Municipally owned energy distribution system; expand oversight.
HB 1305 requires municipalities owning utility systems (like water, electricity, or sewage) to undergo annual audits by independent third-party firms. These audits must be completed by December 1 each year, with results reported to the Public Service Commission and Public Utilities Staff. Municipal utilities that fail to comply face civil fines set by the commission. The bill directly affects all Mississippi municipalities operating public utility services, expanding oversight to ensure accountability and transparency in their operations. It takes effect July 1, 2026.
Bill status
signed
all 5 stages cleared
Introduction
Feb 2026
Committee Review
Mar 2026
House Passage
Feb 2026
Senate Passage
Mar 2026
Signed into Law
Apr 2026
Introduced Feb 12, 2026
Signed Apr 8, 2026
Maddy AI version diff · 3 comparisons
What changed between versions
As Passed the lower
→
Current version
·
4 edits
MODERATE
The bill was amended to clarify its purpose and significantly narrow the scope of mandatory annual audits for municipal utilities. Originally, all municipally owned utilities were required to undergo annual third-party audits with results reported to the state. The new version removes this blanket requirement and instead mandates audits only for utilities that receive a 'D' or 'F' health rating, a request from the mayor, or a supermajority vote from the city council. Additionally, the bill was updated to include a severability clause and a sunset provision for pending legal actions.
Scope change
The bill's scope changed from applying to all municipally owned public utilities to applying only to specific utilities meeting new eligibility criteria related to health ratings or local government requests.
ELIGIBILITY
Removed the requirement for all municipally owned utilities to undergo annual audits; now audits are required only if the utility receives a 'D' or 'F' health rating, upon request by the mayor, or upon request by a supermajority of the city council or board of aldermen.
TECHNICAL
Added a severability clause to ensure that if any part of the act is declared unconstitutional, the remaining sections remain in effect.
TIMELINE
Added a provision stating the act does not apply to any actions or proceedings pending on the effective date of the bill.
REQUIREMENT
Modified the description of the Public Service Commission's jurisdiction to clarify exclusions regarding natural gas production and distribution near production fields.
Floor votes · Senate Mar 10, 2026 · House Feb 10, 2026
How they voted
41–8
Passed · 3 other
Total votes 52
Mar 10, 2026
D
Democratic18
50% Yea
R
Republican34
94% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
18
Key actions
9
Committee
6
Amendments
2
Apr 8, 2026
Signed into law
Approved by Governor
executive
Mar 31, 2026
Lower · Passed
Conference Report Adopted
lower
Mar 30, 2026
Lower · Passed
Conference Report Filed
lower
Mar 10, 2026
Upper · Passed
Passed As Amended
upper
Mar 10, 2026
Upper · Passed
Amended
upper
Mar 3, 2026
Upper · Passed
Title Suff Do Pass
upper
Feb 17, 2026
Committee
Referred To Energy
upper
Feb 12, 2026
Introduced
Transmitted To Senate
lower
Feb 10, 2026
Lower · Passed
Passed As Amended
lower
Feb 10, 2026
Lower · Passed
Amended
lower
Jan 28, 2026
Lower · Passed
Title Suff Do Pass Comm Sub
lower
Jan 19, 2026
Committee
Referred To Public Utilities
lower
0 primary · 0 co-sponsors
Sponsors
No sponsor information available.
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