AlabamaSB3142026 Regular SessionSenate

Morgan County; Municipal Utilities Board of Decatur, scope of operating parameters

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Decatur utility board gains operating control

Beginning October 1, 2026, Decatur's utility board has full, exclusive control of city-owned electric, gas, water, and wastewater utilities. It must run them economically and encourage utility expansion and economic growth in their service areas. The board can reorganize operations, combine financial management, and create departments, while assigning income and expenses to each utility. It can use one general manager or several managers and delegate hiring, firing, and employee oversight within its legal limits. The board can set fiscal years, collect utility income, and spend it on operations. It must follow city bond ordinances and wholesale supply contracts when handling and accounting for funds. It must account for net revenues and pay them to the city as the city governing body directs.

Decatur must approve key utility contracts

Beginning October 1, 2026, Decatur's utility board needs city governing body approval before signing wholesale utility purchase contracts. City approval is also required for utility sales contracts that may bind the city for more than 10 years. The board can otherwise make needed or useful contracts, subject to the law's contracting limits, through officers it designates. Customer rates must be provided and approved by the city governing body; the law sets no specific household prices. The board can handle utility lawsuits and enforce utility rights in the city's name, with the affected utility paying the expense.

Decatur utility officials get limited legal protection

Beginning October 1, 2026, the board must cover claims against board members and general or department managers for official service. It must also reimburse reasonable legal expenses. Payments cannot exceed actual, reasonable, and necessary expenses connected with the matter. Claims arising from willful misconduct or gross negligence are excluded. These protections do not replace other rights, and the board can buy insurance to fund them.

Sponsors & Cosponsors

Sponsor

Arthur Orr
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 135 • No: 0

House vote • 3/5/2026

Third Reading in Second House

Yes: 59 • No: 0 • Other: 45

House vote • 3/5/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 740

Yes: 16 • No: 0 • Other: 89

Senate vote • 2/24/2026

Third Reading in House of Origin

Yes: 30 • No: 0