SB179INTRODUCED
Page 0
A2OJSS-1
By Senator Coleman-Madison
RFD: County and Municipal Government
First Read: 05-Apr-23
1
2
3
4
5 A2OJSS-1 03/07/2023 THR (L)THR/lg 2023-328
Page 1
SYNOPSIS:
This bill would require certain municipal water
works boards to provide customer data at the request of
a county commission that provides sewer service for
certain purposes, and would provide mechanisms to
determine the fees a board could charge in exchange for
that data.
This bill would require certain municipal water
works boards to provide billing and collection services
for sewer service at the request of a county commission
that provides sewer service, and would provide
mechanisms to determine the fees a board could charge
in exchange for the billing and collection service.
This bill would require certain municipal water
works boards to shut off water service for nonpayment
of sewer service at the request of a county commission
that provides the sewer service, and would provide
mechanisms to determine the fees a board could charge
in exchange for that shut off service.
This bill would also provide legal mechanisms
for a county commission to pursue in the event that a
municipal water works board fails to abide by the
requirements of this act.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28 SB179 INTRODUCEDSB179 INTRODUCED
Page 2
A BILL
TO BE ENTITLED
AN ACT
Relating to municipal water works boards; to require
certain municipal water works boards to provide customer data
regarding sewer service at the request of a county commission
that provides sewer service in certain circumstances and
provide mechanisms to determine the fees a board could charge
in exchange for the data; to require certain municipal water
works boards to provide billing and collection services for
sewer service at the request of a county commission that
provides the sewer service and provide mechanisms to determine
the fees a board could charge in exchange for billing and
collection services; to require certain municipal water works
boards to shut off water service for nonpayment of sewer
service at the request of a county commission providing the
sewer service and provide mechanisms to determine the fees a
board could charge for the shut off service; and to provide
legal mechanisms for a county commission to pursue in the
event that a municipal water works board fails to abide by the
requirements of this act.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) For the purposes of this act, the term
"board" means any municipal water works board that, on January
1, 2015, served water customers or had assets in four or more
counties other than the county where the authorizing
municipality is principally located, or which after January 1,
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56 SB179 INTRODUCEDSB179 INTRODUCED
Page 3
2015, served water customers or had assets in four or more
counties other than the county where the authorizing
municipality is principally located. Notwithstanding any other
provisions of law, this act shall apply to any such board and
the organization and operation of the board.
(b) For the purposes of this act, the term "commission"
means the governing body of a county where residents of the
county receive water service from a board and sanitary sewer
service from the county, or any other entity authorized by
that governing body to act on behalf of the county regarding
the county's sanitary sewer services.
(c) This act shall not apply to a municipal utilities
board that operates both a water works system and an electric
distribution system.
(d) This act shall not apply to an entity that only
serves wholesale water customers.
Section 2. (a) In order to identify unbilled sanitary
sewer service accounts, within 30 calendar days of receipt of
a written request by a county commission, a board shall
provide the commission with customer account information for
every customer of the board.
(b) At a minimum, the customer account information
shall include, but not be limited to, all of the following
with regard to each account:
(1) The customer's name.
(2) Any service or billing address.
(3) The account number.
(4) The meter size.
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84 SB179 INTRODUCEDSB179 INTRODUCED
Page 4
(5) The meter number.
(6) The payment history.
(7) The consumption history.
(c) A commission may not make more than two requests
pursuant to this section to any single board in a calendar
year.
Section 3. (a) In order to facilitate the proper
administration of a county's sanitary sewer service customer
accounts, within 60 calendar days of receipt of a written
request by a county commission, a board shall provide the
commission with continuous online electronic access to data
fields necessary for the administration of the sanitary sewer
service customer account of each board customer connected to
that county's sanitary sewer system.
(b) In addition to the information required under
Section 2, the online electronic access shall include, but not
be limited to, all of the following:
(1) The customer's identifying information, to include
a copy of the customer's driver license or other non-driver
identification card, telephone number, date of birth, and
Social Security number or tax identification number.
