HB492 Alabama 2014 Session

Summary

Primary Sponsor

Randall Shedd

Republican

Session

Regular Session 2014

Title

Water works boards, serving counties other than co., where organized, additional board members, term, compensation, coverage by Ethics Law, notice and hearing regarding rate increases

Summary

HB492 would change governance and financing rules for certain municipal water boards by adding a county-appointed member, setting term and pay limits, applying ethics rules, requiring rate-change notice and hearings, and adding withdrawal fees to counties.

What This Bill Does

The bill applies to municipal water boards that serve retail customers in four or more counties beyond the principal county. It creates a process for appointing an additional board member by the principal county and by each other county served, with specific residency and customer requirements. It places term limits on board members (no more than two full terms), caps compensation and expense allowances at $500 per month, applies the State Ethics Law to board members and staff, requires 30-day notice and a public hearing before any rate increase, and requires the board to pay a withdrawal fee to counties where large amounts of water are taken from the system.

Who It Affects

• Municipal water works boards that operate in four or more counties: face new appointment rules, term limits, pay limits, ethics requirements, rate-change procedures, and withdrawal-fee obligations.
• County commissions in the principal county and in other counties served by the board: gain authority to appoint new board members (with residency and customer requirements) and oversee compliance with the new provisions.
• Board members and board staff: subject to term limits (two full terms), a monthly compensation/expense cap of $500, and State Ethics Law coverage.
• Ratepayers served by these boards: rate increases would require 30-day notice and a public hearing before adoption.

Key Provisions

• Applies to municipal water works boards serving retail customers in four or more counties beyond the principal county.
• On the first vacancy, the principal county's commission appoints a board member (who may not be a resident of the authorizing municipality).
• An additional board member must be appointed by each county where water customers are served (other than the principal county); the new member is a resident of that county and a water customer, serving a four-year term with full powers and compensation.
• All board members have a maximum of two full terms; terms for new appointees are four years; vacancies are filled to continue the remainder of the term.
• Board members and employees are subject to the State Ethics Law; no member may receive more than $500 per month in compensation and/or expense allowances.
• No rate increase may be adopted without at least 30 days’ prior notice and a public hearing before the vote on the rate increase.
• If more than 25 million gallons per day are withdrawn by the board, the board must pay a withdrawal fee of $0.05 per 1,000 gallons to the counties where withdrawals occur.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Water and Sewer Systems