SB95ENGROSSED
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SB95
KXE15UA-2
By Senator Chesteen
RFD: Fiscal Responsibility and Economic Development
First Read: 05-Feb-25
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First Read: 05-Feb-25
A BILL
TO BE ENTITLED
AN ACT
Relating to the Alabama Municipal Electric Authority;
to amend Section 11-50A-6 of the Code of Alabama 1975, to
increase the amount of the director's fees authorized to be
paid, at the discretion of the board, to the members of the
board of directors and the chairman for each meeting of the
board.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 11-50A-6 of the Code of Alabama
1975, is amended to read as follows:
"ยง11-50A-6
(a) The board of directors of the authority shall be
elected by the duly designated representatives of the
municipalities which that are authorized and directed to
designate a member of the election committee as hereinafter
provided in this section. Until the first meeting of the board
of directors following the meeting in 2015 of the election
committee hereinafter provided for, the board of directors
shall consist of nine members ; thereafter,. Thereafter, the
board shall consist of the number of members equal to the
number of municipalities contracting with the authority for
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number of municipalities contracting with the authority for
the purchase of electric power and energy pursuant to Section
11-50A-17, which are authorized and directed to designate a
member of the election committee. Members of the board of
directors shall be eligible to succeed themselves. The
business, affairs, and property of the authority shall be
managed by its board of directors.
(b)(1) On or before the ninetieth day following May 18,
1981, the governing body of each municipality which shall have
that has, prior to that ninetieth day, by proper resolution
declared its intention to contract with the authority for the
purchase of electric power and energy pursuant to Section
11-50A-17, provided there shall be as many as five such
municipalities, shall designate one individual who shall be a
duly qualified elector of that municipality as its
representative on the Alabama Municipal Electric Authority
membership election committee which is herein designated as
the election committee. The resolution of the governing body
of each municipality may at any time be repealed in the manner
provided by law for repeal of resolutions by the governing
body; provided, that repeal of a resolution after the date of
incorporation of the authority shall not affect the existence
of the authority or the validity or enforceability of any
contract entered into by the municipality with the authority.
Each resolution declaring the intention of the municipality to
contract with the authority shall state the amount of electric
power and energy purchased from all sources by the
municipality during the immediately preceding calendar year
and shall be presented to the election committee at its first
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and shall be presented to the election committee at its first
meeting which shall be held at the State Capitol located in
the City of Montgomery, Alabama, at 11 o'clock A.M. a.m.,
Montgomery time, on the first Monday following the ninetieth
day following May 18, 1981. At that meeting, which shall not
precede the issuance of the authority's certificate of
incorporation by the Secretary of State as provided in Section
11-50A-5, the election committee shall organize and elect a
chairman chair and any other officers which may be desirable
in the determination of the election committee. The election
committee shall then determine the sufficiency of the
resolutions presented to it, the accuracy of the factual
representations made therein, and the number of votes ,
(including fractions thereof ), which each member of the
election committee shall be entitled to cast in accordance
with the provisions of subsection (b) subdivision(2) of this
section; the. The determinations of the election committee
shall be final. Nominations for membership on the board shall
then be received by the election committee prior to
adjournment of its first meeting. The election committee shall
then meet for the second time one week later at the same time
and place to receive any other nominations for membership on
the board that may be made and shall at that time elect nine
members of the board. The nine nominees to membership on the
board receiving the largest number of votes cast by a quorum
of the election committee shall be declared to be elected as
the first nine members of the board. Each member shall be a
duly qualified elector of one of the municipalities
represented on the election committee, but, insofar as is
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represented on the election committee, but, insofar as is
mathematically possible, no more than one member shall be a
duly qualified elector of any one of those municipalities. The
election committee shall meet on a date not more than 30 days
prior to each annual meeting of the authority to elect members
to fill the terms which will begin at the conclusion of the
annual meeting of the board.
