Read the full stored bill text
S. B. No. 2313 *SS08/R74* ~ OFFICIAL ~ G1/2
26/SS08/R74
PAGE 1 (aa\kr)
To: Energy
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Hill
SENATE BILL NO. 2313
AN ACT TO AMEND SECTION 79-11-394, MISSISSIPPI CODE OF 1972, 1
TO STIPULATE THAT ANY NONPROFIT, NONSHARE CORPORATION THAT FAILS 2
TO TIMELY FILE THE REPORT REQUIRED UNDER THIS SECTION MAY BE 3
SUBJECT TO THE PENALTIES OF DISSOLUTION OR DISALLOWANCE OF 4
NONPROFIT STATUS, OR BOTH, AT THE DISCRETION OF THE STATE AUDITOR; 5
TO AMEND SECTION 77-3-21, MISSISSIPPI CODE OF 1972, TO AUTHORIZE 6
THE PUBLIC SERVICE COMMISSION TO CANCEL A RURAL WATER COMPANY'S 7
CERTIFICATE TO PROVIDE SERVICE UPON A FINDING THAT THE COMPANY DID 8
NOT PROVIDE REASONABLY ADEQUATE SERVICE; TO AMEND SECTION 77-3-22, 9
MISSISSIPPI CODE OF 1972, TO INCLUDE RURAL WATER COMPANIES; TO 10
BRING FORWARD SECTIONS 77-3-11 AND 77-3-47, MISSISSIPPI CODE OF 11
1972, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED 12
PURPOSES. 13
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 14
SECTION 1. Section 79-11-394, Mississippi Code of 1972, is 15
amended as follows: 16
79-11-394. (1) (a) Any nonprofit, nonshare corporation 17
chartered under the Mississippi Nonprofit Corporation Act, Section 18
79-11-101 et seq., for the purpose of owning and operating rural 19
waterworks annually shall prepare a financial report showing the 20
financial condition of the corporation. The financial report 21
shall be prepared on forms provided by the State Auditor within 22
ninety (90) days following the close of the fiscal year of that 23
S. B. No. 2313 *SS08/R74* ~ OFFICIAL ~
26/SS08/R74
PAGE 2 (aa\kr)
corporation. Each report shall contain a certification signed by 24
the president of the board of directors of the corporation that 25
the president has reviewed the information contained in the 26
financial report and that the information is true and correct. 27
(b) As part of the billing statement received by the 28
subscriber immediately before the annual meeting of the 29
corporation, each corporation owning and operating rural 30
waterworks shall notify each subscriber provided water service by 31
the corporation of the availability of the most recently completed 32
annual financial report, how that report may be obtained and where 33
the report may be reviewed. If requested in writing, the 34
corporation shall provide a copy of the financial report to any 35
subscriber. 36
(c) Before July 1, 1999, and July 1 of each subsequent 37
year, each corporation required to prepare a financial report 38
under this section shall submit the most recently completed annual 39
financial report to the State Auditor. In addition, the 40
corporation shall provide a copy of that financial report to the 41
public library in the county seat of the county in which the 42
corporation's principal office is located. If no public library 43
is located in the county seat, the corporation shall provide that 44
report to the public library serving the largest population in the 45
county of the corporation's principal office. If requested in 46
writing, the State Auditor shall provide a copy of the financial 47
report to any subscriber of a water system owned and operated by 48
S. B. No. 2313 *SS08/R74* ~ OFFICIAL ~
26/SS08/R74
PAGE 3 (aa\kr)
that corporation and may recover the costs of providing that 49
report. 50
(2) In addition to the information required under subsection 51
(1) of this section, each financial report shall contain the 52
following: 53
(a) A statement certifying that an annual meeting was 54
held in accordance with the corporation's bylaws, as required 55
under Section 79-11-197, including the date of the most recent 56
annual meeting; 57
(b) A list of the directors currently serving on the 58
board of the corporation; and 59
(c) A list of those directors required who have failed 60
to meet the management training requirements under Section 61
41-26-101. 62
(3) (a) Before July 15, 1999, and July 15 of each 63
subsequent year, the State Auditor shall provide the State 64
Department of Health a list of all corporations failing to file a 65
report as required under subsection (1) of this section. The 66
State Department of Health shall notify the president of the board 67
of directors of each listed system in writing and shall require 68
that the financial report be submitted to the State Auditor within 69
