Jackson Jambalaya

The House passed HB #1404 yesterday.  The bill allows the prosecution of landlords who embezzle tenant's money meant to pay for utilities.  

The need for such legislation arose last year when it became known several apartment complexes such as Blossom Apartments and Tracewood Apartments owed hundreds of thousands to a cash-starved JXN Water. One complex even admitted in court it collected the utility payments from tenants but then spent the money elsewhere. There was little prosecutors could do about what is arguably embezzlement while collection efforts became tied up in court

The crime of "fraudulent utility conversion" is committed when a landlord receives payment for utilities from a tenant but fails to pay such utilities to the provider of the utilities and the provider interrupts the tenant's utility services as a result of the landlord's failure to pay.

The penalties for fraudulent utility conversion are determined by the total amount embezzled: 

< $1,000: Up to 5 years in prison and/or a fine up to $3,000

$5,000 - $25,000: Up to 10 years in prison and/or a fine up to $10,000

>$25,000: Up to 20 years in prison and/or a fine up to $50,000. 

The bill also provides relief to tenants who are chained to an unscrupulous landlord: 

5) Failure of a landlord to pay utility service charges that are required to be paid by the landlord in accordance with the lease and/or written agreement between the landlord and tenant that creates an interruption of a tenant's utility service shall be grounds to terminate the lease, unless the interruption results from bona fide repairs, construction, or an emergency.

The House passed the measure by a vote of 85-24.  

Kingfish note: It is rather disappointing to see most of the black caucus vote to protect thieving landlords.  They are always shrieking about how their people are victimized yet when push comes to shove, they do not want to do anything to protect or help Jackson's water system.  All but 1 of the 24 nay votes were Black Caucus members.  It makes one wonder if maybe some of those voting against the bill are landlords themselves who well, you can figure the rest out.  

Fortunately, Black Caucus Representatives Omeria Scott, Zakiyah Summers, Ronnie Crudup, Jr., Stephanie Foster,  and Rodney Hall looked out for their constituents and voted for the bill.  

One must admit it was funny seeing Fabian Nelson vote against the bill. Nothing like a deadbeat protecting deadbeats.  

The bill is patterned after a similar bill in Louisiana.  The Louisiana legislature passed the legislation last year after cities found they were unable to prosecute such landlords when they owed large sums of money to utilities even though they had collected the money from tenants.  Earlier post with copy of the bill. 

The Louisiana bill passed unanimously.  Yup, even the Louisiana Legislative Black Caucus got on board.  It should have been a unanimous vote in Mississippi.  The Republicans will vote for it because they don't like deadbeats.  The Black Caucus should vote for it as it protects their people from unscrupulous landlords.  

Naturally, some Jackson landlords shrieked.  WLBT reported: 

Some property owners and apartment advocates have raised concerns about the bill. 

Jennifer Welch, CEO and founder of Vesica Real Estate, said she cannot wholeheartedly support the bill when Jackson landlords continue to report billing discrepancies with JXN Water. 

“A bill like this seems to assume the fault falls on the landlord when I am aware that the issues are more nuanced,” she said. “I hope that JXN Water and landlords continue to work together to resolve operational challenges and restore faith in the billing system.” Article

Oh yes, the nuancing of the issues.   Try this nuance: Landlord does not pay bill.  Landlord pockets money paid by tenants for water/sewer service.  Landlord gets prosecuted.  This is not hard.  Of course, claiming billing discrepancies is a favorite trick of deadbeats to delay payment.   

WLBT continued: 

Mississippi Apartment Association (MAA) Executive Meghan Elder was concerned that the bill may penalize landlords who do not collect enough to cover their water and sewer costs....

“MAA supports legislation that provides clear, enforceable standards to punish landlords who accept tenant funds intended to cover water bills but do not apply these amounts toward valid water charges,” Elder said. “[We welcome] the opportunity to work with legislators to better identify those landlords whose actions regarding water bills merit prosecution.” 

That's more like it.  However, one must ask how does Mr. Elder propose the legislature should "better identify" deadbeat landlords?  Shouldn't that be the job of the utility and District Attorney?  If the landlords do not collect enough to "cover their water and sewer costs", shouldn't they raise the rent? 

Oh well, now it is on to the Senate where it will hopefully do the right thing and pass the bill.