(2) In elections held by the election committee to
elect members to the board, beginning with the first election
of members, each municipality entitled to representation on
the election committee shall have, and shall be entitled to
have its representative on the election committee cast, one
whole vote, plus an additional vote or votes ,(including
fractions thereof ), to be determined as follows:
a. Before any project of the authority is placed in
commercial operation by the authority, as determined by the
authority, and electric power and energy is being supplied by
the authority to all municipalities contracting with the
authority pursuant to Section 11-50A-17, the percentage which
is arrived at by dividing the number of kilowatt hours of
electric power and energy purchased from all sources by each
represented municipality during the immediately preceding
calendar year by the total number of kilowatt hours of
electric power and energy purchased from all sources by all
represented municipalities during the immediately preceding
calendar year shall be determined ; each. Each percentage so
determined shall then be applied to a total number of votes
equal to the total number of municipalities entitled to
representation on the election committee. The resulting
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representation on the election committee. The resulting
figure, calculated to the nearest one thousandth, shall be the
additional vote or votes ,(including fractions thereof ), to
which each respective municipality is entitled.
b. After any project of the authority is placed in
commercial operation by the authority, as determined by the
authority, and electric power and energy is being supplied by
the authority to all municipalities contracting with the
authority pursuant to Section 11-50A-17, the percentage which
is arrived at by dividing the number of kilowatt hours of
electric power and energy purchased from the authority by each
represented municipality during the immediately preceding
calendar year by the total number of kilowatt hours of
electric power and energy purchased from the authority by all
represented municipalities during the immediately preceding
calendar year shall be determined ; each. Each percentage so
determined shall then be applied to a total number of votes
equal to the total number of municipalities entitled to
representation on the election committee. The resulting
figure, calculated to the nearest one thousandth, shall be the
additional vote or votes ,(including fractions thereof ), to
which each represented municipality is entitled. At the
meeting of the election committee in the calendar year
immediately following the calendar year in which any project
of the authority is first placed in commercial operation by
the authority, as determined by the authority, and electric
power and energy is being supplied by the authority to all
municipalities contracting with the authority pursuant to
Section 11-50A-17, if the project has been in commercial
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Section 11-50A-17, if the project has been in commercial
operation, as determined by the authority, and if electric
power and energy has been supplied for at least six months in
the immediately preceding calendar year, then the period of
time upon which the determination shall be made of the
additional vote or votes ,(including fractions thereof ), to
which the members of the election committee shall be entitled
at such meeting shall be that portion of the calendar year in
which electric power and energy was first supplied to the
municipalities; otherwise, such additional vote or votes ,
(including fractions thereof ), shall be determined on the
basis of the number of kilowatt hours of electric power and
energy purchased from all sources in accordance with the
provisions of subsection (b)(2) paragraph a. of this section.
c. The presence at any meeting of the election
committee of representatives entitled to cast two-thirds of
the total votes to which the election committee shall be
entitled shall constitute a quorum of the election committee.
(c) The governing body of each municipality declaring
its intent to contract with the authority for the purchase of
electric power and energy pursuant to Section 11-50A-17, after
the ninetieth day following May 18, 1981, but before the
election of the first nine members of the board, shall
designate one individual who shall be a duly qualified elector
of that municipality as an additional member of the election
committee. The term of each additional member of the election
committee so designated shall begin with the first meeting of
the election committee following the meeting held for the
purpose of electing the first nine members of the board. After
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purpose of electing the first nine members of the board. After
the election of the first nine members of the board, each
municipality that is not otherwise entitled to representation
on the election committee and that contracts with the
authority pursuant to Section 11-50A-17 shall designate one
individual who shall be a duly qualified elector of that
municipality as an additional member of the election
committee. The term of each additional member of the election
committee so designated shall begin with the next meeting of
the election committee following his or her designation as a
member. Each member of the election committee shall serve at
the pleasure of the governing body of the municipality by
which he or she was appointed.