thirty (30) days after the date of the letter. 70
(b) If any corporation required to prepare a financial 71
report under this section fails to notify subscribers of the 72
availability of the financial report, no corporate action taken 73
S. B. No. 2313 *SS08/R74* ~ OFFICIAL ~
26/SS08/R74
PAGE 4 (aa\kr)
after the date of the annual meeting shall be valid. If any 74
corporation required to prepare a financial report under this 75
section fails to submit the most recently completed annual 76
financial report to the State Auditor, no corporate action taken 77
after the date for submission specified in the letter from the 78
State Department of Health, as required under paragraph (a) of 79
this subsection, shall be valid. 80
(4) (a) Each nonprofit, nonshare corporation chartered 81
under Section 79-11-101 et seq., for the purpose of owning and 82
operating rural waterworks shall mail to each subscriber provided 83
water service by the corporation, as part of the billing statement 84
received by the subscriber immediately before the annual meeting 85
of the corporation, a notice of the annual meeting of the 86
corporation. Each corporation also shall submit, at the time the 87
notice is provided to the subscribers, a copy of that notice to 88
the State Department of Health. 89
(b) If any corporation fails to provide notice as 90
required under this subsection, no corporate action taken after 91
the date stated in or fixed in accordance with the corporation's 92
bylaws for the annual meeting shall be valid. 93
(5) If any nonprofit, nonshare corporation chartered under 94
Section 79-11-101 et seq., for the purpose of owning and 95
operating rural waterworks fails to hold an annual meeting, no 96
corporate action taken after the date stated in or fixed in 97
S. B. No. 2313 *SS08/R74* ~ OFFICIAL ~
26/SS08/R74
PAGE 5 (aa\kr)
accordance with the corporation's bylaws for the annual meeting 98
shall be valid. 99
(6) If any nonprofit, nonshare corporation chartered under 100
Section 79-11-101 et seq., for the purpose of owning and operating 101
rural waterworks fails to file timely the report required under 102
this section, the corporation may be subject to the penalties of 103
dissolution or disallowance of nonprofit status, or both, at the 104
discretion of the State Auditor. 105
SECTION 2. Section 77-3-21, Mississippi Code of 1972, is 106
amended as follows: 107
77-3-21. The commission may, after a hearing had upon due 108
notice, make such findings as may be supported by proof as to 109
whether any utility holding a certificate under the provisions of 110
this article, including any rural water company holding a 111
certificate under the provisions of this article, is rendering 112
reasonably adequate service in any area covered by such utility's 113
certificate. In the event the commission finds that such utility 114
is not rendering reasonably adequate service, the commission may 115
enter an order specifying in what particulars such utility has 116
failed to render reasonably adequate service and order that such 117
failure be corrected within a reasonable time, such time to be 118
fixed in such order. If the utility so ordered to correct such a 119
failure fails to comply with such order of the commission and the 120
commission finds that cancellation of its certificate would be in 121
the best interest of the consuming public served by the holder of 122
S. B. No. 2313 *SS08/R74* ~ OFFICIAL ~
26/SS08/R74
PAGE 6 (aa\kr)
the certificate, its certificate for the area affected may be 123
revoked and cancelled by the commission. 124
Prior to any municipality exercising the power of eminent 125
domain as provided in Section 77-3-17, the commission shall 126
determine that the certificate of public convenience and necessity 127
granted to the utility pursuant to Section 77-3-13 for the service 128
area wherein such facilities are located, shall be cancelled as 129
provided in this section. Nothing in this paragraph shall be 130
construed to include service for public water and sewage. 131
Notwithstanding Section 77-3-1(1), the commission shall have 132
jurisdiction to investigate whether any municipality that holds a 133
certificate to provide service greater than one (1) mile outside 134
its municipal boundaries is providing reasonably adequate service. 135
Following a hearing and upon making such a finding, the commission 136
