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SB314 • 2026

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

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

Energy Labor
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Orr
Last action
2026-03-13
Official status
Enacted
Effective date
Not listed

Plain English Breakdown

The bill summary text does not provide specific details on how changes will be implemented.

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

This act amends the scope of the board's operating parameters for municipally owned utilities in Morgan County.

What This Bill Does

  • Amends Section 45-52A-35.08 to expand the board's authority over municipally owned utilities, including electric, gas, water, and wastewater services.
  • Allows the board to organize utilities under its control as it deems advisable, such as consolidating financial operations or appointing a general manager.
  • Gives the board power to hire and fire employees needed for utility operations.
  • Enables the board to enter into contracts necessary for utility operations, subject to city approval for certain types of contracts.

Who It Names or Affects

  • The Municipal Utilities Board of Decatur in Morgan County
  • Employees working under the board's control

Terms To Know

Municipally owned utilities
Public services like electricity, gas, water, and wastewater that are owned by a city or town.
General manager
A top-level executive responsible for managing the day-to-day operations of an organization.

Limits and Unknowns

  • The bill does not specify how the board will implement these changes.
  • Some contract approvals still require city governing body consent, limiting the board's autonomy in certain areas.

Bill History

  1. 2026-03-13 Senate

    Enacted

  2. 2026-03-05 House

    Motion to Read a Third Time and Pass - Adopted Roll Call 740 (Yeas 16, Nays 0)

  3. 2026-03-05 House

    Third Reading in Second House (Yeas 59, Nays 0)

  4. 2026-03-05 Senate

    Delivered to Governor

  5. 2026-03-05 House

    Signature Requested

  6. 2026-03-05 Senate

    Enrolled

  7. 2026-03-05 Senate

    Ready to Enroll

  8. 2026-03-03 House

    Read for the Second Time and placed on the Calendar

  9. 2026-03-03 House

    Reported Out of Committee Second House

  10. 2026-02-24 Senate

    Motion to Read a Third Time and Pass - Adopted Roll Call 516 (Yeas 30, Nays 0)

  11. 2026-02-24 Senate

    Third Reading in House of Origin (Yeas 30, Nays 0)

  12. 2026-02-24 House

    Pending Committee Action in Second House

  13. 2026-02-24 House

    Read for the first time and referred to the House Committee on Local Legislation

  14. 2026-02-19 Senate

    Read for the Second Time and placed on the Calendar

  15. 2026-02-19 Senate

    Reported Out of Committee House of Origin

  16. 2026-02-17 Senate

    Pending Committee Action in House of Origin

  17. 2026-02-17 Senate

    Read for the first time and referred to the Senate Committee on Local Legislation

Official Summary Text

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

Current Bill Text

Read the full stored bill text
SB314 ENROLLED
Page 0
SB314
9J5C2MB-2
By Senator Orr (N & P)
RFD: Local Legislation
First Read: 17-Feb-26
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SB314 Enrolled
Page 1
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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SB314 Enrolled
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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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SB314 Enrolled
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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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SB314 Enrolled
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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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SB314 Enrolled
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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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SB314 Enrolled
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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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