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Alabama Senate Bill SB179

Alabama 2023 Regular Session

Alabama Senate Bill SB179 Compare Versions

Only one version of the bill is available at this time.
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11 SB179INTRODUCED
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33 A2OJSS-1
44 By Senator Coleman-Madison
55 RFD: County and Municipal Government
66 First Read: 05-Apr-23
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1111 5 A2OJSS-1 03/07/2023 THR (L)THR/lg 2023-328
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1313 SYNOPSIS:
1414 This bill would require certain municipal water
1515 works boards to provide customer data at the request of
1616 a county commission that provides sewer service for
1717 certain purposes, and would provide mechanisms to
1818 determine the fees a board could charge in exchange for
1919 that data.
2020 This bill would require certain municipal water
2121 works boards to provide billing and collection services
2222 for sewer service at the request of a county commission
2323 that provides sewer service, and would provide
2424 mechanisms to determine the fees a board could charge
2525 in exchange for the billing and collection service.
2626 This bill would require certain municipal water
2727 works boards to shut off water service for nonpayment
2828 of sewer service at the request of a county commission
2929 that provides the sewer service, and would provide
3030 mechanisms to determine the fees a board could charge
3131 in exchange for that shut off service.
3232 This bill would also provide legal mechanisms
3333 for a county commission to pursue in the event that a
3434 municipal water works board fails to abide by the
3535 requirements of this act.
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6565 A BILL
6666 TO BE ENTITLED
6767 AN ACT
6868 Relating to municipal water works boards; to require
6969 certain municipal water works boards to provide customer data
7070 regarding sewer service at the request of a county commission
7171 that provides sewer service in certain circumstances and
7272 provide mechanisms to determine the fees a board could charge
7373 in exchange for the data; to require certain municipal water
7474 works boards to provide billing and collection services for
7575 sewer service at the request of a county commission that
7676 provides the sewer service and provide mechanisms to determine
7777 the fees a board could charge in exchange for billing and
7878 collection services; to require certain municipal water works
7979 boards to shut off water service for nonpayment of sewer
8080 service at the request of a county commission providing the
8181 sewer service and provide mechanisms to determine the fees a
8282 board could charge for the shut off service; and to provide
8383 legal mechanisms for a county commission to pursue in the
8484 event that a municipal water works board fails to abide by the
8585 requirements of this act.
8686 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
8787 Section 1. (a) For the purposes of this act, the term
8888 "board" means any municipal water works board that, on January
8989 1, 2015, served water customers or had assets in four or more
9090 counties other than the county where the authorizing
9191 municipality is principally located, or which after January 1,
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121121 2015, served water customers or had assets in four or more
122122 counties other than the county where the authorizing
123123 municipality is principally located. Notwithstanding any other
124124 provisions of law, this act shall apply to any such board and
125125 the organization and operation of the board.
126126 (b) For the purposes of this act, the term "commission"
127127 means the governing body of a county where residents of the
128128 county receive water service from a board and sanitary sewer
129129 service from the county, or any other entity authorized by
130130 that governing body to act on behalf of the county regarding
131131 the county's sanitary sewer services.
132132 (c) This act shall not apply to a municipal utilities
133133 board that operates both a water works system and an electric
134134 distribution system.
135135 (d) This act shall not apply to an entity that only
136136 serves wholesale water customers.
137137 Section 2. (a) In order to identify unbilled sanitary
138138 sewer service accounts, within 30 calendar days of receipt of
139139 a written request by a county commission, a board shall
140140 provide the commission with customer account information for
141141 every customer of the board.
142142 (b) At a minimum, the customer account information
143143 shall include, but not be limited to, all of the following
144144 with regard to each account:
145145 (1) The customer's name.
146146 (2) Any service or billing address.
147147 (3) The account number.
148148 (4) The meter size.
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178178 (5) The meter number.
179179 (6) The payment history.
180180 (7) The consumption history.
181181 (c) A commission may not make more than two requests
182182 pursuant to this section to any single board in a calendar
183183 year.
184184 Section 3. (a) In order to facilitate the proper
185185 administration of a county's sanitary sewer service customer
186186 accounts, within 60 calendar days of receipt of a written
187187 request by a county commission, a board shall provide the
188188 commission with continuous online electronic access to data
189189 fields necessary for the administration of the sanitary sewer
190190 service customer account of each board customer connected to
191191 that county's sanitary sewer system.
