HB169 Alabama 2020 Session

Under current law, utilities operating in the state are authorized to require a cash deposit from a prospective customer for the purpose of guaranteeing final payment, require that deposit prior to beginning service or coincident with the first monthly bill, and withhold or discontinue utility services if a deposit is not made at the time specified by the utility

This bill would establish the State of Alabama as a guarantor of utility deposits for Alabama residents who recently graduated from a postsecondary institution and who are establishing a new residence for the purpose of being nearer to their employer

This bill would authorize the Alabama Commission on Higher Education to adopt rules to implement this act, in consultation with the Alabama Department of Commerce

Relating to public utilities; to provide a mechanism for the State of Alabama to guarantee utility deposits for Alabama residents who recently completed postsecondary education within a specified period of time following their graduation date; to provide a mechanism for the state to make payment to utilities for program participants who default on their utility bills; and to authorize the state to seek collections from program recipients who default on their financial obligations to utility companies by any means available, including the withholding of income tax refunds, garnishment of wages, the placement of liens on property, or the use of debt collection agencies.

Section 1

As used in this act, the following terms shall have the following meanings: (1) ELIGIBLE PARTICIPANT. A graduate of an Alabama public or private college or university who satisfies all of the following: a. Has been offered a full-time position, in writing, from an employer in the State of Alabama within 60 months of his or her graduation date. b. Is in the process of establishing a new domicile within the State of Alabama for the purposes of that full-time employment, or has established a new domicile for those purposes within the 30 days prior to the date of application. (2) PROGRAM RECIPIENT. An eligible participant who meets all criteria set forth by the Alabama Commission on Higher Education for participation in the program. (3) UTILITY. A defined organization that offers electricity, natural gas, water, sewage, or trash collection services and requires a security deposit or guarantor for a new customer to receive those services. For the purposes of this act, the term does not include telecommunications or transportation-related utilities.

Section 2

(a) The Alabama Commission on Higher Education shall establish and administer a program through which the State of Alabama may guarantee utility deposits for qualified eligible participants. Any Alabama resident may apply to the Alabama Commission on Higher Education to become a program recipient. (b) Prior to enrollment in the program, the Alabama Commission on Higher Education shall verify that an applicant is an eligible participant for the program and meets all criteria to become a program recipient. (c) Upon verification that an applicant satisfies all criteria for the program, the Alabama Commission on Higher Education shall issue a voucher to the program recipient for each utility. The voucher shall declare that the Alabama Commission on Higher Education guarantees the utility deposits for that program recipient. (1) Upon receipt of a valid voucher, a utility shall not require a utility deposit from that program recipient before beginning service. (2) A voucher shall only remain valid for one use, and shall be collected, filed, and maintained by a utility at time of receipt. (d) The Alabama Commission on Higher Education shall only issue one voucher for each type of utility service to each program recipient. (1) If the residence of a program recipient has two meters for one type of utility service, the program voucher shall only be valid for one meter. (2) If a program recipient defaults for payment with one utility, the program shall reimburse the utility for that default, but shall not issue any future voucher for that type of utility for that program recipient. The program shall continue to honor any voucher with any utility that holds the program recipient in good standing. (3) If, after receiving a voucher for a utility deposit, a program recipient changes residences and, therefore, must pay a new deposit for that same type of utility, the program shall not issue a voucher for that second deposit, whether or not that deposit is with the same utility as the first deposit. (e) The program shall not be a bill paying service, nor shall it be a substitute for any payment the program recipient owes a utility company. Recipients are responsible for payment in full by the dates specified by the utility. (f) Enrollment in the program or use of a voucher by a program recipient shall not automatically guarantee service from any utility. Each eligible participant must also meet the criteria for initiating service of each utility.

Section 3

The Alabama Commission on Higher Education shall maintain a list of all utilities that have agreed to allow the State of Alabama to serve as a guarantor.

Section 4

(a) The Alabama Commission on Higher Education may seek collections from program recipients who default on their financial obligations to utility companies by any or all means available, including the withholding of income tax refunds, garnishment of wages, the placement of liens on property, or the use of debt collection agencies. (b) The Alabama Commission on Higher Education shall not act as a representative or intermediary for either the recipient or the utility in resolving disputes. (c) A fund in the State Treasury is established and shall be maintained to assist in the payment of utility defaults by recipients and to hold any collections by the Alabama Commission on Higher Education or its authorized representatives from recipients who are in default.

Section 5

(a) The implementation of this program is dependent on a state appropriation. Funds allocated for this program are considered to be non-reverting. (b) The Alabama Commission on Higher Education is authorized to retain up to seven and one-half percent of the appropriation as costs of administration.

Section 6

The Alabama Commission on Higher Education is authorized to adopt rules to implement this act.

Section 7

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.