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SB185 ENROLLED
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SB185
ZQFECWR-2
By Senators Coleman-Madison, Waggoner, Smitherman, Woods,
Coleman (N & P)
RFD: Jefferson County Legislation
First Read: 20-Jan-26
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First Read: 20-Jan-26
Enrolled, An Act,
Relating to public transportation in counties having a
population of 600,000 or more; to amend Section 11-32-7, Code
of Alabama 1975, to provide that a transit authority is
authorized to participate in business organizations relating
to transit operations, land acquisitions, and activities
incidental to the operation of the authority; to create,
establish, acquire, operate, or support subsidiaries of the
authority; to make or arrange for loans for the activities of
the business organizations; to provide that the business
organizations with which the authority participates shall not
have the power of eminent domain; to revise Section 11-32-2,
Code of Alabama 1975, to make conforming changes; and to make
nonsubstantive, technical revisions to update the existing
code language to current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 11-32-7, Code of Alabama 1975, is
amended to read as follows:
"§11-32-7
(a) The authority shall exercise powers and duties
necessary to the discharge of its powers and duties in
corporate form as follows:
(1) Have succession by its corporate name in perpetuity
subject to Section 11-32-20.
(2) Sue and be sued in its own name in civil suits and
actions and defend suits against it.
(3) Adopt and make use of a corporate seal and alter
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(3) Adopt and make use of a corporate seal and alter
the same at its pleasure.
(4) Adopt and alter bylaws for the regulation and
conduct of its affairs and business.
(5) Acquire, receive, take, by purchase, gift, lease,
devise, or otherwise, and hold property of every description,
real, personal, or mixed, whether located in one or more
counties or municipalities and whether located within or
outside the authorizing county.
(6) Make, enter into, and execute contracts,
agreements, leases, and other instruments and take other
actions as may be necessary or convenient to accomplish any
purpose for which the authority was organized, or exercise any
power expressly granted under this chapter. It is further
provided that personnel employed and vendors hired with funds
provided under this chapter shall reflect the racial and
gender percentages within the authorizing county.
(7) Plan, establish, develop, acquire, purchase, lease,
construct, reconstruct, enlarge, improve, maintain, equip, and
operate a system for the provision of public transportation
service within the authorizing county, or within any other
county of the state, and without any requirement that the
system be interconnected or otherwise constitute an integrated
operational unit.
(8) Acquire real and personal property, franchises, and
easements deemed necessary or desirable in connection with the
system.
(9) Establish long-range plans and an annual program
for public transportation in consultation with plans adopted
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for public transportation in consultation with plans adopted
by the Metropolitan Planning Organization and the Regional
Planning Commission, the plans and programs to be coordinated
with the plans for land use and development by counties and
municipalities in the geographic area of the authority, in
cooperation with the Regional Planning Commission and the
Metropolitan Planning Organization; assure consistency between
public transportation plans and related land use policies and
plans; and provide for funds sufficient to ensure the planning
and consultation as required among the authority, the
Metropolitan Planning Organization, and the Regional Planning
Commission.
(10) Develop or make grants for development of
alternative transportation projects designed to enhance access
to public transportation service in furtherance of the goal of
improved mobility within the system providing public
transportation service and in accordance with Section 23 U.S.C.
§ 134 of Title 23 and Chapter 49 U.S.C. § 53 of Title 49 of
the United States Code .
(11) Own, operate, finance, and provide public
transportation service within the authorizing county or in any
part of any other county upon the terms and for rates or other
consideration as the board may prescribe.
(12) Provide charter service within the state upon the
terms and for the rates or other consideration as the board
may prescribe unless prohibited by federal or state law, and
use or operate any part of any transportation system owned by
the authority in the charter service.
(13) Sell and issue bonds of the authority in order to
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(13) Sell and issue bonds of the authority in order to
provide funds for any corporate function, use , or purpose, the
bonds to be payable solely from the sources specified in
Sections 11-32-9 and 11-32-13.
(14) Assume obligations secured by a lien on, or
payable out of or secured by a pledge of the revenues from,
any transit system or any part thereof, that may be acquired
by the authority, any obligation so assumed to be payable by
the authority solely from the sources from which bonds of the
authority may be made payable pursuant to Sections 11-32-9 and
11-32-13.
(15) Pledge for payment of any bonds issued or
obligations assumed by the authority any revenues from which
those bonds or obligations are made payable as provided in
this chapter.
(16) Execute and deliver, in accordance with Sections
11-32-9 and 11-32-13, mortgages and deeds of trust and trust
indentures, or either.
