HB336ENGROSSED Page 0 HB336 GGBL662-2 By Representative Brown RFD: Boards, Agencies and Commissions First Read: 19-Mar-24 1 2 3 4 5 HB336 Engrossed Page 1 First Read: 19-Mar-24 A BILL TO BE ENTITLED AN ACT Relating to county and municipal authorities; to amend Section 11-88-6, Code of Alabama 1975, to further provide for water, sewer, and fire protection authorities by permitting an individual holding a state, county, or municipal office to be eligible for uncompensated membership on an authority board of directors; and to delete duplicative language and make nonsubstantive, technical revisions to update the existing code language to current style. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Section 11-88-6, Code of Alabama 1975, is amended to read as follows: "ยง11-88-6 (a) Each authority shall be governed by a board of directors. All powers of the authority shall be exercised by the board or pursuant to its authorization. (b)(1) The board shall consist initially of three directors, elected, as soon as may be practicable after the organization of the authority, by the governing body of the determining county for staggered terms as follows: a. The first term of one director shall begin 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HB336 Engrossed Page 2 a. The first term of one director shall begin immediately upon the director's election and shall end at noon on March 1 of the next succeeding odd-numbered calendar year following the election ;. b. theThe first term of another director shall begin immediately upon his or her election and shall end at noon on March 1 of the second succeeding odd-numbered calendar year following the election ; and. c.theThe first term of the remaining director shall begin immediately upon his or her election and shall end at noon on March 1 of the third succeeding odd-numbered calendar year following the election. (2) Thereafter,After the first term, the term of office of each director shall be six years. (c) If any amendment to the certificate of incorporation of the authority, effected pursuant to the provisions of Section 11-88-5, shall increaseincreases the membership of the board, the board shall thereafter consist of suchthe number of directors, elected by suchthe governing bodies, as may be specified in the amendment. The terms of office of any new directors added by any suchthe amendment shall be so arranged that, taking into consideration the terms of office of the original three directors, the terms of office of approximately one-third of all directors ,(or as nearly one-third thereof as may be practicable ), will end at noon on March 1 in each odd-numbered year following the effective date of the amendment. The term of office of each new director, added by amendment as aforesaid, shall following the initial term of suchthe new director, shall be for a period of six 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 HB336 Engrossed Page 3 term of suchthe new director, shall be for a period of six years. If at any time there should beis a vacancy on the board, a successor director to serve for the unexpired term applicable to such of the vacancy shall be elected by that governing body whichthat elected the director whose unexpired term he or she is to fill. Each election of a director, whether for a full six-year term or to complete an unexpired term, shall be made not earlier than 30 days prior to the date on which suchthe director is to take office as such. No officer of the state or of any county or municipality shall, during his or her tenure as such officer, be eligible to serve as a director. (d)(1) Each director elected by a county governing body shall be a duly qualified elector of that county and shall be a resident of and the owner of real property in that part of the service area of the authority which lies within that county. An officer of the state or of any county or municipality, during his or her tenure in the office, may serve as a director subject to subdivision (2). Directors shall be eligible for reelection. (2) Each director shall be reimbursed for expenses actually incurred by the director in and about the performance of the director's duties. If the certificate of incorporation so provides, each director , except the chairman of the board , shall be compensated in an additional amount not to exceed four hundred dollars ($400) per meeting attended but not to exceed four thousand eight hundred dollars ($4,800) per year. The chairman shall, if the certificate so provides, be compensated in an additional amount not to exceed six hundred 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 HB336 Engrossed Page 4 compensated in an additional amount not to exceed six hundred dollars ($600) per meeting attended but not to exceed seven thousand two hundred dollars ($7,200) per year. A director who is also serving his or her tenure as an officer of the state or of any county or municipality may not be compensated for serving as a director. No individual may serve as a director if he or she is an officer or employee of any entity with the authority to elect or appoint a director. (e) Any director of the authority may be impeached and removed from office in the same manner and on the same grounds provided by Section 175 of the Constitution of Alabama of 2022 and the general laws of the state for impeachment and removal of the officers mentioned in Section 175. (f) If the service area, or the greater part thereof, in which an authority is authorized by its certificate of incorporation or any amendment thereto to render water service, fire protection service, sewer service, or any one or more thereofof the same, includes a resort area pursuant to Article 2 of this chapter and the service area is incorporated or annexed into a municipality subsequent to the creation of an authority, and if the municipality has assumed and taken over the fire protection responsibility and the sewer service originally placed upon the authority, the board of directors of the authority shall be increased in membership by a sufficient number of new members to increase membership on the board of directors to a maximum of seven members. Each of the new members to the board of directors shall be appointed by the governing body of the municipality by ordinance duly adopted. The first term of each new member so appointed shall 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 HB336 Engrossed Page 5 adopted. The first term of each new member so appointed shall be staggered for terms of one, two, three, and four years, as needed. Thereafter, the term of the new members added pursuant to this subsection shall be six years. The governing body of the determining county shall continue to make appointments and fill vacancies as heretofore authorized in this section . After May 18, 1993, the governing body of the municipality shall make appointments and fill vacancies as provided in this subsection. All members of the board of directors of the authority shall have all the authority, privileges, immunities, and qualifications as provided in this article. (g) Nothing in this section as amended by Act 2010-580 shall apply to the City of Prichard Water and Sewer Board." Section 2. This act shall become effective on October 1, 2024. 113 114 115 116 117 118 119 120 121 122 123 124 125 126 HB336 Engrossed Page 6 1, 2024. House of Representatives Read for the first time and referred to the House of Representatives committee on Boards, Agencies and Commissions ................19-Mar-24 Read for the second time and placed on the calendar: 1 amendment ................04-Apr-24 Read for the third time and passed as amended Yeas 101 Nays 1 Abstains 0 ................11-Apr-24 John Treadwell Clerk 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148