The bill HB141 amends Section 11-50-313 of the Code of Alabama 1975, focusing on the governance of public corporations operating utilities. Key changes include increasing the maximum fees for board members, extending their terms, and clarifying legal language. Municipalities are now allowed to expand their board of directors from three to five or seven members, with initial terms of four or six years for newly added members. The bill also establishes staggered terms for directors and extends the terms of board members in municipalities with populations under 5,000 when the mayor's and governing body's terms are extended. Additionally, the maximum fee for the chair of the board is raised from $600 to $1,200 per meeting, with an annual cap increased from $7,200 to $14,400, while fees for other board members are raised from $400 to $600 per meeting, with annual limits adjusted accordingly.

Furthermore, the bill modifies the compensation structure for municipal board directors, replacing the term "cities having populations" with "municipalities with a population" and specifying new population ranges for different compensation levels. It introduces provisions for municipalities with populations between 6,500 and 8,500, allowing board members to receive compensation, and clarifies that the governing body can set director fees. The bill also ensures that certain provisions do not apply to the City of Montgomery or the City of Prichard Water and Sewer Board. Notably, it removes the provision allowing municipalities with populations under 5,000 to increase their board size from five to seven members and the associated terms for these additional members. The act is set to take effect immediately upon passage, which occurred in the Senate on April 9, 2026.

Statutes affected:
Introduced: 11-50-313
Engrossed: 11-50-313
Enrolled: 11-50-313