Bill > SB2526

This bill establishes the Mississippi Rural Water Oversight Committee, comprised of representatives from various state and federal agencies, as well as gubernatorial and lieutenant gubernatorial appointees, to oversee rural water providers. Key provisions require these providers, by December 1, 2027, and every five years thereafter, to obtain rate studies (evaluating costs for operations, debt, reserves, depreciation, and future capital expenses) and capacity studies, and to implement recommended rate adjustments within a year, with potential for phased increases for significant hikes. Providers must also develop an asset management plan by the same date, detailing the condition and needs of their infrastructure. The Committee is authorized to create rules for these studies and plans, and to hire three employees to assist providers, with their salaries funded by a portion of the Local Governments and Rural Water Systems Improvements Revolving Loan Fund. Providers must set aside at least 5% of gross revenues for refurbishment and replacement, and the Committee will maintain an approved list of entities qualified to conduct rate studies. Before undertaking major development projects (exceeding 20% of gross revenues), providers must conduct or amend a rate study. Rate studies must be filed annually with the State Auditor. The bill defines "fiscal distress" for providers, which includes failing to obtain or implement rate studies or being found in significant noncompliance due to inadequate funds. The Mississippi State Department of Health will maintain a list of distressed providers, who must then file an improvement plan with the Committee. Fiscally distressed providers are prohibited from receiving certain state financial assistance until an approved improvement plan is in place, and their board members may be removed. Providers operating at 75% capacity must plan for upgrades. The bill also amends Section 41-3-16 of the Mississippi Code to specify that the salaries of the three employees hired by the Committee will be paid from the Local Governments and Rural Water Systems Improvements Revolving Loan Fund, with this provision set to expire on July 1, 2031.

Agriculture and Natural Resources, Transportation and Infrastructure

https://billstatus.ls.state.ms.us/2026/pdf/history/SB/SB2526.xml