shall have full authority to enter any order authorized under this 137
section, including canceling the certificate for the area that 138
extends beyond the municipalities' boundaries. 139
SECTION 3. Section 77-3-22, Mississippi Code of 1972, is 140
amended as follows: 141
77-3-22. Notwithstanding Section 77-3-1(1), if the 142
commission determines that any privately owned water and/or sewer 143
system, any rural water company or any municipally owned or 144
operated electric utility providing service greater than one (1) 145
mile outside its municipal boundaries and within its jurisdiction 146
is unable or unwilling to adequately serve its customers or has 147
S. B. No. 2313 *SS08/R74* ~ OFFICIAL ~
26/SS08/R74
PAGE 7 (aa\kr)
been actually or effectively abandoned by its owner, or that its 148
management is grossly inefficient, irresponsible or unresponsive 149
to the needs of its customers, the commission or its designated 150
representative may petition the Chancery Court of the First 151
Judicial District of Hinds County or the chancery court of any 152
county wherein the public utility does business for an order 153
attaching the assets of the privately owned water and/or sewer 154
system, rural water company or municipally owned or operated 155
electric utility and placing such system under the sole control 156
and responsibility of a receiver. If the court determines that 157
the petition is proper in all respects and finds, after a hearing 158
thereon, the allegations contained in the petition are true, it 159
shall order that the system be placed in receivership. The court, 160
in its discretion and in consideration of the recommendation of 161
the commission or its designated representative, may appoint a 162
receiver who shall be a responsible individual, partnership, 163
corporation or political subdivision knowledgeable in water, sewer 164
or electric service affairs and who shall maintain control and 165
responsibility for the operation and management of the affairs of 166
such system. The receiver shall operate the system so as to 167
preserve the assets of the system and to serve the best interests 168
of its customers. The receiver shall be compensated from the 169
assets of the system in an amount to be determined by the court. 170
Control of and responsibility for the system shall remain in 171
the receiver until the court determines that it is in the best 172
S. B. No. 2313 *SS08/R74* ~ OFFICIAL ~
26/SS08/R74
PAGE 8 (aa\kr)
interests of the customers that the system be returned to the 173
owner, transferred to another owner or assumed by another 174
operator, system or public service corporation. If the court, 175
after hearing, determines that control of and responsibility for 176
the affairs of the system should not be returned to the legal 177
owner thereof, the receiver may proceed to liquidate the assets of 178
such system in the manner provided by law. 179
In any court-initiated receivership for a municipally owned 180
or operated electric utility providing service greater than one 181
(1) mile outside its municipal boundaries, the receiver shall 182
assume the responsibilities and obligations of the municipality 183
with regard to any existing wholesale power contract. 184
Mississippi laws and Mississippi Rules of Civil Procedure 185
generally applicable to receivership shall govern receiverships 186
created under this section. 187
This section is in addition to the provisions of Section 188
77-3-21. 189
SECTION 4. Section 77-3-11, Mississippi Code of 1972, is 190
brought forward as follows: 191
77-3-11. (1) No person shall construct, acquire, extend or 192
operate equipment for manufacture, mixing, generating, 193
transmitting or distributing natural or manufactured gas, or mixed 194
gas, or water, for any intrastate sale to or for the public for 195
compensation, or for the operation of a public utility operating a 196
business and equipment or facilities as contemplated by * * * 197
S. B. No. 2313 *SS08/R74* ~ OFFICIAL ~
26/SS08/R74
PAGE 9 (aa\kr)
Section 77-3-3(d)(iii), without first having obtained from the 198
commission a certificate that the present or future public 199
convenience and necessity require or will require the operation of 200
such equipment or facility. 201
(2) No person shall construct, acquire, extend or operate 202
equipment for manufacture, generating, transmitting or 203