(d)(1) The initial membership of the board shall be
elected as follows: Three members of the board shall be
elected for terms of one year, three for two years, and three
for three years. Each election thereafter, except elections to
fill unexpired terms or to reflect a contemporaneous increase
in the membership of the board, shall be for a term of three
years. In the case of an increase in the membership of the
board, the board members elected to reflect the increase shall
be elected for initial terms that result in an approximately
equal number of members of the board having terms expiring in
the same years, as the election committee shall determine. All
terms, however, shall extend through the annual meeting of the
board held at the expiration of the number of years for which
the member was elected and until his or her successor shall be
is elected.
(2)Nevertheless, all All members of the board shall
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(2)Nevertheless, all All members of the board shall
serve at the pleasure of the election committee.
(3)In the event If it should be mathematically
necessary in the election of the members of the board for more
than one member of the board to be a duly qualified elector of
the same municipality, then and in that event, one of the two
members who are duly qualified electors of the same
municipality shall be elected for an initial term of one year ;
and, in the event . If there should be are four municipalities
from which two duly qualified electors must be elected, one of
the duly qualified electors of one of those four
municipalities shall be elected for an initial term of two
years; provided, however, that insofar as may be consistent
with the foregoing provisions of this subsection, in the
election of the first nine members of the board, the three
nominees receiving the highest number of votes shall be
elected to terms of three years, the three nominees receiving
the next highest number of votes shall be elected to terms of
two years, and the three nominees receiving the next highest
number of votes shall be elected to terms of one year. Any tie
votes shall be resolved by lot in a manner prescribed by the
election committee.
(4) Members of the election committee shall not be
eligible for membership on the board.
(5) The membership of the board shall be inclusive and
reflect the racial, gender, geographical, urban/rural urban,
rural, and economic diversity of the state.
(e) The first meeting of the board shall be held at the
same place and hour, on the first Thursday following the
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same place and hour, on the first Thursday following the
second meeting of the election committee described in
subsection subdivision (b)(1) of this section , to elect
officers, decide upon a date, time, and place for its next
meeting or meetings, and to proceed with the transaction of
any business that may come before the board.
(f) The first annual meeting of the board, which may be
held without notice, shall be held on the anniversary date of
the first meeting of the board. If the date set for the annual
meeting of the board is a legal holiday, the annual meeting
shall be held on the next secular day following. The date of
subsequent annual meetings of the board may be changed by
resolution of the board, and no notice, other than notice of
the adoption of the resolution to any member of the board who
was absent when it was adopted, shall be required for any
annual meeting. Notice of the adoption of a resolution
changing the date of the annual meeting of the board shall be
given to any member of the board who was absent when the
resolution was adopted by mailing a copy of the resolution to
each absent member of the board 10 days prior to the date set
for the annual meeting.
(g) Regular meetings of the board may be established by
resolution of the board, and no notice, other than notice of
the adoption of the resolution to any member of the board who
was absent when it was adopted, shall be required for any
regular meeting. Notice of the adoption of a resolution
establishing regular meetings of the board shall be given to
any member of the board who was absent when the resolution was
adopted by mailing a copy of the resolution to each absent
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adopted by mailing a copy of the resolution to each absent
member of the board 10 days prior to the date of the regular
meeting.
(h) Special meetings of the board may be called by
resolution of the board or by the chairman chair or
vice-chairman vice chair or upon the written request of at
least three members of the board.
(i) Written notice of special meetings shall be mailed
to each municipality contracting with the authority pursuant
to Section 11-50A-17 and to each member of the board not less
than three days prior to the date of any special meeting.
Neither the business to be transacted at nor the purpose of a
special meeting of the board need be specified in the notice
of the meeting. Notice of a special meeting need only state
the time and place of the meeting.
(j) Notice of a meeting of the board need not be given
to any member who signs a waiver of notice either before or
after the meeting. Attendance of a member at a meeting shall
constitute a waiver of notice of the meeting and a waiver of
any and all objections objection to the time or place of the
meeting or to the manner in which it has been called or
convened, except when a member states at the beginning of the
meeting any objection or objections to the transaction of
business. Neither the business to be transacted at nor the
purpose of any regular or special meeting of the board need be
specified in the waiver of notice of those meetings.
