HB 698 — Municipal water, wastewater and sewer services; require equity based billing based on use of.

698 (As Sent to Governor) AN ACT TO AMEND SECTIONS 21-27-7 AND 21-27-189, MISSISSIPPI CODE OF 1972, TO ENSURE JUST, REASONABLE AND TRANSPARENT BILLING FOR MUNICIPAL WATER, WASTEWATERWASTEWATER, AND SEWER SERVICES;

(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* * * *.users.

ExceptThe as provided in Section 21-27-77, the rates at which water, wastewater, and sewer services shall be supplied shall be just and reasonable,reasonable based on the actual cost to operate and maintain the systems, and rates may not be unreasonably preferential, prejudicial or discriminatory but shall be sufficient, equitable and consistent in application to each class of inhabitants.users.

(b)While Ratesa municipality may set different rates for different classifications of users, a municipality shall benot calculateddiscriminate in equitablesetting proportionrates toamong themembers servicesof andthe benefitssame rendered.H.

Except as provided in Section H.

698 *HR43/R1486**HR43/R1486SG* ~ OFFICIAL ~ G1/2 23/HR43/R148623/HR43/R1486SG PAGE 1 (OM\EW) 21-27-77,classification. 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)The Noticemunicipal ofgoverning anyauthorities changeshall inmake thea ratefinding aton whichthe servicesminutes areof suppliedthe shallgoverning bebody postedestablishing onthe allrate billsbased senton tothe inhabitantsactual atcost least one (1) month prior to theoperate effectiveand datemaintain of the ratesystem. change.

NoticeA municipality shall alsonot becharge posteda touser thea municipality'sfee onlinefor webpageservices orreceived billwhich paymentis platform,less ifthan the municipalitycost hasincurred anby onlinethe webpagemunicipality orto billprovide paymentsuch platform.services.

(d)(b) NothingThe in this statute shall be construed as prohibiting an inhabitant or governing authorityauthorities of anya municipality fromshall applyingestablish for and receivingmaintain anyrates federallyand orcharges privatelyin subsidizedequitable paymentproportion assistance,to northe shalluse thisof statutethe beservices construedand asbenefits prohibitingrendered aby municipalitythe fromwaterworks establishingsystems orand administeringwater atreatment programfacilities underserving Sectionthe 21-27-77.municipal area.

(2)From Thetime governingto authoritiestime ofthe municipalitiesgoverning authorities shall haveadjust thesuch powerrates, to acquire by purchase, donation or condemnation, in the nameend ofthat the municipality,revenues suitabletherefrom grounds,will withinbe orsufficient withoutat theall corporatetimes limits, upon which to erectpay waterworks, and also the right-of-wayexpenses toof operating and frommaintaining such worksworks, facilities and thesystems right-of-way for laying water pipes within the corporate limits, and fromall suchof waterworks to the municipality,municipality's andobligations tounder extendany suchcontract right-of-wayor frombond timeresolution towith time.respect thereto.

The governingcalculation authoritiesof a user's bill shall havebe limited to the poweractual toamount contractof withvolumetric anyusage, personplus those fees reasonable and necessary for the maintenancecost andof capital expenses, system operation ofand H.maintenance, and debt service.

(c) If a user's meter is tampered with, unreadable, or otherwise out-of-order, a municipality may render an estimated bill to that user for a period not to exceed six (6) months.

In such circumstance, an estimated bill shall be based upon the prior average measured usage of the user or a similar user of the same classification.

H.

698 *HR43/R1486**HR43/R1486SG* ~ OFFICIAL ~ 23/HR43/R148623/HR43/R1486SG PAGE 2(OM\EW) waterworks.(i) Only in the event a municipality is unable to meet the requirement of billing based solely on volumetric usage, such municipality may bill based on a flat fee rate where such municipality has established flat fee billing as its usual and customary billing practice prior to the passage of this act, and where such municipality is actively billing based upon a flat fee rate as of the passage of this act.

In such circumstances, flat fee billing may be utilized until such time as the municipality implements upgrades to its system to provide for volumetric billing.

In such circumstance, the municipality may set different flat fee rates for different classifications of users, but the municipality shall not discriminate in setting flat fee rates among members of the same classification, and the municipality shall not charge a user a fee for services received that is less than the cost incurred by the municipality to provide such services.

(ii) The governing authorities of the municipality shall make a finding annually on the minutes of the governing body establishing the rate based upon the actual cost to operate and maintain the system as determined under Generally Accepted Accounting Principles, and the municipality shall not charge a user a fee for services received that is less than the cost incurred by the municipality, or based on the assessed value of the property, to provide such services.

H.

B.

No.

698 *HR43/R1486SG* ~ OFFICIAL ~ 23/HR43/R1486SG PAGE 3(OM\EW) (d) Notice of any change in the rate or rate structure at which services are supplied shall be posted on all bills sent to users at least one (1) month prior to the effective date of the rate change.

Notice shall also be posted to the municipality's online web page or bill payment platform, if the municipality has an online web page or bill payment platform.

(e) Nothing in this statute shall be construed as prohibiting a user or governing authority of any municipality from applying for and receiving any federally or privately subsidized payment assistance, grant or other funds.

(f) The governing authority of a municipality may provide for the calculation of a user's bill by a method other than volumetric usage only in exchange for consideration as part of, or in connection with, an incentive contract or other form of benefit or assistance related to the user's location, expansion, or maintenance of its commercial or industrial operation within the municipality, so long as such rate is equitable, fair, and nondiscriminatory, and the municipality shall not charge such user a fee for services received that is less than the cost incurred by the municipality to provide such services.

(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 H.

B.

No.

698 *HR43/R1486SG* ~ OFFICIAL ~ 23/HR43/R1486SG PAGE 4(OM\EW) 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.

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 theH. 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 H.

698 *HR43/R1486**HR43/R1486SG* ~ OFFICIAL ~ 23/HR43/R148623/HR43/R1486SG PAGE 3(OM\EW)5(OM\EW) facilities serving the metropolitan area inand conformanceterritories withcomprising the metropolitan area plan.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.

The rates shall be just and reasonable, and rates may not be unreasonably preferential, prejudicial,prejudicial or discriminatory but shall be sufficient, equitable and consistent in application to each class of inhabitants.users.

(e)While To incur short and long-term indebtedness under the provisionsmunicipality ofmay Sectionsset 21-27-161different throughrates 21-27-191for ordifferent otherclassifications applicableH. statutes.

(f) To adopt rules and regulations necessary to carry out the implementation of the metropolitan area plan and to assure H.

698 *HR43/R1486**HR43/R1486SG* ~ OFFICIAL ~ 23/HR43/R148623/HR43/R1486SG PAGE 4(OM\EW)6(OM\EW) the payment of eachusers, participatinga personmunicipality orshall publicnot agencydiscriminate ofin itssetting proportionaterates shareamong members of treatmentthe costs.same classification.

The governing authorities of the municipality shall make a finding on the minutes of the governing body establishing the rate based upon the actual cost to operate and maintain the system, and a municipality shall not charge a user a fee for services received which is less than the cost incurred by the municipality to provide such services.

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