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SB271 Alabama 2025 Session

Updated Feb 23, 2026
Notable

Summary

Session
2025 Regular Session
Title
Municipalities, natural and manufactured gas utilities, certain fees and charges in connection with the use public streets and places restricted
Summary

SB271 stops municipalities from charging new consent fees to gas utilities for using public streets and requires voter approval to raise such charges after 2025.

What This Bill Does

Amends Section 11-49-1 to prohibit municipalities from imposing separate fees, charges, taxes, or other payments on natural or manufactured gas utilities in connection with consent to use public streets and places. For gas utilities with franchise fees, increases after December 31, 2025 are not allowed unless approved by a majority of the qualified electors at an election. Preserves existing franchise fee payments for gas utilities that are in effect as of April 28, 2009, or extensions/renewals at the same rate, and clarifies that other municipal powers remain unaffected. Effective date is June 1, 2025.

Who It Affects
  • Natural or manufactured gas utilities operating in Alabama municipalities, who would be protected from new consent fees and from increases in franchise fees after 2025 without voter approval.
  • Municipalities (cities and towns) and their residents (voters), who would be restricted in creating or increasing consent-related charges and would need voter approval for any increase after 2025.
Key Provisions
  • Prohibits municipalities from imposing separate fees/charges on gas utilities for consent to use streets and public places.
  • Cap on increases to gas franchise-fee charges after 2025, requiring majority-voter approval at an election for any increase.
  • Leaves existing gas franchise fees in place at current rates if already in effect as of April 28, 2009 or extended/renewed.
  • Preserves other government powers and non-gas-related fees to the extent allowed by law; does not affect health/safety rules or franchise-related obligations that apply to other services.
  • Effective date: June 1, 2025.
AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects
Counties & Municipalities

Bill Actions

S

Enacted

S

Enacted

H

Signature Requested

S

Enrolled

S

Delivered to Governor

S

Ready to Enroll

H

Motion to Read a Third Time and Pass - Adopted Roll Call 1177

H

Read for the Second Time and placed on the Calendar

H

Reported Out of Committee Second House

H

Pending House Transportation, Utilities and Infrastructure

H

Read for the first time and referred to the House Committee on Transportation, Utilities and Infrastructure

S

Motion to Read a Third Time and Pass - Adopted Roll Call 838

S

Third Reading in House of Origin

S

Read for the Second Time and placed on the Calendar

S

Reported Out of Committee House of Origin

S

Pending Senate Transportation and Energy

S

Read for the first time and referred to the Senate Committee on Transportation and Energy

Calendar

Hearing

House Transportation, Utilities and Infrastructure Hearing

Room 123 at 12:00:00

Hearing

Senate Transportation and Energy Hearing

Room 316 at 13:30:00

Hearing

Senate Transportation and Energy Hearing

Finance and Taxation at 09:00:00

Bill Text

Votes

Motion to Read a Third Time and Pass - Roll Call 838

April 24, 2025 Senate Passed
Yes 30
Absent 4

Motion to Read a Third Time and Pass - Roll Call 1177

May 6, 2025 House Passed
Yes 84
No 1
Abstained 17
Absent 1

Documents

Source: Alabama Legislature