HB169 Alabama 2020 Session

Summary

Primary Sponsor

Rod Scott

Democrat

Session

Regular Session 2020

Title

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

Summary

HB 169 would create a state program to guarantee utility deposits for Alabama graduates who start a new job near their employer, reducing upfront costs to begin utility service.

What This Bill Does

It creates a program through the Alabama Commission on Higher Education to guarantee utility deposits for eligible graduates establishing residence in Alabama near an employer. Eligible participants receive vouchers for each utility type (electric, gas, water/sewer, trash) so they can start service without paying a deposit, with vouchers usable for one-time deposits. If a participant defaults on payments, the program will reimburse the utility and may pursue repayment from the participant through methods like tax refund withholding, wage garnishment, liens, or debt collection agencies. The program relies on state funding, requires the adoption of rules, and will maintain a list of participating utilities.

Who It Affects

• Eligible graduates who have a full-time job offer in Alabama within 60 months of graduation and who establish a new domicile in Alabama near their employer, who may receive guaranteed utility deposits via vouchers.
• Utilities that participate in the program, which would not require deposits from voucher holders and may be reimbursed by the program for defaults; they must honor valid vouchers and only one voucher per utility type per recipient.
• The Alabama Commission on Higher Education and the Department of Commerce, which administer the program, issue vouchers, and set rules and participating utility lists; state taxpayers may be affected by collections to recover defaults.

Key Provisions

• Establishes a program administered by the Alabama Commission on Higher Education to guarantee utility deposits for eligible participants.
• Eligibility criteria include: a graduate of an Alabama college/university, a full-time job offer in Alabama within 60 months of graduation, and establishing a new domicile in Alabama for the job.
• Voucher system: one voucher per utility type per participant; vouchers allow starting service without a deposit and become invalid after use; utilities must honor vouchers and record them.
• If a participant defaults, the program reimburses the utility and may seek repayment from the participant by means such as withholding tax refunds, wage garnishment, liens, or debt collection agencies.
• Funding and administration: dependent on state appropriation; funds are non-reverting; up to 7.5% of appropriation may be kept for administrative costs; a list of participating utilities must be maintained.
• Not a bill paying service and does not replace regular utility payments by participants; program participation requires meeting service initiation criteria for each utility.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Public Utilities