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Laws of Interest

The State of Alabama has many laws which may affect your utility's operation. A synopsis of several of these laws is printed below.

If you are interested in additional information, please call us at (334) 396-5511.

                  

 

Competitive Bid Law

Act No. 2009-760

Relating to competitive bidding on contracts of certain state and local agencies; to increase the minimum amount of contracts subject to competitive bid from $7,500 to $15,000; to include city and county boards of education in the list of awarding authorities that may establish local preference zones; to change from mandatory to permissive the furnishing of a bid bond by a bidder; to exempt from competitive bidding requirements purchases made by city and county boards of education under certain joint purchasing agreements; to authorize an awarding authority to make purchases or contracts through a reverse auction procedure; to provide for the award of the remainder of an award period to the second lowest responsible bidder in the event of the default of the lowest responsible bidder; and to specify that the lowest responsible bid may be the bid offering the lowest life cycle costs. Read entire bill as amended (pdf).

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Utility Board Member Compensation

Act No. 2010-580

To amend Section 11-88-6, Code of Alabama 1975, relating to Boards of Directors of water, sewer and fire protection authorities, to provide further for the compensation of members and chairpersons of such boards.
 

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Alabama Volunteer Fire Department Check-off Contribution

Act No. 2006-203

Relating to county water systems incorporated pursuant to Chapter 88 or other portions of Title 11, Code of Alabama 1975, and municipal water systems incorporated pursuant to Chapter 50 or other portions of Title 11, Code of Alabama 1975; to authorize such systems to solicit their customers, through their periodic billings, for voluntary contributions for local fire departments; to require prior authorization of the board of directors to participate; to provide for the distributions of such contributions; and to require volunteer fire departments to provide monthly estimates of water used to the water system providing water.

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Alabama Sunset Law

Act No. 92-182

Relating to the Alabama Sunset Law; to continue the existence and functioning of the Plumbers and Gas Fitters Examining Board with certain modifications; to amend Sections 34-37-6, 34-37-8, 34-37-9, 34-37-12, and 34-37-15, Code of Alabama 1975, so as to provide minimum times for holding a lower classification before being examined for certification as a journeyman plumber, master plumber or master pipe fitter: extend the time period for certification without an examination (grandfather clause); require the board to adopt a program of continuing education by October 1, 1994; require the board to adopt a late renewal penalty and levy administrative fines; and permit property owners to perform plumbing work on their own property.
 

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Alabama Open Meeting Act

Act No. 2005-40 

Under existing law, meetings of governmental entities are required to be held in the open. There are certain exceptions to that requirement. This bill would require all meetings held by a governmental body to be open to the public with certain exceptions, would provide for civil penalties, and would prohibit certain agencies and other governmental bodies from meeting in executive or secret sessions.
 

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ALABAMA LAW - CERTIFICATE OF INCORPORATION
OF WATER, SEWER AND FIRE PROTECTION AUTHORITIES

Act No. 91-599

To amend Section 11-88-5 of the Code of Alabama 1975, as amended, relating to the authorization and procedure for amendment of the certificate of incorporation of water, sewer and fire protection authorities with a service area that lies solely within one determining county so as to permit changes in the number of directors of such authorities to any odd number thereof that the board shall deem appropriate, and to provide that the total number of directors of any such authority shall be not less than three or more than five; to validate the membership of the boards of directors of all such authorities as are presently in existence: and to provide an effective date.
 

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ALABAMA LAW - PROHIBITING DUPLICATION OF SERVICES

Act No. 82-624

To prohibit any municipality from acquiring, or duplicating any services of, any waterworks system, or any part thereof, operated by a corporation or association which has been organized under Sections 10-4-190 through 10-4-194; Sections 11-88-1 through 11-88-21; Sections 11-88-40 through 11-88-111; or Sections 11-89-1 through 11-89-19, Code of Alabama 1975, without the consent of a majority of the members of the governing board of said corporation or association.
 

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ALABAMA LAW - RELATING TO USE OF RIGHTS OF WAY

HB112
To amend Section 11-88-14, Code of Alabama 1975, relating to the use of rights-of-way of public roads by water, sewer, and fire protection authorities; to allow counties to develop regulations for use of a right-of-way within the jurisdiction of a governmental entity under certain circumstances. 
 

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ALABAMA LAW - TO UPGRADE SERVICES

S. 129

 To provide for water authorities to upgrade services, including fire hydrants; and to further provide for any savings as a result of lower insurance rates.
 

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ALABAMA LAW - TO UPGRADE SERVICES

Act No. 97-417

SYNOPSIS: Under existing law, a water authority may develop, improve, maintain, equip, and operate water, sewer, and fire protection facilities or combine the services, and may charge reasonable rates for the services. Also, the water authority may fix, collect, and revise reasonable fees and other charges for water, sewer, and fire protection services.

This bill would specifically authorize the water authority to upgrade water sewage service, including fire hydrants. The bill also would provide for a certain portion of the savings from lower insurance rates to the company and customer to go to the authority to pay for the upgrade.
 

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ALABAMA LAW - ON USE OF THE STATE EMPLOYEE'S
HEALTH INSURANCE PLAN

S. 131

Enrolled, An Act,
To amend Act No. 90-624, H.570, 1990 Regular Session, codified as Section 36-29-14, Code of Alabama 1975, which provides the procedure for officers, employees and retirees of certain cities, towns, fire districts, water and fire authority districts and the Alabama League of Municipalities to be covered under the state employees' health insurance plan, so as to authorize certain additional state, county and municipal agencies and regional planning and development commissions to participate in the plan; to provide additional eligibility requirements for those entities wishing to participate in said plan; to provide procedures regarding revocation of participation in said plan.
 

