Fraudulent Utility Conversion; create crime when landlord fails to pay utilities and tenants' utilities are interrupted., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Judiciary A

By: Representatives Yates, Mansell, Felsher

House Bill 1404

(As Sent to Governor)

AN ACT TO PROHIBIT A PERSON WHO HAS RECEIVED PAYMENT IN
ACCORDANCE WITH A LEASE TO PAY UTILITY SERVICES FROM KNOWINGLY FAILING TO PAY
OR USING AN AGENT OR EMPLOYEE TO USE ANY DECEPTION TO NOT PAY THE AMOUNT OWED
TO THE UTILITY SERVICE; TO PROVIDE CRIMINAL PENALTIES; AND FOR RELATED
PURPOSES.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1.
(1)  No person who has received money or payment in
accordance with a lease contract or rental agreement to pay utility services
shall knowingly, willfully and unlawfully:

(a)  Fail to apply the
money or payment as necessary to satisfy the amount owed for the utility
services within sixty (60) days of the person's receipt of the bill for utility
services.

(b)  Use or cause an
agent or employee to use any deception, false pretense, or false promise in the
failure to apply the money or payment as necessary to satisfy the amount owed
for the utility services.

(2)  (a)  When the
misappropriation or taking amounts to a value of Twenty-five Thousand Dollars
($25,000.00) or more, the offender, upon conviction, shall be imprisoned for
not more than twenty (20) years, fined not more than Fifty Thousand Dollars
($50,000.00), or both.

(b)  When the
misappropriation or taking amounts to a value of Five Thousand Dollars
($5,000.00) or more, but less than a value of Twenty-five Thousand Dollars
($25,000.00), the offender, upon conviction, shall be imprisoned for not more
than ten (10) years, fined not more than Ten Thousand Dollars ($10,000.00), or
both.

(c)  When the
misappropriation or taking amounts to a value of One Thousand Dollars
($1,000.00) or more, but less than a value of Five Thousand Dollars
($5,000.00), the offender, upon conviction, shall be imprisoned for not more
than five (5) years, fined not more than Three Thousand Dollars ($3,000.00), or
both.

(d)  (i)  When the
misappropriation or taking amounts to less than a value of One Thousand Dollars
($1,000.00), the offender, upon conviction, shall be imprisoned for not more
than six (6) months in the county jail, fined not more than One Thousand
Dollars ($1,000.00), or both.

(ii)  If the
offender convicted under subparagraph (i) of this paragraph has been convicted
two (2) or more times previously, upon any subsequent conviction, the offender
shall be imprisoned for not more than two (2) years, fined not more than Two
Thousand Dollars ($2,000.00), or both.

(e)  In addition to the
penalties provided in paragraphs (a) through (d) of this subsection, a person
convicted under the provisions of this section shall be ordered to make full
restitution to the victim and any other person who has suffered a financial
loss as a result of the offense pursuant to Chapter 37, Title 99, Mississippi
Code of 1972.

(3)  The provisions of this
section shall not apply if the person who has received money or payment for
utility services is unable to pay the bill for utility services because either:

(a)  The tenant or
lessee has failed to timely pay sufficient funds to satisfy the specific amount
owed in the bill for utility services.

(b)  The reason for the
delay in receipt of either the bill or payment for utility services is due to
an administrative, clerical, or technical error or omission on behalf of the
company providing utility services.

(4)  For purposes of this
section:

(a)  "Person"
means a natural or juridical person, including, but not limited to, a sole
proprietorship, corporation, company, limited liability company, partnership,
limited liability partnership, trust, incorporated or unincorporated
association, or any other individual or entity.  "Person" shall also
include any representative, director, trustee, agent, or officer of a juridical
person who is authorized and responsible for making payments for utility
services.

(b)  "Utility services"
means any water, electricity, gas, heat, or sewer services, whether privately,
municipally, cooperatively, or investor-owned.

SECTION 2.
This act shall take effect and be in force from and after its passage.