MS SB2856

Allows municipalities with a population of 150,000 or more to establish programs addressing disputed or delinquent water and sewer customer accounts through adopted rules and procedures.

Permits municipalities to compromise doubtful claims limited to: municipal errors where customer did not receive service benefits, and customer hardships due to unforeseen circumstances (damage, weather, disaster, evacuation) where service was not received.

Authorizes municipalities to offer impoverished customers installment payment agreements for overdue water and sewer balances, with option to reclassify remaining unpaid balances as uncollectible through accounting procedures if customer fulfills the installment plan.

Clarifies that accounting adjustments do not constitute forgiveness of uncollectible debts and that municipalities may consider collateral estoppel principles in setting program parameters.

Amends Mississippi Code Sections 31-19-27 and 31-19-29 to include municipal utility system debts as doubtful claims and restrict municipal water and sewer debt compromise authority to the provisions established in this act.