HB177 Alabama 2023 Session

Summary

Primary Sponsor

Jim CarnsRepresentative

Republican

Session

Regular Session 2023

Title

Relating to municipal water works boards; to amend Section 11-50-300, Code of Alabama 1975, and to add Sections 11-50-300.1, 11-50-300.2, 11-50-300.3, 11-50-300.4, 11-50-300.5, 11-50-300.6, 11-50-300.7, and 11-50-300.8 to the Code of Alabama 1975, to further provide for the composition, manner of appointment, and length of terms of members of certain municipal water works boards; to provide qualifications for and place limits on the employment of directors; to provide for conversion of these boards to regional boards; to further provide for these boards to amend their articles of incorporation; to subject these boards to the ethics laws of Alabama and require training on the matter; to require these boards to produce certain financial records; and to repeal Sections 11-50-301, 11-50-302, 11-50-303, and 11-50-304, Code of Alabama 1975, relating to certain municipal water works boards.

Summary

HB177 would convert eligible municipal water works boards into regional boards with new governance, ethics training, and public financial reporting requirements, while repealing several old provisions.

What This Bill Does

The bill expands which boards are subject to new rules, converts them into regional boards with seven directors (four appointed by the sponsoring mayor and three by the Governor) serving five-year staggered terms, and imposes qualifications and term limits. It requires directors to have engineering and financial backgrounds, imposes employment restrictions after terms, and sets procedures for converting and amending the board's incorporation. It also subjects the boards to ethics laws, requires annual ethics training, mandates extensive financial reporting (budgets, monthly and annual statements, audits, and long-range plans) that must be publicly accessible, and establishes a chief operating officer to manage day-to-day operations. In addition, it repeals several existing sections related to municipal water works boards and clarifies conversion timelines and oversight.

Who It Affects

• Municipal water works boards that meet the criteria (those serving customers or holding assets in four or more counties outside the principal county) and their current and future directors, who would be reorganized as regional boards with new appointment, term, and qualification rules.
• Residents and taxpayers in the boards' service areas, who would gain public access to financial records and receive more transparent governance; and public officials (governor and sponsoring mayors) who appoint directors and approve amendments.

Key Provisions

• Amends Section 11-50-300 to apply the new division to eligible municipal water works boards and outlines new governance requirements.
• Adds Sections 11-50-300.1 through 11-50-300.8 establishing definitions, conversion procedures, regional board structure, qualifications, bylaws, amendments to incorporation, ethics training, financial reporting, non-employment restrictions, and the role of a Chief Executive Officer.
• Converts eligible boards into regional boards with a seven-member board (four appointed by the sponsoring mayor, three by the Governor), requires residency in the area served, and mandates expertise in engineering and finance for certain members.
• Sets five-year terms for directors, with staggered terms for initial appointees and a limit of two full terms plus possible partial term; disallows individuals who have served two or more terms prior to conversion.
• Requires annual ethics training for directors and employees under the Ethics Act and annual reporting requirements relating to governance and operations.
• Requires regional boards to prepare budgets, monthly and annual financial statements, annual audited statements, a five-year operating plan, and a ten-year capital plan; these must be reviewed by a consulting engineering firm and made public online.
• Imposes a 24-month non-employment restriction for former directors with the regional board or with firms that work for the board.
• Creates a Chief Executive Officer with authority to manage daily operations; employees report to the CEO; contracts (other than the CEO's) are recommended by the CEO and approved by the board.
• Authorizes amendments to the regional board’s certificate of incorporation with required consents and formal filing; effective upon filing.
• Repeals existing Sections 11-50-301 through 11-50-304 and makes the new framework effective immediately upon passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Water Works Board, certain boards reorganized and further provided for