(2) A copy of the lease or deed provided by the
customer showing evidence of occupancy or ownership of the
property receiving sanitary sewer services.
(3) The account's completed application for service.
(c) A board shall ensure that the continuous online
electronic access required by this section enables a county to
download the requisite data and electronically generate
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112 SB179 INTRODUCEDSB179 INTRODUCED
Page 5
reports using the data.
Section 4. (a) A board shall perform billing and
collection services for a commission's sanitary sewer service
customers upon written request from a commission.
(b) Following a request from a commission for a board
to perform billing and collection services for the
commission's sanitary sewer service customers, the board shall
begin providing the billing and collection services at the
start of the next billing cycle after the board receives a
report generated pursuant to Section 7. Any provision of any
prior general or local law in direct conflict or inconsistent
with this subsection is preempted to the extent of such
conflict or inconsistency.
Section 5. (a) This section shall only apply to a board
that performs billing and collection services for a specific
county, whether the billing and collection services are
provided pursuant to a request under Section 4 or the billing
and collection services are provided pursuant to a contract or
other agreement entered into after the effective date of this
act and the parties are unable to agree on a fee for the
billing and collection services provided.
(b) A board shall bill customers who receive water
service from the board and sanitary sewer service from the
commission for both water and sanitary sewer services in a
single bill. The sanitary sewer charges shall be calculated
using the commission's adopted rate schedule or structure. A
bill shall reflect the total charges for water consumption and
sewer usage for the same billing period.
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140 SB179 INTRODUCEDSB179 INTRODUCED
Page 6
(c) A board shall apply equal effort and resources to
the collection of water and sewer service charges. Any partial
payment received shall be applied to the joint bill in
proportion to the outstanding balances of the board's charges
and the commission's charges. No customer who receives a joint
bill pursuant to this section may be permitted to pay one
service charge without paying the other.
(d)(1) A board shall be paid a fee for its billing and
collection services in the amount of 110 percent of the actual
direct incremental cost to the board for providing the billing
and collection services.
(2) The fee paid to a board pursuant to this section
may not be based on a percentage of the sewer charges
collected by the board on behalf of the commission. Any
provision of any prior general or local law in direct conflict
with or inconsistent with this subsection is preempted to the
extent to such conflict or inconsistency .
(e) A board's actual direct incremental cost for
services rendered pursuant to this section shall be determined
pursuant to Section 7.
Section 6. (a) This section shall only apply to a board
that does not perform billing or collection services on behalf
of a county for sanitary sewer services pursuant to an
existing contract or agreement, or to a board that does
provide billing and collection services pursuant to an
existing billing and collection agreement but has provided
notice of termination of the existing agreement.
(b)(1) Upon written request by a county commission, a
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168 SB179 INTRODUCEDSB179 INTRODUCED
Page 7
board shall provide the commission the water consumption data
and water meter data collected by the board for each of the
county's sewer customers who receive water service from the
board.
(2) The data shall be provided in a format agreed upon
by the commission and the board, and shall be accompanied by
information sufficient to allow the commission to identify and
bill each customer.
(3) Except as provided by mutual agreement between the
board and the commission, the data shall be based on the
board's established billing cycle and shall be provided
monthly for each customer.
(c)(1) The commission shall reimburse the board for any
costs incurred by the board when formatting and providing the
data to the commission.
(2) A board may not realize, receive, or otherwise earn
a profit from the transmission of data to the commission.
(3) A board's actual direct incremental cost for costs
incurred pursuant to this section shall be determined pursuant
to Section 7.
Section 7. (a) The cost of any billing and collection
services rendered or any other costs incurred pursuant to this
act shall be determined through the following process:
(1) By mutual agreement, the board and the commission
shall select an independent certified public accounting firm
practicing in the county where the board's authorizing
municipality is principally located.
(2) The firm shall conduct an examination of the
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196 SB179 INTRODUCEDSB179 INTRODUCED
Page 8
board's operating costs and prepare a report providing the
details and conclusions of the examination.
