Mississippi 2026 Regular Session

Mississippi Senate Bill SB2786

Introduced
1/19/26  
Refer
1/19/26  

Caption

Water districts; allow for dissolution and reorganization as association.

Impact

This legislative change significantly impacts how utility districts are formed and dissolved in Mississippi. By allowing landowners to initiate dissolution, the bill provides a method for communities to eliminate ineffective or unnecessary districts. Should a district dissolve, its powers cease, thus potentially streamlining utility governance in certain areas. The stipulations regarding the management of debts and obligations during the dissolution process aim to protect the interests of landowners by delineating the authority of the chancery court in these matters.

Summary

Senate Bill 2786 amends Section 19-5-151 of the Mississippi Code of 1972 to provide an avenue for certain utility districts to dissolve. The bill allows a majority of landowners within a utility district to petition for its dissolution by filing with the clerk of the chancery court where the district was organized. If the court finds in favor of dissolution, it sets the process for disbanding the district and managing any remaining obligations and assets. Additionally, if the water district chooses to form a water association, the dissolution order will facilitate this transition under the Mississippi Nonprofit Corporation Act.

Contention

Some points of contention surrounding SB2786 may revolve around concerns about the implications of these procedural changes. Opponents could argue that the ability to dissolve districts without a thorough discussion may lead to hasty decisions, undermining established services. They might express concerns about the adequacy of alternative service provisions following dissolution, particularly in areas that rely heavily on district-managed utilities. Furthermore, the legislative amendments involving the transition to a water association could attract scrutiny regarding the adequacy of regulatory oversight in these new formations.

Companion Bills

No companion bills found.

Previously Filed As

MS HB1348

Wastewater treatment and rural water associations; bring forward provisions related to.

MS HB1088

Municipalities and counties; authorize to purchase water associations.

MS HB1569

Water districts; authorize Public Service Commission to investigate fairness of rates and to mediate disputes between districts.

MS HB943

Public Service Commission; authorize to intervene in, arbitrate and/or mediate rate conflicts between water associations and rate payers.

MS HB1185

Local municipal water authorities and water associations; authorize to bottle and sell certain water.

MS SB3268

Bolivar County; authorize to create utility district to own, control, operate and maintain Choctaw Sewer Association system.

MS SB2836

Local governments; allow local governments and schools to publish notices on their websites in addition to newspapers.

MS SB2832

County website; allow counties without local newspapers to publish certain notices on.

MS SB2274

Open Meetings Act; include rural water associations within the definition of public body.

MS SB3256

Tishomingo County Water District; amend provisions concerning compensation and reimbursement.

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