AL HB337

Proposes a constitutional amendment applying only to Madison County that would place privately owned sewer systems under Public Service Commission (PSC) jurisdiction if they use public rights-of-way, discharge to Grade I-IV wastewater treatment facilities, and bill customers flat fees or usage-based fees.

PSC would regulate certification, rates, charges, and rate increases for qualifying private sewer entities under Title 37 of the Alabama Code.

Counties, municipalities, or governmental utility service corporations (GUSCs) may opt out of PSC regulation by entering into a rate control agreement with the private sewer entity; if such agreement becomes invalid or is terminated, PSC jurisdiction automatically restores.

Entities that voluntarily terminate a rate control agreement cannot opt out of PSC jurisdiction again for 5 years after reinstatement.

Passed the Alabama House on February 17, 2026 with 64 Yeas, 0 Nays, and 36 Abstentions; requires voter approval to become part of the Constitution of Alabama of 2022.