MississippiSB 25262026 Regular SessionSenateWALLET

Rural Water Oversight Committee; create and prescribe duties of.

Sponsored By: Bart Williams (Republican)

Signed by Governor

Public UtilitiesAccountability, Efficiency, TransparencyEnergy

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 0 costs, 4 mixed.

New rules for water rates and studies

Beginning July 1, 2026, every water provider must get a rate study and a capacity study by December 1, 2027, then every five years. Providers must put study-recommended rates in place within one year. If the increase is 50% or more, they may phase it in over two years. By December 1, 2026, the new committee sets detailed rules for these studies and asset plans and picks who writes the study guidelines. The committee also keeps an approved list of firms that can do rate studies, and providers must file their latest rate study each year with the State Auditor.

Providers must plan and save for repairs

Providers must file an asset management plan by December 1, 2027, and update it every year. Within 12 months of any new rate, they must deposit at least 5% of gross revenues each year into a refurbishment and replacement account, unless the rate study sets a different amount or already funds depreciation. When a system reaches 75% of its total capacity, providers must plan upgrades and update the asset plan when work starts. These rules can raise provider costs now but aim to keep water service reliable and avoid bigger failures later.

New rural water oversight and help

The law creates the Mississippi Rural Water Oversight Committee on July 1, 2026. The committee can hire three staff to help systems with studies and asset plans, funded at $500,000 a year if lawmakers appropriate the money. Also starting July 1, 2026, at least $500,000 a year, if appropriated, pays three salaries for a nonprofit circuit‑rider program that helps rural systems; this funding ends July 1, 2031. The Governor must appoint a rural water manager to the state improvements board from at least three candidates named by the Mississippi Rural Water Association’s Executive Director.

Checks on big projects and new systems

Before starting any project that costs more than 20% of last year’s gross revenue, a provider must get a new or updated rate study. New public water providers must prove they are fiscally sustainable and pass a technical, financial, and managerial review; scores under 70 are flagged to the committee. These checks can slow or reshape projects, but they help prevent risky spending and unstable systems.

Steps when a water system falters

Starting July 1, 2026, the state lists systems in fiscal distress when they fail to get or follow a required rate study or are in major noncompliance. A distressed provider must submit an improvement plan within 90 days. While distressed, it needs written committee approval to take on new debt, accept certain funds not in its plan, or transfer assets. It cannot get state operating aid until a plan is approved, unless aid is needed right away to protect public health and safety. If the board is nonfunctional, the state can act to remove or replace board members.

Sponsors & Cosponsors

Sponsor

Bart Williams
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 209 • No: 5

Senate vote • 3/10/2026

Concurred in Amend From House

Yes: 51 • No: 1

House vote • 3/4/2026

Passed As Amended

Yes: 109 • No: 4

Senate vote • 2/10/2026