(17) Exercise the power of eminent domain, except as
limited by state law, except the authority may not acquire,
without the consent of the owner, any transportation system
from which public transportation service is currently being
furnished. The authority may not acquire, by eminent domain ,
acquire any real property or rights owned or held by public or
private railroads or utilities.
(18) Expend funds for the purchase or lease of
materials, equipment, supplies, or other personal property
without compliance with Chapter 16 of Title 41.
(19) Appoint, employ, contract with, and provide for
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(19) Appoint, employ, contract with, and provide for
the compensation of, officers, employees, and agents,
including, but without limitation to, engineers, attorneys,
management consultants, fiscal advisers, or other consultants
without regard to Chapter 16 of Title 41, or any law
establishing a civil service or merit system that might
otherwise be applicable, as the business of the authority may
deem necessary or desirable, and also provide a system of
disability pay, employee insurance, retirement compensation,
pensions, or other employee benefit plans as the authority may
deem necessary or desirable. This chapter may not be construed
to affect the rights and privileges of the employees of the
system.
(20) Make and enforce reasonable rules and regulations
governing the use of any public transportation service
provided by the authority.
(21) Provide for any insurance as the board may deem
advisable.
(22) Invest funds of the authority that the board may
determine are not presently needed in the operation of its
properties in bonds of, or guaranteed by, the United States of
America or any agency of the United States, bonds of the
state, bonds of any county or municipality, interest-bearing
bank deposits, any agreement to repurchase any one or more of
the foregoing, any money market fund consisting of any one or
more of the foregoing, or any combination thereof.
(23) Cooperate with the United States of America or its
agencies or instrumentalities, the state, any county,
municipality, or other political subdivision of the state, and
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municipality, or other political subdivision of the state, and
any public corporation organized under the laws of the state
and make or receive funds from any of them in the terms as the
board may deem advisable or prescribe to make contracts with
them, or any of them, as the board deems advisable to
accomplish the purposes for which the authority was
established.
(24) Sell and convey its properties that may have
become obsolete or worn out or that may no longer be needed or
useful as a part of any transportation system of the
authority.
(25) Sell and convey, with or without valuable
consideration, any of its transit systems or any portion of a
transit system, to any one or more counties, municipalities,
or public corporations organized under the laws of the state,
which have the corporate power to operate the system, or
portions of a transit system, conveyed, and the property and
income of which are not subject to taxation except that the
sale and conveyance may be made only of the following:
a. With the consent of the authorizing county, the
principal municipality, and each participating municipality,
the consent to be evidenced by a resolution adopted by the
governing body of each consenting county and municipality.
b. If the conveyance would not constitute a breach of
any then outstanding mortgage and deed of trust, trust
indenture, or other agreement to which the authority is a
party.
(26) Enter into agreements with all or any part of the
employees of the authority or with any groups or associations
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employees of the authority or with any groups or associations
representing the employees.
(27) Enter into a management agreement or agreements
with any person for the management by or for the authority of
any public transportation service upon any mutually agreeable
terms and conditions.
(28) Require that all laborers and mechanics employed
by contractors or subcontractors in the performance of
construction work for the authority be paid wages at rates not
less than those prevailing on similar construction in the
locality where the work is performed as determined by the
United States Secretary of Labor or any department, agency , or
instrumentality of the United States or of the state.
(29) If the authority acquires an existing system for
the provision of public transportation service, enter into
arrangements necessary or desirable to protect the interest of
employees of any acquired system including, without limiting
the generality of the foregoing following :
a. The preservation of rights, privileges, and benefits
including continuation of pension rights and benefits under
existing agreements.
b. The protection of individual employees against a
worsening of their positions with respect to their employment.
c. Assurance of employment to the employees of acquired
transportation systems, except executives and administrative
officers, and priority of reemployment of the employees
terminated or laid off.
d. Paid training or retraining programs.
(30) Fix and revise from time to time reasonable rates,
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(30) Fix and revise from time to time reasonable rates,
fees, and other charges for public transportation service
furnished or to be furnished by any system owned or operated
by the authority, and collect all charges made by it.
(31) Prepare, adopt, and implement a set of policies
that shall govern and set standards for, the conduct of all
members of the board and all employees of the authority which
shall include, but are not limited to, the following:
a. Provide for penalties for a violation.
b. Prohibit unethical conduct and require each director
and employee of the authority to comply with all the
provisions of the policy which shall include, but not
necessarily be limited to, the provisions of the code of
ethics for public officials and employees as provided for in
Chapter 25 of Title 36, and rules and regulations
promulgated adopted thereunder by the stateState Ethics
Commission.
c. Allow for the reimbursement of the expenses of
directors and employees, subject to any requirements provided
in the policy.
d. Provide a method of keeping records for expenses of
directors and employees.
e. Regulate business dealings and contracts between the
authority and directors or employees of the authority and
business dealings between the authority and members of the
family of directors or employees of the authority.
