Municipal utilities; revise composition of the commission to include one person who is a customer that receives service by such utility.

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To: Public Utilities
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative McMillan

HOUSE BILL NO. 1563
(As Sent to Governor)

AN ACT TO AMEND SECTION 21-27-13, MISSISSIPPI CODE OF 1972, 1
TO REQUIRE THAT TWO MEMBERS OF A MUNICIPAL UTILITY COMMISSION MUST 2
BE CUSTOMERS WHO RECEIVE SUCH UTILITY SERVICE AT A LOCATION 3
OUTSIDE THE BOUNDARIES OF THE MUNICIPALITY; TO AMEND SECTION 4
41-26-101, MISSISSIPPI CODE OF 1972, TO REQUIRE ALL MEMBERS OF A 5
GOVERNING BOARD OF ANY COMMUNITY PUBLIC WATER SYSTEM TO ATTEND 6
MANAGEMENT TRAINING; TO BRING FORWARD SECTION 41-26-3, MISSISSIPPI 7
CODE OF 1972, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED 8
PURPOSES. 9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 10
SECTION 1. Section 21-27-13, Mississippi Code of 1972, is 11
amended as follows: 12
21-27-13. (1) The governing authorities of any municipality 13
which now owns and operates, or hereafter shall own and operate, 14
any system or systems shall have the power and authority to create 15
a commission to control, manage and operate such systems, or any 16
one or more of them, which said commission shall consist of not 17
less than three (3) nor more than * * * seven (7) commissioners, 18
two (2) of which must be customers who receive residential service 19
provided by such utility at a location outside the boundaries of 20
the municipality, to be elected by the governing authorities of 21
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such municipality. In any municipality operating under the 22
council-manager plan of government, such commissioners shall be 23
selected by, and shall be under the control of, the mayor and 24
councilmen of the municipality, and not the city or town manager. 25
Such commissioners shall have the power, authority and duty to 26
manage and control said system or systems and the supply of the 27
facilities and services thereof, both within and without the 28
limits of the municipality. Such commissioners shall be qualified 29
electors of the municipality and shall not hold any other 30
municipal office for honor or profit. Such commissioners shall 31
receive such compensation as may be specified and provided by the 32
governing authorities of said municipality; provided, however, 33
that any commission formed for the purpose of establishing a motor 34
vehicle transportation system for the transportation of passengers 35
within the boundaries of the governmental unit or units concerned, 36
and within three (3) miles thereof, may pay its commissioners from 37
the operating budget of such commission per diem compensation in 38
the amount provided by Section 25-3-69 for each day or fraction of 39
a day engaged in attendance of meetings of the commission or 40
engaged in other official duties of the commission, not to exceed 41
forty-five (45) days in any one (1) year. The governing 42
authorities of the municipality are hereby authorized and 43
empowered to require such commissioners to furnish bonds for the 44
faithful performance of their duties, in the amount as may be 45
deemed proper, and to pay the premiums thereon from the municipal 46
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treasury or the available funds of the said system or systems. 47
Where there are three (3) members of such commission, the term of 48
office shall be for a period of three (3) years, and where there 49
are four (4) members the term of office shall be for a period of 50
four (4) years, and where there are five (5) members the term of 51
office shall be for a period of five (5) years. However, in 52
making the first appointment of commissioners, one (1) shall be 53
appointed for a term of one (1) year, one (1) for a term of two 54
(2) years, one (1) for a term of three (3) years and, where 55
necessary, one (1) for a term of four (4) years, and one (1) for a 56
term of five (5) years, so that thereafter the term of office of 57
one (1) commissioner shall expire each year. Where the governing 58
authorities of the municipality do not elect to create a 59
commission as herein provided, then any system or systems owned 60
and operated by the municipality shall be controlled and managed 61
by the governing authorities of the municipality, who shall have 62
all the power and authority conferred upon such commission. 63
(2) Notwithstanding any other provision of law, in any 64
municipality that establishes a utility board or commission that 65
provides utility services both within and outside the corporate 66
limits of the municipality, and more than twenty percent (20%) of 67
the customers live outside of the corporate limits, the governing 68
authorities of each county in which the utility provides service 69
outside the municipal limits shall have the authority to appoint 70
