House Bill 337 Alabama 2026 Session

Summary

Primary Sponsor

Andy WhittRepresentative

Republican

Session

2026 Regular Session

Title

Madison County; certain privately owned sewer systems subjected to Public Service Commission regulation; constitutional amendment

Summary

Constitutional amendment to bring certain privately owned sewer systems in Madison County under Public Service Commission regulation under specified conditions.

What This Bill Does

If adopted, the amendment would apply only in Madison County to privately owned sewer systems that use public rights‑of‑way, discharge to Grade III+ facilities, and bill customers with a flat fee or based on water usage. The Public Service Commission would certify and regulate these systems, including setting rates and charges. Until PSC sets new rates, charges would follow the most recent rate control agreement or the entity’s latest published rate. It also creates opt‑out rules for local governments or a GUSC, with conditions on when regulation can be avoided, how jurisdiction is restored if an agreement is invalid or terminated, and a five‑year period before re‑opting is allowed; if multiple municipalities are served, the opt‑out would vest with the municipality that has a rate‑control agreement as of January 1, 2026, subject to approval by the Madison County Commission.

Who It Affects

• Privately owned sewer system operators in Madison County: would become certified and regulated by the Public Service Commission, affecting how they set rates, charges, and operations if they meet the specified conditions.
• Residential and commercial customers of those privately owned systems: could see PSC oversight of their bills or be affected by existing or new rate-control arrangements, depending on opt‑out rules and agreements.

Key Provisions

• Applies only in Madison County and would amend the Alabama Constitution accordingly.
• Privately owned entities that use public rights‑of‑way, discharge to Grade III+ facilities, and bill with a flat fee or based on usage would be certified and regulated by the PSC, including rate oversight.
• PSC would regulate rates and charges under Title 37; until rates are determined, charges follow the most recent rate-control agreement or the entity’s latest published rate at the amendment’s effective date.
• Opt-out provisions allow local governments or a GUSC to avoid PSC regulation for affected customers if a rate-control agreement exists; jurisdiction is restored if the agreement is invalid or terminated, with a five‑year prohibition on re‑opting; in multi‑municipality service areas, the opt-out vests with the municipality that has a rate-control agreement in place as of January 1, 2026, subject to Madison County Commission approval.
• Upon ratification, the Code Commissioner may perform nonsubstantive revisions for style and consistency.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Madison County