HB436INTRODUCED Page 0 HB436 HCP4333-1 By Representatives Harrison, Pettus(Constitutional Amendment) RFD: Local Legislation First Read: 09-Apr-24 1 2 3 4 5 6 HCP4333-1 04/09/2024 FC (L)ma 2024-277 Page 1 First Read: 09-Apr-24 SYNOPSIS: This bill would propose an amendment to the Constitution of Alabama of 2022, to provide for the creation of the Lauderdale County Electric Board to operate the distribution system for electricity in Lauderdale County. The amendment would provide for the members of the board to be appointed by the City Council of the City of Florence and by the Lauderdale County Commission. A BILL TO BE ENTITLED AN ACT To propose an amendment to the Constitution of Alabama of 2022, relating to Lauderdale County, to create the Lauderdale County Electric Board; to provide for the members of the board; to transfer all duties, assets, and employees of the City of Florence Electricity Department to the board; and to provide for the operation of the distribution system for electricity in Lauderdale County. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. The following amendment to the Constitution of Alabama of 2022, is proposed: 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 HB436 INTRODUCED Page 2 of Alabama of 2022, is proposed: PROPOSED AMENDMENT (a) The Lauderdale County Electric Board is created to commence operation on July 1, 2025, to operate the distribution system for electricity in Lauderdale County, as formerly operated solely by the City of Florence Electricity Department. (b) The Lauderdale County Electric Board shall be composed of five members. Two members of the board shall be appointed by the City Council of the City of Florence and two members of the board shall be appointed by the Lauderdale County Commission. The fifth member of the board shall be appointed for terms on a rotating basis by the Lauderdale County Commission and the City Council of the City of Florence with the person appointed to the first term to this position on the board appointed by the Lauderdale County Commission. (c) In order to stagger the terms of the board, two members of the board, one appointed by the City Florence and one appointed by the Lauderdale County Commission, shall serve an initial term of two years. Thereafter, these members shall serve a term of four years. The remaining initial members shall be appointed for a term of four years. Thereafter, all members shall serve a four-year term. The term of all members shall commence on March 1, 2025. All board members shall serve at the pleasure of the appointing governing body. (d) Vacancies on the board shall be appointed by the same appointing authority that appointed the member serving in the vacant seat. A new member appointed to fill a vacancy during the term of membership shall serve the remainder of the 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 HB436 INTRODUCED Page 3 during the term of membership shall serve the remainder of the term of the vacant seat. (e) Each member of the board shall be a qualified elector of Lauderdale County. No person shall serve on the board who is a member of the Lauderdale County Commission or a member of the municipal governing body of any municipality in the county or an employee or former employee of the City of Florence Electricity Department or the board. (f) The board shall adopt bylaws to provide for the selection of officers of the board, the meeting days of the board, and to otherwise provide for the operation of the board. A majority of the members shall constitute a quorum of the board. The first meeting of the board shall be called by the Chair of the Lauderdale County Commission who shall preside for the election of the initial chair of the board. (g) Effective July 1, 2025, the operation and management of the electric distribution system serving Lauderdale County operated by the City of Florence Electricity Department shall be transferred to the Lauderdale County Electric Board. All employees on that date of the City of Florence Electricity Department shall be transferred to the board at the same salary and with the same benefits and seniority as the employee is receiving on that date. (h) Effective July 1, 2025, all books, records, supplies, funds, equipment, and any other assets of the City of Florence Electricity Department shall be transferred to the board. (i) The Lauderdale County Electric Board shall succeed to any powers formerly exercised or otherwise available to the 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 HB436 INTRODUCED Page 4 to any powers formerly exercised or otherwise available to the City of Florence Electricity Department to operate the electric distribution system in Lauderdale County, including, but not limited to, the exercise of the power of eminent domain as needed to provide for the operation of the electric distribution system. (j) This amendment is self-executing, but the Legislature may enact additional local acts as deemed necessary to modify specific provisions of this amendment to carry out the purpose and intent of this amendment. (k) Employees of the board shall continue to participate in the retirement plan of the City of Florence under the same terms and conditions as other members of the plan unless otherwise authorized by law. The board shall pay the employer's share as a contribution to the plan for each employee as determined by the actuary for the plan. Employees of the board shall contribute the employees' share to the plan in the same percentage of salary as employees of the city. (l) The employees of the board shall participate in the health insurance plan for county employees on the same conditions as other county employees. (m) The board shall appoint a chief executive officer who shall be responsible for the operation of the electric distribution system in accordance with the policies and directives of the board. Other employees of the board shall be appointed by the chief executive officer in accordance with personnel policies of the board. (n) Any debt of the City of Florence Electricity Department shall be transferred to board as a debt of the 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 HB436 INTRODUCED Page 5 Department shall be transferred to board as a debt of the board. This amendment shall not be construed to affect any other debt of the City of Florence. Upon ratification of this constitutional amendment, the Code Commissioner shall number and place this amendment as appropriate in the constitution omitting this instructional paragraph and may make the following nonsubstantive revisions: change capitalization, hierarchy, spelling, and punctuation for purposes of style and uniformity; correct manifest grammatical, clerical, and typographical errors; revise internal or external citations and cross-references; and translate effective dates. END PROPOSED AMENDMENT Section 2. An election upon the proposed amendment shall be held in accordance with Sections 284, 284.01, and 285 of the Constitution of Alabama of 2022, and the election laws of this state. The appropriate election official shall assign a ballot number for the proposed constitutional amendment on the election ballot and shall set forth the following description of the substance or subject matter of the proposed constitutional amendment: "Relating to Lauderdale County, proposing an amendment to the Constitution of Alabama of 2022, to create the Lauderdale County Electric Board to operate the distribution system for electricity in Lauderdale County; to transfer all duties, assets, and employees of the City of Florence Electricity Department to the board; to provide for the appointment of the members of the board by the City Council of the City of Florence and the Lauderdale County Commission; and 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 HB436 INTRODUCED Page 6 the City of Florence and the Lauderdale County Commission; and to provide for the operation of the distribution system for electricity in the county. Proposed by Act ____." This description shall be followed by the following language: "Yes( ) No( )." Section 3. The proposed amendment shall become valid as part of the Constitution of Alabama of 2022, when approved by a majority of the qualified electors voting thereon. 141 142 143 144 145 146 147 148 149