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

SB314 would expand the Morgan County Municipal Utilities Board of Decatur's control over the City of Decatur's municipally owned utilities (electric, gas, water, wastewater), including how they are organized, staffed, billed, and how revenue is handled, with changes taking effect October 1, 2026.

What This Bill Does

If enacted, the bill gives the board complete control over Decatur's municipally owned utilities and the authority to reorganize how they are run. It allows consolidating finances and operations under one or more general managers and creating new departments as needed. It also enables hiring and supervising staff, setting fiscal years, charging and collecting rates approved by Decatur's governing body, and entering into contracts necessary to operate the utilities (with city consent required for wholesale purchases and for any sales contracts longer than 10 years). The board can collect income, spend it on operations, sue to collect debts, remit net revenues to the City, and provide indemnification and optional insurance for its officers and managers.

Who It Affects

• Group 1: Morgan County Municipal Utilities Board of Decatur (board members, a possible general manager, and department managers) – gains broad authority to organize, consolidate, and manage all utilities and their staff and operations.
• Group 2: City of Decatur and its utility customers – affected by changes to how rates are set, how contracts are approved (including wholesale purchases and long-term sales), how revenues are distributed back to the City, and by the city’s oversight of certain major decisions.

Key Provisions

• Expanded control and organizational authority over Decatur's municipally owned utilities, including consolidating finances and operations under one or more general managers and creating needed departments.
• Operational and financial powers: authority to hire and manage staff, set fiscal years, bill customers at rates approved by Decatur's governing body, enter into necessary contracts (with city consent for wholesale purchases and long-term sales), collect and remit net revenues to the City, and provide indemnification and optional insurance for board members and managers.

AI-generated summary using openai/gpt-5-nano on Feb 17, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Morgan County