Bill > SB271

This bill modifies Alabama law regarding how municipalities can charge fees and impose restrictions on utility companies using public streets and infrastructure. Specifically, the bill limits the ability of cities and towns to impose additional fees on electric, natural gas, and manufactured gas utilities beyond existing tax structures. The legislation prohibits municipalities from charging separate fees for utility infrastructure placement or usage beyond current franchise agreements and existing tax levies (which are capped at 3% of gross receipts within the municipality and 1.5% in police jurisdictions). For natural and manufactured gas utilities, any franchise fee increases after December 31, 2025, would require approval by a majority vote of qualified local electors. The bill preserves municipalities' rights to enforce health and safety regulations, require permit fees, mandate infrastructure repair and remediation, and maintain existing liability protections. Importantly, the law does not affect franchise fees for non-utility services like cable or data. The bill aims to standardize and limit municipal fee structures for utility companies, providing more predictability and potentially reducing administrative costs for both municipalities and utility providers. The changes will take effect on June 1, 2025.

Transportation and Infrastructure

https://alison.legislature.state.al.us/bill-search