Mississippi enacts law criminalizing landlord mishandling of utility payments
Mississippi Gov. Tate Reeves has signed into law a measure criminalizing landlords who collect utility payments from tenants but fail to remit the funds to providers. The law, which took effect immediately, carries penalties including prison time and fines for violations, according to state officials.
The legislation was prompted by recent cases in Jackson where tenants faced water shutoffs after landlords racked up unpaid bills. House Bill 1404, authored by Rep. Shanda Yates, an independent from Jackson, seeks to address such issues. Yates told lawmakers that some landlords are charging tenants for utilities but not forwarding the payments, leading to service disconnections despite tenants paying.
The law stipulates that individuals who collect and fail to remit more than $25,000 in utility payments could face up to 20 years in prison and a $50,000 fine. For amounts between $5,000 and $25,000, penalties include up to 10 years in prison and a $10,000 fine. Smaller misappropriations also carry penalties, and offenders must pay restitution to victims.
The law clarifies that it does not apply to delays caused by tenants’ late payments or utility errors. In July, JXN Water cut off water service to Blossom Apartments after the landlord accumulated over $400,000 in unpaid bills. Tenants were displaced after the property was deemed uninhabitable. Similar issues arose at the Chapel Ridge apartments, and citywide, multi-family complexes owe more than $7.5 million in water bills, according to JXN Water.
Legal disputes continue between the owner of Blossom Apartments and JXN Water, with lawsuits ongoing. Recently, a bank involved in financing the complex requested a receiver to manage the property, according to WLBT. The bill was amended in the Senate to specify that misuse of utility payments must be done “knowingly, willingly and unlawfully” before passing the House with a vote of 100-14.
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