Mississippi Bill Would Criminalize Landlords for Misusing Tenants' Utility Payments

Proposed legislation would establish penalties for landlords who fail to pay utility bills despite collecting rent that includes utilities.

Jan. 29, 2026 at 8:55pm

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A bill has cleared a Mississippi House committee that would create the crime of 'fraudulent utility conversion' for landlords who are convicted of stealing money that renters pay for water, electricity, and other utilities. The measure establishes a tiered system of fines and jail time based on the amounts involved, and would require landlords to reimburse tenants for any misused funds.

Why it matters

This legislation aims to address a growing issue in Jackson, Mississippi, where some landlords have failed to pay utility bills despite collecting rent that includes utility costs from tenants. This has led to utility shutoffs that have impacted vulnerable residents, highlighting the need for stronger protections for renters.

The details

The bill, H.B. 1404, was authored by District 64 Rep. Shanda Yates after hearing from constituents about landlords who were not remitting utility payments to the city despite collecting that money from tenants. Under the proposed law, landlords convicted of embezzling $25,000 or more could face up to 20 years in prison, $50,000 in fines, or both. Offenders would also be required to reimburse tenants for all misused funds.

  • The Judiciary A Committee passed H.B. 1404 on Thursday.
  • The deadline for general bills to be voted out of committee is Tuesday.

The players

Shanda Yates

District 64 Representative who authored the measure after hearing from constituents about landlords misusing utility payments.

Lashia Brown-Thomas

Ward Six Councilwoman who supports the bill, saying tenants shouldn't have to suffer due to others' mismanagement.

Tony Little

Owner of the Blossom Apartments complex, which had its water shut off last year after failing to pay over $400,000 in past-due utility bills.

JXN Water

The city's water utility, which has filed suit against the Blossom Apartments complex for failing to pay its bills despite residents continuing to pay rent that included utilities.

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What they’re saying

“You've seen stories about past-due water bills that are tens of thousands of dollars. All of those tenants paid their rent, and their rent included utilities. Owners were simply not remitting [that] to the utility companies.”

— Shanda Yates, District 64 Representative

“If these people are paying rent, and the utilities are added in the rent, the apartment should be responsible.”

— Lashia Brown-Thomas, Ward Six Councilwoman

What’s next

The deadline for general bills to be voted out of committee is Tuesday, so the Mississippi House will need to act quickly if they want to pass this legislation.

The takeaway

This proposed law aims to protect vulnerable tenants in Mississippi who have suffered from landlords misusing the utility payments included in their rent. If passed, it could serve as a model for other states looking to crack down on this practice and ensure renters are not left without essential services due to their landlords' misconduct.