(k) Any vacancy in the membership of the board due to
the death, resignation, change of residence, or disability of
a member shall be filled by a new member to be elected by the
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a member shall be filled by a new member to be elected by the
remaining members of the board to serve until the next meeting
of the election committee. At the first meeting of the
election committee following the filling of any vacancy, the
election committee shall elect a member to fill the remainder,
if any, of the unexpired term for which the vacancy was
filled. Upon this election by the election committee, the
membership on the board of the member elected to fill any
vacancy by the remaining members of the board shall terminate.
If any member of the board who is employed in any capacity in
the management or operation of the electric distribution
system of any municipality ceases to be so employed, the board
member shall be deemed to have resigned membership on the
board within the meaning of this subsection.
(l) The board shall elect as officers of the authority
a chairman chair, a vice-chairman vice chair, a
secretary-treasurer, and any other officers which the board
from time to time may deem necessary. The chairman chair and
vice-chairman vice chair shall be elected from the membership
of the board. All officers shall serve for terms of one year
terminating at the next annual meeting of the board or until
their successors are elected and qualified.
(m) At all meetings of the board, the presence in
person of a majority of the members in office shall be
necessary for the transaction of business, and the affirmative
vote of a majority of the members present and voting at a
meeting where a quorum is present shall be necessary for any
action of the board. No vacancy in the membership of the board
shall impair the right of the majority to exercise all the
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shall impair the right of the majority to exercise all the
rights and perform all duties of the board. If at any meeting
there is less than a majority present, a majority of those
present may adjourn the meeting to a fixed time and place, and
notice of that time and place shall be given in accordance
with the provisions of subsection (i) of this section .
(n)(1) Unless the board by an unanimous vote of all of
the members thereof then serving shall so determine, the
members of the board shall not be entitled to compensation for
their services as directors or officers. If the board
determines to provide for compensation, the authority may
compensate its directors in the manner and amounts as shall be
determined from time to time by the board not to exceed six
hundred dollars ($600) per meeting of the board actually
attended. Members of the board may be reimbursed by the
authority for their actual expenses properly incurred in the
performance of their duties. Members of the board of directors
shall serve without compensation, except that they shall be
reimbursed for actual expenses incurred in the performance of
their duties under this article, and, at the discretion of the
board of directors, they may be paid a director's fee not to
exceed one thousand seven hundred fifty dollars ($1,750) per
month in which the member actually attends a meeting.
(2) Notwithstanding subdivision (1), the chair of the
board shall serve without compensation, except that he or she
shall be reimbursed for actual expenses incurred in the
performance of his or her duties under this article, and, at
the discretion of the board, he or she may be paid a
director's fee not to exceed two thousand dollars ($2,000) per
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director's fee not to exceed two thousand dollars ($2,000) per
month in which the chair actually attends a meeting.
(o) The authority shall keep suitable books and records
of all its obligations, contracts, transactions, and
undertakings, and of all its revenues and receipts of every
nature and all expenditures of every kind.
(p) The authority, together with all funds established
in connection with its debt, shall be audited no less
frequently than annually by an independent auditing and
accounting firm to be selected and compensated by the
authority. Copies of any audit shall be available upon request
to interested parties, including , specifically but without
limitation, the holders of bonds and all parties contracting
with the authority."
Section 2. This act shall become effective on January
1, 2026.
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1, 2026.
Senate
Read for the first time and referred
to the Senate committee on Fiscal
Responsibility and Economic
Development
................05-Feb-25
Read for the second time and placed
on the calendar:
1 amendment
................12-Feb-25
Read for the third time and passed
as amended
Yeas 32
Nays 0
Abstains 0
................18-Feb-25
Patrick Harris,
Secretary.
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