REPORT OF CONFERENCE COMMITTEE #2

MR. SPEAKER AND MR. PRESIDENT:

We, the undersigned conferees, have had under consideration the amendments to the
following entitled BILL:

H. B. No. 698: Municipal water, wastewater and sewer services;

require equity based billing based on use of.

We, therefore, respectfully submit the following report and recommendation:

1. That the Senate recede from its Amendment No. 1.

2. That the House and Senate adopt the following amendment:

Amend by striking all after the enacting clause and inserting

in lieu thereof the following:

6 SECTION 1. Section 21-27-7, Mississippi Code of 1972, is

7 amended as follows:

8 21-27-7. (1) (a) The governing authorities of

9 municipalities shall have the power to erect, purchase, maintain

10 and operate waterworks, and to regulate the same, and to prescribe

11 the rates at which water shall be supplied to the * * * users.

12 The rates at which water, wastewater, and sewer services shall be

13 supplied shall be just and reasonable based on the actual cost to

14 operate and maintain the systems, and rates may not be

15 unreasonably preferential, prejudicial or discriminatory but shall

16 be sufficient, equitable and consistent in application to each

17 class of users. While a municipality may set different rates for

18 different classifications of users, a municipality shall not

19 discriminate in setting rates among members of the same

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20 classification. The municipal governing authorities shall make a

21 finding on the minutes of the governing body establishing the rate

22 based on the actual cost to operate and maintain the system. A

23 municipality shall not charge a user a fee for services received

24 which is less than the cost incurred by the municipality to

25 provide such services.

26 (b) The governing authorities of a municipality shall

27 establish and maintain rates and charges in equitable proportion

28 to the use of the services and benefits rendered by the waterworks

29 systems and water treatment facilities serving the municipal area.

30 From time to time the governing authorities shall adjust such

31 rates, to the end that the revenues therefrom will be sufficient

32 at all times to pay the expenses of operating and maintaining such

33 works, facilities and systems and all of the municipality's

34 obligations under any contract or bond resolution with respect

35 thereto. The calculation of a user's bill shall be limited to the

36 actual amount of volumetric usage, plus those fees reasonable and

37 necessary for the cost of capital expenses, system operation and

38 maintenance, and debt service.

39 (c) If a user's meter is tampered with, unreadable, or

40 otherwise out-of-order, a municipality may render an estimated

41 bill to that user for a period not to exceed six (6) months. In

42 such circumstance, an estimated bill shall be based upon the prior

43 average measured usage of the user or a similar user of the same

44 classification.

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45 (i) Only in the event a municipality is unable to

46 meet the requirement of billing based solely on volumetric usage,

47 such municipality may bill based on a flat fee rate where such

48 municipality has established flat fee billing as its usual and

49 customary billing practice prior to the passage of this act, and

50 where such municipality is actively billing based upon a flat fee

51 rate as of the passage of this act. In such circumstances, flat

52 fee billing may be utilized until such time as the municipality

53 implements upgrades to its system to provide for

54 volumetric billing. In such circumstance, the municipality may set

55 different flat fee rates for different classifications of users,

56 but the municipality shall not discriminate in setting flat fee

57 rates among members of the same classification, and the

58 municipality shall not charge a user a fee for services received

59 that is less than the cost incurred by the municipality to provide

60 such services.

61 (ii) The governing authorities of the municipality

62 shall make a finding annually on the minutes of the governing body

63 establishing the rate based upon the actual cost to operate and

64 maintain the system as determined under Generally Accepted

65 Accounting Principles, and the municipality shall not charge a

66 user a fee for services received that is less than the cost

67 incurred by the municipality, or based on the assessed value of

68 the property, to provide such services.

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69 (d) Notice of any change in the rate or rate structure

70 at which services are supplied shall be posted on all bills sent

71 to users at least one (1) month prior to the effective date of the

72 rate change. Notice shall also be posted to the municipality's

73 online webpage or bill payment platform, if the municipality has

74 an online webpage or bill payment platform.

75 (e) Nothing in this statute shall be construed as

76 prohibiting a user or governing authority of any municipality from

77 applying for and receiving any federally or privately subsidized

78 payment assistance, grant or other funds.

79 (f) The governing authority of a municipality may

80 provide for the calculation of a user's bill by a method other

81 than volumetric usage only in exchange for consideration as part

82 of, or in connection with, an incentive contract or other form of

83 benefit or assistance related to the user's location, expansion,

84 or maintenance of its commercial or industrial operation within

85 the municipality, so long as such rate is equitable, fair, and

86 non-discriminatory, and the municipality shall not charge such

87 user a fee for services received that is less than the cost

88 incurred by the municipality to provide such services.

