This amendment updates Alabama law to increase the maximum meeting fees that public utility boards can pay their directors and extends the terms for some new members.
Alabama2026Enacted
HB141
HB141: Higher Pay Limits and Extended Terms for Small Municipal Utility Boards
Last scannedAug 24, 2026, 9:06 AM
In one sentence
This law increases the maximum pay allowed for directors on public utility boards in Alabama towns with fewer than 5,000 people and extends their terms if local government officials have extended terms.
What it does
- Increases the maximum fee a board chair can receive from $600 to $1,200 per meeting for municipalities under 5,000 in population.
- Raises the annual pay limit for board chairs and other members in these small towns from $4,800 to $7,200.
- Extends the term of any utility board member by one year if their current term ends before an extended mayoral or city council term expires.
- Applies only when a previous state law has already lengthened the terms for the mayor and city council members in that town.
Who it affects
- Directors of public utility corporations in Alabama municipalities with fewer than 5,000 residents.
- City councils or governing bodies that set pay rates for these utility boards.
- Mayors and city council members whose terms were previously extended by the state Legislature.
Limits and unknowns
- This law only applies to towns with a population under 5,000 based on the most recent federal census.
- Term extensions for directors happen automatically only if state lawmakers previously extended terms for local mayors and council members.
- The bill does not change pay limits or term rules for utility boards in larger cities.
Plain language
Terms to know
- Municipality
- A town, city, or local government area with its own elected officials.
- Public utility corporation
- An organization created by a town to manage services like water, gas, or electricity for residents.
- Director's fee
- The payment given to members of the board who oversee the public utility corporation.
Official record
Sources
Official summary
This act amends Section 11-50-313, Code of Alabama 1975, relating to municipal utilities boards, to: (1) for municipalities with a population less than 5,000, increase the director's fees that may be paid to the chair of a board from $600 to $1,200 and to all other board members from $400 to $600, not to exceed from $4,800 to $7,200; and (2) for boards located in these municipalities for which an act of the Legislature extended the terms of the mayor and members of the city council, provide that the term of any board member which will expire before the extended terms of the mayor or any city council member is extended by one year.
Official activity
Bill history
- EnactedHouse
- Motion to Read a Third Time and Pass - Adopted Roll Call 1320 (Yeas 33, Nays 0)Senate
- Delivered to GovernorHouse
- Signature RequestedSenate
- Signature RequestedSenate
- Signature RequestedSenate
- EnrolledHouse
- Ready to EnrollHouse
- Ready to EnrollHouse
- Read for the Second Time and placed on the CalendarSenate
- Reported Out of Committee Second HouseSenate
- Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 638 (Yeas 94, Nays 0)House
- Motion to Adopt - Adopted Roll Call 637 (Yeas 97, Nays 0)House
- Third Reading in House of Origin (Yeas 99, Nays 0)House
- Pending Committee Action in Second HouseSenate
- Read for the first time and referred to the Senate Committee on County and Municipal GovernmentSenate
- EngrossedHouse
- County and Municipal Government Engrossed Substitute OfferedHouse
- Read for the Second Time and placed on the CalendarHouse
- Reported Out of Committee House of OriginHouse
Changes
Amendments
1 stored