Fraudulent Utility Conversion; create crime when landlord fails to pay utilities and tenants' utilities are interrupted.
Mar 25, 2026 · Signed
Gov. Tate Reeves · Signed
FactVote reviewed summary
Tate Reeves signed HB 1404. Tate Reeves signed HB 1404. HB 1404 creates an offense for a person who receives money under a lease to pay utility bills and knowingly, willfully and unlawfully fails to apply it as required, with the failure-to-pay deadline measured as 60 days from receipt of the utility bill, or uses deception. It provides graduated penalties and restitution, with exceptions for insufficient tenant payments and specified utility-company errors. This concerns rental utility payments rather than setting rents.
Approved by Governor on 2026-03-25. Enactment, effective dates, implementation and current enforceability are distinct.
Why this record is included
Gross rent includes contract rent and estimated tenant-paid utilities and fuel. Rental utility-payment duties and notice-to-vacate rules concern tenancy and housing costs without establishing a change in the statewide median. This connection does not establish causation. Actions after the measurement period cannot explain the earlier observed value.
Retained Mississippi evidence context: Median gross rent. This record’s connection to the topic does not establish an effect on the measured result.
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.Review official supporting evidence ↗