89 (2) The governing authorities of municipalities shall have

90 the power to acquire by purchase, donation or condemnation, in the

91 name of the municipality, suitable grounds, within or without the

92 corporate limits, upon which to erect waterworks, and also the

93 right-of-way to and from such works and the right-of-way for

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94 laying water pipes within the corporate limits, and from such

95 waterworks to the municipality, and to extend such right-of-way

96 from time to time. The governing authorities shall have the power

97 to contract with any person for the maintenance and operation of

98 waterworks. * * * The authorities shall have the power to

99 contract with any person for the erection and maintenance of

100 waterworks for a term not exceeding twenty-five (25) years, fixing

101 water rates in the contract subject to municipal regulations. A

102 contract for the erection or purchase of waterworks shall not,

103 however, be entered into until submitted to a vote of the

104 qualified electors and approved by a majority of those voting. A

105 contract for maintenance under which the person who will perform

106 such maintenance is wholly or partially responsible for fixing

107 water rates shall not be entered into until submitted to a vote of

108 the qualified electors and approved by a majority of those voting.

109 It shall be unlawful for any municipally owned waterworks to

110 supply water free of charge, or in any amount less than the fixed
111 charges, to any person, firm or corporation, except as is

112 expressly authorized by law.

113 SECTION 2. Section 21-27-189, Mississippi Code of 1972, is

114 amended as follows:

115 21-27-189. A municipality, as defined in Section 21-27-163,

116 is authorized and empowered, in the discretion of its governmental

117 authorities, to exercise the following powers and authority within

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118 the area and territories comprising the metropolitan area of which

119 it is a part:

120 (a) To operate and manage sewerage systems, sewage

121 treatment facilities and sewage disposal systems and related

122 facilities serving the metropolitan area in conformance with the

123 metropolitan area plan.

124 (b) To construct, operate and maintain sewerage

125 systems, sewage treatment facilities and sewage disposal systems

126 in the manner and to the extent required by the metropolitan area

127 plan.

128 (c) To accept and utilize grants and other funds from

129 any source for waste treatment management purposes.

130 (d) To establish and maintain rates and charges in

131 equitable proportion for the use of the services and benefits

132 rendered of such sewerage systems, sewage treatment facilities and

133 sewage disposal systems within the metropolitan area, and from

134 time to time to adjust such rates, to the end that the revenues
135 therefrom will be sufficient at all times to pay the expenses of

136 operating and maintaining such works, facilities and systems and

137 all of the municipality's obligations under any contract or bond

138 resolution with respect thereto. The rates shall be just and

139 reasonable, and rates may not be unreasonably preferential,

140 prejudicial or discriminatory but shall be sufficient, equitable

141 and consistent in application to each class of users. While the

142 municipality may set different rates for different classifications

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143 of users, a municipality shall not discriminate in setting rates

144 among members of the same classification. The governing

145 authorities of the municipality shall make a finding on the

146 minutes of the governing body establishing the rate based upon the

147 actual cost to operate and maintain the system, and a municipality

148 shall not charge a user a fee for services received which is less

149 than the cost incurred by the municipality to provide such

150 services.

151 (e) To incur short and long-term indebtedness under the

152 provisions of Sections 21-27-161 through 21-27-191 or other

153 applicable statutes.

154 (f) To adopt rules and regulations necessary to carry

155 out the implementation of the metropolitan area plan and to assure

156 the payment of each participating person or public agency of its

157 proportionate share of treatment costs.

158 (g) To refuse to receive any waste from any public

159 agency or subdivision thereof or any other person which does not
160 comply with the provisions of the metropolitan area plan

161 applicable to the particular area within which such public agency

162 or subdivision thereof or any other person is located.

163 (h) To accept industrial waste for treatment and to

164 require the pretreatment of same when within the opinion of the

165 municipality such pretreatment is necessary.

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166 (i) To adopt all necessary and reasonable rules and

167 regulations to carry out and effectuate any waste treatment plan

168 adopted for the metropolitan area.

169 (j) To require by ordinance or by contract with a

170 public agency or other person that all waste within the

171 metropolitan area be disposed of through sewerage systems,

172 treatment facilities and sewage disposal systems which comprise a

173 part of the metropolitan area plan, to the extent that the same

174 may be available, but no public agency shall be precluded from

175 constructing, operating and maintaining its own sewerage system if

176 the same be a part of the metropolitan area plan.

177 SECTION 3. This act shall take effect and be in force from

178 and after July 1, 2023.

Further, amend by striking the title in its entirety and

inserting in lieu thereof the following:

1 AN ACT TO AMEND SECTIONS 21-27-7 AND 21-27-189, MISSISSIPPI

2 CODE OF 1972, TO ENSURE JUST, REASONABLE AND TRANSPARENT BILLING
3 FOR MUNICIPAL WATER, WASTEWATER, AND SEWER SERVICES; AND FOR
4 RELATED PURPOSES.

X (SIGNED) X (SIGNED)
Bounds Carter

X (SIGNED) X (SIGNED)
Anderson (122nd) Michel

X (SIGNED) X (SIGNED)
Yates Parks

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