(3) The board and the commission shall each be
responsible for one-half of the cost of the independent
examination.
(4) The board shall fully cooperate with the firm and
shall provide the firm with any data the firm deems necessary
to complete the examination.
(5) The firm shall review the costs incurred and issue
an updated report every other year, unless the board and the
commission mutually agree otherwise.
(6)a. The board and the commission shall engage the
firm within 30 calendar days of any written request from a
commission to a board sent pursuant to Section 5 or 6.
b. The examination to determine the initial actual cost
incurred in the delivery of the data or for providing billing
and collection services shall be commenced within 60 calendar
days of the commission's written request and shall be
completed within 60 calendar days of commencement.
(b)(1) If a board or a commission moves to terminate a
billing and collection services contract or other agreement
that predates the effective date of this act, the parties
shall select a firm according to the procedures of subsection
(a) at least 180 days prior to the effective termination date
of the contract or other agreement.
(2) The examination shall commence at least 150 days
prior to the effective termination date and shall be completed
at least 90 days prior to the effective termination date.
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224 SB179 INTRODUCEDSB179 INTRODUCED
Page 9
Section 8. (a)(1) In the event a customer fails to
fully pay a sanitary sewer charge billed by a board, the board
shall shut off, discontinue, and disconnect the supply of
water to the customer within 10 business days of the receipt
of a written request from the commission.
(2) The board shall not reconnect the supply of water
until the commission confirms that all sewer service charges,
penalties, fees, and interest have been paid in full.
(3) The board may inform the customer that water
service was shut off, discontinued, and disconnected at the
request and direction of the commission pursuant to state law.
(b) A commission may not send a request to discontinue
a customer's water service to a board until the commission has
sent a notice of delinquency to the customer stating that if
all sewer service charges, penalties, fees, and interest have
not been paid within 30 days of the customer's receipt of the
notice, the commission will send a request to the board
directing the board to shut off, discontinue, and disconnect
the customer's water service.
(c) A board may charge the commission a fee for each
customer the board disconnects from water service pursuant to
a customer disconnect request from the commission, but the fee
may not exceed the board's published rate for disconnecting
water service due to nonpayment of a customer's water service
charges.
(d)(1) A board shall hire, assign, or designate at
least one specific employee dedicated to shutting off and
disconnecting water service on behalf of the commission.
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252 SB179 INTRODUCEDSB179 INTRODUCED
Page 10
(2) The commission shall reimburse the board for the
full cost of employment of the dedicated employee.
(3) The dedicated employee shall have the same
classification as other board employees responsible for
carrying out shut offs and disconnections for the board.
(e)(1) If a board fails to shut off, discontinue, or
disconnect water service pursuant to the requirements of this
section within ten business days of its receipt of a request
from a commission, the board shall incur a financial
obligation to the commission equal to the total of the
customer's delinquent sewer service charges, penalties, fees,
and interest.
(2) Any financial obligation incurred pursuant to this
subsection shall be remitted to the commission within 30 days
of the creation of the obligation.
Section 9. (a) This act shall not be construed to
directly or indirectly terminate, modify, amend, or otherwise
interfere with any contract or contractual right or obligation
existing on the effective date of this act, nor shall it be
construed to prohibit, limit, or interfere with the right of a
board and a commission to enter into, amend, or modify a
contract for the billing and collection of sewer service
charges.
(b) The terms and conditions of a contract executed
before the effective date of this act between a board and a
commission shall remain in full force and effect until the
contract is amended, terminated, or otherwise expires pursuant
to the terms and conditions of the contract.
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280 SB179 INTRODUCEDSB179 INTRODUCED
Page 11
Section 10. A commission may commence the appropriate
action in a court of competent jurisdiction to address any
failure by a board to comply with this act, and the board
shall be responsible for the commission's attorney fees,
costs, and other expenses incurred as a result of the
commission's efforts to enforce this act.
Section 11. This act shall become effective on the
first day of the first month following its passage and
approval by the Governor, or its otherwise becoming law.
281
282
283
284
285
286
287
288
289