Jackson Jambalaya

 Landlords can go to prison if they embezzle tenant's money meant for utilities after the legislature passed HB# 1404 today.   

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 today on a vote of 114-8.  The bill will go to the Governor.  He is expected to sign the bill.   

Ms. Yates was pleased: 

I think it's an important piece of legislation that holds landlords accountable - many of whom are slumlords if we are being honest. Most of the tenants impacted by this sort of conduct are low income individuals who cannot afford to file civil suits against their landlord. At the end of the day if apartment complex owners are not remitting payment for thousands of dollars in water bills, it's those of us in single family homes who pay our bills that are left holding the bag when rate increases hit. This legislation is aimed at taking a step toward rectifying that issue for everyone impacted

Kingfish note: Good job, legislature.  Landlords who pocket the money their tenants pay for utilities are embezzling and should be prosecuted.  Mayor Horhn and others asked for this bill so let's see if they do something after it become law.