one (1) member each to the utility board or commission, provided 71
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that no more than two (2) total members shall be appointed under 72
this subsection. 73
(3) Each county governing authority eligible to make an 74
appointment under this section shall make such appointment within 75
sixty (60) days after the municipality has appointed its initial 76
members to the utility board or commission. 77
(4) If a county governing authority fails to appoint a 78
member within the sixty-day period prescribed in subsection (3) of 79
this section, the governing authorities of the municipality shall 80
have the authority to appoint the remaining member or members that 81
would have otherwise been appointed by the county or counties. 82
(5) Members appointed pursuant to this section shall meet 83
all qualifications, terms of service, and ethical requirements 84
applicable to members of the utility board or commission under 85
this chapter and shall represent the interests of utility 86
customers residing outside the municipal boundaries. 87
SECTION 2. Section 41-26-101, Mississippi Code of 1972, is 88
amended as follows: 89
41-26-101. (1) (a) Each member elected or reelected after 90
June 30, 1998, to serve on a governing board of any community 91
public water system * * * shall attend a minimum of eight (8) 92
hours of management training within two (2) years following the 93
election of that board member. Any member failing to complete the 94
management training within two (2) years after his or her election 95
shall be subject to removal from the board by the remaining 96
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members. If a board member has undergone training and is 97
reelected to the board, that board member shall not be required to 98
attend training as provided by this subsection. 99
(b) Additionally, each member of a governing board of a 100
community public water system that receives a "D" or "F" rating 101
from the Department of Health according to the provisions of House 102
Bill No. 1632, 2026 Regular Session, shall attend a minimum of 103
eight (8) hours of management training within two (2) years 104
following receipt of a "D" or "F" rating, even if such member has 105
previously completed training prior to receipt of such rating. 106
Any such member failing to complete the management training within 107
two (2) years after receipt of such "D" or "F" rating shall be 108
subject to removal from the board by the remaining members. 109
(2) The management training shall be organized by the State 110
Department of Health, in cooperation with the Mississippi Rural 111
Water Association and other organizations. The management 112
training shall include information on water system management and 113
financing, rate setting and structures, operations and 114
maintenance, applicable laws and regulations, ethics, the duties 115
and responsibilities of a board member and other information 116
deemed necessary by the department after consultation with the 117
association and other organizations. The department shall develop 118
and provide all training materials. The association and other 119
training organizations may charge a fee in the amount of 120
Seventy-five Dollars ($75.00) per member plus the cost of the 121
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manual and materials. These costs shall be reimbursed to the 122
board member as an expense of the community public water system. 123
(3) Two (2) officers of each board shall also obtain an 124
additional four (4) hours of updated and advanced training within 125
a four-year period. The term "officers" shall include the legally 126
responsible official of the community public water system and the 127
mayor, mayor pro tem, the president, and the vice president of the 128
board. If one (1) of the officers is not able to attend the 129
training, then he or she may appoint someone from among the 130
existing board to attend in his or her place; however, the board 131
member attending this training must have first completed the eight 132
(8) hours of management training. This training will be held at a 133
time and place that will accommodate those members who have other 134
responsibilities. The training shall consist of, but not be 135
limited to, updated regulatory rules and regulations, an in depth 136
look at the Mississippi Nonprofit Corporation Act as well as any 137
updated information that would aid them in making decisions for 138
their utility system. The association and other training 139
organizations may charge a fee in the amount of Twenty-five 140
Dollars ($25.00) per member plus the cost of the material needed 141
for the training. These costs shall also be reimbursed to the 142
board member as an expense of the community water system. 143
(4) To avoid board members having to interfere with their 144
