Mississippi House Bill HB498

Mississippi 2023 Regular Session

• Introduced: 1/13/23
• Refer: 1/13/23
• Failed: 2/9/23

Caption

Municipalities allowed to establish overdue water/sewer payment programs, certain; extend program repeal date.

Impact

With this extension, municipalities with populations exceeding 150,000 can sustain and implement programs that help manage delinquent accounts effectively. The authority allows these municipalities to consider a customer's ability to pay when developing payment plans and procedures. For customers with temporary financial difficulties or service issues due to billing failures, municipalities can offer a structured installment payment plan that shifts the remaining unpaid balance into a special accounting category for uncollectible debts, although this does not forgive the debt itself. This effort supports utility companies in enhancing revenue collection and customer service while maintaining fiscal responsibility.

Summary

House Bill 498 amends Section 21-27-77 of the Mississippi Code of 1972 to extend the repeal date of provisions that allow certain municipalities to adopt rules for managing uncollectible debts related to water and sewer services. The bill sets the new repeal date to July 1, 2026, granting municipalities more time to address bills that remain unpaid or disputed by customers. This initiative aims to offer municipalities the tools they need to develop payment plans and accommodate customers who may find it difficult to pay their bills due to various legitimate reasons, including financial hardships or service-related errors.

Contention

One notable point of contention is the impact this bill may have on the fiscal health of municipalities and their public utilities. Critics may argue that extending this provision allows for the deferral of revenue expectations, putting undue pressure on municipal budgets in the long run. Conversely, supporters claim that by allowing utilities to operate with more flexibility in collections, it ensures the service continuity and fairness for those customers who are genuinely struggling. The potential for increased accountability in reporting the number of delinquent accounts and the measures taken can create transparency, fostering community trust in utility governance.