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ALABAMA LAW-TAMPERING WITH METERS AND
OTHER UNLAWFUL DIVERSION OF UTILITY SERVICES

H. 106

Enrolled, An Act
To prohibit certain activities related to tampering with meters and other facilities of public utilities furnishing utility services or otherwise diverting or using utility services unlawfully; to provide felony criminal punishment for violations; and to provide that the provisions of this act are cumulative to Section 13A-8-10, Code of Alabama 1975.
 

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ALABAMA LAW - RELATING TO NOTIFICATION OF
EXCAVATION AND DEMOLITION ACTIVITIES

S. 299

Enrolled, An Act,
To provide for a means to safeguard the public against injury and loss of life or the interruption of public services caused by damage to various underground facilities by communicating and coordinating adequate prior notification of excavation or demolition activities that might damage or interrupt services provided by certain underground facilities; to prohibit certain activities without first having ascertained the location of any potentially affected underground facilities; to prescribe procedures for notification of an intent to undertake certain activities; to prescribe certain activities to be included in an underground damage prevention program; to prescribe procedures for response to both emergency and routine notification and for reporting damage resulting from certain activities; to prescribe civil penalties for violations and exceptions to such penalties; to provide for the liberal construction and severability of any part of this act and to provide that this act shall become effective on January 1, 1995.
 

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ALABAMA LAW - RELATING TO MOBILE COUNTY

Act No. 91-500

Relating to Mobile County, providing for additional compensation to members of the board of directors of certain public utility authorities.

Be It Enacted by the Legislature of Alabama:
   Section 1. In Mobile County, the members of the board of directors of any authority, created or operated pursuant to Sections 11-88-1 through 11-88-21, Code of Alabama 1975, which operates a public water system, a public sewer system or a fire protection facility and which serves 6,500 or more customers, shall, in addition to any other compensation and if authorized by resolution of the board of directors of the authority, be compensated for performance of their duties as follows:
      (a) The chairman of the board shall be compensated in an additional amount not to exceed $400.00 per month; and
      (b) Each member of the board shall be compensated in an additional amount not to exceed $300.00 per month.
 

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ALABAMA LAW - RELATING TO ST CLAIR COUNTY

Act No. 79

To provide in St. Clair County, Alabama, for the creation and maintenance of districts for fighting or preventing fires and for the collection and disposal of garbage, providing medical rescue services and systems, and providing parks and recreational facilities: to provide that any such district may be created for any area upon the conditions and in the manner provided for in the Act; to provide that upon the petition of the qualified electors residing within any proposed district the Probate Judge shall call an election at which there shall be submitted to the qualified electors residing within the proposed district the question of whether the proposed district shall be created; to provide what the petition for such election shall contain; to provide for the time and the conduct of such election; to provide that the County shall pay the expense of conducting such election; to provide that if the district is created the district shall reimburse the County for the expenses incurred by the County in respect to the election; to provide that after a district has been established the district shall pay the expense of any election held in the district or held in any area which it is proposed be added to the district; to provide that no district shall be created unless the creation thereof has been approved by the majority of votes cast at the election; to provide that if the creation of the proposed district is approved by the majority of votes cast at the election, the proposed district shall be created and shall constitute a public corporation; to provide that a district may be enlarged by the inclusion of additional area therein, provided the inclusion of such area in the district is approved by the majority of votes cast by the qualified electors residing within the proposed additional area; to provide for the time and conduct of such election; to provide that the affairs and business of the district shall be managed by a Board of Trustees consisting of five members appointed by the governing body of the County; to provide for the terms of office of the members of the Board; to provide that the Board of Trustees shall elect from its own number a president and a secretary; to provide that the members of the Board of Trustees shall not be entitled to any compensation for their services but shall be entitled to reimbursement for all expenses incurred by them in the performance of their duties; to define the rights, powers and authority of the districts; to authorize any such district to pledge all or any part of its revenues, or to mortgage or otherwise encumber all or any part of its property for the purpose of securing the payment of the principal of and interest on any of its obligations; to authorize any such district to levy and collect service charges as provided for in the Act and, subject to the limitations prescribed in the Act; to provide for the dissolution of any such district; to provide that the provisions of the Act are severable; to repeal all laws or parts of laws, in conflict with the Act; and to provide when the Act shall take effect.
 

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ALABAMA LAW - RELATING TO WORTHLESS CHECKS

Act No. 80-200

 To provide further for the crime of negotiation of worthless checks and other negotiable instruments; to provide for written notice to makers or drawers of such worthless instruments; to provide further for matters of proof as to persons issuing such worthless instruments; prescribing penalties for violations, and specifically repealing and superseding Section 13A-9-13, Code of Alabama 1975.
 

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FEDERAL LAW - RELATING TO DEBTS OWED TO FMHA

1926(b)

 The basic statute here is 7 U.S.C. 1926(b), which states: The service provided or made available through any such [water] association [indebted to the FmHA] shall not be curtailed or limited by the inclusion of the area within the boundaries of any municipal corporation or other public body. . .during the term of said loan. . . 
 

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