The bill amends Section 45-52A-35.08 of the Code of Alabama 1975, specifically concerning the governance of public utilities owned by the City of Decatur in Morgan County. Key changes include the board's expanded authority to manage and operate utilities, allowing it to organize operations, consolidate financial activities, and create departments as deemed necessary. The language shifts from mandatory phrases like "shall have the authority to" to more flexible terms such as "may," providing the board with greater discretion in its operations. Additionally, the board is empowered to employ and discharge managers and employees, delegate authority, and enter into contracts necessary for utility operations, with specific provisions regarding the approval of long-term contracts and wholesale service purchases.
Furthermore, the bill introduces a requirement for the board to operate utilities in a manner that promotes economic growth in the service area and mandates the accounting and payment of net revenues to the City of Decatur. It also includes indemnification provisions for board members and managers against claims arising from their service, with limitations on reimbursement for willful misconduct or gross negligence. The act is set to take effect on October 1, 2026.
Statutes affected: Introduced: 45-52A-35
Enrolled: 45-52A-35