Senate Bill 314 Alabama 2026 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

2026 Regular Session

Title

Morgan County; Municipal Utilities Board of Decatur, scope of operating parameters

Summary

The bill expands and consolidates control of Decatur's municipally owned utilities under the Morgan County Board of Decatur.

What This Bill Does

If enacted, SB314 gives the board complete control over Decatur's electric, gas, water, and wastewater utilities and allows it to reorganize finances and management. It permits consolidating finances and operations, creating departments, and appointing a general manager and other staff. The board can hire or discharge personnel, delegate management authority, and set a fiscal year. It also lets the board enter necessary contracts, require consent from Decatur's governing body for wholesale purchases and for long-term sales, collect and allocate revenues, and distribute net income back to the City.

Who It Affects

• City of Decatur utility customers who will be served by the board and whose rates are set by Decatur's governing body
• City of Decatur government and its governing body, which must approve certain contracts and oversee bond and financial requirements
• Morgan County Municipal Utilities Board of Decatur and its staff, including the general manager and department managers, who gain expanded control over operations
• Utility employees and administration who will be managed, directed, and potentially reorganized under the board, with provisions for indemnification and insurance

Key Provisions

• Board shall have complete control of all municipally owned utilities in Decatur (electric, gas, water, wastewater)
• Authority to consolidate financial operations under the board, keeping books that allocate income/expenses to each utility
• Authority to consolidate operations under one or more general managers or departments (administration, personnel, etc.)
• Board may hire/discharge staff and delegate management authority to managers
• Board may enter contracts necessary to perform duties; wholesale utility purchases require city consent; long-term sales contracts (>10 years) require city consent
• Board shall collect charges for services and distribute net revenues to the City as determined by city governance
• Suits for collection and enforcement of agreements shall be conducted by the board in the City’s name, at each utility’s expense
• Board must comply with existing contracts and bond ordinances and account for funds accordingly
• Indemnification and possible insurance coverage for board members/managers, with limits
• Board shall operate economically and promote growth in the service area; effective date October 1, 2026

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 13, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Morgan County