(32) Do any and all things necessary to own, operate,
facilitate, provide, or promote public transportation services
within the authorizing county or any other county of the
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within the authorizing county or any other county of the
state.
(b)(1) To assist the authority in fulfilling its
purpose, in addition to the powers and duties in subsection
(a), the authority may do any of the following:
a. Participate: (i) as a shareholder of a corporation;
(ii) as a limited or general partner of a limited or general
partnership; (iii) as a joint venture partner of a joint
venture; (iv) as a member of a nonprofit corporation; or (v)
as a member of any other lawful form of business organization
relating to transit operations, land acquisitions, or other
incidental operations of the authority.
b. Create, establish, acquire, operate, or support
subsidiaries and affiliates of the authority, either for
profit or nonprofit.
c. Make or arrange for loans, contributions to capital,
and other debt and equity financing for the activities of the
business organization described in paragraph a.
(2) Nothing in this subsection authorizes any business
organization with which an authority participates or any
subsidiary or affiliate of the authority to exercise eminent
domain.
(c)(1) The board shall establish a separate and
independently accountable TCAB. The TCAB shall be established
by the board by July 23, 2013. The TCAB shall be composed of
persons individuals each of whom is a duly qualified elector of
the authorizing county. In addition, the executive director of
the authority shall serve as an ex officio nonvoting member of
the TCAB. The procedure for making appointments to the TCAB
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the TCAB. The procedure for making appointments to the TCAB
and establishing the terms of the appointments shall be
determined by the board in its sole discretion. The procedure
shall include the approval of persons individuals appointed to
the TCAB by the authorizing county, principal municipality, or
participating municipalities. In making appointments to the
TCAB the following shall be considered:
a. Representation from all geographic regions served by
the authority.
b. Minority representation to reflect the racial,
gender, geographic, urban, rural, and and economic diversity
within the geographic regions served by the authority.
c. Representation from users of the system providing
public transportation service, paratransit users, and
advocates.
(2) The board shall ensure that the authorizing county,
the principal municipality, and each participating
municipality shall be represented on the TCAB and that the
number of representatives of each shall roughly approximate
the funding normally provided by each.
(2)(3) The TCAB shall be advisory to the authority and
perform the following duties:
a. Serve as a body to advise the authority, the board,
and private persons on the development and implementation of
policies and programs relating to public transportation, and
assist in the coordination of these activities.
b. Adopt bylaws, elect officers including a chair, and
establish procedures for its operation within 30 days of its
creation; provided, however, that the bylaws for the TCAB
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creation; provided, however, that the bylaws for the TCAB
shall be subject to approval or amendment by the board.
c. Advise and make recommendations regarding transit
development plans, comprehensive operations analysis, annual
service, and marketing and annual advertising plans developed
by the authority.
(3)(4) The board and the TCAB shall meet together at
least once every six months at the time and place as shall be
mutually agreeable.
(4)(5) The board may, by three-fourths vote of the
members of the board, may determine to disband and
reconstitute the TCAB.
(c)(d) The board shall establish, from time to time, a
fiscal year for the authority.
(d)(e) A majority of the directors then in office shall
constitute a quorum at any meeting of the board for the
transaction of business. The act of a majority of the
directors present at any meeting at which there is a quorum
shall be an act of the board.
(e)(f) The recovery of damages under any judgment or
judgments against the authority shall be limited to one
hundred thousand dollars ($100,000) for bodily injury or death
for one person in any single occurrence. Recovery of damages
under any judgment or judgments against the authority shall be
limited to three hundred thousand dollars ($300,000) in the
aggregate where more than three persons have claims or
judgments on account of bodily injury or death arising out of
any single occurrence. Recovery of damages under any judgment
or judgments against the authority shall be limited to one
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or judgments against the authority shall be limited to one
hundred thousand dollars ($100,000) for damage or loss of
property arising out of any single occurrence. The authority
may not settle or compromise any claim for bodily injury,
death, or property damage for an amount in excess of the
amounts stated in this subsection."
Section 2. Section 11-32-2, Code of Alabama 1975, is
amended to make conforming changes to read as follows:
"§11-32-2
As used in this chapter, the following words and
phrases shall mean the following unless the context clearly
indicates otherwise:
(1) AD VALOREM TAX. Those real and personal property ad
valorem taxes collected by the county tax collector, the
director of revenue of the county, or revenue commissioner, if
any, for the county, but shall exclude all ad valorem taxes
collected for the State of Alabama and all boards of
education, municipalities, fire districts, or other entities
located in the county.
