Landlords who pocket tenants' money meant for utility payments can now face criminal prosecution after Governor Tate Reeves signed HB# 1404 into law today. The bill is effective immediately.
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 bill passed the Senate unanimously. The measure passed the House on a vote of 100-14.
15 comments:
Best piece of legislation to come out of this state in decades.
Landlords who don’t meter separately will now require a $500 deposit for water and leases now change to include arbitration of any issues relative to water bills and further an affidavit stating tenant understands they’ve paid a deposit for water and that tenant waives any and all claims and shall copy the DA office on statements monthly that the water bill has been paid in full and tenant is fully satisfied with landlord services.
Now we need one that says if a tenant fails to pay rent for 2 months and remains on the premises he should go to Jail for 1 year
Good. There are far too many slumlords in Jackson.
barn door closed after cow escapes-
There are apparently 14 IDIOTS in the house who endorse landlords committing this fraud. I bet they are all democrats.
A new law that makes it illegal to steal … novel idea.
The Lord works in mysterious ways.
Good luck getting a part time DA to prosecute.
Mississippi always leads the way!
At the moment the Hinds DA will prosecute anything hoping that will negate all the video evidence he is about to confront in court.
3:13 - You can be sure those 14 House members voted their consciences -- after whiskey and steak at Tico's, that is.
Nobody goes to tico’s anymore. That trend ended long before you ever heard about it
3:13 - Yep.
https://legiscan.com/MS/rollcall/HB1404/id/1624807
Can a landlord be guilty of embezzlement if he takes from his own bank account and spends it on the facility named on the account?
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