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SB314 ENROLLED
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SB314
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By Senator Orr (N & P)
RFD: Local Legislation
First Read: 17-Feb-26
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SB314 Enrolled
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First Read: 17-Feb-26
Enrolled, An Act,
Relating to Morgan County; to amend Section
45-52A-35.08, Code of Alabama 1975; to expand the scope of the
board's operating parameters.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 45-52A-35.08, Code of Alabama 1975,
is amended to read as follows:
"§45-52A-35.08
(a) The board shall have complete control of each of
the public utilities owned by the City of Decatur including,
without limitation, the electric, gas, water, and wastewater
services and facilities of the City of Decatur, and shall
manage and operate each such municipally owned utility. It
shall have the authority to The board may organize the
utilities under its control in such manner as it the board
shall deem advisable including, without limitation, authority
to consolidate consolidating all financial operations of the
utilities under its control so long as the books of the
operations are kept in such manner as to allocate to the
respective utilities the income and expenditures applicable to
them; authority to consolidate consolidating all operations
under one general manager; authority to consolidate
consolidating the operations of any of the utilities under its
the board's control under one operation manager or under a
separate manager or managers; and authority to create creating
any departments within the organization which it the board
shall deem to be in the best interest of the utilities, such
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shall deem to be in the best interest of the utilities, such
as an administration department, a personnel department and,
or other departments which appear to the board to be
desirable.
(b) The board shall have authority to employ , upon
terms to be fixed by the board, and to may employ or
discharge , a general manager and such other managers and
employees which may be needed in the operations under the
control of the board.
(c) The board shall have authority to may delegate to
any general or departmental manager it the board may employ,
the authority to employ and or discharge other employees which
may be needed; to direct their work and to manage, control,
and operate the public utility or utilities of the City of
Decatur of which he or she is the manager, and to account to
the board for his or her acts in so doing, but his or her
authority shall be restricted as the authority of the board is
restricted in this part.
(d) The board may adopt such fiscal year or years for
the operations under its control as it the board may from time
to time determine.
(e)(1) The board shall have the power and authority and
it shall be its duty to charge for and collect all accounts
due for any service which any of the utilities under its the
board's control may furnish to its customers, upon rates to be
provided and approved by the governing body of the City of
Decatur.
(2) Subject to the limitation contained in Section
45-52A-35.14, the board shall have the authority to enter
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45-52A-35.14, the board shall have the authority to enter
into, on behalf of the City of Decatur, may enter into all
contracts and agreements which are necessary or desirable in
the performance of its duties under this part. Such contracts
may be executed, on behalf of the City of Decatur, by such
officer or employee of the board as may be designated by the
board.
(3) Contracts for purchase of utility services at
wholesale may not be executed by or on behalf of the board
without the consent and approval of the governing body of the
city.
(4) Contracts for sale of utility services which may
bind the city for more than 10 years may not be executed by or
on behalf of the board without the consent and approval of the
governing body of the city.
(5) The board shall have the right to may collect and
receive all income from the operation of the utilities under
its control and to expend the same in the operation of the
same.
(6) Suits for the collection of accounts due for
service which any utility may furnish to its customers or for
enforcement of agreements made on behalf of the city by the
board or for the enforcement of other rights of such utilities
shall be conducted by the board, at the expense of the
respective utilities, in the name of the City of Decatur.
(f) The board shall comply with all provisions of
contracts made by the City of Decatur for the purchase of
electricity, gas, or other utility services at wholesale and
with the provisions of all bond ordinances adopted by the
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with the provisions of all bond ordinances adopted by the
governing body of the City of Decatur pertaining to the
municipally owned utilities of the city and shall distribute
and account for funds received from the sale of utility
services as required by any such contracts or bond ordinances.
(g)(1) Each member of the board and each general
manager appointed by the board, and each departmental manager
appointed by the general manager, now or hereafter serving as
such, shall be indemnified by the board against any and all
claims and liabilities to which he or she has or shall become
subject by reason of serving or having served as such or by
reason of any action alleged to have been taken, omitted, or
neglected by him or her as such board member or manager; and
the board shall reimburse each such person individual for all
legal expenses reasonably incurred by him or her in connection
with any such claim or liability, provided , however, that no
such person individual shall be indemnified against, or be
reimbursed for, any expense incurred in connection with any
claim or liability arising out of his or her own willful
misconduct or gross negligence.
(2) The amount paid to any board member or manager by
way of indemnification shall not exceed his or her actual,
reasonable, and necessary expenses incurred in connection with
the matter involved. The right of indemnification herein
provided for by this subsection shall not be exclusive of any
rights to which any board member or manager of the Municipal
Utilities Board of Decatur board may otherwise be entitled by
law. The board is authorized to may purchase suitable
insurance coverage for such indemnity.
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insurance coverage for such indemnity.
(h) The board shall operate all municipally owned
utilities economically and in a manner that encourages the
expansion of and economic growth in the service area of each
utility. The board shall also account for and pay over any net
revenues realized from such operations to the City of Decatur
at such time or times and in such manner as may be determined
by the governing body of the City of Decatur."
Section 2. 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
SB314
Senate 24-Feb-26
I hereby certify that the within Act originated in and passed
the Senate.
Patrick Harris,
Secretary.
House of Representatives
Passed: 05-Mar-26
By: Senator Orr
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