Legislation to hold landlords accountable for paying utility bills heads to governor

• The bill’s author, State Rep. Shanda Yates, described the bill as a “great piece of legislation.” She said landlords not paying utility bills when part of a person’s rent is an issue across the Magnolia State.

Legislation to ensure utilities are paid that are included in a person’s rent or lease has cleared its final hurdle in the Mississippi Legislature and is now on its way to the governor’s desk.

The measure seeks to hold landlords criminally responsible for collecting utility fees but not paying the bill.

HB 1404 outlines the penalties that property owners face for not paying those utilities. If the misappropriated funds are $25,000 or more, the penalties include upwards of 20 years in prison and a $50,000 fine. For $5,000 but less than $25,000, the penalties could include 10 years in prison and $10,000 fines. A landlord who has misappropriated more than $1,000 but less than $5,000 could spend 5 years in prison and pay a $3,000 fine. For a property owner who has misappropriated less than $1,000, the penalty would be $1,000 and six months in jail.

Courts could also levy additional penalties against the landlord, including compensation for costs linked to the disruption of services, such as food and medical expenses, House bill reads.

The bill’s author, State Rep. Shanda Yates (I), described the bill as a “great piece of legislation,” saying this is an issue across the Magnolia State.

“This is an issue on the Coast. This is an issue in various places that have large apartment complex communities. Of course, it came to a head in Jackson, as so many things do, and we sort of uncovered the issue in that way,” Yates said, referring to the several low-income apartment complexes where water was shut off last year in the capital city.

During a February Senate Judiciary B Committee hearing, members expressed concern about utilities not sending bills, out-of-state property owners not knowing of an outstanding bill, or payments not being processed promptly, all issues that Jackson landlords have complained about as the court-appointed interim manager has sought to resolve years of billing and water system issue in Jackson. One Jackson apartment complex reportedly had a $910,000 outstanding water bill while another was upwards of $40,000.

The Senate committee decided to add the phrase “knowingly, willfully, and unlawfully” to the bill to describe the actions of property owners who fail to pay the utility bills. The committee also substituted language where property owners will not be fined if renters do not pay their rent on time or if payment was delayed for administrative, technical or clerical errors on behalf of the utility provider.

Governor Tate Reeves (R) now has until March 26 to sign, veto, or allow the bill to become law without his signature. His office has not indicated whether he intends to sign the legislation. Once the bill becomes law, it goes into effect immediately.