jobs or employment, management training sessions may be divided 145
into segments and, to the greatest extent possible, shall be 146
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scheduled for evening sessions. The department shall conduct 147
management training on a regional basis and shall use community 148
college or other public facilities for the convenience of board 149
members. 150
(5) The department may make exceptions to and grant 151
exemptions and variances to the requirements of this section for 152
good cause shown. 153
SECTION 3. Section 41-26-3, Mississippi Code of 1972, is 154
brought forward as follows: 155
41-26-3. For purposes of this chapter, the following terms 156
shall have the meaning ascribed herein unless the context clearly 157
indicates otherwise: 158
(a) "Administrator" means the Administrator of the U.S. 159
Environmental Protection Agency or the administrator's designee. 160
(b) "Board" means the Mississippi State Board of 161
Health. 162
(c) "Community public water system" means a public 163
water system serving at least fifteen (15) individual service 164
connections used by year-round consumers or regularly servicing at 165
least twenty-five (25) individual consumers year-round. 166
(d) "Construction" means any placement, assembly or 167
installation of facilities or equipment, including contractual 168
obligations to purchase those facilities or equipment, at the 169
location where the equipment will be used, including any 170
preparation work at any location. 171
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(e) "Contaminant" means any physical, chemical, 172
biological or radiological substance or matter in water. 173
(f) "Cross connection" means any direct interconnection 174
between a public water system and a nonpublic water system or 175
other source which may result in the contamination of the drinking 176
water provided by the public water system. 177
(g) "Department" means the Mississippi State Department 178
of Health. 179
(h) "Director" means the State Health Officer or the 180
health officer's designee. 181
(i) "Federal act" means the Safe Drinking Water Act of 182
1974, as amended, principally codified as 42 USCS Section 300(f) 183
et seq. 184
(j) "Federal agency" means any department, agency or 185
instrumentality of the United States. 186
(k) "Interested party" means any person claiming an 187
interest in the water system operation that is the subject of the 188
hearing and who may be affected by the water system. 189
(l) "Maximum contaminant level" means the maximum 190
permissible level of a contaminant in water which is delivered to 191
any user of a public water system. 192
(m) "Municipality" means a city, town, village or other 193
public body created by state law, or an Indian tribal organization 194
authorized by law. 195
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(n) "National primary drinking water regulations" means 196
primary drinking water regulations promulgated by the 197
administrator under the federal act. 198
(o) "Nontransient, noncommunity public water system" 199
means a public water system that is not a community water system 200
and that regularly serves at least twenty-five (25) of the same 201
persons over six (6) months per year. 202
(p) "Person" means an individual, corporation, company, 203
association, partnership, municipality or federal agency. 204
(q) "Public water system" means a system for providing 205
to the public piped water for human consumption through pipes or 206
other constructed conveyances if the system has at least fifteen 207
(15) service connections or regularly serves at least twenty-five 208
(25) individuals. The term includes but is not limited to: 209
(i) Any collection, treatment, storage and 210
distribution facilities under control of the operator of the 211
system and used primarily in connection with the system; and 212
(ii) Any collection or pre-treatment storage 213
facilities not under the control which are used primarily in 214
connection with the system. 215
(r) "Semi-public water system" means a system for the 216
provision to the public of water for human consumption through 217
pipes or other constructed conveyances if the system has more than 218
one (1) but less than fifteen (15) service connections. 219
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ST: Municipal utilities; revise composition of
the commission to include one person who is a
customer that receives service by such utility.
(s) "Supplier of water" means any person who owns, or 220
controls a public water system. 221
(t) "Violator" means a public water system, an officer 222
or director of a public water system, an operator, certified or 223
otherwise, or any other person designated by a public water system 224
or the department as the official responsible for the operation of 225
a public water system. 226
SECTION 4. This act shall take effect and be in force from 227
and after July 1, 2026. 228