MS HB697

Exempts eligible homeowners associations from Public Service Commission regulation when distributing water to their residents, even if located in areas with municipal water certificates.

Defines "eligible municipality" as any municipality with population greater than 100,000 that has been subject to EPA litigation for Safe Drinking Water Act violations.

Defines "eligible homeowners association" as any homeowners association created and governed by restrictive covenants located in part or whole within an eligible municipality.

Requires eligible municipalities to sell water assets (main lines, service lines, meters, and related infrastructure) to homeowners associations at fair market value determined by independent appraisal if the association elects to provide water service.

Grants homeowners associations automatic easement rights in municipal roads and rights-of-way to repair, replace, or improve water assets, while municipalities retain obligation to provide sewer services and emergency fire suppression.