(2) APPLICANT. A natural person who files a written
application with the governing body of any county to which
this chapter applies and with a municipality in the county,
all in accordance with Section 11-32-3.
(3) AUTHORITY. The public corporation organized
pursuant to this chapter, which shall be an agency of the
state but shall not be a political subdivision of the state.
(4) AUTHORIZING COUNTY. Any county the governing body
of which shall have adopted an authorizing resolution, even if
the population of the county should fall falls below 600,000.
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the population of the county should fall falls below 600,000.
(5) AUTHORIZING MUNICIPALITY. Any municipality the
governing body of which shall have adopted an authorizing
resolution.
(6) AUTHORIZING RESOLUTION. A resolution, adopted by
the governing body of any county to which this chapter applies
or by a municipality in the county, all in accordance with
Section 11-32-3.
(7) BOARD. The Board of Directors of an authority.
(8) BONDS. Bonds, notes, warrants, certificates, and
other obligations representing an obligation to pay money.
(9) COUNTY. Any county in the state.
(10) DIRECTOR. A member of the board.
(11) FISCAL YEAR. The 12-month period provided for in
subsection (c) of Section 11-32-7 (d).
(12) GOVERNING BODY. With respect to a county, its
county commissioners, board of revenue, or other like
governing body and with respect to a municipality, its city or
town council, board of commissioners, or other like governing
body.
(13) INCORPORATORS. The persons forming a public
corporation organized pursuant to this chapter.
(14) LABOR UNION. An organization in which employees
participate for the purpose of dealing with one or more
employers concerning grievances, labor disputes, wages, rates
of pay, hours of employment, or conditions of work.
(15) METROPOLITAN PLANNING ORGANIZATION. The forum for
cooperative transportation decision making for a metropolitan
planning area pursuant to 23 U.S.C. § 134 and 49 U.S.C. §
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planning area pursuant to 23 U.S.C. § 134 and 49 U.S.C. §
5303.
(16) MUNICIPALITY. An incorporated city or town of this
state.
(17) PARATRANSIT. Comparable transportation service
required by the Americans with Disabilities Act for
individuals who are unable to use fixed route transportation
systems.
(18) PARTICIPATING MUNICIPALITY. A municipality in an
authorizing county, other than the principal municipality,
which is then providing funds for the authority, pursuant to
resolution, contract, or otherwise.
(19) PERSON. Unless limited to a natural person by the
context in which it is used, includes a public or private
corporation, municipality, county, or an agency, department,
or instrumentality of the state or of a county or
municipality.
(20) PRINCIPAL MUNICIPALITY. The municipality in an
authorizing county having the largest population in the
authorizing county according to the last or any subsequent
federal decennial census.
(21) PRINCIPAL OFFICE. The place at which the
certificate of incorporation and amendments to the certificate
of incorporation, the bylaws, and the minutes of proceedings
of the board are kept.
(22) PROPERTY. Real and personal property, and any and
all interests in the real and personal property.
(23) PUBLIC TRANSPORTATION SERVICE. All service
involved in the transportation of passengers for hire by means
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involved in the transportation of passengers for hire by means
of buses, street railway, elevated railway, subway,
underground railroad, light rail, mass transit systems, motor
vehicles, or other means of conveyance generally associated
with or developed for mass surface or sub-surface
transportation of the public, but does not include any service
involved in transportation by taxicab, airport limousine, or
industrial bus; however, public transportation service does
not include aircraft or any air service subject to the Air
Carrier Access Act of 1986 or managed by an airport authority
of the principal municipality.
(24) REGIONAL PLANNING COMMISSION. The regional
organization representing governing bodies of local
governments under Act 584 of the 1963 Regular Session (Acts
1963, p. 1278) or Act 1126 of the 1969 Regular Session (Acts
1969, p. 2084).
(25) TCAB. The transit citizens advisory board
established herein.
(26) TRANSIT SYSTEM. Land, plants, systems, facilities,
buildings, garages, vehicles of all types, rails, lines, and
any combination of any of the following, used or useful or
capable of future use in furnishing public transportation
service, and all other property deemed necessary or desirable
by an authority for use in furnishing public transportation
service.
(27) STATE. The State of Alabama."
Section 3. This act shall become effective on October
1, 2026.
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1, 2026.
________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB185
Senate 10-Feb-26
I hereby certify that the within Act originated in and passed
the Senate.
Patrick Harris,
Secretary.
House of Representatives
Passed: 17-Mar-26
By: Senator Coleman-Madison
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