Bill Text: MS HB1563 | 2026 | Regular Session | Enrolled
Bill Title: Municipal utilities; revise composition of the commission to include one person who is a customer that receives service by such utility.
Sponsorship: Partisan Bill (Republican 1)
Status: (Passed) 2026-04-08 - Approved by Governor [HB1563 Detail]
Download: Mississippi-2026-HB1563-Enrolled.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Public Utilities
By: Representative McMillan
House Bill 1563
(As Sent to Governor)
AN ACT TO AMEND SECTION 21-27-13, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT TWO MEMBERS OF A MUNICIPAL UTILITY COMMISSION MUST BE CUSTOMERS WHO RECEIVE SUCH UTILITY SERVICE AT A LOCATION OUTSIDE THE BOUNDARIES OF THE MUNICIPALITY; TO AMEND SECTION 41-26-101, MISSISSIPPI CODE OF 1972, TO REQUIRE ALL MEMBERS OF A GOVERNING BOARD OF ANY COMMUNITY PUBLIC WATER SYSTEM TO ATTEND MANAGEMENT TRAINING; TO BRING FORWARD SECTION 41-26-3, MISSISSIPPI CODE OF 1972, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 21-27-13, Mississippi Code of 1972, is amended as follows:
21-27-13. (1) The
governing authorities of any municipality which now owns and operates, or
hereafter shall own and operate, any system or systems shall have the power and
authority to create a commission to control, manage and operate such systems,
or any one or more of them, which said commission shall consist of not less
than three (3) nor more than * * * seven (7) commissioners, two
(2) of which must be customers who receive residential service provided by such
utility at a location outside the boundaries of the municipality, to be
elected by the governing authorities of such municipality. In any municipality
operating under the council-manager plan of government, such commissioners
shall be selected by, and shall be under the control of, the mayor and
councilmen of the municipality, and not the city or town manager. Such
commissioners shall have the power, authority and duty to manage and control
said system or systems and the supply of the facilities and services thereof,
both within and without the limits of the municipality. Such commissioners
shall be qualified electors of the municipality and shall not hold any other
municipal office for honor or profit. Such commissioners shall receive such
compensation as may be specified and provided by the governing authorities of
said municipality; provided, however, that any commission formed for the purpose
of establishing a motor vehicle transportation system for the transportation of
passengers within the boundaries of the governmental unit or units concerned,
and within three (3) miles thereof, may pay its commissioners from the
operating budget of such commission per diem compensation in the amount
provided by Section 25-3-69 for each day or fraction of a day engaged in
attendance of meetings of the commission or engaged in other official duties of
the commission, not to exceed forty-five (45) days in any one (1) year. The
governing authorities of the municipality are hereby authorized and empowered
to require such commissioners to furnish bonds for the faithful performance of
their duties, in the amount as may be deemed proper, and to pay the premiums
thereon from the municipal treasury or the available funds of the said system
or systems. Where there are three (3) members of such commission, the term of
office shall be for a period of three (3) years, and where there are four (4)
members the term of office shall be for a period of four (4) years, and where
there are five (5) members the term of office shall be for a period of five (5)
years. However, in making the first appointment of commissioners, one (1)
shall be appointed for a term of one (1) year, one (1) for a term of two (2)
years, one (1) for a term of three (3) years and, where necessary, one (1) for
a term of four (4) years, and one (1) for a term of five (5) years, so that
thereafter the term of office of one (1) commissioner shall expire each year.
Where the governing authorities of the municipality do not elect to create a
commission as herein provided, then any system or systems owned and operated by
the municipality shall be controlled and managed by the governing authorities of
the municipality, who shall have all the power and authority conferred upon
such commission.
(2) Notwithstanding any other provision of law, in any municipality that establishes a utility board or commission that provides utility services both within and outside the corporate limits of the municipality, and more than twenty percent (20%) of the customers live outside of the corporate limits, the governing authorities of each county in which the utility provides service outside the municipal limits shall have the authority to appoint one (1) member each to the utility board or commission, provided that no more than two (2) total members shall be appointed under this subsection.
(3) Each county governing authority eligible to make an appointment under this section shall make such appointment within sixty (60) days after the municipality has appointed its initial members to the utility board or commission.
(4) If a county governing authority fails to appoint a member within the sixty-day period prescribed in subsection (3) of this section, the governing authorities of the municipality shall have the authority to appoint the remaining member or members that would have otherwise been appointed by the county or counties.
(5) Members appointed pursuant to this section shall meet all qualifications, terms of service, and ethical requirements applicable to members of the utility board or commission under this chapter and shall represent the interests of utility customers residing outside the municipal boundaries.
SECTION 2. Section 41-26-101, Mississippi Code of 1972, is amended as follows:
41-26-101. (1) (a)
Each member elected or reelected after June 30, 1998, to serve on a governing
board of any community public water system * * * shall attend a
minimum of eight (8) hours of management training within two (2) years
following the election of that board member. Any member failing to complete
the management training within two (2) years after his or her election
shall be subject to removal from the board by the remaining members. If a
board member has undergone training and is reelected to the board, that board
member shall not be required to attend training as provided by this
subsection.
