HB555 Alabama 2019 Session

Summary

Primary Sponsor

Rod Scott

Democrat

Session

Regular Session 2019

Title

Public utilities, creates - program for State of Alabama to serve as a guarantor for utility deposits under certain conditions

Summary

The bill would create a state-run program to guarantee utility deposits for recent Alabama graduates who move to Alabama near their employer.

What This Bill Does

It would establish a program run by the Alabama Commission on Higher Education (ACHE), with input from the Alabama Department of Commerce, to issue vouchers that cover security deposits for participating utilities so eligible graduates can start service without paying upfront deposits. Eligible participants are Alabama college graduates who have a written full-time job offer in Alabama within 60 months of graduation and are establishing a new home in Alabama near that employer. Each voucher covers one type of utility, and utilities must honor the voucher; if a recipient defaults on a payment to a utility, the program will reimburse that utility but won’t issue future vouchers for that utility. The program may seek collections from recipients by methods such as tax refund offsets, wage garnishment, liens, or collection agencies, and is funded by state appropriations with a treasury fund for payments and collections; administrative costs may be kept up to 7.5% of the appropriation, and rules may be adopted to run the program.

Who It Affects

• Recent Alabama college graduates who have a written full-time job offer in Alabama within 60 months of graduation and are establishing a new domicile near their employer; they could receive vouchers to cover utility deposits.
• Utilities operating in Alabama that participate in the program; they would accept vouchers in lieu of upfront deposits for eligible recipients and may be reimbursed by the state for defaults.

Key Provisions

• Creates a state program, run by the Alabama Commission on Higher Education (ACHE), to guarantee utility deposits for eligible participants, with implementation help from the Alabama Department of Commerce.
• Defines eligibility: a graduate of an Alabama college/university, with a written full-time job offer in Alabama within 60 months of graduation, and establishing a new domicile in Alabama near the employer.
• ACHE issues a voucher for each type of utility; vouchers are single-use and utilities must honor them so the recipient does not pay an upfront deposit; only one voucher per utility type is allowed per recipient.
• If a recipient defaults to a utility, the program reimburses that utility but will not issue future vouchers for that utility; enrollment does not guarantee service, and eligibility to start service remains with the utility.
• ACHE maintains a list of participating utilities; the program is not a bill-paying service and does not resolve disputes between recipients and utilities.
• A State Treasury fund is established to help pay defaults and collect payments from recipients; the program may use collections methods including withholding of tax refunds, wage garnishment, property liens, or debt collection agencies.
• Implementation depends on state appropriation; funds are non-reverting; ACHE may retain up to 7.5% of the appropriation for administrative costs; ACHE may adopt rules to implement the act.
• The act becomes effective on the first day of the third month after passage/approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Public Utilities