HB418 Alabama 2021 Session

Summary

Primary Sponsor

Rod Scott

Democrat

Session

Regular Session 2021

Title

Public utilities, utility guarantor program, provided for

Summary

HB418 creates a state-run utility deposit guarantor program through the Alabama Commission on Higher Education to help recent graduates secure utilities without deposits when relocating for work in Alabama.

What This Bill Does

The bill would create a Utility Guarantor Program run by the Alabama Commission on Higher Education to guarantee deposits for eligible graduates moving to Alabama near their employer. Eligible participants receive vouchers that waive deposits from participating utilities for starting service; each voucher is single-use and applies to one meter for a given utility type. If a participant defaults on a payment, the program reimburses the utility but will not issue future vouchers for that type, and moving to a new residence may not trigger a new voucher for the same type. Using a voucher does not guarantee service; participants must still meet regular service initiation criteria, and the Commission will maintain a list of participating utilities and can adopt implementing rules.

Who It Affects

• Recent Alabama graduates who have a confirmed full-time job in Alabama within 60 months of graduation and are establishing a new domicile near their employer
• Utilities that provide electricity, natural gas, water, sewage, or trash collection and choose to participate by accepting vouchers and waiving deposits for program recipients

Key Provisions

• Establishes a Utility Guarantor Program to be run by the Alabama Commission on Higher Education
• Defines eligible participants as graduates with a full-time job in Alabama within 60 months and establishing a new domicile in Alabama near their employer
• The Commission issues one voucher per utility deposit for each eligible participant, guaranteeing deposits for that participant
• Utilities must waive the deposit and start service for the participant upon presentation of a valid voucher, with vouchers being single-use and applicable to one meter per utility type
• If a participant defaults on payment, the program reimburses the utility but will not issue future vouchers for that utility type; moving residences may not trigger a new voucher for the same type
• Using a voucher does not guarantee service; participants must still meet each utility's service initiation requirements
• The Commission must maintain a list of participating utilities and may adopt rules to implement the act
• The act becomes effective on the first day of the third month after the bill is enacted

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

Subjects

Utilities