192192 (b) In addition to the information required under
193193 Section 2, the online electronic access shall include, but not
194194 be limited to, all of the following:
195195 (1) The customer's identifying information, to include
196196 a copy of the customer's driver license or other non-driver
197197 identification card, telephone number, date of birth, and
198198 Social Security number or tax identification number.
199199 (2) A copy of the lease or deed provided by the
200200 customer showing evidence of occupancy or ownership of the
201201 property receiving sanitary sewer services.
202202 (3) The account's completed application for service.
203203 (c) A board shall ensure that the continuous online
204204 electronic access required by this section enables a county to
205205 download the requisite data and electronically generate
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235235 reports using the data.
236236 Section 4. (a) A board shall perform billing and
237237 collection services for a commission's sanitary sewer service
238238 customers upon written request from a commission.
239239 (b) Following a request from a commission for a board
240240 to perform billing and collection services for the
241241 commission's sanitary sewer service customers, the board shall
242242 begin providing the billing and collection services at the
243243 start of the next billing cycle after the board receives a
244244 report generated pursuant to Section 7. Any provision of any
245245 prior general or local law in direct conflict or inconsistent
246246 with this subsection is preempted to the extent of such
247247 conflict or inconsistency.
248248 Section 5. (a) This section shall only apply to a board
249249 that performs billing and collection services for a specific
250250 county, whether the billing and collection services are
251251 provided pursuant to a request under Section 4 or the billing
252252 and collection services are provided pursuant to a contract or
253253 other agreement entered into after the effective date of this
254254 act and the parties are unable to agree on a fee for the
255255 billing and collection services provided.
256256 (b) A board shall bill customers who receive water
257257 service from the board and sanitary sewer service from the
258258 commission for both water and sanitary sewer services in a
259259 single bill. The sanitary sewer charges shall be calculated
260260 using the commission's adopted rate schedule or structure. A
261261 bill shall reflect the total charges for water consumption and
262262 sewer usage for the same billing period.
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292292 (c) A board shall apply equal effort and resources to
293293 the collection of water and sewer service charges. Any partial
294294 payment received shall be applied to the joint bill in
295295 proportion to the outstanding balances of the board's charges
296296 and the commission's charges. No customer who receives a joint
297297 bill pursuant to this section may be permitted to pay one
298298 service charge without paying the other.
299299 (d)(1) A board shall be paid a fee for its billing and
300300 collection services in the amount of 110 percent of the actual
301301 direct incremental cost to the board for providing the billing
302302 and collection services.
303303 (2) The fee paid to a board pursuant to this section
304304 may not be based on a percentage of the sewer charges
305305 collected by the board on behalf of the commission. Any
306306 provision of any prior general or local law in direct conflict
307307 with or inconsistent with this subsection is preempted to the
308308 extent to such conflict or inconsistency .
309309 (e) A board's actual direct incremental cost for
310310 services rendered pursuant to this section shall be determined
311311 pursuant to Section 7.
312312 Section 6. (a) This section shall only apply to a board
313313 that does not perform billing or collection services on behalf
314314 of a county for sanitary sewer services pursuant to an
315315 existing contract or agreement, or to a board that does
316316 provide billing and collection services pursuant to an
317317 existing billing and collection agreement but has provided
318318 notice of termination of the existing agreement.
319319 (b)(1) Upon written request by a county commission, a
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349349 board shall provide the commission the water consumption data
350350 and water meter data collected by the board for each of the
351351 county's sewer customers who receive water service from the
352352 board.
353353 (2) The data shall be provided in a format agreed upon
354354 by the commission and the board, and shall be accompanied by
355355 information sufficient to allow the commission to identify and
356356 bill each customer.
357357 (3) Except as provided by mutual agreement between the
358358 board and the commission, the data shall be based on the
359359 board's established billing cycle and shall be provided
360360 monthly for each customer.
361361 (c)(1) The commission shall reimburse the board for any
362362 costs incurred by the board when formatting and providing the
363363 data to the commission.
364364 (2) A board may not realize, receive, or otherwise earn
365365 a profit from the transmission of data to the commission.
366366 (3) A board's actual direct incremental cost for costs
367367 incurred pursuant to this section shall be determined pursuant
368368 to Section 7.
369369 Section 7. (a) The cost of any billing and collection
370370 services rendered or any other costs incurred pursuant to this
371371 act shall be determined through the following process:
372372 (1) By mutual agreement, the board and the commission
373373 shall select an independent certified public accounting firm
374374 practicing in the county where the board's authorizing
375375 municipality is principally located.
376376 (2) The firm shall conduct an examination of the
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406406 board's operating costs and prepare a report providing the
407407 details and conclusions of the examination.
