The Senate Energy Committee has advanced a bill that would place Jackson’s water and sewer systems under a separate utility authority. The Senate’s version of the bill passed Tuesday, though, removes the city’s majority control of the authority’s board.

Last month, the House passed a bill to create a “Metro Jackson Water Authority” to run the city’s water and sewer systems through a nine-member board. The board makeup in that version was:

• Jackson’s mayor.
• Two at-large appointees, who live or work in the service area, selected by Jackson’s mayor and subject to Jackson City Council confirmation.
• One recommended member each from the mayors of Ridgeland and Byram. Jackson’s mayor would appoint those two subject to Jackson City Council confirmation.
• Two at-large appointees from the governor who live or work in the service area.
• One at-large appointee, who lives or works in the service area, from the lieutenant governor.
• The president, or a designee, of the Greater Jackson Chamber of Commerce.

But in the Senate committee’s version, the mayors of Ridgeland and Byram would make direct appointees to the board, rather than have them screened by Jackson’s mayor and City Council. The new version also replaces the Chamber of Commerce appointee with another named by the governor with advice from the Jackson mayor. That appointee would also need approval from the state Senate.

Sen. Joel Carter, a Republican from Gulfport and chair of the Energy Committee, said Ridgeland and Byram —which receive sewer and water service from Jackson, respectively — deserve better representation than they had in the House bill.

“If they appoint someone but it’s at the (Jackson) mayor’s discretion, that’s not a true representation of that area,” Carter said, adding he also wasn’t comfortable with the Greater Jackson Chamber of Commerce having a seat.

During the House vote, Rep. Fabian Nelson, a Democrat from Byram, asked for an amendment to give Byram and Ridgeland direct appointments, but his colleagues on the floor voted against the change.

The new version of the bill, however, includes a “reverse repealer.” In other words, even if both chambers approve the proposal, select House and Senate leaders would have to revisit the bill later in the legislative session, which is set to end in early April.

Notably, the Senate version gives Jackson city officials direct power over only three board seats, down from five in the House version. After Tuesday’s committee meeting, Jackson Mayor John Horhn said the bill was still a work in progress and continued to push for the city having a majority of appointees.

“We own the asset,” Horhn said, adding the city would be responsible for any debt should the authority face funding shortfalls.

Despite his committee’s changes, Carter suggested during Tuesday’s meeting that such a bill was the only path forward for Jackson’s water and sewer systems.

“We’re at a position now where the (Jackson) City Council has two options, as I see it: one is bankruptcy, and one is they can work with us and we can pass this bill,” he said, explaining that if the city isn’t able to maintain payments for its roughly $200 million in water and sewer debt, it could see lenders seize Jackson’s assets.

After the meeting, the senator emphasized that the bill is still a “work in progress,” and that lawmakers will have to “work through” disagreements with the city over the board makeup.

The changes to the bill Tuesday also included the number of board votes required to increase rates or approve spending over $5 million. The authority would now just need a two-thirds board approval, rather than three-quarters as written in the House version.

JXN Water’s Ted Henifin, the interim manager of the city’s water and sewer systems, criticized the House version of the bill in a Mississippi Free Press story last week. Among other comments, Henifin pointed to the city’s ability to vote down a rate increase through their board appointees, delaying necessary water and sewer investments.

In response to the article, the city of Jackson called out the manager for “placing his thumb on the scale to kill” the proposed legislation.

“Jackson families are being asked to pay higher bills into a system that JXN Water itself describes as insolvent, with little say and limited transparency about where their money goes,” the city’s statement said. “It should surprise no one that a man who is currently cutting and managing the contracts under this fragile setup is uncomfortable with legislation that would force accountability and public oversight.”