distributing electricity for any intrastate or interstate sale to 204
or for the public for compensation without first having obtained 205
from the commission a certificate that the present and future 206
public convenience and necessity require or will require the 207
operation of such equipment or facility. Provided, however, 208
nothing herein contained shall be construed to require a joint 209
municipal electric power agency organized in accordance with the 210
provisions of Section 77-5-201 et seq., Mississippi Code of 1972, 211
to obtain any permit, license, certificate or approval from the 212
Mississippi Public Service Commission. 213
(3) No person shall construct, acquire, extend or operate 214
equipment or facilities for collecting, transmitting, treating or 215
disposing of sewage, or otherwise operating an intrastate sewage 216
disposal service, to or for the public for compensation, without 217
first having obtained from the commission a certificate that the 218
present or future public convenience and necessity require or will 219
require the operation of such equipment or facilities. 220
(4) However, nothing herein shall be construed to require 221
any certificate of convenience and necessity from the commission 222
S. B. No. 2313 *SS08/R74* ~ OFFICIAL ~
26/SS08/R74
PAGE 10 (aa\kr)
for the production and gathering of natural gas, the sale of 223
natural gas in or within the vicinity of the field where produced, 224
the distribution or sale of liquefied petroleum gas, the sale of 225
natural gas to the ultimate consumer for use as a motor vehicle 226
fuel, or for the facilities and equipment utilized in any such 227
operations. 228
(5) Upon complaints filed by not less than ten percent (10%) 229
of the total subscribers or three thousand five hundred (3,500) 230
subscribers of a public utility, whichever is less, then the 231
commission shall hold a hearing on the adequacy of service as 232
contemplated in Section 77-3-21. 233
(6) With respect to any facility or contract for a facility 234
serving a customer under Section 77-3-271, nothing in this section 235
shall supersede the provisions of Section 77-3-271. 236
SECTION 5. Section 77-3-47, Mississippi Code of 1972, is 237
brought forward as follows: 238
77-3-47. The commission may, in addition to the hearings 239
specifically provided for by this chapter, conduct such other 240
hearings as may be deemed necessary in the administration of the 241
powers and duties conferred upon it by this title. 242
The commission shall fix the time and place of hearings and 243
shall serve notice thereof, not less than twenty (20) days before 244
the time set for such hearings, unless the commission shall find 245
that public convenience or necessity requires that such hearings 246
be held at an earlier date. The commission may dismiss any 247
S. B. No. 2313 *SS08/R74* ~ OFFICIAL ~
26/SS08/R74
PAGE 11 (aa\kr)
ST: Rural water companies; strengthen audit
requirements and expand PSC authority over.
complaint without a hearing if in its opinion a hearing is not 248
necessary in the public interest or for the protection of 249
substantial rights. Notice of all such hearings shall be given 250
the persons interested therein by mailing such notice to each 251
public utility which may be affected by any order resulting 252
therefrom and by publication in a newspaper of general circulation 253
published in Jackson, Mississippi, and, in a proceeding for a 254
facility certificate or an area certificate, by publication in a 255
newspaper of general circulation in the county or counties where 256
the facility or area is located. In addition to any other notice 257
requirements prescribed in this section, notice of a hearing 258
regarding a major change in rates and schedules, as defined in 259
Section 77-3-37(8), by a public utility of the type defined in 260
Section 77-3-3(d)(iv) shall be published in a newspaper having 261
general circulation in an area where service is being provided by 262
the public utility. 263
At the time fixed for any hearing before the commission, or 264
the time to which the same may have been continued, the 265
complainant and the person complained of shall be entitled in 266
person or by attorney to be heard and to introduce evidence. 267
SECTION 6. This act shall take effect and be in force from 268
and after July 1, 2026. 269