408408 (3) The board and the commission shall each be
409409 responsible for one-half of the cost of the independent
410410 examination.
411411 (4) The board shall fully cooperate with the firm and
412412 shall provide the firm with any data the firm deems necessary
413413 to complete the examination.
414414 (5) The firm shall review the costs incurred and issue
415415 an updated report every other year, unless the board and the
416416 commission mutually agree otherwise.
417417 (6)a. The board and the commission shall engage the
418418 firm within 30 calendar days of any written request from a
419419 commission to a board sent pursuant to Section 5 or 6.
420420 b. The examination to determine the initial actual cost
421421 incurred in the delivery of the data or for providing billing
422422 and collection services shall be commenced within 60 calendar
423423 days of the commission's written request and shall be
424424 completed within 60 calendar days of commencement.
425425 (b)(1) If a board or a commission moves to terminate a
426426 billing and collection services contract or other agreement
427427 that predates the effective date of this act, the parties
428428 shall select a firm according to the procedures of subsection
429429 (a) at least 180 days prior to the effective termination date
430430 of the contract or other agreement.
431431 (2) The examination shall commence at least 150 days
432432 prior to the effective termination date and shall be completed
433433 at least 90 days prior to the effective termination date.
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463463 Section 8. (a)(1) In the event a customer fails to
464464 fully pay a sanitary sewer charge billed by a board, the board
465465 shall shut off, discontinue, and disconnect the supply of
466466 water to the customer within 10 business days of the receipt
467467 of a written request from the commission.
468468 (2) The board shall not reconnect the supply of water
469469 until the commission confirms that all sewer service charges,
470470 penalties, fees, and interest have been paid in full.
471471 (3) The board may inform the customer that water
472472 service was shut off, discontinued, and disconnected at the
473473 request and direction of the commission pursuant to state law.
474474 (b) A commission may not send a request to discontinue
475475 a customer's water service to a board until the commission has
476476 sent a notice of delinquency to the customer stating that if
477477 all sewer service charges, penalties, fees, and interest have
478478 not been paid within 30 days of the customer's receipt of the
479479 notice, the commission will send a request to the board
480480 directing the board to shut off, discontinue, and disconnect
481481 the customer's water service.
482482 (c) A board may charge the commission a fee for each
483483 customer the board disconnects from water service pursuant to
484484 a customer disconnect request from the commission, but the fee
485485 may not exceed the board's published rate for disconnecting
486486 water service due to nonpayment of a customer's water service
487487 charges.
488488 (d)(1) A board shall hire, assign, or designate at
489489 least one specific employee dedicated to shutting off and
490490 disconnecting water service on behalf of the commission.
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520520 (2) The commission shall reimburse the board for the
521521 full cost of employment of the dedicated employee.
522522 (3) The dedicated employee shall have the same
523523 classification as other board employees responsible for
524524 carrying out shut offs and disconnections for the board.
525525 (e)(1) If a board fails to shut off, discontinue, or
526526 disconnect water service pursuant to the requirements of this
527527 section within ten business days of its receipt of a request
528528 from a commission, the board shall incur a financial
529529 obligation to the commission equal to the total of the
530530 customer's delinquent sewer service charges, penalties, fees,
531531 and interest.
532532 (2) Any financial obligation incurred pursuant to this
533533 subsection shall be remitted to the commission within 30 days
534534 of the creation of the obligation.
535535 Section 9. (a) This act shall not be construed to
536536 directly or indirectly terminate, modify, amend, or otherwise
537537 interfere with any contract or contractual right or obligation
538538 existing on the effective date of this act, nor shall it be
539539 construed to prohibit, limit, or interfere with the right of a
540540 board and a commission to enter into, amend, or modify a
541541 contract for the billing and collection of sewer service
542542 charges.
543543 (b) The terms and conditions of a contract executed
544544 before the effective date of this act between a board and a
545545 commission shall remain in full force and effect until the
546546 contract is amended, terminated, or otherwise expires pursuant
547547 to the terms and conditions of the contract.
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577577 Section 10. A commission may commence the appropriate
578578 action in a court of competent jurisdiction to address any
579579 failure by a board to comply with this act, and the board
580580 shall be responsible for the commission's attorney fees,
581581 costs, and other expenses incurred as a result of the
582582 commission's efforts to enforce this act.
583583 Section 11. This act shall become effective on the
584584 first day of the first month following its passage and
585585 approval by the Governor, or its otherwise becoming law.
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