Alabama 2025 Regular Session

Alabama Senate Bill SB137 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	~~SB137ENROLLED~~
	1	+	SB137INTRODUCED
2	2		Page 0
3	3		SB137
4		-	MDPSWHW-2
	4	+	MDPSWHW-1
5	5		By Senator Waggoner
6	6		RFD: State Governmental Affairs
7	7		First Read: 06-Feb-25
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12		-	5 ~~SB137 Enrolled~~
	12	+	5 MDPSWHW-1 01/31/2025 CMH (L)bm 2025-218
13	13		Page 1
14	14		First Read: 06-Feb-25
15		-	Enrolled, An Act,
16		-	Relating to privately owned sewer and wastewater
17		-	systems; to authorize and provide a procedure for certain
18		-	private sewer or wastewater systems not subject to regulation
19		-	of the Public Service Commission to elect to consolidate with
20		-	certain private systems that are currently under the
21		-	jurisdiction of the Public Service Commission.
22		-	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
23		-	Section 1. For the purposes of this act the following
24		-	terms have the following meanings:
25		-	(1) AFFILIATED SYSTEM. A sewer or wastewater system
26		-	that is both under common ownership and control with a
27		-	regulated sewer or wastewater entity and not subject to the
28		-	jurisdiction of the Public Service Commission as of the
29		-	effective date of this act.
30		-	(2) COMMON OWNERSHIP OR CONTROL. Ownership, directly or
31		-	through one or more affiliates, of 50 percent or more of the
32		-	shares of stock entitled to vote for the election of
33		-	directors, in the case of a corporation, or 50 percent or more
34		-	of the voting equity interests in the case of any other type
35		-	of legal entity, or status as a general partner in any
36		-	partnership, or any other arrangement whereby an entity
37		-	controls or has the right to control the selection of 50
38		-	percent or more of the board of directors, managing members,
39		-	or equivalent governing body of a legal entity. An "affiliate"
40		-	under the preceding sentence means any corporation, limited
	15	+	SYNOPSIS:
	16	+	Under existing law, certain privately owned
	17	+	sewer and wastewater systems are subject to the
	18	+	regulatory jurisdiction of the Public Service
	19	+	Commission.
	20	+	This bill would allow privately owned sewer and
	21	+	wastewater systems affiliated with such regulated
	22	+	systems to elect to become subject to the regulatory
	23	+	jurisdiction of the Public Service Commission, except
	24	+	when prohibited by a local constitutional amendment.
	25	+	This bill would also provide procedures for such
	26	+	election.
	27	+	This bill would provide for the capital
	28	+	expenditures and operating expenses of affiliated
	29	+	wastewater and sewer systems under Public Service
	30	+	Commission jurisdiction to be combined to determine a
	31	+	single rate structure and rates for all customers of
	32	+	such affiliated entities, unless adjustments are
	33	+	necessary due to pre-existing obligations or other
	34	+	circumstances unique to a particular service area.
	35	+	A BILL
	36	+	TO BE ENTITLED
	37	+	AN ACT
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68		-	28 SB137 ~~Enrolled~~
	65	+	28 SB137 INTRODUCED
69	66		Page 2
	67	+	AN ACT
	68	+	Relating to privately owned sewer and wastewater
	69	+	systems; to authorize and provide a procedure for certain
	70	+	private sewer or wastewater systems not subject to regulation
	71	+	of the Public Service Commission to elect to consolidate with
	72	+	certain private systems that are currently under the
	73	+	jurisdiction of the Public Service Commission.
	74	+	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
	75	+	Section 1. For the purposes of this act the following
	76	+	terms have the following meanings:
	77	+	(1) AFFILIATED SYSTEM. A sewer or wastewater system
	78	+	that is both under common ownership and control with a
	79	+	regulated sewer or wastewater entity and not subject to the
	80	+	jurisdiction of the Public Service Commission as of the
	81	+	effective date of this act.
	82	+	(2) COMMON OWNERSHIP OR CONTROL. Ownership, directly or
	83	+	through one or more affiliates, of 50 percent or more of the
	84	+	shares of stock entitled to vote for the election of
	85	+	directors, in the case of a corporation, or 50 percent or more
	86	+	of the voting equity interests in the case of any other type
	87	+	of legal entity, or status as a general partner in any
	88	+	partnership, or any other arrangement whereby an entity
	89	+	controls or has the right to control the selection of 50
	90	+	percent or more of the board of directors, managing members,
	91	+	or equivalent governing body of a legal entity. An "affiliate"
70	92		under the preceding sentence means any corporation, limited
71	93		liability company, partnership, or other legal entity that
	94	+	directly or indirectly controls or is controlled by or is
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	122	+	56 SB137 INTRODUCED
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72	124		directly or indirectly controls or is controlled by or is
73	125		under common control with such entity.
