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HB337 ENROLLED
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HB337
XDYIT7E-3
By Representatives Whitt, Reynolds, Rigsby, Lomax, Moore (P),
Lands, Whorton, Hall (Constitutional Amendment)
RFD: Madison County Legislation
First Read: 27-Jan-26
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First Read: 27-Jan-26
Enrolled, An Act,
To propose an amendment to the Constitution of Alabama
of 2022, relating to Madison County, to bring certain
privately owned sewer systems that use public rights-of-way of
public roads under the jurisdiction of the Public Service
Commission under certain conditions.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. The following amendment to the Constitution
of Alabama of 2022, is proposed:
PROPOSED AMENDMENT
(a) This amendment shall apply only in Madison County.
(b) Except as provided in subsection (c), any privately
owned entity operating a plant, property, or facility that
collects, treats, or disposes of sewage shall be certified and
regulated by the Public Service Commission, including
regulation of the rates, charges, and increases in rates or
charges imposed on customers if the private entity does all of
the following:
(1) Uses, directly or through a lease or contract,
public rights-of-way of public roads for any part of its
collection or disposal system.
(2) Discharges to a Grade I, II, III, or IV wastewater
treatment facility as defined in and by the classification
system used by the Alabama Department of Environmental
Management on January 1, 2020, and its equivalent
classification thereafter.
(3) Bills residential or commercial customers a flat
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(3) Bills residential or commercial customers a flat
service fee or a fee based on water usage.
(c)(1) The Public Service Commission shall certify and
regulate all privately owned entities described in subsection
(b) in accordance with Title 37, Code of Alabama 1975.
Implementation of this amendment, whether gradual or at one
time, shall be determined by the Public Service Commission.
Until the Public Service Commission determines applicable
rates and charges to be imposed on customers, the rates and
charges shall be in accord with and governed by the most
recent and controlling rate control agreement, or in the event
there is not a controlling rate control agreement, the private
entity's most recent published rate on the effective date of
this amendment.
(2) The Public Service Commission, when determining the
rates and charges to be imposed on customers of privately
owned entities described in subsection (b), shall exclude from
the calculation of contribution in aid of construction, as
defined in 26 U.S.C. § 118, any fees or charges, including
connection fees, tap fees, and capacity payments, which are
paid by the customers in order to connect to the utility
system, if the entity pays state or federal taxes on the fees
or charges.
(d)(1) If the county or a municipality or governmental
utility service corporation (GUSC) in the county enters into a
rate control agreement with a privately owned entity described
in subsection (b), the county, municipality, or GUSC may opt
out of regulation by the Public Service Commission as to and
for any residential or commercial customers affected by, and
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for any residential or commercial customers affected by, and
are subject to, the rate control agreement.
(2) If a rate control agreement or any part thereof is
found to be invalid, is terminated by the county,
municipality, or GUSC that entered into the rate control
agreement, or becomes unenforceable or void in whole or in
part, then the jurisdiction of the Public Service Commission
and the provisions in subsection (c) pertaining to regulation
by the Public Service Commission shall by operation of law be
restored and enforced to the full force and effect of this
amendment.
(e) If Public Service Commission jurisdiction is
restored after the county, municipality, or GUSC has exercised
its opt out provision provided in subsection (c) and has
voluntarily terminated the rate control agreement, the county,
municipality, or GUSC may not again exercise its power to opt
out of Public Service Commission jurisdiction and rate control
for a period of five years from the date that Public Service
Commission jurisdiction is reinstated.
(f) If a privately owned entity described in subsection
(b) serves customers located in more than one municipality,
the opt out option provided in subsection (c) shall vest with
the municipality that has a rate control agreement executed as
of or prior to January 1, 2026, subject to approval of the
Madison County Commission.
Upon ratification of this constitutional amendment, the
Code Commissioner shall number and place this amendment as
appropriate in the constitution omitting this instructional
paragraph and may make the following nonsubstantive revisions:
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paragraph and may make the following nonsubstantive revisions:
change capitalization, hierarchy, spelling, and punctuation
for purposes of style and uniformity; correct manifest
grammatical, clerical, and typographical errors; revise
internal or external citations and cross-references; harmonize
language; and translate effective dates.
END PROPOSED AMENDMENT
Section 2. An election upon the proposed amendment
shall be held in accordance with Sections 284, 284.01, and 285
of the Constitution of Alabama of 2022, and the election laws
of this state. The appropriate election official shall assign
a ballot number for the proposed constitutional amendment on
the election ballot and shall set forth the following
description of the substance or subject matter of the proposed
constitutional amendment:
"Relating to Madison County, proposing an amendment to
the Constitution of Alabama of 2022, to bring under the
jurisdiction of the Public Service Commission certain
privately owned sewer systems that use public rights-of-way of
public roads under certain conditions.
Proposed by Act ____."
This description shall be followed by the following
language:
"Yes( ) No( )."
Section 3. The proposed amendment shall become valid as
part of the Constitution of Alabama of 2022, when approved by
a majority of the qualified electors voting thereon.
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a majority of the qualified electors voting thereon.
________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 17-Feb-26, as amended.
John Treadwell
Clerk
Senate 31-Mar-26 Amended and Passed
House 31-Mar-26 Concurred in Senate
Amendment
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