MississippiHB 40002026 Regular SessionHouseWALLET

Grenada County; authorize to create the Grenada County Utility Authority.

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 1 benefits, 3 costs, 5 mixed.

County can form new utility authority

The law lets the county and joining public agencies or utilities ask a court to form the Grenada County Utility Authority. The court must find that a sound plan serves a public need. The authority can build, operate, and maintain water and wastewater systems, and it can acquire a public agency or utility with that entity’s approval. The county appoints five board members; at least two must represent an acquired utility or an area not served by one. Initial terms range from one to five years, and later terms last four years. The board can receive per diem pay and approved travel costs from authority funds. The authority cannot dissolve unless every board member agrees and the county approves a plan to continue its systems.

Utility customers may face new charges

The authority can set or change charges for systems it operates or maintains, including systems it does not own. Charges must cover system costs, reserves, and contract or bond obligations. A public agency or utility with a qualifying contract must also set rates high enough to cover system costs and payments when system revenue helps pay the contract. The authority can require by contract that people use an available water or wastewater system while debt on that system remains outstanding. The law sets no specific rate or increase.

Possible new county property tax

The county can levy an extra property tax of up to two mills to support and maintain the authority. It must publish notice of its plan for 30 days before imposing the tax. If more than 20% or 1,500, whichever is less, of qualified electors in the service area protest in writing within 30 days after publication, the tax needs approval in a special election. The law does not set the tax amount or say that the county will impose it.

Limits on lawsuits against authority

The authority is protected from lawsuits over wrongful acts or failures by the authority or its employees, including libel, slander, or defamation. The protection remains subject to the state law named in the act.

New approval rules for utility projects

The authority can set rules for utility systems, including design, construction, operation, inspections, and reporting. Covered construction and system work needs advance notice and board approval before installation. The board must accept or deny complete plans within 30 working days after receiving required information, including state environmental approval. The responsible person must file a statement that the system complies, and engineers working on system plans must notify the authority and seal approved documents. Systems connected to an authority system also come under its rules. These steps add requirements, while oversight can support system operation.

Utility projects can take land

The authority can identify property it needs and use eminent domain to acquire it, including taking possession right away. It cannot acquire minerals or royalties, though sand and gravel are not treated as minerals under this rule. For utility projects, it can also require roads, railroads, and utility lines to be moved or protected. It must pay due compensation first or agree with affected owners on relocation costs.

Utility contracts can add public costs

Public agencies and utilities can make long-term contracts with the authority for water or wastewater services, system purchases, operations, or leases. Contracts can require payments for system costs, debt, and reserves, and covered obligations do not count toward the contracting entity’s legal debt limits. Certain payments or transfers under qualifying contracts do not need Mississippi Public Service Commission review. These arrangements can support utility systems, but their costs can affect public budgets and utility customers.

Wastewater limits for utilities and industries

The authority can refuse wastewater from a public agency or utility that does not follow its applicable rules. It can accept or reject industrial wastewater and require pretreatment when it considers that necessary. These rules can protect system operations but may limit or add requirements for affected dischargers.

Utility bonds rely on pledged revenues

The authority can issue revenue or special-assessment bonds to pay for utility projects and related costs. Before most bond issues, it must publish its intent and hold a public hearing. The authority can pledge revenues, property, or assessments and promise to collect enough rates and charges to cover system costs and bond payments. Payments for a specific bond must be kept separate and used for that bond. The bonds are paid only from pledged authority resources, not from a general promise to repay with public funds. Bond interest cannot exceed the state-law limit.

Sponsors & Cosponsors

Sponsor

Kevin Horan
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 173 • No: 0

Senate vote • 3/26/2026

Passed

Yes: 52 • No: 0

House vote • 3/19/2026