bill further clarifies that municipalities are still obligated to provide sewage disposal and fire suppression services, indicating a balance of responsibilities even as water services become decentralized. The effective date for the bill, if enacted, would be July 1, 2023, marking a significant shift in how water service regulations are approached in Mississippi.