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

HB337 would amend Alabama’s Constitution to bring certain privately owned Madison County sewer systems that use public rights‑of‑way under Public Service Commission regulation, with conditions and local opt‑out rules.

What This Bill Does

If enacted, this amendment would apply only in Madison County. It would require privately owned sewer operators that use public rights‑of‑way, discharge to a Grade I–IV facility defined by ADEM, and bill customers with a flat fee or based on water use to be certified and regulated by the Public Service Commission. PSC regulation would cover rates and charges for these entities under Title 37, with initial rates set by the most recent rate‑control agreement or the entity’s last published rate until PSC establishes new rates. The bill also creates opt‑out rules for counties, municipalities, or GUSCs that enter into a rate‑control agreement, and says PSC jurisdiction would be restored if such an agreement ends; there’s a five‑year waiting period before re‑opting.

Who It Affects

• Privately owned sewer system operators in Madison County that meet the criteria would become subject to PSC certification and rate regulation.
• Residential and commercial customers of those private sewer systems in Madison County would be affected by PSC‑regulated rates and charges, with potential opt‑out dynamics based on local rate‑control agreements.

Key Provisions

• Applies only in Madison County.
• Privately owned sewer operators that use public rights‑of‑way, discharge to Grade I–IV ADEQ facilities, and bill customers with a flat fee or based on water use must be certified and regulated by the PSC.
• PSC would regulate rates and charges for these entities under Title 37 of the Code of Alabama 1975.
• Until PSC sets new rates, initial rates would follow the most recent rate‑control agreement or the entity’s last published rate.
• County, municipality, or GUSC may opt out of PSC regulation for affected customers if they enter into a rate‑control agreement with the entity.
• If a rate‑control agreement is invalid or terminated, PSC jurisdiction is restored by operation of law.
• If jurisdiction is reinstated after opt‑out, the opt‑out cannot be used again for five years.
• If the private entity serves customers in more than one municipality, the opt‑out vest with the municipality that has a rate‑control agreement as of January 1, 2026, subject to Madison County Commission approval.
• The Code Commissioner may number and place the amendment in the constitution and perform nonsubstantive revisions.
• An election would be held to approve the amendment, and it becomes valid when approved by a majority of qualified electors.

AI-generated summary using openai/gpt-5-nano on Feb 17, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Madison County