HB381 Alabama 2021 Session

Summary

Primary Sponsor

Arnold MooneyRepresentative

Republican

Co-Sponsors

Russell BedsoleJim CarnsDickie DrakeCorley EllisAllen Farley

Session

Regular Session 2021

Title

Shelby Co., privately owned sewer systems using public rights-of-way of public roads, required to be regulated and certified by PSC, const. amend.

Summary

In Shelby County, certain privately owned sewer systems that use public road rights-of-way would come under Public Service Commission regulation for rates and protections through a local constitutional amendment.

What This Bill Does

The PSC would certify and regulate qualifying private sewer systems that use public road rights-of-way and discharge to Grade III+ facilities, charging residential or commercial customers with flat or usage-based fees. Implementation and specific rates would be determined by the PSC, using the most recent rate agreement or the latest published rate until PSC sets new rates. The measure allows opt-out via rate-control agreements with the county, municipalities, or a GUSC, but if the agreement is invalid or terminated, PSC jurisdiction returns, with a five-year ban on re-opt-out; if multiple municipalities are involved, the opt-out would go to the municipality with an existing rate-control agreement as of January 1, 2021, subject to Shelby County Commission approval.

Who It Affects

• Privately owned sewer utilities that use public rights-of-way in Shelby County and discharge to Grade III+ facilities, serving residential or commercial customers (their rates and consumer protections would be regulated by the PSC).
• Shelby County government, municipalities within the county, and Government Utility Service Corporations that manage affected sewer systems (they may opt out via rate-control agreements; otherwise PSC regulation applies and customers may be impacted by rate decisions).

Key Provisions

• Applies only in Shelby County and introduces a local constitutional amendment to bring certain private sewer systems under PSC oversight for rates and consumer protection.
• Eligible systems must use public rights-of-way of public roads, discharge to Grade III+ facilities, and bill residential or commercial customers with flat or usage-based fees.
• PSC would certify and regulate these utilities under Title 37, including rates, charges, and any increases.
• Initial rates would follow the most recent rate-control agreement or the utility's most recent published rate until PSC sets new rates.
• County, municipality, or GUSC may opt out via a rate-control agreement; if the agreement is invalid or terminated, PSC jurisdiction is restored.
• Five-year ban on re-opt-out after PSC jurisdiction is reinstated following termination of an opt-out.
• If multiple municipalities are served, the opt-out generally vests with the municipality that has a rate-control agreement as of Jan 1, 2021, with Shelby County Commission approval.
• An election would be held to vote on the amendment, with specified ballot language outlining the measure.

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

Subjects

Shelby County