(b) Additionally, each member of a governing board of a community public water system that receives a "D" or "F" rating from the Department of Health according to the provisions of House Bill No. 1632, 2026 Regular Session, shall attend a minimum of eight (8) hours of management training within two (2) years following receipt of a "D" or "F" rating, even if such member has previously completed training prior to receipt of such rating. Any such member failing to complete the management training within two (2) years after receipt of such "D" or "F" rating shall be subject to removal from the board by the remaining members.
(2) The management training shall be organized by the State Department of Health, in cooperation with the Mississippi Rural Water Association and other organizations. The management training shall include information on water system management and financing, rate setting and structures, operations and maintenance, applicable laws and regulations, ethics, the duties and responsibilities of a board member and other information deemed necessary by the department after consultation with the association and other organizations. The department shall develop and provide all training materials. The association and other training organizations may charge a fee in the amount of Seventy-five Dollars ($75.00) per member plus the cost of the manual and materials. These costs shall be reimbursed to the board member as an expense of the community public water system.
(3) Two (2) officers of each board shall also obtain an additional four (4) hours of updated and advanced training within a four-year period. The term "officers" shall include the legally responsible official of the community public water system and the mayor, mayor pro tem, the president, and the vice president of the board. If one (1) of the officers is not able to attend the training, then he or she may appoint someone from among the existing board to attend in his or her place; however, the board member attending this training must have first completed the eight (8) hours of management training. This training will be held at a time and place that will accommodate those members who have other responsibilities. The training shall consist of, but not be limited to, updated regulatory rules and regulations, an in depth look at the Mississippi Nonprofit Corporation Act as well as any updated information that would aid them in making decisions for their utility system. The association and other training organizations may charge a fee in the amount of Twenty-five Dollars ($25.00) per member plus the cost of the material needed for the training. These costs shall also be reimbursed to the board member as an expense of the community water system.
(4) To avoid board members having to interfere with their jobs or employment, management training sessions may be divided into segments and, to the greatest extent possible, shall be scheduled for evening sessions. The department shall conduct management training on a regional basis and shall use community college or other public facilities for the convenience of board members.
(5) The department may make exceptions to and grant exemptions and variances to the requirements of this section for good cause shown.
SECTION 3. Section 41-26-3, Mississippi Code of 1972, is brought forward as follows:
41-26-3. For purposes of this chapter, the following terms shall have the meaning ascribed herein unless the context clearly indicates otherwise:
(a) "Administrator" means the Administrator of the U.S. Environmental Protection Agency or the administrator's designee.
(b) "Board" means the Mississippi State Board of Health.
(c) "Community public water system" means a public water system serving at least fifteen (15) individual service connections used by year-round consumers or regularly servicing at least twenty-five (25) individual consumers year-round.
(d) "Construction" means any placement, assembly or installation of facilities or equipment, including contractual obligations to purchase those facilities or equipment, at the location where the equipment will be used, including any preparation work at any location.
(e) "Contaminant" means any physical, chemical, biological or radiological substance or matter in water.
(f) "Cross connection" means any direct interconnection between a public water system and a nonpublic water system or other source which may result in the contamination of the drinking water provided by the public water system.
(g) "Department" means the Mississippi State Department of Health.
(h) "Director" means the State Health Officer or the health officer's designee.
(i) "Federal act" means the Safe Drinking Water Act of 1974, as amended, principally codified as 42 USCS Section 300(f) et seq.
(j) "Federal agency" means any department, agency or instrumentality of the United States.
(k) "Interested party" means any person claiming an interest in the water system operation that is the subject of the hearing and who may be affected by the water system.
(l) "Maximum contaminant level" means the maximum permissible level of a contaminant in water which is delivered to any user of a public water system.
(m) "Municipality" means a city, town, village or other public body created by state law, or an Indian tribal organization authorized by law.
(n) "National primary drinking water regulations" means primary drinking water regulations promulgated by the administrator under the federal act.
(o) "Nontransient, noncommunity public water system" means a public water system that is not a community water system and that regularly serves at least twenty-five (25) of the same persons over six (6) months per year.
(p) "Person" means an individual, corporation, company, association, partnership, municipality or federal agency.
(q) "Public water system" means a system for providing to the public piped water for human consumption through pipes or other constructed conveyances if the system has at least fifteen (15) service connections or regularly serves at least twenty-five (25) individuals. The term includes but is not limited to:
(i) Any collection, treatment, storage and distribution facilities under control of the operator of the system and used primarily in connection with the system; and
(ii) Any collection or pre-treatment storage facilities not under the control which are used primarily in connection with the system.
(r) "Semi-public water system" means a system for the provision to the public of water for human consumption through pipes or other constructed conveyances if the system has more than one (1) but less than fifteen (15) service connections.
(s) "Supplier of water" means any person who owns, or controls a public water system.
(t) "Violator" means a public water system, an officer or director of a public water system, an operator, certified or otherwise, or any other person designated by a public water system or the department as the official responsible for the operation of a public water system.
SECTION 4. This act shall take effect and be in force from and after July 1, 2026.
