House Bill 141 Alabama 2026 Session

Summary

Primary Sponsor

Chip BrownRepresentative

Republican

Session

2026 Regular Session

Title

Public utilities; maximum fees payable to directors of certain public utility corporations increased, terms of certain directors extended

Summary

HB141 increases the allowed size of public utility boards and raises director fees with varying caps by municipality size, while extending term lengths for newly added directors and updating language.

What This Bill Does

If passed, the bill lets municipalities increase the board of directors for public utilities from three up to five members, and in some cases to seven. It assigns staggered initial terms (two, four, and six years) for new directors and sets six-year terms thereafter. It authorizes payment of fees to the chair and to other directors for services on water, gas, and electric systems, with per-meeting and annual caps that vary by municipality size and county, and it requires reimbursement of actual expenses; it also prohibits fees for sanitary sewer system work. The bill also allows municipal officers to serve on utility boards under certain limits, and makes nonsubstantive formatting updates to current law. It takes effect immediately upon passage.

Who It Affects

• Municipalities that form public utility corporations (water, gas, electric systems) and their governing bodies
• Boards of directors for these public utility corporations (chair and regular directors), including any allowed municipal officer members
• Residents and taxpayers in municipalities where these utility boards operate, who may see changes in board structure and fee practices
• Public officials who may serve as directors on these boards (subject to limits on who may serve and how long their terms can be)

Key Provisions

• Amends Section 11-50-313 to allow increasing a municipal utility board from three to five members, and in certain cases to seven members, with staggered initial terms (four-year and six-year terms for new members) and six-year terms thereafter
• Permits Class 4 (mayor-council) and Class 5 municipalities to have seven-member governing boards for utility corporations under this article
• Establishes initial term lengths for new directors (two-year, four-year, six-year) with subsequent terms set at six years
• Authorizes director fees for water, gas, and electric systems, with caps for the chair and other directors (per meeting and annual caps), and requires reimbursement of actual expenses
• Prohibits director fees for sanitary sewer system work
• Implements population- and county-based variations to fee caps (including examples for Jefferson and Franklin Counties), while maintaining some existing Birmingham-specific fee provisions
• Allows officers of the municipality to serve as board members under certain conditions (maximum number of municipal officers on the board and appointment/terms rules)
• Requires immediate effect upon enactment

AI-generated summary using openai/gpt-5-nano on Feb 26, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties & Municipalities