SB342 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Cam Ward
Republican
Co-Sponsors: J.T. Waggoner Rodger Smitherman Linda Coleman-Madison Priscilla Dunn Greg J. Reed Mark Slade Blackwell
Session: Regular Session 2011
Title: Class 1 municipalities, waterworks board, interest on deposits, rate provided for, Act 80-327, 1980 Reg. Sess. am'd.
Summary: SB342 would require Class 1 municipality public water works boards to pay annual interest on customer security deposits, at the federal funds rate as of December 31 of the preceding year, with immediate effect after passage.
What This Bill Does
Amends Act 80-327, 1980 to mandate interest payments on all customer security deposits for utility service by public water works boards in Class 1 municipalities. The interest rate used each year is the federal funds rate in effect on December 31 of the prior year. The act would take effect immediately once it is passed and approved by the Governor.

Who It Affects
Customers of public water works boards in Class 1 municipalities, who would receive interest earnings on their security deposits.
Public water works boards in Class 1 municipalities, which must pay interest on deposits.

Key Provisions
Amends Act 80-327, 1980 to require payment of interest per annum on all customer security deposits for utility service by public water works boards in Class 1 municipalities.
Sets the interest rate for deposits to be the federal funds rate in effect on December 31 of the preceding calendar year.
Establishes immediate effectiveness following passage and Governor's approval (or as otherwise becoming law).

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Class 1 Municipalities