74	126		(3) REGULATED SEWER OR WASTEWATER ENTITY. A privately
75	127		owned sewer or wastewater management entity subject to the
76	128		rate jurisdiction of the Public Service Commission as of the
77	129		effective date of this act. The term includes, but is not
78	130		limited to, any of the following:
79	131		a. A privately owned and operated wastewater system, as
80	132		defined in Section 22–25B–1, Code of Alabama 1975, that is
81	133		required by Chapter 25B, Title 22, Code of Alabama 1975, to be
82	134		operated and maintained by a wastewater management entity
83	135		certified by the Public Service Commission.
84	136		b. Any system subject to the jurisdiction of the Public
85	137		Service Commission pursuant to Section 58-11.21(b) of the
86	138		Constitution of Alabama of 2022.
87	139		Section 2. (a) An affiliated system may elect to become
88	140		subject to the regulatory jurisdiction of the Public Service
89	141		Commission by filing a notice with the commission.
90	142		(b) The Public Service Commission shall certify and
91	143		regulate an affiliated system making an election under this
92	144		section in accordance with Title 37, Code of Alabama 1975, and
93	145		in arriving at a valuation of the property of an affiliated
94	146		system, the Public Service Commission shall give due
95	147		consideration to the private utility's property, original cost
96	148		to the affiliated system, cost of reproduction as a going
97	149		concern when original cost is not available, and other
98	150		elements of value recognized by law for rate-making purposes
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128		-	elements of value recognized by law for rate-making purposes
129	151		as outlined in Section 37-4-17, Code of Alabama, 1975.
	152	+	(c) An affiliated system making an election under this
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	180	+	84 SB137 INTRODUCED
	181	+	Page 4
130	182		(c) An affiliated system making an election under this
131	183		section shall continue to charge the rates in effect at the
132	184		time of election, and which rates shall continue force and
133	185		effect until the rates established by the Public Service
134	186		Commission are finalized and effective.
135	187		(d) In establishing prospective rates and rate
136	188		structures for an affiliated system, the Public Service
137	189		Commission shall consider both the affiliated system and
138	190		regulated systems' capital expenditures and operating expenses
139	191		together as a whole to determine a single rate structure and
140	192		rate amounts for all customers of such combined entity, except
141	193		to the extent the commission finds adjustments are necessary
142	194		due to pre-existing obligations or other circumstances unique
143	195		to a particular area served.
144	196		Section 3. An affiliated system making an election
145	197		under Section 2 shall be subject to the fees established by
146	198		the Public Service Commission for wastewater management
147	199		entities under Section 22–25B–7, Code of Alabama 1975.
148	200		Section 4.(a) Nothing in this act shall infringe upon
149	201		or replace the authority granted to the Jefferson County Board
150	202		of Health pursuant to Act No. 659 (1978).
151	203		(b) This act shall not apply in any county that has a
152	204		local constitutional amendment authorizing the regulation of
153	205		wastewater utilities, except to the extent this act would be
154	206		permitted under such constitutional amendment.
155	207		(c) Except as specifically provided, this act is
156	208		supplemental to all other laws and administrative rules and is
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186		-	supplemental to all other laws and administrative rules and is
187	209		not intended to repeal or replace any existing statute except
188	210		to the extent that there is a direct conflict. In such case,
189		-	this act shall control.
190		-	Section 5. This act shall become effective on October
191		-	1, 2025.
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196		-	89 SB137 Enrolled
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198		-	1, 2025.
199		-	________________________________________________
200		-	President and Presiding Officer of the Senate
201		-	________________________________________________
202		-	Speaker of the House of Representatives
203		-	SB137
204		-	Senate 05-Mar-25
205		-	I hereby certify that the within Act originated in and passed
206		-	the Senate.
207		-	Patrick Harris,
208		-	Secretary.
209		-	House of Representatives
210		-	Passed: 01-Apr-25
211		-	By: Senator Waggoner
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	240	+	to the extent that there is a direct conflict. In such case,
	241	+	this act shall control.
	242	+	Section 5. This act shall become effective on October
	243	+	1, 2025.
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